REG-Manchester & London Investment Trust Plc: Half-year Financial Report
18/03/2026 11:15
18 March 2026
MANCHESTER AND LONDON INVESTMENT TRUST PLC
(the “Company”)
The Company today announces its Half-yearly Report for the six months ended 31
January 2026 A copy of the Half-Yearly Report can be accessed via the
Company’s website at
www.mlcapman.com/manchester-london-investment-trust-plc
or by contacting the Company Secretary by email on
mlitcosec@cm.mpms.mufg.com
.
Summary of Results
At 31 January 2026 At 31 July 2025 Change
Net assets attributable to Shareholders (£’000) 398,943 413,128 (3.4%)
Net asset value (“NAV”) per Ordinary Share (pence) 1,049.17 1,077.29 (2.6%)
Six months to 31 January 2026
NAV per share total return* (1.4%)
* Total return including dividends reinvested, as sourced
from Bloomberg.
Six months to 31 January 2026 Six months to 31 January 2025 Change
Interim dividend per Ordinary Share (pence) 20.00 7.00 13.00p
Special dividend per Ordinary Share (pence) 0.00 7.00 (7.00p)
Dates for the interim dividend
Ex-dividend date 9 April 2026
Record date 10 April 2026
Payment date 8 May 2026
CHAIRMAN’S STATEMENT
Introduction & Performance
The first half of 2026 has been defined by a rapid acceleration in the
capabilities of Ai, most notably with the emergence of capable Ai Agents such
as Claude Code. This technological leap has precipitated
a material divergence in technology performance, causing significant
disruption to software stocks as the market reassesses the durability of
legacy seat-based SaaS business models in an agentic world.
This disruption has broadened beyond software to impact sectors such as
publishing, financials and even healthcare, leaving fewer hiding places for
those that have yet to embrace the Ai era.
The Company’s NAV per share Total Return for the half year was -1.4 per
cent. Performance was primarily held back by the
underperformance of Microsoft, an exposure the Manager has since materially
cut. The Manager’s Report sets out the performance of
the portfolio in more detail, including stock-specific contributions.
The annualised NAV per share Total Return (dividends reinvested) in GBP for
the Management Team since inception (September 2015) remains approximately 17
per cent per annum.
Board and Composition
There have been no changes to the Board during the period.
Biographical details of all the directors can be found in the latest AGM
notice and the latest Annual Report.
Capital Returns, Buy Backs, Discounts & Dividends
At the period end, the Shares traded at a 26.0 per cent discount to their NAV
per Share, compared to an average discount of 18.8 per cent in 2025.
On 24 September 2025 the Company announced it would be pausing on-market share
buybacks because the aggregate proportion of the Company’s voting power held
by the public (as that term is used in section 446 of the Corporation Tax Act
2010) is now close to the minimum 35 per cent threshold.
The Board does not expect a near-term resumption of
buybacks.
Some shareholders have expressed their view to the Manager that the pause of
share buybacks means that total capital returns via
dividends and buybacks to shareholders will hence reduce.
As a result, on 23 October 2025 the company announced an
Enhanced Dividend Policy, stating an intention to pay at least 40p per share
per annum ordinary dividend for the next five years.
Consequently, we have declared an increased ordinary interim dividend of 20
pence per Ordinary Share. This
marks an increase from the prior year (31 January 2025: 7.0p ordinary and 7.0p
special) and underscores our commitment to shareholder returns.
Auditor
Deloitte LLP were re-appointed as the Company’s auditor at the AGM held in
2025.
Outlook
The emergence of autonomous Ai agents in 2026 marks a watershed moment,
comparable in significance to the launch of ChatGPT. In
our view, this development reinforces the critical necessity of the
infrastructure required to support these models, underpinning our conviction
that the Ai buildout has many years yet to run. It is
becoming clear that Ai Agents are a serious substitute to Humans in the
undertaking of various functions within an Enterprise.
However, we anticipate this will precipitate further disruption to legacy
business models, potentially impacting even those incumbents currently viewed
as 'safe'.
Within the Ai sector itself, market leadership is increasingly fluid; the
fortunes of individual companies can pivot sharply on perceptions of success,
with single model releases capable of driving significant share price
movements. Furthermore, the rapid pace of technological
change within Ai infrastructure is driving pronounced volatility where a stock
can go from market darling to being perceived technologically obsolete in a
matter of weeks. Consequently, 2026
represents perhaps the most complex environment for stock selection in the
Manager’s decade-long tenure, a landscape offering exceptional opportunity,
but accompanied by elevated disruption risk.
The numerous risks we face include geopolitical friction between the US and
China, sticky inflation, and the evolving regulatory landscape.
However, our conviction in the "Machine Age" remains undiminished.
We believe that focusing our investment exposure on the
hardware and infrastructure enabling this transition offers the best path to
long-term capital appreciation.
Please do not forget to consider the fund for this year’s ISA allowance.
Daniel Wright
Chairman
18 March 2026
MANAGER'S REPORT
Market Review
The Nasdaq 100 Technology Sector Index (NDXT) delivered a total return of 6.5
per cent in Sterling terms, a headline figure that masked a highly bifurcated
market where constituents were roughly evenly split between gainers and
losers. Index performance was narrowly concentrated, the
Memory and Semi Cap companies with high Memory exposure accounted for
approximately 55 per cent of the index's return. A
further 50 per cent of the index’s performance was driven by
Alphabet Inc , buoyed by the perceived success of its
Gemini models. Conversely,
Microsoft was the significant detractor for the
index.
