JPMorganUS Small Cos - Annual Financial Report
17/04/2026 07:00
RNS Number : 8374A JPMorgan US Smaller Co. IT 17 April 2026 LONDON STOCK EXCHANGE ANNOUNCEMENT JPMORGAN US SMALLER COMPANIES INVESTMENT TRUST PLC FINAL RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2025 Legal Entity Identifier: 549300MDD7SOXDMBN667 Information disclosed in accordance with the DTR 4.1.3 Highlights • NAV total return of -10.9% for the year ended 31st December 2025 in sterling terms, compared with +4.8% for the Russell 2000 benchmark (total return with net dividends reinvested) in sterling terms. Share price total return of -15.3% for the same period • Five-year cumulative NAV total return of +12.0% compared with +35.2% for the Benchmark; five-year share price cumulative total return of +2.7% • Ongoing Charges Ratio for the year was 1.00%. With effect from 1st January 2026, the management fee was reduced to 0.70% per annum on net assets up to £300 million, and 0.60% on all assets above that value. Previously, the fee was 0.70% per annum charged against gross assets, which included a fee on the investments funded by borrowings. This change is expected to benefit shareholders by lowering ongoing costs. • During the year, the Company repurchased 6,886,958 shares into Treasury (representing 11.4% of the share capital in issue at 31st December 2024) at an average discount of 9.3% • The Board has recommended a final dividend of 3.2p per share for the year ended 31st December 2025, subject to shareholder approval, making a total dividend of 3.2p per share for FY25, a slight increase on last year's total dividend of 3.1p per share. Dominic Neary, Chair, commented: "After a tough year for your Company it is concerning to have begun 2026 with increased uncertainty and volatility, which look likely to significantly impact inflation and growth prospects for some time to come. While we cannot control near-term geopolitical developments, we can make some hopeful observations in support of the outlook for your Company's portfolio for the long term. The valuations of US smaller capitalisation stocks relative to larger capitalisation stocks are now at historical lows, signalling that a rebound in smaller capitalisation stocks is well overdue. While the timing of any such recovery is difficult to judge, the outperformance of smaller companies in the latter half of 2025 suggests investors may already be starting to recognise the attractively-priced opportunities available in this area of the market. The Board believes that the Manager's disciplined approach will allow them to continue to identify and capitalise on opportunities to invest in great US companies. My fellow directors and I are confident that their efforts will ensure that the Company delivers strong performance to its shareholders over time, despite the market's recent preference for alternative investment styles." Don San Jose, Jon Brachle and Dan Percella, the Company's Portfolio Managers, commented: "Our portfolio seeks to invest in high-quality companies at a reasonable valuation. The increase in investor appetite for risk particularly around speculative themes such as meme stocks, bitcoin miners, and lower-quality companies, fuelled a rally that created significant headwinds for our investment approach during most of 2025. After a difficult 2025, where returns in US small cap companies were concentrated in a narrow group of AI-related stocks and focused on speculative themes, as we look ahead to 2026, we see promising opportunities across the sector. Our investment philosophy remains focused on finding companies with durable franchises, good management teams and stable earnings, that trade at a discount to their intrinsic value. We stand by our conviction that the investment case for smaller companies is appealing, especially for long-term investors as they include innovative companies that serve market niches and thereby can be a way to access innovation early in its development." CHAIR'S STATEMENT Introduction The Company's investment objective is to generate capital growth from investing in US smaller companies with a sustainable competitive advantage, that are run by proven management teams, and that trade at a discount to their intrinsic value. Total returns in 2025 significantly lagged the Company's benchmark, the Russell 2000 Index. The majority of the under-performance was realised over the three-month period from August to October when high expectations for the potential benefits of artificial intelligence (AI) drove related stocks to elevated levels. These market conditions proved very challenging for the Company, given its focus on high-quality, reasonably priced