REG-Mid Wynd International Investment Trust Plc: Half-year Financial Report
26/02/2026 12:15
Mid Wynd International Investment Trust plc (‘the
Company’)
LEI: 549300D32517C2M3A561
Half-Yearly Financial Report (Unaudited) for the six months ended 31 December
2025
Highlights
* The Company’s share price was 776 pence as of 31 December 2025,
representing a Share Price Total Return for the six
months ended 31 December 2025 of 5.2%.
* The Company’s Net Asset Value Total Return
of 3.8% for the six months ended 31 December 2025 trailed our comparator
index, the MSCI All Country World Index (‘MSCI ACWI’), which returned
13.3%.
* The Company’s discount narrowed to 1.2% from 2.5%, and averaged
2.0% during the six months ended 31 December 2025 which compared favourably
with the average discount for the Association of Investment Companies Global
Sector of 8.5%.
* The Board has declared an interim dividend of 3.85p per share
(2024 interim dividend: 3.85p) which will be paid on 27 March 2026 to those
shareholders on the register at the close of business on 6 March 2026.
David Kidd, Chairman of Mid Wynd International Investment Trust plc,
commented:
“The Company’s investments are currently being held at remarkably
attractive valuations, and the Board is optimistic that the coming year will
bring a significant improvement in both absolute and relative performance.”
For further information, please contact:
Juniper Partners Limited
Company Secretary
Email: cosec@junipartners.com
Enquiries: 0131 378 0500
Performance Highlights
Total returns Six months ended 31 December 2025 Six months ended 31 December 2024 Year ended 30 June 2025
Net asset value per share† 3.8% 0.8% (5.1)%
Share price† 5.2% 0.1% (5.9)%
MSCI All Country World Index (GBP) 13.3% 6.5% 7.2%
Revenue and dividends Six months ended 31 December 2025 Six months ended 31 December 2024 Year ended 30 June 2025
Revenue earnings per share 1.67p 2.01p 5.54p
Dividends per share* 3.85p 3.85p 8.35p
Ongoing charges Twelve months ended 31 December 2025 Twelve months ended 31 December 2024 Year ended 30 June 2025
Ongoing charges 0.70% 0.60% 0.64%
Capital As at 31 December 2025 As at 31 December 2024 As at 30 June 2025
Net asset value per share 785.37p 812.18p 760.96p
Share price 776.00p 794.00p 742.00p
Net cash† 1.1% 1.9% 1.3%
Discount† 1.2% 2.2% 2.5%
Source: Lazard/Morningstar
†Alternative Performance Measure.
* The interim dividend for the six months to 31 December 2025 will be paid on
27 March 2026 to shareholders on the register at the close of business on 6
March 2026.
Percentage total return
Total returns to 31 December 2025 Six months to 31 December 2025 1 year 3 years* 5 years* 10 years* Since Lazard appointment*
Net asset value per share† 3.8% (2.3)% 15.5% 18.9% 161.2% 12.2%
Share price† 5.2% (1.2)% 12.5% 14.7% 155.1% 12.6%
MSCI All Country World Index (GBP) 13.3% 13.9% 57.0% 72.7% 232.0% 44.8%
Source:Lazard/Morningstar
†Alternative Performance Measure.
* Total returns over 3, 5 and 10 years cover the period over which Artemis
Fund Managers Limited was the Company’s Investment Manager, from 1 May 2014
to 30 September 2023. Lazard were appointed as Investment Manager with effect
from 1 October 2023.
Chairman’s Statement
Dear Shareholders,
I present the interim report for the six months ended 31 December 2025.
As shareholders will read in the Investment Manager’s review, the equity
market's style shift away from Quality, which has affected our performance
almost from the point at which Lazard assumed management of the Company’s
portfolio, is continuing. Although NAV per share total return is considerably
improved on the comparable period, and indeed the whole of the year to 30 June
2025, the Company has continued to underperform its comparator index. The MSCI
All Country World Index (‘MSCI ACWI’) has benefited from the performance
of a small number of Artificial Intelligence (‘AI’) orientated shares,
most of which do not fit the Quality criteria for this Company to invest in
them. This has been exacerbated by the increasing role of passive investment
funds in the market which serve to drive momentum (and which may also
accelerate a fall of the index in future).
Investment performance
For the six months ended 31 December 2025 the Company’s share price rose by
5.2%, on a total return basis (with dividends assumed to be re-invested). This
compares to a total return from the MSCI ACWI of 13.3%. The Company’s net
asset value (‘NAV’) per share increased by 3.8% on a total return basis.
Further details on the performance of the Company during the period under
review and the composition of the portfolio are included in the Investment
Manager’s Review.
Earnings and dividend
The net return for the six months to 31 December 2025 was a gain of 29.83
pence per share, comprising a revenue gain of 1.67 pence and a capital gain of
28.16 pence. Net revenue return pence per share this period decreased by 16.9%
on the equivalent period to December 2024. The decline reflects, to a large
degree, fixed overheads being spread over a lower asset base as a consequence
of the buybacks. This has been more than compensated by the accretive benefit
of the buybacks, which is not reflected in the revenue statement.
The Board is proposing an interim dividend of 3.85 pence per share which will
be paid on 27 March 2026 to those shareholders on the register at the close of
business on 6 March 2026.
The Ongoing Charges Ratio (‘OCR’) for the period ended 31 December 2025
increased from 0.64% as at 30 June 2025 to 0.70% of average net assets. This
is predominantly due to the reduction of net assets as a result of the
effective operation of our discount control mechanism and is something that
the Board will keep under close review.
