REG - JPMorgan UK Sml Cap - Half-year Financial Report
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RNS Number : 7081Y JPMorgan UK Small Cap Grwth&Inc PLC 31 March 2026
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN UK SMALL CAP GROWTH & INCOME PLC
UNAUDITED HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST JANUARY 2026
Legal Entity Identifier: 549300PXALXKUMU9JM18
Information disclosed in accordance with the DTR 4.1.3
JPMorgan UK Small Cap Growth & Income plc ('JUGI' or the 'Company')
announces its half year results for the six months to 31st January 2026.
Highlights
· NAV total return for the six months to 31st January 2026 was
+5.3% (with net dividends reinvested), compared to the benchmark (Numis
Smaller Companies AIM plus ex Investment Companies Index,) return of +8.9% for
the same period. Share price total return was +6.8% for the period.
· Five-year cumulative NAV total return to 31st January 2026 was
+26.5%, compared to the benchmark return of +18.3%. Five-year share price
cumulative total return was +25.4%
· Ten-year cumulative NAV total return to 31st January 2026 was
+146.2%, compared to the benchmark return of +81.6%. Ten-year share price
cumulative total return was +172.3%
· The Company consistently ranks in the top quartile across three-,
five- and ten-year periods when viewed against its most directly comparable
peer group of investment companies
· The portfolio underperformed its benchmark over the six-month
period primarily due to stock-specific issues affecting two holdings, Warpaint
London and Baltic Classified (both positions have now been exited). The
portfolio's lack of exposure to two commodity names, Greatland Resources and
Pan African Resources, that performed particularly strongly, also adversely
impacted performance.
· During the six months to 31st January 2026, the Company
repurchased 5,340,250 shares into Treasury (equivalent to 4.3% of the shares
in issue at the start of the financial year) at an average discount of 9.9%.
· For the financial year ending 31st July 2026, the Board intends
to pay dividends totalling 14.52p per share (3.63p per quarter), based on 4%
of NAV at the preceding year-end. As 7.26p per share has already been paid for
the first half of the year, a further 7.26p per share is expected to be paid
over the remaining six months.
Katrina Hart, Chair of JUGI, commented:
"Notwithstanding the increased uncertainty stemming from heightened
geopolitics, the long-term investment case for UK smaller companies remains in
place. By their very nature, they tend to innovate and grow faster than
larger, mature businesses."
"It is too early to call the extent of any negative market impacts resulting
from this latest conflict…however, the Board remains confident that your
Company's portfolio is in skilled and experienced hands, with additional
support from the Manager's extensive research resources. The recent positive
performance of the majority of the portfolio's holdings, along with the
Company's strong long-term performance track record, provide ample evidence of
the Portfolio Managers' skill at identifying innovative, resilient companies
with exciting growth prospects. In summary, we believe your Company is well
positioned to maintain its long track record of providing shareholders with
strong returns and outperformance compared to its peers, as well as an
attractive, predictable income stream."
Portfolio Managers, Georgina Brittain & Katen Patel, commented:
"Despite the war in the Gulf and the potential for short term higher inflation
in the UK, due largely to the rise in energy costs, we currently maintain our
positive outlook on our market and the portfolio remains geared. This reflects
our current view that the war will be short-lived and the economic impact on
the UK muted. Our focus is therefore on the compelling opportunities we see.
Whilst valuations have gradually risen over the last year, so have profits. UK
mid and small caps remain very cheap relative to their own history and
relative to the FTSE100. We have outlined just some of the exciting new
additions we have made to the portfolio and we believe we own many companies
that will deliver strong returns into the future."
CHAIR'S STATEMENT
Investment Comment and Performance
After a turbulent first half, UK equities recovered strongly in the latter
months of 2025, taking their lead from buoyant global markets, despite
persistent geopolitical tensions and a protracted period of uncertainty
leading up to the UK Budget in November. UK equity market gains were supported
by signs of improvement in the domestic economy, further monetary easing from
the Bank of England and a degree of relief that the Budget did not impose as
many new costs on businesses as feared.