stocks. The Board regularly monitors and reviews the Investment Manager, their investment philosophy, process and the underlying investments in the Company's investment portfolio. In 2025 additional scrutiny of all aspects of the Company's investment management was undertaken in the face of performance challenges. Despite the recent setback, the Board believes that the Company's long-term investment philosophy, combined with the investment trust structure, continues to offer shareholders significant investment benefits over the long run. Further, the Board currently believes that the Manager's scale, resources and experienced investment team will serve the Company well over time. Shareholders also indicated their support for the Company's approach at the June 2025 Annual General Meeting (AGM) by voting for the continuation of the Company for a further five years. Market overview 2025 delivered record highs in US equity markets despite bouts of severe volatility. The year began on a positive note, thanks to initial optimism about the new administration's pro-growth agenda. This confidence gave way to concerns over tariffs, tighter immigration controls and shifting foreign policy priorities which were seen as inflationary and less supportive of growth. The market's negative reaction to these developments prompted some moderation in policy which was sufficient to calm market fears and clear the way for a significant market rebound in the second half of the year. This rally was led by the same very small cohort of high-growth technology and AI-oriented stocks that has driven market returns in recent years. Across the broader market, expensive, speculative growth stocks and lower quality names fared best, while other stocks lagged. Across the investment trust sector corporate activity remained elevated, with record M&A, high levels of share buybacks, and continued activist investor presence in the market. Performance Over the 12 months to 31st December 2025, the Company's net asset value (NAV) total return was -10.9%, underperforming the Russell 2000 Index which rose by 4.8%. The total return to shareholders was -15.3%, reflecting a widening in the share price discount to NAV from 1.8% at the end of 2024 to 6.7% on 31st December 2025. (The discount averaged 7.3% over the year). The significant short term underperformance of the benchmark reflects the narrow market breadth over the period; the shares of lower-quality, growth-oriented companies exposed to AI and related themes significantly outperformed the attractively-valued, higher-quality area of the market to which your portfolio is predominantly exposed. A full explanation of portfolio performance is provided in the Investment Manager's Report, along with details of recent portfolio activity and the Portfolio Managers' view on the outlook for the market and Company. Discount management, share issuance and buybacks The Board remains committed to active discount management to enhance shareholder value, and to minimise the discrepancy between the share price and the net asset value. Our ability to do so depends on the prevailing market conditions. With the Company trading at a discount to net asset value over the entirety of 2025 the Board's focus was on stimulating demand for the Company's shares. To this end we have two key levers at our disposal: an active, value-enhancing share buyback programme, and effective ongoing marketing activities. During the year to 31st December 2025 the Company repurchased 6,886,958 shares into treasury, representing 11.4% of the share capital in issue (excluding shares held in Treasury) at 31st December 2024, at an average discount of 9.3%. Since the period end a further 1,607,113 shares have been repurchased at an average discount of 8.0% as at 15th April 2026. Marketing activity remained strong over the year, promoting the Company as a vehicle to profitably 'Invest in the Heart of America,' through shareholder events, and regular video and article updates from the Investment Manager (available on the Company's website). Since the year end the Company launched its LinkedIn page www.linkedin.com/company/jpmorgan-us-smaller-companies-investment-trustplc where shareholders can follow updates and thought pieces related to the Company. Dividend The Board is delighted to recommend the payment of a dividend of 3.2p in respect of the financial year ended 31st December 2025 (2024: 3.1p). Subject to shareholders' approval at the forthcoming AGM, this dividend will be paid on 10th July 2026 to shareholders on the register at the close of business on 12th June 2026. The ex-dividend date is 11th June 2026. The Company's objective is unchanged and