Schroders Cap Glbl - Half-year Financial Report
Schroders Capital Global Innovation Trust plc
Half year report
Schroders Capital Global Innovation Trust plc (the "Company") hereby submits its half year report for the six months ended 30 June 2026 as required by the Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.2.
Tim Edwards, Chair of the Company, commented:
"Following completion of the second tender offer, the Company will have returned a total of £65 million, less costs, to shareholders. This represents 39% of the NAV at 30 September 2024 which formed the basis of the managed wind-down proposal."
Key highlights
- The Board has further increased the size of the second tender offer to £28 million less costs. Tender elections remain open until 23 September 2026, but platforms may have an earlier deadline.
- The Board and the Investment Manager continue to focus on delivering an orderly wind-down, balancing the timely return of capital to shareholders with the objective of maximising value.
- NAV per share was 22.53p at 30 June 2026, an increase of 1.3% from 22.23p at 31 December 2025.
- The Company generated £9.6 million of realisations during the period, including £6.5 million from the Salica Environmental Technologies Fund following the sale of Bluewater Bio.
- Following completion of the second tender offer, the Company will have returned a total of £65 million, less costs, to shareholders since entering managed wind-down.
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 capital to shareholders will be sent directly via email: https://www.schroders.com/inovcomms
The Investment Manager has recorded a short presentation providing an overview of the Company's half year results and the key developments. The presentation is available to view by following this link https://schro.link/yukukb or visiting the Company's website.
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
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
Enquiries:
Schroder Investment Management Limited
Charlotte Banks (Press)
020 7658 9063
Kirsty Preston (Press)
Francesca Davis (Company Secretary)
020 7658 1961
020 7658 6000
Chair's Statement
Managed wind-down progress
The Company is now more than 18 months into its managed wind-down, following shareholders' approval of the required resolutions at a General Meeting in February 2025. During the first half of 2026, the Board and the Investment Manager continued to focus on delivering an orderly wind-down, balancing the timely return of capital to shareholders with the objective of maximising value. This included careful oversight of asset realisations, liquidity, and costs.
Initial tender offer: The Company completed its first tender offer in July 2025, following the implementation of the managed wind-down. It returned £37 million, less costs, to shareholders through the purchase of 173,220,974 ordinary shares at a final tender price of 21.119983 pence per ordinary share.
Second tender offer: During the period, the Company announced the Board's recommendation of a second return of capital of £23.5 million, less costs, through a tender offer. This was increased from the £20 million proposed in the circular published May 2026. Following a review of the Company's liquidity position and progress in the managed wind-down, I am pleased to announce that the Board has further increased the size of the second tender offer to £28 million, less costs. At the General Meeting held on 2 June 2026, shareholders approved the resolution authorising the Company to buy back shares in connection with the capital return. At the date of this report, the second tender offer remains open. Shareholders have until 1.00pm on 23 September 2026 to make their tender election, although those holding shares through a platform may be subject to an earlier deadline.
Following completion of the second tender offer, the Company will have returned a total of £65 million, less costs, to shareholders since entering managed wind-down. This represents 39% of the NAV at 30 September 2024 of £165.6 million which formed the basis of the managed wind-down proposal made to shareholders on 31 January 2025.
Shareholder engagement
Keeping shareholders informed and providing timely updates on the Company's managed wind-down progress remains a priority. Shareholders whose shares are held through an investment platform, nominee or other intermediary should contact their relevant provider to ensure that they receive communications relating to capital returns and understand what action is required to participate.
Shareholders can also register for email notifications about forthcoming capital returns at www.schroders.com/inovcomms.
Performance and valuation
During the six-month period to 30 June 2026, the NAV per share increased by 1.3% from 22.23p per share to 22.53p per share; the share price increased by 10.5% from 15.20p to 16.80p; and the share price discount to NAV per share narrowed from 31.6% to 25.4%.
The main contributors to performance during the period were the Company's private equity life sciences holdings, particularly Memo Therapeutics and Neurona Therapeutics, which benefited from fair value gains following corporate transactions. These gains were partly offset by weaker valuations across parts of the growth portfolio, with Back Market, AI Company II1, and AgroStar detracting from performance as a result of weaker public market comparables and company-specific developments.
