REG - STS Global I&G Trust - Half-year Financial Report
03/12/2025 07:00
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RNS Number : 9298J STS Global Income & Growth Trust 03 December 2025
STS Global Income & Growth Trust plc
LEI: 549300UZ1Y7PPQYJGE19
Half-year financial report
Six months to 30 September 2025
FINANCIAL HIGHLIGHTS
Total returns^ 6 months to 1 year to 3 years to 5 years to
(including reinvested dividends) 30 September 30 September 30 September 30 September
2025 2025 2025 2025
% % % %
Net asset value per share 1.9 8.7 19.3 43.5
Share price 3.0 10.0 17.1 47.7
Lipper Global - Equity Global Income Index 8.3 10.4 34.8 58.7
(Source: Lipper; LSEG Data & Analytics)
( )
Key data As at As at
30 September 2025 31 March 2025
Net asset value per share (cum income)(˄) 242.36p 243.10p
Net asset value per share (ex income)(˄) 239.11p 239.26p
Share price 241.00p 239.00p
Discount (˄) 0.56% 1.69%
Net assets £283,554,000 £294,545,000
Income Six months ended Six months ended
30 September 2025 30 September 2024
Revenue per share 3.18p 3.66p
Dividend per share 4.20p 3.17p
^ For details of all Alternative Performance Measures refer to the half-year
report.
INTERIM MANAGEMENT REPORT
Chair's statement
Introduction
This is my first half year report as Chair of your Company. My predecessor,
John Evans, stepped down at the Company's last AGM and I would like to take
this opportunity to thank him for his significant contribution - he will be
much missed. As a result of this, I am pleased to announce that Alexandra
Innes has become the Senior Independent Director and Bridget Guerin the Chair
of the Marketing and Communications Committee.
In addition, we were delighted to share in May that Tomasz Boniek has become
Co-Manager of the Company, alongside James Harries, having worked on the
Global Income strategy since its inception at Troy.
Performance overview
The Company's performance over the period to 30 September 2025 was positive,
with our net asset value ('NAV') per share increasing by 1.9%, but this lagged
our comparison index, the
Lipper Global - Equity Global Income Index, which recorded a
return of 8.3%. While we are disappointed not to have matched that performance
level, we believe your Manager's philosophy and portfolio positioning has
remained consistent, and the gap is explained by current market dynamics.
Recent market performance, particularly in the US, has been driven by a
relatively narrow group of large technology and AI-linked stocks, now often
referred to as "MANGO" (Microsoft/Meta, Apple/Anthropic, NVIDIA, Google,
OpenAI). Beyond Microsoft, we have no exposure to this cohort in our
portfolio, which remains focussed on high-quality, dividend-paying companies
trading on attractive valuations. As a result, as market exuberance has
shifted toward these stocks, our low relative exposure has contributed to our
relative underperformance.
The past six months have been characterised not only by enthusiasm for AI but
also by a complex mix of macroeconomic and geopolitical forces. Inflation has
eased but remains above target in many markets; interest rates have stayed
higher for longer; and global trade relations have become more fractious, with
new tariff proposals and industrial policy interventions adding to
uncertainty.
We continue to maintain a globally diversified equity portfolio emphasising
companies with strong cash flows, resilient business models and sustainable
dividend capacity. In an environment of heightened valuations and narrow
market leadership, our focus remains on preserving capital and generating
returns over the long term.
During the period under review, there was a narrowing of your Company's
discount to NAV at which the share price traded over the period and the share
price total return was 3.0%.
Dividends
As set out in our last Annual Report, we significantly increased our dividend,
representing a yield of 3.5% on the closing share price as of 31 March 2025.
We are looking to maintain this level of yield in the current year and as such
grew our first interim dividend in order that shareholders receive the higher
dividend payment at the earliest opportunity. The Board was pleased to declare
a first interim dividend of 2.1 pence per ordinary share in September 2025,
taking our yield to 3.7% for the first quarter. We believe this yield remains
competitive within the broader global equity income sector, and we will
continue to monitor it carefully in line with market conditions and portfolio
performance.
