REG - Schroder BSC Social - Half Year Report
27/03/2025 07:15
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RNS Number : 3956C Schroder BSC Social Impact Trust 27 March 2025
Schroder BSC Social Impact Trust plc (the "Company")
Half Year Results
Schroder BSC Social Impact Trust plc hereby submits its Half Year Report for
the six months ended 31 December 2024 as required by the Financial Conduct
Authority's Disclosure Guidance and Transparency Rule 4.2. The Half Year
Report is available on the Company's webpages
at https://www.schroders.com/sbsi (https://www.schroders.com/sbsi) and can
be viewed using the following link: https://schro.link/sbsihyr25
(https://schro.link/sbsihyr25) .
The Company has submitted a copy of its Half Year Report to the National
Storage Mechanism and it will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
Highlights
· NAV per share of 101.54 pence (HY 2024: 103.05 pence) with strong
income generated offset by valuation movements and the dividend payment
· NAV total return per share of 0.3% (HY 2024: 0.4%)
· NAV total return per share of 10.5% since inception (2.5%
annualised)
· Dividend of 2.94 pence per share paid on 20 December 2024
· Post period-end the Company realised a partial exit from the
Resonance Real Lettings Property Fund to a new investor at NAV with a realised
return of 6%, in line with fund target
· Adoption of the "Sustainability Impact" label under the FCA's
Sustainability Disclosure Requirements regime
· 100% of high impact investment portfolio aligns with the UN
Sustainable Development Goals, with the majority of the portfolio aimed at
reducing poverty and inequality (SDGs 1 & 10)
Results Presentation
The Portfolio Managers will present a webinar on the results at 10.00 am
tomorrow, Friday 28 March 2025. This is open to all existing and potential
shareholders, who can sign up for the webinar at:
https://www.schroders.events/SBSI25 (https://www.schroders.events/SBSI25) .
Susannah Nicklin, Chair of Schroder BSC Social Impact Trust plc, said:
"The six months to 31 December 2024 have seen the Company continue to deliver
positive social impact alongside enhancing transparency for investors with the
adoption of the Sustainability Impact label. The period marked particularly
strong impact delivery in the housing portfolio, with hundreds of homes being
re-positioned as affordable, along with several new beds for people benefiting
from Learning Disability care registered with Ofsted.
Our portfolio's proven value is set for further growth, supported by strong
political alignment and emerging opportunities in key areas like the Just
Transition. While we work on tackling the structural challenges presented to
investment trusts in the UK, we remain confident in our financial strength and
the real-world impact of our investments. The Company continues to offer a
unique proposition, delivering meaningful benefits to disadvantaged
communities across the UK."
About Schroder BSC Social Impact Trust plc
The Company was launched in December 2020, to enable access to high social
impact investment opportunities in private markets - tackling social
challenges across the UK. The Company manages a diversified portfolio across
asset classes, targeting sustainable returns, demonstrable social impact, and
low correlation to traditional public markets.
About Better Society Capital
Better Society Capital is the UK's leading social impact investor. Our mission
is to grow the amount of money invested in tackling social issues and
inequalities in the UK. We do this by investing our own capital and helping
others invest for impact too.
Since 2012, we have helped build a market that has directed more than £10
billion into social purpose organisations tackling issues from homelessness
and mental health, to childhood obesity and fuel poverty, a more than ten-fold
increase.
Further information about Better Society Capital can be found
at www.bettersocietycapital.com (http://www.bettersocietycapital.com)
About Schroders plc
Schroders is a global investment manager which provides active asset
management, wealth management and investment solutions, with £778.7 billion
(€975.3 billion; $941.8 billion) of assets under management at 31 December
2024. As a UK listed FTSE100 company, Schroders has a market capitalisation of
circa £6 billion and over 6,000 employees across 38 locations.
Established in 1804, Schroders remains true to its roots as a family-founded
business. The Schroder family continues to be a significant shareholder,
holding approximately 44% of the issued share capital.
Schroders' success can be attributed to its diversified business model,
spanning different asset classes, client types and geographies. The company
offers innovative products and solutions through four core business divisions:
Public Markets, Solutions, Wealth Management, and Schroders Capital, which
focuses on private markets, including private equity, renewable infrastructure
investing, private debt & credit alternatives, and real estate.
Schroders aims to provide excellent investment performance to clients through
active management. This means directing capital towards resilient businesses
with sustainable business models, consistently with the investment goals of
its clients. Schroders serves a diverse client base that includes pension
schemes, insurance companies, sovereign wealth funds, endowments, foundations,
high net worth individuals, family offices, as well as end clients through
partnerships with distributors, financial advisers, and online platforms.
The Company has submitted a copy of its Annual Financial Report to the
National Storage Mechanism and it will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
For further information, please contact:
Schroders
Charlotte Banks/Kirsty Preston (press) 020 7658 6000
Natalia de Sousa/Sunny Chou 020 7658 6000
(Schroder Investment Management Limited, Company Secretary)
Better Society Capital
Ian Young, PR & Media iyoung@bettersocietycapital.com (mailto:iyoung@bettersocietycapital.com)
Susanna Hudson, Investor Engagement shudson@bettersocietycapital.com (mailto:shudson@bettersocietycapital.com)
020 3821 5905
Winterflood Securities Limited
Neil Langford 020 3100 0000
Performance Summary (six months ended 31 December 2024)
NAV per share total return*
0.3%
Six months to 31 December 2023: 0.4%
Share price
76.50p
30 June 2024: 86.75p
Share price total return*
-8.6%
Six months to 31 December 2023: -4.0%
Share price discount to NAV per share*
24.7%
30 June 2024: 16.7%
Revenue return per share
2.28p
Six months to 31 December 2023: 1.03p
NAV per share
101.54p
30 June 2024: 104.13p
Some of the financial measures are classified as Alternative Performance
Measures ("APMs"), as defined by the European Securities and Markets Authority
and are indicated with an asterisk (*). Definitions of these performance
measures, and other terms used in this report, are given on pages 20 and 21
with supporting calculations where appropriate.
Investment objective
The Company's investment objective is to deliver measurable positive social
impact as well as long term capital growth and income, through investing in a
diversified portfolio of private market impact funds ("Impact Funds"),
separate accounts managed by third party asset managers ("Managed Accounts"),
co-investments alongside such funds or other impact investors (which may
include the Portfolio Manager) ("Co-Investments") and direct investments
("Direct Investments"), in each case so as to gain exposure to Social Impact
Investments. "Social Impact Investments" are investments intended to have a
positive social impact on people predominantly in the UK while providing a
financial return to investors, including, but not limited to, High Impact
Housing, Debt and Equity for Social Enterprises and Social Outcomes Contracts
(as such terms are defined in the investment policy).
Investments will be selected for their ability to contribute towards the
reduction of poverty and inequality as well as addressing other critical
social challenges in the UK.