Against this backdrop, the Company’s NAV per share Total Return for the half
year was -1.4 per cent. Microsoft
was the primary reason for this underperformance,
creating a drag of approximately -4.6 per cent. Since
the period end, we have decisively reduced the Fund's exposure to Microsoft to
just 0.5 per cent of Net Assets. Whilst Microsoft has a
sensible roadmap to becoming a key Hyperscaler/Enterprise Platform for Ai, the
execution by the
management team has been too slow and technologically underwhelming compared
to competitors like Anthropic.
Currency movements provided a further material headwind.
The 3.7 per cent appreciation of Sterling against the US Dollar during the
period reduced returns, given the portfolio's significant US Dollar exposure.
We estimate that Foreign Exchange movements negatively
impacted portfolio performance by approximately 3.5 per cent.
The total return of the portfolio by
sector holdings in local currency
(excluding costs and foreign exchange) is shown below.
Total return of underlying sector holdings in local currency (excluding costs and foreign exchange) 2026
Technology 2.5%
Consumer -0.5%
Financials 0.0%
Healthcare 0.0%
Other Investments (including Funds, ETFs and Hedges) 0.9%
Foreign Exchange, operating costs & financing -4.3%
Total NAV per Share return -1.4%
Technology
Material positive performers (>1 per cent contribution to return) included
Nvidia Corp, ASML Holding NV and Advanced Micro Devices Inc.
Material negative contributors included Microsoft Corp and Synopsys Inc, both
Software stocks. As noted above, Microsoft has now been
reduced to 0.5 per cent of Net Assets, whilst Synopsys has been fully
disposed.
Following the exit of Synopsys and the strategic reduction of our Microsoft
position, the Fund now retains minimal exposure to legacy 'Software 1.0'.
It is our view that most incumbent
software business models face a radical transformation in the agentic era, a
transition likely to result in structurally lower operating margins.
We remain focused on the 'picks and shovels' of Ai, increasing our exposure to
critical hardware components such as optical interconnects.
However, the velocity of technological change within the Data Center is
accelerating; consequently, we must dynamically adapt our positioning to
capture shifting architectural trends. Shareholders
should therefore anticipate higher portfolio turnover than in prior periods.
In recent newsletters, we have detailed the rationale underpinning our $500
price target for Nvidia, a valuation derived from our modelling of specific Ai
workload demands and the silicon best positioned to service them.
While we will continuously recalibrate this target as new data
emerges, we currently see no superior risk-adjusted vehicle to capture the
value of the Ai transition.
The portfolio's weighting to this sector (including options on a MTM basis) at
the period end was 95.8 per cent of the net assets, down marginally from 96.0
percent at the end of the previous financial year.
Consumer
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at
the period end was 4.8 per cent of the net assets, up from 3.3 per cent at the
end of the previous financial year.
Financials
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at
the period end was 3.5 per cent of the net assets, up from 3.2 per cent at the
end of the previous financial year.
Healthcare
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at
the period end was 1.9 per cent of the net assets, up from 1.6 per cent at the
end of the previous financial year.
Other (including funds, ETFs and beta hedges)
There were no material positive or negative performers in this sector.
The portfolio's weighting to this sector (including options on a MTM basis) at
the period end was 8.3 per cent of the net assets, up from 3.2 per cent at the
end of the previous financial year.
Market Outlook
While inflation has moderated from its peaks, it remains sticky, suggesting
that the path to lower interest rates may be more gradual than previously
hoped. However, even a stabilisation in yields provides
a constructive backdrop for future equity returns.
Geopolitical risks between the US and China persist, and we expect ongoing
uncertainty around global tariff rates as supply chains continue to decouple.
We continue to believe our portfolio of long-duration assets is likely to be
more sensitive to interest rate movements than to the effects of a mild
recession. Furthermore, should cash rates fall below a
certain threshold, we anticipate a significant rotation from money market
funds into growth equities, driven by the superior earnings potential of the
Ai economy.
Market Risks
The primary challenges to equities remain inflation, recession, regulation,
energy prices, and war. While
inflation has moderated from its peaks, it remains sticky, and history warns
of potential reversals. We remain hopeful that over
time, productivity gains from the "Machine Age" and the deployment of Ai
Agents can assist in structurally reducing inflation via increased
productivity.
There is the possibility that countries that undertake material Ai investment,
such as the USA, will be rewarded with a decade or so of both productivity
gains and relatively strong economic growth. Should that
scenario be combined with contained geopolitical risks, then we could see a
period of sustained stock market returns.
Geopolitical risks, such as the conflict in Ukraine, the Middle East, and
US-Sino relations, also pose very material concerns. The
world continues to splinter into distinct spheres of influence, and while the
US generational shift in trade policy may be beneficial in the long run, it
introduces heightened uncertainty today.
Global debt levels and persistent fiscal deficits remain a source of concern,
and we continue to watch sovereign bond yields with vigilance.
China, Iran, North Korea, and Russia all have a history of being
volatile actors that can cause numerous horrific events that could cause
material downside for the markets. The companies in our
portfolio have a material exposure to China and Taiwan, hence we have been
active at various times in recent years at laying on hedges against this risk.
Ai Outlook
Contrary to the mainstream narrative, we see no evidence of an Ai bubble at
this stage. We view current Capital Expenditure levels as not only sustainable
but entirely commensurate with the magnitude of the opportunity.
Our dashboard of key metrics, including token usage, ROI, hyperscaler
backlogs, and enterprise adoption, points unequivocally to healthy unit
economics for the sector.
The capability frontier has advanced rapidly in recent months, and we expect
this momentum in reasoning and autonomy to persist throughout the year.
