REG - Henderson HighIncome - Half-year Report
10/09/2025 07:00
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RNS Number : 6687Y Henderson High Income Trust PLC 10 September 2025
LEGAL ENTITY IDENTIFIER: 213800OEXAGFSF7Y6G11
HENDERSON HIGH INCOME TRUST PLC
Unaudited results for the half-year ended 30 June 2025
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 2025
· Net asset value (NAV) total return (debt at fair value)(1) of 11.9%
compared with a total return from the benchmark(2) of 8.0%
· Mid-market share price total return (including dividends reinvested) of
14.4%
Financial highlights
at 30 June 2025 at 31 December 2024
NAV per share(3) 190.0p 174.7p
Mid-market price per share 180.3p 162.5p
Net assets £327.2m £303.2m
Dividends paid/payable 5.35p 10.60p
Dividend yield 6.0% 6.5%
Gearing 18.2% 21.0%
(Discount)/premium to NAV (debt at fair value) (5.1%) (7.0%)
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) 11.9 14.9 40.4 70.8 90.5
Share price total return(4) 14.4 22.6 35.8 71.1 79.4
Benchmark(2) 8.0 10.0 29.7 50.2 78.4
FTSE All-Share Index 9.1 11.2 35.5 67.3 92.7
ICE BofA Sterling Non-Gilts Index 3.4 5.3 7.3 -4.8 24.2
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
INTERIM MANAGEMENT REPORT
CHAIRMAN'S STATEMENT
Markets/Performance
The first half of 2025 has seen financial markets deliver positive returns. A
global backdrop of easing inflation and lower interest rates, combined with
robust corporate results has enabled equity markets to move higher with UK
equities also benefitting from a historically low relative valuation.
Against this backdrop the Company has also achieved a positive relative
performance versus its benchmark (80% of the FTSE All-Share Index and 20% of
the ICE BofA Sterling Non-Gilts Index) with a net asset value total return of
11.9% versus the benchmark return of 8.0%, outperformance of 3.9%. The
Company's share price total return was higher still at 14.4% as the discount
the share price has traded at relative to the Company's net asset value
reduced during the period.
Gearing/Asset Allocation
The Company's asset allocation did not change significantly during the first
half of the year with a clear bias towards equities at the expense of fixed
interest investments versus the benchmark. During the period the Company had
approximately 90% of its assets invested in equities and 10% in bonds. Gearing
reduced a little in the period with the Company ending the first half with a
gearing level of approximately 18% (versus approximately 21% at the start of
2025).
Dividends
The first interim dividend of 2.675 pence per share was paid on 25 April 2025
and the second interim dividend for the same amount was paid on 25 July 2025.
A third interim dividend, to be paid from the Company's revenue account, of
2.775 pence per share was announced on 7 July 2025 and this dividend will be
paid on 24 October 2025 to shareholders registered at the close of business on
12 September 2025 (with the shares being quoted ex-dividend on 11 September
2025).
Dividend payouts from UK companies have continued to be positive with overall
levels of corporate profitability remaining healthy. In particular the UK
banking sector has exhibited very solid dividend growth whilst the UK miners
have seen payout levels more constrained.
The Board 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.
Outlook
Whilst markets have made good progress in the first half of the year investors
remain focused on the impact of ongoing tariff negotiations between the US and
its trading partners and the impact that this may have on economic activity.
With global inflationary pressures having eased a little there is some scope
for monetary policy to become a little less restrictive although the US
Federal Reserve appears reluctant to reduce rates for the moment. In the UK,
although inflation has picked up a little, the Bank of England has lowered the
UK interest rate to 4 percent due to signs that the labour market is cooling
off and evidence that pay settlements at least in the private sector have
begun to reduce.
The UK equity market has made good progress in the early part of the year,
aided by strong company results and significant share buyback activity. There
is a clear divergence between the apparent health of the corporate sector and
government finances which remain under significant pressure due to public
spending commitments. It is important to remember that a significant
proportion of UK company profitability is derived from activities outside the
UK and the UK market continues to trade at an attractive valuation relative to
other global markets.
