REG - North Atlantic Smlr - Half-year Report
30/09/2025 07:00
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RNS Number : 3083B North Atlantic Smlr Co Inv Tst PLC 30 September 2025
North Atlantic Smaller Companies Investment Trust plc
Half-Yearly Report for the six months ended 31 July 2025
Registered in England and Wales number 1091347
Objective of the Company and Financial Highlights
North Atlantic Smaller Companies Investment Trust plc is a company
incorporated and registered in England and Wales.
The objective of the Company is to provide capital appreciation through
investment in a portfolio of smaller companies principally based in countries
bordering the North Atlantic Ocean.
31 July 31 January
2025 2025 %
(unaudited) (audited) Change
Net asset value ("NAV") per 0.5p Ordinary Share*:
Basic and diluted 565.4p 539.7p‡ 4.8
Basic and diluted adjusted# 594.3p 574.0p‡ 3.5
Market price of the 0.5p Ordinary Shares 393.0p 375.0p‡ 4.8
Discount to net asset value 30.5% 30.5%
Discount to adjusted net asset value 33.9% 34.7%
Standard & Poor's 500 Composite Index† 4,794.2 4,850.3 (1.2)
Russell 2000 Index† 1,672.6 1,836.9 (8.9)
Ongoing charges (annualised) 1.2% 1.1%
* Includes current period revenue.
# Adjusted to reflect Oryx International Growth Fund plc ("Oryx") under the
equity method of accounting, which is how the Company previously accounted for
its share of Oryx, prior to the adoption of IFRS 10. This is useful to the
shareholder as it shows the NAV based on valuing Oryx at NAV. See note 6.
† Sterling adjusted.
‡ Restated for the sub-division of each Ordinary Share into 10 new Ordinary
Shares, approved at the AGM held on 12 June 2025 and completed on 13 June
2025.
Chief Executive's Review
During the six months period under review the total return to shareholders,
adjusting for the payment of the dividend, was 4.8% as compared to a fall in
the Sterling adjusted Standard & Poors Index of 1.2%. Performance of the
indices, and to a lesser extent the fall, was adversely impacted by the
weakness of the Dollar which fell by 6.1% relative to Sterling during the
period.
The company generated an income profit for the period of £8,522,000 which
compares favourably with the corresponding period last year of £8,076,000
despite lower rates and a weaker Dollar. Consistent with prior years, no
dividend is being declared until the outcome of the year becomes clearer.
However, based on my current expectations, it is anticipated that the dividend
in respect of the current year will approximate the dividend paid in respect
of the 2025 fiscal year, adjusted for the stock split following the Annual
General Meeting.
The company purchased 700,000 shares (adjusted for the stock split) for
cancellation during the period. The shares were purchased at a discount to net
asset value of circa 30% and will therefore benefit all long-term
shareholders. It is expected that further purchases will be made over the next
six months.
Quoted Portfolio
The period under review saw very considerable volatility, not least because of
the volatile and sometimes contradictory nature of US President Trump.
It is therefore encouraging that the fund's largest investment, Oryx
International Growth, saw an increase in it's net asset value of just over 9%
during the period under review. Sadly, Odyssean performed less well rising by
only 1%, adversely impacted by its exposure to industrial businesses which
have borne the full weight of Trump's tariffs and the weakness of the Dollar.
Stocks held directly were mixed but overall performance was assisted by the
decision to increase exposure to UK equities in April when valuations were
depressed as a result of Trump's 'Liberation Day'.
UK Quoted Portfolio
Assetco performed well rising by 15% following their decision to hive off the
Parmenion holding into a separate legal entity. Carr's Group rose by around
20% as a result of the sale of its nuclear business and a tender offer which
reduced the number of shares outstanding by circa 45%. EKF rose by 20%
following good results and a share buyback. Frenkel Topping also performed
well following a bid from a consortium of which the Trust is a member. The
Trust's largest holding, Hargreaves Services, rose 18% following good results
and the stand-out performer was Pinewood which rose 40% following significant
new contract wins and the buyout of the United States joint venture.
