REG - RIT Cap. Partners - Half-year Report
07/08/2025 07:00
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RNS Number : 3107U RIT Capital Partners PLC 07 August 2025
7 August 2025
RIT Capital Partners plc ("RIT" or the "Company")
Results for the half-year ended 30 June 2025
Positive returns from all three investment pillars, led by Private Investments
10.3% increase in dividend to 43p per share, representing 12th consecutive
year of dividend increases
· The Company's Half-Yearly Financial Report is available here:
http://www.rns-pdf.londonstockexchange.com/rns/3107U_1-2025-8-6.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3107U_1-2025-8-6.pdf)
Performance highlights
· Delivered Net Asset Value (NAV) per share total return of 3.4%
· Positive returns from all three investment pillars - Quoted Equities, Private
Investments and Uncorrelated Strategies - led by Private Investments
· Private Investments generated a return of 9.0% and contributed 3.3% to NAV
o Strongest year since 2021 for Private Investments exits, with £175m of
realisations in the first six months of 2025, representing 4.7% of NAV
o Significant 29% return generated by direct investments. Private funds also
contributed positively with a 3% return and delivered healthy distributions
o Benefitted from exposure to sectors such as AI and fintech, through the
partial realisation of Scale AI and the sale of Xapo. Additionally, the
successful IPO of Webull contributed positively to NAV overall
o At 30 June 2025, Private Investments represented 30.9% of NAV, aligned with
our target range
· Quoted Equities generated a return of 4.9% and contributed 2.4% to NAV
o Strong performance from our Japanese managers which continued to outperform
Japanese equity markets. Our European aerospace and defence holdings and our
direct positions such as Constellation Energy and National Grid also stood out
in terms of performance
· Uncorrelated Strategies generated a return of 3.0% and contributed 0.9% to NAV
o Led by exposure to absolute return and credit funds as well as gold. This was
partially offset by a detraction from our investment in California carbon
credits, as well as our government bonds and interest rate driven investments
· Careful risk management, through the use of currency hedges, helped mitigate
the impact on the portfolio of a near -10% move of the US dollar relative to
sterling. Net of currency hedging the overall impact on the portfolio was
-3.2%
· In the last 10 years, RIT has generated a NAV per share total return of 102.7%
· Since RIT's listing in 1988, the annualised NAV per share total return has
increased at 10.4% per annum, and the share price total return has compounded
at 10.3% per annum
Capital allocation
· A dividend of 21.5p per share was paid to shareholders during the period with
a further interim dividend of 21.5p per share to be paid in October 2025
· Continued active buyback programme, acquiring £52 million or 2.7 million
shares in the half year ended 30 June 2025, adding an estimated 0.5% to the
NAV per share total return
· Since 2023, RIT has bought back 10% of its share capital, adding an estimated
2.5% to the NAV per share return
Philippe Costeletos, Chairman of RIT Capital Partners plc, said:
"The first half of 2025 saw further positive momentum for RIT and we are
encouraged by the breadth of contribution across our portfolio despite the
challenging market environment. It was a particularly strong start to the year
for our Private Investments pillar where we realised several direct private
investments at levels above previous carrying values, and our private funds
portfolio continued to compound value. These outcomes reflect years of
thoughtful underwriting and the structural advantage of our permanent capital
base, which enables us to hold our investments until we believe conditions
favour an exit."
Maggie Fanari, Chief Executive Officer of J. Rothschild Capital Management,
said:
"We're pleased to report positive year-to-date performance across all three
investment pillars, led by Private Investments which delivered a significant
return of 9% and included a superior 29% return generated from our direct
private investments. Our strong performance highlights the benefits of our
exposure to the transformative megatrends shaping the global economy including
Enterprise Technology, FinTech, Healthcare and Life Sciences."
About RIT Capital Partners
RIT Capital Partners plc ("RIT") was founded as the Rothschild Investment
Trust in 1971. Today, RIT is a member of the FTSE250 Index and one of the UK's
largest investment trusts with total assets of approximately £4 billion.
RIT's purpose is to grow your wealth meaningfully over time through a
diversified and resilient global portfolio across quoted equities, private
investments and uncorrelated strategies. Since listing on the London Stock
Exchange in 1988, RIT has generated a total share price return of 10.3% per
annum for its shareholders. RIT is managed by its wholly owned subsidiary, J.
Rothschild Capital Management Limited (JRCM).
For more information:
J. Rothschild Capital Management (Manager):
T: 020 7647 8565
E: investorrelations@ritcap.co.uk (mailto:investorrelations@ritcap.co.uk)
Deutsche Numis (Joint broker):
Nathan Brown / Vicki Paine
T: 020 7260 1000
JP Morgan Cazenove Limited (Joint broker):
William Simmonds
T: 020 3493 8000
Brunswick Group (Media enquiries):
Nick Cosgrove / Sofie Brewis
T: 020 7404 5959
RIT@BrunswickGroup.com (mailto:RIT@BrunswickGroup.com)
www.ritcap.com (http://www.ritcap.com)
A description of all terms used above, including further information on the
calculation of Alternative Performance Measures (APMs) is set out in the
Glossary and APMs section at the end of this RNS.
THE FOLLOWING IS EXTRACTED FROM THE COMPANY'S HALF-YEARLY FINANCIAL REPORT
Key company data 30 June 2025 31 December 2024 Change
NAV per share 2,680p 2,614p 2.5%
Share price 1,944p 1,986p -2.1%
Premium/(discount) -27.4% -24.0% -3.4% pts
Net assets £3,750m £3,731m 0.5%
Gearing(1) 5.8% 8.9% -3.1% pts
Ongoing charges figure(1) n/a 0.76% n/a
First interim dividend (April) 21.5p 19.5p 10.3%
Second interim dividend (October) 21.5p 19.5p 10.3%
Total dividend in year 43.0p 39.0p 10.3%
Since
inception,
Performance history June YTD 1 Year 3 Years 5 Years 10 Years 1988
RIT NAV per share total return(1) 3.4% 8.5% 11.0% 48.7% 102.7% 3,794%
CPI plus 3.0% per annum 3.3% 6.6% 24.1% 47.2% 84.6% 708%
ACWI (50% £) 3.9% 10.6% 50.9% 78.9% 171.6% 1,430%
RIT share price total return(1) -1.0% 9.2% -13.8% 19.5% 50.7% 3,645%
FTSE 250 Index(2) 6.9% 10.2% 27.9% 45.8% 62.7% 1,872%
1 The Group's designated Alternative Performance Measures (APMs) are the NAV per
share total return, share price total return, gearing, and ongoing charges
figure (OCF).
2 RIT's shares are a constituent of the FTSE 250 Index, which is not considered
a Key Performance Indicator (KPI). Before June 1998, when the total return
index was introduced, the index was measured using a capital-only version.
CHAIRMAN'S STATEMENT
Introduction
In my first letter to you as Chairman of RIT Capital Partners plc, I want to
start by saying how honoured I am to serve in this role. RIT has always stood
for and exemplified a commitment to thoughtful, long-term investing and
building enduring wealth. As your Chairman, and a shareholder myself, I feel
both the privilege and responsibility of helping to steward that legacy going
forward.
The first half of 2025 was marked by significant global market volatility,
driven by ongoing geopolitical tensions and slowing macroeconomic indicators
across most major economies. Against this backdrop, I am pleased to report
on a positive first half of the year for your Company.
