Final Results
Summary by AI BETAClose X
Aberforth Geared Value & Income Trust plc
Audited Annual Results for the year to 30 June 2026
The following is an extract from the Company's Annual Report and Financial Statements for the year to 30 June 2026, comparative figures cover the period from Incorporation on 29 March 2024 to 30 June 2025. The Annual Report is expected to be posted to shareholders by 6 August 2026. Members of the public may obtain copies from Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3 7NS or from its website: https://www.aberforth.co.uk/trusts-and-funds/aberforth-geared-value-income-trust-plc/ . A copy will also shortly be available for inspection at the National Storage Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
FINANCIAL HIGHLIGHTS (SUMMARY)
|
Performance (Total Return) |
Year to 30 June 2026 |
|
|
------------ |
|
Total Assets 1 |
+3.9% |
|
Ordinary Share NAV 2 |
+2.5% |
|
Ordinary Share Price 4 |
+13.2% |
|
ZDP Share NAV 3 |
+7.0% |
|
ZDP Share Price 5 |
+8.3% |
1-18 Refer to Note 2, Alternative Performance Measures, and the Glossary.
The ZDP Share NAV total return of 7.0% is on an Articles basis (see Note 7)
Dividends Declared
Second Interim Dividend per Ordinary Share 3.69p
Special Dividend per Ordinary Share 0.85p
The first interim dividend of 1.56p and the second interim dividend of 3.69p represent the total underlying dividends for the year to 30 June 2026 of 5.25p per Ordinary Share, 5% higher than last year. In addition, a special dividend of 0.85p is declared and reflects the strong income performance. Total dividends for the year to 30 June 2026 amount to 6.10p per Ordinary Share.
The second interim and special dividend have an ex-dividend date of 6 August 2026, record date of 7 August 2026 and pay date of 27 August 2026.
THE COMPANY
Aberforth Geared Value & Income Trust plc (the Company or AGVIT) is a closed-ended investment company incorporated on 29 March 2024. It has a fixed life of seven years from launch to 30 June 2031 and its shares are traded on the London Stock Exchange's Main Market. The Company acted as a rollover option for shareholders in Aberforth Split Level Income Trust plc (ASLIT) in connection with the winding up of ASLIT on 1 July 2024. Further information is set out in Note 9, the Company’s Prospectus issued on 28 May 2024, and is also available on the Aberforth website www.aberforth.co.uk/trusts-and-funds/aberforth-geared-value-income-trust-plc/ .
CHAIRMAN’S STATEMENT
I present the second annual report of Aberforth Geared Value & Income Trust plc (“AGVIT” or “the Company”), which covers the year to 30 June 2026.
Review of Performance
Investment background
Shareholders will recall that the financial year began with a more constructive backdrop for markets as fears eased of an economically damaging trade war. However, the conflict in Iran ensured that geopolitical events again defined the market narrative in the latter part of the Company’s financial year. This latest conflict provoked sharp rises in energy prices and reawakened concerns about inflation. As interest rate expectations flipped from cuts to rises, equity prices fell. In the context of UK smaller companies, domestic-facing businesses were seen as more exposed to altering economic activity. They also had to contend with a further bout of political uncertainty after the local elections brought about another change of Prime Minister. The other defining theme within equity markets over the last twelve months has been ever greater enthusiasm for artificial intelligence (AI). While speculation swirls about which business models will prove vulnerable to AI and companies perceived to be beneficiaries of AI continue to attract disproportionate interest, it is my experience that such conditions rarely endure indefinitely.
For value investors, such as Aberforth, this environment has created a fertile ground for investment opportunities. It reinforces my confidence both in the qualities of the attractively valued portfolio, which are outlined in the Managers' Report, and in AGVIT’s capital structure.
Portfolio performance
The table below sets out the Total Assets total return performance of 3.9% over the year to 30 June 2026. It measures the portfolio return and is unaffected by AGVIT’s capital structure. AGVIT’s investment objective and capital structure reduce the relevance of assessing its performance relative to an equity index. Nevertheless, for context, the table also sets out performance of small companies in the form of the Deutsche Numis Smaller Companies Index (excluding Investment Companies). This index, abbreviated throughout this report as DNSCI (XIC), is the Company’s opportunity base of small UK quoted companies. Its total return was 7.1% over the year. Larger companies fared much better, with the FTSE All-Share generating a total return of 21.9% over the year.
|
Total Return |
Investment universe - DNSCI (XIC) |
Total Assets |
|
6 months to 31 December 2025 |
5.3% |
0.0% |
|
6 months to 30 June 2026 |
1.8% |
3.9% |
|
12 months to 30 June 2026 |
7.1% |
3.9% |
The financial year was one of contrasting halves. My comments in the interim statement covered a challenging first half for AGVIT’s portfolio. This gave way to a more encouraging second six months, despite the conflict in Iran. The financial year ended particularly strongly for smaller companies and AGVIT, which illustrates what is possible when the market focuses on the asset class and on the Company’s investment opportunity. As usual, the Managers’ Report delves into AGVIT’s Total Assets total return, bringing to light influences on performance over the year to 30 June 2026.
Ordinary Shares NAV performance
|
Total Return |
Total Assets |
Ordinary NAV |
|
6 months to 31 December 2025 |
0.0% |
-1.5% |
|
6 months to 30 June 2026 |
3.9% |
4.0% |
|
12 months to 30 June 2026 |
3.9% |
2.5% |
The Ordinary Shares receive all income earned by AGVIT, as well as all capital returns once the ZDP Shares’ entitlement has been repaid. Their performance is affected by the gearing provided by the ZDP Shares.
In the first half of the year, the portfolio’s capital performance was below the ZDP Shares’ entitlement rate. Performance improved in the second half of the year – the portfolio return exceeded the hurdle imposed by the ZDP Shares and so the Ordinary Share NAV rose by more than did Total Assets. Over the full twelve months to 30 June 2026, the portfolio’s capital performance was below the ZDP Shares’ entitlement rate. Therefore, the Ordinary NAV total return of 2.5% was below the Total Assets total return of 3.9%.
Ordinary Share price performance
|
Ordinary Shares |
NAV Total return |
Discount 30 June 2025 |
Discount 30 June 2026 |
Share price Total return |
|
12 months to 30 June 2026 |
+2.5% |
16.2% |
8.2% |
+13.2% |
I was encouraged by the Ordinary Share price performance. The 13.2% share price total return reflected the positive NAV total return, together with a narrowing of the difference between the NAV per Share and the Share Price. This discount moved from 16.2% to 8.2% over the twelve months to 30 June 2026. It may be that the stockmarket is beginning to understand the opportunity in small UK quoted companies, particularly when accessed through an investment trust with AGVIT’s structure.
Income performance
|
Ordinary Share Revenue |
Investment income |
Revenue Return (%) |
Revenue Return(p) |
|
12 months to 30 June 2026 |
+5.6% |
+3.6% |
7.10p |
My Chairman’s Statement in the Half Yearly Report described the good income experience from the portfolio. Pleasingly, this was bettered in the second half of the year. The overall income performance for the year ended 30 June 2026 exceeded the Managers’ estimates at the start of the year and highlights the resilience of AGVIT’s portfolio of smaller companies.
The strength of the income component of the investment objective performance benefited from the “yield roll” dynamic, which is described in the Managers’ Report. AGVIT’s Investment income was 5.6% higher year-on-year. Some one-off factors, including five special dividends, were helpful. Even with these excluded, the underlying rate of Investment income growth was a healthy 4.9%. The Revenue Return per Ordinary Share for the year ended 30 June 2026 was 7.10p, 3.6% higher than the previous period’s 6.85p.
ZDP Shares
The ZDP shares fund a proportion of the investment portfolio and gear the returns of the Ordinary Shares. The ZDP Shares have a Final Capital Entitlement of 160.58p on the Company’s planned winding up date of 30 June 2031. In the year to 30 June 2026, the ZDP Share NAV increased to 114.48p. The ZDP Share price at 30 June 2026 was 117.00p, a 2.2% premium to NAV. The projected final cumulative cover of the ZDP Shares was 2.1 times, which compares with 2.0 times at launch on 1 July 2024.
Dividends
|
Per Ordinary Share |
Revenue |
Ordinary Dividends |
Special Dividend |
Retained Revenue |
|
12 Months to 30 June 2026 |
7.10p |
5.25p |
0.85p |
1.00p |
The Company’s policy is to distribute a significant proportion of its net revenue in the form of dividends to Ordinary Shareholders. Consistent with this, the Board declares a second interim dividend of 3.69p per Ordinary Share for the year to 30 June 2026. Together with the first interim dividend of 1.56p paid on 9 March 2026, the total Ordinary dividend with respect to the year is 5.25p per Ordinary Share, 5% higher than last year.
In addition, the Board declares a special dividend of 0.85p per Ordinary Share for the year to 30 June 2026. This reflects the special income contribution from investee companies, which are not expected to recur, and the requirement for AGVIT to comply with HMRC’s minimum retention test for investment trusts.
After accounting for the total dividends of 6.10p, AGVIT will retain 1.00p of revenue. The ability to retain revenue and to create flexibility to support dividends in future periods is one of the main structural advantages of an investment trust. At this stage in the Company’s planned life, the Board believes that this is a prudent level of retention given the on-going economic and geopolitical uncertainties. After accounting for the Ordinary and Special dividends declared today, AGVIT’s revenue reserves per Ordinary share will total 2.00p as at 30 June 2026.
The details of these dividends are described in the Financial Calendar on page 62 of the Annual Report.
