REG - European Opps. Trust - Half-year Financial Report
17/02/2026 07:00
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RNS Number : 2343T European Opportunities Trust PLC 17 February 2026
European Opportunities Trust PLC (the 'Company')
Legal Entity Identifier: 549300XN7RXQWHN18849
Half Yearly Financial Report for the six months to 30 November 2025
Financial Highlights
· Net asset value total return (with dividends reinvested) of
(0.2)% and share price total return of 0.9% for the period, compared with a
total return of 10.1% for the Company's Benchmark, the MSCI Europe Total
Return Index in GBP.
· The Company's discount to NAV was 6.6% at the period end. No
shares were repurchased during the period under review.
· The Board announced on 13 February 2026 that it has initiated a
Strategic Review of the future of the Company, including ongoing investment
management arrangements.
Long term track record
Annualised return since launch
Since launch on 20.11.2000 %
%
3 years 5 years 10 years
To 30 November 2025 % % %
Net asset value total return (with dividends reinvested)* 15.2 25.4 80.0 1,042.2 10.2
Share price total return (with dividends reinvested)* 22.4 25.8 62.2 912.1 9.7
MSCI Europe Total Return Index in GBP (Benchmark) 46.2 71.7 157.9 385.0 6.5
* Alternative Performance Measure. For definitions, please refer to page 18.
Source: MSCI & Devon Equity Management Limited. Past performance is no
guide to the future.
Summary of returns for the six months to 30 November 2025
30 November 31 May
2025 2025 % change
Net asset value per share (pence) 965.37 968.89 (0.4)
Net asset value total return (with dividends reinvested)(1, 2) (0.2)
Middle market share price (pence) 902.00 896.00 0.7
Share price total return (with dividends reinvested) (1, 2) 0.9
MSCI Europe Total Return Index in GBP (Benchmark) 10.1
Discount to net asset value at period end (%)(1) (6.6) (7.5)
(1) Alternative Performance Measure. For definitions, please refer to page 18.
(2) A dividend of 2.0p was paid on 28 October 2025.
Source: MSCI & Devon Equity Management Limited. Past performance is no
guide to the future.
Chair's Statement
I present the Company's interim results covering the six months ended 30
November 2025.
Performance overview
During the period under review the total return on the net asset value was
-0.2% (with the annual dividend reinvested), which compares with a total
return of 10.1% from our Benchmark, the MSCI Europe Total Return Index in GBP.
The total return on the market price of the Company's shares was 0.9% (again,
with the annual dividend reinvested). While these results are clearly
disappointing, our Investment Manager has set out in his report overleaf his
analysis of the drivers of underperformance and, importantly, the reasons for
his confidence in the outlook for our portfolio.
Since launch, the Company has generated an annualised NAV total return of
10.2% and an annualised share price total return of 9.7% as at 30 November
2025, compared with 6.5% annualised for the Benchmark over the same period.
Gearing
As of 30 November 2025, the net gearing level on our portfolio was 13.7%,
which compares with 7.2% on 31 May 2025. Net gearing at the end of May was
lower than the 11.5% net gearing on 30 November 2024 and the level of net
gearing at the end of the period under review as a consequence of the
relatively large amount of cash raised in the portfolio ahead of the 25%
tender offer implemented in early June.
We believe that strategic borrowing can play an important role in enhancing
long-term returns and the Company has a £70 million secured multi-currency
revolving credit facility with The Bank of Nova Scotia, London Branch.
River Global PLC and our Investment Manager
On 6 October 2025 our Investment Manager, Devon Equity Management Limited, was
acquired by River Global PLC. While the integration of the two businesses is
ongoing, the Board has taken a broadly positive view of the merger based on
River Global's commitment to investment trusts, the expanded portfolio
management and analyst resource, and the enhanced marketing and distribution
capability of the wider group.
Revised management fee arrangements
As noted in our annual report published in August, the Board and the
Investment Manager have implemented a reduced management fee, effective from 1
October 2025. Under the new arrangements Devon (as our Investment Manager and
AIFM) is entitled to 0.65% per annum on net assets up to £400 million; 0.60%
per annum on any net assets between £400 million and £600 million and 0.55%
per annum on any net assets above £600 million. Previously Devon was entitled
to 0.80% per annum on any net assets up to £1 billion; 0.70% per annum on any
net assets over £1 billion up to £1.25 billion; and 0.60% per annum on any
net assets above £1.25 billion.
