Henderson HighIncome - Half-year Financial Report

Henderson High Income Trust

09/09/2026 07:00

RNS Number : 9062T
  
Henderson High Income Trust PLC
  
09 September 2026
  
 


LEGAL ENTITY IDENTIFIER: 213800OEXAGFSF7Y6G11
 
HENDERSON HIGH INCOME TRUST PLC
Unaudited results for the half year ended 30 June 2026
This announcement contains regulated information
 
Investment Objective
The Company invests in a prudently diversified selection of both well-known and smaller companies to provide investors with a high dividend income stream while also maintaining the prospect of capital growth.
 
Performance for the six months to 30 June 2026
·   Net asset value (NAV) total return (debt at fair value)1 of 6.3% compared with a total return from the benchmark2 of 6.0%
·   Mid-market share price total return (including dividends reinvested) of 8.7%
 




Financial highlights


 
at 30 June 2026


 
at 31 December 2025




NAV per share3


205.6p


198.8p




Mid-market price per share


198.0p


187.5p




Net assets


£351.8m


£340.2m




Dividends paid/payable in respect of the period


5.55p


10.90p




Dividend yield


5.6%


5.8%




Gearing


17.9%


17.5%




(Discount)/premium to NAV (debt at fair value)


(3.7%)


(5.7%)




 
 




Total return performance (including dividends reinvested and excluding transaction costs)
 




 


6 months
%


1 year
%


3 years
%


5 years
%


10 years
%




NAV total return (debt at fair value)1


6.3


14.4


49.2


60.9


115.0




Share price total return4


8.7


16.5


46.1


54.7


113.8




Benchmark2


6.0


18.3


46.3


51.7


104.0




FTSE All-Share Index


7.2


21.9


53.1


67.9


129.8




ICE BofA Sterling Non-Gilts Index


0.9


4.2


20.4


(2.6)


18.9






























1.  Net asset value with debt at fair value per ordinary share total return (including dividends reinvested and excluding transaction costs)    
2.  The benchmark is a composite of 80% of the FTSE All-Share Index (total return) and 20% of the ICE BofA Sterling Non-Gilts Index (total return) rebalanced annually
3.  Net asset value per share with debt at fair value as published by the Association of Investment Companies (AIC)
4.  The mid-market share price total return (including dividends reinvested)
 
Sources: Morningstar Direct and Janus Henderson




 






CHAIRMAN'S STATEMENT
 
Markets/Performance
The first half of 2026 has seen financial markets deliver positive returns. Despite a difficult and volatile backdrop given the hostilities in the Middle East, which has exerted upwards pressure on energy prices and inflation, companies have generally been able to weather the storm and monetary policy has been supportive. Overall corporate profitability has remained robust and dividend payout rates have continued to be positive.
 
The Company's performance in the first half of the year versus its benchmark (80% of the FTSE All-Share Index and 20% of the ICE BofA Sterling Non-Gilts Index) has been a touch ahead with a net asset value total return of 6.3% versus the benchmark return of 6.0%. The Company's share price total return was higher at 8.7% as the discount at which the Company's share price has traded at relative to net asset value reduced during the period.
 
Gearing/Asset Allocation
The Company's asset allocation has continued to favour equities over fixed interest investments. During the first half of the year approximately 90% of the Company's assets were invested in equities and 10% in bonds. Gearing through the first half of the year remained stable, commencing at 17.5% and ending at 17.9%.
 
Dividends
The first interim dividend of 2.775 pence per share was paid on 24 April 2026 and the second interim dividend for the same amount was paid on 24 July 2026. A third interim dividend of 2.8 pence per share was announced on 6 July 2026 and this dividend will be paid on 30 October 2026 to shareholders registered at the close of business on 11 September 2026.
 
Dividend payouts from UK companies have continued to be positive although there have been pockets of weakness with the UK housebuilding sector being a notable casualty.
 
The Board as ever continues to regularly review prospective income levels from the Company's portfolio and it remains confident in the Company's ability to provide shareholders with a high income return.
 
Board of Directors
Having chaired the Board since May 2021 and having been appointed to the Board in 2018, I will be stepping down at the Annual General Meeting in 2027. I am very pleased that Richard Cranfield, who was appointed as a Director in March 2020, will succeed me as Chairman. Richard is the current Chairman of IntegraFin Holdings plc, a FTSE 250 Company.
 
The Board has commenced a search for a new Director to join the Board in early 2027.
 
