Annual Financial Report
Summary by AI BETAClose X
JANUS HENDERSON FUND MANAGEMENT UK LIMITED
THE NORTH AMERICAN INCOME TRUST PLC
Legal Entity Identifier (LEI): 5493007GCUW7G2BKY360
24 April 2026
THE NORTH AMERICAN INCOME TRUST PLC
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 JANUARY 2026
This announcement contains regulated information
INVESTMENT OBJECTIVE
To provide investors with above average dividend income and long-term capital growth through active management of a portfolio consisting predominantly of S&P 500 US equities.
PERFORMANCE HIGHLIGHTS
|
|
Year ended 31 January 2026 |
Year ended 31 January 2025 |
|
NAV per share total return1,4 |
8.8% |
23.8% |
|
Share price total return2,4 |
13.8% |
24.9% |
|
Russell 1000 Value Index total return (in Sterling terms) |
4.9% |
22.5% |
|
S&P High Yield Dividend Aristocrats Index total return (in Sterling terms) |
3.1% |
14.9% |
|
NAV per share at year end with debt at fair value3,4 |
402.8p |
382.5p |
|
NAV per share at year end with debt at par3,4 |
399.5p |
379.2p |
|
Share price at year end |
380.0p |
347.0p |
|
Discount at year end with debt at fair value 3,4 |
5.7% |
9.3% |
|
Discount at year end with debt at par 3,4 |
4.9% |
8.5% |
|
Revenue return per share |
12.89p |
12.44p |
|
Dividend total per share5 |
12.80p |
12.20p |
|
Dividend yield at the end of the year4,5 |
3.4% |
3.5% |
|
Dividend growth for the year5 |
4.9% |
4.3% |
|
Net assets at year end |
£458.3m |
£467.8m |
|
Ongoing charges4 |
0.73% |
0.77% |
Total Return Performance to 31 January 2026
|
|
1 year % |
3 years % |
5 years % |
10 years % |
|
NAV per share1,4 |
8.8 |
32.9 |
87.3 |
199.3 |
|
Share price2 |
13.8 |
40.8 |
98.8 |
234.9 |
|
Russell 1000 Value Index (in Sterling terms) |
4.9 |
31.8 |
80.6 |
210.2 |
|
S&P High Yield Dividend Aristocrats Index (in Sterling terms) |
3.1 |
12.6 |
63.9 |
197.3 |
|
1 |
Total return is calculated based on the published NAV per ordinary share with debt at fair value and with dividends reinvested, excluding reinvestment cost |
|
2 |
Share price using mid-market closing prices |
|
3 |
NAV per share with dividends reinvested, excluding reinvestment costs, and discount shown with debt at fair value. NAV per share with dividends reinvested, excluding reinvestment costs, and discount with debt at par were 399.5p (2025: 379.2p) and 4.9% (2025: 8.5%) respectively |
|
4 |
An explanation of the alternative performance measures can be found in the Annual Report |
|
5 |
Based on the dividends paid or recommended for the year, including the fourth interim dividend of 4.4p per share |
Sources: Morningstar Direct, Janus Henderson Investors, LSEG Datastream
CHAIRMAN'S STATEMENT
For the Company's financial year ended 31 January 2026, I am pleased to report that NAIT outperformed both reference indices with a net asset value per share total return of 8.8% against the Russell 1000 Value Index (in Sterling terms) of 4.9% and S&P High Yield Dividend Aristocrats Index (in Sterling terms) which returned 3.1%. Since Janus Henderson Investors took responsibility for managing the portfolio of NAIT on 1 August 2024 (to 31 January 2026), those figures are 20.9%, 15.8% and 7.9% respectively.
Despite not offering the highest yield in the universe of income trusts, NAIT has provided steady growth in dividends, uninterrupted even in 2020, and has compounded its total NAV return at 11.6% over the last 10 years. The year ended 31 January 2026 continued to be a busy year for the Board and we highlight some of the board matters that we have been debating over the last year in the Annual Report.
Performance
While NAIT is still early in its investment journey with Janus Henderson Investors, the Board is very encouraged by last year's performance and pleased with how the relationship with Janus Henderson Investors is evolving.
We highlighted the strong relative performance in net asset value per share above. The share price total return performance was even better, rising 13.8%, helped by a narrowing of the discount from 9.3% at the beginning of the financial year to 5.7% with debt calculated at fair value at the end of the period (or, with debt calculated at par, from 8.5% at the beginning of the financial year to 4.9%). This performance was despite a significant decline in the dollar of roughly 10% (GBP to US$ starting at 1.24 on 31 January 2025 and finishing on 31 January 2026 at 1.37). NAIT does not typically hedge its dollar exposure so dollar weakness directly translates to Sterling holders. However, in recent years, the US$ has generally been a help to the revenue reserves.
The bulk of the outperformance came from stock selection in a wide variety of industries. The broader market continued to be driven by large capitalisation technology stocks that were associated with the prospects of the AI revolution. The Fund Managers were able to take advantage of some share price dislocations during the tariff uncertainties in April 2025 and the Fund Managers go into more detail in their commentary.
Earnings, dividends and buybacks
Revenue reserves before the fourth dividend rose to 20.2p per share up from 18.4p in the prior year. The Company's revenue return per share was 12.9p compared to last year's 12.4p per share.
NAIT has so far delivered 15 years of increasing dividends per share. The Board is pleased to note the Company's next generation dividend hero status. Revenue reserves continue to be over one year and are there to support dividend increases should the need arise. When determining the level of dividend, the Board, in conjunction with the Manager, takes into account the Manager's forecast for the growth in dividends at the individual company level and possible changes in the currency and other macro factors. The Board is pleased to declare a fourth interim dividend of 4.4p per share, resulting in total dividends for the year ended 31 January 2026 of 12.8p per share (2025: 12.2p), an increase of 4.9% on the prior year. The fourth interim dividend will be paid on 27 May 2026 to shareholders on the register on 8 May 2026. The share price will be quoted ex-dividend on 7 May 2026. The dividend yield on the portfolio is approximately 3.4% at that level.
In the year to 31 January 2026, 8,627,316 shares were bought back which added 4.2p per share to the NAV. As previously mentioned, the discount has declined from 9.3% at the beginning of the financial year to 5.7% at the end of the year (or, with debt calculated at par, from 8.5% at the beginning of the financial year to 4.9%).
You will see in the Notice of Meeting for the 2026 AGM that the Board is proposing special resolutions in relation to the cancellation of the share premium account and the capital redemption reserve. The share premium account was created through the issuance of new shares and there is currently £51.8m held in this reserve. The capital redemption reserve was created through the buyback of shares and there is currently £16.3m held in this reserve. Cancelling these two reserves will create greater distributable reserves and provide more flexibility for the Company in how it might deploy its capital. Initiatives such as these are seen as good 'housekeeping'. More information can be found in the explanation of resolutions in the Notice of Meeting as set out in the Annual Report.
Board matters
Over the last year, the Board spent considerable time debating the level of buybacks, the amount of dividend increase, the marketing strategy and budget, and importantly NAIT's dollar exposure. More information on these discussions and other matters discussed by the Board during the year can be found in the Annual Report.
The Board also focused on succession planning. Bulbul Barrett, as announced in December 2024, was appointed to the Board with effect from 1 May 2025 and was elected by shareholders in June 2025 at the Company's AGM. John Adebiyi joined the Board on 1 October 2025 and a resolution regarding his election to the Board will be put to shareholders at the AGM in June 2026.
After nine years at NAIT, best corporate governance practice dictates that I will step down as Chairman of the Board at the AGM in June. As announced in February 2026, I am very pleased to inform you that Patrick Edwardson will assume the role of Chairman of the Board of NAIT. Patrick is currently the Senior Independent Director of NAIT. The rest of the Board undertook a thorough review to identify the best candidate. I know that Patrick, having been through the entire transition to Janus Henderson Investors and with his background and experience, is the ideal choice of Chairman.