Appointment of Juniper Partners as our company secretary
Following a review of the Company's company secretarial function and
competitive tender process, I am pleased to confirm the appointment of Juniper
Partners as the Company's new company secretary, effective from 1 January
2026. Established in 2009, Juniper Partners provide a dedicated service to a
select number of investment companies. Further information about Juniper
Partners is set out on their website at www.junipartners.com.
(http://www.junipartners.com/)
Discount management and the 2025 tender offer
As at 30 November 2025 the Company's Net Asset Value per share was 965p and
the market price was 902p, representing a discount of 6.6%. This compares with
the 3.0% weighted-average discount for the Company's peers in the AIC Europe
sector as at 30 November 2025. As at 31 January, the discount was 6.7%.
In June 2025, the Board implemented a tender offer at close to NAV for 25% of
the shares in issue, which was fully subscribed. The effect of the tender
offer was to reduce the Company's net assets under management to £463 million
as at 30 June 2025.
The Board has a long-standing, active discount management policy, the primary
purpose of which is to reduce discount volatility. It seeks to maintain the
discount in single digits in normal market conditions through an active share
buyback programme. Since the discount has remained within single digits during
the period under review, no shares have been repurchased in the market since
the beginning of the financial year (as at 31 January 2026).
Strategic Review
On 13 February 2026, the Board announced that it had begun a Strategic Review
of the future of the Company, including ongoing investment management
arrangements.
Over the last three years, the Board has been pro-active in seeking to take
steps to enhance shareholder value. These include share buybacks, two
substantial tender offers, and, with the co-operation of the investment
manager, measures to lessen the costs of ownership through two management fee
reductions. However, the Board acknowledges the ongoing performance challenges
and considers that it is likely that the Company will not meet the performance
condition under the performance-related tender offer scheduled for later this
year. The Board is also cognisant of the three-yearly continuation vote to be
held at this year's Annual General Meeting.
Having consulted with a number of the Company's major shareholders, the Board
has concluded that it is appropriate to conduct a Strategic Review of the
future of the Company. Under the review the Board, together with its advisers,
will pro-actively consider a number of strategic options. These may include a
possible combination with another closed-ended fund by means of a scheme of
reconstruction pursuant to section 110 of the Insolvency Act 1986, a cash exit
at close to NAV and an outline proposal which has been received from River
Global in respect of a roll-over into a proposed open-ended investment company
with a similar investment policy to that of the Company. Through the Strategic
Review, the Board will consider the merits of these options for shareholders
in isolation or a combination thereof.
There is no certainty that any changes will result from the Strategic Review.
The Board will make further announcements in due course.
Outlook
The decision to initiate a Strategic Review has not been taken lightly, and
the Board acknowledges the commitment of the team at Devon and the consistency
of style and philosophy with which the Company's assets have been managed.
That said, the Board is acutely aware of the disappointment that our
portfolio's investment performance has entailed for shareholders, and
therefore believe it is the right time for a review of the future of the
Company. The Board looks forward to working with all stakeholders to come to
an optimal solution.
I would like to express my sincere thanks to my fellow Directors and to all of
our shareholders and stakeholders for their continuing support.
Matthew Dobbs
Chair
16 February 2026
Investment Manager's Review
Our portfolio is not just a play on the European economy: our companies tap
into growth drivers worldwide. Global success, of course, increases profits,
and validates our companies' products and services. This strategy has in some
respects been challenged by the policies of the Trump Administration,
specifically the imposition of tariffs and aspects of healthcare policies.
Nevertheless, our companies have not been unduly affected by the tariff
regime. Our strategy is durable and will reap rewards. Indeed, this is the
overarching theme of the portfolio. Exposure to the dynamism and technologies
of the fastest growing regions of the world is good for our investee companies
and therefore good for shareholder returns.
We identify companies that can disrupt and grow through innovation. We seek
these companies against a backdrop of broader trends like the impact of
artificial intelligence (AI), electrification and the increasing demand for
cheap energy and higher defence spending. AI should lift productivity in the
economy; virtually every company will be affected one way or another. There
will be standout winners and losers; we see the winners as those companies
which can leverage AI to extend the scope of their existing services. In the
context of AI, companies which control their own data, like RELX and Experian,
should be well protected against new entrants, and should extend their
services and increase their growth rates.
