REG - Mercantile Inv Tst - Final Results - 31st January 2025
08/04/2025 07:00
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RNS Number : 0066E Mercantile Investment Trust(The)PLC 08 April 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
THE MERCANTILE INVESTMENT TRUST PLC
FINAL RESULTS FOR THE YEAR ENDED 31st JANUARY 2025
Legal Entity Identifier: 549300BGX3CJIHLP2H42
Information disclosed in accordance with the DTR 4.1.3
The Mercantile Investment Trust plc (the 'Company') announces its full year
results for the 12-months ended 31st January 2025.
Highlights:
· NAV total return* of +14.1% compared with +12.3% for the FTSE
All-Share Index, excluding constituents of the FTSE 100 Index and investment
trusts, with net dividends reinvested (the 'Benchmark'). Share price total
return +18.9%.
· The Company's outperformance was primarily driven by stock
selection, with contributions from holdings such as 3i, Intermediate
Capital, Plus500 and Games Workshop.
· For five years cumulative ended 31st January 2025, NAV total
return* of +18.9% compared with +13.9% for the Benchmark. Share price total
return +11.3%.
· For ten years cumulative ended 31(st) January 2025 NAV total
return* of +112.3% compared with +67.2% for the Benchmark. Share price total
return +122.7%.
· Final dividend of 3.40p in respect of the year, taking the total
dividend to 7.90p per share, an increase of 3.3% on last year.
· Ongoing Charge of 0.48% for the year.
· Buybacks of 35.4 million shares at a cost of £82 million and an
average discount of 11.6%.
· Gearing as at year end was 14.1% (compared to 13.4% on 31st
January 2024).
*NAV total return with debt at fair value.
The Chairman, Angus Gordon Lennox, commented:
"The investment outlook is always clouded by uncertainties of some kind and
the associated risk of volatility. I believe the shock and effects of the
budget in October will wane and the entrepreneurial spirit in the UK will once
again come to the fore. Most recently widespread U.S. tariffs and retaliatory
action taken by other countries have added a new dimension to economic
uncertainty and ongoing geopolitical tensions."
"However, your Portfolio Managers have a long and successful track record of
navigating volatility triggered by a variety of market developments, and
this, combined with their disciplined investment approach, leaves the Board
confident in their ability to steer the portfolio through the coming months
and years. Moreover, the Board believes that market corrections that occur
after unexpected shocks often present excellent buying opportunities. While
there may be ongoing weakness and volatility, the Board is of the view that
these are typically just fluctuations when viewed over a longer time horizon."
Portfolio Managers, Guy Anderson and Anthony Lynch, commented:
"Financial markets continue to be buffeted by the inter-connected forces of
inflation, monetary policy, and their impact upon economic growth
expectations. Furthermore, the current geopolitical landscape appears to be
primed for generating unanticipated shocks at any moment; the latest
announcement from the President of the United States on tariffs is truly
extraordinary, and while the UK is less directly impacted than many economies
and the ultimate end game may look very different to the view today, this can
only have a negative impact on global economic growth.
"Despite this, and amidst the market turmoil that it is creating, there is
cause for some cautious optimism. The valuation of the UK market remains at a
steep discount to both its own history and relative to other developed
markets."
"We will maintain our focus on investing in structurally robust businesses
that operate in growing end markets and possess the ability to invest capital
at attractive returns while being able to adapt to the changing environments
in which they operate. We believe that a portfolio of such investments offers
the best prospect of delivering compelling returns and outperformance for our
shareholders over the long-term, just as they have done in the past."
CHAIRMAN'S STATEMENT
This will be my last Chairman's Statement before I step down after the Annual
General Meeting ('AGM') in May. It has been a privilege to be a Director of
the Company since 2015 and Chairman for the last seven years. I am pleased to
present the Company's annual results for the year ended 31st January 2025,
especially as the year was another positive one, delivering strong gains and
outperformance for shareholders.
Market Background
This performance is especially laudable given that the supportive market
conditions of the first half of the financial year dissipated in the second
half. The new Labour Government took office in July 2024. Its gloomy economic
rhetoric, combined with October's tougher than expected budget, undermined
consumer and business confidence. In addition, the sharp declines in inflation
seen since mid-2022 ceased during the summer, and a subsequent rebound in
inflation pressures led investors to reassess their expectations about the
pace of interest rate cuts. Together, these developments ensured the strong
equity market recovery which began in late 2023 stalled in mid-2024, and some
of the first half's gains were subsequently lost. After rising by +15% in the
first six months of the financial year, the Company's Benchmark ended the year
up 12.3%.
Performance
Against this backdrop, your Company outpaced its benchmark, making a return on
net assets of +14.1% with debt at fair value for the year as a whole, although
this was somewhat lower than the 17.8% gain seen in the first half of the
year. This result further enhances the Company's long term performance track
record; in the ten years to 31st January 2025, the Company's NAV has delivered
an annualised total return of +7.8% with debt at fair value, decisively above
the benchmark annualised return of +5.3%.
The Portfolio Managers' Report below and on pages 20 to 23 in the Annual
Report provides further details of the drivers of recent performance and
changes made to the portfolio during the review period. The report also
discusses the market outlook.
Return and Dividends
The Company's dividend has grown for over ten consecutive years, making the
Company an AIC next-generation dividend hero.
The Company aims to provide shareholders with long-term dividend growth at
least in line with the rate of inflation over a five-to-ten-year period. The
table below illustrates how the company has fulfilled this commitment,
including over the year to 31st January 2025. Over this period, the Company
has paid three interim dividends of 1.50p per ordinary share and the Board has
declared a fourth quarterly interim dividend of 3.40p per share. This brings
the total dividend for the year to 7.90p per share, an increase of 3.3% over
the previous year.
CPI* Mercantile Dividend Growth
(% per annum) (% per annum)
Three Years 5.6% 4.6%
Five Years 4.5% 3.7%
Ten Years 3.1% 6.8%
* Consumer Price Index (CPI). Source: Office for National Statistics.
In deciding our dividend payments, we look to pay dividends that are at least
covered by current year earnings, while also allowing us to build revenue
reserves. However, it is a great advantage of the investment trust structure
that the Company is able to partially fund dividend payments from revenue
reserves when necessary, to bolster the dividend during challenging times.
