REG - Schroder BSC Social - Half Year Report
Today 13:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260331:nRSe8855Ya&default-theme=true
RNS Number : 8855Y Schroder BSC Social Impact Trust 31 March 2026
Schroder BSC Social Impact Trust plc (the "Company")
Half Year Results
Schroder BSC Social Impact Trust plc (the "Social Impact Trust" or "Company")
hereby submits its Half Year Report for the six months ended 31 December 2025
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:
http://www.rns-pdf.londonstockexchange.com/rns/8855Y_1-2026-3-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8855Y_1-2026-3-31.pdf) .
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 101.06 pence (30 June 2025: 102.94 pence) after
dividend payment of 3.76 pence paid on 19 December 2025
· NAV total return per share of 2.0% (six months to 31 December
2024: 0.3%)
· NAV total return per share of 14.3% since inception (2.7%
annualised)
· Capital repayments totalling £3.8m were returned to the Company
at NAV, from maturities and scheduled repayments mainly in the Debt &
Equity for Social Enterprises asset class, as well as capital repayments from
Social Outcomes Contracts as projects matured
· 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)
The report comes as the Board is carrying out a strategic review into the
future of the Company, as announced on 2 July 2025 and updated on 4 September
2025 and 11 December 2025. The Board will continue to pursue alternative
options and intends to include proposals for the future of the Company
alongside the annual report and financial statements for the year ending 30
June 2026, to be published in October 2026.
Results Presentation
A recording of the Portfolio Manager discussing the results is available at
https://schro.link/yd4bab (https://schro.link/yd4bab) . The slides used for
the investor presentation is available at https://schro.link/y9k7wf
(https://schro.link/y9k7wf) .
Susannah Nicklin, Chair of Schroder BSC Social Impact Trust plc, said:
"Over the six months in review the Company has delivered a resilient NAV total
return alongside significant positive impact for many people across the UK.
From more affordable housing to top-quality live-in care, our portfolio of
investments continues to deliver essential goods and services for vulnerable
and underserved people every day. This period has also seen the Board and I,
alongside our advisors, continuing to progress our strategic review of options
for the Social Impact Trust's future, following a comprehensive consultation
with shareholders. We now intend to include proposals for the future of the
Company alongside the annual results, to be published in October, and would
like to take this opportunity to again thank all our shareholders for their
continued engagement."
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 £11
billion into social purpose organisations tackling issues from homelessness
and mental health to childhood obesity and fuel poverty, a more than
thirteen-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 £823.7 billion
(€943.4 billion; $1107.9 billion) of assets under management at 31 December
2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of
circa £6.5 billion and operates across 38 locations. Established in 1804,
Schroders remains true to its roots as a family-founded business. The
Principal Shareholder Group 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.
For further information, please contact:
Schroders
Charlotte Banks/Kirsty Preston (press) 020 7658 6000
Sunny Chou (Schroder Investment Management Limited, Company Secretary) 020 7658 6000
Better Society Capital
Lauren Rae, PR & Media lrae@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 2025)
Net Asset Value ("NAV") per share total return*
2.0%
Six months to 31 December 2024: 0.3%
Share price
64.50p
30 June 2025: 77.50p
Share price total return*
-12.4%
Six months to 31 December 2024: -8.6%
Share price discount to NAV per share*
36.2%
30 June 2025: 24.7%
Revenue return per share
1.24p
Six months to 31 December 2024: 2.28p
NAV per share*
101.06p
30 June 2025: 102.94p
* Alternative Performance Measure ("APM"), as defined by the European
Securities and Markets Authority. Definitions of these performance measures,
and other terms used in this report, are given on pages 24 and 25 together
with supporting calculations where appropriate.
Chair's Statement
Introduction
Over the six-month period in review, the Company has extensively consulted
with shareholders on our future strategic direction and continues to work with
our AIFM, Portfolio Manager, and other advisers to explore options for
delivering meaningful value, both in terms of financial performance and
ongoing impact, against a difficult and evolving market backdrop. Meanwhile,
our Portfolio Manager has continued to focus on managing the portfolio to
maximise returns and impact generation. The Social Impact Trust delivered a
NAV total return of 2.0%, driven by income generation across the portfolio and
valuation uplifts to some of the Debt & Equity for Social Enterprises
holdings. The Company paid out its largest dividend to date (3.76p per share)
and saw an additional trust-level realisation at NAV.
Importantly, the portfolio also continued to have a positive impact on
communities across the UK. In the period, our investees added further to the
country's social and affordable housing stock, supported home care for adults
with disabilities, and saw a number of Social Outcomes Contracts extended,
expanding access to important public services to more underserved people. For
illustration, please view the Company's Impact Map on the Company's web pages
at schroders.com/SBSI (https://www.schroders.com/SBSI) .