A huge increase in data centre demand, the power behind AI, lifting power
demand, specifically electricity, is an important long-term trend in all
geographies. We play this theme through our holding in Prysmian, the world
leading manufacturer of electric cables, Infineon, the world leader in power
semiconductors, and GTT. The latter provides engineering services to Liquefied
Natural Gas (LNG) carriers, LNG itself being a beneficiary of the
electrification. We also see sustainably higher defence spending in Europe,
and elsewhere in the world. US defence support for Europe is clearly waning,
as explained in the recently published US National Defense Strategy (NDS) 2025
which emphasised "America First". Europe's defence commitments are increasing.
The European Commission recognises that Europe must do more for its defence
and anticipates that Europe will invest €6.8tr by 2035. Defence stocks,
including Thales, Exosens and BAE Systems, represent around 5.1% of the
portfolio. Technology innovation, and new disruptive business models are other
important components of the portfolio. In biotechnology, Novo Nordisk, Camurus
and Genus are bringing significant innovation to the market. As regards
disruptive business models, Ryanair and Wise are two good examples in the
portfolio. The former is a well-established disruptor of intra-European air
travel; the latter is gaining market share in global money transfers with its
customer-centric offer.
Performance
The period under review was challenging for our investment style with three
factors accounting for the poor relative performance. The first is the
continuing slump in the fortunes of two companies, Novo Nordisk and Edenred.
The second is the perceived negative impact of AI on our data-centric
companies. The third factor is the continued strength of the mainstream banks,
classic 'value' plays in which the portfolio is underweight. We discuss the
key contributors and detractors to the result below.
The following tables detail which stock positions in the Company's portfolio
had the greatest impact on performance during the six months under review,
both positive and negative. The impact is the result of price performance of
each stock over the period, calculated on a transaction basis and including
the impact of foreign currency:
Top 5 Contributors
Security Portfolio weight Benchmark weight at 30.11.2025 6 month total return 6 month contribution
at 30.11.2025 % % to total return
% %
Genus 7.3 0.0 32.8 2.4
Prysmian 5.2 0.2 58.8 2.3
Camurus 5.7 0.0 25.3 1.0
Ryanair 3.7 0.0 25.7 0.9
Grifols 4.3 0.0 17.0 0.6
Top 5 Detractors
Security Portfolio weight Benchmark weight at 30.11.2025 6 month total return 6 month contribution
at 30.11.2025 % % to total return
% %
Dassault Systèmes 6.6 0.2 (23.9) (1.8)
RELX 6.0 0.7 (23.8) (1.6)
Novo Nordisk 6.4 1.5 (27.0) (1.5)
Edenred 3.6 0.1 (26.9) (1.1)
Deutsche Bӧrse 5.2 0.4 (15.1) (0.8)
Contributors
The biggest positive contributor to our performance in the six-month reporting
period was Genus. In April, the FDA approved the company's unique gene editing
technology, giving great confidence in the medium and longer term. Recent
trading results have been strong, underpinning the view that porcine genetics
is a profitable business and that there is still considerable scope to expand
in China.
Prysmian's success is explained by the electrification trend, spurred by the
boom in AI-related capital expenditure.
Camurus' unique drug delivery technology continues to gain acceptance in a
broad range of therapeutic areas. A deal to provide their technology to a
leading US pharmaceutical company was a significant endorsement of their
offer.
Ryanair continues to grow profits, underpinning the view that they are a
structural winner and not simply enjoying a cyclical upturn. The tightness of
intra-European air travel capacity is an important factor in explaining
Ryanair's pricing power.
Grifols' shares contributed to returns. We expect the upsurge in profits to
continue as the company recovers from the problems of the Covid era.
Detractors
Dassault Systèmes has been a disappointing investment in recent times. The
growth rate has declined markedly. The company's offering is very high
quality, but it is hard to implement and at a time when the automotive
industry (their principal customer segment) is dealing with the turmoil of
tariffs and the slowing in the transition to electric vehicles, Dassault
Systèmes' customers have paused major initiatives. We are persuaded that the
company's CAD/CAM (computer aided design and manufacture) offer is a
compelling one and believe that the customer base will adopt it after this
tumultuous period.
RELX has suffered from the perception that it is a loser from AI. The evidence
is scant: in fact, the evidence points the other way with RELX reporting a
higher growth rate than formerly estimated, indicating that this higher rate
is sustainable. Its use of AI should help expand its service offering.