During the financial year, all declared dividends were fully covered by
earnings. Revenues per share during the year was 8.96p (31st January 2024:
9.01p). After payment of the fourth interim dividend, the Company will have
revenue reserves of 8.0p per share (2024: 6.5p).
Discount and Share Repurchases
The discount at which the Company's shares trade versus its NAV with debt at
fair value narrowed over the review period to finish the year at 9.2% (2024:
12.6%). The Board is cognisant that it is in shareholders' interests that the
Company's share price should not differ excessively from the underlying NAV
under normal market conditions. In the Board's view, the level of the share
price's discount to NAV is unwarranted, so during the financial year the
Company repurchased 35,388,374 shares, amounting to 3.7% of the shares in
issue. These shares are held in Treasury and were purchased at an average
discount to NAV of 11.6%, producing a modest accretion to the NAV for
continuing shareholders. Since the financial year end, the Company has
purchased a further 14,447,631 shares.
The Board believes that the Company's share buyback facility is an important
tool in the management of discount volatility. Therefore, my fellow directors
and I recommend that shareholders approve the renewal of the authority to
repurchase up to 14.99% of the Company's shares at the forthcoming AGM, with
repurchased shares to be cancelled or held in Treasury. The Board is again
seeking shareholder approval to issue shares at a premium to NAV and to
disapply pre-emption rights on any such issues. As with buying shares at a
discount, issuing new shares at a premium to NAV enhances returns to existing
shareholders and improves liquidity.
Gearing
It is the Board's intention that the Company continues to operate within the
range of 10% net cash to 20% geared, under normal market conditions. The
Company ended the year with gearing at 14.1% (compared to 13.4% on 31st
January 2024). In the financial year ended 31st January 2025, gearing (net of
costs) added 1.5% to the Company's relative performance against its Benchmark.
Gearing is regularly discussed by the Board and the Portfolio Managers and is
implemented via the use of long-dated, fixed-rate financing, from several
sources, consistent with the Board's aim to ensure a diversification of
source, tenure and cost of leverage available to the Company. Full details of
these instruments can be found on page 33 in the Annual Report.
140 Years of The Mercantile Investment Trust
Your Company recently celebrated its 140th anniversary. The Company began life
as The Mercantile Investment and General Trust, which was established on 8th
December 1884 with the aim to deliver 'long-term capital growth from an
international portfolio'. The Trust initially attracted 505 shareholders who
together invested capital totalling £190,020 (about £30.6 million in today's
money). As at 31st January 2025, The Mercantile Investment Trust plc has net
assets of more than £1.9 billion and over 745 million shares in issue. To
commemorate this special occasion, on 10th December 2024 my fellow directors
and I opened that day's trading at the London Stock Exchange. We were joined
by representatives from JPMorgan, the Company's advisors, journalists and
ex-directors. On behalf of the entire Board, I would like to take this
opportunity to thank our shareholders and other stakeholders for their ongoing
support over the years and we look forward to reporting on the Company's
future success.
Marketing, Promotion and Shareholder Interaction
The Company continues its efforts to raise its profile among investors and
potential investors through focused media and promotional efforts, as well as
via the ongoing engagement with national and investment industry journalists.
The Board believes that boosting the Company's profile will be advantageous
for all shareholders by generating consistent demand for its shares,
especially from retail investors, where interest has been steadily increasing
in recent years. We aim to carry out these promotional activities in the most
cost-effective way possible.
To further enhance the Company's presence within the broader investment
community, the Manager implements a well-established sales and investor
relations programme. This programme targets wealth managers, institutions, and
private client stockbrokers through video conferences and in-person meetings.
As well, the Portfolio Managers attend and present at retail events such as
the annual Master Investor Event.
The Board and the Portfolio Managers also maintain a dialogue with the
Company's shareholders via regular email updates, which deliver news and
views, and discuss the latest performance. If you have not already signed up
to receive these communications and you wish to do so, you can opt in via
www.Mercantile-Registration.co.uk, or by scanning the QR code on page 16 in
the Annual Report.
It is the Board's hope that these initiatives will give many more of the
Company's investors and potential investors the opportunity to remain
well-informed about its progress and to interact with the Board and Portfolio
Managers.
Board Succession
As previously announced, I will be stepping down as Chairman of the Company at
the conclusion of the AGM in May 2025. I will be succeeded by Rachel Beagles,
the current Senior Independent Director as Chair of the Board and the
Nomination Committee. Graham Kitchen will take over the role of Senior
Independent Director from Rachel Beagles at the conclusion of the AGM. More
details on the selection process can be found on pages 51 and 52 in the Annual
Report.
The Board reviews its composition on a regular basis, taking into account the
need to refresh its membership regularly and maintain a wide and relevant
range of experience and expertise. The Board can confirm that its current
composition is complaint with all targets applicable to a Company listed on
the London Stock Exchange. It is the Board's intention that this will continue
to be the case going forward.
The Board supports the annual re-election for all Directors, as recommended by
the AIC Code of Corporate Governance, and therefore all the Directors, except
for me, will stand for re-election at the forthcoming AGM.
The Manager
The Board, through its Management Engagement Committee, monitors the
performance of the Manager, JPMorgan Funds Limited ('JPMF'), on an ongoing
basis. Given the Manager's long term performance track record, the Company's
competitive management fee and the depth and quality of resource offered by
the Manager to the Company and its shareholders, the Board is satisfied that
JPMF's ongoing appointment as the Company's Manager remains in the best
interests of shareholders.
Annual General Meeting
The Company's one hundred and thirty nineth Annual General Meeting will be
held at Trinity House, Tower Hill, London EC3N 4DH on Thursday, 22nd May 2025
at 12.00 noon. In addition to the formal part of the meeting, there will be a
presentation from the Portfolio Managers who will answer questions on the
portfolio and performance. The meeting will be followed by a buffet lunch
which will give shareholders an opportunity to meet the Board, the Portfolio
Managers and representatives of the Manager.
