REG - Rights and Issues IT - Half-year Report
07/08/2025 07:00
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RNS Number : 3196U Rights and Issues Inv. Trust PLC 07 August 2025
RIGHTS AND ISSUES INVESTMENT TRUST PLC
Legal Entity Identifier (LEI): 2138002AWAM93Z6BP574
Half Yearly Results for the six months ended 30th June 2025
A copy of the Company's Half Yearly Financial Report for the six months ended
30th June 2025 will shortly be available to view and download from
www.jupiteram.com/rightsandissues (http://www.jupiteram.com/rightsandissues)
. Neither the contents of that website nor the contents of any website
accessible from hyperlinks on this website (or any other website) is
incorporated into or forms part of this announcement.
Printed copies of the Report will be made available to shareholders shortly.
Additional copies may be obtained from the Corporate Secretary - Apex Fund
Administration Services (UK) Limited, Hamilton Centre, Rodney Way, Chelmsford,
Essex CM1 3BY.
INTERIM DIVIDEND
An interim dividend of 12.25p per share has been approved by the Board and is
payable on 26th September 2025 to shareholders on the register as at 29th
August 2025 (ex-dividend 28th August 2025).
The following text is copied from the Half Yearly Financial Report.
HALF YEARLY FINANCIAL REPORT
for the six months ended 30th June 2025
Financial Highlights
Financial Highlights for the six months to 30th June 2025
Capital Performance
30th June 31st December
2025 2024
Total assets less current liabilities (£'000) 125,168 123,147
Ordinary Share Performance
30th June 31st December
2025 2024 % change
Mid market price (p) 2,150.0 2,380.0 (9.7)
Net asset value per share (p) 2,618.2 2,543.4 2.9
FTSE All-Share Index 4,772.8 4,467.8 6.8
FTSE All-Share Total Return Index 10,814.59 9,913.42 9.1
Dividends per share (p) 12.25 44.0
Discount to net asset value (%)(*) (17.9) (6.4)
Ongoing charges ratio (%)(*) 1.0 0.9
(*)For definitions of the above Alternative Performance Measures please refer
to the Glossary of Terms in the Half Yearly Report
Market Data
30th June
2025
Issued share capital (Ordinary shares of 25p each) 4,780,643
Total investment return† 4.3%
Total shareholder return†† (6.7%)
Annualised dividend yield 2.1%
† Source: Jupiter, Morningstar
†† Source: Trustnet
Chairman's Statement
I am pleased to present the Chairman's Statement for Rights and Issues
Investment Trust for the six months ended 30 June 2025. Despite continued
global economic uncertainty your Company has delivered a sound performance. In
the period we saw inflation and interest rates remain steady and sentiment
towards the small cap market continue to improve, albeit modestly. These
global economic factors as well as competitive pressures will, as ever,
challenge the management teams of our portfolio companies. The Company's
performance is largely driven by the concentration of its portfolio and its
active management over the long term. Our Investment Manager continues to
monitor our portfolio companies' ability to maintain their margins and market
share.
Net Asset Value & Share Price Returns
The Company's portfolio of investments delivered a positive capital return of
2.9% and a total return of 4.3% for the period. This is behind that of our
chosen benchmark, the FTSE All-Share Index, which delivered a capital return
of 6.8% and 9.1% on a total return basis, and the Deutsche Numis Smaller
Companies Index which returned 7.0%. The Company's performance is commented on
in more detail in the Investment Manager's report.
Your Company's shares performed less well, delivering a negative return of
(6.7%) (including dividends paid). During the period there was a significant
widening of the discount between the share price and Net Asset Value. A major
factor in this was the Company's inability to buy back shares following the
narrow defeat of the share buyback authority resolution at the Company's
Annual General Meeting in late March and again at the subsequent General
Meeting in early May.
Portfolio Activity
The investment portfolio was little changed over the period, with just one new
holding added towards the end of the half year:
JTC is a leading global administrator of institutional and private investment
funds. Led by founder Nigel Le Quesne and employing a 'shared ownership'
model, JTC has an excellent track record of both organic and inorganic growth.
