REG-Finsbury Growth & Income Trust PLC: Annual Financial Report for the year ended 30 September 2025
03/12/2025 07:02
3 December 2025
Finsbury Growth & Income Trust PLC
(the “Company”)
This announcement contains regulated information
Annual Financial Report for the year ended 30 September 2025
The statements below are extracted from the Company’s annual report for the
year ended 30 September 2025 (the
Annual Report). The Annual Report, which
includes the notice of the Company’s forthcoming annual general meeting,
will be posted to shareholders mid December 2025. Members of the public may
obtain copies from Frostrow Capital LLP, 25 Southampton Buildings,
London WC2A 1AL or from the Company’s website
www.finsburygt.com where up to date information
on the Company, including daily NAV, share prices and fact sheets, can also be
found.
The Annual Report will be submitted to the Financial Conduct
Authority and will shortly be available in full, unedited text for inspection
on the National Storage Mechanism (NSM):
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
For further information please contact
Victoria Hale
Company Secretary
For and on behalf of Frostrow Capital LLP
020 3170 8732
For press enquiries please contact:
Sarah Gibbons-Cook
Quill
07702 412680
sarah@quillpr.com
STRATEGIC REPORT / Chairman’s Statement
Pars Purewal, Chairman
I am honoured to address Shareholders for the first time in an Annual Report
as Chairman of the Company. I am only the 8th person to hold this role in our
history, a reminder of the continuity and long-term stewardship that have
guided the Company through both strong and challenging periods.
PERFORMANCE
While the Company’s performance over the past year has again been
disappointing, our commitment to a disciplined, high -
conviction, and concentrated investment approach remains unchanged. We
continue to focus on the long term, and on positioning the Company to deliver
sustainable value for Shareholders in the years ahead.
For the year ended 30 September 2025, the share price total return was 2.3%,
underperforming the FTSE All-Share Index, which returned 16.2% over the same
period. The Company delivered a net asset value
(‘NAV’) total return of -0.1%, compared to +8.2% in the previous year.
The Board acknowledges this extended period of underperformance and the
understandable frustration this has caused among Shareholders. In the face of
this poor performance, your Board has subjected the Portfolio Manager’s
investment process and the resulting portfolio holdings to close scrutiny. We
remain confident in the long - term investment process,
which focuses on high - quality, cash-generative businesses
with durable competitive advantages. While many of our portfolio companies are
listed in the UK, they are, in reality, global businesses with leading
positions in their respective industries. We share the Portfolio Manager’s
belief, both in the quality of these companies and in the belief that this
quality will, ultimately, be reflected in their share price performance.
As it is always important to point out, a highly concentrated portfolio means
higher risk, particularly in the short-term. At 30 September 2025, the
Company’s Active Share – a measure of how much it varies from the FTSE
All-Share Index benchmark - was 86.4% (2024: 84.1%). Such an uncorrelated
portfolio will inevitably perform very differently from the wider market,
whether positively or negatively.
I urge you to read Nick Train’s review where he discusses his investment
approach.
AGM
This year’s Annual General Meeting (‘AGM’) is notable for two reasons.
Firstly, it marks the Company’s centenary. Finsbury Growth & Income Trust
PLC was founded as Scottish Cities Investment Trust Limited in Edinburgh in
January 1926, just ten days before another scion of Scotland, John Logie
Baird, first demonstrated television.
The second reason this AGM is significant is that it includes something
entirely new in our history: a continuation vote. Put simply, this gives
Shareholders the opportunity to decide whether the Company should continue
with its long-term investment approach. It is a moment to pause, reflect, and,
we hope, affirm your support. In that sense, the continuation vote is not just
a formality; it is a valuable opportunity for Shareholders to make their voice
heard in shaping the next chapter of our story.
CONTINUATION VOTE
During the year, I, together with the Senior Independent Director, met with
several of our largest Shareholders. While there was shared disappointment
regarding the Company’s recent investment performance, I am encouraged to
report significant support for the continuation of the Company from amongst
Shareholders we spoke with.
In the spirit of transparency and good governance, we wish to highlight that
joint Founders of Lindsell Train, Michael Lindsell and Nick Train, while both
fully supporting the continuation of the Company and hoping that it continues
for the next 100 years, have chosen not to vote their shares. This decision
was taken to avoid any perception of a conflict of interest, given their roles
as both shareholders and portfolio managers.
The Board unanimously recommends that Shareholders vote in favour of
continuation. All Directors intend to vote their shares accordingly.
The Board strongly encourages all Shareholders to exercise their votes in
respect of the meeting in advance. Details of how Shareholders can vote are
set out in the Notice of Meeting. Any Shareholder who requires a hard copy
form of proxy may request one from the Registrar MUFG Corporate Markets.
Please note that the continuation vote is not a liquidity event; it does not
involve redemption, tender offers, or a return of capital.
Rather, it is a strategic decision point that allows Shareholders to express
their support for the investment philosophy that has underpinned the
Company’s performance over time.
If Shareholders vote in favour, the Company will continue as before. If the
vote is against, the Board will consider alternative strategic options. The
outcome will be announced following the Centenary AGM.
SHARE BUY-BACKS
The Board keeps the discount under close review and is committed to buying
back its own shares at or near the 5% discount level, in accordance with its
policy.
While share buy-backs will not necessarily reduce the discount, particularly
in times of market volatility, they may, to a limited extent, mitigate a
widening trend. In addition, buy - backs enhance the net
asset value per share for remaining shareholders, provide some additional
liquidity and help to dampen discount volatility which can damage shareholder
returns.
As at 30 September 2025 the discount was 6.7% compared with a closing discount
at the last year end of 8.7%. During the year under review the Company bought
back a total of 34,698,781 shares, 20.7% of the shares in issue) into Treasury
at a cost of approximately £309.7 million and at an average discount of 7.5%.
Over the course of the year the Company’s discount averaged 7.5%.
As at the close of the UK market on 1 December 2025, the discount was 5.7%.
Since the year end, a further 10,787,363 shares were bought back into Treasury
at a cost of £90.2 million. As at 1 December 2025, the Company had
122,231,524 shares in issue (excluding 102,759,779 shares held in Treasury).
The Board believes that the Company’s share buy-back programme continues to
be in the interest of Shareholders; providing liquidity for those wishing to
exit while enhancing value for continuing investors. This year alone, buybacks
have added approximately 18.2 pence per share, and since we began repurchasing
shares at the current scale, they have contributed a cumulative increase of
around 42.7 pence per share.
DIVIDENDS
Your Board has declared two interim dividends for the year totalling 20.2p per
share (2024: 19.6p), an increase of 3.1%. In order to facilitate dividend
payments on a timely and cost - effective basis, your Board
continues to elect to distribute the Company’s income to Shareholders by
means of two interim dividends rather than wait several months to secure
shareholder approval to pay a final dividend at the AGM. This dividend policy
will again be proposed for approval at the forthcoming AGM.
OUTLOOK
The Board remains confident that the Trust’s strategy will deliver
sustainable, long-term returns for Shareholders. We appreciate your continued
support and patience during this challenging period, both your Portfolio
Manager and Directors have demonstrated their commitment by continuing to
acquire shares in the Trust. Over the last year, Nick Train has acquired
275,237 shares and currently speaks for 4.7% of the equity of the Company
(December 2024: 3.5%). This alignment underscores our shared determination to
navigate this challenging period together.
The Board is pleased to confirm that it has agreed amendments to the fee
arrangements with the AIFM and Portfolio Manager, with effect from 1 January
2026. The revised structure will deliver an immediate cost saving of
c.£600,000 per annum. Since the appointment of Lindsell Train in 2000,
management fees have been regularly reviewed and stepped down with increased
fund size providing economies of scale for Shareholders.
As we evaluate the results of the continuation vote let me reassure you that
the Board will do whatever it takes to add value for Shareholders.
Pars Purewal
Chairman
2 December 2025
STRATEGIC REPORT / Company Summary
Finsbury Growth & Income Trust PLC is a listed investment company and a
constituent of the FTSE 250. The Company is a member of the Association of
Investment Companies (“AIC”).
OBJECTIVES AND PERFORMANCE MEASUREMENT
The Company aims to achieve capital and income growth and to provide
Shareholders with a total return in excess of that of the FTSE All-Share Index
(the Company’s benchmark).
The net asset value (“NAV”) per share decreased by 0.1% during the
financial year to 30 September 2025 on a total return basis (2024: +8.2%).
DIVIDENDS
The total dividend declared for 2025 was 20.2p (2024: 19.6p), representing an
increase of 3.1%.
STRATEGIC REPORT / Company Performance
KEY FACTS
923.0p
NAV per share
2024: 943.4p (-2.2%)
861.0p
Share price
2024: 861.0p (+0.0%)
6.7%
Discount of share price to net asset value per share
^
2024: 8.7%
(9.4)p
Return per share †
2024: +57.7p
86.4%
Active Share*^
2024: 84.1%
20.2p
Total dividends per share for the year †
2024: 19.6p (+3.1%) †
(0.1)%
NAV per share total return*, ^
2024: +8.2%
£1.228bn
Shareholders’ funds †
2024: £1.582bn (-22.4%)
0.62%
Ongoing charges ^
2024: 0.61%
2.3%
Share price total return *
, ^
2024: +3.4%
1.9%
Gearing^
2024: 0.7%
133,018,887
Number of shares in issue (excluding 91,972,416 shares held in Treasury)
2024: 167,717,668 (-20.7%) (Treasury shares 2024: 57,273,635)
* Source – Frostrow Capital LLP
^ Alternative Performance Measure
† UK GAAP Measure
FIVE YEARS SUMMARY
AS AT 30 SEPTEMBER 2021 2022 2023 2024 2025
Share price 876.0p 800.0p 852.0p 861.0p 861.0p
Net asset value per share (“NAV”) 917.7p 848.4p 891.2p 943.4p 923.0p
Discount of Share price to NAV per share 4.5% 5.7% 4.4% 8.7% 6.7%
YEAR ENDED 30 SEPTEMBER 2021 2022 2023 2024 2025
Share price total return* ^ +6.3% (5.6)% +7.5% +3.4% +2.3%
NAV per share total return* ^ +10.6% (5.8)% +7.2% +8.2% (0.1)%
FTSE All-Share Index total return** # +27.9% (4.0)% +13.8% +13.4% +16.2%
Dividends per share † 17.1p 18.1p 19.0p 19.6p 20.2p
*Source: Frostrow Capital LLP
**Source: FTSE International Limited (“FTSE”) © FTSE, 2025
# See glossary of terms and alternative performance measures)
^ Alternative Performance Measure (“APM”) (see glossary)
† UK GAAP Measure
The Company was incorporated in Scotland on 15 January 1926. Lindsell Train
Limited (“Lindsell Train”) was appointed as Portfolio Manager in December
2000. The total return of the Company’s share price over the ten years to 30
September 2025 has been 90.7%, equivalent to a compound annual return of 6.7%.
This compares with a total return of 118.3%* from the Company’s benchmark,
equivalent to a compound annual return of 8.1%*. Over the past 25 years,
£1,000 invested when Lindsell Train assumed management of the portfolio would
now be worth £8,171 compared with £3,982 had the same amount been invested
in the FTSE All-Share Index over the same period.
STRATEGIC REPORT / Key Performance Indicators (“KPIs”)
The Board uses certain financial KPIs to monitor and assess the performance of
the Company in achieving its strategic aims.
The Board reviews the performance of the portfolio in detail and hears the
views of the Portfolio Manager at each meeting.
Information on the Company's performance is provided in the Chairman's
Statement and the Portfolio Manager's Report.
This performance is assessed against the following KPIs which are unchanged
from last year.
Alternative Performance Measures ("APM")
The Board believes that each of the APMs, which are typically used within the
investment company sector, provides additional useful information to
Shareholders in order to assess the Company’s performance between reporting
periods and against its peer group. The APMs used for the year under review
are unchanged from last year. Further information on each of the APMs can be
found in the glossary.
^ Alternative Performance Measure (see glossary)
† UK GAAP Measure
* Source: Frostrow Capital LLP
(0.1)%
NAV total return^*
This reflects the change in the Company’s net asset value including the
impact of reinvested dividends.
During the year under review the Company’s net asset value per share total
return was (0.1)% (2024: +8.2%).
20.2p
Dividends per share †
The total dividend declared for the year was 20.2 pence per share (2024: 19.6
pence per share), an increase of 3.1%.
(9.4)p
(Loss)/return per share †
The total loss per share for the year was (9.4) pence per share (2024: return
of 57.7 pence per share).
Over five years, the Company earned a total of 144.3 pence per share.
2.3%
Share price total return^*
This reflects the change in the value of the Company’s share price including
the impact of reinvested dividends.
During the year under review the Company’s share price total return was 2.3%
(2024: 3.4%).
6.7%
Share price discount to net asset value per share^
The Board reviews the level of discount/premium to net asset value per share
at every Board meeting and consideration is given to ways in which the share
price performance may be enhanced, including the effectiveness of marketing,
share issuance and buy-backs, where appropriate. Details of how the
Company’s share buy-back and issuance policy works can be found in the
Statutory Documentation section on the Company’s website.
At 30 September 2025 the Company’s share price stood at an 6.7% discount to
the Company’s net asset value per share (2024: 8.7% discount).
During the year, the Company bought back 34,698,781 shares into Treasury
(2024: 36,801,766) at an average price of 892.4 pence and an average discount
of 7.5%.
Since the year end to 1 December 2025 the Company has purchased a further
10,787,363 shares to be held in Treasury. As at 1 December 2025 the
Company’s discount was 5.7%.
(13.9)%
Relative underperformance to benchmark
Under the Company’s Business Model, a Portfolio Manager is appointed with
the capability and resources to manage the Company’s assets through asset
allocation, stock selection and risk management. The Company’s portfolio is
constructed and managed without reference to a stock market index with the
Portfolio Manager selecting investments based on their assessment of their
long-term value.
The performance of the Company relative to its benchmark and its peers is a
KPI measured by the Board on an ongoing basis.
The Company’s benchmark is the FTSE All-Share Index (total return) which
delivered a return of 16.2% (2024: 13.4%) over the year. This compares with
the Company’s share price total return of 2.3% (2024: 3.4%) resulting in a
13.9% underperformance against the benchmark.
The Board also monitors the Company’s share price return* against its AIC
peer group^. As at 30 September 2025 the Company's ranking against its peer
group of UK Equity income sector was:
Rank out of 20 (2024: 23)
Period 2025 2024
1 yr 17 21
3 yr 18 19
5 yr 19 21
10 yr 13 4
25 yr 5 3
^ Alternative Performance Measure (see glossary)
* Source: Morningstar
STRATEGIC REPORT / Investment Portfolio
PORTFOLIO SECTOR WEIGHTINGS +
2025 2024
Consumer Discretionary (”CD”) 27.5% 22.4%
Consumer Staples (”CS”) 23.5% 28.7%
Industrials (”I”) 18.4% 13.5%
Financials (”F”) 16.3% 25.2%
Technology (”T”) 14.3% 10.2%
Source: Frostrow Capital LLP
+ FTSE Industrial Classification Benchmark (“ICB”) sectors.
GEOGRAPHICAL ALLOCATION †
2025 2024
United Kingdom 100.0% 97.1%
United States of America 0.0% 1.4%
France 0.0% 1.2%
Netherlands 0.0% 0.3%
Source: Frostrow Capital LLP
† The Company’s investment policy classifies geographical location based
on where companies are listed or otherwise incorporated, domiciled or having
significant business operations.
† The Company’s Investment Policy restricts the Company from owning more
than 20% of the portfolio in overseas companies.
INVESTMENTS AS AT 30 SEPTEMBER 2025
SECTOR INVESTMENTS FAIR NET INVEST- CAPITAL APPRE-CIATION/ (DEPRE-CIATION) £'000 FAIR VALUE 2025 £’000 % OF INVES-TMENTS TOTAL RETURN £’000 CONTRIBU-TION PER SHARE (PENCE)
VALUE 2024 £'000 MENTS £'000
I Experian 215,320 (53,265) (9,699) 152,356 12.2 (7,395) (5.0)
CD RELX 195,714 (50,198) 5,585 151,101 12.1 8,536 5.8
T Sage Group 161,981 (32,739) 15,672 144,914 11.6 18,654 12.6
CS Unilever 185,755 (39,563) (15,710) 130,482 10.4 (10,371) (7.0)
F London Stock Exchange 207,057 (58,803) (21,621) 126,633 10.1 (19,518) (13.2)
CS Diageo 174,284 (2,257) (55,454) 116,573 9.3 (53,321) (36.0)
CD Rightmove 84,893 7,485 12,879 105,257 8.4 14,399 9.7
CD Burberry Group 50,535 (12,931) 31,547 69,151 5.5 31,547 21.3
F Schroders 75,991 (27,546) 5,383 53,828 4.3 9,261 6.3
I Intertek Group – 44,488 376 44,864 3.6 1,958 1.3
Top 10 Investments 1,095,159 87.5
CS Auto Trader Group – 35,926 (1,490) 34,436 2.8 (1,203) (0.8)
I Clarkson – 31,567 913 32,480 2.6 1,847 1.2
CS Fever-Tree 28,714 (2,247) 1,404 27,871 2.2 1,964 1.3
CS A.G. Barr 22,023 (3,988) 1,410 19,445 1.6 1,949 1.3
F Rathbone Brothers 17,012 (3,742) 173 13,443 1.1 928 0.6
CD Manchester United# 17,257 (4,836) (674) 11,747 0.9 (674) (0.5)
F The Lindsell Train Investment Trust plc 7,640 – (840) 6,800 0.5 (420) (0.3)
CD Celtic* 5,728 – 165 5,893 0.5 172 0.1
F Frostrow Capital LLP∆** 3,225 – (300) 2,925 0.2 65 0.1
CD Games Workshop Group – 760 56 816 0.1 64 0.1
F Hargreaves Lansdown 90,011 (89,535) (476) – 0.0 1,948 1.3
CS Heineken 5,347 (5,260) (87) – 0.0 (87) (0.1)
CS Mondelez International# 22,077 (20,995) (1,082) – 0.0 (1,082) (0.7)
CS Remy Cointreau 19,194 (16,441) (2,753) – 0.0 (2,753) (1.8)
CD Young & Co’s Brewery (non-voting) 3,460 (3,367) (93) – 0.0 (16) (0.0)
Total Investments 1,593,218 (307,487) (34,716) 1,251,015 100.0 (3,548) (2.4)
Bank Interest 328 0.2
Total Contributions to Total Return (3,220) 2.2
Expenses, currency translations and Finance Charges (10,665) (7.2)
Return on Ordinary Activities after Taxation (13,885) (9.4)
* Includes Celtic 6% cumulative convertible preference shares, fair value
£365,000 (2024: £363,000)
** Includes Frostrow Capital LLP AIFM Investment, fair value £125,000 (2024:
£125,000)
# Listed in the United States
^ Listed in France
† Listed in Netherlands
∆ Unquoted
STRATEGIC REPORT / Portfolio Manager’s Report
Nick Train, Lindsell Train Limited, Portfolio Manager
Lindsell Train has been investment adviser to the Finsbury Growth & Income
Trust PLC (“FGT”) for a quarter of a century and I am proud of that
longevity. And, of course, grateful for the support of Deputy Portfolio
Manager Madeline Wright, my other colleagues and FGT’s Board throughout.
