REG-New Star Investment Trust PLC Annual Financial Report
31/10/2025 17:30
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New Star Investment Trust PLC (NSI)
Annual Financial Report
31-Oct-2025 / 17:20 GMT/BST
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NEW STAR INVESTMENT TRUST PLC
This announcement constitutes regulated information.
UNAUDITED RESULTS
FOR THE YEAR ENDED 30TH JUNE 2025
New Star Investment Trust plc (the ‘Company’), whose current objective is to
achieve total return through capital growth and income, announces its results for
the year ended 30th June 2025.
FINANCIAL HIGHLIGHTS
30th June 30th June %
2025 2024 Change
PERFORMANCE
Net assets (£ ‘000) 121,140* 137,861 (12.13)
Net asset value per Ordinary share 170.56p* 194.11p (12.13)
Mid-market price per Ordinary share 110.00p* 131.50p (16.35)
Discount of price to net asset value 35.5% 32.3% n/a
Total Return** 2.08% 11.69% n/a
IA Mixed Investment 40% - 85% Shares (total return) 5.57% 11.80% n/a
MSCI AC World Index (total return, sterling adjusted) 7.64% 20.61% n/a
MSCI UK Index (total return) 11.03% 13.16% n/a
1st July 2024 to 1st July 2023 to
30th June 2025 30th June 2024
Revenue return per Ordinary share 4,25p 4.05p
Capital return per Ordinary share (0.21)p 16.62p
Return per Ordinary share 4.04p 20.67p
TOTAL RETURN** 2.08% 11.69%
DIVIDEND PER ORDINARY SHARE
Interim paid April 2025 1.70p 1.70p
Proposed final dividend 1.85p 1.70p
3.55p 3.40p
B Share Redemption 24.00p _____-
RECEIVABLE BY SHAREHOLDERS 27.55p 3.40p
*After return of capital (B Shares)
** The total return figure for the Company represents the revenue and capital
return shown in the Statement of Comprehensive Income before dividends paid, the
B Share redemption payment and after deducting B Share issue costs, as a
percentage of opening net assets. The total return performance basis is the
industry standard and is considered a more appropriate measure than just the
revenue return. This is an alternative performance measure.
CHAIRMAN’S STATEMENT
PERFORMANCE
Your Company’s generated a total return of 2.08% over the year to 30th June 2025,
leaving the net asset value (NAV) per ordinary share at 170.56p. By comparison,
the Investment Association’s Mixed Investment 40-85% Shares Index gained 5.57%.
The MSCI AC World Total Return Index gained 7.64% in sterling while the MSCI UK
All Cap Total Return Index rose 11.03%. Over the year, UK government bonds
returned 1.42%. Further information is provided in the investment manager’s
report.
Your Company made a revenue profit for the year of £3.02 million (2024: £2.88
million).
RETURN OF CAPITAL
Following an extraordinary general meeting in July 2024, £17 million was returned
to shareholders in August by way of a “B” share issue and a subsequent redemption
of the shares at a price of 24p per B share. Following the scheme, your Company’s
total issued share capital and voting rights were unchanged. The scheme involved
reducing your Company’s holdings across the board with a view broadly to
maintaining in percentage terms the asset allocation, including the allocation to
cash. As a result, the portfolio’s risk profile was broadly unchanged.
CHANGE OF INVESTMENT OBJECTIVE
At the annual meeting on 5th December, shareholders approved the proposal by your
Board to change the investment objective from long-term capital growth to
long-term total return through capital growth and income.
GEARINGS AND DIVIDEND
Your Company has no borrowings. It ended the year under review with cash
representing 15% of its NAV and is likely to maintain a significant cash
position. In respect of the financial year to 30th June 2025, your Directors
recommend the payment of a final dividend of 1.85p per share, making a total for
the year of 3.55p (2024: 3.4p).
DISCOUNT
During the year under review, your Company’s shares continued to trade at a
significant discount to their NAV. The Board keeps this issue under regular
review.
OUTLOOK
In the autumn of 2025, equity markets appeared likely to benefit overall from
central bank monetary easing. The most attractive opportunities appeared to be
among lowly valued large companies in the UK, Europe excluding the UK and some
emerging markets. High US equity valuations, however, appeared vulnerable to
disappointment after the strong rises of recent years driven by investor
enthusiasm for technology in general and artificial intelligence advances in
particular. Your Company’s cash and bond investments provide diversification
should equity markets falter and as well as income to pay dividends.
NET ASSET VALUE
Your Company’s unaudited NAV at 30th September 2025 was 180.56p per share.
INVESTMENT MANAGER’S REPORT
MARKET REVIEW
Leading western central banks cut their policy interest rates over the year to 30
June 2025 in response to moderating inflation. The US Federal Reserve reduced its
5.25-5.5% rate by a half percentage point in September 2024 and then made quarter
point cuts in November and December but then left the rate unchanged at 4.25-5%
in response to near full employment and sticky inflation data. The Core Personal
Consumption Expenditures Price Index, the Fed’s preferred inflation measure, rose
from 2.63% in June 2024 to 2.9% in July 2025. Inflation may rise further because
of President Trump’s immigration clampdown and import tariff increases. The
President has criticised the Fed’s refusal to ease policy further because he
wishes to stimulate economic growth and weaken the dollar. Investors are nervous
about this challenge to central bank independence.
Eurozone interest rates have fallen more rapidly. The European Central Bank cut
its key policy rate by a quarter point on seven occasions over the year under
review in response to falling inflation, taking the rate from 3.75% to 2%. In
September 2025, the latest date for which data are available, inflation was
slightly above target at 2.2%. Donald Trump ended the Pax Americana era when he
told Europe’s leaders they could no longer rely on the US for security. In
Germany, the Chancellor, Friedrich Merz, announced welfare spending cuts while
increasing infrastructure and defence spending.
Investors are concerned about high public sector borrowing and fiscal deficits in
France, the UK and the US. Donald Trump’s “Big Beautiful Bill” passed in the
Senate after the vice president, JD Vance, cast his swing vote in favour. The
measure extended the President’s first term tax cuts, increased defence spending
and cut benefits. The US trade deficit rose further but the President announced
swingeing tariffs on US imports. Tariff revenues may benefit America’s fiscal
deficit but dollar weakness indicates investor unease. The Moody’s credit ratings
agency downgraded US government bonds although they remained amongst the safest
investments according to the ratings.
UK policy interest rates reached a 5.25% cyclical peak in 2023 and were unchanged
until August 2024 when the Bank of England announced the first of five quarter
point cuts that in aggregate took the rate to 4% in September 2025. UK inflation
rose from 2.0% in June 2024 to 3.8% in September 2025 as wage rises contributed
to 4.7% services inflation and 2.8% goods inflation. The Bank eased policy
despite above target inflation because economic activity levels were weak. Rachel
Reeves, chancellor, faces tough decisions on taxes in her autumn Budget if she
intends to narrow the budget deficit without further damaging economic activity.
