REG - JPMorgan Euro Discov - Half-year Financial Report
01/12/2025 07:00
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RNS Number : 5151J JPMorgan European Discovery Trust 01 December 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN EUROPEAN DISCOVERY TRUST PLC
HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2025
Legal Entity Identifier: 54930049CEWDI46Y3U28
Information disclosed in accordance with the DTR 4.1.3
Highlights:
· NAV total return of +20.7% for the six months ended 30th September
2025, compared with +15.4% for the MSCI Europe (ex UK) Small Cap Index (the
'Benchmark'). Share price return of +21.0%, outperforming the benchmark by
+5.6%.
Total returns (including dividends reinvested) to 30th September 2025
All periods to 30(th) September 2025 Six Months % Three Years* % Five Years* % Ten Years* %
Total Return on Net Asset Value per Share +20.7 +55.7 +42.4 +167.3
Benchmark +15.4 +48.5 +45.7 +161.3
Excess (NAV vs Benchmark) (%) +5.3 +7.2 -3.3 +6.0
Return on Share Price +21 +74.5 +59.6 +197.0
Excess (Share Price vs Benchmark) (%) +5.6 +26.0 +13.9 +35.7
* Cumulative returns
· Share price returns outperformed the benchmark over three, five and
ten years.
· An interim dividend of 3.0 pence per share has been declared for the
six months ended 30th September 2025.
· During the period, the Company repurchased 17,573,909 shares into
treasury. A further 577,173 shares have been bought back since the period end.
The Chairman, Marc van Gelder, commented:
"I am pleased to present the Company's results for the half-year ended 30th
September 2025, during
which the Company delivered strong outright gains, outpacing the benchmark by
+5.3% on a net asset basis; and an enviable long term performance track record
having delivered absolute gains and outperformed the market over the last ten
years."
"The Board shares the Portfolio Managers' increased optimism about the
prospects for European small and mid-caps, and for our Company. Recent
performance has confirmed the merits of their strategy and the Board is
confident that the approach will continue to provide shareholders with
attractive returns."
Portfolio Managers, Jon Ingram, Jack Featherby, Jules Bloch, commented:
"The investment landscape for European smaller companies over the past six
months has been shaped by a complex interplay of macroeconomic forces, policy
shifts, and geopolitical developments. The period from March to September 2025
has tested the resilience of markets and investors alike, with volatility
driven by rapidly evolving trade policies, interest rate adjustments, and
political uncertainty. Against this backdrop, our focus remains steadfast: to
identify and invest in Europe's 'hidden gems' - companies with positive
fundamentals and long-term growth potential that are often overlooked by the
broader market. We believe this approach positions us to navigate volatility
and deliver strong results for our shareholders."
CHAIRMAN'S STATEMENT
"The Board shares the Portfolio Managers' increased optimism about the
prospects for European small and mid-caps, and for our Company. Recent
performance has confirmed the merits of their strategy and the Board is
confident that the approach will continue to provide shareholders with
attractive returns."
Dear Shareholder,
I am pleased to present the Company's results for the half-year ended 30th
September 2025, during which your Company delivered:
• Strong outright gains and outpacing the benchmark by +5.3% on a net
asset basis.
• Enviable long term performance track record having delivered absolute
gains and outperformed the market over the last ten years.
Investment Performance
Over the six months to end September 2025, the Company achieved a total return
on net assets of +20.7%, while the total return on a share price basis was
+21.0%. This performance outpaced the benchmark - the MSCI Europe (ex UK)
Small Cap Index which returned +15.4% over the period.
The six months were characterised by an unusual degree of volatility in global
equity markets, driven in large part by US tariff policy. European markets
faced additional challenges arising from the rapidly changing nature of
Europe's relationship with the US, which occurred against a backdrop of
ongoing Russian aggression on its eastern borders. These developments prompted
significant increases in defence and infrastructure spending across the
region, with Germany setting the pace.
European smaller companies proved relatively resilient, realising significant
outright gains and outperforming European larger caps thanks to their
comparative immunity from US tariffs, their greater reliance on domestic
revenues and gains in areas set to benefit from increased government spending
and the adoption of artificial intelligence (AI). Your Company's exposure to
these positive influences ensured strong performance. This is very pleasing
and a testament to the ongoing effectiveness of the portfolio enhancements
implemented by the Portfolio Managers over the first half of FY24 - which were
intended to minimise downside risk during periods of volatility and capture
upside risk when volatility declines.