Sadly, two of our larger holdings performed very disappointingly. Gleeson fell
by 20% as the Labour Party's chaotic housing policy has led to difficulties
across the whole sector. The greater disappointment however was Conduit
Reinsurance which despite a very benign insurance market managed to lose money
in the twelve months to end June 2025. The shares fell circa 33% and now trade
at a 40% discount to the end December estimate of the net asset value. A
shareholder activist has recently targeted the company so I am hopeful that I
can report more positive news in the forthcoming Annual Report.
United States Portfolio
Mountain Commerce, the only listed holding, reported good news and increased
its dividend by 40%. Notwithstanding this, the stock in Sterling adjusted
terms fell by 13%, although given the small size of the holding the impact on
the fund was immaterial.
Unquoted Portfolio
One new investment was made during the period, Benchmark Holdings, which
delisted from the market. We rejected an offer of 25p as we felt this
materially undervalued the business which we believe will return more than 40
pence per share within two years including an 8 pence per share return of
capital no later than end November this year.
As to the individual investments:
Coventbridge - the company is performing well and is substantially in excess
of last year and budget.
3BL Media - The company has suffered some client losses due to Trump's attack
on woke businesses. As the largest distributor of ESG strategies for major
corporations, it has seen cancellation and postponement of some major
contracts. The company is right sizing to deal with these issues" but it was
necessary to write down the investment by 50% during the period.
Spring - The company manufactures drugs for the NHS and the private hospital
industry. Trading in the current year has recovered from what now looks like a
temporary blip in 2024. It is expected that the company will be put up for
sale in early 2026 and we are hopeful that we will receive a good premium to
the current valuation.
Journey Group - The company provides catering services to the airline industry
in the US. The business is performing well winning new customers and has
minimal debt.
SMT - The company distributes hard to get components mainly for the US
military. Trading has recovered from the disappointing performance last year
but the core business remains challenging.
Specialist Components - The company distributes parts in the UK. Trading
conditions are improving with some good recent contract wins. The company is
in discussion with two parties which may lead to its acquisition, although the
price is likely to be only in line with the current valuation.
Source Bioscience - The company which is the leading digital pathology
business in the UK is performing very strongly with operating results
considerably ahead of last year and budget. The outlook for next year is also
very good which bodes well for a successful exit in the medium term.
Crest - The company manufactures specialty food ingredients and food with a
significant packaging division. The fiscal year just ended was significantly
ahead of budget and the outlook for the current year is for further growth.
Recently a number of large long-term contracts have been won which bodes
extremely well for fiscal 2027.
Other businesses held within the unquoted funds are all trading satisfactorily
with no adverse news anticipated.
Outlook
The UK stock market has been volatile with the best performance coming from
the major international businesses and banks. Smaller companies continue to
face headwinds as fund managers experience redemptions and brutal price falls
if expectations are missed even only marginally.
The unquoted portfolio suffers from indigestion across the unlisted sector
with exits becoming harder to achieve as public markets view private equity
IPO's with (well founded) suspicion.
The Trust's liquidity fell from approximately £70m to £51m during the period
as we took advantage of the weak equity market in April.
Looking to the balance of the year, we are hopeful that a number of corporate
events, both in the quoted and unquoted portfolios, will enable us to maintain
the momentum of the first half.
C H B Mills
Chief Executive
29 September 2025
Top Ten Investments as at 31 July 2025
Fair % of
value net assets
£'000
Oryx International Growth Fund Limited* UK Quoted 100,688 13.5
Hargreaves Services Plc UK Quoted on AIM 49,609 6.7
Crest Foods US Unquoted 38,030 5.1
Harwood Private Equity Fund V LP UK Unquoted 37,185 5.0
Polar Capital Holdings Plc UK Quoted on AIM 33,285 4.5
TP ICAP Group plc UK Quoted 30,650 4.1
US Treasury Bills US Treasury Stock 29,878 4.0
EKF Diagnostics Holdings Plc UK Quoted on AIM 29,478 4.0
Odyssean Investment Trust Plc UK Quoted 25,680 3.5
Niox Group Plc UK Quoted on AIM 24,570 3.3
399,053 53.7
* Traded Price under IFRS10, incorporated in Guernsey.