That this milestone coincides with the Company’s own centenary makes this
year particularly special.
However, I am acutely conscious that the privilege of continuing to offer that
investment advice depends on the delivery of competitive investment returns,
and I am the first to admit that our performance has fallen short in recent
years, including the last 12 months. It is also relevant to note here that
over those 25 years I have been a persistent buyer of FGT
shares for myself and my family. That’s a lot of pound -
cost-averaging. I have paid some less than great prices for FGT shares,
particularly over the last two years, but I have also paid some great prices
over the period and, as you know, the key to successful pound-cost-averaging
is to keep on buying. As I have continued to do.
As a result, I can assure you that like every other FGT shareholder I want the
next 25 years to be even more rewarding than the last 25 years.
Our total return performance since appointment in late 2000, notwithstanding
the recent experience, has I hope been acceptable. Our investment approach has
delivered a c.3% per annum outperformance of the FTSE All Share Index over
that period. I believe future returns could be even higher and hope to
persuade you in this report why.
This year is also unique as it is the first time in the Company’s history
that it has held a Continuation Vote. It will be of no surprise to anyone that
my colleagues and I fully support the continuation of the Company, preferably
for another 100 years. However, Michael Lindsell and I have chosen not to vote
our shares, as we are conscious that doing so could be construed as us acting
in our commercial self-interest. We felt your Board’s decision to hold a
Continuation Vote was an example of good corporate governance, and as such we
feel that it is appropriate that the future of the Company be determined by
those shareholders who are not also its investment manager.
I remain convinced that the investment opportunity we have captured in FGT’s
portfolio offers significant upside to its shareholders, as well as being
highly differentiated. It frustrates me to hear the UK stock market described,
disparagingly, as a “value” play. It is not lost on me that our lack of
exposure to more value-orientated sectors such as banks, energy and defence
has not helped our relative performance in recent years. And whilst we have
absolutely no intention to shift the focus of the portfolio in this direction,
clearly a value approach to investing is a viable way of approaching the
investment challenge. That said, I also feel strongly that contrary to common
perceptions, the UK is home to many genuinely world class global growth
businesses, capable of delivering multi - decade growth in
earnings and dividends to their shareholders. We have built FGT’s portfolio
around what we analyse to be the best of them, which makes it one of the few
investment trusts focused on large cap UK growth companies.
As to the opportunity, I want to look to the future, but as this is a year of
milestones and retrospection, let me frame that looking forwards by looking
back, specifically to a pivotal moment in my career.
That moment was reading the book pictured here, Midas Touch, in the late
1980s. It was written by a namesake, a US investment adviser called John Train
– though no relation.
I read the book as much out of curiosity for the shared surname as any great
interest in its subject. But reading those 200 pages was probably the best
investment of time in my career, because this was an early study of Warren
Buffett’s methods. Here was a set of investing principles and investment
ideas that anyone could follow and I was inspired to adopt those principles
and borrow some of Buffett’s ideas. It seemed at the time as though my
investment performance began to improve almost immediately.
These are three of the key principles we derive from the Midas Touch and we
apply to FGT’s portfolio.
1 “Patience is the companion of wisdom”
– St Augustine
2 “… square-cut or pear-shaped these rocks don’t lose their shape…”
– Marilyn Monroe
3 “…direct your feet to the sunny side of the street”
– Louis Armstrong
Let me first formulate them, then give examples of FGT holdings that
illustrate the principles.
First: patience is an important investment virtue. Buffett famously said that
the stock market is a mechanism for transferring wealth from the impatient to
the patient. We have always tried to be on the right side of that trade and
are indeed unusually patient investors.
Next – it is important to recognise when you own an investment
“diamond”. In other words, know when you own a company or an asset of
“semi-eternal” value. That characteristic by no means guarantees its
shares go up every year. But it does mean that you own something of enduring
value. There will be times when such enduring value will protect your wealth.
Finally, optimism – looking for the bright side – is an important
strategic advantage for any investor. For instance, it has been hard to be
optimistic about the UK stock market in recent years. Nonetheless, there are
always opportunities. And I hope we have populated FGT’s portfolio with some
exceptional UK growth opportunities, companies whose growth might accelerate
in coming years. And that have the potential to deliver fabulous share price
gains.
You might say I’m being over-optimistic with that “fabulous”,
particularly in the context of recent performance. All I know is I have seen
too many investors, both professional and lay, end up with disappointing
returns because a deficiency of optimism resulted in them holding too much in
cash or getting bounced out of excellent companies going through a temporary
tough patch.
PATIENCE
The great investor Peter Lynch of Fidelity-fame, once said of himself –
“the typical big winner in the Lynch portfolio generally takes three to 10
years to play out.” Well, in corroboration, we bought
RELX , the scientific and legal publisher in the first
couple of years after we were appointed to run FGT and, as you can see, for
the best part of a decade there was little or no reward.
Even Peter Lynch might’ve been getting twitchy. Nonetheless, we knew the
company was doing the right thing and we hoped that eventually something like
this would happen.
Over the last quarter of a century RELX has transformed from a predominantly
print-based publishing company to one of the most successful digital data
businesses on the planet. It’s consistently been one of the biggest holdings
in FGT in recent years. And one way to think about the future for RELX is the
following. Back in 2000, RELX was the 68th biggest company in the FTSE 100.
Today, as a result of this significant appreciation since 2012 it is the 8th
biggest company. The Chief Executive of Rolls-Royce recently challenged his
company to become the biggest company in the UK. That’s a sporting challenge
indeed. But in the same spirit, at a recent meeting with RELX we put it to the
company it should have similar ambitions.
RELX’s CEO pointed out to us that 20 years ago its Risk & Cybersecurity
division was the smallest in the group, under 5%. Today it is worth
essentially half of RELX’s value and, according to the CEO, its growth
opportunity is only just getting going. And we have all seen from the example
of NASDAQ what happens if you own digital growth companies, with big markets
opening up to them. We expect patience to continue to be rewarded for owners
of RELX shares.
INVESTMENT DIAMONDS
Turning to investment diamonds – we aspire to have the very best of them in
our portfolios. RELX’s Elsevier publishing division, founded in the 19th
century, is an example. But we believe we own a number of them. The chart
within the Annual Report is the 185-year history of Guinness’ global
volumes. It’s a fascinating piece of economic and social history. Two things
stand out. First, this venerable brand is growing again, attracting a whole
new generation of consumers, with promising progress being made in the United
States. Second and related: what an incredible success story. Wouldn’t you
love it if your family owned Guinness? You’d never have to sell it. It’s a
diamond of an asset.
Guinness is of course owned by Diageo
and is one of its top three brands. Shareholders will also know that Diageo
has had a wretched time of it as an investment over the last three years. It
is still a substantial holding in FGT and I must acknowledge that its dismal
performance has hurt FGT’s performance and tested even my patience.
Diageo’s fiscal year to June 2025 has turned out to be a torrid one for the
company, with bad news or uncertainty everywhere. Trump’s tariffs, the
Chinese government’s clampdown on corruption and extravagance, financial
pressures on consumers, questions about consumers’ long-term relationship
with alcohol and the loss of its CEO have all weighed. Nonetheless, despite it
all, it is worth noting Diageo’s revenues for the year were, effectively,
unchanged. Diageo shares have fallen almost 40% since the end of 2020, but its
annual revenues have grown at a 6.5% CAGR over the same time period ($20.2bn
FY2025 compared to $14.8bn FY2020). Of course, things could deteriorate for
the company as the share price appears to be forecasting, but it is important
to remember they could get better too. A combination of falling energy costs,
falling inflation and, eventually, falling interest rates in 2026 and beyond
could be a particular boost to consumer confidence and their propensity to
consume fine liquor.
I must restate how we think about the merits of a long-term holding in the
company.
If you’d bought Diageo 25 years ago, on 1st January 2000 you would’ve paid
just under £5 per share. This year, if you’d held on to your shares, they
would be trading at what today seems like a disappointing price, around £18.
It feels disappointing, because the shares have been much higher in the
intervening period. Nonetheless, £18 is still usefully more than treble the
price you paid for them. What’s more, you would this year receive a dividend
of the equivalent of 77 pence. That means – 77p as a percentage of £5
– that you would be receiving a dividend yield on your
purchase price of over 15%. You have trebled your money, you are now being
paid 15% to hold and, the critical proposition, you still own all the future
cash flows, inflation protection, growth and predictability provided by,
amongst other brands, Johnnie Walker, Diageo’s collection of single malt
whiskies, Don Julio tequila, Tanqueray, Crown Royal whiskey, a third of
Hennessy cognac and Veuve Clicquot and, of course, Guinness.
Very few things are certain in the business and investment world, but it is,
we think, highly likely these brands will be being consumed around the world
in 20 years’ time, and in higher volumes, assuming global economies grow.
That durability is both rare and, at least in theory, extremely valuable. That
is why we are reluctant to lose FGT’s exposure to the diamonds in Diageo’s
portfolio. Particularly at a time that the share price is at a near 10 year
low and trading on a mere 14 times forward price to earnings (P/E) multiple.
To put that into perspective, over the past 20 years, one of the very few
times the valuation has been lower was in the depths of the 2008/2009 global
financial crisis.
Another perspective on Diageo’s prospects is provided by the share price
performance of Burberry over the last
12 months. Like Diageo, Burberry’s shares were hit very hard in 2023/4 and
the company actually reported a loss (unlike Diageo). Through this period and
after careful consideration, we decided to retain FGT’s holding in Burberry,
believing its trading problems were temporary. Thankfully that was the correct
decision. Burberry appointed a new CEO, Joshua Schulman, who has acted swiftly
to correct previous operational errors and to remind investors of the calibre
of Burberry’s global brand. The shares responded well and are now up over
70% since end-September 2024. By analogy, we hope Diageo’s newly appointed
CEO will be able to deliver the same effects. Burberry’s share price
performance shows how quickly negative sentiment can turn for an asset of
enduring value.
OPTIMISM
The final proposition relates to our optimism about the UK stock market. Let
me frame this by highlighting the companies that have exited the portfolio
over the past year. With the exception of Hargreaves Lansdown which was taken
private, the other three departing companies – Mondelez, Heineken and Remy
Cointreau – were all non-UK holdings. These remain high calibre businesses
with strong brands and credible growth opportunities, but to be candid, the
opportunities are not as well-established or well-priced as those that we can
find in the UK stock market. This now means that 100% of FGT’s portfolio is
invested in UK companies.
Optimism in the UK stock market takes us back to RELX. RELX is a London-listed
company with an ambitious but credible strategy to accelerate its growth by
delivering insights and efficiencies to its customers with new analytics or
software tools, now often powered by Artificial Intelligence. For RELX that
strategy is really working – the group’s growth rate is manifestly
accelerating as it releases new products and services.
Ironically we see one of the most exciting opportunities on the London stock
market as being the owner of the London Stock Exchange itself,
LSEG . This is an important UK company, the 15th
biggest in its index and we are not aware of many major UK companies that
offer LSEG’s current combination of forecast double digit growth and
operating profit margins of close to 50%. In addition, we regard the joint
statement made by LSEG and Microsoft in early October as a significant
development. It announced that for the first time, AI-agents developed by
Microsoft will be enabled to work on and with LSEG’s “unparalleled” Data
and Analytics tools and that this will bring new insights and efficiencies for
LSEG’s customers. This strengthens our view that LSEG is an AI -
winner, with a new growth opportunity that is attractive from a global
perspective and more or less unique in the context of the UK stock market.
GROWTH OPPORTUNITY
We have held RELX and LSEG for over 20 years, and over the past few years we
have been working to build FGT’s exposure to other London-listed companies
executing ambitious and credible tech-led growth opportunities. In total we
believe we hold seven such companies which make up over 50% of FGT’s NAV.
Sometimes we have found these opportunities in surprising places. For
instance, our relatively recent initiation in Clarkson, the world’s biggest
shipbroker. That status has allowed the company to deliver robust shareholder
returns so far this century. As the accompanying chart in the Annual Report
shows, Clarkson has comfortably
outperformed the NASDAQ, both in Sterling, in the 21st century; no trivial
achievement. What really intrigued us, though, was longstanding CEO Andi
Case’s assertion that Clarkson is turning into the “Bloomberg” of global
shipping. He means the company is using its scale to offer its clients
electronic trading platforms, powered by rich data that is proprietary to
Clarkson. The shares have been hit in 2025 by the furore about tariffs, but
this has allowed us to build the holding in what is a rare UK-listed company
– the undisputed leader in its field and now with a transformative growth
strategy.
Experian is the biggest credit rating agency in the world,
with, it claims, unmatched and
detailed data on millions of individuals. That data asset has allowed the
company to grow revenues at 8% per annum since 2020 (with faster growth in
earnings per share), but in 2025 and beyond that growth is set to accelerate,
as it introduces new software services. Experian’s shares are up six-fold
since it listed back in 2006. Arguably the company’s prospects are better
than ever.
We have been thinking about Autotrader
as a potential investment for many years. A trigger for us to initiate, as we
did earlier in 2025, was considering Autotrader’s claim that its new
Dealbuilder product means that its customers’ forecourts are, effectively,
open 24 hours a day. Such efficiency gains are exactly the sort of catalyst
that have driven big bull markets for US technology and platform companies. We
hope both Autotrader and similar tech-platform, Rightmove
, will continue delighting their customers with innovative
new services and, in time, delight their shareholders too.
Rightmove has many of the characteristics that we look for in a 21st century
growth company. It has a substantial market opportunity and the company’s
platform helps it generate very high margins and returns to shareholders. It
has a dominant market position, with more than 80% of all time spent on UK
property portals on the Rightmove website. As a direct consequence, Rightmove
holds far and away the largest proprietary dataset on UK property-search
behaviour, which gives it a credible opportunity to use AI to accelerate its
revenues and profits in the coming years. That is why in early November we
were pleased to hear the company plans to invest in its platform and
technology in order to boost long-term growth. And yet the shares fell steeply
on the news, in part due to concerns that this investment would hamper
short-term profitability. In our opinion, Rightmove is doing exactly the right
thing and, on any reasonable time horizon, the share price should be higher.
Another long-term holding is Sage ,
and in our recent meetings with senior executives they have spoken about their
ambition to make Sage a company that meets the “rule of 40%”. That rule is
a widely recognised benchmark, used to measure the performance of Software as
a Service (SaaS) companies. It combines the annual recurring revenue growth
rate with the EBITDA margin, and a total of 40% or more signifies success.
It’s interesting the company is so open about this ambition, because at
Sage’s interim results in May 2025, recurring revenue growth was 11% and
EBITDA margins were 23.2%. That does not add up to 40%. Nonetheless, when you
consider that stated ambition in the context of CEO Steve Hare’s claim that
“Sage is at the forefront of AI innovation in Accounting, Human Resources
and Payroll”, one can perhaps see where the required acceleration in revenue
growth and improvement in profitability could come from. It’s tantalising
because, understandably, Sage’s current valuation is notably below that
cohort of, largely US, companies that have attained the rule of 40%.
The seven tech enabled companies discussed – RELX, LSEG, Clarkson, Experian,
Autotrader, Rightmove and Sage – are major holdings and this means FGT’s
portfolio looks very different to and performs very differently from the FTSE
All Share Index. Effectively, we own these “growth” businesses, rather
than, say the banks, oil majors and miners that make up a big proportion of
the UK stock market. They are indeed more highly valued than the average UK
quoted company, but this does not mean they are overvalued. In fact, we think
their high profitability and, crucially, the clear growth opportunities they
enjoy make them bargains.
“RELX offers structural growth supported by increasingly sophisticated
information-based analytics and decision-making tools so powerful that it will
be impossible to remain competitive without them.”
JP Morgan 2024
“Over time what customers will really experience is an entire ecosystem,
seamlessly combining Microsoft’s enterprise applications and LSEG’s
workflows and data.”
David Schwimmer, CEO
LSEG
“We are becoming the ‘Bloomberg’ of the global maritime industry.”
Andi Case, CEO
Clarkson
“Experian has evolved into a global data, analytics and software company,
solving complex problems across financial services, healthcare, automobile and
marketing.”
Experian
“We remain more than 10x larger than our nearest competitor.”
Autotrader
“Our data leadership and ability to serve the market is actually
strengthening all the time.”
Johan Svanstrom, CEO
rightmove
“Sage is at the forefront of AI innovation in Accounting, Human Resources
and Payroll.”
Steve Hare, CEO
Sage
And this is even more the case after their sell-off during the summer of 2025.
As to that sell-off, I am reminded of the similar concerns that weighed on
RELX back in 2004, when Google Scholar was launched. The fear was that Google
would disintermediate RELX’s data services. It turned out not to be the
case, because of the proprietary nature of much of RELX’s data and its deep
understanding of the work practices of scientists and lawyers. The same can be
said again in 2025 for RELX and our other data, platform and software
holdings.
There is another principle we have taken from The Midas Touch. One of the key
learnings from that book was the merits of concentrated portfolios. Portfolio
concentration brings risks, but it also brings great rewards, if your stock
selections turn out to be right. FGT’s status as an Investment Trust allows
us to back our holdings with particularly high conviction. The portfolio
currently has just 20 companies and the top-10 accounts for over 90% of the
NAV. Candidly, I believe the reason we are still advising FGT after nearly a
quarter of a century is that the portfolio has always been and remains
concentrated and, over the longer term, it has worked.
Note what the portfolio is concentrated on. We own “investment diamonds”
and, in addition to those discussed earlier, I’d cite:
Fever-Tree
The world’s #1 premium mixer. The US is now its biggest market, where it has
#1 positions in Tonic and Ginger Beer. The joint venture Fever-Tree has
entered with Molson Coors in the United States has the potential to further
accelerate the growth of the brand there.
Intertek
A global leader in consumer product Testing and Assurance. To borrow Warren
Buffett parlance, Intertek is a real “toll - booth”
company, in that it provides an essential but low-cost service to global
manufacturers. The company claims 400,000 customers in 100 countries and high
levels of customer retention. We agree with Intertek’s comment about its
Testing and Assurance services – “Without Intertek consumers and customers
cannot operate safely.”
Unilever
We believe Unilever’s increasing shift to higher quality, premium brands –
particularly those in Health, Beauty and Wellbeing – will accelerate the
group’s growth rate. But perhaps the true jewel in the crown of Unilever is
Hindustan Lever, the biggest consumer company in the world’s most populous
nation, making up over 10% of Unilever’s total revenues. Unilever’s most
recent quarterly dividend was 0.39p, up 7% on the same dividend 12 months ago.