Discount management
Your Company operates a discount control mechanism with the objective of
ensuring that, in normal market conditions, the shares trade consistently
close to their net asset value per share. Your Company will buy back shares to
maintain a narrow discount to ensure liquidity is available when required by
the market. We believe this has had several benefits throughout the last two
years, providing confidence to existing and new shareholders. During the
period under review, 4,388,000 shares were purchased and, due to market
demand, 225,000 shares were issued.
Outlook
Looking forward, we recognise that global equity markets may face a number of
headwinds: sustained inflation, interest rate uncertainty, evolving trade and
tariff dynamics and the risk that the narrow group of companies leading stock
markets in recent years may come under pressure. At the same time, this may
well create opportunity. We believe the Company is well positioned for any
potential bumpiness ahead. Our diversified portfolio, with a bias to quality
income-generating businesses, is designed to perform in a less exuberant
market environment.
While we do not seek to predict when leadership in equities may rotate, we are
mindful that valuations outside the "MANGO" cohort have already begun to
reflect more moderate expectations, and this may favour the investment style
we employ. Our conviction remains that investors anticipating greater
uncertainty and increased dispersion of returns may be better served by a
strategy grounded in income and capital preservation.
On behalf of the Board, I would like to thank shareholders for their continued
support and for the trust you place in us. We remain committed to the
long-term objectives of the Company: rising income, capital preservation and
steady growth. Alexandra Innes and I have met with multiple shareholders in
the last few months, and we would like to thank them for their engagement and
their feedback. The Board would like to ensure that all shareholders are kept
well-informed, and we would encourage those who have not already done so to
consider signing up for our email updates. You can opt in via our website:
https://www.stsplc.co.uk/contact-us/ (https://www.stsplc.co.uk/contact-us/) .
Sarah Harvey
Chair
2 December 2025
Managers' review
Having had a good start to the year, in part by protecting shareholders'
capital during the Liberation Day sell off in April, the Company has been
making steady progress over this short period under review albeit some way
behind the comparison index. Over the six months to 30 September 2025 the
Company advanced by 1.9% in net asset value terms relative to an increase of
8.3% for the index. This takes the return over 12 months to 8.7% compared to
10.4% for the index. After a long period of benign conditions in global
capital markets, certainly since 2008 but arguably going all the way back to
the fall of the Berlin Wall in 1989, we are in a world of structural change.
Inflation and bond yields have risen, and the world is splitting once again
into competing spheres of influence with China and the USA facing off against
each other. Companies are no longer able to optimise costs to the same degree
nor countries exploit their comparative advantages. Politics have become more
divisive. Despite this the US equity market is expensive on most long-term
measures. At the same time, under the surface, opportunities are presenting
themselves, allowing us to improve the quality and underlying growth of the
portfolio without compromising income. We have established new investments in
Nike and Sysco in the period under review.
Investment outlook
Equity markets remain heavily concentrated, with an ever-greater share of
returns driven by a narrow group of mega-cap technology companies. The S&P
500 is close to record highs and trades on a price/earnings multiple above
22x1. History shows that starting valuations at these levels have rarely
delivered more than low single-digit annualised returns over the subsequent
decade. At the same time, the market's dependence on artificial intelligence
('AI') has become more pronounced. AI is powering both share prices and
economic growth, with data-centre and related infrastructure investment
estimated to have added over 1% to US GDP in the first half of this year. The
danger is that this optimism proves overextended: capital spending is being
pulled forward, but the commercial benefits remain uncertain, with early
evidence suggesting that most enterprises have yet to see tangible P&L
impact from AI adoption. Should expectations falter, both market leadership
and economic momentum could unwind rapidly.
This bifurcation - between elevated valuations at the index level and more
attractive opportunities under the surface - remains a defining feature of
today's environment. While speculative excess persists in a handful of highly
valued names, many high-quality businesses are trading at multi-year lows
relative to their earnings power. In our own portfolio, more than half of our
holdings now trade below their ten-year average valuation multiples, despite
delivering resilient results and strong free cash flow growth.
Against this backdrop, we continue to emphasise discipline and patience. Our
companies are not immune to short-term share price weakness, but their
competitive advantages, cash generation, and balance-sheet strength provide
the resilience that we seek. Recent volatility has allowed us to establish new
investments at attractive valuations as well as add to several existing
investments. We will seek to continue to take advantage of overlooked
opportunities in the months to come.