The Company aims to provide a Net Asset Value total return of the United
Kingdom's Consumer Price Index ("CPI") plus 2% per annum (once the portfolio
is fully invested and averaged over a rolling three-to five-year period, net
of fees) with low correlation to traditional quoted markets, while making a
significant contribution to addressing social issues in the UK. The impact of
the Company's investments and how the Portfolio Manager's activities
contribute towards achieving a positive social impact will be measured and
reported on at least annually.
Chair's Statement
"The demand for the Company's funding remains strong, and the team remains
committed to financing the very best impact practitioners while delivering for
its shareholders."
The six months to 31 December 2024 were a period of stable portfolio
performance and enhanced reporting transparency for the Schroder BSC Social
Impact Trust plc (the "Company" or "Social Impact Trust"). The Company worked
towards and adopted the FCA's "Sustainability Impact" label, continued to
benefit from increased investment income, and deployed committed capital into
high impact investments. The Company's investments have enabled substantial
positive impact to be realised during the period, through the provision of
hundreds of new affordable homes and the delivery of life-changing services
for people across the UK. In the background, the Government has given positive
signals regarding increased social impact investment in the UK, suggesting a
positive outlook for investment opportunities for the Company.
However, although the Company's total net asset value ("NAV") return
performance was slightly positive in the period, the portfolio did not deliver
our target return, and the persistent share price discount to NAV continues to
be challenging for the Company and difficult for our shareholders. Managing it
has been, and remains, a priority for the Board. Further details are provided
below.
A mixed macro-economic backdrop
Following several years of headwinds, the economic backdrop in the second half
of 2024 saw some indications of stabilising, with GDP remaining largely flat
and the Bank of England decreasing the base rate from 5% to 4.75% in November
2024. The UK investment trust sector remained under significant pressure, with
alternatives strategies like ours languishing at large discounts and many
listed equity strategies responding to heightened shareholder activism.
There was continued uncertainty in the global political backdrop, given the US
presidential election and other elections during the period. In the UK, the
new Government has sought to emphasise stability, economic growth and targeted
funding for core strategic areas, alongside an increasing interest in social
impact investment as a tool to help finance key policy initiatives. A key
demonstration of this was its establishment of the Social Impact Investment
Advisory Group post-period end in February 2025, created to support the
development of the new Social Impact Investment Vehicle previously announced
in the budget. Stephen Muers, the CEO of Better Society Capital, the Company's
Portfolio Manager, has been appointed to the Advisory Group. We welcome the UK
Government's focus which should highlight the role of social impact investing
within both the policy landscape and the capital markets, and catalyse new
attractive and high-impact investment opportunities for the Company.
A strong impact performance and positive NAV total return
At NAV level, the Company delivered a broadly stable performance. The NAV
total return for the period was 0.3%, bringing NAV total return since
inception to 10.5% (2.5% annualised). NAV per share as of 31 December 2024 was
101.54p, declining from 104.13p as at 30 June 2024, following a 2.94p
dividend payment made on 20 December 2024. The Board is cognisant that the
total return has not achieved the target return set out at IPO, and that NAV
per share has declined. It has been an unusual period of extreme macro events
globally and instability within the UK, with high inflation and increased
rates making the return target of CPI +2% challenging, along with the negative
knock-on effects at our portfolio holdings. We nevertheless remain confident
in the skill of our Portfolio Manager and the quality of the portfolio, which
is maturing and should show continued moderate NAV growth and reasonable
risk-adjusted returns - alongside high social impact.
There were two exits at NAV completed post period-end; the partial repayment
of one of the Company's bond investments, and a second partial exit from the
Resonance Real Letting Property Fund LP. These exits at NAV, together with the
substantial additional private capital which we are seeing committed to the
portfolio's underlying funds, demonstrates the attractiveness and demand for
the assets within our portfolio.
Taking an impact lens, the Company adopted the "Sustainability Impact" label
in December 2024, as a clear outward representation of the depth and rigour of
our impact practice. We remain one of only a handful of companies to have the
label and believe it will have significant value over time, as the labels
become better understood and utilised more broadly by fund managers and retail
customers. We plan to release our fourth annual impact report towards the end
of June 2025, which will include case studies showing how the Company has
supported frontline organisations to address poverty, inequality and ill
health across the UK.
Continued focus on managing the discount
Despite the Company's resilient NAV and impact performance, the share price
has become increasingly challenged with a total share price total return
during the period of -8.6%. During the period under review, the discount
widened, with the Company trading at an average discount to NAV of 19.0%. As
at 31 December 2024, the discount to NAV was 24.7% and as at 26 March 2025,
the discount was 32.5%. Although the Social Impact Trust is not alone, with
much of the investment trust sector's prices under pressure, we recognise it
is a significant frustration for the Company's shareholders. The Board has
continued to operate the buyback programme during the period, buying back a
total of 909,928 shares at a total cost of £737,345. Since the period end,
the Company has repurchased a further 428,679 shares. The Board is conscious,
however, that buybacks do affect the size and liquidity of the Company; the
Board will continue to keep a close eye on the discount, and buy back shares
prudently when it is appropriate to do so.
In addition, the Company has been making every effort to reach new investors
and to demonstrate its unique proposition. For example, through refreshing its
investor-facing materials, travelling to meet regionally-based investors in
person, and speaking at industry events. These efforts continue in the current
year, with prospective and current shareholders to be invited to join the
Portfolio Manager to see in person the impact of the Company's investments "on
the ground", amongst other initiatives.
As should be expected, the Board continues to consider all appropriate actions
that might be taken to manage the discount and maximise value to shareholders.
Given the persistency of the challenge, tackling it is at the top of our
agenda, and we continue to speak to shareholders on this issue.
When the Company was launched in 2020, it committed to providing shareholders
with the opportunity to vote on the Company's continuation should the
Company's shares trade, on average, at a discount in excess of 10% to NAV for
the two-year period ending 31 December 2023 and in any subsequent two-year
period. The current period under assessment is the two-year period to
31 December 2025. In the event that a vote was triggered, shareholders would
be provided with the opportunity to vote on whether the Company should
continue in its present form at the AGM in 2026.
Outlook
While at a Company level, we are focused on tackling the market challenges
faced by the Social Impact Trust, we have a strong financial position with no
debt and remain positive about the transformative social impact that our
portfolio is having on improving people's lives.
We continue to believe that the Company offers a unique proposition to
investors, delivering deep positive impact to disadvantaged communities across
the UK. The underlying value of the portfolio is evidenced through recent
exits and poised for further growth as several of the larger investments
mature. Strong political alignment supports this momentum, and a promising
pipeline of opportunities is emerging in diverse and critical thematic areas.
The demand for the Company's funding remains strong, and the team remains
committed to financing the very best impact practitioners while delivering for
its shareholders.
Susannah Nicklin
Chair
26 March 2025.
Portfolio Manager's Report
Portfolio performance
The NAV total return for the six-month period to 31 December 2024 was 0.3%.