We previously noted that the duration of tasks Ai could perform
autonomously was doubling every seven months; this rate of improvement has now
accelerated to just four months.
We view the dramatic success of Coding Agents as merely the beachhead for
wider Ai adoption. As SemiAnalysis recently observed:
"Coding was once the most valuable work of all... Coding is now a beachhead in
terms of the disruption that agentic information processing has, and the
larger 15 trillion-dollar information work economy is now at risk. There are
1b+ information workers, or roughly 1/3rd of the global 3.6 billion
workforce."
We expect continued efficiency gains from hardware advances and model
optimisations to further drive down the cost per unit of intelligence, thereby
improving ROI for enterprise adopters.
Following further guidance upgrades during Q1, we remain on track for another
year of 60 per cent growth in hyperscaler Ai capex. Total combined 2025 and
2026 cloud capex is now projected at $1.2 trillion which is an increase of
$500 billion from estimates just a year ago.
Consequently, we anticipate a continued reallocation of corporate budgets from
Labour towards Ai, driving further displacement of workers. Longer term, we
expect significant advances in robotics, particularly industrial robotics
driven by the onshoring of manufacturing and assembly activities back to the
USA. We would observe that those most at risk from
disruption of Ai appear to be those that believe the least in its future
possibilities. It is worth
considering that point when you are next faced with abject denial of Ai’s
substitution risk to Human Enterprise functionality.
Concentration Risk
Since the last year end, we have materially reduced our portfolio
concentration. Nevertheless, at the time of writing, our
top five holdings still represent approximately 71% of Net Assets (by Delta
Adjusted Exposure), with our single largest holding accounting for circa 43%.
While we are happy to diversify further once opportunities allow (eg after
Anthropic and SpaceX Ipos) we refuse to diversify arbitrarily by rotating
capital from quality into 'also-rans'.
In our Annual Report released in September 2025, we cautioned:
'We would not be surprised if, in a few years’ time, it will be seen
that the most dangerous portfolio to hold from today was a widely diversified
selection of legacy Software 1.0 stocks.'
Regrettably for many, this prediction has played out and even affected the
Enterprise Software names like Microsoft that we felt would be more sheltered
from these fears.
For our Retail Shareholders, the logical conclusion of this concentration risk
is that the Fund should form part of a broader, diversified portfolio.
We urge you not to over-concentrate your
own holdings in this Fund if you cannot afford to bear potential losses.
“Diversification is protection against ignorance. It makes little sense if
you know what you are doing,”
Warren Buffett
Conclusion
The risks are varied, numerous and material but the Era of Ai has many years
left to run. Ai offers investors a first-class ticket to
what could be one of the most exciting investment and economic periods of the
century.
Please:
Visit our website:
https://mlcapman.com/about/
Follow our Tweets at: https://x.com/MLCapMan
Read our previous articles at:
https://www.linkedin.com/company/m-&-l-capitalmanagement-ltd/
Long the Future.
M&L Capital Management Limited @MLCapMan
18 March 2026
Equity Exposures AND PORTFOLIO SECTOR ANALYSIS
Equity exposures (longs)
As at 31 January 2026
Company Sector* Exposure £’000 % of net assets
NVIDIA Corporation** Technology 174,099 43.6
Broadcom Inc. Technology 1,849 10.5
TSMC** Technology 38,276 9.6
Microsoft Corporation Technology 34,092 8.6
Lumentum Holdings Inc.** Technology 17,736 4.4
Robinhood Markets Inc.** Financials 15,390 3.9
Ciena Corporation** Technology 14,307 3.6
Synopsys Inc. Technology 11,238 2.8
Liberty Media Formula One Group** Consumer 10,323 2.6
Vertiv Holdings Co.** Technology 10,205 2.6
ROBO Global Robotics & Automation** Funds, ETFs & Baskets 10,003 2.5
Arista Networks Inc. Technology 8,885 2.2
Coherent Corporation** Technology 8,429 2.1
ASML Holding NV** Technology 7,483 1.9
Intuitive Surgical Inc. Healthcare 6,505 1.6
Bloom Energy Corporation** Energy 6,256 1.6
Infineon Technologies AG** Technology 5,689 1.4
Lam Research Corporation Technology 5,284 1.3
Karman Holdings Inc.** Industrials & Defence 5,033 1.3
Celsius Holdings Inc.** Consumer 4,843 1.2
AeroVironment Inc. Industrials & Defence 4,647 1.2
TKO Group Holdings Inc.** Consumer 3,787 1.0
SiTime Corporation** Technology 3,762 0.9
Dell Technologies Inc.** Technology 3,654 0.9
Solaris Energy Infrastructure Energy 2,575 0.7
MACOM Technology Holdings Inc.** Technology 2,315 0.6
ARK Space & Defence Innovation Funds, ETFs & Baskets 2,266 0.6
GE Vernova Inc.** Energy 2,118 0.5
Alphabet Inc. Technology 1,249 0.3
Insulet Corporation Healthcare 1,050 0.3
Polar Capital Technology Trust plc Funds, ETFs & Baskets 577 0.1
ERShares Private-Public Crossover Funds, ETFs & Baskets 569 0.1
Motorola Solutions Inc.** Industrials & Defence 458 0.1
Live Nation Entertainment Inc. Consumer 181 0.0
Palo Alto Networks Inc.** Technology 15 0.0
Total Long Equity exposure 465,148 116.6
Other net assets and liabilities*** (66,205) (16.6)
Net assets 398,943 100.0
* Sector weightings have been determined
using the primary sector classification assigned to each holding by a leading
Ai model, based on an analysis of the company’s core business activities and
industry focus.