Share capital and discount management
The sustained programme of buybacks undertaken by the Company since early 2023
continued throughout the period under review. The Company’s policy, within
normal market conditions, is to issue and repurchase shares where necessary to
maintain the share price within a 2% band relative to the NAV. The Company’s
NAV is assessed on a real time basis when buying or selling the Company’s
shares using modelling that updates live prices and exchange rates to provide
the most accurate valuation.
Our buybacks have been successful in maintaining a low discount to NAV for our
share price thereby benefitting shareholders in terms of liquidity, NAV
accretion and a low level of discount volatility. As at 31 December 2025 the
share price stood at a 1.2% discount to NAV and the average discount during
the period was 2.0%. These discounts compare favourably with the weighted
average discount of the AIC’s ‘Global’ sector, of which the Company is a
member, which averaged 8.5% during the period and stood at 7.2% as at the
period end. During the six months to 31 December 2025, the Company bought back
7.51 million shares, representing 19% of the issued share capital at the start
of the period (excluding Treasury shares), at a total cost of £58.1 million
(including costs) and an average discount of 2%. The buybacks utilised
authorities granted at general meetings held on 21 May 2025, 28 August 2025
and the 2025 AGM.
All share buybacks were accretive to net asset value for existing
shareholders, enhancing the NAV total return by approximately £1.2 million,
equivalent to 108% of the Company’s operating expenses for the period.
Since the period end and up until 24 February 2026, being the latest
practicable time before the publication of this Interim Report, 2,446,000
ordinary shares were bought back at a total cost of £18,613,000 and are held
in Treasury.
The rate of buybacks continues to be such that in order to ensure the Company
has sufficient capacity to maintain the discount control mechanism until the
date of the 2026 AGM (when new allotment and buyback authorities will be
sought), a further General Meeting will be held on 27 February 2026 at which a
resolution will propose to replenish the Company’s buyback authority to
cover the period until the 2026 AGM.
Shareholder engagement and communications
At a time when an increasing number of shareholders would like to engage with
their investee companies in a wide variety of ways, the Directors have striven
to improve our shareholder communication and marketing strategies. We believe
that keeping existing shareholders fully informed and attracting new investors
are key to the Company’s long term health. Details of how the Board
approaches this are available on page 42 of the Annual Financial Report to 30
June 2025.
If you have not already done so we would encourage you to sign up for updates
using the QR code at the back of this Interim Report. The Board is always keen
to hear from shareholders and, should you wish, you can contact me through
Juniper Partners Limited, the Company Secretary, at cosec@junipartners.com.
Outlook
The Board’s view remains that which was expressed in last year’s Annual
Report. Whilst our portfolio companies have suffered from the style shift away
from quality companies, such shifts in sentiment do not generally last for
long periods. The Investment Manager’s approach is designed to generate good
returns for shareholders over the long term, and the Board is pleased that the
Investment Manager has maintained its investment style and focus. The
Investment Manager’s review notes that around half of the Company’s
investments were trading at the period end in the bottom half of their PE
range in the last 10 years, notwithstanding healthy underlying growth. This
confirms the Board’s views that the Company’s
investments are currently being held at remarkably attractive valuations, and
the Board is optimistic that the coming year will bring a significant
improvement in both absolute and relative performance.
The Board respects and is grateful for the considerable patience shown by
shareholders.
David Kidd
Chairman
26 February 2026
Investment Manager’s Review
Market summary
Global equity markets rose sharply over the six months, supported by strong
demand for AI, solid corporate earnings and a generally improving interest
rate outlook. AI enthusiasm drove a substantial portion of the market return:
eight of the top ten contributors to the MSCI ACWI were AI leveraged
technology stocks, collectively accounting for 49% of the index’s return.
However, the rally entered a more cautious phase in the fourth quarter as
investors questioned the sustainability of elevated AI capital expenditure.
Nvidia, for example, underperformed the MSCI ACWI by 3% in the fourth quarter,
and only two of the “Magnificent 7” outperformed the MSCI ACWI over the
full year. We believe that the elevated volatility and growing investor
scepticism of AI spending levels are a positive sign that the market is
returning its focus to fundamentals. In our view, such a normalisation could
be auspicious for the types of Quality companies in which we invest, as we
expect companies’ stock performance should be more reflective of the level
and sustainability of their financial returns.
In addition to benefitting from many AI-exposed companies, the US market was
also buoyed by three consecutive Federal Reserve interest rate cuts, even as
internal debates continued around the future path of policy. Investors also
cheered consecutive stronger than expected quarters of economic growth, capped
by a delayed release of third quarter GDP data that underscored resilient
consumer spending. Trade related uncertainty eased modestly as the US reached
agreements with Japan and the EU and extended its truce with China, though
geopolitical conditions remain fluid.
In Europe, equities delivered solid earnings-driven gains but lagged the
global index due to the region’s lower exposure to AI leveraged companies.
The European Central Bank kept interest rates unchanged amid improving
economic and inflation dynamics in the eurozone, while central banks in the
UK, Sweden and Norway each cut rates.
Across Asia, Japanese equities outperformed the broader index amid renewed
optimism around growth and corporate profitability. The Bank of Japan raised
rates by 25 basis points (bps) to address inflation and signalled the
potential for further tightening. In China, equities rallied as domestic
investors sought higher-return opportunities during ongoing real estate
weakness and declining deposit rates. Combined with resilient export growth,
this backdrop supported the Chinese central bank’s decision to keep policy
rates unchanged.