This resulted in a NAV total return since the Company's IPO on 22 December
2020 of 10.5%, or 2.5% annualised. Overall, the Company's NAV per share fell
from 104.13p to 101.54p following a dividend payment of 2.94p in the period
(based on the earnings of the company in the year to 30 June 2024), as set out
in the NAV bridge below.
As shown in the following table, portfolio returns to date have been driven by
the performance of more seasoned investments in their mature phase. Mature
investments have contributed 12.39% to NAV total return since launch in
December 2020, and 0.67% to NAV total return in the six months to 31 December
2024. Assets still in their investment phase are earlier in their life cycle
and J-curves1, but have started to ramp up and contributed 0.02% to NAV total
return in the six months to 31 December 2024. Once investments become fully
deployed, they are re-classified as "Mature" in our portfolio. On the basis of
capital drawn, Mature assets accounted for 59.7% of our portfolio as at 31
December 2024, compared to 66.0% as at 30 June 2024.
Some of the Company's higher impact investments involve the staged deployment
of capital over multiple years. The Portfolio Manager manages the Company's
committed but uncalled capital through Liquidity Assets, which aim to provide
sufficient liquidity to meet impact investment commitments while earning
commensurate returns. This allocation can be held as cash or invested in money
market funds, bond funds, real assets investment trusts and other liquidity
investments that align with the Company's liquidity requirements, meet high
sustainability standards and comply with the Company's investment policy.
Notably, no company-level investment management fees are chargeable on this
portion of the portfolio.
(1) The term J-curve is used to describe the typical trajectory of
certain types of investments, where low or negative returns in the early years
of the investments are followed by a steep rise in returns as investments
mature. In the case of the Company's investments, the J-curve effect is due to
investing in property purchases and developments, where the early years are
characterised by cost outlays, followed by a rise in returns as properties are
occupied, and rental yield and property valuation uplifts start to be
reflected in returns.
31 Dec 2024 31 Dec 2024 NAV total return NAV total return
% NAV high % NAV contribution contribution
impact exposure* invested* six months since launch*
to 31 Dec 2024*
Mature 67.4% 59.7% 0.67% 12.39%
Investment phase 37.6% 26.5% 0.02% 3.05%
Liquidity Assets - 14.4% 0.13% 0.14%
Fees, expenses and other costs - (0.6)% (0.57)% (5.12)%
105.0% 100.0% 0.25% 10.46%
*NAV of £83.4m as at 31 December 2024.
The following table shows the performance of the high impact investments in
the period; the main drivers of financial performance in the six-month period
to 31 December 2024 were:
- The Debt and Equity for Social Enterprises asset class includes
the Company's more mature investments and contributed 0.66p to NAV per share
growth in the period. Within this asset class, the Charity Bond portfolio had
the largest positive contribution to returns, thanks to a reduction of a
provision against one of the bonds following positive performance and
a partial repayment at NAV. The Bridges Inclusive Growth Fund ("BIGF") had a
negative contribution to NAV per share growth, as a result of a negative
restructuring adjustment related to the fund's conversion from an evergreen
structure, Bridges Evergreen Holdings ("BEH") to a closed-ended vehicle. As
part of the change in structure, the fund returned capital to investors from
the proceeds of the AgilityEco sale, as capital recallable into the BIGF, and
a one-off income dividend. Further detail on the fund restructure is provided
later in this report.
- In the High Impact Housing asset class, two-thirds of
commitments are into funds earlier in their life cycle, with funds still being
deployed towards the development or acquisition of safe and affordable homes;
this is reflected in the returns realised to date in the asset class, which
are still in their ramp-up phase. Valuations in the sector were negatively
affected by increases in discount rates and property management costs,
accounting for the negative NAV per share contribution of the Man Community
Housing Fund, and the Resonance Real Lettings Property Fund ("RLPF1")
respectively. Following interim period end, we had a second partial exit from
the RLPF1 portfolio to a new investor at NAV - delivering a return in line
with fund target and providing confidence in the valuations in our portfolio.
- The Social Outcomes Contracts continued to perform well,
delivering a strong positive contribution to NAV per share growth in the
period.
High Impact Portfolio
Contribution to the
Date of Value at Undrawn Company's
Company 31 December 2024 Value as commitment total return (last TVPI*** DPI*** Value
High Impact Portfolio Vintage investment (£)** % of NAV (£) six months) (pps) IRR***+
Debt & Equity Charity Bond Portfolio 2013-2022 2020 14,805,182 18% 0 0.70 1.15 0.30
for Social
Enterprises
Community Investment Fund 2014 2022 4,994,092 6% 577,621 0.10 1.27 0.29
Bridges Inclusive Growth Fund 2016 2020 4,476,788 5% 5,885,539 (0.54) 1.18 0.76
Charity Bank Co-Investment Facility 2019-2022 2020 3,355,543 4% 0 0.16 1.15 0.67 5.0%
Community Together Energy Limited 2023 2023 3,657,746 4% 0 0.18 1.09 0.08
Triodos Bank UK Bond Issue 2020 2020 2,516,712 3% 0 0.06 1.16 0.15
Total* 33,806,064 41% 6,463,160 0.66 1.16 0.44
High impact CBRE UK Affordable Housing Fund 2018 2020 10,360,349 12% 0 0.15 1.10 0.05
Housing
Social and Sustainable Housing 2019 2020 9,514,871 11% 494,664 0.25 1.07 0.06
Man Group Community Housing Fund 2021 2021 8,544,713 10% 1,260,240 (0.44) 0.98 0.01
Resonance Real Lettings Property Fund 2013 2020 5,594,077 7% 0 (0.12) 1.24 0.28 2.7%
Simply Affordable Homes 2024 2024 1,534,248 2% 3,383,367 (0.10) 0.95 0.00
Total* 35,548,258 43% 5,138,271 (0.26) 1.08 0.08
SOCs Bridges Social Outcomes Fund 2018 2020 2,527,559 3% 4,060,135 0.32 1.32 0.74 High single
Total* 2,527,559 3% 4,060,135 0.32 1.32 0.74 digit****
Total* 71,881,881 90% 15,661,566 0.72 1.14 0.31
*Totals may not sum due to rounding.
** Value including accrued interest where applicable.
***TVPI/DPI since Company investment. See below for calculation methodologies
used.
Calculation methodologies for TVPI, DPI & IRR:
TVPI (Total Value to Paid in) - (Value at year-end + distributions to
date)/Total paid into investment to date
DPI (Distribution to Paid in) - (Distributions to date)/Total paid into
investment to date
VIRR (Value IRR) - Internal rate of return, using value at period end to be
the terminal value and assumed realisation date
****Outperformed fund target, due to The Company investing at a more mature
stage of the fund, as Bridges SOF II was part of the seed portfolio at IPO.
+Since Company IPO.
