REG - Murray Inc Trust PLC - Half-year Financial Report
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RNS Number : 5933U Murray Income Trust PLC 27 February 2026
Murray Income Trust PLC
Half Yearly Report 31 December 2025
An investment trust founded in 1923 aiming for high and growing income with
capital growth
Investment Objective
The Company aims for a high and growing income combined with capital growth
through investment in a portfolio principally of UK equities.
Benchmark
The Company's benchmark is the FTSE All-Share Index
Performance Highlights
Net asset value total return(ABC) Share price total return(AB)
Six months ended 31 December 2025 Six months ended 31 December 2025
+8.1% +9.4%
Year ended 30 June 2025 +2.7% Year ended 30 June 2025 +4.3%
Benchmark total return(AD) Ongoing charges(B)
Six months ended 31 December 2025 Forecast year to 30 June 2026
+13.7% 0.48%
Year ended 30 June 2025 +11.2% Year ended 30 June 2025 0.48%
Earnings per share (revenue) Dividend per Ordinary share
Six months ended 31 December 2025 Year ended 30 June 2025
13.9p 40.00p
Six months ended 31 December 2024 15.2p Year ended 30 June 2024 38.50p
Discount to net asset value(BC) Dividend yield(B)
As at 31 December 2025 As at 31 December 2025
8.7% 4.4%
As at 30 June 2025 9.6% As at 30 June 2025 4.7%
(A) Total return (see definition in Alternative Performance Measures).
(B) Considered to be an Alternative Performance Measure.
(C) With debt at fair value.
(D) The Company's benchmark is the FTSE All-Share Index.
Net asset value per share (BC) Dividends per share Mid-Market price per share
At 30 June (*31 December) - pence Year ended 30 June - pence At 30 June (*31 December) - pence
2021 935.7 34.50 871.0
2022 871.0 36.00 832.0
2023 911.7 37.50 837.0
2024 957.9 38.50 857.0
2025 944.8 40.00 854.0
2025* 1000.0 913.0
Financial Calendar, Dividends and Investment Portfolio by Sector
Financial Calendar
Payment dates of quarterly dividends March, June, September, December
Financial year end 30 June
Expected announcement date of annual results September
Annual General Meeting 29 October 2026
Dividends
Rate Ex-dividend date Record date Payment date
First interim 9.50p 13 Nov 2025 14 Nov 2025 11 Dec 2025
Second interim 9.50p 12 Feb 2026 13 Feb 2026 12 Mar 2026
Chair's Statement
Highlights
· After a detailed strategic review, the Board has appointed Artemis to be
the new manager of the Company from early March 2026.
· The net asset value ("NAV") total return for the six months ended 31
December 2025 (the "Period") was 8.1% (with debt at fair value), against a
benchmark return of 13.7%.
· The share price increased to 913.0 pence from 854.0p over the Period,
with a total return of 9.4%, while the discount decreased from 9.6% to 8.7%.
· The total dividend, for the year ended 30 June 2025, increased by 3.9% to
40.0p per share, the 52(nd) consecutive year of dividend growth. The total
dividend for the year to 30 June 2026 is expected to exceed 40.0p per share.
· Share buybacks amounted to 2.4 million shares, equivalent to 2.4% of the
outstanding share capital (excluding treasury shares).
Strategic Review
The Board of Murray Income Trust undertook a strategic review last year after
a sustained period of significant underperformance. The Board was pleased to
announce, towards the end of the year, and as a result of that review, the
appointment of Artemis Fund Managers to manage the Murray Income portfolio.
Artemis will take control of the management of the portfolio from early March
2026.
The Company's investment objective - to aim for a high and growing income
combined with capital growth through investment in a portfolio principally of
UK equities - is not changing as a result of this appointment. There are also
no changes to the Company's benchmark (FTSE All-Share Index), or to the
gearing and dividend policies, or the approach to share buybacks.
The Company has a 52-year unbroken record of progressive dividend growth and
intends to maintain its AIC Dividend Hero status under Artemis' management.
The Company's future dividends will be supported by the cashflows of the
portfolio companies selected by Artemis.
The portfolio will be managed by Artemis' market-leading UK equity income team
of Adrian Frost, Andy Marsh and Nick Shenton. The Board believes Artemis'
disciplined, long-term approach to value creation and their focus on
compounding income and capital are a strong fit for Murray Income Trust's
objectives and is confident that this appointment will position the Company to
deliver sustainable value for shareholders in the years ahead.
The Company will benefit from a highly competitive fee structure, including
management fees that will be payable on the lower of net assets or market
capitalisation, increasing the alignment between the Investment Manager and
the Company's shareholders. The Company expects that its pro forma Ongoing
Charges Ratio ("OCR") will continue to be below 0.50% per annum.
A nine-month investment management fee waiver has been agreed with Artemis
once they take on the portfolio.
Investment Performance
During the six months ended 31 December 2025, the Company's NAV (with debt at
fair value) total return was 8.1% while the share price total return was 9.4%
and the FTSE All-Share Index total return was 13.7%. Further detail on the
investment performance of the portfolio can be found in the Investment
Manager's Report.
Dividend
The dividend for the year ended 30 June 2025 was increased by 3.9% to 40.0p
per share, the 52(nd) year of consecutive dividend growth. First and second
interim dividends of 9.5p per share for the year to 30 June 2026, with pay
dates of 11 December 2025 and 12 March 2026 respectively, have been announced.
The third and fourth interim dividends have yet to be declared but are
expected to result in total dividends for the year ended 30 June 2026
exceeding 40.0p per share.
As noted at this time last year, the Board is aware that listed stocks, in
which the Company invests, are currently making greater use of share buybacks.