The Company adopts a long-term investment strategy, so it is important to also
consider performance over a longer timeframe. On this basis, the Company's
outperformance over the first six months of this financial year has improved
its already robust long-term performance track record. Over the ten years
ending September 2025, the Company delivered absolute gains and outperformed
the market - annualised returns averaged +10.3% on an NAV basis, versus an
equivalent benchmark return of +10.1%.
The Investment Manager's Report that follows provides a review and outlook of
markets, as well as more detail on the performance drivers within the
portfolio.
Revenue and Dividends
The Company's net revenue return for the six months to 30th September 2025 was
higher than the corresponding period in 2024, at 15.60 pence per share (30th
September 2024: 10.72 pence). The Board has decided the interim dividend of
3.0 pence (2024: 3.0 pence) per share, which will be paid on 5th February 2026
to shareholders on the register as at 19th December 2025 (the ex-dividend date
will be 18th December 2025). When determining the final dividend for the
current financial year, the Board will take account of the income received
over the entire year, and also the level of the Company's revenue reserves,
which stood at £27.57 million as at 30th September 2025.
Discount Management and Share Repurchases
At the AGM held in July 2025, shareholders gave approval for the Company to
renew the Directors' authority to repurchase up to 14.99% of the Company's
shares for cancellation or transfer into Treasury.
The Board monitors the level of the discount carefully. When appropriate, it
uses the ability to repurchase shares to minimise the short-term volatility
and the absolute level of the discount. The Company repurchased 17,573,909
shares into Treasury during the six-month reporting period. Since the half
year end, a further 577,173 shares have been bought back for holding in
Treasury.
The discount at which the Company's shares trade relative to net asset value
(NAV) has been in single digits for over a year and narrowed slightly to 7.1%
over the six months to end September 2025 from 7.3% at the end of the
financial year. This compares with a discount a year ago of 8.3% at end
September 2024. At the time of writing, the share price discount was 7.8%.
Management Fee
As previously communicated, an agreement was reached with the Manager to lower
the investment management fee with effect from 1st April 2025. The fee is now
applied on a tiered basis to the Company's net assets: 0.70% per annum on the
first £300 million, and 0.65% on net assets exceeding that amount. This
replaces the previous flat fee of 0.75% of net assets.
The Board
Having served on the Board since August 2016 and as Chairman since July 2019,
I will be retiring at the conclusion of the 2026 Annual General Meeting
scheduled for July 2026. The Board with guidance from the Nomination Committee
is currently considering my successor.
The Board continues to look ahead to manage its succession planning and has
also begun the process for recruiting another Non-Executive Director.
Environmental, Social and Governance ('ESG')
The Board maintains an ongoing dialogue with the Manager regarding the
integration of financially material ESG factors into the investment process.
These ESG considerations are incorporated at every stage of investment
decision-making. The Board aligns with the Investment Manager's perspective on
the importance of financially material ESG factors, both at the point of
initial investment and throughout the duration of the holding through
engagement with investee companies.
For more details, please refer to pages 35 to 37 of the 2025 Annual Report
which can be found on the Company's website at:
www.jpmeuropeandiscovery.co.uk.
Stay Informed
The Company delivers email updates with regular news and views, as well as the
latest performance. If you have not already signed up to receive these
communications and you wish to do so, you can opt in via
tinyurl.com/JEDT-Sign-Up or by scanning the QR code on page 9 of the Half Year
Report.
Outlook
The Board shares the Portfolio Managers' increased optimism about the
prospects for European small and mid-caps, and for our Company. Indeed, the
outlook continues to improve, despite ongoing tariff uncertainties and
geopolitical tensions.
The regional economy is being supported by lower interest rates. Major
increases in defence and infrastructure spending will continue to underpin
activity in many sectors over the coming year and beyond. Smaller cap
companies are likely to be major beneficiaries of these trends. Their innate
innovative, flexible nature also suggests they will be quick to participate in
the AI revolution and realise related productivity gains and efficiencies.
In addition, despite the recent re-rating of European smaller caps, valuations
in this part of the market remain very attractive in relative as well as
absolute terms versus European large caps, the US and other global markets.
So there is significant scope for further market gains. International
investors are already showing increased interest in European equities,
including via M&A activity. This trend is set to continue, with European
smaller companies likely to be the target of many of these deals.
