REG - JPMorganUS Small Cos - Half-year Report
12/09/2025 14:45
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RNS Number : 1992Z JPMorgan US Smaller Co. IT 12 September 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN US SMALLER COMPANIES INVESTMENT TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH JUNE 2025
Legal Entity Identifier: 549300MDD7SOXDMBN667
Information disclosed in accordance with the DTR 4.1.3
The Directors of JPMorgan US Smaller Companies Investment Trust plc (the
'Company') announce the Company's results for the six months ended 30th June
2025.
Highlights:
· NAV total return of -12.4% vs -10.3% for the Russell 2000 Index
in sterling terms, the 'Benchmark'. Total return to shareholders of -18.7%.
· For the ten year period ended 30th June 2025, NAV total return of
+140.3% compared to the benchmark Russell 2000 Index return of +123.7%. The
total return to shareholders over the same period was +132.4%.
· The Company maintained a gearing level of 7.2% as of 30th June
2025. During the period, the Company renewed its loan facility, drawing US$35
million (£25.5 million) from Bank of America, with an additional US$5 million
accordion option available.
· The Company repurchased 2,402,534 shares into Treasury at an
average discount of 8.2% during the review period, as part of its active
discount management program. Since the period end, a further 1,183,946 shares
have been purchased.
· The ongoing charges ratio was 0.96% (annualised) for the six
months ended 30th June 2025, compared to 0.92% for the year ended 31st
December 2024.
The Chair, Dominic Neary, commented:
'While performance in the first half was disappointing when compared with the
benchmark, it was not unexpected given the Company's investment style and the
market backdrop. The Board remains firmly supportive of the Managers'
disciplined approach, which has delivered strong long-term performance through
market cycles. The Managers continue to invest in high-quality,
entrepreneurial companies at the heart of the US economy, where we believe the
best long-term opportunities lie.'
Portfolio managers, Don San Jose, Jon Brachle and Dan Percella, commented:
'Small cap earnings have been challenged by an uneven macro environment,
including inflationary increases, high interest rates and weak industrial
demand. It is important for shareholders to bear in mind that while long
periods of underperformance by US small caps are normal throughout the history
of this sector, they are often followed by strong outperformance.
We believe earnings growth can broaden out as re-shoring, deregulation, and
clarity around interest rate and tariffs boost domestic investment and
corporate sentiment. These conditions, combined with attractive relative
valuations, suggest that history is set to repeat itself, and we believe the
portfolio is well-positioned to benefit from the next bout of small cap
outperformance.'
CHAIR'S STATEMENT
Dear Shareholders,
The first half of 2025 was marked by contrasting forces in US equity markets.
Major indices reached record highs and volatility remained elevated. Initial
optimism around the new administration's pro-growth agenda quickly gave way to
concerns over tariffs, tighter immigration policy and shifting foreign policy
priorities, which were seen as less supportive of growth. Although the market
recovered towards the period end, the rally in US smaller companies was led by
lower-quality businesses, creating headwinds for our disciplined,
quality-focused investment approach.
Across the investment trust sector, corporate activity continued to run at
record levels. In the first half of 2025, buybacks totalled £4.6 billion,
exceeding the record set in the prior year, alongside £4.2 billion of cash
returns to shareholders via tenders and wind-downs. The average discount on
investment trusts narrowed modestly to 13.5% from 16% at the end of 2024, but
North American mandates saw discounts widen - a trend to which your Company
was not immune.
Performance
Over the six months to 30th June 2025, the Company's net asset value (NAV)
total return was -12.4%, underperforming the Russell 2000 Index which fell by
10.3%. A full explanation of portfolio performance is provided in the
Investment Manager's Report.
The total return to shareholders was -18.7%, reflecting a widening in the
share price discount to NAV from 1.8% at the end of 2024 to 8.8% on 30th June
2025 (average 5.4%).
Discount Management
The Board remains committed to active discount management, and accordingly the
Company repurchased 2,402,534 shares into Treasury at an average discount of
8.2% during the review period. Since the period end a further 1,183,946 shares
have been purchased.
Continuation Vote
At the AGM in June, shareholders voted in favour of the continuation of the
Company for a further five years. On behalf of the Board, I thank you for
this support. We believe strongly that the investment trust structure,
combined with our long-term investment philosophy, continues to offer
shareholders significant benefits.