In the main, this is in addition to paying dividends but, in several cases,
they are being used as a substitute for dividends. According to Computershare,
UK dividends were £88bn and share buybacks were £64bn during calendar year
2025. Whilst this might put pressure on dividend growth in the short term, it
is also a sign that UK companies believe that there is good value to be had in
their own shares. This bodes well for future market returns as, indeed, was
the case during 2025 when the UK FTSE All-Share increased by 24.0%. Such share
buybacks also enhance the earnings per share of the underlying companies,
potentially giving them more scope for dividend increases in future years.
Discount and share buybacks
During the Period, the Company bought back 2.4% of its outstanding shares
(excluding treasury shares) as at 1 July 2025 and the discount to NAV fell
from 9.6% to 8.7%.
The Company has continued to pursue share buybacks in order to take advantage
of the discount to NAV at which the Company's shares trade. Share buybacks
help to stabilise and reduce the volatility of the Company's share price while
also enhancing the underlying NAV for continuing shareholders.
Board and Board Succession
My thanks to the Board for their hard work, commitment and valued input during
the process of the strategic review. Such actions as a strategic review are
not undertaken lightly and involve a significant amount of research and due
diligence. My thanks, also, to our corporate advisers, Investec, for their
input and detailed analysis during this process.
This will be my final year as Chair of the Company. After serving nine years
as a Director, I will retire from the Board at the AGM in November. The
process to determine the next Chair is currently underway.
At this point, I would also like to express my appreciation for Charles Luke
and his team at Aberdeen. Charlie has managed the Company portfolio for nearly
20 years and has done so with the utmost dedication and discipline, always
willing to engage with the Board and shareholders about his investment
philosophy and portfolio activity. I wish him and the team well in the future.
Artemis Investment Team
The Artemis team, which will be managing the Company's investment portfolio
from early March 2026, consists of Adrian Frost, Andy Marsh and Nick Shenton
who, between them, have 46 years of UK equity income experience with Artemis.
They will be assisted by Investment Director John Passmore and Portfolio
Analyst Jamie Lindsay.
Artemis Investment Process
The Artemis investment process targets companies that can consistently
generate durable and increasing levels of cash flow over the long term. The
process is not driven by style bias nor by sector classification nor benchmark
weighting. The team builds a diversified portfolio of 45 - 50 stocks based on
where the market is deemed to be underestimating or undervaluing such
intrinsic cash flows. Over the long-term, thinking like owners of the business
builds a greater understanding of the drivers of a company's prospects and
allows for closer engagement with management teams over how best capital
should be allocated between re-investment and dividend returns to
shareholders. Artemis has a total return mindset and the portfolio is run on a
truly active basis.
Overview - The market paradox
Once again, geo-political events have dominated the news cycle during the
Period. Stock markets continue to shrug off these issues and concentrate on
more mundane, yet important, matters such as corporate earnings growth,
interest rate policy and trends in inflation. This situation remains one of
the great market paradoxes of the past few years. International tensions have
been rising, especially since the invasion of Ukraine in 2022, but so have
equity markets, although not without increased volatility. Of course,
geo-political events have had some impact, such as the continuing strength of
companies in the defence sector and the recent surge in the gold price, but
the UK market has been concentrating on events of a more domestic nature such
as fiscal policy, attempts to make the London Stock Exchange more attractive
for companies to list there and the relative undervaluation of UK equities
themselves - the latter as evidenced by the increasing amount of takeover
activity in the UK market, and the strong performance of UK equities over the
past 6 and 12 months. This strong performance of UK equities in the past year
is another example of the market paradox as there has been a continuing
outflow from UK equity markets over the past year. Despite this, it is
heartening to note that UK equities produced a very healthy total return of
+24% significantly eclipsing US equities (+8.6%, total return, in GBP terms)
during the calendar year 2025 despite all the attention given to the so-called
'magnificent 7' stocks in the USA. It was not until November, however, that
there was a modest positive inflow into UK active equities overall (£52m
according to the Investment Association) as investors started to reassess the
relative attractions of UK equities and perhaps breathed a sigh of relief
that, at long last, the speculation over the outcome of the UK Budget was
over.
The question, as ever, is whether this momentum in UK equities can be
maintained. Of course geo-politics will dominate the headlines again and
markets will remain volatile but I would venture to suggest that what will be
more important for UK equities during 2026 will be the trends in domestic
inflation and interest rates. Although inflation remained well above target in
2025, the Bank of England ("BoE") cut interest rates four times to 3.75%. The
consensus view, echoed by the BoE itself, is that the rate of inflation will
fall to closer to its target of 2% in the next few months, despite inflation
still remaining above 3% at the end of 2025. The trend towards lower inflation
in 2026 will be helped by lower petrol prices and such things as the freeze on
rail fares and prescription charges. If this scenario comes to pass, then
there is scope for further cuts to UK interest rates, possibly by another
0.50%, or even 0.75%. Falling rates of inflation and cuts to interest rates
are generally good news for markets despite the multitude of exogenous
headwinds, although it is unlikely that the stellar returns of 2025 will be
repeated. The UK market climbed a wall of worry during 2025 with particular
concern over the level of government indebtedness. What is much less talked
about, however, is the fact that UK real wages have been rising. The latest
figures from the Office of National Statistics showed annual wage growth of
4.5% in the previous twelve months, well above the rate of inflation. Consumer
finances are also actually quite robust. The Household Savings Ratio currently
stands at over 9% against an average of about 6.5% in the pre-Covid years. One
reason for this has been continuing concern about the health of the UK economy
but if that sentiment improves on the back of both lower inflation rates and
interest rates, there could be a substantial boost to UK consumer expenditure
if these household savings are unlocked. Research from Barclays Bank suggests
that savers in the UK own about £430bn of cash assets which could be suitable
for spending or investing, rather than saving.
I look forward to the Artemis team taking over responsibility for the
portfolio. Their approach is very much bottom-up stock-picking and, whether
faced with endogenous UK economic and market dynamics or exogenous
geo-political shocks, I am confident that their approach will produce
successful long-term total returns within a well-balanced UK equity income
portfolio.