The business is now one of the world's largest independent fund administrators
which means that it is ideally placed to benefit from the trend away from
bank-owned competition, as well as to realise economies of scale. Broader
market weakness has created what the Investment Manager views as a compelling
valuation entry point and the opportunity to own a high-quality business at an
attractive price.
Further details on the investment portfolio, stock selection and performance
can be found in the Investment Manager's review.
Discount Control
The Company's authority to extend what had been a routine business practice of
share buybacks going back many years lapsed at the Annual General Meeting
('AGM') in March. The Board sought to renew the authority again at a
subsequent general meeting in early May 2025, without success. The Board was
very disappointed that these resolutions were defeated by the narrowest of
margins. The resolution required in excess of 75% of the votes cast to be in
favour. At the May general meeting 60% of eligible shares were voted: 73.84%
of the votes were cast in favour and 26.16% against by, predominantly, a
single shareholder (and related interests), a result that indicates that a
very significant majority of shareholders would like to see the programme
continue.
Your Board strongly believes that the share buyback programme is in the best
interests of the Company and its shareholders. The buyback serves to narrow
the discount to Net Asset Value and reduce share price volatility. These
buybacks at the margin provide a useful mechanism for those shareholders
wanting to realise their investment whilst also providing an economic benefit
to remaining shareholders. The Board is consulting with its advisers with the
objective of finding an appropriate path to renew the authority and restart
the programme.
Dividends
The Directors are very aware of the importance of income to our shareholders
and therefore the Company will be paying an interim dividend of 12.25p
(2024:12.0p) per share, an increase of 2.1% over the corresponding dividend in
the prior year. The dividend will be paid on 26th September 2025 to
shareholders on the register at 29th August 2025.
Shareholder Engagement
Over the first half of the year your Board and the Company's advisors
maintained a regular dialogue with major shareholders, in addition to meeting
a number of them at our AGM and general meeting. The feedback we received was
consistent with previous years. Notably, the small size of the Board was
greatly appreciated, as was the continued involvement of Simon Knott.
Forthcoming Directorate Changes
As you may recall, Jonathan Roper has informed the Company of his intention to
step down from the Board at the next AGM. In light of this the Board will be
reviewing its composition and that of its committees with a view to finding a
suitable replacement by the end of the year. Jonathan has served on the board
for fourteen years and provided much thoughtful and valued support and advice.
Marketing
Our partnership with Jupiter continues to work well and we have seen a good
level of marketing activity with the purpose of raising awareness of the
Company to a wider audience. This proactive approach aims to enhance
visibility and attract potential investors. Over the course of the period
events were held that included wealth managers, professional fund managers and
private individuals via a range of traditional in-person activities, as well
as digital content and video tools, which you will be able to find on our
Investment Manager's website: www.jupiteram.com/rightsandissues.
(http://www.jupiteram.com/rightsandissues)
Outlook
After another period of significant volatility, it feels like markets have
found their feet again over recent weeks and seem to have become less
susceptible to reacting to every announcement coming out of Washington. While
we remain alert to the potential negative consequences of US trade policy, we
note that a degree of pragmatism seems to be emerging and therefore the risks
of a significant global slow-down have moderated somewhat.
In the UK we recognise that many economic challenges remain and that the
government's room for manoeuvre continues to be limited despite its large
majority in parliament. The bigger picture, however, is that inflation has
remained under control and interest rates have stabilised at a level which we
view as compatible with improved confidence and hence a recovery in growth.
Meanwhile, the government has wisely abandoned its policy of deliberately
talking the UK down in order to lower expectations.
Whilst we are aware of these and other factors, we will continue to encourage
our Investment Manager to seek out opportunities to invest in differentiated
companies operated by good management that they believe to be fundamentally
under-priced. There may also now be stronger macroeconomic forces that could
result in a fundamental reassessment of the pricing of the UK's smaller
companies' sector. Our commitment to rigorous risk management and disciplined
investment practices remains steadfast. The Board believes that our managers
at Jupiter have the skills and knowledge to identify these opportunities and
continue to be well placed to deliver value for your Company into the future.