Outlook
The Board believes that investor concerns about the global growth impact of
U.S. tariffs - threatened or actual - are very real. The uncertainty generated
by President Trump administration's approach to trade and international
relations more generally is already damaging consumer and business confidence
in the U.S., and around the world. The Board shares the Portfolio Managers'
view that the UK will be less affected by these issues than other major
economies, although the near-term domestic economic growth is likely to be
modest growth at best. However, the fundamental performance of most of the
Company's portfolio holdings has been healthy, and they have fared better than
the market as a whole. Furthermore, as I noted in my last report, there are
signs that investors are finally beginning to recognise the value that UK
equities offer, both in historical terms, and relative to other developed
markets. Although the market lost some momentum in the second half of last
year, the interest in mergers and acquisition activity evident in the first
half persisted, and has continued beyond the end of the Company's financial
year, driven by both strategic corporate buyers and private equity investors.
Medium and smaller businesses have been the target for much of this activity.
As interest rates trend lower during 2025, this should prove supportive of
growth and UK stocks. The medium and smaller sized companies targeted by the
Portfolio Managers tend to outperform in such circumstances, as they are
usually more exposed to domestic economic activity than the broader UK market.
The investment outlook is always clouded by uncertainties of some kind and the
associated risk of volatility. I believe the shock and effects of the very
unhelpful budget in October will wane and the entrepreneurial spirit in the UK
will once again come to the fore. Most recently, widespread U.S. tariffs and
retaliatory action by other countries have added a new dimension to economic
uncertainty and ongoing geopolitical tensions. However, your Portfolio
Managers have a long and successful track record of navigating volatility
triggered by a variety of market developments, and this, combined with their
disciplined investment approach, leaves the Board confident in their ability
to steer the portfolio through the coming months and years. Moreover, the
Board believes that market corrections that occur after unexpected shocks
often present excellent buying opportunities. The present relatively cheap
valuations of UK company shares makes investing in the UK equity market an
attractive prospect for investors with a mid to long-term outlook. While there
may be ongoing weakness and volatility, the Board is of the view that these
are typically just fluctuations when viewed over a longer time horizon.
Although short-term market movements are unpredictable, investing in and
holding quality companies at attractive valuations, as observed now, tends to
yield returns that outperform both the index and inflation.
I leave you at the AGM as Chairman, but not as a fellow shareholder. My nine
years on the Board has been an absolute privilege although with both high and
low points. We have been through quite a lot together. BREXIT, COVID, and a
market unwilling to value UK shares as they should be. Despite these
challenges in that time the share price has grown by 46.4%(1) and the dividend
by 84%(2) underlining what a great investment the Company has been and I
believe will continue to be. I look forward to seeing a number of you at this
year's AGM with me sitting 'up front', and for many years to come sitting
alongside you as a fellow shareholder.
Angus Gordon Lennox
Chairman
7th April 2025
(1) Period covered: 23rd September 2015 to 31st January 2025. Angus
Gordon Lennox became a Director on the Board of The Mercantile Investment
Trust plc on 23rd September 2015.
(2) Period covered: given Angus Gordon Lennox became a Director on the
Board of The Mercantile Investment Trust plc on 23rd September 2015, dividend
growth is considered from the financial period ended on 31st January 2016 to
31st January 2025.
PORTFOLIO MANAGERS' REPORT
Setting the scene: another change in narrative
Over the course of this financial year UK equities delivered healthy progress,
with our target market of UK medium and smaller sized companies (the
'Benchmark') delivering a return of 12.3%. This is a substantial improvement
on the 1.8% return of the previous year, but with all these gains being
delivered in the first half of the year, and the second experiencing a gradual
grind downwards, it has not been without its challenges.
Having been a widely reviled market for some time, it was pleasing to note a
slight moderation in the narrative, as it was belatedly recognised that the
domestic economy was proving to be more resilient than anticipated, with UK
economic output beating expectations through much of the year. Unfortunately,
some of this cheer proved short-lived as months of downbeat soundbites from
the new government, alongside increases in taxation to fund spending, halted
the recovery in both consumer and business confidence. Despite this poor
start, with such a large albeit shallow majority, the new Labour government
does at least have the potential to provide a more stable operating
environment for the years ahead. However, as we are witnessing across the
world, politics is rarely if ever predictable, and so we remain vigilant of
the usual plethora of risks.
The expected path of inflation and monetary policy continue to drive market
fluctuations, and with various inflationary forces in the UK it would be easy
to assume that interest rates might remain restrictive, were it not for the
current signs of weaker demand that could quickly reverse this expectation. If
rates are lowered more rapidly than currently forecast, the more cyclical and
domestically exposed market of our Benchmark would stand to be an outsized
beneficiary compared to the broader UK equity market.
Performance attribution
Performance attribution analyses how the Company achieved its recorded
performance relative to its benchmark index.
For the year ended 31st January 2025
% %
Contributions to total return
Benchmark total return 12.3
Allocation/Stock/Sector Effect -0.2
Effect of Cash and Gearing 2.2
Cost of Debentures and Senior Unsecured Privately -0.7
Placed Loan Notes
Portfolio Total Return 13.6
Management Fees and Other Expenses -0.5
Share Buy-Back 0.6
Cum Par Net Asset Value Total Return(APM) 13.7
Impact of Debt Valuation 0.4
Cum Fair Net Asset Value Total Return(APM) 14.1
( )
(APM) Alternative Performance Measure ('APM').
Source: JPMAM and Morningstar. All figures are on a total return basis.
Contributions calculated using an Arithmetic methodology.
A glossary of terms and APMs is provided on pages 104 to 106 in the Annual
Report.
Mercantile performance
Against this somewhat mixed yet overall positive backdrop, for the year to
31st January 2025 the Company delivered a return on net assets of +13.7%, with
debt valued at par, and +14.1% with debt at fair value, in both cases ahead of
the Benchmark's +12.3% return. This recent performance extends the Company's
track record of outperformance over the long-term: in the ten years to end
January 2025, its NAV delivered an annualised total return of 7.0% with debt
valued at par, and 7.8% with debt at fair value, again both ahead of the
benchmark annualised return of 5.3%.
Spotlight on stocks
Winners
Performance this year was again aided by a strong outturn from several of our
longer-standing investments, led by our substantial holdings in the financials
sector. Private equity group 3i continued to deliver better than expected
results, driven by continued excellent sales and profit growth at its discount
retailer Action, which now represents about 70% of its investment portfolio,
while the financial performance of Intermediate Capital, an alternative asset
manager, remained strong on the back of continued healthy fund-raising. A new
holding in this sector, the trading platform operator Plus500, also delivered
healthy gains as it successfully grew its customer base further while
continuing to generate strong profitability and return cash to shareholders.