Annual General Meeting (AGM)
For those Shareholders who would like to meet members of the Board and Aberforth’s investment team in-person, the AGM of the Company will be held at 14 Melville Street, Edinburgh EH3 7NS at 11.00am on 2 November 2026. Further details of the AGM are set out in the Notice of the Meeting on page 66 of the Annual Report.
Outlook and conclusion
The past year was once again marked by economic and geopolitical uncertainty. The peace negotiations between the US and Iran remain volatile, and fighting has recently once again escalated, but I would note that the oil price has dropped sharply from its mid-conflict levels. Meanwhile, perceptions of the UK stockmarket and of companies operating in the UK economy are likely to remain coloured by political uncertainty, at least until our new Prime Minister makes clear his policies and priorities. Investor scepticism is understandable, though it is intriguing that larger UK companies have shrugged off these “big picture” issues. I take encouragement from previous cycles, in which the strong performance of larger companies eventually broadens to smaller companies. It is unclear when the clouds over the asset class will lift, but, when I look at the valuations, it seems to me that many of the risks are already factored into the share prices of small UK quoted companies.
Turning to AGVIT, progress over the first two years of the planned life has been modest but positive. I note that the combination of the Ordinary Share NAV and dividends already paid to Shareholders is above the issue price at 103.5p. So far, income has led the way, but my fellow directors and I are confident in AGVIT’s prospects for both capital and income progress in the coming years. Our confidence in the outlook is rooted in three important features of the Company’s offering to Shareholders.
• First, the asset class presently combines strong businesses and unusually attractive valuations. The valuations largely reflect broader market concerns rather than the resilience of underlying businesses, which is evident in AGVIT’s strong income performance.
• Second, Aberforth's investment process is well suited to current conditions. The team-based approach ensures continuity and broad coverage across the DNSCI (XIC), while constructive engagement with investee companies can also help close valuation gaps in a stockmarket that often requires a catalyst to take notice.
• Third, AGVIT benefits from being an investment trust with a fixed life. Its closed-end status is ideal for investment in a relatively illiquid asset class. The fixed life gives Shareholders the opportunity to realise their investments close to NAV on the planned winding-up date. Additionally, the Board has the flexibility to aim for a steadily rising dividend, prudently adding to revenue reserves in the good times and using them in more difficult conditions. Finally, the gearing provided by the ZDP Shares to the Ordinary Shares should enhance investment returns if the asset class’s attractive valuations and Aberforth’s investment approach deliver what I think they can.
These attributes offer no assurance of near-term performance. However, my fellow Directors and I believe they improve the probability of a favourable investment experience for both classes of shareholder over the Company’s life.
The Board very much welcomes the views of Shareholders and is available to talk to you directly. My email address is noted below.
Angus Gordon Lennox
Chairman
29 July 2026
Angus.GordonLennox@aberforth.co.uk
Managers’ Report
Introduction
AGVIT’s total assets total return, which measures the ungeared portfolio’s performance, was +3.9% in the twelve months to 30 June 2026. The investment universe, from which the Managers select AGVIT’s holdings, is the DNSCI (XIC). Its total return was +7.1%. Larger UK companies were much stronger, with the FTSE All-Share ahead by 21.9% in total return terms.
The first half of the financial year was difficult for AGVIT. Its total return in the six months to 31 December 2025 was 0.0%, which compares with +5.3% for the DNSCI (XIC). The second half brought improved performance. AGVIT generated a total return of +3.9%, while the DNSCI (XIC) was up by 1.8%. The following paragraphs provide context for this improvement.
Investment background
As described in the half yearly report, small UK quoted companies faced two challenges in the six months to 31 December 2025. For those companies earning their profits outside the UK, the issue was Donald Trump’s tariffs, which threatened to impose higher costs and working capital requirements on businesses. For domestic-facing companies earning their profits within the UK, the challenge was the country’s fiscal situation and fear of what the Chancellor’s Budget late in 2025 held in store for the private sector.
In the event, neither of these issues proved as serious as initially feared and the second half of AGVIT’s financial year started well for smaller companies. The impact of the tariffs was mitigated by deals with trading partners and by the US Supreme Court’s ruling on the legitimacy of the tariffs. Meanwhile, the Budget was not as hostile to the UK’s private sector as was feared. Macro economic data and trading updates from companies indicated stronger activity in January and February, which was reflected in good investment returns for AGVIT and smaller companies more broadly.
However, the encouraging start was brought to an abrupt halt in March by war in Iran. With a decline of 12% in March, the DNSCI (XIC) recorded its fifth worst month in Aberforth’s 35 year history. The companies whose share prices suffered most tended to be those close to the UK housing market. In this, the stockmarket was mindful of Russia’s invasion of Ukraine and anticipated that the inflationary pressure from higher oil prices would necessitate higher interest rates and renew the squeeze on household budgets.
As well as the threat of another inflationary jolt, UK equities had to contend with deeper political uncertainty. May’s local government elections precipitated another change of Prime Minister. The drama played out in the gilt market more than in the equity market, as the premium paid on ten year gilt yields over ten year US bond yields returned to 2022 “mini Budget” levels. Ensuing commentary focused on the UK’s economic and societal problems, but it is notable that the gilt yield premium had narrowed by 30 June 2026 and that sterling barely moved against both the dollar and the euro. Markets appear to have taken the view that the UK’s fiscal situation limits the options for our next Prime Minister.
The other main feature of AGVIT’s financial year was the on-going investment boom in artificial intelligence (AI). The American technology titans continued to announce ever larger capital expenditure plans as they attempt to scale computing power to meet anticipated AI demand. Uncertainty about the funding of these ambitions was partially addressed in June when Alphabet announced a massive equity issue. This was followed by the initial public offering in SpaceX, the vast majority of whose $2 trillion valuation is attributable to its AI ventures.
Of course, most companies are not at the forefront of AI development. As the market focused on vulnerability to AI adoption more than on its efficiency benefits, many share prices came under pressure, particularly during the second half of the financial year. Sectors such as software, estate agency, recruitment and insurance felt the effects. Exposure to these areas meant that AI has on balance been a negative influence on the performance of the UK stockmarket’s small and large companies over the past twelve months.
Analysis of performance and portfolio characteristics
In the twelve months to 30 June 2026, AGVIT’s total asset total return was +3.9%. The return from the DNSCI (XIC), which is AGVIT’s investment universe, was +7.1%. The following paragraphs provide context and explanation for this performance and for the characteristics set out in the table below. They also set out important features of the portfolio’s positioning, which are likely to influence future performance.
|
|
30 June 2026 |
30 June 2025 |
||
|
Portfolio Characteristics |
AGVIT |
DNSCI (XIC) |
AGVIT |
DNSCI (XIC) |
|
Number of companies |
67 |
342 |
68 |
343 |
|
Weighted average market capitalisation |
£720m |
£1,233m |
£671m |
£1,132m |
|
Weighting in “smaller small” companies* |
42% |
17% |
44% |
20% |
|
Weighting in companies with net cash** |
46% |
32% |
38% |
30% |
|
Portfolio turnover over prior 12 months |
26% |
n/a |
12% |
n/a |
|
Price earnings (PE) ratio (historical) |
11.2x |
13.0x |
10.7x |
14.9x |
|
Dividend yield (historical) |
5.5% |
3.2% |
5.3% |
3.4% |
|
Dividend cover (historical) |
1.6x |
2.4x |
1.8x |
2.0x |
*”Smaller small” DNSCI (XIC) members that are not also FTSE 250 members.
**Tracked Universe – explained below in Balance Sheets section.
Themes
The investment background above described top-down influences on the stockmarket moves in the year to 30 June 2026. As the following comments explain, AGVIT’s experience of these themes was mixed.
• Artificial intelligence on balance was a negative for AGVIT’s performance. The share prices of software companies, recruiters and media businesses, including those owned by AGVIT, weakened as AI concerns developed. However, this effect was mitigated by a strong performance from an investee company whose largest customers are manufacturers of equipment for the semiconductor industry. The Managers are working on non-holdings that have been victims of the AI excitement to determine whether these are now investment opportunities.
• Housebuilding, including the housebuilders themselves and suppliers to the industry, was a significant drag on AGVIT’s performance. The industry is confronted by demand uncertainty amid cost-of-living concerns and renewed cost inflation as higher energy prices feed through the supply chain. Valuations are now extremely low, with price-to-book ratios back to levels last seen in the global financial crisis.
• Oil exposure had a neutral effect on performance over the twelve months as a whole, but AGVIT’s holdings in oil and gas producers were a useful mitigation when the Iran war started. The motivation for these holdings was the extremely low valuations that the stockmarket attributed to oil and gas producers, despite their strong cash generation and willingness to pay dividends. There was little in the companies’ valuations for the chance that geopolitical instability might lead to a higher oil price.
Size
AGVIT’s portfolio retains a relatively high exposure to the “smaller small” companies within the DNSCI (XIC). At the end of June, the weighting was 42%, which was significantly greater than the index’s 17%. The reason is the considerably lower valuations that the stockmarket attributes to its smaller constituents, which is demonstrated in the Valuations section later in this report.
This aspect of AGVIT’s portfolio positioning means that investment performance is affected by the stockmarket’s preference for larger or smaller companies in a given period. Over the long term, “smaller small” companies have out-performed “larger small” companies, just as the overall DNSCI (XIC) has out-performed the FTSE All-Share. In the twelve months to 30 June 2026, “smaller small” companies out-performed “larger small” companies and so AGVIT’s size positioning helped investment performance.
