REG - Schroders Cap Glbl - Half-year Report
18/09/2025 07:00
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RNS Number : 7646Z Schroders Capital Global Innovation 18 September 2025
Schroders Capital Global Innovation Trust plc
Half year report
For the six months ended 30 June 2025
Schroders Capital Global Innovation Trust plc (the "Company") hereby submits
its half year report for the six months ended 30 June 2025 as required by the
Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.2.
Tim Edwards, Chair of the Company, commented:
"£37 million, less costs, returned to shareholders by way of a tender offer."
Key highlights
· In the six months to 30 June 2025, the Company reported an
increase in NAV per share of 7.4% from 19.94p to 21.42p.
· The Company's life sciences portfolio was the main contributor to
performance, following the upward revaluation of Araris Biotech.
· The Company confirmed a capital return of £37 million less
costs, an increase from the initially projected £30 million, at a price of
21.119983 pence per ordinary share.
· The Board is keen that the Company can communicate directly with
its shareholders during the managed wind-down. Communications in relation to
future distributions of cash to shareholders will be sent directly via email.
Register using the following web address: https://www.schroders.com/inovcomms
(https://www.schroders.com/inovcomms)
The Company's half year report is being published in hard copy format and an
electronic copy of that document will shortly be available to download from
the Company's web pages www.schroders.com/inov (http://www.schroders.com/inov)
The Company's half year report will shortly be uploaded to the Financial
Conduct Authority's National Storage Mechanism and will be available for
inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
Enquiries:
Schroder Investment Management Limited
Charlotte Banks (Press) 020 7658 9063
Katherine Fyfe / Francesca Davis (Company 020 7658 6000
Secretary)
CHAIR'S STATEMENT
Managed wind-down progress
Since the start of the year, I have written to shareholders twice on behalf of
the Board. On 31 January 2025, the Board introduced the revised investment
thesis and recommended the managed wind-down of the Company, and at the
General Meeting on 27 February 2025, shareholders approved the Board's
proposals. At that time, the Board committed to consider methods to return
capital to shareholders as realisations of the Company's assets are made over
time. Following further careful consideration by the Board and its advisers,
it was determined that a series of tender offers was the most appropriate
method of returning capital ahead of a voluntary liquidation of the Company.
Consequently, in line with this commitment, I wrote to shareholders on 19 June
2025 with the Board's recommendation of a capital return of up to £37
million, less costs, by way of a tender offer. At the Company's General
Meeting on 10 July 2025, shareholders approved the tender offer resolution.
The ordinary shares were purchased by the Company at a final tender price of
21.119983 pence per ordinary share. After completion of the tender offer, the
Company has 635,361,925 ordinary shares in issue with no ordinary shares held
in treasury. Therefore, the total number of voting rights in the Company is
635,361,925.
Following conclusion of the Company's first tender offer, I would like to
remind shareholders that during the managed wind-down, the size and value of
the Company's portfolio will be reduced as investments are realised and
concentrated in fewer holdings. This may increase the volatility of the
Company's NAV as it is exposed to a portfolio with lower diversification.
Further, the Company might experience increased volatility in the price of its
shares as a result of possible changes to the structure of the Company's
portfolio during the managed wind-down.
Once a significant proportion of the Company's assets has been realised, the
Board will then consider proposing a resolution for a formal voluntary
liquidation of the Company, which will require additional shareholder approval
at the relevant time. As set out in the annual report, the Company's listing
and the ability to trade its shares will be maintained for as long as
practicable during the asset realisation process, subject to regulatory
considerations.
Future communication
The Board is keen that the Company can communicate directly with its
shareholders during the managed wind-down. We intend that communications in
relation to future distributions of cash to shareholders will be sent via
email. If you wish to receive these email notifications from the Company,
please register using the following web address:
https://www.schroders.com/inovcomms (https://www.schroders.com/inovcomms)
Performance and valuation
During the six-month period to 30 June 2025, the NAV per share increased by
7.4% from 19.94p per share to 21.42p per share; the share price increased by
39.1% from 11.00p to 15.30p; and the share price discount to NAV per share
narrowed from 44.8% to 28.6%.
The Company's life sciences portfolio was the main contributor to performance,
following the upward revaluation of Araris Biotech ("Araris"). Originally
purchased by Schroders Capital in October 2022 for CHF 3.0 million (£2.6
million), Araris was subsequently sold to Taiho Pharmaceutical Co. Ltd,
generating an upfront payment of £18.5 million at closing, with the potential
for further distributions subject to near and long-term milestones. As a
result, the fair market value increased to £17.8 million. The Company's
private equity growth holdings' performance was positively impacted by
AI Company II(1), which secured a significant new investment, resulting in a
£6.6 million fair value gain, however this was partially offset by downward
valuations of the Company's holdings in Ada Health and Agrostar.