Investment performance
Our Net Asset Value (NAV) per share increased by 3.4% (with dividends
reinvested), closing the period at 2,680p at 30 June 2025. Over the same
timeframe, our inflation hurdle, CPI plus 3%, measured 3.3%, and our equity
index, the ACWI (50% £), was 3.9%. We are encouraged by the breadth of
contribution across our portfolio despite the market volatility. All three of
our strategic investment pillars - Quoted Equities, Private Investments and
Uncorrelated Strategies - delivered positive returns, with the largest
contribution coming from Private Investments.
We realised several direct private investments at levels above previous
carrying values, while our private funds portfolio continued to compound
value. These outcomes reflect years of thoughtful underwriting and the
structural advantage of our permanent capital base, which enables us to hold
our investments until we believe conditions favour an exit.
Over the past 12 months to 30 June 2025, our NAV per share total return
increased by 8.5% (ACWI (50% £): 10.6% and CPI plus 3%: 6.6%). Further
details on our NAV performance, investment approach and portfolio are set out
in the Manager's Report.
Share price and discount
Despite the positive NAV development, our share price ended the six months to
30 June 2025 at 1,944p, with the discount widening modestly. This represented
a total return to shareholders (with dividends reinvested) of -1.0%, compared
to 9.2% over the past 12 months. The Board understands that narrowing the
prevailing discount is of paramount importance to shareholders and remains
committed to compounding NAV per share over time, maintaining transparency,
and allocating capital judiciously.
Capital allocation
An area of the Board's recent focus has been our exposure to private
investments and we have taken meaningful steps on this front. I am encouraged
that our increased disclosures around the Private Investments pillar has been
well received in our conversations with shareholders over the past year and I
can report a further reduction in the portfolio weighting to 30.9% of NAV at
the end of June 2025. The net cash surplus generated from this investment
pillar has been a key contributor in funding both buyback activity and
dividends.
At the end of June 2025, the total share capital repurchased through buybacks
since the start of 2023 was approximately 10%, equivalent to almost £300m.
This represents one of the largest buyback programmes in the industry. The
Board remains committed to the allocation of capital into our stock, when
appropriate, and will seek to balance the one-time gains from buying our
shares with the need to reinvest in long-term investments at a portfolio
level. Fundamentally, we remain a long-term investor with the objective of
generating superior returns over time.
At the same time, we continue our progressive dividend policy and recognise
that, for many of our shareholders, our approach provides a helpful source of
growing income. During the first half of the year, we paid an interim dividend
of 21.5p per share (approximately £30m) and we have declared a second interim
dividend of the same amount, to be paid to shareholders in October. This will
provide a total dividend in 2025 of 43p per share, an increase of 10.3% since
2024 and representing the 12th consecutive year of dividend increases.
Governance and leadership
Earlier this year, Sir James Leigh-Pemberton retired from his role as Chairman
due to the increased demands of his wider commitments. On behalf of the Board
and Manager, I wish to thank him again for his exceptional stewardship during
his tenure and wish him the very best.
At JRCM, Maggie Fanari has taken on full responsibility for the entire
portfolio and investment team. The Board has strong confidence in her
leadership, sound judgement and strategic vision. We believe that her global
perspective and deep investment experience - combined with the strength of a
talented team and their long-term alignment with shareholders - position the
Manager well to drive continued value creation.
Shareholder engagement
It was a pleasure to see so many of you at our AGM at Spencer House in May. We
valued your active participation and constructive feedback at the event and
were pleased that all resolutions were passed by >99%.
More broadly, we continue to focus on investor engagement and marketing to
better inform shareholders around our objectives and strategy, as well as
create sustained demand for the Company's shares. During the first half of the
year, the Manager further enhanced disclosure for investors both in
presentations and across the website - for example, by publishing a dedicated
Private Investments presentation (available on our website) that received
positive feedback.
There are plans underway to build on this momentum in the second half of the
year.
Looking ahead
Looking to the second half of the year and into 2026, we expect to see further
volatility as global markets continue to be sensitive to ongoing geopolitical
issues, a lower growth environment and potential tariff escalations. That
said, we remain optimistic. This challenging backdrop brings great
opportunities for RIT's unconstrained and diversified approach, which has led
our portfolio to generate double-digit returns over the cycles while managing
risk. Our permanent capital base is a true structural advantage. It enables
us to hold high-conviction investments across public and private markets
through short-term volatility and to realise them at what we believe to be the
most opportune time.
We will continue to manage the portfolio with a long-term mindset - aiming to
protect capital and compound value over time. That balance, applied
consistently, has served shareholders well since our inception.
While we believe that sustained positive NAV performance is essential to
support share price demand, we also view disciplined capital allocation as a
fundamental and ongoing responsibility of the Board. It is an integral part of
our role as stewards of shareholder capital and, together with continued
engagement, forms a key element in our efforts to narrow the discount and
deliver long-term value for our shareholders.
I want to thank you, our shareholders, for your loyalty and support and I look
forward to continuing our engagement in the second half of this year.
Yours,
Philippe Costeletos
Chairman
CEO LETTER
Dear Shareholders,
During the first half of 2025, US tariff threats and geopolitical tensions
weighed heavily on investor sentiment, driving broad-based volatility across
asset classes and currencies. This triggered a V-shaped recovery in US
equities and an emerging structurally bearish view on the US dollar.
Our year-to-date performance reflected appropriate caution, exercised in the
earlier part of the year when the portfolio was shielded from the excesses of
the market sell off, while still enabling healthy participation in the
subsequent market rally.
A multi-polar world rewards selective diversification
In this environment, we benefitted from our diversified and resilient global
portfolio. Our flexibility to adjust our asset mix across investment
strategies and geographies positioned us well to effectively navigate and
capture evolving market dynamics whilst keeping focus on our longer-term
structural trends.
Our portfolio delivered NAV per share total return of 3.4%, with positive
returns from all three investment pillars. Realisations drove performance in
Private Investments, while in Quoted Equities gains were led by our Japanese
managers and European aerospace and defence holdings. Absolute return and
credit funds, our non-equity `diversifiers', produced strong results within
Uncorrelated Strategies.
The weak US dollar was the biggest detractor from returns, seeing a -10% move
against sterling. Careful risk management using currency hedges helped
decrease the overall impact on the portfolio to -3.2%. Nonetheless,
this remained the largest headwind to portfolio return.
Whilst confidence in the case for US exceptionalism has somewhat diminished,
it nonetheless remains at the forefront of global innovation and over half of
our total portfolio is invested in the US. This is driven by our conviction
that artificial intelligence (AI) and digital transformation are no longer
confined to the tech sector alone, but are accelerating change across
traditional industries creating new sources of growth.
Notwithstanding this, we continue to diversify further into Europe and Asia in
response to the ongoing shift toward a multi‑polar world, where economic
influence is increasingly geographically dispersed, reshaping supply chains
and capital flows. Our broader global positioning has served us well,
particularly in Quoted Equities where our international specialist managers
outside the US bring deep local insight and sector expertise. We expect it to
play an even greater role as paradigms shift, triggered in part by evolving
US trade policies.
Update on our Private Investments pillar
Given concerns about Private Equity and growth investments in general, and
particularly the pace and valuations of realisations, we have been pleased
with our results in our Private Investments pillar over this half-year period.
In addition to these successes, we remain focused on our highest conviction
opportunities and aim to return to exposure levels consistent with our
historic average. Today, our top five investments in both private direct and
private funds represent over 60% of each portfolio. During the period, our
allocation to Private Investments has decreased further following substantial
realisations, even with very strong performance from our direct investments.
We continue to optimise the portfolio so that it is self-funding over the
longer-term.
Private Investments benefitted from improved regulatory conditions in the
period, supporting merger and acquisitions (M&A) and initial public
offering (IPO) activity. We realised significant value across favoured themes
including artificial intelligence (Scale AI), cryptocurrency (Xapo), fintech
(Webull) and cybersecurity (Wiz).