As usual, the Company's Fund Manager will continue to focus on delivering the
high level of income which our shareholders expect while also mindful of the
requirement to target longer term capital growth.
Jeremy Rigg
Chairman
9 September 2025
Fund Manager's Report
Markets
The UK equity market made strong returns during the first half of the year
with the FTSE All-Share Index up 9.1% on a total return basis. Optimism over
looser monetary policy, plans by European countries to boost defence spending
and better than expected UK economic growth helped drive the equity markets
higher during the first quarter. Global markets, however, experienced a sharp
sell-off in early April 2025 after US President Trump announced new tariffs on
imports, before quickly recovering after the US administration suspended their
imposition for 90 days. The trade uncertainty also caused increased volatility
in other asset classes, with the US dollar weakening against sterling, falling
9.4% over the period, and the oil price sinking 9.2% to $66 per barrel as at
the end of June 2025.
The Bank of England announced two 25-basis-point (bps) interest rate cuts,
reducing its benchmark rate to 4.25%. Annual inflation, however, remained
stubbornly above its 2% target, as it accelerated to 3.4% in May from 3.0% in
January 2025. The UK 10-year gilt yield ended June at 4.5%, down from 4.6% as
at the end of last year, although this masked significant volatility in the
period given the tariff uncertainties along with fears over the UK's fiscal
deficit position.
Larger cap companies outperformed mid- and small-cap companies with the FTSE
100 Index rising 9.5% versus the FTSE 250 and FTSE Small Cap indices gaining
6.9% and 7.1% respectively. Sectors such as aerospace & defence, life
insurance, banks and tobacco outperformed, while beverages, mining and general
industrials lagged.
Performance
The Company's NAV (with debt at fair value) rose by 11.9% during the period,
outperforming the Company's benchmark return of 8.0%. Within the equity
portfolio, holdings in life insurance companies Phoenix and M&G were
positive for performance. Phoenix reported good results with cash generation
better than expected while M&G announced a long-term strategic partnership
with Japanese Insurer Dai-Ichi Life, which is expected to deliver new business
flows for M&G while Dai-Ichi will also acquire a 15% stake in the company.
Some of the overseas equity holdings also aided performance with Nordic
telecommunications company Tele2 and French utility Engie performing strongly.
Tele2 released good results with early evidence that their cost transformation
plan was leading to higher profits and cash flow. Engie shares reacted
positively to its upgraded profit guidance on better trading and increased
capital investment plans in energy infrastructure.
Elsewhere, not holding Rolls Royce was a negative to relative performance
given its strong share price performance and large weighting in the benchmark.
Rolls Royce's full year results significantly beat expectations while the
shares were further supported by the proposal by the new German government to
materially increase its defence spending. This also led to strong
outperformance from holdings in defence contractors BAE and Chemring which
helped offset some of the relative performance headwind.
Portfolio Activity
Given geopolitical and economic uncertainties and the strength of equity
markets, gearing was modestly reduced during the first half of the year and
finished the period at 18.2%.
Within the equity portfolio new holdings were established in overseas
companies BNP Paribas and AXA. BNP is a diversified and strongly capitalised
bank and is well placed to benefit from any de-regulation of the EU banking
sector and capital market reforms. This should help release capital, drive
higher growth and improve returns which we believe is not currently discounted
in the valuation. AXA is a well-diversified European multi-line insurer with a
strong solvency position and attractive dividend. Sales for the period
included SSE, Mobico and Sabre Insurance. UK utility SSE is due to make
significant investments in renewable energy projects over the next few years,
however, we are concerned over the level of returns given the material
increase in construction costs in recent years. We exited Mobico at the
beginning of the year on fears over the balance sheet and the company's
ability to sell assets to reduce leverage. Finally, Sabre was sold after a
recovery from its share price lows given margins had recovered back to more
normalised levels.