Novo Nordisk was a significant detractor from our performance. A potent
mixture of management and board changes, loss of US market share and a US
Administration delivering unfavourable policies, drove the price down. We
believe that the worst is behind them and that the shares will recover as we
enter a new phase. We expect lower prices for the company's anti-obesity drugs
to spur substantial volume and in turn revenue growth. In addition, the
imminent launch of the new oral weight loss drug, Wegovy Pill, opens a new
avenue for growth.
Edenred shares fell sharply as regulatory changes in their key markets
unsettled investors. The shares are valued as though the business model is
broken. This is not the case: even in that part of their business affected by
regulatory changes, the French and Italian governments are proposing price
increases which will clearly benefit Edenred. Such proposals show continuing
governmental commitment to tax-incentivised employee benefits. After the
adverse bump to profits, in 2026 we expect Edenred to continue its long and
impressive record of earnings growth.
Deutsche Bӧrse diminished the portfolio's returns. It is not easy to
ascertain why. The easy but absurd answer is 'AI'. If there is a perception
that the company will suffer from new entrants using AI to attack Deutsche
Bӧrse's franchise, we think this is a misperception. The company's success is
built on attracting big trading volumes on its exchanges: software providers
cannot change that. Turmoil in financial markets tends to be good for Deutsche
Bӧrse and we expect some turmoil in due course, which will help the company.
Portfolio activity
Trading associated with the tender offer in June accounts for most of the
portfolio turnover in the period under review. Adjusting for this, our
underlying annualised turnover (defined as purchases as a percentage of net
assets) was 25.7%.
Over the six-month period we raised approximately £148 million to satisfy the
tender offer.
We sold £277.9 million of stocks and reinvested £174.8 million. There were
26 holdings at the period end, two fewer than at the end of the previous
reporting period. We established two new holdings whilst exiting four holdings
completely.
We sold the positions in Genmab, Oxford Instruments and Worldline and the
small holding in UMG, preferring to concentrate on investments where we see
greater upside. We also reduced the weightings in some core holdings, namely
in RELX, Novo Nordisk, Genus and Experian, before increasing these again at
lower levels.
We established two new positions in Safran and ALK-Abelló. The case for
Safran is founded on the understanding that the aircraft engine manufacturers,
of which Safran is one of few, are likely to flourish for many years against a
background of strong demand and whilst controlling supply. ALK-Abelló is a
world leader in allergy immunotherapy. Its license for a new needle-free,
adrenaline emergency treatment of anaphylaxis is a recent new growth
opportunity for the company.
We increased weightings in Camurus, where the news is very encouraging,
Prysmian, as the need to overhaul electricity grids becomes more acute, and
Genus where recent results illustrate that it is a good business. We also
firmed holdings in GTT because the volumes of LNG, a key driver of its
fortunes, continue to climb, and Infineon as it has become an important part
of the AI supply chain. When the share price of ICG fell following good
results and management's assessment of an improving outlook, we took the
opportunity to buy more shares.
Outlook
If investors' focus in 2025 was on the huge capital expenditure associated
with AI, to fulfil the productivity promise of AI, the gains will broaden and
be spread across the wider market. European and US equity markets have had
extraordinary levels of concentration in a small number of stocks. We expect
this to give way to good investment returns in the wider market.
Dealing first with armed conflicts, even if (or when) there is a peaceful
resolution in the Russia-Ukraine war, defence spending looks set to increase
for years to come in Europe and around the world. Export markets are a crucial
component for European based defence companies.
As regards energy, there is a stalling in the transition to 'clean' energy.
Yet there is an urgent need for more electricity to meet the requirements of
data centres and AI. For this, reliable energy is needed, the intermittency of
renewable energy being a major problem. Whilst there have been some moves to
moderate green policies, Europe remains committed to the green economy. The
effect is that energy costs for industry and consumers in Europe remain far
higher than in other parts of the world. We do not underestimate the
consequences of relatively high energy costs. At a macro level this has
negative implications for Europe's growth rate. It is one of the elements that
explains why consensus estimates are for the Euro area to grow the economy by
only 1.1% in 2026 compared with global economic expansion of 2.5%. Even
Germany, which is borrowing and spending more now than in recent times, is
forecast by the IMF to enjoy only 1.5% and 2% growth in 2026 and 2027
respectively.