Overview and outlook
During the second half of 2025, the Company saw increases in both its share
price and NAV of 5.2% and 3.8% respectively. This is compared to a market
return of 13.3% over the period, as measured by the MSCI ACWI in GBP terms.
The Company ended the period with the share price trading at 1.2% below the
NAV (“at a discount”), compared with an average discount of 7.2% amongst
its AIC Global Sector peer group.
Since becoming responsible for the management of the Company’s investments
in October 2023, we have underperformed its comparator index, the MSCI ACWI,
by approximately 12.7% in terms of annualised NAV performance. We recognise
that this outcome is disappointing for shareholders, and we do not seek to
downplay that reality. Although clear factors explain much of the recent
performance, this does not diminish its impact.
Market conditions during our tenure have been highly unusual. A narrow cohort
of large cap stocks has driven returns, leading to historically narrow market
breadth and significant style dispersion. Such periods naturally raise
questions about the resilience of established investment approaches. Having
invested through multiple market cycles, we see parallels with the late 1990s
– an era characterised by concentrated leadership and elevated valuations.
These moments of inflection can feel like a “new
normal”, but historical investment disciplines tend to eventually prevail.
As we look ahead to 2026, we have revisited the principles underlying our
investment philosophy. Our focus remains on high quality companies with
durable competitive advantages, strong balance sheets and the ability to
generate and compound free cash flow over time. Based on these criteria, our
conviction across our holdings has strengthened. The majority of our companies
continue to demonstrate strong financial productivity and defensible
competitive positions. Over time, we believe share prices are likely to
reflect these fundamentals.
Reasons for optimism
Periods such as the one we have experienced are uncomfortable but can often be
constructive for long-term investors. They reinforce discipline, sharpen
process and frequently sow the seeds of future outperformance. Around half of
our holdings are trading in the bottom half of their PE range over the past 10
years – in stark contrast to the progress of their underlying earnings
power.
As we enter 2026, we believe the portfolio is well positioned for a more
normalised market environment and we remain optimistic about the long term
prospects for shareholders.
Encouragingly, we have seen early signs of improvement beneath the surface of
global markets in recent months. Market breadth has begun to recover, and for
the first time in years developed markets outside the US have outperformed.
We believe these developments could create a more favourable backdrop for
global, benchmark-agnostic strategies such as ours. In
our view, they are particularly supportive for Mid Wynd, as our portfolio is
constructed not by mirroring the largest index constituents but by identifying
businesses with enduring advantages.
This is illustrated by our exposure to the growing semiconductor market. Yes,
we have long-standing positions in popular chip manufacturer TSMC and in ASML,
which manufactures photolithography machines critical for printing circuits on
to silicon wafers in microchips. But we also hold less well-known
beneficiaries, like VAT Group, which makes high-performance vacuum valves and
other components essential to the manufacturing of semiconductors. These
companies operate with near monopolistic characteristics that are central to
our investment approach: technological leadership, high barriers to entry and
strong cash generation. And they are, in our opinion, undervalued by the
market.
Beyond this, we have a well-diversified portfolio of attractively valued
companies that continue to generate strong profits, underpinning our
confidence in Mid Wynd’s long-term prospects. Below we highlight just three.
High-quality compounders
Visa is a long-standing holding and, in our view, a
classic example of a high-quality Compounder. It continues to deliver
top-decile cash returns and reinvest free cash flows at rates we consider
attractive. Market concerns about the shift from cash to digital payments or
the potential rise of stablecoins underestimate the strength and resilience of
Visa’s network effects, in our view. Transaction volumes and earnings per
share continue to grow at low double digit rates, and we believe the recent
share-price derating presents an attractive opportunity to own a duopoly style
business at what we consider a favourable valuation.
EssilorLuxottica is another high-quality industry leader.
Following the merger of lens maker Essilor and frame specialist Luxottica in
2018, it has built an unrivalled global position across the optical value
chain, designing, manufacturing and selling lenses and eyewear, supported by
iconic brands such as Ray-Ban and Oakley. Organic growth accelerated from 8%
to 12% in the fourth quarter, driven entirely by smart glasses adoption. With
R&D investment nearly four times that of its closest competitor, the company
has significant sources of income generation – from smart glasses (via its
Meta partnership) to myopia management and early stage hearing solutions. Our
investment philosophy (outlined below) targets companies with these sorts of
competitive advantage and our “beat the fade” valuation framework suggests
that these shares may be undervalued.
$50 billion biotech company Argenx
represents a compelling opportunity in biotechnology, an industry that has
materially underperformed the broader market in recent years (Exhibit 4) but
which is showing early signs of recovery. Our recent investment in Argenx,
with its leading autoimmune therapy (Vygart), reflects this opportunity. The
company is approaching an important inflection point, with increasing cash
generation, a growing portfolio of differentiated therapies and the potential
to evolve into a much larger company.
Six-month performance recap
As mentioned, despite signs of a potential regime shift, AI was a material
performance driver in the second half of 2025, with market-perceived AI
winners 1 gaining 23.0% and perceived AI losers falling
14.1%. The portfolio’s positioning relative to this “AI winners” trade
hurt performance, with 73% of our relative underperformance attributable to
our active weights within perceived AI-winner/loser industries. Our 300-bps
average underweight to perceived AI winners throughout the period reflects our
concern that many of these companies (and/or the businesses that they sell to)
may never generate a return on recent, outsized investment in AI, and we are
encouraged that market participants have begun to share these worries.
Conversely, our 780-bps average overweight exposure to perceived AI losers
reflects our view that the market is underestimating our holdings’
competitive advantages in proprietary data, distribution, customer trust and
regulatory positioning. We believe these strengths will allow them to succeed
even if AI proliferates broadly.