During the half year, the Company made realisations of equities totalling £9.6 million. As at 30 June 2026, the Company had £34.3 million in cash and liquid money market funds.
More details on the Company's performance can be found in the Investment Manager's Review.
1 Actual name not disclosed due to confidentiality.
Cost base and management fee
The Board recognises that, as the Company's assets are realised and its size reduces, costs will increase as a percentage of NAV and may become disproportionate to the remaining assets. We remain focused on ensuring that the Company's costs are effectively controlled and the Board continues to review and challenge all operating costs, service provider fees, and other expenditure, to ensure that they remain appropriate throughout the managed wind-down.
In this context, I am pleased to advise that with effect from 1 October 2026, the Board has agreed with Schroders to implement a new management fee structure whereby the fee rate will reduce as the Company progresses the managed wind-down and returns capital to shareholders. The current fee of 1% on the Company's market capitalisation will reduce to 0.75% when the Company's market capitalisation is below £75 million, and 0.5% when the Company's market capitalisation is below £50 million. In order to ensure that the Manager is appropriately remunerated as assets reduce, the Board has agreed to implement a minimum fee of £150,000 per annum. We also expect a reduction in the audit fee following the appointment of BDO LLP ("BDO") as the Company's auditor.
Following these reductions, the Board considers that the Company's costs are appropriate and justified by the continued value of the listing to shareholders.
Change of auditor
During the period, the Company's Audit, Risk and Valuation Committee led a formal and competitive audit tender. Following the conclusion of that process, the Board appointed BDO as the Company's auditor for the financial year ending 31 December 2026, with effect from 12 August 2026. A resolution to approve BDO's appointment will be put to shareholders at the Company's next Annual General Meeting in 2027. Ernst & Young LLP ("EY") has ceased to be the Company's auditor and will not be seeking re-appointment. The Board would like to thank EY for its services to the Company throughout its period in office.
Half year results presentation
The Investment Manager has recorded a short presentation providing an overview of the Company's half year results and the key developments. The presentation is available to view by following this link https://schro.link/yukukb or visiting the Company's website.
Outlook
We do not expect material realisations before 2028, and the Board remains mindful that individual company valuations may become more volatile as the portfolio progresses towards 2027-2028. As the portfolio becomes more concentrated and strategic outcomes for certain portfolio companies become clearer as they mature, this may give rise to both significant upside potential and downside risk.
Our priority remains to deliver an orderly wind-down efficiently, while safeguarding value and returning capital to shareholders in a timely and cost-effective manner.
Tim Edwards
Chair
15 September 2026
Investment Manager's Review
"Portfolio performance was led by the life sciences holdings, which generated £4.7 million of fair value gains, principally from Memo Therapeutics and Neurona Therapeutics."
Summary
• NAV per share was 22.53p at 30 June 2026, an increase of 1.3% from 22.23p at 31 December 2025.
• Portfolio performance was led by the life sciences holdings, which generated £4.7 million of fair value gains, principally from Memo Therapeutics ("Memo"), which was subsequently acquired by Ipsen in a transaction focused on its Potravitug programme, and Neurona Therapeutics, which was acquired by UCB. These gains were partially offset by weaker valuations across parts of the growth portfolio.
• The Company generated £9.6 million of realisations during the period, including £6.5 million from the Salica Environmental Technologies Fund following the sale of Bluewater Bio.
• In line with the managed wind-down, no new or follow-on investments were made during the period.
• As at 30 June 2026, the Company held £34.3 million in cash and liquid money market funds supporting the tender offer of £28.0 million, less costs.
Financial performance
H1 2026 performance
As at 30 June 2026, the Company's NAV was £143.1 million, an increase of 1.3% from £141.2 million at 31 December 2025. NAV per share increased by the same amount, from 22.23p to 22.53p.