Peter Tait
Chair
26 February 2026
Investment Manager's Report
The Company generated a positive Net Asset Value ("NAV") per share (with debt
at fair value) total return of +8.1% for the six months ended 31 December 2025
(the "Period"). This was behind the Company's Benchmark (the FTSE All-Share
Index) which exhibited a strong total return of +13.7%. The share price total
return was +9.4%, reflecting the discount narrowing from 9.6% to 8.7% (based
on NAV with debt at fair value). The market continued to be bifurcated between
the performance of the Value and Quality styles which, as one would expect
given the portfolio's strong bias towards Quality, negatively impacted
relative performance despite attractive absolute returns.
Performance at a sector level was mixed. The Banks and Mining sectors
performed particularly strongly with both sectors increasing by over 35% while
the Technology, Real Estate and Beverages sectors struggled. Continuing the
medium-term trend, the more domestically focused FTSE 250 Index underperformed
the FTSE 100 Index over the Period.
The portfolio has been constructed to deliver long term structural growth
while providing capital preservation in challenging markets. Without the
headwind of the now unusually elongated benign environment for Value investing
we have every reason to believe that a portfolio such as this can deliver
significant long-term outperformance and maintain an exceptional track record
of dividend growth.
In the last Annual Report (for the year ended 30 June 2025), we mentioned a
couple of companies, Close Brothers and Rentokil, that had held back medium
term performance but where we remained confident that they were significantly
undervalued. It is pleasing to have witnessed a strong share price recovery
for both companies during the Period. The Rentokil share price increased by
28.2% as signs of a turnaround in the company's North American operations
started to become visible. For Close Brothers, the relatively benign motor
finance Supreme Court judgment helped the share price to increase by over 40%,
albeit there remains some uncertainty regarding the outcome of the FCA's
redress scheme.
The top five winners and losers in the portfolio, relative to the Benchmark,
over the Period are set out below (with figures in brackets denoting the total
return of each individual stock):
Top five winners in the portfolio:
3i (-19.9%) - not owning 3i benefited relative performance as its trading
statement in November highlighted that softening trading conditions in France
had impacted the performance of Action, the French retailer in which 3i holds
a significant stake, resulting in a sharp fall in 3i's share price.
Bae Systems (-8.5%) - Bae Systems is not held in the portfolio and so relative
performance benefited from weakness in the share price which reflected the
rising prospect of a Russia-Ukraine peace deal.
DBS (+30.2%) - the share price performed strongly following third quarter
results that comfortably beat expectations driven by deposit growth and wealth
management inflows that supported profitability through increased fee income
and net interest income.
Nordea (+29.4%) - robust third quarter results, which reflected resilient net
interest income, lower cost inflation and commission revenue tailwinds, were
welcomed by investors helping the shares to perform strongly over the Period.
Accton Technology (+36.0%) - the shares of the Taiwan-listed internet network
company performed strongly following robust results and excitement around the
prospects for the business as a part of the Artificial Intelligence ("AI")
value chain.
Top five detractors in the portfolio:
Convatec (-15.3%) - despite strong results over the Period, the share price
was affected by the sad passing of the excellent CEO, Karim Bitar, as well as
a proposal for competitive bidding for some of its products in the North
American market which has the potential to act as a marginal headwind for
profits from 2028.
HSBC (+33.5%) - the shares performed strongly over the Period helped by fees
from wealth management, deposit growth benefiting net interest income and
lower credit costs given the current benign environment. HSBC is one of the
larger holdings in the portfolio but given the even larger Benchmark weight
the strong share price performance resulted in a negative relative performance
contribution. Relx (-23.1%) - although Relx delivered strong trading in line
with expectations, the share price performed poorly over the Period given
market concerns about the potential negative impact of AI on the company -
concerns that we regard as unfounded.
Sage (-13.4%) - unease around the threat from AI in the form of greater
competition and the impact of AI on employment led the share price to decline.
We believe these concerns are more than factored into the valuation.
Barclays (+42.3%) - given the focus on higher quality banks, we do not hold
Barclays in the portfolio. During the period the shares performed
exceptionally well helped particularly by elevated cyclical investment bank
earnings.
Purchases and Disposals
The trades during the Period were mostly focused on reducing companies with
leverage, cyclicality, the beneficiaries of AI-related spending, together with
profit-taking in the banks holdings where valuations now look full. Having
increased by over 300% since its purchase a few years ago, the holding in
Accton Technology was sold as we believed the valuation now reflected the
growth potential of the company. We also sold the holding in Genus which had
performed very strongly following the US Food and Drug Administration's
approval for the company's PRRS-virus resistant pig. To our minds, the
benefit of this approval had been mostly reflected in the share price while
risk remains around successful commercialisation. The holding in Smurfit
Westrock was also sold given greater uncertainty around the acquisition of
Westrock in terms of visibility of the integration and the relatively high
balance sheet leverage. The small holding in Valterra, spun off from Anglo
American in the Spring, was exited. Finally, the holding in ICG was sold
given the full valuation and highly macro and market sensitive nature of the
shares which would in all likelihood underperform in a weaker market.
Other than inheriting a small position in Magnum Ice Cream from Unilever, no
new holdings were bought for the portfolio during the Period given our comfort
with the existing holdings' portfolio fit, longer-term earnings and dividend
growth potential.
Other transactions related to existing holdings where changes were made to
take advantage of attractive valuation opportunities or to reduce holdings
where strong share price performances allowed the recycling of capital.
We took advantage of share price weakness to add to Convatec, Gamma
Communications, Haleon, Reckitt Benckiser and Experian. Conversely, there were
reductions to holdings including ASML, Microsoft, Howden Joinery, SSE, DBS,
HSBC and Nordea. Finally, we continued our measured option-writing programme
which is based on our fundamental analysis of holdings in the portfolio. The
net result of these trades was an increase cash to help fund buybacks during
the Period as well as to run a higher-than-normal cash position. This
reflects our concerns on market levels explained in the last Annual Report -
to quote Sir Alex Ferguson 'attack wins games, but defence wins titles'.