All investments are valued at fair value.
Interim Management Report
Investment Objective
The objective of North Atlantic Smaller Companies Investment Trust PLC is to
provide capital appreciation to its shareholders through investing in a
portfolio of smaller companies which are principally based in countries
bordering the North Atlantic Ocean.
Material Events
There were no material events during the period.
Material Transactions
There were no material transactions during the period.
Risk Profile
The principal risks and uncertainties for the remaining six months of the year
continue to be as described in the Annual Report for the year ended 31 January
2025. The principal risks arising from the Company's financial instruments are
market price risk, including currency risk, interest rate risk and other price
risk, liquidity risk and credit risk. The Directors review and agree policies
with the Investment Manager, Harwood Capital, for managing these risks. The
policies have remained substantially unchanged in the six months since the
year end.
The Company does not have any significant exposure to credit risk arising from
any one individual party. Credit risk is spread across a number of
counterparties, each having an immaterial effect on the Company's cash flows,
should a default happen. The Company assesses the credit worthiness of its
debtors from time to time to ensure that they are neither past due or
impaired.
To support its investment in unquoted companies, the Company may periodically
agree to guarantee all or part of the borrowings of investee companies.
Provision is made for any costs that may be incurred when the Directors
consider it likely that the guarantee will crystallise.
The Company's exposure to market price risk comprises mainly movements in the
value of the Company's investments. It should be noted that the prices of
options tend to be more volatile than the prices of the underlying securities.
The Manager assesses the exposure to market risk when making each investment
decision and monitors the overall level of market risk on the whole of the
investment portfolio on an ongoing basis.
The functional and presentational currency of the Company is Sterling, and
therefore, the Company's principal exposure to foreign currency risk comprises
investments priced in other currencies, principally US Dollars.
The Company invests in equities and other investments that are realisable.
Related Parties
These are listed in note 9 to the half yearly condensed financial transactions
statements
on page 25.
On behalf of the Board
Sir Charles Wake
Chairman
29 September 2025
Responsibility Statement
The Directors confirm to the best of their knowledge that:
• The condensed set of financial statements contained within this half
yearly financial report have been prepared in accordance with International
Accounting Standard ("IAS") 34 'Interim Financial Reporting' in conformity
with the requirement of the Companies Act 2006 and gives a true and fair view
of the assets, liabilities, financial position and profit of the Company; and
• The half yearly financial report includes a fair review of the
information required by the FCA's Disclosure and Transparency Rule 4.2.7R
being disclosure of important events that have occurred during the first six
months of the financial year, their impact on the condensed set of financial
statements and a description of the principal risks and uncertainties for the
remaining six months of the year; and
• The half yearly financial report includes a fair review of the
information required by the Disclosure and Transparency Rule 4.2.8R being
disclosure of related party transactions during the first six months of the
financial year, how they have materially affected the financial position of
the Company during the period and any changes therein.
The half yearly financial report was approved by the Board on 29 September
2025 and the above responsibility statement was signed on its behalf by:
Sir Charles Wake
Chairman
29 September 2025
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended Year ended
31 July
31 July
31 January
2025
2024
2025
(audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Income 12,962 - 12,962 12,416 - 12,416 23,655 - 23,655
Net gains on investments at fair value - 37,867 37,867 - 55,123 55,123 - 26,724 26,724
Currency exchange (losses)/gains - (103) (103) - 81 81 - 154 154
total income 12,962 37,764 50,726 12,416 55,204 67,620 23,655 26,878 50,533
Expenses
Investment management fee (note 9) (3,794) (1,982) (5,776) (3,629) - (3,629) (7,258) - (7,258)
Other expenses (641) (18) (659) (699) - (699) (1,344) - (1,344)
return before taxation 8,527 35,764 44,291 8,088 55,204 63,292 15,053 26,878 41,931
Taxation (5) - (5) (12) - (12) (11) - (11)
return for the period 8,522 35,764 44,286 8,076 55,204 63,280 15,042 26,878 41,920
earnings per ordinary share (note 5)
Basic and diluted* 33.57p 47.25p 31.47p
The total column of the condensed statement is the Statement of Comprehensive
Income of the Company, prepared in accordance with UK-adopted International
Accounting Standards. The supplementary revenue and capital columns are
presented in accordance with the Statement of Recommended Practice issued by
the Association of Investment Companies ("AIC SORP").
