REG - Henderson HighIncome - Final Results
27/03/2025 07:15
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RNS Number : 3900C Henderson High Income Trust PLC 27 March 2025
LEGAL ENTITY IDENTIFIER: 213800OEXAGFSF7Y6G11
HENDERSON HIGH INCOME TRUST PLC
Financial results for the year ended 31 December 2024
This announcement contains regulated information
PERFORMANCE HIGHLIGHTS
Total return performance to 31 December One year % Five years %
Benchmark(1) 7.9 20.6
NAV(2) 9.4 25.1
Share price(3) 10.8 16.5
FINANCIAL HIGHLIGHTS
2024 2023
NAV per share(4,7) 174.72p 169.58p
Mid-market price per share 162.50p 156.50p
Revenue return per share 10.74p 10.39p
Net assets £303.2m £222.3m
Dividend for the year 10.60p 10.35p
Dividend yield(5,7) 6.5% 6.6%
Ongoing charge for the year(6,7) 0.74% 0.86%
Gearing(7) 21.0% 21.4%
(1) 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
(2) Net asset value with debt at fair value per ordinary share total return
(including dividends reinvested and excluding transaction costs)
(3) Includes dividends reinvested
(4) Net asset value with debt at fair value as published by the Association of
Investment Companies (AIC)
(5) Based on the dividends paid or announced for the year and the share price at
the year-end
(6) Calculated using the methodology prescribed by the AIC
(7) Alternative Performance Measure, see pages 83 to 84 in the Annual Report
Sources: Morningstar Direct, Janus Henderson.
All data is either as at 31 December 2024 or for the year-ended 31 December
2024.
CHAIRMAN'S STATEMENT
Performance
I am pleased to be reporting on a positive year of investment performance for
Henderson High Income Trust. In 2024, the Company's Net Asset Value (NAV)
total return was +9.4% compared with the benchmark return of +7.9%,
outperformance of +1.5%. The Company's share price total return was a little
higher at +10.8% with the share price ending the year at a discount of 7.0% to
NAV, compared with the average discount for the UK equity income sector of
5.6% at the end of 2024.
The year was characterised by continuing volatility in financial markets,
ongoing geopolitical turmoil and of course the outcome of both the UK general
election in July and the US Presidential Election in November. Global
inflationary pressures abated as the year progressed which enabled policy
makers to lower interest rates and provide a boost to financial asset
valuations. Overall equity returns were better than bond returns although from
a geographical perspective the returns from UK equities were lower than those
from the US.
The Company's outperformance during 2024 versus the benchmark (80% FTSE
All-Share Index, 20% ICE BofA Sterling Non-Gilts Index) was mainly due to
asset allocation, gearing and a good relative return from the fixed interest
portfolio.
Dividends
The Company's investment objective is to provide investors with a high
dividend income stream while also maintaining the prospect of capital growth.
In 2024, company dividend payouts remained robust given the strength of
corporate balance sheets and healthy ongoing profitability. I am pleased to
report that the Company's overall earnings during the year were sufficient to
cover the full year dividend and a small amount was added to the revenue
reserves. At the year-end reserves were sufficient to cover approximately six
months of the full year dividend.
During 2024 the Board recommended the payment of dividends totalling 10.6
pence per share, an increase of 2.4% over the payment in 2023. This increase
represented the 12(th) consecutive year of dividend growth from the Company.
As usual the Board focused carefully on the revenue projections provided by
the Fund Manager throughout the year and as we look forward the Board remains
confident that the Company's portfolio will be able to generate a continuing
high level of income for shareholders.
Gearing
The Company's policy on gearing is provided on page 23 of the Annual Report.
Given higher interest rates and the increased cost of borrowing, the Board
spent a good deal of time during the year discussing and evaluating with the
Fund Manager the appropriate level of gearing to reflect the increased cost
burden whilst ensuring that the overall capital structure could continue to
deliver the required levels of income.
During 2024 the overall level of gearing remained in line with the level
prevailing at the end of 2023 although the absolute level of borrowings
increased due to the growth in the Company's size following the combination
with Henderson Diversified Income Trust plc in January 2024 (see below). As a
percentage of net assets, gearing finished the year at 21.0% which was a
little lower than the level at the start of 2024, and gearing is expected to
remain around this level in the near term.
Overall, asset allocation saw the Company continue to prefer equities over
fixed interest investments with approximately 89% in equities and 11% in bonds
at the year end (compared with the benchmark of 80% equities/20% bonds).
In December 2024 the Company renewed its loan facility of up to £85 million
with BNP Paribas, London Branch. The facility has a duration of 12 months and
the terms on which the facility was renewed remain competitive.
Combination with Henderson Diversified Income Trust plc (HDIV)
As previously reported the Company was able to issue some £72.1 million of
new shares in January 2024 to shareholders in HDIV. The increase in size of
the Company will help to improve the liquidity and marketability in the
Company's shares and help to spread the Company's fixed costs across a larger
shareholder base which is in the interests of all our shareholders.
In this respect I am pleased to say that the ongoing charge ratio for 2024
reflects the benefits of the Company's larger size at 0.74% versus the ongoing
charge of 0.86% in 2023.
Continuation Vote
The Company's Articles of Association provide that shareholders should have
the opportunity every fifth year to vote on whether they wish to continue the
life of the Company or to wind it up. Shareholders will, therefore, be asked
to vote on this at the forthcoming AGM, as an ordinary resolution, which
requires a majority vote in favour to pass. The Board strongly recommends that
you vote in favour so the Company can continue its objective of providing a
regular high level of income while maintaining the prospect of capital growth
over time. If the resolution fails to pass, the Board would be required to
wind up the Company. If you are in any doubt as to what action you should
take, please consult your financial advisor. The Directors will be voting
their own holdings in favour and encourage all other shareholders to do the
same.
Management Fee Arrangements
The Board regularly reviews the fee arrangements with the Company's Fund
Manager to ensure that they remain competitive, particularly in the context of
fees payable by similar UK equity income focused trusts.
In this respect the Company has agreed with the Manager that the fee scale
will be lowered to a flat 0.45% of average adjusted gross assets per annum
(previously 0.5% on the first £325 million of assets, 0.45% on assets above
£325 million). The amended fee scale will apply from 1 January 2025.
Share buybacks
During the course of 2024 the Board regularly reviewed the Company's share
price discount to NAV, particularly in the context of discounts prevailing
across the wider UK equity income sector. The Company's discount at the start
of 2024 was 7.7% and finished the year at 7.0%, compared with the average
discount at the end of 2024 of 5.6% for the UK equity income sector. During
the course of the year the discount widened, then narrowed in as the year drew
to a close, but in the early part of 2025 had widened out again. In line with
other trusts in the sector the Board has commenced buying back shares and as
at 24 March 2025 the Company has purchased 960,130 shares representing 0.56%
of the issued share capital. The shares will be held in treasury. The Board
will continue to monitor closely the prevailing discount to NAV and the
Company will continue to buy back shares if in the opinion of the Board it is
appropriate to do so in the best interests of shareholders.