Portfolio exits
During the six month period to 31 December 2024 (and shortly post period-end)
there have been a number of holdings returning capital via maturities or
exits, allowing the Company and the fund managers in its portfolio to reinvest
the capital into new high impact investments:
• Following the sale of AgilityEco from the BEH portfolio (discussed
in the Company's Half Year Report for the period ended 31 December 2023,
published in March 2024), the fund was transitioned to a closed-ended vehicle
and re-launched as BIGF2. The remaining assets in the BEH portfolio (New
Reflexions and the Ethical Housing Company) will continue to be managed by the
BIGF and proceeds from the sale of AgilityEco were distributed to investors as
a combination of a one-off dividend and capital recallable for investments
into the new strategy. As part of the fund restructure, the Company received a
total distribution of £6.7m, comprising income of £0.7m, and a £6.0m
capital distribution, recallable for future investments of the fund. The fund
remains committed to UK social impact, seeking to invest in "cash-generative
businesses that are purpose-driven and capable of delivering measurable
benefits to underserved communities", across three core outcome areas:
physical health, mental health, and economic and social inclusion.
• Following period end, the Company agreed a second partial exit at
NAV from RLPF1, amounting to £1.8m and reducing the Company's stake in the
fund from 7.5% to 5.1%. The realised return on this exit was 6.0%, in line
with the fund target return. In addition, the Company received a partial
repayment at NAV from one of the Charity Bonds in the portfolio, amounting to
£0.2m.
New investments
In April 2024, the Company approved a new £5m commitment to Simply Affordable
Homes ("SAH"), a limited partnership managed by Savills Investment Management,
which lies within our High Impact Housing asset class allocation. SAH will
invest in and manage a diversified portfolio of affordable housing, comprising
both affordable and social rent homes as well as shared-ownership homes,
generating government-backed and inflation-linked income streams. In October
2024, the fund had its first drawdown for its seed portfolio, comprising over
200 homes across 11 sites throughout England. With the fund still in its
investment period, further transactions are expected in H2 2025, leading to
the Company's commitment being over 50% drawn, and expected to be fully
deployed by 2026.
Social impact
The portfolio continues to deliver strong Social Impact performance benefiting
more disadvantaged groups across four key impact themes:
• reducing poverty and inequality;
• good health and wellbeing;
• education, training and decent work; and
• a just transition to net zero.
Since launch, the Company's investments have supported 194 social
organisations benefiting 400,000 people of whom 95% are from vulnerable,
disadvantaged or underserved backgrounds; generated £217m of value on public
and household savings and benefits; and funded 35,000 affordable, decent
homes3. We aim to work with organisations with deep experience in tackling
social issues in the local context, as we believe this reduces risk. The
average delivery track record of organisations in the portfolio is 25 years4.
These organisations have built strong relationships with local stakeholders,
deep knowledge of the social issues they are addressing, and are trusted by
their beneficiaries.
Social outcomes reported in the period include:
- Within the BIGF portfolio, New Reflexions had its new nine-bed home
for residential Learning Disability care successfully registered with the
regulator, Ofsted. This brings the total of newly registered beds to 17 this
year, across four new homes.
- SAH exchanged contracts on its seed portfolio and completed on the
first 141 homes. The remaining homes are scheduled to complete throughout
2025, bringing the total up to 200 homes spread across 11 sites located in the
Southeast, East and Midlands of the UK. The seed portfolio is a mixture of
affordable rent and shared ownership homes.
- The CBRE UK Affordable Housing Fund completed on a multi-family
development which the fund exchanged on in 2022. This scheme provides 184 new
build homes and demonstrates how the fund continues to increase the supply of
affordable housing, by repositioning an almost entirely private scheme into
100% affordable.
- The Social and Sustainable Housing portfolio now includes
20 borrowers who have secured 488 properties, housing 854 tenants.
- The Bridges Social Outcomes Fund II portfolio continued achieving
outcomes across a variety of social issue areas and as at 31 December 2024 had
supported over 36,000 vulnerable individuals across 12 projects.
We will be publishing a full review of the Company's social impact performance
in our fourth social impact report towards the end of June 2025. This will be
our first Impact Report published since applying the SDR Sustainability Impact
label.
Portfolio cash flows and balance sheet
In the period £2.6m was drawn down into new and existing investments:
- The majority of the capital (£2.3m) was deployed into the High Impact
Housing asset class: £1.6m into SAH for the acquisition of over 200 homes in
its seed portfolio, this was the first drawdown into the SAH fund, following a
new £5m commitment made in March 2024. A further £0.7m deployment was made
into Man Community Housing Fund. No new commitments were made in the period,
as the Company's capital is fully committed.
- Within Social Outcomes Contracts further investment was made into
projects supporting young people at risk of homelessness, improving the
quality of life of people living with long term health conditions via social
prescribing(5), and delivering improvements on the challenges of refugee
integration. The fund was a net distributor of capital after capital
distributions from existing projects.
The Company includes an allocation of up to 20% of net assets into Liquidity
Assets investments to mitigate cash drag during the investment period of
private funds. This allocation can be increased to 30% of Net Assets
immediately after a fundraise, as funds raised are committed to new high
impact investments.
Liquidity Assets investments sit within a broader set of tools to manage
Company cash and commitment levels, with the central objective of contributing
to the Company's target returns and impact goals by minimising the amount of
unproductive cash held prior to deployment. This allocation can be invested in
bond funds, real estate investment trusts, infrastructure trusts and other
liquid investments that align with the Company's liquidity requirements, meet
high ESG requirements and are compliant with the Company's investment policy.
As at 31 December 2024, the Company's Liquidity Assets6 holdings had a value
of £12.0m (14% of NAV) and were invested in bond funds, and renewable energy
trusts (£5.8m), and money market funds (£4.7m) with the remainder held in
cash (£1.5m); 92% of our Liquidity Assets portfolio is invested in
instruments with returns that are floating rate and/or benefit from inflation.
In the period under review, Liquidity Assets contributed 14bps to performance,
thanks to a combination of interest income from money market funds, and mixed
performance from the renewable energy investment trusts, where strong dividend
income was partially offset by valuation losses due to price declines.
Portfolio allocation (as at 31 December 2024)
Note: Portfolio allocation as per NAV of £83.4m as at 31 December 2024.
*Exposure: NAV of High Impact Investment + undrawn commitments.
Outlook
The start of the Company's new financial year was marked by the UK election,
bringing the Labour Party into power. The new government implemented several
initiatives to work with private capital to address some of the UK's most
urgent issues, such as the establishment of the National Wealth Fund and Great
British Energy, and a commitment to build 1.5m homes over the next five years.
More broadly, we've seen some positive macro signs, such as the stabilisation
of GDP, and the beginning of monetary easing, with the Bank of England
reducing base rates to 4.75% in November 2024. However, the path to
disinflation has been bumpier than originally thought, with a growing
expectation that interest rates will remain "higher for longer", and leading
economic indicators remaining subdued.
