REG - Global Smlr Cos.Tst - Half-Year Report and Dividend Announcement
16/12/2025 07:00
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RNS Number : 6442L Global Smaller Cos. Trust PLC (The) 16 December 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
The Global Smaller Companies Trust PLC
Unaudited Statement of Results
for the half year ended 31 October 2025 and Interim
dividend announcement
Legal Entity Identifier: 2138008RRULYQP8VP386
Information disclosed in accordance with Disclosure Guidance and Transparency
Rule 4.2
SUMMARY OF UNAUDITED RESULTS FOR THE HALF YEAR ENDED 31 OCTOBER 2025 AND
INTERIM DIVIDEND ANNOUNCEMENT
· Net Asset Value ("NAV") with debt at fair value increased to 190.7p
per share, giving a total return of 15.6% compared to the Benchmark total
return of 21.6%.
· The share price ended the period at 168.6p, delivering a total return
to shareholders of 15.1%.
· The Board announces an interim dividend in respect of the financial
year to 30 April 2026 of 0.70p per ordinary share. This dividend is payable
on 29 January 2026 to shareholders on the register on 30 December 2025, with
an ex dividend date of 29 December 2025.
Date: 16 December 2025
Contact: Nish
Patel
Columbia Threadneedle
Investment Business Limited
020 7464 5000
Chairman's Review
Performance and the Discount
By following its philosophy of conservatively investing in good quality,
growing businesses when they become available at an attractive valuation, the
Company has delivered good investment returns over the longer term and a
dividend which has risen for 55 consecutive years. The six months ended 31
October 2025 presented an environment that was challenging for this style of
investment, instead particularly rewarding more speculative investment or
investment in companies already at elevated valuations. The Company still
delivered a strong rise in its NAV in the period, but underperformed its
Benchmark. Taking the Company's long-term liabilities at fair value, the NAV
per share rose to 190.7p, a 15.6% total return for the six months, compared to
a return of 21.6% from the Benchmark. The Lead Manager's review, starting on
page 4, provides detail on the various drivers of performance over the period.
The Company's discount widened, ending the period at 11.6%. The share price
rose by 13.5% in the six months to 168.6p, giving a total return of 15.1%
after adding dividends paid in the period.
The Board continued to use its buyback powers actively to address the
discount, and the Company repurchased 11.4m shares for treasury over the six
months under review at an average discount to NAV of 10.8%, enhancing the NAV
by 0.3% in the process.
The Company also continued its marketing and PR efforts with the purpose of
attracting buyers of its shares. While still maintaining global coverage, the
Lead Manager has continued a process of reducing the number of holdings in
each region with the aim of enhancing investment returns. Further
opportunities have been identified in this regard.
Economic Backdrop
The World economy showed remarkable resilience in the period with growth
surpassing expectations. Activity continued to be healthy amongst higher
income consumers because of rising asset prices. In contrast, lower and middle
income cohorts remained more price sensitive and selective in their
consumption.
Labour markets softened over the summer, with younger workers particularly
affected, while sectors sensitive to interest rates such as housing, continued
to struggle. Despite inflation remaining above central bank targets, interest
rates were cut in several regions as authorities sought to maintain economic
growth. For the Federal Reserve, matters were complicated by it coming under
increasing political pressure to be more aggressive in easing monetary policy.
Geopolitical developments continued to shape sentiment and impact share prices
in the period. While the majority of tariffs that were announced in early
April by the US Government have been subsequently brought down from the
initially declared levels, they are still at the highest levels since the
1930's. As well as altering trade flows to and from the US, displacement
effects have the potential to impact local trade patterns globally and lead to
higher inflation. Armed conflicts, changes in national political landscapes,
persistent inflation, development of artificial intelligence, interest rate
decisions of central banks, currency movements and fluctuations in energy
prices all added to a complex investment environment, raising both risks and
opportunities.
Regional economic performance varied considerably across the globe. The US
economy benefited from substantial artificial intelligence (AI) related
investments and pre-tariff purchasing activity that boosted consumption.
Sentiment remained weak in the UK, especially ahead of the Budget. Inflation
in the UK lingered but encouragingly it showed signs of stabilising at the end
of the period. Europe's economic recovery progressed more slowly than
expected, hampered by US tariffs and earnings pressure from a stronger Euro.
In contrast, a falling Yen helped Japanese companies and continued to support
the country's tourism sector. Inflation was also persistent in Japan. The
Emerging Markets were affected by uncertainty over trade, none more so than
China. However, this was partially offset by a weakening US Dollar. Economic
stimulus in China along with investment by the country's technology sector led
to improved sentiment amongst Chinese businesses and consumers. India saw
weakness amongst its middle and lower income consumers and interest rates were
cut in response to this.