Another major highlight for the portfolio this year was our longstanding
holding in Nottingham-based Games Workshop. This company designs, manufactures
and sells war-gaming figurines and has a relentless focus on the continuous
development of intellectual property to make the Warhammer hobby ever better.
This has allowed the company to build a global and growing base of fans, who
are passionate supporters and loyal customers. The recent agreement with
Amazon to develop films and television series based upon its content
illustrates just some of the potential for the future. Meanwhile the business
continues to grow, and enjoys strong economics, with high profit margins and
healthy cash generation.
Losers
On the negative side, the largest detractor from performance was the software
and computer services sector, an area in which we have historically had better
success. The major culprit was our holding in Bytes Technology, one of the
UK's leading value-added technology resellers, whose shares came under
pressure following the sudden and unexpected resignation of the CEO, as well
as due to the weaker environment for corporate demand. Given the long-term
growth opportunity from increased corporate spend on technology more broadly,
alongside the potential accelerant from increased adoption of generative AI
solutions, we have retained our holding. While it was pleasing to see the
company just report a reacceleration in growth through the second half of the
year, we will continue monitoring progress even more closely than usual.
Our next two largest individual detractors from performance came from 'sins of
omission': companies that we did not hold but which performed particularly
well. St. James's Place, the provider of financial advice, delivered a strong
acceleration of net inflows, which drove the shares back up into the FTSE 100,
while Burberry, the luxury fashion brand, was deleted from the FTSE100 but
experienced a dramatic increase in its share price from a depressed base,
following results that were ahead of low expectations.
From a relative performance perspective, the portfolio also suffered from the
surge in the number of companies that were subject to takeover bids at
substantial premia. While we benefited from this in the two instances of
Britvic and Redrow, in which we held shares, there were a greater number where
we had no holding, including Direct Line, Hargreaves Lansdown and Darktrace.
Positioning the portfolio for future success
We invest in medium and smaller sized UK companies that have significant
opportunities for growth, focusing on those outside of the FTSE 100 Index and
which may therefore be overlooked by other market practitioners. We invest in
the shares of companies that we believe possess the characteristics that may
facilitate this growth, for example nimble business models that can innovate
or disrupt their industries, or companies that occupy prime positions in
rapidly growing markets.
Through the course of any individual year there are adjustments to the
portfolio to reflect the changing environment, as investment hypotheses run
their course or are proved invalid, or as share price moves present better
opportunities elsewhere. Over the past few years there have been multiple
turning points for markets as well as numerous changes to the operating
environments of our portfolio companies. Despite this, portfolio turnover has
remained somewhat lower than long-term averages, reflecting what we believe to
be a resiliently positioned portfolio and our clear focus on the long-term
prospects of holdings.
Furthermore, we have been operating in a volatile environment, with supply
chain challenges coming out of the pandemic, inflation, a drastic shift in
monetary policy, war in Europe and now the uncertainty from US policy
gyrations and the threat of widespread tariffs. We believe that this backdrop
has made it even more important to focus on well-positioned and well-managed
businesses that have the resilience to cope and even thrive in a variety of
situations, and which may ultimately emerge with stronger competitive
positions.
There have been a number of changes to the portfolio's constituents over the
year, with a total of 19 new holdings added while we exited from 15. From a
top-down perspective we have increased our exposure to the financials sector,
while our technology and consumer exposure has been slightly moderated. These
observations should be read in the context of a portfolio in which over 80%
remains unaltered, and in which every investment decision is based upon the
assessment of the prospects for the specific shares being acquired or
divested. The level of gearing deployed has been reasonably constant over the
course of the year, averaging around 15%.
In the financials sector, we made a new investment in Plus500, the retail
trading platform operator, which is now a top 10 holding for the portfolio. We
also initiated a new position in IntegraFin, which provides a range of
services, including their proprietary investment platform Transact, designed
to help independent financial advisers and their clients manage their assets
efficiently. Finally in this sector, we bought shares in Pollen Street, the
alternative asset manager focusing on private equity and credit, which has set
out ambitious growth targets following its combination with Honeycomb
Investment Trust.
Other new additions to the portfolio came from a broad range of sectors, and
included Trainline, the online train ticket retailer, Moonpig, the online
retailer of greetings card and gifts, Mitie, the facilities management
company, Volution, the manufacturer of air ventilation products, and Britvic,
the drinks supplier. We also invested in the building materials companies
Ibstock and Forterra, two of the UK's largest brick manufacturers. As is
hopefully evident from this list, we are finding many exciting opportunities
from across the range of sectors and different types of businesses.
These purchases were funded by various sales, including exits from investments
in Tate & Lyle, the ingredient supplier, and Hays and PageGroup, two
recruitment businesses that have struggled given the prolonged and broad-based
downturn in the level of recruitment activity across multiple geographies and
fields. We sold out of our positions in Direct Line, the insurance provider
and RS Group, a distributor of electronics and industrial products. We also
exited from our holdings in Weir Group, the engineering business focusing on
products and technologies that help their mining customers to operate
productively, and Howden Joinery, the UK's leading supplier of fitted
kitchens, these final two both now being FTSE 100 companies.
Outlook for the coming year
As always, there are valid reasons to be apprehensive about the future:
financial markets continue to be buffeted by the inter-connected forces of
inflation, monetary policy, and their impact upon economic growth
expectations, which in the UK could be described as lacklustre at best.
Furthermore, the current geopolitical landscape appears to be primed for
generating unanticipated shocks at any moment: the latest announcement from
the President of the United States on tariffs is truly extraordinary, and
while the UK is less directly impacted than many economies and the ultimate
end game may look very different to the view today, this can only have a
negative impact on global economic growth.
Despite this, and amidst the market turmoil that it is creating, there is
cause for some cautious optimism. The valuation of the UK market remains at a
steep discount to both its own history and relative to other developed
markets. Within the UK, given their greater economic cyclicality and
sensitivity to interest rates, medium and smaller size companies are trading
at a discount relative to their usual level versus larger companies. These
facts have not gone unnoticed, as we have seen a pick-up in the number of
acquisitions by corporate buyers (focusing on medium and smaller companies),
while the volume of share buybacks being executed by management teams has also
soared.
