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FinancialsConservativeMid Cap

Market Cap
£375.31m
Enterprise Value
£400.44m
Revenue
£63.26m

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Half-year Report

Lowland Investment

15/05/2025 07:00

RNS Number : 7182I

Lowland Investment Co PLC

15 May 2025

 

JANUS HENDERSON FUND MANAGEMENT UK LIMITED

 

LOWLAND INVESTMENT COMPANY PLC

 

Legal Entity Identifier: 2138008RHG5363FEHV19

 

LOWLAND INVESTMENT COMPANY PLC

          Unaudited results for the half-year ended 31 March 2025

 

This announcement contains regulated information.

 

Investment objective

The Company aims to give shareholders a higher than average return with growth of both capital and income over the medium to long-term by investing in a broad spread of predominantly UK companies. The Company measures its performance against the FTSE All-Share Index Total Return.

 

Investment policy

Asset Allocation

The Company invests in a combination of large, medium and smaller companies listed in the UK.  We are not constrained by the weightings of any index; we limit risk by running a diversified portfolio, which is constructed on a bottom-up, stock-picking basis.  In normal circumstances up to half the portfolio is invested in FTSE 100 companies; the remainder is divided between small and medium-sized companies. The Manager may also invest a maximum of 15% in other listed trusts.

 

Dividend

The Company aims to pay a progressive dividend, with each dividend equal to or greater than its previous equivalent.

 

Gearing

The Board believes that debt in a closed-end fund is a valuable source of long-term outperformance, and therefore the Company will usually be geared.  At the point of drawing down debt, gearing will not exceed 20% of the portfolio valuation. Borrowing will be a mixture of short and long-dated debt, depending on relative attractiveness of rates.

 

Key data for the six months to 31 March 2025

Net Asset Value ('NAV') Total Return -2.1%
Benchmark1 Total Return 4.1%
Dividend in respect of the period 3.275p

1 FTSE All-Share Index

 

Financial highlights

Half-year ended
31 Mar 2025 Half-year ended
31 Mar 2024 Year ended
30 Sept 2024
NAV per share (debt at par) 137.2p 136.3p 144.2p
NAV per share (debt at fair value) 139.9p 138.2p 146.1p
Share price1 129.0p 121.5p 127.0p
Market capitalisation £312m £328m £343m
Dividend per share 3.275p 3.20p 6.425p
Ongoing charge 0.71% 0.65% 0.66%
Dividend yield2 5.0% 5.2% 5.1%
Gearing 13.8% 13.1% 11.0%
Discount (debt at par) 6.0% 10.9% 11.9%
Discount (debt at fair value) 7.8% 12.1% 13.1%

1 Using mid-market closing price

2 Based on dividends paid and declared in respect of the previous twelve month period

 

 

Total return performance (including dividends reinvested and excluding transaction costs)

 

6 months
% 1 year
% 3 years
% 5 years
% 10 years
% 25 years
%
NAV -2.1 5.9 14.5 85.2 50.5 636.4
Share Price1 2.9 11.8 12.1 86.4 55.0 818.7
Benchmark2 4.1 10.5 23.3 76.6 81.7 251.7

 

1 Using mid-market closing price

2 FTSE All-Share Index

 

Sources: Morningstar Direct, Factset and Janus Henderson

 

http://www.rns-pdf.londonstockexchange.com/rns/7182I_4-2025-5-14.pdf

 

Historical record - Year to 30 September

 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 As at 31 Mar
20251
Net assets2 (£m) 355 387 440 439 386 279 394 313 349 390 332
NAV3* 131.8p 143.2p 162.8p 162.5p 142.8p 103.1p 145.9p 115.9p 129.3p 144.2p 137.2p
Share price* 128.7p 133.7p 150.4p 151.5p 128.0p 91.4p 131.5p 104.5p 113.0p 127.0p 129.0p
Net revenue* 4.64p 4.77p 4.91p 5.86p 6.80p 3.38p 4.27p 6.10p 6.71p 6.29p 2.06p
Net dividends paid per ordinary share* 4.10p 4.50p 4.90p 5.40p 5.95p 6.00p 6.025p 6.10p 6.25p 6.425p 3.275p4

 

1 Net revenue and net dividends paid are for the six month period ended 31 March 2025

2 Attributable to ordinary shares

3 NAV per ordinary share with debt at par value

4 First interim dividend of 1.625p per ordinary share paid on 30 April 2025 and second interim dividend of 1.65p per ordinary share that will be paid on 31 July 2025.

 

* Figures for 2015 to 2021 have been restated due to the sub-division of each ordinary share of 25p into ten ordinary shares of 2.5p each on 7 February 2022.

 

 

INTERIM MANAGEMENT REPORT

 

CHAIR'S STATEMENT

 

Overview

Against a turbulent geopolitical backdrop, Lowland's performance during the six months to the end of March was disappointing, with the NAV falling by 2.1%, relative to a 4.1% rise in the FTSE All-Share benchmark.  In share price terms the picture was rather more positive, as the ongoing buyback helped to narrow the discount, resulting in a rise in the share price of 2.9%.

 

As we have seen before in periods of high volatility, investors have tended to seek the safety of larger companies, and small and medium sized companies substantially underperformed relative to the FTSE 100, as demonstrated by the performance of the Deutsche Numis Smaller Companies Plus AIM (excluding investment companies) Index, which fell by 7.5%.

 

Dividends

Lowland produced earnings per share ('EPS') in the first half of the year of 2.06p, an increase from 1.71p in the same period last year. The share buyback was also moderately earnings enhancing.  A second interim dividend of 1.65p has been declared, representing an increase of approximately 3% on the second interim dividend last year.  We expect to maintain our quarterly progressive dividend policy, so that the last two dividends in respect of the current year should be at least at this rate.

 

Gearing

Gearing rose modestly during the period, ending at 13.8% compared to 11.0% at our last financial year end (30 September 2024).

 

Share price and discount

In January the Board initiated a buyback programme for the Company's shares, and we will continue to monitor the situation and buy back shares when we believe it is in the best interests of shareholders.  Since that time (and to the date of this report) 38.1m shares have been bought back, at an average discount level of 7.8%. The total cost of these purchases was £48.1m.  The discount narrowed from 13.1% at financial year end to 7.8% at the half year end (both with debt at fair value).

 

Board

As previously announced, my predecessor Robbie Robertson stepped down at the AGM.  I would like to take this opportunity to thank Robbie for his many years of exemplary leadership, his skill in steering the Company and for putting together a strong, supportive and genuinely diverse board.  We wish him all the best for the future.

 

Outlook

Tariffs are currently the largest source of uncertainty in the market, and more widely the unpredictability of the Trump administration may mean that there is a reluctance on the part of companies to commit to any major investment until they have greater confidence over the outlook. In the short term this is reflected in the high level of volatility in markets, while the longer term impact is difficult to predict with any degree of certainty but is likely to include higher inflation and weaker economic growth.

 

In this environment, the best sources of protection are, in our view, modest valuations, strong management teams and genuine diversity of holdings.  The valuation of the portfolio is low on 10x historic earnings, with the smaller companies looking particularly cheap. On any improvement in the trading environment, or further interest rate cuts, there remains the potential for a recovery in both earnings and valuation levels.

 

From the period end to close of business on 12 May 2025, the Company's NAV had risen 5.7%, its share price by 6.8%, and the FTSE All-Share, the Company's benchmark, by 1.5%.