Nevertheless, UK smaller cap companies were unable to keep pace with the gains
achieved by UK large caps, reflecting their greater sensitivity to interest
rates and near-term uncertainties around government policy, combined with
concerns about the potentially disproportionate impact of artificial
intelligence (AI) on certain smaller businesses. The Company's benchmark, the
Numis Smaller Companies plus AIM (excluding Investment Companies) Index,
returned a creditable +8.9% over the six months to 31st January 2026, but
this was set against a rise of +13.4% for the FTSE 100 total return. Your
Company generated a total return of +5.3% on net assets (with net dividends
reinvested), while its share price total return was +6.8% during the period.
While disappointing, this lag masks the fact that the majority of the
portfolio's holdings delivered positive absolute returns over the review
period. Relative underperformance was mainly the result of stock specific
issues affecting just two holdings, combined with the portfolio's lack of
exposure to two commodity names that performed particularly strongly. Your
Managers run the portfolio very differently from an index tracker, as
reflected in the portfolio's high active share of 79% (referring to the
proportion of the portfolio that diverges from the benchmark). We believe this
approach is crucial to generating superior returns over the longer term and
one that is valued by our shareholders.
With this in mind, shareholders should take considerable comfort from the fact
that your Company has outperformed its benchmark on an annualised basis in
both net asset value (NAV) and share price terms over the three-, five- and
ten-year periods to 31st January 2026 - see detailed long term performance on
page 7 of the Company's Half Year Report for the six months to 31st January
2026 ('2026 Half Year Report'). It also consistently ranks in the top quartile
across these time periods when viewed against its most directly comparable
peer group of investment companies.
The Investment Manager's Report on pages 13 and 14 of the 2026 Half Year
Report provides more detail on recent performance, portfolio positioning and
the investment outlook.
Enhanced Dividend Policy
The Company operates an enhanced dividend policy, targeting a 4% annual yield
based on the unaudited NAV as at the end of the preceding financial year. This
means that dividends are funded by a combination of income generated by the
underlying portfolio during the financial period and by distributable reserves
built up by the Company over time. This approach affords the Portfolio
Managers the flexibility to invest for optimum total returns. The Company pays
four equal quarterly interim dividends, declared in August, November, February
and May and typically paid in October, January, April and July each year.
In August 2025, the Company announced that the unaudited cum income net asset
value at the close of business on 31st July 2025 (the Company's preceding
year-end) was 362.58 pence per share (2024: 376.24 pence per share). In line
with the Company's distribution policy, the Directors declared the first
quarterly interim dividend of 3.63 pence per share for the year ending 31st
July 2026 (2025: 3.76 pence per share for the year ending 31st July 2025),
which was paid in October 2025. A second interim dividend of 3.63 pence per
share was paid in January 2026 and it is anticipated that two further interim
dividend payments, each of 3.63 pence per share, will be made in April and
July 2026. This will take the 2026 annual dividend to 14.52 pence per share
(2025: 15.04 pence per share).
Gearing
The Company has maintained a fairly constant level of gearing, although the
Board gives the Portfolio Managers flexibility to adjust the gearing
tactically within a range of 10% net cash to 15% geared in normal markets.
During the reporting period, the Company's gearing ranged from 8.4% to 12.5%,
ending the reporting period at 10.8%, as the Portfolio Managers took advantage
of attractive valuations.
Gearing enhanced performance during the six-month review period and the Board
remains of the view that gearing is an efficient way to enhance long-term
returns for shareholders, albeit at the cost of a small increase in short-term
volatility. When arranging lending facilities for the Company, the Board takes
into consideration the cost of borrowing. The level of gearing is regularly
discussed with the Portfolio Managers and is adjusted by them to reflect the
risk appetite within parameters set by the Board.
During the last financial year ended 31st July 2025, the Company secured a new
£55 million 360-day revolving facility with Bank of America, offering
improved and more flexible terms compared to the previous arrangement. The
facility includes an option to increase the loan by £35 million up to
£90 million. In July 2025, the Company exercised £5 million of this option,
resulting in a total commitment of £60 million as of 31st July 2025. However,
the Company has since repaid this £5 million, reducing the total commitment
back to £55 million as at 31st January 2026.
Discount
The discount at which the Company's shares trade relative to NAV narrowed
slightly over the review period, reducing from 9.5% at the end of the 2025
financial year to 8.4% at 31st January 2026. This was narrower than the
prevailing average discount of the Company's UK smaller cap peers.