The portfolio at 31 December 2025 represents a diversified selection of
high-quality companies which we believe to be 'Leaders in their field' with
attractive valuations and strong ESG characteristics (during the Period we
were awarded the highest Morningstar Sustainability Rating). There were 49
holdings in the portfolio including 10 overseas-listed companies with around
20% of the portfolio invested in mid-cap companies. In aggregate, the
portfolio consists of significantly higher quality companies than the
Benchmark but without a material valuation premium with the weighted average
P/E multiple c. 16x compared to c15x for the Benchmark.
Charles Luke
Senior Investment Director
abrdn Investments Limited
26 February 2026
Ten Largest Investments
As at 31 December 2025
AstraZeneca National Grid
AstraZeneca researches, develops, produces and markets pharmaceutical National Grid is an investor-owned utility company which owns and operates the
products. With a significant focus on oncology and rare diseases, the company electricity and gas transmission network in Great Britain and the electricity
offers appealing growth potential over the medium term. transmission networks in the Northeastern United States. The company offers
resilient earnings and an attractive dividend yield.
Unilever RELX
Unilever is a global consumer goods company supplying food, home and personal RELX is a global provider of information and analytics for professionals and
care products. The company has a portfolio of strong brands including: Dove, businesses across a number of industries including scientific, technical,
Knorr, Axe and Persil. Over half of the company's sales are to developing and medical and law. The company offers resilient earnings combined with long term
emerging markets. structural growth opportunities.
TotalEnergies Haleon
TotalEnergies is a broad energy company that produces and markets fuels, Haleon is a high quality consumer healthcare business with strong brands such
natural gas and electricity. It is a leader in the sector's energy transition as Sensodyne, Voltaren and Centrum. The company benefits from long term
with an attractive pipeline of renewable assets derivers such as ageing populations, rising wealth in Emerging Markets and a
greater focus on health and wellness with the benefit of
limited private label competition and low levels of cyclicality.
Reckitt Benckiser Group Experian
Reckitt Benckiser is a consumer staples business refocusing on a sharpened Experian is a market leader in the provision of credit and marketing services.
portfolio of self-care, germ protection and household care products through It maintains one of the largest credit bureaus and offers specialist
strong brands (including Nurofen, Dettol and Finish) with leading market analytical solutions for credit scoring, risk management and application
positions. The company has attractive quality characteristics with high processing across a number of different markets including financial services,
margins, appealing growth prospects health, retail and government.
and scope for efficiency savings to
improve returns.
Convatec Diageo
Convatec is a medical products and technologies company based in the UK, Diageo produces, distills and markets alcoholic beverages including vodkas,
offering products and services in the areas of advanced wound care, ostomy whiskies, tequilas, gins and beer. The company should benefit from attractive
care, continence care and infusion care. long term drivers such as population and income growth, and premiumisation.
The company has a variety of very strong brands and faces very limited private
label competition.
Investment Portfolio
As at 31 December 2025
Valuation Total investments
Investment FTSE All-Share Sector Country £'000 %
AstraZeneca Pharmaceuticals and Biotechnology UK 57,473 5.8
National Grid Gas, Water and Multi-utilities UK 46,302 4.7
Unilever Personal Care Drug and Grocery Stores UK 42,119 4.2
RELX Media UK 39,886 4.0
TotalEnergies Oil, Gas and Coal France 34,934 3.5
Haleon Pharmaceuticals and Biotechnology UK 34,644 3.5
Reckitt Benckiser Group Personal Care Drug and Grocery Stores UK 33,216 3.3
Experian Industrial Support Services UK 32,913 3.3
Convatec Medical Equipment and Services UK 32,766 3.3
Diageo Beverages UK 28,929 2.9
Top ten investments 383,182 38.5
HSBC Banks UK 28,182 2.8
DBS Banks Singapore 28,129 2.8
Rentokil Initial Industrial Support Services UK 24,267 2.4
Safestore Real Estate Investment Trusts UK 23,833 2.4
Sage Group Software and Computer Services UK 23,314 2.4
Kone Industrial Engineering Finland 22,849 2.3
Anglo American Industrial Metals and Mining UK 22,778 2.3
Shell Oil, Gas and Coal UK 22,464 2.3
M&G Investment Banking and Brokerage Services UK 22,238 2.2
Inchcape Industrial Support Services UK 21,203 2.1
Top twenty investments 622,439 62.5
LondonMetric Real Estate Investment Trusts UK 20,567 2.1
Nordea Bank Banks Sweden 20,054 2.0
Dunelm Retailers UK 19,909 2.0
Rio Tinto Industrial Metals and Mining UK 19,777 2.0
SSE Electricity UK 17,950 1.8
Coca-Cola EuroPacific Partners Beverages UK 17,695 1.8
Bunzl General Industrials UK 17,287 1.7
London Stock Exchange Finance and Credit Services UK 17,099 1.7
Games Workshop Leisure Goods UK 16,238 1.6
Oxford Instruments Electronic and Electrical Equipment UK 14,835 1.5
Top thirty investments 803,850 80.7
Howden Joinery Retailers UK 14,596 1.4
Close Brothers Banks UK 14,064 1.4
Rotork Electronic and Electrical Equipment UK 13,647 1.4
Gamma Communications Telecommunications Service Providers UK 13,221 1.3
Hiscox Non-life Insurance UK 12,636 1.3
Telenor Telecommunications Service Providers Norway 12,619 1.3
Chesnara Life Insurance UK 12,044 1.2
RS Group Industrial Support Services UK 11,350 1.1
Berkeley Household Goods and Home Construction UK 11,087 1.1
Air Liquide Chemicals France 11,010 1.1
Top forty investments 930,124 93.3
Mastercard Industrial Support Services United States 10,441 1.1
L'Oréal Personal Goods France 10,387 1.0
Genuit Construction and Materials UK 10,038 1.0
Mercedes-Benz Automobiles and Parts Germany 9,496 1.0
Telecom Plus Telecommunications Service Providers UK 8,681 0.9
Moonpig Retailers UK 8,009 0.8
Microsoft Software and Computer Services United States 4,458 0.4
ASML Technology Hardware and Equipment Netherlands 2,570 0.3
Magnum Food Producers Netherlands 2,297 0.2
Total investments (49) 996,501 100.0
Interim Management Report
Principal Risks and Uncertainties
The Board regularly reviews the principal risks and uncertainties which it has
identified, together with the delegated controls it has established to manage
the risks and address the uncertainties. These are considered to be materially
unchanged as at 31 December 2025 as compared to 30 June 2025. The principal
risks and uncertainties are set out in detail on pages 21 to 25 of the
Company's Annual Report for the year ended 30 June 2025 ("Annual Report 2025")
which is available on the Company's website. The Annual Report 2025 also
contains, in note 18 to the Financial Statements, an explanation of other
risks relating to the Company's investment activities, specifically market
risk, liquidity risk and credit risk, and a note of how these risks are
managed.