    

Helena Vinnicombe

Chair

14 May 2025

 

 

Equity allocation 

                                   

Sector Weightings % as at 31 March 2025
Company Benchmark1
Basic Materials 6.3 5.5
Consumer Discretionary 9.7 7.7
Consumer Staples 4.7 14.5
Energy 7.0 10.1
Financials 30.4 27.0
Health Care 4.2 11.5
Industrials 25.4 12.0
Real Estate 5.1 2.4
Technology 1.5 4.2
Telecommunications 2.8 1.2
Utilities 2.9 3.9
Total 100.0 100.0

1 FTSE All-Share Index

 

Sector Weightings % as at 30 September 2024
Company Benchmark1
Basic Materials 6.9 7.0
Consumer Discretionary 10.4 11.3
Consumer Staples 7.2 14.6
Energy 5.6 9.3
Financials 29.7 24.6
Health Care 3.4 11.7
Industrials 24.9 12.2
Real Estate 4.8 2.8
Technology 1.5 1.3
Telecommunications 2.6 1.2
Utilities 3.0 4.0
Total 100.0 100.0

1 FTSE All-Share Index

 

Market Cap Weightings % as at 31 Mar 2025
Company Benchmark1
FTSE 100 48.7 86.9
FTSE 250 20.0 11.4
FTSE Small-Cap 12.1 1.7
FTSE AIM 12.8 -
FTSE Fledgling 0.3 -
Overseas 4.8 -
Other 1.3 -
Total 100.0 100.0

1 FTSE All-Share Index

 

 

FUND MANAGERS' REPORT

 

Performance Review

It was a poor six month period for Lowland, with its net asset value falling 2.1%, underperforming a rise in its FTSE All-Share benchmark of 4.1%. Over the same time period the Deutsche Numis Smaller Companies Plus AIM (excluding investment companies) index fell 7.5%.

 

The underperformance of the Company relative to the FTSE All-Share benchmark was largely as a result of investing more in smaller companies, which substantially underperformed the largest companies listed in the FTSE 100.

 

When viewed in the chart below, the effect of company size on the Company's performance can be clearly seen.

Disappointingly, stock selection was also a modest detractor, having been positive in each of the previous two financial

years. We go into greater detail in the stock attribution section later in this report. Share buybacks were initiated during the period and were a modest contributor to performance, as shown in the chart below.

 

Attribution returns (%):

 

http://www.rns-pdf.londonstockexchange.com/rns/7182I_2-2025-5-14.pdf

 

The outperformance of the biggest companies was, in our view, a reflection of persistent outflows from UK equities.

The ownership of UK equities is now majority overseas, and international investors are more likely to favour large,

liquid companies. This has left smaller UK companies lowly valued versus their history (see chart below, which

illustrates that the FTSE 100, FTSE Small Cap and FTSE 250 indices are all trading at the low end of their historic valuation range, while the opposite would be true for the US market).

 

Price/earnings multiple is lower than historic average for UK large, medium and smaller companies:

 

http://www.rns-pdf.londonstockexchange.com/rns/7182I_3-2025-5-14.pdf

Source: Goldman Sachs as at 16 April 2025, 12m forward P/E percentile rank versus 18 year history

 

Ten largest absolute contributors

Share price total return (%) Contribution to return (%)
Standard Chartered 46.4 1.2
HSBC 36.2 1.1
Barclays 30.5 0.8
Babcock 53.8 0.6
Natwest 36.1 0.5
Shell 19.0 0.5
BP 14.7 0.4
Aviva 14.8 0.4
Lloyds 22.6 0.3
BT 14.0 0.3

 

It is notable that all of the ten best performers during the period are large companies. Within this, there is a heavy concentration in the banks sector, where margins have benefitted from a return to more 'normal' interest rates at a time when conservative lending practices have meant loan losses remain low.

 

Ten largest absolute detractors (largest detractor at the top)

Share price total return (%) Contribution to return (%)
Conduit -33.4 -0.5
STV -32.9 -0.5
Speedy Hire -46.2 -0.5
Morgan Advanced Materials -24.8 -0.4
Workspace -34.8 -0.4
Sainsbury -19.1 -0.3
Renold -22.6 -0.3
Marshalls -25.9 -0.3
Kingfisher -20.4 -0.3
Ricardo -41.7 -0.3

 

The majority of the worst performers saw share prices fall as a result of subdued economic activity depressing earnings. For example, STV, a free-to-air broadcaster and content producer, saw its share price fall on the expectation of a weak Scottish advertising market, with business confidence impacted by the autumn Budget. It was not solely UK end markets that were weak - retailer Kingfisher, for example, continues to see poor trading in its French business. While end markets are challenging, valuation levels already substantially reflect this. For example the portfolio in aggregate traded on 10x 12 month historic earnings as at the end of March. On any improved certainty in the trading environment, or further reductions in interest rates, there is the potential for a recovery in both earnings and valuation levels.

 

The largest detractor, reinsurer Conduit, saw its share price fall for idiosyncratic reasons as a result of higher than expected losses from California wildfires. The position was subsequently sold in favour of more diversified non-life insurers that are held such as Beazley.

 

Activity

It is important in volatile markets to have a genuinely diverse portfolio of holdings. This is the best way to preserve capital over time. The purchases made in the period were therefore in a broad range of very different sorts of companies. The one attribute that unites them is that we believe they have very able management teams that are serving their client base well. The stocks purchased included, amongst the larger companies, Mondi and Segro. The former is a well invested global packaging business whilst the latter is an investment portfolio of well-situated industrial properties. In the smaller company area, a holding in bathroom supplier Norcros was added. We believe that the management team will respond well to whatever problems are encountered.

 

The sales were largely reductions in the holdings of companies that had seen share price appreciation and were therefore starting to look expensive. The reduction in holdings that fall into this category included M&S and Barclays. We believe these remain good sound companies but they are less undervalued than they were. The proceeds are being used for new holdings to refresh the portfolio. The exception was Dowlais which was sold after it received a takeover bid.

 

Outlook

Tariffs are the current concern for investors and if imposed as currently suggested will lead to downgrades in economic activity and higher inflation. The biggest losers could ironically be the American consumer so there is a chance the tariffs will be reduced in the coming months. The UK escapes relatively unscathed. The cheapest stocks in the UK are usually domestic earners and these are well represented in the portfolio. They are also the companies least affected by Trump's tariffs. They might even be indirect beneficiaries as reduced global economic activity will bring forward interest rate cuts.  These cuts will be useful to UK businesses and should divert cash from bank deposits into the stock market. The dividend yield from equities coupled with low valuations may attract investment support.  This is a positive background for Lowland.  We will remain focused on strong companies that are providing excellent products or services to their clients. It is by providing excellence that they will weather any unforeseen macro-economic storm. A mixture of low valuations, strong management teams and expected interest rate cuts are behind the confidence we have in running a reasonable level of gearing and for our positive outlook for the Company.

    

James Henderson and Laura Foll

Fund Managers

14 May 2025

 

 

Related party transactions

The Company's current related parties are its Directors and Janus Henderson. There have been no material transactions between the Company and its Directors during the year and the only amounts paid to them were in respect of Directors' remuneration and expenses incurred on the Company's business, for which there were no outstanding amounts payable at the period end.

 

In relation to the provision of services by Janus Henderson, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties, there have been no material transactions with Janus Henderson affecting the financial position of the Company during the year under review.

 

Principal risks and uncertainties

The principal risks and uncertainties associated with the Company's business can be divided into various areas:

 

Market, geopolitical, macroeconomic or environmental;

Global pandemic;

Investment activity and strategy;

Portfolio and market price;

Dividend income;

Financial;

Gearing;

Tax and regulatory; and

Operational.