David Smith
Fund Manager
9 September 2025
INVESTMENT PORTFOLIO
Classification of Investments by Sector
Total Total
30 June 2025 31 December 2024
% %
FIXED INTEREST
Preference shares 0.8 1.2
Other fixed interest 8.8 9.7
------ ------
Total Fixed Interest 9.6 10.9
------ ------
EQUITIES
Energy
Oil, gas and coal 4.8 4.8
------ ------
Total Energy 4.8 4.8
------ ------
Basic Materials
Chemicals 1.9 1.7
Industrial metals and mining 3.4 4.3
------ ------
Total Basic Materials 5.3 6.0
------ ------
Industrials
Aerospace and defence 3.1 1.9
Construction and materials 0.9 0.7
Electronic and electrical equipment - 0.5
General industrials 1.9 1.8
Industrial engineering 0.7 0.8
Industrial support services 1.9 2.1
------ ------
Total Industrials 8.5 7.8
------ ------
Consumer Discretionary
Consumer services 1.5 1.8
Household goods and home construction 1.1 1.0
Media - 2.7
Retailers 2.4 2.3
Travel and leisure 2.0 2.7
------ ------
Total Consumer Discretionary 7.0 10.5
------ ------
Health Care
Pharmaceuticals and biotechnology 2.8 3.3
------ ------
Total Health Care 2.8 3.3
------ ------
Consumer Staples
Beverages 2.1 2.0
Food producers 2.9 2.9
Personal care, drug and grocery stores 6.3 6.9
Tobacco 8.4 8.0
------ ------
Total Consumer Staples 19.7 19.8
------ ------
Utilities
Electricity - 0.9
Gas, water and multi-utilities 5.5 4.8
------ ------
Total Utilities 5.5 5.7
------ ------
Financials
Banks 8.9 7.3
Closed end investments 1.5 1.8
Finance and credit services 1.1 0.9
Investment banking and brokerage services 7.9 8.4
Life insurance 5.6 4.5
Non-life insurance 2.7 2.3
------ ------
Total Financials 27.7 25.2
------ ------
Technology
Software and computer services 3.7 1.0
Technology hardware and equipment 0.8 0.8
------ ------
Total Technology 4.5 1.8
------ ------
Real Estate
Real estate investment trusts 3.4 3.0
------ ------
Total Real Estate 3.4 3.0
------ ------
Telecommunications
Fixed Line Telecommunications 1.2 1.2
------ ------
Total Telecommunications 1.2 1.2
-------- --------
Total investments 100.0 100.0
===== =====
TWENTY LARGEST INVESTMENTS
Company Sector Fair value % Fair value %
as at of portfolio as at of portfolio
30 June 2025 31 December 2024 2024
2025 £'000
£'000
British American Tobacco Consumer Staples 21,289 5.5 17,709 4.8
HSBC Financials 12,812 3.3 12,546 3.4
Imperial Brands Consumer Staples 11,289 2.9 11,761 3.2
Shell Energy 11,133 2.9 9,569 2.6
RELX (Netherlands) Technology 10,662 2.8 9,798 2.7
Phoenix Financials 10,122 2.6 7,836 2.0
Unilever Consumer Staples 9,340 2.4 10,544 2.9
Aviva Financials 8,842 2.3 6,540 1.7
National Grid Utilities 8,651 2.2 7,449 1.9
Rio Tinto Basic Materials 8,600 2.2 10,542 2.9
NatWest Financials 8,569 2.2 8,112 2.2
Lloyds Banking Group Financials 8,559 2.2 6,114 1.2
Reckitt Benckiser Consumer Staples 8,098 2.1 7,029 1.8
3i Financials 7,405 1.9 8,102 2.2
BP Energy 7,402 1.9 7,953 2.2
M&G Financials 7,223 1.9 6,796 1.8
Severn Trent Utilities 7,213 1.9 6,023 1.6
BAE Systems Industrials 6,929 1.8 4,218 1.1
Tesco Consumer Staples 6,869 1.8 7,535 2.0
Hilton Food Consumer Staples 6,385 1.7 6,023 1.6
------------ ------------ ------------ ------------
Total 187,392 48.5 172,199 45.8
======= ======= ======= =======
EQUITY PORTFOLIO SECTOR EXPOSURE AS AT 30 JUNE 2025
Equity portfolio weight FTSE All-Share Index
% %
Financials 31.3 28.0
Consumer Staples 21.6 14.3
Industrials 9.2 13.5
Consumer Discretionary 7.6 8.0
Utilities 6.0 4.1
Basic Materials 5.9 5.0
Energy 5.3 8.7
Technology 4.9 4.2
Real Estate 3.7 2.5
Health Care 3.1 10.6
Telecommunications 1.2 1.2
Total -------- --------
100.0 100.0
===== =====
Source: Janus Henderson
EQUITY PORTFOLIO SECTOR EXPOSURE AS AT 30 JUNE 2025
Equity portfolio weight
%
FTSE All-Share Index
%
Financials
31.3
28.0
Consumer Staples
21.6
14.3
Industrials
9.2
13.5
Consumer Discretionary
7.6
8.0
Utilities
6.0
4.1
Basic Materials
5.9
5.0
Energy
5.3
8.7
Technology
4.9
4.2
Real Estate
3.7
2.5
Health Care
3.1
10.6
Telecommunications
1.2
1.2
Total
--------
100.0
=====
--------
100.0
=====
Source: Janus Henderson