Gearing
The Company ended the period with gearing of 7.2%. At the beginning of the
year the Company had fully drawn down its US$30 million (including the
accordion) 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.
Board and Succession Planning
All Directors were re-elected at the June AGM. The Board currently consists of
four non-executive Directors, with an appropriate balance of skills, diversity
and experience. In line with our succession planning framework, Shefaly
Yogendra will retire at the 2026 AGM. Following a search process with an
external adviser, we are delighted to confirm the proposed appointment of
Cindy Rampersaud as a Non-Executive Director with effect from 1st November
2025; she will stand for election to the Board by shareholders at the next
AGM. Cindy is currently a Non-Executive Director of Sage Homes, the Deputy
Chair and Audit and Risk Chair of the UK Health Security Agency, and a
Non-Executive Director and a member of the council at Which? Consumer
Association. Her previous roles include being Senior Independent Director and
Audit and Risk Chair of the Hipgnosis Song Fund.
Outlook
While performance in the first half was disappointing when compared with the
benchmark, it was not unexpected given the Company's investment style and the
market backdrop. The Board remains firmly supportive of the Managers'
disciplined approach, which has delivered strong long-term performance through
market cycles. The Managers continue to invest in high-quality,
entrepreneurial companies at the heart of the US economy, where we believe the
best long-term opportunities lie. Many of the conditions that have
historically favoured this style are now in place, and while the timing of a
recovery remains uncertain, we are confident that patient shareholders will be
rewarded.
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 in the Half Year
Report.
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
12th September 2025
INVESTMENT MANAGER'S REPORT
Market Review
At the halfway mark of the Company's financial year, the S&P 500 achieved
returns of +6% in US dollar terms. The six months to end June 2025 (1H 2025)
saw US equity markets reach record highs. However, the period was also
characterised by significant volatility in US equities, driven by geopolitical
tensions and policy uncertainties. Initially, optimism prevailed as the
S&P 500 reached a record high in February, buoyed by expectations of US
'exceptionalism' under a new Republican administration. However, this optimism
quickly faded due to growth fears, tariff uncertainties, and cracks in the AI
growth narrative, leading to sharp declines in the S&P 500, Nasdaq 100,
and Russell 2000. These indices declined by 4.3%, 10.3%, and 9.5%,
respectively, in the first quarter of 2025 (1Q 2025) - their worst quarterly
performance since 2022. Big Tech companies, particularly the US's 'Magnificent
7,' fell into bear market territory, contributing significantly to the
downturn. Meanwhile, Treasuries rallied, although 10-year yields fluctuated
throughout the period, reflecting the market's response to changing economic
conditions. In March, President Trump's aggressive tariff threats added to the
uncertainty, affecting both corporate and consumer confidence. Fears of
stagflation emerged, fuelled by the US Federal Reserve's March summary of
economic projections, which showed upward revisions to its projections of both
the unemployment rate and core inflation to 4.4% and 2.8%, respectively, by
the end of 2025.
Despite these challenges, US equities showed resilience. Following the sharp
sell-off in the 1Q 2025, which continued in early April, major indices
rebounded impressively, ending the period at, or near, record highs, with the
S&P 500 returning close to 11.0% in 2Q 2025. Investor confidence was
restored thanks to some easing of trade tensions, combined with solid
employment and corporate earnings reports and continued tame inflation data. A
resurgence in the 'AI trade' added to the 'risk-on' market mood. US small
caps entered a new bull market, led by the more speculative pockets of the
market, although this was not sufficient to fully recoup 1Q 2025's losses.
Large-cap stocks, as represented by the S&P 500 Index, returned +6% in US
dollar terms, and -3% in GBP terms, due to the appreciation of sterling
against the US dollar. Large caps outperformed the Company's benchmark, the
small-cap Russell 2000 Index, which declined by 2% in US dollar terms, and by
10.3% in GBP terms. In terms of style, both value and growth posted similar
returns.
Performance
The Company's net asset value decreased by 12.4% (in GBP terms) in 1H 2025,
underperforming its benchmark by 2.1 percentage points. Consistent with prior
bear markets, the 2Q 2025 rally in small cap stocks was led by low-quality
factors, which was a headwind to our performance, given our preference for
higher-quality names.