 

Information on these risks and how they are managed is given in the Annual Report for the year ended 30 September 2024. The Board has completed a thorough review of the principal risks, and the uncertainties facing the Company.  As a result of this review, the Board considers that the principal risks and uncertainties remain largely unchanged and that they are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

Statement of Directors' Responsibilities

The Directors confirm that, to the best of their knowledge:

 

(a) the condensed set of financial statements for the half-year to 31 March 2025 has been prepared in accordance with "FRS 104 Interim Financial Reporting" and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

 

(b) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

 

(c) the Interim Management Report includes a fair review of the information required by the Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

On behalf of the Board

Helena Vinnicombe

Chair

14 May 2025

 

INVESTMENT PORTFOLIO

 

As at 31 March 2025

Company Sector Market value
£'000 % of
portfolio
HSBC Banks 14,681 3.9
BP Oil and Gas 10,684 2.8
Shell Oil and Gas 10,588 2.8
GSK Pharmaceuticals and Biotechnology 9,269 2.4
Barclays Banks 8,922 2.4
Aviva Life Insurance 8,714 2.3
FBD Non-Life Insurance (Ireland) 8,315 2.2
M&G Investment Banking and Brokerage Services 7,940 2.1
BT Group Telecommunications Service Providers 7,786 2.1
Irish Continental Industrial Transportation (Ireland) 7,220 1.9
10 largest 94,119 24.9
International Personal Finance Finance and Credit Services 7,122 1.9
Phoenix Life Insurance 6,979 1.9
Standard Chartered Banks 6,821 1.8
National Grid Gas, Water and Multi-utilities 6,734 1.8
Tesco Personal Care, Drug and Grocery Stores 6,174 1.6
Balfour Beatty Construction and Materials 6,107 1.6
Legal & General Life Insurance 6,065 1.6
Land Securities Real Estate Investment Trusts 5,775 1.5
Rio Tinto Industrial Metals and Mining 5,733 1.5
Babcock Aerospace and Defence 5,722 1.5
20 largest 157,351 41.6
Epwin ¹ Construction and Materials 5,672 1.5
Cranswick Food Producers 5,543 1.5
Clarkson Industrial Transportation 5,486 1.5
IMI Electronic and Electrical Equipment 5,256 1.4
Senior Aerospace and Defence 5,056 1.3
Lloyds Banking Banks 5,046 1.3
Prudential Life Insurance 4,957 1.3
Morgan Advanced Materials Electronic and Electrical Equipment 4,821 1.3
Hill & Smith Industrial Metals and Mining 4,752 1.3
Anglo American Industrial Metals and Mining 4,718 1.2
30 largest 208,658 55.2
J Sainsbury Personal Care, Drug and Grocery Stores 4,700 1.2
Serica Energy ¹ Oil and Gas 4,687 1.2
Smith & Nephew Medical Equipment and Services 4,609 1.2
ZIGUP Industrial Transportation 4,407 1.2
NatWest Banks 4,373 1.2
Ibstock Construction and Materials 4,345 1.2
Kingfisher Retailers 4,239 1.1
STV Media 4,199 1.1
Severn Trent Gas, Water and Multi-utilities 4,176 1.1
Renold ¹ Industrial Engineering 4,091 1.1
40 largest 252,484 66.8
Johnson Matthey Chemicals 3,906 1.0
H&T Group ¹ Finance and Credit Services 3,886 1.0
Elecosoft ¹ Software and Computer Services 3,721 1.0
Chesnara Life Insurance 3,712 1.0
Johnson Service ¹ Industrial Support Services 3,709 1.0
Beazley Non-Life Insurance 3,708 1.0
Marshalls Construction and Materials 3,614 1.0
Springfield Properties ¹ Household Goods and Home Construction 3,483 0.9
FRP Advisory Group ¹ Industrial Support Services 3,456 0.9
DCC Industrial Support Services (Ireland) 3,190 0.8
50 largest 288,869 76.4
Sabre Insurance Non-Life Insurance 3,186 0.8
Inchcape Retailers 2,914 0.8
Vertu Motors ¹ Retailers 2,910 0.8
Somero Enterprises ¹ Industrial Engineering (USA) 2,856 0.8
Shaftesbury Capital Real Estate Investment Trusts 2,808 0.8
Reach Media 2,788 0.7
Vodafone Telecommunications Service Providers 2,710 0.7
Workspace Real Estate Investment Trusts 2,698 0.7
Mondi General Industrials 2,581 0.7
Castings Industrial Metals and Mining 2,566 0.7
60 largest 316,886 83.9
Smiths News Industrial Support Services 2,456 0.7
Vanquis Banking Group Finance and Credit Services 2,421 0.6
Bellway Household Goods and Home Construction 2,364 0.6
Hammerson Real Estate Investment Trusts 2,345 0.6
Conduit Non-Life Insurance 2,331 0.6
Halfords Retailers 2,323 0.6
TP ICAP Group Investment Banking and Brokerage Services 2,322 0.6
Palace Capital Real Estate Investment Trusts 2,146 0.6
Elementis Chemicals 2,132 0.6
TT Electronics Technology Hardware and Equipment 2,075 0.5
70 largest 339,801 89.9
Speedy Hire Industrial Support Services 2,042 0.5
Dunelm Group Retailers 1,999 0.5
Macfarlane General Industrials 1,894 0.5
Oxford Sciences Enterprises ² Pharmaceuticals and Biotechnology 1,840 0.5
IP Group Investment Banking and Brokerage Services 1,787 0.5
Norcros Construction and Materials 1,732 0.5
Segro Real Estate Investment Trusts 1,727 0.5
Helical Real Estate Investment and Services 1,675 0.5
Domino's Pizza Group Travel and Leisure 1,619 0.4
Ilika ¹ Electronic and Electrical Equipment 1,602 0.4
80 largest 357,718 94.7
Kier Group Construction and Materials 1,589 0.4
Coats Group General Industrials 1,580 0.4
Midwich ¹ Industrial Support Services 1,545 0.4
DFS Furniture Retailers 1,315 0.4
RWS Holdings ¹ Industrial Support Services 1,302 0.3
Aberdeen Group Investment Banking and Brokerage Services 1,160 0.3
Headlam Household Goods and Home Construction 1,123 0.3
Churchill China ¹ Household Goods and Home Construction 1,087 0.3
Airea ¹ Household Goods and Home Construction 1,072 0.3
PZ Cussons Personal Care, Drug and Grocery Stores 1,011 0.3
90 largest 370,502 98.1
Next 15 ¹ Media 862 0.2
Card Factory Retailers 852 0.2
Carclo General Industrials 797 0.2
Watkin Jones ¹ Household Goods and Home Construction 751 0.2
XP Power Electronic and Electrical Equipment 739 0.2
Flowtech Fluidpower ¹ Electronic and Electrical Equipment 651 0.2
Wynnstay ¹ Food Producers 486 0.1
River UK Micro Cap (formerly River & Mercantile) Closed End Investments 410 0.1
Ultimate Products Household Goods and Home Construction 405 0.1
Paypoint Industrial Support Services 363 0.1
100 largest 376,818 99.7


1 AIM Stocks

2 Unlisted Investments

Source: Janus Henderson

 

 

CONDENSED INCOME STATEMENT

 

(Unaudited)
Half-year ended
31 March 2025 (Unaudited)
Half-year ended
31 March 2024 (Audited)
Year ended
30 September 2024
Revenue
return
£'000 Capital
return
£'000 Total
£'000 Revenue
return
£'000 Capital
return
£'000 Total
£'000 Revenue
return
£'000 Capital
return
£'000 Total
£'000
(Losses)/gains on investments held at fair value through profit or loss - (16,569) (16,569) - 23,883 23,883 - 42,550 42,550
Income from investments 6,697 - 6,697 5,849 - 5,849 19,666 - 19,666
Other interest receivable and similar income 74 - 74 68 - 68 160 - 160
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Gross revenue and capital (losses)/gains 6,771 (16,569) (9,798) 5,917 23,883 29,800 19,826 42,550 62,376
Management fee (note 2) (436) (436) (872) (430) (430) (860) (867) (868) (1,735)
Other administrative
expenses (note 2) (416) - (416) (360) - (360) (802) - (802)
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Net return/(loss) before finance costs and taxation 5,919 (17,005) (11,086) 5,127 23,453 28,580 18,157 41,682 59,839
Finance costs (523) (523) (1,046) (517) (517) (1,034) (1,115) (1,115) (2,230)
-------- -------- -------- --------- -------- --------- --------- --------- ---------
Net return/(loss) before
taxation 5,396 (17,528) (12,132) 4,610 22,936 27,546 17,042 40,567 57,609
Taxation on net return (2) - (2) - - - (37) - (37)
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Net return/(loss) after taxation 5,394 (17,528) (12,134) 4,610 22,936 27,546 17,005 40,567 57,572
====== ====== ====== ====== ====== ====== ===== ======= ======
Return/(loss) per ordinary
share - basic and diluted
(note 3) 2.06p (6.69p) (4.63p) 1.71p 8.49p 10.20p 6.29p 15.01p 21.30p
====== ====== ====== ====== ====== ====== ===== ====== ======

 

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

 

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.

