18 March 2026
MANCHESTER AND LONDON INVESTMENT TRUST PLC
(the “Company”)
The Company today announces its Half-yearly Report for the six months ended 31 January 2026 A copy of the Half-Yearly Report can be accessed via the Company’s website at
www.mlcapman.com/manchester-london-investment-trust-plc
or by contacting the Company Secretary by email on
mlitcosec@cm.mpms.mufg.com
.
Summary of Results
At 31 January 2026
At 31 July 2025
Change
Net assets attributable to Shareholders (£’000)
398,943
413,128
(3.4%)
Net asset value (“NAV”) per Ordinary Share (pence)
1,049.17
1,077.29
(2.6%)
Six months to 31 January 2026
NAV per share total return*
(1.4%)
*
Total return including dividends reinvested, as sourced from Bloomberg.
Six months to 31 January 2026
Six months to 31 January 2025
Change
Interim dividend per Ordinary Share (pence)
20.00
7.00
13.00p
Special dividend per Ordinary Share (pence)
0.00
7.00
(7.00p)
Dates for the interim dividend
Ex-dividend date
9 April 2026
Record date
10 April 2026
Payment date
8 May 2026
CHAIRMAN’S STATEMENT
Introduction & Performance
The first half of 2026 has been defined by a rapid acceleration in the capabilities of Ai, most notably with the emergence of capable Ai Agents such as Claude Code.
This technological leap has precipitated a material divergence in technology performance, causing significant disruption to software stocks as the market reassesses the durability of legacy seat-based SaaS business models in an agentic world.
This disruption has broadened beyond software to impact sectors such as publishing, financials and even healthcare, leaving fewer hiding places for those that have yet to embrace the Ai era.
The Company’s NAV per share Total Return for the half year was -1.4 per cent.
Performance was primarily held back by the underperformance of Microsoft, an exposure the Manager has since materially cut.
The Manager’s Report sets out the performance of the portfolio in more detail, including stock-specific contributions.
The annualised NAV per share Total Return (dividends reinvested) in GBP for the Management Team since inception (September 2015) remains approximately 17 per cent per annum.
Board and Composition
There have been no changes to the Board during the period.
Biographical details of all the directors can be found in the latest AGM notice and the latest Annual Report.
Capital Returns, Buy Backs, Discounts & Dividends
At the period end, the Shares traded at a 26.0 per cent discount to their NAV per Share, compared to an average discount of 18.8 per cent in 2025.
On 24 September 2025 the Company announced it would be pausing on-market share buybacks because the aggregate proportion of the Company’s voting power held by the public (as that term is used in section 446 of the Corporation Tax Act 2010) is now close to the minimum 35 per cent threshold.
The Board does not expect a near-term resumption of buybacks.
Some shareholders have expressed their view to the Manager that the pause of share buybacks
means that total capital returns via dividends and buybacks to shareholders will hence reduce.
As a result, on 23 October 2025 the company announced an Enhanced Dividend Policy, stating an intention to pay at least 40p per share per annum ordinary dividend for the next five years.
Consequently, we have declared an increased ordinary interim dividend of 20 pence per Ordinary Share.
This marks an increase from the prior year (31 January 2025: 7.0p ordinary and 7.0p special) and underscores our commitment to shareholder returns.
Auditor
Deloitte LLP were re-appointed as the Company’s auditor at the AGM held in 2025.
Outlook
The emergence of autonomous Ai agents in 2026 marks a watershed moment, comparable in significance to the launch of ChatGPT.
In our view, this development reinforces the critical necessity of the infrastructure required to support these models, underpinning our conviction that the Ai buildout has many years yet to run.
It is becoming clear that Ai Agents are a serious substitute to Humans in the undertaking of various functions within an Enterprise.
However, we anticipate this will precipitate further disruption to legacy business models, potentially impacting even those incumbents currently viewed as 'safe'.
Within the Ai sector itself, market leadership is increasingly fluid; the fortunes of individual companies can pivot sharply on perceptions of success, with single model releases capable of driving significant share price movements.
Furthermore, the rapid pace of technological change within Ai infrastructure is driving pronounced volatility where a stock can go from market darling to being perceived technologically obsolete in a matter of weeks.
Consequently, 2026 represents perhaps the most complex environment for stock selection in the Manager’s decade-long tenure, a landscape offering exceptional opportunity, but accompanied by elevated disruption risk.
The numerous risks we face include geopolitical friction between the US and China, sticky inflation, and the evolving regulatory landscape.
However, our conviction in the "Machine Age" remains undiminished.
We believe that focusing our investment exposure on the hardware and infrastructure enabling this transition offers the best path to long-term capital appreciation.
Please do not forget to consider the fund for this year’s ISA allowance.
Daniel Wright
Chairman
18 March 2026
MANAGER'S REPORT
Market Review
The Nasdaq 100 Technology Sector Index (NDXT) delivered a total return of 6.5 per cent in Sterling terms, a headline figure that masked a highly bifurcated market where constituents were roughly evenly split between gainers and losers.
Index performance was narrowly concentrated, the Memory and Semi Cap companies with high Memory exposure accounted for approximately 55 per cent of the index's return.
A further 50 per cent of the index’s performance was driven by
Alphabet Inc
, buoyed by the perceived success of its Gemini models.
Conversely,
Microsoft
was the significant detractor for the index.