Style
The Managers invest AGVIT’s assets in accordance with their value investment philosophy. The stockmarket’s appetite for value stocks is more volatile. To gauge style effects within the DNSCI (XIC), the Managers use analysis by London Business School (LBS). This is based on price to book ratios: a high price to book denotes a growth stock and a low price to book a value stock. When selecting stocks for AGVIT’s portfolio, the Managers use a broader range of valuation techniques, but the LBS approach provides a useful indication of the market’s style preference.
The DNSCI (XIC)’s value stocks have out-performed the index as a whole over Aberforth’s 35 year history, which was also the case in AGVIT’s first financial year. However, value stocks under-performed during the year to 30 June 2026. This meant that style, as measured by the LBS analysis, was a hindrance to AGVIT’s investment return.
Balance sheets
The following table sets out the balance sheet profile of AGVIT’s portfolio and of the Managers’ Tracked Universe, which is a subset of the DNSCI (XIC). It represents 99% by value of the index as a whole and is made up of the 237 companies that the Managers follow closely.
|
Weight in companies with: |
Net cash |
Net debt/EBITDA < 2x |
Net debt/EBITDA > 2x |
Other* |
|
Tracked Universe 2026 |
32% |
41% |
22% |
5% |
|
Portfolio 2026 |
46% |
37% |
12% |
5% |
* Includes loss-makers and lenders
Small companies remain financially robust, but the stockmarket does not appear to be discriminating on the basis of balance sheet strength at present. This has seen AGVIT’s exposure to companies with net cash on their balance sheets increase to 46%. Most of the exposure to higher leverage, of two times EBITDA and above, comes through businesses with asset backing, such as property and pub companies. The category also includes companies with depressed profitability or excessive debt, in which circumstances the Managers’ level of engagement is particularly high.
The strength of balance sheets has supported further dividend growth and sustained the high incidence of share buy-backs. In the twelve months to 30 June 2026, 24 of AGVIT’s investee companies took advantage of their attractive stockmarket valuations to buy back shares. The economic logic of buy-backs at such valuations is compelling as long as they do not deprive underlying businesses of capital needed for the maintenance of assets and prudent growth.
Income
At 30 June 2026, the average historical dividend yield of AGVIT’s 67 portfolio holdings was 5.5% and average dividend cover was 1.6x. The income experience in the twelve months to 30 June 2026 was positive. Excluding special dividends, AGVIT’s dividend income rose by 4.9% year-on-year. The source of this growth was a combination of higher dividends paid by investee companies and portfolio management activity. The latter stems from “value roll”, which is the Managers’ term for the recycling of capital from companies with lower upside to target price (and therefore usually lower dividend yields) to companies with higher upsides (and therefore usually higher dividend yields).
|
Nil Payer |
Cutter |
Unchanged Payer |
Increased Payer |
Returner |
|
7 |
10 |
20 |
29 |
1 |
The table above categorises AGVIT’s 67 holdings according to their most recent dividend actions. AGVIT’s positive income experience was underpinned by the 29 companies that increased their dividends and by the company that recommenced dividend payments. AGVIT also received five special dividends from its holdings in the twelve months to 30 June 2026.
Corporate Activity
Heightened takeover interest in small UK quoted companies continued in the year to 30 June 2026, despite the uncertainties arising from the war in Iran. At the end of the period, there were eight recommended offers waiting to complete, of which three were for companies held by AGVIT. On top of these eight formal offers, seven companies had received approaches and remained in talks with potential acquirers. Of these, AGVIT had a holding in one.
The terms of the eight recommended deals are consistent with recent averages within the DNSCI (XIC). Over the past three years, the average premium to the share price has been 45%, while the average EV/EBITA has been 14.6x. This is well above the portfolio’s 7.8x EV/EBITA ratio for 2026. As long as such low valuations prevail in the stockmarket, it is likely that M&A activity will continue at an elevated rate. However, the risk remains that boards of target companies are too ready to engage from a disadvantageous starting point. There were further instances of this in the year to 30 June 2026 and the Managers again engaged to improve terms or to embolden the target board to pursue its standalone strategy. Such engagement is not always successful, but the motivation is always to improve investment returns for AGVIT and its Shareholders.
A corollary of the low valuations that the stockmarket currently ascribes to small UK quoted companies is a continued paucity of initial public offerings. However, the Managers’ opportunity base is expanding as five more companies announced moves up from AIM to the Main Market in the year to 30 June 2026. AGVIT does not invest in AIM quoted companies except in limited circumstances, one of which is when an AIM company makes a public announcement of its intention to move up. Of the five promotions, AGVIT has holdings in one.
Value roll and portfolio turnover
The main influence on AGVIT’s portfolio turnover in any period is usually the stockmarket’s appetite for small UK quoted companies. If prices and valuations are rising, the upsides to the Managers’ target prices are likely to be narrowing. All else being equal, this would encourage the rotation of AGVIT’s capital from companies with lower upsides to those with higher. Portfolio turnover is defined as the lower of purchases and sales divided by the average portfolio value. Over the twelve months to 30 June 2026, turnover was 26% and was influenced by the period’s significant takeover activity.
Portfolio categorisation
The table below gives additional insight into how the Managers think about the portfolio and the circulation of capital within it. The four categories, into which the 67 holdings are split, correspond to the lifecycle of an investment – a successful holding tends to move through the categories from left to right. The categorisation also helps prioritise engagement activity, with more intensive engagement typically required for companies in the left-hand categories.
|
|
Under review |
Work in progress |
Self-help |
On track |
|
Portfolio weight |
4% |
8% |
53% |
35% |
|
Number of stocks |
5 |
7 |
38 |
17 |
|
Total return 6 months to 30 June 2026 |
-23% |
-3% |
+2% |
+23% |
|
EV/EBITA 2026 |
12.8x |
6.2x |
8.0x |
8.0x |
|
Engagement intensity |
High |
High |
Moderate |
Normal |
• Work in progress contains companies with an issue or problem that has hit the share price to an unjustified degree. Engagement with these companies is high as the Managers seek to understand the issue and how the board intends to address it.
• Self-help represents companies that have also had an issue but where a plan to address the issue is being executed. Over half of the portfolio sits here. This reflects the fact that most smaller companies are not at the mercy of macro economic conditions, but are resilient, well-managed and able to create value under their own steam. Engagement intensity here is elevated but lower than for Work in Progress.
• On track contains companies whose previous issues have been addressed and are now trading as planned. Engagement continues but is at a normal level.
• Under review is for companies that have an issue, but, unlike Work in progress, the Managers have not yet been able to determine whether the problem has been adequately reflected in the share price. Engagement levels for this category are therefore high.
• With their contrarian approach to investment, the Managers are drawn to companies with resolvable issues, contending that value opportunities arise as the stockmarket tends to overreact. It follows that the vast majority of new holdings are within the Work in progress or Self-help categories. If the investment case pans out as envisaged, companies are likely to move to the right – from Work in progress through Self-help to On track – before leaving the portfolio. Once in On track, it is likely that the stockmarket values companies closer to the Managers’ target valuations and that these should become sources of capital.
• Under review only contains existing holdings, those where the original investment case has been blown off course. More often than not, the Managers’ research and engagement convince them to add to companies in this category. Indeed, some of the Managers’ biggest winners over the years have slipped from one of the other categories into Under review before recovering and progressing rightwards.
• Moving through the categories from left to right, potential upside to target prices falls, though confidence in target prices rises. There is no strong pattern to the average EV/EBITA ratios. This is because the underlying business issues that determine the categorisation can often be reflected in depressed profitability. This is particularly the case for those companies in Under Review.
Valuations
The historical price earnings ratios (PE) for the portfolio was 11.2x at 30 June 2026, which is below the long term average of 11.9x for the Managers’ other client portfolios. Similarly, the 13.0x PE for the smaller companies was below its long term average of 13.5x. In contrast, the strong share price performance of large companies in recent years has pulled the historical PE of the FTSE All-Share up to 16.0x, which is above its long term average of 15.3x. The PE relative of small companies against large companies is now 0.81. This 19% discount compares with a long term average of 11%, which points to the potential re-rating available to AGVIT’s asset class.
The superior share price performance of larger companies is not unprecedented but is unusual. It is likely due to relative profit growth rates. Over time, small companies increase their profits at a higher rate than do large companies. However, in recent years, industries such as banking, mining and oil, which are big components of the FTSE All-Share but small components of the DNSCI (XIC), have enjoyed a period of good profit progression. At the same time, small companies have seen their profit growth hampered by their greater exposure to the domestic economy. Consequently, the usually higher profit growth of small companies has not been forthcoming. The Managers expect that normal service will be resumed since small companies remain fundamentally resilient and will benefit from a less uncertain economic backdrop. Moreover, it is unclear whether the industry-specific boosts to large company profit growth will repeat.
The table below turns to forward valuations for the portfolio and for the investment universe. It uses the Managers’ favoured metric, EV/EBITA (enterprise value to earnings before interest, tax and amortisation). Ratios are set out for the portfolio, the Tracked Universe and certain subdivisions of the Tracked Universe. The profits underlying the ratios are based on the Managers’ forecasts for each company that they track. The bullet points following the table summarise its main messages.
|
EV/EBITA |
2025 |
2026 |
2027 |
|
AGVIT’s portfolio (67 stocks) |
8.6x |
7.8x |
7.0x |
|
Tracked Universe (237 stocks) |
11.4x |
10.5x |
9.2x |
|
- 33 growth stocks |
18.2x |
16.6x |
14.8x |
|
- 204 other stocks |
10.6x |
9.8x |
8.6x |
|
- 111 overseas facing stocks* |
11.2x |
10.2x |
8.7x |
|
- 107 domestic facing stocks* |
11.0x |
10.6x |
9.6x |
|
- 135 “Smaller small” stocks |
8.5x |
8.0x |
7.0x |
|
- 102 “Larger small” stocks |
12.5x |
11.4x |
10.1x |
* 19 stocks within the Tracked Universe fell outwith the definition of overseas or domestic facing stocks and are not presented in the table above.