The strong performance of Araris and AI Company II builds on the previously
announced positive realisations of Anthos, Carmot, and Tessian. These
realisations, as well as strong results from other portfolio companies such as
Revolut and MMC SPV 3, have meant the new investments made by Schroders
currently stand at 1.2x MoIC (Multiple of Invested Capital). Pleasingly, the
Company has already received back c.40% of the value of the initial
investments that Schroders Capital has made.
During the half year, the Company made realisations of equities totalling
£30.2 million. As at 30 June 2025 (and before the repayment of capital of
£37 million), the Company had £57.3 million in cash and liquid money market
funds, and £2.8 million in liquid public equity investments.
More details on the Company's performance can be found in the Investment
Manager's Review on pages 6 to 9.
Board composition
Lamia Baker retired from the Board at the Annual General Meeting held in May
2025, and I have previously thanked her for her contribution to the Company.
Following Lamia's retirement, and after careful consideration of the Company's
current status, the Board decided to maintain its current size and composition
of three Directors.
Half year results presentation
A video presentation providing an overview of the Company's half year results
will be published shortly and will be accessible via the Company's website. If
you would like to receive an email notification once it is live, please ensure
you are subscribed to receive the Company's updates via email,
https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/schroders-capital-global-innovation-trust/never-miss-an-update/
(https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/schroders-capital-global-innovation-trust/never-miss-an-update/)
Regular news about the Company can also be found on the Company's website.
Outlook
As the Company progresses with its managed wind-down, the Investment Managers
will continue to execute the Company's investment policy and balance timely
cash returns to shareholders with the maximisation of value. Prudent cash
management will be maintained to ensure resource for the portfolio, ongoing
costs, and any unforeseen circumstances.
The Board would like to thank shareholders for their support for the recent
tender offer. Together the Board and the Manager remain committed to
delivering the best possible outcome for shareholders via the managed
wind-down.
¹Actual name not disclosed due to confidentiality.
Tim Edwards
Chair
17 September 2025
INVESTMENT MANAGER'S REVIEW
"Our objective is to balance timely cash returns to shareholders with the
maximisation of value."
Summary
The Company reported an NAV of 21.42p per share as at 30 June 2025,
representing a 7.4% increase compared with the NAV per share of 19.94p as at
31 December 2024.
On 31 January 2025, the Board announced a General Meeting for 27 February
2025, where shareholders approved the discontinuation resolution and adopted a
revised investment objective and policy, providing for the Company's managed
wind-down, orderly asset realisation, and initial return of capital.
We are pleased with the initial capital return of £37 million that was
increased from the initially projected £30 million, following the proceeds
received during the six-month period to 30 June 2025. During this period, the
Company realised proceeds of £30.2 million, primarily from the sale of Araris
to Taiho Pharmaceutical, which generated £18.5 million (after adjusting for
the technical conversion of a convertible loan). In addition, AI Company II¹
secured a significant investment from a new strategic investor, resulting in a
special capital dividend for the Company of £8.4 million.
The principal driver of performance over the six-month period was the upward
revaluation of Araris, following its sale to Taiho Pharmaceutical Co. Ltd., an
increase in fair market value of £17.8 million.
Source: J.P. Morgan/Schroders.
¹ Actual name not disclosed due to confidentiality. Past performance is not
a guide to future performance and may not be repeated. The value of
investments and the income from them may go down as well as up and investors
may not get back the amounts originally invested.
Financial performance
YTD 2025 performance
As at 30 June 2025, the NAV stood at £173.2 million, representing an increase
of 6.7% compared with £162.4 million at 31 December 2024. The NAV per share
rose to 21.42p, up 7.4% from 19.94p over the same period. The performance
between total NAV and NAV per share is different due to the repurchase and
cancellation of shares over the period.