Annual General Meeting ("AGM")
We are pleased to invite shareholders to attend the AGM in person at 12.30 pm on Wednesday, 17 June 2026 at 201 Bishopsgate, London EC2M 3AE. We encourage shareholders to attend for the opportunity to meet the Board and Fund Managers. Jeremiah and Fran will give a presentation on the year under review and the outlook for the year ahead. Shareholders unable to join in person are welcome to join the meeting by videoconference. Further details can be found in the Annual Report and in the AGM Notice as set out in the Annual Report.
The Manager
Shareholders may be aware of the offer by Trian Fund Management and General Catalyst to acquire the remainder of Janus Henderson Investors they do not own (Janus Henderson Investors is currently a publicly listed company). We are not expecting any changes to the way NAIT is managed and will monitor the matter.
Outlook
Global stock markets including the US have clearly been impacted by the conflict in the Middle East. Oil prices have risen, inflation is rising and interest rate forecasts have been reset, all at the time of unprecedented levels of sovereign debt. No one knows for sure how long the conflict will last and the range of possible outcomes is wide. Not only have the macroeconomic risks increased but companies also face technological disruption from agentic AI. Digital agents writing code will disintermediate many of the knowledge-based areas, such as legal and accounting professions, thereby lowering their terminal value. There are strong debates as to the degree of disruption and how long this might take, but we are already witnessing some of the effects. The Board remains confident that the experienced team at Janus Henderson Investors, with all its resources, is equipped to distinguish between the winners and losers in this new dispensation. They have the flexibility to invest across the whole market and are not obliged to own any particular stock or sector. Moreover, the stocks currently held trade at a lower multiple of forward earnings than the wider US market.
Technological change can be disruptive and geopolitical events are inherently unpredictable, but such episodes can also provide opportunity. As Buffett said: "Uncertainty, actually, is the friend of the buyer of long-term values." Thank you for your ongoing support.
Charles Park
Chairman
23 April 2026
FUND MANAGERS' REPORT
Market review
The financial year ending 31 January 2026 was another positive period for US share prices, with the S&P 500 growing 5.4% (in Sterling terms). The year was marked by tremendous volatility early on as the new administration implemented unexpected tariffs to its trading partners. However, from mid-year onwards the markets settled into a steady straight-line improvement that carried through to the end of the calendar year. Following the year end in January, the Supreme Court ruled that the tariffs enacted under emergency provisions were not valid. While this outcome was anticipated, the administration has now begun to make plans to replace the emergency tariffs with a series of new ones that we expect to be broadly similar in scale. Beyond tariffs, the economic backdrop remains supportive to both consumers and corporates, although we remain prepared for periods of volatility that often accompany the mid-term election years.
From a macroeconomic standpoint, Gross Domestic Product (GDP) growth moderated a bit from 2.8% in 2024 to a still solid 2.2% in 2025, led by the consumer. This is a trend that should continue in 2026 given favourable new tax policy that was introduced in 2025. Inflation has continued its gradual decline towards sub-3% levels, driven by moderating goods and housing costs, although services inflation remains elevated. Against this backdrop, the Federal Reserve continued to unwind its restrictive monetary policy through measured 25 basis point cuts ending 2025 with a target range of 3.50-3.75%, where it remains today.
Corporate earnings had a rather impressive 2025 with double-digit gains in all four quarters, extending a streak that began already in the last quarter of 2024. The outlook for 2026 looks similar, with earnings growth expected to exceed 10% but in a much more balanced fashion, and less concentrated in the "Magnificent Seven" stocks. In fact, current estimates suggest earnings growth for the "Mag7" and the broader market should converge in the fourth quarter this year. The strength in earnings resulted in another solid year of dividend growth. This environment should be much more favourable for the Company, and we believe that our current portfolio is well-positioned to benefit from a broader base of earnings.
Performance
The Company delivered a total return of 8.8% on a net asset value at fair value basis for the year ended 31 January 2026, and a 13.8% return on a Share Price basis as the discount shrunk from 9.3% to 5.7% at year-end and is currently 2.2% at the time of this report. Performance was ahead of both reference indices, with the Russell 1000 Value Index returning 4.9% and the S&P High Yield Dividend Aristocrats Index returning 3.1%.
Outperformance was driven mainly by stock selection rather than sector positioning. The financials sector was a significant contributor to performance, driven by strong returns from Citigroup, Morgan Stanley and Goldman Sachs, alongside American Express, OneMain, and Bank of New York Mellon. Stock selection also drove performance in healthcare, with CVS Health, Johnson & Johnson, and Danaher offsetting weaker returns from Bristol-Myers Squibb and Zoetis. In consumer staples, performance was narrower given that we held only two stocks. However, the overweight in Philip Morris proved to be a favourable decision.
The largest detractors from the Company's performance during the year were industrials and communications services both due primarily to stock selection, although the impact was modest. In industrials, weaker performance from Booz Allen Hamilton outweighed gains elsewhere, while in communication services our underweight position in the low yielding Alphabet detracted from the portfolio as the company's stock rose strongly after it joined the Russell 1000 Value index at the end of June 2025.
At an individual stock level, the largest contribution came from semiconductor capital equipment manufacturer Lam Research, which benefitted from strong demand for advanced chips and shareholder friendly actions, including a dividend increase and share buyback. Elsewhere, our overweights to Amphenol, Johnson & Johnson and Citigroup rounded out a rather diverse group of top performers. Dividend growth here correlated more closely with their end market growth rates. Amphenol raised their dividend by over 50%, while Citigroup and Johnson & Johnson raised their quarterly payments a more modest 7% and 5%, respectively. All four of these names remain core positions in our portfolio, although we did trim our exposure to Lam Research and Citigroup following their strong performance.
The main detractors were either stocks we lost out on as we did not hold them in the portfolio or underweight positions in low-yielding names that performed strongly, such as manufacturer Micron Technology and Alphabet. Booz Allen Hamilton and Zoetis also detracted, and we exited our position in Booz Allen Hamilton due to weaker growth prospects. While uncertainty about future prospects was elevated, we believed there were better investment ideas elsewhere. As for Zoetis, we believe the challenges faced by the company during the period are short-term and won't alter its longer-term outlook.
Portfolio activity
Following the portfolio changes made after the August 2024 transition, portfolio turnover has returned to the historical 25-50% annualised range in recent quarters. Periods of heightened market volatility, particularly in March and April of 2025 during the initial tariff announcements, created attractive opportunities to add high-quality growth companies into our portfolio. During this period, we funded purchases by trimming more defensive holdings that had performed well. As markets recovered and broadened out later in the year, portfolio activity became more selective and stock specific. At year-end, the portfolio remained overweight the Russell 1000 Value Index healthcare and financials. Technology moved from overweight to neutral, while consumer discretionary moved from underweight to neutral. The underweights in the industrials, materials and consumer staples sectors reflect the less attractive growth prospects, higher valuations or company-specific risks.
The portfolio ended the year modestly defensive in nature as the market traded to all-time highs, but we still remain well diversified in long-term growth areas, such as technology and financials, where a more balanced regulatory environment should be supportive, as well as healthcare, which offers both offensive and defensive characteristics at fair valuations. Increased exposure to the consumer should also be beneficial given that they are uniquely leveraged to the new tax bill signed into law in the middle of 2025. Despite some green shoots in many industrial end markets, we remain underweight in the sector as valuations currently reduce the attractiveness of the risk/reward profile. We continue to believe that the portfolio continues to represent a focused set of 'best ideas' that have the ability to perform well in what will likely be a volatile mid-term election year.
Dividend growth
The Company generated a revenue return per share of 12.9p, slightly higher than the 12.4p recorded in the previous year despite currency headwinds. The revenue reserve stood at £23.1m (20.2p per share) before the fourth interim dividend was paid, continuing to represent more than one year of dividend cover.