The Board
Zoe King will be retiring as a Director in May at the conclusion of the
Company's AGM. Zoe joined the Board in April 2016 and has served as the Senior
Independent Director since June 2020. During that time the Company has
undertaken two successful corporate transactions with Threadneedle UK Select
in 2017 and the recent HDIV combination in 2024 and of course has negotiated
the challenging COVID period. On behalf of shareholders and directors past and
present I would like to thank Zoe for her commitment, diligence and wise
counsel during her tenure and we wish her well in her future endeavours.
Francesca Ecsery who joined the Board in December 2022 will become the Senior
Independent Director and Chairman of the Nominations and Remuneration
Committee on Zoe's departure.
At the end of 2024 the Company welcomed Preeti Rathi as a Director. Preeti has
15 years' experience in wealth management as an Investment
Director/Discretionary Portfolio Manager with Bank of America Merrill Lynch,
Kleinwort Benson Private Bank and Investec Wealth & Investment across a
broad range of asset classes. Her appointment will ensure that the Board
retains the right balance of skills and expertise to successfully administer
the Company's business.
Responsible investing
Responsible investing relates to how environmental, social and corporate
governance (ESG) factors impact a company over the long term. Analysis of
the resilience of a business and its profits has always been at the core of
the Company's investment strategy, and ESG factors are integrated into the
investment processes employed by the Fund Manager.
The Board believes that voting the Company's shareholdings at general meetings
is essential to good corporate stewardship and is an effective means of
expressing its views on the policies and practices of its investee companies.
Voting decisions reflect the provisions of Janus Henderson's Responsibility
Report and Responsible Investing Policy which are publicly available
at www.janushenderson.com (http://www.janushenderson.com/) and records the
high standards of corporate behaviour that are expected. Ultimately, however,
our Fund Manager makes the final decision after consultation with the Board,
as necessary.
Janus Henderson will actively engage with those companies that fall below such
expectations to encourage improvement over time. The final sanction is the
divestment of those holdings that fail to make an acceptable transition and
adapt sufficiently. The Board monitors the process by reviewing a report on
the Company's voting pattern on an annual basis.
For an overview on how Janus Henderson engaged with companies in which the
Company is invested, please refer to the ESG Section in the Annual Report.
AGM
We look forward to seeing as many of our shareholders as possible at our AGM
which will be held at 12 noon on Tuesday, 13 May 2025 at the offices of Janus
Henderson at 201 Bishopsgate, London EC2M 3AE.
David Smith, the Company's Fund Manager, will give a presentation on the
Company's portfolio and performance, and you will, as usual, have the
opportunity to talk to the Board, David and other Janus Henderson
representatives. We very much welcome your comments and questions at the AGM
and we would encourage those of you who are unable to attend in person to use
your proxy votes and to watch the AGM live by logging onto
www.janushenderson.com/hhi-agm (https://www.janushenderson.com/hhi-agm) .
Prospects and outlook
As we entered 2025 with continuing volatility in financial markets, the
re-election of President Trump to the White House has provided a rather
unpredictable backdrop to the global economy. In particular, the widespread
imposition of tariffs on America's trading partners has caused inflation and
interest rate expectations to remain higher with a potentially negative impact
on global economic activity and there has been a significant financial impact
across Europe from the decision to substantially increase defence spending
commitments in light of the situation in Ukraine.
Closer to home in the UK, the growth mantra of the recently elected Labour
government appears at odds with the substantial tax increase for the corporate
sector announced in the Budget, and the cost of government borrowing has
increased as investors worry about higher debt levels to fund investment and
spending amid a further decline in productivity. The Bank of England has
continued to trim interest rates in the early part of 2025 to support the
economy as growth prospects have been lowered but they will have to tread a
fine line between lowering interest rates further and keeping inflationary
pressures under control.
Whilst the backdrop remains challenging, there is some good news for UK listed
companies which retain healthy balance sheets and many are buying back their
own shares, highlighting the relatively attractive valuation of UK companies
versus their overseas peers. It is also important to remember that quoted UK
companies derive a substantial proportion of their earnings from overseas
activities providing good protection against the risk of weaker UK activity.
Within the Company's portfolio, there continues to be a good balance between
larger companies with more international exposure and attractively valued
smaller and medium sized companies where our Fund Manager believes the share
prices are reflecting too pessimistic a view of future prospects.
Overall, and as usual, the Board and the Company's Fund Manager remain
steadfast in the commitment and objective of continuing to deliver the high
level of income required by shareholders whilst also mindful of the longer
term target of delivering capital growth.
Jeremy Rigg
Chairman
26 March 2025
Fund Manager's Report
Market review
The UK equity market made positive gains during the year, with the FTSE
All-Share Index increasing by 9.5% on a total return basis. Easing inflation
prompted major central banks, including the Bank of England (BoE), to reduce
interest rates globally. The BoE cut UK interest rates by 25 basis points in
both August and November to end the year at 4.75%.
The equity market gains were skewed to the first half of the year as UK
economic growth generally proved better than expected. However, the negative
rhetoric over the state of the country's finances the new Labour government
had inherited, post July's General Election, saw markets consolidate in the
second half of the year. Domestic companies were also impacted by the large
tax increases announced by the new Chancellor in her first Budget. Businesses
will be expected to fund a significant portion of the bill given the rise in
employer National Insurance contributions, although the government also
unveiled plans for a large rise in investment spending. Consumer and business
confidence fell towards the end of the year while UK economic growth weakened
with almost no growth in the second half of the year.
Larger companies outperformed medium sized businesses with the FTSE 100 Index
returning +9.7% versus the more domestic orientated FTSE 250 Index's return of
+8.1%. The best performing sectors were financials (led by banks), consumer
staples and industrials, while energy, basic materials and real estate
underperformed. While the consumer discretionary sector outperformed there was
a large dispersion of performances, with travel and media companies performing
well but the more interest rate sensitive sectors, such as retail and
housebuilders, underperforming.
Government bonds were weak during the year as initially investors pared back
their expectations over interest rate cuts as inflation, albeit falling,
generally remained above central bank targets. Bond yields rose significantly
in the fourth quarter globally, led by the US given fears over inflation from
some of president-elect Donald Trump's proposed policies. The move in the UK
was further exacerbated by the scale of government spending revealed in the
Budget, along with concerns over the impact on inflation from tax hikes,
increases to the minimum wage and further falls in productivity. The UK
10-year gilt yield rose from 3.6% at the start of the year to reach 4.6% at
the end of December. Credit spreads tightened during the year which helped
corporate bonds, both investment grade and high yield bonds, post positive
returns and outperform government bonds.
Performance review
The Company's NAV (debt at fair value) returned 9.4% on a total return basis,
outperforming the benchmark's gain of 7.9%. Given the Company's overweight
position to equities relative to bonds against the benchmark, asset allocation
had a positive impact on performance due to equities outperforming. Gearing
also aided performance given the positive market backdrop.