Strategic review
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 average discount for the two years to 31 December 2025 was 23.8%.
Since July 2025, the Board has been undertaking a strategic review of the
Company. This was initiated in response to the prolonged period of trading at
a steep discount to NAV and difficulty expanding the shareholder base. Whilst
we have demonstrably delivered against our impact goals and preserved capital
in a challenging environment, our financial returns have not tracked to our
target. Further, the wider UK investment trust market, particularly for
private market strategies, has been unsupportive for many reasons, including
consolidation in the wealth sector and the emergence of new types of
investment vehicles. The entrenched discount has been undesirable for our
shareholders and prevented the Company from raising additional capital, which
was a strategic goal from IPO.
The persistent discount and these other market dynamics continued to play out
in the period, with the Company experiencing a share price total return of
-12.4% for the six months to 31 December 2025 and an average discount to NAV
of 31.7%. The UK Investment Trust sector remains under pressure, and although
there has been some recovery in certain areas, alternative asset strategies
similar to ours have continued to suffer. These ongoing headwinds underpin the
need for a robust and thoughtful review of the Company's future.
The strategic review has to date consisted of the Board, together with the
AIFM, the Portfolio Manager, and other advisors engaging with shareholders and
undertaking extensive work to explore alternative options, including
alternative fund structures as well as a managed wind-down scenario, with a
view to providing an optimal solution in response to the diverse shareholder
feedback received.
The Board will continue to pursue alternative options and intends to update
shareholders and outline proposals for the future of the Company alongside
the Annual Report and Financial Statements for the year ending 30 June 2026,
to be published in October 2026.
Over the course of the strategic review, the Board has instructed the
Portfolio Manager not to make any new investments that would extend the
maturity of the portfolio. Currently, approximately 60% of the NAV is
committed to or invested in funds with a duration beyond 2030. The Portfolio
Manager continues to manage the existing portfolio in accordance with the
Company's investment policy. Given the anticipated liquidity profile of the
portfolio, the timing of the announcement is not expected to result in any
material delay in returning capital to shareholders.
Impact preservation and financial performance remain of utmost importance to
the Company as we evaluate options for its future and seek to balance
shareholder needs.
I would like to sincerely thank our shareholders for their continued
engagement during this time.
Growth of impact economy
The UK Government is continuing to show a welcome interest in and a support
for impact investing. In November 2025 the Government launched the Office
for the Impact Economy (the "Office"), which provides a single front door for
impact investors, philanthropy and purpose-driven businesses to partner with
the Government and grow their social impact across the UK. The Office was
created following recommendations from the Social Investment Advisory Group
and is housed in the Cabinet Office. This initiative should support future
demand for high-impact investments such as those in our portfolio.
Portfolio updates, exits, and NAV performance
The Company delivered a resilient NAV performance over the half year. The NAV
total return for the period was 2.0%, bringing NAV total return since
inception to 14.3% (2.7% annualised). NAV per share as of 31 December 2025 was
101.06p (102.94p at 30 June 2025), following the 3.76p dividend payment made
on 19 December 2025. The Board recognises that the NAV total return has not
achieved the target level set out at IPO, due largely to a long-term
challenging macro-environment and increased discount rates. The macro-economic
environment continued to negatively affect the high impact property
investments in the period, with ongoing high construction material prices and
the residual impact of developer insolvencies driving valuation declines in
some of these investments. However, proactive portfolio management, reflected
in improved performance of investments following restructurings (a new growth
trajectory for the Bridges Inclusive Growth Fund ("Bridges IGF"), and improved
operating performance at Thera Trust resulting in a significant repayment
tranche and removal of provision) has led to increases in valuation for the
Debt & Equity for Social Enterprises portion of the portfolio. Social
Outcomes Contracts continued to perform well.
During the period, there was one realisation at NAV, with a full repayment
of the Triodos bond issue, as well as a significant scheduled repayment of
the Thera Trust bond. There was further deployment of previously committed
capital, into affordable housing across funds in our portfolio, as well as a
new investment under the new strategy of the restructured Bridges IGF into
Alina Homecare. Alina focuses on delivering high quality care to the elderly
and disabled, whilst ensuring a supportive environment for its carers.
Discount management
Despite the Company's positive NAV performance, the share price has been under
further pressure during the period. The Board has continued to operate the
buyback programme during the period, buying back 1,859,413 shares at a cost of
£1,309,458 and the average discount of 31.5%, contributing 0.74p to NAV per
share. Since period end, the Company has repurchased a further 320,052 shares.
The Board sees this as a helpful way to provide market liquidity and make
accretive returns to ongoing shareholders.