All items in the above Statement derive from continuing operations. No
operations were acquired or discontinued in the period.
* In accordance with IAS 33 'Earnings per Share', the comparative return per
Ordinary Share figures have been restated using the new number of shares in
issue following the ten for one share split. For weighted average purposes,
the share split has been treated as happening on the first day of the
accounting period. See note 5 for further details.
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Changes in Equity (unaudited)
Share Capital Share Capital Revenue Total
capital
reserve
£'000
£'000 redemption premium reserve
£'000
£'000
£'000
reserve
£'000
six months ended 31 July 2025
31 January 2025 661 209 1,301 687,595 23,738 713,504
Total comprehensive income for the period - - - 35,764 8,522 44,286
Shares purchased for cancellation (4) 4 - (2,681) - (2,681)
Dividend - - - - (11,628) (11,628)
31 July 2025 657 213 1,301 720,678 20,632 743,481
six months ended 31 July 2024
31 January 2024 673 197 1,301 670,168 17,891 690,230
Total comprehensive income for the period - - - 55,204 8,076 63,280
Shares purchased for cancellation (9) 9 - (6,986) - (6,986)
Dividend - - - - (9,195) (9,195)
31 July 2024 664 206 1,301 718,386 16,772 737,329
year ended 31 January 2025 (audited)
31 January 2024 673 197 1,301 670,168 17,891 690,230
Total comprehensive income for the year - - - 26,878 15,042 41,920
Shares purchased for cancellation (12) 12 - (9,451) - (9,451)
Dividend - - - - (9,195) (9,195)
31 January 2025 661 209 1,301 687,595 23,738 713,504
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Balance Sheet (unaudited)
As at As at As at
31 July
31 July
31 January
2025
2024
2025
£'000
£'000
(audited)
£'000
non current assets
Investments at fair value through profit or loss 713,677 700,544 695,418
713,677 700,544 695,418
current assets
Trade and other receivables 11,450 9,231 6,365
Cash and cash equivalents 21,397 28,149 17,310
32,847 37,380 23,675
total assets 746,524 737,924 719,093
current liabilities
Trade and other payables (3,043) (595) (5,589)
total liabilities (3,043) (595) (5,589)
total assets less current liabilities 743,481 737,329 713,504
net assets 743,481 737,329 713,504
represented by:
Share capital 657 664 661
Capital redemption reserve 213 206 209
Share premium account 1,301 1,301 1,301
Capital reserve 720,678 718,386 687,595
Revenue reserve 20,632 16,772 23,738
total equity attributable to equity holders of the company 743,481 737,329 713,504
net asset value per ordinary share (note 6):
Basic and diluted* 565.4p 555.1p 539.7p
* Figures for July 2024 and January 2025 restated for a 10 for 1 share split.