The equity portfolio gained 8.7% on a total return basis during the year,
behind the 9.5% return from the FTSE All-Share Index. Within financials, the
portfolio's holdings in NatWest, 3i and Intermediate Capital were positive for
performance. NatWest delivered strong profit growth in the period benefitting
from higher interest rates in the UK and stronger margins given the benign
competitive environment, especially within savings and mortgage products. The
company's robust capital position and strong cash flow also led to good
dividend growth and a directed buyback which significantly reduced the
government stake. Private equity group 3i has been a very strong performer for
the Company over the longer term, driven by the success of its portfolio
holding Action, the European discount retailer. Last year was another good
year for the business given the strong profit growth delivered. Alternative
asset manager Intermediate Capital, which specialises in private credit
markets, performed well over the year as new fund raisings for its strategies
beat expectations.
Within the consumer staples sector, the portfolio's positions in tobacco
companies, Imperial Brands and British American Tobacco, and soft drink
manufacturer Britvic were positive for performance. Both Imperial Brands and
British American Tobacco benefitted in the period from delivering resilient
earnings but also buying back their own shares at very attractive valuations.
Britvic produced strong results in the period and then was subject to a bid
approach from Carlsberg, as it looked to diversify away from beer and
consolidate its European Pepsi bottling operations.
On the negative side the portfolio's holdings in Burberry, PageGroup and MONY
Group (owner of MoneySuperMarket.com) detracted from returns. Burberry's
profits were significantly impacted from a slowdown in luxury goods demand and
a failed strategy to elevate the brand. While it was the correct decision for
the company to change strategy and Chief Executive Officer, the turnaround is
likely to be protracted and with the suspension of the dividend we decided to
exit the holding. Recruiter PageGroup was weak during the year as profits came
under pressure from a lacklustre global employment market with low candidate
confidence impacting job turnover. MONY Group's share price was weak as
investors feared that an easing in insurance premium price inflation would
lead to fewer consumers switching their insurance providers. Elsewhere, not
holding Rolls-Royce was detrimental to relative performance. Rolls-Royce is a
large constituent of the benchmark and performed strongly in 2024 meaning not
holding the company, due to the lack of a dividend, contributed negatively to
relative performance against the benchmark.
The fixed income portfolio rose 6.7% on a total return basis during the year,
outperforming the 1.7% return from the ICE BofA Sterling Non-Gilts Index. The
portfolio's exposure to short duration bonds aided relative performance given
these bonds are typically less vulnerable to rising bond yields. Also, the
holdings in high yield bonds aided returns given spreads in this area of the
bond market tightened significantly as global economic growth improved. In
particular, holdings in bonds issued by Bupa, Center Parcs, the Co-op and
Ziggo were positive, while bonds in Direct Line rose significantly after the
bid approach from Aviva.
Income review
On an underlying basis, UK market dividends fell 0.4% in 2024 (according to
the Computershare UK Dividend Monitor) driven by reductions in dividends from
the mining sector as commodity prices fell during the year. Dividend growth
excluding this sector was 4.0%, supported by good dividend increases from
banks, insurers and food retailers.
The income return for the Company increased 3.4% to 10.74 pence per share in
2024, up from 10.39 pence in 2023. Within the equity portfolio there was good
dividend growth from some of the largest holdings including 3i (+15.6%), HSBC
(+15.1%), Tesco (+14.7%) and NatWest (+12.9%). Along with the miners, the
portfolio experienced dividend cuts from holdings in the utilities sector:
National Grid rebased its dividend lower as part of its equity raise to fund
future investment, while SSE also reduced its dividend during the year to
support higher capital investment, albeit this had been well flagged to the
market.
There has been a trend over the last couple of years for UK companies to
return excess cash to shareholders via share buybacks, a recognition by
management teams of the attractive valuations of their companies' shares. This
has generally come at the expense of special dividends, hence, income earned
from specials for the Company was relatively low versus previous years. The
portfolio in total earned £347,000 in special dividends with payments from
Dunelm, B&M and Sabre.
During the year the Board declared a full year dividend of 10.6p which was
fully covered by earnings. This was an increase of 2.4% over the dividend in
2023 (10.35p) and represents the 12(th) consecutive year of dividend growth,
maintaining the Company's status as an AIC Next Generation Dividend Hero. The
dividend has grown at a compound annual growth rate of 2.1% over those 12
years. Revenue reserves as at 31 December 2024 were £10.2 million, providing
approximately 56% cover over the Company's dividend.
Portfolio activity
At the start of the year the Company completed the proposed combination with
Henderson Diversified Income Trust plc (HDIV). The £72.1 million of new
assets taken on as part of the transaction were invested in line with the
existing portfolio.
Gearing at the end of December was 21.0%, down slightly from the end of 2023
(21.4%). The bond portfolio was reduced by approximately £2 million through
the year. Although all-in-yields remain attractive, credit spreads have
tightened to historically low levels. New positions were initiated in both
investment grade and high yield bonds but in typically higher quality,
non-cyclical businesses such as Iliad (European telecommunications), Aviva and
Teva Pharmaceuticals. Funding came from the sale of the short-dated US
Treasury bond the Company held ahead of its maturity. Holdings in bonds issued
by EDF (French utility) and Centene (US healthcare) were also sold. The bond
portfolio represented 10.7% and 13.1% of gross and net assets respectively as
at the end of December.
New positions were initiated in the portfolio in Reckitt Benckiser, Aviva and
Tele2. Reckitt Benckiser is a global household goods and personal care
business which has market leading brands in attractive categories. The new
strategy to divest lower growth businesses to become more focused on its core
faster growing products is sensible. Also, while there continues to be
uncertainties around litigation in its instant milk formula division, we
believe these are more than discounted in the current valuation. After a
period of restructuring, Aviva is now a much simpler business with good market
positions in its core operations in the UK and Canada. It is well diversified
across both life and general insurance and generates good cash flow. Tele2 is
the no.2 telecommunications operator in Sweden, with mobile and fixed
networks, and is the market leading mobile operator in the Baltic
countries. These regions should be able to generate stable growth, while
continued cost savings and peaking capex is likely to lead to stronger cash
generation which supports an attractive dividend yield.
Within the aerospace and defence sector, new positions were established in BAE
Systems and Chemring towards the end of the year. Although there is a
potential for a ceasefire in Ukraine, given rising geopolitical tensions
governments across the world are likely to increase defence spending over the
longer term, which should underpin future profit growth for the sector. BAE is
well-diversified both globally and across product platforms. The valuation is
attractive given the strong organic growth potential, high visibility on
earnings given the size of the order backlog, and good cash flow generation.
Chemring has strong market positions in specialised niche areas of defence.
The company is split into two divisions: Countermeasures and Energetics, which
manufactures products such as explosive materials and missile parts, and
Sensors and Information, which develops technologies that detect threats
whether explosive, biological, chemical, radio or cyber.