Outlook
Challenges remain in the macro-economic backdrop, including continued
heightened geo-political uncertainty in light of recent events, with
meaningful implications for inflation and other economic factors. Whilst this
and the strategic review continues, our Portfolio Manager remains focused on
managing the underlying portfolio: mitigating risks, maximising the underlying
value, and preserving the ongoing impact of the Company's investments.
The Company continues to have a unique offering and this, together with the
support for the impact economy from the Government, further reinforces our
conviction that the Company's underlying assets remain an attractive
proposition for investors. We continue to be grateful for our shareholders'
support for this strategy, and the Board will continue to invite dialogue with
investors as we work towards the conclusion of our strategic review.
Susannah Nicklin
Chair
30 March 2026
Portfolio Managers' Review
Portfolio performance
The NAV total return for the six-month period to 31 December 2025 was 2.0%.
This resulted in a NAV total return since the 22 December 2020 IPO of 14.3%,
or 2.7% annualised. Overall, the Company's NAV per share fell from 102.94p to
101.06p following a dividend payment of 3.76p in the period (based on the
earnings of the Company in the year ended 30 June 2025), as set out in the NAV
per share performance bridge below.
NAV per share (pence) progression 1 July 2025 - 31 December 2025
The table on the next page under the heading "High Impact Portfolio" shows the
performance of the investments in the high impact portfolio in the period. The
main drivers of financial performance in the six-month period to 31 December
2025 were:
- The Debt & Equity for Social Enterprises asset class, which
includes the Company's more mature investments, contributed 1.87p to NAV per
share in the period. Within this asset class, Bridges IGF had the largest
contribution to returns (0.89p per share), thanks to strong trading in the
underlying portfolio companies, New Reflexions and Alina Homecare (a new
investment made in August 2025 by the fund under its refreshed strategy).
Furthermore, the contribution from Bridges IGF reflects the benefit of a
catch-up mechanism, agreed with the fund manager and approved by all fund
investors, to allow early investors (including the Company) to be compensated
for the negative adjustment previously incurred when the fund was
restructured. The catch-up mechanism allows for a larger allocation of the
fund's profit to earlier investors and should provide a full recovery of the
negative restructuring adjustment over time. The second largest contributor to
the positive performance was the Charity Bond portfolio (0.63p per share),
following the partial repayment at par of the restructured Thera Trust bond,
and the removal of a provision held against the bond.
- In the High Impact Housing asset class, just over one third of
commitments are into funds earlier in their life cycle, with funds being
deployed towards the development or acquisition of safe and affordable homes,
and thus still in their ramp-up phase. This is reflected in the returns
realised to date in the asset class. The High Impact Housing asset class
contributed 0.17p per share in the period. In the sector, residential property
yields and discount rates, and therefore valuations, have remained broadly
stable in the period. Construction sector insolvencies have reduced slightly
compared to 2024 but remain materially higher than pre-pandemic levels.
Combined with the still-elevated construction materials prices, the residual
impact of developer insolvencies accounts for negative NAV per share
contribution of the Man Community Housing Fund (-0.35p per share).
- Social Outcomes Contracts continued to perform strongly, delivering a
positive contribution to NAV per share of 0.32p per share in the period.
Portfolio cash flows and balance sheet
Capital repayments
During the period under review, capital repayments totalling £3.8m were
returned to the Company at NAV, with the majority coming from maturities and
scheduled repayments in the Debt & Equity for Social Enterprises asset
class. This included the full repayment of the Triodos Bank UK bond after it
reached maturity (a Company-level realisation), and a scheduled partial
repayment from Thera Trust within the Charity Bond Portfolio. There were also
further amortisation payments from the other debt investments and capital
repayments from Social Outcomes Contracts as projects matured.
As the strategic review progresses, we continue to manage the portfolio
prudently: no new commitments are being made that would lengthen portfolio
maturity, and repaid capital is held in Money Market Funds ("MMFs") which
generated an average return of 3.94% over the period under review. These funds
are earmarked to meet outstanding commitments to existing investments
(£10.6m) and to support the share buyback programme or other return of
capital the Board may determine as part of the strategic review.
Drawdowns to fund existing commitments
• The majority of the capital (£1.5m) was drawn into Bridges IGF to
fund its new investment into Alina Homecare, as well as to fund an organic
growth opportunity within New Reflexions (further detail on these investments
is included in the "Social impact" section of this review).
• 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(1), and delivering improvements on the challenges of refugee
integration. The Bridges Social Outcomes Fund II was a net distributor of
capital after capital distributions from existing projects.
Share buy-back programme
The Company's Board continued its share buyback programme, buying 1,859,413
shares in the period under review. The share buybacks contributed 0.74p to the
NAV per share.