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Cash Flow Statement (unaudited)
Six months ended Six months ended Year ended
31 July
31 July
31 January
2025
2024
2025
£'000
£'000
£'000
cash flows from operating activities
Investment income received 8,285 7,173 17,545
Deposit interest received 4 719 897
Interest received from money market funds 121 - 474
Investment Manager's fees and performance fees paid (3,811) (3,636) (7,265)
Other cash payments (814) (870) (1,469)
cash received from operations (note 7) 3,785 3,386 10,182
Taxation paid (5) (12) (11)
net cash inflow from operating activities 3,780 3,374 10,171
cash flows from investing activities
Purchases of investments (137,175) (158,833) (389,154)
Sales of investments 151,914 190,162 405,276
net cash inflow from investing activities 14,739 31,329 16,122
cash flows from financing activities
Dividend paid (11,628) (9,195) (9,195)
Repurchase of ordinary shares for cancellation (2,681) (6,985) (9,451)
net cash outflow from financing activities (14,309) (16,180) (18,646)
increase in cash and cash equivalents for the period 4,210 18,523 7,647
cash and cash equivalents at the start of the period 17,310 9,203 9,203
Revaluation of foreign currency balances (123) 423 460
cash and cash equivalents at the end of the period 21,397 28,149 17,310
The accompanying notes are an integral part of the condensed financial
statements.
Notes to the Financial Statements (unaudited)
1. a) Basis of accounting
North Atlantic Smaller Companies Investment Trust plc is a company
incorporated and registered in England and Wales. The principal activity of
the Company is that of an investment trust company within the meaning of
Sections 1158/1159 of the Corporation Tax Act 2010.
The condensed financial statements of the Company have been prepared in
accordance with International Accounting Standard ("IAS") 34 - "Interim
Financial Reporting". The accounting policies and methods of computation
followed in these half- yearly condensed financial statements are consistent
with the most recent annual financial statements for the year ended 31 January
2025 included in the Annual Report.
The financial statements have also been prepared in accordance with the AIC
SORP for the financial statements of investment trust companies and venture
capital trusts, except to any extent where it is not consistent with the
requirements of IFRS.
The financial information contained in this Half-Yearly Report does not
constitute statutory accounts as defined in the Companies Act 2006. The
financial information for the periods ended 31 July 2025 and 31 July 2024 have
not been audited or reviewed by the Company's Auditor. The figure and
financial information for the year ended 31 January 2025 are an extract from
the latest published audited financial statements, which have been filed with
the Registrar of Companies. The report of the Auditor on those financial
statements was unqualified and did not contain a statement under either
Section 498(2) or 498(3) of the Companies Act 2006.
b) Functional currency
The functional currency of the Company is Pounds Sterling because this is the
primary economic currency in which the Company operates. The financial
statements are presented in Pounds Sterling rounded to the nearest thousand,
except where otherwise indicated.
c) Significant accounting policies
The accounting policies applied are consistent with those of the Annual
Financial Report for the year ended 31 January 2025. Since the year end no new
standards have been adopted.
d) Accounting developments
In the current period, the Company has applied a number of amendments to IFRS,
issued by the IASB mandatorily effective for an accounting period that begins
on or after 1 January 2025. These include annual improvements to IFRS, changes
in standards, legislative and regulatory amendments, changes in disclosure and
presentation requirements. The adoption of these has not had any material
impact on these condensed financial statements.
e) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
segment of business, being investment business. The Company invests in smaller
companies principally based in countries bordering the North Atlantic Ocean.
f) Going concern
The financial statements have been prepared on a going concern basis and on
the basis that approval as an investment trust company will continue to be
met. The Directors have made an assessment of the Company's ability to
continue as a going concern and are satisfied that the Company has the
resources to continue in business for the foreseeable future, being a period
of 12 months from the date when these financial statements were approved. The
Directors are of the view that the Company can meet its obligations as and
when they fall due. The cash and US treasury bills available enables the
Company to meet any funding requirements and finance future additional
investments. The Company is a closed-end fund, where assets are not required
to be liquidated to meet day-to-day redemptions.
2. Investment management and performance fees
A Performance Fee is only payable if the investment portfolio, including Oryx
at the adjusted price, outperforms the Sterling adjusted Standard & Poor's
500 Composite Index at the end of each financial year and is limited to a
maximum payment of 0.5% of Shareholders' Funds, and is allocated 100% to
capital.
An amount would be included in these financial statements for the Performance
Fee that could be payable based on investment performance to 31 July 2025. At
that date, a Performance Fee of £1,982,000, inclusive of VAT, has been
accrued for in the accounts (31 July 2024: £nil; 31 January 2025: £nil).