Investment Management Arrangements
The Board regularly reviews arrangements with Janus Henderson to ensure that they are in the best interests of shareholders. In line with other Janus Henderson investment trusts and indeed other competitor investment trusts, we have agreed that it would be prudent to have more formalised additional investment cover.
 
In this respect I am pleased to say that Andrew Jones, a member of the Janus Henderson Global Equity Income Team who has 30 years investment experience, has been appointed as Deputy Fund Manager to Henderson High Income. Andrew works closely with David Smith, who has been the Company's Fund Manager since 2014 and Andrew has been the effective deputy fund manager for some time. The Board does not anticipate any change to the management of the Company's portfolio.
 
Outlook
Arguably the performance of financial markets during the first half of 2026 has been better than expected given the difficult geopolitical backdrop. High energy prices, supply chain issues and higher price inflation have provided a challenging mix. The on-off nature of the current ceasefire in the Middle East provides an unstable environment as we look forward to the rest of the year.
 
Within the UK, corporate performance has been generally encouraging and whilst there are undoubtedly pockets of weakness in the domestic economy, with the outlook for the construction and housebuilding sector looking particularly challenging, larger companies appear to be more resilient due to their balanced activities across the globe. There has been a notable increase in corporate takeover activity with international companies and investors recognising the inherent value of UK quoted companies. In addition, monetary policy should remain supportive of equity markets with the Bank of England unlikely to tighten too significantly whilst overall economic growth prospects remain muted.
 
As usual David Smith, the Company's Fund Manager, will continue to look for those companies which can offer higher levels of income generation whilst also providing the scope to deliver capital growth over the medium term.
 
Jeremy Rigg
Chairman
8 September 2026












Fund Manager's Report
 
Markets
The FTSE All-Share Index returned 7.2% during the first six months of the year, as thawing global trade tensions, an initial peace agreement in the Middle East and positive corporate results helped support global equity markets. In March, the escalation of the conflict in the Middle East caused a slump in global stocks as surging oil and gas prices boosted inflation expectations and raised the possibility of tighter monetary policy. Equities then rebounded as a ceasefire largely held, despite occasional flare-ups in tensions, while the US and Iran later signed an initial peace deal. Shifting sentiment around artificial intelligence (AI) also caused volatility. Worries about technology companies' significant investment in AI, along with anxiety about potential AI-led disruption to traditional business models, unnerved investors. In June, Prime Minister Keir Starmer announced his resignation following the Labour Party's large losses in May's local elections. During the period the Bank of England kept its benchmark rate at 3.75% while UK CPI inflation (Consumer Price Index) cooled to 2.6% in June from 3.0% in January.
 
The FTSE 100 (+7.6%) outperformed the FTSE 250 (+4.3%) and FTSE Small Cap (+7.1%) indices.  Sectors such as mining, banks and aerospace & defence outperformed, while software & computer services, housebuilders and financial services lagged.
 
Performance
The Company's NAV (with debt at fair value) total return was 6.3% over the period, modestly outperforming the benchmark return of 6.0%. Within the equity portfolio, holdings in Schroders and DCC Energy were positive for performance. Schroders was subject to an agreed bid approach from Nuveen, while DCC Energy received its own approach from a private equity consortium. Some of the overseas holdings, such as Texas Instruments and Engie, also performed well. Semiconductor manufacturer Texas Instruments reported strong trading, benefiting from robust demand from the build-out of data centres in the US. Engie's agreed acquisition of UK Power Networks was well received by investors.
 
Holdings in Dunelm, Michael Page and Imperial Brands detracted from returns.  Dunelm reported softer trading due to subdued underlying market conditions.  Recruiter Michael Page suffered from a lacklustre recruitment market while fears over the impact of AI on employment also weighed on the shares. Imperial Brands announced a mixed trading statement, with modest market share losses across its five main countries.
 
Portfolio Activity
Within the equity portfolio, new holdings were established in Bodycote and Carlsberg. Bodycote is a global provider of heat treatment and specialist metallurgy services with margin expansion potential as the business shifts towards higher‑value specialist technologies. Carlsberg is a global beer and soft drink manufacturer with potential for organic volume recovery across its beer portfolio, as well as margin expansion following the acquisition of Britvic.  Elsewhere, we added to our existing holdings in RELX and BP. RELX's share price fall on AI concerns presented an attractive buying opportunity as we believe the business is well protected from AI-related threats, given its data analytics are based on proprietary data. BP's strategic shift towards a simpler, more focused oil and gas business, combined with tighter capital discipline, should drive improved returns and cash generation over the medium term.
 