Portfolio review
Microsoft was a strong performer, rising by 32.6%2 over the period amid
renewed optimism around its AI strategy. Reports indicated the company is
recasting its relationship with OpenAI, potentially trading a reduced revenue
share for a larger equity stake in a new for-profit entity. This could give
Microsoft both financial upside and strategic security while ceding some of
the capex burden of model training. Azure remains the dominant platform for
inference compute, and Microsoft's ecosystem advantage ensures deep
integration of AI into productivity and developer tools. With Copilot adoption
continuing to scale and Azure growth robust, the company remains uniquely
positioned to monetise the next wave of enterprise AI.
Nintendo also rose, appreciating by 23.3%2 since March. As we expected, the
new Switch 2 console has been launched and has been a tremendous success. The
timeless intellectual property this company possesses has been demonstrated
once again as new versions of such gaming franchises as Mario, Donkey Kong and
Zelda have been snapped up by gamers. The positive reaction from the share
price has meant that the valuation of the shares is now less attractive, and
we have reduced the size of the investment in the portfolio as a result.
British American Tobacco ('BAT') continued its strong run. Investor sentiment
improved as evidence mounted that the turnaround in new categories is
gathering pace. UBS's Nicotine Survey highlighted strong momentum for Velo in
the US, capturing over half of sequential category growth, and the company is
also benefitting from crackdowns on illicit vapes. Combined with progress in
heated tobacco and the test launch of Vuse One, this reinforced the message
that BAT can deliver sustainable growth across all categories. Trading on a
modest multiple with a dividend yield above 6%, the shares continue to look
undervalued given the quality of the franchise and the prospect of earnings
upgrades.
UK-based motor insurer Admiral Group performed well. We continue to view this
business as a very well managed franchise with excellent economics. The
company has navigated the recent fluctuations in the insurance market
following COVID extremely well, allowing it to post very good results. Limited
capital requirements enable the company to make generous payments to
shareholders, with a progressive dividend policy augmented by regular special
dividends.
Reckitt Benckiser also contributed positively. The shares rose on the back of
stronger performance in its "Core Reckitt" divisions, with emerging markets
showing robust growth and category momentum accelerating. Importantly, the
sale of the Essential Home division has now been agreed, marking another step
in the simplification of the group. While the disposal is dilutive to
earnings, it brings greater focus to higher-growth, higher-margin categories
and allows for a sizeable special dividend. Execution has improved,
advertising spend is rising to support brand strength, and with litigation
risks around Mead Johnson moving towards resolution, the strategic outlook
looks clearer.
Paychex shares eased despite broadly steady results. The company reported
solid revenue growth and resilient margins, but investor focus remains on the
integration of Paycor. Management acknowledged near-term sales disruption from
the deal, but reiterated confidence in achieving double-digit growth next year
as synergies from cross-selling and a ramp-up in the Professional Employer
Organisation ('PEO') segment take hold. While the burden of proof rests with
management, client retention remains strong, margins are intact, and Paychex's
recurring revenue model continues to provide stability. We see little change
to the long-term investment case, and the recent share price weakness reflects
execution scepticism rather than any deterioration in fundamentals.
Kenvue is a consumer health company that was spun out of Johnson &
Johnson. The company has several strong brands such as Listerine, Tylenol (the
brand name for acetaminophen) and Neutrogena which hold strong positions in
their categories especially in the US. Kenvue declined after US health
authorities announced a review of acetaminophen use during pregnancy,
following studies that suggested a possible link with autism. Tylenol accounts
for around 10% of Kenvue's sales, but the share of usage among expectant
mothers is estimated at less than 0.5% of group revenues. The market reaction
appears disproportionate, particularly as the agency itself acknowledged the
absence of causal evidence. Litigation risk cannot be dismissed, but the more
material story remains the ongoing strategic review and activist involvement,
which could see asset sales or a sharpening of focus across the brand
portfolio. In our view, Kenvue retains valuable franchises and a clear
self-help opportunity.