Related Party Transactions
Under Generally Accepted Accounting Practice (UK Accounting Standards and
applicable law), the Company has identified the Directors as related parties.
No other related parties have been identified. There have been no related
party transactions that have had a material effect on the financial position
of the Company.
Going Concern
The factors which have an impact on the Company's status as a going concern
are set out in the Going Concern section of the Directors' Report on page 46
of the Annual Report 2025. As at 31 December 2025, there had been no material
changes to these factors.
The Directors are mindful of the principal risks and uncertainties disclosed
above and, having reviewed forecasts detailing revenue and liabilities as well
as taking account of the highly liquid nature of the investment portfolio,
they believe that the Company has adequate financial resources to continue its
operational existence for the foreseeable future. Accordingly, the Directors
believe that it is appropriate to continue to adopt the going concern basis of
accounting in preparing the Financial Statements.
Statement of Directors' Responsibilities
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 condensed set of Financial Statements has been prepared in accordance
with Financial Reporting Standard 104 (Interim Financial Reporting);
· the Half-Yearly Board Report includes a fair review of the information
required by rule 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 financial year); and
· the Half-Yearly Board Report includes a fair review of the information
required by 4.2.8R (being related party transactions that have taken place
during the first six months of the financial year and that have materially
affected the financial position of the Company during that period; and any
changes in the related party transactions described in the last Annual Report
that could do so).
The Half-Yearly Financial Report for the six months ended 31 December 2025
comprises the Half-Yearly Board Report, the Directors' Responsibility
Statement and the condensed set of Financial Statements.
For and on behalf of the Board
Peter Tait
Chair
26 February 2026
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains/(losses) on investments - 62,333 62,333 - (35,990) (35,990)
Currency (losses)/gains - (70) (70) - 265 265
Income 2 15,415 - 15,415 17,020 - 17,020
Investment management fees 4, 13 (494) (1,152) (1,646) (507) (1,184) (1,691)
Administrative expenses (964) - (964) (601) - (601)
Net return before finance costs and taxation 13,957 61,111 75,068 15,912 (36,909) (20,997)
Finance costs (367) (856) (1,223) (404) (943) (1,347)
Net return before taxation 13,590 60,255 73,845 15,508 (37,852) (22,344)
Taxation 5 (97) - (97) 233 - 233
Net return after taxation 13,493 60,255 73,748 15,741 (37,852) (22,111)
Return per Ordinary share - basic and diluted 6 13.9p 61.8p 75.7p 15.2p (36.6)p (21.4)p
The total column of this statement represents the profit and loss account of
the Company prepared in accordance with FRS 102. The 'Revenue' and 'Capital'
columns represent supplementary information prepared under guidance issued by
the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the period.
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Financial Position (unaudited)
As at As at
31 December 2025 30 June 2025
Notes £'000 £'000
Non-current assets
Investments at fair value through profit or loss 996,501 1,011,048
Current assets
Other debtors and receivables 6,540 12,106
Cash and cash equivalents 53,060 10,426
59,600 22,532
Creditors: amounts falling due within one year
Derivative financial instruments (245) -
Other payables (1,879) (4,695)
Bank loans 7 - (6,140)
(2,124) (10,835)
Net current assets 57,476 11,697
Total assets less current liabilities 1,053,977 1,022,745
Non-current liabilities
2.51% Senior Loan Notes 2027 7 (39,975) (39,969)
4.37% Senior Loan Notes 2029 7 (65,247) (66,038)
(105,222) (106,007)
Net assets 948,755 916,738
Capital and reserves
Share capital 8 29,882 29,882
Share premium account 438,213 438,213
Capital redemption reserve 4,997 4,997
Capital reserve 450,263 411,182
Revenue reserve 25,400 32,464
Total Shareholders' funds 948,755 916,738
Net asset value per Ordinary share - basic and diluted 9
Debt at fair value 1,000.0p 944.8p
Debt at par value 993.2p 936.3p
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Changes in Equity (unaudited)
Six months ended 31 December 2025
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2025 29,882 438,213 4,997 411,182 32,464 916,738
Net return after tax - - - 60,255 13,493 73,748
Buyback of Ordinary shares for treasury 8 - - - (21,174) - (21,174)
Dividends paid 3 - - - - (20,557) (20,557)
Balance at 31 December 2025 29,882 438,213 4,997 450,263 25,400 948,755
Six months ended 31 December 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2024 29,882 438,213 4,997 484,787 32,403 990,282
Net return after tax - - - (37,852) 15,741 (22,111)
Buyback of Ordinary shares for treasury 8 - - - (24,972) - (24,972)
Dividends paid 3 - - - - (20,162) (20,162)
Balance at 31 December 2024 29,882 438,213 4,997 421,963 27,982 923,037
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Cash Flows (unaudited)
Six months ended Six months ended
31 December 2025 31 December 2024
Notes £'000 £'000
Operating activities
Net return before finance costs and taxation 75,068 (20,997)
Adjustments for
Increase in accrued expenses 292 462
Overseas withholding tax 957 1,007
Decrease in dividend income receivable 1,281 1,960
Decrease in interest income receivable 2 8
Interest paid (1,182) (1,353)
(Gains)/losses on investments (62,333) 35,990
Amortisation of loan note expenses 6 8
Accretion of loan note book cost (791) (791)
Foreign exchange losses/(gains) 70 (265)
Increase in other debtors (71) (331)
Stock dividends included in investment income 1,287 -
Net cash inflow from operating activities 14,586 15,698
Investing activities
Purchases of investments (48,520) (135,487)
Sales of investments 124,620 153,366
Net cash inflow from investing activities 76,100 17,879
Financing activities
Dividends paid 3 (20,557) (20,162)
Buyback of Ordinary shares for treasury (21,285) (24,762)
Repayment of bank loans (6,303) -
Net cash outflow from financing activities (48,145) (44,924)
Increase /(decrease) in cash 42,541 (11,347)
Analysis of changes in cash during the period
Opening balance 10,426 25,148
Effect of exchange rate fluctuations on cash held 93 173
Increase/(decrease) in cash as above 42,541 (11,347)
Closing balance 53,060 13,974
Represented by:
Cash at bank and in hand 2,566 2,956
Money market funds 50,494 11,018
53,060 13,974
The accompanying notes are an integral part of the condensed financial
statements.