Sales for the period included Mondi and MONY Group. We sold Mondi given our concerns on oversupply in the European paper and packaging industry which is putting pressure on pricing in an environment of subdued demand.  While MONY's short-term cash flows are unlikely to be impacted from agentic AI, we feel they could be over the medium term, which is likely to depress the valuation, hence we exited the position.
 
 
David Smith
Fund Manager
8 September 2026
 






INVESTMENT PORTFOLIO
 
Percentage breakdown of investments by sector




 


Total
30 June 2026
%


Total
31 December 2025
%




FIXED INTEREST


 








Preference shares


0.8


0.8




Other fixed interest


8.8


9.9








------


------




Total Fixed Interest


9.6


10.7








------


------




EQUITIES


 












 








Energy


 








Oil, gas and coal


6.4


5.2




 


------


------




Total Energy


6.4


5.2








------


------




Basic Materials


 








Chemicals


1.9


1.9




Industrial metals and mining


5.8


4.7








------


------




Total Basic Materials


7.7


6.6








------


------




Industrials


 








Aerospace and defence


2.4


2.6




Construction and materials


0.7


0.7




General industrials


2.0


1.7




Industrial engineering


1.0


0.9




Industrial support services


1.7


1.7








------


------




Total Industrials


7.8


7.6








------


------




Consumer Discretionary


 








Consumer services


1.4


1.4




Household goods and home construction


0.9


1.1




Retailers


2.1


2.4




Travel and leisure


1.0


1.2




 


------


------




Total Consumer Discretionary


5.4


6.1








------


------




Healthcare


 








Pharmaceuticals and biotechnology


4.2


3.6








------


------




Total Healthcare


4.2


3.6








------


------




Consumer Staples


 








Beverages


2.4


1.7




Food producers


2.3


2.1




Personal care, drug and grocery stores


5.0


6.3




Tobacco


8.0


8.0








------


------




Total Consumer Staples


17.7


18.1








------


------




  


 








Utilities


 








Gas, water and multi-utilities


5.1


5.7




 


------


------




Total Utilities


5.1


5.7




 


------


------




Financials


 








Banks


12.5


11.5




Closed end investments


1.5


1.3




Investment banking and brokerage services


5.7


6.7




Life insurance


5.7


6.0




Non-life insurance


2.3


2.0




 


------


------




Total Financials


27.7


27.5




 


------


------




Technology


 








Software and computer services


2.5


2.7




Technology hardware and equipment


0.9


0.7




 


------


------




Total Technology


3.4


3.4




 


------


------




Real Estate


 








Real estate investment trusts


4.0


3.9




 


------


------




Total Real Estate


4.0


3.9




 


------


------




Telecommunications 


 








Telecommunications providers             


1.0


1.6








------


------




Total Telecommunications 


1.0


1.6




 


--------


--------




Total Investments


100.0


100.0




 


=====


=====




 


 








           




TWENTY LARGEST INVESTMENTS




Company


Sector


Fair value
as at
30 June
2026
£'000


%
of portfolio
2026


Fair value
as at
31 December 2025
£'000


%
of portfolio
2025




British American Tobacco


Consumer Staples


22,777


5.5


20,502


5.1




HSBC


Financials


19,594


4.7


17,041


4.3




Lloyds Banking Group1


Financials


14,084


3.4


12,274


3.1




BP


Energy


13,554


3.3


8,759


2.2




Shell


Energy


12,783


3.1


11,943


3.0




NatWest1


Financials


12,744


3.0


11,943


3.0




Rio Tinto


Basic Materials


11,558


2.8


13,806


3.4




Standard Life2


Financials


10,742


2.6


9,509


2.4




RELX


Technology


10,603


2.6


8,198


2.1




Imperial Brands         


Consumer Staples


10,357


2.5


11,579


2.9




National Grid


Utilities


10,171


2.5


9,303


2.3




Aviva1


Financials


8,375


2.0


9,628


2.4




Reckitt Benckiser


Consumer Staples


8,293


2.0


9,810


2.4




M&G


Financials


7,369


1.8


7,310


1.8




GSK


Healthcare


6,956


1.7


5,914


1.5




Unilever


Consumer Staples


6,769


1.6


8,282


2.1




Diageo


Consumer Staples


6,366


1.5


6,705


1.7




Severn Trent


Utilities


6,005


1.5


7,361


1.8




Land Securities


Real Estate


5,948


1.4


5,005


1.3




Chesnara


Financials


5,909


1.4


6,340


1.6




 
Total






------------
210,957
=======


------------
50.9
=======


------------
201,212
=======


------------
50.4
=======












 


 












