REG - Henderson Smllr Cos - Half-year Financial Report
28/01/2026 07:00
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RNS Number : 6268Q Henderson Smaller Cos Inv Tst PLC 28 January 2026
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
LEGAL ENTITY IDENTIFIER: 213800NE2NCQ67M2M998
THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
Unaudited Results for the Half Year Ended 30 November 2025
The Henderson Smaller Companies Investment Trust plc announces its financial
results for the half year ended 30 November 2025.
§ NAV total return(1) rose by 5.0%
§ Share price total return(2) rose by 4.5%
§ Interim dividend(3) of 7.5p maintained
§ The Company repurchased 8.9m shares, enhancing NAV by 1.0%
§ Cassie Herlihy joined the Fund Management team, with 8 years of financial
industry experience managing UK small caps
The Company's Half-Year Report for the six months ended 30 November 2025 (the
"Half-Year Report") will shortly be available to download from the Company's
website: www.hendersonsmallercompanies.com
(http://www.hendersonsmallercompanies.com) . An abridged extract from the
report, the 'Update', will be sent to shareholders in February 2026. The
Update has also been submitted to the National Storage Mechanism ("NSM") and
will shortly be available for inspection on the NSM website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and on the Company's
website (http://www.hendersonsmallercompanies.com) .
A circular, including a Notice of General Meeting, together with the related
form of proxy, are also being sent to shareholders. The circular and form of
proxy have been submitted to the NSM and will shortly be available for
inspection on the NSM's website
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and on the Company's
website (http://www.hendersonsmallercompanies.com/) .
INVESTMENT OBJECTIVE
The Company aims to maximise shareholders' total returns (capital and income)
by investing in smaller companies that are quoted in the United Kingdom.
TOTAL RETURN PERFORMANCE TO 30 NOVEMBER 2025 (including dividends reinvested)
6 months 1 year 3 years 5 years 10 years
% % % % %
NAV(1) 5.0 3.5 12.5 6.4 65.3
Benchmark(4) 7.4 11.9 33.2 43.9 82.2
Average sector NAV(5) 4.8 6.0 23.5 35.8 84.1
Share price(2) 4.5 8.3 15.1 1.9 69.6
AIC sector share price(6) 6.5 8.5 25.9 36.1 76.5
FTSE All-Share Index 11.8 20.0 41.3 76.8 115.9
Sources: Morningstar Direct, Janus Henderson, LSEG Datastream
1 Net asset value ("NAV") per ordinary share total return with income
reinvested
2 Share price total return using mid-market closing price
3 Interim dividend of 7.5p (30 November 2024: 7.5p) to be paid to shareholders
on 27 March 2026
4 Deutsche Numis Smaller Companies Index (excluding investment companies)
total return
5 Average NAV total return of the Association of Investment Companies ("AIC")
UK Smaller Companies sector
6 Average share price total return of the AIC UK Smaller Companies sector
FINANCIAL SUMMARY
(Unaudited) (Unaudited) (Audited)
30 November 30 November 31 May
2025 2024 2025
Net assets £566.9m £703.3m £634.3m
NAV per ordinary share 951.6p 947.1p 926.2p
Share price per ordinary share 858.0p 819.0p 841.0p
Total return per ordinary share 35.96p (36.91p) (61.24p)
Revenue return per ordinary share 12.59p 13.05p 27.89p
Dividend per ordinary share* 7.5p 7.5p 28.0p
Gearing 13.9% 11.5% 10.2%
*Note: November figures show the interim dividend in each respective year.
May figures show the final dividend for the 12 months.
INTERIM MANAGEMENT REPORT
CHAIR'S STATEMENT
Dear Shareholder
Markets generally rallied worldwide over the period under review as investors
took comfort from an improvement in the global backdrop. Trade relations
became less strained following the reversal of some previously announced
tariffs, while interest rate cuts in both the UK and the US further supported
confidence.
Closer to home, UK shares faced some headwinds as uncertainty built ahead of
the Government's November 2025 Budget. However, once the details were
published, the measures proved less restrictive than many had feared, helping
to calm concerns in gilt markets; this more settled environment should provide
a supportive backdrop for UK small-cap equities.
Despite these UK domestic headwinds, our portfolio posted positive returns
during the period under review. However, the Board recognises that the
Company's performance remains behind its benchmark. During the half year,
refinements to the investment process were implemented to strengthen stock
selection while maintaining the Company's core investment philosophy. The fund
management team has made tangible progress in increasing conviction and
reducing the number of holdings in the portfolio and this has helped to
improve performance during the period under review.
In November we were delighted to welcome Cassie Herlihy to the fund management
team; Cassie will work with Indri van Hien and longstanding team member Shiv
Sedani to further the evolution of the investment process, whilst ensuring
that the core philosophy of investing in growth at the right price remains.
Performance
During the six months to 30 November 2025, the Company's net asset value
("NAV") total return increased by 5.0%, compared with a 7.4% rise in the
Deutsche Numis Smaller Companies ex-Investment Companies Index and 4.8% for
the AIC UK Smaller Companies sector average NAV.
The Company's share price total return rose by 4.5% over the same period,
reflecting improved sentiment despite discount pressures.
Dividend and earnings
The Board is pleased to declare an interim dividend of 7.5p per share (30
November 2024: 7.5p). The dividend will be paid on 27 March 2026 to
shareholders on the register at 13 March 2026. The shares will be quoted
ex-dividend on 12 March 2026.