My fellow Directors and I believe the portfolio is well-positioned to
capitalise on these positive developments, with the Portfolio Managers'
ongoing focus on sound businesses with strong long-term growth potential.
Recent performance has confirmed the merits of their strategy and the Board is
confident that the approach will continue to provide shareholders with
attractive returns as European smaller companies continue their long overdue
rebound.
Marc van Gelder
Chairman
28th November 2025
INVESTMENT MANAGER'S REPORT
"The investment landscape for European smaller companies over the past six
months has been shaped by a complex interplay of macroeconomic forces, policy
shifts, and geopolitical developments. The period from March to September 2025
has tested the resilience of markets and investors alike, with volatility
driven by rapidly evolving trade policies, interest rate adjustments, and
political uncertainty.
"Against this backdrop, our focus remains steadfast: to identify and invest in
Europe's 'hidden gems' - companies with positive fundamentals and long-term
growth potential that are often overlooked by the broader market. We believe
this approach positions us to navigate volatility and deliver strong results
for our shareholders. In our report we review the macroeconomic environment,
discuss its impact on our portfolio, and share our outlook for the months
ahead."
Macroeconomic Review
The six months ended 30th September 2025 were marked by significant
macroeconomic shifts, with global and regional events exerting a pronounced
influence on European markets - particularly for smaller companies. The most
notable development has been the escalation of trade tensions sparked by US
President Trump's aggressive tariff policy. The early April introduction and
subsequent adjustment of tariffs on a wide range of goods, including those
from the EU, China, and other major trading partners, has injected
considerable uncertainty into global trade flows. While the US reached
temporary agreements with the EU and Japan, the threat of further tariff rises
remains, and the legal status of some measures is still under review. These
policies have led to increased market volatility, with European exporters and
industrials particularly exposed to the shifting landscape.
Interest rate policy has also played a central role. The European Central Bank
(ECB) continued its rate-cutting cycle, lowering the deposit rate by 25 basis
points to 2% in June. Softer inflation data across the Eurozone - headline CPI
fell to its 2.0% target and core inflation declined to 2.3% - has supported
this more accommodative stance. Although the ECB has signalled that this
easing cycle may be nearing its end. In contrast, the US Federal Reserve
delivered its first rate cut of 2025 in September, responding to a weakening
labour market and softer consumer confidence.
Political risk has remained elevated, particularly in continental Europe.
France has been at the epi-centre of fiscal and political instability, with
the resignation of two prime ministers in quick succession and a sharp rise in
government bond yields. The broader Eurozone has faced similar challenges,
with investor sentiment fluctuating in response to ongoing debates over fiscal
discipline and the future direction of monetary policy. Meanwhile,
geopolitical tensions in the Middle East and Asia, as well as the US
government shutdown, have added to the global risk environment, with knock-on
effects for European markets.
Despite these headwinds, European small caps have demonstrated resilience,
benefiting from their high domestic revenue base and comparatively low
exposure to global trade disruptions. Pockets of strength have emerged in
areas linked to infrastructure investment, defence spending, and technological
innovation. While sectors such as industrials, materials, and financials have
experienced volatility.
In terms of market performance, the MSCI Europe ex UK Small Cap index
outperformed most major European benchmarks over the six-month review period.
While large cap indices were weighed down by global trade uncertainty and
sector-specific challenges. European small caps did well thanks to their
greater exposure to domestic growth drivers and more limited sensitivity to
international trade tensions. This relative strength underscores the
attractiveness of the asset class in the current environment and supports our
continued focus on identifying high-quality opportunities within the European
small cap universe.
Portfolio Performance
Table 1: Summary performance of JPMorgan European Discovery Trust
31st March - 30th September 2025 %
Net Asset Value (NAV) 20.7
Benchmark relative 5.3
Share Price 21.0
End of period discount -7.1
MSCI Europe ex UK Small Cap 15.4
MSCI Europe ex UK 10.7
Source: J.P. Morgan Asset Management and Bloomberg.
Over the six-month period ended 30th September 2025, the Company returned
+20.7% on a total return NAV basis and +21.0% in share price terms -
outperforming its benchmark, the MSCI Europe (ex UK) Small Cap Index, which
rose by +15.4% over the same period. These results further enhanced the
Company's long-term performance track record. It has now delivered positive
absolute returns in both NAV and share price terms over the one, three, five
and ten-year periods ending 30th September 2025. It has also outpaced the
benchmark over all these periods except over five years, when it undershot the
average annualised benchmark return of 7.8% by 50 basis points. The Company
made annualised total returns of +10.3% on an NAV basis and +11.5% in share
price terms over the ten-year period, ahead of the corresponding benchmark
return of +10.1%.