The Board believes it is of significant benefit to shareholders that the
Company's shares trade consistently close to their NAV and we strive to
achieve this by making the investment proposition as attractive as possible to
existing and prospective shareholders. To this end, we remain committed to
supporting the share price by paying an attractive and reliable dividend,
communicating the investment case effectively and actively considering further
growth opportunities that would deliver scale benefits to shareholders. In the
Board's view, your Company's superior long-term performance track record and
share rating put it in a strong position to lead the ongoing process of
rationalisation underway across the investment trust sector.
In addition, our broker and Manager continually review the Company's
rating and, in consultation with the Board, utilise the buy-back authority to
manage imbalances in supply and demand for the Company's shares when it is
considered that it will be effective and in the interests of all shareholders.
During the six months to 31st January 2026, the Company repurchased 5,340,250
shares into Treasury (equivalent to 4.3% of the shares in issue at the start
of the financial year) at an average discount of 9.9%. Over the same period,
the Company's UK smaller cap peers bought back an average of 6.0% of their
shares in issue excluding shares in Treasury. The Board is therefore pleased
to note that your Company's superior rating has been achieved with below
average shrinkage to its capital base. The Company did not issue any ordinary
shares either during the reporting period or subsequently.
At the end of the reporting period, there were 139,141,277 shares in issue
(including 14,029,991 shares held in Treasury). Between the period end and
27th March 2026, the Company has repurchased a further 125,000 shares into
Treasury (equivalent to 0.1% of the ordinary shares in issue as at 31st
January 2026) at an average discount of 9.0 %. The discount stood at 9.9 % at
this date.
Board of Directors
The Board consists of five members, which the Directors believe is an
appropriate number for the needs of the Company. A thorough appraisal process
conducted during the year confirmed that the Board has all the relevant skills
and experience to support the Company's ongoing success. Alice Ryder, who
joined the Board in February 2017, will retire at the Company's 2026 AGM in
November following the end of her nine-year tenure. The Board will shortly
commence the search for her replacement using an independent recruitment
consultant and will update shareholders on the results of this search in due
course.
Staying in Touch
Your Board believes it is vitally important that shareholders have regular
information about the Company's progress. If you have not already done so,
please consider signing up for our email updates featuring news and views, as
well as the latest performance of the portfolio. You can opt in via the
QR Code on page 3 of the 2026 Half Year Report or via the following link:
www.jpmorganuksmallcapgrowthandincomeplc.com.
Outlook
Notwithstanding the increased uncertainty stemming from heightened
geopolitics, the long-term investment case for UK smaller companies remains in
place. By their very nature, they tend to innovate and grow faster than
larger, mature businesses. This inherent vibrancy has seen UK smaller
companies outperform larger UK companies over the past 25 years. Their
performance has been close to that of the S&P 500 and they have outpaced
other major markets over the same period.
Furthermore, after a period in the doldrums, valuations of UK smaller
companies are now at compelling levels relative to their own history and
compared to UK large caps and other major markets. A resurgence in
international investor flows into the UK, combined with an increase in mergers
and acquisitions, suggests that investors are beginning to appreciate the
value on offer in UK equity markets. As has already been demonstrated by
takeover activity within the Company's portfolio, smaller cap stocks are
likely to be a particular beneficiary of this newfound appetite for
UK equities due to their relative affordability. Until the outbreak of the
Iranian war in recent weeks, there were also signs of gradual improvement in
the UK economy, which should support smaller companies disproportionately, as
they are typically more reliant on domestic economic activity than their
larger counterparts.
It is too early to call the extent of any negative market impacts resulting
from this latest conflict, however the trajectory for inflation and hence,
interest rates, looks less favourable as I write. Fortunately, the Board
remains confident that your Company's portfolio is in skilled and experienced
hands, with additional support from the Manager's extensive research
resources. The recent positive performance of the majority of the portfolio's
holdings, along with the Company's strong long-term performance track record,
provide ample evidence of the Portfolio Managers' skill at identifying
innovative, resilient companies with exciting growth prospects.
In summary, we believe your Company is well positioned to maintain its long
track record of providing shareholders with strong returns and outperformance
compared to its peers, as well as an attractive, predictable income stream. My
fellow Directors and I look forward to reporting on the Company's continued
progress and thank you for your ongoing support.
Katrina Hart
Chair
30th March 2026
INVESTMENT MANAGER'S REPORT
Performance and Market Background
As we said six months ago, global geopolitical tensions remained in the
foreground during the first half of our financial year to 31st July 2026.