Liquidity management
To avoid holding unproductive cash while awaiting drawdowns from our private
fund investments, the Company allocates up to 20% of net assets to a portfolio
of liquid investments ("Liquidity Assets"). These investments are selected to
generate returns, meet high ESG standards, and remain compliant with the
Company's investment policy. Eligible investments include bond funds, real
estate investment trusts, infrastructure trusts, and other liquid instruments
including MMFs.
How the Liquidity Assets portfolio has evolved
When the Company launched in late 2020, interest rates and inflation were at
historic lows, so the Liquidity Assets portfolio was initially invested in
fixed income funds to generate a modest yield above cash. As inflation rose
sharply through 2021 and 2022, we added renewable energy trusts, which tend to
benefit from higher energy prices and inflation, and shifted our bond exposure
away from fixed-rate towards floating-rate instruments (including MMFs), which
perform better in a rising rate environment. This repositioning served the
portfolio well as the Bank of England raised rates sharply through 2023.
As the rate-cutting cycle became apparent in 2024-25, we took profits on our
floating-rate bond holdings, while retaining our renewable energy trust
positions, which paid attractive income yields (contributing to the Company's
dividend payments). Throughout this period, any additional capital returned
was invested into MMFs, as we saw interest rates remaining "higher for
longer".
Current position
As at 31 December 2025, the Liquidity Assets portfolio(2) was valued at
£12.0m, representing 15% of NAV. This was invested across bond funds and
renewable energy trusts (£3.3m) and MMFs and cash holdings (£8.7m). The vast
majority (92%) of the portfolio is in instruments whose returns are linked to
floating interest rates and/or inflation.
During the period, the Liquidity Assets portfolio detracted 0.52p from overall
Company performance. This reflected weakness in the share prices of our
renewable energy trust holdings, which detracted from the dividend income they
generated on a total returns basis.
(1) 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.
(2) 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 12 under the
Investment Portfolio and on page 18 under the Balance Sheet.
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 196 social
organisations benefiting 422,000 people of whom 98% are from underserved or
disadvantaged backgrounds; generating £238m of value on public and household
savings and benefits, and providing 34,500 people with affordable decent homes
since Company inception(3). 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 20 years(4). 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 Bridges IGF portfolio, the fund made its first new
investment since the restructuring in 2024 into Alina Homecare. Alina is a
provider of high-quality hourly homecare and live-in care for vulnerable
individuals, supporting independence and quality of life. It delivered 1.2m of
hours of care to over 2,900 people in 2025, allowing elderly adults to live
independently and improve their quality of life. Alina operates 52 branches
across the South of England. Furthermore, existing portfolio company New
Reflexions completed its acquisition of Smoothstone Care and Education Ltd, a
specialist Learning Disability schools business. Smoothstone operates three
high quality schools focused on better outcomes for pupils with complex
learning disabilities.
• The CBRE UK Affordable Housing Fund is now fully committed,
exchanging on a further 152 new build houses within an existing development
asset in the period, culminating in the delivery of a total of 365 affordable
homes across the whole asset. All homes are above the National Minimum Space
Standards, are expected to achieve an EPC 'A' rating and are heated through an
air source heat pump system. At fund level, 40% of all homes are located in
local authority areas with the highest level of need, and on average, homes
are affordable to 70% of local households.
We will be publishing a full review of the Company's social impact performance
in our fifth social impact report in 2026.
Outlook
As the Company remains under strategic review, we continue to manage the
portfolio in line with the investment policy, with a focus on safeguarding the
value of your investments, managing risks and continuing to deliver
significant impact where it is most needed.
As at 31 December 2025, total commitments to high impact investments amounted
to 99% of the NAV of the portfolio, and 85% of NAV was invested in high impact
investments (with the remainder being held in Liquidity Assets to fulfil
undrawn commitments, comprising 15% of NAV). We continue to see income
generation in our portfolio, and expect to be in a position to pay a dividend
in the guidance range of 2-3% yield on NAV per share for the current financial
year ending 30 June 2026.
We are working with the Company's Board and advisors to outline proposals to
shareholders for the future of the Company, which will be published at the
same time as the Annual Report and Financial Statements for the year ended
June 2026 in October. In the meantime, the portfolio remains almost fully
committed to high impact investments, and capital repaid from maturing and
exiting investments is invested in MMFs earning interest broadly in line with
the Bank of England Base Rate.
As shown in this report, the Company's portfolio continues to deliver solid
financial performance alongside positive impact outcomes, providing solutions
to some of the UK's most significant challenges: access to decent housing,
health and care, education and employment, and climate and energy resilience.
We continue to see strong need for the services our portfolio companies
provide, in an environment of continued volatility (with geopolitical unrest
giving rise to renewed concerns about rising energy and living costs) and
persistent constraints on public spending. We believe the portfolio is well
positioned to navigate the current environment of geopolitical uncertainty and
renewed inflationary pressure, given its UK domestic focus, significant
exposure to Government-backed income streams and real asset underpinning
across property and renewable energy, while we continue to monitor the impact
of rising input costs (in particular energy and wages) on our underlying
investees.