remains one of capital growth. The dividend distribution amount will normally be driven by the minimum dividend required to maintain the Company's investment trust status. Therefore, the dividend level may fluctuate as the distributions typically reflect the naturally occurring income on the underlying portfolio. Gearing The Board believes that the use of gearing is a key advantage of the investment trust structure. Our policy is to adjust gearing levels according to the Board and Manager's long-term expectations for market returns. At the beginning of the year, the Company had fully drawn down its US$30 million revolving credit facility with Scotiabank. The Board renewed the loan facility in March 2025 with a new provider, Bank of America. This new facility is for US$35 million, with a US$5 million accordion option. As at 31st December 2025, the Company had drawn down US$35 million (£26 million) and closed the year with gearing of 9.7% (2024: 7.7%). Board and succession planning In January 2026, the Board, through its Nomination Committee, carried out a comprehensive evaluation of the Board, its committees, the individual Directors and the Chair. Topics discussed included the size, composition and diversity of the Board, Board processes and information sources, shareholder engagement, and Director training and accountability. The resulting report demonstrated that the Board is working effectively for shareholders and in line with expectations. Additionally, the Board meets the FCA Listing Rules targets on gender diversity, female representation in a senior role, and ethnic representation. The Board has detailed succession plans in place. These are particularly important for a small board to ensure that no discontinuity is caused by the retirement of non-executive directors after nine years' service, according to our policy, and as recommended by the Association of Investment Companies' Code of Corporate Governance. In line with our succession framework, Shefaly Yogendra will retire from the Board at the conclusion of the 2026 AGM. On behalf of the Board and shareholders I would like to thank Shefaly for her dedication to the Company and her insightful challenge and support over the nine years she has served as a director. Further, as announced on 26th March 2026, Christopher Metcalfe retired on 1st April 2026 after over seven years on the Board. We would like to thank Christopher for his guidance and significant contributions to the Company over his tenure, including his additional responsibilities as Senior Independent Director. Shefaly and Christopher will be missed, and we wish them both well in their future endeavours. With effect from 1st April 2026, Mandy Donald has assumed the role of the Senior Independent Director of the Company. The Board appointed an external executive search firm to assist in the recruitment of a new Director in 2025, and we were delighted to announce the appointment of Cindy Rampersaud, effective 1st November 2025. Cindy is a senior leader with over 25 years of executive and 15 years of board experience across a range of sectors including the publishing, technology and music industries. Her current roles include Deputy Chair and Audit and Risk Committee Chair of the UK Health Security Agency, and Non-Executive Director at Sage Homes. The Board has recently appointed an external executive search firm to aid in the recruitment of a new Director following Christopher Metcalfe's departure. The recruitment process is underway and we expect to announce the appointment of a new director by, or shortly after, the AGM on 15th June 2026. As a result of these changes Dominic Neary and Mandy Donald will offer themselves for re-appointment at the forthcoming AGM, while Cindy Rampersaud will offer herself for appointment for the first time. Review of Manager Services and Fees During the year, the Board, through its Management Engagement Committee, carried out a thorough review of the investment management, secretarial and marketing services provided to the Company by the Manager. As part of this review a reduction to the investment management fee arrangement was agreed. With effect from 1st January 2026, a fee of 0.70% per annum will be charged on net assets (i.e. excluding borrowed funds) up to £300 million, and 0.60% per annum on all assets above that value. Previously the fee was 0.70% per annum charged against gross assets (excluding any holdings in the JPMorgan Liquidity Fund), which included a fee on the investments funded by borrowings. Following this review the Board has concluded that the continued appointment of the Manager on the terms agreed is in the interests of the shareholders. Portfolio