** Including equity swap exposures.
***Includes Short Equity exposures and Options valued at marked to market.
Exposure is related to Delta Adjusted Exposure (Glossary).
INTERIM MANAGEMENT REPORT
The important events that have occurred during the period under review and the
key factors influencing the financial statements are set out in the
Chairman’s Statement on pages 4 and 5 and the Manager’s Report on pages 6
to 9.
The principal risks facing the Company are substantially unchanged since the
date of the latest Annual Report and Financial Statements and continue to be
as set out in the Strategic Report and note 16 of that report.
Risks faced by the Company include, but are not limited to, investment
performance risk; key man risk and reputational risk; fund valuation risk;
risk associated with engagement of third-party service providers; regulatory
risk; fiduciary risk; fraud risk; portfolio concentration; and discount risk.
Details of the Company’s management of these risks are
set out in the Annual Report and Financial Statements.
M&M Investment Company plc is the controlling shareholder of the Company.
This company was controlled throughout the six months ended
31 January 2026, and continues to be controlled by Mark Sheppard, who forms
part of the investment management team at M&L Capital Management Limited.
Details of related party disclosures are set out in note 7 of
this Report.
DIRECTORS’ REPORT
Going Concern
As detailed in the notes to the financial statements and in the Annual Report
for the year ended 31 July 2025, the Board continually monitors the financial
position of the Company and has considered for the six months ended 31 January
2026 an assessment of the Company’s ability to meet its liabilities as they
fall due. The review also included consideration of the
level of readily realisable investments and current cash and debt ratios of
the Company and the ability to repay any outstanding prime broking facilities.
In light of the results of these tests on the
Company’s cash balances and liquidity position, the Directors consider that
the Company has adequate financial resources to enable it to continue in
operational existence. Having carried out the
assessment, the Directors are satisfied that it is appropriate to continue to
adopt the going concern basis in preparing the financial results of the
Company. The Directors have not identified any material
uncertainties or events that might cast significant doubt upon the Company’s
ability to continue as a going concern. The assets of
the Company comprise mainly of securities that are readily realisable and
accordingly, the Company has adequate financial resources to meet its
liabilities as and when they fall due and to continue in operational existence
for the foreseeable future.
Related Party Transactions
In accordance with DTR 4.2.8R there have been no new related party transaction
agreements during the six-month period to 31 January 2026 and therefore
nothing to report on any material effect by such transactions on the financial
position or performance of the Company during that period.
There have therefore been no changes in any related party transaction
agreements described in the last Annual Report that could have a material
effect on the financial position or performance of the Company in the first
six months of the current financial year or to the date of this report.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors confirm that to the best of their knowledge:
• the condensed set of financial statements has been prepared in accordance
with International Accounting Standard 34, Interim Financial Reporting; and
gives a true and fair view of the assets, liabilities, financial position and
return of the Company; and
• this Half-Yearly Report includes a fair review of the information required
by:
a) DTR 4.2.7R of the Disclosure Guidance and
Transparency Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and
Transparency Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have materially
affected the financial position or performance of the Company during that
period; and any changes in the related party transactions described in the
last Annual Report that could do so.
This Half-Yearly Report was approved by the Board of Directors and the above
responsibility statement was signed on its behalf by:
Daniel Wright
Chairman
18 March 2026
Condensed Statement of Comprehensive Income
For the six months ended 31 January 2026
(Unaudited) Six months ended 31 January 2026 (Unaudited) Six months ended 31 January 2025 (Audited) Year ended 31 July 2025
Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000
Gains/(Losses) on investments at fair value through profit or loss 172 (3,581) (3,409) 126 23,513 23,639 346 104,967 105,313
Investment income 486 - 486 605 - 605 1,090 - 1,090
Interest income 569 - 569 624 - 624 1,251 - 1,251
Other income 24 - 24 - - - - - -
Gross return 1,251 (3,581) (2,330) 1,355 23,513 24,868 2,687 104,967 107,654
Expenses
Management fee (1,498) - (1,498) (1,256) - (1,256) (2,447) - (2,447)
Other operating expenses (338) - (338) (324) - (324) (635) - (635)
Total expenses (1,836) - (1,836) (1,580) - (1,580) (3,082) - (3,082)
Return before finance costs and taxation (585) (3,581) (4,166) (225) 23,513 23,288 (395) 104,967 104,572
Finance costs (37) (1,707) (1,744) (61) (1,617) (1,678) (105) (2,999) (3,104)
Return on ordinary activities before tax (622) (5,288) (5,910) (286) 21,896 21,610 (500) 101,968 101,468
Taxation (70) - (70) (46) - (46) (109) - (109)
Return on ordinary activities after tax (692) (5,288) (5,980) (332) 21,896 21,564 (609) 101,968 101,359
Return per Share: Basic and fully diluted (pence) (1.82) (13.89) (15.71) (0.83) 54.60 53.77 (1.54) 257.29 255.75
The total column of this statement represents the Condensed Statement of
Comprehensive Income, prepared in accordance with international accounting
standards in conformity with the requirements of UK IFRS and the Companies Act
2006. The supplementary revenue and capital columns are
both prepared under the Statement of Recommended Practice published by the
Association of Investment Companies (“AIC SORP”).
All items in the above statement are derived from continuing operations.
No operations were acquired or discontinued during the period.
There is no other comprehensive income, and therefore the return for the
period after tax is also the total comprehensive income.
The notes on pages 17 to 21 form part of these financial statements.