• The ratios decline over the three years shown. This is consistent with the Managers’ expectation of profit growth and strengthening balance sheets, which reduces the enterprise value. The estimates underlying the ratios of 2026 and 2027 are vulnerable to revision as the impact of the Iran war feeds through to the domestic economy. So far, few companies have adjusted their outlooks to reflect this uncertainty.
• The average EV/EBITA multiples of the portfolio are lower than those of the Tracked Universe. This reflects the Managers’ value investment style and the influence of the more highly valued growth stocks on the Tracked Universe’s multiples.
• The valuation of overseas facing companies (those with more than 60% of revenues outside the UK) is similar to that of domestic facing companies (those with more than 60% of revenues in the UK). For much of the last ten years, domestic companies have had lower valuations, owing to the EU referendum and lockdown during the pandemic. However, the gap has closed as overseas earners have had to contend with the US tariffs and higher costs arising from the war in Iran. This has expanded the range of potential investments for the Managers.
• The “smaller small” companies within the DNSCI (XIC) remain more attractively valued than do the “larger smalls”. This explains why AGVIT has a much higher exposure to the “smaller smalls” than does the DNSCI (XIC).
• Takeovers within the DNSCI (XIC) over the past three years were struck on average on a multiple of 14.6x. This compares with the portfolio’s 2026 EV/EBITA of 7.8x.
Outlook and conclusion
Despite the oil price having declined sharply from its early April peak, it is difficult to have full confidence in the peace negotiations between the US and Iran. As long as peace does hold, pressure on economies and markets should ease. However, some damage will likely prove to have been done as the oil price spike feeds through to inflation rates and to monetary policy. For the UK, this means that interest rate cuts, which were widely expected before the onset of the Iran war, are now unlikely. Indeed, unchanged interest rates in 2026 would be a good outcome for near term economic activity.
The other main issue confronting the UK economy is domestic politics. Successive governments have implemented policies that have squeezed the private sector and undermined the UK’s competitiveness. Policies on energy, land and labour have hampered economic growth and contributed to a higher cost of capital for companies, households and the government itself. This state of affairs influences today’s remarkable combination of very strong private sector balance sheets and extremely depressed confidence. This combination points to the potential release of pent-up activity when economic conditions stabilise and politics turns more supportive of the private sector.
It seems improbable that government’s role in the economy will diminish under Andy Burnham. However, it is to be hoped that his dirigiste tendencies are better focused and, with a more united Labour party behind him, can meet the growth ambitions espoused by his predecessor. He does, though, have only three years to prove himself and markets are likely already to be looking ahead to the next General Election in 2029. It is frustrating that none of the credible winners of that election seem inclined at this point to unwind the years of government encroachment on the private sector. However, it is encouraging that government’s role in bringing the UK economy to this point is now being aired and debated more broadly.
Faced with unhelpful government policy and geopolitical shocks, the operational performance of small UK quoted companies has been remarkably good in recent years. The ramifications of the Iran war mean that profit progress in 2026 is likely to be modest. However, cash generation and balance sheets are strong. Most companies in 2025 invested for growth, with capital expenditure running ahead of depreciation, and many continue to return value to shareholders through growing dividends and share buy-backs. There is no indication that the potential profitability has been impinged by exogenous events and so it is reasonable to expect small companies to thrive amid more stable economic conditions. In the meantime, the scope for self-help among AGVIT’s holdings is considerable, as set out in the categorisation analysis presented above.
For now the resilience of small UK quoted companies is largely being overlooked in a financial world obsessed by AI. The on-going investment in AI and its enabling technologies is eclipsing the previous investment booms that have punctuated economic and stockmarket history. It is to be hoped that good returns will be earned on the investment, by users of the technology if not by those deploying the capital.
As those asset classes not deeply involved in AI vie for the attention of investors, there is some encouragement for small UK quoted companies. First, the impressive recent performance of the FTSE 100 shows that “Britishness” itself is not a barrier to broader interest from investors. Second, smaller companies are attracting the attention of overseas capital, albeit not yet in an extensive fashion. This sporadic interest is evident in both takeovers, which seem likely to continue at elevated rates, and in the on-going change of many share registers. The incoming investors are often based overseas and frequently share the Managers’ constructive approach to engagement. They have been attracted by the valuation of the asset class and by the quality of the companies. This evolution of share registers from “weak hands” to “strong hands” highlights the opportunity and can itself contribute to a broad re-rating of the asset class in due course.
For now, the valuations of AGVIT’s portfolio and of smaller companies are still below their long term averages. Such conditions raise the likelihood of good prospective investment returns. The outlook is improved by how the Managers invest AGVIT’s capital. Three aspects stand out – the value investment philosophy, the active management of the portfolio through “value roll”, and the discreet engagement with the boards of the investee companies. These features have contributed to the good returns that the Managers have generated for their clients over 35 years and seem no less relevant today.
Finally, as the Chairman’s Statement describes, AGVIT also has structural advantages that derive from its investment trust status, such as gearing and the flexibility to aim for steadily rising dividends. On top of these, AGVIT’s closed-end status is well suited to operating in a relatively illiquid asset class, taking significant stakes in holdings and supporting companies over time. The Managers therefore remain confident that AGVIT’s structural and portfolio characteristics will generate good future investment returns that are consistent with AGVIT’s investment objectives.
Aberforth Partners LLP
Managers
29 July 2026
FINANCIAL HIGHLIGHTS
Total Return Performance – see note 7 for further explanation
|
Period to 30 June 2026 |
|
Ordinary Share |
ZDP Share |
||
|
Total Assets 1 |
N A V 2 |
Share Price 4 |
N A V 3 |
Share Price 5 |
|
|
1 year |
3.9% |
2.5% |
13.2% |
7.0% |
8.3% |
|
Annualised Since Inception 18 (including launch costs) |
3.2% |
1.9% |
-1.8% |
7.0% |
8.2% |
|
Since Launch 18 (excluding launch costs) |
4.1% |
2.9% |
-1.8% |
7.0% |
8.2% |
|
Cumulative Since Inception 18 (including launch costs) |
6.5% |
3.8% |
-3.6% |
14.5% |
17.0% |
|
Since Launch 18 (excluding launch costs) |
8.4% |
5.9% |
-3.6% |
14.5% |
17.0% |
|
The ZDP Share NAV total return is on an Articles basis (see note 7). |
|||||
Ordinary Share
|
Capital |
Net Asset Value per Share a |
Share Price |
Discount 6 / (Premium) 7 |
ZDP:Equity Gearing Ratio 9 |
||
|
|
----------- |
---------- |
------------ |
----------- |
||
|
30 June 2026 |
96.1p |
88.3p |
8.2% |
44.4% |
||
|
30 June 2025 |
99.6p |
83.5p |
16.2% |
40.0% |
||
|
Inception 18 |
100.0p |
100.0p |
0.0% |
37.5% |
||
The total return per Ordinary Share a for the year to 30 June 2026 was 2.39p (2025: 1.71p).
|
Revenue |
Revenue Return per Share a |
Ordinary Dividends per Share a |
Special Dividends per Share |
Cumulative Retained Revenue Reserves per Share 16 |
Ongoing Charges 11 |
||
|
|
----------- |
---------- |
------------ |
----------- |
------------ |
||
|
30 June 2026 |
7.10p |
5.25p |
0.85p |
2.00p |
1.5% |
||
|
30 June 2025 |
6.85p |
5.00p |
0.85p |
1.00p |
1.4% |
||
Zero Dividend Preference Share (ZDP Share)
|
|
Net Asset Value per Share a |
Share Price |
Discount 6 / (Premium) 7 |
Annual Return per Share a |
Projected Final Cumulative Cover 13 |
Gross Redemption Yield 15 |
|
|
------------ |
---------- |
------------ |
---------- |
------------ |
------------ |
|
30 June 2026 |
113.8p |
117.0p |
(2.8)% |
7.6p |
2.1x |
6.5% |
|
30 June 2025 |
106.2p |
108.0p |
(1.7)% |
7.1p |
2.0x |
6.8% |
|
Inception 18 |
100.0p |
100.0p |
0.0% |
n/a |
2.0x |
7.0% |
The ZDP net asset value per share is 114.48p on an Articles basis at 30 June 2026 (2025: 107.00p).
Hurdle Rates 10
|
|
Ordinary Shares Annualised Hurdle Rates to return |
ZDP Shares Annualised Hurdle Rates to return |
|||
|
|
100p |
Share Price |
Zero Value |
160.58p |
Zero Value |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
|
30 June 2026 |
5% |
3% |
-14% |
-14% |
-65% |
|
30 June 2025 |
4% |
2% |
-12% |
-12% |
-58% |
|
Inception 18 |
3% |
3% |
-10% |
-10% |
-53% |
Redemption Yields as at 30 June 2026 (Ordinary Shares)
|
|
Annualised Ordinary Share Redemption Yields 14 Dividend Growth (per annum) |
|
||||
|
Capital Growth (per annum) |
-20% |
-10% |
0% |
+10% |
+20% |
Terminal NAV 17 |
|
|
------------ |
------------ |
------------ |
------------ |
------------ |
------------ |
|
-20% |
-47% |
-39% |
-31% |
-22% |
-13% |
0p |
|
-10% |
-24% |
-21% |
-17% |
-12% |
-6% |
15p |
|
0% |
-1% |
0% |
2% |
5% |
9% |
68p |
|
+10% |
14% |
15% |
17% |
19% |
21% |
148p |
|
+20% |
27% |
28% |
29% |
31% |
33% |
262p |
Source: Aberforth Partners
Hurdle Rates, Redemption Yields and Final Cumulative Cover, are projected, illustrative and do not represent profit forecasts. There is no guarantee these returns will be achieved.