The first half of 2025 marked our strongest period since 2021 for Private
Investment exits which totalled £175m in value - equivalent to 4.7% of NAV
and exceeding the total value of our realisations for the 2024 financial year.
Our allocation to Private Investments reduced from 33.4% to 30.9% and by
almost 10% since 2022, bringing us much closer to our historical average of
25% and within our Board's guidance to target a range of 25-33% of NAV.
Our portfolio is well diversified by vintage and sector and a significant
proportion is mature. We offer exposure to high-quality companies such as
SpaceX, Stripe and Epic Systems which are typically inaccessible to most
investors. These market leaders are compounding at strong rates of return and
are widely regarded as the standout performers of the previous and current
market cycles.
In the six months to 30 June 2025, Private Investments delivered a return of
9%, with direct investments generating a return of 29%. Over the past decade,
our Private Investments pillar has achieved an annualised return of 15%,
driven by a combination of strong external manager selection and direct
investments.
Team update
After five and a half years, our Chief Investment Officer Nicholas Khuu has
decided that the time is right to pursue new challenges. We thank him for his
many contributions and wish him all the best with the next step in his career.
I will assume responsibility for investment decisions as CEO.
Our Chief Financial and Operating Officer Andrew Jones retired in June
following 17 years of dedicated service. He is being succeeded by Andrew
Holloway, who joins from Deutsche Numis, where he was appointed CFO in 2018.
Other senior appointments included Richard Lam as Global Head of Private Funds
and Cyril Martinez as Chief Strategy Officer.
These hires add to our deep bench of existing talent, further strengthening
the team driving our business forward.
Investor engagement
Proactive and regular shareholder engagement continues to be an area of focus
for me and for the business. In the first half, we delivered a comprehensive
programme of shareholder meetings and further enhanced our investor materials
to provide more clarity and depth on the portfolio in response to investor
feedback. We fully intend to keep up this momentum with further roadshows,
more digital outreach and participation in webinars and retail investor
conferences throughout the remainder of 2025 and beyond.
Outlook
Our investment strategy is well-placed for today's environment, combining a
long-term perspective with the agility to act decisively in volatile and
changing markets. Our approach is prudent, disciplined and focused on
generating differentiated returns and capital growth for our shareholders over
time.
Our edge lies in a set of enduring advantages. Our network, built up over
decades, provides access to exclusive investment opportunities unavailable to
most passive index trackers or traditional managers. Our experienced team
works alongside leading specialist fund managers - many closed to new
investors - to identify compelling investment themes. Our flexible mandate
allows us to invest across asset classes and geographies, while our permanent
capital enables us to realise investments when we believe conditions are
most favourable.
These advantages enable us to build a diversified and resilient portfolio
designed to perform through market cycles and deliver equity-like returns with
lower risk. Since inception RIT has delivered 10.4% average annualised returns
with less risk than major equity markets. Our portfolio has captured
approximately 72% of positive monthly market moves while limiting downside to
40% of market declines over that time, demonstrating our ability to deliver
consistent risk-adjusted returns.
Although we are pleased with the portfolio's progress to date, the discount,
which currently implies a material discount for our Private Investments
portfolio, remains a source of frustration. However, as we have demonstrated
over the last 18 months in particular, the Private Investments portfolio has
generated substantial returns for shareholders through positive performance
and recent exits. In response to this discount, we have bought back 10% of our
share capital since 2023, adding an estimated 2.5% in accretion to our NAV.
We're pleased to provide more detail around our broad performance, portfolio
and outlook in the Manager's Report to follow.
Thank you for your continued support.
Yours sincerely,
Maggie Fanari
Chief Executive Officer, J. Rothschild Capital Management Limited
MANAGER'S REPORT - EXTRACTS
Performance Highlights
Our NAV per share total return for the first half of the year was 3.4%, with
positive performance across all three investment pillars.
During a period of significant market volatility, the portfolio outperformed
our absolute reference hurdle, CPI plus 3%, at 3.3%, and lagged the
fully-invested equity index MSCI ACWI (50% £), which was up 3.9%.
Portfolio overview
All three of our strategic investment pillars delivered positive returns, with
the largest contribution coming from our Private Investments pillar. These
positive contributions were generated by a diverse set of return drivers:
● The Quoted Equities pillar contributed 2.4% to our NAV, led by
our Japanese managers and, within our quality theme, European aerospace and
defence, as well as certain direct positions with strong results, such as
Constellation Energy and National Grid. Performance was partially offset on
our small-to-medium-sized companies (SMID-cap) and biotech themes.
● Private Investments contributed 3.3% to performance,
benefitting from realisations as investors embraced AI and cryptocurrency.
Examples included Scale AI, where Meta purchased a 49% stake in the company,
and our sale of Xapo, one of the first cryptocurrency banks globally.
Additionally Webull, the popular commission free trading platform, had a
successful IPO during the period. The private funds book also contributed
positively and delivered healthy distributions.
● The Uncorrelated Strategies pillar contributed 0.9%, led by
our exposure to absolute return and credit funds, with a modest offset from
our California carbon credits and government bonds and interest rate driven
investments.
During the period sterling rose nearly 10% against the US dollar due to the
ongoing uncertainty around US trade and economic policy. Although hedging
activities helped mitigate the overall impact on the portfolio to -3.2%, this
was nonetheless the largest headwind from portfolio returns. The NAV per share
return benefitted from the estimated accretion benefit of buying back shares
at a discount to NAV, offset by costs (including the interest paid on our
borrowings).
Asset allocation, returns and contribution
Asset category December 2024 June 2025 2025 YTD 2025 YTD
% NAV(1) % NAV(1) Return(2) % Contribution
Quoted Equities(3) 46.2% 45.8% 4.9% 2.4%
Private Investments(3) 33.4% 30.9% 9.0% 3.3%
Uncorrelated Strategies 23.8% 21.0% 3.0% 0.9%
Currency -1.1% 1.3% n/a -3.2%
Total investments 102.3% 99.0% n/a 3.4%
Liquidity, borrowings and other -2.3% 1.0% n/a 0.0%(4)
Total 100.0% 100.0% 3.4% 3.4%
1 The % NAV reflects the market value of the positions (excluding notional
exposure from derivatives).
2 Returns are estimated, local currency returns, taking into account
derivatives.
3 Included in the % NAV is an adjustment of £124m/3.3% to reallocate quoted
positions held within funds (December 2024: £159m/4.3%). The return from
these positions is in Private Investments.
4 Including interest, expenses, and estimated accretion benefit of 0.5% from
share buybacks (2024: 0.8%).
Buybacks
Our strong conviction in the RIT portfolio underpins the ongoing execution of
the Board's share buyback policy, where we continue to capitalise on the
discount to our underlying NAV. In the period to June, we repurchased £52
million of shares, adding an estimated 0.5% in accretion to our NAV per share
total return. Since 2023, we have bought back approximately 10% of our total
share capital, adding an estimated 2.5% benefit to our NAV per share return
over this time.
Balance sheet
Enhancing shareholder returns is a top priority. We aim to achieve this by
maintaining a healthy balance sheet and through the disciplined use of
leverage. With £227m in liquidity balances, £100m in committed but undrawn
facilities and a substantial allocation to liquid investments, we are well
positioned to meet liquidity demands and respond quickly to market
opportunities. During the year, we secured a £100m, three-year facility with
SMBC Bank International plc. Considering our cash balances and £353m in drawn
borrowings, our gearing ratio at 30 June was 5.8%, calculated using the latest
guidance from the Association of Investment Companies (AIC).