Some emerging market economies faced significant US tariff rises but may benefit
from higher growth rates and lower public sector borrowing relative to gross
domestic product. Dollar weakness may also prove a catalyst for investors to buy
emerging market equities, which were trading on lower valuations at your
Company’s year-end.
PORTFOLIO REVIEW
Your Company’s total return over the year under review was 2.08%. By comparison,
the Investment Association Mixed Investment 40-85% Shares sector, a peer group of
funds with a multi-asset approach to investing and a typical investment in global
equities in the 40-85% range, rose 5.57%. The MSCI AC World Total Return Index
rose 7.64% in sterling while the MSCI UK All Cap Total Return Index rose 11.03%.
Global bonds returned 0.46% in sterling while UK government bonds returned 1.42%.
During the year under review, Your Company’s performance was negatively affected
by its relatively low allocation to US equities, which outperformed the
benchmark, and from dollar weakness. By contrast, your Company’s equity
investments in the UK and emerging markets were beneficial. In August 2024, £17
million was returned to shareholders via a B share issue and redemption. To fund
this, your Company’s investments were sold on a broadly pro-rata basis to
maintain the portfolio’s overall asset allocation.
US equities rose 6.23% in sterling over the year, with technology stocks
marginally outperforming. DeepSeek, a Chinese artificial intelligence (AI)
innovator, unveiled a large language model developed at a fraction of the cost of
proprietary US AI models and made the source code freely available. This resulted
in significant volatility for technology stocks as investors reassessed AI’s
commercial potential. Polar Capital Global Technology, which has a bias towards
AI beneficiaries, however, rose 11.61%, outperforming 6.74% return for US
technology stocks in sterling.
Your Company started the year under review with a relatively low allocation to US
stocks and the US weighting was further reduced in response to high valuations
and the growing concentration risk caused by investor exuberance about AI. This
drove the percentage of the US market represented by large technology companies
to unprecedented levels. The holdings in Polar Capital Global Technology and the
iShares Core S&P 500 exchange traded fund (ETF) were reduced as part of the
return of capital to shareholders and the Polar Capital Global Technology holding
was reduced by a further £3 million in October 2024.
Your Company benefited from strong performance by UK stocks, up 11.03% as
investors bought into a market that was relatively lowly valued and yielded more
than many overseas markets. This higher yield supports your Company’s ability to
pay dividends. Man Income returned 14.16% while Chelverton UK Equity Income, a
small company investment, returned 7.33%. Aberforth Geared Value & Income, the
successor investment trust to Aberforth Split Level Income, was launched at the
start of your Company’s financial year. Its shares fell 23.01% over the year as
they traded at a discount to their net asset value. The fall came despite the
11.14% gain by UK smaller companies over the year.
Equities in Asia excluding Japan and emerging markets rose 8.38% and 6.98%
respectively in sterling over the year despite the imposition of significant US
tariffs on Chinese and Indian goods. Your Company’s holdings in the JP Morgan
Global Emerging Markets Income investment trust and its related open ended fund
gained 11.05% and 5.00% respectively as Asian technology stocks including Taiwan
Semiconductor Manufacturing Company and Samsung Electronics were buoyed by
investor enthusiasm. Prusik Asian Equity Income, which has a value investment
style and holds high yielding stocks such as CK Hutchison and Jardine Matheson,
gained 9.93%. A bias towards higher dividend payers also helped Schroder Oriental
Income and Schroder Asian Income Maximiser return 9.29% and 3.51% respectively.
Indian equities fell 5.65% in sterling over the year as investors preferred more
lowly valued emerging markets. Stewart Investors Indian Subcontinent, one of your
Company’s largest investments, underperformed, falling 12.43%. Your Company’s
emerging markets weighting increased through a £1.25 million investment in Cusana
Emerging Markets Equities but it was later reduced through the sale of Polen
Capital Asia Income following the departure of its manager to raise £3.4 million.
Your Company’s sterling hedged global bond investments made significant gains as
global bonds rose 8.91% in dollar terms but just 0.46% in sterling because of the
dollar’s 7.75% fall against the pound. The sterling hedged holdings in Franklin
Templeton Emerging Market Bond and the iShares Treasury Bond 7-10 years exchange
traded fund returned 14.75% and 5.17% respectively. Within the UK allocation,
Schroder Strategic Credit returned 8.28%. These investments combined with
sterling and dollar cash provided diversification and income although the weak
dollar hurt performance.
OUTLOOK
Your Company’s portfolio ended the year under review positioned positively
because equity markets should benefit from monetary easing by the leading western
central banks. US equities, which have led markets higher in recent years, appear
priced for near perfection, however, with expected returns close to the returns
offered by low risk investments such as 2 year US government bonds. This implies
that investors are receiving little compensation for the additional risk inherent
in investing in US equities. By contrast, larger companies in the UK, the
eurozone and some emerging markets appeared to offer attractive returns relative
to lower risk assets. Sterling and dollar deposits, bond investments and lower
risk multi-asset investments provide diversification and some protection should
equity markets fall overall as well as contributing to your Company’s ability to
pay dividends.
SCHEDULE OF LARGEST HOLDINGS AT 30TH JUNE 2025
Market Purchases/ Market Market
value 30 (Sales) movement value 30
June 2024 June 2025 % of net
assets
£’000 £’000
£’000 £’000
Polar Capital Global 12,243 (4,800) 847 8,290 6.84
Technology
Man Income Fund 7,180 (1,073) 443 6,550 5.40
TM Redwheel Global 7,221 (1,051) (64) 6,106 5.04
Equity Income Fund
Baillie Gifford Global 7,326 (1,075) (237) 6,014 4.96
Income Growth
iShares Core S&P 500 6,643 (1,001) 203 5,845 4.82
UCITS ETF
Aquilus Inflection Fund 5,066 (590) 92 4,568 3.77
Stewart Investors Indian 5,698 (841) (616) 4,241 3.50
Subcontinent Fund
MI Chelverton UK Equity 4,609 (677) 58 3,990 3.29
Income Fund
EF Brompton Global 4,757 (935) 39 3,861 3.19
Conservative Fund
EF Brompton Global 4,267 (627) 127 3,767 3.11
Equity Fund
FTF Clearbridge Global 3,907 (565) 313 3,655 3.02
Infrastructure Income
Vietnam Enterprise 3,497 - 113 3,610 2.98
Investments
EF Brompton Global 3,774 (532) 149 3,391 2.80
Adventurous Fund
Schroder Asian Income 4,065 (591) (185) 3,289 2.72
Maximiser L Income
EF Brompton Global 3,563 (493) 125 3,195 2.64
Growth Fund
Schroder Strategic 3,050 - 56 3,106 2.56
Credit Fund L Income
MI Brompton UK Recovery 3,290 (440) 250 3,100 2.56
Unit Trust
Aberforth Geared Value & 4,065 (499) (568) 2,998 2.47
Income Trust*
iShares $ Treasury Bond 2,945 - 35 2,980 2.46
7-10yr UCITS ETF
Prusik Asian Equity 2,973 (425) 94 2,642 2.18
Income Fund
EF Brompton Global 2,745 (358) 49 2,436 2.01
Balanced Fund
Cusana Emerging Market 1,203 1,250 (88) 2,365 1.95
Equity Fund
EF Brompton Global 2,236 - 24 2,260 1.87
Income Fund
MI Polen Capital Asia 4,147 (3,994) (153) _____- _____-
Income Fund
110,470 (19,317) 1,106 92,259 76.16
Balance not held in _11,246 (472) __(9) 10,783 __8.90
investments above
Total investments 121,716
(excluding cash) (19,789) 1,115 103,042 85.06
*The holding in Aberforth Split Level Trust was converted into Aberforth Geared
Value and Income Trust during the year.