While the changing economic landscape will impact our portfolio companies,
most have been delivering healthy financial performance while executing their
growth strategies, in many cases backed by substantial capital investments.
The combination of these factors, and the breadth of exciting investment ideas
that we have been finding, explain our current elevated level of gearing,
sitting at around 15%. This action hopefully demonstrates most clearly our
assessment of the opportunity before us.
Looking ahead, we will maintain our focus on investing in structurally robust
businesses that operate in growing end markets and possess the ability to
invest capital at attractive returns while being able to adapt to the changing
environments in which they operate. We believe that a portfolio of such
investments offers the best prospect of delivering compelling returns and
outperformance for our shareholders over the long-term, just as they have done
in the past.
Guy Anderson
Anthony Lynch
Portfolio Managers
7th April 2025
PRINCIPAL & EMERGING RISKS AND UNCERTAINTIES
The Board, through delegation to the Audit and Risk Committee, has undertaken
a robust assessment and review of the principal risks facing the Company,
together with a review of any new and emerging risks that may have arisen
during the year to 31st January 2025, including those that would threaten its
business model, future performance, solvency or liquidity.
With the assistance of the Manager, the Audit and Risk Committee has drawn up
a risk matrix, which identifies the key risks to the Company, as well as
emerging risks. The risk matrix, including emerging risks, are reviewed
formally by the Audit and Risk Committee every six months or more regularly as
appropriate. At each meeting, the Committee considers emerging risks which it
defines as potential trends, sudden events or changing risks which are
characterised by a high degree of uncertainty in terms of occurrence
probability and possible effects on the Company. As the impact of emerging
risks is understood, they may be entered on the Company's risk matrix and
mitigating actions considered as necessary. In assessing the risks and how
they can be mitigated, the Board has given particular attention to those risks
that might threaten the viability of the Company. The principal risks fall
broadly into the following categories:
Principal risk Description Mitigating activities Movement from prior year
Investment Underperformance Poor implementation of the investment strategy, for example as to thematic The Board manages these risks by examining the Manager's investment process, The risk remains high but unchanged from 2024.
exposure, sector allocation, stock selection, undue concentration of holdings, which integrates financially material ESG considerations, and by ensuring
factor risk exposure or the degree of total portfolio risk, may lead to a diversification of investments through its investment restrictions and Concentration risk, as measured by the proportion of the portfolio made up by
failure to outperform the Company's benchmark index and peer companies, and guidelines, which are monitored and reported on by the Manager. The Manager the largest ten holdings is broadly unchanged compared with the prior year
could result in the Company's shares trading at a wider discount. provides the Directors with timely and accurate management information, (see page 27 in the Annual Report).
including performance data and attribution analysis, revenue estimates,
liquidity reports and shareholder analysis. The Board monitors the
implementation and results of the investment process with the Investment
Manager, whose representatives attend all Board meetings, and reviews data
which show statistical measures of the Company's risk profile. The Board holds
a separate meeting devoted to strategy each year.
Geopolitical Instability Geopolitical Risk is the potential for political, socio-economic and cultural This risk is managed to some extent by diversification of investments and by The risk has heightened during the year due to the growing geopolitical
events and developments to have an adverse effect on the value of the regular communication with the Manager on matters of investment strategy and tensions and conflicts in Europe and the Middle East, as well as from the
Company's assets. portfolio construction which will directly or indirectly include an assessment uncertainties around the timing and impact of tariffs imposed by the U.S. The
of these risks. The Board receives regular reports from the Manager regarding tensions can significantly impact global markets, investor sentiment, and
The growing number of geopolitical conflicts worldwide seems to pose an market outlook and gives the Portfolio Managers discretion regarding economic stability.
increasing risk to market stability and investment opportunities. U.S. trade acceptable levels of gearing and/or cash. Currently the Company's gearing
policy under President Trump's second administration adds further complexity policy is to operate within a range of 10% net cash to 20% geared.
to the geopolitical environment. These trade tensions, along with
uncertainties surrounding interest rates and inflation, the ongoing conflict The Board considers thematic and factor risks, stock selection and levels of
between Russia and Ukraine, rising tensions in Southeast Asia and the Middle gearing on a regular basis and has set investment restrictions and guidelines
East, and increased nationalism globally could negatively impact investment which are monitored and reported on by the Manager.
performance, potentially affecting the Company's holdings and/or the demand
for equity investments. The Board can, with shareholder approval, look to amend the investment policy
and objectives of the Company to gain exposure to or mitigate the risks
arising from geopolitical instability.
Cyber Crime A successful cyber attack on the Investment Manager and/or important third The information technology controls around the physical security of J.P. The risk remains high but unchanged from 2024. The cyber threat landscape is
party suppliers could impact the Company's ability to operate efficiently. The Morgan Chase & Co's data centres, security of its networks and security of rapidly changing, with cyber-attacks growing ever more sophisticated and their
threat of cyber attack, in all its guises, is regarded as at least as its trading applications are tested by an independent third party and reported increasing frequency and scale is well publicised.
important as more traditional physical threats to business continuity and every six months against the AAF Standard.
security.
To date the Manager's cyber security arrangements have proven robust and the
The Board has received the cyber security policies for its key third party Company has not been impacted by any cyber attacks threatening its operations.
service providers and JPMF has assured Directors that the Company benefits
directly or indirectly from all elements of J.P. Morgan Chase & Co's
Cyber Security programme.
Discount Control Investment trust shares often trade at discounts to their underlying NAVs; The Board monitors the Company's premium/discount at which the share price The risk remains high but unchanged from 2024.
they can also trade at a premium. Discounts and premiums can fluctuate trades to NAV on both an absolute level and relative to its peers and the
considerably leading to volatile returns for shareholders; a wide discount wider investment trust sector. The Board regularly reviews and monitors the Company's objective and
could decrease the returns investors receive on their investments. Further,
investment policy and strategy, the investment portfolio and its performance,
the greater the discount to NAV, the more likely the Company becomes appealing The Board reviews sector relative performance and sales and marketing activity the level of discount/premium to net asset value at which the shares trade and
to an activist investor. (considered the primary drivers of the relative discount level). The Company movements in the share register.
also has authority to repurchase its existing shares to enhance the NAV per
share for remaining shareholders and to reduce the absolute level of discount During the year the Company significantly increased the rate of buyback
and discount volatility. activity which contributed to a reduction in the discount over the year.