Outlook
Looking ahead to the second half of 2025 and beyond, we believe the portfolio
is well positioned to benefit from two megatrends, technology diffusion and a
multi-polar world.
The first half of 2025 brought turbulence across global markets against a
backdrop of trade policy uncertainty and geopolitical tensions. While we
expect to see some of this uncertainty continue into the second half of the
year, the global economy is still growing, albeit at a slower pace, creating
investment opportunities.
Ongoing trade tariff negotiations continue to impact markets and influence the
direction of inflationary pressures. Valuations remain historically high, and
price risk may linger in the near-to-medium term, especially for US equities.
In this environment, we believe that companies, whether private or public,
with strong competitive advantages such as pricing power and effective
management teams will outperform. Our investment strategy remains rooted in
identifying companies in which we have great conviction as well as
transformative megatrends that are shaping the global economy.
Technological adoption is accelerating, with AI and digital transformation
extending well beyond the boundaries of the traditional tech sector. Our
private portfolio, built up over decades using our network and specialist
partnerships, is weighted towards this advanced technology. We believe this
area of the portfolio is well placed to benefit from further M&A and IPO
activity in the near term.
At the same time, we see the world becoming more multi-polar, with shifting
economic power reshaping supply chains and investment flows. We continue to
diversify outside the US, working alongside our specialist fund managers to
invest in compelling opportunities globally, including in Europe, Japan and
China.
We retain high conviction in the portfolio's core holdings and the structural
themes that underpin them. We believe that our disciplined investment
approach, thoughtful portfolio construction, strong network and specialist
partners will continue to deliver long-term value for RIT shareholders, and
that the portfolio is well positioned to capitalise on the range of possible
market outcomes that may lie ahead.
J. Rothschild Capital Management Limited
REGULATORY DISCLOSURES
Statement of Directors' responsibilities
In accordance with the Disclosure and Transparency Rules 4.2.4R, 4.2.7R and
4.2.8R, we confirm that to the best of our knowledge:
(a) The condensed set of financial statements has been prepared in accordance with
IAS 34, Interim Financial Reporting, as contained in UK adopted international
accounting standards (UK adopted IAS), as required by the Disclosure and
Transparency Rule 4.2.4R.
(b) The Interim Review includes a fair review of the information required to be
disclosed under the Disclosure and Transparency Rule 4.2.7R in an interim
management report. This includes an indication of important events that have
occurred during the first six months of the financial year, and their impact
on the condensed set of financial statements presented in the Half-Yearly
Financial Report. A description of the principal risks and uncertainties for
the remaining six months of the financial year is set out below.
(c) In addition, in accordance with the disclosures required under the Disclosure
and Transparency Rule 4.2.8R, there were no transactions with related parties
in the first six months of the current financial year that have had a material
effect on the financial position or performance of the Group, or any changes
to related party transactions described in the Group's Report and Accounts for
the year ended 31 December 2024 that could do so.
Principal risks and uncertainties
The principal risk categories facing the Group for the second half of the
financial year are unchanged from those described in the Report and Accounts
for the year ended 31 December 2024. These principal risks are kept under
continual review. No material emerging risks have been identified in the first
half of the year and the principal risks we identify comprise:
● Investment strategy risk
● Discount risk
● Market risk
● Liquidity risk
● Credit risk
● Key person dependency
● Climate-related risks
● Legal and regulatory risk
● Operational risk
● Cyber security risk
As an investment company, the most significant risk is market risk. As
described in the Chairman's Statement and Manager's Report, geopolitical
tensions and the volatile market environment are some of the challenges we
face in 2025.
From an operational risk perspective, we continue to keep our internal
controls under close scrutiny and remain satisfied that the control
environment is effective.
Going concern
The key factors likely to affect the Group's ability to continue as a going
concern were set out in the Report and Accounts for the year ended 31 December
2024. As at 30 June 2025 there have been no significant changes to these
factors. Having reviewed the Company's forecasts and other relevant evidence,
the Directors have a reasonable expectation that the Company and the Group
have adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis in preparing the condensed interim financial statements.
Philippe Costeletos
Chairman
For and on behalf of the Board.
CONDENSED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (UNAUDITED)
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June
2025 2024
£ million Notes Revenue Capital Total Revenue Capital Total
Investment income 16.7 - 16.7 15.2 - 15.2
Other income 0.2 - 0.2 0.1 - 0.1
Gains/(losses) on fair value investments - 128.1 128.1 - 157.7 157.7
Gains/(losses) on monetary items and borrowings - (3.2) (3.2) - 3.0 3.0
16.9 124.9 141.8 15.3 160.7 176.0
Expenses
Operating expenses (15.8) (2.8) (18.6) (18.2) (1.8) (20.0)
Profit/(loss) before finance costs and taxation 2 1.1 122.1 123.2 (2.9) 158.9 156.0
Finance costs (3.8) (15.4) (19.2) (2.9) (11.7) (14.6)
Profit/(loss) before taxation (2.7) 106.7 104.0 (5.8) 147.2 141.4
Taxation - - - - - -
Profit/(loss) for the period (2.7) 106.7 104.0 (5.8) 147.2 141.4
Earnings/(loss) per ordinary share - basic 3 (1.9)p 75.7p 73.8p (4.0)p 101.4p 97.4p
Earnings/(loss) per ordinary share - diluted 3 (1.9)p 75.4p 73.5p (4.0)p 101.1p 97.1p
The total column of this statement represents the Group's consolidated income
statement, prepared in accordance with UK adopted international accounting
standards (UK adopted IAS). The supplementary revenue and capital columns are
both prepared under guidance published by the Association of Investment
Companies (AIC). All items in the above statement derive from continuing
operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June
2025 2024
£ million Revenue Capital Total Revenue Capital Total
Profit/(loss) for the period (2.7) 106.7 104.0 (5.8) 147.2 141.4
Revaluation gain/(loss) on property, plant and equipment - (0.1) (0.1) - (0.6) (0.6)
Actuarial gain/(loss) in defined benefit pension plan (0.1) - (0.1) (0.0) - (0.0)
Deferred tax (charge)/credit allocated to actuarial gain/(loss) 0.1 - 0.1 0.0 - 0.0
Total comprehensive income/(expense) for the period (2.7) 106.6 103.9 (5.8) 146.6 140.8
Other comprehensive income items are never reclassified to profit or loss.