Against this backdrop, the Company’s NAV per share Total Return for the half year was -1.4 per cent.
Microsoft
was the primary reason for this underperformance, creating a drag of approximately -4.6 per cent.
Since the period end, we have decisively reduced the Fund's exposure to Microsoft to just 0.5 per cent of Net Assets.
Whilst Microsoft has a sensible roadmap to becoming a key Hyperscaler/Enterprise Platform for Ai, the
execution by the management team has been too slow and technologically underwhelming compared to competitors like Anthropic.
Currency movements provided a further material headwind.
The 3.7 per cent appreciation of Sterling against the US Dollar during the period reduced returns, given the portfolio's significant US Dollar exposure.
We estimate that Foreign Exchange movements negatively impacted portfolio performance by approximately 3.5 per cent.
The
total return of the portfolio by
sector holdings
in local currency (excluding costs and foreign exchange) is shown below.
Total return of underlying sector holdings in local currency (excluding costs and foreign exchange)
2026
Technology
2.5%
Consumer
-0.5%
Financials
0.0%
Healthcare
0.0%
Other Investments (including Funds, ETFs and Hedges)
0.9%
Foreign Exchange, operating costs & financing
-4.3%
Total NAV per Share return
-1.4%
Technology
Material positive performers (>1 per cent contribution to return) included Nvidia Corp, ASML Holding NV and Advanced Micro Devices Inc.
Material negative contributors included Microsoft Corp and Synopsys Inc, both Software stocks.
As noted above, Microsoft has now been reduced to 0.5 per cent of Net Assets, whilst Synopsys has been fully disposed.
Following the exit of Synopsys and the strategic reduction of our Microsoft position, the Fund now retains minimal exposure to legacy 'Software 1.0'.
It is our view that most incumbent software business models face a radical transformation in the agentic era, a transition likely to result in structurally lower operating margins.
We remain focused on the 'picks and shovels' of Ai, increasing our exposure to critical hardware components such as optical interconnects.
However, the velocity of technological change within the Data Center is accelerating; consequently, we must dynamically adapt our positioning to capture shifting architectural trends.
Shareholders should therefore anticipate higher portfolio turnover than in prior periods.
In recent newsletters, we have detailed the rationale underpinning our $500 price target for Nvidia, a valuation derived from our modelling of specific Ai workload demands and the silicon best positioned to service them.
While we will continuously recalibrate this target as new data emerges, we currently see no superior risk-adjusted vehicle to capture the value of the Ai transition.
The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 95.8 per cent of the net assets, down marginally from 96.0 percent at the end of the previous financial year.
Consumer
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 4.8 per cent of the net assets, up from 3.3 per cent at the end of the previous financial year.
Financials
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 3.5 per cent of the net assets, up from 3.2 per cent at the end of the previous financial year.
Healthcare
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 1.9 per cent of the net assets, up from 1.6 per cent at the end of the previous financial year.
Other (including funds, ETFs and beta hedges)
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 8.3 per cent of the net assets, up from 3.2 per cent at the end of the previous financial year.
Market Outlook
While inflation has moderated from its peaks, it remains sticky, suggesting that the path to lower interest rates may be more gradual than previously hoped.
However, even a stabilisation in yields provides a constructive backdrop for future equity returns.
Geopolitical risks between the US and China persist, and we expect ongoing uncertainty around global tariff rates as supply chains continue to decouple.
We continue to believe our portfolio of long-duration assets is likely to be more sensitive to interest rate movements than to the effects of a mild recession.
Furthermore, should cash rates fall below a certain threshold, we anticipate a significant rotation from money market funds into growth equities, driven by the superior earnings potential of the Ai economy.
Market Risks
The primary challenges to equities remain inflation, recession, regulation, energy prices, and war.
While inflation has moderated from its peaks, it remains sticky, and history warns of potential reversals.
We remain hopeful that over time, productivity gains from the "Machine Age" and the deployment of Ai Agents can assist in structurally reducing inflation via increased productivity.
There is the possibility that countries that undertake material Ai investment, such as the USA, will be rewarded with a decade or so of both productivity gains and relatively strong economic growth.
Should that scenario be combined with contained geopolitical risks, then we could see a period of sustained stock market returns.
Geopolitical risks, such as the conflict in Ukraine, the Middle East, and US-Sino relations, also pose very material concerns.
The world continues to splinter into distinct spheres of influence, and while the US generational shift in trade policy may be beneficial in the long run, it introduces heightened uncertainty today.
Global debt levels and persistent fiscal deficits remain a source of concern, and we continue to watch sovereign bond yields with vigilance.
China, Iran, North Korea, and Russia all have a history of being volatile actors that can cause numerous horrific events that could cause material downside for the markets.
The companies in our portfolio have a material exposure to China and Taiwan, hence we have been active at various times in recent years at laying on hedges against this risk.
Ai Outlook
Contrary to the mainstream narrative, we see no evidence of an Ai bubble at this stage. We view current Capital Expenditure levels as not only sustainable but entirely commensurate with the magnitude of the opportunity.
Our dashboard of key metrics, including token usage, ROI, hyperscaler backlogs, and enterprise adoption, points unequivocally to healthy unit economics for the sector.
The capability frontier has advanced rapidly in recent months, and we expect this momentum in reasoning and autonomy to persist throughout the year.