Despite this backdrop, we are confident that our investee companies can
flourish. We seek 'special' companies which compete and succeed on the world
stage; our companies are not energy intensive, being more intellectual
property intensive. We see specific, forecastable catalysts for profitable
growth for our companies. As good investment returns broaden out into the
wider market, we look forward with confidence and expect not only that our
companies will thrive but that this is reflected in better share prices.
Alexander Darwall
CIO, Devon Equity Management Limited
16 February 2026
Investment Portfolio
as at 30 November 2025
Company Market Portfolio weight / % Benchmark weight / %
Value
£'000
Genus 42,769 8.4 0.0
Camurus 34,322 6.7 0.0
Dassault Systèmes 31,888 6.2 0.1
Novo Nordisk 31,336 6.1 1.2
Prysmian 30,676 6.0 0.2
ICG 30,621 6.0 0.0
Experian 28,790 5.6 0.3
RELX 28,067 5.5 0.6
Deutsche Bӧrse 27,655 5.4 0.4
Gaztransport & Technigaz (GTT) 27,300 5.4 0.0
bioMérieux 26,530 5.2 0.0
Infineon Technologies 26,361 5.2 0.4
Ryanair Holdings 21,843 4.3 0.0
Grifols 20,568 4.0 0.0
Edenred 15,285 3.0 0.0
BAE Systems 11,138 2.2 0.5
Air Liquide 10,052 2.0 0.9
Thales 9,916 1.9 0.2
CTS Eventim 9,727 1.9 0.1
Wise 8,655 1.7 0.1
Safran 8,639 1.7 0.9
BFF Bank 7,187 1.4 0.0
VAT Group 5,022 1.0 0.1
Exosens 4,858 1.0 0.0
Bachem 4,098 0.8 0.0
Grifols (preference shares) 3,540 0.7 0.0
ALK-Abelló 3,401 0.7 0.0
Total Investments 510,244 100
Source: Devon, Bloomberg.
Classification of Investments
as at 30 November 2025
Country of Listing % of Investments % of Investments
30 November 2025 31 May 2025
Denmark 6.9 8.7
France 26.7 25.6
Germany 12.6 13.0
Ireland 4.3 3.7
Italy 7.5 5.6
Netherlands 5.6 9.2
Spain 4.1 3.9
Sweden 6.8 3.7
Switzerland 1.8 1.5
UK 23.7 25.1
Total 100.0 100.0
% of Investments % of Investments
Industry Sector 30 November 2025 31 May 2025
Communication Services 1.9 3.8
Energy 5.5 4.3
Financials 15.9 19.7
Health Care 33.3 28.3
Industrials 29.8 29.3
IT 11.6 12.9
Materials 2.0 1.7
Total 100.0 100.0
Statement of Directors' Responsibilities in Relation to the Financial
Statements
Going concern
The Half Yearly Financial Report has been prepared on a going concern basis.
The Directors consider that this is the appropriate basis as they have a
reasonable expectation that the Company has adequate resources to continue in
operational existence and meet its financial commitments as they fall due for
a period of at least twelve months from the date of approval of the unaudited
financial statements. In considering this, the Directors took into account the
Company's investment objective, risk management policies and capital
management policies, the diversified portfolio of readily realisable
securities which can be used to meet short-term funding commitments and the
ability of the Company to meet all of its liabilities and ongoing expenses.
The Directors continue to pay particular attention to the operational
resilience and ongoing viability of the Investment Manager and the Company's
other key third-party suppliers in light of the economic uncertainty arising
from the ongoing global conflicts, inflation, climate change and the impact of
artificial intelligence. Following review, the Directors were satisfied that
Devon and the Company's other key third-party suppliers have measures in place
including conducting risk assessments, ensuring regulatory compliance,
enhancing cyber security and improving supply chain resilience to ensure that
operational functionality is not materially compromised as a result of these
issues.
The Directors continue to adopt the going concern basis of accounting in
preparing the unaudited financial statements. In making this assessment, the
Directors considered the continuation vote which will take place at the 2026
AGM and the recently announced strategic review, details of which can be found
in the Chair's statement.
Principal and emerging risks and uncertainties
The principal risks facing the Company are investment strategy risk, market
risk, operational risk and legal and regulatory risk. Full details of these
risks and how they are managed are set out on pages 22 to 25 of the Company's
Annual Report for the year ended 31 May 2025, which is available on the
Company's website at www.europeanopportunities.com. The principal risks have
not changed since those detailed in the Annual Report. The Board continues to
monitor the principal risks facing the Company.