The increase in NAV comprised:
• Private equity life sciences: 3.3%
• Private equity growth: -1.4%
• Private equity venture: -0.1%
• Public equity: -0.4%
• Money market funds: 0.4%
• Costs and other movements: -0.5%
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 2025
19.2
27.9
68.0
2.5
18.2
6.2
(0.8)
141.2
+ Investments
-
-
-
-
13.4
(13.4)
-
-
- Realisations at value
(1.8)
-
(6.5)
(1.3)
-
9.6
-
-
+/- Fair value gains/(losses)
4.7
(0.1)
(2.0)
(0.5)
0.5
-
-
2.6
+/- Costs and other movements
-
-
-
-
-
(0.2)
(0.5)
(0.7)
Value as at
30 June 2026
22.1
27.8
59.5
0.7
32.1
2.2
(1.3)
143.1
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 generated fair value gains of £4.7 million, equivalent to 24.5% of their opening value and contributing 3.3% to NAV over the six-month period.
The largest contributor was Memo, which generated a £2.9 million fair value gain. Neurona Therapeutics also contributed positively following its acquisition by UCB, which completed on 2 June 2026 for total potential consideration of up to $1.15 billion, comprising $650 million upfront and up to $500 million in potential future milestone payments. CeQur also made strong progress during the period, receiving two additional FDA clearances for CeQur Simplicity and completing a $100 million Series E financing in June 2026.
After the period end, Ipsen completed its acquisition of Memo. Separately, Sanofi announced on 24 July 2026 that it had discontinued development of Amlitelimab for atopic dermatitis and would not submit the product for global regulatory review in that indication. This development is relevant to the Company's residual Kymab exposure which has been revalued to zero in a post balance sheet event.
Private equity growth holdings
The Company's private equity growth holdings generated a fair value loss of £2.0 million, equivalent to 2.9% of their opening value and detracting 1.4% from NAV over the six-month period.
Back Market, AI Company II1, and AgroStar detracted from performance, reflecting weaker public market comparables and company-specific developments. These movements were partly offset by Revolut, whose carrying value increased from £19.9 million at 31 December 2025 to £21.9 million at 30 June 2026. The carrying value of the Company's holding in Revolut is based on an implied company valuation of $80 billion.
Following the £9.8 million fair value loss recorded across the growth portfolio in the first quarter, valuations recovered materially during the second quarter.
1 Actual name not disclosed due to confidentiality.
Private equity venture and public equity holdings
The Company's private equity venture holdings were broadly stable, recording a £0.1 million fair value loss and detracting 0.1% from NAV over the period. Valuation movements across individual holdings were modest.
The Company's public equity holding, Autolus Therapeutics, generated a £0.5 million fair value loss, detracting 0.4% from NAV during the period. As part of the managed wind-down, the Company realised £1.3 million through a partial sale of the holding with the sale of the remaining position completed after the period end.
Foreign exchange
Over the half year, the sterling value of investments denominated in US dollars benefited from the depreciation of sterling against the US dollar. Conversely, euro- and Swiss franc-denominated investments were negatively impacted by sterling's appreciation against those currencies.
Cash and debt
£34.3 million
Cash position and liquid money market funds
As of 30 June 2026, the Company held £34.3 million in cash and money market (sterling liquidity) funds, representing 24.0% of NAV, supporting the tender offer of £28.0 million, less costs.
Investment activity
During the six months ended 30 June 2026, the Company generated £9.6 million of realisations. The largest proceeds were £6.5 million from the Salica Environmental Technologies Fund following the sale of Bluewater Bio and £1.3 million from the partial sale of Autolus Therapeutics, alongside further distributions arising from previously realised life sciences holdings including Anthos Therapeutics and Araris Biotech.
No new or follow-on private equity investments were made during the period.
Outlook
The Company continues to make progress in executing its managed wind-down, balancing the timely return of capital to shareholders with maximising value from the orderly realisation of the remaining portfolio.
Realisations and distributions during the first half, together with the Company's existing cash resources, have supported the Board's second tender offer of £28.0 million, less costs, increased from the approximately £18 million anticipated at the year end. The tender offer was approved by shareholders in June 2026 and remains open for elections until 23 September 2026.
As at 30 June 2026, the Company held £34.3 million in cash and liquid money market funds, representing 24.0% of NAV. Following the tender offer, the Company will continue to maintain sufficient liquidity to meet ongoing operating costs and any remaining portfolio funding requirements.