A look at the top contributors and detractors for the period reflects the
influence of the “AI winners” trade.
What helped
Five principal contributors
Company Contribution to Total Return (%)
Taiwan Semiconductor Manufacturing (‘TSMC’) 1.76
Apple 1.65
Amphenol 1.23
IQVIA 0.87
Thermo Fisher Scientific 0.85
Source: Lazard/FactSet. Data in GBP and for the period from 1 July 2025 to 31
December 2025.
TSMC , the only scaled, leading edge semi foundry and a
critical enabler of AI (given that nearly all accelerated computer chips are
manufactured on its processes), rose in value after reporting strong earnings,
driven by robust AI and high performance computing demand. The company
reported record foundry orders, which reinforced TSMC’s leadership in
advanced nodes. We have owned the company since 2014, recognising its durable
competitive advantages in scale, leading edge process development and
consistent execution. This combination supports a self-reinforcing cycle in
which technology leadership drives market share gains; expanding scale
enhances cost competitiveness and cash generation; and those cash flows are
reinvested to sustain continued semiconductor process innovation.
Apple , the world’s leading smartphone vendor, rose after
the company reported solid results, driven by strong gross margin performance
despite tariff headwinds. The company also unveiled its latest line of iPhones
during the period and cited strong iPhone replacement demand. We expect Apple
to sustain high levels of financial productivity and cash flow through
continued growth of the Apple ecosystem, an increasing mix of services revenue
streams and optionality around new platforms and replacement cycles driven by
AI advances.
Diversified electrical connector and sensor maker
Amphenol gained after reporting strong earnings, resulting
from robust growth in AI data centre sales. We like the company due to its
ability to provide a critical component at a low cost, a competitive advantage
that helps it maintain favourable pricing. Additionally, we are attracted to
its low-capital-intensity, high-cash-generation, disciplined approach to
acquisitions in fragmented markets and advantageous positioning in AI data
centres.
IQVIA , a contract research organisation (‘CRO’)
serving the pharmaceutical, biotech, and medical device industries, rose in
value after reporting better-than-expected results that highlighted
strengthening business momentum. We see continued improvement in CRO market
fundamentals following the industry trough reached a year ago, with growth in
request for proposals (‘RFPs’), bookings, and biotech funding all trending
positively. We continue to like IQVIA’s strong financial productivity,
driven by solid revenue growth, consistent margin expansion, disciplined
capital deployment, and a capital-light business model.
The share price of Life science company Thermo Fisher
Scientific responded positively after management reported
better-than-expected earnings across all their major business segments. In our
opinion, we believe the company’s strategic expansion efforts and broad
global footprint position it well to capture future growth opportunities.
Thermo Fisher’s integrated portfolio of research products and development
services provides a differentiated, end-to-end offering for customers. The
company benefits from attractive secular growth drivers, strong financial
characteristics, and leading positions across highly fragmented end markets.
What hurt
Five principal detractors
Company Contribution to Total Return (%)
Verisk Analytics (0.79)
Wolters Kluwer (0.75)
SPS Commerce (0.75)
RELX (0.72)
Zoetis (0.35)
Source: Lazard/FactSet. Data in GBP and for the period from 1 July 2025 to 31
December 2025.
Verisk , a provider of predictive analytics and data
solutions for the insurance industry, declined as investors focused on slowing
organic growth and perceived AI-related risks. Over the period, the market
became more nervous broadly about AI risks within the information services
industry following research and advisory firm Gartner’s slowdown and stock
pullback. While there are aspects of Verisk’s insurance policy language and
extreme event risk management businesses that AI could disrupt, we think
regulatory compliance, historical trust and Verisk’s broader proprietary
contributory data ecosystem provide significant barriers for alternative
competition. We continue to like this best-in-class company due to its
data-driven business model with high barriers to competition and recurring
revenue.
Information service providers RELX
and Wolters Kluwer also hurt
performance, despite generating solid earnings growth. Their pullback was tied
to investor concerns that AI could disintermediate data-analytic companies and
commoditise their content. Global data and analytics businesses have seen
their P/E premiums drop materially. In a reflection of a theme we have
observed across many Quality stocks, this derating has come despite no change
in the earnings trajectory of most of these businesses. In fact, some names,
including RELX, have even seen an acceleration in earnings growth. We have
evaluated the industry to distinguish between businesses facing higher risks
from AI-related disruption and those more contained, and where AI may create
additional product opportunities. Our analysis has focused on three
dimensions:
* Ownership of proprietary data – unique, non-substitutable
datasets that generic models cannot easily replicate.
* Speed and willingness to innovate – particularly the
integration of new technologies into existing products.
* The importance of accuracy and trusted suppliers – especially
in use cases requiring highly reliable information.
We believe companies with distinctive content and the ability to innovate
quickly should be advantaged due to their already strong customer
relationships, allowing for an easier up-sell for high-quality, trusted
insights enhanced with AI. Historically, information service providers have
been able to price new value-added content at a premium, and we believe AI
will be no different. For example, RELX has already introduced AI-enabled
legal products at roughly a 20% price premium relative to earlier offerings,
and we have seen growth accelerate in RELX’s legal business from ~2% to now
9% organic as a result of the shift towards AI and analytics. The significant
valuation compression seen in 2025 stands in contrast to the operational
performance and competitive positioning of RELX and Wolters Kluwer and is
unjustified, in our view. We believe the market will recognise that the
differentiated datasets and strong vertical market positions of these
companies not only provide meaningful insulation from AI disruption but also
offer several attractive opportunities to leverage AI within their existing
product ecosystems.