1-18 Refer to Note 2, Alternative Performance Measurement, and Glossary.
a UK GAAP measure (refer to Glossary)
GOING CONCERN
The Audit Committee has undertaken and documented an assessment of whether it is appropriate for the Company to adopt the going concern basis of accounting. This assessment was for the period of at least 12 months from the date of approval of the financial statements. The Committee reported the results of its assessment to the Board who considered information about the future and concluded that preparation of the financial statements on a going concern basis was appropriate.
The Company’s business activities, capital structure, planned life and borrowing facility, together with the factors likely to affect its development and performance, are set out in the Strategic Report of the Annual Report. In addition, the Annual Report includes the Company’s objectives, policies and processes for managing its capital, its financial risk, details of its financial instruments and its exposures to credit risk, market price risk and liquidity risk. The Company’s assets comprise mainly readily realisable equity securities, which, if necessary, can be sold to meet any funding requirements, though funding flexibility can typically be achieved through the use of the bank overdraft facility. The Company has adequate financial resources to enable it to meet its day-to-day working capital requirements.
DIRECTORS’ RESPONSIBILITY STATEMENT – ANNUAL REPORT AND FINANCIAL STATEMENTS
The Directors who were in office at the date of approving these financial statements, and who are listed on page 40 of the Annual Report, confirm to the best of their knowledge that:
• the financial statements, which have been prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit/loss of the Company;
• the Strategic Report includes a fair review of the development and performance of the business and financial position of the Company, together with a description of the principal risks and uncertainties that it faces; and
• the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for Shareholders to assess the Company’s performance, business model and strategy.
On behalf of the Board
Angus Gordon Lennox
Chairman
29 July 2026
PRINCIPAL RISKS
The Board has overall responsibility for the Company’s risk management and internal control systems and for reviewing their effectiveness. The work on these matters is undertaken by the Audit Committee, which monitors and reports on the effectiveness of the Company’s internal controls and the integrity of its financial records and externally published results. The Audit Committee's on-going work to identify, evaluate and manage the significant risks the Company faces is documented in a risk matrix. The Committee is supported in this work by the Secretaries. Risks are grouped into the following categories: portfolio management; investor relations; regulatory and legal; and financial and operational. Part of that process is to identify the Company’s principal risks, which are the risks in the matrix with the highest risk ratings based on likelihood and impact. They are expected to be relatively consistent from year to year, given the nature of the Company and its business. Any new or emerging risks are also considered as part of the risk assessment process. The Risk Management and Internal Control processes are set out on page 23 of the Annual Report.
The principal risks faced by the Company are summarised below. To indicate the extent to which the principal risks change during the year and the level of monitoring required, each principal risk has been categorised as either a dynamic risk, requiring detailed monitoring as it can change regularly, or a stable risk.
|
Significant fall in capital performance |
|
|
Risk – this is a portfolio management risk |
Mitigation/monitoring |
|
The Company’s investment policy and strategy expose the portfolio to share price movements. The performance of the investment portfolio will be influenced by stock selection, liquidity and market risk (see Market risk below). The Board's aim is to achieve the investment objective by ensuring the investment portfolio is managed in accordance with the policy and strategy. |
The Board has outsourced portfolio management to experienced investment managers with a clearly defined investment philosophy and investment process. The Board receives regular and detailed reports on investment performance and risk. Senior investment representatives of Aberforth Partners attend each Board meeting. This is a dynamic risk, with detailed consideration during the year. The Managers’ Report contains information on portfolio investment performance and risk. |
|
Market risk factors affecting portfolio management and/or investment performance |
|
|
Risk – this is a portfolio management risk |
Mitigation/monitoring |
|
Investment performance is affected by several market risk factors, such as economic, geopolitical, and societal factors, which cause uncertainty about future price movements of investments. The Board delegates consideration of market risk to the Managers to be carried out as part of the investment process. |
The Managers regularly assess the exposure to market risk when making investment decisions and the Board monitors the results via the Managers’ reporting. The Board and Managers closely monitor economic and political developments including the potential effects of climate change (see pages 15 to 17 of the Annual Report). This is a dynamic risk, with detailed consideration during the year. The Managers’ Report contains information on market risk. |
|
Political and taxation changes outside of the Company's control |
|
|
Risk – this is a portfolio management risk |
Mitigation/monitoring |
|
Investment performance is affected by political, regulatory and taxation risk factors, which cause uncertainty about future price movements of investments. |
The Board monitors in conjunction with the Managers the political and tax landscape affecting the Company and takes action if in the best interests of shareholders as a whole. Company advisers provide regular updates. This is a dynamic risk. |
|
Structural conflicts of interest between the objectives of the Ordinary and ZDP Shareholders |
|
|
Risk – this is an investor relations risk |
Mitigation/monitoring |
|
The different rights and expectations of the holders of Ordinary Shares and the holders of ZDP Shares may give rise to conflicts of interest between them. The Company’s investment objective and policy seek to strike a balance between the interests of both classes of Shareholder. There can be no guarantee that such a balance will be achieved and maintained during the life of the Company.
|
The Board is cognisant of this risk and considers both sets of Shareholders; it acts in a manner that it considers fair, reasonable and equitable to both classes of Shareholder. This is a stable risk. |
|
Significant fall in revenue generation from the portfolio |
|
|
Risk – this is a portfolio management risk |
Mitigation/monitoring |
|
A significant fall in investment income could lead to the inability to provide an attractive level of income to Ordinary Shareholders. |
The Board receives regular and detailed reports from the Managers on income performance together with income forecasts. The Board and Managers monitor investment income and it is considered a dynamic risk. |
|
Loss of key investment management personnel |
|
|
Risk – this is an operational and portfolio management risk |
Mitigation/monitoring |
|
The Board believes that a risk exists in the potential loss of key investment personnel at the Managers. |
The Board recognises that the collegiate approach employed by the Managers mitigates this risk. Board members are in regular contact with the partners and staff of the Managers and monitor personnel changes. This is a stable risk. |
|
Failure to comply with fundamental legal, regulatory and reporting obligations |
|
|
Risk – this is a regulatory and legal risk |
Mitigation/monitoring |
|
Breach of regulatory rules could lead to suspension of the Company’s share price listings, financial penalties or a qualified audit report. Breach of Section 1158 of the Corporation Tax Act 2010 could lead to the Company losing investment trust status and, as a consequence, any capital gains would then be subject to tax. |
The Board reviews regular reports from the Secretaries to monitor compliance with regulations. This is a stable risk. |
|
Cyber risk |
|
|
Risk – this is an operational risk |
Mitigation/monitoring |
|
The Company and/or Managers could be subject to a cyber risk event, impairing operational systems and the Company's information they contain, thereby negatively affecting Shareholders or other stakeholders.
|
The Board oversees the Managers’ and other service providers’ cyber security controls via external control reports and Board update papers. This is a dynamic risk. |
The Income Statement, Reconciliation of Movements in Shareholders’ Funds, Balance Sheet and Cash Flow Statement are set out below.
INCOME STATEMENT
For the year to 30 June 2026
(audited)
|
|
Year to 30 June 2026 |
Period to 30 June 2025 |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
|
|
Net losses on investments |
- |
(1,284) |
(1,284) |
- |
(1,062) |
(1,062) |
|
Investment income |
8,319 |
248 |
8,567 |
7,879 |
- |
7,879 |
|
Other income |
23 |
- |
23 |
174 |
- |
174 |
|
Investment management fee (Note 3) |
(325) |
(760) |
(1,085) |
(320) |
(746) |
(1,066) |
|
Portfolio transaction costs |
- |
(187) |
(187) |
- |
(847) |
(847) |
|
Other expenses |
(399) |
- |
(399) |
(369) |
- |
(369) |
|
|
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
|
Net return before finance costs |
7,618 |
(1,983) |
5,635 |
7,364 |
(2,655) |
4,709 |
|
and tax |
|
|
|
|
|
|
|
Finance costs: |
|
|
|
|
|
|
|
Appropriation to ZDP Shares (Note 8) |
- |
(3,060) |
(3,060) |
- |
(2,859) |
(2,859) |
|
Interest expense and overdraft fee |
(2) |
(3) |
(5) |
(1) |
(4) |
(5) |
|
|
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
|
|
|
|
|
|
|
|
|
Return on ordinary activities |
7,616 |
(5,046) |
2,570 |
7,363 |
(5,518) |
1,845 |
|
before tax |
|
|
|
|
|
|
|
Tax on ordinary activities |
- |
- |
- |
(6) |
- |
(6) |
|
|
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
|
Return attributable to |
|
|
|
|
|
|
|
Equity Shareholders |
7,616 |
(5,046) |
2,570 |
7,357 |
(5,518) |
1,839 |
|
|
====== |
======= |
======= |
====== |
======= |
======= |
|
|
|
|
|
|
|
|
|
Return per Ordinary Share (Note 5) |
7.10p |
(4.70)p |
2.39p |
6.85p |
(5.14)p |
1.71p |
The Board declared on 29 July 2026 a second interim dividend of 3.69p per Ordinary Share and a special dividend of 0.85p per Ordinary Share. The Board also declared on 27 January 2026 a first interim dividend of 1.56p per Ordinary Share.