The Board remains committed to maintaining the Company's longstanding record
of dividend growth, underpinning its status as an AIC Dividend Hero. Barring
any unforeseen developments, the Board's intention is to recommend an
increased final dividend.
Share rating, buybacks and discount
The Company's shares traded at a relatively stable discount to NAV during the
period, moving from 9.2% on 31 May 2025 to 9.8% on 30 November 2025, narrower
than the AIC UK Smaller Companies sector average discount of 14.8%.
The Board monitors the discount closely and undertakes buybacks when it
believes this is in shareholders' best interests. In challenging market
conditions, discounts across the sector have widened significantly. The Board
considered the prevailing discount an opportunity to enhance shareholder value
and therefore continued its active buyback programme.
During the six months under review, the Company repurchased 8,913,840 shares,
representing 12.0% of share capital, all of which were placed in Treasury.
These buybacks enhanced NAV by approximately 1.0%.
Since the period end and up to 23 January 2026, a further 1,702,497 shares,
representing 2.3% of share capital, have been repurchased.
General meeting to renew share buyback authority
The Board is convening a general meeting at 9.30 am on Wednesday, 4 March 2026
to seek shareholder approval to renew the Company's authority to buy back up
to 14.99% of the Company's issued share capital (excluding Treasury shares).
Of the authority to repurchase 9,389,123 shares granted at the last AGM, the
Company has repurchased 4,764,278 as at 23 January 2026, representing 8.2% of
issued share capital (excluding Treasury shares).
The Board is asking for a new share buyback authority for the following
reasons:
§ over half the current buyback authority granted at the 2025 AGM has been
used;
§ renewing the share buyback authority now will ensure the Company remains
able to buy back shares;
§ buying back shares below NAV is part of the Company's approach to discount
management and it enhances the NAV for shareholders; and
§ the Board will only use the authority when it believes it benefits
shareholders.
Accordingly, the Company has today published a Circular setting out further
details of the proposal to renew the share buyback authority. The Circular
includes the notice of meeting to convene a general meeting at which the
appropriate shareholder authority will be sought.
Fund Manager and Board changes
As already announced, Neil Hermon retired from the asset management industry
during the period. The Board appointed Cassie Herlihy as Deputy Fund Manager,
supporting Indri van Hien, who continues to lead the team. Cassie joins us
from Gresham House, where she was part of an investment team managing multiple
portfolios focused on UK small caps. She has eight years of financial industry
experience.
On governance, Victoria Sant retired from the Board following the AGM on 7
October 2025 after nine years of dedicated service. Following her departure,
the Board now comprises five members.
Continuation vote
At the AGM in October 2025, shareholders voted overwhelmingly in favour of the
continuation of the Company, with 95% of votes cast supporting the resolution.
This strong endorsement reflects confidence in the Company's strategy and the
advantages of the investment trust structure, including the ability to employ
gearing to enhance returns and the flexibility to smooth dividend payments
over time.
Outlook
While we must acknowledge that the recent UK Budget was a missed opportunity
for the Government to advance its growth agenda, it has however brought much
needed clarity for all stakeholders. UK consumers continue to see real wage
increases, corporates are benefitting from falling (but still restrictive)
interest rates and both groups are sitting on strong balance sheets.
Confidence is the catalyst needed to drive investment, hiring and spending
decisions, and we are hopeful that this rebuilds in the wake of the budget.
Amid persistent geopolitical challenges, US and European interest rates
continue to fall, coupled with further fiscal stimulus. However, we remain
cautious on inflation and overheating risks, reinforcing the growing emphasis
on portfolio diversification.
In navigating these challenging conditions, the Company's portfolio continues
to have a quality bias and holds companies with robust business models that
are able to forge their own paths. These companies are soundly financed and
are being run by management teams whose incentives are aligned with our own.
The attractive valuations in this part of the market are well-documented.
These claims are validated by continued in-bound merger and acquisition
("M&A") activity and ongoing share buyback programmes being sanctioned by
boards.
Over the long term, the Company seeks to capture the well-established
small-cap premium: that is, the long-term outperformance of small caps over
large caps driven by factors such as higher growth prospects and higher
alpha-generating opportunities in this under-researched part of the market.
Whilst the small-cap factor has proved elusive in the UK over the last 10
years, with budget uncertainty now resolved and relative stability restored in
gilt markets, we are optimistic about investor attention returning to company
fundamentals and technical pressure caused by outflows abating. The recent
reform of the UK Listing Rules suggests there is movement aimed at coaxing
companies back to the UK market, but more could always be done.
While much market commentary is focused on US asset bubbles, we are reminded
of the compelling opportunities UK smaller companies offer, bringing
diversification and growth potential to portfolios. We believe UK smaller
companies continue to deliver exciting growth opportunities to long-term
investors, and remain confident in the ability of our Fund Managers to draw on
their consistent and disciplined investment approach to generate significant
long-term value.
Penny Freer
Chair of the Board
27 January 2026
FUND MANAGER'S REPORT
Market review - six months to 30 November 2025
The broad UK equity market rose over the period. Markets were buoyed by the
considerable easing of global trade tensions following the reciprocal tariffs
announced by the US on 'Liberation Day' in April alongside easing monetary
policy in both the UK and US. During the period under review, the US Federal
Reserve cut the base rate three times whilst the Bank of England cut once,
taking rates to 3.75%-4.0% and 4% respectively.