SPS Commerce , a leader in supply-chain software for
retailers, suppliers and logistics providers, reported disappointing results
and guidance below expectations, driven by headwinds with recent acquisitions.
SPS’s software enables automation of the historically manual flow of
critical documents such as purchase orders, invoices and shipping notices
between parties. Increased complexity in omnichannel retail and fragmentation
of suppliers should drive more demand for SPS’s products, in addition to
increasing data flow along its network (revenue has a volume component). We
believe the stock is undervalued as investors are conflating a cyclical
slowdown with a structural one and underappreciate adjacent opportunities to
monetise the network.
The share price of Animal-health company Zoetis
declined after the management reported quarterly earnings below
expectations and reduced full year revenue guidance, reflecting softer demand
in key therapeutic areas. Despite these challenges, management reiterated
confidence in the long-term outlook, pointing to early signs of stabilisation
in Librela (osteoarthritis) and strong livestock growth that helped offset
weakness in companion animal products. Upcoming catalysts—including longer
acting osteoarthritis and dermatology treatments and a robust pipeline of 12
potential blockbuster candidates—also support the outlook. Zoetis remains
highly financially productive, with meaningful competitive advantages such as
a diversified portfolio, strong innovation track record, and an estimated
$5 billion expansion opportunity in chronic disease companion animal
markets. The company is still expected to grow ahead of its end markets over
the mid-to-longer term, with potential for further margin expansion.
Investment philosophy
Our investment philosophy is based on the belief that great companies can also
make great investments. In other words, we believe companies that can sustain
the highest levels of financial productivity tend to outperform the market.
We think the market undervalues these companies because of its adherence to
the economic law of competition. This theory prescribes that high returns on
capital attract competition, which results in an erosion of these returns
towards a cost of capital. However, we think plenty of real-world examples
show this theory does not work. We are convinced that companies that beat the
market-implied fade of returns also beat the market.
In addition to high financial productivity, we are also looking for companies
that have the opportunity and appetite to reinvest in their business to grow
(but only if at similarly high levels of financial productivity). This
combination of high financial productivity and growth produces a compounding
effect on cash flow and earnings, which we believe is particularly valuable.
These types of exceptional businesses are often inefficiently valued by market
participants, who may be more focused on near-term multiples than the
longer-term earnings power of the company.
Putting this together, we seek to invest in companies that we believe can
generate sustainably high financial productivity, those that can reinvest for
growth and those for which the market is pricing in a fade in returns faster
or sooner than we expect.
This investment philosophy is supported by our long-term study of global
financial markets, “Relative Value Investing” and its update “Quality
Investing” covering nearly 30 years. 2
Engagement highlights
Argenx
Immune Biotech
Dialogue over time strengthens shareholder trust
As long-term shareholders, we aim to foster strong company relationships that
deliver insightful open dialogues. A good example of this over the last year
was our engagement with Argenx, a global immunology biotech company that
develops and commercialises antibody-based therapies for severe autoimmune
diseases. Since November 2024 we have met with members of Argenx’s C-suite,
board, remuneration specialist, and investor relations nine times. After
initiating the position, we engaged to address Argenx’s long standing issues
regarding its Remuneration Policy and Report, which received significant
shareholder dissent in 2024. Following extensive analysis and engagement with
the board in the build-up to the AGM, Lazard decided to vote FOR the policy on
the basis that:
1. Significant progress had been made to conform with
market best practice and align compensation with long-term shareholder value
creation.
2. Pay was appropriately aligned with performance given
the share price had increased ~50% since IPO.
Although the Remuneration Policy did not receive approval at the 2025 AGM,
securing 73% support versus the required 75% majority, it has since passed at
the 2025 EGM. Following further dialogue with the company, Lazard remained
supportive of the policy and voted FOR. Additional changes to the policy
included enhanced performance metrics, clearer peer group definitions, and the
removal of future CEO vs. current CEO pay limit distinctions. Whilst we did
not believe that these additional changes were necessary for the Remuneration
Policy to pass, we commend the company for further striving to align with
market expectations. We were also impressed by its tenacity towards driving
its broader shareholder and proxy advisory engagement programme.
Throughout 2025, Lazard has built a strong partnership with the company,
offering valuable investor insights. This open dialogue fostered greater trust
in Argenx’s governance, which we believe will further strengthen company and
shareholder alignment.
Hexagon
Industrial Measurement Technology
Escalating governance concerns to drive improved shareholder outcomes
Another recent example has been our engagement with Hexagon. It is a global
leader in metrology, making advanced sensors and software that help industries
like manufacturing and construction become safer, more efficient, and
automated. Since the beginning of 2022, we have met with members of
Hexagon’s C-suite, board, investor relations, and sustainability team 35
times. Over this period, we identified governance concerns related to board
independence, reporting transparency, and ESG metrics in executive
compensation, which we expressed during engagements. Slow progress in
addressing our concerns meant that we employed our escalation framework:
raising our concerns first to members of the board and then also by voting
against certain board members. We are pleased with the progress that Hexagon
has made over the past two years in addressing the business risks we
raised—which were reflected in our votes at the 2024 annual general meeting.
Given our extensive engagement with the company in the past, management was
keen to hear our views on qualities we would like to see in the new CEO when
it was announced in November 2024 that the current CEO would be stepping down.
We took this opportunity to suggest a potential candidate in addition to
providing feedback on qualities. We welcome Hexagon’s decision to take our
recommendations into account, selecting Anders Svensson as CEO, whose
attributes align closely with our expectations.