The Notes form part of these condensed interim financial statements.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
30 June 31 December
£ million Notes 2025 2024
Non-current assets
Investments held at fair value 3,671.6 3,792.1
Investment property 32.9 32.7
Property, plant and equipment 21.6 21.7
Retirement benefit asset - 0.2
Derivative financial instruments 7.5 53.7
3,733.6 3,900.4
Current assets
Derivative financial instruments 107.5 38.5
Other receivables 126.5 123.1
Amounts owed by group undertakings 0.0 -
Cash at bank 221.2 189.4
455.2 351.0
Total assets 4,188.8 4,251.4
Current liabilities
Borrowings (181.2) (160.2)
Derivative financial instruments (33.4) (69.8)
Other payables (30.9) (77.5)
Amounts owed to group undertakings (13.6) (16.3)
(259.1) (323.8)
Net current assets/(liabilities) 196.1 27.2
Total assets less current liabilities 3,929.7 3,927.6
Non-current liabilities
Borrowings (172.1) (173.7)
Derivative financial instruments (2.4) (17.5)
Deferred tax liability - (0.1)
Provisions (3.0) (3.0)
Lease liability (2.0) (2.1)
(179.5) (196.4)
Net assets 3,750.2 3,731.2
Equity attributable to owners of the Company
Share capital 141.1 156.8
Share premium 45.7 45.7
Capital redemption reserve 52.0 36.3
Own shares reserve (21.8) (25.3)
Capital reserve 3,566.6 3,548.3
Revenue reserve (43.9) (41.2)
Revaluation reserve 10.5 10.6
Total equity 3,750.2 3,731.2
Net asset value per ordinary share - basic 4 2,690p 2,627p
Net asset value per ordinary share - diluted 4 2,680p 2,614p
The Notes form part of these condensed interim financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
£ million Capital Own
Share Share redemption shares Capital Revenue Revaluation Total
capital premium reserve reserve reserve reserve reserve equity
Balance at 1 January 2024 156.8 45.7 36.3 (36.7) 3,393.1 (32.2) 10.3 3,573.3
Profit/(loss) for the period - - - - 147.2 (5.8) - 141.4
Revaluation gain/(loss) on property,
plant and equipment - - - - - - (0.6) (0.6)
Actuarial gain/(loss) in defined benefit plan - - - - - (0.0) - (0.0)
Deferred tax (charge)/credit allocated to
actuarial gain/(loss) - - - - - 0.0 - 0.0
Total comprehensive income/(expense) for the period - - - - 147.2 (5.8) (0.6) 140.8
Dividends paid (note 5) - - - - (28.4) - - (28.4)
Purchase of treasury shares - - - - (33.1) - - (33.1)
Movement in own shares reserve - - - 13.3 - - - 13.3
Movement in share-based payments - - - - (25.0) - - (25.0)
Balance at 30 June 2024 156.8 45.7 36.3 (23.4) 3,453.8 (38.0) 9.7 3,640.9
£ million Capital Own
Share Share redemption shares Capital Revenue Revaluation Total
capital premium reserve reserve reserve reserve reserve equity
Balance at 1 January 2025 156.8 45.7 36.3 (25.3) 3,548.3 (41.2) 10.6 3,731.2
Profit/(loss) for the period - - - - 106.7 (2.7) - 104.0
Revaluation gain/(loss) on property,
plant and equipment - - - - - - (0.1) (0.1)
Actuarial gain/(loss) in defined benefit plan - - - - - (0.1) - (0.1)
Deferred tax (charge)/credit allocated to
actuarial gain/(loss) - - - - - 0.1 - 0.1
Total comprehensive income/(expense) for the period - - - - 106.7 (2.7) (0.1) 103.9
Dividends paid (note 5) - - - - (30.4) - - (30.4)
Purchase of treasury shares - - - - (52.0) - - (52.0)
Cancellation of treasury shares(1) (15.7) - 15.7 - - - - -
Movement in own shares reserve - - - 3.5 - - - 3.5
Movement in share-based payments - - - - (6.0) - - (6.0)
Balance at 30 June 2025 141.1 45.7 52.0 (21.8) 3,566.6 (43.9) 10.5 3,750.2
1 On 21 May 2025, the Company cancelled 15.7 million ordinary shares of £1 each
which were held in treasury.
The Notes form part of these condensed interim financial statements.
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Six months ended 30 June 30 June
£ million 2025 2024
Cash flows from operating activities:
Cash inflow/(outflow) before taxation and interest 95.3 25.8
Interest paid (19.2) (14.6)
Net cash inflow/(outflow) from operating activities 76.1 11.2
Cash flows from investing activities:
Sale/(purchase) of property, plant and equipment (0.1) (0.0)
Net cash inflow/(outflow) from investing activities (0.1) (0.0)
Cash flows from financing activities:
Repayment of borrowings (149.3) (143.4)
Drawing of borrowings 184.7 145.8
Purchase of ordinary shares by EBT(1) (6.9) (12.0)
Purchase of ordinary shares into treasury (52.0) (33.1)
Dividends paid (30.4) (28.4)
Net cash inflow/(outflow) from financing activities (53.9) (71.1)
Increase/(decrease) in cash in the period 22.1 (59.9)
Cash at the start of the year 189.4 204.3
Effect of foreign exchange rate changes on cash 9.7 (0.1)
Cash at the period end 221.2 144.3
1 Shares are disclosed in the own shares reserve on the consolidated balance
sheet (unaudited).
The Notes form part of these condensed interim financial statements.
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of accounting
These condensed financial statements are the half-yearly consolidated
financial statements of RIT Capital Partners plc (RIT or the Company) and its
subsidiaries (together, the Group) for the six months ended 30 June 2025. They
are prepared in accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority, and with International Accounting Standard (IAS)
34, Interim Financial Reporting, as adopted by the United Kingdom, and were
approved on 6 August 2025. These half-yearly consolidated financial statements
should be read in conjunction with the Report and Accounts for the year ended
31 December 2024, which were prepared in accordance with UK adopted IAS.
There have been no changes to the IAS since 31 December 2024 that impact our
reporting requirements.
The half-yearly consolidated financial statements have been prepared in
accordance with the accounting policies set out in the notes to the
consolidated financial statements for the year ended 31 December 2024.
Critical accounting estimates and judgements
The preparation of financial statements in conformity with UK adopted IAS
requires the use of certain critical accounting estimates. It also requires
the Manager and Board to exercise judgement in the process of applying the
Group's accounting policies. The areas requiring a higher degree of judgement
or complexity and where assumptions and estimates are significant to the
consolidated financial statements, are in relation to the valuation of private
investments and property.
2. Business and geographical segments
For both the six months ended 30 June 2025 and the six months ended 30 June
2024, the Group is considered to have three principal operating segments, all
based in the UK, as follows:
AUM
Segment Business £ million(1) Employees(1)
RIT Investment trust - -
JRCM(2) Investment management/ administration 3,750.2 52
SHL(3) Events/premises management - 12
1 As at 30 June 2025.
2 J. Rothschild Capital Management Limited.
3 Spencer House Limited.
Key financial information for the six months ended 30 June 2025 is as follows:
Net Income/ Operating
£ million assets gains(1) expenses(1) Profit(2)
RIT 3,623.5 142.1 (26.4) 115.7
JRCM 132.9 23.0 (15.5) 7.5
SHL 1.6 2.0 (2.0) 0.0
Adjustments(3) (7.8) (25.3) 25.3 -
Total 3,750.2 141.8 (18.6) 123.2
Key financial information for the six months ended 30 June 2024 is as follows:
Net Income/ Operating
£ million assets gains(1) expenses(1) Profit(2)
RIT 3,531.3 174.4 (25.4) 149.0
JRCM 115.9 23.5 (16.6) 6.9
SHL 1.4 1.9 (1.8) 0.1
Adjustments(3) (7.7) (23.8) 23.8 -
Total 3,640.9 176.0 (20.0) 156.0
1 Includes intra-group income and expenses.
2 Profit before finance costs and taxation.
3 Consolidation adjustments in accordance with IFRS 10 Consolidated Financial
Statements.
3. Earnings per ordinary share - basic and diluted
The basic earnings per ordinary share for the six months ended 30 June 2025 is
based on the profit of £104.0 million (2024: £141.4 million) and the
weighted average number of ordinary shares in issue during the period of 153.4
million (six months ended 30 June 2024: 156.8 million). The weighted average
number of shares is adjusted for shares held in the employee benefit trust
(EBT) and in treasury in accordance with IAS 33 - Earnings per share.