Notes to the Financial Statements
For the six months ended 31 December 2025
1. Accounting policies
Basis of preparation. The condensed financial statements have been prepared in
accordance with Financial Reporting Standard ("FRS") 104 (Interim Financial
Reporting) and with the Statement of Recommended Practice for 'Financial
Statements of Investment Trust Companies and Venture Capital Trusts' issued in
July 2022. They have also been prepared on a going concern basis and on the
assumption that approval as an investment trust will continue to be granted.
The condensed financial statements have been prepared using the same
accounting policies as the preceding annual financial statements.
2. Income
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 £'000
Investment income
UK dividends 8,451 10,878
Overseas dividends 2,841 3,855
Property income dividends 988 637
Stock dividends 1,287 -
13,567 15,370
Other income
Deposit interest 16 5
Money Market interest 675 387
Traded option premiums 1,133 1,246
Underwriting commission 18 -
Interest on tax reclaim 6 12
1,848 1,650
Total income 15,415 17,020
3. Dividends
Dividends paid on Ordinary shares deducted from the revenue reserve:
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 £'000
2024 fourth interim dividend - 10.00p - 10,428
2025 first interim dividend - 9.50p - 9,734
2025 fourth interim dividend - 11.50p 11,257 -
2026 first interim dividend - 9.50p 9,300 -
20,557 20,162
The first interim dividend for 2026 of 9.50p (2025 - 9.50p) was paid on 11
December 2025 to shareholders on the register on 14 November 2025. The
ex-dividend date was 13 November 2025.
A second interim dividend for 2026 of 9.50p (2025 - 9.50p) will be paid on 12
March 2026 to shareholders on the register on 13 February 2026. The
ex-dividend date is 14 February 2026.
4. Management fee and finance costs
The management fee is as reported in the 2025 Annual Report, being a tiered
fee, based on net assets and calculated as follows:
Fee rate Net
per annum assets £'million
0.35% up to 1,100
0.25% greater than 1,100
The management fee and finance costs are charged 30% to revenue and 70% to
capital.
5. Taxation
The expense for taxation reflected in the Condensed Statement of Comprehensive
Income is based on the estimated annual tax rate expected for the full
financial year. The estimated annual corporation tax rate used for the year to
30 June 2026 is the current standard rate of 25% (2025 - 25%).
During the period the Company suffered withholding tax on overseas dividend
income of £97,000 (31 December 2024 - received £233,000).
6. Return per Ordinary share - basic and diluted
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 p £'000 p
Revenue return 13,493 13.9 15,741 15.2
Capital return 60,255 61.8 (37,852) (36.6)
Total return 73,748 75.7 (22,111) (21.4)
Weighted average number of Ordinary shares in issue 97,418,083 103,306,567
7. Senior Loan Notes and bank loans
Senior Loan Notes. The Company has in issue:
(i) £40,000,000 of 10 year Senior Loan Notes at a fixed rate of 2.51%,
redeemable at par on 8 November 2027;
(ii) £60,000,000 of 15 year Senior Loan Notes at a fixed rate of 4.37%
redeemable at par on 8 May 2029.
The Loan Notes rank pari passu and are secured by floating charges over the
whole of the assets of the Company and pay interest in half yearly instalments
in May and November. The Company has complied with both Note Purchase
Agreements: that the ratio of net assets to gross borrowings must be greater
than 3.5:1 and that net assets must not be less than £550,000,000.
The fair value of the Loan Notes has been calculated by aggregating the
expected future cash flows for that loans discounted at a rate based on UK
gilts issued with comparable coupon rates and maturity dates plus a margin
representing the credit risk for Investment Grade A bonds. The fair value of
the Loan Notes is shown in note 9.