Table 2: Top and bottom three contributing sectors to performance
PORTFOLIO BENCHMARK ATTRIBUTION
SECTORS Average Average
All numbers are percentages Weight Return Weight Selection Allocation Total
Industrials 30.0 31.7 26.6 2.4 0.1 2.5
Financials 15.8 32.1 14.3 1.4 0.0 1.4
Real Estate 6.0 29.6 8.3 0.8 0.1 0.9
Information Technology 9.5 6.6 7.9 -0.1 -0.4 -0.5
Health Care 6.7 -2.1 9.1 -0.8 0.1 -0.7
Communication Services 5.9 -6.7 5.0 -0.9 -0.1 -1.0
Source: J.P. Morgan Asset Management.
By sector, our overweight positions in Industrials and Financials were the
largest positive contributors to returns. Our industrial holdings benefited
from renewed domestic investment and stimulus measures across Europe, with
companies such as Spie and Bilfinger (French and German engineering companies)
seeing direct gains from the significant increase in German infrastructure
spending announced earlier this year. In Financials, our bank holdings
experienced a rebound in loan growth after a period of stagnation. While asset
managers and insurers did well thanks to higher market levels and improved
investor sentiment.
Conversely, Information Technology, Health Care, and Communication Services
were the largest detractors. These sectors faced headwinds from global trends,
including the disruptive impact of artificial intelligence (AI) on legacy
business models and the weakening US dollar. For example, our position in
Reply, an Italian IT services company, was affected by market concerns over
long-term demand for IT consulting. While Ipsos, the French market research
firm, saw sentiment decline due to uncertainty around the future of physical
data collection in the age of generative AI.
Table 3: Top and Bottom three investments contributing to performance
PORTFOLIO BENCHMARK
SECURITY NAME Average Average Weight Total
All numbers are percentages Weight Return Weight Difference Effect
Accelleron Industries 2.0 78.7 0.7 1.3 0.6
Tecnicas Reunidas 1.4 69.4 0.1 1.3 0.6
Alzchem 1.5 70.5 0.1 1.4 0.6
Fuchs Petrolub 1.8 -8.5 0.3 1.5 -0.3
Belimo 0.0 0.0 0.8 -0.8 -0.3
Reply 1.5 -15.5 0.4 1.1 -0.4
Source: J.P. Morgan Asset Management
At the stock level, the top three contributors to performance over the period
were:
• Accelleron Industries is the Swiss-based market leader in high-power
turbochargers used in a variety of fields including marine services and
electrical power generation (balancing and back-up). This investment
contributed significantly to performance as the International Maritime
Organisation (IMO) has set new standards for stricter climate regulations. The
final vote on these standards is scheduled to take place in 2026 and is
expected to act as a tailwind for Accelleron, as it will lift demand for the
company's refurbishment business. Additionally, Accelleron released solid
results which highlighted continued robust demand for marine services and
rapid growth in the supply of data centre infrastructure.
• Tecnicas Reunidas is a Spanish engineering and construction company
serving the oil and gas sector. The stock was another key contributor to
returns due to its positive demand outlook and increased services contracts
which, along with strong pipeline development, will support future earnings.
We note that these factors led the company to raise guidance in October (after
the H1 period end).
• Alzchem is a German speciality chemical company, with offerings in
Nitroguanidine and Creatine. Nitroguanidine is a powerful, yet stable,
explosive, which makes it ideal for use in weaponry. Alzchem's share price
rose due to its exposure to higher defence spending across Europe. Creatine is
a health supplement experiencing rising popularity among sportspeople and
fitness enthusiasts.
The top three detractors were:
• Fuchs, a leading German independent lubricants producer. It
underperformed after management cut guidance alongside poor second-quarter
numbers. This reflects a weaker demand environment caused by tariff
uncertainty, ongoing political tensions and subdued industrial production in
Europe. We have maintained a position in Fuchs as the valuation remains
attractive and cash generation is expected to remain solid with limited capex
requirements.