Over the course of 2025, we have continued to engage with the company, digging
into topics including the new Vice Chairman’s management philosophy and the
sustainability benefits of metrology within industries such as construction
and agriculture.
Exposures by sector and region
In line with our investment process, our sectoral and regional exposures are
driven by stock selection. Changes in exposure from 30 June 2025 resulted from
market movements and the following purchases and sales, rather than any
decision on sector and/or country views.
* Purchases: Argenx (Health Care), Boston Scientific (Health Care),
Palo Alto Networks (Information Technology), SPS Commerce (Information
Technology)
* Sales: Adobe (Information Technology), Nordson (Industrials),
Rockwell Automation (Industrials)
Sector exposure rose in Health Care, Information Technology, and
Communications Services and fell in Industrials, Financials, Consumer Staples
and Consumer Discretionary. Typically, the strategy has zero weight in Real
Estate, Energy, Materials and Utilities, as companies in these sectors tend
not to generate sufficient returns on capital to be considered of high
quality.
Louis Florentin-Lee & Barnaby Wilson
Fund Managers
26 February 2026
1 The “AI Winners and Losers” baskets are composites of tradeable baskets
created by third-party sell-side firms, including Goldman Sachs, Morgan
Stanley, Bank of America and UBS. It is not a Lazard product, index, benchmark
or recommendation. It is included solely to illustrate market trends and
performance attribution for the period. The basket represents groups of
securities that certain market participants, including the third-party
providers, perceive as likely beneficiaries (“winners”) or adversely
impacted (“losers”) by developments in artificial intelligence.
“Winners” are generally companies investing in or enabling AI
infrastructure and hardware, while “losers” are often in software, data
services or consulting, where investors fear AI could commoditise offerings or
disrupt existing business models. The composition and methodology of the
basket are determined entirely by the third-party providers, may change
without notice and may not reflect Lazard’s views.
2 All data measured from 1996 to 2022.
Interim Management Report and Responsibility Statement
Principal risks and uncertainties
Pursuant to DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, the
principal risks and uncertainties faced by the Company include strategic risk,
market risks, legal and regulatory risk and operational risks including
reliance on third-party service providers and reliance on key personnel.
The Directors have assessed these risks and are of the opinion the nature of
the risks and the way in which they are managed have not materially changed
from the description provided on pages 26 to 29 of the previous Annual
Financial Report for the year ended 30 June 2025 which is available at
midwynd.com. These risks remain applicable to the six months under review and
the remaining six months in the financial year.
Related party transactions
During the six months ended 31 December 2025, no transactions with related
parties have taken place which have materially impacted the Company.
Going concern
The Directors have considered the Company’s principal risks and
uncertainties together with its current financial position, the liquid nature
of its investments, assets and liabilities, projected revenue and expenses and
the Company’s dividend policy and share buyback programme. It is the
Directors’ opinion that the Company has adequate resources to continue in
operational existence for the foreseeable future, a period of at least 12
months from the approval of this Half-Yearly Financial Report. For this
reason, the going concern basis of accounting continues to be used in the
preparation of these financial statements.
Responsibility statement of the Directors in respect of the half-yearly
financial report
The Directors confirm that to the best of their knowledge, in respect of the
Half-Yearly Financial Report for the six months ended 31 December 2025:
* the condensed set of financial statements has been prepared in
accordance with Financial Reporting Standard (‘FRS’) 104: ‘Interim
Financial Reporting’;
* the Half-Yearly Financial 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 the important events that have
occurred during the first six months of the financial year and their impact on
the 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 entity during that
period, and any changes in the related party transactions described in the
last Annual Financial Report that could do so.
The Half-Yearly Financial Report for the six months ended 31 December 2025 was
approved by the Board and the above Responsibility Statement has been signed
on its behalf by:
David Kidd
Chairman
26 February 2026
Condensed Statement of Comprehensive Income
For the six months ended 31 December 2025 (unaudited) For the six months ended 31 December 2024 (unaudited) For the year ended 30 June 2025 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Gains/(losses) on investments held at fair value through profit or loss - 10,770 10,770 - 2,215 2,215 - (20,732) (20,732)
Currency gains/(losses) - 12 12 - (41) (41) - (69) (69)
Income 1,182 - 1,182 1,535 - 1,535 3,763 - 3,763
Investment management fee (67) (599) (666) (81) (732) (813) (147) (1,327) (1,474)
Other expenses (346) (136) (482) (312) (126) (438) (619) (257) (876)
Net return/(loss) before finance costs and taxation 769 10,047 10,816 1,142 1,316 2,458 2,997 (22,385) (19,388)
Finance costs of borrowings - - - - - - - - -
Net return/(loss) on ordinary activities before taxation 769 10,047 10,816 1,142 1,316 2,458 2,997 (22,385) (19,388)
Taxation on ordinary activities (173) - (173) (187) - (187) (478) 71 (407)
Net return/(loss) on ordinary activities after taxation 596 10,047 10,643 955 1,316 2,271 2,519 (22,314) (19,795)
Net return/(loss) per ordinary share 2 1.67p 28.16p 29.83p 2.01p 2.76p 4.77p 5.54p (49.08)p (43.54)p
The total column of this statement is the profit and loss account of the Company.
All revenue and capital items in this statement derive from continuing operations. No operations were acquired or discontinued during the period.
The net return for the period disclosed above represents the Company’s total comprehensive income.