In the UK, intense speculation in the run up to a seasonally later-than-usual
Autumn Statement caused volatility in sterling and long-dated UK gilt yields.
Both business and consumer confidence were undermined during the noisy run up
which will have had an adverse impact on GDP growth in the short term. The
Government's second Budget included some significantly back-end-loaded tax
rises to fund the higher-than-expected fiscal headroom and increased spending
in welfare and public services, a move which sought to appease both
parliamentary back-benchers and the gilt markets. Initial conclusions from
economists are that the Budget appears to have short-term deflationary
impulses but a neutral impact on longer-term forecasts. UK 10-year gilt yields
fell in the period under review and sterling depreciated against the US
dollar.
Oil prices trended lower in the period as OPEC announced production hikes
despite a weakening backdrop for demand. Gold and commodity prices rallied as
geopolitical tensions persisted.
In this environment, and continuing the trend which has overshadowed the
performance of UK smaller companies in recent years, smaller companies
underperformed their larger counterparts, with the Deutsche Numis Smaller
Companies ex Investment Companies Index up 7.4% against a rise in the FTSE
All-Share Index of 11.8%.
Fund performance
The Company has delivered positive absolute returns in the period but has
underperformed its benchmark. The share price rose by 4.5% and NAV by 5.0% on
a total return basis. This compared with the Deutsche Numis Smaller Companies
ex-Investment Companies Index rise of 7.4% in total return terms. The
underperformance was attributable to negative contributions from stock
selection and expenses, whilst gearing and the ongoing share buyback have been
positive contributors to performance. The negative contribution from stock
selection reflects the strong performance of certain benchmark stocks that
fall outside our investment criteria, which focuses on growth businesses with
high-quality fundamentals trading at reasonable valuations and meeting
liquidity requirements. In addition, there were a small number of
company-specific issues in stocks we did own which impacted performance; we
continue to monitor and adjust our exposure to these stocks to reflect our
analysis of and conviction in their future prospects.
Gearing
Gearing started the period at 10.2% and ended at 13.9%, underlining our
confidence in the outlook for our portfolio. Debt facilities are a combination
of £30m unsecured loan notes at an interest rate of 3.33%, £20m unsecured
loan notes at 2.77% and £70m short-term bank borrowings. As the net asset
value rose in the period, the use of gearing was a positive contributor to
performance.
Attribution analysis
The following tables show the top five contributors to, and detractors from,
the Company's relative performance. Some of the stocks are included in the
benchmark index but not held by the Company. These have an effect on relative
performance.
Top five contributors 6-month return % Relative contribution %
Balfour Beatty +41.7 +1.0
Just Group +43.9 +0.5
Wizz Air* -26.8 +0.4
WH Smith* -33.8 +0.4
Breedon* -27.0 +0.3
Top five detractors 6-month return % Relative contribution %
Goodwin* +196.7 -0.6
SolGold* +318.0 -0.4
Gamma Communications -19.8 -0.4
Softcat -17.3 -0.4
Ceres Power* +409.6 -0.4
* In benchmark index but not held by the Company.
Principal contributors
Balfour Beatty is an international construction, support services and
infrastructure investor group. Just Group is a provider of pension risk
transfer services and individual annuities. Wizz Air is an Eastern
European-based low-cost airline operator. WH Smith is a global convenience
store operator, with retail outlets located in airports and railway stations.
Breedon is a construction and materials company with operations in the UK and
US.
Principal detractors
Goodwin is a global engineering group specialising in mechanical and
refractory engineering. SolGold is a gold and copper exploration company.
Gamma Communications is a B2B telecommunications provider operating in the UK
and Europe. Softcat is a value-added reseller of IT infrastructure in the UK.
Ceres Power is a clean-energy technology company specialising in green
hydrogen.
Portfolio activity
Our approach is to consider our investments as long term in nature and to
avoid unnecessary turnover. The focus has been on adding stocks to the
portfolio that have good growth prospects, sound financial characteristics and
strong management, at a valuation level that does not reflect these strengths.
Likewise, we have been employing strong sell disciplines to dispose of stocks
that fail to meet these criteria.
During the period, we added to a number of positions in our portfolio and
increased exposure to those stocks which we feel have further catalysts to
drive strong performance.
New additions to the portfolio include: CVS, a veterinary services provider
operating in the UK and Australia; Elementis, a global speciality chemical
company; Mitie, a facilities management and specialist support services
business; SSP Group, a leading global operator of food and beverage outlets in
travel hubs; and Tatton Asset Management, a managed portfolio services
provider to independent financial advisers in the UK.
In addition, we added to our existing positions in: Genus, a leading global
porcine and bovine genetics supplier; Oxford Biomedica, a contract development
and manufacturing organisation specialising in viral vector development for
cell and gene therapies; and Chemring, a UK-based provider of defence
technology products and services.
To balance the additions to our portfolio, we have disposed of positions in
companies where a reassessment of the investment thesis indicated weaker
prospects with a diminished return potential or where the valuation had become
extended, including holdings in Cohort, Domino's Pizza, Eurocell, Genuit,
Grainger, Impax Asset Management, Keller and Tribal.
Market outlook
There was little positive to say about how the Government handled the run up
to the November Budget and the destruction in corporate and consumer
confidence that ensued. However, we are encouraged by the material uplift in
fiscal headroom that the Budget has delivered and the relative calm that the
gilt market has shown in its wake. Furthermore, tax-raising measures were not
as punitive as expected and the inflationary impulses that the 2024 Budget
delivered were nowhere to be seen. As the noise abates and short-term
uncertainty is removed, there is good reason to believe that confidence can
rebuild.