Company Engagement As detailed in the Manager's Investment Process on pages 16 to 19 of the Annual Report, extensive engagement with company management teams is a vital element of stock selection. Company engagement is led by the Portfolio Managers and analysts with the intention of gaining a full insight into the attractiveness of a company, and the outlook for its shares. This incorporates a deep understanding of the company's current health, strategic direction, competitor landscape and its future prospects. In addition, focus is placed on assessing how various financially material ESG factors may affect the risk profile of the business. The Board shares the Investment Manager's view of the importance of this combined approach to company engagement as a central component of the investment process in seeking to deliver attractive risk-adjusted returns for shareholders. Annual General Meeting The Board invites shareholders to join us in person for the Company's AGM to be held on Monday, 15th June 2026 at 2.30 p.m. at 60 Victoria Embankment, London EC4Y 0JP. We hope to welcome as many shareholders as possible. As with previous years, shareholders will have the opportunity to hear from the Portfolio Managers. Their presentation will be followed by a question-and-answer session. There will be refreshments afterwards when shareholders will be able to meet members of the Board. Shareholders wishing to follow the AGM proceedings but choosing not to attend in person will be able to do so online and will be able to ask questions through conferencing software. Details on how to register together with access details can be found on the Company's website: www.jpmussmallercompanies.co.uk, or by contacting the Company Secretary at jpmam.investment.trusts@jpmorgan.com. In accordance with best practice, all voting on the resolutions will be conducted on a poll. Shareholders viewing the meeting via conferencing software will not be able to vote on the poll and we therefore encourage all shareholders, and particularly those who cannot attend physically, to submit their proxy votes in advance of the meeting, so that they are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically. Detailed instructions are included in the Notes to the Notice of Annual General Meeting in the Annual Report. Please ensure that you act promptly on the notifications for voting, and that you contact your share platform or wealth manager by their stipulated deadline to ensure that your votes are submitted on time. In addition, shareholders are encouraged to send any questions ahead of the AGM to the Board via the Company Secretary at the email address above. We will endeavour to answer relevant questions at the meeting or via the website depending on arrangements in place at the time. If there are any changes to the above AGM arrangements, the Company will update shareholders through its website and, as appropriate, through an announcement on the London Stock Exchange. My fellow Board members, representatives of JPMorgan and I look forward to the opportunity to meet and speak with shareholders after the formalities of the meeting have been concluded. Outlook After a tough year for your Company it is concerning to have begun 2026 with increased uncertainty and volatility, driven by the recent developments in Iran and the wider Middle East, which look likely to significantly impact inflation and growth prospects for some time to come. While we cannot control near-term geopolitical developments, we can make some hopeful observations in support of the outlook for your Company's portfolio for the long-term. First, the valuations of US smaller capitalisation stocks relative to larger capitalisation stocks are now at historical lows, signalling that a rebound in smaller capitalisation stocks is well overdue. While the timing of any such recovery is difficult to judge, particularly in light of recent events, the outperformance of smaller companies in the latter half of 2025 suggests investors may have been starting to recognise the attractively-priced opportunities available in this area of the market. The Board believes that the Manager's disciplined approach will allow them to continue to identify and capitalise on opportunities to invest in great US companies. My fellow directors and I are confident that their efforts will ensure that the Company delivers strong performance to its shareholders over time, despite the market's recent preference for alternative investment styles. We thank you for your patience and support. Stay informed The Company delivers email updates with regular news and views, as well as up-to-date performance data. If you