The total column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. A Statement of Comprehensive Income is not required as all gains and losses of the Company have been reflected in the above statement.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
For the year to 30 June 2026
(audited)
|
|
|
|
|
|
|
|
|
Share |
Special |
Capital |
Revenue |
|
|
|
capital |
reserve |
reserve |
reserve |
Total |
|
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
|
Balance as at 30 June 2025 |
1,073 |
105,621 |
(5,518) |
5,747 |
106,923 |
|
Return on ordinary activities after tax |
- |
- |
(5,046) |
7,616 |
2,570 |
|
Equity dividends paid (Note 4) |
- |
- |
- |
(6,343) |
(6,343) |
|
|
-------- |
-------- |
-------- |
-------- |
-------- |
|
Balance as at 30 June 2026 |
1,073 |
105,621 |
(10,564) |
7,020 |
103,150 |
|
|
====== |
====== |
====== |
====== |
====== |
Period from 29 March 2024 to 30 June 2025
(audited)
|
|
|
|
|
|
|
|
|
|
Share |
Share |
Special |
Capital |
Revenue |
|
|
|
capital |
premium |
reserve |
reserve |
reserve |
Total |
|
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
|
|
Balance as at 29 March 2024 |
- |
- |
- |
- |
- |
- |
|
Return on ordinary activities after tax |
- |
- |
- |
(5,518) |
7,357 |
1,839 |
|
Equity dividends paid (see Note 4) |
- |
- |
- |
- |
(1,610) |
(1,610) |
|
Issue of Ordinary Shares |
1,073 |
106,258 |
- |
- |
- |
107,331 |
|
Ordinary Share issue costs |
- |
(592) |
- |
- |
- |
(592) |
|
Share Premium cancellation |
- |
(105,621) |
105,621 |
- |
- |
- |
|
Cost of Share Premium cancellation |
- |
(45) |
- |
- |
- |
(45) |
|
Issue of redeemable Shares |
50 |
- |
- |
- |
- |
50 |
|
Redemption of redeemable Shares |
(50) |
- |
- |
- |
- |
(50) |
|
|
-------- |
-------- |
-------- |
-------- |
-------- |
-------- |
|
Balance as at 30 June 2025 |
1,073 |
- |
105,621 |
(5,518) |
5,747 |
106,923 |
|
|
====== |
====== |
====== |
====== |
====== |
====== |
BALANCE SHEET
As at 30 June 2026
(audited)
|
|
30 June 2026 |
30 June 2025 |
|
|
£’000 |
£’000 |
|
Fixed assets |
|
|
|
Investments at fair value through profit or loss (Note 6) |
146,953 |
147,998 |
|
|
---------- |
---------- |
|
Current assets |
|
|
|
Debtors |
1,561 |
716 |
|
Cash at bank |
520 |
1,049 |
|
|
---------- |
---------- |
|
|
2,081 |
1,765 |
|
Creditors (amounts falling due within one year) |
(93) |
(109) |
|
|
---------- |
---------- |
|
Net current assets |
1,988 |
1,656 |
|
|
---------- |
---------- |
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
148,941 |
149,654 |
|
Creditors (amounts falling due after more than one year) |
|
|
|
ZDP Shares (Note 8) |
(45,791) |
(42,731) |
|
|
---------- |
---------- |
|
TOTAL NET ASSETS |
103,150 |
106,923 |
|
|
======= |
======= |
|
Capital and Reserves: Equity Interests |
|
|
|
Share capital: |
|
|
|
Ordinary Shares (Note 9) |
1,073 |
1,073 |
|
Reserves: |
|
|
|
Special reserve |
105,621 |
105,621 |
|
Capital reserve |
(10,564) |
(5,518) |
|
Revenue reserve |
7,020 |
5,747 |
|
|
---------- |
---------- |
|
TOTAL SHAREHOLDERS’ FUNDS |
103,150 |
106,923 |
|
|
======= |
======= |
|
Net Asset Value per Ordinary Share (Note 7) |
96.10p |
99.62p |
|
Net Asset Value per ZDP Share (Note 7) |
113.77p |
106.17p |
CASH FLOW STATEMENT
For the year to 30 June 2026
(audited)
|
|
Year to 30 June 2026 |
Period to 30 June 2025 |
||
|
|
|
£’000 |
|
£’000 |
|
Operating activities |
|
|
|
|
|
Net revenue before finance costs and tax |
|
7,618 |
|
7,364 |
|
Tax (withheld) from income |
|
- |
|
(6) |
|
Receipt of special and overseas dividends taken to capital |
|
248 |
|
- |
|
Investment management fee charged to capital (Note 3) |
|
(760) |
|
(746) |
|
(Increase) in debtors |
|
(494) |
|
(711) |
|
Increase in creditors |
|
15 |
|
78 |
|
|
|
-------- |
|
-------- |
|
Cash inflow from operating activities |
|
6,627 |
|
5,979 |
|
|
|
===== |
|
===== |
|
Investing activities |
|
|
|
|
|
Purchases of investments |
|
(31,741) |
|
(33,742) |
|
Sales of investments |
|
30,933 |
|
16,608 |
|
|
|
-------- |
|
-------- |
|
Cash (outflow) from investing activities |
|
(808) |
|
(17,134) |
|
|
|
===== |
|
===== |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from issue of Ordinary Shares (Note 9) |
|
- |
|
2,651 |
|
Proceeds from issue of ZDP Shares (Note 9) |
|
- |
|
12,182 |
|
Share issue costs paid |
|
- |
|
(969) |
|
Share premium cancellation costs paid |
|
- |
|
(45) |
|
Equity dividends paid (Note 4) |
(6,343) |
|
(1,610) |
|
|
Interest and fees paid |
|
(5) |
|
(5) |
|
|
|
-------- |
|
-------- |
|
Cash (outflow)/inflow from financing activities |
|
(6,348) |
|
12,204 |
|
|
|
===== |
|
===== |
|
|
|
|
|
|
|
Change in cash during the year |
|
(529) |
|
1,049 |
|
|
|
===== |
|
===== |
|
Cash at the start of the year |
|
1,049 |
|
- |
|
Cash at the end of the year |
|
520 |
|
1,049 |
|
|
|
====== |
|
====== |
SUMMARY NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been presented under Financial Reporting Standard 102 (FRS 102) and the AIC’s Statement of Recommended Practice “Financial Statements of Investment Trust Companies and Venture Capital Trusts” (SORP). The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include the revaluation of the Company’s investments as described below. The Directors’ assessment of the basis of going concern is described on page 30 of the Annual Report. The functional and presentation currency is pounds sterling, which is the currency of the environment in which the Company operates. The Board confirms that no significant accounting judgements or estimates have been applied to the financial statements and therefore there is not a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. Given the nature of the Company, the Board does not consider climate change material to the presentation of the financial statements.
2. ALTERNATIVE PERFORMANCE MEASURES
Alternative Performance Measures (APMs) are measures that are not defined under the requirements of FRS 102. The Company believes that APMs, referred to within the “Financial Highlights” section of this announcement, provide Shareholders with important information on the Company. These APMs are also a component of the internal management reporting to the Board. A glossary of the APMs can be found at the end of this announcement and on page 64 of the Annual Report.
3. INVESTMENT MANAGEMENT FEE
The Managers, Aberforth Partners LLP, receive an annual management fee, payable quarterly in advance, equal to 0.75% of the Company’s Total Assets. The management fee is allocated 70% to capital reserves and 30% to revenue reserves.
4. DIVIDENDS PAID
|
|
Year to 30 June 2026 £’000 |
Period ended 30 June 2025 £’000 |
|
Amounts recognised as distributions to equity holders in the year: |
||
|
First interim dividend for period to 30 June 2025 of 1.50p (paid on 10 March 2025) |
- |
1,610 |
|
Second interim dividend for period to 30 June 2025 of 3.50p (paid on 28 August 2025) |
3,757 |
- |
|
Special dividend for period to 30 June 2025 of 0.85p (paid on 28 August 2025) |
912 |
- |
|
First interim dividend for year to 30 June 2026 of 1.56p (paid on 9 March 2026) |
1,674 |
- |
|
|
------------ |
------------ |
|
Total |
6,343 |
1,610 |
|
|
------------ |
------------ |
The second interim dividend for the year to 30 June 2026 of 3.69p per Ordinary Share, and the special dividend for the year to 30 June 2026 of 0.85p per Ordinary Share, both payable on 27 August 2026, have not been recognised in the financial statements as at 30 June 2026. Deducting the second interim dividend and special dividend from the Company's revenue reserves at 30 June 2026 leaves revenue reserves equivalent to 2.00p per Ordinary Share.
5. RETURN PER SHARE
|
|
Year to 30 June 2026 |
Period ended 30 June 2025 |
|
Ordinary Shares Total Return attributable to Ordinary Shares |
£2,570,000 |
£1,839,000 |
|
Weighted average Ordinary Shares in issue during the year |
107,331,000 |
107,331,000 |
|
Return per Ordinary Share |
2.39p |
1.71p |
|
|
|
|
|
ZDP Shares |
|
|
|
Appropriation to ZDP Shares for the year |
£3,060,000 |
£2,859,000 |
|
Weighted average ZDP Shares in issue during the year |
40,249,000 |
40,249,000 |
|
Return per ZDP Share |
7.60p |
7.10p |
There are no dilutive or potentially dilutive shares in issue.