We previously noted that the duration of tasks Ai could perform autonomously was doubling every seven months; this rate of improvement has now accelerated to just four months.
We view the dramatic success of Coding Agents as merely the beachhead for wider Ai adoption. As SemiAnalysis recently observed:
"Coding was once the most valuable work of all... Coding is now a beachhead in terms of the disruption that agentic information processing has, and the larger 15 trillion-dollar information work economy is now at risk. There are 1b+ information workers, or roughly 1/3rd of the global 3.6 billion workforce."
We expect continued efficiency gains from hardware advances and model optimisations to further drive down the cost per unit of intelligence, thereby improving ROI for enterprise adopters.
Following further guidance upgrades during Q1, we remain on track for another year of 60 per cent growth in hyperscaler Ai capex. Total combined 2025 and 2026 cloud capex is now projected at $1.2 trillion which is an increase of $500 billion from estimates just a year ago.
Consequently, we anticipate a continued reallocation of corporate budgets from Labour towards Ai, driving further displacement of workers. Longer term, we expect significant advances in robotics, particularly industrial robotics driven by the onshoring of manufacturing and assembly activities back to the USA.
We would observe that those most at risk from disruption of Ai appear to be those that believe the least in its future possibilities.
It is worth considering that point when you are next faced with abject denial of Ai’s substitution risk to Human Enterprise functionality.
Concentration Risk
Since the last year end, we have materially reduced our portfolio concentration.
Nevertheless, at the time of writing, our top five holdings still represent approximately 71% of Net Assets (by Delta Adjusted Exposure), with our single largest holding accounting for circa 43%.
While we are happy to diversify further once opportunities allow (eg after Anthropic and SpaceX Ipos) we refuse to diversify arbitrarily by rotating capital from quality into 'also-rans'.
In our Annual Report released in September 2025, we cautioned:
'We would not be surprised if, in a few years’ time, it will be seen that the most dangerous portfolio to hold from today was a widely diversified selection of legacy Software 1.0 stocks.'
Regrettably for many, this prediction has played out and even affected the Enterprise Software names like Microsoft that we felt would be more sheltered from these fears.
For our Retail Shareholders, the logical conclusion of this concentration risk is that the Fund should form part of a broader, diversified portfolio.
We urge you not to over-concentrate your own holdings in this Fund if you cannot afford to bear potential losses.
“Diversification is protection against ignorance. It makes little sense if you know what you are doing,”
Warren Buffett
Conclusion
The risks are varied, numerous and material but the Era of Ai has many years left to run.
Ai offers investors a first-class ticket to what could be one of the most exciting investment and economic periods of the century.
Please:
Visit our website:
https://mlcapman.com/about/
Follow our Tweets at:
https://x.com/MLCapMan
Read our previous articles at:
https://www.linkedin.com/company/m-&-l-capitalmanagement-ltd/
Long the Future.
M&L Capital Management Limited @MLCapMan
18 March 2026
Equity Exposures AND PORTFOLIO SECTOR ANALYSIS
Equity exposures (longs)
As at 31 January 2026
Company
Sector*
Exposure £’000
% of net assets
NVIDIA Corporation**
Technology
174,099
43.6
Broadcom Inc.
Technology
1,849
10.5
TSMC**
Technology
38,276
9.6
Microsoft Corporation
Technology
34,092
8.6
Lumentum Holdings Inc.**
Technology
17,736
4.4
Robinhood Markets Inc.**
Financials
15,390
3.9
Ciena Corporation**
Technology
14,307
3.6
Synopsys Inc.
Technology
11,238
2.8
Liberty Media Formula One Group**
Consumer
10,323
2.6
Vertiv Holdings Co.**
Technology
10,205
2.6
ROBO Global Robotics & Automation**
Funds, ETFs & Baskets
10,003
2.5
Arista Networks Inc.
Technology
8,885
2.2
Coherent Corporation**
Technology
8,429
2.1
ASML Holding NV**
Technology
7,483
1.9
Intuitive Surgical Inc.
Healthcare
6,505
1.6
Bloom Energy Corporation**
Energy
6,256
1.6
Infineon Technologies AG**
Technology
5,689
1.4
Lam Research Corporation
Technology
5,284
1.3
Karman Holdings Inc.**
Industrials & Defence
5,033
1.3
Celsius Holdings Inc.**
Consumer
4,843
1.2
AeroVironment Inc.
Industrials & Defence
4,647
1.2
TKO Group Holdings Inc.**
Consumer
3,787
1.0
SiTime Corporation**
Technology
3,762
0.9
Dell Technologies Inc.**
Technology
3,654
0.9
Solaris Energy Infrastructure
Energy
2,575
0.7
MACOM Technology Holdings Inc.**
Technology
2,315
0.6
ARK Space & Defence Innovation
Funds, ETFs & Baskets
2,266
0.6
GE Vernova Inc.**
Energy
2,118
0.5
Alphabet Inc.
Technology
1,249
0.3
Insulet Corporation
Healthcare
1,050
0.3
Polar Capital Technology Trust plc
Funds, ETFs & Baskets
577
0.1
ERShares Private-Public Crossover
Funds, ETFs & Baskets
569
0.1
Motorola Solutions Inc.**
Industrials & Defence
458
0.1
Live Nation Entertainment Inc.