We continue to be pleased with the overall dividend growth of the companies within the portfolio during the year with companies increasing dividends by an average of 9.5% with a median dividend increase being 6.3%. While a small number of large increases - such as The Walt Disney Company, Amphenol and Goldman Sachs - boosted the average, overall growth was broad based. We expect a similar level of dividend growth from the portfolio in the current year.
Outlook
Similar to a year ago, the early part of the year was met by various events such as the Supreme Court decision to make the tariffs implemented last year illegal (although they may be reintroduced in a different form), a fairly unprecedented removal of a sovereign leader in Venezuela, and what now has been a series of attacks upon Iran that have made the global backdrop more complex than expected. The structural damage to some of the Middle East energy infrastructure is likely to impact global inflation for quite some time.
Also similar to a year ago, corporates who had just begun resuming "business as usual" faced another setback with the Middle East events making global transport more complicated and forcing companies to revisit supply chains, going beyond energy alone.
Conversely, the biggest structural benefits to occur over the past year have come from a wave of deregulation, which should improve the operating environment across multiple end markets. Financial companies in particular stand to benefit, as excess capital can be redeployed into more productive uses, with positive knock-on effects across several industries. In addition, three 25 basis point cuts in short-term rates in the final four months of 2025, have lowered borrowing costs for many companies.
Meanwhile, the build-out of AI infrastructure continues, although large technology providers continue to evaluate return on investment and perhaps allow for the potential of more disciplined growth in the future. AI integration across sectors continues to enhance efficiency and reduce costs, with practical examples in healthcare, e-commerce, finance, and energy. While AI adoption is still at an early stage, its potential for having a significant impact on productivity and revenue growth is clear.
Beyond AI, we remain excited about innovation and productivity gains driven by large US companies continuing to drive through ongoing capital investment and research & development spending, which may benefit from the new, more favourable, accelerated tax expensing policies. The investments required to succeed in the new digital economy are significant and therefore tend to favour market-leading companies. Access to large- high quality data sets has become increasingly important in informing strategy and execution. We have populated the portfolio with companies that have the scale to make these investments, supporting future growth in earnings and dividends.
The consumer backdrop has become more mixed in recent weeks. Tax refunds from the 2025 fiscal bill are being partially offset by higher gas prices and the prospect of higher inflation than expected at the start of the year. Employment remains relatively healthy with unemployment levels still low at around 4.5%, although the outlook for hiring may become more challenging, particularly as companies manage inflation pressures and perhaps more structural impacts, including enhanced usage of AI tools.
We continue to believe that our portfolio companies are well positioned to navigate through periods of volatility. In aggregate, they are trading at approximately 17x forward earnings, representing a discount to broader market valuations, despite what we see as a well-diversified group of high-quality businesses. The robust balance sheets and predictable cash flows should help insulate them against some of the macroeconomic forces at play, and support continued dividend growth prospects for 2026.
As always, we seek to invest in resilient companies that can prudently invest for the future and are not dependent on macroeconomic tailwinds to be the primary driver of growth. We thank you for your continued confidence in our stewardship and our focus on delivering both long-term growth and income for shareholders.
Fran Radano
Jeremiah Buckley
Co-Fund Managers
23 April 2026
Investment portfolio as at 31 January 2026
|
|
|
Valuation |
|
|
|
|
2026 |
% of |
|
Company |
Industry classification |
£'000 |
portfolio |
|
Chevron |
Oil, Gas and Consumable Fuels |
22,578 |
4.5 |
|
Philip Morris |
Tobacco |
19,622 |
4.0 |
|
Johnson & Johnson |
Pharmaceuticals and Biotechnology |
18,223 |
3.7 |
|
CVS Health |
Health Care Providers and Services |
16,307 |
3.3 |
|
PNC Financial Services |
Banks |
16,284 |
3.3 |
|
Morgan Stanley |
Investment Banking and Brokerage Services |
15,993 |
3.2 |
|
Lamar Advertising |
Real Estate Investment Trusts |
14,957 |
3.0 |
|
Enbridge |
Oil, Gas and Consumable Fuels |
14,231 |
2.9 |
|
Goldman Sachs |
Investment Banking and Brokerage Services |
13,636 |
2.8 |
|
Xcel Energy |
Electricity |
13,299 |
2.7 |
|
Ten largest investments |
|
165,130 |
33.4 |
|
Gaming & Leisure Properties |
Specialised REITs |
13,038 |
2.6 |
|
CMS Energy |
Multi-Utilities |
13,019 |
2.6 |
|
Verizon Communications |
Telecommunications Service Providers |
12,974 |
2.6 |
|
Citigroup |
Banks |
12,647 |
2.6 |
|
Progressive |
Non-life Insurance |
12,123 |
2.4 |
|
Medtronic |
Health Care Equipment and Supplies |
11,259 |
2.3 |
|
CME Group |
Capital Markets |
10,532 |
2.1 |
|
The Walt Disney Company |
Media |
10,281 |
2.1 |
|
Union Pacific |
Road and Rail |
10,275 |
2.1 |
|
Eaton |
General Industrials |
10,247 |
2.1 |
|
Twenty largest investments |
|
281,525 |
56.9 |
|
RTX |
Aerospace and Defence |
10,247 |
2.1 |
|
Texas Instruments |
Semiconductors and Semiconductor Equipment |
10,214 |
2.1 |
|
Bristol-Myers Squibb |
Pharmaceuticals |
10,027 |
2.0 |
|
Restaurant Brands International |
Hotels, Restaurants and Leisure |
9,765 |
2.0 |
|
Home Depot |
Retailers |
9,554 |
1.9 |
|
OneMain |
Consumer Finance |
9,546 |
1.9 |
|
Lam Research |
Technology Hardware and Equipment |
9,357 |
1.9 |
|
Broadcom |
Semiconductors and Semiconductor Equipment |
9,057 |
1.8 |
|
Bank of New York Mellon |
Investment Banking and Brokerage Services |
8,740 |
1.8 |
|
Alphabet |
Software and Computer Services |
8,386 |
1.7 |
|
Thirty largest investments |
|
376,418 |
76.1 |
|
U.S. Bancorp |
Banks |
8,178 |
1.7 |
|
Abbott Laboratories |
Health Care Equipment and Services |
7,966 |
1.6 |
|
Nike |
Personal Goods |
7,886 |
1.6 |
|
Amphenol |
Technology Hardware and Equipment |
7,871 |
1.6 |
|
Zoetis |
Pharmaceuticals and Biotechnology |
7,730 |
1.6 |
|
American Express |
Industrial Support Services |
7,703 |
1.6 |
|
Trane Technologies |
Construction and Materials |
7,655 |
1.5 |
|
Coca-Cola |
Beverages |
7,634 |
1.5 |
|
Royal Caribbean Cruises |
Travel and Leisure |
7,106 |
1.4 |
|
Emerson Electric |
Electronic and Electrical Equipment |
6,964 |
1.4 |
|
Forty largest investments |
|
453,111 |
91.6 |
|
AbbVie |
Biotechnology |
6,500 |
1.3 |
|
Intuit |
Software and Computer Services |
5,453 |
1.1 |
|
Accenture |
Industrial Support Services |
4,802 |
1.0 |
|
Microsoft |
Software and Computer Services |
4,704 |
1.0 |
|
Dell Technologies |
Technology Hardware and Equipment |
4,587 |
0.9 |
|
Comcast |
Media |
4,339 |
0.9 |
|
Garmin |
Leisure Goods |
2,207 |
0.4 |
|
Versant Media |
Media |
190 |
0.0 |
|
Total investments |
|
485,893 |
98.2 |
|
Net current assets |
|
8,828 |
1.8 |
|
Total assets |
|
494,721 |
100.0 |
Sector breakdown
Sector exposure at 31 January as a percentage of the investment portfolio excluding cash
|
|
2026 |
2025 % |
|
Financials |
22.1 |
16.5 |
|
Health Care |
12.7 |
19.8 |
|
Information Technology |
12.3 |
15.9 |
|
Industrials |
11.9 |
13.0 |
|
Consumer Discretionary |
9.7 |
7.2 |
|
Consumer Staples |
8.9 |
5.8 |
|
Energy |
7.6 |
6.9 |
|
Real Estate |
5.8 |
5.4 |
|
Utilities |
5.4 |
6.2 |
|
Communication Services |
3.6 |
3.3 |
|
|
100.0 |
100.0 |
Regional breakdown
Geographic exposure at 31 January as a percentage of the investment portfolio excluding cash
|
|
2026 |
2025 |
|
|
Equity |
Equity |
|
Canada |
4.9 |
4.5 |
|
USA |
95.1 |
95.5 |
|
|
100.0 |
100.0 |
MANAGING RISKS
The Board, with the assistance of the Manager, has carried out a robust assessment of the principal risks facing the Company, including those which would threaten its business model, future performance, solvency, liquidity in its shares and reputation. The assessment includes consideration of economic and political risks, most of which are outside the Board's direct control. The Board has drawn up a detailed matrix of risks facing the Company, which it has distilled into seven categories of principal risks, as shown on the following pages. To assist in mitigating these risks as far as practicable, the Board has also put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, which the Manager must adhere to. Compliance with the limits and restrictions is reported on a monthly basis and reviewed by the board at their quarterly meetings.