6. INVESTMENTS HELD AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
Year to 30 June 2026 £’000 |
Period ended 30 June 2025 £’000 |
|
Investments at fair value through profit or loss |
|
|
|
Opening fair value |
147,998 |
- |
|
Opening fair value adjustment |
3,804 |
- |
|
|
------------ |
------------ |
|
Opening book cost |
151,802 |
- |
|
Purchases at cost (before expenses) |
31,552 |
165,600 b |
|
Sale proceeds (before expenses) |
(31,313) |
(16,633) |
|
Realised gains on sales |
5,678 |
2,835 |
|
|
------------ |
------------ |
|
Closing book cost |
157,719 |
151,802 |
|
Closing fair value adjustment |
(10,766) |
(3,804) |
|
|
------------ |
------------ |
|
Closing fair value |
146,953 |
147,998 |
|
|
------------ |
------------ |
b Includes £128.2m in respect of an in specie transfer of securities from Aberforth Split Level Income Trust plc on launch.
All investments are in ordinary shares listed on the London Stock Exchange.
|
|
Year to 30 June 2026 £’000 |
Period ended 30 June 2025 £’000 |
|
Gains/(losses) on investments: |
|
|
|
Net realised gains on sales |
5,678 |
2,835 |
|
Market value loss on transactions in period from 21 June 2024 to 28 June 2024 (see note 9) |
- |
(93) |
|
Movement in fair value adjustment |
(6,962) |
(3,804) |
|
|
------------ |
------------ |
|
Net losses on investments |
(1,284) |
(1,062) |
|
|
------------ |
------------ |
In accordance with FRS 102, fair value measurements have been classified using the fair value hierarchy:
Level 1 - using unadjusted quoted prices for identical instruments in an active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is unavailable).
All investments are held at fair value through profit or loss, have been classified as Level 1 and are traded on a recognised stock exchange.
7. NET ASSET VALUE (“NAV”) PER SHARE
The Net Assets and the Net Asset Value per share attributable to the Ordinary Shares and ZDP Shares are as follows.
|
|
|
30 June 2026 |
||||
|
|
|
|
|
Ordinary Shares |
ZDP Shares |
Total |
|
Net assets attributable |
|
|
|
£103,150,000 |
£45,791,000 |
£148,941,000 |
|
Number of Shares at the reporting date |
|
|
|
107,331,000 |
40,249,000 |
147,580,000 |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share (a) |
|
|
|
96.10p |
113.77p |
100.92p |
|
Dividend reinvestment factor 8 (b) |
|
|
|
1.079689 |
- |
1.055680 |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share on a total return basis at the end of the period (c) = (a) x (b) |
|
|
|
103.76p |
113.77p |
106.54p |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share on a total return basis at the start of the year(d) |
|
|
|
101.27p |
106.17p |
102.58p |
|
|
|
|
|
------------ |
------------ |
------------ |
|
Total Return performance (c) / (d) - 1 |
|
|
|
2.5% |
7.2% |
3.9% |
|
|
|
|
|
------------ |
------------ |
------------ |
|
|
|
30 June 2025 |
||||
|
|
|
|
|
Ordinary Shares |
ZDP Shares |
Total |
|
Net assets attributable |
|
|
|
£106,923,000 |
£42,731,000 |
£149,654,000 |
|
Number of Shares at the reporting date |
|
|
|
107,331,000 |
40,249,000 |
147,580,000 |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share (a) |
|
|
|
99.62p |
106.17p |
101.41p |
|
Dividend reinvestment factor 8 (b) |
|
|
|
1.016535 |
- |
1.011587 |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share on a total return basis at the end of the period (c) = (a) x (b) |
|
|
|
101.27p |
106.17p |
102.58p |
|
|
|
|
|
------------ |
------------ |
------------ |
|
NAV per Share on a total return basis at Inception (d) |
|
|
|
100.00p |
100.00p |
100.00p |
|
|
|
|
|
------------ |
------------ |
------------ |
|
Total Return performance in the period since Inception (c) / (d) - 1 |
|
|
|
1.3% |
6.2% |
2.6% |
|
|
|
|
|
------------ |
------------ |
------------ |
Total returns in the period to 30 June 2025 are from the Company's inception on 28 June 2024. Total return performance since Launch reflects performance subsequent to the charging of the costs of the Launch. From Launch to 30 June 2026, the Total Assets Total Return performance is 8.4% and the Ordinary Share NAV Total Return is 5.9%, both excluding the one-off Launch costs (see note 9). The ZDP Share NAV, on an Articles basis, at 30 June 2026 was 114.48p and the ZDP Share NAV Total Return performance in the period on an Articles basis, equivalent to the gross redemption yield at Issue, was 7.0%.
8. ZERO DIVIDEND PREFERENCE SHARES
|
|
|
30 June 2026 £’000 |
30 June 2025 £’000 |
|
Opening Balance |
|
42,731 |
|
|
Issue of ZDP Shares |
|
- |
40,249 |
|
Capitalisation of issue costs of ZDP Shares |
|
- |
(377) |
|
Issue costs amortised during the year |
|
47 |
43 |
|
Capital growth of ZDP Shares (appropriation) |
|
3,013 |
2,816 |
|
|
|
------------ |
------------ |
|
Closing Balance |
|
45,791 |
42,731 |
|
|
|
------------ |
------------ |
Expenses of £377,000 associated with the issue of the ZDP Shares have been capitalised. These will be amortised over the expected life of the ZDP Shares and charged to capital as a finance cost within the Income Statement.
9. SHARE CAPITAL
|
|
30 June 2026 |
30 June 2025 |
||
|
Issued and Allotted: |
No. of Shares |
£’000 |
No. of Shares |
£’000 |
|
Ordinary Shares of 1p each |
107,331,000 |
1,073 |
107,331,000 |
1,073 |
|
ZDP Shares of 1p each |
40,249,000 |
402 |
40,249,000 |
402 |
|
|
----------------- |
------------ |
----------------- |
------------ |
|
Total issued and allotted |
147,580,000 |
1,475 |
147,580,000 |
1,475 |
|
|
----------------- |
------------ |
----------------- |
------------ |
Upon incorporation on 29 March 2024, the Company issued and allotted 100 Ordinary Shares at £1 each. On 25 April 2024, 50,000 Redeemable Preference Shares were issued and allotted to enable the Company to obtain a trading certificate.
The Company acted as the rollover option for the existing shareholders of Aberforth Split Level Income Trust plc (“ASLIT”) in connection with the recommended proposals for the scheme of reconstruction and winding up of ASLIT (the “Scheme”). ASLIT was a closed-ended, split capital investment trust, with a similar investment policy, managed by Aberforth Partners LLP. ASLIT was wound up on 30 June 2024, its planned winding-up date.
On 28 June 2024, the Company entered into a Transfer Agreement in connection with the scheme of reconstruction and winding-up of ASLIT. Under this Transfer Agreement, a proportion of the assets of ASLIT were transferred to AGVIT as consideration for the issue of Ordinary and ZDP Shares to shareholders of ASLIT who elected to roll over their investment in ASLIT to AGVIT. The calculation date of 21 June 2024 was used for valuing ASLIT's assets transferred to AGVIT.
On 28 June 2024, 104,680,290 Ordinary Shares and 28,066,949 ZDP Shares were allotted to the shareholders of ASLIT who elected to roll over their investment in ASLIT to AGVIT at the issue price of £1 each. Assets amounting to £132.7 million were transferred from ASLIT in consideration for this allotment, including securities valued at £128.2 million.
In addition, 2,650,710 Ordinary Shares and 12,182,051 ZDP Shares were allotted to satisfy the demand of the Placing and Offer for Subscription at the issue price of £1 each. The proceeds of these issues were used to acquire securities for the Company’s investment portfolio. These allotments resulted in the Company having a total of 107,331,000 Ordinary Shares and 40,249,000 ZDP Shares, which were admitted to listing on the Official List and to trading on the London Stock Exchange on 1 July 2024. In addition, the 50,000 Redeemable Preference Shares were redeemed in full on 3 December 2024.
In November 2024, the High Court of Justice confirmed the cancellation of the entire amount standing to the credit of the Share Premium account and the creation of a Special Reserve, the balance of which may be treated as distributable profits for all purposes as permitted by the Articles of the Company. The Special Reserve will be available to be used for any buy-back of Ordinary Shares and ZDP Shares as permitted by the Companies Act 2006 and in accordance with the Company’s Articles of Association.
Costs of £592,000 associated with the issue of the Ordinary Shares, net of an Aberforth Partners LLP cost contribution of £450,000, have been charged to the Share Premium account. Costs of £377,000 associated with the issue of the ZDP Shares will be amortised to capital as a finance cost in the Income Statement over the planned life of the ZDP Shares. Stamp duty amounting to £602,000 was also paid in relation to the transfer of securities from ASLIT to AGVIT under the Transfer Agreement, as detailed above. This cost is included in portfolio transaction costs as disclosed in the Income Statement.
Further details of the rights and responsibilities of the Ordinary and ZDP Shareholders are available in the Prospectus dated 28 May 2024 and the Company’s 2025 Annual Report, which are available on the Managers’ website www.aberforth.co.uk.