Looking ahead, the timing of further realisations will remain dependent on company-specific developments and broader market conditions. Given the illiquid nature of the Company's private investments, the Investment Manager will continue to seek to realise holdings at appropriate liquidity events rather than pursue forced disposals that could materially impair value. Any additional proceeds realised during the managed wind-down will be held in cash or cash equivalents prior to further returns to shareholders.
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
Tim Creed and Harry Raikes
Portfolio Managers
15 September 2026
Top 10 investments
31 December 2025
30 June 2026
Value
Value
Portfolio company
Strategy
(£'000)
% of NAV
(£'000)
% of NAV
Atom Bank1
Growth
23,105
16.4%
23,105
16.1%
Revolut LLP2
Growth
19,948
14.1%
21,943
15.3%
Nexeon1
Venture
7,980
5.7%
7,980
5.6%
Back Market3
Growth
7,822
5.5%
6,461
4.5%
AI Company I
Venture
5,932
4.2%
6,012
4.2%
AI Company II
Growth
5,622
4.0%
4,403
3.1%
Veeam Software
Venture
3,822
2.7%
4,392
3.1%
CeQur1
Life sciences
3,541
2.5%
4,342
3.0%
AI Company III
Venture
3,717
2.6%
3,767
2.6%
Memo Therapeutics
Life sciences
341
0.2%
3,273
2.3%
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.
Portfolio's 3 largest positions
Atom Bank
Leading UK app-only challenger bank
Atom Bank is the UK's first bank built exclusively for mobile. It offers savings accounts, residential mortgages and secured business lending, with a technology-led operating model designed to deliver attractive customer pricing at a lower cost than traditional banks.
In its FY2026 annual report for the 12 months ended 31 March 2026, Atom Bank reported continued growth and improving profitability:
• Profit before tax increased from £5.1 million to £9.4 million.
• Net interest income increased 8% to £110 million.
• The loan book increased 10% to £5.8 billion.
• Retail deposits increased 11% to more than £8.3 billion.
• Return on tangible equity increased to 10%, Atom Bank's strongest level to date.
• Subsequent to the period end, co-founder and Chief Executive Officer Mark Mullen stepped down in September 2026 after 12 years leading the business. Chief Financial Officer Andrew Marshall was appointed Interim Chief Executive Officer while the Board conducts a search for a permanent successor.
Source: Atom Bank Annual Report 2025/26 and company announcements.
Revolut
Global neobank and financial technology company
Revolut provides banking, payments and wealth-management services through its digital platform. The company continues to expand its product offering and geographical footprint as it seeks to develop into a global banking platform.
In March 2026, Revolut published its annual report for the year ended 31 December 2025, reporting continued strong growth:
• Retail customers increased 30% to 68.3 million, with the customer base subsequently exceeding 80 million during 2026.
• Customer balances increased 66% to $67.5 billion.
• Group revenue increased 46% to $6.0 billion.
• Profit before tax increased 57% to $2.3 billion.
In March 2026, the Prudential Regulation Authority lifted the restrictions on Revolut's UK banking licence, enabling Revolut Bank UK to commence operations as a fully licensed UK bank and begin transitioning its approximately 13 million UK customers.
Post period end, Revolut continued its international expansion, including launching banking operations in Australia and receiving a full banking licence in France.
Source: Revolut Annual Report and company website.
Nexeon
Advanced silicon anode materials for lithium-ion batteries
Nexeon develops silicon-based anode materials designed to increase the energy density of lithium-ion batteries, enabling longer range and faster charging for electric vehicles and other battery applications.
The company made further progress towards commercialisation during 2026:
• In May 2026, Honda became a strategic investor in Nexeon through Honda Xcelerator Ventures, supporting the development and commercialisation of the company's silicon anode technology.
• Post period end, Nexeon completed a £100 million ($133 million) financing round, including a £52.6 million ($70 million) investment from the UK National Wealth Fund.
• Other investors in the financing included Korea Development Bank and Honda Xcelerator Ventures, providing a combination of strategic and institutional backing.
• The new capital will support the expansion of Nexeon's UK research, development and manufacturing activities and accelerate commercial adoption of its next-generation battery materials.
Source: Nexeon and UK National Wealth Fund company announcements.