 

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

 

The accompanying notes are an integral part of the condensed financial statements.

CONDENSED STATEMENT OF CHANGES IN EQUITY

 

(Unaudited)
Half-year ended 31 March 2025
Called up share capital
£'000 Share premium account
£'000 Capital redemption
reserve
£'000 Other capital reserves
£'000 Revenue
reserve
£'000 Total
£'000
At 1 October 2024 6,755 61,619 1,007 310,618 9,634 389,633
Net return after taxation - - - (17,528) 5,394 (12,134)
Buyback of shares for treasury - - - (36,699) - (36,699)
Third interim dividend (1.60p) for
the year ended 30 September 2024 - - - - (4,323) (4,323)
Final dividend (1.625p) for
the year ended 30 September 2024 - - - - (4,391) (4,391)
Return of unclaimed dividends - - - - 22 22
------------ ------------ ----------- ----------- ----------- -----------
At 31 March 2025 6,755 61,619 1,007 256,391 6,336 332,108
======= ======= ======= ====== ======= =======
(Unaudited)
Half-year ended 31 March 2024
Called up share capital
£'000 Share premium account
£'000 Capital redemption
reserve
£'000 Other capital reserves
£'000 Revenue
reserve
£'000 Total
£'000
At 1 October 2023 6,755 61,619 1,007 270,051 9,913 349,345
Net return after taxation - - - 22,936 4,610 27,546
Third interim dividend (1.60p) for
the year ended 30 September 2023 - - - - (4,323) (4,323)
Final dividend (1.60p) for
the year ended 30 September 2023 - - - - (4,323) (4,323)
Return of unclaimed dividends - - - - 8 8
------------ ------------ ----------- ----------- ----------- -----------
At 31 March 2024 6,755 61,619 1,007 292,987 5,885 368,253
======= ======= ======= ====== ======= =======
(Audited)
Year ended 30 September 2024
Called up share capital
£'000 Share
premium
account
£'000 Capital
redemption
reserve
£'000 Other capital reserves
£'000 Revenue reserve
£'000 Total
£'000
At 1 October 2023 6,755 61,619 1,007 270,051 9,913 349,345
Net return after taxation - - - 40,567 17,005 57,572
Third interim dividend (1.60p) for
the year ended 30 September 2023 - - - - (4,323) (4,323)
Final dividend (1.60p) for
the year ended 30 September 2023 - - - - (4,323) (4,323)
First interim dividend (1.60p) for the
year ended 30 September 2024 - - - - (4,323) (4,323)
Second interim dividend (1.60p) for the
year ended 30 September 2024 - - - - (4,323) (4,323)
Return of unclaimed dividends - - - - 8 8
----------- ----------- ----------- ----------- ------------ -----------
At 30 September 2024 6,755 61,619 1,007 310,618 9,634 389,633
======= ======= ======= ======= ======= =======


____________________                

 

The accompanying notes form an integral part of these condensed financial statements.

 

CONDENSED STATEMENT OF FINANCIAL POSITION

 

(Unaudited)
As at
31 March 2025
£'000 (Unaudited)
As at
31 March 2024
£'000 (Audited)
As at
30 September 2024
£'000
Fixed assets 
Investments held at fair value through profit or loss (note 4) 377,870 416,381 432,617
----------- ----------- -----------
Current assets 
Debtors 2,976 2,713 2,428
Cash at bank 3,119 1,487 5,161
----------- ----------- -----------
6,095 4,200 7,589
Creditors: amounts falling due within one year (22,026) (22,510) (20,749)
----------- ----------- -----------
Net current liabilities (15,931) (18,310) (13,160)
----------- ----------- -----------
Total assets less current liabilities 361,939 398,071 419,457
----------- ----------- -----------
Creditors: amounts falling due after more than one year (29,831) (29,818) (29,824)
----------- ----------- -----------
Net assets 332,108 368,253 389,633
====== ====== =======
Capital and reserves 
Called up share capital 6,755 6,755 6,755
Share premium account 61,619 61,619 61,619
Capital redemption reserve 1,007 1,007 1,007
Other capital reserves 256,391 292,987 310,618
Revenue reserve 6,336 5,885 9,634
----------- ----------- -----------
Total shareholders' funds 332,108 368,253 389,633
====== ====== =======
Net asset value per ordinary share - basic and diluted(note 7) 137.2p 136.3p 144.2p
======= ======= =======

 

The accompanying notes form an integral part of these condensed financial statements.

 

 

CONDENSED STATEMENT OF CASH FLOWS

(Unaudited)
Half-year ended
31 March 2025
£'000 (Unaudited)
Half-year ended 31 March 2024
£'000 (Audited)
Year ended
30 September 2024
£'000
Cash flows from operating activities 
Net (loss)/gain before taxation (12,132) 27,546 57,609
Add back: finance costs 1,046 1,034 2,230
Add: losses/(gains) on investments held at fair value through profit or loss 16,569 (23,883) (42,550)
Withholding tax on dividends deducted at source (2) 54 16
(Increase)/decrease in debtors (262) 39 324
(Decrease)/increase in creditors (465) 48 541
----------- ----------- -----------
Net cash inflow from operating activities 4,754 4,838 18,170
----------- ----------- -----------
Cash flows from investing activities 
Purchase of investments (23,114) (38,942) (78,497)
Sale of investments 60,907 38,828 80,668
----------- ----------- -----------
Net cash inflow/(outflow) from investing activities 37,793 (114) 2,171
Cash flows from financing activities 
Equity dividends paid (net of refund of unclaimed distributions and reclaimed distributions) (8,692) (8,638) (17,284)
Share buybacks for treasury (36,261) - -
Loans drawn down 23,260 71,282 37,736
Loans repaid (21,772) (67,782) (36,378)
Interest paid (1,128) (1,022) (2,177)
----------- ----------- -----------
Net cash outflow from financing activities (44,593) (6,160) (18,103)
Net (decrease)/increase in cash and cash equivalents (2,046) (1,436) 2,238
Cash and cash equivalents at start of year 5,161 2,926 2,926
Effect of foreign exchange rates 4 (3) (3)
----------- ----------- -----------
Cash and cash equivalents at end of year 3,119 1,487 5,161
====== ====== ======
Comprising: 
Cash at bank 3,119 1,487 5,161
====== ====== ======

                                                                                                                  

The accompanying notes are an integral part of these condensed financial statements.

 

NOTES TO THE FINANCIAL STATEMENTS

The half-year financial statements cover the period from 1 October 2024 to 31 March 2025 and have not been audited or reviewed by the Company's auditors.

 

1. Accounting policies - basis of preparation
The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts" which was issued by the Association of Investment Companies in July 2022.
The accounting policies applied are consistent with those of the most recent annual financial statements for the year ended 30 September 2024.
2. Expenses
Management fees and finance costs are charged 50% to revenue and 50% to capital. All other administrative expenses are charged wholly to revenue. Expenses which are incidental to the purchase or sale of an investment are included in the cost or deducted from the proceeds of sale of the investment.