Dividends
While revenue returns per share rose by 0.7%, in comparison to the six months
to 31 October 2024, the Board has decided to maintain the interim dividend
rate at 0.70p per share. Shareholders on the register on 30 December 2025 will
receive this dividend on 29 January 2026.
Gearing
Gearing ended the six months at 4.5%, slightly down on the 5.3% at the end of
April 2025, as we continue to take a cautious approach to the use of leverage
for now.
Cancellation of the Share Premium Account and Capital Redemption Reserve
Following approval from shareholders at the Company's Annual General Meeting
held on 15 August 2025, the Company has completed the court process required
to cancel its share premium account and capital redemption reserve (the
'Reduction of Capital'). These reserve accounts were non-distributable.
Cancelling them creates additional distributable reserves which will provide
the Company with additional flexibility, if required, to fund share buy-backs,
dividends and other returns of capital in accordance with applicable law.
This Reduction of Capital became effective on 4 December 2025.
Change of Corporate Broker
Following the period end, on 5 December 2025, the Board appointed Investec
Bank plc as the Company's sole corporate broker.
Board Changes
Following the Annual General Meeting on 15 August 2025, the Chairman Anja
Balfour retired from the Board and I was pleased to accept the Board's
invitation to become Chairman. Anja was a director of your Company since 1
June 2015 and served as Chairman since 30 July 2020. I would like to thank
Anja for her significant contribution and commitment to the Company throughout
this time. Following Anja's retirement I have also become Chairman of the
Nomination Committee. Bulbul Barrett has been appointed Senior Independent
Director.
.
Graham Oldroyd
Chairman
15 December 2025
Lead Manager's Review
Equity Market background
After a sharp sell-off in April, equity markets rallied strongly in the six
months ended 31st October 2025 with the Benchmark up 21.6% in the period.
Investors anticipated backtracking by the US government on tariffs that were
announced on 'Liberation Day.' This optimistic shift in trade policy
expectations significantly boosted market sentiment. Equity markets were also
buoyed by enthusiasm over the AI sector, especially after the announcement of
large investments in companies within this area and after several AI related
businesses announced intentions to expand their computing capacity
significantly. Markets also climbed in anticipation of interest rate cuts by
the Federal Reserve after the US labour market showed signed of weakening.
In terms of returns, Asia ex Japan led the way with its smaller companies
index surging 28.1%. North America once again delivered strong gains and its
market climbed by 25.0% albeit returns to UK investors were reduced somewhat
due to the weakness in the Dollar. There were also healthy returns in Japan,
the UK and mainland Europe. The best performing sector by far was technology.
This was followed by industrials and energy. The laggards were consumer
staples, real estate and consumer discretionary. Corporate earnings were
generally better than expected in most regions. Equity market valuations of
smaller companies expanded over the period. Renewed animal spirits lifted
capital markets activity and there was a noticeable pick up in takeovers and
new listings.
Over the six months, the market became increasingly speculative with the
lowest quality companies significantly outperforming the highest quality
businesses. Unprofitable smaller companies rallied strongly as did those on
the highest valuations. This was particularly challenging for the Company's
investment philosophy of taking a long term, conservative approach to
investing in good quality, growing businesses when they become available at an
attractive valuation.
Despite interest rates being cut, longer dated government bond yields remained
high, reflecting concerns over the size of government budget deficits and a
potential resurgence in inflation. These factors also supported the gold
price, which surged 22% over the six month period.
Regional portfolio performance
The table below shows how the different geographical regional portfolios
performed over the period versus the local smaller companies comparator
indices, with all return numbers measured in Sterling. Returns from the North
American, UK and the Rest of World portfolios were behind their local smaller
company indices.
Geographical performance (total return sterling adjusted)
for the half year ended 31 October 2025
Portfolio
Local smaller companies index
North America +13.5% +25.0%
UK +11.1% +14.6%
Europe +16.4% +13.8%
Japan +19.3% +16.4%
Rest of World +19.7% +28.1% (Asia Pacific ex Japan)
+17.6% (Latin America)
Source: Columbia Threadneedle Investments
Summary of performance from the Company's Investments
Financial results from companies in the aerospace and defence sector revealed
strong demand from customers as the West continues to increase its expenditure
on defence after years of under-investment. Businesses linked to expenditure
on AI and data centres also delivered impressive earnings. Positive sentiment
in this area extended to adjacent industries such as power generation and
nuclear. Whilst the healthcare sector faced continued pressure, we began to
see signs of stabilisation in spending on research and development. Takeover
activity was vibrant, with five of our companies receiving takeover bids in
the period.