1 Combines equity and fixed interest positions where applicable


 












2 Formerly Phoenix
 


 
















 




 
EQUITY PORTFOLIO SECTOR EXPOSURE AS AT 30 JUNE 2026




 
 
 


Equity portfolio weight
%


FTSE All-Share Index
%


 




Financials


31.4


30.2


 




Consumer Staples


19.5


12.8


 




Industrials


9.6


12.2


 




Basic Materials


7.6


7.4


 




Energy


7.0


8.6


 




Consumer Discretionary


6.0


6.7


 




Utilities


5.3


4.5


 




Healthcare


4.6


12.1


 




Real Estate


4.4


2.1


 




Technology


3.5


2.3


 




Telecommunications


1.1


1.1


 




Total


--------
100.0
=====


--------
100.0
=====


 




Source: Janus Henderson


 






 




















Principal Risks and Uncertainties
The principal risks associated with the Company's business can be grouped into the following broad categories:
 




·     


Climate change risk




·     


Investment risk




·     


Market and financial risk




·     


Operational risk, including cyber risk, pandemic and epidemic risk, and risks relating to terrorism and international conflicts; and




·     


Tax, legal and regulatory risk










Further information on these risks, and how they are managed, is set out in the Company's Annual Report for the year ended 31 December 2025. The Board has undertaken a thorough review of the principal risks and considers that they have not changed materially during the six months under review. The Board therefore considers that these risks remain applicable for the remaining six months of the financial year.
 
Statement OF Directors' ResponsibilitIES
The Directors (listed in note 12) confirm that, to the best of their knowledge:
 




a)


the condensed set of financial statements has been prepared in accordance with FRS 104 Interim Financial Reporting issued by the Financial Reporting Council;
 




b)


the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
 




c)


the Interim Management Report and condensed financial statements include a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
 




 
On behalf of the Board
Jeremy Rigg
Chairman
8 September 2026
 









 


Condensed Statement of Comprehensive Income








 
















Half year ended
30 June 2026
(Unaudited)


Half year ended
30 June 2025
(Unaudited)


Year ended
31 December 2025
(Audited)








Revenue
return
£'000


Capital
return
£'000


Total
£'000


Revenue return
£'000


Capital return £'000


Total​

£'000


Revenue
return
£'000


Capital return
£'000


Total
£'000




Gains on investments held at fair value through profit or loss


-


11,054


11,054


-


25,536


25,536


-


43,613


43,613




Income from investments held at fair value through profit or loss


12,303


-


12,303


12,551


-


12,551


21,258


-


21,258




Other interest receivable and similar income


274


-


274


101


-


101


258


-


258








-----------


  ---------


---------


-----------


-----------


----------


-----------


-----------


-----------




Gross revenue and capital gains


12,577


11,054


23,631


12,652


25,536


38,188


21,516


43,613


65,129








-----------


-----------


---------


-----------


-----------


----------


-----------


-----------


-----------




 


 


 


 




























Management fees (note 2)


(308)


(461)


(769)


(322)


(482)


(804)


(639)


(959)


(1,598)




Other administrative expenses


(376)


-


(376)


(333)


-


(333)


(617)


-


(617)








-----------


-----------


---------


-----------


-----------


----------


-----------


-----------


-----------




Net return before finance costs and taxation
 


11,893
 


10,593
 


22,486
 


11,997
 


25,054
 


37,051
 


20,260
 


42,654
 


62,914
 




Finance costs


(353)


(1,061)


(1,414)


(360)


(1,080)


(1,440)


(710)


(2,131)


(2,841)








-----------


-----------


---------


-----------


-----------


----------


-----------


-----------


-----------




Net return before taxation


11,540


9,532


21,072


11,637


23,974


35,611


19,550


40,523


60,073




 


 


 


 




























Taxation on net return


(278)


218


(60)


(268)


240


(28)


(308)


261


(47)








-----------


-----------


---------


-----------


-----------


----------


-----------


-----------


-----------




Net return after taxation


11,262


9,750


21,012


11,369


24,214


35,583


19,242


40,784


60,026




 


-----------


-----------


---------


-----------


-----------


----------


-----------


-----------


-----------




Return per ordinary share (note 3)


6.64p


5.76p


12.40p


6.64p


14.13p


20.77p


11.28p


23.90p


35.18p




 


=======


======


=====


=======


======


=====


=======


======


======




 








































The total columns of this statement represent the Company's Income Statement, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.  
 
The Company has no other comprehensive income items recognised other than those disclosed in the Income Statement.
 
All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.
 