The Government faces the unenviable challenge of reviving economic growth
while walking a fiscal tightrope. The building blocks are in place (resetting
of the UK's trading relationship with Europe, deregulation of financial
services and planning reform) and there are signs that the Government
understands the need to get the private sector back onside and attract foreign
investment. Political pressure and the Government's inability to put growth at
the heart of new policy have hampered tangible progress so far. After two
heavy-handed tax-raising budgets, the Government remains deeply unpopular and
we are alive to the possibility of a change in leadership after the local
elections this May.
Sticky inflation, which remains above target in both the US and UK, continues
to drive uncertainty around the timing of when rates will be cut further and
the speed of their descent. However, softening labour market data in the UK
should encourage a dovish tilt from the Bank of England. Furthermore, the
continued prospect of the monetary easing cycle after a period of restrictive
rates is likely to support global equity markets and slowly allow valuation
multiples to normalise.
Geopolitics are set to remain challenging. Conflicts in Ukraine and the Middle
East are struggling to reach stable resolutions and heightened tensions
between China and the US persist. These themes are not new and corporate
management teams are becoming accustomed to supply chain upheaval. We take
comfort in this and the strong balance sheets of both corporates and
consumers, noting that they are intrinsically healthier than they were ahead
of the Global Financial Crisis in 2008-2009.
After a lost decade in UK smaller companies, starting with uncertainty about
the EU referendum vote, we see good reasons why fortunes could change, and
history will show that small caps perform best after periods of economic
dislocation. UK small-cap valuations remain attractive and sit well below
long-term averages while earnings forecasts are beginning to stabilise after a
sharp adjustment in economic activity following the step change in higher
interest rates seen in the last three years. Valuations also remain markedly
depressed versus other developed markets, even on a sector-adjusted basis. The
persistent in-bound M&A activity the market is experiencing suggests that
many market players are already taking notice. We are also seeing an
increasing number of companies buying back stock in recognition of the deep
undervaluation of their own equity. Finally, there have been some green shoots
in the initial public offering ("IPO") market, potentially signalling that
confidence in the UK equity market is slowly rebuilding.
We acknowledge the uncertainty around economic conditions, but we have
confidence that our long-standing investment process will yield a
well-diversified portfolio of companies on attractive multiples that can
deliver cash-generative growth. The investable universe continues to offer
compelling opportunities; with high-quality businesses whose valuations have
been distorted by broader market weakness rather than company-specific issues.
In the UK, many companies continue to trade at significant discounts to
historical levels and international peers. However, just because something
is cheap does not make it a sound investment. This is a stockpicker's market
and our enhanced investment processes and disciplined bottom-up stockpicking
approach enable us to cut through market noise, avoid value traps, and focus
on businesses aligned with long-term growth themes, where management teams
have clear self-help levers to drive profitable growth despite macro
headwinds. We remain confident in our ability to create long-term value
through a consistent, rigorous investment process that has delivered so
powerfully over time.
Indriatti van Hien, Fund Manager
Cassie Herlihy, Deputy Fund Manager
27 January 2026
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties associated with the Company's business
fall broadly under the following categories:
• investment activity and strategy;
• legal and regulatory;
• operational; and
• financial instruments and the management of risk.
Detailed information on these risks is given in the Strategic Report and in
the Notes to the Financial Statements in the Company's Annual Report for the
year ended 31 May 2025.
In the view of the Board, these principal risks and uncertainties are as
applicable to the remaining six months of the financial year as they were to
the six months under review.
DIRECTORS' RESPONSIBILITY STATEMENT
The directors confirm that, to the best of their knowledge:
· the condensed set of financial statements has been prepared in accordance with
International Accounting Standard 34 Interim Financial Reporting;
· the Interim Management Report includes 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 the principal
risks and uncertainties for the remaining six months of the year); and
· the Interim Management Report includes a fair review of the information
required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of
related-party transactions and changes therein).