The income return from the largest holdings above is not included in the table.
The investment portfolio, excluding cash and bank deposits, can be further
analysed as follows:
£ ‘000
Investment funds 74,535
Investment companies and exchange traded funds 24,868
Unquoted investments, including loans of £0.1m 2,748
Other quoted investments ___891
103,042
STRATEGIC REVIEW
The Strategic Review is designed to provide information primarily about the
Company’s business and results for the year ended 30th June 2025. The Strategic
Review should be read in conjunction with the Chairman’s Statement and the
Investment Manager’s Report, which provide a review of the year’s investment
activities of the Company and the outlook for the future.
STATUS
The Company is an investment company under section 833 of the Companies Act
2006. It is an Approved Company under the Investment Trust (Approved Company)
(Tax) Regulations 2011 (the ‘Regulations’) and conducts its affairs in accordance
with those Regulations so as to retain its status as an investment trust and
maintain exemption from liability to United Kingdom capital gains tax (see note
21 for an uncertainty).
The Company is a small registered Alternative Investment Fund Manager.
PURPOSE CULTURE AND VALUES
The Directors acknowledge the expectation under the UK Code on Corporate
Governance issued by the Financial Reporting Council in July 2018 (the ‘Code’)
that they formally define a purpose for the Company. The Directors have reviewed
this requirement and consider that the Company’s purpose is to deliver the
Company’s stated investment objective to achieve long-term capital growth for the
benefit of its investors.
Similarly, the Directors have also considered the Company’s culture and values in
line with the Code requirements. The Board has formed the view that as the
Company has no direct employees, and with operational management outsourced to
the Investment Manager, the Administrator and the Company Secretary, the
Company’s culture and values have to be those of the Board. Having a stable
composition and established working practices, the Board is defined by
experienced membership, trust and robust investment challenge. These are
therefore the key characteristics of the Company’s culture and values.
STAKEHOLDER RESPONSIBILITIES (S.172 STATEMENT UNDER COMPANIES ACT 2006)
The Directors are aware of their responsibilities to stakeholders under both the
Code and legislation through regular governance updates from the Company
Secretary. As a UK listed investment trust, the Directors outsource operational
management of the Company, including day-to-day management of the investment
portfolio, to third parties. As a consequence, the Directors consider their key
stakeholder groups to be limited to the Company’s shareholders, its third-party
advisers and service providers, and individual Board members.
The Company’s Articles of Association, the Board’s commitment to follow the
principles of the Code and the involvement of the independent Company Secretary
in Board matters enable the Directors to meet their responsibilities towards
individual shareholder groups and Board members. Governance procedures are in
place which allow both investors and Directors to ask questions or raise concerns
appropriately. The Board is satisfied that those governance procedures mean the
Company can act fairly between individual shareholders and takes account of Mr
Duffield’s significant shareholding. In considering the payment of the minimum
dividend required to maintain investment trust tax status, the recommendations to
vote in favour of the resolutions at the AGM and the asset allocation within the
investment portfolio, the Board assessed the potential benefits to shareholders.
The Board meets its major service providers at least quarterly and Shareholders’
views are obtained at the Annual General Meeting.
The Board also regularly considers the performance of its significant independent
third-party service providers. Those third-party service providers in turn have
regular opportunities to report on matters meriting the attention of the Board,
including in relation to their own performance. The Board is therefore confident
that its responsibilities to each of its key stakeholder groups are being
discharged effectively.
As the Company does not have any employees, the Board does not consider it
necessary to establish means for employee engagement with the Board as required
by the latest version of the Code.
INVESTMENT OBJECTIVE AND POLICY
Investment Objective
During the year the Company’s investment objective was amended to achieve total
return through capital growth and income.
Investment Policy
The Company’s investment policy is to allocate assets to global investment
opportunities through investment in equity, bond, commodity, real estate,
currency and other markets. The Company’s assets may have significant weightings
to any one asset class or market, including cash.
The Company will invest in pooled investment vehicles, exchange traded funds,
futures, options, limited partnerships and direct investments in relevant
markets. The Company may invest up to 15% of its net assets in direct investments
in relevant markets.
The Company will not follow any index with reference to asset classes, countries,
sectors or stocks. Aggregate asset class exposure to any one of the United
States, the United Kingdom, Europe ex UK, Asia ex Japan, Japan or Emerging
Markets and to any individual industry sector will be limited to 50% of the
Company’s net assets, such values being assessed at the time of investment and
for funds by reference to their published investment policy or, where
appropriate, the underlying investment exposure.
The Company may invest up to 20% of its net assets in unlisted securities
(excluding unquoted pooled investment vehicles), such values being assessed at
the time of investment.
The Company will not invest more than 15% of its net assets in any single
investment, such values being assessed at the time of investment.
Derivative instruments and forward foreign exchange contracts may be used for the
purposes of efficient portfolio management and currency hedging. Derivatives may
also be used outside of efficient portfolio management to meet the Company’s
investment objective. The Company may take outright short positions in relation
to up to 30% of its net assets, with a limit on short sales of individual stocks
of up to 5% of its net assets, such values being assessed at the time of
investment.
The Company may borrow up to 30% of net assets for short-term funding or
long-term investment purposes.
No more than 10%, in aggregate, of the value of the Company’s total assets may be
invested in other closed-ended investment funds except where such funds have
themselves published investment policies to invest no more than 15% of their
total assets in other listed closed-ended investment funds.
Information on the Company’s portfolio of assets with a view to spreading
investment risk in accordance with its investment policy is set out above.
FINANCIAL REVIEW
For the year-ended 30 June 2023, the Company changed its management fee
allocation policy. Previously the management fee was charged to income. As the
Company invests on a fund of funds basis, for much of the investment portfolio
this resulted in two investment management fees being charged to income. For
2023 and subsequent periods, the management fee charged directly by Brompton is
being allocated to the capital account.