The 6.7% increase in NAV comprised:
- Public equity: -0.7%
- Private equity growth: 0.4%
- Private equity venture: -3.0%
- Private equity life sciences: 10.4%
- Money market funds: 0.6%
- Costs and other movements: -1.0%
Attribution analysis (£m)
Private equity Money Cash and cash
Life sciences Venture Growth Public equity market funds equivalents Other NAV
Value as at
31 December 2024 20.8 31.9 74.8 4.0 29.6 1.9 (0.6) 162.4
+ Investments 3.5 - - - 18.0 (21.5) - -
- Realisations at value (21.3) - (8.9) - (0.9) 31.1 - -
+/- Fair value gains/(losses) 16.9 (4.8) 0.7 (1.2) 0.9 - - 12.5
+/- Reclassified holdings - - - - - - - -
+/- Costs and other movements - - 0.1 - - (1.8) - (1.7)
Value as at
30 June 2025 19.9 27.1 66.7 2.8 47.6 9.7 (0.6) 173.2
Source: J.P. Morgan/Schroders
Private equity life sciences holdings
11 of 12
Life sciences portfolio companies have reached clinical stage
The Company's life sciences holdings saw an increase in value of 81.2%,
contributing 10.4% to the increase in NAV over the six-month period. This
increase was driven overwhelmingly by the acquisition of Araris by Taiho
Pharmaceutical, which included an immediate upfront payment as well as
additional milestone payments. Araris was an investment made by Schroders in
Q3 2022.
Additionally, Anthos Therapeutics announced its acquisition by Novartis during
the first quarter.
Private equity growth holdings
The Company's growth holdings increased in value by 0.9%, contributing 0.4% to
NAV growth over the six-month period. This was driven primarily by AI Company
II, which secured a significant new investment from a strategic investor,
resulting in a £6.6 million fair value gain, partially offset by downward
revaluations of both Ada Health and AgroStar. AgroStar was revalued to reflect
the terms of a recent funding round, in which the Company did not participate.
Private equity venture holdings
The Company's venture holdings saw a decrease in value of 15.0%, detracting
3.0% from the increase in NAV over the six-month period. This was primarily
driven by a downwards revaluation of Federated Wireless due to a decrease in
valuation multiple, reflecting movements in market comparables.
Public equity holdings
The Company's public equity holdings, predominantly Autolus Therapeutics, saw
a decrease in value of 30.0%, detracting 0.7% from the increase in NAV over
the six-month period.
Autolus Therapeutics reported a fair value loss of 13.3% in the first half of
2025. Its lead therapy, obe cel (AUCATZYL), received conditional approvals in
the UK and EU for adults with relapsed or refractory B cell acute
lymphoblastic leukemia (B ALL). In the US, sales reached $29.9 million in the
first six months, increasing from $9.0 million in Q1 to $20.9 million in Q2,
with more than 90% of US medical lives covered by insurers by the end of the
period. In the UK, the National Institute for Health and Care Excellence
(NICE) issued draft guidance recommending against routine NHS funding, and in
Europe the therapy is not expected to be available to patients until at least
2027 pending reimbursement agreements. Upcoming milestones include a final
NICE decision in October, results from a pediatric leukemia trial, further
lupus data, and the start of a Phase 1 multiple sclerosis trial and a pivotal
Phase 2 lupus nephritis trial by year end. Despite some set backs during the
period, the Investment Manager continues to see further upside potential from
the current share price, subject to the developments of the upcoming
milestones.
For help in understanding any terms used, please visit address
https://www.schroders.com/en-gb/uk/individual/glossary/
Foreign Exchange
Over the half year, the fair value of investments denominated in United States
Dollar (USD), were negatively impacted by the appreciation of the British
Pound Sterling (GBP). Meanwhile, the fair value of investments denominated in
Swiss Franc (CHF) and Euro (EUR) were positively impacted by the depreciation
in the value of the British Pound Sterling (GBP).
Cash and debt
£57.3 million
Cash position and liquid money market funds
As at 30 June 2025, the Company held £57.3 million in cash and liquid money
market funds, sufficient to fund the initial £37 million return of capital
(completed in July), meet existing portfolio funding requirements, and cover
ongoing operating costs.
Past performance is not a guide to future performance and may not be repeated.
The value of investments and the income from them may go down as well as up
and investors may not get back the amounts originally invested. This report is
not to be considered a recommendation to buy or sell any securities. For
further information regarding the costs and charges associated with your
investment, please refer to the annual report.
Investment activity
During the six months to 30 June 2025, the Company realised £30.2 million,
primarily from a £21.3 million distribution following the sale of Araris.
After adjusting for the technical conversion of a convertible loan, this
resulted in net realisation proceeds of £18.5 million. In addition, AI
Company II secured a significant new investment from a strategic investor,
resulting in a special capital dividend of £8.4 million for the Company.
Over the period, besides realisations of £30.2 million (primarily arising
from Araris & AI Company II referred to above) the Company made
a follow-on investment of £0.7 million into Neurona Therapeutics, with
approval from the Board.