Principal Risks and Uncertainties
The principal risks associated with the Company's business can be divided into
the following main areas:
· Climate change risk
· Investment risk
· Market/financial risk
· Operational risks including cyber risks, pandemic risks and epidemic risks and
risks relating to terrorism and international conflicts
· Tax, legal and regulatory risk
Information on these risks and how they are managed is given in the Company's
Annual Report for the year-ended 31 December 2024. The Board has completed a
thorough review of the principal risks and considers that these risks have not
changed over the past six months and are as applicable to the remaining six
months of the financial year as they were to the six months under review.
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).
For and on behalf of the Board
Jeremy Rigg
Chairman
9 September 2025
Condensed Statement of Comprehensive Income
Half-year ended Half-year ended Year-ended
30 June 2025 30 June 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
Revenue Capital Total Revenue return Capital return £'000 Total Revenue Capital return Total
return return return £'000 return return £'000 return
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through profit or loss - 25,536 25,536 - 8,900 8,900 - 11,155 11,155
Income from investments held at fair value through profit or loss 12,551 - 12,551 11,917 - 11,917 20,513 - 20,513
Other interest receivable and similar income 101 - 101 44 - 44 313 - 313
----------- --------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Gross revenue and capital gains 12,652 25,536 38,188 11,961 8,900 20,861 20,826 11,155 31,981
----------- ----------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Expenses
Management fees (note 2) (322) (482) (804) (327) (490) (817) (666) (999) (1,665)
Other administrative expenses (333) - (333) (307) - (307) (618) - (618)
----------- ----------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Net return before finance costs and taxation 11,997 25,054 37,051 11,327 8,410 19,737 19,542 10,156 29,698
Finance costs (360) (1,080) (1,440) (442) (1,327) (1,769) (903) (2,709) (3,612)
----------- ----------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Net return before taxation 11,637 23,974 35,611 10,885 7,083 17,968 18,639 7,447 26,086
Taxation on net return (268) 240 (28) (179) 94 (85) (338) 229 (109)
----------- ----------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Net return after taxation 11,369 24,214 35,583 10,706 7,177 17,883 18,301 7,676 25,977
----------- ----------- --------- ----------- ----------- ---------- ----------- ----------- -----------
Return per ordinary share (note 3) 6.64p 14.13p 20.77p 6.35p 4.25p 10.60p 10.74p 4.50p 15.24p
======= ====== ===== ======= ====== ===== ======= ====== ======
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 2025 (Unaudited) Called up Share premium account Capital Other capital reserves Revenue reserve Total
redemption
share capital £'000
reserve £'000 £'000 £'000
£'000
£'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 to treasury - - - (2,428) - (2,428)
Fourth interim dividend (2.675p per share) for the year-ended 31 December - - - - (4,605) (4,605)
2024, paid 31 January 2025
First interim dividend (2.675p per share) for the year-ending 31 December - - - - (4,570) (4,570)
2025, paid 26 April 2025
Refund of unclaimed dividends - - - - 19 19
------------ ------------ ------------ ------------ ------------ ------------
At 30 June 2025 8,607 198,629 26,302 81,269 12,399 327,206
======= ======= ======= ======= ======= =======
Half-year ended 30 June 2024 (Unaudited) Called up Share premium account Capital Other capital reserves Revenue reserve Total
redemption
share capital £'000
reserve £'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 - - - 7,177 10,706 17,883
Issue of shares on the HDIV transaction 2,117 69,949 - - - 72,066
Cost of shares issued in respect of the HDIV transaction - (146) - - - (146)