Further details of fees paid to the investment manager can be found in Note 9,
Related Party transactions.
3. Taxation
The Company has an effective tax rate of 0%. The estimated effective tax rate
is 0% as investment gains are exempt from tax owing to the Company's status as
an Investment Trust and there is expected to be an excess of management
expenses over taxable income and thus there is no charge for corporation tax.
During the half year to 31 July 2025, the Company recognised a total charge of
£5,000 (half year to 31 July 2024: £12,000, year ended 31 January 2025:
£11,000), representing irrecoverable withholding tax paid on overseas
investment income.
4. Dividends
For the year ended 31 January 2025, the Board declared an interim dividend of
8.80p per Ordinary share (31 January 2024: 6.85p) which was paid on 8 April
2025. This value is restated from 88.0p (31 January 2024: 68.5p) due to the 10
for 1 share split. For the year end 31 January 2025, no final dividend was
proposed (31 January 2024: nil).
5. Earnings per ordinary share
Revenue Capital Total
Net Ordinary Per Net Ordinary Per Net Ordinary Per
return
Shares
Share
return
Shares
Share
return
Shares
Share
£'000
pence
£'000
pence
£'000
pence
six months ended 31 July 2025
Basic and diluted return per Share 8,522 131,933,406 6.46 35,764 131,933,406 27.11 44,286 131,933,406 33.57
six months ended 31 July 2024
Basic and diluted return per Share 8,076 133,921,210* 6.03* 55,204 133,921,210* 41.22* 63,280 133,921,210* 47.25*
year ended 31 January 2025
Basic and diluted return per Share 15,042 133,221,580* 11.29* 26,878 133,221,580* 20.18* 41,920 133,221,580* 31.47*
Basic earnings per Ordinary Share has been calculated using the weighted
average number of Ordinary Shares in issue during the period.
* Figures for July 2024 and January 2025 restated for a 10 for 1 share split.
6. Net asset value per ordinary share
At the Annual General Meeting of the Company held on 12 June 2025,
shareholders approved a resolution for a ten for one share split such that
each shareholder would receive ten shares with a nominal value of 0.5 pence
each for every one share held. These new shares were listed on 13 June 2025.
The basic net asset value per Ordinary Share is based on net assets of
£743,481,000 (31 July 2024: £737,329,000; 31 January 2025: £713,504,000)
and on 131,500,000 Ordinary Shares (31 July 2024: 132,833,380; 31 January
2025: 132,200,000) being the number of Ordinary Shares in issue at the period
end. Figures for July 2024 and January 2025 restated for a 10 for 1 share
split.
During the period to 31 July 2025, the Company bought back for cancellation
33,751 shares prior to the share split and 362,490 shares post share split,
for a total cost including stamp duty of £2,681,000 (31 July 2024: 178,237
shares bought back for cancellation at a cost, including stamp duty of
£6,986,000; 31 January 2025: 241,575 shares at a cost, including stamp duty
of £9,451,000). Figures for July 2024 and January 2025 are prior to the share
split.
Adjustment for Oryx
The Company has also reported an adjusted net asset value per share using
equity accounting, in accordance with its previous method of valuing its
investment in Oryx. The Company has chosen to report this net asset value per
share to show the difference derived if equity accounting were to be used.
Equity accounting permits the use of net asset value pricing for listed assets
which in the case of Oryx is higher than its fair value.
The values of Oryx, as at each period end, are as follows:
31 July 2025 £'000 31 July 2024 £'000 31 January 2025 £'000
Oryx at fair value (traded price) 100,688 106,249 81,750
Oryx value using equity accounting 138,675 134,831 127,125
Increase in net assets using equity accounting 37,987 28,582 45,375
31 July 2025 31 July 2024 31 January 2025
Net asset value per Share
- Basic and diluted 565.4p 555.1p* 539.7p*
Net asset value per Share adjusted
- Basic and diluted 594.3p 576.6p* 574.0p*
* Figures for July 2024 and January 2025 restated for a 10 for 1 share split.