Further business growth in Unilever’s biggest markets, India and the US,
should help the company continue its multi-decade record of growing dividends.
Cazenove
Schroders is arguably now one of the cheapest assets in the portfolio, trading
on a forecast P/E of c.10x and a dividend yield of 5.5%. This for a company
which has recently hit record assets of over $1trn of active assets and a
cash-rich balance sheet. And, its own investment diamond, Cazenove. We believe
the need for trusted and effective private wealth management is greater than
ever and that Cazenove is well-placed to deliver it.
IRN-BRU
This inimitable brand has driven dividend growth for its owner, AG Barr, for
decades and looks set to continue to do so. Since 2021 IRN-Bru’s revenues
have grown 33%, meanwhile AG Barr’s dividends are up over 40%.
Manchester United
A company and brand which we regard as exceptionally valuable in a world where
sports franchises are changing hands at record valuations. The sale of
basketball team the Los Angeles Lakers in June 2025 valued it at $10bn, the
highest price ever placed on a sports franchise. The current enterprise value
of Manchester United is just c.$3.0bn, according to Bloomberg.
Games Workshop
We have long admired Games Workshop’s war - gaming and
fantasy miniatures, recognising the company’s extraordinary pricing power
and a ROE of consistently over 60%. The shares have performed well in recent
years, but we have recently initiated a small position and are looking for
opportunities to build.
Of course, we hope the combination of these investment diamonds with our
collection of UK-listed digital growth companies will both protect
shareholders’ wealth and drive the creation of “fabulous” new wealth
over time. While even my optimistic bias doesn’t permit me to expect to
still be advising FGT in another 25 years’ time, I do believe it is
reasonable to expect that many of today’s portfolio holdings will still be
core positions in 2050. And that they will have radically higher market
capitalisations then.
Nick Train
Director, Lindsell Train Limited
Portfolio Manager
2 December 2025
STRATEGIC REPORT / Business Review
The Strategic Report, provides a review of the Company’s policies and
business model, together with an analysis of its performance during the
financial year and its future developments.
PORTFOLIO STRUCTURE AS AT 30 SEPTEMBER 2025
100.0% 2024: 97.1% Invested in UK domiciled companies 90.3% 2024: 93.4% FTSE 100 companies (and comparable overseas companies)
87.5% 2024: 90.5% Top ten holdings 1.9% 2024: 0.7%^ Gearing^ 86.4% 2024: 84.1%^ Active Share^
^ Please see Glossary of Terms and Alternative Performance Measures.
The Strategic Report has been prepared for Shareholders to assess how the
Directors have carried out their duty to promote the success of the Company.
It also considers the principal risks and uncertainties facing the Company.
The Strategic Report contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the information
available to them up to the date of this report and such statements should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information.
As an externally managed investment company there are no executive directors,
employees or internal operations. The Company delegates its day-to-day
management to third parties. The principal service providers to the Company
are Frostrow Capital LLP ("Frostrow") which acts as AIFM, company secretary
and administrator; and Lindsell Train Limited ("Lindsell Train") which acts as
Portfolio Manager. The Bank of New York Mellon (International) Limited is the
Company’s Depositary.
The Board is responsible for all aspects of the Company’s affairs, including
the setting of parameters for and the monitoring of the investment strategy as
well as the review of investment performance and policy. It also has
responsibility for all strategic issues, the dividend policy, the share
issuance and buy-back policy, gearing, share price and discount/ premium
monitoring as well as corporate governance matters.
STRATEGY FOR THE YEAR ENDED 30 SEPTEMBER 2025
Throughout the year under review, the Company continued to operate as an
approved investment company, following its investment objective to achieve
capital and income growth and to provide Shareholders with a total return in
excess of that of the FTSE All-Share Index. The Company’s performance is
discussed in the Chairman’s Statement and the Portfolio Manager’s Report.
During the year, the Board, AIFM and the Portfolio Manager undertook all ESG,
strategic and administrative activities.
The Portfolio Manager engages with all the companies in the portfolio to
understand their ESG approach and has developed its own methodology to assess
the carbon impact of the portfolio. Lindsell Train became a signatory of the
Net Zero Asset Managers initiative (“NZAM”) in December 2021. This
reflects Lindsell Train’s enhanced efforts as a firm to support the goal of
net zero greenhouse gas emissions by 2050.
INVESTMENT POLICY
The Company’s investment policy is to invest principally in the securities
of companies either listed in the UK or otherwise incorporated, domiciled or
having significant business operations within the UK. Up to a maximum of 20%
of the Company’s portfolio, at the time of acquisition, can be invested in
companies not meeting these criteria.
The portfolio will normally comprise up to 30 investments. This level of
concentration is likely to lead to an investment return which is materially
different from the Company’s benchmark* index and is likely to be more
volatile and carry more risk.
Unless driven by market movements, securities in FTSE 100 companies and
comparable companies listed on an overseas stock exchange will normally
represent between 50% and 100% of the portfolio; securities in FTSE 350
companies and comparable companies listed on overseas stock exchanges will
normally represent at least 70% of the portfolio.
The Company will not invest more than 15% of the Company’s net assets, at
the time of acquisition, in the securities of any single issuer. For the
purposes of this limit only, net assets shall exclude the value of the
Company’s investment in Frostrow Capital LLP.
The Company does not and will not invest more than 15%, in aggregate, of the
value of the gross assets of the Company in other listed closed ended
investment companies. Further, the Company does not and will not invest more
than 10%, in aggregate, of the value of its gross assets in other listed
closed ended investment companies except where the investment companies
themselves have stated investment policies to invest no more than 15% of their
gross assets in other listed closed ended investment companies.
The Company has the ability to invest up to 25% of its gross assets in
preference shares, bonds and other debt instruments, although no more than 10%
of any one issue may be held.
In addition, a maximum of 10% of the Company’s gross assets can be held in
cash, where the Portfolio Manager believes market or economic conditions make
equity investment unattractive or while seeking appropriate investment
opportunities or to maintain liquidity.
The Company’s gearing policy is that gearing will not exceed 25% of the
Company’s net assets.
No investment will be made in any fund or investment company managed by
Lindsell Train without the prior approval of the Board.
* The Company publishes its Active Share scores in its monthly fact sheet for
investors and in both the annual and half-yearly reports to highlight how
different the portfolio is from the Company’s benchmark index.
In accordance with the UK Listing Rules of the Financial Conduct Authority
(“FCA”), the Company can only make a material change to its investment
policy with the approval of its Shareholders and HMRC.
DIVIDEND POLICY
The Company’s aim is to increase or at least maintain the total dividend
each year. A first interim dividend is typically paid in May and a second
interim in November in lieu of a final dividend.
The level of dividend growth is dependent upon the growth and performance of
the companies within the investment portfolio. The decision as to the level of
dividend paid takes into account the income forecasts maintained by the
Company’s AIFM and Portfolio Manager as well as the level of revenue
reserves. These forecasts consider dividends earned from the portfolio
together with predicted future earnings and are regularly reviewed by the
Board.
Risks to the dividend have been considered as part of the Principal and
Emerging Risks review. They include worldwide economic, political and
financial instability leading to significant deterioration in the level of
income we receive and unforeseen and significant changes to our regulatory
environment.
All dividends have been distributed from current year income and revenue
reserves.
PERFORMANCE
Whilst the Board is disappointed that the Company has underperformed in the
short and medium term, the Portfolio Manager’s report explains why he
believes that the Company’s portfolio remains appropriate. The Board remains
supportive of the Portfolio Manager’s view. Please refer to the Chairman’s
Statement for further information.
Whilst performance is measured against the FTSE All-Share Index, the
Company’s portfolio is constructed and managed without reference to a stock
market index with the Portfolio Manager selecting investments based on their
assessment of their long-term value, thereby seeking to achieve the investment
objective of the Company.
PROSPECTS
The Board continues to support the Portfolio Manager’s strategy of investing
in high quality companies that own both durable and cash generative brands.
The Board firmly believes that this strategy will deliver strong investment
returns over the long term.
^ Alternative Performance Measure (see glossary)
STRATEGIC REPORT / Principal Risks, Emerging Risks and
Risk Management
The Board is responsible for managing the risks faced by the Company. Through
delegation to the Audit Committee, the Board has established procedures to
manage risk, to review the Company’s internal control framework and to
establish the level and nature of the principal risks the Company is prepared
to accept in order to achieve its long-term strategic objective. At least once
a year the Audit Committee carries out a robust detailed assessment of the
principal and emerging risks.
A risk management process has been established to identify and assess risks,
their likelihood and the possible severity of impact. Further information is
provided in the Audit Committee Report within the Annual Report .
THE COMPANY’S APPROACH TO RISK MANAGEMENT
These principal risks and the ways they are managed or mitigated are set out
as follows.
For each risk identified, during the year the Audit Committee considers both
the likelihood and impact of the risk and then assigns an inherent risk score.
The scoring of the risk is then reconsidered once the respective key
mitigations are applied and a residual risk score is assigned.
The Board’s policy on risk management has not materially changed during the
course of the reporting period and up to the year end.
During the year, the Audit Committee conducted an exercise to identify and
assess any new or emerging risks affecting the Company and to take any
necessary actions to mitigate their impact. Further information can be found
in the report of the Audit Committee within the Annual Report.
Change in inherent risk assessment over the last financial year:
No change Decreased Increased
New risk included during the year
Principal Risks and Uncertainties Change Key Mitigations
Corporate Strategy The Company’s investment objective or the UK Equity Income sector becomes unattractive to Shareholders. At each meeting the Board reviews movements in the Company’s shareholder register. There are regular interactions and engagement with Shareholders (including at the AGM).
Regular feedback from Shareholders is received from the Company’s broker. Frostrow meets regularly with major Shareholders on the Company’s behalf. In addition, the
Chairman and the Senior Independent Director meet with key Shareholders to ascertain views. The Company publishes its Active Share score in its monthly fact sheet for
investors and in both the annual and half-yearly reports to highlight how different the portfolio is from the Company’s benchmark index.
The Company’s share price total return may differ materially from the NAV per share total return. The Board operates a share buy-back policy which is intended to offer some protection against the share price widening beyond a 5% discount to NAV per share. There is
also a share issuance programme which acts as a premium control mechanism. Further details of the Company’s share buy-back policy and premium control mechanism can be
found on the Company’s website. During the year the majority of the shares available under the buy-back authority granted at the 2025 AGM were bought back and the
Company held a General Meeting on 11 November 2025 where shareholder authority was obtained to buy back a further 19,113,377 shares on the same basis. The Board
continues to keep this matter under close review and receives feedback from the Company’s broker and major Shareholders.
Investment Strategy and Activity The departure of a key individual at the Portfolio Manager may affect the Company’s performance. The Board keeps the portfolio management arrangements under continual review. In turn, the Portfolio Manager reports on developments at Lindsell Train, including
succession and business continuity plans. The Board meets regularly with other members of the wider team employed by the Portfolio Manager. As at 31 March 2025 the
founder directors of Lindsell Train Limited have given their verbal assurance that they remain committed to Lindsell Train Limited for at least seven years on a rolling
basis.
Prolonged underperformance against the Benchmark. The Board maintains ongoing and active engagement with the Portfolio Manager. At each meeting, the Board challenges and discusses the structure of the portfolio,
including asset allocation, portfolio concentration, and individual stock positions. The Board also regularly reviews portfolio performance against both the benchmark and
the Company’s peer group to assess the effectiveness of the investment strategy. In addition to these formal meetings, the Board meets regularly with the Portfolio
Manager outside the scheduled Board meetings to discuss portfolio developments, market conditions, and the implementation of the investment approach. The Board also
oversees the publication of various portfolio measures and statistics in the Company’s monthly fact sheet and in its annual and half-yearly reports. These include the
number of holdings, Active Share, and portfolio turnover, which are intended to demonstrate to investors the outcomes of the investment approach and the degree to which
the portfolio differs from the benchmark index. During the year the Board engaged with large Shareholders and as explained in the Chairman’s Statement will provide all
Shareholders with the opportunity to vote on the continuation of the Company at the forthcoming AGM.
A major geopolitical or natural event such as war, terrorism, natural disaster or pandemic, and the financial, monetary and/or political responses to such events may have an adverse impact on the revenues and operations of portfolio companies to the extent that they may no longer promise returns sufficient to meet the Company’s investment objective. Portfolio companies experience a reduction in share price and dividends. The Board reviews the performance of the portfolio against the benchmark and the Company’s peer group at every meeting. The Board holds frequent portfolio update
meetings with the Portfolio Manager in addition to Board meetings. The Portfolio Manager regularly engages with the portfolio companies to discuss any matters of concern
that may effect operational resilience.
The investment approach is not aligned with shareholder expectations in relation to ESG matters. The Board conducts an annual review of the Portfolio Manager’s ESG policy to ensure that it is consistent with that expected by the Board. In addition the Board reviews
the ESG activities of Lindsell Train to ensure progress is being made by portfolio companies. The Board also conducts an annual review of other service providers’
policies in relation to internal controls and governance matters, notably modern slavery, GDPR, cyber security and whistleblowing policies. The Portfolio Manager has
developed a propriety system to assess the inherent and emerging ESG risks for the investment portfolio which the Portfolio Manager uses when engaging with the portfolio
companies. This informs the decision to invest, retain or divest any portfolio investment.
The adverse impact of climate change on the portfolio companies’ operational performance. The Board receives quarterly ESG updates, which include an update on any climate change related engagement, from the Portfolio Manager together with monthly portfolio
updates. The Board challenges the Portfolio Manager on ESG matters to ensure that the portfolio companies are acting in accordance with the Board’s ESG approach. The
Portfolio Manager is a signatory to the UK Stewardship Code and actively engages with portfolio companies on ESG matters including climate change. Lindsell Train
developed its own methodology to assess the carbon impact of the portfolio. Lindsell Train became a signatory of the NZAM initiative in December 2021. This reflects
Lindsell Train’s enhanced efforts as a firm to support the goal of net zero greenhouse gas emissions by 2050. Further information on how Lindsell Train addresses the
risks associated with climate change can be found in the responsible investment section of the Annual Report. Details of the Company’s and Portfolio Manager’s ESG
policies together with the weighted average carbon intensity of the portfolio companies are set out in the responsible investment section of the Annual Report.
Operational Service providers to the Company deliver poor performance or fail to meet their contractual obligations to the Company, include errors or irregularities in information published on behalf of the Company. The Board reviews all information supplied to Shareholders and the AIFM’s marketing activity at each meeting. The AIFM’s daily controls ensure accurate publication of
information. The Board receives regular updates from the AIFM of press references to the Company and its major service providers, as well as regular news on sector
developments from the Company’s broker and the AIC. The Board has the ability to replace any service provider which may be the source of reputational concerns. The Audit
Committee receives assurance from all service providers that they have adequate business continuity plans and internal controls in place. These controls are reviewed by
the AIFM who also meets with the Company’s principal service providers during the year.
Financial Fraud (including unauthorised payments and cyber crime/cyber attacks) occurs leading to a loss. Risk of increased cyber crime and cyber attacks on the portfolio companies which could lead to the potential loss of confidential data and impact the confidentiality, integrity or availability of data and systems, potentially resulting in financial losses. The Board has identified an increased risk of fraud during the year, reflecting greater exposure to digital threats and evolving regulatory expectations. The Company
continues to monitor this risk closely and remains focused on safeguarding shareholder interests. The AIFM and Portfolio Manager have in place robust compliance
monitoring programmes. The Board receives monthly compliance reviews and a quarterly expenses analysis. An annual statement is obtained by the Audit Committee from all
service providers giving assurances that there have been no instances of fraud or bribery. The Board reviews the cyber security policies of all service providers.
The Company is exposed to market price risk (i.e. performance of investee companies’ shares). The Directors acknowledge that market risk is inherent in the investment process. The Portfolio Manager maintains a diversified portfolio which is concentrated in a few
key sectors. The Board has imposed guidelines within its investment policy to limit exposure to individual holdings and limits the level of gearing. The AIFM reports to
the Board with respect to compliance with investment guidelines on a monthly basis. The Portfolio Manager provides the Board with regular updates on market movements. No
investment is made in derivative instruments and no currency hedging is undertaken. Further information on financial instruments and risk can be found in note 17 to the
Financial Statements.
Accounting, Legal and Regulatory The Company and/or the Directors fail to comply with their legal and regulatory obligations. The Board monitors regulatory change with the assistance of its AIFM, Portfolio Manager, the AIC and external professional advisers to ensure compliance with applicable
laws and regulations. The Board reviews compliance reports and internal control reports provided by its service providers, as well as the Company’s Financial Statements
and revenue forecasts. The Depositary reports twice yearly to the Audit Committee, confirming that the Company, acting through the AIFM, has been managed in accordance
with the AIFMD, the Investment Funds Sourcebook, the Articles (in relation to the calculation of the NAV per share) and with investment restrictions and leverage limits.
The Depositary Report can be found in the Shareholder information section of the Company’s website. The AIFM presents a quarterly report on changes in the regulatory
environment, including AIC updates, and how changes have been addressed.
Poor adherence to corporate governance best practice or errors or irregularities in published information could lead to censure and/or result in reputational damage to the Company. The Board reviews all information supplied to Shareholders and the AIFM’s marketing activity at each meeting. Details of the Company’s compliance with corporate
governance best practice, including information on relationships with Shareholders, are set out in the Corporate Governance Report within the Annual Report.
EMERGING RISKS
During the year, the Audit Committee conducted an exercise to identify and
assess any new or emerging risks affecting the Company and to take any
necessary actions to mitigate their impact.
The Audit Committee regularly reviews the risk register. The scoring of each
risk and any emerging risks are discussed in detail as part of this process to
ensure that emerging as well as known risks are identified and, so far as
practicable, mitigated.
The experience and knowledge of the Directors is useful in these discussions,
as are update papers and advice received from the Board’s key service
providers such as the Portfolio Manager, the AIFM and the Company’s broker.
In addition, the Company is a member of the AIC, which provides regular
technical updates as well as drawing members’ attention to forthcoming
industry and/or regulatory issues and advising on compliance obligations.
As well as offering investment opportunities, the Board believes the
development and exploration of technological breakthroughs, such as artificial
intelligence, may damage the revenue and operations of portfolio companies to
the extent that they no longer offer the promise of returns consistent with
the Company’s investment objective.
The Board identified the global standing of the UK market as an emerging risk.
International competition for new listings and a significant number of market
departures could mean it is harder for a UK equity strategy to capture
exposure to important global growth themes.
In addition, ongoing consolidation within the investment trust sector presents
both risks and opportunities for the Company. The Committee is mindful that
increased merger and acquisition activity, pressure on management fee
structures, and heightened investor focus on scale and liquidity could lead to
greater competition among trusts and potentially affect the Company’s market
position.
Finally, the Committee continues to monitor the risk associated with the
Company’s forthcoming continuation vote in January 2026, recognising the
importance of maintaining investor confidence and clear communication around
the Company’s long-term strategy.