Coloplast has continued to derate over this period. This is a medical device
company based in Denmark which specialises in intimate healthcare such as
ostomy and continence care. This is a specialised niche with high barriers to
entry and substantial recurring demand. The declining share price has enabled
us to continue to establish a long-term investment in the company at
increasingly attractive valuations.
A confluence of factors has caused the Accenture share price to fall. These
include slower bookings from clients, slowing government spending in the US,
and structural concerns relating to the disruptive effects of AI on
Accenture's business model. Our expectation is that Accenture will be in
strong demand and will be able to deliver its services with fewer people to
the benefit of margins in time. Having reduced the size of the holding owing
to valuation we are now close to a level where we may commit further capital.
Finally, Diageo continues to be weak. We continue to think the company is
experiencing a bust, following the COVID boom, which will pass. Although more
structural concerns relating to changing consumer habits cannot be dismissed,
we think this is more than adequately reflected in the valuation of the
shares.
James Harries
2 December 2025
New holdings
Two new investments were established during this period: Nike and Sysco.
Nike is the world‑leading athletic footwear and apparel business. Nike's
share price has fallen sharply over the past twelve months as the company
works through an inventory build‑up across a handful of wholesale franchise
channels and as renewed tariff rhetoric from the US administration has weighed
on sentiment. We have followed the company for several years and believe the
market reaction materially undervalues the long‑term attractions of the
franchise.
Our confidence has grown under the stewardship of the recently appointed CEO,
Elliott Hill. His decision to rationalise distribution and prioritise product
innovation is painful in the short term, but in our view essential to protect
Nike's unrivalled brand equity and ensure the company remains the pre-eminent
sports brand globally.
Tariffs and the associated profit margin pressure will hurt near‑term
earnings, but we see this as a temporary dislocation rather than a structural
change. Assuming a recovery to Nike's historic operating margins - which we
regard as a conservative base case - we bought the shares on what we believe
is an attractive valuation, with the highest dividend yield of the last ten
years. In addition, the balance sheet carries minimal financial leverage,
affording Nike the flexibility to invest through financial market cycles.
The investment in Nike is exactly the kind of opportunity we aim to capture:
buying world-class businesses when they are out of favour.
Sysco is the largest foodservice distributor in the US, serving over 700,000
customer locations across restaurants, healthcare, education, and travel.
Though structurally well-placed in a growing "food-away-from-home" market,
investor sentiment has soured due to recent softness in high-margin
independent restaurant volumes. While this segment is recovering more slowly
than expected, we believe concerns are overdone. The company's core
competitive edge, its scale, is intact and growing. Sysco is taking the right
steps to reignite momentum through salesforce investments and a focus on
growing its specialty businesses, such as custom meat, fresh produce, and
imported goods. These are categories that carry higher margins and foster
customer stickiness.
At around 16x forward earnings(1), the shares are attractively valued
particularly for a business with defensive characteristics, durable
competitive advantages, and a 55-year record of dividend increases. Despite
near-term noise, Sysco continues to grow both earnings and free cash flow,
with buybacks enhancing per-share returns. We expect long-term revenue growth
in the mid-single digit range and an improving capital return profile, making
it a compelling income-generating holding in the portfolio. The dividend yield
of 2.7% adds to the appeal in today's uncertain environment.
The new investments were funded by the sales of Medtronic and Hershey.
Tomasz Boniek
2 December 2025
(1) Source: Bloomberg
Statement of Directors' responsibilities
A review of the half year and the outlook for the Company can be found in the
Chair's statement and Managers' review above.
Risk and mitigation
The Company's business model is longstanding and resilient to most of the
short-term uncertainties that it faces, which the Board believes are
effectively mitigated by its internal controls and the oversight of the
Manager, as described in the latest annual report. The principal and emerging
risks and uncertainties are therefore largely longer-term and driven by the
inherent uncertainties of investing in global equity markets. The Board
believes that it is able to respond to these longer-term risks and
uncertainties with effective mitigation so that both the potential impact and
the likelihood of these seriously affecting shareholders' interests are
materially reduced.
Risks are regularly monitored at Board meetings and the Board's planned
mitigation measures are described in the latest annual report. The Board
maintains a risk register and also carries out a risk review as part of its
annual strategy meeting.