The accompanying notes are an integral part of the condensed financial statements




 
​



 


 


 






























Condensed Statement of Changes in Equity




 


 


 


 


 


 


 




Half year ended 30 June 2026 (Unaudited)


Called up
share capital
£'000


Share premium account
£'000


Capital

redemption

reserve

£'000


Other capital reserves
£'000


Revenue reserve
£'000


Total
£'000




At 1 January 2026


8,607


198,629


26,302


95,669


10,986


340,193




Net return after taxation


-


-


-


9,750


11,262


21,012




Fourth interim dividend (2.775p per share) for the year ended 31 December 2025, paid 30 January 2026


-


-


-


-


(4,704)


(4,704)




First interim dividend (2.775p per share) for the year ending 31 December 2026, paid 24 April 2026


-


-


-


-


(4,704)


(4,704)




Refund of unclaimed dividends


-


-


-


-


17


17




 


------------


------------


------------


------------


------------


------------




At 30 June 2026


8,607


198,629


26,302


105,419


12,857


351,814




 


=======


=======


=======


=======


=======


=======




 


 


 


 


 


 


 




Half year ended 30 June 2025 (Unaudited)


Called up
share capital
£'000


Share premium account
£'000


Capital

redemption

reserve

£'000


Other capital reserves
£'000


Revenue reserve
£'000


Total
£'000




At 1 January 2025


8,607


198,629


26,302


59,483


10,186


303,207




Net return after taxation


-


-


-


24,214


11,369


35,583




Buyback of shares for treasury


-


-


-


(2,428)


-


(2,428)




Fourth interim dividend (2.675p per share) for the year ended 31 December 2024, paid 31 January 2025


-


-


-


-


(4,605)


(4,605)




First interim dividend (2.675p per share) for the year ended 31 December 2025, paid 25 April 2025


-


-


-


-


(4,570)


(4,570)




Refund of unclaimed dividends


-


-


-


-


19


19








------------


------------


------------


------------


------------


------------




At 30 June 2025


8,607


198,629


26,302


81,269


12,399


327,206








=======


=======


=======


=======


=======


=======




 


 


 


 


 


 


 




Year-ended 31 December 2025 (Audited)


Called up
share capital
£'000


Share premium account
£'000


Capital

redemption

reserve

£'000


Other capital reserves
£'000


Revenue reserve
£'000


Total
£'000




At 1 January 2025


8,607


198,629


26,302


59,483


10,186


303,207




Net return after taxation


-


-


-


40,784


19,242


60,026




Buyback of shares for treasury


-


-


-


(4,598)


-


(4,598)




Fourth interim dividend (2.675p per share) for the year ended 31 December 2024, paid 31 January 2025


-


-


-


-


(4,605)


(4,605)




First interim dividend (2.675p per share) for the year ended 31 December 2025, paid 25 April 2025


-


-


-


-


(4,571)


(4,571)




Second interim dividend (2.675p per share) for the year ended 31 December 2025, paid 25 July 2025


-


-


-


-


(4,566)


(4,566)




Third interim dividend (2.775p per share) for the year ended 31 December 2025, paid 24 October 2025


-


-


-


-


(4,720)


(4,720)




Refund of unclaimed dividends


-


-


-


-


20


20




 


------------


------------


------------


------------


------------


------------




At 31 December 2025


8,607


198,629


26,302


95,669


10,986


340,193








=======


=======


=======


=======


=======


=======




























 




The accompanying notes are an integral part of the condensed financial statements.






















Condensed STATEMENT OF FINANCIAL POSITION
 








30 June 2026
 (Unaudited)
£'000


30 June 2025
(Unaudited)
£'000


31 December 2025
(Audited)
£'000




Non-current assets


 






 




Investments held at fair value through profit or loss (note 4)


414,769


386,901


399,867








------------


------------


------------




Current assets


 












Debtors


3,122


2,942


2,329




Cash at bank and in hand


6,553


4,390


3,746








------------


------------


------------








9,675


7,332


6,075








------------


------------


------------




Creditors: amounts falling due within one year


(52,736)


(47,143)


(45,860)








------------


------------


------------




Net current liabilities


(43,061)


(39,811)


(39,785)








------------


------------


------------




Creditors: amounts falling due after more than one year


(19,894)


(19,884)


(19,889)








------------


------------


------------




Net assets


351,814


327,206


340,193




 


=======


=======


=======




Capital and reserves


 












Called up share capital (note 6)


8,607


8,607


8,607




Share premium account


198,629


198,629


198,629




Capital redemption reserve


26,302


26,302


26,302




Other capital reserves


105,419


81,269


95,669




Revenue reserve


12,857


12,399


10,986




 


------------


------------


------------




Total shareholders' funds


351,814


327,206


340,193




 


=======


=======


=======




Net asset value per ordinary share (note 5)


207.54p


191.68p


200.68p




 


=======


=======


=======




 
















The accompanying notes are an integral part of the condensed financial statements.