£ million Six months Six months
ended
ended
30 June 2025 30 June 2024
Net revenue profit/(loss) (2.7) (5.8)
Net capital profit/(loss) 106.7 147.2
Total profit/(loss) for the period 104.0 141.4
Weighted average (million) Six months Six months
ended
ended
30 June 2025 30 June 2024
Number of shares in issue(1) 153.4 156.8
Shares held in EBT (1.1) (1.4)
Shares held in treasury(1) (11.4) (10.3)
Basic shares 140.9 145.1
1 On 21 May 2025, the Company cancelled 15.7 million ordinary shares of £1 each
which were held in treasury. The number of shares in the table represents the
weighted average over the period.
pence Six months Six months
ended
ended
30 June 2025
30 June 2024
Revenue earnings/(loss) per ordinary share - basic (1.9) (4.0)
Capital earnings/(loss) per ordinary share - basic 75.7 101.4
Total earnings per share - basic 73.8 97.4
The diluted earnings per ordinary share for the period is based on the basic
shares (above) adjusted for the effect of share-based payments awards for the
period.
Weighted average (million) Six months Six
ended
months ended
30 June 2024
30 June 2025
Basic shares 140.9 145.1
Effect of share-based payment awards 0.6 0.5
Diluted shares 141.5 145.6
pence Six months Six
ended
months ended
30 June 2025 30 June 2024
Revenue earnings/(loss) per ordinary share - diluted (1.9) (4.0)
Capital earnings/(loss) per ordinary share - diluted 75.4 101.1
Total earnings per ordinary share - diluted 73.5 97.1
4. Net asset value per ordinary share - basic and diluted
Net asset value per ordinary share is based on the following data:
30 June 31 December
2025
2024
Net assets (£ million) 3,750.2 3,731.2
Number of shares in issue (million)(1) 141.1 156.8
Shares held in EBT (million) (1.1) (1.1)
Shares held in treasury (million)(1) (0.6) (13.6)
Basic shares (million) 139.4 142.1
Effect of share-based payment awards (million) 0.6 0.7
Diluted shares (million) 140.0 142.8
1 On 21 May 2025, the Company cancelled 15.7 million ordinary shares of £1 each
which were held in treasury.
pence 30 June 31 December
2025
2024
Net asset value per ordinary share - basic 2,690 2,627
Net asset value per ordinary share - diluted 2,680 2,614
5. Dividends
Six months Six months Six months Six months
ended
ended
ended
ended
30 June 2025
30 June 2024 30 June 2025 30 June 2024
Pence per
Pence per £ million £ million
share
share
Dividends paid in the period 21.5 19.5 30.4 28.4
The Board of Directors declared an interim dividend of 21.5p per ordinary
share (£30.4 million) on 28 February 2025, which was paid on 25 April 2025.
The Board has declared the payment of a second interim dividend of 21.5p per
ordinary share in respect of the year ending 31 December 2025. This will be
paid on 31 October 2025 to shareholders on the register on 3 October 2025.
Both payments are funded from accumulated capital profits.
Dividends are not paid on shares held in treasury and the EBT waives its
rights to all dividends.
Additional commentary may be found in the Report and Accounts for the year
ended 31 December 2024.
6. Financial instruments
IFRS 13 requires the Group to classify its financial instruments held at fair
value using a hierarchy that reflects the significance of the inputs used in
the valuation methodologies. These are as follows:
· 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 (i.e. as prices) or
indirectly (i.e. derived from prices)
· Level 3: Inputs for the asset or liability that are not based on observable
market data (i.e. unobservable inputs).
The vast majority of the Group's financial assets and liabilities, investment
properties and property, plant and equipment are measured at fair value on a
recurring basis.
The Group's policy is to recognise transfers into and transfers out of fair
value hierarchy levels at the end of the reporting year when they are deemed
to occur.
A description of the valuation techniques used by the Group with regards to
investments categorised in each level of the fair value hierarchy is detailed
below. Where the Group invests in a fund or a partnership, which is not itself
listed on an active market, the categorisation of such investments between
levels 2 and 3 is determined by reference to the nature of the fund or
partnership's underlying investments. If such investments are categorised
across different levels, the lowest level of the hierarchy that forms a
significant proportion of the fund or partnership exposure is used to
determine the reporting disclosure.
If the proportion of the underlying investments categorised between levels
changes during the period, these will be reclassified to the most appropriate
level.
Level 1
The fair value of financial instruments traded in active markets is based on
quoted market prices at the balance sheet date. A market is regarded as active
if quoted prices are readily and regularly available from an exchange, dealer,
broker, industry group, pricing service, or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an
arm's length basis. The quoted market price used for financial assets held by
the Group is the current bid price or the last traded price, depending on the
convention of the exchange on which the investment is quoted. Where a market
price is available but the market is not considered active (including discount
adjustments to quoted prices in the case of restrictions to sell such
securities), the Group has classified these investments as level 2.
Level 2
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques which maximise the use of
observable market data where it is available. Specific valuation techniques
used to value OTC derivatives include quoted market prices for similar
instruments, counterparty quotes and the use of forward exchange rates to
estimate the fair value of forward foreign exchange contracts at the balance
sheet date. Investments in externally-managed funds which themselves invest
primarily in listed securities are valued at the price or net asset value
released by the investment manager or fund administrator as at the balance
sheet date.
Level 3
The Group considers all private investments, whether direct or funds, as level
3 assets, as the valuations of these assets are not typically based on
observable market data. Where other funds invest into illiquid stocks, these
are also considered by the Group to be level 3 assets.
Private fund investments are held at the most recent fair values provided by
the GPs managing those funds, adjusted for subsequent investments,
distributions, and currency movements up to the period end, and are subject to
periodic review by the Manager.
Direct co-investments are also held at the most recent fair values provided by
the GPs managing those co-investments, adjusted for subsequent investments,
distributions, currency moves, as well as pricing events where the Manager has
sufficient information to suggest the period-end valuation should be adjusted.
The remaining directly-held private investments are valued on a semi-annual
basis using techniques including a market approach, income approach and/or
cost approach. The valuation process involves the investment functions of the
Manager who prepare the initial valuations, which are then subject to review
by the finance function, with the final valuations being determined by the
Valuation Committee, comprised of independent non-executive Directors, of
which the Audit and Risk Committee Chair is also a member.
Specific valuation techniques used will typically include the value of recent
transactions, earnings multiples, discounted cash flow analysis, and, where
appropriate, industry specific methodologies. The acquisition cost, if
determined to be fair value, may be used to calibrate inputs to the valuation.
The valuations will often reflect a synthesis of a number of distinct
approaches in determining the final fair value estimate. The individual
approach for each investment will vary depending on relevant factors that a
market participant would take into account in pricing the asset. These might
include the specific industry dynamics, the company's stage of development,
profitability, growth prospects or risk as well as the rights associated with
the particular security.
Borrowings at 30 June 2025 comprise bank loans (revolving credit facilities
(RCFs) and a term loan) and senior loan notes. The RCFs pay floating interest,
are typically drawn in tranches with a duration of three or six months, are
short-term in nature, and their fair value approximates their nominal value.
The term loan was drawn in September 2024 with a tenor of three years and pays
floating interest.
The loan notes were issued in 2015 with tenors of between 10 and 20 years with
a weighted average of 15 years. The first series was repaid in June 2025. They
are valued on a monthly basis using a discounted cash flow model where the
discount rate is derived from the yield of similar tenor UK Government bonds,
adjusted for any significant changes in either credit spreads or the perceived
credit risk of the Company.
The fair value of investments in non-consolidated subsidiaries is considered
to be the net asset value of the individual subsidiary as at the balance sheet
date. The net asset value comprises various assets and liabilities which are
fair valued on a recurring basis and is considered to be level 3.