To mitigate these risks the Board holds regular portfolio update meetings with
the Portfolio Manager, who continues to monitor the situation closely.
The Committee will continue to review newly emerging risks that arise from
time to time to ensure that the implications for the Company are properly
assessed and mitigating controls introduced where necessary.
FUTURE DEVELOPMENTS
The Board’s primary focus is on the Portfolio Manager’s investment
approach and performance. The subject is thoroughly discussed at every Board
meeting.
In addition, the AIFM updates the Board on Company communications, promotions
and investor feedback, as well as wider investment company issues.
An outline of performance, investment activity and strategy, and market
background during the year, as well as the outlook, is provided in the
Chairman’s Statement and the Portfolio Manager’s Report.
It is expected that the Company’s strategy will remain unchanged in the
coming year.
LONG-TERM VIABILITY STATEMENT
The Directors have carefully assessed the Company’s financial position and
prospects as well as the principal risks facing the Company and have formed a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the next five financial years.
The Board has chosen a five year horizon in view of the long-term outlook
adopted by the Portfolio Manager when making investment decisions.
To make this assessment and in reaching this conclusion, the Audit Committee
has considered the Company’s financial position and its ability to liquidate
its portfolio and meet its liabilities as they fall due and notes the
following:
* The portfolio is principally comprised of investments
traded on major international stock exchanges. Based on current trading
volumes, 99.3% of the current portfolio could be liquidated within 30 trading
days, with 67.0% in seven days, and there is no expectation that the nature of
the investments held within the portfolio will be materially different in
future;
* With an ongoing charges ratio of 0.62%, the expenses
of the Company are predictable and modest in comparison with the assets and
there are no capital commitments foreseen which would alter that position;
* Expenses of the Company are covered more than four
times by investment income;
* The closed-ended nature of the Company means that,
unlike an open-ended fund, it does not need to realise investments when
Shareholders wish to sell their shares;
* The founder directors of Lindsell Train Limited have
given their verbal assurance that they remain committed to Lindsell Train
Limited for at least seven years on a rolling basis; and
* The Company has no employees, only its Non-Executive
Directors. Consequently it does not have redundancy or other
employment-related liabilities or responsibilities.
The Audit Committee has considered the potential impact of its principal risks
and various severe but plausible downside scenarios as well as stress testing
and reverse stress testing. It has also made the following assumptions in
considering the Company’s longer-term viability:
* The Board and the Portfolio Manager will continue to
adopt a long-term view when making investments, and anticipated holding
periods will be at least five years;
* The Company invests principally in the securities of
UK listed companies to which investors will continue to wish to have exposure;
* The Company will maintain its bank loan facility;
* Regulation will not increase to a level that makes
running the Company uneconomical; and
* The performance of the Company will be satisfactory.
The Board’s long-term view of viability will, of course, be updated each
year in the Company’s Annual Report.
CONTINUATION OF THE COMPANY
An opportunity to vote on the continuation of the Company will be proposed at
the AGM to be held in January 2026. Please see the Chairman’s Statement and
the Notice of Meeting for further information.
ENGAGING WITH THE COMPANY'S STAKEHOLDERS
The following ‘Section 172’ disclosure, required by the Companies Act 2006
and the AIC Code, describes how the Directors have had regard to the views of
the Company’s stakeholders in their decision-making.
Stakeholder group The benefits of engagement with the Company’s stakeholders How the board, the AIFM and the Portfolio Manager have engaged with the Company’s stakeholders
Investors The Board recognises the importance of communications with Shareholders. Clear communication of the Company’s strategy and the performance against the Company's objective can help the share price trade closer to its NAV per share which benefits Shareholders. New shares may be issued to meet demand without net asset value per share dilution to existing Shareholders. Increasing the size of the Company can benefit liquidity as well as spread costs. Under the share buy-back policy, the Company will normally buy in shares being offered on the stock market whenever the discount approaches a level of 5% and then either hold those shares in Treasury or cancel them. Any shares held in Treasury can later be sold back to the market if conditions permit. The AIFM and the Portfolio Manager, on behalf of the Board, complete a programme of investor relations throughout the year. An analysis of the Company’s shareholder
register is provided to the Directors at each Board meeting along with marketing reports from Frostrow. The Board reviews and considers the marketing plans on a regular
basis. Reports from the Company’s broker are submitted to the Board on investor sentiment and industry issues. Shareholders have access to the Board, directly and via
the Company Secretary, throughout the year. These communications help the Board make informed decisions when considering how to promote the success of the Company for the
benefit of shareholders over the long term. As part of our ongoing commitment to Shareholder engagement and corporate transparency, the Board confirms that a
continuation vote will be held at the forthcoming AGM. This vote provides Shareholders with the opportunity to determine whether the Company should continue in its
present form. Key mechanisms of engagement include: * The Annual General Meeting
* The Chairman and the Senior Independent Director make themselves available to engage with Shareholders
* The Chairman writes to major Shareholders each year offering them the opportunity to meet with himself and the Senior Independent Director.
* The Company’s website hosts reports, video interviews with the Portfolio Manager and monthly fact sheets
* One-on-one investor meetings facilitated by Frostrow who actively engage with professional investors, typically discretionary wealth managers, some institutions and a
range of execution-only platforms. Regular engagement helps to attract new investors and retain existing Shareholders, and over time results in a stable share register
made up of diverse, long-term holders
* The Board will explain in its announcement of the results of the AGM the actions it intends to take to consult Shareholders in order to understand the reasons behind
any significant (defined for this purpose as 20% or more) votes against resolutions. Following the consultation, an update will be published no later than six months
after the AGM and the Annual Report will detail the impact the Shareholder feedback has had on any decisions the Board has taken and any actions or resolutions proposed
At each meeting the Board reviews movements in the Company’s shareholder register. There are regular interactions and engagement with Shareholders (including at the
AGM). Regular feedback from Shareholders is received from the Company’s broker.
Portfolio Manager Engagement with the Company’s Portfolio Manager is necessary to evaluate its performance against the Company’s stated strategy and to understand any risks or opportunities this may present. The Board monitors the Manager’s approach to environmental, social and governance (“ESG”) issues. Engagement also helps ensure that portfolio management costs are closely monitored and remain competitive. The Board meets regularly with representatives of the Portfolio Manager throughout the year, with quarterly presentations and also monthly performance and compliance
reporting. This provides the opportunity for both the Board and Portfolio Manager to explore and understand how the portfolio has performed and what may be expected in
the future. The Board receives regular updates from the Portfolio Manager concerning engagement on ESG matters with the companies within the portfolio. The Audit
Committee also meets with members of the risk management and investment compliance teams at Lindsell Train to better understand the Portfolio Manager’s internal controls.
The Audit Committee reviews Lindsell Train’s control reports annually. During the year the Board discussed its approach to ESG matters with the Lindsell Train team
providing more detail of their specific approach to responsible ownership which is further explained in the responsible investment section of the Annual Report. The
Board considers its approach to ESG as well as that of the companies in which the Company invests, and has developed its own policy which can be found in the responsible
investment section of the Annual Report. The Board encourages the Company’s Portfolio Manager to engage with companies and in doing so expects ESG issues to be a key
consideration. The Board receives an update on Lindsell Train’s engagement activities within a dedicated quarterly ESG report. A member of Lindsell Train’s investment
team attends each Board meeting to provide an update on ESG issues and engagement activities since the last Board meeting. The Board holds at least one meeting at the
offices of Lindsell Train each year, where Directors meet with members of the Lindsell Train team. The Portfolio Manager’s performance is evaluated informally on a
regular basis, with a formal review carried out on an annual basis by the Board.
Other Service Providers As an externally managed investment company, the Company has no employees, customers, operations or premises. Therefore, the Company’s key stakeholders (other than its shareholders) are considered to be its service providers. The Company contracts with third parties for other services including: depositary, investment accounting & administration as well as company secretarial and registrars. The Company ensures that the third parties to whom the services have been outsourced complete their roles in line with their service level agreements and are able to continue to provide these services, thereby supporting the Company in its success and ensuring compliance with its obligations. The Board and Frostrow engage regularly with other service providers both in one-to-one meetings and via regular written reporting. This regular interaction provides an
environment where topics, issues and business development needs can be dealt with efficiently and collegiately. The Board maintains regular contact with the Company’s
key service providers as well as carrying out a review of the service providers’ business continuity plans and additional cyber security provisions. The key service
providers’ performance is evaluated by the Board on an annual basis, or more often if appropriate. The terms and conditions underlying the relationship between the
service providers are reviewed as part of this process. This approach is taken to enhance service levels and strengthen relationships between the Company and its
providers to ensure the interests of the Company’s stakeholders are best served by maintaining a high level of service whilst keeping costs proportionate. During the
year, the Committee reviewed the internal controls reports of each of the Company’s key service providers. In addition, each key service provider provided confirmation
that there had been no material changes in their internal controls between the date of their internal controls report and the date of this report.
Portfolio Companies The Portfolio Manager invests in a concentrated portfolio of durable business franchises with the intention of holding these positions for a considerable time. The Portfolio Manager engages with the management of these companies on a periodic basis and reports its impressions on the prospects of the companies to the Board. Gaining a deeper understanding of the portfolio companies and their strategies as well as incorporating consideration of ESG factors into the investment process assists in understanding and mitigating risks of investments as well as identifying potential opportunities. The Board encourages the Company’s Portfolio Manager to engage with companies and in doing so expects ESG issues to be an important consideration. The Board receives an
update on Lindsell Train’s engagement activities within a dedicated quarterly ESG report together with quarterly updates concerning the prospects of the portfolio
companies. Details of Lindsell Train’s approach to responsible ownership can be found in the responsible investment section of the Annual Report.
Regulators The Board ensures compliance with rules and regulations as relevant to the Company. The Company Secretary reports to the Board on a monthly basis and at each Board meeting.
The Company's Lender Investment companies have the ability to borrow with a view to enhancing long-term returns to Shareholders. Engagement with the Company’s lender ensures that it fully understands the nature of the Company’s business, the strategy adopted by the Portfolio Manager and the extent to which the Company complies with its loan covenants. Regular reporting to the lender with respect to adherence with loan covenants and ad hoc meetings with the AIFM.
Key areas of engagement Main decisions and actions taken
Investors The impact of market volatility caused by certain geopolitical events on the portfolio. Shareholders are provided with performance updates via the Company’s website as well as the annual and half-year financial reports and monthly factsheets.
Ongoing dialogue with Shareholders concerning the strategy of the Company, performance and the portfolio. The Portfolio Manager and Frostrow meet regularly with Shareholders and potential investors to discuss the Company’s strategy, performance and portfolio. Both the Portfolio Manager and Frostrow also engage with the Press on the Company’s behalf. Information on how to vote your investment company shares on a selection of major platforms can be found within the Notice of Meeting. The Chairman, and Senior Independent Director, accompanied by members of the Frostrow team, met with representatives from major Shareholders to discuss, amongst other things, shareholder engagement. Further details concerning ongoing discussions with major Shareholders can be found in the Chairman’s Statement.
Share price performance. The Board reviews the Company’s share price discount/premium on a daily basis and has a share buy-back policy, which during the year resulted in 34,698,781 shares being bought back. Details of the Company’s share issuance and buy-back policy can be found on the Company’s website.
The continuation of the Company. The Chairman and Senior Independent Director spoke to a number of Shareholders regarding the proposed continuation of the Company ahead of the vote to be held at the 2026 Annual General Meeting. The Board recommends that Shareholders vote in favour of the continuation of the Company.
Investors
Asset Reunification. During the year the Company launched an asset reunification programme with AssetTrace+ to reconnect Shareholders who had become disengaged from their holdings, to reunite them with their assets and encourage engagement.
Portfolio Manager Portfolio composition, performance, ESG matters, outlook, and business updates. The Portfolio Manager has set ESG targets and engages regularly with investee companies’ executive management. The Board receives quarterly ESG updates from the Portfolio Manager.
The impact of market volatility upon their business and how some companies in the portfolio have sought to take advantage of the increase of digitisation and AI. The Board has received regular updates from the Portfolio Manager throughout the recent period of market volatility, including its impact on investment decision making.
The integration of ESG into the Portfolio Manager’s investment processes. The Portfolio Manager reports regularly any ESG issues in the portfolio companies to the Board.
Climate Change. During the year the Audit Committee considered the Portfolio Manager’s assessment of the risks associated with climate change on the portfolio and how the transition to a low-carbon economy will affect all businesses, irrespective of their size, sector or geographic location.
Management Fees. Subsequent to the year end the Board negotiated lower management fees with Lindsell Train..
Other service providers As an externally managed investment company, the Company does not have employees. Its main stakeholders therefore comprise its Shareholders and a small number of service providers. The Board has delegated a wide range of The Board met regularly with Frostrow (the AIFM), representatives of which attend every Board meeting to provide updates on risk management, accounting, administration and corporate governance matters. Reviews of the Company’s service providers have been positive and the Directors believe their continued appointment is in the best interests of the Company. The Company has invested in Frostrow and The Lindsell Train Investment Trust plc. Further details can be found on the Company’s website. Subsequent to the year end the Board negotiated lower management fees with Frostrow.
activities to external agents, in addition to the Portfolio Manager. These services include AIFM, investment administration, management and financial accounting, Company Secretarial and certain other administrative requirements and registration services.
Each of these contracts was entered into after full and proper consideration by the Board of the quality and cost of the services offered, including the control systems in operation in so far as they relate to the affairs of the Company. The Directors
have frequent engagement with the Company’s other service providers through the annual cycle of reporting and due diligence meetings or site visits by Frostrow. This engagement is completed with the aim of maintaining an effective working relationship and
oversight of the services provided.
Auditor. The Audit Committee met with Deloitte LLP to review the audit plan for the year, agree their remuneration, review the outcome of the annual audit and to assess the quality and effectiveness of the audit process. Please refer to the Audit Committee Report within the Annual Report for further information.
Board Composition. The Board has in place a refreshment programme which is reviewed annually by the Board. Odgers was appointed by the Board during the year to assist with succession planning.
The Company’s Lender Continued compliance with covenants set out within the loan agreement between the Company and the lender. The Board ensures compliance with loan covenants throughout the year. Subsequent to the Company’s year end Company’s loan facility agreement was renewed, details of which can be found within note 12.
RESPONSIBLE INVESTMENT
Our Policy
The Board recognises that the most material way for the Company to have an
impact on Environmental, Social and Governance (“ESG”) issues is through
the responsible ownership of its investments.
It has delegated authority to its Portfolio Manager to engage actively with
the management of investee companies and encourage that high standards of ESG
practice are adopted.
The Company seeks to generate long-term, sustainable returns on capital. The
investee companies which consistently deliver superior returns over the long
term are typically established, well-run companies whose managers recognise
their impact on the world around them.
In its Responsible Engagement & Investment Policy, the Portfolio Manager
states that its evaluation of ESG factors is an inherent part of the
investment process.
The Board has delegated authority to the Portfolio Manager to vote the shares
owned by the Company that are held on its behalf by its Custodian. The Board
has instructed that the Portfolio Manager submit votes for such shares
wherever possible and practicable. The Portfolio Manager may refer to the
Board on any matters of a contentious nature.
The Portfolio Manager is a signatory of the 2021 UK Stewardship Code and
became a signatory of Net Zero Asset Managers initiative in December 2021.
LINDSELL TRAIN’S POLICY
Madeline Wright Deputy Portfolio Manager and Head of Investment ESG
ESG integration
Sustainability Key To Long-Term Investing
Lindsell Train’s investment horizons are very strategic and long-term (note
that the turnover of the Company is under 5% per annum since its appointment
in December 2000), and the investment team therefore look for durable
companies that are likely to be profitably in business in 20 years’ time. On
which basis, the companies must address ESG factors in order to increase the
prospects of their long-term survival. For example, management must
demonstrate a higher degree of sensitivity to environmental considerations,
consider the reputational risks from adverse behaviour and also embrace the
branding power of appealing to a more ESG sensitive generation.
In addition to monitoring and encouraging company management to embrace ESG,
as a product of Lindsell Train’s investment philosophy, it has always
avoided industries that it judges to be sufficiently detrimental to society
that they may be exposed to burdensome regulation or litigation that could
impinge on financial returns. Tobacco is a prime example, where the ESG risk
– which in this case is the threat of litigation or government intervention
on tobacco companies because of the health issues associated with smoking –
plays a significant part in Lindsell Train’s thinking and has been factored
into its investment approach since the inception of Lindsell Train. The
investment team also avoids capital intensive manufacturing industries or any
companies involved in the extraction and production of coal, oil or natural
gas.
Lindsell Train’s initial analysis and ongoing company engagement strategy
seeks to incorporate all sustainability factors that it believes will affect
the company’s ability to deliver long-term value to shareholders. Such
factors may include but are not limited to: environmental, social and employee
matters (including turnover and culture) and governance factors (including
remuneration and capital allocation), cyber resilience, responsible data
utilisation, respect for human rights, anti-corruption and anti-bribery, and
any other risks or issues facing the business and its reputation. The
evaluation of these factors is an inherent part of the research process, as it
is the investment team’s view that it can best serve investors through the
application of an integrated approach, enabling them to leverage these
considerations to make better investment decisions. This work is catalogued in
a proprietary database of risk factors (Sentinel) in order to centralise and
codify the team’s views, as well as to prioritise its ongoing research and
engagement work, and is cross-referenced with the SASB Materiality Map©. If,
as a result of this assessment, Lindsell Train believes that an ESG factor is
likely to materially impact a company’s long-term business prospects (either
positively or negatively) then this will be reflected in the long-term growth
rate that is applied in the valuation of that company, which alongside the
investment team’s more qualitative research will influence any final
portfolio decisions (for example, whether Lindsell Train starts a new position
or sells out of an existing holding).
Ultimately ESG presents a real risk of the permanent loss of our client’s
capital and, accordingly, our job is to apply an ESG adjusted risk premium to
what we analyse to be eternal assets. That way we work to ensure we observe
Warren Buffett’s #1 rule – don’t lose money!”
Nick Train
Portfolio Manager
CASE STUDY
ESG EVALUATION FOR RECENT
PURCHASES AUTO TRADER & GAMES WORKSHOP
Lindsell Train’s long-term investment approach means that it seldom buys and
sells new holdings. However, in Q2 2025 there were two such purchases for the
Finsbury Growth & Income Trust: Auto Trader and Games Workshop.
Consideration of ESG risk and opportunity is integrated into the
pre-investment work that Lindsell Train does on all holdings, and indeed Auto
Trader and Games Workshop have been monitored within Sentinel for a number of
years, as they have long been considered as serious potential investments.
As with existing holdings, any ESG risk that Lindsell Train deems to be
materially significant requires careful assessment to ensure that the
investment team is comfortable that it does not pose a meaningful threat to
the business. In both cases, Lindsell Train identified no ESG risks that the
team deemed materially significant. The key risk for Auto Trader is the
potential for increased costs associated with mitigating the carbon footprint
of its data centres and office operations and reputation risks associated with
any missteps, particularly given its leading position in the industry.