Consumer
181
0.0
Palo Alto Networks Inc.**
Technology
15
0.0
Total Long Equity exposure
465,148
116.6
Other net assets and liabilities***
(66,205)
(16.6)
Net assets
398,943
100.0
*
Sector weightings have been determined using the primary sector classification assigned to each holding by a leading Ai model, based on an analysis of the company’s core business activities and industry focus.
** Including equity swap exposures.
***Includes Short Equity exposures and Options valued at marked to market.
Exposure is related to Delta Adjusted Exposure (Glossary).
INTERIM MANAGEMENT REPORT
The important events that have occurred during the period under review and the key factors influencing the financial statements are set out in the Chairman’s Statement on pages 4 and 5 and the Manager’s Report on pages 6 to 9.
The principal risks facing the Company are substantially unchanged since the date of the latest Annual Report and Financial Statements and continue to be as set out in the Strategic Report and note 16 of that report.
Risks faced by the Company include, but are not limited to, investment performance risk; key man risk and reputational risk; fund valuation risk; risk associated with engagement of third-party service providers; regulatory risk; fiduciary risk; fraud risk; portfolio concentration; and discount risk.
Details of the Company’s management of these risks are set out in the Annual Report and Financial Statements.
M&M Investment Company plc is the controlling shareholder of the Company.
This company was controlled throughout the six months ended 31 January 2026, and continues to be controlled by Mark Sheppard, who forms part of the investment management team at M&L Capital Management Limited.
Details of related party disclosures are set out in note 7 of this Report.
DIRECTORS’ REPORT
Going Concern
As detailed in the notes to the financial statements and in the Annual Report for the year ended 31 July 2025, the Board continually monitors the financial position of the Company and has considered for the six months ended 31 January 2026 an assessment of the Company’s ability to meet its liabilities as they fall due.
The review also included consideration of the level of readily realisable investments and current cash and debt ratios of the Company and the ability to repay any outstanding prime broking facilities.
In light of the results of these tests on the Company’s cash balances and liquidity position, the Directors consider that the Company has adequate financial resources to enable it to continue in operational existence.
Having carried out the assessment, the Directors are satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial results of the Company.
The Directors have not identified any material uncertainties or events that might cast significant doubt upon the Company’s ability to continue as a going concern.
The assets of the Company comprise mainly of securities that are readily realisable and accordingly, the Company has adequate financial resources to meet its liabilities as and when they fall due and to continue in operational existence for the foreseeable future.
Related Party Transactions
In accordance with DTR 4.2.8R there have been no new related party transaction agreements during the six-month period to 31 January 2026 and therefore nothing to report on any material effect by such transactions on the financial position or performance of the Company during that period.
There have therefore been no changes in any related party transaction agreements described in the last Annual Report that could have a material effect on the financial position or performance of the Company in the first six months of the current financial year or to the date of this report.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors confirm that to the best of their knowledge:
• the condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting; and gives a true and fair view of the assets, liabilities, financial position and return of the Company; and
• this Half-Yearly Report includes a fair review of the information required by:
a)
DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
b)
DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.
This Half-Yearly Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by:
Daniel Wright
Chairman
18 March 2026
Condensed Statement of Comprehensive Income
For the six months ended 31 January 2026
(Unaudited) Six months ended 31 January 2026
(Unaudited) Six months ended 31 January 2025
(Audited) Year ended 31 July 2025
Revenue £’000
Capital £’000
Total £’000
Revenue £’000
Capital £’000
Total £’000
Revenue £’000
Capital £’000
Total £’000
Gains/(Losses) on investments at fair value through profit or loss
172
(3,581)
(3,409)
126
23,513
23,639
346
104,967
105,313
Investment income
486
-
486
605
-
605
1,090
-
1,090
Interest income
569
-
569
624
-
624
1,251
-
1,251
Other income
24
-
24
-
-
-
-
-
-
Gross return
1,251
(3,581)
(2,330)
1,355
23,513
24,868
2,687
104,967
107,654
Expenses
Management fee
(1,498)
-
(1,498)
(1,256)
-
(1,256)
(2,447)
-
(2,447)
Other operating expenses
(338)
-
(338)
(324)
-
(324)
(635)
-
(635)
Total expenses
(1,836)
-
(1,836)
(1,580)
-
(1,580)
(3,082)
-
(3,082)
Return before finance costs and taxation
(585)
(3,581)
(4,166)
(225)
23,513
23,288
(395)
104,967
104,572
Finance costs
(37)
(1,707)
(1,744)
(61)
(1,617)
(1,678)
(105)
(2,999)
(3,104)
Return on ordinary activities before tax
(622)
(5,288)
(5,910)
(286)
21,896
21,610
(500)
101,968
101,468
Taxation
(70)
-
(70)
(46)
-
(46)
(109)
-
(109)
Return on ordinary activities after tax
(692)
(5,288)
(5,980)
(332)
21,896
21,564
(609)
101,968
101,359
Return per Share: Basic and fully diluted (pence)
(1.82)
(13.89)
(15.71)
(0.83)
54.60
53.77
(1.54)
257.29
255.75
The total column of this statement represents the Condensed Statement of Comprehensive Income, prepared in accordance with international accounting standards in conformity with the requirements of UK IFRS and the Companies Act 2006.
The supplementary revenue and capital columns are both prepared under the Statement of Recommended Practice published by the Association of Investment Companies (“AIC SORP”).