In an environment of higher interest rates, housing related companies suffered
from depressed transaction volumes. In the chemicals sector, economic
uncertainty and price competition from China induced a weakening in industry
volumes and pricing. After significant increases in recent years, the
insurance industry saw a reduction in the growth rate of premiums. Consumer
staples and adjacent sectors revealed diminished demand in the period as
consumers increasingly migrated toward lower priced alternatives. Whilst
tariffs created uncertainty and delayed the initiation of new projects,
confidence gradually returned as the period progressed. Some companies were
seen by the market as potentially being disrupted by AI. In many cases these
concerns appeared to be overdone.
On the pages that follow there are tables outlining for each region the
largest contributors to, and detractors from performance over the six months
and reasons for those movements.
Asset allocation changes
The table below shows the exposure of the portfolio across the different
markets. Over the period, our exposure to the Rest of World, Europe and Japan
increased, whilst the UK and North America came down. This reflected market
movements and purchase and sale activity in the period. Relative to the
Benchmark our overweight positions in Europe and Japan climbed, as did our
underweight positions in North America and the UK. In the Rest of World we
moved from being underweight to almost neutral. Over the six-month period
asset allocation across the regions had a very slight negative impact on the
Company's performance relative to its Benchmark.
Geographical distribution of the investment portfolio
Portfolio weighting
31 October 2025 30 April 2025
% %
North America 43.1 43.5
UK 18.2 19.6
Rest of World 16.1 14.9
Europe 12.1 11.9
Japan 10.5 10.1
Source: Columbia Threadneedle Investments
North American Portfolio
Largest contributors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Curtiss-Wright Producer of mission-critical components for the aerospace, defence, general 75.8% 1.3% Strong growth from the company's aerospace, defence and power businesses.
industrial and power sectors. Sales and earnings guidance were raised. Was seen as a beneficiary of
increased spending on nuclear power generation.
Boot Barn Holdings Retailer of western and work wear. 84.8% 1.1% Acceleration in same-store sales growth led to better-than-expected earnings.
Long term store count guidance raised. Concerns over tariffs receded.
Advanced Energy Industries Producer of electrical components that focus on power conversion. 111.9% 0.7% Higher sales and earnings in the company's data center business. Stabilisation
seen in the group's industrial and medical segments.
The Ensign Group Operator of skilled nursing and rehabilitative care facilities and provider of 42.1% 0.5% Higher occupancy lifted revenues. Further progress was made on the company's
home health and assisted living services. acquisition strategy. Funding environment remained healthy.
Standex International A diversified manufacturer that specialises in electronics, engineering 68.3% 0.5% New product introductions and a recovery in the company's electronics business
technologies, scientific equipment and industrial engraving services. led to higher earnings forecasts.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
North American Portfolio
Largest detractors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Brown & Brown Insurance broker that focuses on small and medium sized businesses. -26.5% -1.7% Organic revenue growth slowed because of a deceleration in insurance rate
increases. Issuance of equity for a large acquisition.
Graphic Packaging A vertically integrated producer of boxboard packaging for food, beverage and -35.1% -1.6% Packaging volumes fell because of a challenging consumer environment. Industry
consumer products companies. overcapacity led to lower prices. Consequently, earnings declined.
Genpact A business process outsourcer that serves the financial services, consumer, -22.2% -1.1% Tariff related uncertainty led to delays in the signing of new outsourcing
healthcare, manufacturing and technology verticals. deals. Market perceived the company to be potentially disrupted by AI.
Molina Healthcare A managed care business that provides health insurance under government -52.4% -1.0% Fears of cuts to funding for Medicaid programmes by the new US administration.
programmes. Loss ratios increased because of higher acuity and increased utilisation of
services.
Nomad Foods A producer of branded frozen foods. -41.4% -1.0% Revenues were affected by destocking and consumers seeking lower priced
products. Margins were dragged down by higher input costs.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
UK Portfolio
Largest contributors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Oxford BioMedica Contract development and manufacturing organisation that focuses on cell and 127.7% 1.4% Strong order growth and the announcement of new medium targets that were above
gene therapy. expectations
FD Technologies Software and analytics business that specialises in financial markets. 36.6% 0.5% Takeover bid from TA Associates at a 27% premium.
Everplay Developer of video games. 49.1% 0.5% Announced encouraging sales growth from new titles. Progress made on the
company's IP acquisition strategy
WAG Payment Payments platform for the commercial road transportation industry. 67.3% 0.5% Good execution with healthy organic growth in the company's toll business and
progress on debt reduction.
Solutions
Molten Venture capital firm. 75.1% 0.4% Realisations exceeded expectations. Delivered solid growth in NAV per share.