However, with the UK government reinstating EV grants tied to sustainability
performance and introducing criteria around vehicle emissions and battery
production, there are opportunities for Auto Trader to enhance listing
features and filters for electric vehicles as a response to the growing demand
for sustainability transparency.
In the case of Games Workshop, which designs, manufactures and sells fantasy
miniatures and games related products, the key ESG risk in Lindsell Train’s
view is the generation of plastic waste, particularly from leftover plastic
frames (or sprues) and single - use packaging. However, the
investment team are encouraged that Games Workshop now provides in store
recycling for all plastic sprues and empty paint pots across its British
retail stores and aims to expand this to other countries.
Finally, Auto Trader has set a Net Zero target for 2040 and seems to be moving
in the right direction. Games Workshop has not yet publicly committed to a net
- zero target date but it does report its carbon emissions
and has set an interim target to reduce its Scope 1 and 2 emissions by 55% by
2032, using FY 2021/22 as a baseline.
Climate Change
The risks associated with climate change and the transition to a low-carbon
economy will affect all businesses, irrespective of their size, sector or
geographic location. Therefore, no company’s revenues are immune and the
assessment of such risks must be considered within any effective investment
approach, particularly one like Lindsell Train’s that seeks to protect its
clients’ capital for decades to come.
The transition to a low-carbon economy will affect some sectors more than
others and fortunately, as mentioned above, these are typically the sectors
that Lindsell Train portfolios avoid, most notably capital-intensive
industries and companies involved in the extraction and production of coal,
oil or natural gas. As a result, we are pleased to note that the Company
continues to have a significantly lower than average weighted average carbon
intensity than its comparable benchmarks.
For Lindsell Train Limited, as a relatively small business with a single
office location and less than 30 employees, its climate
exposure comes predominantly from the investment portfolios that it manages on
behalf of its clients. Lindsell Train recognises the systemic risk posed by
climate change and the potential financial impacts associated with a
transition to a low-carbon economy. To help address this, Lindsell Train
became a signatory of the Net Zero Asset Managers (NZAM) initiative in
December 2021, which affirms its commitment to support the goal of net zero
greenhouse gas emissions by 2050 or sooner. In line with this ambition,
Lindsell Train published a 2030 interim target in Q4 2022 which was approved
by the IIGCC.
Lindsell Train selected to use the Paris Aligned Investment Initiative Net
Zero Investment Framework (NZIF) target setting approach. Of the four specific
targets recommended by NZIF, Lindsell Train believed it most appropriate to
adopt a portfolio coverage target, given the strategic nature of its approach
and the below average carbon footprints of its portfolios. Lindsell Train has
targeted 55% of its asset-weighted committed assets to be considered Aligned
by 2030, as set out by the PAII Net Zero Investment Framework. This represents
a circa 50% improvement from its baseline of 36% of assets being Aligned as of
2022, consistent with a fair share of the 50% global reduction in CO2
identified as a requirement in the IPCC special report on global warming of
1.5°C. It is also a target that the investment team considers realistic and
achievable. Despite the suspension of some of NZAM’s activities in January
2025, LTL remains committed to its net zero target and will continue to take
meaningful steps toward fulfilling its net zero ambitions.
As outlined in the latest TCFD Entity Report, the chart in the Annual Report
shows the alignment of each of the representative accounts for Lindsell
Train’s four investment strategies, and combined, on an asset
weighted basis as at 31 December 2023 and 31 December 2024.
With respect to the status of Lindsell Train’s Net Zero target, as of 31
December 2024, approximately 39% of Lindsell Train’s combined AUM has been
assessed as aligned in accordance with NZIF2.0, the revised Net Zero
Investment Framework, reflecting modest progress compared to a year previous.
The proportion of LTL’s UK Equity Strategy assessed as
aligned increased from 40% in December 2023 to 53% in December 2024.
To achieve its 2030 target, Lindsell Train will continue to engage proactively
with the management of companies it holds across its portfolios, with the
overall ambition of reaching an absolute reduction in global carbon emissions.
These engagements have focused on persistent laggards. There are currently 17
such companies across all holdings held in Lindsell Train portfolios, most of
which are Japanese, and Lindsell Train engaged with all of them during Q4 2024
and Q1 2025. Outreach comprised a combination of letters and calls, during
which Lindsell Train reminded management of its expectations and encouraged
collaboration with Lindsell Train and other similar companies where we had
identified progress.
Further information on Lindsell Train’s TCFD related disclosures can be
found in its 2024 TCFD Report, which can be found on Lindsell Train’s
website:
https://www.lindselltrain.com/responsible-investing/ governance-strategy/
Modern Slavery
As we proceed deeper into the 21st Century, modern slavery is a blight on
humanity. It encompasses multiple forms of exploitation including forced
labour, human trafficking and servitude. Published figures suggest that there
are now 50 million people across the globe in modern slavery, with nearly 28
million in forced labour. The situation has been exacerbated by conflict,
climate change and the pandemic. There is huge potential for businesses to
take action to address and ultimately eradicate modern slavery globally, and
we recognise that financial services have an essential role to play in this
fight.
As investors in several Fast Moving Consumer Goods (FMCG) and luxury fashion
companies, Lindsell Train is particularly alert to modern slavery in the
supply chain, and the business and ethical risks it poses. Over the past two
years, Lindsell Train has updated its Responsible Investment & Engagement
Policy to specifically reflect on this commitment, whilst also developing an
Engagement Framework which aims to address the two ESG issues it judges to be
most relevant to its portfolios (Modern Slavery and Climate Change). Lindsell
Train has also continued its partnership with the CCLA-founded initiative Find
It, Fix it, Prevent it, which is exclusively focused on the abolition of
modern slavery and to which Lindsell Train became a signatory in 2021. Most
recently, Lindsell Train was pleased to be joined by a representative of the
organisation at its 2025 ESG Training.
Lindsell Train’s Modern Slavery Statement can be found on its website./
CASE STUDY
LSEG & SAGE
In collaboration with Find It, Fix It, Prevent It, Lindsell Train participated
during 2023 as a member of the Scorecard Working Group, alongside
SupplyESChange, Vodafone Group, Reckitt Benckiser, and Columbia Threadneedle.
The Working Group was responsible for agreeing the metrics against which
companies would be assessed, forming the basis for the inaugural 2023 Modern
Slavery UK Benchmark report. Following the publication of the initial
findings, Lindsell Train committed to further collaboration with CCLA to
engage directly with two portfolio companies, LSEG and Sage, both of which
were placed in Performance Tier 4 (barely achieving compliance).
In October 2024, CCLA published the 2024 Modern Slavery UK Benchmark report,
which found that LSEG had improved its score. However, Lindsell Train was
disappointed to learn that Sage remained in Tier 4. Later in the month,
Lindsell Train continued its engagement with the company and met with the CEO
and CFO to understand the reasons why Sage’s modern slavery score remained
stagnant. Management explained that this was due to the company’s
publications being out of sync with CCLA’s monitoring schedule. Sage’s
disclosures occur in December, whilst Find it, Fix it, Prevent it, publish
their report in October, meaning the changes were not captured this year.
Whilst disappointing, Lindsell Train does not believe it is indicative of a
lack of progress, and Sage’s management has emphasised that it expects these
improvements will be reflected in the company’s revised score when the
Benchmark is republished in Q4 2025.
Please see below a timeline summarising Lindsell Train’s engagement activity
on Modern Slavery:
2021
Notable increase in focus on supply chain matters from LTL clients.
Initial engagement with Mondelez on its approach to child labour in its supply
chain.
Mondelez ‘Cocoa Life’ presentation to LTL as part of annual ESG Training.
2022
Collaborated with Find It, Fix It, Prevent It, and global consulting firm Aon,
in engagements with Burberry and Youngs, to better understand their approach
to Modern Slavery.
LTL confirms support for Find It, Fix It, Prevent It.
Madeline Wright (Deputy Portfolio Manager and Head of Investment ESG)
delivered a presentation on Modern Slavery at a conference hosted by Aon.
2023
Mondelez Shareholder resolution on abolition of child labour lodged. LTL
engaged with Mondelez and voted against.
Modern Slavery UK Benchmark published. Two LTL companies assessed as
performance Tier 4.
LTL Engagement Framework published identifying Modern Slavery as one of two
focus areas.
Burberry presented on how it approaches Modern Slavery in its supply chain
during LTL’s annual ESG training.
2024
Engaged Sage management on Modern Slavery Benchmark score.
Mondelez shareholder proposal. LTL again voted against.
Follow up engagement with Sage on Modern Slavery Benchmark score.
LTL Modern Slavery questionnaire developed (based on Find It, Fix It, Prevent
It).
Heineken presents ‘Brew a Better World’ as part of annual ESG training.
2025
Rathbones and Sage presented on how they address Modern Slavery as part of
LTL’s annual ESG training.
Engagement
Where Lindsell Train has specific concerns with management’s strategy,
company performance (financial and non-financial), or risk profile, or where
it deems it necessary to protect its clients’ interests, the investment team
will proactively engage with management. Lindsell Train will consider the
individual circumstances of the company and the issue at hand, in order to
determine realistic objectives and define the scope of Lindsell Train’s
engagement, ensuring that:
* The objective is suitably focused on long-term value
preservation and creation
* The objective is specific and there is clarity around
delivery
* The objective is realistic and achievable
In most circumstances, Lindsell Train arranges a meeting with senior
management, board members, or if appropriate with the company chairperson or
the senior non-executive director. The feedback from these meetings is then
discussed amongst the investment team. In some instances, the matter on which
it is engaging is swiftly resolved, and in other cases, the response may be a
multi stage, multi - year process. As long as the dialogue
is constructive and ongoing, and management clearly outline a proposed course
of action, Lindsell Train can be comfortable with a longer timeline to
resolution. Where this is not the case, it will consider escalation.
The long-term approach generally leads Lindsell Train to be supportive of
company management; however, where required and if in the best interests of
our clients, Lindsell Train will try to influence management on specific
matters or policies. Lindsell Train’s intention is to have open and
constructive dialogue with management and board members, in order to broaden
its knowledge of the company’s strategy and operations and to ensure any
concerns it might have are assuaged. Given Lindsell Train often builds up
large, long-term, stakes in the businesses in which it invests, it finds that
management is open to (and very often encourages) engagement.
During the financial year, Lindsell Train engaged with 16 companies held
within the Company’s portfolio on a wide range of environmental, social and
governance issues, as detailed in the chart in the Annual Report. There were
22 engagements in total.
ENGAGEMENT BY TOPIC
Source: Lindsell Train. 1 October 2024 – 30 September 2025. 9 topics raised
with 16 companies.
CASE STUDY
ENGAGEMENT CASE STUDY
Company name: Clarkson
Year founded: 1852
Year FGT first invested: 2024
Sector: Industrials
Engagement topics: Capital Allocation, Strategy &
Environmental
Date of engagements: September 2025
Engagement format: Call
Reason for engagement: Engagement regarding
Clarkson’s capital allocation, strategy and
sustainability initiatives
The introduction of the Trump-era tariffs, implemented with limited
transparency, and being particularly punitive for certain sectors, has
contributed to a temporary slowdown in ship-broking activity. Lindsell Train
engaged with the company to understand the impact this may have, and
management reaffirmed the strength of Clarkson’s balance sheet, which offers
a degree of resilience amid the prevailing macroeconomic and geopolitical
headwinds.
Furthermore, the investment team inquired whether recent political
developments had affected the company’s commitment to its sustainability
objectives. Clarkson confirmed that, despite changes in the political
landscape, its dedication to advancing green initiatives remains unchanged.
Lindsell Train notes the company’s increasing strategic focus on supporting
the shipping industry’s path to decarbonisation. For example, Clarkson has
established a dedicated segment of its business to provide services that
facilitate the transition to more sustainable practices, positioning the firm
as a key enabler of environmental progress within the sector.
Next steps : We are encouraged by Clarkson’s continued
commitment to its environmental and
sustainability priorities. Looking ahead, Lindsell Train will monitor
developments in the macroeconomic environment and assess how the company
adapts its strategy in response, ensuring that its environmental commitments
are sustained through varying market conditions.
CASE STUDY
ENGAGEMENT CASE STUDY
Company name: Diageo Plc
Year founded: 1997
Year FGT first invested: 2001
Sector: Consumer Staples
Engagement topics: Capital Allocation & Strategy
Date of engagements: May & July 2025
Engagement format: Call
Reason for engagement: Engagement regarding
Diageo’s capital allocation and strategy
In May 2025, management at Diageo announced the potential for disposals of
non-core assets during its Q3 trading update. The investment team took the
opportunity to follow up with management via email to remind them of the
importance of retaining world class brands and maximising brand equity value.
The investment team reiterated its views on capital allocation, after the
2018-2024 share buyback programme that spent c.£10bn buying back shares at
c.£33 per share, c.40% above the current share price.
During July, the investment team re-engaged with the company to follow up on
those discussions. It questioned previous suggestions of significant asset
disposals, particularly given the current challenges facing the broader
industry, and in the context of the substantial share buybacks undertaken
between 2018 and 2024. We emphasised the critical role of the Board, and
particularly the Non-Executive Directors, in guiding management toward sound
capital allocation decisions.
In response, the Chair assured the investment team that the company has no
intention of selling its prized assets and brands. He expressed confidence
that the Board will engage meaningfully with senior management on capital
allocation, particularly in light of recent changes including a new CFO.
Next steps : Lindsell Train will continue to monitor
Diageo’s capital allocation closely,
particularly in relation to potential acquisitions and disposals. We remain in
regular dialogue with company management and are also engaging with sell-side
analysts to gather additional context and analysis. These ongoing discussions
will help Lindsell Train assess how effectively Diageo balances long-term
brand investment with disciplined financial management.
Proxy Voting
The primary voting policy of Lindsell Train is to protect or enhance the
economic value of its investments on behalf of its clients. Lindsell Train has
appointed Glass Lewis to aid the administration of proxy voting and provide
additional support in this area. However, the Investment Team maintains
decision making responsibility based on its detailed knowledge of the investee
companies. It is Lindsell Train’s policy to exercise all voting rights which
have been delegated to Lindsell Train by its clients.
Voting record for companies held in Finsbury Growth & Income Trust PLC:
Management Shareholder Total
Proposals Proposals Proposals
With Management 372 0 372
Against Management 0 0 0
Abstain 0 0 0
Totals 372 0 372
Source: Glass Lewis. 1 October 2024 – 30 September 2025.
Votes against management and abstentions have typically been in the low
single-digit range in previous years. In the current reporting period,
however, there were no votes against management. It is our aim to be invested
in ‘exceptional’ companies with strong corporate governance and hence it
ought to be rare that we find ourselves in a position where we are voting
against management.
INTEGRITY AND BUSINESS ETHICS
The Company is committed to carrying out business in an honest and fair
manner. The Board has adopted a zero-tolerance approach to instances of
bribery and corruption. Accordingly, it expressly prohibits any Director or
associated persons when acting on behalf of the Company from accepting,
soliciting, paying, offering or promising to pay or authorise any payment,
public or private, in the United Kingdom or abroad to secure any improper
benefit from themselves or for the Company.
The Board applies the same standards to its service providers in their
activities for the Company.
A copy of the Company’s Anti Bribery and Corruption Policy can be found in
the Board and Policies section of the Company’s website. The policy is
reviewed annually by the Audit Committee.
In response to the implementation of the Criminal Finances Act 2017, the Board
adopted a zero-tolerance approach to the criminal facilitation of tax evasion.
A copy of the Company’s policy on preventing the facilitation of tax evasion
can be found in the Board and Policies section of the Company’s website. The
policy is reviewed annually by the Audit Committee.
In carrying out its activities, the Company aims to conduct itself
responsibly, ethically and fairly, including in relation to social and human
rights issues. As an investment company with limited internal resource, the
Company has little impact on the environment. The Company believes that high
standards of ESG make good business sense and have the potential to protect
and enhance investment returns. Consequently, the Portfolio Manager’s
investment criteria ensure that ESG and ethical issues are taken into account
and best practice is encouraged. The Board’s expectations are that its
principal service providers have appropriate governance policies in place.
Further information on the Company’s approach to diversity, including the
gender composition of the Board, can be found in the Corporate Governance
Report within the Annual Report.
COMPANY PROMOTION
The Company has appointed Frostrow to promote the Company’s shares to
professional investors in the UK and Ireland. As investment company
specialists, the Frostrow team provides a continuous, proactive marketing and
investor relations service that aims to promote the Company by encouraging
demand for the shares.
MANAGEMENT ARRANGEMENTS
Alternative Investment Fund Manager (“AIFM”)
Under the terms of its AIFM agreement with the Company, Frostrow provides,
inter alia , the following services:
* oversight of the portfolio management function
delegated to Lindsell Train;
* promotion of the Company;
* investment portfolio administration and valuation;
* risk management services;
* share price discount and premium management;
* administrative and company secretarial services;
* advice and guidance in respect of corporate
governance requirements;
* maintenance of the Company’s accounting records;
* maintenance of the Company’s website;
* preparation and publication of annual reports, half
year reports and monthly fact sheets; and
* ensuring compliance with applicable legal and
regulatory requirements.
The AIFM Agreement may be terminated by either party on giving notice of not
less than 12 months.
Portfolio Manager
Lindsell Train, as delegate of the AIFM, is responsible for the management of
the Company’s portfolio of investments under an agreement between it, the
Company and Frostrow (the “Portfolio Management Agreement”).
Under the terms of its Portfolio Management Agreement, Lindsell Train
provides, inter alia , the following
services:
* seeking out and evaluating investment opportunities;
* recommending the manner by which monies should be
invested, realised or retained;
* advising on how rights conferred by the investments
should be exercised;
* analysing the performance of investments made; and
* advising the Company in relation to trends, market
movements and other matters which may affect the investment objective and
policy of the Company.
The Portfolio Management Agreement may be terminated by either party on giving
notice of not less than 12 months.
Annual Fees
FEES ON THAT PART OF MARKET CAP PORTFOLIO
AS AT 30 SEPTEMBER 2025 AIFM MANAGER TOTAL
≤ £1 bn 0.15% 0.45% 0.60%
Between £1 bn - £2 bn 0.135% 0.405% 0.54%
£2 bn + 0.12% 0.36% 0.48%
FEES ON THAT PART OF MARKET CAP PORTFOLIO
FROM 1 JANUARY 2026 AIFM MANAGER TOTAL
up to £1.5bn 0.135 0.405 0.54%
Over £1.5bn 0.120 0.360 0.48%
Performance Fees
The Company does not pay performance fees.