All items in the above statement are derived from continuing operations.
No operations were acquired or discontinued during the period.
There is no other comprehensive income, and therefore the return for the period after tax is also the total comprehensive income.
The notes on pages 17 to 21 form part of these financial statements.
Condensed Statement of Changes in Equity
For the six months ended 31 January 2026
For the six months from 1 August 2025 to 31 January 2026 (unaudited)
Share capital £’000
Share premium £’000
Special reserve* £’000
Capital reserve* £’000
Retained earnings* £’000
Total £’000
Balance at 1 August 2025
10,132
25,888
64,138
313,579
(609)
413,128
Ordinary shares bought back and held in treasury
-
-
(2,881)
-
-
(2,881)
Total comprehensive income
-
-
-
(5,288)
(692)
(5,980)
Dividends paid
-
-
(5,324)
-
-
(5,324)
Balance at 31 January 2026
10,132
25,888
55,933
308,291
(1,301)
398,943
For the six months from 1 August 2024 to 31 January 2025 (unaudited)
Share capital £’000
Share premium £’000
Special reserve* £’000
Capital reserve* £’000
Retained earnings* £’000
Total £’000
Balance at 1 August 2024
10,132
25,888
86,468
211,611
-
334,099
Ordinary shares bought back and held in treasury
-
-
(3,065)
-
-
(3,065)
Total comprehensive income
-
-
-
21,896
(332)
21,564
Dividends paid
-
-
(2,807)
-
-
(2,807)
Balance at 31 January 2025
10,132
25,888
80,596
233,507
(332)
349,791
For the year from 1 August 2024 to 31 July 2025 (audited)
Share capital £’000
Share premium £’000
Special reserve* £’000
Capital reserve* £’000
Retained earnings* £’000
Total £’000
Balance at 1 August 2024
10,132
25,888
86,468
211,611
-
334,099
Ordinary shares bought back and held in treasury
-
-
(14,038)
-
-
(14,038)
Total comprehensive income
-
-
-
101,968
(609)
101,359
Dividends paid
-
-
(8,292)
-
-
(8,292)
Balance at 31 July 2025
10,132
25,888
64,138
313,579
(609)
413,128
*
These reserves are distributable, excluding any unrealised capital reserve.
The balance of the unrealised capital reserve at 31 January 2026 was £199,468,000 (31 January 2025: £170,096,000; 31 July 2025: £242,928,000).
The notes on pages 17 to 21 form part of these financial statements.
Condensed Statement of Financial Position
As at 31 January 2026
Notes
(Unaudited) 31 January 2026 £’000
(Unaudited) 31 January 2025 £’000
(Audited) 31 July 2025 £’000
Non-current assets
Investments held at fair value through profit and loss
363,520
311,794
375,583
Current assets
Unrealised derivative assets
4,746
2,711
10,912
Trade and other receivables
3,310
195
189
Cash and cash equivalents
17,196
18,256
17,429
Cash collateral receivable from brokers
23,949
25,054
16,783
49,201
46,216
45,313
Creditors – amounts falling due within one year
Unrealised derivative liabilities
(11,357)
(7,691)
(4,621)
Trade and other payables
(454)
(528)
(2,451)
Cash collateral payable to brokers
-
-
(587)
Bank overdrafts
(1,967)
-
(109)
(13,778)
(8,219)
(7,768)
Net current assets
35,423
37,997
37,545
Net assets
398,943
349,791
413,128
Equity attributable to equity holders
Ordinary Share capital
10,132
10,132
10,132
Share premium
25,888
25,888
25,888
Special reserves
55,933
80,596
64,138
Capital reserves
308,291
233,507
313,579
Retained earnings
(1,301)
(332)
(609)
Total equity Shareholders’ funds
398,943
349,791
413,128
Net asset value per Ordinary Share – basic and diluted (pence)
1,049.17
879.41
1,077.29
Number of shares in issue excluding treasury
3
38,024,587
39,775,645
38,348,979
The notes on pages 17 to 21
form part of these financial statements.
Condensed Statement of Cash Flows
For the six months ended 31 January 2026
Six months to 31 January 2026 (Unaudited) £’000
Six months to 31 January 2025 (Unaudited) £’000
Year ended 31 July 2025 (Audited) £’000
Cash flow from operating activities
Return on operating activities before tax
(5,910)
21,610
101,468
Finance costs
1,744
1,678
3,104
Losses/(gains) on investments held at fair value through profit or loss
2,722
(22,576)
(105,518)
Decrease/(increase) in receivables
61
(13)
(7)
(Decrease)/increase in payables
(1,956)
(21)
118
Exchange losses/(gains) on currency balances
859
(937)
551
Tax
(70)
(46)
(109)
Net cash used in operating activities
(2,550)
(305)
(393)
Cash flow from investing activities
Purchase of investments
(77,751)
(9,813)
(51,683)
Sales proceeds
87,991
31,366
80,476
Derivative instrument cash flows
1,069
(3,617)
5,882
Net cash inflow from investing activities
11,309
17,936
34,675
Cash flow from financing activities
Ordinary shares bought back and held in treasury
(2,893)
(3,052)
(12,192)
Equity dividends paid
(5,324)
(2,807)
(8,292)
Interest paid
(1,774)
(1,640)
(3,114)
Net cash used in financing activities
(9,991)
(7,499)
(23,598)
Net (decrease)/increase in cash and cash equivalents
(1,232)
10,132
10,684
Exchange (losses)/gains on currency balances
(859)
937
(551)
Cash and cash equivalents at the beginning of the period
17,320
7,187
7,187
Cash and cash equivalents at the end of the period
15,229
18,256
17,320
The notes on pages 17 to 21
form part of these financial statements.