31 December 2025 30 June 2025
£'000 £'000
2.51% Senior Loan Notes 40,000 40,000
Unamortised 2.51% Senior Loan Notes issue expenses (25) (31)
39,975 39,969
4.37% Senior Loan Notes at fair value 73,344 73,344
Amortisation of 4.37% Senior Loan Note (8,097) (7,306)
65,247 66,038
105,222 106,007
Bank loans. The Company has a three year £30 million multi-currency unsecured
revolving bank credit facility with Bank of Royal Bank of Scotland
International Limited, committed until 22 October 2027. At each period end the
Company had drawn down the facility as shown below:
31 December 2025 30 June 2025
Rate Currency £'000 Rate Currency £'000
Euro - - - 3.38% 3,500,000 2,998
US Dollar - - - 5.74% 2,725,000 1,989
Swedish Krona - - - 3.56% 9,500,000 727
Norwegian Krone - - - 5.76% 5,900,000 426
- 6,140
8. Share capital
Six months ended Year ended
31 December 2025 30 June 2025
Shares £'000 Shares £'000
Allotted, called-up and fully paid:
Ordinary shares of 25p each: publicly held 95,521,684 23,880 97,912,184 24,478
Ordinary shares of 25p each; held in treasury 24,007,848 6,002 21,617,348 5,404
119,529,532 29,882 119,529,532 29,882
During the period 2,390,500 (30 June 2025 - 6,772,817) Ordinary shares were
bought back for treasury at a cost of £21,174,000 (30 June 2025 -
£57,455,000). As at the date of signing this report a further 738,000 shares
have been bought back at a cost of £6,917,000.
9. Net asset value per Ordinary share
The net asset value and the net asset value attributable to the Ordinary
shares at the end of the period follow. These were calculated using 95,521,684
(30 June 2025 - 97,912,184) Ordinary shares in issue at the period end
(excluding treasury shares).
31 December 2025 30 June 2025
Net Asset Value Net Asset Value
Attributable Attributable
£'000 pence £'000 pence
Net asset value - debt at par 948,755 993.2 916,738 936.3
Add: amortised cost of 2.51% Senior Loan Notes 39,975 41.8 39,969 40.8
Less: fair value of 2.51% Senior Loan Notes (38,781) (40.6) (38,170) (39.0)
Add: amortised cost of 4.37% Senior Loan Notes 65,247 68.3 66,038 67.5
Less: fair value of 4.37% Senior Loan Notes (59,938) (62.7) (59,550) (60.8)
Net asset value - debt at fair value 955,258 1,000.0 925,025 944.8
10. Transaction costs
During the period, expenses were incurred in acquiring or disposing of
investments classified at fair value through profit or loss. These have been
expensed through capital and are included within gains/(losses) on investments
in the Condensed Statement of Comprehensive Income. The total costs were as
follows:
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 £'000
Purchases(A) 199 532
Sales(A) 90 92
289 624
(A) Costs associated with the purchases and sale of portfolio investments in
the normal course of the Company's business comprising stamp duty, financial
transaction taxes and brokerage.
11. Fair value hierarchy
FRS 102 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 has the following levels:
Level 1: unadjusted quoted prices in an active market for identical assets or
liabilities that the entity can access at the measurement date;
Level 2: inputs other than quoted prices included within Level 1 that are
observable (ie developed using market data) for the asset or liability, either
directly or indirectly; and
Level 3: inputs are unobservable (ie for which market data is unavailable) for
the asset or liability.
The financial assets and liabilities measured at fair value in the Condensed
Statement of Financial Position are grouped into the fair value hierarchy at
the reporting date as follows:
Level 1 Level 2 Level 3 Total
As at 31 December 2025 Note £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 996,501 - - 996,501
Financial liabilities at fair value through profit or loss
Derivatives b) (245) - - (245)
Net fair value 996,256 - - 996,256
Level 1 Level 2 Level 3 Total
As at 30 June 2025 Note £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 1,011,048 - - 1,011,048
Net fair value 1,011,048 - - 1,011,048
a) Quoted equities. The fair value of the Company's investments in quoted
equities has been determined by reference to their quoted bid prices at the
reporting date. Quoted equities included in Fair Value Level 1 are actively
traded on recognised stock exchanges.
b) Derivatives. The fair value of the Company's investments in Exchange Traded
Options has been determined using observable market inputs on an exchange
traded basis and therefore has been included in Fair Value Level 1.
The fair value of the Company's investments in Over the Counter Options (where
the underlying equities are also held) has been determined using observable
market inputs other than quoted prices of the underlying equities (which are
included within Fair Value Level 1) and therefore determined as Fair Value
Level 2.
All other financial assets and liabilities of the Company are included in the
Condensed Statement of Financial Position at their book value which in the
opinion of the Directors is not materially different from their fair value.
12. Analysis of changes in net debt
At Currency Non-cash At
30 June 2025 differences Cash flows movements 31 December 2025
£000 £000 £000 £000 £000
Cash and cash equivalents 10,426 93 42,541 - 53,060
Debt due within one year (6,140) (163) 6,303 - -
Debt due after one year (106,007) - - 785 (105,222)
Total (101,721) (70) 48,844 785 (52,162)
At Currency Non-cash At
30 June 2024 differences Cash flows movements 31 December 2024
£000 £000 £000 £000 £000
Cash and cash equivalents 25,148 173 (11,347) - 13,974
Debt due within one year (6,282) 92 - - (6,190)
Debt due after one year (107,574) - - 783 (106,791)
(88,708) 265 (11,347) 783 (99,007)
An analysis of cash and cash equivalents between cash at bank and in hand and
money market funds is provided in the Statement of Cash Flows.
A statement reconciling the movement in net funds to the net cash flow has not
been presented as there are no differences from the above analysis.
13. Transactions with the Manager
The Company has delegated the provision of investment management, secretarial,
accounting and administration and promotional services to the Manager.
The amounts charged excluding VAT for the period are set out below:
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 £'000
Management fees 1,646 1,691
Promotional activities 200 201
Secretarial fees 38 38
1,884 1,930
The amounts payable excluding VAT at the period end are set out below:
Six months ended Six months ended
31 December 2025 31 December 2024
£'000 £'000
Management fees 552 545
Promotional activities 100 101
Secretarial fees 19 19
671 665
No fees are charged in the case of investments managed or advised by the
Aberdeen Group plc. There were no commonly managed funds held in the portfolio
during the six months to 31 December 2025 (2024 - none). The management
agreement may be terminated by either party on the expiry of three months
written notice. On termination the Manager would be entitled to receive fees
which would otherwise have been due up to that date.