 


Condensed Statement of Cash Flows








Half year ended
30 June 2026
(Unaudited)
£'000


Half year ended
30 June 2025
(Unaudited)
£'000


 
Year-ended
31 December 2025
(Audited)
£'000




Cash flows from operating activities


 












Net return before taxation


21,072


               35,611


60,073




Add back: finance costs


1,414


             1,440


2,841




Less: gains on investments held at fair value through profit or loss


(11,054)


               (25,536)


(43,613)




Withholding tax on dividends deducted at source


(60)


                 (28)


(47)




Increase in debtors


(793)


                (619)


(6)




Increase in creditors


276


                172


9








--------------


--------------


--------------




Net cash inflow from operating activities


10,855


11,040


19,257








--------------


--------------


--------------




Cash flows from investing activities


 












Sales of investments held at fair value through profit or loss


49,300  


           37,799  


79,649




Purchases of investments held at fair value through profit or loss


(53,061)


(32,430)


(68,895)




 


--------------


--------------


--------------




Net cash (outflow)/inflow from investing activities


(3,761)


            5,369


10,754








--------------


--------------


--------------




Cash flows from financing activities


 












Share buybacks for treasury


-


(2,428)


(4,598)




Equity dividends paid (net of refund of unclaimed distributions)


(9,391)


            (9,156)  


(18,442)




Drawdown of loans


6,826


-


-




Repayment of loans


-


       (1,622)


(3,035)




Interest paid


(1,409)


(1,435)


(2,831)




 


--------------


--------------


--------------




Net cash outflow from financing activities


(3,974)


(14,641)


(28,906)




 


--------------


--------------


--------------




Net increase in cash and cash equivalents


3,120


              1,768


1,105




Cash and cash equivalents at beginning of period


3,746


            2,493


2,493




Exchange movements


(313)


                129


148








--------------


--------------


--------------




Cash and cash equivalents at end of period


6,553


             4,390


3,746




Comprising:


--------------


--------------


--------------




Cash at bank


6,553


             4,390


3,746




 


========


========


========














The accompanying notes are an integral part of the condensed financial statements.












 












 






NOTES TO THE CONDENSED FINANCIAL STATEMENTS
 
1. Accounting policies: basis of accounting
The Company is a registered investment company as defined in section 833 of the Companies Act 2006 and operates as an investment trust in accordance with section 1158 of the Corporation Tax Act 2010.
 
The condensed financial statements have been prepared in accordance with FRS 104 Interim Financial Reporting, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts, which was updated by the Association of Investment Companies in December 2025.
 
The accounting policies applied during the period are consistent with those set out in the Annual Report for the year ended 31 December 2025. The condensed financial statements have not been audited or reviewed by the Company's auditor.
 
2. Management fees
Management fees are charged in accordance with the terms of the management agreement which are set out in the Company's Annual Report for the year-ended 31 December 2025. With effect from 1 January 2026, the management fee is charged at 0.45% of net assets payable quarterly, based on the level of net assets at the relevant quarter end.
 
3. Revenue return per ordinary share
The revenue return per ordinary share is based on the following figures:
 


 












Half year ended
30 June 2026 (Unaudited)
£'000






Half year ended
30 June 2025 (Unaudited)
£'000






Year ended
31 December 2025
(Audited)
£'000




Net revenue return






11,262






11,369






19,242




Net capital return






9,750






24,214






40,784




Total return






21,012






35,583






60,026




Weighted average number of ordinary shares






169,519,008


 


171,308,995






170,626,901




 
 






Pence






 
Pence






 
Pence




Revenue return per ordinary share






6.64






6.64






11.28




Capital return per ordinary share






5.76






14.13






23.90




Total return per ordinary share






12.40






20.77






35.18














 




The Company does not have any dilutive securities therefore the basic and diluted returns per share are the same.
 
4. Fair values of financial assets and financial liabilities
The fair values of the financial assets and liabilities are either carried in the Statement of Financial Position at their fair value (investments and derivatives), or the statement of financial position amount is a reasonable approximation of fair value (due from brokers, dividends, and interest receivable, due to brokers, accruals, cash at bank, bank overdrafts and amounts due under the multi-currency loan facility). The senior unsecured note is held in the Statement of Financial Position at amortised cost in line with the Company's accounting policies.
 