Net assets at 30th June 2025 totalled £121,140,000 compared with £137,861,000 at
30th June 2024. In the year under review, the NAV per Ordinary share decreased by
12.13% from 194.11p to 170.56p. The decrease in NAV per share of 23.55p resulted
from the B Share issue redemption (24.00p), dividends paid (3.40p), capital loss
(0.21p) and B share issue expenses (0.18p) offset by the revenue return (4.25p).
Final dividends of 1.70p per share in respect of 2024 and an interim dividend for
2025 of 1.70p per share were paid.
The B Share repayment of £17 million was funded from the sale of investments,
resulting in the year on year fall in the valuation of investments.
The Company’s gross revenue rose to £3,398,000 (2024: £3,256,000). This increase
in revenue was achieved despite the fall in net assets following the B Share
redemption. The Company continued to invest in higher income producing funds.
Interest on the bank balances remained significant but decreased as interest
rates were lower. After deducting expenses and taxation, the revenue profit for
the year was £3,021,000 (2024: £2,881,000).
Total expenses, including the management fee charged to capital, for the year
decreased slightly to £1,119,000 (2024: £1,186,000). In the year under review the
investment management fee decreased to £742,000 (2024: £811,000), reflecting the
Company’s lower average NAV over the period following the B Share redemption.
Further details on the Company’s expenses may be found in notes 3 and 4.
Historically, dividends have not formed a central part of the Company’s
investment objective. The increased investment in income focused funds over the
last few years and charging management fees to capital has enabled the Directors
to declare an increased dividend more recently. At the half year the Company
paid a dividend of 1.70p per share. The Directors propose a final dividend of
1.85p per Ordinary share in respect of the year ended 30th June 2025 (2024:
1.70p). If approved at the Annual General Meeting, the dividend will be paid on
12th December 2025 to shareholders on the register at the close of business on
14th November 2025 (ex-dividend 13th November 2025).
The primary source of the Company’s funding is shareholder funds.
While the future performance of the Company is dependent, to a large degree, on
the performance of international financial markets, which in turn are subject to
many external factors, the Board’s intention is that the Company will continue to
pursue its stated investment objective in accordance with the strategy outlined
above. Further comments on the short-term outlook for the Company are set out in
the Chairman’s Statement and the Investment Manager’s report.
PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS
Throughout the year the Company’s investments included seven funds managed by the
Investment Manager (2024: seven). No investment management fees were payable
directly by the Company in respect of these investments.
In order to measure the success of the Company in meeting its objectives, and to
evaluate the performance of the Investment Manager, the Directors review at each
meeting: net asset value, income and expenditure, asset allocation and
attribution, the share price of the Company and the discount. The Directors
consider a number of different indicators as the Company does not have a formal
benchmark and performance against those is shown in the Financial Highlights.
Performance is discussed in the Chairman’s Statement and Investment Manager’s
Report.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks identified by the Board, and the steps the Board takes to
mitigate them, are discussed below. The Audit and Risk Committee reviews
existing and emerging risks on a six-monthly basis. The Board has closely
monitored the societal, economic and market focused implications of recent
events.
Investment strategy
Inappropriate long-term strategy, asset allocation and fund selection could lead
to underperformance. The Board discusses investment performance at each of its
meetings and the Directors receive reports detailing asset allocation, investment
selection and performance.
Business conditions and general economy
The Company’s future performance is heavily dependent on the performance of
different equity and currency markets. The Board cannot mitigate the risks
arising from adverse market movements. However, diversification within the
portfolio will reduce the impact. Further information is given in portfolio
risks below.
Macro-economic event risk
The scale and potential adverse impact of a macro-economic event, such as a
pandemic and the outbreak of localised wars has highlighted the possibility of a
number of identified risks such as market risk, currency risk, investment
liquidity risk and operational risk having an adverse impact at the same time.
The risk may impact on the value of the Company’s investment portfolio, its
liquidity, meaning investments cannot be realised quickly, or the Company’s
ability to operate if the Company’s suppliers face financial or operational
difficulties. The Directors closely monitor these areas and currently maintain a
significant cash balance.
Portfolio risks - market price, foreign currency and interest rate risks
The largest investments are listed above. Investment returns will be influenced
by interest rates, inflation, investor sentiment, availability/cost of credit and
general economic and market conditions in the UK and globally. A significant
proportion of the portfolio is in investments denominated in foreign currencies
and movements in exchange rates could significantly affect their sterling value.
The Investment Manager takes all these factors into account when making
investment decisions but the Company does not normally hedge against foreign
currency movements. The Board’s policy is to hold a spread of investments to
reduce the impact of the risks arising from the above factors, investing in a
spread of asset classes and geographic regions.
Net asset value discount
The discount in the price at which the Company’s shares trade to net asset value
means that shareholders cannot realise the real underlying value of their
investment. For a number of years, the Company’s share price has been at a
significant discount to the Company’s net asset value. The Directors regularly
review the level of discount, however given the investor base of the Company, the
Board is very restricted in its ability to influence the discount to net asset
value.
Investment Manager
The quality of the team employed by the Investment Manager is an important factor
in delivering good performance and the loss of key staff could adversely affect
returns. A representative of the Investment Manager attends each Board meeting
and the Board is informed if any major changes to the investment team employed by
the Investment Manager are proposed. The Investment Manager regularly informs
the Board of developments and any key implications for either the investment
strategy or the investment portfolio.
Tax and regulatory risks
A breach of The Investment Trust (Approved Company) (Tax) Regulations 2011 (the
‘Regulations’) could lead to capital gains realised within the portfolio becoming
subject to UK capital gains tax. A breach could occur as a result of factors
outside the Board’s control. A breach of the FCA Listing Rules could result in
suspension of the Company’s shares, while a breach of company law could lead to
criminal proceedings, financial and/or reputational damage. The Board employs
Brompton Asset Management Limited as Investment Manager, and Apex Fund
Administration Services (UK) Ltd as Secretary and Administrator, to help manage
the Company’s legal and regulatory obligations.
Operational
Disruption to, or failure of, the Investment Manager’s or Administrator’s
accounting, dealing or payment systems, or the Custodian’s records, could prevent
the accurate reporting and monitoring of the Company’s financial position. The
Company is also exposed to the operational risk that one or more of its suppliers
may not provide the required level of service.
The Directors confirm that they have carried out a robust assessment of the risks
and emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency and liquidity.
VIABILITY STATEMENT
The assets of the Company consist mainly of securities that are readily
realisable, or cash and bank deposits and it has no significant liabilities and
financial commitments. Investment income has exceeded annual expenditure and
current liquid net assets cover current annual expenses for many years.
Accordingly, the Company is of the opinion that it has adequate financial
resources to continue in operational existence for the long term which is
considered to be in excess of five years. Five years is considered a reasonable
period for investors when making their investment decisions. In reaching this
view, the Directors reviewed the anticipated level of annual expenditure against
the cash, bank deposits and liquid assets within the portfolio. The Directors
have also considered the risks the Company faces in making this viability
statement.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ISSUES
The Company has no employees, with day-to-day operational and administration of
the Company being delegated by the Board to the Independent Investment Manager
and the Administrator. The Company’s portfolio is managed in accordance with the
investment objective and policy approved by shareholders. The Company is
primarily invested in investment funds and exchange traded funds, where it has no
direct dialogue with the underlying investments. Environmental, social and
governance considerations of underlying investee companies are not a key driver
when evaluating existing and potential investments.