On a semi-annual basis, the Group engages external, independent and qualified
valuers to determine the fair value of the Group's investment properties and
property, plant and equipment held at fair value. The following table analyses
the Group's assets and liabilities within the fair value hierarchy, as at 30
June 2025:
As at 30 June 2025
£ million Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss (FVPL):
Portfolio investments 1,081.3 1,038.5 1,424.1 3,543.9
Non-consolidated subsidiaries - - 127.7 127.7
Investments held at fair value 1,081.3 1,038.5 1,551.8 3,671.6
Derivative financial instruments 9.2 105.8 - 115.0
Total financial assets at FVPL 1,090.5 1,144.3 1,551.8 3,786.6
Non-financial assets measured at fair value:
Investment property - - 32.9 32.9
Property, plant and equipment - - 21.6 21.6
Total non-financial assets measured at fair value - - 54.5 54.5
Financial liabilities at FVPL:
Borrowings - - (353.3) (353.3)
Derivative financial instruments (5.7) (30.1) - (35.8)
Total financial liabilities at FVPL (5.7) (30.1) (353.3) (389.1)
Total net assets measured at fair value 1,084.8 1,114.2 1,253.0 3,452.0
Cash at bank 221.2
Other current assets 126.5
Other current liabilities (44.5)
Other non-current liabilities (5.0)
Net assets 3,750.2
Movements in level 3 assets
Six months ended 30 June 2025 Investments held Properties Total
£ million
at fair value
Opening balance 1,806.4 54.4 1,860.8
Purchases 58.1 - 58.1
Sales (95.8) - (95.8)
Gains/(losses) through profit or loss(1) (29.1) - (29.1)
Transfer out of level 3 (180.3) - (180.3)
Other (7.5) 0.1 (7.4)
Closing balance 1,551.8 54.5 1,606.3
1 Included within gains/(losses) through profit or loss is £25.8 million of
unrealised losses (31 December 2024: £129.6 million gain) relating to those
level 3 assets held at the end of the reporting period.
During the six months to 30 June 2025, investments with a fair value of
£180.3 million were transferred from level 3 to 2. This is as a result of new
financial information received during the year in respect of these
investments.
Level 3 assets
Level 3 assets - direct private investments
Further information in relation to the directly-held private investments is
set out in the following table. This summarises the portfolio by the primary
method used in estimating the fair value of the investment. As a range of
valuation methods and inputs may be used in the valuation process, selection
of a primary method is subjective, and designed primarily to assist the
subsequent sensitivity analysis.
Primary valuation method/approach
£ million 30 June 31 December
2025
2024
Third-party valuation(1) 220.7 213.8
Recent transaction 39.2 31.6
Earnings multiple(1) 13.4 21.5
Discount to earnings multiple 11.2 50.2
Other industry metrics 6.8 14.1
Discount to recent transaction 6.7 8.1
Cost 6.5 12.0
Blend of methods 0.5 11.3
Discount to agreed sale - 12.0
Total 305.0 374.6
1 Included in these methods are direct private investments held within the
non-consolidated subsidiaries with a total of £7.2 million (31 December 2024:
£7.2 million).
The majority of the direct private investments are structured as
co-investments, managed by a GP. For these investments, the valuation approach
is to typically use the latest quarterly fair valuations provided by the GP,
adjusted for any subsequent investments/distributions and currency moves as
well as pricing events or other factors, where there is sufficient information
to suggest the period-end valuation should be adjusted.
Where the Manager has sufficient information to undertake its own valuation, a
range of methods will typically be used. For companies with positive earnings,
this will usually involve an earnings multiple approach, typically using
EBITDA or similar. The earnings multiple is assessed by reference to similar
listed companies or transactions involving similar companies. When an asset is
undergoing a sale and the price has been agreed but not yet completed or an
offer has been submitted, the agreed or offered price will be used, often with
a discount as appropriate to reflect the risks associated with the transaction
completing or any price adjustments. Where a company has been the subject of a
recent financing round which is viewed as representative of fair value, this
transaction price will be used. Other methods employed include discounted cash
flow analysis and industry metrics such as multiples of assets under
management or revenue, where market participants use these approaches in
pricing assets.
The following table provides a sensitivity analysis of the valuation of
directly-held private investments, and the impact on net assets:
Valuation method/approach Sensitivity analysis
Third-party valuations A 5% change in the value of these assets would result in a £11.0 million or
0.3% (2024: £10.7 million, 0.3%) change in net assets.
Recent transaction A 5% change in the value of these assets would result in a £2.0 million or
0.05% (2024: £1.6 million, 0.04%) change in net assets.
Earnings multiple Assets in this category are valued using earnings multiples in the range of
1.1x - 8.6x. If the multiple used for valuation purposes is increased or
decreased by 5% then the net assets would increase/decrease by £0.2 million
or 0.01% (2024: £0.6 million, 0.02%).
Discount to earnings multiple Assets in this category are valued using discounts applied to sales multiples.
The discounts range between 25% and 50% and the multiples used range between
5.2x - 11.2x. If the net impact of these variables caused an increase or
decrease of 5% then the net assets would increase/decrease by £0.6 million or
0.01% (2024: £2.5 million, 0.07%).
Other industry metrics A 5% change in the value of these assets would result in a £0.3 million or
<0.01% (2024: £0.7 million, 0.02%) change in net assets.
Discount to recent transaction Assets in this category are valued using a discount applied to a recent
financing round or secondary transaction. Discounts range between 20% and 50%
and are reflective of a number of different factors including elapsed time
since the transaction and the movement in market prices of broadly similar
listed companies. A 5% change to the discount applied would result in a £0.3
million or <0.01% (2024: £0.4 million, 0.01%).
Cost A 5% change in the value of these assets would result in a £0.3 million or
<0.01% (2024: £0.6 million, 0.02%) change in net assets.
Blend of methods A 5% change in the value of these assets would result in a <£0.1 million
or <0.01% (2024: £0.6 million, 0.02%) change in net assets.
Discount to agreed sale There are no assets in this category as of June 2025 (2024: A 5% change in
discount would have resulted in a £0.2 million, <0.01% change in net
assets).
Level 3 assets - other
The investment property and property, plant and equipment with an aggregate
fair value of £54.5 million (2024: £54.4 million) were valued using a
third-party valuation provided by Jones Lang LaSalle. The properties were
valued using weighted average capital values of £1,491 per square foot (2024:
£1,484) developed from rental yields and supported by market transactions. A
5% per square foot increase/decrease in capital values would result in a
£2.4 million increase/decrease in fair value (2024: £2.4 million
increase/decrease).
The non-consolidated subsidiaries are held at their fair value of
£127.7 million (2024: £140.8 million) representing £37.4 million of
portfolio investments (2024: £124.5 million) and £90.3 million of remaining
assets (2024: £16.3 million of remaining liabilities). A 5% change in the
value of these assets would result in £6.4 million or 0.2% (2024:
£7.0 million, 0.2%) change in total net assets.
The remaining investments held at fair value and classified as level 3 of
£1,126.3 million (2024: £1,298.2 million) were valued using third-party
valuations from a GP, administrator or fund manager. A 5% change in the value
of these assets would result in a £56.3 million or 1.50% (2024: £64.9
million, 1.74%) change in net assets.
In aggregate, the sum of the direct private investments, investment property,
property, plant and equipment, non-consolidated subsidiaries and the remaining
fund investments represents the total level 3 assets of £1,606.3 million
(2024: £1,860.8 million).