Fourth interim dividend (2.625p per share) for the year-ended 31 December - - - - (3,407) (3,407)
2023, paid 26 January 2024
First interim dividend (2.625p per share) for the year-ending 31 December - - - - (4,519) (4,519)
2024, paid 26 April 2024
Refund of unclaimed dividends - - - - 19 19
------------ ------------ ------------ ------------ ------------ ------------
At 30 June 2024 8,607 198,630 26,302 58,984 11,715 304,238
======= ======= ======= ======= ======= =======
Year-ended 31 December 2024 (Audited) Called up Share premium account Capital Other capital reserves Revenue reserve Total
redemption
share capital £'000
reserve £'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
Fourth interim dividend (2.625p per share) for the year-ended 31 December - - - - (3,407) (3,407)
2023, paid 26 January 2024
First interim dividend (2.625p per share) for the year-ended 31 December 2024, - - - - (4,519) (4,519)
paid 28 April 2024
Second interim dividend (2.625p per share) for the year-ended 31 December - - - - (4,519) (4,519)
2024, paid 26 July 2024
Third interim dividend (2.625p per share) for the year-ended 31 December 2024, - - - - (4,605) (4,605)
paid 25 October 2024
Issue of shares on the HDIV transaction 2,117 69,949 - - - 72,066
Cost of shares issued in respect of the HDIV transaction - (147) - - - (147)
Refund of unclaimed dividends - - - - 19 19
------------ ------------ ------------ ------------ ------------ ------------
At 31 December 2024 8,607 198,629 26,302 59,483 10,186 303,207
======= ======= ======= ======= ======= =======
The accompanying notes are an integral part of the condensed financial
statements.
Condensed STATEMENT OF FINANCIAL POSITION
30 June 2025 30 June 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss (note 4) 386,901 369,785 366,790
------------ ------------ ------------
Current assets
Debtors 2,942 3,064 2,323
Cash at bank and in hand 4,390 4,047 2,493
------------ ------------ ------------
7,332 7,111 4,816
------------ ------------ ------------
Creditors: amounts falling due within one year (47,143) (52,785) (48,520)
------------ ------------ ------------
Net current liabilities (39,811) (45,674) (43,704)
------------ ------------ ------------
Creditors: amounts falling due after more than one year (19,884) (19,873) (19,879)
------------ ------------ ------------
Net assets 327,206 304,238 303,207
======= ======= =======
Capital and reserves
Called up share capital (note 6) 8,607 8,607 8,607
Share premium account 198,629 198,630 198,629
Capital redemption reserve 26,302 26,302 26,302
Other capital reserves 81,269 58,984 59,483
Revenue reserve 12,399 11,715 10,186
------------ ------------ ------------
Total shareholders' funds 327,206 304,238 303,207
======= ======= =======
Net asset value per ordinary share (note 5) 191.68p 176.74p 176.14p
======= ======= =======
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Cash Flows
Half-year ended Half-year ended
30 June 2025 30 June 2024 Year-ended
(Unaudited) (Unaudited) 31 December 2024
£'000 £'000 (Audited)
£'000
Cash flows from operating activities
Net return before taxation 35,611 17,968 26,086
Add back: finance costs 1,440 1,769 3,612
Less: (gains) on investments held at fair value through profit or loss (25,536) (8,900) (11,155)
Withholding tax on dividends deducted at source (28) (85) (109)
Increase in debtors (619) (972) (231)
Increase/(decrease) in creditors 172 (235) (282)
-------------- -------------- --------------
Net cash inflow from operating activities 11,040 9,545 17,921
-------------- -------------- --------------
Cash flows from investing activities
Sales of investments held at fair value through profit or loss 37,799 53,912 101,287
Purchases of investments held at fair value through profit or loss (32,430) (105,535) (147,956)
-------------- -------------- --------------
Net cash inflow/(outflow) from investing activities 5,369 (51,623) (46,669)
-------------- -------------- --------------
Cash flows from financing activities
Net cash acquired and received following the HDIV transaction - 32,586 32,586