Legal and Regulatory Change The Company's business model could be negatively impacted by new or revised The Board receives regular reports from its broker, depositary, registrar and The risk remains medium but unchanged from 2024.
rules or regulations arising from, for example, policy change or financial Manager as well as its legal advisers and the Association of Investment
monitoring pressure. Companies on changes to regulations which could impact the Company and its
industry.
Corporate Strategy The corporate strategy, including the investment objectives and policies, may Our investment strategies aim to position The Mercantile as a clear and core The risk has heightened during the year due to the UK being out of favour with
not be of sufficient interest to current or prospective shareholders. For investment choice available for investment through a number of channels. The investors, influenced by factors such as the country's current economic
instance, if the UK falls out of favour with investors, it could hinder the Manager continues to deliver on the Company's objective. The Board regularly landscape.
Company's appeal. reviews its strategy, and assesses, with its brokers, shareholder views.
The attractiveness of investment vehicles, including investment trusts, could Marketing and investor relations campaigns continued throughout the year and
be impacted by structural changes to the way investors access the market, we have identified appropriate promotional opportunities for the Company
including changes within the platform channels. (including advertising, events and research coverage) in order to maintain a
strong platform presence. A 'Preference Centre' provides the Company with the
ability to communicate directly and effectively with investors.
EMERGING RISKS
The Board has considered and kept under review emerging risks. The key
emerging risks identified are as follows:
Artificial Intelligence ('AI')
While it could be a great opportunity and force for good, there is an
increasing risk to business and society more widely from AI. Advances in
computing power means that AI has become a powerful tool that will impact a
huge range of areas and with a wide range of applications that include the
potential to disrupt and even to harm. In addition the use of AI could be
a significant disrupter to business processes and whole companies leading to
added uncertainty in corporate valuations.
Pandemics
The emergence of COVID-19 illustrated the speed and extent of economic damage
that can arise from a pandemic.
Whilst the impact of COVID-19 has now subsided, pandemics in general remain an
emerging risk. Evidence suggests that the likelihood of pandemics has
increased over the past century due to increased global travel and
integration, urbanisation, changes in land use, and greater exploitation of
the natural environment.
Challenges in Achieving Investment Objectives Amid Economic Downturns
A prolonged decrease in investment returns due to recession, stagnation, or
other extended external factors could make the Company's investment goals and
strategies less appealing or unattainable. For example, a high inflationary
environment together with an economic downturn could affect the portfolio
revenue generation, hindering the Company's ability to uphold its stated
policy of achieving long-term dividend growth at least in line with inflation.
TRANSACTIONS WITH THE MANAGER AND RELATED PARTIES
Details of the management contract are set out in the Directors' Report on
page 47 in the Annual Report. The management fee payable to the Manager for
the year was £7,949,000 (2024: £6,903,000) of which £nil (2024: £nil) was
outstanding at the year end.
Included in administration expenses in note 6 on page 81 in the Annual Report
are safe custody fees amounting to £38,000 (2024: £32,000) payable to
JPMorgan Chase Bank N.A. of which £9,000 (2024: £7,000) was outstanding at
the year end.
The Manager may carry out some of its dealing transactions through group
subsidiaries. These transactions are carried out at arm's length.
During the year, brokerage commission on dealing transactions amounting to
£nil (2024: £nil) was payable to JPMorgan subsidiaries of which £nil (2024:
£nil) was outstanding at the year end.
Other capital charges on dealing transactions amounting to £21,000 (2024:
£14,000) were payable to JPMorgan Chase Bank N.A. during the year of which
£6,000 (2024: £3,000) was outstanding at the year end.
At the year end, cash at bank of £20,245,000 (2024: £351,000) was held with
JPMorgan Chase Bank N.A. A net amount of interest of £14,000 (2024: £26,000)
was earned by the Company during the year from JPMorgan Chase Bank N.A. of
which £nil (2024: £nil) was outstanding at the year end.
The Company also invests in the JPMorgan GBP Liquidity Fund, a money market
fund managed by JPMorgan Asset Management (Europe) S.à r.l. At the year end
this was valued at £36.9 million (2024: £89.2 million). Interest income
amounting to £1,483,000 (2024: £5,691,000) was receivable during the year,
of which £nil (2024: £nil) was outstanding at the year end.
Full details of Directors' remuneration and shareholdings can be found on page
60 and in note 6 on page 81 in the Annual Report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and Financial
Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law, the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards, comprising Financial
Reporting Standard 102, the Financial Reporting Standard applicable in the UK
and Republic of Ireland ('FRS 102'), and applicable law). Under Company law
the Directors must not approve the financial statements unless they are
satisfied that taken as a whole, the Annual Report and Financial Statements
are fair, balanced and understandable, provide the information necessary for
shareholders to assess the Company's position and performance, business model
and strategy and that they give a true and fair view of the state of affairs
of the Company and of the total return or loss of the Company for that period.
In order to provide these confirmations, and in preparing these financial
statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable and
prudent;
• state whether applicable UK Accounting Standards, comprising
FRS 102, have been followed, subject to any material departures disclosed and
explained in the financial statements;
• prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will continue in
business; and
• notify the Company's shareholders in writing about the use,
if any, of disclosure exemptions in FRS 102 in the preparation of the
financial statements
and the Directors confirm that they have done so.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and to
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations the Directors are also responsible for
preparing a Directors' Report and Directors' Remuneration Report that comply
with that law and those regulations.
Each of the Directors, whose names and functions are listed on pages 45 and 46
in the Annual Report confirms that, to the best of his/her knowledge, the
financial statements, which have been prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law), give a true and fair view of the assets,
liabilities, financial position and net return or loss of the Company.
The Board confirms that it is satisfied that the Annual Report and Financial
Statements taken as a whole are fair, balanced and understandable and provide
the information necessary for shareholders to assess the Company's position
and performance, business model and strategy.
The Board also confirms that it is satisfied that the Strategic Report and
Directors' Report include a fair review of the development and performance of
the business, and the Company, together with a description of the principal
risks and uncertainties that it faces.