Thank you for your continued support and confidence in Rights and Issues
Investment Trust.
Andrew Hosty
Chairman
6th August 2025
You can view or download copies of the Half Yearly and the Annual Reports from
the Company's website at www.jupiteram.com/rightsandissues
(http://www.jupiteram.com/rightsandissues)
The Half Yearly Report will also be made available to shareholders and copies
are available at the registered office of the Company on request.
Investment Manager's Review
Introduction
We are pleased to present our investment report for the first half of 2025 to shareholders of the Company. Overall, the Company's portfolio of investments delivered a positive total return for the period. The Company's shares fared less well as the discount to net asset value widened significantly. Portfolio activity has been limited in volatile market conditions, but one new holding was added towards the end of the half year.
Market backdrop
The UK equity market performed well over the period as a whole, with the FTSE All-Share Index Total Return Index1 ("FTAS") returning 9.1% and the Deutsche Numis Smaller Companies Index1 ("DNSCI") 7.0%. This overall performance belied significant volatility at times, especially around the introduction of Donald Trump's so-called 'Liberation Day' tariffs in early April. By contrast, equity markets remained remarkably sanguine about the outbreak of direct hostilities between Israel and Iran in June. Notwithstanding a short-lived spike in the oil price, this turned out to be the appropriate reaction as the US effectively enforced a ceasefire shortly afterwards.
Despite these threats to global trade, inflation has remained relatively benign and in line with market expectations. As a result, both policy and market interest rates have continued to moderate. The UK ten-year gilt yield finished the half modestly below where it started, with the two-year rate falling more significantly. The Bank of England delivered two base rate cuts as widely anticipated.
While UK consumer and business confidence remain subdued, there have been some signs of improving sentiment, particularly in the retail and hospitality sectors. After spending the first six months of the new parliament determinedly talking expectations down, the UK government has perhaps realised that this was in danger of becoming a self-fulfilling prophecy and therefore struck a more positive tone through the first part of this year. Clearly the public finances remain challenging, but given the UK's relatively strong position in the current global environment, hopefully a more optimistic mindset will translate into activity and growth.
Performance
The Company's investment portfolio delivered a total return2 of 4.3% for the period. While positive in absolute terms, this was behind both the FTAS, which returned 9.1%, and the DNSCI which returned 7.0%, and which is more representative of the portfolio's small and mid-cap investment universe. Given a widening of the discount between share price and NAV, the Company's shares performed significantly less well, delivering a negative return of (6.7%) (including dividends).
Given the highly concentrated nature of the portfolio, relative performance is principally a function of stock selection as opposed to sector or factor weights. The following individual investments were among the most significant contributors to performance.
Renold (+71%)
Manufacturer of industrial chains and transmissions Renold continued to deliver a strong operating performance through the period. More significantly for the share price, the company received two potential takeover offers in May, one of which became a recommended bid in June. This represents a satisfactory conclusion to what has been an excellent investment for the Company over recent years, although it also serves to highlight how lowly UK valuations are resulting in the loss of good businesses from our market.
Alpha (+37%)
Specialist FX and banking group Alpha also received an indicative takeover approach on the back of strong operational performance during the period. At the time of writing this has not yet become a formal offer and we remain open minded about valuation and whether we would support a takeover at this stage.
OSB (+36%)
Specialist buy-to-let mortgage lender OSB produced a strong performance over the first six months of the year as it delivered something of a strategic reset that drew a line under certain challenges that have affected the share price over recent years. This allowed the market to focus on OSB's highly attractive valuation and begin to take a more positive view of the investment case.
Treatt (-46%)
Flavours and fragrances business Treatt was the most significant detractor from performance over the period. Despite solid strategic progress under a new CEO, the business suffered from weak demand in the US and the impact of high citrus prices driving their customers to alternative flavourings. While we view these as temporary effects, we recognise that it will now take time for Treatt to reestablish credibility with the market.