The Board has concluded that the Company's portfolio, investment approach and operating model have remained resilient and that its investment approach continues to be appropriate. Geopolitical tensions, levels of borrowing across economies, subdued growth in developed markets and inflationary pressures all continue to affect the investment environment and are taken into account in investment decisions. The Board also considers risks specific to the UK market that may affect investor sentiment and demand for the Company's shares, and these are taken into account, where possible, in the management of the Company's share price discount.
Emerging risks
The Board keeps the Company's risk profile under regular review, including risks arising from internal and external developments. Emerging risks are those potential trends, events or changing circumstances whose likelihood and impact remain uncertain. Where an emerging risk becomes clearer or more immediate, it may be incorporated into the Company's formal risk matrix.
The Board receives regular reporting from the Manager and other service providers on both principal and emerging risks. It also receives ad hoc advice from professional advisers, including legal and tax advisers, where appropriate. This reporting, together with the directors' own experience and judgement, supports effective oversight of the Company's risk environment and how it is changing.
During the year under review, the Board did not identify any emerging risks which are not already encompassed within the existing principal risks.
Principal risks, controls and mitigation
The Company's principal risks and mitigating steps are as follows:
|
Risk |
Controls and mitigation |
|
Strategy and investment performance The Board is responsible for ensuring that the Company's strategic proposition is attractive to the market. The relative performance of the Company against its reference indices and AIC peer group depends principally on asset allocation and stock selection, which, in turn, require investment skills. In exercising these skills, the Manager is responsible for adhering to the investment policy and investment guideline restrictions set by the Board and amended from time to time. |
The Board devotes time in at least one of its meetings each year to reviewing overall strategy and progress is monitored throughout the year. The Board's review takes into account shareholder views, developments in the marketplace and how the Company is positioned to meet them.
The Board is responsible for ensuring that the investment policy is met. The day-today management of the Company's assets is delegated to the Manager under investment guidelines, with close monitoring of compliance with the guidelines.
The Board meets the Manager on a regular basis and keeps investment performance, in terms of both capital and income returns, under close review. The Management Engagement Committee reviews the Manager's performance annually. Although the Company is not invested against any specific income criteria, the net income of the Company and the revenue reserves are monitored against dividend pay-outs and anticipated future net income.
Investment performance is monitored over the short, medium and longer term against the Company's reference indices and against the Company's AIC peer group (North America).
The Fund Managers keep the global political and economic picture under review as part of the investment process and members of the wider Janus Henderson team are available should the Board want additional information on sector or market specific issues. Climate risk is assessed within the individual stock selection process.
The Board monitors the Company's share price relative to NAV per share and reviews changes in shareholdings in the Company to understand short or longer-term trends in supply of and demand for the shares. |
|
Market events and geopolitical risk The Company's absolute performance in terms of NAV total return and share price total return is primarily dependent on the performance of the investee companies and markets in which the Company invests. Performance is also impacted by currency and interest rate movements, as well as by political and economic events, including changes to the fiscal environment for UK investors. Any debt securities that may be held by the Company will be affected by general changes in interest rates that will in turn result in increases or decreases in the market value of those instruments.
The Company is exposed to stock market volatility or illiquidity that could result from major market shocks due to a national or global crisis such as a pandemic, war, natural disaster, geopolitical developments or similar. There could also be a resultant impact of disruption on the operations of the Company and its service providers temporarily or for prolonged duration. |
Stock-specific investment risk is spread by holding a diversified portfolio of investee companies, typically with strong balance sheets and good growth prospects. The Company does not currently undertake any currency hedging strategies, though it has the ability to do so.
Details on financial risks, including market price volatility, inflation, interest rates, liquidity and foreign currency risks and the controls in place to manage these risks are provided in the notes to the financial statements as set out in the Annual Report.
The Board is cognisant of the heightened risks arising from geopolitical developments including stock market instability and economic effects or the potential impact on the operations of the third-party suppliers, including the Manager.
The Manager maintains close oversight of the Company's portfolio and the performance of investee companies. The Board monitors volatility and holds a regular dialogue with the Fund Managers to understand the impact on the Company's portfolio.
The Manager has business continuity arrangements in place to ensure that it is able to continue to service its clients, including investment trusts. |
|
Income and dividend risk The ability of the Company to pay dividends and any future dividend growth depends primarily on the timing and level of income received from its investments (which may be affected by currency movements, exchange controls or withholding taxes imposed by jurisdictions in which the Company invests). Accordingly, there is no guarantee that the Company's dividend income objective will continue to be met and the amount of the dividends paid to shareholders may go down as well as up. |
The Board monitors this risk through the regular review of detailed revenue forecasts and considers the current and forecast level of income at each meeting. The Board discusses the impact of changes to the Company's portfolio and stock selection on income with the Fund Managers.
The Company has built up its revenue reserves over recent years which provides flexibility in future years, should the dividend environment become challenging. The Company has revenue reserves of £23.1 million before payment of the fourth interim dividend.
At the 2026 Annual General Meeting, the cancellations of the share premium account (£51.8 million) and the capital redemption reserve (£16.3 million) will be proposed for shareholder approval. Cancellation of these would create additional distributable reserves and increase flexibility in the way the Company may deploy capital. |
|
Gearing Gearing is used to leverage the Company's portfolio in order to enhance returns. In the event of a significant or prolonged fall in equity markets, gearing can have the effect of exacerbating market falls on the Company's NAV and share price, resulting in the cost of borrowing being higher than the return on investment. |
The Company's investment policy sets a limit on borrowing of 20% of net assets at the time the borrowing is assumed, and the Board monitors the Company's level of gearing at each meeting, and its compliance with loan covenants.
As at 31 January 2026, the Company had US$50 million (£36.4 million) of borrowings and net gearing was 5.9% at the year end. More details are provided in note 14 to the financial statements as set out in the Annual Report. |
|
Discount volatility Swings in underlying net asset values (NAV) may result in the Company's shares trading at a wider discount. |
The Company's share price, NAV and discount are monitored daily by the Manager. When there is a significant discount and it is deemed to be in the best interest of shareholders, the Manager will exercise discretion to undertake share buybacks, within authorities set by the Board. The Board monitors the discount level of the Company's shares and monitors the level of share buybacks, within shareholder authorities. During the year, 8,627,316 shares were bought back. |
|
Operational and cyber security A failure of the operational or internal control systems of the Manager (such as accounting, dealing or payment systems), the Depositary (record keeping) or other third‑party service providers could result in the inaccurate reporting or monitoring of the Company's financial position and could impact the Company's ability to meet its regulatory obligations. The Company is also exposed to cyber security risks should one or more of its services providers not be able to provide the required level of information technology controls to prevent disruption to its business. |
The Management Engagement Committee reviews each service provider at least annually, and, in conjunction with the Audit Committee, considers reports from the Manager on internal controls, including any reported breaches, throughout the year, from all the service providers. This reporting covers such matters as business resilience and cyber security risk as well as matters that are subject to review as part of the annual audit of the Company. The Audit Committee receives quarterly reporting and annual presentations from the Manager's Information Security and Business Resilience teams.