Condensed Statement of Changes in Equity
For the six months ended 31 January 2026
For the six months from 1 August 2025 to 31 January 2026 (unaudited) Share capital £’000 Share premium £’000 Special reserve* £’000 Capital reserve* £’000 Retained earnings* £’000 Total £’000
Balance at 1 August 2025 10,132 25,888 64,138 313,579 (609) 413,128
Ordinary shares bought back and held in treasury - - (2,881) - - (2,881)
Total comprehensive income - - - (5,288) (692) (5,980)
Dividends paid - - (5,324) - - (5,324)
Balance at 31 January 2026 10,132 25,888 55,933 308,291 (1,301) 398,943
For the six months from 1 August 2024 to 31 January 2025 (unaudited) Share capital £’000 Share premium £’000 Special reserve* £’000 Capital reserve* £’000 Retained earnings* £’000 Total £’000
Balance at 1 August 2024 10,132 25,888 86,468 211,611 - 334,099
Ordinary shares bought back and held in treasury - - (3,065) - - (3,065)
Total comprehensive income - - - 21,896 (332) 21,564
Dividends paid - - (2,807) - - (2,807)
Balance at 31 January 2025 10,132 25,888 80,596 233,507 (332) 349,791
For the year from 1 August 2024 to 31 July 2025 (audited) Share capital £’000 Share premium £’000 Special reserve* £’000 Capital reserve* £’000 Retained earnings* £’000 Total £’000
Balance at 1 August 2024 10,132 25,888 86,468 211,611 - 334,099
Ordinary shares bought back and held in treasury - - (14,038) - - (14,038)
Total comprehensive income - - - 101,968 (609) 101,359
Dividends paid - - (8,292) - - (8,292)
Balance at 31 July 2025 10,132 25,888 64,138 313,579 (609) 413,128
* These reserves are distributable, excluding any
unrealised capital reserve. The balance of the
unrealised capital reserve at 31 January 2026 was £199,468,000 (31 January
2025: £170,096,000; 31 July 2025: £242,928,000).
The notes on pages 17 to 21 form part of these financial statements.
Condensed Statement of Financial Position
As at 31 January 2026
Notes (Unaudited) 31 January 2026 £’000 (Unaudited) 31 January 2025 £’000 (Audited) 31 July 2025 £’000
Non-current assets
Investments held at fair value through profit and loss 363,520 311,794 375,583
Current assets
Unrealised derivative assets 4,746 2,711 10,912
Trade and other receivables 3,310 195 189
Cash and cash equivalents 17,196 18,256 17,429
Cash collateral receivable from brokers 23,949 25,054 16,783
49,201 46,216 45,313
Creditors – amounts falling due within one year
Unrealised derivative liabilities (11,357) (7,691) (4,621)
Trade and other payables (454) (528) (2,451)
Cash collateral payable to brokers - - (587)
Bank overdrafts (1,967) - (109)
(13,778) (8,219) (7,768)
Net current assets 35,423 37,997 37,545
Net assets 398,943 349,791 413,128
Equity attributable to equity holders
Ordinary Share capital 10,132 10,132 10,132
Share premium 25,888 25,888 25,888
Special reserves 55,933 80,596 64,138
Capital reserves 308,291 233,507 313,579
Retained earnings (1,301) (332) (609)
Total equity Shareholders’ funds 398,943 349,791 413,128
Net asset value per Ordinary Share – basic and diluted (pence) 1,049.17 879.41 1,077.29
Number of shares in issue excluding treasury 3 38,024,587 39,775,645 38,348,979
The notes on pages 17 to 21 form part of these financial
statements.
Condensed Statement of Cash Flows
For the six months ended 31 January 2026
Six months to 31 January 2026 (Unaudited) £’000 Six months to 31 January 2025 (Unaudited) £’000 Year ended 31 July 2025 (Audited) £’000
Cash flow from operating activities
Return on operating activities before tax (5,910) 21,610 101,468
Finance costs 1,744 1,678 3,104
Losses/(gains) on investments held at fair value through profit or loss 2,722 (22,576) (105,518)
Decrease/(increase) in receivables 61 (13) (7)
(Decrease)/increase in payables (1,956) (21) 118
Exchange losses/(gains) on currency balances 859 (937) 551
Tax (70) (46) (109)
Net cash used in operating activities (2,550) (305) (393)
Cash flow from investing activities
Purchase of investments (77,751) (9,813) (51,683)
Sales proceeds 87,991 31,366 80,476
Derivative instrument cash flows 1,069 (3,617) 5,882
Net cash inflow from investing activities 11,309 17,936 34,675
Cash flow from financing activities
Ordinary shares bought back and held in treasury (2,893) (3,052) (12,192)
Equity dividends paid (5,324) (2,807) (8,292)
Interest paid (1,774) (1,640) (3,114)
Net cash used in financing activities (9,991) (7,499) (23,598)
Net (decrease)/increase in cash and cash equivalents (1,232) 10,132 10,684
Exchange (losses)/gains on currency balances (859) 937 (551)
Cash and cash equivalents at the beginning of the period 17,320 7,187 7,187
Cash and cash equivalents at the end of the period 15,229 18,256 17,320
The notes on pages 17 to 21 form part of these financial
statements.
Notes to the Condensed Financial Statements
1. Significant accounting policies
Basis of preparation
The condensed financial statements of the Company have been prepared in
accordance with international accounting standards, International Accounting
Standard 34 “Interim Financial Reporting”, in conformity with the
requirements of the Companies Act 2006.
In the current period, the Company has applied amendments to IFRS.
These include annual improvements to IFRS, changes in standards,
legislative and regulatory amendments, changes in disclosure and presentation
requirements. The adoption of these has not had any
material impact on these financial statements and the accounting policies used
by the Company followed in these half-year financial statements are consistent
with the most recent Annual Report for the year ended 31 July 2025.