Gamma Communications (-25%)
Business telecommunications group Gamma was also a significant detractor in the period. The company made a strategically important acquisition early in the year in Germany, with the aim of increasing the scale of their operations in a market that they see as key to growth in the future. Initial indications are that this has been well timed as activity there has picked up and largely offset softer conditions in the UK. Gamma also moved its listing from AIM to the UK main market during the period, which may have been somewhat disruptive to the shares. We continue to see good growth prospects for the company.
Portfolio changes
The portfolio was little changed over the period, with just one new holding added towards the end of the half year:
JTC is a leading global administrator of institutional and private investment funds. Led by founder Nigel Le Quesne and employing a 'shared ownership' model, JTC has an excellent track record of both organic and inorganic growth. The business is now one of the world's largest independent fund administrators which means that it is ideally placed to benefit from the trend away from bank-owned competition, as well as to realise economies of scale. Broader market weakness has created what we view as a compelling valuation entry point and the chance to own a high- quality business at an attractive price.
Summary and Outlook
Despite lagging the Company's benchmark, it is pleasing that the investment portfolio delivered a positive absolute return for the period. While the share price performance has been substantially weaker, we are focused on delivering investment returns as we believe that this will create the most value for shareholders over time.
After another period of significant volatility it feels like markets have found their feet again over recent weeks and are perhaps now less susceptible to every announcement coming out of Washington. While we remain alert to the potential negative consequences of US trade policy, we note that a degree of pragmatism seems to be emerging and therefore the risks of a significant global slow-down have moderated somewhat.
In the UK we recognise that many economic challenges remain and that the government's room for manoeuvre continues to be limited despite its apparently large majority in parliament. The bigger picture, however, is that inflation has remained under control and interest rates have stabilised at a level which we view as compatible with improved confidence and hence a recovery in growth. Meanwhile, the government has wisely abandoned its policy of deliberately talking the UK down in order to lower expectations.
In any kind of UK recovery, we think that equity valuations look compelling and will continue to attract investor interest, even if that comes in the form of takeover approaches as has been the case recently. We remain optimistic that public market investors will start to recognise the opportunity as well, leading to a broader re-rating of what remains a very unloved and under-owned asset class.
Matt Cable
Lead Manager
Tim Service
Investment Manager
6th August 2025
1 Both benchmarks excluding Investment Trusts
2 Increase in NAV plus dividends paid
PORTFOLIO STATEMENT
Details of the investments held within the portfolio as at 30th June 2025 are
given below by market value:
30th June 2025 31st December 2024
UK Investments Market Value Market Value
£000's % of Net Assets £000's % of Net Assets
Holdings Holdings
Renold 15,680,089 12,576 10.05 18,813,923 8,843 7.19
Telecom Plus 398,587 7,701 6.15 430,975 7,387 6.00
Macfarlane 6,437,647 7,596 6.07 7,090,653 7,587 6.16
Alpha Group International 237,986 7,580 6.06 241,738 5,633 4.57
Jet2 399,296 7,363 5.88 399,296 6,321 5.14
OSB 1,350,533 7,057 5.64 1,401,694 5,666 4.60
Hill & Smith 377,437 6,764 5.40 404,313 7,544 6.13
Elecosoft 4,026,834 6,483 5.18 4,479,758 6,540 5.31
Colefax 835,952 6,437 5.14 835,952 6,520 5.29
IMI 292,263 6,120 4.89 292,263 5,322 4.32
Vp 997,487 5,905 4.72 1,393,566 7,665 6.22
Gamma Communications 516,289 5,875 4.69 516,289 7,899 6.42
Oxford Instruments 245,735 4,659 3.72 245,735 5,296 4.30
Marshalls 1,545,642 4,150 3.31 1,545,642 4,536 3.68
GB 1,663,873 3,927 3.14 1,663,873 5,657 4.59
Foresight 877,203 3,890 3.11 877,203 3,588 2.91
RS 604,401 3,472 2.77 604,401 4,107 3.34
Treatt 1,281,009 3,318 2.65 1,281,009 6,232 5.06
Morgan Advanced Materials 1,500,000 3,300 2.64 1,500,000 4,080 3.31
Sthree 890,288 2,177 1.74 890,288 2,622 2.13
Norcros 523,489 1,434 1.15 318,554 812 0.66
Videndum 959,582 758 0.61 959,582 1,397 1.13
JTC 53,432 454 0.36 - - -
Dyson 1,000,000 32 0.02 1,000,000 31 0.03
Total Investments 119,027 95.09 121,285 98.49
Net current assets 6,141 4.91 1,862 1.51
Net Assets 125,168 100.00 123,147 100.00
Unless otherwise specified, the actual holdings are, in each case, of
ordinary shares or stock units and of the nominal value for which listing has
been granted.