Within the retail sector we switched our holding in B&M European Value
Retail into Dunelm at the beginning of the year. This was due to concerns that
B&M was being run too aggressively to maintain its low pricing in a
competitive space. Dunelm is the UK's leading homewares retailer in a
fragmented market where it continues to invest to improve efficiencies and
product offering. The broadening out of its product range into new categories
and price points, while still offering value for money to customers, should
drive further profitable growth. The company also has a robust balance sheet
and high free cash flow that supports attractive dividends.
Elsewhere the holdings in overseas companies Woodside Energy and E.ON were
also sold. With the Liquefied Natural Gas (LNG) market likely to be in surplus
over the next couple of years as new supply comes on stream, we took the
decision to exit our holding in Woodside given 50% of the business is exposed
to LNG. Also, the management team has significantly increased the capex
guidance and recently bid for peer Santos. Although the proposed acquisition
was ultimately dropped it highlighted that cash returns to shareholders were
likely to be less of a priority going forward. E.ON had performed well last
year and re-rated to reflect the qualities of its electricity distribution
assets. With the valuation now fairly full and the dividend yield one of the
lowest in the European utilities sector, we sold the position. Finally, the
position in Britvic was also sold post the bid approach from Carlsberg.
Outlook
Over the last couple of years there has been a change in the macroeconomic and
political regime. Globalisation has moved to protectionism and the return of
inflation has led to 'higher for longer' interest rates. The global economic
outlook now seems more uncertain given the threat of a global trade war while
governments are prioritising fiscal spending on defence.
Although we expect further interest rates cuts this year, the impact of the UK
Budget and Donald Trump's presidency will likely keep inflation above central
banks' targets hence we believe there will be a more protracted pathway to
normalised interest rates. Also, corporate margins in the UK are likely to
come under some pressure for domestic companies from the increase in national
insurance contributions and minimum wage. However, consumers and companies
have proved adept at dealing with significant cost inflation in the last few
years, with UK economic growth in both 2023 and 2024 proving more resilient
than originally expected. A function of this has been robust wage growth, as
imbalances in the labour market continue, and the strength of personal
finances and corporate balance sheets along with a very well capitalised
banking system. Although UK economic growth is forecast to be lacklustre this
year, strong balance sheets should continue to help support it from downside
risks, while a pickup in confidence is probably needed for a better than
expected outcome.
Sentiment towards UK equities remains bearish and while the UK economic
outlook is subdued, the UK equity market is not necessarily a good proxy for
the UK economy with 75% of revenues derived overseas. Interestingly, since
interest rates started to increase at the end of 2021, the FTSE All-Share
Index has returned 26.7% to the end of February 2025. Although this is behind
the return of the US equity market over the same time period (+31.2%), it is
still a reasonable performance given the economic and inflationary backdrop
and the negative rhetoric surrounding UK equities. Despite this return,
valuations are still attractive in the UK market, both compared to their own
history and relative to global indices, hence we remain cautiously optimistic
that UK equities can continue to make reasonable gains this year. As ever the
focus remains on finding good quality businesses at a compelling valuation
that can pay and grow an attractive dividend.
David Smith
Fund Manager
26 March 2025
PRINCIPAL RISKS
Principal Risk Mitigating Measures
Climate Change Risk ESG considerations are a fully integrated component of the investment process.
The Fund Manager seeks to understand how a company is managing ESG risks
Risk that investee companies within the Company's portfolio fail to respond to through its policies and processes and where its investments are targeted, to
the pressures of the growing climate emergency and fail to limit their carbon ensure that its business model remains sustainable over the longer term.
footprint to regulated targets, resulting in reduced investor demand for their
shares and falling market values.
Please refer to Environmental, Social and Governance Matters in the Annual
Report for further details.
Investment Risk The Manager provides the Board with regular investment performance statistics
against the benchmark and the peer group.
Risk of long-term underperformance of the Company against the benchmark and/or
peer group. This could result in the shares of the Company trading at a
persistent discount to net asset value and/or reduced liquidity in the
Company's shares. The implementation of the investment strategy and results of the investment
process for which the Fund Manager is responsible, are discussed with the
Manager and reviewed at each Board meeting.
Risk that insufficient income generation could lead to a cut in the dividend.
The premium/discount to net asset value and the trading volume of the
Company's shares are also regularly reviewed, taking account of market
conditions.
The Board regularly reviews and monitors the investment in marketing
activities with the Manager. Both the Manager and the Board maintain close
contact with the Company's Broker to understand the supply of and demand for
the Company's shares.
The Board reviews the Income Statement and revenue forecasts at each meeting
and continually monitors the Company's revenue reserves.
Market/Financial Risk The Board reviews the Company's compliance with its loan covenants (for both
the short-term and long-term facilities) on a monthly basis and additional
Risk that market conditions lead to a fall in the value of the portfolio covenant testing is undertaken in extreme market conditions to give comfort
(magnified by any gearing) and/or a reduction of income. that the Company can meet its financial liabilities.
Risks associated with interest rates and their impact on the broader financial The portfolio is diverse, containing a sufficient range of investments to
system. ensure that no single investment puts undue risk on the sustainability of the
income generated by the portfolio or indeed the capital value. Regard is also
given to having a broad mix of companies in the portfolio, as well as a spread
across a range of economic sectors. The Board reviews the portfolio on a
These could result in a loss of capital value for shareholders and/or a cut in monthly basis.
the dividend payment.
The Manager operates within investment limits and restrictions set by the
Board, including limits for gearing and derivatives and confirms compliance
with these each month. Any particularly high risks are highlighted and
discussed, and appropriate follow up action is taken where necessary.
A detailed analysis of the Company's financial risk management policies and
procedures can be found in the Financial Risk Management Policies and
Procedures note in the Annual Report.
The Board reviews the Income Statement and revenue forecasts at each meeting
and continually monitors the Company's revenue reserves.
Operational Risks including cyber risks, pandemic risks and epidemic risks and The Board receives a quarterly internal control report from the Manager to
risks relating to terrorism and international conflicts assist with the ongoing review and monitoring of the internal control and risk
management systems it has in place.
Risk of loss through inadequate or failed internal procedures, policies,
processes, systems or human error. This includes risk of loss to the Company's
third-party service providers.
The Board regularly receives reports from the Manager's Internal Audit, Risk,
Compliance, Information Security and Business Continuity teams. This provides
assurance that the Manager has appropriate policies and procedures in place to
Risk of financial loss, disruption or damage to the reputation of the be able to continue in operation and maintain stability in times of such
Company, the Manager and the Company's other key third-party service risks. In particular, the Board asks the Manager to confirm that the Fund
providers, as a result of failure of information technology systems. Manager can continue to manage the portfolio in these circumstances.
Risk of loss as a result of external events outside of the Board's control The Board makes similar enquiries of its other key third-party service
such as pandemic and/or epidemic risks and risks relating to terrorism and/or providers to gain assurance that they too have appropriate policies and
international conflicts that disrupt and impact the global economy. This procedures in place to be able to continue in operation and maintain stability
includes the risk of loss to the Company's third-party service providers that in times of such risks.
are also disrupted and impacted by such events.
Please refer to the Internal Control and Risk Management section in the Annual
Report for further details.