Outlook
Following shareholder approval of the discontinuation resolution, the Company
has transitioned to a managed wind-down, with a clear focus on realising the
existing portfolio in an orderly manner. Our objective is to balance timely
cash returns to shareholders with the maximisation of value. Accordingly,
while liquidity generation has historically centred on the legacy portfolio,
our efforts will now extend across the entire portfolio. No new investments
will be made, except where required to honour existing contractual commitments
or, with prior Board approval, to support existing holdings.
As at 30 June 2025, the Company held £57.3 million in cash and liquid money
market funds, representing 33% of net asset value. This enabled the completion
of a £37 million tender offer (before costs) in July. The tender offer amount
was increased from £30 million following proceeds received from AI Company
II.
Looking ahead, further exits are expected to be achieved primarily through
trade sales and IPOs, though exit events are likely to involve an element of
deferred consideration, either from IPO lock-up provisions or structured
trade-sale payments.
Any additional proceeds realised during the wind-down will be retained in cash
and liquid money market funds prior to further returns to shareholders.
Top 10 investments
31 December 2024 30 June 2025
Value Value
Portfolio company Strategy (£'000) % of NAV (£'000) % of NAV
Atom Bank(1) Growth 23,105 14.2% 23,105 13.3%
Revolut(2) Growth 14,577 9.0% 14,496 8.4%
Nexeon(1) Venture 7,805 4.8% 7,833 4.5%
Back Market(3) Growth 8,113 5.0% 7,673 4.4%
Salica Environmental Technologies Fund(4) Growth 8,168 5.0% 7,175 4.1%
AI Company II Growth 7,984 4.9% 6,167 3.6%
AgroStar(5) Growth 7,907 4.9% 5,955 3.4%
Anthos Therapeutics Life sciences 3,612 2.2% 3,934 2.3%
CeQur(1) Life sciences 4,163 2.6% 3,902 2.3%
AI Company III Venture 3,992 2.5% 3,649 2.1%
(1) Assets inherited from the previous Investment Manager.
(2) Revolut is held via the Company's holding in Target Global Selected
Opportunities, LLC - Series Space, a single asset fund.
(3) Back Market is held via the Company's holding in Sprints Capital Ellison
LP, a single asset fund.
(4) Previously HP Environmental Technologies Fund.
(5) AgroStar is held via the Company's holding in Schroders Capital Private
Equity Asia Mauri VIII Ltd, a single asset fund.
Portfolio's two largest positions
Atom Bank
Leading UK app-only challenger bank
Atom Bank is the UK's first bank built exclusively for mobile. It aims to
redefine what a bank should be, making things easier, more transparent, and
better value. Atom Bank currently offers savings accounts, mortgages and
business loans.
In June 2025, Atom Bank published its annual report for the 12 month period
to 31 March 2025, with key highlights including:
- Deposits grew by 31% from £5.7 billion to £7.5 billion
- Loan book grew by 29% from £4.1 billion to £5.3 billion
- Net interest income increased by 2.6% from £100 million to £102
million
- Net interest margin decreased from 2.8% to 2.2% driven by a maturing
fixed rate book and renewals in new base rate environment
- Operating profit decreased by 5.6% from £26.6 million to £25.1
million, primarily due to increased staff headcount and increased loan
servicing fees
Source: Atom Bank Annual Report (Info for Investors - How Atom Disrupts
Banking | Atom bank)
Revolut
Global neobank and financial technology company
Revolut is a fintech firm that provides banking and payment services. The
company offers multi-currency cards and a mobile app that includes currency
exchange, peer-to-peer payment and bank transfer solutions. It also offers
personal and business banking solutions.
In April 2025, Revolut released its annual report for 2024 with key highlights
including:
- Number of retail customers increased 38% from 38 million to 52.5
million
- Total customer balances increased 66% from £18.2 billion to £30.2
billion
- Annual transaction volume increased by 52%
- Revenues increased by 72% to £3.1 billion
- Net profit increased by 130% from £344 million to £790 million
In July 2024, the company received its UK banking license with restrictions
from the Prudential Regulation Authority (the regulator responsible for
overseeing the UK banking sector) which should enable the company to complete
the build out of their UK banking operations. In August 2024 the company
announced a secondary share sale, providing liquidity for employees at a $45
billion valuation led by international institutional investors.
Source: Revolut Annual Report (Financial Statements | Revolut United Kingdom)
INVESTMENT PORTFOLIO
as at 30 June 2025
The 20 largest investments account for 95.6% of total investments by value (31
December 2024: 94.4% and 30 June 2024: 92.1%).