Notes to the Condensed Financial Statements
Significant accounting policies
Basis of preparation
The condensed financial statements of the Company have been prepared in accordance with international accounting standards, International Accounting Standard 34 “Interim Financial Reporting”, in conformity with the requirements of the Companies Act 2006.
In the current period, the Company has applied amendments to IFRS.
These include annual improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosure and presentation requirements.
The adoption of these has not had any material impact on these financial statements and the accounting policies used by the Company followed in these half-year financial statements are consistent with the most recent Annual Report for the year ended 31 July 2025.
Going concern
The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust company will continue to be met.
The Directors have made an assessment of the Company’s ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in business for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved.
In making the assessment, the Directors have considered the likely impacts of international and economic uncertainties on the Company, operations and the investment portfolio.
These include, but are not limited to, the war in Ukraine, political and economic instability in the UK, supply shortages and inflationary pressures.
The Directors noted that the cash balance exceeds any short-term liabilities, the Company holds a portfolio of liquid listed investments and is able to meet the obligations of the Company as they fall due.
The current cash enables the Company to meet any funding requirements and finance future additional investments.
The Company is a closed end fund, where assets are not required to be liquidated to meet day to day redemptions.
The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash flows.
In making this assessment, they have considered severe but plausible downside scenarios.
These tests apply equally to any set of circumstances in which asset value and income are significantly impaired.
The conclusion was that in a plausible downside scenario the Company could continue to meet its liabilities.
Whilst the economic future is uncertain, and the Directors believe that it is possible the Company could experience further reductions in income and/or market value, and changes in expenses, the opinion of the Directors is that this should not be to a level which would threaten the Company’s ability to continue as a going concern.
The Directors also regularly assess the resilience of key third party service providers, most notably the Investment Manager and Fund Administrator.
The Directors do not have any concerns about the financial viability of the Company’s third party service providers.
Furthermore, the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern, having taken into account the liquidity of the Company’s investment portfolio and the Company’s financial position in respect of its cash flows, borrowing facilities and investment commitments (of which there are none of significance).
Therefore, the financial statements have been prepared on the going concern basis.
Comparative information
The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined by the Companies Act 2006.
The financial information for the periods ended 31 January 2026 and 31 January 2025 have not been audited or reviewed by the Company’s Auditors.
The comparative figures for the year ended 31 July 2025 are an extract from the latest published audited statements and do not constitute the Company’s statutory accounts for that financial year.
Those accounts have been reported on by the Company’s Auditor and delivered to the Registrar of Companies.
The report of the Auditor was unqualified, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
Return per Ordinary Share
Returns per Ordinary Share are based on the weighted average number of Shares in issue during the period.
Normal and diluted return per Share are the same as there are no dilutive elements of share capital.
Six months to 31 January 2026 (unaudited)
Six months to 31 January 2025 (unaudited)
Year ended 31 July 2025 (audited)
Net return £’000
Per Share pence
Net return £’000
Per Share Pence
Net Return £’000
Per Share Pence
Return on ordinary activities after tax
Revenue
(692)
(1.82)
(332)
(0.83)
(609)
(1.54)
Capital
(5,288)
(13.89)
21,896
54.60
101,968
257.29
Total return on ordinary activities
(5,980)
(15.71)
21,564
53.77
101,359
255.75
Weighted average number of Ordinary Shares
38,073,899
40,104,163
39,632,194
.
Share capital
Six months to 31 January 2026 (unaudited)
Six months to 31 January 2025 (unaudited)
Year ended 31 July 2025 (audited)
25p Ordinary Shares
Number
£’000
Number
£’000
Number
£’000
Opening Ordinary Shares in issue
40,528,238
10,132
40,528,238
10,132
40,528,238
10,132
Shares issued
-
-
-
-
-
-
Closing Ordinary Shares in issue
40,528,238
10,132
40,528,238
10,132
40,528,238
10,132
Treasury shares:
Balance at beginning of the period/year
2,179,259
335,220
335,220
Buyback of Ordinary shares into treasury
324,392
417,373
1,844,039
Balance at end of period/year
2,503,651
752,593
2,179,259
Total Ordinary Share capital excluding treasury shares
38,024,587
39,775,645
38,348,979
The Company’s Share capital comprises Ordinary Shares of 25p each with one vote per Share.
No shares were issued during the period (six months to 31 January 2025: nil; year ended 31 July 2025: nil).
During the period 324,392
Ordinary Shares were bought back and placed in treasury (six months to 31 January 2025: 417,373; year ended 31 July 2025: 1,844,039).
Dividends per Ordinary Share
The Board has declared an interim dividend of 20p per Ordinary Share (2025: interim dividend of 7p per Ordinary Share and special dividend of 7p per Ordinary Share) which will be paid on 8 May 2026 to Shareholders registered at the close of business on 10 April 2026 (ex-dividend 9 April 2026).