Going concern
The financial statements have been prepared on a going concern basis and on
the basis that approval as an investment trust company will continue to be
met.
The Directors have made an assessment of the Company’s ability to continue
as a going concern and are satisfied that the Company has adequate resources
to continue in business for the foreseeable future, being a period of at least
12 months from the date these financial statements were approved.
In making the assessment, the Directors have considered the likely
impacts of international and economic uncertainties on the Company, operations
and the investment portfolio. These include, but are not
limited to, the war in Ukraine, political and economic instability in the UK,
supply shortages and inflationary pressures.
The Directors noted that the cash balance exceeds any short-term liabilities,
the Company holds a portfolio of liquid listed investments and is able to meet
the obligations of the Company as they fall due. The
current cash enables the Company to meet any funding requirements and finance
future additional investments. The Company is a closed
end fund, where assets are not required to be liquidated to meet day to day
redemptions.
The Directors have completed stress tests assessing the impact of changes in
market value and income with associated cash flows. In
making this assessment, they have considered severe but plausible downside
scenarios. These tests apply equally to any set of
circumstances in which asset value and income are significantly impaired.
The conclusion was that in a plausible downside scenario the
Company could continue to meet its liabilities. Whilst
the economic future is uncertain, and the Directors believe that it is
possible the Company could experience further reductions in income and/or
market value, and changes in expenses, the opinion of the Directors is that
this should not be to a level which would threaten the Company’s ability to
continue as a going concern.
The Directors also regularly assess the resilience of key third party service
providers, most notably the Investment Manager and Fund Administrator.
The Directors do not have any concerns about the financial
viability of the Company’s third party service providers.
Furthermore, the Directors are not aware of any material uncertainties that
may cast significant doubt upon the Company’s ability to continue as a going
concern, having taken into account the liquidity of the Company’s investment
portfolio and the Company’s financial position in respect of its cash flows,
borrowing facilities and investment commitments (of which there are none of
significance). Therefore, the financial statements have
been prepared on the going concern basis.
Comparative information
The financial information contained in this Half-Yearly Report does not
constitute statutory accounts as defined by the Companies Act 2006.
The financial information for the periods ended 31 January 2026
and 31 January 2025 have not been audited or reviewed by the Company’s
Auditors.
The comparative figures for the year ended 31 July 2025 are an extract from
the latest published audited statements and do not constitute the Company’s
statutory accounts for that financial year. Those
accounts have been reported on by the Company’s Auditor and delivered to the
Registrar of Companies. The report of the Auditor was
unqualified, did not include a reference to any matters to which the Auditor
drew attention by way of emphasis without qualifying their report, and did not
contain a statement under section 498 (2) or (3) of the Companies Act 2006.
1. Return per Ordinary Share
Returns per Ordinary Share are based on the weighted average number of Shares
in issue during the period. Normal and diluted return
per Share are the same as there are no dilutive elements of share capital.
Six months to 31 January 2026 (unaudited) Six months to 31 January 2025 (unaudited) Year ended 31 July 2025 (audited)
Net return £’000 Per Share pence Net return £’000 Per Share Pence Net Return £’000 Per Share Pence
Return on ordinary activities after tax
Revenue (692) (1.82) (332) (0.83) (609) (1.54)
Capital (5,288) (13.89) 21,896 54.60 101,968 257.29
Total return on ordinary activities (5,980) (15.71) 21,564 53.77 101,359 255.75
Weighted average number of Ordinary Shares 38,073,899 40,104,163 39,632,194
.
1. Share capital
Six months to 31 January 2026 (unaudited) Six months to 31 January 2025 (unaudited) Year ended 31 July 2025 (audited)
25p Ordinary Shares Number £’000 Number £’000 Number £’000
Opening Ordinary Shares in issue 40,528,238 10,132 40,528,238 10,132 40,528,238 10,132
Shares issued - - - - - -
Closing Ordinary Shares in issue 40,528,238 10,132 40,528,238 10,132 40,528,238 10,132
Treasury shares:
Balance at beginning of the period/year 2,179,259 335,220 335,220
Buyback of Ordinary shares into treasury 324,392 417,373 1,844,039
Balance at end of period/year 2,503,651 752,593 2,179,259
Total Ordinary Share capital excluding treasury shares 38,024,587 39,775,645 38,348,979
The Company’s Share capital comprises Ordinary Shares of 25p each with one
vote per Share.
No shares were issued during the period (six months to 31 January 2025: nil;
year ended 31 July 2025: nil).
During the period 324,392 Ordinary Shares were bought back
and placed in treasury (six months to 31 January 2025: 417,373; year ended 31
July 2025: 1,844,039).
1. Dividends per Ordinary Share
The Board has declared an interim dividend of 20p per Ordinary Share (2025:
interim dividend of 7p per Ordinary Share and special dividend of 7p per
Ordinary Share) which will be paid on 8 May 2026 to Shareholders registered at
the close of business on 10 April 2026 (ex-dividend 9 April 2026).
This dividend has not been included as a liability in these financial
statements.
1. Net asset value per Ordinary Share
Net asset value per Ordinary Share is based on net assets of £398,943,000 (31
January 2025: £349,791,000; 31 July 2025: £413,128,000) at the period end
and 38,024,587 (31 January 2025: 39,775,645; 31 July 2025: 38,348,979) being
the number of Ordinary Shares excluding Treasury Shares in issue at the period
end.
1. Fair value hierarchy
The Company measures fair values using the following hierarchy that reflects
the significance of the inputs used in making the measurements.