7. Reconciliation of total return before taxation to cash received from
operations
Six months Six months Year ended
ended ended 31 January 2025
31 July 2025 31 July 2024 £'000
£'000 £'000
Total return before taxation 44,291 63,292 41,931
Gains on investments and currency (37,764) (55,204) (26,878)
Income reinvested - (133) (3,275)
Increase in trade and other receivables (5,085) (4,493) (1,628)
Increase/(decrease) in trade and other payables 2,343 (76) 32
Cash received from operations 3,785 3,386 10,182
8. Investments
Financial assets at fair value through profit or loss
This requires the Company to classify fair value measurements using a fair
value hierarchy that reflects the significance of the inputs used in making
the measurements. The fair value hierarchy consists of the following three
levels:
• Level 1 - Quoted prices (unadjusted) in active markets for identical
assets or liabilities.
• Level 2 - Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices).
• Level 3 - Inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement in its entirety.
For this purpose, the significance of an input is assessed against the fair
value measurement in its entirety. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that
measurement is a Level 3 measurement. Assessing the significance of a
particular input to the fair value measurement in its entirety requires
judgement, considering factors specific to the asset or liability.
The determination of what constitutes 'observable' requires significant
judgement by the Company. The Company considers observable data from
investments actively traded in organised financial markets; fair value is
generally determined by reference to Stock Exchange quoted market bid prices
at the close of business on the Balance Sheet date, without adjustment for
transaction costs necessary to realise the asset.
The table below sets out fair value measurements as at the period end, by the
level in the fair value hierarchy into which the fair value measurement is
categorised.
as at 31 July 2025 Total Level 1 Level 2 Level 3
£'000
£'000
£'000
£'000
Equity shares 629,974 503,975 - 125,999
Preference securities 14,586 - - 14,586
Fixed interest/loan note securities 39,239 - - 39,239
Treasury Bills 29,878 29,878 - -
Total 713,677 533,853 - 179,824
as at 31 July 2024 Total Level 1 Level 2 Level 3
£'000
£'000
£'000
£'000
Equity shares 581,175 478,796 - 102,379
Preference securities 15,027 - - 15,027
Fixed interest/loan note securities 40,247 - - 40,247
Treasury Bills 64,095 64,095 - -
Total 700,544 542,891 - 157,653
as at 31 January 2025 Total Level 1 Level 2 Level 3
£'000
£'000
£'000
£'000
Equity shares 563,595 453,148 - 110,447
Preference securities 15,533 - - 15,533
Fixed interest/loan note securities 49,845 - - 49,845
Treasury Bills 66,445 66,445 - -
Total 695,418 519,593 - 175,825
Reconciliation of level 3 movement - financial assets at 31 July 2025
Total Equity investments Preference Fixed interest investments
£'000
£'000
share
£'000
investments
£'000
Opening fair value at 31 January 2025 175,825 110,447 15,533 49,845
Purchases 7,647 5,328 - 2,319
Sales (7,491) - - (7,491)
Transfer from level 1 7,500 7,500 - -
Total gains/(losses) included in gains on investments in the statement of
comprehensive income:
- on assets sold 8 - - 8
- on assets held at the end of the period (3,665) 2,724 (947) (5,442)
Closing fair value 179,824 125,999 14,586 39,239
Unquoted at Directors' estimate of fair value
Unquoted investments are valued in accordance with the International Private
Equity and Venture Capital Valuation ("IPEV") Guidelines. Their valuation
incorporates all factors that market participants would consider in setting a
price. The primary valuation techniques employed to value the unquoted
investments are earnings multiples, recent transactions and the net asset
basis. Valuations in local currency are translated into Sterling at the
exchange rate ruling on the Balance Sheet date.
Included within the Statement of Comprehensive Income as at 31 July 2025, is a
loss of £3,665,000 relative to the movement in the fair value of the unquoted
investments valued using IPEV valuation techniques.