Russia's war against Ukraine continued for its fourth year, the president of
Venezuela was ousted and Iran became an incredibly volatile situation. In
addition, the President of the US continued to surprise markets in numerous
ways, not least with regard to his comments on Greenland. One positive during
the period was that the third ceasefire in Gaza between Israel and Hamas,
which took place in October 2025, has to date remained in force. Amid
heightened tensions in the Middle East, we maintain a disciplined approach and
are closely monitoring developments.
In the UK, Labour's second Budget again rattled the stock market and its 18
months in power have been notable for the number of U-turns and climbdowns
that it has been compelled to make. That said, the UK economy has gently but
positively surprised many commentators. Interest rates continued to fall and
were reduced twice in the six months to 3.75%, bringing the total number of
rate cuts since August 2024 to six. Whilst inflation continued to exceed the
2% target, there were strong expectations that it would fall to 2% this
Spring. However, this view has now been upended by the US/Israeli attack on
Iran.
Against this backdrop, the Numis Smaller Companies plus AIM (ex Investment
Companies) Index was up +8.9% for the period. Your Company underperformed
during the half year and produced a total return on NAV of +5.3 %. Share price
volatility, especially among small and mid-sized companies, driven by macro
news flow, commodity price movements and concerns about the impact of AI on
certain business models, continues to make performance challenging. We outline
below the specific reasons for our underperformance relative to the benchmark.
Even so, your Company remains first quartile versus small cap peers over two,
three, five and ten years. Moreover, the discount narrowed over the year,
leading to a share price total return of +6.8%.
Portfolio
On the positive side, a number of our largest positions contributed strongly
to performance over the period. These included our long-term holdings in Lion
Finance (previously named Bank of Georgia), Plus500 (CFD trading) and Keller
(geotechnical specialist contractor). Other notable strong performers included
Applied Nutrition, a nutrition supplements company we bought at IPO
approximately one year ago, Serco (defence company) and Hochschild (gold and
silver miner), our largest commodity holding. In addition, we benefitted from
ongoing M&A within the UK equity market, with bids for two of our holdings
in the Financials sector, JTC and Just Group. On the negative side, two of our
holdings were major detractors. Our position in Warpaint London (value
cosmetics) disappointed in terms of profit delivery, as did Baltic Classified
(online classified ads in the Baltics), which was also hit by concerns over
disintermediation by AI and both positions were exited. Other notable
detractors from performance were two commodity companies, Greatland Resources
and Pan African Resources, both of which rose significantly in the six months
under review and neither of which were held in the portfolio. Both have
subsequently left our index.
During the period we made certain other changes to the portfolio, in part due
to the receipt of cash from our bid stocks. New additions included Norcros,
the bathroom and kitchen products company; Boku, a local payment network
company; Saga, the provider of services to the over 50s market, including
financial products and cruises; and Funding Circle Holdings, a multi-product
finance platform for SMEs, which facilitates access to capital for these
companies. We also bought small positions in two IPOs during the second half
of 2025, namely The Beauty Tech Group and the UK specialist bank Shawbrook.
Outlook
At the time of writing, all focus is on the events in the Middle East and all
questions revolve around a potential end date to the conflict. Prior to the
war, the economic backdrop for UK companies had started to become more
benign. Public finances had recently proved stronger than anticipated and
this had driven expectations of a reduction in government borrowing in
2026. As a result of this, bond yields were declining and further interest
rate cuts had looked to be on the cards this year. Instead, bond yields are
now rising again and any interest rate cuts are firmly on hold, as we all
await the outcome, longevity and impact of these geopolitical events.
Recent UK statistics demonstrate that unemployment, whilst rising, remains
fairly low at 5.2 % (and hopefully a further government U-turn on the
extension of the national living wage to younger workers will improve the
employment situation for them). The composite UK Purchasing Manager Indices at
53.9 are at almost a two year high and indicate growth. Whilst the
all-important Gfk consumer confidence figures are still negative, they had
been slowly trending in the right direction. In aggregate, household balance
sheets are now a net positive £60 billion, from a £350 billion net debt
figure early in 2020. Prior to the recent events in the Middle East it was our
view that this should at some point turn into increased consumer spending -
and as a consumer driven economy, this is crucial for the outlook.