Risks and uncertainties
Principal risks
The principal and emerging risks and uncertainties that could have a material
impact on the Company's performance have not changed from those set out on
pages 22 and 23 of the Annual Report for the year ended 31st December 2024.
Cautionary statement
This Half Yearly Report contains forward-looking statements that involve risk
and uncertainty. These have been made by the Directors in good faith based on
the information available to them at the time of their approval of this
Report.
The Board is mindful of the continuing uncertain outlook for the global
economy arising from the ongoing conflicts in Ukraine and the Middle East and
the market volatility arising from ad-hoc pronouncements by the Trump
Administration. The Company's assets and the potential level of revenue
derived from the portfolio remain exposed to macro-economic deteriorations.
The Directors, having considered the nature and liquidity of the portfolio,
the Company's investment objectives and projected income and expenditure, are
satisfied that the Company has adequate resources to continue in operational
existence for the foreseeable future and is financially sound.
Directors' Statement of Responsibility for the Half Yearly Financial Report
The Directors are responsible for preparing the Half Yearly financial report
in accordance with applicable law and regulations.
The Directors confirm that to the best of their knowledge:
■ the condensed set of financial statements has been prepared in accordance
with UK adopted International Accounting Standard 34 "Interim Financial
Reporting"; and
■ the Half Yearly management report includes a fair review of the
information required by DTR 4.2.7R and 4.2.8R. This report was approved on 6th
August 2025.
Andrew Hosty
Chairman
Statement of Comprehensive Income
for the six months ended 30th June 2025
Six months ended 30th June 2025 Six months ended 30th June 2024 Year ended 31st December 2024
Notes
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 2 1,808 - 1,808 1,780 - 1,780 3,313 - 3,313
Other operating income 2 28 - 28 52 - 52 108 - 108
Total income 1,836 - 1,836 1,832 - 1,832 3,421 - 3,421
Gains on fair value through profit and loss assets - 3,585 3,585 - 16,145 16,145 - 9,706 9,706
1,836 3,585 5,421 1,832 16,145 17,977 3,421 9,706 13,127
Expenses
Investment management fee 289 - 289 333 - 333 672 - 672
Other expenses 279 15 294 254 55 309 522 131 653
568 15 583 587 55 642 1,194 131 1,325
Profit before finance costs and taxation 1,268 3,570 4,838 1,245 16,090 17,335 2,227 9,575 11,802
Finance costs - - - - - - - - -
Profit before tax 1,268 3,570 4,838 1,245 16,090 17,335 2,227 9,575 11,802
Tax - - - - - - - - -
Profit after tax 1,268 3,570 4,838 1,245 16,090 17,335 2,227 9,575 11,802
Return per Ordinary share 26.4p 74.4p 100.8p 23.0p 297.9p 320.9p 42.1p 181.2p 223.3p
Return per share is calculated using the weighted average number of Ordinary
shares in issue during the period ended 30th June 2025 of 4,795,594 (30th June
2024: 5,402,043, 31st December 2024: 5,249,524).