Total
Fair value investments
Holding Quoted/unquoted Strategy Industry sector £'000 %
Equities
Atom Bank(1) Unquoted Growth Financials 23,105 14.1
Revolut(3) Unquoted Growth Financials 14,496 8.8
Nexeon1 Unquoted Venture Industrials 7,833 4.8
Back Market(2) Unquoted Growth Consumer 7,673 4.7
Salica Environmental Technologies Fund(8) Unquoted Growth Industrials 7,175 4.4
AI Company II Unquoted Growth Technology 6,167 3.8
AgroStar(4) Unquoted Growth Consumer 5,955 3.6
Anthos Therapeutics Unquoted Life sciences Health Care 3,934 2.4
CeQur(1) Unquoted Life sciences Health Care 3,902 2.4
AI Company III Unquoted Venture Technology 3,649 2.2
Securiti Unquoted Venture Technology 3,649 2.2
Genomics(1) Unquoted Venture Health Care 3,288 2.0
iOnctura Unquoted Life sciences Health Care 3,122 1.9
MMC SPV 3 LP7 Unquoted Venture Technology 3,032 1.8
Attest Technologies Unquoted Venture Business Services 2,839 1.7
Autolus Therapeutics(1) Quoted Public Health Care 2,783 1.7
Araris Biotech Unquoted Life sciences Health Care 2,418 1.5
Federated Wireless(1) Unquoted Venture Technology 2,287 1.4
Epsilogen Unquoted Life sciences Health Care 2,021 1.2
Neurona Therapeutics Unquoted Life sciences Health Care 1,973 1.2
Kymab(1) Unquoted Life sciences Health Care 1,707 1.0
Ada Health Unquoted Growth Health Care 1,513 0.9
Bizongo(5) Unquoted Growth Business Services 584 0.4
A2 Biotherapeutics Unquoted Life sciences Health Care 466 0.3
Industrial Heat(1) Unquoted Venture Industrials 445 0.3
Memo Therapeutics Unquoted Life sciences Health Care 333 0.2
Econic(1) Unquoted Venture Industrials 102 0.1
AMO Pharma(1) Unquoted Life sciences Health Care -
BenevolentAI(1,6) Unquoted Venture Health Care -
Bodle Technologies(1) Unquoted Venture Technology -
Carmot Therapeutics Unquoted Life sciences Health Care -
Evofem Biosciences(1) Unquoted Life sciences Health Care -
Freevolt(1) Unquoted Venture Technology -
Just Benchmarks(1) Unquoted Venture Financials -
Kind Consumer(1) Unquoted Venture Consumer Staples -
Lignia Wood(1) Unquoted Venture Industrials -
Mafic(1) Unquoted Venture Industrials -
Metaboards(1) Unquoted Venture Technology -
Novabiotics(1) Unquoted Life sciences Health Care -
OcuTerra(1) Unquoted Life sciences Health Care -
Oxsybio(1) Unquoted Life sciences Health Care -
Reaction Engines(1) Unquoted Venture Industrials -
Rutherford Health(1) Unquoted Venture Health Care -
Spin Memory(1) Unquoted Venture Technology -
Total equities 116,451 71.0
Money market funds
Schroder Special Situations - Sterling
Liquidity Plus Fund Cash Collectives 47,615 29.0
Total money market funds 47,615 29.0
Total investments(9) 164,066 100.0
1 Assets inherited from the previous Investment Manager.
2 Back Market is held via the Company's holding in Sprints Capital Ellison LP,
a single asset fund.
3 Revolut is held via the Company's holding in Target Global Selected
Opportunities, LLC - Series Space, a single asset fund.
4 AgroStar is held via the Company's holding in Schroders Capital Private
Equity Asia Mauri VIII Ltd, a single asset fund.
5 Bizongo is held via the Company's holding in Schroders Capital Private
Equity Asia Maurit V Ltd, a single asset fund.
6 In March 2025, BenevolentAI was delisted from Euronext Amsterdam.
7 MMC SPV 3 LP is a single asset fund that holds an AI software company.
8 Previously HP Environmental Technologies Fund.
9 Total investments comprise:
£'000 %
Unquoted 113,668 69.3
Quoted 2,783 1.7
Collective investment scheme - money market instruments 47,615 29.0
Total 164,066 100.0
Source: Schroders 2025
DIRECTORS' REPORT
Principal risks and uncertainties
The Board has determined that the key risks for the Company are strategy risk,
economic and market risk, investment performance and portfolio concentration
risk, liquidity risk, operational risk, information technology and information
security risk, key person dependency risk, taxation risk and ESG risk. These
risks are set out on pages 28 to 32 of the annual report and financial
statements for the year ended 31 December 2024.
The Company's principal risks and uncertainties, and their mitigation, have
not materially changed during the six months to 30 June 2025 or since the
annual report was published on 28 March 2025.