Investment Portfolio
The 20 largest investments excluding money market funds account for 98.2% of total investments by value (31 December 2025: 98.0% and 30 June 2025: 95.6%).
Total
Fair value
investments
Holding
Quoted/unquoted
Strategy
Industry sector
£'000
%
Equities
Atom Bank1
Unquoted
Growth
Financials
23,105
16.2%
Revolut2
Unquoted
Growth
Financials
21,943
15.4%
Nexeon1
Unquoted
Venture
Industrials
7,980
5.6%
Back Market3
Unquoted
Growth
Consumer
6,461
4.5%
AI Company I
Unquoted
Venture
Technology
6,012
4.2%
AI Company II
Unquoted
Growth
Technology
4,403
3.1%
Veeam Software
Unquoted
Venture
Technology
4,392
3.1%
CeQur1
Unquoted
Life sciences
Health Care
4,342
3.1%
AI Company III
Unquoted
Venture
Technology
3,767
2.7%
Memo Therapeutics
Unquoted
Life sciences
Health Care
3,273
2.3%
iOnctura
Unquoted
Life sciences
Health Care
3,140
2.2%
Epsilogen
Unquoted
Life sciences
Health Care
3,108
2.2%
AgroStar4
Unquoted
Growth
Consumer
3,014
2.1%
Neurona Therapeutics
Unquoted
Life sciences
Health Care
2,943
2.1%
Attest Technologies
Unquoted
Venture
Business Services
2,521
1.8%
Kymab1
Unquoted
Life sciences
Health Care
1,965
1.4%
Araris Biotech
Unquoted
Life sciences
Health Care
1,846
1.3%
Federated Wireless1
Unquoted
Venture
Technology
1,843
1.3%
Genomics1
Unquoted
Venture
Health Care
1,168
0.8%
Anthos Therapeutics
Unquoted
Life sciences
Health Care
853
0.6%
Autolus Therapeutics1
Quoted
Public
Health Care
738
0.5%
Salica Environmental Technologies Fund5
Unquoted
Growth
Industrials
596
0.4%
A2 Biotherapeutics
Unquoted
Life sciences
Health Care
592
0.4%
Econic1
Unquoted
Venture
Industrials
103
0.1%
OcuTerra1
Unquoted
Life sciences
Health Care
-
-
Just Benchmarks1
Unquoted
Venture
Financials
-
-
Kind Consumer1
Unquoted
Venture
Consumer Staples
-
-
Oxsybio1
Unquoted
Life sciences
Health Care
-
-
Bizongo6
Unquoted
Growth
Business Services
-
-
Novabiotics1
Unquoted
Life sciences
Health Care
-
-
Lignia Wood1
Unquoted
Venture
Industrials
-
-
BenevolentAI1,7
Unquoted
Venture
Health Care
-
-
Mafic1
Unquoted
Venture
Industrials
-
-
Reaction Engines1
Unquoted
Venture
Industrials
-
-
Industrial Heat1
Unquoted
Venture
Industrials
-
-
Rutherford Health1
Unquoted
Venture
Health Care
-
-
Freevolt1
Unquoted
Venture
Technology
-
-
Ada Health
Unquoted
Growth
Health Care
-
-
Spin Memory1
Unquoted
Venture
Technology
-
-
Total
Fair value
investments
Holding
Quoted/unquoted
Strategy
Industry sector
£'000
%
Equities
Evofem Biosciences1
Unquoted
Life sciences
Health Care
-
-
AMO Pharma1
Unquoted
Life sciences
Health Care
-
-
Carmot Therapeutics
Unquoted
Life sciences
Health Care
-
-
Total equities
110,108
77.4%
Money market funds
Schroder Special Situations - Sterling
Liquidity Plus Fund
Cash
Collectives
32,128
22.6%
Total money market funds
32,128
22.6%
Total investments8
142,236
100.0%
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 AgroStar is held via the Company's holding in Schroders Capital Private Equity Asia Mauri VIII Ltd, a single asset fund.