Stock selection was the primary driver of underperformance, with the consumer
staples and industrial sectors being the largest detractors. Within consumer
staples, our exposure to Freshpet, a pet food supplier, was the largest
detractor. The stock performed very strongly in 2024 but weakened in 1H 2025
primarily due to a noticeable slowdown in sales growth, which led to a
reduction in the company's 2025 guidance. While Freshpet maintained its focus
on margins and cash generation, the market reacted negatively to the revised
outlook. However, we maintain conviction in the investment case for Freshpet,
due to its potential for growing market share in the sector. We took the
opportunity created by recent share price weakness to add to our position.
Within industrials, our exposure to Aaon, which makes air conditioning and
heating equipment, and WillScot, a rental and leasing services business, hurt
performance. Aaon declined during the review period, mainly due to challenges
in its rooftop heating, ventilation and air conditioning segment, which
struggled with supply chain issues and a transition to new refrigerant
components. Additionally, weaker non-residential construction activity and
facility start-up costs further pressured margins and production rates,
leading to caution about the outlook despite strong growth in the data centre
market. We added to Aaon on weakness, as we believe the long-term case for the
company, including its alignment to data centre growth, remains compelling.
WillScot fell in 1H 2025, mostly due to a decrease in leasing revenues and
modular volumes, which were affected by seasonal weakness and higher interest
rates. The company's margins were further pressured by a mix of unit sales,
leading to a drop in earnings margins. Additionally, there was uncertainty
related to US tariff policy and its potential impact on demand in the latter
half of the year and beyond. Despite some positive indicators in quoting
activity and order books, these challenges created investor concerns and
pushed the share price lower. Nonetheless, we retain the position as we remain
confident in Willscot as the company should be well-positioned once the cycle
turns. Our large holding is a reflection of this confidence.
On the other hand, our stock selection in the technology and consumer
discretionary sectors contributed to performance. Within technology, our
exposure to Allegro Microsystems, a semiconductor producer, was the largest
contributor. This stock benefited from signs of cyclical improvement and
strong forward-looking indicators, such as increased orders and healthy demand
for inventory held by distributors and wholesalers. Despite temporary gross
margin softness, the company provided optimistic guidance for future quarters,
supported by strategic innovation and a focus on key growth areas like
electric vehicles and advanced driver-assistance systems. These factors, along
with a reaffirmation of its long-term earnings potential, boosted investor
confidence.
Within consumer discretionary, our exposure to BJ's Wholesale Club, a discount
retailer, contributed positively to performance. The share price increased due
to the business's consistent ability to drive traffic and membership growth;
both of these metrics have risen for 13 consecutive quarters. The company
successfully expanded its merchandise offerings and improved gross margins,
appealing to consumers with its value-focused approach. Despite macroeconomic
uncertainties and tariff concerns, BJ's maintained its fiscal year guidance,
illustrating its resilience and strong market position.
Among individual names, our exposure to RBC Bearings, a manufacturer of
precision bearings and components, proved beneficial. The company saw robust
revenue growth in its aerospace and industrial segments, driven by strong
demand in several plants and positive revenue synergies from its 2021
acquisition of its competitor, Dodge Mechanical Power Transmission. The
company reported better-than-expected gross margins and a bullish outlook for
commercial aerospace growth, supported by Boeing's production ramp-up.
Investors have also welcomed RBC's ability to manage the adverse impact of
tariffs so far and its strategic focus on high-demand markets.
Portfolio Positioning
We continue to focus on quality stocks. In the first quarter, we took profits
in many of our defensive outperformers which began to look expensive, and
added to high quality cyclicals that had become more attractively valued
during the market sell-off seen in the first four months of the year. More
recently, we've seen less value in cyclical names, as these performed strongly
in 2Q 2025, while quality defensives lagged, so we have been increasing our
exposure to these types of stocks at more attractive levels.
Our largest absolute and relative overweight remains in industrials, where we
continue to find compelling stock opportunities that meet our focus on high
quality businesses and management teams, and our second largest overweight is
within financials which is supported by our expectation of changes in the
interest rate environment as well as potential for de-regulation. On the other
hand, our largest underweights remain in the health care, technology, real
estate and telecommunications sectors, where we struggle to find high-quality
companies at compelling valuations.