Tax, Legal and Regulatory Risk The Manager has been contracted to provide investment, company secretarial,
administration and accounting services through qualified professionals.
Risk that a breach of, or a change in laws and regulations, could materially
affect the viability and appeal of the Company, in particular section 1158/9
of the Corporation Tax Act 2010 which exempts capital gains from being taxed
within investment trusts. The Board receives internal control reports produced by the Manager on a
quarterly basis, which confirm tax, legal and regulatory compliance.
Emerging Risks
With the help of the Manager's research resources and using its own market
intelligence, the Board continually monitors the changing risk landscape and
any emerging and increasing threats to the Company's business model. Such
emerging risks could cause disruption for the Company if ignored, but if
identified could provide business opportunities. Should an emerging risk
become sufficiently clear, it may be moved to a principal risk.
VIABILITY STATEMENT
The Company seeks to provide superior income generation and long-term capital
growth for its shareholders. The Board aims to achieve this by implementing
the Company's business model and strategy through the investment objective and
policy. The Board will continue to consider and assess how it can adapt the
business model and strategy of the Company to ensure its long-term viability
in relation to its principal and emerging risks.
The Board also considers:
· the prospects for the Company including the liquidity of the portfolio (which
is mainly invested in readily realisable listed securities);
· the level of borrowings (which are restricted);
· the closed-end nature as an investment company (therefore there are no issues
arising from unexpected redemptions);
· the ongoing charge ratio (0.74% for the year-ended 31 December 2024 (2023:
0.86%)); and
· long-term borrowings in place in the form of the 3.67% senior unsecured loan
note which matures in July 2034 (the value of this long-term borrowing is at
6.6% of net assets as at 31 December 2024, relatively small in comparison to
the value of total net assets).
Furthermore, the Company retains title to all assets held by the Custodian
(under the terms of the formal agreement with the Depositary), cash is held
with approved banks and revenue and expenditure forecasts are reviewed at each
Board meeting. The Fund Manager provides an additional, conservative
stress-tested revenue forecast at least once a year to assist the Board with
its dividend decision making. The Company's revenue reserves remain strong
with approximately six months' worth of dividend cover, which gives additional
comfort for any difficult years that may arise in the future.
The Board believes it is appropriate to assess the Company's viability over a
five-year period in recognition of its long-term horizon and taking account
of the Company's current position and the assessment factors detailed above.
When assessing the viability of the Company over the next five years the
Directors considered its ability to meet liabilities as they fall due. This
included consideration of the duration of the Company's borrowing facilities
and how a breach of any loan covenants could impact on the Company's net asset
value and share price. The Directors also considered the impact of a global
recession, inflation and risks associated with geopolitical conflicts. Whilst
these currently present uncertainty and volatility in financial markets, they
do not threaten the Company's viability.
The Board does not envisage any change in strategy or investment objective, or
any events that would prevent the Company from continuing to operate over the
next five years as the Company's assets are liquid, its commitments are
limited, and the Company intends to continue to operate as an investment
trust. In 2024 the Board received feedback from the Fund Manager and the Janus
Henderson Investment Trust Sales Team on meetings held with shareholders. The
feedback suggested that the shareholders were supportive of the Company
continuing in operation.
The Board recognises that there is a continuation vote due to take place at
the AGM in May 2025. In light of the above consideration of the Company's
viability and going concern and as no shareholders have indicated that they
will not support the continuation vote, the Board remains confident that
shareholders remain supportive of the Company.
The Board takes comfort in the robustness of the Company's position,
performance, liquidity and the well-diversified portfolio, as well as the
Fund Manager's monitoring of the portfolio and therefore has a reasonable
expectation that the Company will continue in operation and meet its
liabilities as they fall due up to and including the year-ending 31 December
2029.
RELATED PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with the
Directors and the Manager. There have been no material transactions between
the Company and its Directors during the year. The only amounts paid to them
were in respect of remuneration for which there were no outstanding amounts
payable at the year-end. Directors' interests in shares are disclosed in the
Directors' Remuneration Report in the Annual Report. In relation to the
provision of services by the Manager (other than fees payable by the Company
in the ordinary course of business and the provision of marketing services)
there have been no material transactions with the Manager affecting the
financial position or performance of the Company during the year under review.
More details on Transactions with Janus Henderson and Related Parties
including amounts outstanding at the year-end, are given in Note 21 to the
financial statements within the Annual Report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL
STATEMENTS
Each of the Directors, whose names and functions are listed in note 15 below,
confirm that, to the best of their knowledge:
· the Company's financial statements, which have been prepared in accordance
with United Kingdom Accounting Standards, comprising FRS 102, give a true and
fair view of the assets, liabilities, financial position and profit of the
Company; and
· 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 it faces.
On behalf of the Board
Jeremy Rigg
Chairman
26 March 2025
Furthermore, the Company retains title to all assets held by the Custodian
(under the terms of the formal agreement with the Depositary), cash is held
with approved banks and revenue and expenditure forecasts are reviewed at each
Board meeting. The Fund Manager provides an additional, conservative
stress-tested revenue forecast at least once a year to assist the Board with
its dividend decision making. The Company's revenue reserves remain strong
with approximately six months' worth of dividend cover, which gives additional
comfort for any difficult years that may arise in the future.
The Board believes it is appropriate to assess the Company's viability over a
five-year period in recognition of its long-term horizon and taking account
of the Company's current position and the assessment factors detailed above.
When assessing the viability of the Company over the next five years the
Directors considered its ability to meet liabilities as they fall due. This
included consideration of the duration of the Company's borrowing facilities
and how a breach of any loan covenants could impact on the Company's net asset
value and share price. The Directors also considered the impact of a global
recession, inflation and risks associated with geopolitical conflicts. Whilst
these currently present uncertainty and volatility in financial markets, they
do not threaten the Company's viability.
The Board does not envisage any change in strategy or investment objective, or
any events that would prevent the Company from continuing to operate over the
next five years as the Company's assets are liquid, its commitments are
limited, and the Company intends to continue to operate as an investment
trust. In 2024 the Board received feedback from the Fund Manager and the Janus
Henderson Investment Trust Sales Team on meetings held with shareholders. The
feedback suggested that the shareholders were supportive of the Company
continuing in operation.
The Board recognises that there is a continuation vote due to take place at
the AGM in May 2025. In light of the above consideration of the Company's
viability and going concern and as no shareholders have indicated that they
will not support the continuation vote, the Board remains confident that
shareholders remain supportive of the Company.
The Board takes comfort in the robustness of the Company's position,
performance, liquidity and the well-diversified portfolio, as well as the
Fund Manager's monitoring of the portfolio and therefore has a reasonable
expectation that the Company will continue in operation and meet its
liabilities as they fall due up to and including the year-ending 31 December
2029.