14. Segmental information
The Directors are of the opinion that the Company is engaged in a single
segment of business activity, being investment business. Consequently, no
business segmental analysis is provided.
15. Subsequent events
Subsequent to the period end, the Company appointed Artemis Fund Managers
Limited ("Artemis") as its Alternative Investment Fund Manager ("AIFM").
Under the terms of the management agreement, Artemis will be entitled to
receive an annual management fee charged on the lower of the Company's market
capitalisation or nets assets calculated as follows:
- 0.40% per annum on the first £750 million;
- 0.375% per annum on the next £250 million; and
- 0.35% per annum on net assets above £1 billion.
As a contribution towards the costs of the change of AIFM, Artemis have waived
their management fee payable for a period of nine months from their date of
appointment.
16. The financial information in this report does not comprise statutory accounts
within the meaning of Section 434 - 436 of the Companies Act 2006. The
financial information for the year ended 30 June 2025 has been extracted from
published accounts that have been delivered to the Registrar of Companies and
on which the report of the auditors was unqualified and contained no statement
under Section 498 of the Companies Act 2006.
17. This Half-Yearly Financial Report was approved by the Board on 26 February
2026.
Alternative Performance Measures ("APMs")
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash flows,
other than financial measures defined or specified in the applicable financial
framework. The Company's applicable financial framework includes FRS 102 and
the AIC SORP. The Directors assess the Company's performance against a range
of criteria which are viewed as particularly relevant for closed-end
investment companies.
Discount to net asset value per Ordinary share with debt at fair value
The discount is the amount by which the share price is lower than the net
asset value per share with debt at fair value, expressed as a percentage of
the net asset value.
31 December 2025 30 June 2025
NAV per Ordinary share a 1,000.0p 944.8p
Share price b 913.0p 854.0p
Discount (b-a)/a (8.7)% (9.6)%
Discount to net asset value per Ordinary share with debt at par value
The discount is the amount by which the share price is lower than the net
asset value per share with debt at par value, expressed as a percentage of the
net asset value.
31 December 2025 30 June 2025
NAV per Ordinary share a 993.2p 936.3p
Share price b 913.0p 854.0p
Discount (b-a)/a (8.1)% (8.8)%
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed
as a percentage.
31 December 2025 30 June 2025
Dividends per share (p) a 40.00p 40.00p
Share price (p) b 913.0p 854.0p
Dividend yield a/b 4.4% 4.7%
The dividend used for 31 December 2025 of 40.00p is presented on a historical
basis and represents the amount paid in respect of the year ended 30 June
2025.
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
divided by shareholders' funds, expressed as a percentage. Under AIC reporting
guidance cash and cash equivalents includes amounts due to and from brokers at
the year end as well as cash and cash equivalents.
31 December 2025 30 June 2025
Bank loans (£'000) a - (6,140)
Senior Loan Notes (£'000) b (105,222) (106,007)
Total borrowings (£'000) c=a+b (105,222) (112,147)
Cash (£'000) d 53,060 10,426
Amounts due to brokers (£'000) e - (3,043)
Amounts due from brokers (£'000) f - 3,418
Shareholders' funds (£'000) g 948,755 925,025
Net gearing -(c+d+e+f)/g 5.5% 11.0%
Ongoing charges
The ongoing charges ratio has been calculated based on the total of the
investment management fee and administrative expenses less non-recurring
charges and expressed as a percentage of the average daily net asset values
with debt at fair value published throughout the period.
31 December 2025 30 June 2025
Investment management fee(A) (£'000) a 3,307 3,304
Administrative expenses(A) (£'000) b 1,451 1,424
Less: non-recurring charges(B) (£'000) c (240) (143)
Ongoing charges (£'000) a+b+c 4,518 4,585
Average net assets (£'000) d 950,353 954,383
Ongoing charges ratio (a+b+c)/d 0.48% 0.48%
(A) 31 December 2025 represents the annualised forecast to 30 June 2026.
(B) 31 December 2025 comprises £157,500 relating to costs accrued in respect
of the strategic review, and £82,300 to accrued legal fees unlikely to recur.
30 June 2025 comprises £85,000 relating to costs accrued in respect of the
strategic review, £35,000 Directors recruitment fee, £20,000 relating to
legal fees for the new loan facility and £3,000 relating to other
professional services unlikely to recur.
The ongoing charges ratio above differs from that provided in the Company's
Key Information Document.
Total return
Share price and NAV total returns show how the NAV and share price has
performed over a period of time in percentage terms, taking into account both
capital returns and dividends paid to shareholders. Share price and NAV total
returns are monitored against open-ended and closed-ended competitors, and the
FTSE All-Share Index, respectively.
Share NAV NAV
Six months ended 31 December 2025 price (debt at fair value) (debt at par)
Opening at 1 July 2025 a 854.0p 944.8p 936.3p
Closing at 31 December 2025 b 913.0p 1,000.0p 993.2p
Price movements c=(b/a)-1 6.9% 5.8% 6.1%
Dividend reinvestment(A) d 2.5% 2.3% 2.3%
Total return c+d 9.4% 8.1% 8.4%
Share NAV NAV
Year ended 30 June 2025 price (debt at fair value) (debt at par)
Opening at 1 July 2024 a 857.0p 957.9p 946.0p
Closing at 30 June 2025 b 854.0p 944.8p 936.3p
Price movements c=(b/a)-1 (0.4)% (1.4)% (1.0)%
Dividend reinvestment(A) d 4.7% 4.1% 4.1%
Total return c+d 4.3% 2.7% 3.1%
(A) Share price total return involves reinvesting the net dividend in the
share price of the Company on the date on which that dividend goes
ex-dividend. NAV total return involves investing the net dividend in the NAV
of the Company with debt at fair value on the date on which that dividend goes
ex-dividend.
END
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