Furthermore, we see growing momentum for catalysing new investment
opportunities in partnership with a supportive Government, committed to
working with private investment and the social sector.
Building on that momentum, and on Better Society Capital's 14-year track
record of building and growing the social investment market in the UK from
under £1bn to over £11bn(5), we have set out our 2026-2030 strategy(6), with
a clear ambition to mobilise significantly more capital into social impact
investment and positively impact millions of lives over the next decade, by
acting as a trusted bridge between social need, policy and investment
opportunity.
Working in partnership is key to growing the amount of money invested in
tackling social issues and inequality in the UK, and we strongly believe that
social impact investment has an important and distinctive role to play in
investors' portfolios: offering access to proven, locally-focused UK impact
opportunities that deliver tangible social outcomes alongside financial
returns, with low correlation to mainstream markets and diversification
benefits in volatile global conditions. We remain committed to helping
investors access this investment opportunity.
Jeremy Rogers, Hermina Popa
Better Society Capital
30 March 2026
(3) Source: SBSI Impact Report 2025.
(4) Track record is the weighted average number of
years in operation per investee.
(5) BSC market sizing:
https://bettersocietycapital.com/2024-market-sizing/
(6) BSC 2026-2030 Strategy:
https://bettersocietycapital.com/latest/our-2030-strategy/
Investment Portfolio
At 31 December 2025
Holding Nature of interest Listed/unlisted Country of incorporation Industry sector Carrying value(1) Total investments
£'000 %
CBRE UK Affordable Housing Fund Equity Shares Unlisted United Kingdom Affordable and Social Housing 10,346 12.9
Social and Sustainable Housing LP Limited Partnership Interest Unlisted United Kingdom Affordable and Social Housing 9,520 11.9
Man GPM RI Community Housing 1 LP Limited Partnership Interest Unlisted United Kingdom Affordable and Social Housing 8,285 10.3
Simply Affordable Homes LP Limited Partnership Interest Unlisted United Kingdom Affordable and Social Housing 3,671 4.6
Resonance Real Lettings Property Fund LP Limited Partnership Interest Unlisted United Kingdom Affordable and Social Housing 3,531 4.4
High Impact Housing 35,353 44.1
Bridges Inclusive Growth Fund LP Limited Partnership Interest Unlisted United Kingdom Profit-With-Purpose Organisations 7,313 9.1
Community Investment Fund Limited Partnership Interest Unlisted United Kingdom Communities Supporting Social Inclusion and 5,066 6.3
Change
Community Energy Together Limited 8.5% 31/03/2029 Debt Investment Unlisted United Kingdom Renewable Energy 3,045 3.8
Rathbones Bond Portfolio: Hightown Housing Association 4% 31/10/2027 Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing) 2,483 3.1
Rathbones Bond Portfolio: Dolphin Square Charitable Foundation 4.25% Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing) 2,450 3.1
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 2.9
Rathbones Bond Portfolio: RCB Bonds PLC 3.5% 08/12/2031 Fixed Income Security Listed United Kingdom Ethical Banking 2,223 2.8
Rathbones Bond Portfolio: Thera Trust 6% 30/12/2027 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 1,036 1.3
Rathbones Bond Portfolio: Alnwick Garden Trust 5% 27/03/2030 Fixed Income Security Listed United Kingdom Charity (Public Gardens) 1,500 1.9
Charity Bank Co-Invest Portfolio: Uxbridge United Welfare Trust 6.35% Fixed Income Security Unlisted United Kingdom Charity (Community and Social Housing) 1,388 1.7
12/12/2033
Rathbones Bond Portfolio: Golden Lane Housing 3.9% 23/11/2029 Fixed Income Security Listed United Kingdom Charity (Affordable and Social Housing) 952 1.2
Rathbones Bond Portfolio: B4RN (Broadband for Rural North Limited) 4.5% Fixed Income Security Unlisted United Kingdom Communications for Rural Communities 865 1.1
30/04/2026
Rathbones Bond Portfolio: Coigach Community CIC 7.049% 31/03/2030 Fixed Income Security Unlisted United Kingdom Renewable Energy 187 0.2
Charity Bank Co-Invest Portfolio: Abbeyfield Southdowns 6.25% 12/10/2028 Fixed Income Security Unlisted United Kingdom Charity (Care Services) 128 0.2
Debt and Equity for Social Enterprises 30,993 38.7
Bluefield Solar Income Fund Equity Shares Listed Guernsey Renewable Energy Infrastructure 1,344 1.7
Greencoat UK Wind Plc Fund Equity Shares Listed United Kingdom Renewable Energy Infrastructure 992 1.2
Rathbone Ethical Bond Fund Equity Shares Listed United Kingdom Diversified 979 1.2
Liquidity Assets 3,315 4.1
Bridges Social Outcomes Fund II LP Limited Partnership Interest Unlisted United Kingdom Social Outcomes Contracts 1,578 2.0
Social Outcomes Contracts 1,578 2.0
Total investments(2) 71,239 89.0
Cash at bank and in hand 2,040 2.6
Money Market Funds(3) 6,692 8.3
Other net assets 113 0.1
Total Shareholders' funds 80,084 100.0
(1) Debt investment and fixed income securities amounting to
£18,614,000 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 55,959 78.5
Listed in the UK 13,936 19.6
Listed on a recognised stock exchange overseas 1,344 1.9
Total 71,239 100.0
(3) As at 31 December 2025, 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 33 to 36 of the Annual Report and Financial
Statements for the year ended 30 June 2025.