Market Outlook
US small caps have lagged large caps for several years. Small cap earnings
have been challenged by an uneven macro environment, including inflationary
cost increases, high interest rates and weak industrial demand. Large caps, on
the other hand, have a greater capacity to cope with temporary macro shocks
and higher rates, and large cap earnings have benefited more directly from
significant investment in AI infrastructure. However, it is important for
shareholders to bear in mind that while long periods of underperformance by US
small caps are normal throughout the history of this sector, they are often
followed by strong outperformance. Further, small cap valuations relative to
large caps are now at historically attractive levels, while large cap index
concentration is near levels that have historically heralded periods of small
cap outperformance.
At the same time, the outlook for US equities looks promising. We believe
earnings growth can broaden out as re-shoring, deregulation, and clarity
around interest rate and tariffs boost domestic investment and corporate
sentiment. This would benefit more economically sensitive areas of the market,
including small caps, which generate 80% of earnings in the US and are very
well represented in market indices, via high sector weightings in industrials,
financials and materials. These conditions, combined with attractive relative
valuations, suggest that history is set to repeat itself, and we believe the
portfolio is well-positioned to benefit from the next bout of small cap
outperformance.
For and on behalf of the
Investment Manager
Don San Jose
Jon Brachle
Dan Percella
Portfolio Managers
12th September 2025
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its Half Year
Report:
Principal and Emerging Risks and Uncertainties
The principal risks and uncertainties faced by the Company fall into the
following broad categories: underperformance; market and economic; competitive
positioning; false adverse publicity; discount control; legislative change;
loss of investment team or portfolio manager; outsourcing; cyber crime; and
climate change. In addition, the following were identified as emerging risks:
political and economic; and UK market attraction and/or liquidity. The Board
continues to closely consider and monitor these risks. Information on each of
these areas is given in the Strategic Report within the Annual Report and
Financial Statements for the year ended 31st December 2024. In the view of the
Board, these principal and emerging risks and uncertainties are as much
applicable to the remaining six months of the financial year as they were to
the six months under review.
Related Parties 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 or the performance of the Company.
Going Concern
In accordance with The Financial Reporting Council's guidance on going concern
and liquidity risk, the Directors have undertaken a rigorous review of the
Company's ability to continue as a going concern. The Board has, in
particular, considered the impact of heightened market volatility since the
Russian invasion of Ukraine and the unrest in the Middle East, the
inflationary environment and other geopolitical and financial risks. However,
it does not believe the Company's going concern status is affected. The
Company's assets, the vast majority of which are investments in quoted
securities which are readily realisable, exceed its liabilities significantly
under all stress test scenarios reviewed by the Board. Gearing levels and
compliance with borrowing covenants are reviewed by the Board on a regular
basis. Furthermore, the Directors are satisfied that the Company and its key
third party service providers have in place appropriate business continuity
plans. Accordingly, having assessed the principal and emerging risks and other
matters, the Directors believe that there are no material uncertainties
pertaining to the Company that would prevent its ability to continue in such
operational existence for at least 12 months from the date of the approval of
this half yearly financial report.
Directors' Responsibilities
The Board of Directors confirms that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the
half year financial report has been prepared in accordance with FRS 104
'Interim Financial Reporting' and gives a true and fair view of the state of
affairs of the Company, and of the assets, liabilities, financial position and
net return of the Company as at 30th June 2025 as required by the Disclosure
Guidance and Transparency Rules 4.2.4R; and
(ii) the interim management report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the Disclosure Guidance and
Transparency Rules.
In order to provide these confirmations, and in preparing these financial
statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are reasonable
and prudent;
• state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and explained in the
financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will continue in
business;
and the Directors confirm that they have done so.