have not already signed up to receive these communications and you wish to do so, you can opt in via https://tinyurl.com/JUSC-Sign-Up or by scanning the QR code on page 2 of the Annual Report. Further, the Board and I are keen to continue to develop our relationship with shareholders, and we therefore welcome your questions and observations via email at JUSC.Chair@jpmorgan.com. Dominic Neary Chair 16th April 2026 INVESTMENT MANAGER'S REPORT Market Review 2025 will be remembered as a year of extraordinary uncertainty for investors, yet markets ultimately delivered impressive results. The S&P 500 posted a robust return of +17.9% in US dollar terms, marking its third consecutive year of double-digit gains, while the Russell 2000 Index returned +12.8% in US dollar terms. This remarkable climb came despite a lack of clarity on US tariffs, uncertainty about the trajectory of interest rates, concerns about the durability of AI-driven growth, and the longest government shutdown in US history. The year began with a period of significant volatility. In the first four months, US equities neared bear market territory as the US administration's approach to tariff and other key policies left investors on unstable ground. A sharp April sell-off, led by the 'Magnificent 7' tech giants, and growing doubts about the sustainability of AI's momentum, added to the turbulence as the year progressed. The S&P 500 fell 19% from peak to trough before bottoming on April 8, then rallied by an impressive 39% through to year-end. Notably, corporate earnings growth proved more resilient to tariffs than many had anticipated. Investors were also troubled by the uncertain direction of monetary policy. The Federal Reserve paused its rate-cutting cycle in the first half of the year, responding to fears about tariff-induced price pressures and recession. As conditions stabilised, the Fed resumed cuts in September, delivering three 25 basis point reductions before year-end. This contributed to a 40-basis point decline in the 10-year Treasury yield, which closed the year at 4.17% - its first year-on-year decline since 2020. Late in the year, the government shut down for 43 days in October and November, suspending normal government business, including public services, payments and some data releases. Despite these inconveniences, markets continued to post gains, consistent with historical patterns during extended closures. Congress reached a deal in mid-November, clearing the way for the resumption of regular government activity. Against this challenging backdrop, the S&P 500 demonstrated remarkable resilience, surging to record highs by year-end. Behind the strong returns, market leadership in 2025 remained narrow; 10 stocks drove 60% of the S&P 500's return, while roughly 355 stocks (more than 60% of the benchmark) underperformed the market, with nearly 190 stocks (15% of the benchmark) declining over the year. Within the small cap space, we saw a similar overall picture: the Russell 2000 Index fell 24% from peak to trough, its worst ever drawdown, before bottoming in early April. The index then rallied an impressive 42% through to year-end. For the full year, the Russell 2000 Index posted a +12.8% gain in US dollar terms, though this performance trailed large caps for the fifth consecutive year. As in the large cap sector of the market, the year was characterised by very narrow market breadth, with AI and related themes propelling index returns. The market environment favoured growth-oriented investments and speculative activity in a variety of industries such as quantum computing, bitcoin miners, nuclear power and flying taxis. Considerations related to fundamental business quality were overshadowed, and quality factors like profitability and valuation underperformed significantly. As a result, returns were notably concentrated, with the top 10 contributors driving 28% of the Russell 2000's gains for the year. Four of the top five contributors had AI exposure. Despite this concentration in returns, most sectors of the index rose over the year. Telecommunications, basic materials and health care were the top performing sectors, while consumer staples and consumer discretionary were the main detractors. The following chart provides an overview of the returns of different investment styles in the US market during 2025, as well as the sector performance of the Russell 2000 over the year. Large, Mid, and Small represent the size of the companies by market capitalisation. A value style represents companies that are trading at lower valuations relative to fundamentals, while a growth style represents companies priced for faster-than-average future earnings expansion, often at higher valuations. 2025 US Equity Market Performance (in US$)