Despite the war in the Gulf and the potential for short term higher inflation
in the UK, due largely to the rise in energy costs, we currently maintain our
positive outlook on our market and the portfolio remains geared. This reflects
our current view that the war will be short-lived and the economic impact on
the UK muted. Our focus is therefore on the compelling opportunities we see.
Whilst valuations have gradually risen over the last year, so have profits. UK
mid and small caps remain very cheap relative to their own history and
relative to the FTSE100. Your Company remains cheaper still, both on a P/E
basis relative to its benchmark and on a free cashflow yield basis. We have
outlined above just some of the exciting new additions we have made to the
portfolio and we believe we own many companies that will deliver strong
returns into the future. We do not expect the increased share price volatility
that we have been seeing to dissipate - whether AI related or not - and intend
to continue utilising it to your Company's advantage. We have outlined above
the continued M&A we have benefitted from in the portfolio over the first
half of this financial year and we reiterate our view that the level of
M&A and the number of companies initiating share buy backs due to their
cheap equity in our area of the market, confirm the compelling undervaluation
that we continue to see.
Georgina Brittain
Katen Patel
Portfolio Managers
30th March 2026
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 have not changed
significantly and fall into the following broad categories: strategic and
performance; discount/premium; smaller company investment and market;
political and economic; investment management team; accounting, legal and
regulatory; cybercrime; and climate change. Information on each of these areas
is given in the Strategic Report within the Annual Report and Financial
Statements for the year ended 31st July 2025 and in the view of the Board,
these principal risks and uncertainties are as applicable to the remaining six
months of the financial year as they were to the period under review. As noted
in the 2025 Annual Report, the Board, through the Audit Committee, has
identified Artificial Intelligence (AI) as an emerging risk due to its
potential to disrupt and enhance business processes, with implications for
long-term corporate valuations still uncertain.
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 (including its liquidity) 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 and 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 year financial report. For these reasons, they
consider there is reasonable evidence to continue to adopt the going concern
basis in preparing the financial statements.
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 31st January 2026, as required by the UK
Listing Authority Disclosure and Transparency Rules 4.2.4R; and
(ii) the half year management report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the UK Listing Authority
Disclosure 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
Katrina Hart
Chair
30th March 2026
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025 31st July 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 - 17,668 17,668 - (40,398) (40,398) - (12,409) (12,409)
Foreign currency exchange
gains/(losses) - 1 1 - - - - (1) (1)
Income from investments 6,286 432 6,718 6,192 - 6,192 15,330 242 15,572
Interest receivable and
similar income 221 - 221 283 - 283 522 - 522
Gross return/(loss) 6,507 18,101 24,608 6,475 (40,398) (33,923) 15,852 (12,168) 3,684
Management fee (404) (943) (1,347) (402) (936) (1,338) (802) (1,873) (2,675)
Other administrative expenses (305) - (305) (493) - (493) (825) - (825)
Net return/(loss) before
finance costs and taxation 5,798 17,158 22,956 5,580 (41,334) (35,754) 14,225 (14,041) 184
Finance costs (435) (1,016) (1,451) (487) (1,137) (1,624) (938) (2,189) (3,127)
Net return/(loss) before taxation 5,363 16,142 21,505 5,093 (42,471) (37,378) 13,287 (16,230) (2,943)
Taxation (46) - (46) (45) - (45) (74) - (74)
Net return/(loss) after taxation 5,317 16,142 21,459 5,048 (42,471) (37,423) 13,213 (16,230) (3,017)
Return/(loss) per ordinary
share (note 3) 4.19p 12.73p 16.92p 3.68p (30.96)p (27.28)p 9.83p (12.07)p (2.24)p
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 or loss for the
period and also the total comprehensive income.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Called up Share Capital
share premium redemption Other Capital Revenue
capital account reserve reserve(1,2) reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months ended 31st January 2026 (Unaudited) At 31st July 2025
6,957 - 2,903 195,406 267,750 - 473,016
Costs in relation to cancellation of
share premium account - - - (10) - - (10)
Repurchase of ordinary shares into Treasury - - - (17,249) - - (17,249)
Net return after taxation - - - - 16,142 5,317 21,459
Dividends paid in the period (note 4) - - - (3,933) - (5,317) (9,250)