For and on behalf of the Board
Dominic Neary
Chair
12th September 2025
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 2025 30th June 2024 31st December 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments
held at fair value through
profit or loss - (38,798) (38,798) - 1,454 1,454 - 28,833 28,833
Net foreign currency exchange
gains/(losses) on cash
and loans - 1,517 1,517 - 3 3 - (383) (383)
Income from investments 1,837 - 1,837 1,736 - 1,736 3,466 97 3,563
Interest receivable 166 - 166 377 - 377 579 - 579
Gross return/(loss) 2,003 (37,281) (35,278) 2,113 1,457 3,570 4,045 28,547 32,592
Management fee (203) (811) (1,014) (195) (779) (974) (407) (1,626) (2,033)
Other administrative expenses (259) - (259) (258) - (258) (572) - (572)
Net return/(loss) before finance
costs and taxation 1,541 (38,092) (36,551) 1,660 678 2,338 3,066 26,921 29,987
Finance costs (141) (563) (704) (150) (599) (749) (256) (1,021) (1,277)
Net return/(loss) before taxation 1,400 (38,655) (37,255) 1,510 79 1,589 2,810 25,900 28,710
Taxation (257) - (257) (229) - (229) (489) - (489)
Net return/(loss) after taxation 1,143 (38,655) (37,512) 1,281 79 1,360 2,321 25,900 28,221
Return/(loss) per share (note 3) 1.91p (64.48)p (62.57)p 2.03p 0.13p 2.16p 3.74p 41.72p 45.46p
All revenue and capital items in the above statement derive from continuing
operations.
The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information prepared under guidance issued by the Association of Investment
Companies.
The net return/(loss) after taxation represents the profit/(loss) for the
period/year and also the total comprehensive income for the period/year.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Capital
share Share redemption Capital Revenue
capital premium reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
Six months ended 30th June 2025 (Unaudited)
At 31st December 2024 1,635 45,758 1,854 240,603 3,939 293,789
Repurchase of shares into Treasury - - - (9,197) - (9,197)
Net (loss)/return for the period - - - (38,655) 1,143 (37,512)
Dividends paid in the period (note 4) - - - - (1,829) (1,829)
At 30th June 2025 1,635 45,758 1,854 192,751 3,253 245,251
Six months ended 30th June 2024 (Unaudited)
At 31st December 2023 1,638 45,758 1,851 226,987 3,491 279,725
Repurchase of shares into Treasury - - - (7,885) - (7,885)
Repurchase and cancellation of forfeited shares(2,3) (3) - 3 (42) - (42)
Net return for the period - - - 79 1,281 1,360
Dividends paid in the period (note 4) - - - - (1,890) (1,890)
Forfeiture of unclaimed dividends (note 4)(2) - - - - 17 17
At 30th June 2024 1,635 45,758 1,854 219,139 2,899 271,285
Year ended 31st December 2024 (Audited)
At 31st December 2023 1,638 45,758 1,851 226,987 3,491 279,725
Repurchase of shares into Treasury - - - (12,242) - (12,242)
Repurchase and cancellation of forfeited shares(2,3) (3) - 3 (42) - (42)
Net return for the year - - - 25,900 2,321 28,221
Dividends paid in the year (note 4) - - - - (1,890) (1,890)
Forfeiture of unclaimed dividends (note 4)(2) - - - - 17 17
At 31st December 2024 1,635 45,758 1,854 240,603 3,939 293,789
( )
(1) Part of these reserves form the distributable reserves of the
Company and may be used to fund distributions to shareholders.
(2) During 2024, the Company undertook an Asset Reunification Program
to reunite inactive shareholders with their shares and unclaimed dividends.
In accordance with the Company's Articles of Association, the Company
exercised its right to forfeit the shares belonging to untraced shareholders
for a period of 12 years or more. These shares were bought back by the
Company and cancelled. The proceeds, net of costs, were returned to the
Company. In addition, any unclaimed dividends older than 12 years from the
date of payment of such dividend were forfeited and returned to the Company.