Cost of shares issued in respect of the HDIV transaction - (146) (144)
Issue costs in respect of the HDIV transaction - - (3)
Buyback of ordinary share capital (2,428) - -
Equity dividends paid (net of refund of unclaimed distributions) (9,156) (7,907) (17,031)
(Repayment)/drawdown of loans (1,622) 21,070 17,932
Interest paid (1,435) (1,764) (3,600)
-------------- -------------- --------------
Net cash (outflow)/inflow from financing activities (14,641) 43,839 29,740
-------------- -------------- --------------
Net increase in cash and cash equivalents 1,768 1,761 992
Cash and cash equivalents at beginning of period 2,493 1,990 1,990
Exchange movements 129 296 (489)
-------------- -------------- --------------
Cash and cash equivalents at end of period 4,390 4,047 2,493
Comprising: -------------- -------------- --------------
Cash at bank 4,390 4,047 2,493
======== ======== ========
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 by 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 set of financial statements has 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 for "Financial Statements of Investment Trust Companies
and Venture Capital Trusts", which was updated by the Association of
Investment Companies in July 2022.
For the period under review the Company's accounting policies have not varied
from those described in the Annual Report for the year-ended 31 December 2024.
The condensed set of financial statements has been neither audited nor
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 2024.
3. Revenue return per ordinary share
The revenue return per ordinary share is based on the following figures:
Half-year ended Half-year ended Year-ended
30 June 2025 (Unaudited) 30 June 2024 (Unaudited) 31 December 2024
£'000 £'000 (Audited)
£'000
Net revenue return 11,369 10,706 18,301
Net capital return 24,214 7,177 7,676
Total return 35,583 17,883 25,977
Weighted average number of ordinary shares 171,308,995 168,651,693 170,406,232
Pence
Pence Pence
Revenue return per ordinary share 6.64 6.35 10.74
Capital return per ordinary share 14.13 4.25 4.50
Total return per ordinary share 20.77 10.60 15.24
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 Level 1 Level 2 Level 3 Total
loss at 30 June 2025
£'000 £'000 £'000 £'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 and financial liabilities at fair value through profit or Level 1 Level 2 Level 3 Total
loss at 30 June 2024
£'000 £'000 £'000 £'000
Equity investments 327,067 - - 327,067
Fixed interest investments:
- Preference shares 5,748 - - 5,748
- Other 36,970 - - 36,970
Total 369,785 - 369,785
Level 1 Level 2 Level 3 Total
Financial assets and financial liabilities at fair value through profit or £'000 £'000 £'000 £'000
loss at 31 December 2024
Equity investments 326,939 - - 326,939
Fixed interest investments:
- Preference shares 4,273 - - 4,273
- Other 35,578 - - 35,578
Total 366,790 - - 366,790
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 2025 were
£160,000 (half-year ended 30 June 2024: £nil; year-ended 31 December 2024:
£202,000).
At 30 June 2025 the fair value of the senior unsecured note has been estimated
to be £18,066,000 (30 June 2024: £18,095,000; 31 December 2024:
£17,722,000) 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 £327,260,000 (half-year ended 30 June 2024:
£304,238,000; year ended 31 December 2024: £303,207,000) and on the
170,705,636 ordinary shares in issue (excluding treasury shares) at 30 June
2025 (30 June 2024: 172,141,700; 31 December 2024: 172,141,700).
6. Share capital
At 1 January 2025 there were 172,141,700 ordinary shares of 5p nominal value
in issue. During the six months under review, 1,436,064 shares were bought
back and held in treasury. Accordingly, the number of shares in issue as at 30
June 2025 was 172,141,700, of which 1,436,064 were held in treasury.
Between 1 July and 5 September 2025, being the last practicable date prior to
publication, 632,254 shares have been bought back and held in treasury.