GREENHOUSE GAS EMISSIONS AND STREAMLINED ENERGY AND CARBON REPORTING
As the Company has no premises, properties or equipment of its own, the Directors
deem the Company to be exempt from making any disclosures under the Large and
Medium-sized Companies and Groups (Accounts and Reports Regulations 2008). The
Company is also exempt from the detailed disclosures required under the
streamlined Energy and Reporting requirements.
MODERN SLAVERY ACT
The Directors rely on undertakings given by its independent third-party advisers
that those companies continue to have no instances of modern slavery either
within their businesses or supply chains. Given the financial services focus and
geographical location of all third-party suppliers to the Company, the Directors
perceive the risks of a contravention of the legislation to be very low.
DIVERSITY
The Board of Directors comprises four male directors, and currently no female
board members and no minority ethnic members.
The Board does not have a formal diversity policy, and no targets have been
established. The Board is committed to the benefits of diversity, including
gender, ethnicity and background when considering new appointments to the Board,
whilst always seeking to base any decision on merit, measured by knowledge,
experience and ability to make a positive contribution to the Board’s decision
making.
The Company has not met the diversity and minority ethnic targets set by the FCA.
CLIMATE RELATED REPORTING
As a closed-end investment fund, the Company is exempt from any climate related
reporting. The Company mainly invests in funds. Those funds are responsible for
determining the impact of climate change when making their investment decisions.
The Company does not influence the investment decisions of the funds it invests
in.
LISTING RULE 6.6
The listed company’s annual financial report must include the information
required under UKLR 6.6.1R in a single identifiable section, unless the annual
financial report includes a cross-reference table indicating where that
information is set out. The Directors confirm that there were no disclosures to
be made in this regard.
STATEMENT OF COMPREHENSIVE INCOME AT 30TH JUNE 2025
Year ended Year ended
30th June 2025 30th June 2024
Revenue Revenue
Return Capital Return Capital
Return Total Return Total
£ ‘000 £ ‘000 £ ‘000 £ ‘000 £ ‘000 £ ‘000
Notes
INVESTMENT INCOME 2 2,693 - 2,693 2,373 - 2,373
Other operating income 2 705 - 705 883 - 883
3,398 - 3,398 3,256 - 3,256
GAINS AND LOSSES ON
INVESTMENTS
Gains on investments at
fair value through profit - 1,115 1,115
or loss 8 - 12,575 12,575
Legal and professional - - - - - -
costs
Other exchange - (529) (529) - 35 35
Gains/(losses)
Trail rebates - 5 5 - 4 4
3,398 591 3,989 3,256 12,614 15,870
EXPENSES
Management fees 3 - (742) (742) - (811) (811)
Other expenses 4 (377) - (377) (375) - (375)
(377) (742) (1,119) (375) (811) (1,186)
PROFIT/(LOSS) BEFORE TAX 3,021 (151) 2,870 2,881 11,803 14,684
Tax 5 - - - - - -
PROFIT/(LOSS) FOR THE YEAR 3,021 (151) 2,870 2,881 11,803 14,684
EARNINGS/(LOSS) PER SHARE
Ordinary shares (pence) 6 4.25p (0.21)p 4.04p 4.05p 16.62p 20.67p
The total column of this statement represents the Company’s profit and loss
account, prepared in accordance with UK adopted international accounting
standards. The supplementary Revenue Return and Capital Return columns are both
prepared under guidance published by the Association of Investment Companies. All
revenue and capital items in the above statement derive from continuing
operations.
The Company did not have any income or expense that was not included in
‘Profit/(Loss) for the year’. Accordingly, the ‘Profit/(Loss) for the year’ is
also the ‘Total comprehensive income for the year’, as defined in IAS 1 and no
separate Statement of Comprehensive Income has been presented.
No operations were acquired or discontinued during the year.
All income is attributable to the equity holders of the company. There are no
minority interests.
Fully diluted earning per share is the same as earnings per share.
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2025
Share Share Special Capital Revenue Total
premium reserve Capital reserve reserve
capital redemption
Note reserve
£ ‘000 £ ‘000 £’000 £’000 £’000
£ ‘000 £ ‘000
AT 30th JUNE 710 21,573 56,908 - 56,049 2,621 137,861
2024
Total
comprehensive
income for - - - - (151) 3,021 2,870
the year
Dividends 7 - - - - - (2,415) (2,415)
paid
Issue of B 17,046 (17,046) - - - - -
Shares
B Share issue - - - - (130) - (130)
costs
Redemption of (17,046) - - 17,046 (17,046) - (17,046)
B Shares
AT 30th JUNE 710 4,527 56,908 17,046 38,722 3,227 121,140
2025
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2024
Share Share Special Capital Revenue Total
premium reserve Capital reserve reserve
capital redemption
Note reserve
£ ‘000 £ ‘000 £’000 £’000 £’000
£ ‘000 £ ‘000
AT 30th JUNE 2023 710 21,573 56,908 - 44,246 2,155 125,592
Total
comprehensive
income for the - - - - 11,803 2,881 14,684
year
Dividend paid 7 - - - - - (2,415) (2,415)
AT 30th JUNE 2024 710 21,573 56,908 - 56,049 2,621 137,861
BALANCE SHEET AT 30TH JUNE 2025
30th June 30th June
Notes 2025 2024
£ ‘000 £ ‘000
NON-CURRENT ASSETS
Investment at fair value through profit or loss 8 103,042 121,716
CURRENT ASSETS
Other receivables 10 203 479
Cash and cash equivalents 11 11,405 10,236
Other financial assets (longer-term deposits) 12 6,815 5,773
18,423 16,488
TOTAL ASSETS 121,465 138,204
CURRENT LIABILITIES
Other payables 13 (325) (343)
TOTAL ASSETS LESS CURRENT LIABILITIES 121,140 137,861
NET ASSETS 121,140 137,861
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
Called-up share capital 14 710 710
Share premium 15 4,527 21,573
Special reserve 15 56,908 56,908
Capital redemption reserve 15 17,046 -
Capital reserve 15 38,722 56,049
Revenue reserve 16 3,227 2,621
TOTAL EQUITY 121,140 137,861
CASH FLOW STATEMENTS AT 30TH JUNE 2025
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Notes
NET CASH FLOWS FROM OPERATING ACTIVITIES 1,500 (3,788)
INVESTING ACTIVITIES
Purchase of investments 8 (2,241) (32,535)
Sale of investments 8 22,030 31,695
19,789 (840)
NET CASH (OUTFLOW)/INFLOW FROM INVESTING ACTIVITIES
21,289 (4,628)
FINANCING ACTIVITIES
B Share issue redemption (17,046) -
B Share issue costs (130) -
Equity dividends paid 7 (2,415) (2,415)
NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES
(19,591) (2,415)
INCREASE/(DECREASE) IN CASH 1,698 (7,043)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN CASH &
CASH EQUIVALENTS
Net Increase/(Decrease) in cash and cash equivalents
resulting from cash flows
1,698 (7,043)
Exchange movements (529) 35
Movement in cash & cash equivalents 1,169 (7,008)
Cash & cash equivalents at start of the year 10,236 17,244
CASH & CASH EQUIVALENTS AT END OF YEAR 11,405 10,236
RECONCILIATION OF PROFIT BEFORE
FINANCE COSTS AND TAXATION TO NET
CASH FLOW FROM OPERATING
ACTIVITIES
Profit before finance costs and taxation* 2,870 14,684
(Gains) on investments (1,115) (12,575)
Exchange movements 529 (35)
Capital trail rebates (5) (4)
Net revenue gains before taxation 2,279 2,070
Decrease/(Increase) in debtors 276 (134)
(Decrease)/Increase in creditors (18) 45
(Increase) in longer term deposits (1,042) (5,773)
Taxation - -
Capital trail rebates 5 4
NET CASH INFLOW FROM OPERATING ACTIVITIES 1,500 (3,788)
*Includes dividends received in cash of £2,041,000 (2024: £2,132,000),
accumulation income of £269,000 (2024: £253,000) and interest received of
£1,417,000 (2024: £726,000).