This dividend has not been included as a liability in these financial statements.
Net asset value per Ordinary Share
Net asset value per Ordinary Share is based on net assets of £398,943,000 (31 January 2025: £349,791,000; 31 July 2025: £413,128,000) at the period end and 38,024,587 (31 January 2025: 39,775,645; 31 July 2025: 38,348,979) being the number of Ordinary Shares excluding Treasury Shares in issue at the period end.
Fair value hierarchy
The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements.
The fair value is the amount at which the asset could be sold in an ordinary transaction between market participants, at the measurement date, other than a forced or liquidation sale.
The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements.
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows:
Level 1 – valued using quoted prices, unadjusted in active markets for identical assets and liabilities.
Level 2 – valued by reference to valuation techniques using observable inputs for the asset or liability 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 for the asset or liability.
The tables below set out fair value measurement of financial instruments, by the level in the fair value hierarchy into which the fair value measurement is categorised.
Financial assets/liabilities at fair value through profit or loss at 31 January 2026
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Investments
363,520
-
-
363,520
Unrealised derivative assets
-
4,746
-
4,746
Unrealised derivative liability
-
(11,357)
-
(11,357)
Total
363,520
(6,611)
-
356,909
Financial assets/liabilities at fair value through profit or loss at 31 January 2025
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Investments
311,794
-
-
311,794
Unrealised derivative assets
-
2,711
-
2,711
Unrealised derivative liability
-
(7,691)
-
(7,691)
Total
311,794
(4,980)
-
306,814
Financial assets/liabilities at fair value through profit or loss at 31 July 2025
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Investments
375,583
-
-
375,583
Unrealised derivative assets
-
10,912
-
10,912
Unrealised derivative liability
-
(4,621)
-
(4,621)
Total
375,583
6,291
-
381,874
Transactions with the Manager and related parties
M&L Capital Management Limited (“MLCM”), a company controlled by Mark Sheppard, acts as Manager to the Company.
Mark Sheppard is also a director of M&M Investment Company plc (“MMIC”) which is the controlling Shareholder of the Company.
During the six months to 31 January 2026, MMIC (including connected parties) purchased no Ordinary shares.
As at 31 January 2026, MMIC (including connected parties) was interested in a total of 23,874,710 Ordinary Shares of 25 pence each in the Company, representing 62.79% of the voting share capital.
Total fees charged by the Manager for the six months to 31 January 2026 were £1,498,000 (six months to 31 January 2025: £1,256,000; year ended 31 July 2025: £2,447,000), of which £242,000 was outstanding as at 31 January 2026 (31 January 2025: £213,000; 31 July 2025: £251,000).
The fees payable to Directors are set out in the 2025 Annual Report.
There were no other related party transactions in the period.
Post Statement of Financial Position event
There were no other significant events since the end of the reporting period.
Glossary
Reference should be made to the Glossary in our Annual Report for the year ended 31 July 2025 (pages 91 to 93) for a definition of key terms and Alternative Performance Measures (such as NAV, NAV per Share and Total Return).
INVESTMENT OBJECTIVE
The investment objective of the Company is to achieve capital appreciation.
INVESTMENT POLICY
Asset allocation
The Company’s investment objective is sought to be achieved through a policy of actively investing in a diversified portfolio, comprising any of global equities and/or fixed interest securities and/or derivatives.
The Company may invest in derivatives, money market instruments, currency instruments, contracts for differences (“CFDs”), futures, forwards and options for the purposes of (i) holding investments and (ii) hedging positions against movements in, for example, equity markets, currencies and interest rates.
The Company seeks investment exposure to companies whose shares are listed, quoted or admitted to trading. However, it may invest up to 10% of gross assets (at the time of investment) in the equities and/or fixed interest securities of companies whose shares are not listed, quoted or admitted to trading.
Risk diversification
The Company intends to maintain a diversified portfolio and it is expected that the portfolio will have between approximately 20 to 100 holdings.
No single holding will represent more than 20% of gross assets at the time of investment.
In addition, the Company’s five largest holdings (by value) will not exceed (at the time of investment) more than 75% of gross assets.
Although there are no restrictions on the constituents of the Company’s portfolio by geography, industry sector or asset class, it is intended that the Company will hold investments across a number of geographies and industry sectors.
During periods in which changes in economic, political or market conditions or other factors so warrant, the Manager may reduce the Company’s exposure to one or more asset classes and increase the Company’s position in cash and/or money market instruments.
The Company will not invest more than 15% of its total assets in other listed closed-ended investment funds. However, the Company may invest up to 50% of gross assets (at the time of investment) in an investment company subsidiary, subject always to the other restrictions set out in this investment policy and the Listing Rules.
Gearing
The Company may borrow to gear the Company’s returns when the Manager believes it is in Shareholders’ interests to do so.
The Company’s Articles of Association (“Articles”) restrict the level of borrowings that the Company may incur up to a sum equal to two times the net asset value of the Company as shown by the then latest audited balance sheet of the Company.
The effect of gearing may be achieved without borrowing by investing in a range of different types of investments including derivatives.
Save with the approval of Shareholders, the Company will not enter into any investments which have the effect of increasing the Company’s net gearing beyond the limit on borrowings stated in the Articles.
General
In addition to the above, the Company will observe the investment restrictions imposed from time to time by the Listing Rules which are applicable to investment companies with shares listed on the Official List of the Financial Conduct Authority (“FCA”).