The total column of this statement represents the Statement of Comprehensive
Income, prepared in accordance with International Financial Reporting
Standards as adopted by the UK. The supplementary revenue return and capital
return columns are both prepared under guidance published by the Association
of Investment Companies. All items in the above statement are those of the
single entity and derive from continuing operations.
The gain for the period disclosed above represents the Company's total
Comprehensive Income. The Company does not have any other Comprehensive
Income.
An interim dividend of 12.25p (2024: 12.0p) per share and amounting to
£585,629 (calculated as at 5th August 2025) (2024: £625,942) is payable on
26th September 2025 to shareholders on the register as at 29th August 2025
(ex- dividend 28th August 2025).
The financial information contained in this Half Yearly Financial Report does
not constitute statutory accounts as defined in Sections 434 - 436 of the
Companies Act 2006. The information for the six months to 30th June 2025 has
not been audited.
The information for the year ended 31st December 2024 has been extracted from
the latest published audited accounts which have been filed with the
Registrar of Companies. The report of the auditors on those accounts contained
no qualification or statement under Section 498 (2) or (4) of the Companies
Act 2006.
Statement of Financial Position
as at 30th June 2025
30th June 30th June 31st December
2025 2024 2024
£'000 £'000 £'000
Non-current assets
Investments - fair value through profit or loss 119,027 134,584 121,285
Current assets
Other receivables 844 1,481 457
Cash and cash equivalents 5,575 4,130 1,893
6,419 5,611 2,350
Total assets 125,446 140,195 123,635
Current liabilities
Other payables 278 598 488
Total assets less current liabilities 125,168 139,597 123,147
Net assets 125,168 139,597 123,147
Equity attributable to equity holders
Called up share capital 1,195 1,319 1,210
Capital redemption reserve 1,060 936 1,045
Retained reserves:
Capital reserve 83,652 83,415 81,693
Revaluation reserve 36,809 51,569 36,483
Revenue reserve 2,452 2,358 2,716
Total equity 125,168 139,597 123,147
Net asset value per share
Ordinary shares 2,618.2p 2,646.7p 2,543.4p
The number of Ordinary shares in issue as at 30th June 2025 was 4,780,643
(30th June 2024: 5,274,364 , 31st December 2024: 4,841,803).
Statement of Changes in Equity
for the six months ended 30th June 2025
Share capital Capital Redemption Capital reserve Revaluation reserve Revenue reserve Total
£'000 reserve £'000 £'000 £'000 £'000
£'000
For the six months ended 30th June 2025
Balance at 31st December 2024 1,210 1,045 81,693 36,483 2,716 123,147
Profit for the period - - 3,244 326 1,268 4,838
Total recognised income and expense 1,210 1,045 84,937 36,809 3,984 127,985
Ordinary shares bought back and cancelled (15) 15 (1,285) - - (1,285)
Dividends (Note 3) - - - - (1,532) (1,532)
Balance at 30th June 2025 1,195 1,060 83,652 36,809 2,452 125,168
Share capital Capital Redemption Capital reserve Revaluation reserve Revenue reserve Total
£'000 reserve £'000 £'000 £'000 £'000
£'000
For the six months ended 30th June 2024
Balance at 31st December 2023 1,405 850 84,416 41,873 2,815 131,359
Profit/(loss) for the period - - 6,394 9,696 1,245 17,335
Total recognised income and expense 1,405 850 90,810 51,569 4,060 148,694
Ordinary shares bought back and cancelled (86) 86 (7,395) - - (7,395)
Dividends (Note 3) - - - - (1,702) (1,702)
Balance at 30th June 2024 1,319 936 83,415 51,569 2,358 139,597
Share capital Capital Redemption Capital reserve Revaluation reserve Revenue reserve Total
£'000 reserve £'000 £'000 £'000 £'000
£'000
For the year ended 31st December 2024
Balance at 31st December 2023 1,405 850 84,416 41,873 2,815 131,359
Profit/(loss) for the year - - 14,965 5,390 2,227 11,802
Total recognised income and expense 1,405 850 99,381 36,483 5,042 143,161
Ordinary shares bought back and cancelled (195) 195 (17,688) - - (17,688)
Dividends (Note 3) - - - - (2,326) (2,326)
Balance at 31st December 2024 1,210 1,045 81,693 36,483 2,716 123,147
Cash Flow Statement
for the six months ended 30th June 2025
30th June 30th June 31st December 2024
2025 2024 £'000
£'000 £'000
Cashflows from operating activities
Profit before tax 4,838 10,886 11,802
Adjustments for:
Gains on investments (3,585) (9,696) (9,706)