The valuation techniques applied are based on the following assumptions:
Unquoted investments are usually valued by reference to the valuation
multiples of similar listed companies or from transactions of similar
businesses. Where appropriate discounts are then applied to those comparable
multiples to reflect differences in size and liquidity. These enterprise
values are then adjusted for net debt to arrive at an equity valuation. Where
companies are in compliance with the loan note terms these loans are generally
held at par plus accrued interest (where applicable) unless the enterprise
value suggests that the debt cannot be recovered.
9. Related party transactions
There have been no changes to the related party arrangements or transactions
as reported in the Statutory Annual Financial Report for the year ended 31
January 2025.
The Administrator, North Atlantic Investment Services Limited ("NAIS") is
regarded as a related party of the Company. The amounts incurred by NAIS and
Growth Financial Services Limited ("GFS") in respect of investment management
for the period are as follows:
Six months ended Six months ended Year ended
31 July 2025 31 July 2024 31 January 2025
£'000 £'000 £'000
Fees due to NAIS 2,276 2,177 4,355
Fees due to GFS 1,518 1,452 2,903
Performance fee 1,943 - -
Irrecoverable VAT thereon 39 - -
5,776 3,629 7,258
At 31 July 2025, £379,000 was payable to NAIS in respect of outstanding
management fees (31 July 2024: £363,000, 31 January 2025: £363,000). At 31
July 2025, there was £1,943,000 payable to GFS in respect of outstanding
performance fees (31 July 2024: £nil, 31 January 2025: £nil) net of VAT.
Fees paid to Directors, for the six months ended 31 July 2025 amounted to
£109,000 (six months ended 31 July 2024: £109,000; year ended 31 January
2025: £218,000).
At 31 July 2025, £18,000 was payable to Directors in respect of outstanding
fees (31 July 2024: £18,000, 31 January 2025 £18,000).
10. Post balance sheet events
Since the period end and up to 26 September 2025, the Company has bought back
225,000 shares for an aggregate consideration of £855,000.
Shareholder information
Financial calendar
Announcement of results and annual report May
Annual General Meeting
June
Half Yearly figures announced
September
Half Yearly Report posted
September
Share price
The Company's market share price is quoted daily in the Financial Times
appearing under "Investment Companies".
It also appears on:
SEAQ Ordinary Shares: NAS
Trustnet: www.trustnet.com
(http://www.trustnet.com)
Net asset value
The latest net asset value of the Company can be found on the Company's
website: www.nascit.co.uk (http://www.nascit.co.uk/)
Share dealing
Investors wishing to purchase more Ordinary Shares or dispose of all or part
of their holding may do so through a stockbroker. Many banks also offer this
service.
The Company's registrars are MUFG Corporate Markets. If you have a question
about your shareholding in the Company you should contact: MUFG Corporate
Markets, Central Square, 29 Wellington Street, Leeds LS1 4DL, by email:
shareholderenquiries@cm.mpms.mufg.com, or by telephone 0371 664 0300 and +44
(0) 371 664 0300 (international).
Changes of name or address must be notified to the registrars in writing at:
MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds LS1 4DL
Directors and advisers
Directors
Sir Charles Wake (Chairman)
Christopher Mills (Chief Executive)
Professor Fiona Gilbert
Lord Howard of Rising
G Walter Loewenbaum
Peregrine Moncreiffe
Julian Fagge
Administrator
North Atlantic Investment Services Limited
(Authorised and regulated by the Financial Conduct Authority)
6 Stratton Street Mayfair
London W1J 8LD
Telephone: 020 7640 3200
Financial Adviser and Stockbroker
Winterflood Investment Trusts
Riverbank House
2 Swan Lane
London EC4R 3GA
Registered Office
6 Stratton Street
Mayfair
London W1J 8LD
Telephone: 020 7640 3200
Registrars
MUFG Corporate Markets
Central Square
29 Wellington Street Leeds LS1 4DL
Auditors
RSM UK Audit LLP
25 Farringdon Street
London EC4A 4AB
Company Secretary Ben Harber
31 Orchard Avenue Woodham Addlestone
Surrey KT15 3EA
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