Going concern
The Directors, as at the date of this report, are required to consider whether
they have a reasonable expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future. On 27 February
2025, shareholders approved a change in investment objective and investment
policy allowing the Company to undergo an orderly realisation of assets,
returning capital to shareholders. The Company is therefore preparing its
financial statements on a basis other than going concern due to the Company
being in a managed wind-down.
The Board will endeavour to realise all of the Company's investments in a
manner that achieves a balance between maximising the net value received from
those investments and making timely returns to shareholders.
Whilst the Directors are satisfied that the Company has adequate resources to
continue in operation throughout the winding-down period and to meet all
liabilities as they fall due, given the Company is now in managed wind-down,
the Directors considered it appropriate to adopt a basis other than going
concern in preparing the financial statements. No adjustments to the valuation
basis have arisen as a result of ceasing to apply the going concern basis.
Related party transactions
There have been no transactions with related parties that have materially
affected the financial position or the performance of the Company during the
six months ended 30 June 2025.
Directors' responsibility statement
In respect of the half year report for the six months ended 30 June 2025, the
Directors confirm that, to the best of their knowledge:
- the condensed set of Financial Statements contained within have been
prepared in accordance with the 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 give a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company as at 30 June 2025, as
required by the Disclosure Guidance and Transparency Rule 4.2.4R; and
- the half year report includes a fair review of the information as
required by the Disclosure Guidance and Transparency Rules 4.2.7R and 4.2.8R.
The half year report has not been audited nor reviewed by the Company's
auditor.
Tim Edwards
Chair
For and on behalf of the Board
17 September 2025
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2025 (unaudited)
(Unaudited) (Unaudited) (Audited)
For the six months For the six months For the year
ended 30 June 2025 ended 30 June 2024 ended 31 December 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 - 12,505 12,505 - (38,307) (38,307) - (47,267) (47,267)
at fair value through profit or loss
Net foreign currency (losses)/gains - (85) (85) - 45 45 - (17) (17)
Income from investments 126 - 126 106 - 106 195 - 195
Gross return/(loss) 126 12,420 12,546 106 (38,262) (38,156) 195 (47,284) (47,089)
Management fee (449) - (449) (457) - (457) (893) - (893)
Administrative expenses (611) - (611) (652) - (652) (1,351) - (1,351)
Net gain/(loss) before finance (934) 12,420 11,486 (1,003) (38,262) (39,265) (2,049) (47,284) (49,333)
costs and taxation
Finance costs - - - - - - - - -
Net gain/(loss) before taxation (934) 12,420 11,486 (1,003) (38,262) (39,265) (2,049) (47,284) (49,333)
Taxation - - - - - - - - -
Net gain/(loss) after taxation (934) 12,420 11,486 (1,003) (38,262) (39,265) (2,049) (47,284) (49,333)
Return/(loss) per share (pence) 4 (0.12) 1.53 1.41 (0.12) (4.55) (4.67) (0.25) (5.69) (5.94)
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 gain/(loss) on ordinary activities after taxation is also
the total comprehensive gain/(loss) for the period, therefore no separate
Statement of Comprehensive Income has been prepared.
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 30 June 2025 (unaudited)
Capital
Called-up Redemption Special Capital Revenue
share capital reserve reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2024 8,145 941 877,859 (693,448) (31,052) 162,445
Repurchase and cancellation of the Company's own shares (59) 59 (613) - - (613)
Costs associated with liquidation - - (125) - - (125)
Net gain/(loss) after taxation - - - 12,420 (934) 11,486
At 30 June 2025 8,086 1,000 877,121 (681,028) (31,986) 173,193
for the six months ended 30 June 2024 (unaudited)
Capital
Called-up Redemption Special Capital Revenue
share capital reserve reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2023 8,573 513 883,145 (646,164) (29,003) 217,064
Repurchase and cancellation of the Company's own shares (275) 275 (3,638) - - (3,638)
Net loss after taxation - - - (38,262) (1,003) (39,265)
At 30 June 2024 8,298 788 879,507 (684,426) (30,006) 174,161
for the year ended 31 December 2024 (audited)
Capital
Called-up share Redemption Special Capital Revenue
capital reserve reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2023 8,573 513 883,145 (646,164) (29,003) 217,064
Repurchase and cancellation of the Company's (428) 428 (5,286) - - (5,286)
own shares
Net loss after taxation - - - (47,284) (2,049) (49,333)
At 31 December 2024 8,145 941 877,859 (693,448) (31,052) 162,445
STATEMENT OF FINANCIAL POSITION
as at 30 June 2025 (unaudited)
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December
2025 2024 2024
Note £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 5 164,066 171,567 161,097
Current assets
Debtors 123 1,117 298
Cash at bank 9,735 4,841 1,948
9,858 5,958 2,246
Current liabilities