Ventures
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
UK Portfolio
Largest detractors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Auction Supplier of proprietary auction platform technology for online marketplaces. -46.9% -1.2% An adverse shift in business mix crimped profitability. Announced an
acquisition that concerned some investors
Technology
Group
GlobalData Data and analytics solutions for a broad range of industries. -38.5% -0.8% Discussions with a potential acquirer ended without a deal. Lacklustre organic
revenue growth and margin pressure from spending on growth investments held
back earnings.
Marshalls Producer of building materials for the residential, commercial and -38.0% -0.8% Earnings declined in the company's landscape business because of weak demand
infrastructure end markets. and price competition.
Kitwave Distributor of confectionary, food and drink to mostly independent convenience -26.4% -0.7% Profit guidance lowered because of lower demand, higher National Insurance
stores and restaurants. costs and investment in the company's distribution infrastructure.
Moonpig An online greeting card and gifting platform. -5.9% -0.4% Reported lower than expected revenues. CEO unexpectedly resigned.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Europe Portfolio
Largest contributors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
RENK Producer of drive systems for military vehicles 29.1% 1.2% Reported very strong order growth and this led to higher earnings forecasts.
Received broker upgrades.
Bank of Ireland Provider of banking and financial services to retail and corporate customers 44.3% 1.1% A strong Irish economy led to solid core loan growth. A favorable UK Supreme
Court ruling on industry wide mis-selling of vehicle financing lifted the
shares.
Kardex Manufacturer of automated material handling systems. 52.2% 0.8% Customer order growth resumed after a period of tariff related uncertainty.
This prompted higher earnings forecasts.
Storebrand A diversified provider of financial services that include insurance, pensions, 31.1% 0.6% Earnings benefitted from higher insurance rates and growth in the company's
asset management and banking. asset management business.
Konecranes Engineering business that specialises in the production of cranes and overhead 50.3% 0.6% Announced healthy backlog growth, especially from customers in the defence and
lifting equipment. power generation industries.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Europe Portfolio
Largest detractors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
CTS Eventim Distributor of tickets for live entertainment. Organiser of tours and events. -21.6% -1.4% Higher costs to integrate recent acquisitions and a lower margin in the Live
Entertainment division hurt profitability.
Vidrala Manufacturer of glass bottles for the food and beverage industries. -6.2% -0.8% Lower demand for packaging for beer and wine led to declines in overall
volumes and pricing.
Wienerberger Producer of building products for residential and commercial customers. -11.3% -0.6% Volumes declined in the company's North American business because of a
sluggish housing market.
R&S Supplier of power related transformers and components to the utility, -2.7% -0.6% Profit taking after a period of strong performance.
infrastructure and industrial sectors.
IMCD Distributor of specialty chemicals. -20.5% -0.5% Uncertainty amongst customers led to a deterioration in organic revenue
growth, particularly in the company's industrial, beauty and personal care
businesses.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Japan Portfolio
Largest contributors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Furuno Electric Manufacturer of marine equipment. 217.2% 3.9% Strong demand ahead of US tariffs prompted management to raise its profits
guidance. Outlook for defence spending improved.
IHI Producer of heavy machinery for the aerospace, defence, energy and 90.7% 1.8% Announced and started to execute on a strategy to divest non core businesses
infrastructure sectors. that are outside of aerospace, defence and nuclear.
Kinden Construction company that focuses on infrastructure. 58.8% 1.2% Healthy backlog growth and good progress on existing construction projects led
to management raising its earnings and dividend forecast.
Niterra Automotive components producer. 36.6% 0.7% Earnings benefitted from price increases and a weaker Yen. Announced the
acquisition of Denso's spark plug and sensor businesses.
Anycolor Animation studio. 54.6% 0.5% Higher than expected revenues from the company's events division drove strong
profits growth.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Japan Portfolio
Largest detractors to performance
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
Sanwa Holdings Global producer of shutters and doors for residential and commercial -14.2% -1.1% Earnings from the US business were impeded by lower commercial demand and
buildings. tariffs.
Nomura Real Estate Real estate development and property management services. -0.5% -0.8% Impacted by potential restrictions on the resale of new apartments.
NSD Software developer -7.6% -0.7% Annual earnings forecast was lower than expected because of higher wages.
WingArc1st Provider of software and services that help their customers better utilise -15.7% -0.7% Challenging prior year comparisons and acquisition related costs weighed on
data profits.