The fair value is the amount at which the asset could be sold in an ordinary
transaction between market participants, at the measurement date, other than a
forced or liquidation sale.
The Company measures fair values using the following hierarchy that reflects
the significance of the inputs used in making the measurements.
Categorisation within the hierarchy has been determined on the basis of
the lowest level input that is significant to the fair value measurement of
the relevant asset as follows:
* Level 1 – valued using quoted prices, unadjusted in active
markets for identical assets and liabilities.
* Level 2 – valued by reference to valuation techniques using
observable inputs for the asset or liability other than quoted prices included
in Level 1.
* Level 3 – valued by reference to valuation techniques using
inputs that are not based on observable market data for the asset or
liability.
The tables below set out fair value measurement of financial instruments, by
the level in the fair value hierarchy into which the fair value measurement is
categorised.
Financial assets/liabilities at fair value through profit or loss at 31
January 2026
Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Investments 363,520 - - 363,520
Unrealised derivative assets - 4,746 - 4,746
Unrealised derivative liability - (11,357) - (11,357)
Total 363,520 (6,611) - 356,909
Financial assets/liabilities at fair value through profit or loss at 31
January 2025
Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Investments 311,794 - - 311,794
Unrealised derivative assets - 2,711 - 2,711
Unrealised derivative liability - (7,691) - (7,691)
Total 311,794 (4,980) - 306,814
Financial assets/liabilities at fair value through profit or loss at 31 July
2025
Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
Investments 375,583 - - 375,583
Unrealised derivative assets - 10,912 - 10,912
Unrealised derivative liability - (4,621) - (4,621)
Total 375,583 6,291 - 381,874
1. Transactions with the Manager and related parties
M&L Capital Management Limited (“MLCM”), a company controlled by Mark
Sheppard, acts as Manager to the Company. Mark Sheppard
is also a director of M&M Investment Company plc (“MMIC”) which is the
controlling Shareholder of the Company.
During the six months to 31 January 2026, MMIC (including connected parties)
purchased no Ordinary shares. As at 31 January 2026,
MMIC (including connected parties) was interested in a total of 23,874,710
Ordinary Shares of 25 pence each in the Company, representing 62.79% of the
voting share capital.
Total fees charged by the Manager for the six months to 31 January 2026 were
£1,498,000 (six months to 31 January 2025: £1,256,000; year ended 31 July
2025: £2,447,000), of which £242,000 was outstanding as at 31 January 2026
(31 January 2025: £213,000; 31 July 2025: £251,000).
The fees payable to Directors are set out in the 2025 Annual Report.
There were no other related party transactions in the period.
1. Post Statement of Financial Position event
There were no other significant events since the end of the reporting period.
1. Glossary
Reference should be made to the Glossary in our Annual Report for the year
ended 31 July 2025 (pages 91 to 93) for a definition of key terms and
Alternative Performance Measures (such as NAV, NAV per Share and Total
Return).
INVESTMENT OBJECTIVE
The investment objective of the Company is to achieve capital appreciation.
INVESTMENT POLICY
Asset allocation
The Company’s investment objective is sought to be achieved through a policy
of actively investing in a diversified portfolio, comprising any of global
equities and/or fixed interest securities and/or derivatives.
The Company may invest in derivatives, money market instruments, currency
instruments, contracts for differences (“CFDs”), futures, forwards and
options for the purposes of (i) holding investments and (ii) hedging positions
against movements in, for example, equity markets, currencies and interest
rates.
The Company seeks investment exposure to companies whose shares are listed,
quoted or admitted to trading. However, it may invest up to 10% of gross
assets (at the time of investment) in the equities and/or fixed interest
securities of companies whose shares are not listed, quoted or admitted to
trading.
Risk diversification
The Company intends to maintain a diversified portfolio and it is expected
that the portfolio will have between approximately 20 to 100 holdings.
No single holding will represent more than 20% of gross assets
at the time of investment. In addition, the Company’s
five largest holdings (by value) will not exceed (at the time of investment)
more than 75% of gross assets.
Although there are no restrictions on the constituents of the Company’s
portfolio by geography, industry sector or asset class, it is intended that
the Company will hold investments across a number of geographies and industry
sectors. During periods in which changes in economic,
political or market conditions or other factors so warrant, the Manager may
reduce the Company’s exposure to one or more asset classes and increase the
Company’s position in cash and/or money market instruments.
The Company will not invest more than 15% of its total assets in other listed
closed-ended investment funds. However, the Company may invest up to 50% of
gross assets (at the time of investment) in an investment company subsidiary,
subject always to the other restrictions set out in this investment policy and
the Listing Rules.
Gearing
The Company may borrow to gear the Company’s returns when the Manager
believes it is in Shareholders’ interests to do so.
The Company’s Articles of Association (“Articles”) restrict the level of
borrowings that the Company may incur up to a sum equal to two times the net
asset value of the Company as shown by the then latest audited balance sheet
of the Company.
The effect of gearing may be achieved without borrowing by investing in a
range of different types of investments including derivatives.
Save with the approval of Shareholders, the Company will not enter into
any investments which have the effect of increasing the Company’s net
gearing beyond the limit on borrowings stated in the Articles.
General
In addition to the above, the Company will observe the investment restrictions
imposed from time to time by the Listing Rules which are applicable to
investment companies with shares listed on the Official List of the Financial
Conduct Authority (“FCA”).
No material change will be made to the investment policy without the approval
of Shareholders by ordinary resolution.
In the event of any breach of the investment restrictions applicable to the
Company, Shareholders will be informed of the remedial actions to be taken by
the Board and the Manager by an announcement issued through a regulatory
information service approved by the FCA.