The Company's principal risks and uncertainties, and their mitigation, have
not changed materially since the publication, on 30 October 2025, of the
Annual Report and Financial Statements for the year ended 30 June 2025, and
are not expected to change materially for the remaining six months of the
Company's financial year.
Going concern
The directors have assessed the principal risks and the impact of the emerging
risks and uncertainties within the going concern assessment period, being the
period to 31 March 2027, which is at least 12 months from the date of
approval of the financial statements.
The directors have taken into consideration the controls and monitoring
processes in place, the Company's level of working capital, undrawn
commitments and other payables, the level of operating expenses
(a significant proportion which are variable costs and would reduce in the
event of a market downturn), the Company's cash flow forecasts and the
liquidity of the Company's investments.
The directors have assessed the timing and quantum of cashflows from an
orderly realisation of assets in the event that liquidity is required to be
increased during the going concern assessment period.
The Company is undertaking a strategic review. The strategic review remains
ongoing and given the potential for structural change, the directors consider
that this introduces material uncertainty over the Company's future operations
within the period that going concern is being assessed. The Board further
notes that any change to investment policy and structure would be subject to
the shareholders' approval and therefore not guaranteed. This indicates that a
material uncertainty exists that may cast significant doubt on the Company's
ability to continue as a going concern. If shareholders vote for the Company
not to continue operating in its normal course of business, then the Company
may be unable to realise its assets and discharge its liabilities in the
normal course of business.
The Board intends to table recommended proposals on the future of the Company
at the same time as the Annual Report and Financial Statements for the year
ended June 2026 in October. Although the directors will be looking to put
forward proposals that have the broad support of shareholders, there can be no
assurance that the proposals will pass.
The directors believe the use of the going concern basis is appropriate, as
they believe that the Company has sufficient assets to continue in existence
and satisfy liabilities as they fall due although the Board recognises that
this conclusion is subject to the outcomes of the strategic review and
shareholder approvals.
Related party transactions
During the six months ended 31 December 2025, 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
30 March 2026
Income Statement
for the six months ended 31 December 2025 (unaudited)
(Unaudited) (Audited) (Unaudited)
For the six months For the year For the six months
ended 31 December ended 30 June ended 31 December
2025 2025 2025 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments
held at fair value through
profit or loss - (136) (136) - (2,408) (2,408) - (1,875) (1,875)
Reversal of impairment provision/(impairment provision) on investments held at - 177 177 - 235 235 - 235 235
amortised cost
Income from investments 1,226 - 1,226 4,053 - 4,053 2,236 - 2,236
Other interest receivable and similar income 156 - 156 307 - 307 116 - 116
Gross return 1,382 41 1,423 4,360 (2,173) 2,187 2,352 (1,640) 712
Investment management fee (138) (138) (276) (309) (309) (618) (157) (157) (314)
Administrative expenses (253) - (253) (647) - (647) (312) - (312)
Net return before taxation 991 (97) 894 3,404 (2,482) 922 1,883 (1,797) 86
Taxation 3 - - - - - - - - -
Net return after taxation 991 (97) 894 3,404 (2,482) 922 1,883 (1,797) 86
Return per share (pence) 4 1.24 (0.12) 1.12 4.15 (3.02) 1.13 2.28 (2.18) 0.10
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 2025 (unaudited)
Called-up
share Share Special Capital Revenue
capital premium reserve reserves reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
At 30 June 2025 853 10,571 69,439 (1,064) 3,688 83,487
Repurchase of the Company's own shares into treasury - - (1,310) - - (1,310)
Net (loss)/return after taxation - - - (97) 991 894
Dividend paid 5 - - - - (2,987) (2,987)
At 31 December 2025 853 10,571 68,129 (1,161) 1,692 80,084
For the year ended 30 June 2025 (audited)
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 - - (1,471) - - (1,471)
Net (loss)/return after taxation - - - (2,482) 3,404 922
Dividend paid 5 - - - - (2,423) (2,423)
At 30 June 2025 853 10,571 69,439 (1,064) 3,688 83,487
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)
Net (loss)/return after taxation - - - (1,797) 1,883 86
Dividend paid 5 - - - - (2,423) (2,423)