A detailed explanation of the principal risks and uncertainties facing the
Company and how the Board manages them can be found in the 2025 annual report,
which can be found on the Company's website www.stsplc.co.uk
(http://www.stsplc.co.uk) . In the view of the Board, these principal risks
and uncertainties at the year end remain. The Board continues to work with the
agents and advisers to the Company to manage these risks. The risks identified
are as applicable to the remaining six months of the year as they were to the
six months under review.
Going concern status
The Company's business activities, together with the factors likely to affect
its future development, performance and position, are continually monitored by
the Board.
The financial position of the Company as at 30 September 2025 is shown on the
unaudited statement of financial position below. The unaudited statement of
cash flows of the Company is set out below.
The Directors have undertaken a rigorous review of the Company's ability to
continue as a going concern. The Company's assets consist primarily of a
diverse portfolio of listed equity shares which, in most circumstances, are
realisable within a very short timescale. The Directors are mindful of the
principal risks disclosed above. They have reviewed revenue forecasts and the
financial position of the Company. They believe that the Company has adequate
financial resources and a suitably liquid investment portfolio to continue its
operational existence for the foreseeable future and for at least one year
from the date of signing of these financial statements. Accordingly, the
Directors consider it appropriate to continue to adopt the going concern basis
in preparing these financial statements.
Related party transactions
During the first six months of the year, no transactions with related parties
have taken place which have materially affected the financial position or
performance of the Company. There have been no material changes in any related
party transaction described in the annual report for the year ended 31 March
2025.
Directors' responsibility statement
The Directors are responsible for preparing the half yearly financial report
in accordance with applicable law and regulations. The Directors confirm that,
to the best of their knowledge:
• 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 Recommended Practice "Financial Statements of Investment Trust
Companies and Venture Capital Trusts" issued by the AIC in July 2022;
• the interim management report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule 4.2.7R
(indication of important events during the first six months of the financial
year and description of principal risks and uncertainties for the remaining
six months of the year); and
• the interim management report includes a fair review of
the information required by Disclosure Guidance and Transparency Rule 4.2.8R
(disclosure of related party transactions and charges therein).
By order of the Board
Sarah Harvey
Chair
2 December 2025
Portfolio summary
Portfolio distribution as at 30 September 2025
By region (excluding cash) As at As at
30 September 2025 31 March 2025
% %
Europe 53.2 48.7
North America 42.9 45.9
Asia 3.9 5.4
100.0 100.0
By sector (excluding cash) As at As at
30 September 2025 31 March 2025
% %
Consumer staples 31.2 32.2
Industrials 23.7 22.3
Information technology 14.5 12.4
Healthcare 9.5 14.0
Financials 9.2 8.8
Consumer discretionary 8.0 4.9
Real estate 2.0 1.9
Communication services 1.9 3.5
100.0 100.0
By asset class
(including cash and borrowings) As at As at
30 September 2025 31 March 2025
% %
Equities 105.1 104.6
Cash 0.2 0.5
Borrowings (5.3) (5.1)
100.0 100.0
Ten largest holdings 30 September 2025 30 September 31 March 31 March
2025 2025 2025
Market value % of total Market value % of total
£000 portfolio £000 portfolio
British American Tobacco 19,313 6.5 17,325 5.6
CME Group 16,064 5.4 16,983 5.5
Reckitt Benckiser 15,219 5.1 14,407 4.7
Microsoft 14,490 4.9 11,293 3.7
Paychex 14,219 4.8 18,622 6.1
Amadeus IT 13,591 4.6 12,609 4.1
Siemens 13,111 4.4 7,825 2.5
Canadian National Railway 12,564 4.2 9,066 2.9
Admiral Group 11,374 3.8 10,008 3.2
Rentokil 10,590 3.6 8,251 2.7
Unaudited statement of comprehensive income
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
Note Revenue Capital Total Revenue Capital Total
£000 £000 £000 £000 £000 £000
Net gains on investments - 2,007 2,007 - 5,932 5,932
Net currency (losses)/gains (3) 243 240 (26) 649 623