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Financial Position
Note As at 31 December 2025 (unaudited) As at 31 December 2024 (unaudited) As at 30 June 2025 (audited)
£’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 4 255,858 363,729 303,478
Current assets
Debtors 744 605 660
Cash and cash equivalents 6 2,712 7,192 4,068
3,456 7,797 4,728
Creditors
Amounts falling due within one year (900) (776) (705)
Net current assets 2,556 7,021 4,023
Total net assets 258,414 370,750 307,501
Capital and reserves
Share capital 7 3,320 3,320 3,320
Capital redemption reserve 16 16 16
Share premium - 242,115 242,115
Special reserve 220,171 - -
Capital reserve 31,068 120,334 57,234
Revenue reserve 3,839 4,965 4,816
Shareholders’ funds 258,414 370,750 307,501
Net asset value per ordinary share 8 785.37p 812.18p 760.96p
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Changes in Equity
For the six months ended 31 December 2025 (unaudited)
Note Share capital Capital redemption reserve Share premium Special reserve 2 Capital reserve 1,2 Revenue reserve 2 Shareholders’ funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Shareholders’ funds at 1 July 2025 3,320 16 242,115 - 57,234 4,816 307,501
Net return on ordinary activities after taxation - - - - 10,047 596 10,643
Cancellation of share premium* - - (242,115) 242,115 - - -
Costs of reclassification of share premium - - - (78) - - (78)
Repurchase of shares into Treasury 7 - - - (21,866) (36,213) - (58,079)
Dividends paid - - - - - (1,573) (1,573)
Shareholders’ funds at 31 December 2025 3,320 16 - 220,171 31,068 3,839 258,414
For the six months ended 31 December 2024 (unaudited)
Note Share capital Capital redemption reserve Share premium Special reserve 2 Capital reserve 1,2 Revenue reserve 2 Shareholders’ funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Shareholders’ funds at 1 July 2024 3,320 16 242,115 - 152,673 5,970 404,094
Net return on ordinary activities after taxation - - - - 1,316 955 2,271
Repurchase of shares into Treasury 7 - - - - (33,655) - (33,655)
Dividends paid - - - - - (1,960) (1,960)
Shareholders’ funds at 31 December 2024 3,320 16 242,115 - 120,334 4,965 370,750
For the year ended 30 June 2025 (audited)
Note Share capital Capital redemption reserve Share premium Special reserve 2 Capital reserve 1,2 Revenue reserve 2 Shareholders’ funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 July 2024 3,320 16 242,115 - 152,673 5,970 404,094
Net loss on ordinary activities after taxation - - - - (22,314) 2,519 (19,795)
Repurchase of shares into Treasury 7 - - - - (73,125) - (73,125)
Dividends paid - - - - - (3,673) (3,673)
Shareholders’ funds at 30 June 2025 3,320 16 242,115 - 57,234 4,816 307,501
1 Capital reserve as at 31 December 2025 includes realised losses of £15,996,000 (31 December 2024 realised gains: £69,481,000; 30 June 2025 realised gains: £33,046,000).
2 The Company may pay dividends from both capital and revenue reserves.
* During the period, the reduction of the Company’s share premium account to create additional capital reserves which could be used for share buybacks (approved by shareholders at the May 2025 general meeting) received court approval. Accordingly, £242m of share premium was transferred to a special capital reserve.
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Cash Flows
Note For the six months ended 31 December 2025 (unaudited) For the six months ended 31 December 2024 (unaudited) For the year ended 30 June 2025 (unaudited)
£’000 £’000 £’000
Net cash outflow from operations before dividends and interest 5 (1,223) (1,630) (3,193)
Dividends received from investments 1,173 1,529 3,748
Interest received 9 6 21
Net cash (outflow)/inflow from operating activities (41) (95) 576
Cash flow from investing activities
Purchase of investments (26,477) (46,083) (68,655)
Sale of investments 84,743 83,687 143,623
Realised currency losses (7) (38) (65)
Net cash generated from investing activities 58,259 37,566 74,903
Cash flow from financing activities
Repurchase of shares into Treasury 7 (57,945) (34,058) (73,474)
Legal costs for cancellation of share premium (78) - -
Dividends paid (1,573) (1,960) (3,673)
Net cash outflow from financing activities (59,596) (36,018) (77,147)
Net (decrease)/increase in cash and cash equivalents (1,378) 1,453 (1,668)
Cash and cash equivalents at start of the period 4,068 5,742 5,742
(Decrease)/increase in cash in the period (1,378) 1,453 (1,668)
Currency gains/(losses) on cash and cash equivalents 22 (3) (6)
Cash and cash equivalents at end of the period 6 2,712 7,192 4,068
The accompanying notes are an integral part of the financial statements.
Notes to the Half-Yearly Financial Report
1.(a) Accounting policies
The unaudited condensed financial statements for the six months to 31 December 2025 comprise the statements set out in the Interim Report together with the related notes. The financial statements have been prepared in accordance with the Company’s accounting policies as set out in the Annual Financial Report for the year ended 30 June 2025 and are presented in accordance with the Companies Act 2006 (the ‘Act’), FRS 104 and the requirements of the Statement of Recommended Practice ‘Financial Statements of
Investment Trust Companies and Venture Capital Trusts’ (‘SORP’) issued by the Association of Investment Companies (‘AIC’) in July 2022. The financial information contained within this Half-yearly Financial Report does not constitute statutory accounts as defined in sections 434 to 436 of the Act. The financial information for the year ended 30 June 2025 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditors’ report on those accounts was not
qualified and did not contain statements under sections 498(2) or (3) of the Act. The unaudited condensed financial statements for the six months ended 31 December 2025 have been prepared on a going concern basis.