At 31 December 2024 853 10,571 70,169 (379) 2,167 83,381
Balance Sheet
at 31 December 2025 (unaudited)
(Unaudited) (Audited) (Unaudited)
31 December 30 June Restated
31 December
2025 2025 2024
Note £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss* 52,625 51,781 53,262
Investments held at amortised cost* 18,614 21,700 23,925
71,239 73,481 77,187
Current assets
Debtors 590 423 505
Current asset investments 6,692 9,009 4,670
Cash at bank and in hand 2,040 1,057 1,538
9,322 10,489 6,713
Current liabilities
Creditors: amounts falling due within one year (477) (483) (519)
Net current assets 8,845 10,006 6,194
Total assets less current liabilities 80,084 83,487 83,381
Net assets 80,084 83,487 83,381
Capital and reserves
Called-up share capital 6 853 853 853
Share premium 10,571 10,571 10,571
Special reserve 68,129 69,439 70,169
Capital reserves (1,161) (1,064) (379)
Revenue reserve 1,692 3,688 2,167
Total equity shareholders' funds 80,084 83,487 83,381
Net asset value per share (pence) 7 101.06 102.94 101.54
* For details of the prior period restatement, please refer to note 2.
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 2025 (unaudited)
(Unaudited) (Audited) (Unaudited)
For the For the For the
six months year six months
ended ended ended
31 December 30 June 31 December
2025 2025 2024
£'000 £'000 £'000
Net cash inflow from operating activities 710 2,878 1,619
Investing activities
Purchases of investments (1,515) (5,994) (2,590)
Sales of investments 3,798 13,452 6,723
Net cash inflow from investing activities 2,283 7,458 4,133
Net cash inflow before financing 2,993 10,336 5,752
Financing activities
Dividend paid (2,987) (2,423) (2,423)
Repurchase of the Company's own shares into treasury (1,340) (1,467) (741)
Net cash outflow from financing activities (4,327) (3,890) (3,164)
Net cash (outflow)/inflow in the period (1,334) 6,446 2,588
Cash and cash equivalents at the beginning of the period 10,066 3,620 3,620
Net cash (outflow)/inflow in the period (1,334) 6,446 2,588
Cash and cash equivalents at the end of the period 8,732 10,066 6,208
Cash and cash equivalents comprise:
Money market funds 6,692 9,009 4,670
Cash at bank and in hand 2,040 1,057 1,538
Cash and cash equivalents at the end of the period 8,732 10,066 6,208
Notes to the Financial Statements
for the six months ended 31 December 2025 (unaudited)
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 2025 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 2025.
Going concern
The directors have assessed the principal risks and the impact of the emerging
risks and uncertainties within the going concern assessment period, being the
period to 31 March 2027, which is at least 12 months from the date of approval
of the financial statements.
The directors have taken into consideration the controls and monitoring
processes in place, the Company's level of working capital, undrawn
commitments and other payables, the level of operating expenses (a significant
proportion which are variable costs and would reduce in the event of a market
downturn), the Company's cash flow forecasts and the liquidity of the
Company's investments.
The directors have assessed the timing and quantum of cashflows from an
orderly realisation of assets in the event that liquidity is required to be
increased during the going concern assessment period.
The Company is undertaking a strategic review. The strategic review remains
ongoing and given the potential for structural change, the directors consider
that this introduces material uncertainty over the Company's future operations
within the period that going concern is being assessed. The Board further
notes that any change to investment policy and structure would be subject to
the shareholders' approval and therefore not guaranteed. This indicates that a
material uncertainty exists that may cast significant doubt on the Company's
ability to continue as a going concern. If shareholders vote for the Company
not to continue operating in its normal course of business, then the Company
may be unable to realise its assets and discharge its liabilities in the
normal course of business.
The Board intends to table recommended proposals on the future of the Company
at the same time as the Annual Report and Financial Statements for the year
ended June 2026 in October. Although the directors will be looking to put
forward proposals that have the broad support of shareholders, there can be no
assurance that the proposals will pass.
The directors believe the use of the going concern basis is appropriate, as
they believe that the Company has sufficient assets to continue in existence
and satisfy liabilities as they fall due although the Board recognises that
this conclusion is subject to the outcomes of the strategic review and
shareholder approvals.