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE 2025
1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with UK adopted
International Accounting Standards.
These financial statements are presented in pounds sterling, the Company’s
functional currency, being the currency of the primary economic environment in
which the Company operates, rounded to the nearest thousand.
(a) Basis of preparation: The financial statements have been prepared on a going
concern basis (see 1(q)). The principal accounting policies adopted are set out
below.
Where presentational guidance set out in 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 November
2014 and updated in February 2018 and October 2019 with consequential amendments
is consistent with the requirements of UK adopted International Accounting
Standards, the Directors have sought to prepare the financial statements on
a basis compliant with the recommendations of the SORP.
The Company is an investment entity as defined by UK adopted International
Accounting Standards.
Consolidated accounts have not been prepared as the subsidiary is immaterial in
the context of these financial statements. The net asset value of the investment
in JIT Securities Limited has been included in the investments in the Company’s
balance sheet. JIT Securities Limited has not traded throughout the year and the
preceding year and, as a dormant company, has exemption under 480(1) of the
Companies Act 2006 from appointing auditors or obtaining an audit.
(b) Presentation of Statement of Comprehensive Income: In order to better reflect
the activities of an investment trust company and in accordance with guidance
issued by the AIC, supplementary information which analyses the statement of
comprehensive income between items of a revenue and capital nature has been
presented alongside the statement of comprehensive income.
In accordance with the Company's Articles of Association, net capital returns may
now be distributed by way of a dividend. Additionally, the net revenue profit is
the measure the Directors believe is appropriate in assessing the Company’s
compliance with certain requirements set out in the Investment Trust (Approved
Company) (Tax) Regulations 2011.
(c) Use of estimates: The preparation of financial statements requires the
Company to make estimates and assumptions that affect items reported in the
company balance sheet and statement of comprehensive income and the disclosure of
contingent assets and liabilities at the date of the financial statements.
Although these estimates are based on the Directors’ best knowledge of current
facts, circumstances and, to some extent, future events and actions, the
Company’s actual results may ultimately differ from those estimates, possibly
significantly. The most significant estimate relates to the valuation of unquoted
investments.
(d) Revenue: Dividends and other such revenue distributions from investments are
credited to the revenue column of the statement of comprehensive income on the
day in which they are quoted ex-dividend. Where the Company has elected to
receive its dividends in the form of additional shares rather than in cash and
the amount of the cash dividend is recognised as income, any excess in the value
of the shares received over the amount recognised is shown as a capital return.
Deemed revenue from offshore funds is credited to the revenue account. Interest
on fixed interest securities and deposits is accounted for on an accrual’s
basis.
(e) Expenses: Expenses are accounted for on an accruals basis.
(1) Administration and other expenses, except for transaction charges, are
charged to the revenue column of the statement of comprehensive income.
(2) Direct management fees are recognised as a capital item in the statement of
comprehensive income.
(f) Investments held at fair value: Purchases and sales of investments are
recognised and derecognised on the trade date where a purchase or sale is under a
contract whose terms require delivery within the timeframe established by the
market concerned and are initially measured at fair value.
All investments are classified as held at fair value through profit or loss on
initial recognition and are measured at subsequent reporting dates at fair value,
which is either the quoted bid price or the last traded price, depending on the
convention of the exchange on which the investment is quoted. Investments in
units of unit trusts or shares in OEICs are valued at the bid price for dual
priced funds, or single price for non-dual priced funds, released by the relevant
investment manager. Unquoted investments are valued by the Directors at the
balance sheet date based on recognised valuation methodologies, in accordance
with International Private Equity and Venture Capital ('IPEVC') Valuation
Guidelines such as dealing prices or third-party valuations where available, net
asset values and other information as appropriate.
The fair value of investments reflects the impact, if any, of climate change.
(g) Taxation: The charge for taxation is based on taxable income for the year.
Withholding tax deducted from income received is treated as part of the taxation
charge against income. Taxation deferred or accelerated can arise due to
temporary differences between the treatment of certain items for accounting and
taxation purposes. Full provision is made for deferred taxation under the
liability method on all temporary differences not reversed by the Balance Sheet
date. No deferred tax provision is made against deemed reporting offshore funds
or offshore funds if the unrealised gains are covered by excess management
expenses. Deferred tax assets are only recognised when there is more likelihood
than not that there will be sufficient relevant profits against which they can be
applied.
(h) Foreign currency: Assets and liabilities denominated in foreign currencies
are translated at the rates of exchange ruling at the balance sheet date. Foreign
currency transactions are translated at the rates of exchange applicable at the
transaction date. Exchange gains and losses are taken to the revenue or capital
column of the statement of comprehensive income depending on the nature of the
underlying item.
(i) Capital reserve: The following are accounted for in the capital reserve:
- gains and losses on the realisation of investments together with the related
taxation effect;
- foreign exchange gains and losses on capital transactions, including those on
settlement, together with the related taxation effect;
- revaluation gains and losses on investments;
- direct management fees;
- legal expenses in assessing potential investments or incurred in disposing of
investments; and
- trail rebates received from the investment managers of the Company’s
investments.
- B share redemption
The capital reserve is available for the payment of dividends.
(j) Revenue reserve: The revenue reserve includes net revenue recognised in the
revenue column of the Statement of Comprehensive Income.
(k) Special reserve: The special reserve can be used to finance the redemption
and/or purchase of shares in issue.