(3) The Company repurchased and subsequently cancelled forfeited
shares at a total cost of £400,000. The amount due on these forfeited shares
was £358,000, leading to a net cost of £42,000. As a result, for the six
months ended 30th June 2024, the capital redemption reserve and capital
reserves have been restated to align with the accounting treatment applied at
the year ended 31st December 2024. There is no impact from this restatement to
the net assets as reported.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At At At
30th June 2025 30th June 2024(1) 31st December 2024
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 262,819 279,804 316,510
Current assets
Debtors 683 561 265
Current assets investments(1) 9,682 7,334 1,265
Cash at bank(1) 368 - 10
10,733 7,895 1,540
Current liabilities
Creditors: amounts falling due within one year (28,301) (16,414) (24,261)
Net current liabilities (17,568) (8,519) (22,721)
Total assets less current liabilities 245,251 271,285 293,789
Net assets 245,251 271,285 293,789
Capital and reserves
Called up share capital 1,635 1,635 1,635
Share premium 45,758 45,758 45,758
Capital redemption reserve 1,854 1,854 1,854
Capital reserves 192,751 219,139 240,603
Revenue reserve 3,253 2,899 3,939
Total shareholders' funds 245,251 271,285 293,789
Net asset value per share (note 5) 421.2p 439.9p 484.6p
(1 As at 30th June 2024, the 'Cash and cash equivalents' line
item in the Statement of Financial Position has been revised to 'Cash at bank'
and 'Current asset investments'. This revision separately reports the
£7334,000 investment in the JPMorgan USD Liquidity Fund as 'Current asset
investments' and £nil as 'Cash at bank', in accordance with the statutory
format required by the Companies Act 2006. This adjustment does not affect any
other line items in the Statement of Financial Position or the total current
assets.)
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 2025 30th June 2024 31st December 2024
£'000 £'000 £'000
Cash flows from operating activities
Net (loss)/return before finance costs and taxation (36,551) 2,338 29,987
Adjustment for:
Net losses/(gains) on investments held at fair value through
profit or loss 38,798 (1,454) (28,833)
Net foreign currency exchange (gains)/losses (1,517) (3) 383
Dividend income (1,837) (1,736) (3,563)
Interest income (166) (377) (579)
Realised (losses)/gains on foreign currency exchange
transactions (48) 45 44
Realised foreign currency exchange losses on JPMorgan USD
Liquidity Fund (353) (291) (464)
(Increase)/decrease in accrued income and other debtors (28) 6 1
Increase/(decrease) in accrued expenses 1,828 (88) 62
Net cash inflow/(outflow) from operations before dividends,
interest and taxation 126 (1,560) (2,962)
Dividends received 1,612 1,452 3,009
Interest received 166 455 657
Overseas withholding tax recovered 19 29 29
Net cash inflow from operating activities 1,923 376 733
Purchases of investments (42,117) (39,427) (120,370)
Sales of investments 56,785 44,988 116,679
Net cash inflow/(outflow) from investing activities 14,668 5,561 (3,691)
Dividends paid (1,829) (1,890) (1,890)
Refund from forfeiture of unclaimed dividends - 17 17
Net cost of repurchasing and cancelling forfeited shares(1) - (42) (42)
Repurchase of shares into Treasury (8,763) (7,669) (12,242)
Repayment of bank loan (23,228) (7,850) (7,850)
Drawdown of bank loan 27,099 - 7,888
Loan interest paid (729) (794) (1,305)
Net cash outflow from financing activities (7,450) (18,228) (15,424)
Increase/(decrease) in cash and cash equivalents 9,141 (12,291) (18,382)
Cash and cash equivalents at start of period/year 1,275 19,237 19,237
Foreign currency exchange movements (366) 388 420
Cash and cash equivalents at end of period/year 10,050 7,334 1,275
Cash and cash equivalents consist of:
Cash at bank 368 - 10
Current assets investments in JPMorgan USD Liquidity Fund 9,682 7,334 1,265
Total 10,050 7,334 1,275
( )
(1) The Company repurchased and subsequently cancelled forfeited
shares at a total cost of £400,000. The amount due on these forfeited shares
was £358,000, leading to a net cash outflow of £42,000. For the period ended
30th June 2024, the amount has been restated to show the net cash outflow
of £42,000.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 30th June 2025
1. Financial statements
The information contained within the condensed financial statements in this
half year report has not been audited or reviewed by the Company's
Auditor.
The figures and financial information for the year ended 31st December 2024
are extracted from the latest published financial statements of the Company
and do not constitute statutory accounts for that year. Those financial
statements have been delivered to the Registrar of Companies including the
report of the auditor which was unqualified and did not contain a statement
under either section 498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
The condensed financial statements have been prepared under the historical
cost convention, modified to include fixed asset investments at fair value,
and in accordance with the Companies Act 2006, United Kingdom Generally
Accepted Accounting Practice (UK GAAP), including 'the Financial Reporting
Standard applicable in the UK and Republic of Ireland' (FRS 102) and with the
Statement of Recommended Practice 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' (the 'SORP') issued by the Association
of Investment Companies in July 2022.
FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting
Council ('FRC') in March 2015 has been applied in preparing this condensed set
of financial statements for the six months ended 30th June 2025.
All of the Company's operations are of a continuing nature.
The accounting policies applied to this condensed set of financial statements
are consistent with those applied in the financial statements for the year
ended 31st December 2024.
3. (Loss)/return per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 30th June 31st December 2024
2025 2024
£'000 £'000 £'000
(Loss)/return per share is based on the following:
Revenue return 1,143 1,281 2,321
Capital (loss)/return (38,655) 79 25,900
Total (loss)/return (37,512) 1,360 28,221
Weighted average number of shares in issue 59,950,192 63,000,907 62,082,503
Revenue return per share 1.91p 2.03p 3.74p
Capital (loss)/return per share (64.48)p 0.13p 41.72p
Total (loss)/return per share (62.57)p 2.16p 45.46p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 2025 30th June 2024 31st December 2024
Pence £'000 Pence £'000 Pence £'000
Dividend paid
Final dividend in respect of prior year 3.10 1,829 3.00 1,890 3.00 1,890
Total dividends paid in the period/year 3.10 1,829 3.00 1,890 3.00 1,890
Forfeiture of unclaimed dividends over 12 years - - - (17) - (17)
Net dividends - 1,829 - 1,873 - 1,873
The dividend paid in the period/year has been funded from the revenue
earnings.
No interim dividend has been declared in respect of the six months ended 30th
June 2025 (2024: nil).
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 30th June 31st December 2024
2025 2024
Net assets (£'000) 245,251 271,285 293,789
Number of shares in issue at period/year end 58,219,730 61,669,962 60,622,264
Net asset value per share 421.2p 439.9p 484.6p
6. Fair valuation of instruments
The fair value hierarchy analysis for financial instruments held at fair value
at the period end is as follows:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th June 2025 30th June 2024 31st December 2024
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 262,819 - 279,804 - 316,510 -
Level 2(1) 9,682 - 7,334 - 1,265 -
Total value of investments 272,501 - 287,138 - 317,775 -
(1) Level 2 consists of the current assets investments in JPMorgan USD
Liquidity Fund
7. Analysis of changes in net debt
Foreign
As at currency exchange As at
31st December 2024 Cash flows movements 30th June 2025
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash at bank 10 358 - 368
Current assets investments(1) 1,265 8,783 (366) 9,682
1,275 9,141 (366) 10,050
Borrowings
Debt due within one year - ScotiaBank (23,954) 23,228 726 -
Debt due within one year - Bank of America(2) - (27,099) 1,558 (25,541)
Net borrowings (23,954) (3,871) 2,284 (25,541)
Net debt (22,679) 5,270 1,918 (15,491)
( )
(1) Entirely invested in JPMorgan USD Liquidity Fund, a AAA rated
money market fund which seeks to achieve a return in line with prevailing
money market rates whilst aiming to preserve capital consistent with such
rates and to maintain a high degree of liquidity.
(2) On 14th March 2025 the Company renewed its loan facility with a
new loan provider, Bank of America. Under the terms of this current agreement,
the Company may draw down up to US$40 million loan facility (including an
accordion facility of US$5 million), at a compounded interest rate of the
Secured Overnight Financing Rate (SOFR) plus a margin of 1.00% (Dollar
denominated loans). The new facility is a 360 day evergreen facility. As at
30th June 2025, US$35 million was drawn down.
JPMORGAN FUNDS LIMITED
12th September 2025
For further information, please contact:
Priyanka Vijay Anand
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or or +44 1268 44 44 70
E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)
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) is
incorporated into, or forms part of, this announcement.
ENDS
A copy of the Half Year Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The Half Year Report will also shortly be available on the Company's website
at www.jpmussmallercompanies.co.uk where up to date information on the
Company, including daily NAV and share prices, factsheets and portfolio
information can also be found.
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