Purchases of investments (940) (13,922) (23,495)
Proceeds on disposal of investments 6,783 25,477 41,910
Operating cash flows before movements in working capital 7,096 12,745 20,511
Increase in receivables (387) (925) 99
(Decrease)/increase in payables (210) 356 62
Net cashflows from operating activities 6,499 12,176 20,672
Cashflows from financing activities
Ordinary shares bought back (1,285) (7,395) (17,504)
Dividends paid (1,532) (1,702) (2,326)
Net cash used in financing activities (2,817) (9,097) (19,830)
Net increase in cash and cash equivalents 3,682 3,079 842
Cash and cash equivalents at beginning of year 1,893 1,051 1,051
Cash and cash equivalents at end of period 5,575 4,130 1,893
Notes to the Financial Statements
for the six months ended 30th June 2025
1. Accounting Standards
The half yearly financial statements for the period ended 30th June 2025 have
been prepared in accordance with the Disclosure and Transparency Rules
sourcebook of the Financial Conduct Authority and with the UK adopted
International Accounting Standard 34 "Interim Financial Reporting". The
accounting policies applied and methods of computation in this interim
statement are consistent with those used in the Company's latest published
annual financial statements.
Significant accounting policies
a. Accounting convention
The accounts are prepared under the historical cost basis, except for the
measurement of fair value of investments.
b. Adoption of new IFRS standards
There have been minor amendments to IAS 1 and 7 and IFRS 7 and 16 which were
effective for annual periods beginning on or after 1st January 2024 and have
not had any material impact on the accounts. Amendments to IAS 21 (The Effects
of Changes in Foreign Exchange Rates) are effective for annual periods
beginning on or after 1st January 2025 and are not anticipated to have any
material impact on the accounts.
c. Income
Dividend income is included in the financial statements on the ex-dividend
date. All other income is included on an accruals basis.
d. Expenses
All expenses are accounted for on an accruals basis. Expenses are charged
through the revenue account except as follows:
■ Expenses which are incidental to the acquisition of an investment are
included within the cost of the investment.
■ Expenses which are incidental to the disposal of an investment are
deducted from the disposal proceeds of the investment.
e. Taxation
The charge for taxation is based on the net revenue for the year. Deferred
taxation is recognised in respect of all timing differences that have
originated but not reversed at the statement of financial position date.
Investment trusts which have approval under section 1158 of the Corporation
Tax Act 2010 are not liable for taxation on capital gains.
f. Dividends
Dividends payable to shareholders are recognised in the financial statements
when they are paid or, in the case of final dividends, when they are approved
by the shareholders.
g. Cash and cash equivalents
Cash comprises cash in hand and deposits payable on demand. Cash equivalents
are short-term highly liquid investments that are readily convertible to known
amounts of cash.
h. Investments
Investments are classified as fair value through profit or loss as the
Company's business is investing in financial assets with a view to profiting
from their total return in the form of interest, dividends or capital growth.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Statement of
Comprehensive Income as "Gains or losses on investments held at fair value
through profit or loss". Also included within this heading are transaction
costs in relation to the purchase or sale of investments.
All investments, classified as fair value through profit or loss, are
further categorised into the following fair value hierarchy:
Level 1 - Unadjusted prices quoted in active markets for identical assets and
liabilities.
Level 2 - Having inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3 - Having inputs for the asset or liability that are not based on
observable data.
Investments traded on active stock exchange markets are valued at their fair
value, which is determined by the quoted market bid price at the close of
business at the statement of financial position date. Where trading in a
security is suspended, the investment is valued at the Board's estimate of its
fair value.