Creditors: amounts falling due within one year 6 (731) (3,364) (898)
Net current assets 9,127 2,594 1,348
Total assets less current liabilities 173,193 174,161 162,445
Net assets 173,193 174,161 162,445
Capital and reserves
Called-up share capital 7 8,086 8,298 8,145
Capital redemption reserve 1,000 788 941
Special reserve 877,121 879,507 877,859
Capital reserves (681,028) (684,426) (693,448)
Revenue reserve (31,986) (30,006) (31,052)
Total equity shareholders' funds 173,193 174,161 162,445
Net asset value per share (pence) 8 21.42 20.99 19.94
Registered in England and Wales as a public company limited by shares
Company registration number: 09405653
CASH FLOW STATEMENT
for the six months ended 30 June 2025 (unaudited)
(Unaudited) (Unaudited) (Audited)
For the six For the six For the
months ended months ended year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Operating activities
Net gain/(loss) before finance costs and taxation 11,486 (39,265) (49,333)
Adjustments for:
Capital (gain)/loss before taxation (12,420) 38,262 47,284
Decrease/(increase) in debtors 175 9 (4)
Decrease in creditors (146) (455) (501)
Net cash outflow from operating activities (905) (1,449) (2,554)
Investing activities
Purchases of investments(1) (21,482) (33,452) (55,220)
Sales of investments 31,018 40,469 62,166
Net cash inflow from investment activities 9,536 7,017 6,946
Financing activities
Repurchase and cancellation of the Company's own shares (634) (3,685) (5,340)
Costs associated with liquidation (125) - -
Net cash outflow from financing activities (759) (3,685) (5,340)
Change in cash at bank 7,872 1,883 (948)
Cash at bank at the beginning of the period 1,948 2,913 2,913
Exchange movements (85) 45 (17)
Cash at bank at the end of the period 9,735 4,841 1,948
( )
(1)Purchases of investments during the period reflect existing contractual
commitments, including £17,966,731 relating to money market instruments.
NOTES TO THE FINANCIAL STATEMENTS
1. Financial Statements
The information contained within the financial statements 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 31 December 2024 are
extracted from the latest published financial statements of the Company and do
not constitute statutory financial statements for that year. Those financial
statements 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 financial statements 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 Recommend
Practice "Financial Statements of Investment Trust Companies and Venture
Capital Trusts" issued by the Association of Investment Companies in July
2022.
Following shareholder approval on 27 February 2025 to amend the Company's
Objective and Investment Policy to facilitate a managed wind-down, the
financial statements have been prepared on a basis other than going concern.
The Directors are confident that the Company will be able to meet its
liabilities during the wind-down period, and no material changes to accounting
policies or valuation methods have been required.
The accounting policies applied to these financial statements are consistent
with those applied in the financial statements for the year ended 31 December
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 maintain 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. Gain/(loss) per share
(Unaudited) (Unaudited) (Audited)
For the six For the six For the
months ended months ended year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Revenue loss (934) (1,003) (2,049)
Capital gain/(loss) 12,420 (38,262) (47,284)
Total gain/(loss) 11,486 (39,265) (49,333)
Weighted average number of shares in issue during the period 809,758,581 841,102,572 831,534,516
Revenue loss per share (pence) (0.12) (0.12) (0.25)
Capital gain/(loss) per share (pence) 1.53 (4.55) (5.69)
Total gain/(loss) per share (pence) 1.41 (4.67) (5.94)
The basic and diluted gain/(loss) per share is the same because there are no
dilutive instruments in issue.
5 Investments held at fair value through profit or loss
(a) Movement in investments
(Unaudited) (Unaudited) (Audited)
For the six For the six For the
months ended months ended year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Opening book cost 528,514 553,693 553,693
Opening investment holding losses (367,417) (343,600) (343,600)
Opening fair value 161,097 210,093 210,093
Purchases at cost 21,482 35,865 55,220
Sales proceeds (31,018) (36,084) (56,949)
Gains/(losses) on investments held at fair value through profit or loss 12,505 (38,307) (47,267)
Closing fair value 164,066 171,567 161,097
Closing book cost 543,297 550,101 528,514
Closing investment holding losses (379,231) (378,534) (367,417)
Closing fair value 164,066 171,567 161,097
The Company received £31,018,000 (year ended 31 December 2024: £56,949,000
and period ended 30 June 2024: £36,084,000) from investments sold in the
period. The book cost of the investments when they were purchased was
£6,699,000 (year ended 31 December 2024: £80,399,000 and period ended 30
June 2024: £39,457,000). These investments have been revalued over time and,
until they were sold, any unrealised gains/losses were included in the fair
value of the investments. Purchases at cost of £21,482,000 during the period
reflect existing contractual commitments, including £17,966,731 relating to
money market instruments.