The Labour government published its first budget in October 2024, focused on
driving economic growth in the UK. Some of the measures announced have a mixed
impact on the social economy, with charities and social enterprises (including
some from the Company's portfolio) facing challenges to their financial
resilience as a result of cost increases related to the employer national
insurance contributions.
Turning to an impact lens, in December 2024, the Company was one of the first
investment companies to announce the adoption of the Sustainability Impact
label under the new FCA Sustainability Disclosure Requirements regime. We
welcome the labelling regime providing increased transparency to investors and
a clear standard confirming the rigour of our impact practice and believe that
being a labelled fund will be a valuable differentiation factor as the
labelling becomes more broadly understood and adopted in the industry.
Early in 2025, the Government announced the establishment of a new Social
Impact Investment Advisory Group, to mobilise social impact capital and
provide views on existing work across government on impact capital. Better
Society Capital's CEO Stephen Muers has joined the Group alongside other
sector experts, socially motivated investors and representatives from
Government and civil society. The formation of the Advisory Group follows the
Government's 2024 Budget commitment to create a Social Impact Investment
Vehicle to mobilise private investment that delivers positive social impact.
We welcome the commitment from the UK Government and regulators to work with
the impact sector and establish the UK as a leader in sustainable finance and
believe that the Company remains in a unique position to fund solutions and
organisations aligned with this approach.
(1 ) The term J-curve is used to describe the typical trajectory
of certain types of investments, where low or negative returns in the early
years of the investments are followed by a steep rise in returns as
investments mature. In the case of the Company's investments, the J-curve
effect is due to investing in property purchases and developments, where the
early years are characterised by cost outlays, followed by a rise in returns
as properties are occupied, and rental yield and property valuation uplifts
start to be reflected in returns.
(2 )
https://impact-investor.com/bridges-strengthens-commitment-to-uk-social-impact-with-new-investment-vehicle/
(3 ) Source: The Company's Impact Report 2024.
(4 ) Track record is the weighted average number of years in
operation per investee.
(5 ) NHS definition: Social prescribing is a key component of
Universal Personalised Care. It is an approach that connects people to
activities, groups, and services in their community to meet the practical,
social and emotional needs that affect their health and wellbeing.
(6 ) Please note that, for the purpose of portfolio management
reporting, this includes money market funds (current asset investments) and
cash at bank and in hand. These are reported separately to other liquidity
assets, for the purpose of financial reporting, on page 9 under the Investment
Portfolio and on page 14 under the Balance Sheet.
Jeremy Rogers, Hermina Popa
Better Society Capital
26 March 2025
Investment Portfolio
at 31 December 2024
Carrying Total
Listed/ Country of value(1) investments
Holding Nature of interest unlisted incorporation Industry sector £'000 %
CBRE UK Affordable Housing Fund Equity Shares Unlisted United Kingdom Investor in Affordable and Social Housing 10,308 12.4
Social and Sustainable Housing LP Limited Partnership Interest Unlisted United Kingdom Investor in Affordable and Social Housing 9,515 11.4
Man GPM RI Community Housing 1 LP Limited Partnership Interest Unlisted United Kingdom Investor in Affordable and Social Housing 8,545 10.3
Resonance Real Lettings Property Fund LP Limited Partnership Interest Unlisted United Kingdom Investor in Affordable and Social Housing 5,594 6.7
Simply Affordable Homes LP Limited Partnership Interest Unlisted United Kingdom Investor in Affordable and Social Housing 1,534 1.8
High Impact Housing 35,496 42.6
Community Investment Fund Limited Partnership Interest Unlisted United Kingdom Investor in Communities Supporting Social Inclusion and Change 4,994 6.0
Bridges Inclusive Growth Fund LP Limited Partnership Interest Unlisted United Kingdom Investor in Profit-With-Purpose Organisations 4,477 5.4
Community Energy Together Limited Debt Investment Unlisted United Kingdom Renewable Energy 3,506 4.2
Triodos Bank UK Limited 2020 Bond 4% 23/12/2030 Fixed Income Security Unlisted United Kingdom Ethical Banking 2,500 3.0
Rathbones Bond Portfolio: Hightown Housing Association 4% 31/10/2027 Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing) 2,483 3.0
Rathbones Bond Portfolio: Dolphin Square Charitable Foundation 4.25% Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing) 2,450 2.9
06/07/2026
Rathbones Bond Portfolio: Greensleeves Homes Trust 4.25% 30/03/2026 Fixed Income Security Listed United Kingdom Charity (Care Services) 2,357 2.8
Rathbones Bond Portfolio: RCB Bonds PLC 3.5% 08/12/2031 Fixed Income Security Listed United Kingdom Ethical Banking 2,223 2.7
Charity Bank Co-Invest Portfolio: Abbeyfield York 3.6% 12/05/2049 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 1,656 2.0
Rathbones Bond Portfolio: Thera Trust 5.5% 31/03/2024 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 1,546 1.9
Charity Bank Co-Invest Portfolio: Uxbridge United Welfare Trust 2.85% Fixed Income Security Unlisted United Kingdom Charity (Community and Social Housing) 1,517 1.8
20/12/2033
Rathbones Bond Portfolio: Alnwick Garden Trust 5% 27/03/2030 Fixed Income Security Listed United Kingdom Charity (Public Gardens) 1,500 1.8
Rathbones Bond Portfolio: Golden Lane Housing 3.9% 23/11/2029 Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing 952 1.1
Rathbones Bond Portfolio: B4RN (Broadband for Rural North Limited) 4.5% Fixed Income Security Unlisted United Kingdom Communications for Rural Communities 865 1.0
30/04/2026
Rathbones Bond Portfolio: Coigach ommunity CIC 5.248% 31/03/2030 Fixed Income Security Unlisted United Kingdom Renewable Energy 202 0.2
Charity Bank Co-Invest Portfolio: Abbeyfield Southdowns 3.35% 26/7/20442 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 168 0.2
Debt and Equity for Social Enterprises 33,396 40.0
Bridges Social Outcomes Fund II LP Limited Partnership Interest Unlisted United Kingdom Social Outcomes Contracts 2,528 3.0
Social Outcomes Contracts 2,528 3.0
Bluefield Solar Income Fund Equity Shares Listed Guernsey Renewable Energy Infrastructure 1,848 2.2
TwentyFour Sustainable Enhanced Income ABS Fund Equity Shares Listed Luxembourg Diversified 1,715 2.1
Greencoat UK Wind Plc Fund Equity Shares Listed United Kingdom Renewable Energy Infrastructure 1,293 1.6
Rathbone Ethical Bond Fund Equity Shares Listed United Kingdom Diversified 911 1.1
Liquidity Assets 5,767 7.0
Total investments(2) 77,187 92.6
Cash at bank and in hand 1,538 1.8
Money market funds(3) 4,670 5.6
Other net liabilities (14) -
Total Shareholder's funds 83,381 100.0
(1) Fixed income securities amounting to £20,419,000 are included at
amortised cost, excluding any accrued interest. These include investments
amounting to £11,965,000 which are listed, but traded in inactive markets.