At 31st January 2026 6,957 - 2,903 174,214 283,892 - 467,966
Six months ended 31st January 2025 (Unaudited)
At 31st July 2024 6,957 216,150 2,903 - 288,853 2,209 517,072
Cancellation of share premium account - (216,150) - 216,150 - - -
Repurchase of ordinary shares into Treasury - - - (7,591) - - (7,591)
Net (loss)/return after taxation - - - - (42,471) 5,048 (37,423)
Dividends paid in the period (note 4) - - - - (3,078) (7,257) (10,335)
At 31st January 2025 6,957 - 2,903 208,559 243,304 - 461,723
Year ended 31st July 2025 (Audited)
At 31st July 2024 6,957 216,150 2,903 - 288,853 2,209 517,072
Cancellation of share premium account - (216,150) - 216,150 - - -
Repurchase of ordinary shares into Treasury - - - (20,744) - - (20,744)
Net (loss)/return after taxation - - - - (16,230) 13,213 (3,017)
Dividends paid in the year (note 4) - - - - (4,873) (15,422) (20,295)
At 31st July 2025 6,957 - 2,903 195,406 267,750 - 473,016
( )
(1) Revenue reserve, Other reserve and part of the Capital reserves
form the distributable reserves of the Company and may be used to fund
distribution of profits to shareholders, including the repurchase of the
Company's own shares. In respect of the Capital reserves, £110,581,000
relates to net investment holding gains.
(2) Other reserve was created during the year ended 31st July 2025
following approval by the High Court to cancel the balance on the Share
premium account as at close of business on 1st August 2024. This forms part of
the Company's distributable reserves.
CONDENSED STATEMENT OF FINANCIAL POSITION
(Unaudited) (Unaudited) (Audited)
At 31st January At 31st January At 31st July
2026 2025 2025
£'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 518,284 505,513 511,548
Current assets
Debtors 3,281 2,168 3,244
Current asset investments 4,328 8,313 21,564
Cash at bank 296 253 300
7,905 10,734 25,108
Current liabilities
Creditors: amounts falling due within one year (58,223) (54,524) (63,640)
Net current liabilities (50,318) (43,790) (38,532)
Total assets less current liabilities 467,966 461,723 473,016
Net assets 467,966 461,723 473,016
Capital and reserves
Called up share capital 6,957 6,957 6,957
Share premium account - - -
Capital redemption reserve 2,903 2,903 2,903
Other reserve(1) 174,214 208,559 195,406
Capital reserves 283,892 243,304 267,750
Revenue reserve - - -
Total shareholders' funds 467,966 461,723 473,016
Net asset value per ordinary share (note 5) 374.0p 342.3p 362.6p
(1) Other reserve was created during the year ended 31st July 2025
following approval by the High Court to cancel the share premium account as at
close of business on 1st August 2024.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025 31st July 2025
£'000 £'000 £'000
Cash flows from operating activities
Net return/(loss) before finance costs and taxation 22,956 (35,754) 184
Adjustment for:
(Gains)/losses on investments held at fair value through
profit or loss (17,668) 40,398 12,409
Dividend income (6,718) (6,192) (15,572)
Interest income (221) (283) (522)
Decrease/(increase) in other debtors 11 (31) (16)
(Decrease)/increase in accrued expenses (82) 104 135
Net cash outflow from operating activities before dividends,
interest and taxation (1,722) (1,758) (3,382)
Dividends received 7,108 6,756 15,656
Interest received 202 283 522
Overseas withholding tax paid (6) - -
Net cash inflow from operating activities 5,582 5,281 12,796
Purchases of investments (92,105) (59,917) (109,864)
Sales of investments 103,470 76,279 148,473
Net cash inflow from investing activities 11,365 16,362 38,609
Dividends paid (9,250) (10,335) (20,295)
Costs in relation to cancellation of share premium account (10) - -
Repurchase of ordinary shares into Treasury (18,399) (7,591) (19,594)
Repayment of bank loans (5,000) (2,000) (2,000)
Drawdown of bank loans - - 7,000
Interest paid (1,528) (1,664) (3,165)
Net cash outflow from financing activities (34,187) (21,590) (38,054)
(Decrease)/increase in cash and cash equivalents(1) (17,240) 53 13,351
Cash and cash equivalents at start of period/year(1) 21,864 8,513 8,513
Cash and cash equivalents at end of period/year(1) 4,624 8,566 21,864
Cash and cash equivalents consist of(1):
Cash at bank 296 253 300
Investment in JPMorgan GBP Liquidity Fund 4,328 8,313 21,564
Total 4,624 8,566 21,864
( )(1) The term 'cash and cash equivalents' is used for the purposes
of the Statement of Cash Flows.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the six months ended 31st January 2026
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 July 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 including 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 financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, in accordance with
the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice
('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland' 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 31st January 2026.