Unquoted investments are valued by the Board at fair value using the
International Private Equity and Venture Capital Valuation Guidelines.
2. Income
30th June 30th June 31st December
2025 2024 2024
£'000 £'000 £'000
Income from investments
Franked investment income 1,808 1,780 3,313
Deposit interest 28 52 108
Total income 1,836 1,832 3,421
3. Dividends
30th June 30th June 31st December
2025 2024 2024
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in the relevant period:
Interim dividend for the year ended 31st December 2024 of 12p per share - - 624
Final divided for the year ended 31st December 2024 of
32p per share (year ended 31st December 2023: 31.25p) 1,532 1,702 1,702
1,532 1,702 2,326
30th June
2025
£'000
Proposed interim dividend of 12.25p per share 586
This proposed interim dividend was approved by the Board on 6th August 2025,
has been calculated based on shares in issue at 5th August 2025, being the
latest practicable date prior to publication of this report and has not been
included as a liability at 30th June 2025.
4. Valuation of financial instruments
IFRS 13 requires the Company to classify fair value measurements using a fair
value hierarchy that reflects the significance of inputs used in making the
measurements. The valuation techniques used by the Company are explained in
the accounting policies note 1 Investments, as set out in the Company's Annual
Report and Financial Statements for the year ended 31st December 2024.
The fair value hierarchy has the following levels:
Level 1 - Unadjusted prices quoted in active markets for identical assets and
liabilities.
Level 2 - Having inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (ie as prices) or
indirectly (ie derived from prices).
Level 3 - Having inputs for the asset or liability that are not based on
observable data.
30th June 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
UK Equity Listed 76,335 - - 76,335
AIM traded stocks 42,661 - - 42,661
Unlisted stock - - 31 31
Net fair value 118,996 - 31 119,027
30th June 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
UK Equity Listed 89,360 - - 89,360
AIM traded stocks 45,186 - - 45,186
Unlisted stock - - 38 38
Net fair value 134,546 - 38 134,584
31st December 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
UK Equity Listed 79,474 - - 79,474
AIM traded stocks 41,780 - - 41,780
Unlisted stock - - 31 31
Net fair value 121,254 - 31 121,285
There were no transfers between Level 1 and Level 2 during the periods.
The fair value of the Company's investment in Dyson which is classified above
as Level 3, is determined using the outsourced provider S&P Global with
their valuation techniques and price assessed and agreed by the governance
process in place by the Unlisted Assets Valuation Committee of the Investment
Manager and ratified by the Board.
5. Related Party Transactions
Under IAS 24, the Directors have been identified as related parties. Their
fees and interests for the year ended 31st December 2024 have been disclosed
in the Directors' Annual Remuneration Report within the 2024 Annual Report and
Financial Statements.
6. Going Concern
The Company's assets comprise mainly readily realisable equity securities and
cash and the value of its assets is significantly greater than its
liabilities. Additionally, after reviewing the Company's budget, including the
current financial resources, projected expenses and its medium-term plans,
the Directors believe that the Company's resources are adequate for it to
continue in operational existence for the foreseeable future.
Based on the above, the Board is satisfied that it is appropriate to continue
to adopt the going concern basis in preparing the financial statements. The
Board reported on the principal risks and uncertainties faced by the Company
in the Annual Report and Financial Statements for the year ended 31st December
2024.
Enquiries:
Jupiter Unit Trust Managers Limited
Nick Black, Jupiter Investment Trusts Email: investmentcompanies@jupiteram.com
(mailto:investmentcompanies@jupiteram.com)
Cavendish Capital Markets Limited
Andrew Worne / Tunga Chigovanyika - Corporate Finance Tel: +44 (0) 207 908 6000
Pauline Tribe - Sales Tel: +44 (0) 207 908 6000
Apex Fund Administration Services (UK) Limited
cosec-uk@apexgroup.com Tel: +44 (0) 1245 398950
END
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