(b) Unquoted investments, including investments quoted in inactive markets
Material revaluations of unquoted investments during the period (unaudited)
Opening Closing
valuation at valuation at
31 December Valuation Purchases/ 30 June
2024(1) adjustment (disposals) 2025
£'000 £'000 £'000 £'000
AI Company II(2) 7,984 (1,817) - 6,167
AgroStar 7,907 (1,952) - 5,955
Araris Biotech 3,071 17,816 (18,469) 2,418
Federated Wireless 5,431 (3,144) - 2,287
Ada Health 4,248 (2,735) - 1,513
Memo Therapeutics 1,281 (948) - 333
(1) Based on the closing holding at opening prices.
(2) The revaluation of AI Company II relates to a corporate action event,
which also resulted in cash proceeds of £8.4m being received.
Material disposals of unquoted investments during the period (unaudited)
Profit based
on carrying
Carrying value at value at
31 December 30 June
Book cost 2024 Sales Proceeds 2025
£'000 £'000 £'000 £'000
Araris Biotech 5,458 3,071 21,311 15,853
6. Creditors: amounts falling due within one year
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Repurchase and cancellation of the Company's own shares awaiting settlement - 28 21
Securities purchased awaiting settlement - 2,460 -
Management fee payable 243 253 208
Other creditors and accruals 488 623 669
731 3,364 898
The Directors consider that the carrying amount of creditors falling due
within one year approximates to their fair value.
7. Called-up share capital
(Unaudited) (Unaudited) (Audited)
For the six For the six For the
months ended months ended year ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Ordinary shares of 1p each, allotted, called up and fully paid:
Opening balance of 814,492,025 (2023: 857,360,026) shares 8,145 8,573 8,573
Repurchase and cancellation of 5,909,126 (year ended 31 December 2024:
42,868,001
and period ended 30 June 2024: 27,560,000) shares (59) (275) (428)
Closing balance of 808,582,899 (31 December 2024: 814,492,025 and 30 June
2024:
829,800,026) shares 8,086 8,298 8,145
8. Net asset value per share
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December
2025 2024 2024
Net assets (£'000) 173,193 174,161 162,445
Shares in issue at the period end 808,582,899 829,800,026 814,492,025
Net asset value per share (pence) 21.42 20.99 19.94
9. Disclosures regarding 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.
At 30 June, the Company's investment portfolio and any derivative financial
instruments were categorised as follows:
30 June 2025 (unaudited)
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Investments in equities - quoted 2,783 47,615 - 50,398
Investments in equities - unquoted - - 113,668 113,668
Total 2,783 47,615 113,668 164,066
The Level 2 asset relates to the holding in Schroders Special Situations -
Sterling Liquidity Plus Fund.
30 June 2024 (unaudited)
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Investments in equities - quoted 14,776 25,229 1,179 41,184
Investments in equities - unquoted - - 130,383 130,383
Total 14,776 25,229 131,562 171,567
The Level 2 asset relates to the holding in Schroders Special Situations -
Sterling Liquidity Plus Fund. BenevolentAI is quoted, but the market is
inactive. Thus its valuation has been determined in accordance with the
process followed for unquoted assets and included in Level 3 above.
30 December 2024 (audited)
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Investments in equities - quoted 3,125 29,635 902 33,662
Investments in equities - unquoted - - 127,435 127,435
Total 3,125 29,635 128,337 161,097
The Level 2 asset relates to the holding in Schroders Special Situations -
Sterling Liquidity Plus Fund. BenevolentAI is quoted, but the market is
inactive. Thus its valuation has been determined in accordance with the
process followed for unquoted assets and included in Level 3 above.
10. Events after the interim date that have not been reflected in the
financial statements for the interim period
The Company has assessed the valuation of its unquoted holdings based on
information received until the date of this interim report, including recent
business updates, changes to business projections, and the Company's own
estimates of current valuation levels.
The Company estimates negative valuation adjustments to the 30 June 2025 net
asset value of £0.6m to Bizongo due to adverse developments at the company.
The Company has evaluated these developments and determined that they qualify
as non-adjusting events for these interim financial statements. All unquoted
holdings, including the investments mentioned above, will undergo further
evaluation and final determination in line with the Company's valuation policy
as part of the 30 September 2025 quarterly net asset value publication.
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