AIFM AND PORTFOLIO MANAGER EVALUATION AND RE-APPOINTMENT
The performance of Frostrow as AIFM and Lindsell Train as Portfolio Manager is
continuously monitored by the Board with a formal evaluation being undertaken
each year. As part of this process the Board monitors the services provided by
the AIFM and the Portfolio Manager as well as receiving regular reports and
views from them. The Board has also considered the assessment carried out by
the AIFM as required by the FCA’s Consumer Duty obligations, that the
Company’s Shares provide fair value. It also receives comprehensive
long-term performance measurement reports to enable it to determine whether or
not the performance objective set by the Board has been met.
Following a review at the Board meeting in September 2025, the Board considers
that the continuing appointment of Frostrow and Lindsell Train, under the
terms described above, is in the best interests of the Company’s
Shareholders. In coming to this decision, it took into consideration the
following additional reasons:
* the quality and depth of experience of the company
secretarial, administrative and marketing team that the AIFM brought to the
management of the Company; and
* the quality and depth of experience that the
Portfolio Manager brought to the management of the portfolio, the clarity and
rigour of the investment process, consideration of ESG targets, the high
degree of engagement with portfolio companies on ESG matters, the level of
past long-term performance of the portfolio in absolute terms and also by
reference to the benchmark index.
Depositary
The Bank of New York Mellon (International) Limited (the “Depositary”)
acts as the Company’s depositary in accordance with the AIFMD on the terms
and subject to the conditions of the depositary agreement between the Company,
Frostrow and the Depositary (the “Depositary Agreement”). Under the terms
of the Depositary Agreement the Company pays the Depositary a fee between
0.007% and 0.008% of net assets.
The Depositary provides the following services:
* responsibility for the safe-keeping of custodial
assets of the Company;
* verification and maintenance of a record of all other
assets of the Company;
* the collection of income that arises from those
assets;
* taking reasonable care to ensure that the Company is
managed in accordance with the AIFMD, the Investment Funds Sourcebook and the
Company’s instrument of incorporation, in relation to the calculation of the
net asset value per share and the application of income of the Company; and
* monitoring the Company’s compliance with investment
restrictions and leverage limits set by the Board and the AIFM.
In accordance with the AIFM Rules the Depositary acts as global custodian and
may delegate safekeeping to one or more global sub-custodians. The Depositary
has delegated safekeeping of the assets of the Company to The Bank of New York
Mellon SA/NV and/or The Bank of New York Mellon (The Global Sub-custodians).
As at the date of this report, the applicable active sub-custodians appointed
by the Depositary who might be relevant for the purposes of holding the
Company’s investments are:
COUNTRY NAME OF SUB-CUSTODIAN REGULATOR
The Netherlands The Bank of New York Mellon SA/NV Financial Services and Markets Authority, Belgium
United States of America The Bank of New York Mellon, New York US Securities and Exchange Commission
France The Bank of New York Mellon SA/NV The Autorité des Marchés Financiers
Custodian
The Global Sub-Custodians’ safekeeping fees are charged according to the
jurisdiction in which the holdings are based. The majority of the Company’s
assets attract a custody fee of 0.0033% of their market value. Variable
transaction fees are also chargeable.
The Depositary Agreement may be terminated by either party on giving notice of
not less than 90 days.
On behalf of the Board
Pars Purewal
Chairman
2 December 2025
GOVERNANCE / Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the
Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Financial Statements for each
financial year. Under that law the Directors have elected to prepare the
Financial Statements in accordance with (United Kingdom Accounting Standards
and applicable law), including FRS 102 “The Financial Reporting Standard
applicable in the UK and Republic of Ireland.
Under law the Directors must not approve the Financial Statements unless they
are satisfied that they give a true and fair view of the state of affairs of
the Company and of the profit or loss of the Company for that period. In
preparing these Financial Statements, the Directors are required to:
* select suitable accounting policies and then apply
them consistently;
* state whether applicable United Kingdom Accounting
Standards, have been followed, subject to any material departures disclosed
and explained in the Financial Statements;
* make judgements and accounting estimates that are
reasonable and prudent; and
* prepare the Financial Statements on the going concern
basis unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the Financial Statements and the Directors’
Remuneration Report comply with the Companies Act 2006.
The Directors are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
WEBSITE PUBLICATION
The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination
of Financial Statements may differ from legislation in other jurisdictions.
Financial Statements are published on the Company’s website in accordance
with legislation in the United Kingdom governing the preparation and
dissemination of financial statements, which may vary from legislation in
other jurisdictions. The maintenance and integrity of the Company’s website
is the responsibility of the Directors.
The Directors’ responsibility also extends to the ongoing integrity of the
financial statements contained therein.
RESPONSIBILITY STATEMENT
Each of the Directors, whose names and functions are listed in the ‘Board of
Directors’ section within the Annual Report confirms that, to the best of
their knowledge:
* the Financial Statements, prepared in accordance with
the relevant financial reporting framework, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company;
* the strategic report includes a fair review of the
development and performance of the business and the position of the company,
together with a description of the principal risks and uncertainties that they
face; and.
* the annual report and financial statements, taken as
a whole, are fair, balanced and understandable and provide the information
necessary for shareholders to assess the company’s position and performance,
business model and strategy.
This responsibility statement was approved by the board of directors on 2
December 2025 and is signed on its behalf by:
Pars Purewal
Chairman
Note to those who access this document by electronic means:
The Annual Report for the year ended 30 September 2025 has been approved by
the Board of Finsbury Growth & Income Trust PLC. Copies of the Annual Report
are circulated to Shareholders and, where possible to potential investors. It
is also made available in electronic format for the convenience of readers.
Printed copies are available from the Company Secretary's office in London.
FINANCIAL STATEMENTS / Income Statement
for the year ended 30 September 2025
YEAR ENDED YEAR ENDED
30 SEPTEMBER 2025 30 SEPTEMBER 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
NOTE £’000 £’000 £’000 £’000 £’000 £’000
(Losses)/gains on investments at fair value through profit or loss 9 – (34,706) (34,706) – 78,006 78,006
Currency translations – (12) (12) – (185) (185)
Income 2 31,476 – 31,476 43,160 – 43,160
AIFM and portfolio management fees 3 (1,921) (5,765) (7,686) (2,260) (6,781) (9,041)
Other expenses 4 (1,148) – (1,148) (1,184) (126) (1,310)
Return/(loss) before finance charges and taxation 28,407 (40,483) (12,076) 39,716 70,914 110,630
Finance charges 5 (455) (1,364) (1,819) (556) (1,667) (2,223)
Return/(loss) before taxation 27,952 (41,847) (13,895) 39,160 69,247 108,407
Taxation on ordinary activities 6 10 – 10 (229) – (229)
Return/(loss) after taxation 27,962 (41,847) (13,885) 38,931 69,247 108,178
Return/(loss) per share – basic and diluted 7 18.9p (28.3)p (9.4)p 20.8p 36.9p 57.7p
The “Total” column of this statement represents the Company’s income
statement.
The “Revenue” and “Capital“ columns are supplementary to this and are
prepared under guidance published by the Association of Investment Companies
(“AIC“).
All items in the above statement derive from continuing operations.
The Company had no recognised gains or losses other than those declared in the
Income Statement; therefore no separate Statement of Comprehensive Income has
been presented.
The notes form part of these Financial Statements.
FINANCIAL STATEMENTS / Statement of Changes in Equity
for the year ended 30 September 2025
CALLED UP SHARE SPECIAL CAPITAL TOTAL
SHARE PREMIUM DISTRIBUTABLE REDEMPTION CAPITAL REVENUE SHAREHOLDERS’
NOTE CAPITAL ACCOUNT RESERVE RESERVE RESERVE RESERVE FUNDS
£’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 October 2024 56,248 – 1,050,008 3,453 412,490 59,969 1,582,168
Net (loss)/return for the year – – – – (41,847) 27,962 (13,885)
Second interim dividend
(10.8p per share)
for the year ended
30 September 2024 8 – – – – – (18,097) (18,097)
First interim dividend
(8.8p per share)
for the year ended
30 September 2025 8 – – – – – (12,780) (12,780)
Repurchase of shares into Treasury 13 – – (309,666) – – – (309,666)
At 30 September 2025 56,248 – 740,342 3,453 370,643 57,054 1,227,740
NOTE CALLED UP SHARE CAPITAL £’000 SHARE PREMIUM ACCOUNT £’000 SPECIAL DISTRIBUTABLE RESERVE £’000 CAPITAL REDEMPTION RESERVE £’000 CAPITAL RESERVE £’000 REVENUE RESERVE £’000 TOTAL SHAREHOLDERS’ FUNDS £’000
At 1 October 2023 56,248 1,099,847 – 3,453 604,212 58,969 1,822,729
Net return for the year – – – – 69,247 38,931 108,178
Second interim dividend
(10.5p per share)
for the year ended
30 September 2023 8 – – – – – (21,454) (21,454)
First interim dividend
(8.8p per share)
for the year ended
30 September 2024 8 – – – – – (16,477) (16,477)
Transfer to special reserve account – (1,099,847) – – – – (1,099,847)
Transfer from share
premium account – – 1,099,847 – – – 1,099,847
Repurchase of shares into Treasury 13 – – (49,839) – (260,969) – (310,808)
At 30 September 2024 56,248 – 1,050,008 3,453 412,490 59,969 1,582,168
On 7 August 2024 the Company’s Share Premium Account was cancelled and a new
Special Distributable Reserve was created. See Note 1(J) for further details.
The notes form part of these Financial Statements.
FINANCIAL STATEMENTS / Statement of Financial Position
as at 30 September 2025
2025 2024
NOTE £’000 £’000
Fixed assets
Investments held at fair value through profit or loss 9 1,251,015 1,593,218
Current assets
Debtors 10 5,387 7,509
Cash at bank 5,110 14,639
10,497 22,148
Current liabilities
Creditors: amounts falling due within one year 11 (4,572) (3,998)
Bank loan 12 (29,200) –
(33,772) (3,998)
Net current (liabilities)/assets (23,275) 18,150
Total assets less current liabilities 1,227,740 1,611,368
Creditors: amount falling due after more than one year
Bank loan – (29,200)
Net assets 1,227,740 1,582,168
Capital and reserves
Called up share capital 13 56,248 56,248
Special distributable reserve 740,342 1,050,008
Capital redemption reserve 3,453 3,453
Capital reserve 370,643 412,490
Revenue reserve 57,054 59,969
Total Shareholders’ funds 1,227,740 1,582,168
Net asset value per share 15 923.0p 943.4p
The Financial Statements were approved by the Board of Directors on 2 December
2025 and were signed on its behalf by:
Pars Purewal
Chairman
The notes form part of these Financial Statements.
Company Registration Number SC013958 (Registered in Scotland)
FINANCIAL STATEMENTS / Statement of Cash Flows
for the year ended 30 September 2025
2025 2024
NOTE £’000 £’000
Net cash inflow from operating activities 18 25,894 33,805
Investing activities
Purchase of investments (129,988) (123,825)
Sale of investments 436,180 445,464
Other capital receipts 10 –
Net cash inflow from investing activities 306,202 321,639
Financing activities
Dividends paid (30,877) (37,931)
Repurchase of shares into Treasury (308,917) (310,392)
Interest paid (1,819) (2,223)
Repayment of loans – (7,500)
Net cash outflow from financing activities (341,613) (358,046)
Decrease in cash and cash equivalents (9,517) (2,602)
Currency transactions (12) (185)
Cash at bank at the beginning of the financial year 14,639 17,426
Cash at bank at the end of the financial year 5,110 14,639
Reconciliation of net debt
2025 2024
£’000 £’000
Cash at bank 5,110 14,639
Borrowings (29,200) (29,200)
Net debt (24,090) (14,561)
The notes form part of these Financial Statements.
FINANCIAL STATEMENTS / Notes to the Financial Statements
for the year ended 30 September 2025
1. Accounting Policies
The Company is a public limited company (PLC) incorporated in the United
Kingdom, with registered office at 50 Lothian Road, Festival Square, Edinburgh
EH3 9WJ.
The principal accounting policies, all of which have been applied consistently
throughout the year in the preparation of these Financial Statements, are set
out below:
(A) BASIS OF PREPARATION
The Financial Statements have been prepared in accordance with UK Generally
Accepted Accounting Practice (GAAP) under UK and Republic of Ireland Company
Law, FRS 102 ‘The Financial Reporting Standard applicable in the UK, the
Statement of Recommended Practice (SORP) for “Financial Statements of
Investment Trust Companies and Venture Capital Trusts” issued by the
Association of Investment Companies in July 2022 and the Companies Act 2006
under the historical cost convention as modified by the valuation of
investments at fair value through profit or loss.
The Financial Statements have been prepared on a going concern basis. The
disclosure on going concern in the Statement of Directors' Responsibilities
forms part of these Financial Statements.
Presentation of the Income Statement
In order to reflect better the activities of an investment trust company and
in accordance with the SORP, supplementary information which analyses the
Income Statement between items of a revenue and capital nature has been
presented alongside the Income Statement. The net revenue return is the
measure the Directors believe appropriate in assessing the Company’s
compliance with certain requirements set out in Sections 1158 and 1159 of the
Corporation Tax Act 2010.
Significant Judgements and Critical Sources of Estimation Uncertainties
There were no significant judgements or critical estimates reported during the
financial year ended 30 September 2025 (2024: none).
(B) INVESTMENTS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS
Investments are measured under FRS 102, sections 11 and 12 and are measured
initially, and at subsequent reporting dates, at fair value.
Changes in the fair value of investments and gains and losses on disposal are
recognised in the Income Statement as a capital item. The Company manages and
evaluates the performance of these investments on a fair value basis in
accordance with its investment strategy, and information about the investments
is provided internally on this basis to the Board. Fair value for quoted
investments is deemed to be bid market prices, or last traded price, depending
on the convention of the stock exchange on which they are quoted.
In estimating the fair value of unquoted investments, the AIFM and Board apply
valuation techniques which are appropriate in light of the nature, facts and
circumstances of the investment and use judgement and assumptions and apply
these consistently.
All purchases and sales of investments are accounted for on a trade date
basis.
The Company’s policy is to expense transaction costs on acquisition/disposal
through the gains on investment at fair value through profit or loss. The
total of such expenses, showing the total amounts included in disposals and
acquisitions, is disclosed in note 9.
(C) INCOME
Dividends receivable from equity shares are recognised in Revenue on an
ex-dividend basis except where, in the opinion of the Board, the dividend is
capital in nature, in which case it is included in Capital. Overseas dividends
are stated gross of any withholding tax.
When the Company has elected to receive scrip dividends in the form of
additional shares rather than cash, the amount of cash dividend foregone is
recognised in Revenue.
Fixed returns on non-equity shares are recognised on a time apportionment
basis.
Special dividends: In deciding whether a dividend should be regarded as a
Capital or Revenue receipt, the Company reviews all relevant information as to
the reasons for and sources of the dividend on a case by case basis depending
upon the nature of the receipt. Special dividends of a revenue nature are
recognised through the Revenue column of the Income Statement. Special
Dividends of a capital nature are recognised through the Capital column of the
Income Statement.
The limited liability partnership (LLP) profit share is recognised in the
financial statements when the entitlement to the income is established,
following the conclusion of the partnership's annual audit. Deposit interest
receivable is taken to Revenue on an accruals basis.
(D) DIVIDENDS PAYABLE
Dividends paid by the Company are recognised in the Financial Statements and
are shown in the Statement of Changes in Equity in the period in which they
became legally binding, which in the case of an interim dividend is the point
at which it is paid and for a final dividend when it is approved by
Shareholders in line with the ICAEW Tech Release 02/17BL.
(E) EXPENDITURE AND FINANCE CHARGES
All the expense and finance costs are accounted for on an accruals basis.
Expenses are charged through the Revenue column of the Income Statement except
as follows:
(1) expenses which are incidental to the
acquisition or disposal of an investment are treated as part of the cost or
deducted from proceeds of that investment (as explained in 1(B) above);
(2) expenses are taken to the Capital reserve via
the Capital column of the Income Statement, where a connection with the
maintenance or enhancement of the value of the investments can be
demonstrated. In line with the Board's expected long - term
split of returns, 75% of the portfolio management fee, AIFM fee and finance
costs are taken to the Capital reserve and the balance to the Revenue reserve.
(F) TAXATION
Dividend income received by the Company may be subject to withholding tax
imposed in the country of origin. The tax charges shown in the Income
Statement relates to overseas withholding tax on dividend income.
Current tax is provided at the amounts expected to be paid or recovered.
Deferred taxation is provided on all timing differences that have originated
but not been reversed by the Statement of Financial Position date other than
those differences regarded as permanent. This is subject to deferred tax
assets only being recognised if it is considered more likely than not that
there will be suitable profits from which the reversal of timing differences
can be deducted. Any liability to deferred tax is provided for at the rate of
tax enacted or substantially enacted.
(G) FOREIGN CURRENCY
Transactions recorded in overseas currencies during the year are translated
into sterling at the exchange rates ruling at the date of the transaction.
Assets and liabilities denominated in overseas currencies at the Statement of
Financial Position date are translated into sterling at the exchange rate
ruling at that date. Profits or losses on the translation of foreign currency
balances, whether realised or unrealised are credited or debited to the
Revenue or Capital column of the Income Statement depending on whether the
gain or loss is of a revenue or capital nature.
(H) CASH AT BANK
Cash at bank and demand deposits readily convertible to known amounts of cash
and subject to insignificant risk of changes in value are defined as cash.
(I) BANK LOAN
Bank loans are initially recognised at fair value, net of transaction costs
incurred. Bank loans are subsequently measured at amortised cost. The loan
amounts falling due for repayment within one year are included under current
liabilities in the Statement of Financial Position and the loan amounts
falling due after one year are included under “Creditors: amounts falling
due after more than one year” in the Statement of Financial Position.
(J) REPURCHASE OF SHARES FOR CANCELLATION OR TO HOLD IN TREASURY
The cost of repurchasing ordinary shares (for cancellation or to hold in
Treasury) including the related stamp duty and transaction cost is charged to
the Special Distributable Reserve account, and dealt with in the Statement of
Changes in Equity. Share repurchase transactions are accounted for on a trade
date basis.
With effect from 7 August 2024, the date in which the Company’s Share
Premium account was cancelled, all shares bought back to be held in Treasury
have been charged to the Special Distributable Reserve. Prior to this date all
Shares cancelled were charged to the Capital Reserve account.
Where shares are cancelled (or are subsequently cancelled having previously
been held in Treasury), the nominal value of those shares is transferred out
of ‘Called up share capital’ and into the ‘Capital redemption
reserve’.
Should shares held in Treasury be reissued, the sales proceeds will be treated
as a realised capital profit up to the amount of the purchase price of those
shares and will be transferred to capital reserves. The excess of the sales
proceeds over the purchase price will be transferred to ‘Share premium’.
(K) OPERATING SEGMENTS
The Company defines operating segments and segment performance in the
financial statements based on information used by the Board of Directors which
is considered the Chief Operating Decision Maker^. The Directors are of the
opinion that the Company is engaged in a single segment of business, being the
investments business. The results published in this Annual Report therefore
correspond to this sole operating segment.