In addition, the Board monitors emerging risks. No new emerging risks were
identified during the period under review. As part of its assessment of the
viability of the Company, the Board has reviewed and considered the principal
risks and uncertainties that may affect the Company, including emerging risks
and ongoing matters relating to the ongoing global conflicts (and the
resulting economic uncertainty), the impacts of AI and climate change. The
Board has also considered the Company's business model including its
investment objective and investment policy, a forecast of the Company's
projected income and expenses and the liquidity of the Company's portfolio to
ensure that it will be able to meet its liabilities as they fall due.
Directors' Responsibility Statement
We, the directors of European Opportunities Trust PLC, confirm to the best of
our knowledge that:
(a) the condensed set of financial statements have been prepared in
accordance with the Accounting Standards Board's statement 'Half Yearly
Financial Reports' and give a true and fair view of the assets, liabilities,
financial position and profit/(loss) of the Company for the period ended 30
November 2025;
(b) the Half-Yearly Financial Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule 4.2.7R; and
(c) the Half-Yearly Financial Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule 4.2.8R on
related party transactions.
The Half-Yearly Financial Report has not been audited or reviewed by the
Company's auditors.
By order of the Board
Matthew Dobbs
Chair
16 February 2026
Income Statement
for the six months ended 30 November 2025
Notes Six months ended Six months ended
30 November 2025 30 November 2024
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (2,887) (2,887) - (55,669) (55,669)
Other exchange gains - 680 680 - 19 19
Income from investments 4,525 - 4,525 4,241 - 4,241
Other income 31 - 31 26 - 26
Total income 4,556 (2,207) 2,349 4,267 (55,650) (51,383)
Investment management fee 7 (1,636) - (1,636) (2,458) - (2,458)
Other expenses (498) (718) (1,216) (387) - (387)
Total expenses (2,134) (718) (2,852) (2,845) - (2,845)
Net return before finance costs and taxation 2,422 (2,925) (503) 1,422 (55,650) (54,228)
Finance costs (1,481) - (1,481) (1,914) - (1,914)
Return before taxation* 941 (2,925) (1,984) (492) (55,650) (56,142)
Taxation (363) - (363) (497) - (497)
Net return after taxation* 578 (2,925) (2,347) (989) (55,650) (56,639)
Return per ordinary share 2 1.20p (6.07)p (4.87)p (1.54p) (86.47)p (88.01)p
* There is no other comprehensive income and therefore the 'Net return after
taxation' is the total comprehensive income for the financial period.
The total column of this statement is the income statement of the Company,
prepared in accordance with UK adopted International Accounting Standards.
The supplementary revenue return and capital return columns are both prepared
under guidance produced by the Association of Investment Companies (AIC). All
items in the above statement derive from continuing operations.
No operations were acquired or discontinued during the period.
Statement of Financial Position
as at 30 November 2025
Notes 30 November 31 May
2025 2025
(unaudited) (audited)
£'000 £'000
Fixed assets
Investments 6 510,244 644,326
Current assets
Debtors 2,731 5,280
Cash and cash equivalents 4,118 25,444
6,849 30,724
Total assets 517,093 675,050
Current liabilities
Creditors - amounts falling due within 1 year (66,657) (72,277)
Total assets less current liabilities 450,436 602,773
Capital and reserves
Called up share capital 733 888
Share premium 204,133 204,133
Special reserve 33,687 33,687
Capital redemption reserve 441 286
Reserves 3 211,442 363,779
Total shareholders' funds 450,436 602,773
Net asset value per ordinary share 4 965.37p 968.89p
Statement of Changes in Equity
for the six months to 30 November 2025
For the six months to Share Capital Share Premium £'000 Special Reserve £'000 Capital Retained Earnings Total
30 November 2025 (unaudited) £'000 Redemption £'000 £'000
Reserve
£'000
Balance as at 1 June 2025 888 204,133 33,687 286 363,779 602,773
Net loss after taxation - - - - (2,347) (2,347)
Repurchase of ordinary shares for cancellation (155) - - 155 (149,057) (149,057)
Dividends declared and paid* - - - - (933) (933)
Balance as at 30 November 2025 733 204,133 33,687 441 211,442 450,436
For the six months to Share Capital Share Premium Special Reserve Capital Retained Earnings Total
30 November 2024 (unaudited) £'000 £'000 £'000 Redemption Reserve £'000 £'000
£'000
Balance as at 1 June 2024 888 204,133 33,687 286 417,444 656,438
Net loss after taxation - - - - (56,639) (56,639)
Repurchase of ordinary shares into treasury - - - - (18,753) (18,753)
Dividends declared and paid* - - - - (1,265) (1,265)
Balance as at 30 November 2024 888 204,133 33,687 286 340,787 579,781
* Dividends paid during the period were paid out of revenue reserves.