5 Previously HP Environmental Technologies Fund.
6 Bizongo is held via the Company's holding in Schroders Capital Private Equity Asia Maurit V Ltd, a single asset fund.
7 BenevolentAI was delisted from Euronext Amsterdam effective 13 March 2025.
8 Total investments comprise:
£'000
%
Unquoted
109,370
76.9
Listed on the London Stock Exchange
738
0.5
Collective investment scheme
32,128
22.6
Total
142,236
100.0
Source: Schroders 2026.
Directors' Report
Principal risks and uncertainties
The Board has determined that the principal risks and uncertainties facing the Company relate to the successful execution of its managed wind-down strategy, including the orderly realisation of investments and return of capital to shareholders, economic and market conditions, portfolio valuation and concentration, liquidity management, operational resilience, cyber security, taxation, and ESG matters. These risks, together with the actions taken to mitigate them, are described on pages 26 to 30 of the annual report and financial statements for the year ended 31 December 2025.
The Board remains satisfied that these continue to represent the principal risks facing the Company. As the managed wind-down progresses and the portfolio becomes increasingly concentrated in a smaller number of holdings, particular attention continues to be given to portfolio valuation, concentration and liquidity risks, as well as the timing and execution of future capital returns to shareholders. Other than changes in the relative significance of certain risks arising from the ongoing managed wind-down process, there have been no material changes to the Company's principal risks and uncertainties, and their mitigations, during the six months ended 30 June 2026 or since the annual report was published on 31 March 2026.
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 2026.
Directors' responsibility statement
In respect of the half year report for the six months ended 30 June 2026, 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 2026, 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
15 September 2026
Statement of Comprehensive Income
for the six months ended 30 June 2026 (unaudited)
(Unaudited)
(Unaudited)
(Audited)
For the six months
For the six months
For the year
ended 30 June 2026
ended 30 June 2025
ended 31 December 2025
Revenue
Capital
Total
Revenue
Capital
Total
Revenue
Capital
Total
Note
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Gains on investments held at fair
value through profit or loss
-
2,648
2,648
-
12,505
12,505
-
18,378
18,378
Net foreign currency gains/(losses)
-
23
23
-
(85)
(85)
-
(146)
(146)
Income from investments
56
-
56
126
-
126
205
-
205
Gross return
56
2,671
2,727
126
12,420
12,546
205
18,232
18,437
Management fee
(477)
-
(477)
(449)
-
(449)
(927)
-
(927)
Administrative expenses
(326)
-
(326)
(611)
-
(611)
(1,005)
-
(1,005)
Net return before finance
costs and taxation
(747)
2,671
1,924
(934)
12,420
11,486
(1,727)
18,232
16,505
Finance costs
-
-
-
-
-
-
-
-
-
Net return before taxation
(747)
2,671
1,924
(934)
12,420
11,486
(1,727)
18,232
16,505
Taxation
-
-
-
-
-
-
-
-
-
Net return after taxation
(747)
2,671
1,924
(934)
12,420
11,486
(1,727)
18,232
16,505
Return per share (pence)
4
(0.12)
0.42
0.30
(0.12)
1.53
1.41
(0.24)
2.49
2.25
The "Total" column of this statement is the profit and loss account of the Company. The "Revenue" and "Capital" columns represent supplementary information prepared under guidance issued by The Association of Investment Companies. The Company has no other items of other comprehensive income, and therefore the net return after taxation is also the total comprehensive (loss)/return for the period, therefore no separate Statement of Comprehensive Income has been prepared.