Janus Henderson has a strong North American Equities team, which supports the Fund Managers in the management of the Company's portfolio. Constructive challenge, succession and continuity planning are key elements of the management of the team.
The Board meets with representatives from the Company's key third-party service providers as appropriate to make enquiries on the systems and controls. |
|
Regulatory and reporting A breach of section 1158 and 1159 of the Corporation Tax Act 2010 could lead to the loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. Changes to the reporting requirements and regulated environment in which the Company operates could inter alia affect the listing of the Company's shares as well as how the Company conducts its affairs in the market more generally. |
The Board is apprised regularly of impending regulatory and reporting changes and monitors closely, through its Manager and various professional advisors, the Company's adherence to existing requirements, which include maintaining investment trust status and the Company's London Stock Exchange listing. The Board is also kept aware of fiscal and other developments that might affect shareholder interests as a whole.
The Board is kept informed of corporate governance developments and adheres to corporate governance guidelines that are applicable to an investment company (see Statement of compliance as set out in the Annual Report). |
Details of how the Board monitors the services provided by Janus Henderson and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the Annual Report. Note 18 to the financial statements as set out in the Annual Report contains further details on the Company's exposure to market risk (including interest rate risk, currency risk and price risk), liquidity risk, credit risk and how they are managed.
THE COMPANY'S VIABILITY
The AIC Code of Corporate Governance requires the Board to assess the Company's future prospects and report on that assessment in the Annual Report. The Board considers that certain characteristics of the Company's business model and strategy are relevant to this assessment:
• the Board aims for the Company to deliver long-term performance;
• the Company's investment objective, strategy and policy are subject to regular Board oversight;
• the portfolio is invested mainly in readily realisable listed securities with restricted levels of borrowing; and
• the Company is a closed-ended investment company and therefore does not suffer from liquidity issues arising from unexpected redemptions.
Also relevant are a number of aspects of the Company's operating arrangements:
• the Company retains title to all assets held by the custodian under the terms of formal agreements with the custodian and depositary;
• revenue and expenditure forecasts are reviewed by the directors at each board meeting; and
• cash is held with approved banks.
In addition, the directors have carried out a robust assessment of the principal risks and uncertainties which could threaten the Company's business model, future performance, liquidity or solvency, and have also considered climate-related and emerging risks that could affect the Company in future. The Board takes into account the liquidity of the portfolio, short-term and structural gearing, the income stream from the portfolio, and the Company's ability to meet its liabilities as they fall due. This includes consideration of how the forecast income stream, expenditure and levels of reserves could impact the Company's ability to pay dividends to shareholders.
Detailed income and expenditure forecasts are prepared over shorter time horizons. However, given the nature of the Company's business and the liquidity of its assets, the Board considers these forecasts, together with its wider review of the Company's portfolio, liabilities and reserves, to provide an appropriate basis for assessing viability over a three-year period.
The directors assess viability over three-year rolling periods, taking account of foreseeable severe but plausible scenarios. This includes consideration of the duration of the Company's loan notes and how a breach of any covenants could impact the Company's NAV and share price. The Board has assessed the risks associated with geopolitical, economic and health crises in recent years, including conflicts in the Middle East and Ukraine, and US trade tariffs and related reciprocal measures. The Board has concluded that these events have not affected the long-term viability of the Company, and its ability to continue in operation, notwithstanding any short-term uncertainty and volatility they have caused in the markets.
The directors believe that a rolling three-year period best balances the Company's long-term objective, its financial flexibility, and its commitment to holding continuation votes every three years, against the difficulty of forecasting economic conditions affecting the Company and its shareholders.
The directors also recognise that the next continuation vote will take place within the three-year assessment period and the conditional tender offer could arise in 2027 if the relevant conditions are met. The directors do not currently expect either of these to threaten the long-term viability of the Company.
Based on the Board's assessment, and in the context of the Company's business model, strategy and operational arrangements above, the directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three-year period to January 2029.
The directors have also concluded that the Company has adequate resources to continue in operation for at least 12 months from the date of approval of these financial statements being 23 April 2026, and it is therefore appropriate to prepare these financial statements on a going concern basis.
The strategic report has been approved by the Board of directors.
RELATED-PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with the directors and the Manager. There were no material transactions between the Company and its directors during the year other than amounts paid to them in respect of remuneration and expenses, for which there were no outstanding amounts payable at the year end. Directors' shareholdings in the Company are disclosed in the Annual Report.
In relation to services provided by Janus Henderson, there were no material transactions affecting the financial position of the Company during the year other than fees payable in the ordinary course of business and the facilitation of marketing activities with third parties.
Further details of transactions with the Manager, including amounts outstanding at the year end, are set out in note 21 to the financial statements as set out in the Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Each director, as listed in note 14 below, confirms that, to the best of their knowledge:
§ the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards comprising FRS 102 and applicable law) give a true and fair view of the assets, liabilities, financial position and return of the Company; and
§ the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.
On behalf of the Board
Charles Park
Chairman of the Board
23 April 2026
INCOME STATEMENT
|
|
Year ended 31 January 2026 |
Year ended 31 January 2025 |
||||
|
|
Revenue return £'000 |
Capital return £'000 |
Total £'000 |
Revenue return £'000 |
Capital return £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
Net gains on investments |
- |
18,291 |
18,291 |
- |
77,132 |
77,132 |
|
Net currency gains/(losses) |
- |
3,003 |
3,003 |
- |
(868) |
(868) |
|
Income |
20,015 |
- |
20,015 |
21,193 |
262 |
21,455 |
|
|
--------- |
--------- |
--------- |
--------- |
----------- |
--------- |
|
Gross revenue and capital gains |
20,015 |
21,294 |
41,309 |
21,193 |
76,526 |
97,719 |
|
Investment management fee |
(719) |
(1,679) |
(2,398) |
(833) |
(1,943) |
(2,776) |
|
Administrative expenses |
(839) |
- |
(839) |
(795) |
- |
(795) |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
Return before finance costs and taxation |
18,457 |
19,615 |
38,072 |
19,565 |
74,583 |
94,148 |
|
|
|
|
|
|
|
|
|
Finance costs |
(315) |
(736) |
(1,051) |
(343) |
(800) |
(1,143) |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
Return before taxation |
18,142 |
18,879 |
37,021 |
19,222 |
73,783 |
93,005 |
|
|
|
|
|
|
|
|
|
Taxation |
(2,862) |
604 |
(2,258) |
(2,907) |
646 |
(2,261) |
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
Return after taxation |
15,280 |
19,483 |
34,763 |
16,315 |
74,429 |
90,744 |
|
|
|
|
|
|
|
|
|
|
---------- |
---------- |
---------- |
---------- |
---------- |
---------- |
|
Return per ordinary share (pence) - basic and diluted |
12.89 |
16.45 |
29.34 |
12.44 |
56.76 |
69.20 |
|
|
===== |
===== |
===== |
===== |
===== |
===== |
The total columns of this statement represent the Profit and Loss Account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes set out in the Annual Report are an integral part of the financial statements.