Investment Strategy and Style
The fund’s portfolio is constructed with flexibility but is primarily
focused on stocks that exhibit the attributes of growth.
Target Benchmark
Under UKLR 11 for closed-ended investment funds, there’s no requirement for
the Company to adopt a performance benchmark.
Investments for the portfolio are not selected from constituents of any single
index and the Company does not use any individual benchmark to assess
performance.
As stated in our last Annual Report, we are tired of being expensively charged
by benchmark providers so we have cancelled all services received from our
previous benchmark providers.
There are a huge number of digital financial data providers that allow
shareholders to assess the performance of the Company on a Share Price and/or
Net asset value per share basis against whichever benchmark the shareholder
thinks is the best and many allow this for free.
Providing charts and data against benchmarks heralds back to the digital dark
ages when such information was not ubiquitously free.
Environmental, Social, Community and Governance
The Company considers that it does not fall within the scope of the Modern
Slavery Act 2015 and it is not, therefore, obliged to make a slavery and human
trafficking statement. In any event, the Company
considers its supply chains to be of low risk as its suppliers are typically
professional advisers.
In its oversight of the Manager and the Company’s other service providers,
the Board seeks assurances that they have regard to the benefits of diversity
and promote these within their respective organisations.
The Company has given discretionary voting powers to the Manager.
The Manager votes against resolutions they consider may damage
Shareholders’ rights or economic interests and report their actions to the
Board. The Company believes it is in the Shareholders’
interests to consider environmental, social, community and governance factors
when selecting and retaining investments and has asked the Manager to take
these issues into account. The Manager does not exclude
companies from their investment universe purely on the grounds of these
factors but adopts a positive approach towards companies which promote these
factors. The portfolio’s Sustainalytics Environmental
Percentile was 81.1% as at 31 January 2026.
The Company notes the Task Force on Climate-related Financial Disclosures
(‘TCFD’) reporting recommendations. However, as a
listed investment company, the Company is not subject to the Listing Rule
requirement to report against the framework. The Company
fully recognises the impact climate change has on the environment and society,
and the Manager continues to work with the investee companies to raise
awareness on climate change risks, carbon emission and energy efficiency.
SHAREHOLDER INFORMATION
Investing in the Company
The Shares of the Company are listed on the Official List of the FCA and
traded on the London Stock Exchange. Private investors can buy or sell Shares
by placing an order either directly with a stockbroker or through an
independent financial adviser.
Electronic communications from the Company
Shareholders now have the opportunity to be notified by email when the
Company’s Annual Report, Half-Yearly Report and other formal communications
are available on the Company’s website, instead of receiving printed copies
by post. This reduces the cost to the Company as well as
having an environmental benefit in the reduction of paper, printing, energy
and water usage. If you have not already elected to
receive electronic communications from the Company and now wish to do so,
visit www.signalshares.com. All you need to register is your
investor code, which can be found on your Share certificate or your dividend
confirmation statement.
Alternatively, you can contact MUFG Corporate Markets’ Customer Support
Centre which is available to answer any queries you have in relation to your
shareholding: By phone: 0371 664 0300 (from overseas call +44 (0) 371 664
0300). Calls are charged at the standard geographic rate
and will vary by provider. Calls outside the United
Kingdom will be charged at the applicable international rate.
Lines are open between 09:00 - 17:30, Monday to Friday excluding public
holidays in England and Wales.
By email – shareholderenquiries@cm.mpms.mufg.com
By post – MUFG Corporate Markets - Share Dealing, Central Square, 29
Wellington Street, Leeds, LS1 4DL.
Frequency of NAV publication
The Company’s NAV is released to the London Stock Exchange on a weekly
basis.
Sources of further information
Copies of the Company’s Annual and Half-Yearly Reports, factsheets and
further information on the Company can be obtained from its website:
www.mlcapman.com/manchester-london-investment-trust-plc
.
Key dates 2026
Half-Yearly results announced March
Interim dividend payment May
Company’s year end 31 July
Annual results announced September
Annual General Meeting November
Expected final dividend payment November
Company’s half-year end 31 January
CORPORATE INFORMATION
Directors and Advisors
Directors Auditor
Daniel Wright (Chairman) Deloitte 110 Queen Street Glasgow G1 3BX
Brett Miller
Sir James Waterlow
Daren Morris
Manager and Alternative Investment Fund Manager Administrator
M&L Capital Management Limited 12a Princes Gate Mews London SW7 2PS ir@mlcapman.com www.mlcapman.com Waystone Administration Solutions (UK) Limited Broadwalk House Southernhay West Exeter EX1 1TS
Company Secretary Registrar
MUFG Corporate Governance Limited 19th Floor 51 Lime Street London EC3M 7DQ MUFG Corporate Markets (UK) Limited 10th Floor Central Square 29 Wellington Street Leeds LS1 4DL Tel: 0371 664 0300 Email: shareholderenquiries@cm.mpms.mufg.com
Depositary Bank
Indos Financial Limited The Scalpel 18th Floor 52 Lime Street London EC3M 7AF National Westminster Bank plc 11 Spring Gardens Manchester M60 2DB
Company Details
Registered office Country of incorporation
12a Princes Gate Mews London SW7 2PS Registered in England and Wales Company Number: 01009550
Company website
www.mlcapman.com/manchester-london-investment-trust-plc
LEI: 213800HMBZXULR2EEO10
Name of authorised official of issuer responsible for making notification
MUFG Corporate Governance Limited, Company Secretary
Tel: 0333 300 1950
18 March 2026
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