(2) Total investments comprise:
£'000 %
Unquoted 59,455 77.0
Listed in the UK 14,169 18.4
Listed on a recognised stock exchange overseas 3,563 4.6
Total 77,187 100.0
(3) As at 31 December 2024, the Company's money market funds holding comprises
solely the HSBC Sterling ESG Liquidity Fund.
Interim Management Statement
Principal Risks and Uncertainties
The Board has determined that the key risks for the Company are strategic
risk, continuity risk, investment management risks, liquidity risk, valuation
risk, cybersecurity risk, economic and market risk, and policy risk. These
risks are set out on pages 34 to 36 of the Annual Report and Accounts for the
year ended 30 June 2024.
The Company's principal risks and uncertainties, and their mitigation, have
not changed materially since the publication, on 24 October 2024, of the
Annual Report and Accounts for the year ended 30 June 2024, and are not
expected to change materially for the remaining six months of the Company's
financial year.
Going concern
The Board has considered the Company's principal risks and uncertainties
(including whether there are any emerging risks); has scrutinised the detailed
cash flow forecast; and has considered their assessment of the likelihood and
quantum of funds which could be raised from sales of investments. As a result,
the Board is comfortable that the Company will have sufficient liquid funds to
pay operating expenses.
On this basis, the Board considers it appropriate to adopt the going concern
basis of accounting in preparing the Company's accounts.
Related party transactions
During the six months ended 31 December 2024, there have been no related party
transactions to report.
Directors' responsibility statement
The directors confirm that, to the best of their knowledge, this set of
condensed financial statements has been prepared in accordance with United
Kingdom Generally Accepted Accounting Practice, in particular with Financial
Reporting Standard 104 "Interim Financial Reporting" and with the Statement of
Recommended Practice, "Financial Statements of Investment Companies and
Venture Capital Trusts" issued in July 2022 and that this Interim Management
Report includes a fair review of the information required by 4.2.7 R and 4.2.8
R of the Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
The half-yearly financial report has not been audited nor reviewed by the
Company's auditor.
Signed on behalf of the Board of directors.
Susannah Nicklin
Chair
26 March 2025
Income Statement
for the six months ended 31 December 2024 (unaudited)
(Unaudited) (Unaudited) (Audited)
For the six months For the six months For the year
ended 31 December 2024 ended 31 December 2023 ended 30 June 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments held at fair value
through profit or loss - (1,875) (1,875) - (433) (433) - (833) (833)
Reversal of impairment
provision/(impairment provision)
on investments held at amortised cost - 235 235 - - - - (413) (413)
Income from investments 2,236 - 2,236 1,130 - 1,130 3,320 - 3,320
Other interest receivable
and similar income 116 - 116 161 - 161 167 - 167
Gross return/(loss) 2,352 (1,640) 712 1,291 (433) 858 3,487 (1,246) 2,241
Management fee (157) (157) (314) (172) (172) (344) (340) (340) (680)
Administrative expenses (312) - (312) (254) - (254) (497) - (497)
Transaction costs - - - - - - - (15) (15)
Net return/(loss) before taxation 1,883 (1,797) 86 865 (605) 260 2,650 (1,601) 1,049
Taxation 3 - - - - - - - - -
Net return/(loss) after taxation 1,883 (1,797) 86 865 (605) 260 2,650 (1,601) 1,049
Return/(loss) per share (pence) 4 2.28 (2.18) 0.10 1.03 (0.72) 0.31 3.16 (1.91) 1.25
The "Total" column of this statement is the profit and loss account of the
Company. The "Revenue" and "Capital" columns represent supplementary
information prepared under guidance issued by The Association of Investment
Companies. The Company has no other items of other comprehensive income, and
therefore the net return/(loss) after taxation is also the total comprehensive
income for the period.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
Statement of Changes in Equity
For the six months ended 31 December 2024 (unaudited)
Called-up
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2024 853 10,571 70,910 1,418 2,707 86,459
Repurchase of the Company's own shares into treasury - - (741) - - (741)
Dividend paid 5 - - - - (2,423) (2,423)
Net (loss)/return after taxation - - - (1,797) 1,883 86
At 31 December 2024 853 10,571 70,169 (379) 2,167 83,381
For the six months ended 31 December 2023 (unaudited)
Called-up
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2023 853 10,571 72,319 3,019 1,991 88,753
Repurchase of the Company's own shares
into treasury - - (781) - - (781)
Dividend paid 5 - - - - (1,934) (1,934)
Net (loss)/return after taxation - - - (605) 865 260
At 31 December 2023 853 10,571 71,538 2,414 922 86,298
For the year ended 30 June 2024 (audited)
Called-up
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2023 853 10,571 72,319 3,019 1,991 88,753
Repurchase of the Company's own shares
into treasury - - (1,409) - - (1,409)
Dividend paid 5 - - - - (1,934) (1,934)
Net (loss)/return after taxation - - - (1,601) 2,650 1,049
At 30 June 2024 853 10,571 70,910 1,418 2,707 86,459
Balance Sheet
at 31 December 2024 (unaudited)
(Unaudited) (Unaudited) (Audited)
31 December 31 December 30 June
2024 2023 2024
Note £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 56,768 62,772 62,321
Investments held at amortised cost 20,419 22,297 20,532
77,187 85,069 82,853
Current assets
Debtors 505 348 562
Current asset investments 4,670 - 3,106
Cash at bank and in hand 1,538 1,537 514
6,713 1,885 4,182
Current liabilities
Creditors: amounts falling due within one year (519) (656) (576)
Net current assets 6,194 1,229 3,606
Total assets less current liabilities 83,381 86,298 86,459
Net assets 83,381 86,298 86,459
Capital and reserves
Called-up share capital 6 853 853 853
Share premium 10,571 10,571 10,571
Special reserve 70,169 71,538 70,910
Capital reserves (379) 2,414 1,418
Revenue reserve 2,167 922 2,707
Total equity shareholders' funds 83,381 86,298 86,459
Net asset value per share (pence) 7 101.54 103.05 104.13
Registered in England and Wales as a public company limited by shares.
Company registration number: 12902443
Cash Flow Statement
For the six months ended 31 December 2024 (unaudited)
(Unaudited) (Unaudited) (Audited)
For the For the For the
six months six months year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Net cash inflow from operating activities 1,619 840 1,957
Investing activities
Purchases of investments (2,590) (5,694) (6,415)
Sales of investments 6,723 7,017 9,306
Net cash inflow from investing activities 4,133 1,323 2,891
Net cash inflow before financing 5,752 2,163 4,848
Financing activities
Dividend paid (2,423) (1,934) (1,934)
Repurchase of the Company's own shares into treasury (741) (781) (1,383)
Net cash outflow from financing activities (3,164) (2,715) (3,317)
Net cash inflow/(outflow) in the period 2,588 (552) 1,531
Cash and cash equivalents at the beginning of the period 3,620 2,089 2,089
Net cash inflow/(outflow) in the period 2,588 (552) 1,531
Cash and cash equivalents at the end of the period 6,208 1,537 3,620
Cash and cash equivalents comprise:
Money market funds 4,670 - 3,106
Cash at bank and in hand 1,538 1,537 514
Cash and cash equivalents at the end of the period 6,208 1,537 3,620
Notes to the Accounts
1. Accounts
The information contained within the accounts in this half year report has not
been audited or reviewed by the Company's independent auditor.