Amano A diversified producer of technology hardware. -6.2% -0.6% After a strong 2024, growth decelerated in the company's parking systems
business.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Rest of World Portfolio
Overview of performance from third party funds held
Company Business activity Share price movement((1)) Contribution to relative performance of regional portfolio((2)) Reasons for movement
The Scottish Oriental Smaller Companies Trust To achieve long-term capital growth by investing mainly in smaller Asian 1.4% -6.3% Lower beta portfolio did not keep up with a rapidly rising market. Overweight
quoted companies. positions in the Philippines and the consumer staples sector hurt performance,
as did the underweight positions in Taiwan, South Korea and the technology
sector. Food store Philippine Seven and restaurant franchise operator DPC Dash
underperformed because of declines in same store sales. The discount widened
in the period. Share repurchases continued.
Utilico Emerging Markets Trust To provide a long term total return through a flexible investment policy that 20.2% -1.2% Underexposed to AI related companies and overindexed to the more defensive
permits the company to make investments predominantly in infrastructure, utilities sector. IT services company FPT saw a slowdown in growth. Courier
utility and related sectors, primarily in emerging markets. services business InPost faced challenges with one of its major customers and
misexecuted on the integration of an acquisition. Shares were repurchased and
the discount narrowed over the six months.
Schroder ISF Emerging Markets Smaller Companies Fund To provide capital growth in excess of the MSCI Emerging Markets Small Cap 27.5% -0.1% Overweight position in technology and good stock selection in this sector
(Net TR) Index after fees have been deducted over a three to five year period helped performance. Notable contributors included electronic components
by investing in equities of small-sized companies in global emerging market company Taiwan Union Technology and measuring instruments business Chroma ATE.
countries. Underweight stance to India also contributed to relative returns.
PineBridge Asia ex Japan Small Cap Equity Fund To seek long term capital appreciation by investing in smaller to medium-sized 33.5% 1.1% The fund's allocation to China and the technology sector helped relative
companies in the Asian Region. performance as did its underindexation to India and the real estate sector as
a whole. Strong performers included optical modules company Eoptolink
Technology and packaged food producer Samyang Foods.
(1) This is the share price total return in GBP over the period that the
shares were held
(2) This is the geometric total effect of holding the stock within the
regional portfolio
Source: Factset
Outlook
The period saw strong stock market returns, albeit these were driven by a
narrow group of industries and market factors. Positively, trade uncertainty
appears to be clearing, although the full effects of the policies are probably
yet to be felt. Beyond these challenges, we can look forward to deregulation
and the benefits of the recently passed tax bill in the US. We should also
start to see disbursements from European infrastructure programmes and the
introduction of fiscal growth initiatives by Japan's new government. Several
sectors of the World economy should also benefit from lower inflation and
subsequent interest rate cuts.
AI has garnered much attention and today it resembles previous booms in
capital expenditures following the rise of a new and exciting technology. If
history serves as a guide, the eventual impact of this technology will
probably be underestimated; however, its benefits will likely materialise
later than currently anticipated. Whilst elevated levels of spending in the
near term should be supportive of growth, there is the potential for investors
to be disappointed if sufficient returns from these projects are not
delivered. After the recent news of bankruptcies amongst US companies with
off-balance sheet financing, we are also paying close attention to corporate
credit markets, as these have historically been an important source of
financing for smaller companies.
It remains a very uncertain investing environment, yet market participants
seem complacent. Accordingly, the backdrop calls for caution rather than
aggression. Whilst our conservative style of investing is currently not in
vogue, we remain confident that it will come back into favour and that it is
the right approach to take over the long term.