STATEMENT OF CHANGES IN EQUITY
|
For the year ended 31 January 2026 |
Share capital £'000 |
Share premium account £'000 |
Capital redemption reserve £'000 |
Capital reserve £'000 |
Revenue reserve £'000 |
Total £'000 |
|
Balance at 1 February 2025 |
6,346 |
51,806 |
16,270 |
370,758 |
22,655 |
467,835 |
|
Buyback of shares for treasury |
- |
- |
- |
(29,447) |
- |
(29,447) |
|
Return after taxation |
- |
- |
- |
19,483 |
15,280 |
34,763 |
|
Dividends paid (see note 7 below) |
- |
- |
- |
- |
(14,816) |
(14,816) |
|
|
--------- |
---------- |
---------- |
----------- |
---------- |
---------- |
|
Balance at 31 January 2026 |
6,346 |
51,806 |
16,270 |
360,794 |
23,119 |
458,335 |
|
|
====== |
====== |
====== |
====== |
====== |
====== |
|
|
|
|
|
|
|
|
|
For the year ended 31 January 2025 |
Share capital £'000 |
Share premium account £'000 |
Capital redemption reserve £'000 |
Capital reserve £'000 |
Revenue reserve £'000 |
Total £'000 |
|
Balance at 1 February 2024 |
6,868 |
51,806 |
15,748 |
340,003 |
22,054 |
436,479 |
|
Buyback of shares for cancellation |
(522) |
- |
522 |
(31,701) |
- |
(31,701) |
|
Buyback of shares for treasury |
- |
- |
- |
(11,973) |
- |
(11,973) |
|
Return after taxation |
- |
- |
- |
74,429 |
16,315 |
90,744 |
|
Dividends paid (see note 7 below) |
- |
- |
- |
- |
(15,714) |
(15,714) |
|
|
--------- |
---------- |
---------- |
----------- |
---------- |
---------- |
|
Balance at 31 January 2025 |
6,346 |
51,806 |
16,270 |
370,758 |
22,655 |
467,835 |
|
|
====== |
====== |
====== |
====== |
====== |
====== |
The accompanying notes set out in the Annual Report are an integral part of the financial statements.
STATEMENT OF FINANCIAL POSITION
|
|
As at 31 January 2026 £'000 |
As at 31 January 2025 £'000 |
|
Fixed assets |
|
|
|
Investments held at fair value through profit or loss |
485,893 |
504,594 |
|
|
----------- |
----------- |
|
Current assets |
|
|
|
Prepayments and accrued income |
883 |
896 |
|
Other debtors |
6,000 |
2,975 |
|
Cash at bank and in hand |
12,841 |
5,264 |
|
|
----------- |
----------- |
|
|
19,724 |
9,135 |
|
|
----------- |
----------- |
|
Creditors: amounts falling due within one year |
|
|
|
Other creditors |
(10,896) |
(5,710) |
|
|
----------- |
----------- |
|
|
(10,896) |
(5,710) |
|
|
----------- |
----------- |
|
Net current assets |
8,828 |
3,425 |
|
|
----------- |
----------- |
|
Total assets less current liabilities |
494,721 |
508,019 |
|
Creditors: amounts falling due after more than one year |
|
|
|
Senior Loan Notes |
(36,386) |
(40,184) |
|
|
----------- |
----------- |
|
Net assets |
458,335 |
467,835 |
|
|
======= |
======= |
|
Capital and reserves |
|
|
|
Called up share capital |
6,346 |
6,346 |
|
Share premium account |
51,806 |
51,806 |
|
Capital redemption reserve |
16,270 |
16,270 |
|
Capital reserve |
360,794 |
370,758 |
|
Revenue reserve |
23,119 |
22,655 |
|
|
----------- |
----------- |
|
Total shareholders' funds |
458,335 |
467,835 |
|
|
======= |
======= |
|
Net asset value per ordinary share (pence) |
399.47 |
379.24 |
|
|
======= |
======= |
The accompanying notes set out in the Annual Report are an integral part of the financial statements.
STATEMENT OF CASH FLOWS
|
|
Year ended 31 January 2026 £'000 |
Year ended 31 January 2025 £'000 |
|
|
|
|
|
Operating activities |
|
|
|
Net return before taxation |
37,021 |
93,005 |
|
Adjustments for: |
|
|
|
Net gains on investments |
(18,225) |
(77,146) |
|
Net (gains)/losses on foreign exchange transactions |
(3,003) |
868 |
|
Decrease/(increase) in dividend income receivable |
5 |
(52) |
|
Decrease in fixed interest income receivable |
- |
2 |
|
Increase/(decrease) in derivatives |
263 |
(66) |
|
(Increase)/decrease in other debtors |
(352) |
32 |
|
Increase in other creditors |
128 |
163 |
|
Tax on overseas income |
(2,258) |
(2,261) |
|
Amortisation of senior loan note expenses |
6 |
8 |
|
Accretion of fixed income book cost |
- |
(44) |
|
|
----------- |
----------- |
|
Net cash inflow from operating activities |
13,585 |
14,509 |
|
|
|
|
|
Investing activities |
|
|
|
Purchase of investments |
(176,522) |
(446,018) |
|
Sale of investments |
215,578 |
474,976 |
|
|
----------- |
----------- |
|
Net cash generated from investing activities |
39,056 |
28,958 |
|
|
|
|
|
Financing activities |
|
|
|
Equity dividends paid |
(14,816) |
(15,714) |
|
Buyback of shares for cancellation |
- |
(31,911) |
|
Buyback of shares for treasury |
(29,447) |
(11,973) |
|
|
----------- |
----------- |
|
Net cash used in financing activities |
(44,263) |
(59,598) |
|
|
----------- |
----------- |
|
Increase/(decrease) in cash at bank and in hand |
8,378 |
(16,131) |
|
|
----------- |
----------- |
|
|
|
|
|
Analysis of changes in cash at bank and in hand |
|
|
|
Opening balance |
5,264 |
21,285 |
|
Effect of exchange rate fluctuation on cash held |
(801) |
110 |
|
Increase/(decrease) in cash as above |
8,378 |
(16,131) |
|
|
----------- |
----------- |
|
Closing balance |
12,841 |
5,264 |
|
|
======= |
======= |
|
Represented by: |
|
|
|
Cash at bank and in hand |
12,841 |
5,264 |
|
|
======= |
======= |
|
|
|
|
|
|
|
|
The accompanying notes set out in the Annual Report are an integral part of the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
|
1. |
Principal activity The Company is a closed-end investment company, registered in Scotland No. SC005218, with its shares listed on the London Stock Exchange.
|
|||||||||||||||||||
|
2. |
Accounting policies A summary of the principal accounting policies, all of which, unless otherwise stated, have been consistently applied throughout the year and the preceding year is set out below.
|
|||||||||||||||||||
|
(a) |
Basis of preparation and going concern The financial statements have been prepared in accordance with Financial Reporting Standard 102, the Companies Act 2006 and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in July 2022, and have been prepared under the historical cost basis except for the measurement at fair value of investments.
The financial statements are presented in Sterling which is the functional currency of the Company and rounded to the nearest £'000. 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.
Going concern The Company's assets consist substantially of securities in companies listed on recognised stock exchanges and in normal circumstances are realisable within a short timescale and which can be sold to meet funding commitments if necessary.
The Board has set gearing limits and regularly reviews actual exposures, cash flow projections and compliance with loan covenants.
The Company undertakes a continuation vote every three years. The last continuation vote was passed at the AGM held in June 2024 with 89.2% of votes in favour.
In June 2024, the Board established a three-year conditional tender mechanism covering the period to 30 September 2027 under which a tender offer for up to 15% of the shares in issue (excluding treasury shares) would be implemented provided that one of the following conditions had been met:
i. over the three-year period up to and including the Calculation Date, the NAV total return of the Company (with debt at fair value) has not exceeded the total return of the S&P High Yield Dividend Aristocrats Index; or ii. over the six-month period prior to the Calculation Date the average discount to the cum-income NAV per share (with debt at fair value) at which the Company's shares have traded is greater than 7%.
Any tender implemented as a result of these proposals would be executed at a tender price reflecting a 2% discount to the Company's cum-income NAV per share (with debt at fair value) (less tender offer costs).