| 2025 | Value | Blend | Growth |
| Large | 15.9% | 17.9% | 18.6% |
| Mid | 11.0% | 10.6% | 8.7% |
| Small | 12.6% | 12.8% | 13.0% |
| % | % | |
| Contributions to total returns | ||
| Benchmark return | 4.8 | |
| Asset Allocation | 0.4 | |
| Stock Selection* | (16.5) | |
| Investment Manager Contribution | (16.1) | |
| Portfolio total return | (11.3) | |
| Impact of cash/gearing* | 0.5 | |
| Management fee and Other administrative expenses | (1.0) | |
| Share buybacks | 0.9 | |
| Other effects | 0.4 | |
| Net Asset Value total return | (10.9) | |
| Share Price total return | (15.3) |
| Change in risk | |||
| status during | |||
| Principal risk | Description | Mitigating activities | the year |
| Demand driven factors | |||
| Lack of demand for shares | Demand for the Company's shares may fall due to: • Reduced interest in investment in the US market. • Competing products and technologies (e.g. ETFs). • Poor performance. • Real or spurious adverse publicity about the Company or the Manager. • Reduced UK equity market depth. | • The Manager's sales team works with the Company's broker to engage existing and potential shareholders throughout the year, especially in times of volatile markets and periods of under-performance (also see Underperformance section below). • The Manager and broker provide sales activity updates to the Board and are available to discuss issues throughout the year. • The Manager's marketing activity is tailored to reach retail shareholders, who make up a significant part of the shareholder base. | ã |
| Hostile shareholder action | • Activist, arbitrage or hostile shareholder activity could increase volatility and distract from normal business. | • The share register is monitored and significant transactions are reviewed. • The Manager regularly discusses developments with the Company's broker and reports these to the Board. • The Board seeks broker feedback on major shareholder movements and market sentiment. • Board and Chair actively encourage communication with shareholders. | áâ |
| Shareholder communication challenges | Increasing structural barriers within the investment trust community/sector to: • Direct and regular communication with shareholders. • Engagement around shareholder meetings and important votes. | • The Manager runs an investor communication programme, including meetings and presentations for major institutional investors and wider communications via different channels. • The Board meets major institutional shareholders, responds to questions raised at AGMs and during the year, and oversees shareholder communications. • Retail shareholders are contacted through formal notifications (including signposting interim and annual reports) and encouraged to register for Company updates. • The Board monitors the Manager's sales, marketing and PR activity and challenges the Manager where appropriate. | áâ |
| Supply driven factors | |||
| Underperformance | Underperformance of the benchmark and/or peers may be caused by: • Market cyclicality, leading to sustained underperformance of style-biased investment strategies. • Inappropriate investment decisions (e.g. poor asset allocation and gearing). | • A broadly diversified portfolio is managed within Board‑approved investment guidelines and restrictions. • The Manager monitors investments and provides the Board with timely reporting (including performance, attribution, liquidity and risk analysis). • The Board regularly reviews results and the investment process, and challenges the Portfolio Managers at Board meetings. • Additional oversight is provided through periodic reviews by the Manager's senior investment leadership, and the Board holds a dedicated annual strategy session. | ã |
| Outsourcing | Disruptions (including cyber incidents) at key service providers could: • Disrupt accounting, reporting, dealing, payments, or record‑keeping. • Increase the risk of loss or misappropriation of assets. | • The Board oversees the services provided by the Manager and key providers and reviews the related risk management and internal controls framework. • The Manager has dedicated cyber security resources to identify and address threats. • The Manager maintains and tests business continuity and disaster recovery arrangements (including alternative sites and remote working). • Cyber controls, business continuity testing, and mitigation plans are reported to the Board, including planning for loss of office access. | áâ |