On behalf of the Board
Penny Freer
Chair of the Board
27 January 2026
INVESTMENT PORTFOLIO
at 30 November 2025
Rank Company Principal activities Valuation £'000 Portfolio
%
1 Balfour Beatty International contractor 22,204 3.44
2 Bellway Housebuilder 22,152 3.43
3 Paragon Banking Buy-to-let mortgage provider 19,625 3.04
4 OSB Group Buy-to-let mortgage provider 19,197 2.98
5 Just Group Enhanced annuity provider 18,359 2.84
6 Mitchells & Butlers Hospitality operator 17,436 2.70
7 JTC Fund administrator 16,150 2.50
8 Serco Outsourcing services 15,827 2.45
9 SigmaRoc* Aggregates supplier 13,620 2.11
10 Oxford Instruments Advanced instrumentation equipment 13,313 2.06
---------- -------
10 largest investments 177,883 27.55
11 Volution Producer of ventilation products 13,109 2.03
12 Vesuvius Ceramic engineering 12,502 1.94
13 IntegraFin Investment platform 12,043 1.87
14 Morgan Sindall Diversified building contractor 11,781 1.82
15 Chemring Defence products & services 11,111 1.72
16 Rathbones Private client wealth manager 10,686 1.66
17 Everplay* Games software developer 10,255 1.59
18 Genus Animal genetics products & services 9,501 1.47
19 Wickes DIY retailer 8,977 1.39
20 Renishaw Precision measuring & calibration equipment 8,783 1.36
----------- -------
20 largest investments 286,631 44.40
21 Bodycote Engineering group 8,496 1.32
22 Savills Property transactional consulting services 8,320 1.29
23 Softcat Software reseller 8,315 1.29
24 GB Group Data intelligence services 8,224 1.27
25 Computacenter IT reseller 8,131 1.26
26 Serica Energy* Oil and gas exploration & production 7,951 1.23
27 Watches of Switzerland Luxury watch retailer 7,877 1.22
28 Hollywood Bowl 10 pin bowling operator 7,754 1.20
29 AJ Bell Investment platform 7,657 1.19
30 Clarkson Shipping services 7,627 1.18
---------- ------
30 largest investments 366,983 56.85
31 Workspace Real estate investment & services 7,620 1.18
32 Harworth Urban regeneration & property investment 7,448 1.15
33 Hill & Smith Fabricated metal products 7,356 1.14
34 QinetiQ Defence services 7,171 1.11
35 Avon Technologies Defence products 7,113 1.10
36 SSP Operator of food & beverage outlets 7,056 1.09
37 Currys Electronics retailer 6,831 1.06
38 Telecom Plus Provider of consumer services 6,827 1.06
39 Moonpig Online card & gift retailer 6,530 1.01
40 Luceco Electrical products 6,440 1.00
---------- -------
40 largest investments 437,375 67.75
41 Alfa Financial Software Leasing software 6,216 0.96
42 Oxford Biomedica Gene & cell therapy 6,062 0.94
43 MONY Price comparison website 5,938 0.92
44 DFS Furniture retailer 5,884 0.91
45 Foresight Specialist fund manager 5,816 0.90
46 Pagegroup Recruitment company 5,770 0.90
47 Baltic Classifieds Online classifieds platform 5,616 0.87
48 Bytes Technology Software reseller 5,509 0.85
49 ZIGUP Commercial vehicle hire 5,371 0.83
50 Hunting Oil equipment & services 5,350 0.83
----------- --------
50 largest investments 494,907 76.66
----------- --------
Remaining 42 investments 150,667 23.34
----------- ----------
Total investments 645,574 100.00
====== =====
* Quoted on the Alternative Investment Market ("AIM")
STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 November 2025 30 November 2024 31 May 2025
Revenue Capital Revenue Capital Revenue Capital
return return Total return return return Total return return return Total return
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 9,263 - 9,263 10,987 - 10,987 22,912 - 22,912
Other income 55 - 55 82 - 82 168 - 168
Gains/(losses) on investments held at fair value through profit or loss - 16,885 16,885 - (34,806) (34,806) - (61,211) (61,211)
Currency losses - - - - (3) (3) - (3) (3)
--------- --------- --------- --------- ------------ ----------- --------- ------------ ------------
Total income/(loss) 9,318 16,885 26,203 11,069 (34,809) (23,740) 23,080 (61,214) (38,134)
Expenses
Management fees (note 3) (321) (749) (1,070) (371) (865) (1,236) (719) (1,677) (2,396)
Other expenses (429) - (429) (351) - (351) (761) - (761)
--------- --------- --------- --------- --------- ---------- ---------- ---------- ----------
Profit/(loss) before finance 8,568 16,136 24,704 10,347 (35,674) (25,327) 21,600 (62,891) (41,291)
costs and taxation
Finance costs (500) (1,167) (1,667) (637) (1,485) (2,122) (1,110) (2,591) (3,701)
--------- --------- ---------- --------- ------------ ----------- --------- ----------- -----------
Profit/(loss) before taxation 8,068 14,969 23,037 9,710 (37,159) (27,449) 20,490 (65,482) (44,992)
Taxation - - - (6) - (6) (2) - (2)
--------- --------- --------- --------- ------------ ----------- --------- ----------- -----------
Profit/(loss) for the period and total comprehensive income 8,068 14,969 23,037 9,704 (37,159) (27,455) 20,488 (65,482) (44,994)
======= ======= ======= ===== ======= ======= ======= ======= =======
Earnings/(loss) per ordinary 12.59p 23.37p 35.96p 13.05p (49.96p) (36.91p) 27.89p (89.13p) (61.24p)
share (note 4)
======= ======= ======= ====== ======= ======= ======= ======= =======
The total columns of this statement represent the Statement of Comprehensive
Income, prepared in accordance with UK adopted International Accounting
Standards, in conformity with the requirements of the Companies Act 2006.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
The profit attributable to shareholders for the period disclosed above
represents the Company's total comprehensive income. The Company does not have
any other comprehensive income.