Cash Flow Statement
for the six months to 30 November 2025
Six months ended Six months ended
30 November 2025 30 November 2024
(unaudited) (unaudited)
£'000 £'000
Cash flows from operating activities
Investment income received (gross) 4,937 4,457
Deposit interest received 31 26
Investment management fee paid (2,151) (2,620)
Other cash expenses (422) (105)
Net cash inflow from operating activities before taxation and interest 2,395 1,758
Interest paid (1,658) (1,284)
Taxation (542) (203)
Net cash inflow from operating activities 195 271
Cash flows from investing activities
Purchases of investments (145,468) (67,352)
Sales of investments 278,975 76,491
Net cash inflow from investing activities 133,507 9,139
Cash flows from financing activities
Repurchase of ordinary shares into treasury - (18,753)
Repurchase of ordinary shares for cancellation (149,057) -
Tender cost (718) -
Equity dividends paid (933) (1,265)
Repayment of loan (15,000) (20,000)
Drawdown of loan 10,000 30,000
Net cash outflow from financing activities (155,708) (10,018)
Decrease in cash (22,006) (608)
Cash and cash equivalents at the start of the period 25,444 5,615
Realised gain on foreign currency 680 19
Cash and cash equivalents at end of period 4,118 5,026
Notes to the Financial Statements
1. Material accounting Policies
The Accounts comprise the unaudited financial results of the Company for the
period to 30 November 2025. The functional and reporting currency of the
Company is pound sterling because that is the currency of the prime economic
environment in which the Company operates. All values are rounded to the
nearest thousand pounds (£'000) except where indicated.
The Accounts have been prepared in accordance with UK-adopted International
Accounting Standards and the requirements of the Companies Act 2006.
Where presentational guidance set out in the Statement of Recommended Practice
for Investment Trusts issued by the Association of Investment Companies in
July 2022 (the 'AIC SORP') is consistent with the requirements of UK-adopted
International Accounting Standards in conformity with the Companies Act 2006,
the Directors have sought to prepare the financial statements on a basis
compliant with the recommendations of the AIC SORP. The Accounts have also
been prepared in accordance with the Disclosure Guidance and Transparency
Rules issued by the Financial Conduct Authority. The accounting policies
applied are consistent with those of the audited annual financial statements
for the year ended 31 May 2025 and are described in those financial
statements. In this regard, comparative figures from previous periods are
prepared to the same standards as the current period, unless otherwise stated.
The Board continues to adopt the going concern basis in the preparation of the
financial statements.
(a) Income recognition
Ordinary dividends from investments are recognised when the investment is
quoted ex-dividend on or before the date of the Statement of Financial
Position. All overseas dividend income is disclosed net of withholding tax.
Ordinary dividends receivable from equity shares are taken to the revenue
return column of the Income Statement. Deposit and other interest receivable
are accounted for on an accruals basis. These are classified within operating
activities in the Cash Flow Statement. Special dividends are reviewed on a
case-by-case basis to determine if the dividend is to be treated as revenue or
capital.
(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust company and
in accordance with guidance issued by the Association of Investment Companies
(AIC), supplementary information which analyses the Income Statement between
items of a revenue and capital nature has been presented. In accordance with
the Company's Articles of Association, net capital returns may not be
distributed by way of dividend. An analysis of retained earnings broken down
into revenue (distributable) items and capital (non-distributable) items is
given in Note 3. All other operational costs including administration expenses
and finance costs are charged to revenue.
(c) Basis of valuation of investments
Investments are recognised and derecognised on a trade date where a purchase
and sale of an investment is under contract whose terms require delivery of
the investment within the timeframe established by the market concerned.