| Cyber Crime | Cyber attacks on the Manager, its affiliates and its systems could: • Disrupt operations or compromise information. • Result in denial of service and/or ransomware. | • The Manager runs a cyber security management programme with a dedicated annual budget and has a third‑party oversight team which sets governance expectations and enforces policies and standards for outsourced providers. • The Company benefits directly and/or indirectly from all elements of JPMorgan's Cyber Security programme. • Controls are regularly tested, with updates reported through the quarterly risk process to relevant Board/Audit committee forums. • Key technology and physical security controls are independently audited on a regular cycle against recognised standards. • The Company and Manager obtain assurance from major service providers that appropriate cyber security and resilience practices are in place. | áâ |
| Investment Team changes | An unexpected change of Portfolio Manager(s) or loss of the Investment Team could: • Disrupt the investment process. • Impact investment performance. • Damage the Company's reputation. | • The Board seeks and obtains periodic assurance that the Manager has effective succession planning and a team‑based approach to reduce reliance on individuals. • The Board engages with the Manager's senior leadership to monitor this risk and the related actions. | áâ |
| Market environment | |||
| Market and Economic | Market factors (e.g. geopolitical events, interest rate and inflation concerns) and change in regulation may: • Impact economic growth. • Change investors' risk appetites. • Reduce the value of the Company's investments. • Affect performance. | • Risk is partly managed through diversification and ongoing review of investment strategy and portfolio construction with the Manager. • The Board oversees asset allocation, stock selection and gearing within agreed guidelines and monitors how the investment process is being implemented. • The Board can draw on the Manager's market strategists and, where needed, external experts. • If appropriate, and with shareholder approval where required, the Board can change the investment policy and objectives to reflect market conditions. | ã |
| Change in risk | |||
| status during | |||
| Emerging risk | Description | Mitigating activities | the year |
| Emerging risk | |||
| Artificial Intelligence (AI) | AI has become a powerful tool that will impact a huge range of areas. It could: • Be a significant driver for new business. • Be a disrupter to current business models and processes. • Lead to emerging uncertainty in corporate valuations. • Lead to an increased potential risk from cyber related crime. | • The Manager's investment process integrates financially material considerations of the impact of AI when taking investment decisions. • The Board works with the Manager to monitor the developments concerning AI and its potential impact on the portfolio, our service providers and the wider market. | ã |
| Year ended | Year ended | |||||
| 31st December 2025 | 31st December 2024 | |||||
| Revenue | Capital | Total | Revenue | Capital | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Net (losses)/gains on investments held at fair value | ||||||
| through profit or loss | - | (35,610) | (35,610) | - | 28,833 | 28,833 |
| Net foreign currency gains/(losses) | - | 1,301 | 1,301 | - | (383) | (383) |
| Income from investments | 3,422 | - | 3,422 | 3,466 | 97 | 3,563 |
| Interest receivable | 314 | - | 314 | 579 | - | 579 |
| Gross return/(loss) | 3,736 | (34,309) | (30,573) | 4,045 | 28,547 | 32,592 |
| Management fee | (387) | (1,548) | (1,935) | (407) | (1,626) | (2,033) |
| Other administrative expenses | (610) | - | (610) | (572) | - | (572) |
| Net return/(loss) before finance costs and taxation | 2,739 | (35,857) | (33,118) | 3,066 | 26,921 | 29,987 |
| Finance costs | (279) | (1,117) | (1,396) | (256) | (1,021) | (1,277) |
| Net return/(loss) before taxation | 2,460 | (36,974) | (34,514) | 2,810 | 25,900 | 28,710 |
| Taxation | (494) | - | (494) | (489) | - | (489) |
| Net return/(loss) after taxation | 1,966 | (36,974) | (35,008) | 2,321 | 25,900 | 28,221 |
| Return/(loss) per ordinary share | 3.39p | (63.77)p | (60.38)p | 3.74p | 41.72p | 45.46p |
| Called up | Share | Capital | ||||
| share | premium | redemption | Capital | Revenue | ||
| capital | account | reserve | reserves1 | reserve1 | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 31st December 2023 | 1,638 | 45,758 | 1,851 | 226,987 | 3,491 | 279,725 |
| Repurchase of ordinary shares into Treasury | - | - | - | (12,242) | - | (12,242) |
| Repurchase and cancellation of forfeited shares2,3 | (3) | - | 3 | (42) | - | (42) |
| Net return | - | - | - | 25,900 | 2,321 | 28,221 |