Categorisation within the fair value hierarchy for those assets and liabilities held at fair value in the Statement of Financial Position has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset:
 
·      Level 1: the unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
·      Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1.
·      Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data.
   


 




Financial assets and financial liabilities at fair value through profit or loss at 30 June 2026


Level 1
£'000


Level 2
£'000


Level 3
£'000


Total
£'000




Equity investments


374,894


 -


 -


374,894




Fixed interest investments:


 


 


 


 




- Preference shares


3,187


 -


 -


3,187




- Other


36,688


 -


 -


36,688




- Options


-


(281)


-


(281)




Total


414,769


(281)


 -


414,488




 
 




















Financial assets and financial liabilities at fair value through profit or loss at 30 June 2025


Level 1
£'000


Level 2
£'000


Level 3
£'000


Total
£'000




Equity investments


349,726


 -


 -


349,726




Fixed interest investments:




















- Preference shares


3,269


 -


 -


3,269




- Other


33,906


 -


 -


33,906




- Options


-


(60)


-


(60)




Total


386,901


(60)


 -


386,841


























 
Financial assets at fair value through profit or loss
at 31 December 2025


Level 1
£'000


Level 2
£'000


Level 3
£'000


Total
£'000




Equity investments


357,142


-


-


357,142




Fixed interest investments:




















- Preference shares


3,253


-


-


3,253




- Other


39,472


-


-


39,472




Total


399,867


-


-


399,867












 




The Company's holdings in options are included within Level 2 and are included in creditors amounts falling due within one year in the Statement of Financial Position. 
 
Premiums from written options during the half year ended 30 June 2026 were £238,000 (half year ended 30 June 2025: £160,000; year-ended 31 December 2025: £160,000).
 
At 30 June 2026 the fair value of the senior unsecured note has been estimated to be £18,328,000 (30 June 2025: £18,066,000; 31 December 2025: £18,394,000) and would be categorised as Level 3 in the fair value hierarchy.
 
The current estimated fair value of the senior unsecured note is calculated using a discount rate based on the redemption yield of the relevant existing reference UK Gilt plus a suitable estimated credit spread. The estimated credit spread is based on the spread between the yield of the ICE BofA 5-10 Year A Sterling Non-Gilt Index and the redemption yield of the ICE BofA 5-10 Year UK Gilt Index. The discount rate is calculated and updated at each month end and applied daily to determine the Company's published fair value NAVs.


 








 




5. Net asset value per ordinary share


 




The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £351,814,000 (half year ended 30 June 2025: £327,206,000; year ended 31 December 2025: £340,193,000) and on the 169,519,008 ordinary shares in issue (excluding treasury shares) at 30 June 2026 (30 June 2025: 170,705,636; 31 December 2025: 169,519,008).


 








 




6. Share capital


 




At 1 January 2026, there were 172,141,700 ordinary shares of 5p each in issue, of which 2,622,692 were held in treasury. No shares were bought back during the six months under review and, accordingly, the number of ordinary shares in issue at 30 June 2026 remained 172,141,700, including 2,622,692 shares held in treasury.
 
Between 1 July 2026 and 4 September 2026, being the latest practicable date prior to publication, no further shares were bought back. Accordingly, as at 4 September 2026, the Company had 172,141,700 ordinary shares in issue, of which 2,622,692 were held in treasury. Total voting rights in the Company at that date were therefore 169,519,008.


 




                                                             


 




7. Dividends


 




The Company pays dividends quarterly. In respect of the year ended 31 December 2025, a fourth interim dividend of 2.775p per share (2024: 2.675p) was paid on 30 January 2026 to shareholders on the register at the close of business on 12 December 2025. In respect of the year ending 31 December 2026, a first interim dividend of 2.775p per share (2025: 2.675p) was paid on 24 April 2026 to shareholders on the register at the close of business on 7 April 2026. These dividends are reflected in the half year financial statements.
 
A second interim dividend of 2.775p per share (2025: 2.675p) for the year ending 31 December 2026 was paid on

24 July 2026 to shareholders on the register at the close of business on 12 June 2026. A third interim dividend of 2.8p per share (2025: 2.775p) for the year ending 31 December 2026 will be paid on 30 October 2026 to shareholders on the register at the close of business on 11 September 2026. The shares will be quoted ex-dividend on 10 September 2026. In accordance with FRS 102, the second and third interim dividends have not been accrued in the half year financial statements as they will be paid after the period end.
 