 

3. Return/(loss) per ordinary share - basic and diluted
(Unaudited)
Half-year ended
31 March 2025
£'000 (Unaudited)
Half-year ended
31 March 2024
£'000 (Audited)
Year ended
30 September 2024
£'000
The return per ordinary share is based on the following figures: 
Net revenue return 5,394 4,610 17,005
Net capital (loss)/return (17,528) 22,936 40,567
---------- ---------- ----------
Net total (loss)/return (12,134) 27,546 57,572
====== ====== ======
Weighted average number of ordinary shares in issue for each period 261,890,869 270,185,650 270,185,650
Revenue return per ordinary share 2.06p 1.71p 6.29p
Capital (loss)/return per ordinary share (6.69p) 8.49p 15.01p
---------- ---------- ----------
Total (loss)/return per ordinary share (4.63p) 10.20p 21.30p
====== ====== ======
The Company does not have any dilutive securities; therefore, basic and diluted returns per share are the same.

 

4. Fair value of financial assets and liabilities
The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows:
Level 1: valued using quoted prices in active markets for identical assets
Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1
Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data

 

Investments held at fair value through profit or loss at
31 March 2025 (unaudited) Level 1
£'000 Level 2
£'000 Level 3
£'000 Total
£'000
Investments 375,715 - 2,155 377,870
Investments held at fair value through profit or loss at
31 March 2024 (unaudited) Level 1
£'000 Level 2
£'000 Level 3
£'000 Total
£'000
Investments 414,153 - 2,228 416,381
Investments held at fair value through profit or loss at
30 September 2024 (audited) Level 1
£'000 Level 2
£'000 Level 3
£'000 Total
£'000
Investments 430,340 - 2,277 432,617
A reconciliation of movements within Level 3 is set out below:
2025
£'000
Opening balance 2,277
Total loss included in the Income Statement 
- on investments held (122)
Closing balance 2,155
The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 30 September 2024.
The fair value of the senior unsecured loan notes at 31 March 2025 has been estimated to be £23,465,000 (31 March 2024: £24,682,000; 30 September 2024: £24,672,000). The fair value of the senior unsecured loan notes is calculated using a discount rate which reflects the yield on a UK Gilt of similar maturity plus a suitable credit spread.
The senior unsecured loan notes are categorised as level 3 in the fair value hierarchy.
5. Share capital
At 31 March 2025 there were 270,185,650 ordinary shares of 2.5p each in issue, of which, 28,177,897 were held in treasury (31 March 2024: 270,185,650 shares in issue, with no shares in treasury; 30 September 2024: 270,185,650 shares in issue, no shares in treasury). Voting rights were therefore 242,007,753 (31 March 2024 and 30 September 2024: 270,185,650 voting rights). During the half-year ended 31 March 2025, no shares were issued and 28,177,897 shares were bought back into treasury at a total cost of £36,699,000 (31 March 2024 and 30 September 2024: no shares were issued or bought back). Since the period end, the Company has bought back 9,939,939 shares for treasury for a total cost of £12,835,000.
6. Transaction costs
Purchase transaction costs for the half-year ended 31 March 2025 were £125,000 (31 March 2024: £147,000; 30 September 2024: £337,000). Sale transaction costs for the half-year ended 31 March 2025 were £22,000 (31 March 2024: £16,000; 30 September 2024: £32,000). These comprise mainly stamp duty and commission.
7. Net asset value per ordinary share - basic and diluted
The net asset value per ordinary share of 137.2p (31 March 2024: 136.3p; 30 September 2024: 144.2p) is based on the net assets attributable to the ordinary shares of £332,108,000 (31 March 2024: £368,253,000; 30 September 2024: £389,633,000) and on 242,007,753 ordinary shares (31 March 2024 and 30 September 2024: 270,185,650), being the number of ordinary shares in issue (excluding shares held in treasury) at the end of each period.
8. Dividend
On 30 April 2025, a first interim dividend of 1.625p (2024: 1.60p) per ordinary share was paid in respect of the year ending 30 September 2025. A second interim dividend of 1.65p (2024: 1.60p) per ordinary share for the year ending 30 September 2025 has been declared and will be paid on 31 July 2025 to shareholders on the register of members at the close of business on 27 June 2025. The ex-dividend date will be 26 June 2025. Based on the number of shares in issue (excluding shares held in treasury) on 14 May 2025 of 232,067,814, the cost of the dividend will be £3,829,000 (second interim dividend for the year ended 30 September 2024: £4,323,000).
9. Going concern
The Directors have considered the liquidity of the portfolio and concluded that the assets of the Company consist of securities that are readily realisable. The Directors have also considered the impact of the wars in Ukraine and Israel and changes in the international political landscape, along with all other risks, including revenue forecasting, and a review of covenant compliance including the headroom above the most restrictive covenants. They have concluded that they are able to meet their financial obligations as they fall due for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
10. Comparative Information
The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half-years ended 31 March 2025 and 31 March 2024 has not been audited nor reviewed by the Company's auditor.
The figures and financial information for the year ended 30 September 2024 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditors, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.
A glossary of terms and details of alternative performance measures can be found in the Annual Report for the year ended 30 September 2024.
11. Manager
Janus Henderson Fund Management UK Limited ('JHFM') is appointed to act as the Company's Alternative Investment Fund Manager. JHFM delegates investment management services to Janus Henderson Investors UK Limited. References to Janus Henderson within these results refer to the services provided by both entities.


 

12. General information
Company Status
The Company is a UK-domiciled investment trust company. The registered number is 670489.
The London Stock Exchange Daily Official List SEDOL number is BNXGHS2.
The ISIN number is GB00BNXGHS27.
The London Stock Exchange (TIDM) Code is LWI.
The Global Intermediary Identification Number (GIIN) is2KBHLK.99999.SL.826.
The Legal Entity Identifier Number (LEI) is 2138008RHG5363FEHV19
Directors
The Directors of the Company are Helena Vinnicombe (Chair), Gaynor Coley (Audit Committee Chair), Duncan Budge, Mark Lam and Thomas Walker.
Corporate Secretary
Janus Henderson Secretarial Services UK Limited.
Email:ITSecretariat@janushenderson.com
Registered Office
201 Bishopsgate, London EC2M 3AE.
Website
Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be foundat www.lowlandinvestment.com

 

13. Half-year report
The half-year report will shortly be available on the Company's website or in hard copy from the Company's registered office. An abbreviated version of the half-year report, the 'Update', will be posted to shareholders in June 2025. The Update will also be available on the Company's website, and hard copies will be available at the Company's registered office, 201 Bishopsgate, London EC2M 3AE.

 

For further information, please contact:

 

James Henderson and Laura Foll

Fund Managers

Lowland Investment Company plc

Tel: 020 7818 4370/6364

 

Dan Howe

Head of Investment Trusts

Janus Henderson Investors

Tel: 020 7818 4458

 

Harriet Hall

PR Director, Investment Trusts

Janus Henderson Investors

Telephone: 020 7818 2919

 

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) are incorporated into, or form part of, this announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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IR PKQBBABKDCPD

LWI — Lowland Investment News Story

Half-year Report

Recent news on Lowland Investment

Half-year Financial Report

Director/PDMR Shareholding

Director/PDMR Shareholding

Director/PDMR Shareholding

Director/PDMR Shareholding

Net Asset Value ('NAV') Total Return	-2.1%
Benchmark1 Total Return	4.1%
Dividend in respect of the period	3.275p

	Half-year ended 31 Mar 2025	Half-year ended 31 Mar 2024	Year ended 30 Sept 2024
NAV per share (debt at par)	137.2p	136.3p	144.2p
NAV per share (debt at fair value)	139.9p	138.2p	146.1p
Share price1	129.0p	121.5p	127.0p
Market capitalisation	£312m	£328m	£343m
Dividend per share	3.275p	3.20p	6.425p
Ongoing charge	0.71%	0.65%	0.66%
Dividend yield2	5.0%	5.2%	5.1%
Gearing	13.8%	13.1%	11.0%
Discount (debt at par)	6.0%	10.9%	11.9%
Discount (debt at fair value)	7.8%	12.1%	13.1%