• Belimo, is a Swiss heating, ventilation and air conditioning equipment
provider which represents a large benchmark weight. Over the period we did not
hold a position in the company. Our decision to remain underweight in Belimo
relative to the benchmark negatively impacted performance, as the company's
share price rose sharply due to increased demand for its data center
solutions. We chose not to invest in Belimo because we believed its valuation
overstated the market potential of its data center offering.
• Reply is a Italian IT services company. The company underperformed due
to continued poor momentum and weakness in demand from the automotive sector
and around worries about AI's ultimate impact on IT spending. However, the
stock remains in our portfolio as we continue to have confidence in the
long-term outlook for the business and on the long-term outlook for IT
spending.
Portfolio Changes and Current Positioning
Table 4: Top three investment portfolio buys and sells
PORTFOLIO
SECURITY NAME SECTOR CHANGE % TRADE TYPE
Tecnicas Reunidas Energy 2.0 Topped up
Vienna Insurance Group AG Financials 1.7 New buy
CIE Automotive SA Consumer Discretionary 1.4 New buy
CTS Eventim AG & CO Communication Services -2.2 Sold out
AAK AB Consumer Staples -2.2 Sold out
Freenet AG Communication Services -2.1 Sold out
Source: J.P. Morgan Asset Management.
During the period, we added to the Company's investment holding in Tecnicas
Reunidas and initiated new positions in Vienna Insurance Group (VIG) and CIE
Automotive (CIE).
As mentioned earlier, our decision to add to Tecnicas Reunidas was motivated
by the company's recent good performance. Additionally, positive first-quarter
results had lifted analyst expectations and highlighted the business's
favourable outlook.
The investment in VIG, an Austrian-based international insurance group, was
driven by the stock's attractive valuation and a positive first-half release.
This showed continued robust growth and improved profitability across multiple
regions and led the company to raise full-year guidance.
The Company's third largest portfolio position change was the acquisition of
CIE, a Spanish auto parts supplier. CIE has a diverse portfolio, primarily
serving Europe and North America, but growing rapidly in markets such as
Brazil and India. We initiated the position due to an attractive valuation,
the announcement of share buybacks and the potential for bolt-on acquisitions
to drive earnings growth going forward.
Over the review period we exited positions in CTS Eventim, AAK, and Freenet
due to uncertainties about their future earnings prospects.
CTS Eventim is Europe's largest ticketing company based in Germany. The stock
has been performing well but the company presented disappointing
second-quarter results that highlighted weakness in live entertainment and
concerns about a slowdown in the growth of its online ticketing platform. AAK,
a Swedish specialty vegetable oils and fats producer, is suffering from
continued soft demand and increasing competitive pressure. While Freenet, a
leading German mobile service provider, released poor first-quarter results
that highlighted weak trends in both TV and Mobile segments.
As a result of the above portfolio changes, the Company's investment portfolio
sector positioning has evolved as shown below.
Chart 1: Sector positioning and weight changes
See page 15 of the Half Year Report for Chart 1.
The most significant change during the first half of the financial year was
the Company's reduction in exposure to the Communication Services sector. This
was primarily due to our decision to exit the position in CTS Eventim and
reduce the holding in Ipsos due to uncertainties around the impact of
generative AI on traditional market research (both explained earlier). These
concerns, combined with leadership changes, led us to reallocate capital to
more promising opportunities.
We lifted our exposure to the Industrials, Consumer Discretionary, Financials
and Energy sectors reflecting our confidence in several key trends. Domestic
stimulus measures and infrastructure investment have supported industrial and
energy services companies and are likely to continue to do so over the next
few years. Improving consumer confidence is boosting discretionary spending.
While a stable interest rate environment and benign inflation have provided a
tailwind for financials, particularly in loan growth and asset management.
These sector adjustments align with our strategy to capture opportunities
arising from Europe's economic recovery and structural transformation.
Outlook
Looking ahead, we continue to remain optimistic about the prospects for
European smaller companies. The asset class stands out for its attractive
valuations, strong balance sheets, and exposure to long-term structural growth
drivers. The easing of monetary policy headwinds, combined with improving
economic indicators and the potential for increased M&A activity, creates
a supportive environment for small and mid-caps. We expect lower interest
rates and stabilising inflation to continue to support domestically oriented
businesses While ongoing fiscal stimulus and infrastructure investment should
provide additional impetus to activity in many areas.