(L) NATURE AND PURPOSE OF RESERVES
Capital Redemption Reserve
This reserve arose when ordinary shares were bought by the Company and
subsequently cancelled, at which point the amount equal to the par value of
the ordinary share capital was transferred from the ordinary share capital to
the Capital Redemption reserve.
Capital Reserve
This reserve reflects any:
• gains or losses on the disposal of
investments;
• exchange differences of a capital nature;
• increases and decreases in the fair value of
investments which have been recognised in the capital column of the Income
Statement;
• expenses which are capital in nature as
disclosed in note 1(E); and
• excess of the purchase price over the
nominal value of shares which have been bought back by the Company for
cancellation or to be held in Treasury. See note 1(J) above for further
details.
Following amendments to the Company’s Articles of Association in 2015, this
reserve can be used to distribute certain capital profits by way of dividend.
Special Distributable Reserve
This reserve was created upon the cancellation of the Share Premium Account on
7 August 2024; it is distributable and is used to fund any repurchases of the
Company’s own shares.
Revenue Reserve
This reserve reflects all income and expenditure which are recognised in the
revenue column of the Income Statement and may be distributable by way of
dividend.
^ See glossary of terms.
When making a distribution to Shareholders, the Directors determine profits
available for distribution by reference to ‘Guidance on realised and
distributable profits under the Companies Act 2006’ issued by the Institute
of Chartered Accountants in England and Wales and the Institute of Chartered
Accountants of Scotland in April 2017. The availability of distributable
reserves in the Company is dependent on those distributions meeting the
definition of qualifying consideration within that guidance and on available
cash resources of the Company and other accessible sources of funds. The
distributable reserves are therefore subject to these restrictions or
limitations at the time such distribution is made.
2. Income
2025 2024
£’000 £’000
Income from investments
UK listed dividends 30,793 39,474
Overseas dividends – 2,793
Limited liability partnership – profit-share 365 486
Other operating income – bank interest 318 407
Total income 31,476 43,160
3. AIFM and portfolio management fees
2025 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
AIFM fee 480 1,441 1,921 565 1,695 2,260
Portfolio Management fee 1,441 4,324 5,765 1,695 5,086 6,781
Total fees 1,921 5,765 7,686 2,260 6,781 9,041
75% of the Portfolio management and AIFM fees are taken to the Capital reserve
and 25% is taken to the Revenue reserve. See note 1(E) for further details.
4. Other Expenses
2025 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
Directors’ fees 181 – 181 192 – 192
Auditors’ fees – statutory annual audit 72 – 72 72 – 72
Depositary’s fees 136 – 136 160 – 160
Stock listing and FCA fees 168 – 168 173 – 173
Custody fees 99 – 99 130 – 130
Index costs 89 – 89 85 – 85
Registrar’s fees 65 – 65 79 – 79
Promotional costs 56 – 56 55 – 55
Legal fees 36 – 36 12 126 138
Other expenses 246 – 246 226 – 226
Total expenses 1,148 – 1,148 1,184 126 1,310
Further details of the amounts paid to Directors are included in the
Directors’ Remuneration Report within the Annual Report.
During the year ended 30 September 2025 there were no non-audit services
provided by the Company's Auditor (2024: nil).
All of the above expenses include VAT where applicable. The Auditor’s fees
for the statutory annual audit of financial statements were £60,000 excluding
VAT (2024: £60,000).
5. Finance Charges
2025 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
Interest payable on bank loan* 424 1,272 1,696 528 1,584 2,112
Loan facility commitment fees 31 92 123 28 83 111
455 1,364 1,819 556 1,667 2,223
* Finance charges on financial liabilities at cost.
6. Taxation on Ordinary Activities
(A) ANALYSIS OF (CREDIT)/CHARGE IN THE YEAR
2025 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
UK Corporation tax at 25% (2024: 25%) – – – – – –
Overseas withholding tax 58 – 58 476 – 476
Recoverable overseas withholding tax (68) – (68) (247) – (247)
(10) – (10) 229 – 229
(B) FACTORS AFFECTING TOTAL TAX (CREDIT)/CHARGE FOR YEAR
The tax assessed for the year is lower (2024: lower) than the standard rate of
UK corporation tax of 25% (2024: 25%). The differences are explained below:
2025 2024
REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
Total return/(loss) before taxation 27,952 (41,847) (13,895) 39,160 69,247 108,407
Return/(loss) on ordinary activities multiplied by UK corporation tax of 25% (2024: 25%) 6,988 (10,462) (3,474) 9,790 17,312 27,102
Effects of:
Overseas taxation (10) – (10) 229 – 229
Non-taxable UK dividend income (7,698) – (7,698) (9,869) – (9,869)
Non-taxable overseas dividend income – – – (698) – (698)
Non allowable capital expenses
in relation to the cancellation of the Share premium account – – – – 32 32
Excess management expenses 710 1,782 2,492 777 2,112 2,889
Non-taxable loss/(return) on investments* – 8,677 8,677 – (19,502) (19,502)
Currency translations – 3 3 – 46 46
Total tax (credit)/charge for the year (note 6(A)) (10) – (10) 229 – 229
* Returns on investments are not subject to corporation tax within an
investment company.
(C) DEFERRED TAXATION
As at 30 September 2025, the Company had unused management expenses and other
reliefs for taxation purposes of £156,590,000 (2024: £146,620,000). It is
unlikely that the Company will generate sufficient taxable income in excess of
the available deductible expenses and therefore the Company has not recognised
a deferred tax asset of £39,147,000 (2024: 36,655,000) based on the
prospective corporation tax rate of 25% (2024: 25%).
Given the Company’s status as an investment company and the intention to
continue to meet the conditions required to maintain such status in the
foreseeable future, the Company has not provided for a deferred tax asset.
7. Return/(loss) per share – Basic and Diluted
2025 2024
£’000 £’000
The return/(loss) per share is based on the following figures:
Revenue return 27,962 38,931
Capital (loss)/return (41,847) 69,247
(Loss)/return (13,885) 108,178
Weighted average number of shares in issue during the year 148,064,259 187,520,280
Revenue return per share 18.9p 20.8p
Capital (loss)/return per share (28.3)p 36.9p
(Loss)/return per share (9.4)p 57.7p
The calculation of the total, revenue and capital returns per ordinary share
is carried out in accordance with IAS 33, "Earnings per Share (as adopted in
the UK)".
As at 30 September 2025 and 2024 there were no dilutive instruments in issue,
therefore the basic and diluted return per share are the same.
* Excludes shares held in Treasury.
8. Dividends
In accordance with FRS 102 dividends are included in the Financial Statements
in the period in which they are paid or approved by Shareholders.
Amounts recognised as distributable to Shareholders for the year ended 30
September 2025 were as follows:
EX-DIVIDEND PAYMENT 2025 2024
DATE DATE £’000 £’000
Second interim dividend paid for the year end 30 September 2024 of 10.8p per share 3 October 2024 8 November 2024 18,097 –
First interim dividend paid for the year end 30 September 2025 of 8.8p per share 3 April 2025 16 May 2025 12,780 –
Second interim dividend paid for the year end 30 September 2023 of 10.5p per share 5 October 2023 10 November 2023 – 21,454
First interim dividend paid for the year end 30 September 2024 of 8.8p per share 4 April 2024 17 May 2024 – 16,477
30,877 37,931
* Second interim dividend of 11.4p per share for the year ended 30 September 2025 (2024: 10.8p) 9 October 2025 14 November 2025 15,164 18,097
* The second interim dividend of 11.4p per share (2024: 10.8p) has not been
included as a liability in these Financial Statements as it is only recognised
in the financial year in which it is paid.
The maximum retention permitted under Section 1158 of the Corporation Tax Act
2010 is c.£4.7 million (2024: c.£6.5 million).
The total dividends payable in respect of the financial year which forms the
basis of the retention test are set out below:
2025 2024
£’000 £’000
Revenue available for distribution by way of dividend for the year 27,962 38,931
2025 First interim dividend of 8.8p per share (2024: 8.8p) paid on 16 May 2025 (12,780) (16,477)
2025 Second interim dividend of 11.4p per share (2024: 10.8p) paid on 14 November 2025 (15,164) (18,097)
Net additions to revenue reserves 18 4,357
9. Investments held at Fair Value Through Profit or Loss
ANALYSIS OF PORTFOLIO MOVEMENTS
2025 2024
£’000 £’000
Opening book cost 1,100,447 1,244,868
Opening investment holding gains 492,771 591,792
Valuation at 1 October 1,593,218 1,836,660
Movements in the year:
Purchases at cost 130,035 122,156
Sales proceeds (437,522) (443,604)
Other capital receipts (10) –
(Loss)/gains on investments (34,706) 78,006
Valuation at 30 September 1,251,015 1,593,218
Closing book cost 917,255 1,100,447
Investment holding gains at 30 September 333,760 492,771
Valuation at 30 September 1,251,015 1,593,218
The Company received £437,522,000 (2024: £443,604,000) from investments sold
in the year. The realised gains of these investments were £124,305,000 (2024:
177,027,000) and the book cost of these investments when they were purchased
was £313,227,000 (2024: £266,577,000). These investments have been revalued
over time and until they were sold any unrealised gains/losses were included
in the fair value of the investments.
Purchase transaction costs for the year to 30 September 2025 were £701,000
(2024: £516,000). These comprise stamp duty costs of £698,000 (2024:
£471,000) and commission of £3,000 (2024: £45,000). Sales transaction costs
for the year to 30 September 2025 were £116,000 (2024: 127,000) and comprise
solely of commission.
10. Debtors
2025 2024
£’000 £’000
Amounts due from brokers in respect of portfolio trading – disposals 3,603 2,261
Accrued income and prepayments 1,784 5,248
5,387 7,509
11. Creditors: Amounts Falling Due Within One Year
2025 2024
£’000 £’000
Amounts due to brokers in respect of portfolio trading – purchases 47 –
Amounts due to brokers in respect of shares repurchased by the Company 3,299 2,550
Other creditors and accruals 1,226 1,448
4,572 3,998
12. Bank Loan
2025 2024
£’000 £’000
Bank loan 29,200 29,200
Bank of Nova Scotia, London Branch, the provider of the Company’s loan
facility, has a floating charge over the assets of the Company as security
against any funds drawn down under the loan facility. As at 30 September 2025
the Company was in the third year of its three year secured fixed term
multi-currency revolving loan facility of £60 million (with an additional
£40 million available if required).
Subsequent to the year-end on 3 October 2025, the Company’s loan facility
with Scotiabank was renewed and it entered into a new three-year secured
facility of £40 million with an additional £60 million facility available if
required.
The main covenant under the loan facility required that, at each month end,
total borrowings should not exceed £100 million (2024: £100 million), Net
Asset Value must not fall below £750 million (2024: £750 million) and the
ratio of Adjusted Total Net Assets to Debt is not to be less than 4:1 (2024:
4:1). There were no breaches of the covenants during the year.
The Board has set a gearing limit which must not exceed 25% of the Company’s
net asset value. See the Strategic Report for further details.
13. Called Up Share Capital
2025 2024
£’000 £’000
Allotted, issued and fully paid:
133,018,887 (2024: 167,717,668) ordinary shares of 25p each 33,255 41,930
91,972,416 (2024: 57,273,635) ordinary shares of 25p held in Treasury 22,993 14,318
224,991,303 (2024: 224,991,303) total ordinary shares of 25p each 56,248 56,248
No shares were issued by the Company during the year (2024: Nil).
During the year, the Company bought back 34,698,781 shares to be held in
Treasury at a cost of £309,666,000 (2024: 36,801,766 shares were bought back
at a cost of £310,808,000).
Between 1 October 2025 and 1 December 2025, the Company bought back a further
10,787,363 shares into Treasury at a cost of £90.2m.
14. Capital Reserve
CAPITAL RESERVE REALISED £'000 CAPITAL RESERVE INVESTMENT HOLDING GAINS UNREALISED £'000 2025 TOTAL £'000 CAPITAL RESERVE REALISED £'000 CAPITAL RESERVE INVESTMENT HOLDING GAINS UNREALISED £'000 2024 TOTAL £'000
At 1 October 2024 (80,281) 492,771 412,490 12,420 591,792 604,212
Gains/(losses) on investments 124,305 (159,011) (34,706) 177,027 (99,021) 78,006
Repurchase of shares into Treasury – – – (260,969) – (260,969)
Expenses charged to capital (5,765) – (5,765) (6,907) – (6,907)
Finance costs charged to capital (1,364) – (1,364) (1,667) – (1,667)
Currency translations (12) – (12) (185) – (185)
At 30 September 2025 36,883 333,760 370,643 (80,281) 492,771 412,490
The amount of the capital reserve that is distributable is complex to
determine and is not necessarily the full amount of the reserve as disclosed
within these Financial Statements of £370,632,000 as at 30
September 2025 (2024: 412,490,000) as this is subject to fair value
movements and may not be readily realisable at short notice.
15. Net Asset Value Per Share
2025 2024
Net assets (£'000) 1,227,740 1,582,168
Number of shares in issue (excluding shares held in Treasury) 133,018,887 167,717,668
Net asset value per share 923.0p 943.4p
As at 30 September 2025 and 2024 there were no dilutive instruments held,
therefore the basic and diluted net asset value per share are the same.
At 30 September 2025 91,972,416 shares were held in Treasury (2024:
57,273,635).
16. Transactions with the AIFM, the Portfolio Manager and Related Parties
Details of the relationship between the Company, Frostrow and Lindsell Train
are disclosed in the Strategic Report within the Annual Report and also on the
Company’s website.
As at 30 September 2025, the Company had an investment in Frostrow with a book
cost of £200,000 (2024: £200,000) and a fair value of £2,925,000 (2024:
£3,225,000) (including the AIFM capital contribution of £125,000 (2024:
£125,000)). During the year Frostrow earned a total of £1,921,000 (2024:
2,260,000) in respect of AIFM fees, of which £140,000 was
outstanding at 30 September 2025 (2024: £171,000).
The Company has an investment in The Lindsell Train Investment Trust plc,
which is managed by Lindsell Train, with a book cost of £1,000,000 (2024:
£1,000,000) and a fair value of £6,800,000 as at 30
September 2025 (2024: 7,640,000). During the year Lindsell Train earned a
total of £5,765,000 (2024: £6,781,000) in respect of Portfolio Management
fees of which £421,000 was outstanding at 30 September
2025 (2024: £512,000).
Further details can be found in the Corporate Information section of the
Company's website.
Details of the income received from the AIFM are disclosed in note 2 and
details of the remuneration payable to the AIFM and the Portfolio Manager are
disclosed in note 3.
Details of the fees of all Directors can be found in note 4. Directors’
interests in the capital of the Company can be found in the Remuneration
Report within the Annual Report. There were no other material transactions
during the year with the Directors of the Company.
17. Risk Management
As an investment company the Company invests in equities and other investments
for the long term so as to secure its investment objective.
In pursuit of its investment objective, the Company is exposed to a variety
of risks that could result in either a reduction in the Company’s net assets
or a reduction in the revenue returns available for distribution.
The Company’s financial instruments comprise mainly equity investments, cash
balances, borrowings, debtors and creditors that arise directly from its
operations.
The principal risks inherent in managing financial instruments are market
risk, liquidity risk and credit risk.
The principal and emerging risks of the Company and the Directors’ approach
to the management of those where the Directors consider there to be a high
inherent risk are set out in the Strategic Report.
MARKET RISK
Market risk comprises three types of risk: market price risk, interest rate
risk and currency risk.
Market Price Risk
As an investment company, performance is dependent on the performance of the
underlying companies and securities in which it invests. The market price of
investee companies’ shares is subject to their performance, supply and
demand for the shares and investor sentiment regarding the company or the
industry sector in which it operates. Consequently, market price risk is one
of the most significant risks to which the Company is exposed.
At 30 September 2025, the fair value of the Company’s assets exposed to
market price risk was £1,251,015,000 (2024: 1,593,218,000). If the fair value
of the Company’s investments at the Statement of Financial Position date
increased or decreased by 10%, while all other variables remained constant,
the capital return and net assets attributable to Shareholders for the year
ended 30 September 2025 would have increased or decreased by £125,102,000 or
94.05p per share (2024: 159,322,000 or 94.99p per share).
No derivatives or hedging instruments are currently utilised to manage market
price risk.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in market interest
rates.
Interest rate movement may affect:
* the interest payable on the Company’s variable rate
borrowings
* the level of income receivable from variable interest
securities and cash deposits
* the fair value of investments of fixed rate
securities
The Company’s main exposure to interest rate risk during the year ended 30
September 2025 was through its three year £60 million (2024: £60 million)
secured multi - currency committed revolving credit facility
(with an additional £40 million facility available if required (2024: £40
million)) with Bank of Nova Scotia, London Branch.
Borrowings at the year end amounted to £29,200,000 (2024: £29,200,000) at an
interest rate of 5.3% (4.0% SONIA plus 1.30% margin) (2024: 6.5% (5.2% SONIA
plus 1.30% margin)).
If the above level of borrowing was maintained for a year, a 10% increase or
decrease in SONIA would decrease or increase the revenue return by £29,000,
(2024: £38,000), decrease or increase the capital return in that year by
£88,000 (2024: £114,000) and decrease or increase the net assets by
£117,000 (2024: £152,000).
The weighted average interest rate, during the year, on borrowings under the
above mentioned revolving credit facility was 5.8% (2024: 6.49%). At 30
September 2025, the Company’s financial assets and liabilities exposed to
interest rate risk were as follows:
2025 2024
WITHIN MORE THAN WITHIN MORE THAN
ONE YEAR ONE YEAR ONE YEAR ONE YEAR
£'000 £'000 £'000 £'000
Exposure to floating rates:
Assets
Cash at bank 5,110 – 14,639 –
Liabilities
Creditors:
– borrowings under the loan facility (29,200) – – (29,200)
Exposure to fixed rates:
Assets
Investments at fair value through profit or loss # 490 – 488 –
Liabilities – – – –
# Celtic 6% cumulative convertible preference shares and Frostrow Capital LLP
AIFM Capital Contribution.
Currency Risk
The Financial Statements are presented in sterling, which is the functional
and presentational currency of the Company.
At 30 September 2025, the Company’s investments, with the exception of one,
were priced in sterling. The exception is the holding in Manchester United,
listed in the United States. The holding represents 0.9% of the portfolio.
The AIFM and the Portfolio Manager monitor the Company’s exposure to foreign
currencies on a continuous basis and regularly report to the Board. The
Company does not hedge against foreign currency movements, but the Portfolio
Manager takes account of the risk when making investment decisions.
Income denominated in foreign currencies is converted into sterling on
receipt. The Company does not use financial instruments to mitigate the
currency exposure in the period between its receipt and the time that the
income is included in the Financial Statements.
Foreign Currency Exposure
At 30 September 2025 the Company held £11,747,000 (2024: £39,334,000) of
investments denominated in U.S. dollars and £nil (2024: £24,541,000) in
euros.