All of the Company's operations are of a continuing nature.
3. Return/(loss) per ordinary share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025 31st July 2025
£'000 £'000 £'000
Return per share is based on the following:
Revenue return 5,317 5,048 13,213
Capital return/(loss) 16,142 (42,471) (16,230)
Total return/(loss) 21,459 (37,423) (3,017)
Weighted average number of ordinary shares in issue during the period/year 126,818,921 137,185,340 134,449,604
Revenue return per ordinary share 4.19p 3.68p 9.83p
Capital return/(loss) per ordinary share 12.73p (30.96)p (12.07)p
Total return/(loss) per ordinary share 16.92p (27.28)p (2.24)p
4. Dividends
Dividend paid and declared
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025 31st July 2025
Pence £'000 Pence £'000 Pence £'000
Dividends paid
First quarterly interim dividend 3.63 4,685 3.76 5,167 3.76 5,167
Second quarterly interim dividend 3.63 4,565 3.76 5,168 3.76 5,167
Third quarterly interim dividend - - - - 3.76 5,036
Fourth quarterly interim dividend - - - - 3.76 4,925
Total dividends paid in the period/year 7.26 9,250 7.52 10,335 15.04 20,295
Dividend declared
Third quarterly interim dividend 3.63 4,542 3.76 5,036
All dividends paid in the period have been funded from the Revenue reserve and
partly from other distributable reserves.
The Company has introduced an enhanced dividend policy, targeting a 4% yield
on the NAV per annum, calculated on the basis of 4% of NAV as at 31st July
each year, being the end of the preceding financial year of the Company. Under
the enhanced dividend policy, the Company has transitioned from paying a
single annual dividend to distributing four equal quarterly interim dividends.
These dividends will be announced in August, November, February and May and
are expected to be paid in October, January, April and July each year.
A third quarterly interim dividend of 3.63p per share amounting to
£4,542,000, has been declared payable for the year ending 31st July 2026.
This will be paid on 1st April 2026 to shareholders on the register at the
close of business on 20th February 2026. The ex-dividend date will be 19th
February 2026.
5. Net asset value per ordinary share
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025 31st July 2025
Net assets (£'000) 467,966 461,723 473,016
Number of ordinary shares in issue, excluding shares held in Treasury 125,111,286 134,881,536 130,451,536
Net asset value per ordinary share 374.0p 342.3p 362.6p
6. Fair valuation of investments
The fair value hierarchy disclosures required by FRS 102 are given below:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
31st January 2026 31st January 2025(2) 31st July 2025
Assets Liabilities Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000 £'000 £'000
Level 1 518,284 - 505,513 - 511,548 -
Level 2(1) 4,328 - 8,313 - 21,564 -
Total 522,612 - 513,826 - 533,112 -
( )
(1) JPMorgan GBP Liquidity Fund, a money market fund.
(2) The figures for the six months ended 31st January 2025 have been
restated to include the current asset investment in JPMorgan GBP Liquidity
Fund as Level 2.
7. Analysis of changes in net debt
As at Other As at
31st July non-cash 31st January
2025 Cash flows charges 2026
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash at bank 300 (4) - 296
Current asset investments(1) 21,564 (17,236) - 4,328
21,864 (17,240) - 4,624
Borrowings
Debt due in less than one year (60,000) 5,000 - (55,000)
(60,000) 5,000 - (55,000)
Net debt (38,136) (12,240) - (50,376)
( )
(1) JPMorgan GBP Liquidity Fund, a money market fund.
JPMORGAN FUNDS LIMITED
30th March 2026
For further information, please contact:
Anmol Dhillon
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or or +44 1268 44 44 70
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
www.jpmorganuksmallcapgrowthandincomeplc.com
(http://www.jpmorganuksmallcapgrowthandincomeplc.com) 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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. END IR DBLFXQXLEBBB
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