(l) Capital redemption reserve: The capital redemption reserve is not a
distributable reserve. It can be used to pay new Shares allotted as fully paid
bonus shares or reduced or cancelled in a similar way to Share Capital.
(m) Cash and cash equivalents: Cash and cash equivalents comprise deposits with
an original maturity of not more than 3 months and balances with banks. Cash and
cash equivalents may be held for the purpose of either asset allocation or
managing liquidity. Cash and cash equivalents are measured on an amortised
basis, which equates to fair value. No discount is applied.
(n)Longer term deposits: Longer term bank deposits with an original maturity of
over 3 months are shown as other financial assets. Longer term bank deposits are
measured on an amortised basis, which equates to fair value. No discount is
applied.
(o)Dividends payable: Dividends are recognised from the date on which they are
irrevocably committed to payment.
(p) Segmental Reporting: The Directors consider that the Company is engaged in a
single segment of business with the primary objective of investing in securities
to generate long term capital growth for its shareholders, all from the United
Kingdom. Consequently, no business segmental analysis is provided.
(q) Going concern basis of preparation: The financial statements are prepared on
a going concern basis that is that the Company will continue to be a going
concern for the next 12 months from the date of authorisation of the financial
statements and on the assumption that approval as an investment trust under
section 1158 of the Corporation Tax Act 2010 and the Investment Trust (Approved
Company) (Tax) Regulations 2011 will be retained.
(r) New standards, interpretations and amendments effective for the periods
beginning on or after 1st July 2024: There are no new standards, amendments to
standards and interpretations that have impacted the Company and should be
disclosed. The following standards and interpretations apply for the first time
to financial reporting periods commencing on or after 1 January 2024:
- Classification of Liabilities as Current or Non-current (Amendments to IAS 1).
- Non-Current liabilities with Covenants (Amendments to IAS 1).
(s) New standards, interpretations and amendments issued which are not yet
effective and applicable for the periods beginning on or after 1st July 2025: The
Company has not adopted the new or amended standards which have been issued but
are not yet effective:
- Presentation and Disclosure in Financial Statements (IFRS 18).
- Amendments to classification and measurement requirements for financial
instruments (Amendments to IFRS 9 and IFRS 7).
It is expected that these new standards will have no impact on the NAV in the
financial statements.
2. INVESTMENT INCOME
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
INCOME FROM INVESTMENTS
UK net dividend income 2,093 2,102
Overseas dividends 205 91
UK fixed interest 395 180
2,693 2,373
OTHER OPERATING INCOME
Bank interest 705 883
705 883
TOTAL INCOME COMPRISES
Dividends 2,298 2,193
Interest income 1,100 1,063
3,398 3,256
The above dividend and interest income has been included in the profit before
finance costs and taxation included in the cash flow statements.
3. MANAGEMENT FEES
Year ended Year ended
30th June 2025 30th June 2024
Revenue Capital Total Revenue Capital Total
£ ‘000 £ ‘000
£ ‘000 £ ‘000 £ ‘000 £ ‘000
Investment management fee - 742 742 - 811 811
- 742 742 - 811 811
At 30th June 2025 there were amounts accrued of £186,000 (2024: £212,000) for
investment management fees.
4. OTHER EXPENSES
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Directors’ remuneration 115 104
Administrative and secretarial fee 94 95
Auditors’ remuneration
- Audit 68 56
Other expenses 100 120
377 375
Allocated to:
- Revenue 377 375
- Capital - -
377 375
5. TAXATION
a. Analysis of tax charge for the year:
Year ended Year ended
30th June 2025 30th June 2024
Revenue
Return Capital Revenue Capital
Return Return Return
£ ‘000 £ ‘000 Total £ ‘000 Total
£ ‘000 £ ‘000 £ ‘000
Overseas tax - - - 7 - 7
Recoverable - - - (7) - (7)
income tax
Total current tax - - - - - -
for the year
Deferred tax - - - - - -
Total tax for the - - - - - -
year (note 5b)
(b) Factors affecting tax charge for the year:
The charge for the year of £nil (2024: £nil) can be reconciled to the profit per
the statement of comprehensive income as follows:
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Total profit before tax 2,870 14,684
Theoretical tax at the UK corporation tax rate of 25% 717 3,671
(2024: 25%)
Effects of:
Non-taxable UK dividend income (523) (526)
Gains and losses on investments that are not taxable (68) (3,154)
Excess expenses utilised (75) 23
Overseas dividends which are not taxable (51) (14)
Overseas tax - 7
Recoverable income tax - (7)
Total tax for the year - -
Due to the Company’s tax status as an investment trust and the intention to
continue meeting the conditions required to maintain approval of such status in
the foreseeable future, the Company has not provided tax on any capital or income
gains arising on the revaluation or disposal of investments, other than for
non-reporting funds.
There is no deferred tax (2024: £nil) in the capital account of the Company.
There is no deferred tax charge in the revenue account (2024: £nil).
The Company has not recognised a deferred tax asset of £1,081,000 (2024:
£1,156,000) arising from unutilised management expenses of £4,324,000 (2024:
£4,624,000) after allowing for taxable unrealised gains. There is no expiry date
for these assets.
6. EARNINGS PER ORDINARY SHARE BEFORE THE B SHARE ISSUE AND REDEMPTION
Total earnings per Ordinary share is based on the total profit on ordinary
activities after taxation of £2,870,000 (2024: £14,684,000) and on 71,023,695
(2024: 71,023,695) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year.
Revenue earnings per Ordinary share is based on the revenue profit on ordinary
activities after taxation of £3,021,000 (2024: £2,881,000) and on 71,023,695
(2024: 71,023,695) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year.
Capital loss per Ordinary share is based on net capital loss for the year of
£151,000 (2024: £11,803,000) and on 71,023,695 (2024: 71,023,695) Ordinary
shares, being the weighted average number of Ordinary shares in issue during the
year.
7. DIVIDENDS ON EQUITY SHARES
Amounts recognised as distributions in the year:
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Dividends paid during the year
2024 Final 1,207 1,207
2025 Interim 1,208 1,208
2,415 2,415
Dividends payable in respect of the year ended
30th June 2025: 3.55p (2024: 3.4p) per share 2,521 2,415
A final dividend of 1.85p per share is proposed.
8. INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS 103,042 121,716
ANALYSIS OF INVESTMENT PORTFOLIO
Quoted* Unquoted** Total
£ ‘000 £ ‘000 £ ‘000
Opening book cost 89,127 10,972 100,099
Opening investment holding gains/(losses) 29,836 (8,219) 21,617
Opening valuation 118,963 2,753 121,716
Movement in period
Purchases at cost 1,601 640 2,241
Sales
- Proceeds (22,000) (30) (22,030)
- Realised gains/(losses) on sales 8,268 (2) 8,266
Movement in investment holding gains for the year (6,538) (613) (7,151)
Closing valuation 100,294 2,748 103,042
Closing book cost 76,996 11,580 88,576
Closing investment holding gains/(losses) 23,298 (8,832) 14,466
Closing valuation 100,294 2,748 103,042
* Quoted investments include unit trust and OEIC funds and one monthly priced
fund.