RELATED PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with the
Directors and the Manager. There have been no material transactions between
the Company and its Directors during the year. The only amounts paid to them
were in respect of remuneration for which there were no outstanding amounts
payable at the year-end. Directors' interests in shares are disclosed in the
Directors' Remuneration Report in the Annual Report. In relation to the
provision of services by the Manager (other than fees payable by the Company
in the ordinary course of business and the provision of marketing services)
there have been no material transactions with the Manager affecting the
financial position or performance of the Company during the year under review.
More details on Transactions with Janus Henderson and Related Parties
including amounts outstanding at the year-end, are given in Note 21 to the
financial statements within the Annual Report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE FINANCIAL
STATEMENTS
Each of the Directors, whose names and functions are listed in note 15 below,
confirm that, to the best of their knowledge:
· the Company's financial statements, which have been prepared in accordance
with United Kingdom Accounting Standards, comprising FRS 102, give a true and
fair view of the assets, liabilities, financial position and profit of the
Company; and
· 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 it faces.
On behalf of the Board
Jeremy Rigg
Chairman
26 March 2025
AUDITED INCOME STATEMENT
Year-ended Year-ended
31 December 2024 31 December 2023
Revenue Capital Total Revenue Capital Total
return return £'000 return return £'000
£'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss (note 2) - 11,155 11,155 - 10,620 10,620
Income from investments held at fair value through profit or loss (note 3) 20,513 - 20,513 14,859 - 14,859
Other interest receivable and similar income 313 - 313 538 - 538
----------- ----------- ----------- ----------- ----------- -----------
Gross revenue and capital gains 20,826 11,155 31,981 15,397 10,620 26,017
----------- ----------- ----------- ----------- ----------- -----------
Expenses
Management fee (666) (999) (1,665) (565) (846) (1,411)
(note 5)
Other administrative expenses (618) - (618) (456) - (456)
----------- ----------- ----------- ----------- ----------- -----------
Net return before finance costs and taxation 10,156 29,698 14,376 9,774 24,150
19,542
Finance costs (903) (2,709) (3,612) (646) (1,938) (2,584)
----------- ----------- ----------- ----------- ----------- -----------
Net return before taxation 18,639 7,447 26,086 13,730 7,836 21,566
Taxation on net return (338) 229 (109) (247) 101 (146)
----------- ----------- ----------- ----------- ----------- -----------
Net return after taxation 18,301 7,676 25,977 13,483 7,937 21,420
----------- ----------- ----------- ----------- ----------- -----------
Return per ordinary share (note 6) 10.74p 4.50p 15.24p 10.39p 6.11p 16.50p
======= ======= ======= ======= ======= =======
The total columns of this statement represent the Income Statement of the
Company.
All capital and revenue items derive from continuing operations. Although no
operations were acquired or discontinued during the period, see note 10 for
further details on the HDIV transaction.
The Company has no other comprehensive income other than those items
recognised in the Income Statement.
AUDITED STATEMENT OF CHANGES IN EQUITY
Year-ended Called up Share Capital Other Revenue Total
31 December 2024
share premium redemption capital reserve £'000
capital account reserve reserves £'000
£'000 £'000 £'000 £'000
At 1 January 2024 6,490 128,827 26,302 51,807 8,916 222,342
Net return after taxation - - - 7,676 18,301 25,977
Dividends paid (note 9) - - - - (17,031) (17,031)
Issue of shares on the HDIV transaction 2,117 69,949 - - - 72,066
(note 7)
Issue costs of HDIV transaction - (3) - - - (3)
Listing fee in respect of the new shares issued following the HDIV transaction - (144) - - - (144)
----------- ----------- ----------- ----------- ----------- -----------
At 31 December 2024 8,607 198,629 26,302 59,483 10,186 303,207
======= ======= ======= ======= ======= =======
Year-ended Called up Share Capital Other Revenue Total
31 December 2023
share premium redemption capital reserve £'000
capital account reserve reserves £'000
£'000 £'000 £'000 £'000
At 1 January 2023 6,490 128,827 26,302 43,870 8,788 214,277
Net return after taxation - - - 7,937 13,483 21,420
Dividends paid (note 9) - - - - (13,355) (13,355)
----------- ----------- ----------- ----------- ----------- -----------
At 31 December 2023 6,490 128,827 26,302 51,807 8,916 222,342
======= ======= ======= ======= ======= =======
AUDITED STATEMENT OF FINANCIAL POSITION
At 31 December 2024 At 31 December 2023
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss 366,790 270,007
-------------- --------------
Current assets
Debtors 2,323 2,092
Cash at bank and in hand 2,493 1,990
-------------- --------------
4,816 4,082
-------------- --------------
Creditors: amounts falling due within one year (48,520) (31,880)
-------------- --------------
Net current liabilities (43,704) (27,798)
Total assets less current liabilities 323,086 242,209
-------------- --------------
Creditors: amounts falling due after more than one year (19,879) (19,867)
-------------- --------------
Net assets 303,207 222,342
======== ========
Capital and reserves
Called up share capital (note 7) 8,607 6,490
Share premium account 198,629 128,827
Capital redemption reserve 26,302 26,302
Other capital reserves 59,483 51,807
Revenue reserve 10,186 8,916
-------------- --------------
Total shareholders' funds 303,207 222,342
======== ========
Net asset value per ordinary share (note 8) 176.14p 171.30p
======== ========
AUDITED Statement of Cash Flows
Year-ended Year-ended
31 December 2024 31 December 2023
£'000 £'000
Cash flows from operating activities
Net return before taxation 26,086 21,566
Add back: finance costs 3,612 2,584
Less gains on investments held at fair value through profit or loss (11,155) (10,620)
Withholding tax on dividends deducted at source (109) (146)
Increase in debtors (231) (164)
Decrease in creditors (282) (337)
-------------- --------------
Net cash inflow from operating activities(1) 17,921 12,883
-------------- --------------
Cash flows from investing activities
Sales of investments held at fair value through profit or loss 101,287 66,925
Purchases of investments held at fair value through profit or loss (147,956) (67,282)
-------------- --------------
Net cash outflow from investing activities (46,669) (357)
-------------- --------------
Cash flows from financing activities
Net cash acquired and received following the HDIV transaction 32,586 -
Listing fees in respect of the new shares issued following the HDIV (144) -
transaction
Issue costs in respect of the HDIV transaction (3) -
Equity dividends paid (17,031) (13,355)
Drawdown of loans 17,932 1,649
Interest paid (3,600) (2,575)
-------------- --------------
Net cash inflow/(outflow) from financing activities 29,740 (14,281)
-------------- --------------
Net increase/(decrease) in cash and cash equivalents 992 (1,755)
Cash and cash equivalents at beginning of year 1,990 2,873
Exchange movements (489) 872
-------------- --------------
Cash and cash equivalents at end of year 2,493 1,990
Comprising: -------------- --------------
Cash at bank 2,493 1,990
======== ========
(1) Cash inflow from dividends was £18,236,000 (2023: £13,528,000) and cash
inflow from interest was £1,904,000
(2023: £1,395,000).