These measures are designed to give shareholders confidence on liquidity for those who want to sell a portion of their shareholding and also to provide those who want to buy shares some confidence on share price volatility not being too extreme.
The Board has considered the impact of geopolitical developments and believes that there will be a limited resulting impact on the Company's operational resources and existence as the primary impact of any recent events would be on the valuation of the portfolio, not the Company's operational resources. Given that the Company's portfolio comprises primarily "Level One" assets (listed on a recognisable exchange and realisable within a short timescale), and the Company's relatively low level of gearing, the Company has sufficient liquidity within its portfolio so as to remain within its debt covenants and pay expenses.
|
|||||||||||||||||||
|
|
Taking the above factors into consideration, the directors have a reasonable expectation that the Company has adequate financial resources to continue in operational existence for the foreseeable future and for at least twelve months from the date of this Report. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.
Significant estimates and judgements Disclosure is required of judgements and estimates made by management in applying the accounting policies that have a significant effect on the financial statements. There are no significant estimates or judgements which impact these financial statements.
|
|||||||||||||||||||
|
(b) |
Income Income from investments, including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex dividend. Special dividends are credited to capital or revenue, depending on the circumstances. The fixed returns on debt instruments are recognised using the time apportioned accruals basis and the discount or premium on acquisition is amortised or accreted on a straight line basis.
Interest receivable from cash and short-term deposits is recognised on an accruals basis.
|
|||||||||||||||||||
|
(c) |
Expenses All expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income. Expenses are charged against revenue except as follows:
• transaction costs on the acquisition or disposal of investments are charged to capital in the Statement of Comprehensive Income; • expenses are charged to capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect, the investment management fee is allocated 30% to revenue and 70% to capital to reflect the Company's investment policy and prospective income and capital growth.
|
|||||||||||||||||||
|
(d) |
Taxation The tax payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible (see note 8 set out in the Annual Report for a more detailed explanation). At the year end, the Company had a Corporation Tax creditor of £188,000 (2025: £61,000) and is included within "other creditors" in note 13 set out in the Annual Report.
Deferred taxation is provided on all timing differences, that have originated but not reversed at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Statement of Financial Position date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the financial statements which are capable of reversal in one or more subsequent periods.
Owing to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
|
|||||||||||||||||||
|
(e) |
Investments Investment transactions are accounted for on a trade date basis. Investments are initially recognised at fair value. Investments are de-recognised at the trade date of the disposal. Proceeds are measured at fair value, which is regarded as the proceeds of sale less any transaction costs. Subsequent to initial recognition, investments are measured at fair value. For listed investments, this is deemed to be closing bid market prices. Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as "Net gains on investments", initially as unrealised gains or losses until disposal when those gains or losses are then realised.
|
|||||||||||||||||||
|
(f) |
Borrowings Monies borrowed to finance the investment objectives of the Company are stated at the amount of the net proceeds immediately after issue plus cumulative finance costs less cumulative payments made in respect of the debt. The finance costs of such borrowings are accounted for on an accruals basis using the effective interest rate method and are charged 30% to revenue and 70% to capital to reflect the Company's investment policy and prospective income and capital growth.
|
|||||||||||||||||||
|
(g) |
Dividends payable Interim and final dividends are recognised in the period in which they are paid.
|
|||||||||||||||||||
|
(h) |
Nature and purpose of reserves Share premium account The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity capital comprising Ordinary shares of 5p. This reserve is not distributable.
Capital redemption reserve The capital redemption reserve is used to record the amount equivalent to the nominal value of any of the Company's own shares purchased and cancelled in order to maintain the Company's capital. This reserve is not distributable.
Capital reserve This reserve includes any gains or losses on realisation of investments in the period. The costs of share buybacks for treasury are also deducted from this reserve. £300,351,000 (2025: £322,179,000) of the capital reserve is distributable. The remainder of the capital reserve relates to any changes in fair values of investments held that have been recognised in the Statement of Comprehensive Income. The distributability of this portion of the reserve has not been analysed as it is complex to determine. This complexity is explained further in ICAEW Technical Release 02/17BL, which offers guidance on realised and distributable profits under the Companies Act 2006.
Revenue reserve This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.
|
|||||||||||||||||||
|
(i) |
Foreign currency Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Statement of Comprehensive Income and are then transferred to the capital reserve.
|
|||||||||||||||||||
|
(j) |
Traded options The Company may enter into certain derivative contracts (e.g. writing traded options). Option contracts are accounted for as separate derivative contracts and are therefore shown in other assets or other liabilities at their fair value. The initial fair value is based on the initial premium which is received/paid on inception. The premium is recognised in the revenue column over the life of the contract period. Losses on any movement in the fair value of open contracts at the year end realised and on the exercise of the contracts are recorded in the capital column of the Statement of Comprehensive Income. For written options, where exercised, losses are treated as a realised loss, including where it is a component of the cost paid to acquire underlying securities on a written contract.
In addition, the Company may enter into derivative contracts to manage market risk and gains or losses arising on such contracts are recorded in the capital column of the Statement of Comprehensive Income.
|
|||||||||||||||||||
|
(k) |
Cash at bank and in hand Cash comprises cash at bank and collateral accounts at brokers. The amounts held in collateral accounts at brokers were £576,000 with Goldman Sachs and £277,000 with Merrill Lynch as at 31 January 2026.
|
|||||||||||||||||||
|
(l) |
Treasury shares When the Company purchases its shares to be held in treasury, the amount of the consideration paid, which includes directly attributable costs, is net of any tax effect, and is recognised as a deduction from the capital reserve. When these shares are sold subsequently, the amount received is recognised as an increase in equity, and any resulting surplus on the transaction is transferred to the share premium account and any resulting deficit is transferred from the capital reserve.