** Unquoted investments include two funds invested primarily in unquoted
investments totaling £1.7 million.
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
ANALYSIS OF CAPITAL GAINS AND LOSSES
Realised gains on sales of investments 8,266 10,249
Movement in investment holding (losses)/gains (7,151) 2,326
Net gains/(losses) on investments attributable to ordinary 1,115 12,575
shareholders
Transaction costs
The purchase and sale proceeds above include transaction costs on purchases of
£35 (2024: £8,818) and on sales of £605 (2024: £nil).
9. INVESTMENT IN SUBSIDIARY UNDERTAKING
The Company owns the whole of the issued share capital (£1) of JIT Securities
Limited, a company registered in England and Wales.
The financial position of the subsidiary is summarised as follows:
Year ended Year ended
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Net assets brought forward - -
Dividend paid to parent - -
Net assets carried forward - -
10. OTHER RECEIVABLES
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Prepayments and accrued income 143 479
Taxation 19 -
Other debtors 41 -
203 479
11. CASH AND CASH EQUIVALENTS
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Cash at bank and on short term deposit 11,405 10,236
12. OTHER FINANCIAL ASSETS (LONGER TERM DEPOSITS)
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Longer term deposits 6,815 5,773
13. OTHER PAYABLES
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Accruals 325 343
14. CALLED UP SHARE CAPITAL
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Authorised
305,000,000 (2024: 305,000,000) Ordinary shares of £0.01 each 3,050 3,050
Issued and fully paid
71,023,695 (2024: 71,023,695) Ordinary shares of £0.01 each 710 710
15. RESERVES
Share Special Capital Redemption
Capital Reserve
Premium Reserve Reserve
Account
£ ‘000
£ ‘000 £ ‘000 £ ‘000
At 30th June 2024 21,573 56,908 - 56,049
Decrease in investment - - - (7,151)
holding gains
Net gains on realisation of - - - 8,266
investments
Losses on foreign currency - - - (529)
Trail rebates - - - 5
Management fees allocated to - - - (742)
capital
B Share redemption (17,046) - 17,046 (17,046)
B Share issue costs - - - (130)
At 30th June 2025 4,527 56,908 17,046 38,722
On 8 August 2024 the company returned £17,046,000 to its shareholders by way of a
B share scheme. A bonus issue of one new B share was made for each Ordinary Share
which was then redeemed for cash. The net assets of the company were reduced by
£17 million.
In addition to the B share issue, the Shareholders approved a resolution to
enable distributions to be paid out of capital profits.
The components of retained earnings are set out below:
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Capital reserve - realised 24,256 34,432
Capital reserve - revaluation 14,466 21,617
38,722 56,049
16. REVENUE RESERVE
30th June 30th June
2025 2024
£ ‘000 £ ‘000
Retained revenue profit 5,642 5,036
Dividends paid (2,415) (2,415)
3,227 2,621
17. NET ASSET VALUE PER ORDINARY SHARE
The net asset value per Ordinary share is 170.56 (2024: 194.11).
The net asset value per Ordinary share is calculated on net assets of
£121,140,000 (2024: £137,861,000) and 71,023,695 (2024: 71,023,695) Ordinary
shares in issue at the year end.
18. ANALYSIS OF CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cashflow Exchange At 30th June
At 1st July movement 2025
2024 £’000
£’000 £ ‘000
Cash at bank and on short term
deposit
10,236 1,698 (529) 11,405
19. RELATED PARTIES
Since 1st January 2010, Brompton or its predecessor Brompton Asset Management LLP
has acted as Investment Manager to the Company. This relationship is governed by
an agreement dated 17th May 2018.
Mr Duffield is the Chairman of Brompton Asset Management Group Limited, the
ultimate parent of Brompton. Currently Mr Duffield owns the majority (59.91%) of
the shares in the Company. Mr Gamble has an immaterial holding in Brompton Asset
Management Group Limited.
The total investment management fee payable to Brompton for the year ended 30th
June 2025 was £742,000 (2024: £811,000) and at the year-end £186,000 (2024:
£212,000) was accrued.
The Company’s investments include seven funds managed by Brompton or its
associates totalling £22,011,000 (2024: £24,631,000). No investment management
fees were payable directly by the Company in respect of these investments.
The Company has an equity investment of £170,000 (2024: £100,000) in an
investment management company in which a related party of Mr Duffield holds a
minority stake. The Company has an investment in a private equity fund valued at
£1.2 million (2024: £0.9 million) managed by this investment company. The
Company has further capital commitments of £0.9 million.
As a shareholder, Mr Duffield has received 59.14% of the Dividends paid during
the year and 59.14% of the B Share redemption proceeds paid during the year.
20. COMMITMENTS
The Company has made commitments to invest a further £1.1 million (2024: £1.2
million) which remains undrawn at the year-end. There are no other commitments at
the reporting date (2024: £nil).
21. POST BALANCE SHEET EVENT AND CONTINGENCY
Subsequent to the year-end, the Directors were notified that, following recent
changes in the Company’s share register, it was not possible to determine with
certainty, whether throughout the year the Company had met all the Close Company
requirements to maintain investment trust status. No provision has been made for
any capital gains tax on capital gains realised during the year.
Subsequent to the year-end, as a precaution, Mr Duffield has increased his
holding to ensure that the Close Company requirements are met as a result of his
purchase of shares in the Company. Confirmation that the Company has met these
requirements has been sought from HMRC.
22. FINANCIAL INFORMATION
2025 Financial information
The figures and financial information for 2025 are unaudited and do not
constitute the statutory accounts for the year.
2024 Financial information
The figures and financial information for 2024 are extracted from the published
Annual Report and Accounts for the year ended 30th June 2024 and do not
constitute the statutory accounts for the year. The Annual Report and Accounts
for the year-end 30th June 2024 (available on the Company’s website
1 www.nsitplc.com) has been delivered to the registrar of Companies and includes
the Independent Auditors report which was unqualified and did not contain a
statement under either section 498 (2) or section 498 (3) of the Companies Act
2006.
Annual Report and Accounts
The accounts for the year ended 30th June 2025 will be sent to shareholders in
November 2025 and will be available on the Company’s website or in hard copy
format at the Company’s registered office, 1 Knightsbridge Green, London SW1X 7QA
and will be available for inspection. A copy will also be submitted to the FCA's
National Storage Mechanism.
The Annual General Meeting of the Company will be held on Thursday 4th December
2025 at 11.00am at 1 Knightsbridge Green, London SW1X 7QA.
31st October 2025
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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB0002631041
Category Code: ACS
TIDM: NSI
LEI Code: 213800RT2OZF83G5N590
Sequence No.: 406877
EQS News ID: 2222188
End of Announcement EQS News Service
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