Income 3 4,764 - 4,764 5,810 - 5,810
Investment management fee (203) (377) (580) (180) (334) (514)
Other expenses (360) - (360) (368) - (368)
Net return before finance costs and taxation 4,198 1,873 6,071 5,236 6,247 11,483
Finance costs (149) (277) (426) (183) (339) (522)
Net return on ordinary activities before taxation 4,049 1,596 5,645 5,053 5,908 10,961
Taxation 4 (255) - (255) (190) - (190)
Net return attributable to ordinary shareholders 3,794 1,596 5,390 4,863 5,908 10,771
Net return per ordinary share 2 3.18p 1.34p 4.52p 3.66p 4.45p 8.11p
(Audited)
Year to 31 March 2025
Revenue Capital Total
Note £000 £000 £000
Net gains on investments - 22,547 22,547
Net currency (losses)/gains (10) 275 265
Income 3 10,796 - 10,796
Investment management fee (397) (738) (1,135)
Other expenses (710) - (710)
Net return before finance costs and taxation 9,679 22,084 31,763
Finance costs (347) (644) (991)
Net return on ordinary activities before taxation 9,332 21,440 30,772
Taxation on ordinary activities 4 (672) - (672)
Net return attributable to ordinary shareholders 8,660 21,440 30,100
Net return per ordinary share 2 6.74p 16.68p 23.42p
The total columns of this statement are the profit and loss accounts of the
Company.
The revenue and capital items are presented in accordance with the Association
of Investment Companies ('AIC') Statement of Recommended Practice ('SORP
2022').
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the period.
Unaudited statement of financial position
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 2025 30 September 2024 31 March 2025
Note £000 £000 £000 £000 £000 £000
Non-current assets
Investments at fair value through profit or loss 297,710 308,994 308,024
Current assets
Trade and other receivables 1,002 1,596 1,283
Cash and cash equivalents 433 695 1,471
1,435 2,291 2,754
Current liabilities
Bank loans 5 (14,915) (14,784) (15,138)
Trade payables (676) (786) (1,095)
Total current liabilities (15,591) (15,570) (16,233)
Net current liabilities (14,156) (13,279) (13,479)
Total net assets 283,554 295,715 294,545
Capital and reserves
Called up share capital 7 1,752 1,752 1,752
Capital redemption reserve 78 78 78
Share premium account 148,347 148,245 148,245
Special distributable reserve - 17,660 1,163
Capital reserve 129,583 122,451 137,983
Revenue reserve 3,794 5,529 5,324
Total shareholders' funds 283,554 295,715 294,545
Net asset value per ordinary share 2 242.36p 230.82p 243.10p
Unaudited statement of changes in equity
For the six months ended 30 September 2025 (Unaudited) Called up share capital Capital redemption reserve Share Special distributable reserve*
£000 £000 premium £000 Capital Revenue
account reserve* reserve* Total
£000 £000 £000 £000
As at 1 April 2025 1,752 78 148,245 1,163 137,983 5,324 294,545
Net return attributable to shareholders** - - - - 1,596 3,794 5,390
Shares issued from treasury - - 102 - 453 - 555
Shares bought back into treasury - - - (1,163) (9,530) - (10,693)
Dividends paid - - - - (919) (5,324) (6,243)
As at 30 September 2025 1,752 78 148,347 - 129,583 3,794 283,554
For the six months ended 30 September 2024 (Unaudited) Called up share capital Capital redemption reserve Share Special distributable reserve*
£000 £000 premium £000 Capital Revenue
account reserve* reserve* Total
£000 £000 £000 £000
As at 1 April 2024 1,752 78 148,249 45,033 116,543 2,698 314,353
Net return attributable to shareholders** - - - - 5,908 4,863 10,771
Costs in relation to the issue of shares - - (4) - - - (4)
Shares bought back into treasury - - - (27,373) - - (27,373)
Dividends paid - - - - - (2,032) (2,032)
As at 30 September 2024 1,752 78 148,245 17,660 122,451 5,529 295,715
For the year ended 31 March 2025 Called up share capital Capital redemption reserve Share Special distributable reserve* Capital Revenue Total
(Audited) premium reserve* reserve*
account
£000 £000 £000 £000 £000 £000 £000
As at 1 April 2024 1,752 78 148,249 45,033 116,543 2,698 314,353
Net return attributable to shareholders** - - - - 21,440 8,660 30,100
Costs in relation to the issue of shares - - (4) - - - (4)
Shares bought back into treasury - - - (43,870) - - (43,870)
Dividends paid - - - - - (6,034) (6,034)
As at 31 March 2025 1,752 78 148,245 1,163 137,983 5,324 294,545
*These reserves are distributable with the exception of the unrealised portion
of the capital reserve (£31,020,000; 31 March 2025: £39,440,000; 30
September 2024: £29,444,000), which is non-distributable.