1.(b) Expenses
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue reserve except where they relate directly to the acquisition or disposal of an investment, in which case they are added to the cost of the investment or deducted from the sale proceeds, and where they are connected with the maintenance or the enhancement of the value of investments are charged to the capital reserve. The management fees, company secretarial and administration fees, the cost of operating the
discount control mechanism and finance costs are allocated 90% to capital and 10% to revenue.
2. Return per share
Return per share has been calculated based on the weighted average number of ordinary shares in issue for the six months ended 31 December 2025 being 35,682,488 (six months ended 31 December 2024: 47,602,419 and year ended 30 June 2025: 45,463,998).
3. Dividends
An interim dividend for the six months ended 31 December 2025 of 3.85 pence per ordinary share (six months ended 31 December 2024: 3.85 pence) has been declared. This dividend will be paid on 27 March 2026 to those shareholders on the register at close of business on 6 March 2026.
4. Fair value hierarchy
All investments are designated at fair value through profit or loss on initial recognition in accordance with FRS 102. The following table provides an analysis of these investments based on the fair value hierarchy as described below which reflects the reliability and significance of the information used to measure their fair value. The disclosure is split into the following categories: Level 1 – Investments with unadjusted quoted prices in an active market; Level 2 – Investments whose fair value is
based on inputs other than quoted prices that are either directly or indirectly observable; Level 3 – Investments whose fair value is based on inputs that are unobservable (i.e. for which market data is unavailable).
31 December 2025 31 December 2024 30 June 2025
£’000 £’000 £’000
(unaudited) (unaudited) (audited)
Level 1 255,858 363,729 303,478
Total value of investments 255,858 363,729 303,478
5. Reconciliation of net return before finance costs and taxation to cash from operations
For the six months ended 31 December 2025 For the six months ended 31 December 2024 For the year ended 30 June 2025
£’000 £’000 £’000
(unaudited) (unaudited) (audited)
Net return/(loss) before finance costs and taxation 10,816 2,458 (19,388)
(Gains)/losses on investments (10,770) (2,215) 20,732
Currency (gains)/losses (12) 41 69
Decrease in accrued income and other debtors 37 207 94
Dividend income (1,173) (1,529) (3,748)
Interest received (9) (6) (21)
Increase/(decrease) in creditors 61 (399) (524)
Overseas tax suffered (173) (187) (407)
Net cash outflow from operations before interest and dividends (1,223) (1,630) (3,193)
6. Analysis of changes in net cash
At 30 June 2025 Cashflow Exchange movements At 31 December 2025
£’000 £’000 £’000 £’000
(audited) (unaudited) (unaudited) (unaudited)
Cash and cash equivalents 4,068 (1,378) 22 2,712
Total 4,068 (1,378) 22 2,712
7. Share capital
In the six months ended 31 December 2025, 7,506,000 ordinary shares were purchased into Treasury at a total cost of £58,079,000 (six months ended 31 December 2024: 4,225,500 ordinary shares at a total cost of £33,655,000 and year ended 30 June 2025: 9,465,000 ordinary shares at a total cost of £73,125,000). In the six months ended 31 December 2025, no ordinary shares were sold from Treasury (six months ended 31 December 2024 and year ended 30 June 2025: no ordinary shares were sold from Treasury). In
the six months ended 31 December 2025, no new ordinary shares were allotted (six months ended 31 December 2024 and year ended 30 June 2025: no new ordinary shares were allotted). As at 31 December 2025, 33,477,758 ordinary shares were held in Treasury (31 December 2024: 20,732,258; 30 June 2025: 25,971,758).
8. Net asset value per ordinary share
The calculation of the net asset value per ordinary share is based on the following:
31 December 2025 31 December 2024 30 June 2025
(unaudited) (unaudited) (audited)
Shareholders’ funds (£’000) 258,414 370,750 307,501
Number of ordinary shares in issue at period end 32,903,356 45,648,856 40,409,356
Net asset value per ordinary share 785.37p 812.18p 760.96p
9. Related party transactions
The Directors are considered to be related parties. No Director has an interest in any transactions which are, or were, unusual in their nature or significant to the nature of the Company. The Directors receive fees for their services. During the six months ended 31 December 2025, £87,500 was paid to Directors (six months ended 31 December 2024: £85,000 and year ended 30 June 2025: £170,000) of which £nil was outstanding at the period end (31 December 2024: outstanding £nil; 30 June 2025: outstanding
£nil).
10. Transactions with the Investment Manager
The investment management fees payable to Lazard are disclosed in the Statement of Comprehensive Income. The amount outstanding at 31 December 2025 was £251,000 (31 December 2024: £364,000 and 30 June 2025: £296,000). The existence of an independent Board of Directors demonstrates that the Company is free to pursue its own financial and operating policies and therefore the Investment Manager is not considered to be a related party.
11. Post Balance Sheet Events
Following the period end and up to 24 February 2026, 2,446,000 ordinary shares were bought back to be held in Treasury, at a total cost of £18,613,000.
12. Status of this report
These are not full statutory accounts for the purposes of Section 434 of the Companies Act 2006 and are unaudited. Statutory accounts for the year ended 30 June 2025, which received an unqualified audit report and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies. No full statutory accounts in respect of any period after 30 June 2025 have been reported on by the Company’s auditors or delivered to the Registrar of Companies. A
copy of the Half-Yearly Financial Report will be sent to shareholders and is available on the Company’s website at midwynd.com (http://www.midwynd.com) . Shareholders are encouraged to visit the website for further information on the Company. For further information please contact: Juniper Partners Limited Company Secretary email: cosec@junipartners.com
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