|
|||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
3. |
Net currency gains/(losses) |
2026 £'000 |
2025 £'000 |
|||||||||||||||||
|
|
(Losses)/gains on cash held |
(801) |
110 |
|||||||||||||||||
|
|
Gains/(losses) on Senior Loan Notes |
3,804 |
(978) |
|||||||||||||||||
|
|
|
----------- |
----------- |
|||||||||||||||||
|
|
|
3,003 |
(868) |
|||||||||||||||||
|
|
|
====== |
====== |
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
4. |
Income |
|
|
|||||||||||||||||
|
|
Income from overseas-listed investments |
2026 £'000 |
2025 £'000 |
|||||||||||||||||
|
|
Dividend income |
13,611 |
14,368 |
|||||||||||||||||
|
|
REIT income |
1,666 |
2,191 |
|||||||||||||||||
|
|
Interest income from investments |
- |
286 |
|||||||||||||||||
|
|
|
--------- |
--------- |
|||||||||||||||||
|
|
|
15,277 |
16,845 |
|||||||||||||||||
|
|
|
====== |
====== |
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
Other income from investment activity |
|
|
|||||||||||||||||
|
|
Traded option premiums |
4,552 |
4,099 |
|||||||||||||||||
|
|
Deposit interest |
186 |
511 |
|||||||||||||||||
|
|
|
--------- |
--------- |
|||||||||||||||||
|
|
|
4,738 |
4,610 |
|||||||||||||||||
|
|
|
--------- |
--------- |
|||||||||||||||||
|
|
Total income |
20,015 |
21,455 |
|||||||||||||||||
|
|
|
====== |
====== |
|||||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
During the year, the Company was entitled to premiums totalling £4,552,000 (2025: £4,099,000) in exchange for entering into option contracts. At the year end there were 7 (2025: 4) open positions, valued at a liability of £359,000 (2025: liability of £96,000) as disclosed in note 13 set out in the Annual Report. Losses realised on the exercise of derivative transactions are disclosed in note 11 set out in the Annual Report. |
|||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
5. |
Investment management fee |
|
|
|||||||||||||||||
|
|
|
2026 |
2025 |
|||||||||||||||||
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|||||||||||||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||||||||||
|
Investment management fee |
719 |
1,679 |
2,398 |
833 |
1,943 |
2,776 |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
The fee is allocated 30% to revenue and 70% to capital (2025: same). During the period £2,398,000 (2025: £1,258,000) of investment management fees were payable to Janus Henderson, with a balance of £833,000 (2025: £845,000) being due to Janus Henderson at the period end. Until 31 July 2024 the annual management fee was charged on gross assets after deducting current liabilities and borrowings and excluding commonly managed funds (net assets), on a tiered basis. The annual management fee was charged at 0.75% of net assets up to £250 million, 0.6% between £250 million and £500 million, and 0.5% over £500 million, payable quarterly. During the period £nil (2025: £1,518,000) of investment management fees were payable to abrdn Fund Managers Limited ("aFML"). |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
6. |
Finance costs |
|
|
|
|
|
|
|||||||||||||
|
|
|
2026 |
2025 |
|||||||||||||||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|||||||||||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||||||||
|
|
Bank interest paid |
- |
1 |
1 |
2 |
6 |
8 |
|||||||||||||
|
|
Senior loan notes |
313 |
731 |
1,044 |
338 |
789 |
1,127 |
|||||||||||||
|
|
Amortised Senior Loan Note issue expenses |
2 |
4 |
6 |
3 |
5 |
8 |
|||||||||||||
|
|
|
----------- |
---------- |
------- |
----------- |
-------- |
------- |
|||||||||||||
|
|
|
315 |
736 |
1,051 |
343 |
800 |
1,143 |
|||||||||||||
|
|
|
----------- |
---------- |
------- |
----------- |
--------- |
------- |
|||||||||||||
|
|
|
|
||||||||||||||||||
|
7. |
Dividends |
|
|
|||||||||||||||||
|
|
|
2026 £'000 |
2025 £'000 |
|||||||||||||||||
|
|
Amounts recognised as distributions to equity holders in the year: |
|
|
|||||||||||||||||
|
|
4th interim dividend for 2025 of 4.1p per share (2024 - 3.9p) |
4,974 |
5,305 |
|||||||||||||||||
|
|
1st interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,385 |
3,569 |
|||||||||||||||||
|
|
2nd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,244 |
3,467 |
|||||||||||||||||
|
|
3rd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,213 |
3,373 |
|||||||||||||||||
|
|
|
--------- |
--------- |
|||||||||||||||||
|
|
|
14,816 ===== |
15,714 ===== |
|||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
The fourth interim dividend for 2026 has not been included as a liability in these financial statements as it was not approved or paid during the financial year ended 31 January 2026. Details of the fourth interim dividend for 2026, which will be paid on 27 May 2026 to shareholders on the register on 8 May 2026, are set out in the table below.
The table below sets out the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £15,280,000 (2025: £16,315,000). |
|||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
|
2026 £'000 |
2025 £'000 |
|||||||||||||||||
|
|
1st interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,385 |
3,569 |
|||||||||||||||||
|
|
2nd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,244 |
3,467 |
|||||||||||||||||
|
|
3rd interim dividend for 2026 of 2.8p per share (2025 - 2.7p) |
3,213 |
3,373 |
|||||||||||||||||
|
|
4th interim dividend for 2026 of 4.4p per share (2025 - 4.1p) |
5,047 |
4,974 |
|||||||||||||||||
|
|
|
--------- |
--------- |
|||||||||||||||||
|
|
|
14,889 |
15,383 |
|||||||||||||||||
|
|
|
===== |
===== |
|||||||||||||||||
|
|
The cost of the proposed final dividend for 2026 is based on 114,710,516 shares in issue, being the number of shares in issue (excluding treasury shares) at the date of this report.
|
|||||||||||||||||||
|
8. |
Return per share - basic and diluted |
|||||||||||||||||||
|
|
|
2026 |
2025 |
|||||||||||||||||
|
|
£'000 |
p |
£'000 |
p |
||||||||||||||||
|
Based on the following figures: |
|
|
|
|
||||||||||||||||
|
Revenue return |
15,280 |
12.89 |
16,315 |
12.44 |
||||||||||||||||
|
Capital return |
19,483 |
16.45 |
74,429 |
56.76 |
||||||||||||||||
|
|
|
--------- |
--------- |
---------- |
--------- |
|||||||||||||||
|
|
Total return |
34,763 |
29.34 |
90,744 |
69.20 |
|||||||||||||||
|
|
|
===== |
===== |
===== |
===== |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
Weighted average number of shares in issue1 |
118,503,400 |
131,124,251 |
|||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
1 Calculated excluding shares held in Treasury where applicable. |
|
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
9. |
2026 Financial Information |
|||||||||||||||||||
|
|
The figures and financial information for the year ended 31 January 2026 are extracted from the Company's annual financial statements for that period and do not constitute statutory accounts. The Company's annual financial statements for the year to 31 January 2026 have been audited but have not yet been delivered to the Registrar of Companies. The Independent Auditor's Report on the 2026 annual financial statements was unqualified, did not include reference to any matter to which the Auditor drew attention without qualifying the report, and did not contain any statements under sections 498(2) or 498(3) of the Companies Act 2006. |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
10. |
2025 Financial Information The figures and financial information for the year ended 31 January 2025 are extracted from the Company's annual financial statements for that period and do not constitute statutory accounts. The Company's annual financial statements for the year to 31 January 2025 have been audited and filed with the Registrar of Companies. The Independent Auditor's Report on the 2025 annual financial statements was unqualified, did not include reference to any matter to which the Auditor drew attention without qualifying the report, and did not contain any statements under sections 498(2) or 498(3) of the Companies Act 2006. |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
11. |
Dividend |
|||||||||||||||||||
|
|
The fourth interim dividend of 4.4p per ordinary share will be paid on 27 May 2026 to shareholders on the register of members at the close of business on 8 May 2026. This will take the total dividends for the year to 12.8p (2025: 12.2p). The Company's shares will be quoted ex-dividend on 7 May 2026. |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
12. |
Annual Report |
|||||||||||||||||||
|
|
The Annual Report will be posted to shareholders in May 2026 and will be available on the Company's website (www.northamericanincome.com). |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
13. |
Annual General Meeting |
|||||||||||||||||||
|
|
The Annual General Meeting will be held on Wednesday 17 June 2026 at 12.30 pm at 201 Bishopsgate, London EC2M 3AE. Instructions for attending the meeting in person or virtually, and details of resolutions to be put to the AGM, are included in the Notice of AGM in the Annual Report and will be available at www.northamericanincome.com. If shareholders would like to submit any questions in advance of the AGM, they are welcome to send these to the corporate secretary at itsecretariat@janushenderson.com. |
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
14. |
General Information The North American Income Trust plc is a UK domiciled investment trust company.
ISIN number / SEDOL for ordinary shares: GB00BJ00Z303/BJ00Z30 London Stock Exchange (TIDM) code: NAIT Global intermediary identification number (GIIN): XYAARK.99999.SL.826 Legal entity identifier (LEI): 5493007GCUW7G2BKY360 Company registration number: SC005218 Registered office address: 4 North St. Andrew Street, Edinburgh EH2 1HJ
The directors of the Company are Charles Park (Chairman), Karyn Lamont (Audit Committee Chair), Patrick Edwardson (Senior Independent Director), Susannah Nicklin, Bulbul Barrett and John Adebiyi.
The Corporate Secretary is Janus Henderson Secretarial Services UK Limited.
Website Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.northamericanincome.com. |
|||||||||||||||||||
|
For further information please contact:
|
|
|
|
Fran Radano Co-Fund Manager The North American Income Trust plc Telephone: +1 303 336 5450
|
Jeremiah Buckley Co-Fund Manager The North American Income Trust plc Telephone: +1 303 336 5450
|
|
|
Dan Howe Head of Investment Trusts Janus Henderson Investors Telephone: 020 7818 1818 |
Harriet Hall PR Director, Investment Trusts Janus Henderson Investors Telephone: 020 7818 2919 |
|
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