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
Half year ended 30 November 2025 (unaudited) Share Capital redemption reserve Capital reserves Revenue reserve Total equity
capital £'000 £'000 £'000 £'000 £'000
Total equity at 1 June 2025 18,597 26,824 568,767 20,136 634,324
Total comprehensive income: - - 14,969 8,068 23,037
Profit for the period
Buyback of shares to Treasury - - (77,296) - (77,296)
Transactions with owners, recorded directly to equity:
Ordinary dividend paid - - - (13,159) (13,159)
---------- ---------- ------------ ----------- ------------
Total equity at 30 November 2025 18,597 26,824 506,440 15,045 566,906
====== ====== ======= ====== =======
Half year ended 30 November 2024 (unaudited) Share Capital redemption reserve Capital reserves Revenue reserve Total
capital £'000 £'000 £'000 £'000 equity
£'000
Total equity at 1 June 2024 18,627 26,794 682,267 19,652 747,340
Total comprehensive income: - - (37,159) 9,704 (27,455)
(Loss)/profit for the period
Buyback of shares for cancellation (30) 30 (1,057) - (1,057)
Buyback of shares to Treasury - - (1,001) - (1,001)
Transactions with owners, recorded directly to equity:
Ordinary dividend paid - - - (14,505) (14,505)
---------- ---------- ----------- ----------- ------------
Total equity at 30 November 2024 18,597 26,824 643,050 14,851 703,322
====== ====== ======= ====== =======
Year ended 31 May 2025 Share capital Capital redemption reserve Capital Revenue reserve Total
(audited) £'000 £'000 reserves £'000 equity
£'000 £'000
Total equity at 1 June 2024 18,627 26,794 682,267 19,652 747,340
Total comprehensive income: - - (65,482) 20,488 (44,994)
(Loss)/profit for the year
Buyback of shares for cancellation (30) 30 (1,057) - (1,057)
Buyback of shares to Treasury - - (46,961) - (46,961)
Transactions with owners, recorded directly to equity:
Ordinary dividend paid - - - (20,004) (20,004)
---------- ---------- ------------ ----------- ------------
Total equity at 31 May 2025 18,597 26,824 568,767 20,136 634,324
====== ====== ======= ====== =======
The accompanying notes are an integral part of these financial statements.
BALANCE SHEET
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended 30 November 2024 Year ended
30 November 2025 31 May
2025
£'000 £'000 £'000
Non-current assets
Investments held at fair value through 645,574 784,549 698,722
profit or loss
------------ -------------- -------------
Current assets
Securities sold for future settlement 1,838 1,378 2,542
Prepayments and accrued income 1,380 1,720 3,641
Cash and cash equivalents 4,628 2,420 1,181
------------- ------------- -------------
7,846 5,518 7,364
------------- ------------- -------------
Total assets 653,420 790,067 706,086
------------- -------------- -------------
Current liabilities
Securities purchased for future settlement (635) (395) (1,004)
Accruals and deferred income (867) (974) (830)
Bank loans (35,211) (35,588) (20,133)
------------- ------------ ------------
(36,713) (36,957) (21,967)
------------- ------------ ------------
Total assets less current liabilities 616,707 753,110 684,119
Non-current liabilities (49,801) (49,788) (49,795)
-------------- ------------ ------------
Net assets 566,906 703,322 634,324
======== ======= =======
Equity attributable to equity shareholders
Called-up share capital (note 6) 18,597 18,597 18,597
Capital redemption reserve 26,824 26,824 26,824
Retained earnings:
Capital reserves (note 7) 506,440 643,050 568,767
Revenue reserve 15,045 14,851 20,136
------------ ------------ ------------
Total equity 566,906 703,322 634,324
======= ======= =======
Net asset value per ordinary share (note 8) 951.6p 947.1p 926.2p
======= ======= =======
The accompanying notes are an integral part of these financial statements.
STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 November 2025 30 November 2024 31 May
2025
£'000 £'000 £'000
Operating activities
Profit/(loss) before taxation 23,037 (27,449) (44,992)
Add back interest payable 1,667 2,122 3,701
(Profit)/loss on investments held at fair value through profit or loss (16,885) 34,806 61,211
Losses on foreign currency - 3 3
Purchases of investments (44,097) (70,968) (115,189)
Sales of investments 114,130 84,980 188,624
(Increase)/decrease in receivables (22) 2 (10)
Decrease/(increase) in amounts due from brokers 703 (1,378) (2,542)
Decrease in accrued income 2,284 10,036 8,132
(Decrease)/increase in payables (21) 55 64
Increase/(decrease) in amounts due to brokers 30 (184) 26
----------- ----------- -----------
Net cash inflow from operating activities before interest 80,826 32,025 99,028
----------- ----------- -----------
Interest paid (1,603) (2,132) (3,859)
----------- ----------- -----------
Net cash inflow from operating activities 79,223 29,893 95,169
----------- ----------- -----------
Financing activities
Buyback of ordinary shares (77,695) (2,058) (47,619)
Equity dividends paid (13,159) (14,505) (20,004)
Drawdown/(repayment) of bank loans 15,078 (20,156) (35,611)
------------ ----------- -----------
Net cash outflow from financing activities (75,776) (36,719) (103,234)
======= ======= =======
Increase/(decrease) in cash and cash equivalents 3,447 (6,829) (8,065)
Exchange movements - (3) (3)
Cash and cash equivalents at the start of the period 1,181 9,249 9,249
----------- ---------- ----------
Cash and cash equivalents at the period end 4,628 2,420 1,181
====== ====== ======
The accompanying notes are an integral part of these financial statements.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. Accounting policies - basis of preparation
The Henderson Smaller Companies Investment Trust plc (the "Company") is a
company incorporated and domiciled in the United Kingdom under the Companies
Act 2006. These condensed financial statements comprise the unaudited results
of the Company for the half year ended 30 November 2025. They have been
prepared on a going concern basis and in accordance with UK adopted
International Accounting Standards and with the Statement of Recommended
Practice for Investment Trusts ("SORP") dated July 2022 issued by the
Association of Investment Companies, where the SORP is consistent with the
requirements of UK adopted International Accounting Standards. 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 May 2025. These financial
statements have not been audited or reviewed by the Company's auditor.