NOTES TO THE FINANCIAL STATEMENTS
1a. Accounting policies: basis of accounting
The Company is an investment company as defined in section 833 of the
Companies Act 2006 and is incorporated in the UK. It operates in England and
Wales and is registered at 201 Bishopsgate, London EC2M 3AE. The financial
statements have been prepared in accordance with the Companies Act 2006, FRS
102 - The Financial Reporting Standard applicable in the UK and Republic of
Ireland, and with the AIC Statement of Recommended Practice: Financial
Statements of Investment Trust Companies and Venture Capital Trusts (SORP).
The principal accounting policies applied in the presentation of these
financial statements are set out in the Annual Report. These policies have
been consistently applied to all the years presented. The financial statements
have been prepared under the historical cost basis except for the measurement
at fair value of investments. In applying FRS 102, financial instruments have
been accounted for in accordance with sections 11 and 12 of the standard. All
of the Company's operations are of a continuing nature.
1b. Significant judgments and estimates
The decision to allocate special dividends as income or capital is a judgment
but not deemed to be material. The allocation of expenses as income or capital
is not material but has an impact on distributable reserves. The Directors do
not consider these to be significant judgments or estimates and do not believe
any accounting judgments or estimates have been applied to this set of
financial statements that have a significant risk of causing a material
adjustment to the carrying amount of assets and liabilities within the next
financial year. The Directors have considered the substance of the combination
with HDIV in determining whether this represents the acquisition of a
business. In this case the combination is not judged to be an acquisition of a
business, and therefore has not been treated as a business combination in
accounting terms. Investments and cash were transferred from HDIV in exchange
for shares issued by the Company, which have been recognised in share capital
and share premium, as shown in the Statement of Changes in Equity. Further
detail is set out in note 23 in the Annual Report.
1c. Going concern
The Directors have considered the liquidity of the portfolio and concluded
that the assets of the Company consists of securities that are readily
realisable. They have also considered the impact of the risks associated with
interest rates and its impact on the broader financial system, as well as the
risks arising from the wider ramifications of geopolitical conflicts,
including cash flow forecasting, a review of covenant compliance including the
headroom above the most restrictive covenants and an assessment of the
liquidity of the portfolio. They have concluded that the Company is able to
meet its financial obligations, including the repayment of the bank loan, as
they fall due for a period to 26 March 2026, which is at least 12 months from
the date of the approval of the financial statements.
The Company's shareholders are asked every five years to vote on the
continuation of the Company. An ordinary resolution to this effect will be put
to shareholders at the AGM in 2025 and the Board has no reason to believe that
this resolution will not be passed. Having assessed these factors, the
principal risks and other matters discussed in connection with the viability
statement, the Board has determined that it is appropriate to adopt the going
concern basis of accounting in preparing the financial statements.
2. Gains on Investments Held at Fair Value through Profit or Loss
2024 2023
£'000 £'000
Gains on the sale of investments based on historical cost 5,815 4,360
Revaluation gains recognised in previous years (2,211) (2,523)
------------ ------------
Gains on investments sold in the year based on carrying value at previous 3,604 1,837
Statement of Financial Position date
------------ ------------
Net movement on revaluation of investments 7,046 7,722
Effective yield movement (16) 38
Exchange gains 521 1,023
------------ ------------
11,155 10,620
======= =======
3. Income from Investments Held at Fair Value through Profit or Loss 2024 2023
£'000 £'000
UK dividend income - listed 14,946 10,612
UK dividend income - special dividends 189 119
---------- ----------
15,135 10,731
---------- ----------
Interest income - listed 2,058 1,328
Overseas and other dividend income - listed 3,162 2,678
Overseas and other dividend income - special dividends 158 122
---------- ----------
5,378 4,128
---------- ----------
20,513 14,859
====== ======
4. Other Interest Receivable and Similar Income 2024 2023
£'000 £'000
Deposit interest 96 84
Traded option premiums 202 454
Underwriting commission 15 -
----- -----
313 538
=== ===
5. Management Fee
2024 2023
Revenue Capital Revenue Capital
return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000
Management fee 666 999 1,665 565 846 1,411
===== ===== ===== ===== ===== =====
A summary of the terms of the Investment Management Agreement is given in the
Annual Report. An explanation of the split between revenue and capital is
contained in Note 1g to the financial statements in the Annual Report.
6. Profit for the year
Profit attributable per ordinary share figure is based on the return
attributable to the ordinary shares of £25,977,000 (2023: £21,420,000) and
on the 170,406,232 weighted average number of ordinary shares in issue during
the year (2023: 129,796,278).
The Company had no securities in issue that could dilute the return per
ordinary share. The return per ordinary share can be analysed between revenue
and capital as shown below:
2024 2023
£'000 £'000
Net revenue return 18,301 13,483
Net capital return 7,676 7,937
------------ ------------
Profit for the year 25,977 21,420
======= =======
Weighted average number of ordinary shares 170,406,232 129,796,278
Revenue return per ordinary share 10.74p 10.39p
Capital return per ordinary share 4.50p 6.11p
------------ ------------
Profit attributable per ordinary share 15.24p 16.50p
======= =======
7. Called Up Share Capital
Nominal value
Shares entitled Total shares in issue
to dividend in issue £'000
Issued ordinary shares of 5p each 129,796,278 129,796,278 6,490
At 1 January 2024
Issued during the year 42,345,422 42,345,422 2,117
--------------- ---------------- --------
At 31 December 2024 172,141,700 172,141,700 8,607
--------------- ---------------- --------
Shares entitled Total shares Nominal value
to dividend in issue in issue
£'000
Issued ordinary shares of 5p each 129,796,278 129,796,278 6,490
At 1 January 2023
--------------- ---------------- --------
At 31 December 2023 129,796,278 129,796,278 6,490
--------------- ---------------- --------
On 17 January 2024 the Company issued 42,345,422 new shares to Henderson
Diversified Income Trust plc (HDIV) shareholders in consideration of the
£72.1 million of net assets acquired from HDIV in accordance with the scheme
of reconstruction and winding up of HDIV under section 110 of the Insolvency
Act 1986.
No further shares were issued during the year under review (year-ended 31
December 2023: nil). At 31 December 2024
there were 172,141,700 ordinary shares of 5p nominal value in issue. Between 1
January 2025 and 24 March 2025, being the last practicable date prior to the
publication of the Annual Report, 960,130 shares were bought back and held in
treasury. Accordingly, the number of shares in issue as at 24 March 2025 was
172,141,700, of which 960,130 were held in treasury. Therefore, the total
voting rights in the Company at that date was 171,181,570.
8. 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 £303,207,000 (2023: £222,342,000) and on the
172,141,700 ordinary shares in issue at 31 December 2024 (2023: 129,796,278).