The Financial Statements are published on the www.mercantileit.co.uk website,
which is maintained by the Manager. The maintenance and integrity of the
website maintained by the Manager is, so far as it relates to the Company, the
responsibility of the Manager. The work carried out by the Auditor does not
involve consideration of the maintenance and integrity of this website and,
accordingly, the Auditor accepts no responsibility for any changes that may
have occurred to the accounts since they were initially presented to the
website. The accounts are prepared in accordance with UK legislation, which
may differ from legislation in other jurisdictions.
For and on behalf of the Board
Angus Gordon Lennox
Chairman
7th April 2025
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31st January
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value through
profit or loss - 187,228 187,228 - 18,706 18,706
Net foreign currency (losses)/gains - (4) (4) - 2 2
Income from investments 76,726 387 77,113 73,269 - 73,269
Interest receivable 1,497 - 1,497 5,717 - 5,717
Gross return 78,223 187,611 265,834 78,986 18,708 97,694
Management fee (2,385) (5,564) (7,949) (2,071) (4,832) (6,903)
Other administrative expenses (1,642) - (1,642) (1,536) - (1,536)
Net return before finance costs and taxation 74,196 182,047 256,243 75,379 13,876 89,255
Finance costs (4,172) (9,735) (13,907) (4,172) (9,734) (13,906)
Net return before taxation 70,024 172,312 242,336 71,207 4,142 75,349
Taxation (958) - (958) (141) - (141)
Net return after taxation 69,066 172,312 241,378 71,066 4,142 75,208
Return per share 8.96p 22.34p 31.30p 9.01p 0.53p 9.54p
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.
The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information prepared under guidance issued by the Association of Investment
Companies.
Net return/(loss) after taxation represents the profit/(loss) for the year and
also total comprehensive income/(loss).
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st January
Called up Capital
share Share redemption Capital Revenue
capital premium reserve reserves(1) reserve(1) Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31st January 2023 23,612 23,459 13,158 1,741,531 63,916 1,865,676
Repurchase of shares into Treasury - - - (16,474) - (16,474)
Net return - - - 4,142 71,066 75,208
Dividends paid in the year (note 2) - - - - (58,791) (58,791)
At 31st January 2024 23,612 23,459 13,158 1,729,199 76,191 1,865,619
Repurchase of shares into Treasury - - - (82,121) - (82,121)
Proceeds from share forfeiture(2) - - - 596 - 596
Net return - - - 172,312 69,066 241,378
Dividends paid in the year (note 2) - - - - (60,280) (60,280)
Proceeds from forfeiture of unclaimed
dividends(2) (note 10) - - - - 276 276
At 31st January 2025 23,612 23,459 13,158 1,819,986 85,253 1,965,468
(1) These reserves form the distributable reserves of the Company and
may be used to fund distributions to investors.
(2) During the period, the Company undertook an Asset Reunification
Program to reunite inactive shareholders with their shares and unclaimed
dividends. Pursuant to the Company's Articles of Association, the Company has
exercised its right to reclaim the shares of shareholders whom the Company,
through its previous Registrar, has been unable to locate for a period of 12
years or more. These forfeited shares were sold in the open market by the
Registrar and the proceeds, net of costs, were returned to the Company. In
addition, any unclaimed dividends older than 12 years from the date of payment
of such dividends were also forfeited and returned to the Company.
STATEMENT OF FINANCIAL POSITION
At 31st January
2025 2024
£'000 £'000(1)
Fixed assets
Investments held at fair value through profit or loss 2,242,684 2,115,714
Current assets
Debtors 4,100 7,557
Current asset investments(1) 36,903 89,179
Cash at bank(1) 20,245 351
61,248 97,087
Current liabilities
Creditors: amounts falling due within one year (10,420) (19,248)
Net current assets 50,828 77,839
Total assets less current liabilities 2,293,512 2,193,553
Non current liabilities
Creditors: amounts falling due after more than one year (328,044) (327,934)
Net assets 1,965,468 1,865,619
Capital and reserves
Called up share capital 23,612 23,612
Share premium 23,459 23,459
Capital redemption reserve 13,158 13,158
Capital reserves 1,819,986 1,729,199
Revenue reserve 85,253 76,191
Total shareholders' funds 1,965,468 1,865,619
Net asset value per share 263.2p 238.6p
(1) For the year ended 31st January 2024, the 'Cash and cash
equivalents' line item in the Statement of Financial Position was revised to
'Cash at bank' and 'Current asset investments.' This revision separately
reports the £89,179,000 investment in the JPMorgan GBP Liquidity Fund as
'Current asset investments' and £351,000 as 'Cash at bank,' in accordance
with the statutory format required by the Companies Act 2006. This adjustment
does not affect any other line items in the Statement of Financial Position or
the total current assets.
STATEMENT OF CASH FLOWS
For the year ended 31st January
2025 2024
£'000 £'000
Cash flows from operating activities
Net return before finance costs and taxation 256,243 89,255
Adjustment for:
Net gains on investments held at fair value through profit or loss (187,228) (18,706)
Net foreign currency losses/(gains) 4 (2)
Dividend income (77,113) (73,269)
Interest income (1,497) (5,717)
Realised (losses)/gains on foreign exchange transactions (4) 2
(Increase)/decrease in accrued income and other debtors (39) 36
Increase in accrued expenses 263 116
Net cash outflow from operations before dividends, interest and taxation (9,371) (8,285)
Dividends received 75,567 72,142
Interest received 1,497 5,717
Overseas withholding tax recovered 448 129
Net cash inflow from operating activities 68,141 69,703
Purchases of investments (437,321) (428,193)
Sales of investments 491,572 378,822
Net cash inflow/(outflow) from investing activities 54,251 (49,371)
Equity dividends paid (60,280) (58,791)
Proceeds from forfeiture of unclaimed dividends(1) 276 -
Repurchase of shares into Treasury (81,569) (15,819)
Proceeds from share forfeiture(1) 596 -
Loan interest paid (13,797) (13,798)
Net cash outflow from financing activities (154,774) (88,408)
Decrease in cash and cash equivalents (32,382) (68,076)
Cash and cash equivalents at start of year 89,530 157,606
Cash and cash equivalents at end of year 57,148 89,530
Cash and cash equivalents consist of:
Cash at bank 20,245 351
Current asset investment in JPMorgan GBP Liquidity Fund 36,903 89,179
Total 57,148 89,530
(1) During the period, the Company undertook an Asset Reunification
Programme to reunite inactive shareholders with their shares and unclaimed
dividends. Pursuant to the Company's Articles of Association, the Company has
exercised its right to reclaim the shares of shareholders whom the Company,
through its previous Registrar, has been unable to locate for a period of 12
years or more. These forfeited shares were sold in the open market by the
Registrar and the proceeds, net of costs, were returned to the Company. In
addition, any unclaimed dividends older than 12 years from the date of payment
of such dividends were also forfeited and returned to the Company.