The figures and financial information for the year ended 30 June 2024 are
extracted from the latest published accounts of the Company and do not
constitute statutory accounts for that year. Those accounts have been
delivered to the Registrar of Companies and included the report of the auditor
which was unqualified and did not contain a statement under either section
498(2) or 498(3) of the Companies Act 2006.
2. Accounting policies
Basis of accounting
The accounts have been prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, in particular with Financial Reporting Standard
104 "Interim Financial Reporting" and with the Statement of Recommended
Practice "Financial Statements of Investment Trust Companies and Venture
Capital Trusts" issued by the Association of Investment Companies in July
2022.
All of the Company's operations are of a continuing nature.
The accounting policies applied to these accounts are consistent with those
applied in the accounts for the year ended 30 June 2024.
3. Taxation
The Company's effective corporation tax rate is nil, as deductible expenses
exceed taxable income. The Company intends to continue meeting the conditions
required to retain its status as an Investment Trust Company, and therefore no
provision has been made for deferred tax on any capital gains or losses
arising on the revaluation or disposal of investments.
4. Return per share
(Unaudited) (Unaudited) (Audited)
For the For the For the
six months six months year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Revenue return 1,883 865 2,650
Capital loss (1,797) (605) (1,601)
Total return 86 260 1,049
Weighted average number of shares in issue (excluding treasury shares)
during the period 82,582,301 84,273,938 83,834,790
Revenue return per share (pence) 2.28 1.03 3.16
Capital loss (2.18) (0.72) (1.91)
Total return per share (pence) 0.10 0.31 1.25
5. Dividend paid
(Unaudited) (Unaudited) (Audited)
For the For the For the
six months six months year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
FY 2024 interim dividend paid of 2.94p(1) (year ended 30 June 2023: 2.30p) 2,423 1,934 1,934
( )
(1) The 2024 interim dividend amounted to £2,439,000. However the amount
actually paid was £2,423,000, as shares were repurchased into treasury after
the accounting date but prior to the dividend record date.
No dividend has been declared in respect of the six months ended 31 December
2024.
6. Called-up share capital
Changes in called-up share capital during the period were as follows:
(Unaudited) (Unaudited) (Audited)
For the For the For the
six months six months year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Opening balance 830 846 846
Repurchase of shares into treasury (9) (9) (16)
Subtotal of allotted, called up and fully paid: 821 837 830
Shares held in treasury 32 16 23
Closing balance 853 853 853
Changes in the number of shares in issue during the period were as follows:
(Unaudited) (Unaudited) (Audited)
For the For the For the
six months six months year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
Ordinary Shares of 1p each 83,029,661 84,604,866 84,604,866
Repurchase of shares into treasury (909,928) (859,554) (1,575,205)
Subtotal of allotted, called up and fully paid: 82,119,733 83,745,312 83,029,661
Shares held in treasury 3,196,853 1,571,274 2,286,925
Closing balance of shares in issue 85,316,586 85,316,586 85,316,586
7. Net asset value per share
(Unaudited) (Unaudited) (Audited)
31 December 31 December 30 June
2024 2023 2024
Net assets attributable to shareholders (£'000) 83,381 86,298 86,459
Shares in issue at the period end 82,119,733 83,745,312 83,029,661
Net asset value per share (pence) 101.54 103.05 104.13
8. Financial instruments measured at fair value
The Company's financial instruments within the scope of FRS 102 that are held
at fair value comprise certain investments held in its investment portfolio.
FRS 102 requires that financial instruments held at fair value are categorised
into a hierarchy consisting of the three levels below. A fair value
measurement is categorised in its entirety on the basis of the lowest level
input that is significant to the fair value measurement.
Level 1 - valued using unadjusted quoted prices in active markets for
identical assets.
Level 2 - valued using observable inputs other than quoted prices included
within Level 1.
Level 3 - valued using inputs that are unobservable.
At 31 December, the Company's investment held at fair value, were categorised
as follows:
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Level 1 9,273 6,250 5,928
Level 2 - - -
Level 3 47,495 56,522 56,393
Total 56,768 62,772 62,321
There have been no transfers between Levels 1, 2 or 3 during the period
(period ended 31 December 2023 and year ended 30 June 2024: nil).
9. Uncalled capital commitments
At 31 December 2024, the Company had uncalled capital commitments amounting to
£15,662,000 (31 December 2023: £7,403,000 and 30 June 2024: £12,174,000) in
respect of follow-on investments, which may be drawn down or called by
investee entities, subject to agreed notice periods.
10. Events after the interim period that have not been reflected in
the accounts for the interim period
The directors are not aware of any events since the balance sheet date which
either require changes to be made to the figures included in the financial
statements or to be disclosed by way of note.
Definitions of Terms and Performance Measures
Terms as defined in the Prospectus dated 23 November 2020
AIFM or Manager Schroder Unit Trusts Limited or Alternative Investment Fund Manager
AIFM Directive the Directive on Alternative Investment Fund Managers, 2011/61/EU
Co-Investments co-investments made by the Company alongside Impact Funds or other impact
investors (which may include the Portfolio Manager)
Direct Investments investments of the Company that are neither interests in Impact Funds nor
Co-Investments
Eligible Social organisations such as community interest
Sector companies and community benefit societies
Organisations or other forms of organisation where there is a mission and asset lock in
place
Impact Funds private market impact funds, however structured, and other accounts managed by
third party asset managers
Liquidity Assets Assets that can easily be converted into cash in a short amount of time
NAV or Net Assets the value of the assets of the Company less
or Net Asset Value its liabilities, determined in accordance with the accounting principles
adopted by the Company from time to time
NAV per Share or the NAV attributable to any class of Shares
Net Asset Value divided by the number of Shares of the
per Share relevant class in issue (other than any Shares of the relevant class held in
treasury), and "NAV per Ordinary Share" shall be construed accordingly
Portfolio Manager, Better Society Capital Limited
Better Society
Capital or BSC
Social Impact investments intended to have a positive
Investments social impact on people in the UK while providing a financial return to
investors, including, but not limited to, High Impact Housing, Debt for Social
Enterprises and Social Outcome Contracts, and with the expectation that such
investments will predominantly be further invested in Eligible Social Sector
Organisations
SBSI Investment the investment committee of the Portfolio
Committee Manager established for the purpose of approving Social Impact Investments to
be made by the Company
Schroders the AIFM's ultimate holding company and its subsidiaries and affiliates
worldwide
The terms and performance measures below are those commonly used by investment
companies to assess values, investment performance and operating costs.