The movements during the year of the assets attributable to the ordinary
shares were as follows:
2024 2023
£'000 £'000
Net assets at start of year 222,342 214,277
Total net return after taxation 25,977 21,420
Dividends paid in the year (17,031) (13,355)
Issue of shares on the HDIV transaction 72,066 -
Issue costs in respect of the HDIV transaction (3) -
Listing fees in respect of the new shares issued following the HDIV (144) -
transaction
------------ ------------
303,207 222,342
======= =======
9. Dividends Paid on Ordinary Shares
Payment date 2024 2023
£'000 £'000
Fourth interim dividend (2.575p per share) for the 27 January 2023 - 3,342
year-ended 31 December 2022
First interim dividend (2.575p per share) for the 28 April 2023 - 3,342
year-ended 31 December 2023
Second interim dividend (2.575p per share) for the 28 July 2023 - 3,342
year-ended 31 December 2023
Third interim dividend (2.575p per share) for the 27 October 2023 - 3,342
year-ended 31 December 2023
Fourth interim dividend (2.625p per share) for the 26 January 2024 3,407 -
year ended 31 December 2023
First interim dividend (2.625p per share) for the 26 April 2024 4,519 -
year-ended 31 December 2024
Second interim dividend (2.625p per share) for the 26 July 2024 4,519 -
year-ended 31 December 2024
Third interim dividend (2.675p per share) for the 25 October 2024 4,605 -
year-ended 31 December 2024
Unclaimed dividends (19) (13)
---------- ----------
17,031 13,355
====== ======
The total dividends payable in respect of the financial year which form the
basis of the test under section 1158 of the Corporation Tax Act 2010, which
sets out the maximum income that an investment trust can retain in any
financial year, are set out below:
2024 2023
£'000 £'000
Revenue available for distribution by way of dividend for the year 18,301 13,483
First interim dividend of 2.625p (2023: 2.575p) (4,519) (3,342)
Second interim dividend of 2.625p (2023: 2.575p) (4,519) (3,342)
Third interim dividend of 2.675p (2023: 2.575p) (4,605) (3,342)
Fourth interim dividend 2.675p (2023: 2.625p) (4,605) (3,407)
---------- ----------
Transfer to revenue reserves 53 50
====== ======
In accordance with FRS 102, interim dividends payable to equity shareholders
are recognised in the Statement of Changes in Equity when they have been paid
to shareholders. All dividends have been paid out of revenue reserves or
current year revenue profits and at no point during the year did the revenue
reserve move to a negative position.
10. Transaction with Henderson Diversified Income Trust plc (HDIV)
On 16 January 2024, the Company announced that it had acquired £72.1 million
of net assets from HDIV in consideration for the issue of 42,345,422 new
ordinary shares as part of a recommended section 110 scheme under the
Insolvency Act 1986.
£'000
Net assets acquired
Investments and accrued income 39,480
Cash 32,586
Net assets ----------
72,066
----------
Satisfied by the value of new ordinary shares issued 72,066
======
There were no fair value adjustments of the combination made to the above
figures.
11. 2024 Financial Information
The figures and financial information for the year-ended 31 December 2024 are
extracted from the Company's Annual Financial Statements for that period and
do not constitute statutory financial statements for that period. The
Company's Annual Financial Statements for the year-ended 31 December 2024 have
been audited but have not yet been delivered to the Registrar of Companies.
The Independent Auditors' Report on the 2024 Financial Statements was
unqualified, did not include a reference to any matter to which the Auditors
drew attention without qualifying the report, and did not contain any
statements under sections 498(2) and 498(3) of the Companies Act 2006.
12. 2023 Financial Information
The figures and financial information for the year-ended 31 December 2023 are
extracted from the Company's Annual Financial Statements for that period and
do not constitute statutory financial statements for that period. The
Company's Annual Financial Statements for the year-ended 31 December 2023
have been audited and delivered to the Registrar of Companies. The Independent
Auditors' Report on the 2023 Financial Statements was unqualified, did not
include a reference to any matter to which the Auditors drew attention without
qualifying the report, and did not contain any statements under sections
498(2) and 498(3) of the Companies Act 2006.
13. Annual Report
The Annual Report will be posted to shareholders in April 2025 and will be
available at www.hendersonhighincome.com or in hard copy from the Corporate
Secretary at the Company's registered office, 201 Bishopsgate, London EC2M
3AE.
14. Annual General Meeting (AGM)
The AGM will be held on Tuesday, 13 May 2025 at 12 noon at the Company's
registered office, 201 Bishopsgate, London EC2M 3AE. The Notice of Meeting
will be posted to shareholders with the Annual Report.
15. 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 Number (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), Zoe King (Senior Independent
Director), Richard Cranfield, Francesca Ecsery and Preeti Rathi. The Corporate
Secretary is Janus Henderson Secretarial Services UK Limited, represented by
Samantha McDonald, FCG. The registered office is 201 Bishopsgate, London EC2M
3AE.
c) Website
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.hendersonhighincome.com
For further information please contact:
David Smith Dan Howe
Fund Manager Head of Investment Trusts
Janus Henderson Investors Janus Henderson Investors
Telephone: 020 7818 4443 Telephone: 020 7818 1818
Harriet Hall
PR Director, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
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.
11. 2024 Financial Information
The figures and financial information for the year-ended 31 December 2024 are
extracted from the Company's Annual Financial Statements for that period and
do not constitute statutory financial statements for that period. The
Company's Annual Financial Statements for the year-ended 31 December 2024 have
been audited but have not yet been delivered to the Registrar of Companies.
The Independent Auditors' Report on the 2024 Financial Statements was
unqualified, did not include a reference to any matter to which the Auditors
drew attention without qualifying the report, and did not contain any
statements under sections 498(2) and 498(3) of the Companies Act 2006.
12. 2023 Financial Information
The figures and financial information for the year-ended 31 December 2023 are
extracted from the Company's Annual Financial Statements for that period and
do not constitute statutory financial statements for that period. The
Company's Annual Financial Statements for the year-ended 31 December 2023
have been audited and delivered to the Registrar of Companies. The Independent
Auditors' Report on the 2023 Financial Statements was unqualified, did not
include a reference to any matter to which the Auditors drew attention without
qualifying the report, and did not contain any statements under sections
498(2) and 498(3) of the Companies Act 2006.
13. Annual Report
The Annual Report will be posted to shareholders in April 2025 and will be
available at www.hendersonhighincome.com or in hard copy from the Corporate
Secretary at the Company's registered office, 201 Bishopsgate, London EC2M
3AE.
14. Annual General Meeting (AGM)
The AGM will be held on Tuesday, 13 May 2025 at 12 noon at the Company's
registered office, 201 Bishopsgate, London EC2M 3AE. The Notice of Meeting
will be posted to shareholders with the Annual Report.
15. 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 Number (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), Zoe King (Senior Independent
Director), Richard Cranfield, Francesca Ecsery and Preeti Rathi. The Corporate
Secretary is Janus Henderson Secretarial Services UK Limited, represented by
Samantha McDonald, FCG. The registered office is 201 Bishopsgate, London EC2M
3AE.
c) Website
Details of the Company's share price and net asset value, together with
general information about the Company, monthly factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.hendersonhighincome.com
For further information please contact:
David Smith
Fund Manager
Janus Henderson Investors
Telephone: 020 7818 4443
Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 1818
Harriet Hall
PR Director, Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 2919
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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