Political uncertainty and trade policy volatility are likely to persist, but
we believe that company fundamentals will ultimately drive performance over
the longer term. European small and mid-caps have historically outperformed
larger peers during periods of economic recovery, and their agility allows
them to adapt quickly to changing market conditions. The asset class is also
well-positioned to capitalise on emerging themes such as the AI revolution,
pharmaceutical innovation, as well as the transition to renewable energy.
Our strategy remains focused on uncovering overlooked opportunities -
companies with robust business models, skilled and effective management teams
with the potential to deliver sustainable growth. As private equity and
strategic investors increasingly target these 'hidden gems,' we anticipate
further support for valuations and deal activity. After a period of
underperformance, European small caps are overdue for a resurgence, and we are
confident that our portfolio is well-positioned to capture this recovery for
the ongoing benefit of our shareholders.
For and on behalf of
J.P. Morgan Asset Management
Investment Manager
Jules Bloch
Jack Featherby
Jon Ingram
Portfolio Managers
28th November 2025
INTERIM MANAGEMENT REPORT
The Company is required to make the following disclosures in its half year
report:
Principal Risks and Uncertainties
The principal & emerging risks and uncertainties faced by the Company fall
into the following broad categories: investment performance and strategy;
discount/premium control; market and currency; geopolitical; loss of key
personnel; accounting, legal and regulatory; operational and cyber crime;
shareholder relations; climate change and artificial intelligence. The Board
has reviewed the principal risks and uncertainties, reported in the Annual
Report and Financial Statements for the year ended 31st March 2025, and
concluded that it does not believe that currently there are any emerging risks
facing the Company. In the view of the Board, these principal 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
The Directors believe, having considered the Company's investment objectives,
risk management policies, capital management policies and procedures, nature
of the portfolio and expenditure projections, that the Company has adequate
resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the foreseeable
future. More specifically, 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. For these reasons, they consider that there is
reasonable evidence to continue to adopt the going concern basis in preparing
the financial statements.
Directors' Responsibilities
The Board of Directors confirm that, to the best of its knowledge:
(i) the condensed set of financial statements contained within the half-yearly
financial report has been prepared in accordance with FRS 104 Interim
Financial Reports 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 September 2025, as required by the UK Listing
Authority 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 UK Listing Authority
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
Marc van Gelder
Chairman
28th November 2025
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 2025 30th September 2024 31st March 2025
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments
held at fair value through
profit or loss - 89,244 89,244 - (23,245) (23,245) - (8,236) (8,236)
Foreign exchange gains/(losses)
on JPMorgan EUR Liquidity
Fund - 1,118 1,118 - (1,536) (1,536) - (1,490) (1,490)
Net foreign currency
(losses)/gains - (2,501) (2,501) - 2,710 2,710 - 2,367 2,367
Income from investments 17,593 32 17,625 19,080 - 19,080 21,033 4,956 25,989
Interest receivable and
similar income 359 - 359 948 - 948 1,620 - 1,620
Gross return/(loss) 17,952 87,893 105,845 20,028 (22,071) (2,043) 22,653 (2,403) 20,250
Management fee (593) (1,383) (1,976) (838) (1,956) (2,794) (1,510) (3,524) (5,034)
Other administrative expenses (433) - (433) (424) - (424) (900) - (900)
Net return/(loss) before finance
costs and taxation 16,926 86,510 103,436 18,766 (24,027) (5,261) 20,243 (5,927) 14,316
Finance costs (354) (827) (1,181) (756) (1,764) (2,520) (1,162) (2,721) (3,883)
Net return/(loss) before taxation 16,572 85,683 102,255 18,010 (25,791) (7,781) 19,081 (8,648) 10,433
Taxation (1,269) - (1,269) (2,969) - (2,969) (3,189) (701) (3,890)
Net return/(loss) after taxation 15,303 85,683 100,986 15,041 (25,791) (10,750) 15,892 (9,349) 6,543
Return/(loss) per share (note 3) 15.60p 87.30p 102.90p 10.72p (18.38)p (7.66)p 12.36p (7.27)p 5.09p
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
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.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Share Capital
share premium redemption Capital Revenue
capital account reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
Six months ended 30th September 2025 (Unaudited)