Nish Patel
Lead Manager
15 December 2025
Unaudited Condensed Income Statement
for the half year ended 31 October 2025 2024
Revenue Capital Total Revenue Capital Total
£'000s £'000s £'000s £'000s £'000s £'000s
Gains/(losses) on investments - 109,199 109,199 - 13,302 13,302
Foreign exchange (losses)/gains (15) (176) (191) (51) 208 157
Income 8,353 230 8,583 8,913 1,468 10,381
Management fees (513) (1,538) (2,051) (543) (1,630) (2,173)
Other expenses (679) (13) (692) (625) (16) (641)
Net return before finance costs and taxation 7,146 107,702 114,848 7,694 13,332 21,026
Finance costs (177) (532) (709) (197) (591) (788)
Net return on ordinary activities before taxation
6,969 107,170 114,139 7,497 12,741 20,238
Taxation on ordinary activities (502) - (502) (528) - (528)
Net return attributable to shareholders 6,467 107,170 113,637 6,969 12,741 19,710
Return per share - pence 1.46 24.26 25.72 1.45 2.65 4.10
The total column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
Unaudited Condensed Statement of Changes in Equity
Half year ended
31 October 2025 Share Capital Total
Share premium redemption Capital Revenue shareholders'
capital account reserve reserves reserve funds
£'000s £'000s £'000s £'000s £'000s £'000s
Balance at 30 April 2025 15,513 212,639 16,158 472,553 19,952 736,815
Movements during the
half year ended
31 October 2025
Dividends paid - - - - (10,193) (10,193)
Shares repurchased by the Company and held in treasury
- - - (18,804) - (18,804)
Net return attributable to equity
shareholders - - - 107,170 6,467 113,637
Balance at 31 October 2025 15,513 212,639 16,158 560,919 16,226 821,455
Half year ended
31 October 2024 Share Capital Total
Share premium redemption Capital Revenue shareholders'
capital account reserve reserves reserve funds
£'000s £'000s £'000s £'000s £'000s £'000s
Balance at 30 April 2024 15,513 212,639 16,158 605,607 20,145 870,062
Movements during the
half year ended
31 October 2024
Dividends paid - - - - (10,304) (10,304)
Shares repurchased by the Company and held in treasury
- - - (43,897) - (43,897)
Net return attributable to equity
shareholders - - - 12,741 6,969 19,710
Balance at 31 October 2024 15,513 212,639 16,158 574,451 16,810 835,571
Year ended 30 April 2025
Share Capital Total
Share premium redemption Capital Revenue shareholders'
capital account reserve reserves reserve funds
£'000s £'000s £'000s £'000s £'000s £'000s
Balance at 30 April 2024 15,513 212,639 16,158 605,607 20,145 870,062
Movements during the year
ended 30 April 2025
Dividends paid - - - - (13,536) (13,536)
Shares repurchased by the Company and held in treasury
- - - (77,132) - (77,132)
Net return attributable to equity
shareholders - - - (55,922) 13,343 (42,579)
Balance at 30 April 2025 15,513 212,639 16,158 472,553 19,952 736,815
Unaudited Balance Sheet
31 October 2025 31 October 2024 30 April 2025
£'000s £'000s £'000s
Fixed assets
Investments 858,340 869,837 774,733
Current assets
Debtors 4,111 55,901 3,685
Cash and cash equivalents 15,452 9,687 12,490
Total current assets 19,563 65,588 16,175
Creditors: amounts falling due within one year
Bank loans (16,187) (16,212) (16,050)
Creditors (5,261) (48,642) (3,043)
Total current liabilities (21,448) (64,854) (19,093)
Net current (liabilities)/assets (1,885) 734 (2,918)
Total assets less current liabilities 856,455 870,571 771,815
Creditors: amounts falling due after more than one year
Loan notes (35,000) (35,000) (35,000)
Net assets 821,455 835,571 736,815
Capital and reserves
Called-up share capital 15,513 15,513 15,513
Share premium account 212,639 212,639 212,639
Capital redemption reserve 16,158 16,158 16,158
Capital reserves 560,919 574,451 472,553
Revenue reserve 16,226 16,810 19,952
Total shareholders' funds 821,455 835,571 736,815
Net asset value per share (debt at par value) - pence
188.40 178.48 164..67
( )
Unaudited Condensed Statement of Cash Flows
Half year ended Half year ended
31 October 2025 31 October 2024
£'000s £'000s
Cash flows from operating activities before dividends received and interest
paid
(3,419) (2,151)
Dividends received 9,053 9,918
Interest received 209 187
Interest paid (685) (768)
Cash flows from operating activities 5,158 7,186
Investing activities
Purchases of investments (113,182) (66,720)
Sales of investments 140,112 113,237
Cash flows from investing activities 26,930 46,517
Cash flows before financing activities 32,088 53,703
Financing activities
Ordinary dividends paid (10,193) (10,304)
Cash flows from share buybacks for treasury shares (18,879) (44,639)
Cash flows from financing activities (29,072) (54,943)
Net movement in cash and cash equivalents 3,016 (1,240)
Cash and cash equivalents at the beginning of the period 12,490 11,021
Effect of movement in foreign exchange (54) (94)
Cash and cash equivalents at the end of the period 15,452 9,687
Represented by:
Cash at bank 3,541 3,220
Short term deposits less than 3 months 11,911 6,467
Cash and cash equivalents at the end of the period 15,452 9,687
Unaudited Notes on the Condensed Financial Statements
1 Accounting policies
These condensed financial statements have been prepared on a going concern
basis in accordance with the Companies Act 2006, FRS 102, Interim Financial
Reporting (FRS 104) and the Statement of Recommended Practice "Financial
Statements of Investment Trust Companies and Venture Capital Trusts" (SORP)
issued by the AIC.
The accounting policies applied for the condensed set of financial statements
are set out in the Company's annual report for the year ended 30 April 2025.
2 Return per share
Basic returns per share attributable to ordinary shareholders are based on the
following data.