	6 months %	1 year %	3 years %	5 years %	10 years %	25 years %
NAV	-2.1	5.9	14.5	85.2	50.5	636.4
Share Price1	2.9	11.8	12.1	86.4	55.0	818.7
Benchmark2	4.1	10.5	23.3	76.6	81.7	251.7

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	As at 31 Mar 20251
Net assets2 (£m)	355	387	440	439	386	279	394	313	349	390	332
NAV3*	131.8p	143.2p	162.8p	162.5p	142.8p	103.1p	145.9p	115.9p	129.3p	144.2p	137.2p
Share price*	128.7p	133.7p	150.4p	151.5p	128.0p	91.4p	131.5p	104.5p	113.0p	127.0p	129.0p
Net revenue*	4.64p	4.77p	4.91p	5.86p	6.80p	3.38p	4.27p	6.10p	6.71p	6.29p	2.06p
Net dividends paid per ordinary share*	4.10p	4.50p	4.90p	5.40p	5.95p	6.00p	6.025p	6.10p	6.25p	6.425p	3.275p4

Sector Weightings	% as at 31 March 2025
	Company	Benchmark1
Basic Materials	6.3	5.5
Consumer Discretionary	9.7	7.7
Consumer Staples	4.7	14.5
Energy	7.0	10.1
Financials	30.4	27.0
Health Care	4.2	11.5
Industrials	25.4	12.0
Real Estate	5.1	2.4
Technology	1.5	4.2
Telecommunications	2.8	1.2
Utilities	2.9	3.9
Total	100.0	100.0

Sector Weightings	% as at 30 September 2024
	Company	Benchmark1
Basic Materials	6.9	7.0
Consumer Discretionary	10.4	11.3
Consumer Staples	7.2	14.6
Energy	5.6	9.3
Financials	29.7	24.6
Health Care	3.4	11.7
Industrials	24.9	12.2
Real Estate	4.8	2.8
Technology	1.5	1.3
Telecommunications	2.6	1.2
Utilities	3.0	4.0
Total	100.0	100.0


Market Cap Weightings	% as at 31 Mar 2025
	Company	Benchmark1
FTSE 100	48.7	86.9
FTSE 250	20.0	11.4
FTSE Small-Cap	12.1	1.7
FTSE AIM	12.8	-
FTSE Fledgling	0.3	-
Overseas	4.8	-
Other	1.3	-
Total	100.0	100.0

	Share price total return (%)	Contribution to return (%)
Standard Chartered	46.4	1.2
HSBC	36.2	1.1
Barclays	30.5	0.8
Babcock	53.8	0.6
Natwest	36.1	0.5
Shell	19.0	0.5
BP	14.7	0.4
Aviva	14.8	0.4
Lloyds	22.6	0.3
BT	14.0	0.3

	Share price total return (%)	Contribution to return (%)
Conduit	-33.4	-0.5
STV	-32.9	-0.5
Speedy Hire	-46.2	-0.5
Morgan Advanced Materials	-24.8	-0.4
Workspace	-34.8	-0.4
Sainsbury	-19.1	-0.3
Renold	-22.6	-0.3
Marshalls	-25.9	-0.3
Kingfisher	-20.4	-0.3
Ricardo	-41.7	-0.3

Company		Sector	Market value £'000	% of portfolio
HSBC	Banks		14,681	3.9
BP	Oil and Gas		10,684	2.8
Shell	Oil and Gas		10,588	2.8
GSK	Pharmaceuticals and Biotechnology		9,269	2.4
Barclays	Banks		8,922	2.4
Aviva	Life Insurance		8,714	2.3
FBD	Non-Life Insurance (Ireland)		8,315	2.2
M&G	Investment Banking and Brokerage Services		7,940	2.1
BT Group	Telecommunications Service Providers		7,786	2.1
Irish Continental	Industrial Transportation (Ireland)		7,220	1.9
10 largest			94,119	24.9
International Personal Finance	Finance and Credit Services		7,122	1.9
Phoenix	Life Insurance		6,979	1.9
Standard Chartered	Banks		6,821	1.8
National Grid	Gas, Water and Multi-utilities		6,734	1.8
Tesco	Personal Care, Drug and Grocery Stores		6,174	1.6
Balfour Beatty	Construction and Materials		6,107	1.6
Legal & General	Life Insurance		6,065	1.6
Land Securities	Real Estate Investment Trusts		5,775	1.5
Rio Tinto	Industrial Metals and Mining		5,733	1.5
Babcock	Aerospace and Defence		5,722	1.5
20 largest			157,351	41.6
Epwin ¹	Construction and Materials		5,672	1.5
Cranswick	Food Producers		5,543	1.5
Clarkson	Industrial Transportation		5,486	1.5
IMI	Electronic and Electrical Equipment		5,256	1.4
Senior	Aerospace and Defence		5,056	1.3
Lloyds Banking	Banks		5,046	1.3
Prudential	Life Insurance		4,957	1.3
Morgan Advanced Materials	Electronic and Electrical Equipment		4,821	1.3
Hill & Smith	Industrial Metals and Mining		4,752	1.3
Anglo American	Industrial Metals and Mining		4,718	1.2
30 largest			208,658	55.2
J Sainsbury	Personal Care, Drug and Grocery Stores		4,700	1.2
Serica Energy ¹	Oil and Gas		4,687	1.2
Smith & Nephew	Medical Equipment and Services		4,609	1.2
ZIGUP	Industrial Transportation		4,407	1.2
NatWest	Banks		4,373	1.2
Ibstock	Construction and Materials		4,345	1.2
Kingfisher	Retailers		4,239	1.1
STV	Media		4,199	1.1
Severn Trent	Gas, Water and Multi-utilities		4,176	1.1
Renold ¹	Industrial Engineering		4,091	1.1
40 largest			252,484	66.8
Johnson Matthey	Chemicals		3,906	1.0
H&T Group ¹	Finance and Credit Services		3,886	1.0
Elecosoft ¹	Software and Computer Services		3,721	1.0
Chesnara	Life Insurance		3,712	1.0
Johnson Service ¹	Industrial Support Services		3,709	1.0
Beazley	Non-Life Insurance		3,708	1.0
Marshalls	Construction and Materials		3,614	1.0
Springfield Properties ¹	Household Goods and Home Construction		3,483	0.9
FRP Advisory Group ¹	Industrial Support Services		3,456	0.9
DCC	Industrial Support Services (Ireland)		3,190	0.8
50 largest			288,869	76.4
Sabre Insurance	Non-Life Insurance		3,186	0.8
Inchcape	Retailers		2,914	0.8
Vertu Motors ¹	Retailers		2,910	0.8
Somero Enterprises ¹	Industrial Engineering (USA)		2,856	0.8
Shaftesbury Capital	Real Estate Investment Trusts		2,808	0.8
Reach	Media		2,788	0.7
Vodafone	Telecommunications Service Providers		2,710	0.7
Workspace	Real Estate Investment Trusts		2,698	0.7
Mondi	General Industrials		2,581	0.7
Castings	Industrial Metals and Mining		2,566	0.7
60 largest			316,886	83.9
Smiths News	Industrial Support Services		2,456	0.7
Vanquis Banking Group	Finance and Credit Services		2,421	0.6
Bellway	Household Goods and Home Construction		2,364	0.6
Hammerson	Real Estate Investment Trusts		2,345	0.6
Conduit	Non-Life Insurance		2,331	0.6
Halfords	Retailers		2,323	0.6
TP ICAP Group	Investment Banking and Brokerage Services		2,322	0.6
Palace Capital	Real Estate Investment Trusts		2,146	0.6
Elementis	Chemicals		2,132	0.6
TT Electronics	Technology Hardware and Equipment		2,075	0.5
70 largest			339,801	89.9
Speedy Hire	Industrial Support Services		2,042	0.5
Dunelm Group	Retailers		1,999	0.5
Macfarlane	General Industrials		1,894	0.5
Oxford Sciences Enterprises ²	Pharmaceuticals and Biotechnology		1,840	0.5
IP Group	Investment Banking and Brokerage Services		1,787	0.5
Norcros	Construction and Materials		1,732	0.5
Segro	Real Estate Investment Trusts		1,727	0.5
Helical	Real Estate Investment and Services		1,675	0.5
Domino's Pizza Group	Travel and Leisure		1,619	0.4
Ilika ¹	Electronic and Electrical Equipment		1,602	0.4
80 largest			357,718	94.7
Kier Group	Construction and Materials		1,589	0.4
Coats Group	General Industrials		1,580	0.4
Midwich ¹	Industrial Support Services		1,545	0.4
DFS Furniture	Retailers		1,315	0.4
RWS Holdings ¹	Industrial Support Services		1,302	0.3
Aberdeen Group	Investment Banking and Brokerage Services		1,160	0.3
Headlam	Household Goods and Home Construction		1,123	0.3
Churchill China ¹	Household Goods and Home Construction		1,087	0.3
Airea ¹	Household Goods and Home Construction		1,072	0.3
PZ Cussons	Personal Care, Drug and Grocery Stores		1,011	0.3
90 largest			370,502	98.1
Next 15 ¹	Media		862	0.2
Card Factory	Retailers		852	0.2
Carclo	General Industrials		797	0.2
Watkin Jones ¹	Household Goods and Home Construction		751	0.2
XP Power	Electronic and Electrical Equipment		739	0.2
Flowtech Fluidpower ¹	Electronic and Electrical Equipment		651	0.2
Wynnstay ¹	Food Producers		486	0.1
River UK Micro Cap (formerly River & Mercantile)	Closed End Investments		410	0.1
Ultimate Products	Household Goods and Home Construction		405	0.1
Paypoint	Industrial Support Services		363	0.1
100 largest			376,818	99.7