At 31st March 2025 6,816 1,312 8,820 547,496 21,806 586,250
Repurchase of shares into Treasury - - - (90,990) - (90,990)
Net return after taxation on ordinary shares - - - 85,683 15,303 100,986
Dividends paid in the period (note 4) - - - - (9,541) (9,541)
At 30th September 2025 6,816 1,312 8,820 542,189 27,568 586,705
Six months ended 30th September 2024 (Unaudited)
At 31st March 2024 7,874 1,312 7,762 731,289 20,809 769,046
Repurchase of shares for cancellation (1,058) - 1,058 (104,375) - (104,375)
Repurchase of shares into Treasury - - - (31,569) - (31,569)
Cost in relation to Tender offer - - - (105) - (105)
Net (loss)/return after taxation on ordinary shares - - - (25,791) 15,041 (10,750)
Dividends paid in the period (note 4) - - - - (11,383) (11,383)
At 30th September 2024 6,816 1,312 8,820 569,449 24,467 610,864
Year ended 31st March 2025 (Audited)
At 31st March 2024 7,874 1,312 7,762 731,289 20,809 769,046
Tender offer shares acquired and cancelled (1,058) - 1,058 (104,897) - (104,897)
Cost in relation to Tender offer - - - (421) - (421)
Repurchase of shares into Treasury - - - (69,126) - (69,126)
Net (loss)/return after taxation on ordinary shares - - - (9,349) 15,892 6,543
Dividends paid in the year (note 4) - - - - (14,895) (14,895)
At 31st March 2025 6,816 1,312 8,820 547,496 21,806 586,250
( )
(1) These reserves form the distributable reserves of the Company and
may be used to fund distribution of profits to investors via dividend
payments.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
30th September 30th September 31st March
2025 2024(1) 2025
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss(1) 569,734 601,587 591,594
Investments on loan held at fair value through profit or loss(1) 51,739 37,743 24,941
Total investments held at fair value through profit or loss 621,473 639,330 616,535
Current assets
Debtors 6,593 5,939 7,728
Current asset investments(1) 28,299 23,999 23,039
Cash at bank(1) 312 376 662
35,204 30,314 31,429
Current liabilities
Creditors: amounts falling due within one year (69,972) (538) (61,714)
Net current (liabilities)/assets (34,768) 29,776 (30,285)
Total assets less current liabilities 586,705 669,106 586,250
Creditors: amounts falling due after more than one year - (58,242) -
Net assets 586,705 610,864 586,250
Capital and reserve
Called up share capital 6,816 6,816 6,816
Share premium account 1,312 1,312 1,312
Capital redemption reserve 8,820 8,820 8,820
Capital reserves 542,189 569,449 547,496
Revenue reserve 27,568 24,467 21,806
Total shareholders' funds 586,705 610,864 586,250
Net asset value per share (note 5) 622.2p 509.9p 524.0p
( )
(1) The 30th September 2024 comparatives have been restated as
explained in note 2.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2025 2024 2025
£'000 £'000 £'000
Cash flows from operating activities
Net return/(loss) before finance costs and taxation 103,436 (5,261) 14,316
Adjustment for:
Net (gains)/losses on investments held at fair value through
profit or loss (89,244) 23,245 8,236
Foreign exchange (gains)/losses on JPMorgan EUR
Liquidity Fund (1,118) 1,536 1,490
Net foreign currency losses/(gains) 2,501 (2,710) (2,367)
Dividend income (17,625) (19,080) (25,989)
Interest and stock lending income (359) (948) (1,620)
Realised gain on foreign exchange transactions 16 470 451
Realised exchange gains/(losses) on JPMorgan EUR
Liquidity Fund 830 (1,206) (1,483)
Decrease/(increase) in other debtors 65 47 (1)
(Decrease)/increase in accrued expenses (90) 50 50
Net cash outflow from operations before dividends, interest
and taxation (1,588) (3,857) (6,917)
Dividends received 15,095 15,969 22,390
Interest and stock lending income received 359 1,001 1,673
Overseas withholding tax recovered/(paid) 2,652 298 (252)
Net cash inflow from operating activities 16,518 13,411 16,894
Purchases of investments (257,219) (175,822) (389,557)
Sales of investments 347,325 342,521 594,797
Net cash inflow from investing activities 90,106 166,699 205,240
Dividends paid (9,541) (11,383) (14,895)
Tender offer shares acquired and cancelled - (104,375) (104,897)
Repurchase of shares into Treasury (91,273) (31,982) (69,319)
Cost in relation to Tender offer - (105) (421)
Repayment of bank loan - (33,562) (33,562)
Drawdown of bank loan - 21,377 21,377
Interest paid (1,186) (2,532) (3,881)
Net cash outflow from financing activities (102,000) (162,562) (205,598)
Increase in cash and cash equivalents 4,624 17,548 16,536
Cash and cash equivalents at start of period/year 23,701 7,160 7,160
Exchange movements 286 (333) 5
Cash and cash equivalents at end of period/year 28,611 24,375 23,701
Cash and cash equivalents consist of:
Cash at bank 312 376 662
JPMorgan EUR Liquidity Fund 28,299 23,999 23,039
Total 28,611 24,375 23,701
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 30th September 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 auditors.