**The Company does not have any other income or expenses that are not included
in the 'Net return attributable to shareholders' as disclosed in the condensed
statement of comprehensive income above, and therefore this is also the 'Total
comprehensive income' for the period.
Unaudited statement of cash flows
(Audited)
(Unaudited) (Unaudited) Year to
Six months to Six months to
30 September 2025 30 September 2024 31 March 2025
Note £000 £000 £000 £000 £000 £000
Cash flows from operating activities
Net return on ordinary activities before taxation 5,645 10,961 30,772
Adjustments for:
Gains on investments (2,007) (5,932) (22,547)
Finance costs 426 522 991
Exchange movement on bank borrowings 6 (223) (665) (311)
Purchases of investments* (36,576) (75,561) (107,343)
Sales of investments* 48,897 97,100 146,467
Dividend income 3 (4,747) (5,799) (10,765)
Other income 3 (17) (11) (31)
Dividend income received 5,005 5,321 10,677
Other income received 19 12 31
Decrease/(increase) in receivables 80 20 (7)
(Decrease)/increase in payables (321) 173 398
Overseas withholding tax deducted (326) (103) (758)
10,210 15,077 16,802
Net cash flows from operating activities 15,855 26,038 47,574
Cash flows from financing activities
Repurchase of ordinary shares (10,777) (27,584) (43,961)
Issue of ordinary share capital** 555 150 222
Equity dividends paid (6,243) (3,768) (7,770)
Interest paid on borrowings (428) (518) (971)
Net cash flows from financing activities (16,893) (31,720) (52,480)
Net decrease in cash and cash equivalents (1,038) (5,682) (4,906)
Cash and cash equivalents at the start of the period 1,471 6,377 6,377
Cash and cash equivalents at the end of the period 6 433 695 1,471
*Receipts from the sale of, and payments to acquire investment securities,
have been classified as components of cash flows from operating activities
because they form part of the company's dealing operations.
** Cash flows in prior periods relate to the transaction with Troy Income
& Growth Trust plc in March 2024.
Notes to the financial statements
Note 1: Accounting policies
For the six months ended 30 September 2025 (and the year ended 31 March 2025),
the Company is applying The Financial Reporting Standard applicable in the UK
and Republic of Ireland ('FRS 102'), which forms part of Generally Accepted
Accounting Practice ('UK GAAP').
These condensed financial statements have been prepared on a going concern
basis in accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, FRS 102 the Financial Reporting Standard
applicable in the UK and Republic of Ireland, FRS 104 Interim Financial
Reporting, and the Statement of Recommended Practice "Financial Statements of
Investment Trust Companies and Venture Capital Trusts" ('SORP') issued by the
AIC in July 2022.
The accounting policies applied for the condensed set of financial statements
are set out in the Company's annual report for the year ended 31 March 2025.
Note 2: Returns and net asset value
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year to
30 September 2025 30 September 2024 31 March 2025
Returns per share
Revenue return (£000) 3,794 4,863 8,660
Capital return (£000) 1,596 5,908 21,440
Total (£000) 5,390 10,771 30,100
Weighted average number of ordinary shares in issue 119,134,546 132,889,765 128,565,700