No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution.
In the event of any breach of the investment restrictions applicable to the Company, Shareholders will be informed of the remedial actions to be taken by the Board and the Manager by an announcement issued through a regulatory information service approved by the FCA.
Investment Strategy and Style
The fund’s portfolio is constructed with flexibility but is primarily focused on stocks that exhibit the attributes of growth.
Target Benchmark
Under UKLR 11 for closed-ended investment funds, there’s no requirement for the Company to adopt a performance benchmark.
Investments for the portfolio are not selected from constituents of any single index and the Company does not use any individual benchmark to assess performance.
As stated in our last Annual Report, we are tired of being expensively charged by benchmark providers so we have cancelled all services received from our previous benchmark providers.
There are a huge number of digital financial data providers that allow shareholders to assess the performance of the Company on a Share Price and/or Net asset value per share basis against whichever benchmark the shareholder thinks is the best and many allow this for free.
Providing charts and data against benchmarks heralds back to the digital dark ages when such information was not ubiquitously free.
Environmental, Social, Community and Governance
The Company considers that it does not fall within the scope of the Modern Slavery Act 2015 and it is not, therefore, obliged to make a slavery and human trafficking statement.
In any event, the Company considers its supply chains to be of low risk as its suppliers are typically professional advisers.
In its oversight of the Manager and the Company’s other service providers, the Board seeks assurances that they have regard to the benefits of diversity and promote these within their respective organisations.
The Company has given discretionary voting powers to the Manager.
The Manager votes against resolutions they consider may damage Shareholders’ rights or economic interests and report their actions to the Board.
The Company believes it is in the Shareholders’ interests to consider environmental, social, community and governance factors when selecting and retaining investments and has asked the Manager to take these issues into account.
The Manager does not exclude companies from their investment universe purely on the grounds of these factors but adopts a positive approach towards companies which promote these factors.
The portfolio’s Sustainalytics Environmental Percentile was 81.1% as at 31 January 2026.
The Company notes the Task Force on Climate-related Financial Disclosures (‘TCFD’) reporting recommendations.
However, as a listed investment company, the Company is not subject to the Listing Rule requirement to report against the framework.
The Company fully recognises the impact climate change has on the environment and society, and the Manager continues to work with the investee companies to raise awareness on climate change risks, carbon emission and energy efficiency.
SHAREHOLDER INFORMATION
Investing in the Company
The Shares of the Company are listed on the Official List of the FCA and traded on the London Stock Exchange. Private investors can buy or sell Shares by placing an order either directly with a stockbroker or through an independent financial adviser.
Electronic communications from the Company
Shareholders now have the opportunity to be notified by email when the Company’s Annual Report, Half-Yearly Report and other formal communications are available on the Company’s website, instead of receiving printed copies by post.
This reduces the cost to the Company as well as having an environmental benefit in the reduction of paper, printing, energy and water usage.
If you have not already elected to receive electronic communications from the Company and now wish to do so,
visit www.signalshares.com. All you need to register is your investor code, which can be found on your Share certificate or your dividend confirmation statement.
Alternatively, you can contact MUFG Corporate Markets’ Customer Support Centre which is available to answer any queries you have in relation to your shareholding: By phone: 0371 664 0300 (from overseas call +44 (0) 371 664 0300).
Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable international rate.
Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales.
By email – shareholderenquiries@cm.mpms.mufg.com
By post – MUFG Corporate Markets - Share Dealing, Central Square, 29 Wellington Street, Leeds, LS1 4DL.
Frequency of NAV publication
The Company’s NAV is released to the London Stock Exchange on a weekly basis.
Sources of further information
Copies of the Company’s Annual and Half-Yearly Reports, factsheets and further information on the Company can be obtained from its website:
www.mlcapman.com/manchester-london-investment-trust-plc
.
Key dates
2026
Half-Yearly results announced
March
Interim dividend payment
May
Company’s year end
31 July
Annual results announced
September
Annual General Meeting
November
Expected final dividend payment
November
Company’s half-year end
31 January
CORPORATE INFORMATION
Directors and Advisors
Directors
Auditor
Daniel Wright (Chairman)
Deloitte 110 Queen Street Glasgow G1 3BX
Brett Miller
Sir James Waterlow
Daren Morris
Manager and Alternative Investment Fund Manager
Administrator
M&L Capital Management Limited 12a Princes Gate Mews London SW7 2PS ir@mlcapman.com www.mlcapman.com
Waystone Administration Solutions (UK) Limited Broadwalk House Southernhay West Exeter EX1 1TS
Company Secretary
Registrar
MUFG Corporate Governance Limited 19th Floor 51 Lime Street London EC3M 7DQ
Indos Financial Limited The Scalpel 18th Floor 52 Lime Street London EC3M 7AF
National Westminster Bank plc 11 Spring Gardens Manchester M60 2DB
Company Details
Registered office
Country of incorporation
12a Princes Gate Mews London SW7 2PS
Registered in England and Wales Company Number: 01009550
Company website
www.mlcapman.com/manchester-london-investment-trust-plc
LEI: 213800HMBZXULR2EEO10
Name of authorised official of issuer responsible for making notification
MUFG Corporate Governance Limited, Company Secretary
Tel: 0333 300 1950
18 March 2026
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