The figures and financial information for the year ended 31st March 2025 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 and include the report of
the auditors 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 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 revised '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 September 2025.
All of the Company's operations are of a continuing nature.
Prior period restatements
In line with the presentation adopted in the Statement of Financial Position
for the year ended 31st March 2025:
• the comparative figures for the value of investments on loan,
previously included within the total value of investments held at fair value
through profit or loss, has been disclosed separately. The figures as at 30th
September 2024 have been restated to reflect this revised presentation. This
adjustment does not impact the Company's Net assets, Statement of
Comprehensive Income, or Statement of Cash Flows as reported and does not
affect any other line items in the Statement of Financial Position or the
total current assets.
• the 30th September 2024 'Cash and cash equivalents' line item in the
Statement of Financial Position has been restated to 'Cash at bank' and
'Current asset investments'. This adjustment separately reports the investment
in the JPMorgan EUR Liquidity Fund as 'Current asset investments', in
compliance with the statutory format per the Companies Act 2006.
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 March 2025.
3. Return/(loss) per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2025 2024 2025
£'000 £'000 £'000
Return/(loss) per share is based on the following:
Revenue return 15,303 15,041 15,892
Capital return/(loss) 85,683 (25,791) (9,349)
Total return/(loss) 100,986 (10,750) 6,543
Weighted average number of shares in issue 98,144,145 140,300,451 128,544,579
Revenue return per share 15.60p 10.72p 12.36p
Capital return/(loss) per share 87.30p (18.38)p (7.27)p
Total return/(loss) per share 102.90p (7.66)p 5.09p
4. Dividends paid
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2025 2024 2025
Pence £'000 Pence £'000 Pence £'000
Dividends paid
Final dividend in respect of the prior year 10.0 9,541 8.0 11,383 8.0 11,383
Interim dividend - - - - 3.0 3,512
Total dividends paid in the period/year 10.0 9,541 8.0 11,383 11.0 14,895
All dividends paid in the period have been funded from the revenue reserve.
An interim dividend of 3.0p (2024: 3.0p) has been declared in respect of the
six months ended 30th September 2025, amounting to £2,829,000, which will be
paid on 5th February 2026 to shareholders on the register as at 19th December
2025 (the ex-dividend date will be 18th December 2025).
5. Net asset value per share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30th September 30th September 31st March
2025 2024 2025
Net assets (£'000) 586,705 610,864 586,250
Number of ordinary shares in issue 94,298,334 119,798,336 111,872,243
Net asset value per ordinary share 622.2p 509.9p 524.0p
6. Fair valuation of investments
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 September 30th September 31st March
2025 2024 2025
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 621,473 - 639,330 - 616,535 -
Level 2(1) 28,299 - 23,999 - 23,039 -
Total value of investments 649,772 - 663,329 - 639,574 -
( )
(1) The figures for 30th September 2024 and 31st March 2025 have been
restated to include the current asset investment in the JPMorgan EUR Liquidity
Fund as Level 2, following its reclassification from cash equivalents at the
year ended 31st March 2025.
7. Analysis of change in net debt
(Audited) (Unaudited)
As at As at
31st March Exchange 30th September
2025 Cash flows movements 2025
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash at bank 662 (348) (2) 312
Investment in JPMorgan EUR Liquidity Fund 23,039 4,972 288 28,299
23,701 4,624 286 28,611
Borrowings
Bank loan (58,581) - (2,515) (61,096)
(58,581) - (2,515) (61,096)
Net debt (34,880) 4,624 (2,229) (32,485)
JPMORGAN FUNDS LIMITED
1st December 2025
For further information, please contact:
Sachu Saji
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or or +44 1268 44 44 70 (tel:+441268444470)
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 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.jpmeuropeandiscovery.co.uk (http://www.jpmeuropeandiscovery.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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