Numerical calculations are given where relevant. Some of the financial
measures below are classified as Alternative Performance Measures ("APMs") as
defined by the European Securities and Markets Authority. Under this
definition, APMs include a financial measure of historical financial
performance or financial position, other than a financial measure defined or
specified in the applicable financial reporting framework. APMs have been
marked with an asterisk.
Net asset value ("NAV") per share
The NAV per share of 101.54p (30 June 2024: 104.13p) represents the net assets
attributable to equity shareholders of £83,381,000 (30 June 2024:
£86,459,000) divided by the 82,119,733 (30 June 2024: 83,029,661) shares in
issue (excluding shares held in treasury) at the period end.
Total return*
The combined effect of any dividends paid, together with the rise or fall in
the share price or NAV per share. Total return statistics enable the investor
to make performance comparisons between investment companies with different
dividend policies. Any dividends received by a shareholder are assumed to have
been reinvested in either the assets of the Company at its NAV per share at
the time the shares were quoted ex-dividend (to calculate the NAV per share
total return) or in additional shares of the Company (to calculate the share
price total return).
The NAV total return for the period ended 31 December 2024 is calculated as
follows:
Opening NAV at 30/06/24 104.13p
Closing NAV at 31/12/24 101.54p
Dividend NAV on Cumulative
received XD date XD date Factor factor
2.94p 14/11/24 104.66p 1.0281 1.0281
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage change in the opening NAV: 0.3%
The NAV total return for the period ended 31 December 2023 is calculated as
follows:
Opening NAV at 30/06/23 104.90p
Closing NAV at 31/12/23 103.05p
Dividend NAV on Cumulative
received XD date XD date Factor factor
2.30p 09/11/23 104.22p 1.0221 1.0221
NAV total return, being the closing NAV,
multiplied by the factor, expressed as a
percentage change in the opening NAV: 0.4%
The share price total return for the period ended 31 December 2024 is
calculated as follows:
Opening share price at 30/06/24 86.75p
Closing share price at 31/12/24 76.50p
Share
Dividend price on Cumulative
received XD date XD date Factor factor
2.94p 14/11/24 80.50p 1.0365 1.0365
Share price total return, being the
closing share price, multiplied by
the factor, expressed as a percentage
change in the opening share price: -8.6%
The share price total return for the period ended 31 December 2023 is
calculated as follows:
Opening share price at 30/06/23 93.50p
Closing share price at 31/12/23 87.50p
Share
Dividend price on Cumulative
received XD date XD date Factor factor
2.30p 09/11/23 90.00p 1.0256 1.0256
Share price total return, being the
closing share price, multiplied by
the factor, expressed as a percentage
change in the opening share price: -4.0%
Discount/premium*
The amount by which the share price of an investment trust is lower (discount)
or higher (premium) than the NAV per share. The discount of premium is
expressed as a percentage of the NAV per share.
The discount at the period end amounted to 24.7% (30 June 2024: 16.7%), as the
closing share price at 76.50p (30 June 2024: 86.75p) was 24.7% lower (30 June
2024: 16.7% lower) than the closing NAV of 101.54p (30 June 2024: 104.13p).
Warning to shareholders
Companies are aware that their shareholders have received unsolicited
telephone calls or correspondence concerning investment matters. These are
typically from overseas-based 'brokers' who target UK shareholders, offering
to sell them what often turn out to be worthless or high risk shares or
investments.
These operations are commonly known as 'boiler rooms'. These 'brokers' can be
very persistent and extremely persuasive.
Shareholders are advised to be wary of any unsolicited advice, offers to buy
shares at a discount or offers of free company reports. If you receive any
unsolicited investment advice:
• Make sure you get the correct name of the person and
organisation.
• Check that they are properly authorised by the FCA
before getting involved by visiting https://register.fca.org.uk.
• Report the matter to the FCA by calling 0800 111 6768
or visiting www.fca.org.uk/consumers/report-scam-unauthorised- firm.
• Do not deal with any firm that you are unsure about.
If you deal with an unauthorised firm, you will not be eligible to receive
payment under the Financial Services Compensation Scheme.
The FCA provides a list of unauthorised firms of which it is aware, which can
be accessed at
https://www.fca.org.uk/consumers/unauthorised-firms-individuals#list.
More detailed information on this or similar activity can be found on the FCA
website at https://www.fca.org.uk/consumers/protect-yourself-scams.
Dividends
Paying dividends into a bank or building society account helps reduce the risk
of fraud and will provide you with quicker access to your funds than payment
by cheque.
Applications for an electronic mandate can be made by contacting the
Registrar, Equiniti.
This is the most secure and efficient method of payment and ensures that you
receive any dividends promptly.
If you do not have a UK bank or building society account, please contact
Equiniti for details of their overseas payment service.
Further information can be found at www.shareview.co.uk, including how to
register with Shareview Portfolio and manage your shareholding online.
Information about the Company
Directors
Susannah Nicklin (Chair)
James B. Broderick
Alice Chapple
Ranjan Ramparia
Registered Office
1 London Wall Place
London EC2Y 5AU
Advisers and service providers
Alternative Investment Fund Manager
(the "Manager")
Schroder Unit Trusts Limited
1 London Wall Place
London EC2Y 5AU
Portfolio Manager
Better Society Capital Limited
Script
44 Featherstone Street
London
EC1Y 8RN
Company Secretary
Schroder Investment Management Limited
1 London Wall Place
London EC2Y 5AU
Telephone: 020 7658 6000
Email address: AMCompanySecretary@schroders.com
(mailto:AMCompanySecretary@schroders.com)
Depositary and custodian
HSBC Bank plc
8 Canada Square
London E14 5HQ
Corporate broker
Winterflood Securities Limited
Riverbank House
2 Swan Lane
London EC4R 3GA
Independent auditors
BDO LLP
55 Baker Street
London W1U 7EU
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder helpline: 0800 032 0641(1)
Website: www.shareview.co.uk (http://www.shareview.co.uk)
(1)Calls to this number are free of charge from UK landlines.
Communications with shareholders are mailed to the address held on the
register. Any notifications and enquiries relating to shareholdings, including
a change of address or other amendment should be directed to Equiniti Limited
at the above address and telephone number above.
Shareholder enquiries
General enquiries about the Company should be addressed to the Company
Secretary at the address set out above.
Dealing Codes
ISIN: GB00BF781319
SEDOL: BF78131
Ticker: SBSI
Global Intermediary Identification Number (GIIN)
PXF89P.99999.SL.826
Legal Entity Identifier (LEI)
549300PG5MF2NY4ZRM86
Privacy notice
The Company's privacy notice can be found on its web pages.
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