2. Going concern
The assets of the Company consist of securities that are readily realisable
and, accordingly, the directors believe that the Company has adequate
resources to continue in operational existence for at least twelve months from
the date of approval of the financial statements. In coming to this
conclusion, the directors have also considered the continued macroeconomic and
geopolitical uncertainty, the nature of the Company's covenants, the strength
of the Company's distributable reserves and the liquidity of the portfolio.
The directors have concluded that the Company is able to meet its financial
obligations, including repayment of the bank loans and borrowings, 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 in the Annual Report for the year
ended 31 May 2025, the directors confirm that the financial statements have
been prepared on a going concern basis.
The Company's shareholders are asked every three years to vote for the
continuation of the Company. The last continuation vote took place at the AGM
on 7 October 2025 and was passed with 95% of votes cast in favour of
continuation. The next continuation vote will take place at the AGM in 2028.
3. Expenses
Expenses, finance costs and taxation include provision for a performance fee
when the relevant criteria have been met. There was no performance fee
provision for the six months to 30 November 2025 (30 November 2024: £nil; 31
May 2025: £nil). Any provision for a performance fee is charged 100% to
capital. The actual performance fee, if any, payable to Janus Henderson for
the year to 31 May 2026 will depend on outperformance over the full financial
year, subject to a cap on the total fees paid to Janus Henderson of 0.9% of
the average value of the net assets of the Company during the year. No
performance fee is payable if on the last day of the accounting year the
Company's share price or NAV is lower than the share price and NAV at the
preceding year end. Details of the performance fee arrangements are set out in
the Annual Report for the year ended 31 May 2025.
4. Earnings per ordinary share
The earnings per ordinary share figure is based on the net profit for the half
year ended 30 November 2025 of £23,037,000 (half year ended 30 November 2024:
net loss of £27,455,000; year ended 31 May 2025: net loss of £44,994,000)
and on 64,062,857 (half year ended 30 November 2024: 74,385,402; year ended 31
May 2025: 73,469,728) ordinary shares, being the weighted average number of
ordinary shares in issue during the period.
The earnings per ordinary share figure detailed above can be further analysed
between revenue and capital, as below.
(Unaudited) (Unaudited) (Audited)
30 November 30 November 2024 31 May
2025 £'000 2025
£'000 £'000
Net revenue profit 8,068 9,704 20,488
Net capital profit/(loss) 14,969 (37,159) (65,482)
------------- ------------ --------------
Net total profit/(loss) 23,037 (27,455) (44,994)
======== ======= ========
Weighted average number of ordinary shares in issue during the period 64,062,857 74,385,402 73,469,728
Pence Pence Pence
Revenue earnings per ordinary share 12.59 13.05 27.89
Capital profit/(loss) per ordinary share 23.37 (49.96) (89.13)
------------ ---------- ------------
Total profit/(loss) per ordinary share 35.96 (36.91) (61.24)
======= ====== =======
The Company has no securities in issue that could dilute the return per
ordinary share. Therefore the basic and diluted earnings per ordinary share
are the same.
5. Dividends
The Board has declared an interim dividend of 7.5p (30 November 2024: 7.5p) to
be paid on 27 March 2026 to shareholders on the register at the close of
business on 13 March 2026. The ex-dividend date will be 12 March 2026. No
provision has been made for the interim dividend in these condensed financial
statements.
The final dividend of 20.5p per ordinary share, paid on 13 October 2025, in
respect of the year ended 31 May 2025, has been recognised as a distribution
in the period.
6. Share capital
At 30 November 2025 there were 59,574,134 ordinary shares in issue (30
November 2024: 74,262,965; 31 May 2025: 68,487,974), excluding 14,810,997
ordinary shares held in Treasury. During the half year ended
30 November 2025 the Company bought back 8,913,840 of its own issued shares
to be held in Treasury (half year ended 30 November 2024: 120,000 bought back
for cancellation and 122,166 to be held in Treasury; year ended 31 May 2025:
120,000 for cancellation and 5,897,157 to be held in Treasury). Since the
period end and as at 23 January 2026, a further 1,702,497 shares have been
bought back to be held in Treasury.
7. Capital reserves
Capital reserves include the capital reserve arising on investments sold of
£412,735,000 (30 November 2024: £561,389,000; 31 May 2025: £477,661,000)
and the capital reserve arising on revaluation of investments held of
£93,705,000 (30 November 2024: £81,661,000; 31 May 2025: £91,106,000).
The Company's capital reserve arising on investments sold (i.e. realised
capital profits) and revenue reserve may be distributed by way of a dividend.
8. Net asset value ("NAV") per ordinary share
The NAV per ordinary share is based on the net assets attributable to the
equity shareholders of £566,906,000 (30 November 2024: £703,322,000; 31 May
2025: £634,324,000) and on 59,574,134 (30 November 2024: 74,262,965; 31 May
2025: 68,487,974) ordinary shares, being the number of ordinary shares in
issue at the period end, excluding shares held in Treasury.
9. Transaction costs
Purchase transaction costs for the half year ended 30 November 2025 were
£224,000 (half year ended 30 November 2024: £254,000; year ended 31 May
2025: £451,000). These comprise mainly stamp duty and commission. Sale
transaction costs for the half year ended 30 November 2025 were £49,000 (half
year ended 30 November 2024: £36,000; year ended 31 May 2025: £84,000).