Prior period adjustment
An unquoted investment with a value of £3,506,000 that was classified as
"Investments held at fair value through profit or loss" has been restated to
be classified as "Investments held at amortised cost" for the six-month period
ended 31 December 2024. As such investments held at fair value through profit
or loss for the six-month period ended 31 December 2024 have decreased by
£3,506,000, and investments held at amortised cost have increased by the same
amount. There is no impact on other line items in the Balance Sheet, no impact
on NAV, nor on profit and loss.
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)
Six months (Audited) Six months
ended Year ended ended
31 December 30 June 31 December
2025 2025 2024
£'000 £'000 £'000
Revenue return 991 3,404 1,883
Capital loss (97) (2,482) (1,797)
Total return 894 922 86
Weighted average number of shares in issue (excluding treasury shares) during 79,850,438 82,103,774 82,582,301
the period
Revenue return per share (pence) 1.24 4.15 2.28
Capital return per share (pence) (0.12) (3.02) (2.18)
Total (loss)/return per share (pence) 1.12 1.13 0.10
5. Dividends paid
(Unaudited) (Unaudited)
Six months (Audited) Six months
ended Year ended ended
31 December 30 June 31 December
2025 2025 2024
£'000 £'000 £'000
FY 2025 interim dividend paid of 3.76p(1) (year ended 30 June 2024: 2.94p) 2,987 2,423 2,423
( )
(1) The 2025 interim dividend amounted to £3,049,000. However the
amount actually paid was £2,987,000, 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
2025.
6. Called-up share capital
(Unaudited) (Unaudited)
Six months (Audited) Six months
ended Year ended ended
31 December 30 June 31 December
2025 2025 2024
£'000 £'000 £'000
Ordinary Shares of 1p each, allotted, called up and fully paid:
Opening balance of 81,102,939 (year ended 30 June 2025: 83,029,661 and period 811 830 830
ended 31 December 2024: 83,029,661) shares
Repurchase of 1,859,413 (year ended 30 June 2025: 1,926,722 and period ended (19) (19) (9)
31 December 2024: 909,928) shares into treasury
Subtotal of allotted, called up and fully paid: 79,243,526 (year ended 30 June 792 811 821
2025: 81,102,939 and period ended 31 December 2024: 82,119,733) shares
Shares held in treasury 6,073,060 (year ended 30 June 2025: 4,213,647 and 61 42 32
period ended 31 December 2024: 3,196,853) shares
Closing balance 85,316,586 (year ended 30 June 2025: 85,316,586 and period 853 853 853
ended 31 December 2024: 85,316,586) shares
7. Net asset value per share
(Unaudited) (Audited) (Unaudited)
31 December 30 June 31 December
2025 2025 2024
Net assets attributable to shareholders (£'000) 80,084 83,487 83,381
Shares in issue at the period end 79,243,526 81,102,939 82,119,733
Net asset value per share (pence) 101.06 102.94 101.54
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 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.
The Company's investment portfolio was categorised as follows:
(Unaudited) (Audited) (Unaudited)
31 December 30 June 31 December
2025 2025 2024
£'000 £'000 £'000
Level 1 2,336 3,123 9,273
Level 2 979 942 -
Level 3 67,924 47,716 47,495
Total 71,239 51,781 56,768
There have been no transfers between Levels 1, 2 or 3 during the period (year
ended 30 June 2025 and period ended 31 December 2024: nil).
9. Uncalled capital commitments
At 31 December 2025, the Company had uncalled capital commitments amounting to
£10,607,907 (30 June 2025: £11,825,000 and 31 December 2024: £15,662,000)
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
financial accounts for the interim period
In March 2026, after the balance sheet date, Greensleeves Homes Trust have
exercised their right under the issue document of their charity bond to extend
the maturity by two years, from 31 March 2026 to 31 March 2028, increasing the
coupon rate by 1% to 5.25%. This amendment does not require any changes to the
figures included in the financial statements.
Apart from the above, 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.
30 March 2026
For further information:
Sunny Chou
Schroder Investment Management Limited
E-mail: AMCompanySecretary@Schroders.com
(mailto:AMCompanySecretary@Schroders.com)
Issued by Schroder Investment Management Limited. Registration No 1893220
England.
Authorised and regulated by the Financial Conduct Authority. For regular
updates by e-mail please register online at www.schroders.com
(https://url.uk.m.mimecastprotect.com/s/t7puCxn15T1LlkKtvh4FyxHrZ?domain=schroders.com/)
for our alerting service.
ENDS
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FFLFXQXLXBBL
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Schroder BSC Social Impact Trust
See all newsREG - Schroder BSC Social - Total Voting Rights
AnnouncementREG - Schroder BSC Social - Half Year Report
AnnouncementREG - Schroder BSC Social - Transaction in Own Shares
AnnouncementREG - Schroder BSC Social - Transaction in Own Shares
AnnouncementREG - Schroder BSC Social - Transaction in Own Shares
Announcement