10. Financial instruments and risk management
The Company’s financial instruments comprise its investment portfolio, cash balances, ZDP Shares, debtors and creditors that arise directly from its operations such as sales and purchases awaiting settlement, and investment income receivable. Note 1 to the financial statements contained in the Annual Report sets out the significant accounting policies, including criteria for recognition and the basis of measurement applied for significant financial instruments excluding cash at bank, which is carried at fair value. Note 1 to the financial statements contained in the Annual Report also includes the basis on which income and expenses arising from financial assets and liabilities are recognised and measured.
The main risks that the Company faces arising from its financial instruments are as follows.
(i) Market price risk is the risk that the market value of investment holdings will fluctuate as a result of changes in market prices caused by factors other than interest rate or currency rate movement.
(ii) Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company.
(iii) Liquidity risk is the risk that the Company will encounter difficulty raising funds to meet its cash commitments as they fall due. Liquidity risk may result from either the inability to sell financial instruments quickly at their fair values or from the inability to generate cash inflows as required.
(iv) Interest rate risk is the risk that the interest receivable/payable and the market value of investment holdings may fluctuate because of changes in market interest rates. The Company’s investment portfolio is currently not directly exposed to interest rate risk. The Company’s policy is to hold cash in variable rate bank accounts.
The Company’s financial instruments are all denominated in sterling and therefore the Company is not directly exposed to significant currency risk. However, it is recognised that most investee companies, whilst listed in the UK, will be exposed to global economic conditions and currency fluctuations. For more information on the financial instruments and risk management, see note 19 to the financial statements contained in the Annual Report.
11. RELATED PARTY TRANSACTIONS
The Directors have been identified as related parties and their fees and interests have been disclosed in the Directors’ Remuneration Report contained in the Annual Report on pages 40 and 41. During the year, no Director or entity controlled by a Director was interested in any contract or other matter requiring disclosure under section 412 of the Companies Act 2006.
12. FURTHER INFORMATION
The foregoing do not constitute statutory accounts (as defined in section 434(3) of the Companies Act 2006) of the Company. The statutory accounts for the year to 30 June 2026, which contained an unqualified Report of the Auditors, will be lodged with the Registrar of Companies and did not contain a statement required under section 498(2) or (3) of the Companies Act 2006.
Certain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Accordingly, undue reliance should not be placed on forward looking statements.
The Annual Report is expected to be posted to shareholders by 6 August 2026. Members of the public may obtain copies from Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3 7NS or from its website: www.aberforth.co.uk . A copy will also shortly be available for inspection at the National Storage Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Glossary of UK GAAP Measures
Net Asset Value, also described as Shareholders’ Funds, is the value of total assets less all liabilities. The Net Asset Value or NAV per Ordinary Share is calculated by dividing this amount by the total number of Ordinary Shares in issue.
Net Asset Value (ZDP Share) is the value of the entitlement to the ZDP Shareholders. The Net Asset Value or NAV per ZDP Share is calculated by dividing this amount by the total number of ZDP Shares in issue.
Glossary of Alternative Performance Measures
1. Total Assets Total Return represents the return of the combined funds of the Ordinary Shareholders and ZDP Shareholders assuming that dividends paid to Ordinary Shareholders were reinvested at the NAV per Ordinary Share at the close of business on the day the Ordinary Shares were quoted ex dividend. Total Assets less current liabilities as at 30 June 2026 were £148,941,000 (2025: £149,654,000) and the total number of shares in issue (Ordinary Shares plus ZDP Shares) was 147,580,000 (2025: 147,580,000) producing a Total Assets per Share of 100.92p (2025: 101.41p). Multiplying by the dividend reinvestment factor of 1.055680 (2025: 1.011587) results in a Total Assets per Share on a Total Return basis of 106.54p (2025: 102.58p). The Total Assets Total Return was therefore 3.9% (2025: 2.6%), being the sum of the Total Assets per Share at the end of the year, multiplied by the dividend reinvestment factor divided by the Total Assets per Share calculated on a total return basis at the start of the year, expressed as a percentage (see note 7).
2. Ordinary Share NAV Total Return represents the theoretical return on the NAV per Ordinary Share, assuming that dividends paid to Shareholders were reinvested at the NAV per Ordinary Share at the close of business on the day the shares were quoted ex dividend. The NAV per Ordinary Share as at 30 June 2026 was 96.10p (2025: 99.62p) and the dividend reinvestment factor was 1.079689 (2025: 1.016535). The Ordinary Share NAV Total Return was therefore 2.5% (2025: 1.3%), being the Ordinary Share NAV at the end of the year, multiplied by the dividend reinvestment factor divided by the Ordinary Share NAV calculated on a total return basis at the start of the year, expressed as a percentage (see note 7). The Ordinary Share NAV Total Returns since Launch and Inception are calculated in the same way, except Launch excludes the one off costs associated with the Launch of the Company, whereas Inception includes these costs.
3. ZDP Share NAV Total Return represents the return on the entitlement value of a ZDP Share. The ZDP Share NAV, on an Accounts basis, as at 30 June 2026 was 113.77p (2025: 106.17p). The ZDP Share NAV Total Return, on an Accounts basis, was therefore 7.2% (2025: 6.2%), being the ZDP Share NAV at the end of the year divided by the ZDP Share NAV at the start of the year, expressed as a percentage. The Accounts basis capitalises the expenses associated with the issue of the ZDP Shares and amortises them over the expected life of the ZDP Shares. The ZDP Share NAV, on an Articles basis, at 30 June 2026 was 114.48p (2025: 107.00p) and the ZDP Share NAV Total Return in the year on an Articles basis, equivalent to the gross redemption yield at issue, was 7.0%. (see notes 7 and 8).
4. Ordinary Share Price Total Return represents the theoretical return to an Ordinary Shareholder, on a closing market price basis, assuming that all dividends received were reinvested, without transaction costs, into the Ordinary Shares of the Company at the close of business on the day the shares were quoted ex dividend. The Ordinary Share price as at 30 June 2026 was 88.25p (2025: 83.50p) and the dividend reinvestment factor was 1.092781 (2025: 1.020270). The Ordinary Share Price Total Return was therefore 13.2% (2025: -14.8%), being the Ordinary Share price at the end of the year, multiplied by the dividend reinvestment factor divided by the Ordinary Share price calculated on a total return basis at the start of the year, expressed as a percentage.
5. ZDP Share Price Total Return represents the theoretical return to a ZDP Shareholder, on a closing market price basis. The ZDP Share price as at 30 June 2026 was 117.0p (2025: 108.0p). The ZDP Share Price Total Return was therefore 8.3% (2025: 8.0%), being the ZDP Share price at the end of the year divided by the ZDP Share price at the start of the year.
6. Discount is the amount by which the stockmarket price per Share is lower than the NAV per Share. The discount is normally expressed as a percentage of the NAV per Share.
7. Premium is the amount by which the stockmarket price per Share exceeds the NAV per Share. The premium is normally expressed as a percentage of the NAV per Share.
Other Glossary Terms
8. Dividend Reinvestment Factor is used to calculate total return performance by including the effect of dividends from the Company. It is calculated on the assumption that dividends paid by the Company were reinvested into Ordinary Shares of the Company at the NAV per Ordinary Share or the share price, as appropriate, on the day the Ordinary Shares were quoted ex dividend.
9. ZDP:Equity Gearing Ratio is calculated by dividing the asset value attributable to the ZDP Shares by the asset value attributable to the Ordinary Shares.
10. Hurdle Rate is the rate of capital growth per annum in the Company’s investment portfolio to return a stated amount per Share at the planned winding-up date.
11. Ongoing Charges represents the total cost of investment management fees and other expenses of £1,484,000 (2025: £1,435,000), as disclosed in the Income Statement, as a percentage of the average published net asset value attributable to the Ordinary Shares of £102,054,000 (2025: £101,628,000) over the period, and are calculated in accordance with the guidelines issued by the AIC.
12. Portfolio Turnover is calculated by summing the lesser of purchases and sales over the relevant period divided by the average portfolio value for that period.
13. Projected Final Cumulative Cover is the ratio of the total assets of the Company, as at the calculation date, to the sum of the assets required to pay the final capital entitlement of 160.58p per ZDP Share on the planned winding-up date, future estimated investment management fees charged to capital, and estimated winding-up costs.
14. Redemption Yield (Ordinary Share) is the annualised rate at which projected future income and capital cash flows (based on assumed future capital/dividend growth rates) are discounted to produce an amount equal to the share price at the date of calculation.
15. Gross Redemption Yield (ZDP Share) is the annualised rate at which the planned future payment of capital is discounted to produce an amount equal to the price at the date of calculation.
16. Retained Revenue Reserves per Share is a cumulative figure of revenue earned but not distributed and is calculated after accounting for dividends paid by the Company, including those not yet recognised in the financial statements.
17. Terminal NAV (Ordinary Share) is the projected NAV per Ordinary Share at the planned winding-up date at a stated rate of capital growth in the Company’s investment portfolio after taking into account the final capital entitlement of the ZDP Shares, future estimated costs charged to capital, and estimated winding-up costs.
18. Key Dates
Company Incorporation Date is 29 March 2024.
Inception Date is 28 June 2024. When reporting performance, "since inception" refers to periods since 28 June 2024 and reflects the impact of certain one off costs associated with the launch of the Company.
Launch/Listing Date is 1 July 2024. When reporting performance, "since launch" refers to periods since 1 July 2024 and excludes the one off costs associated with the launch of the Company.
Planned Winding-Up Date is 30 June 2031.
CONTACT:
Euan Macdonald / Peter Shaw, Aberforth Partners LLP, 0131 220 0733
Aberforth Partners LLP
Managers and Secretaries
ANNOUNCEMENT ENDS
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