10. Financial instruments
The investments are held at fair value through profit or loss. All the net
current liabilities are held in the Balance Sheet at a reasonable
approximation of fair value. At 30 November 2025 the fair value of the
Preference Stock was £4,000 (30 November 2024: £4,000; 31 May 2025:
£4,000). The fair value of the Preference Stock is estimated using the prices
quoted on the exchange on which the investment trades. The Preference Stock is
carried in the Balance Sheet at par.
The unsecured loan notes are carried in the Balance Sheet at par less the
issue costs which are amortised over the life of the notes. In order to comply
with fair value accounting disclosures only, the fair value of the unsecured
loan notes has been estimated to be £35,569,000 (30 November 2024:
£36,340,000; 31 May 2025: £34,913,000) and is categorised as Level 3 in the
fair value hierarchy as described below. However, for the purpose of the daily
NAV announcements, the unsecured loan notes are valued at par in the fair
value NAV because they are not traded, and the directors have assessed that
par value is the most appropriate value to be applied for this purpose.
The fair value of the unsecured loan notes is calculated using a discount rate
which reflects the yield of a UK Gilt of similar maturity plus a suitable
credit spread.
Fair value hierarchy
The table below sets out the fair value measurements using the IFRS 13 fair
value hierarchy. Categorisation within the hierarchy has been determined on
the basis of the lowest level of input that is significant to the fair value
measurement of the relevant asset, as follows:
Level 1: valued using quoted prices in active markets for identical assets.
Level 2: valued by reference to valuation techniques using observable inputs
other than quoted prices.
Level 3: valued by reference to valuation techniques using inputs that are not
based on observable market data.
As at 30 November 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 645,574 - - 645,574
------------- ------------- ------------- -------------
645,574 - - 645,574
======== ======== ======== ========
As at 30 November 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 784,549 - - 784,549
------------- ----------- ----------- -------------
784,549 - - 784,549
======== ====== ====== ========
As at 31 May 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity investments 698,722 - - 698,722
------------- ----------- ----------- -------------
698,722 - - 698,722
======== ====== ====== ========
The valuation techniques used by the Company are explained in the accounting
policies note 1(c) of the Annual Report for the year ended 31 May 2025.
11. Related-party transactions
During the first six months of the current financial year, no transactions
with related parties have taken place which have materially affected the
financial position of the Company during the period. Details of related-party
transactions are in the Annual Report for the year ended 31 May 2025.
12. Comparative information
The financial information contained in this half-year financial report does
not constitute statutory accounts as defined in s434 Companies Act 2006. The
financial information for the half years ended 30 November 2025 and 30
November 2024 has not been audited.
The information for the year ended 31 May 2025 has been extracted from the
statutory accounts for that year, which have been filed with the Registrar of
Companies. The report of the auditor on those accounts was unqualified and
contained no statement under either s498(2) or s498(3) Companies Act 2006.
13. General information
The Henderson Smaller Companies Investment Trust plc is registered in England
and Wales.
Company Number: 00025526
Registered Office: 201 Bishopsgate, London EC2M 3AE
London Stock Exchange (TIDM) Code: HSL
ISIN: GB0009065060
SEDOL: 0906506
Global Intermediary Identification Number (GIIN): WZD8S7.99999.SL.826
Legal Entity Identifier (LEI): 213800NE2NCQ67M2M998
Directors and Corporate Secretary
The directors of the Company are Penny Freer (Chair of the Board), Kevin
Carter (Senior Independent Director), Alexandra Mackesy (Chair of the Audit
and Risk Committee), Yen Mei Lim and Michael Warren. The Corporate Secretary
is Janus Henderson Secretarial Services UK Limited, represented by Johana
Woodruff, FCG.
Website
Details of the Company's share price and NAV, 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.hendersonsmallercompanies.com (http://www.hendersonsmallercompanies.com) .
14. Financial report for the half year ended 30 November 2025
The half-year report will shortly be available on the Company's website at
www.hendersonsmallercompanies.com (http://www.hendersonsmallercompanies.com) .
An abbreviated version, the 'Update', will also be available shortly on the
Company's website (http://www.hendersonsmallercompanies.com) and on the NSM
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and is being
circulated to shareholders in February 2026. Both documents will also be
available from the Corporate Secretary at the Company's registered office, 201
Bishopsgate, London, EC2M 3AE.
15. General meeting
The Company has today published a circular (the "Circular") setting out
further details of the proposal to renew the Company's share buyback
authority. The Circular also includes the notice of meeting to convene a
general meeting (the "General Meeting") at which the appropriate shareholder
authority will be sought. The General Meeting will be held at 9.30 am on
Wednesday, 4 March 2026 at 201 Bishopsgate, London, EC2M 3AE. Shareholders
present in person or by proxy will be able to participate in the vote.
The Circular has been submitted to the National Storage Mechanism ("NSM") and
will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The Circular is
also available on the Company's website, www.hendersonsmallercompanies.com
(http://www.hendersonsmallercompanies.com) .
For further information please contact:
Harriet Hall Nathan Brown and Matt Goss
PR Director, Investment Trusts Corporate Broking
Janus Henderson Investors Deutsche Numis Securities
Telephone: 020 7818 2919 Telephone: 020 7260 1426
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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