Statement of Changes in Equity
for the six months ended 30 June 2026 (unaudited)
Capital
Called-up
Redemption
Special
Capital
Revenue
share capital
reserve
reserve
reserves
reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
At 31 December 2025
6,354
2,732
840,130
(675,216)
(32,779)
141,221
Costs associated with managed wind-down and tender offer
-
-
(12)
-
-
(12)
Net return after taxation
-
-
-
2,671
(747)
1,924
At 30 June 2026
6,354
2,732
840,118
(672,545)
(33,526)
143,133
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 year ended 31 December 2025 (audited)
Capital
Called-up share
Redemption
Special
Capital
Revenue
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
(1,791)
1,791
(37,380)
-
-
(37,380)
Costs associated with managed wind-down and tender offer
-
-
(349)
-
-
(349)
Net return after taxation
-
-
-
18,232
(1,727)
16,505
At 31 December 2025
6,354
2,732
840,130
(675,216)
(32,779)
141,221
Statement of Financial Position
as at 30 June 2026 (unaudited)
(Unaudited)
(Unaudited)
(Audited)
30 June
30 June
31 December
2026
2025
2025
Note
£'000
£'000
£'000
Fixed assets
Investments held at fair value through profit or loss
5
142,236
164,066
135,890
Current assets
Debtors
345
123
109
Cash at bank
2,216
9,735
6,203
2,561
9,858
6,312
Current liabilities
Creditors: amounts falling due within one year
6
(1,664)
(731)
(981)
Net current assets
897
9,127
5,331
Total assets less current liabilities
143,133
173,193
141,221
Net assets
143,133
173,193
141,221
Capital and reserves
Called-up share capital
7
6,354
8,086
6,354
Capital redemption reserve
2,732
1,000
2,732
Special reserve
840,118
877,121
840,130
Capital reserves
(672,545)
(681,028)
(675,216)
Revenue reserve
(33,526)
(31,986)
(32,779)
Total equity shareholders' funds
143,133
173,193
141,221
Net asset value per share (pence)
8
22.53
21.42
22.23
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 2026 (unaudited)
(Unaudited)
(Unaudited)
(Audited)
For the six
For the six
For the
months ended
months ended
year ended
30 June
30 June
31 December
2026
2025
2025
£'000
£'000
£'000
Operating activities
Net gain before finance costs and taxation
1,924
11,486
16,505
Adjustments for:
Capital (gain)/loss before taxation
(2,671)
(12,420)
(18,232)
(Increase)/decrease in debtors
(22)
175
189
(Decrease)/increase in creditors
(165)
(146)
104
Net cash outflow from operating activities
(934)
(905)
(1,434)
Investing activities
Purchases of investments
(12,502)
(21,482)
(31,775)
Sales of investments
9,438
31,018
75,360
Net cash (outflow)/inflow from investment activities
(3,064)
9,536
43,585
Financing activities
Repurchase and cancellation of the Company's own shares
-
(634)
(37,401)
Costs associated with liquidation
(12)
(125)
(349)
Net cash outflow from financing activities
(12)
(759)
(37,750)
Change in cash at bank
(4,010)
7,872
4,401
Cash at bank at the beginning of the period
6,203
1,948
1,948
Exchange movements
23
(85)
(146)
Cash at bank at the end of the period
2,216
9,735
6,203
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 2025 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 2025.
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. Return 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
2026
2025
2025
£'000
£'000
£'000
Revenue loss
(747)
(934)
(1,727)
Capital return
2,671
12,420
18,232
Total return
1,924
11,486
16,505
Weighted average number of shares in issue during the period
635,361,925
809,758,581
733,217,237
Revenue loss per share (pence)
(0.12)
(0.12)
(0.24)
Capital return per share (pence)
0.42
1.53
2.49
Total return per share (pence)
0.30
1.41
2.25
The basic and diluted return 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
2026
2025
2025
£'000
£'000
£'000
Opening book cost
512,482
528,514
528,514
Opening investment holding losses
(376,592)
(367,417)
(367,417)
Opening fair value
135,890
161,097
161,097
Purchases at cost
13,350
21,482
31,775
Sales proceeds
(9,652)
(31,018)
(75,360)
Gains on investments held at fair value through profit or loss
2,648
12,505
18,378
Closing fair value
142,236
164,066
135,890
Closing book cost
512,500
543,297
512,482
Closing investment holding losses
(370,264)
(379,231)
(376,592)
Closing fair value
142,236
164,066
135,890
The Company received £9,652,000 (year ended 31 December 2025: £75,360,000 and period ended 30 June 2025: £31,018,000) from investments sold in the period. The book cost of the investments when they were purchased was £13,332,000 (year ended 31 December 2025: £47,807,000 and period ended 30 June 2025: £6,699,000). These investments have been revalued overtime and, until they were sold, any unrealised gains/losses were included in the fair value of the investments.