	(Unaudited) Half-year ended 31 March 2025			(Unaudited) Half-year ended 31 March 2024			(Audited) Year ended 30 September 2024
	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000

(Losses)/gains on investments held at fair value through profit or loss	-	(16,569)	(16,569)	-	23,883	23,883	-	42,550	42,550

Income from investments	6,697	-	6,697	5,849	-	5,849	19,666	-	19,666

Other interest receivable and similar income	74	-	74	68	-	68	160	-	160
	---------	--------	---------	---------	--------	---------	---------	---------	---------

Gross revenue and capital (losses)/gains	6,771	(16,569)	(9,798)	5,917	23,883	29,800	19,826	42,550	62,376

Management fee (note 2)	(436)	(436)	(872)	(430)	(430)	(860)	(867)	(868)	(1,735)

Other administrative expenses (note 2)	(416)	-	(416)	(360)	-	(360)	(802)	-	(802)
	---------	--------	---------	---------	--------	---------	---------	---------	---------

Net return/(loss) before finance costs and taxation	5,919	(17,005)	(11,086)	5,127	23,453	28,580	18,157	41,682	59,839

Finance costs	(523)	(523)	(1,046)	(517)	(517)	(1,034)	(1,115)	(1,115)	(2,230)
	--------	--------	--------	---------	--------	---------	---------	---------	---------
Net return/(loss) before taxation	5,396	(17,528)	(12,132)	4,610	22,936	27,546	17,042	40,567	57,609
Taxation on net return	(2)	-	(2)	-	-	-	(37)	-	(37)
	---------	--------	---------	---------	--------	---------	---------	---------	---------

Net return/(loss) after taxation	5,394	(17,528)	(12,134)	4,610	22,936	27,546	17,005	40,567	57,572
	======	======	======	======	======	======	=====	=======	======

Return/(loss) per ordinary share - basic and diluted (note 3)	2.06p	(6.69p)	(4.63p)	1.71p	8.49p	10.20p	6.29p	15.01p	21.30p
	======	======	======	======	======	======	=====	======	======

	(Unaudited) Half-year ended 31 March 2025
	Called up share capital £'000		Share premium account £'000		Capital redemption reserve £'000		Other capital reserves £'000	Revenue reserve £'000	Total £'000

At 1 October 2024	6,755		61,619		1,007		310,618	9,634	389,633

Net return after taxation	-		-		-		(17,528)	5,394	(12,134)
Buyback of shares for treasury	-		-		-		(36,699)	-	(36,699)
Third interim dividend (1.60p) for the year ended 30 September 2024	-		-		-		-	(4,323)	(4,323)
Final dividend (1.625p) for the year ended 30 September 2024	-		-		-		-	(4,391)	(4,391)
Return of unclaimed dividends	-		-		-		-	22	22
	------------		------------		-----------		-----------	-----------	-----------
At 31 March 2025	6,755		61,619		1,007		256,391	6,336	332,108
	=======		=======		=======		======	=======	=======
	(Unaudited) Half-year ended 31 March 2024
	Called up share capital £'000	Share premium account £'000		Capital redemption reserve £'000		Other capital reserves £'000		Revenue reserve £'000	Total £'000

At 1 October 2023	6,755	61,619		1,007		270,051		9,913	349,345

Net return after taxation	-	-		-		22,936		4,610	27,546
Third interim dividend (1.60p) for the year ended 30 September 2023	-	-		-		-		(4,323)	(4,323)
Final dividend (1.60p) for the year ended 30 September 2023	-	-		-		-		(4,323)	(4,323)
Return of unclaimed dividends	-	-		-		-		8	8
	------------	------------		-----------		-----------		-----------	-----------
At 31 March 2024	6,755	61,619		1,007		292,987		5,885	368,253
	=======	=======		=======		======		=======	=======

	(Audited) Year ended 30 September 2024
	Called up share capital £'000		Share premium account £'000		Capital redemption reserve £'000		Other capital reserves £'000	Revenue reserve £'000	Total £'000

At 1 October 2023	6,755		61,619		1,007		270,051	9,913	349,345
Net return after taxation	-		-		-		40,567	17,005	57,572
Third interim dividend (1.60p) for the year ended 30 September 2023	-		-		-		-	(4,323)	(4,323)
Final dividend (1.60p) for the year ended 30 September 2023	-		-		-		-	(4,323)	(4,323)
First interim dividend (1.60p) for the year ended 30 September 2024	-		-		-		-	(4,323)	(4,323)
Second interim dividend (1.60p) for the year ended 30 September 2024	-		-		-		-	(4,323)	(4,323)
Return of unclaimed dividends	-		-		-		-	8	8
	-----------		-----------		-----------		-----------	------------	-----------
At 30 September 2024	6,755		61,619		1,007		310,618	9,634	389,633
	=======		=======		=======		=======	=======	=======

	(Unaudited) As at 31 March 2025 £'000	(Unaudited) As at 31 March 2024 £'000	(Audited) As at 30 September 2024 £'000
Fixed assets
Investments held at fair value through profit or loss (note 4)	377,870	416,381	432,617
	-----------	-----------	-----------
Current assets
Debtors	2,976	2,713	2,428
Cash at bank	3,119	1,487	5,161
	-----------	-----------	-----------
	6,095	4,200	7,589

Creditors: amounts falling due within one year	(22,026)	(22,510)	(20,749)
	-----------	-----------	-----------
Net current liabilities	(15,931)	(18,310)	(13,160)
	-----------	-----------	-----------
Total assets less current liabilities	361,939	398,071	419,457
	-----------	-----------	-----------
Creditors: amounts falling due after more than one year	(29,831)	(29,818)	(29,824)
	-----------	-----------	-----------
Net assets	332,108	368,253	389,633
	======	======	=======
Capital and reserves
Called up share capital	6,755	6,755	6,755
Share premium account	61,619	61,619	61,619
Capital redemption reserve	1,007	1,007	1,007
Other capital reserves	256,391	292,987	310,618
Revenue reserve	6,336	5,885	9,634
	-----------	-----------	-----------
Total shareholders' funds	332,108	368,253	389,633
	======	======	=======
Net asset value per ordinary share - basic and diluted(note 7)	137.2p	136.3p	144.2p
	=======	=======	=======