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
(a) Basis of accounting
The financial statements are prepared under the historical cost convention,
modified to include fixed asset investments at fair value, and in accordance
with the Companies Act 2006, United Kingdom Generally Accepted Accounting
Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland' and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' (the 'SORP') issued by the Association of Investment
Companies in July 2022.
All of the Company's operations are of a continuing nature.
The financial statements have been prepared on a going concern basis. The
disclosures on going concern on page 53 of the Directors' Report in the Annual
Report form part of these financial statements.
2. Dividends
(a) Dividends paid and declared
2025 2024
Pence £'000 Pence £'000
Dividends paid
Fourth quarterly dividend in respect of prior year 3.30 25,626 3.10 24,493
First quarterly dividend 1.50 11,628 1.45 11,456
Second quarterly dividend 1.50 11,622 1.45 11,451
Third quarterly dividend(1) 1.50 11,404 1.45 11,391
Total dividends paid in the year 7.80 60,280 7.45 58,791
Forfeiture of unclaimed dividends over
12 years old(2) n/a (276) - -
Net dividends 7.80 60,004 7.45 58,791
Dividends declared
Fourth quarterly dividend declared 3.40 25,387 3.30 25,626
(1) The Company irrevocably transfers the funds to its Registrar in
the month prior to which the dividend is paid to shareholders. The third
quarterly dividend in February 2025 is therefore recognised as paid prior to
the year end.
(2) The unclaimed dividends were forfeited following an extensive
exercise which attempted to reunite the dividends with owners.
All dividends paid and declared in the period have been funded from the
Revenue Reserve.
The fourth quarterly dividend has been declared in respect of the year ended
31st January 2025. In accordance with the accounting policy of the Company,
this dividend will be reflected in the financial statements for the year
ending 31st January 2026.
(b) Dividends for the purposes of Section 1158 of the Corporation Tax
Act 2010 ('Section 1158')
The requirements of Section 1158 are considered on the basis of dividends
declared in respect of the financial year as shown below. The revenue
available for distribution by way of dividend for the year is £69,066,000
(2024: £71,066,000).
The maximum amount of income that the Company is permitted to retain under
Section 1158 is £11,733,000 (2024: £11,848,000), calculated as 15% of gross
revenue. Therefore the minimum distribution required by way of dividend is
£57,333,000 (2024: £59,218,000).
2025 2024
Pence £'000 Pence £'000
First quarterly dividend 1.50 11,628 1.45 11,456
Second quarterly dividend 1.50 11,622 1.45 11,451
Third quarterly dividend 1.50 11,404 1.45 11,391
Fourth quarterly dividend 3.40 25,387 3.30 25,626
Total dividends for Section 1158 purposes 7.90 60,041 7.65 59,924
3. Return per share
2025 2024
£'000 £'000
Revenue return 69,066 71,066
Capital return 172,312 4,142
Total return 241,378 75,208
Weighted average number of shares in issue during the year 771,172,156 788,846,061
Revenue return per share 8.96p 9.01p
Capital return per share 22.34p 0.53p
Total return per share 31.30p 9.54p
The total return per share represents both basic and diluted return per share
as the Company has no dilutive shares.
4. Net asset value per share
The net asset value per Ordinary share and the net asset value attributable to
the Ordinary shares at the year end are shown below. These were calculated
using 746,668,191 (2024: 782,056,565) Ordinary shares in issue at the year end
(excluding Treasury shares).
2025 2024
Net asset value attributable Net asset value attributable
£'000 pence £'000 pence
Net asset value - debt at par 1,965,468 263.2 1,865,619 238.6
Add: amortised cost of £175 million 6.125%
debenture stock 25th February 2030 174,501 23.4 174,404 22.3
Less: fair value of £175 million 6.125%
debenture stock 25th February 2030 (188,209) (25.2) (193,665) (24.7)
Add: amortised cost of £3.85 million 4.25%
perpetual debenture stock 3,850 0.5 3,850 0.5
Less: fair value of £3.85 million 4.25%
perpetual debenture stock (2,854) (0.4) (3,150) (0.4)
Add: amortised cost of senior unsecured
privately placed loan notes 149,693 20.1 149,680 19.1
Less: fair value of senior unsecured privately
placed loan notes (78,706) (10.6) (82,601) (10.6)
Net asset value - debt at fair value 2,023,743 271.0 1,914,137 244.8
5. Analysis of changes in net debt
As at 31st January 2024 Cash flows Interest and amortisation charges As at 31st January 2025
£'000 £'000 £'000 £'000
Cash and cash equivalents
Cash at bank 351 19,894 - 20,245
Current asset investments(1) 89,179 (52,276) - 36,903
89,530 (32,382) - 57,148
Borrowings:
Debentures falling due after more than five years (178,254) 10,883 (10,980) (178,351)
Private Placement due after more than five years (149,680) 2,910 (2,923) (149,693)
Bank Overdraft interest - 4 (4) -
(327,934) 13,797 (13,907) (328,044)
Net debt (238,404) (18,585) (13,907) (270,896)
(1) JPMorgan GBP Liquidity Fund, a money market fund.
JPMORGAN FUNDS LIMITED
8th April 2025
For further information, please contact:
Sachu Saji
For and on behalf of
JPMorgan Funds Limited
Telephone: 0800 20 40 20 or or +44 1268 44 44 70
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
ENDS
A copy of the Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
The Annual Report will also shortly be available on the Company's website at
www.mercantileit.co.uk where up to date information on the Company, including
daily NAV and share prices, factsheets and portfolio information can also be
found.
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