Half Year ended Half year ended Year ended
31 October 2025 31 October 2024 30 April 2025
£'000s £'000s £'000s
Revenue return attributable to shareholders - £'000s 6,467 6,969 13,343
Capital return attributable to shareholders - £'000s 107,170 12,741 (55,922)
Total return attributable to shareholders - £'000s 113,637 19,710 (42,579)
Revenue return per share - pence 1.46 1.45 2.84
Capital return per share - pence 24.26 2.65 (11.90)
Total return per share - pence 25.72 4.10 (9.06)
Weighted average number of ordinary shares in 441,759,289 481,649,140 469,806,386
issue during the period
3 Dividends
Half year ended 31 October 2025 Half year ended 31 October 2024
£'000s £'000s
Year ended 30 April 2025
£'000s
Dividends on ordinary shares Register date Payment date
Final for the year ended 30 April 2024 of 2.13 pence - 10,304 10,304
12 July 2024 20 August 2024
- - 3,232
Interim for the year ended 30 April 2025 of 0.70 pence
27 December 2024 23 January 2025
10,193 - -
Final for the year ended 30 April 2025 of 2.30 pence
11 July 2025 20 August 2025
10,193 10,304 13,536
The Directors have declared an interim dividend in respect of the year ending
30 April 2026 of 0.70p per share, payable on 29 January 2026 to all
shareholders on the register at close of business on 30 December 2025. The
amount of this dividend would be £3,035,000 based on 433,564,357 shares in
issue at 12 December 2025. This amount has not been accrued in the results for
the half year ended 31 October 2025.
4 Investments
Total (Level 1*)
£'000s
Cost at 30 April 2025 665,736
Gains at 30 April 2025 108,997
Fair value of investments at 30 April 2025 774,733
Movements in the period:
Purchases at cost 115,509
Sales proceeds (141,350)
Gains on investments sold in period 19,632
Gains on investments held at period end 89,816
Fair value of investments at 31 October 2025 858,340
Total
£'000s
Cost at 31 October 2025 659,527
Gains at 31 October 2025 198,813
Fair value of investments at 31 October 2025 858,340
* Level 1 includes investments listed on any recognised stock exchange or
quoted on AIM in the UK. Level 2 includes investments for which the quoted
price has been suspended. Level 3 includes any unquoted investments which are
held at Directors' valuation. There were no investments held which are valued
in accordance with level 2 or level 3.
5 Share capital
Shares held in Shares entitled Total shares Issued and fully
treasury to dividend in issue paid nominal
Equity share capital Number Number Number £'000s
Ordinary shares of 2.5p each
Balance at 30 April 2025 173,090,341 447,443,429 620,533,770 15,513
Shares repurchased by the Company and held in treasury 11,424,855 (11,424,855) - -
Balance at 31 October 2025 184,515,196 436,018,574 620,533,770 15,513
During the half year ended 31 October 2025, 11,424,855 ordinary shares were
repurchased and held in treasury incurring a cost of £18,804,000. Since the
period end up to 12 December 2025 a further 2,454,217 ordinary shares have
been bought back and held in treasury, costing £4,157,000.
6 Net asset value per ordinary share
31 October 2025 31 October 2024 30 April 2025
NAV with debt at par value
Net assets attributable at the period end - £'000s 821,455 835,571 736,815
Number of ordinary shares in issue at the period end 436,018,574 468,147,559 447,443,429
Net asset value per share with debt at par value - pence 188.40 178.48 164.67
31 October 2025 31 October 2024 30 April 2025
NAV with debt at fair value
Net assets attributable at the period end - £'000s 821,455 835,571 736,815
Add back: Debt as par - £'000s 51,187 51,212 51,050
Deduct: Debt at fair value - £'000s (41,096) (40,388) (40,392)
Net assets with debt at fair value - £'000s 831,546 846,395 747,473
Number of ordinary shares in issue at the period end 436,018,574 468,147,559 447,443,429
Net asset value per share with debt at fair value - pence 190.71 180.80 167.05
7 Going concern
In assessing the going concern basis of accounting, the Directors have had
regard to the guidance issued by the Financial Reporting Council. They have
also considered the Company's objective, strategy and policy, the current cash
position of the Company, the availability of its loan facilities, compliance
with its covenants and the operational resilience of the Company and its
service providers. It is recognised that the Company is mainly invested in
readily realisable, globally listed securities that can be sold, if necessary,
to repay indebtedness.
Based on this information, the Directors believe that the Company has the
ability to meet its financial obligations as they fall due for a period of at
least twelve months from the date of approval of these financial statements.
Accordingly, these financial statements have been prepared on a going concern
basis.