Revenue return per ordinary share 3.18p 3.66p 6.74p
Capital return per ordinary share 1.34p 4.45p 16.68p
Total return per ordinary share 4.52p 8.11p 23.42p
Net asset value per share
Net assets attributable to shareholders (£000) 283,554 295,715 294,545
Number of shares in issue at period end 116,998,415 128,115,415 121,161,415
Net asset value per share 242.36p 230.82p 243.10p
Note 3: Income
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year to
30 September 2025 30 September 2024 31 March 2025
£000 £000 £000
From listed investments
UK - equities 2,489 2,853 3,956
Overseas - equities 2,258 2,946 6,809
4,747 5,799 10,765
Other income
Deposit interest 17 11 31
4,764 5,810 10,796
During the six months to 30 September 2025 the Company did not receive any
special dividends which were treated as capital (30 September 2024 and year to
31 March 2025: £nil).
Note 4: Taxation
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year to
30 September 2025 30 September 2024 31 March 2025
£000 £000 £000
Irrecoverable overseas withholding tax 255 190 675
Note 5: Bank loans
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 2025 30 September 2024 31 March 2025
£000 £000 £000
Bank borrowings repayable within one year 14,915 14,784 15,138
The Company has a £20m multi-currency revolving credit facility with The
Royal Bank of Scotland International Limited, which expires on 19 September
2026. As at 30 September 2025 £14,915,000 was drawn down until 22 December
2025. The amount has been drawn in the same currency split as borrowed at 30
September 2024 and 31 March 2025 - £1,500,000; €4,500,000; and
US$12,750,000.
Interest is payable at the aggregate of the compounded Risk Free Rate ('RFR')
for the relevant currency and loan period, plus a margin of 1.55%.
Note 6: Analysis of net debt
(Audited) Cash flow £000 Exchange movements (Unaudited)
As at £000 As at
31 March 2025 30 September 2025
£000 £000
Cash at bank 1,471 (1,038) - 433
Bank borrowings (15,138) - 223 (14,915)
(13,667) (1,038) 223 (14,482)
Note 7: Called up share capital
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 2025 30 September 2024 31 March 2025
No. of shares No. of shares No. of shares
Ordinary shares of 1p
Shares in issue 116,998,415 128,115,415 121,161,415
Held in treasury 58,189,770 47,072,770 54,026,770
175,188,185 175,188,185 175,188,185
During the six months ended 30 September 2025 there were 4,388,000 shares
bought back into treasury at a cost of £10,693,000 (six months ended 30
September 2024: 12,402,000 shares at a cost of £27,373,000; year ended 31
March 2025: 19,356,000 shares at a cost of £43,870,000).
During the six months ended 30 September 2025 225,000 shares were issued from
treasury for net proceeds of £555,000 (six months ended 30 September 2024 and
year ended 31 March 2025: no shares were issued from treasury).
No shares were purchased for cancellation or cancelled from treasury in the
current or prior periods.
Note 8: Fair value hierarchy
Under FRS 102, the Company is required to classify fair value measurements
using a fair value hierarchy that reflects the significance of the inputs used
in making the measurements. The fair value hierarchy shall have the following
levels:
- Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities;
- Level 2: other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayments, credit risk, etc); or
- Level 3: significant unobservable input (including the Company's own
assumptions in determining the fair value of investments).
The financial assets measured at fair value through profit and loss are
grouped into the fair value hierarchy as follows:
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 2025 30 September 2024 31 March 2024
£000 £000 £000
Financial assets at fair value through profit or loss - Quoted equities
Level 1 297,710 308,994 308,024
Level 2 - - -
Level 3 - - -
297,710 308,994 308,024
There have been no transfers between levels 1, 2, or 3 during the period
(period to 30 September 2024 and year to 31 March 2025: nil).
Note 9: Half-yearly financial report
The financial information contained in this half-yearly financial report does
not constitute statutory accounts as defined in s434 - 6 of the Companies Act
2006. The financial information for the six months ended 30 September 2025 and
30 September 2024 has not been audited or reviewed.
The information for the year ended 31 March 2025 has been extracted from the
latest published audited financial statements which have been filed with the
Registrar of Companies. The report of the auditors on those accounts contained
no qualification or statement under s498 (2), (3) or (4) of the Companies Act
2006.
A copy of the half-year report can shortly be downloaded at www.stsplc.co.uk
(http://www.stsplc.co.uk) .
Enquiries:
Juniper Partners Limited
Company Secretary
Email: companysecretary@stsplc.co.uk
(1) Source: Bloomberg
(2) Source: Troy Asset Management Limited / Factset
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