	(Unaudited) Half-year ended 31 March 2025 £'000	(Unaudited) Half-year ended 31 March 2024 £'000	(Audited) Year ended 30 September 2024 £'000
Cash flows from operating activities
Net (loss)/gain before taxation	(12,132)	27,546	57,609
Add back: finance costs	1,046	1,034	2,230
Add: losses/(gains) on investments held at fair value through profit or loss	16,569	(23,883)	(42,550)
Withholding tax on dividends deducted at source	(2)	54	16
(Increase)/decrease in debtors	(262)	39	324
(Decrease)/increase in creditors	(465)	48	541
	-----------	-----------	-----------
Net cash inflow from operating activities	4,754	4,838	18,170
	-----------	-----------	-----------
Cash flows from investing activities
Purchase of investments	(23,114)	(38,942)	(78,497)
Sale of investments	60,907	38,828	80,668
	-----------	-----------	-----------
Net cash inflow/(outflow) from investing activities	37,793	(114)	2,171

Cash flows from financing activities
Equity dividends paid (net of refund of unclaimed distributions and reclaimed distributions)	(8,692)	(8,638)	(17,284)
Share buybacks for treasury	(36,261)	-	-
Loans drawn down	23,260	71,282	37,736
Loans repaid	(21,772)	(67,782)	(36,378)
Interest paid	(1,128)	(1,022)	(2,177)
	-----------	-----------	-----------
Net cash outflow from financing activities	(44,593)	(6,160)	(18,103)

Net (decrease)/increase in cash and cash equivalents	(2,046)	(1,436)	2,238

Cash and cash equivalents at start of year	5,161	2,926	2,926
Effect of foreign exchange rates	4	(3)	(3)
	-----------	-----------	-----------
Cash and cash equivalents at end of year	3,119	1,487	5,161
	======	======	======
Comprising:
Cash at bank	3,119	1,487	5,161
	======	======	======

1.	Accounting policies - basis of preparation
	The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts" which was issued by the Association of Investment Companies in July 2022. The accounting policies applied are consistent with those of the most recent annual financial statements for the year ended 30 September 2024.
2.	Expenses
	Management fees and finance costs are charged 50% to revenue and 50% to capital. All other administrative expenses are charged wholly to revenue. Expenses which are incidental to the purchase or sale of an investment are included in the cost or deducted from the proceeds of sale of the investment.

3.	Return/(loss) per ordinary share - basic and diluted
		(Unaudited) Half-year ended 31 March 2025 £'000	(Unaudited) Half-year ended 31 March 2024 £'000	(Audited) Year ended 30 September 2024 £'000
	The return per ordinary share is based on the following figures:
	Net revenue return	5,394	4,610	17,005
	Net capital (loss)/return	(17,528)	22,936	40,567
		----------	----------	----------
	Net total (loss)/return	(12,134)	27,546	57,572
		======	======	======
	Weighted average number of ordinary shares in issue for each period	261,890,869	270,185,650	270,185,650

	Revenue return per ordinary share	2.06p	1.71p	6.29p
	Capital (loss)/return per ordinary share	(6.69p)	8.49p	15.01p
		----------	----------	----------
	Total (loss)/return per ordinary share	(4.63p)	10.20p	21.30p
		======	======	======
	The Company does not have any dilutive securities; therefore, basic and diluted returns per share are the same.

	Investments held at fair value through profit or loss at 31 March 2025 (unaudited)	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
	Investments	375,715	-	2,155	377,870

	Investments held at fair value through profit or loss at 31 March 2024 (unaudited)	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
	Investments	414,153	-	2,228	416,381

	Investments held at fair value through profit or loss at 30 September 2024 (audited)	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
	Investments	430,340	-	2,277	432,617
	A reconciliation of movements within Level 3 is set out below:
						2025
						£'000
	Opening balance					2,277
	Total loss included in the Income Statement
	- on investments held					(122)
	Closing balance					2,155
	The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 30 September 2024. The fair value of the senior unsecured loan notes at 31 March 2025 has been estimated to be £23,465,000 (31 March 2024: £24,682,000; 30 September 2024: £24,672,000). The fair value of the senior unsecured loan notes is calculated using a discount rate which reflects the yield on a UK Gilt of similar maturity plus a suitable credit spread. The senior unsecured loan notes are categorised as level 3 in the fair value hierarchy.
5.	Share capital
	At 31 March 2025 there were 270,185,650 ordinary shares of 2.5p each in issue, of which, 28,177,897 were held in treasury (31 March 2024: 270,185,650 shares in issue, with no shares in treasury; 30 September 2024: 270,185,650 shares in issue, no shares in treasury). Voting rights were therefore 242,007,753 (31 March 2024 and 30 September 2024: 270,185,650 voting rights). During the half-year ended 31 March 2025, no shares were issued and 28,177,897 shares were bought back into treasury at a total cost of £36,699,000 (31 March 2024 and 30 September 2024: no shares were issued or bought back). Since the period end, the Company has bought back 9,939,939 shares for treasury for a total cost of £12,835,000.
6.	Transaction costs
	Purchase transaction costs for the half-year ended 31 March 2025 were £125,000 (31 March 2024: £147,000; 30 September 2024: £337,000). Sale transaction costs for the half-year ended 31 March 2025 were £22,000 (31 March 2024: £16,000; 30 September 2024: £32,000). These comprise mainly stamp duty and commission.
7.	Net asset value per ordinary share - basic and diluted
	The net asset value per ordinary share of 137.2p (31 March 2024: 136.3p; 30 September 2024: 144.2p) is based on the net assets attributable to the ordinary shares of £332,108,000 (31 March 2024: £368,253,000; 30 September 2024: £389,633,000) and on 242,007,753 ordinary shares (31 March 2024 and 30 September 2024: 270,185,650), being the number of ordinary shares in issue (excluding shares held in treasury) at the end of each period.
8.	Dividend
	On 30 April 2025, a first interim dividend of 1.625p (2024: 1.60p) per ordinary share was paid in respect of the year ending 30 September 2025. A second interim dividend of 1.65p (2024: 1.60p) per ordinary share for the year ending 30 September 2025 has been declared and will be paid on 31 July 2025 to shareholders on the register of members at the close of business on 27 June 2025. The ex-dividend date will be 26 June 2025. Based on the number of shares in issue (excluding shares held in treasury) on 14 May 2025 of 232,067,814, the cost of the dividend will be £3,829,000 (second interim dividend for the year ended 30 September 2024: £4,323,000).
9.	Going concern
	The Directors have considered the liquidity of the portfolio and concluded that the assets of the Company consist of securities that are readily realisable. The Directors have also considered the impact of the wars in Ukraine and Israel and changes in the international political landscape, along with all other risks, including revenue forecasting, and a review of covenant compliance including the headroom above the most restrictive covenants. They have concluded that they are able to meet their financial obligations as they fall due for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
10.	Comparative Information
	The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half-years ended 31 March 2025 and 31 March 2024 has not been audited nor reviewed by the Company's auditor. The figures and financial information for the year ended 30 September 2024 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the independent auditors, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006. A glossary of terms and details of alternative performance measures can be found in the Annual Report for the year ended 30 September 2024.
11.	Manager
	Janus Henderson Fund Management UK Limited ('JHFM') is appointed to act as the Company's Alternative Investment Fund Manager. JHFM delegates investment management services to Janus Henderson Investors UK Limited. References to Janus Henderson within these results refer to the services provided by both entities.

13.	Half-year report
	The half-year report will shortly be available on the Company's website or in hard copy from the Company's registered office. An abbreviated version of the half-year report, the 'Update', will be posted to shareholders in June 2025. The Update will also be available on the Company's website, and hard copies will be available at the Company's registered office, 201 Bishopsgate, London EC2M 3AE.