 




8. Net debt reconciliation


 


 












 


Cash

and cash

equivalents

£'000


Bank loans repayable within one year
£'000


 
 
Other debt repayable after more
than one year
£'000


Total
£'000




Net debt as at 1 January 2026


3,746


(44,892)


(19,889)


(61,035)




Cash flows


3,120


(6,826)


-


(3,706)




Exchange movements


(313)


258


-


(55)




Non cash flow:


 


 


 


 




Effective interest movements


-


-


(5)


(5)




Net debt as at 30 June 2026


6,553


(51,460)


(19,894)


(64,801)




 




















 


Cash

and cash

equivalents

£'000


Bank loans repayable within one year
£'000


Other debt repayable
after more
than one year
£'000


Total
£'000




Net debt as at 1 January 2025


2,493


(47,561)


(19,879)


(64,947)




Cash flows


1,768


1,622


-


3,390




Exchange movements


129


159


-


288




Non cash flow:




















Effective interest movements


-


-


(5)


(5)




Net debt as at 30 June 2025


4,390


(45,780)


(19,884)


(61,274)




 




















 


Cash

and cash

equivalents

£'000


Bank loans repayable within one year
£'000


Other debt repayable
after more
than one year
£'000


Total
£'000




Net debt as at 1 January 2025


2,493


(47,561)


(19,879)


(64,947)




Cash flows


1,105


3,035


-


4,140




Exchange movements


148


(366)


-


(218)




Non cash flow:




















Effective interest movements


-


-


(10)


(10)




Net debt as at 31 December 2025


3,746


(44,892)


(19,889)


(61,035)


























9. Going concern
The Directors have considered the Company's financial position, including the liquidity of its investment portfolio, its cash flow forecasts and its ability to comply with its borrowing covenants, with regard to the headroom available under the most restrictive covenants. The Directors have also considered the potential impact of elevated interest rates on the broader financial system and the continuing wider ramifications of geopolitical conflicts.
 
The Directors are satisfied that the Company's portfolio consists predominantly of readily realisable securities and that the Company has adequate resources to meet its financial obligations, including the repayment of borrowings as they fall due, for a period of at least 12 months from the date of approval of these half-year results. Having also taken account of the principal risks and uncertainties, the Board therefore considers it appropriate for the condensed financial statements to be prepared on a going concern basis.
 
The Company's shareholders are asked every five years to vote on the continuation of the Company. An ordinary resolution approving the continuation of the Company was passed by shareholders at the annual general meeting held on 13 May 2025.
 


 




10. Related party transactions
The Company's related parties are its Directors and Janus Henderson. There were no material transactions between the Company and its Directors during the period. Amounts paid to the Directors related only to expenses and remuneration, and there were no amounts outstanding at the period end.
 
In respect of services provided by Janus Henderson, other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there were no material transactions with Janus Henderson that affected the financial position of the Company during the period under review.
 


 




11. Half Year Report
The Half Year Report for the six months ended 30 June 2026 will shortly be available on the Company's website at www.hendersonhighincome.com. An abridged extract from the Half Year Report, the 'Update', will also be available shortly on the Company's website and copies will be sent to shareholders in September 2026. Both documents will also be available from the Corporate Secretary at the Company's registered office, 201 Bishopsgate, London, EC2M 3AE. The Update will be submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
 
12. General information
a) Company Status
The Company is a UK domiciled investment trust company with registered number 02422514.
 
SEDOL/ISIN number: 0958057/GB0009580571
London Stock Exchange (TIDM) code: HHI
Global Intermediary Identification Number (GIIN): JBA08I.99999.SL.826
Legal Entity Identifier (LEI): 213800OEXAGFSF7Y6G11
 
b) Directors, Corporate Secretary and Registered Office
The Directors of the Company are Jeremy Rigg (Chairman), Jonathan Silver (Chairman of the Audit & Risk Committee), Francesca Ecsery (Senior Independent Director), Richard Cranfield and Preeti Rathi. The Corporate Secretary is Janus Henderson Secretarial Services UK Limited and the Company's registered office is 201 Bishopsgate, London EC2M 3AE.
 
c) Website
Information on the Company, including its share price and net asset value, monthly factsheets and data, announcements, reports and details of general meetings, is available at www.hendersonhighincome.com.


 




 
For further information please contact:
 








David Smith
Fund Manager
Janus Henderson Investors
Telephone: 020 7818 4443
 
Harriet Hall
PR Director, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
 


Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 1818
 














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) are incorporated into, or form part of, this announcement.




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