(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
20251
adjustment
(disposals)
2026
£'000
£'000
£'000
£'000
Revolut
19,948
1,995
-
21,943
Back Market
7,822
(1,361)
-
6,461
AI Company II
5,622
(1,219)
-
4,403
Memo Therapeutics2
341
2,932
-
3,273
AgroStar
4,341
(1,327)
-
3,014
Anthos Therapeutics
2,439
(380)
(1,206)
853
Autolus Therapeutics
2,462
(468)
(1,256)
738
Salica Environmental Technologies Fund
7,227
(134)
(6,497)
596
1 Based on the closing holding at opening prices.
2 Memo Therapeutics was revalued upwards following the announcement of its acquisition by Ipsen.
(b) Unquoted investments, including investments quoted in inactive markets (continued)
Material disposals of unquoted investments during the period (unaudited)
There were no material disposals of unquoted investments during the period ended 30th June 2026.
6. Creditors: amounts falling due within one year
(Unaudited)
(Unaudited)
(Audited)
30 June
30 June
31 December
2026
2025
2025
£'000
£'000
£'000
Securities purchased awaiting settlement
848
-
-
Management fee payable
447
243
475
Other creditors and accruals
369
488
506
1,664
731
981
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
2026
2025
2025
£'000
£'000
£'000
Ordinary shares of 1p each, allotted, called up and fully paid:
Opening balance of 635,361,925 (2025: 814,492,025) shares
6,354
8,145
8,145
Repurchase and cancellation of nil (year ended 31 December 2025: 179,130,100 and period ended 30 June 2025: 5,909,126) shares
-
(59)
(1,791)
Closing balance of 635,361,925 (31 December 2025: 635,361,925 and 30 June 2025: 808,582,899) shares
6,354
8,086
6,354
8. Net asset value per share
(Unaudited)
(Unaudited)
(Audited)
30 June
30 June
31 December
2026
2025
2025
Net assets (£'000)
143,133
173,193
141,221
Shares in issue at the period end
635,361,925
808,582,899
635,361,925
Net asset value per share (pence)
22.53
21.42
22.23
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 2026 (unaudited)
Level 1
Level 2
Level 3
Total
£'000
£'000
£'000
£'000
Investments in equities - quoted
738
-
-
738
Collective investment schemes
-
32,128
-
32,128
Investments in equities - unquoted
-
-
109,370
109,370
Total
738
32,128
109,370
142,236
The Level 2 asset relates to the holding in Schroders Special Situations - Sterling Liquidity Plus Fund.
30 June 2025 (unaudited)
Level 1
Level 2
Level 3
Total
£'000
£'000
£'000
£'000
Investments in equities - quoted
2,783
-
-
2,783
Collective investment schemes
-
47,615
-
47,615
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.
31 December 2025 (audited)
Level 1
Level 2
Level 3
Total
£'000
£'000
£'000
£'000
Investments in equities - quoted
2,462
-
-
2,462
Collective investment schemes
-
18,231
-
18,231
Investments in equities - unquoted
-
-
115,197
115,197
Total
2,462
18,231
115,197
135,890
The Level 2 asset relates to the holding in Schroders Special Situations - Sterling Liquidity Plus Fund.
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. Against the 30 June 2026 net asset value, the Company estimates the adjustments set out below in respect of developments arising after the interim date.
Following the period end, Memo Therapeutics AG, an unquoted portfolio holding of the Company, announced the sale of its Potravitug programme to Ipsen. As a result, the Company received a distribution of £2.1 million on 23 July 2026.
In respect of Kymab, the Company estimates a negative valuation adjustment of £1.9 million. In July 2026, following a strategic pipeline review, Sanofi announced that it would not submit Amlitelimab for global regulatory review in atopic dermatitis and would discontinue development in that indication. The contingent consideration receivable in respect of the associated development and regulatory milestones has consequently been written down to nil.
In respect of AI Company III, the Company estimates a positive valuation adjustment of £1.0 million. In August 2026, AI Company III entered into a strategic transaction and granted a non-exclusive licence to its intellectual property.
Subsequent to the period end, the Company agreed a revised management fee structure with the Manager. Further details are set out in the Chair's Statement.
The Company has evaluated these developments and determined that they qualify as non-adjusting events for these interim financial statements.
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