The following table analyses the Group's assets and liabilities within the
fair value hierarchy, at 31 December 2024:
As at 31 December 2024
£ million Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss (FVPL):
Portfolio investments 996.3 989.4 1,665.6 3,651.3
Non-consolidated subsidiaries - - 140.8 140.8
Investments held at fair value 996.3 989.4 1,806.4 3,792.1
Derivative financial instruments 8.1 84.1 - 92.2
Total financial assets at FVPL 1,004.4 1,073.5 1,806.4 3,884.3
Non-financial assets measured at fair value:
Investment property - - 32.7 32.7
Property, plant and equipment - - 21.7 21.7
Total non-financial assets measured at fair value - - 54.4 54.4
Financial liabilities at FVPL:
Borrowings - - (333.9) (333.9)
Derivative financial instruments (8.0) (79.3) - (87.3)
Total financial liabilities at FVPL (8.0) (79.3) (333.9) (421.2)
Total net assets measured at fair value 996.4 994.2 1,526.9 3,517.5
Other non-current assets 0.2
Cash at bank 189.4
Other current assets 123.1
Other current liabilities (93.8)
Other non-current liabilities (5.2)
Net assets 3,731.2
Year ended 31 December 2024 Investments held at fair value Properties Total
£ million
Opening balance 1,765.2 55.7 1,820.9
Purchases 222.8 - 222.8
Sales (242.3) - (242.3)
Gains/(losses) through profit or loss(1) 138.9 (0.5) 138.4
Unrealised gains/(losses) through other comprehensive income - 0.3 0.3
Transfer in to level 3 43.2 - 43.2
Transfer out of level 3 (137.3) - (137.3)
Other 15.9 (1.1) 14.8
Closing balance 1,806.4 54.4 1,860.8
1 Included within gains/(losses) through profit or loss is £129.6 million of
unrealised gains (2023: £23.3 million loss) relating to those level 3 assets
held at the end of the reporting period.
7. Comparative information
The financial information contained in the Half-Yearly Financial Report does
not constitute statutory accounts as defined in section 434 of the Companies
Act 2006. The financial information for the half years ended 30 June 2025 and
30 June 2024 has been neither reviewed nor audited.
The information for the year ended 31 December 2024 has been extracted from
the latest published audited financial statements.
The audited financial statements for the year ended 31 December 2024 have been
filed with the Registrar of Companies and the report of the auditors on those
accounts contained no qualification or statement under section 498(2) or (3)
of the Companies Act 2006.
GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES
Glossary
Within the Half-Yearly Financial Report, we publish certain financial measures
common to investment trusts. Where relevant, these are prepared in accordance
with guidance from the AIC, and this glossary provides additional information
in relation to them.
Alternative performance measures (APMs): APMs are numerical measures of the
Company's current, historical or future financial performance, financial
position or cash flows, other than financial measures defined or specified in
the Company's applicable financial framework - namely UK adopted IAS and the
AIC SORP. They are denoted with an * in this section.
CPI: The CPI refers to the United Kingdom Consumer Price Index as calculated
by the Office for National Statistics and published monthly. It is the UK
Government's target measure of inflation and, from 1 January 2023, is used as
a measure of inflation in one of the Company's KPIs, CPI plus 3.0% per annum.
Gearing*: Gearing is a measure of the level of debt deployed within the
portfolio. The ratio is calculated in accordance with AIC guidance as total
assets, net of cash, divided by net assets and expressed as a 'net'
percentage, e.g. 110% would be shown as 10%.
30 June 31 December
£ million 2025 2024
Total assets 4,188.8 4,251.4
Less: cash (221.2) (189.4)
Sub total(a) 3,967.6 4,062.0
Net assets(b) 3,750.2 3,731.2
Gearing(a/b) 5.8% 8.9%
Leverage: Leverage, as defined by the UK Alternative Investment Fund Managers
Directive (AIFMD), is any method which increases the exposure of the
portfolio, whether through borrowings or leverage embedded in derivative
positions or by any other means.
ACWI (50% £): The MSCI All Country World Index is a total return, market
capitalisation-weighted equity index covering major developed and emerging
markets. Described in this report as ACWI (50% £), this is one of the
Company's KPIs or reference hurdles and, since its introduction in 2013, has
incorporated a 50% sterling measure. This is calculated using 50% of the ACWI
measured in sterling and therefore exposed to translation risk from the
underlying foreign currencies. The remaining 50% uses a sterling-hedged ACWI
from 1 January 2015 (from when this is readily available). This incorporates
hedging costs, which the portfolio also incurs, to protect against currency
risk and is an investable index. Prior to this date it uses the index measured
in local currencies. Before December 1998, when total return indices were
introduced, the index is measured using a capital-only version.
Net asset value (NAV) per share: The NAV per share is calculated by dividing
the total value of all the assets of the trust less its liabilities (net
assets) by the number of shares outstanding. Unless otherwise stated, this
refers to the diluted NAV per share, with debt held at fair value.
NAV total return*: The NAV total return for a period represents the change in
NAV per share, adjusted to reflect dividends paid during the period. The
calculation assumes that dividends are reinvested in the NAV at the month end
following the NAV going ex-dividend. The NAV per share at 30 June 2025 was
2,680 pence, an increase of 66 pence, or 2.5%, from 2,614 pence at the
previous year end. As dividends totalling 21.5 pence per share were paid
during the period, the effect of reinvesting the dividends in the NAV is 0.9%,
which results in a NAV total return of 3.4%. The since inception return is
calculated using the NAV per share at 2 August 1988.
Net quoted equity exposure: This is the estimated level of exposure that the
trust has to listed equity markets. It includes the assets held in the quoted
equity category of the portfolio adjusted for the notional exposure from
quoted equity derivatives, as well as estimated cash balances held by
externally-managed funds, estimated exposure levels from hedge fund managers,
and an estimate of quoted equities held in private investment funds.
Notional: In relation to derivatives, this represents the estimated exposure
that is equivalent to holding the same underlying position through a cash
security.
Ongoing charges figure (OCF)*: As a self-managed investment trust with
operating subsidiaries, the calculation of the Company's OCF requires
adjustments to the total operating expenses. In accordance with AIC guidance,
the main adjustments are to remove non-recurring costs as well as direct
performance-related compensation from JRCM, as this is analogous to a
performance fee for an externally-managed trust.
% Average
£ million 2024 net assets
Operating expenses 38.5 1.04%
Adjustments (10.4) (0.28%)
Ongoing charges(a) 28.1 0.76%
Average net assets(b) 3,688
OCF(a/b) 0.76%
Premium/discount: The premium or discount is calculated by taking the closing
share price on 30 June 2025 and dividing it by the NAV per share at 30 June
2025, expressed as a net percentage. If the share price is above/below the NAV
per share, the shares are said to be trading at a premium/discount.
30 June 31 December
pence 2025 2024
Share price(a) 1,944 1,986
Diluted NAV per share(b) 2,680 2,614
Premium/(discount)(((a/b)-1)) (27.4%) (24.0%)
Share price total return or total shareholder return (TSR)*: The TSR for a
period represents the change in the share price adjusted to reflect dividends
reinvested on the ex-dividend date. Similar to calculating a NAV total return,
the calculation assumes the dividends are notionally reinvested at the daily
closing share price following the shares going ex‑dividend. The share price
on 30 June 2025 closed at 1,944 pence, a decrease of 42 pence, or -2.1%, from
1,986 pence at the previous year end. Dividends totalling 21.5 pence per share
were paid during the period, and the effect of reinvesting the dividends in
the share price is 1.1%, which results in a TSR of -1.0%. The TSR is one of
the Company's KPIs. The since inception return is calculated using the closing
share price on 2 August 1988.
END OF HALF-YEARLY FINANCIAL REPORT EXTRACTS
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