Accordingly, the number of shares in issue as at 5 September 2025 was
172,141,700, of which 2,068,318 shares were held in Treasury. Therefore, the
total voting rights in the Company at that date was 170,073,382.
7. Dividends
The Company pays dividends on a quarterly basis. In respect of the year ended
31 December 2024, a fourth interim dividend of 2.675p per share (2023: 2.625p)
was paid on 31 January 2025 to shareholders on the register at close of
business on 13 December 2024. In respect of the year ending 31 December 2025,
a first interim dividend of 2.675p per share (2024: 2.625p) was paid on 25
April 2025 to shareholders on the register at close of business on 4 April
2025. These dividends are reflected in the half-year financial statements.
A second interim dividend of 2.675p per share (2024: 2.625p) for the year
ending 31 December 2025 was paid on 25 July 2025 to shareholders on the
register at close of business on 13 June 2025. A third interim dividend of
2.775p per share (2024: 2.675p) for the year ending 31 December 2025 will be
paid on 24 October 2025 to shareholders on the register at close of business
on 12 September 2025. The shares will be quoted ex-dividend on 11 September
2025. In accordance with FRS 102, the second and third interim dividends have
not been accrued for in the half-year financial statements as they will be
paid after the period end.
8. Net debt reconciliation
Cash Bank loans repayable within one year Total
and cash
equivalents £'000 £'000
£'000
Other debt repayable after more
than one year
£'000
Net debt as at 1 January 2025 2,493 (47,561) (19,879) (64,947)
Cash flows 1,768 1,622 - 3,390
Non cash flow:
Exchange movements 129 159 - 288
Effective interest movements - - (5) (5)
Net debt as at 30 June 2025 4,390 (45,780) (19,884) (61,274)
Cash Bank loans repayable within one year Other debt repayable Total
and cash
equivalents £'000 after more £'000
£'000
than one year
£'000
Net debt as at 1 January 2024 1,990 (30,639) (19,867) (48,516)
Cash flows 1,761 (21,070) - (19,309)
Non cash flows:
Exchange movements 296 (69) - 227
Effective interest movements - - (6) (6)
Net debt as at 30 June 2024 4,047 (51,778) (19,873) (67,604)
Cash Bank loans repayable within one year Other debt repayable Total
and cash
equivalents £'000 after more £'000
£'000
than one year
£'000
Net debt as at 1 January 2024 1,990 (30,639) (19,867) (48,516)
Cash flows 992 (17,932) - (16,940)
Non cash flows:
Exchange movements (489) 1,010 - 521
Effective interest movements - - (12) (12)
Net debt as at 31 December 2024 2,493 (47,561) (19,879) (64,947)
9. Going concern
The Directors have considered the risks associated with global interest rates
that continue to remain at higher levels despite recent cuts and the continued
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 they are able to meet their financial
obligations, including the repayment of the bank loan, as they fall due for a
period of at least twelve months from the date of issuance. 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
for the financial statements to be prepared on a going concern basis.
The Company's shareholders are asked every five years to vote for the
continuation of the Company. An ordinary resolution to this effect was passed
by the shareholders at the annual general meeting held on 13 May 2025.
10. Related party transactions
The Company's current related parties are its Directors and Janus Henderson.
There have been no material transactions between the Company and its Directors
during the period and the only amounts paid to them were in respect of
expenses and remuneration, for which there were no outstanding amounts payable
at the period end.
In relation to the provision of services by Janus Henderson, other than fees
payable by the Company in the ordinary course of business and the facilitation
of marketing activities with third parties, there have been no material
transactions with Janus Henderson affecting the financial position of the
Company during the period under review.
11. Half Year Report
The half-year report is available at www.hendersonhighincome.com or in hard
copy from the Corporate Secretary by emailing itsecretariat@janushenderson.com
(mailto:itsecretariat@janushenderson.com) . An abbreviated version of this
half-year report, the 'Update', will be circulated to shareholders in
September 2025.
12. General information
a) Company Status
The Company is a UK domiciled investment trust company with registered number
02422514.
SEDOL/ISIN number: 0958057
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. 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.
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