8 Transactions with related parties and the Manager
The Board of Directors is defined as a related party. Under the FCA UK Listing
Rules, the Manager is also defined as a related party. However, the existence
of an independent Board of Directors demonstrates that the Company is free to
pursue its own financial and operating policies and therefore under the AIC
SORP, the Manager is not considered a related party for accounting purposes.
The Directors receive aggregated remuneration for services as Directors and
for which there were no outstanding balances at the period end. There have
been no transactions with related parties during the first six months of the
current financial year that have materially affected the financial position or
performance of the Company during the period and there have been no changes in
the related party transactions described in the last Annual Report and
Financial Statements that could do so.
Management fees to the Manager are set out in note 3 and note 9 in the Half
Year Report, where accrued management fees are disclosed.
9 Results
The results for the half year ended 31 October 2025 and 31 October 2024, which
are unaudited and which have not been reviewed by the Company's auditor
pursuant to the Auditing Practices Board guidance on 'Review of Interim
Financial Information', constitute non-statutory accounts within the meaning
of Section 434 of the Companies Act 2006. The latest published accounts which
have been delivered to the Registrar of Companies are for the year ended
30 April 2025; the report of the auditor thereon was unqualified and did not
contain a statement under Section 498 of the Companies Act 2006. The condensed
financial statements shown above for the year ended 30 April 2025 are an
extract from those financial statements.
By order of the Board
Columbia Threadneedle Investment Business Limited, Company Secretary
Cannon Place, 78 Cannon Street, London EC2N 6AG
15 December 2025
Directors' Statement of Principal and Emerging Risks
The Company's principal and emerging risks are described in detail under the
heading "Principal and Emerging Risks" within the strategic report in the
Company's Annual Report for the year ended 30 April 2025. They include:
· Service providers and systems security - Errors, fraud or control
failures at service providers or loss of data through business continuity
failure or cyber-attacks could damage reputation or investors' interests or
result in loss. Cyber risks remain heightened.
· Investment performance - Inappropriate business strategy or
policy, or ineffective implementation, could result in poor returns for
shareholders. Failure to access the targeted market or meet investor needs or
expectations, including Responsible Investment and climate change in
particular, leading to significant pressure on the share price. Political risk
factors could also impact performance as could market shocks such as those
experienced in relation to Covid-19 and the US trade tariffs.
· Discount/premium - A significant share price discount or premium
to the Company's NAV per share, or related volatility, could lead to high
levels of uncertainty or speculation and the potential to reduce investor
confidence. Increased uncertainty in markets due to an event such as Covid-19
could lead to falls and volatility in the Company's NAV.
The Directors continue to review the key risk register for the Company which
identifies the risks that the Company is exposed to, the controls in place and
the actions being taken to mitigate them. The Board has also considered the
outlook for inflation and ongoing macroeconomic and geopolitical concerns.
The Board believes that there have not been any material changes to the nature
of the risks outlined above since the previous Annual Report and that the
principal risks and uncertainties, as summarised, remain applicable to the
remaining six months of the financial year. The Board has considered this in
relation to going concern, as set out in note 7.
Directors' Statement of Responsibilities in Respect of the Half Year Financial
Report
In accordance with Chapter 4 of the Disclosure Guidance and Transparency
Rules, the Directors confirm that to the best of their knowledge:
· the condensed set of financial statements has been prepared in
accordance with applicable UK Accounting Standards on a going concern basis,
and gives a true and fair view of the assets, liabilities, financial position
and net return of the Company;
· the Chairman's Review, Lead Manager's Review and the Directors'
Statement of Principal and Emerging Risks (together constituting the Interim
Management Report) includes a fair review of the information required by the
Disclosure Guidance and Transparency Rule ("DTR") 4.2.7R. being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the financial statements;
· the Directors' Statement of Principal and Emerging Risks shown
above is a fair assessment of the principal and emerging risks for the
remainder of the financial year; and
· The Half Year Report includes a fair review of the information
required by DTR 4.2.8R, being related party transactions that have taken place
in the first six months of the current financial year and that have materially
affected the financial position or performance of the Company during that
period, and any changes in the related party transactions described in the
last Annual Report that could do so.
On behalf of the Board
Graham Oldroyd
Chairman
15 December 2025
ENDS
A copy of the Half Year Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The Half Year Report for the six months ended 31 October 2025 will be posted
to shareholders and made available shortly on the Company's website at
globalsmallercompanies.co.uk, where up to date information on the Company,
including daily NAV and share prices, factsheets and portfolio information can
also be found. Copies may also be obtained from the Company's registered
office, Cannon Place, 78 Cannon Street, London EC2N 6AG.
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.
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