Currency Sensitivity
The following table details the sensitivity of the Company’s return after
taxation for the year to a 10% increase or decrease in the value of sterling
compared with the U.S. dollar and euro (2024: 10% increase and decrease).
The analysis is based on the Company’s foreign currency financial
instruments held at each Statement of Financial Position date.
In addition to the foreign currency exposure on investments held at 30
September 2025, the Company also held £17,000 (2024: £385,000) in debtors
denominated in U.S. dollars and £68,000 (2024: £1,230,000) denominated in
Euros.
This level of sensitivity is considered to be reasonably possible based on
observation of current market conditions and historical trends.
If sterling had weakened against the U.S. dollar and euro, as stated above,
assuming all other variables remain constant, this would have had the
following effect:
2025 2024
£’000 £’000
Impact on revenue return 8 106
Impact on capital return 1,307 7,170
Total return after tax/increase in Shareholders’ funds 1,315 7,276
If sterling had strengthened against the foreign currencies as stated above,
assuming all other variables remain constant, this would have had the
following effect:
2025 2024
£’000 £’000
Impact on revenue return (6) (87)
Impact on capital return (1,069) (5,866)
Total return after tax/decrease in Shareholders’ funds (1,075) (5,953)
Credit Risk
Credit risk is the risk that the counterparty to a transaction fails to
discharge its obligations under that transaction, which could result in the
Company suffering a loss. Credit risk is managed as follows:
• Investment transactions are carried
out only with brokers which are considered to have a high credit rating.
• Transactions are undertaken on a
delivery versus payment basis whereby the Company’s custodian bank ensures
that the counterparty to any transactions entered into by the Company has
delivered its obligation before any transfer of cash or securities away from
the Company is completed.
• Any failing trades in the market are
closely monitored by both the AIFM and the Portfolio Manager.
• Cash is only held at banks that have
been identified by the Board as reputable and of high credit quality.
• Bank of New York Mellon has a credit
rating of Aa2 (Moody's) and AA- (Fitch).
As at 30 September 2025, the maximum exposure to credit risk was £9,078,000
(2024: £17,263,000), comprising:
2025 2024
£’000 £’000
Fixed assets:
Non-equity investments (preference shares) 365 363
Current assets:
Other receivables (amounts due from brokers) 3,603 2,261
Cash at bank 5,110 14,639
Total maximum exposure to credit risk 9,078 17,263
None of these assets are past due and are not impaired.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in
meeting obligations associated with financial liabilities.
Liquidity risk is not considered significant as the majority of the
Company’s assets are investments in quoted equities. As at 30 September 2025
it is estimated that 99.3% of the investment portfolio could be realised
within 30 days with 67.0% in seven days, based on current trading volumes.
Liquidity risk exposure
30 SEPTEMBER 30 SEPTEMBER
2025 2024
FINANCIAL LIABILITIES COMPRISE: £'000 £'000
Due within one month:
Balances due to brokers in respect of portfolio trading - purchases 47 –
Amounts due to brokers in respect of shares repurchased by the Company 3,299 2,550
Accruals 1,226 1,448
Bank loan 29,200 –
Due after three months and after one year:
Bank loan – 29,200
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Financial assets and financial liabilities are either carried in the Statement
of Financial Position at their fair value or at a reasonable approximation of
fair value.
VALUATION OF FINANCIAL INSTRUMENTS
The Company measures fair values using the following fair value hierarchy that
reflects the significance of the inputs used in making the measurements.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
asset, noting that most of the Company's investments are quoted assets, which
have been categorised as level 1 investments:
* Level 1 – quoted prices in active markets.
* Level 2 – prices of recent transactions for
identical instruments.
* Level 3 – valuation techniques using observable and
unobservable market data.
The financial assets and liabilities measured at fair value in the Statement
of Financial Position are grouped into the fair value hierarchy at the
reporting date as follows:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AS AT 30 SEPTEMBER 2025 £'000 £'000 £'000 £'000
Equity investments 1,242,198 5,527 – 1,247,725
Limited liability partnership interest (Frostrow) – – 2,800 2,800
Frostrow - AIFM capital contribution – – 125 125
Preference share investments – 365 – 365
1,242,198 5,892 2,925 1,251,015
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AS AT 30 SEPTEMBER 2024 £'000 £'000 £'000 £'000
Equity investments 1,584,265 5,365 – 1,589,630
Limited liability partnership interest (Frostrow) – – 3,100 3,100
Frostrow - AIFM capital contribution – – 125 125
Preference share investments – 363 – 363
1,584,265 5,728 3,225 1,593,218
The unquoted investment in Frostrow is valued by taking the EBITDA and
applying a multiple; it has been re-valued by the Directors during the year,
using two unobservable market data sources, being Frostrow’s earnings and an
agreed appropriate comparator multiple. This was the same methodology adopted
to value Frostrow as at 30 September 2024.
There have been no transfers during the year between Levels 1 and 2. A
reconciliation of fair value measurements in Level 3 is set out below.
Level 3 Reconciliation of financial assets at fair value through profit or
loss at 30 September
2025 2024
£’000 £’000
Opening fair value 3,225 3,725
Total losses included in gains on investments in the Income Statement (300) (500)
Closing fair value 2,925 3,225
If the earnings used in the valuation were to increase or decrease by 10%
while all the other variables remained constant, the return and net costs
attributable to Shareholders for the year ended 30
September 2025 would have increased/decreased by £295,000 (2024: £310,000,
applying the same assumptions).
CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES
The structure of the Company’s capital is described in note 13 and details
of the Company’s reserves are shown in the Statement of Changes in Equity.
The Company’s capital management objectives are:
• to ensure that it is able to continue
as a going concern; and
• to achieve capital and income growth
and to provide Shareholders with a total return in excess of that of the FTSE
All-Share Index through an appropriate balance of equity and debt.
The Board, with the assistance of the AIFM and the Portfolio Manager,
regularly monitors and reviews the broad structure of the Company’s capital.
These reviews include:
• the level of gearing, set at a limit
in normal market conditions, is not to exceed 25% of the Company's net assets,
which takes account of the Company’s position and the views of the Board,
the AIFM and the Portfolio Manager on the market;
• the extent to which revenue reserves
should be retained or utilised; and
• ensuring the Company’s ability to
continue as a going concern.
The Company’s objectives, policies and procedures for managing capital are
unchanged from last year.
There were no breaches by the Company during the year of the financial
covenants put in place by Bank of Nova Scotia, London Branch in respect of the
committed revolving credit facility provided to the Company.
The covenants are unchanged since last year and the Company has complied with
them at all times.
18. Net Cash Inflow from Operating Activities
2025 2024
£’000 £’000
Total (loss)/return before finance charges and taxation (12,076) 110,630
Add/(deduct) capital gain before finance charges and taxation 40,483 (70,914)
Net revenue before finance charges and taxation 28,407 39,716
Decrease in accrued income and prepayments 3,829 1,406
(Decrease)/increase in creditors (222) 385
Taxation – overseas withholding tax (355) (795)
AIFM, portfolio management fees and other expenses charged to capital (5,765) (6,907)
Net cash inflow from operating activities 25,894 33,805
19. Substantial Interests
At 30 September 2025 the Company held interests in 3% or more of any class of
capital in the following entities:
% OF ISSUED
SHARE CAPITAL OR
NUMBER OF 2025 LIMITED LIABILITY
SHARES FAIR VALUE PARTNERSHIP
COMPANY OR LIMITED LIABILITY PARTNERSHIP HELD £'000 INTEREST
Frostrow Capital LLP (unquoted) † – 2,925 9.6
The Lindsell Train Investment Trust plc* 10,000 6,800 5.0
† Includes Frostrow Capital LLP's AIFM Capital Contribution, fair value
£125,000.
* Also managed by Lindsell Train Limited which receives a portfolio management
fee based on the Company’s market capitalisation.
20. Post Balance Sheet Events
During the period from a further 10,787,363 shares were bought back and held
in Treasury at a cost of £90.2m.
FURTHER INFORMATION / Glossary of Terms and Alternative
Performance Measures – Unaudited
ACTIVE SHARE (APM)
Active Share is expressed as a percentage and shows the extent to which a
fund’s holdings and their weightings differ from those of the fund’s
benchmark index. A fund that closely tracks its index might have a low Active
Share of less than 20% and be considered passive, while a fund with an Active
Share of 60% or higher is generally considered to be actively managed. The
Company has a distinctive strategy: a concentrated portfolio of holdings
invested across a small number of sectors and themes. Active Share helps
quantify the extent to which the portfolio differs from the benchmark index.
The Active Share data is sourced from Morningstar.
AIC
Association of Investment Companies. The AIC represents a broad range of
investment companies, investment trusts, VCTs and other closed-ended funds.
ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE (AIFMD)
Agreed by the European Parliament and the Council of the European Union and
transposed into UK legislation, the AIFMD classifies certain investment
vehicles, including investment companies, as Alternative Investment Funds
(AIFs) and requires them to appoint an Alternative Investment Fund Manager
(AIFM) and depositary to manage and oversee the operations of the investment
vehicle. The Board of the Company retains responsibility for strategy,
operations and compliance and the Directors retain a fiduciary duty to
Shareholders.
ALTERNATIVE PERFORMANCE MEASURE ("APM")
An Alternative Performance Measure (APM) is a numerical measure of the
Company’s current, historical or future financial performance, financial
position or cash flows other than a financial measure defined or specified in
the applicable financial framework. In selecting these Alternative Performance
Measures, the Directors consider the key objectives and expectations of
typical investors and believe that each APM gives the reader useful and
relevant information in judging the Company's performance and in comparing
other investment companies.
BENCHMARK RETURN
Total return on the benchmark, assuming that all dividends received were
re-invested, without transaction costs, into the shares of the underlying
companies at the time the shares were quoted ex-dividend.
CHIEF OPERATING DECISION MAKER
The Chief Operating Decision Maker of the Company is considered to be the
Board of Directors. It is a Generally Accepted Accounting Principal (GAAP)
requirement to disclose who the chief operating decision maker is.
DISCOUNT OR PREMIUM (APM)
A description of the difference between the share price and the net asset
value per share. The size of the discount or premium is calculated by
subtracting the share price from the net asset value per share and is
expressed as a percentage (%) of the net asset value per share. If the share
price is higher than the net asset value per share the result is a premium. If
the share price is lower than the net asset value per share, the shares are
trading at a discount. The Board regularly reviews the level of the
discount/premium of the Company’s share price to the net asset value per
share and considers ways in which share price performance may be enhanced,
including the effectiveness of share buy-backs, where appropriate.
30 SEPTEMBER 30 SEPTEMBER
DISCOUNT OR PREMIUM (APM) 2025 2024
Share price (p) 861.0 861.0
Net asset value per share (p) 923.0 943.4
Discount 6.7% 8.7%
ENTERPRISE VALUE INCLUDING CASH (“EVIC”)
EVIC is the denominator used to measure carbon emissions. EVIC means the sum
of the market capitalisation of ordinary shares, the market capitalisation of
preferred shares, and the book value of total debt and non-controlling
interests, without the deduction of cash or cash equivalents.
FTSE DISCLAIMER
“FTSE©” is a trade mark of the London Stock Exchange Group companies and
is used by FTSE International Limited under licence. All rights in the FTSE
indices and/or FTSE ratings vest in FTSE and or its licensors. Neither FTSE
nor its licensors accept any liability for any errors or omissions in the FTSE
indices and/or FTSE ratings or underlying data. No further distributions of
FTSE Data is permitted without FTSE’s express written consent.
GEARING (APM)
Gearing represents prior charges, adjusted for net current assets, expressed
as a percentage of net assets (AIC methodology). The Directors believe that it
is appropriate to show net gearing in relation to Shareholders’ funds as it
represents the amount of debt funding on the investment portfolio. The gearing
policy is that borrowing will not exceed 25% of the Company's net assets.
Prior charges includes all loans and bank overdrafts for investment purposes.
30 SEPTEMBER 30 SEPTEMBER
2025 2024
£’000 £’000
Bank loan (29,200) (29,200)
Net current assets 5,925 18,150
Bank loan adjusted for net current assets (23,275) (11,050)
Net assets 1,227,740 1,582,168
Gearing 1.9% 0.7%
THE INSTITUTIONAL INVESTORS GROUP ON CLIMATE CHANGE (“IIGCC”)
IIGCC membership enables organisations to ensure that they are part of the
solution to climate change.
THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (“IPCC”)
The IPCC is the United Nations body for assessing the science related to
climate change.
NET ZERO ASSET MANAGERS INITIATIVE (“NZAM”)
The Net Zero Asset Managers initiative is an international group of asset
managers committed to supporting the goal of net zero greenhouse gas emissions
by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees
Celsius; and to supporting investing aligned with net zero emissions by 2050
or sooner.
NET ASSET VALUE (“NAV”)
The value of the Company’s assets, principally investments made in other
companies and cash being held, less any liabilities. The NAV is also described
as “Shareholders’ funds”. The NAV is often expressed in pence per share
after being divided by the number of shares that have been issued. The NAV per
share is unlikely to be the same as the share price which is the price at
which the Company’s shares can be bought or sold by an investor. The share
price is determined by the relationship between the demand and supply of the
shares.
NAV TOTAL RETURN PER SHARE (APM)
The theoretical total return on an investment over a specified period assuming
dividends paid to Shareholders were reinvested at NAV per share at the time
the shares were quoted ex-dividend. This is a way of measuring investment
management performance of investment companies which is not affected by
movements in discounts or premiums. The Directors regard the Company’s NAV
total return per share as being the overall measure of value delivered to
Shareholders over the long term. The Board considers the principal comparator
to be its benchmark, the FTSE All-Share Index.
30 SEPTEMBER 30 SEPTEMBER
NAV TOTAL RETURN 2025 2024
Opening NAV per share (p) 943.4 891.2
(Decrease)/increase in NAV per share (p) (20.4) 52.2
Closing NAV per share (p) 923.0 943.4
(Decrease)/increase in NAV per share (2.2)% 5.8%
Impact of dividends re - invested* +2.1% +2.4%
NAV per share total return (0.1)% 8.2%
* The NAV total return is calculated on the assumption that the total
dividends of 19.6p (2024: 19.3p) paid by the Company during the year were
reinvested into assets of the Company at the NAV per share at the ex-dividend
date. The Treasury shares held by the Company have been excluded from this
calculation.
The source of this data is Morningstar who have calculated the return on an
industry comparative basis.
ONGOING CHARGES FIGURE (APM)
Ongoing charges are calculated by taking the Company’s annualised operating
expenses expressed as a proportion of the average daily net asset value of the
Company over the year. The costs of buying and selling investments are
excluded, as are interest costs, taxation, cost of buying back or issuing
ordinary shares and other non-recurring costs. Ongoing charges represent the
costs that Shareholders can reasonably expect to pay from one year to the
next, under normal circumstances.
30 SEPTEMBER 30 SEPTEMBER
2025 2024
£'000 £'000
AIFM and portfolio management fees 7,686 9,041
Operating expenses 1,148 1,310
Total expenses 8,834 10,351
Average net assets during the year 1,428,900 1,697,345
Ongoing charges figure 0.62% 0.61%
THE PARIS AGREEMENT
The Paris Agreement’s central aim is to strengthen the global response to
the threat of climate change by keeping a global temperature rise this century
well below 2 degrees Celsius above pre-industrial levels and to pursue efforts
to limit the temperature increase even further to 1.5 degrees Celsius.
THE PARIS ALIGNED INVESTMENT INITIATIVE (“PAII”)
The PAII was launched by the Institutional Investors Group on Climate Change
(“IIGCC”) in Europe in May 2019, to explore how investors can align their
portfolios with the goals of the Paris Agreement.
PEER GROUP
Finsbury Growth & Income Trust PLC is part of the AIC’s UK Equity Income
sector. The trusts in this universe are defined as trusts whose investment
objective is to achieve a total return for Shareholders through both capital
and dividend growth by investing mainly in UK-quoted shares.
REVERSE STRESS TEST
Reverse stress tests are stress tests that identify scenarios and
circumstances which would make a business unworkable and
identify potential business vulnerabilities.
SASB
The Sustainability Accounting Standards Board (“SASB”) aims to establish
industry-specific disclosure standards across ESG topics that facilitate
communication between companies and investors about financially material,
information that is useful for decision-making.
SHARE PRICE TOTAL RETURN (APM)
The change in capital value of a company’s shares over a given period, plus
dividends paid to Shareholders, expressed as a percentage of the opening
value. The assumption is that dividends paid to Shareholders are re-invested
in the shares at the time the shares are quoted ex-dividend. The Directors
regard the Company’s share price total return to be a key indicator of
performance. This reflects share price growth of the Company which the Board
recognises is important to investors.
30 SEPTEMBER 30 SEPTEMBER
SHARE PRICE TOTAL RETURN 2025 2024
Opening share price share (p) 861.0 852.0
Movement in share price (p) 0.0 9.0
Closing share price (p) 861.0 861.0
Increase in share price 0.0% 1.1%
Impact of dividends re - invested* +2.3% +2.3%
Share price total return 2.3% 3.4%
* The share price total return is calculated on the assumption that the total
dividends of 19.6p (2024: 19.3p) paid during the year were reinvested into
shares of the Company at the share price at the ex-dividend date. The source
is Morningstar who have calculated the return on an industry comparative
basis.
STERLING OVERNIGHT INDEX AVERAGE ("SONIA")
SONIA is an interest rate published by the Bank of England. SONIA can be seen
as the average interest rate at which a selection of financial institutions
lend to one another in British pound sterling (GBP) with a maturity of 1 day
(overnight).
STRESS TESTING
Stress testing Is a forward-looking analysis technique that considers the
impact of a variety of extreme but plausible economic scenarios on the
financial position of the Company.
TCFD
The Financial Stability Board created the Task Force on Climate-related
Financial Disclosures (”TCFD”) to improve and increase reporting of
climate-related financial information.
TREASURY SHARES
Shares previously issued by a company that have been bought back from
Shareholders to be held by the company for potential sale or cancellation at a
later date. Such shares are not capable of being voted and carry no rights to
dividends.
2025 Accounts
The figures and financial information for 2025 are extracted from the Annual
Report and financial statements for the year ended 30 September 2025 and do
not constitute the statutory accounts for the year. The
Annual Report and financial statements include the Report of the Independent
Auditor which is unqualified and does not contain a statement under either
section 498(2) or section 498(3) of the Companies Act 2006.
The Annual Report and financial statements have not yet been delivered to
the Registrar of Companies.
2024 Accounts
The figures and financial information for 2024 are extracted from the
published Annual Report and financial statements for the period ended 30
September 2024 and do not constitute the statutory accounts for that year.
The Annual Report and financial statements have been
delivered to the Registrar of Companies and included the Report of the
Independent Auditor which was unqualified and did not contain a statement
under either section 498(2) or section 498(3) of the Companies Act 2006.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
-ENDS-
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