Investments are included initially at fair value which is taken to be their
cost, excluding expenses incidental to purchase which are written off to
capital at the time of acquisition.
All investments are classified as held at fair value through profit or loss.
All investments are measured at fair value with changes in their fair value
recognised in the Income Statement in the period in which they arise. The fair
value of listed investments is based on their quoted bid price at the
reporting date without any deduction for estimated future selling costs.
Foreign exchange gains and losses on fair value through profit or loss
investments are included within the changes in the fair value of the
investments.
For investments that are not actively traded and/or where active stock
exchange quoted bid prices are not available, fair value is determined by
reference to a variety of valuation techniques. These techniques may draw,
without limitation, on one or more of: the latest arm's length traded prices
for the instrument concerned; financial modelling based on other observable
market data; independent broker research; or the published accounts relating
to the issuer of the investment concerned.
2. Return per share
The table below shows the return per share analysed between revenue and
capital.
Six months to Six months to
30 November 2025 30 November 2024
£'000 £'000
Net revenue return 578 (989)
Net capital return (2,925) (55,650)
Net return (2,347) (56,639)
Weighted average number of shares in issue during the period
48,189,260 64,354,393
Return per ordinary share (p) 1.20 (1.54)
Capital return per ordinary share (p) (6.07) (86.47)
Return per ordinary share (p) (4.87) (88.01)
3. Retained earnings
The table below shows the movement in the retained earnings analysed between
revenue and capital items.
Revenue* Capital Total
£'000 £'000 £'000
On 1 June 2025 6,571 357,208 363,779
Net return for the period 578 (2,925) (2,347)
Repurchase of ordinary shares for cancellation - (149,057) (149,057)
Dividends declared and paid (933) - (933)
On 30 November 2025 6,216 205,226 211,442
* These reserves form the distributable reserves of the Company and may be
used to fund distribution of profits to investors via dividend payments.
4. Net asset value per share
The net asset value per share is based on the net assets attributable to
shareholders of £450,436,000 (31 May 2025: £602,773,000) and on 46,659,442
(31 May 2025: 62,212,589) shares, being the number of shares in issue at the
period end.
5. Comparative information
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
financial information for the six months to 30 November 2025 and 30 November
2024 has not been audited. The information for the year ended 31 May 2025 has
been extracted from the latest published audited financial statements. The
audited financial statements for the year ended 31 May 2025 have been filed
with the Register of Companies. The report of the auditors on those Accounts
contained no qualification or statement under section 498(2) of the Companies
Act 2006.
6. Fair value of investments
IFRS 13 Fair Value Measurement requires an entity 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 reflects financial instruments quoted in an active market.
Level 2 reflects financial instruments whose fair value is evidenced by
comparison with other observable current market transactions in the same
instrument or based on a valuation technique whose variables includes only
data from observable markets.
Level 3 reflects financial instruments whose fair value is determined in whole
or in part using a valuation technique based on assumptions that are not
supported by prices from observable market transactions in the same instrument
and not based on available observable market data.
The fair value hierarchy for investments held at fair value at the period end
is as follows:
30 November 2025 31 May 2025
Level 1 £'000 Level 2 £'000 Level 3 £'000 Total £'000 Level 1 £'000 Level 2 £'000 Level 3 £'000 Total £'000
Investments 510,244 - - 510,244 644,326 - - 644,326
7. Related parties
Devon Equity Management Limited ("Devon") has served as Investment Manager to
the Company since 15 November 2019 and became AIFM on 1 July 2022.
Devon is entitled to aggregate management fees of 0.65% per annum on net
assets up to £400 million; 0.60% per annum on any net assets between £400
million and £600 million and 0.55% per annum on any net assets above £600
million effective from 1 October 2025. Previously, Devon was entitled to 0.80%
per annum on any net assets up to £1 billion; 0.70% per annum on any net
assets over £1 billion up to £1.25 billion; and 0.60% per annum on any net
assets above £1.25 billion.
8. Availability of Half Yearly Financial Report
The Half Yearly Financial Report will shortly be available for download from
the Company's website www.europeanopportunities.com
A copy of the Half Yearly Financial Report will also be submitted to the FCA's
National Storage Mechanism and will soon be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
For further information, please contact:
Juniper Partners Limited
Company Secretaries to European Opportunities Trust PLC
0131 3780500
cosec@junipartners.com
16 February 2026
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) are
incorporated into, or form part of, this announcement.
END
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