| Dividends paid in the year (note 10) | - | - | - | - | (1,890) | (1,890) |
| Forfeiture of unclaimed dividends (note 10)2 | - | - | - | - | 17 | 17 |
| At 31st December 2024 | 1,635 | 45,758 | 1,854 | 240,603 | 3,939 | 293,789 |
| Repurchase of ordinary shares into Treasury | - | - | - | (26,717) | - | (26,717) |
| Net (loss)/return after taxation | - | - | - | (36,974) | 1,966 | (35,008) |
| Dividends paid in the year (note 10) | - | - | - | - | (1,830) | (1,830) |
| At 31st December 2025 | 1,635 | 45,758 | 1,854 | 176,912 | 4,075 | 230,234 |
| At | At | |
| 31st December | 31st December | |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Fixed assets | ||
| Investments held at fair value through profit or loss | 252,670 | 316,510 |
| Current assets | ||
| Debtors | 235 | 265 |
| Current asset investments | 1,168 | 1,265 |
| Cash at bank | 2,545 | 10 |
| 3,948 | 1,540 | |
| Current liabilities | ||
| Creditors:amounts falling due within one year | (26,384) | (24,261) |
| Net current liabilities | (22,436) | (22,721) |
| Total assets less current liabilities | 230,234 | 293,789 |
| Net assets | 230,234 | 293,789 |
| Capital and reserves | ||
| Called up share capital | 1,635 | 1,635 |
| Share premium account | 45,758 | 45,758 |
| Capital redemption reserve | 1,854 | 1,854 |
| Capital reserves | 176,912 | 240,603 |
| Revenue reserve | 4,075 | 3,939 |
| Total shareholders' funds | 230,234 | 293,789 |
| Net asset value per ordinary share | 428.5p | 484.6p |
| Year ended | Year ended | |
| 31st December | 31st December | |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Cash flows from operating activities | ||
| Net (loss)/return before finance costs and taxation | (33,118) | 29,987 |
| Adjustment for: | ||
| Net losses/(gains) on investments held at fair value through profit or loss | 35,610 | (28,833) |
| Net foreign currency (gains)/losses | (1,301) | 383 |
| Dividend income | (3,422) | (3,563) |
| Interest income | (314) | (579) |
| Realised (losses)/gains on foreign exchange transactions | (76) | 44 |
| Realised foreign currency exchange losses on JPMorgan USD Liquidity Fund | (410) | (464) |
| (Increase)/decrease in other debtors | (7) | 1 |
| (Decrease)/increase in accrued expenses | (49) | 62 |
| Net cash outflow from operations before dividends, interest and taxation | (3,087) | (2,962) |
| Dividends received | 2,946 | 3,009 |
| Interest received | 314 | 657 |
| Overseas withholding tax recovered | 19 | 29 |
| Net cash inflow from operating activities | 192 | 733 |
| Purchases of investments | (90,096) | (120,370) |
| Sales of investments | 118,326 | 116,679 |
| Net cash inflow/(outflow) from investing activities | 28,230 | (3,691) |
| Dividends paid | (1,830) | (1,890) |
| Refund from forfeiture of unclaimed dividends | - | 17 |
| Net cost of repurchasing and cancelling forfeited shares1 | - | (42) |
| Repurchase of ordinary shares into Treasury | (26,616) | (12,242) |
| Repayment of bank loan2 | (23,228) | (7,850) |
| Draw down of bank loan2 | 27,099 | 7,888 |
| Loan interest paid | (1,392) | (1,305) |
| Net cash outflow from financing activities | (25,967) | (15,424) |
| Increase/(decrease) in cash and cash equivalents | 2,455 | (18,382) |
| Cash and cash equivalents at start of year | 1,275 | 19,237 |
| Foreign currency exchange movements | (17) | 420 |
| Cash and cash equivalents at end of year | 3,713 | 1,275 |
| Cash and cash equivalents consist of: | ||
| Cash at bank | 2,545 | 10 |
| Current asset investment in JPMorgan USD Liquidity Fund | 1,168 | 1,265 |
| Total | 3,713 | 1,275 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| Dividend paid | ||||
| Final dividend in respect of prior year | 3.1 | 1,830 | 3.0 | 1,890 |
| Total dividends paid in the year | 3.1 | 1,830 | 3.0 | 1,890 |
| Forfeiture of unclaimed dividends over 12 years | - | - | - | (17) |
| Net dividends | 3.1 | 1,830 | 3.0 | 1,873 |
| 2025 | 2024 | |||
| Pence | £'000 | Pence | £'000 | |
| Final dividend | 3.2 | 1,720 | 3.1 | 1,879 |
| Total dividend for Section 1158 purposes | 3.2 | 1,720 | 3.1 | 1,879 |
| 2025 | 2024 | |
| £'000 | £'000 | |
| Revenue return | 1,966 | 2,321 |
| Capital (loss)/return | (36,974) | 25,900 |
| Total (loss)/return | (35,008) | 28,221 |
| Weighted average number of ordinary shares, excluding Treasury shares, in issue | ||
| during the year | 57,978,084 | 62,082,503 |
| Revenue return per ordinary share | 3.39p | 3.74p |
| Capital (loss)/return per ordinary share | (63.77)p | 41.72p |
| Total (loss)/return per ordinary share | (60.38)p | 45.46p |
| 2025 | 2024 | |
| Net assets (£'000) | 230,234 | 293,789 |
| Number of ordinary shares in issue | 53,735,306 | 60,622,264 |
| Net asset value per ordinary share | 428.5p | 484.6p |