Final Results

Sequoia Economic Infra Inc Fd Ld

11 June 2026

 

Sequoia Economic Infrastructure Income Fund Limited

(the "Company")

Final Results for the year ended 31 March 2026

Continued strong NAV performance and attractive dividend yield underpinned by a portfolio invested in lower risk infrastructure debt

Financial Highlights for year ended	31 March 2026	31 March 2025
Total net assets	£1.38bn	£1.44bn
Net Asset Value ("NAV") per Ordinary Share	93.17p	92.55p
Ordinary Share price*	76.60p	78.30p
Ordinary Share discount to NAV*	(17.8)%	(15.4)%
Market capitalisation	£1.13bn	£1.22bn
ESG score of the portfolio**	66.12	64.70
Earnings per Ordinary Share	6.83p	5.04p
Dividends declared	6.875p	6.875p
Annualised dividend yield	9.0%	8.8%

* Cum dividend

** As measured by the in-house proprietary scoring methodology

KEY HIGHLIGHTS

·    Strong NAV performance, underpinned by resilient portfolio income and disciplined credit management 

o   NAV increased 0.62p to 93.17p (FY2025: 92.55p); Annualised NAV total return of 8.4% (FY2025: 6.1%), in excess of the Fund's target annual gross return of 7-8%

o   Dividends of 6.875p per Ordinary Share, consistent with full-year target; dividend remains fully cash covered by a factor of 1.06x (FY2025: 1.00x) representing an attractive dividend yield of 9.0% as at 31 March 2026 and 8.4% at 9 June 2026

·    Improved or maintained credit quality with robust, diversified portfolio, while targeting a portfolio yield of 9-10%

o   Reduced proportion of non-performing loans ("NPLs") to 0.3% of NAV (FY2025: 1.0%) and no new NPLs recorded during the period

o   Maintained diversification, covering 27 sub-sectors

·    Originated £422.1 million of new loans over the period, at a weighted average yield-to-maturity of 9.6%

o   Proportion of senior secured loans rose to 63.5% (FY2025: 59.9%)

o   Continue to focus on finding operational assets, senior secured debt, and non-cyclical industries

·    Continued proactive management of share price discount with NAV-accretive share buyback programme and enhanced engagement with investors

o   Maintained balanced approach to capital allocation with 75.3 million Ordinary Shares purchased over the period; 288.5 million Shares repurchased since the beginning of the programme

o   Programme of initiatives to market the Company to a wider audience, with the goal of attracting new investors, including overseas

·    ESG score of the portfolio of 66.12 (FY2025: 64.70)

o   New sustainability scoring methodology and framework to align with evolving market standards and best practice to be rolled out over the coming year

James Stewart, Chair, commented:

"Our performance demonstrates the resilience of SEQI's diversified infrastructure debt portfolio in a period characterised by heightened geopolitical uncertainty and market volatility. SEQI delivered a NAV total return of 8.4%, ahead of our long-term target range, while maintaining full dividend cover and continuing our disciplined approach to capital allocation.

"We continue to believe that the current level of discount does not reflect SEQI's long-term prospects, the strength of the investment portfolio or our ability to generate attractive returns in a sector that is recognised as lower risk than general corporate lending. Addressing the discount remains a priority for the Board. We will continue to find the right balance of capital allocation between new originations and share buybacks to help reduce the discount.

"We remain confident in the long-term investment case for infrastructure debt and in SEQI's ability to continue delivering attractive risk-adjusted returns for Shareholders."

Randall Sandstrom, Director and CEO/CIO, SIMCo, said:

"The portfolio delivered another year of strong income generation and resilient credit performance. Against a backdrop of ongoing market volatility, our focus remained on originating high-quality senior secured infrastructure debt opportunities while actively managing portfolio risk.

"Infrastructure debt continues to offer an attractive combination of strong income generation, downside protection and diversification. The global infrastructure funding gap remains substantial, creating a compelling opportunity set for specialist lenders such as SEQI."

INVESTOR PRESENTATION

The Investment Adviser will host a virtual presentation on the interim results for investors and analysts today at 10:00 BST. There will be the opportunity for participants to ask questions at the end of the presentation. Those wishing to attend should register via the following link:

https://www.investormeetcompany.com/sequoia-economic-infrastructure-income-fund-limited/register-investor

Copies of the Annual Report and Accounts will shortly be available on the Company's website https://www.seqi.fund/investors/results/ and on the National Storage Mechanism.

For further information, please contact:

Sequoia Investment Management Company Steve Cook Dolf Kohnhorst Randall Sandstrom Anurag Gupta Matt Dimond	[phone]
Jefferies International Limited (Joint Corporate Broker & Financial Adviser) Gaudi Le Roux Harry Randall	[phone]
J.P. Morgan Cazenove (Joint Corporate Broker & Financial Adviser) William Simmonds Rupert Budge	[phone]
Teneo (Financial PR) Robert Yates Jessica Pine	[phone]
FundRock Management Company (Guernsey) Limited (Alternative Investment Fund Manager (AIFM)) Chris Hickling Ben Snook	[phone]
Apex Fund and Corporate Services (Guernsey) Limited (Company Secretary) Aoife Bennett James Taylor	[phone]

Chair's statement

It is my pleasure to present to you the Annual Report and Audited Financial Statements of the Company for the financial year ended 31 March 2026.

Against a volatile geopolitical background and continuing sector headwinds, the Fund's diversified economic infrastructure debt portfolio continues to demonstrate its resilience by generating significant Shareholder value during the year. The Company's underlying investment portfolio delivered a NAV total return of 8.4%, and a share price total return of 6.6%, both underpinned by strong income generation from the portfolio. The Board remains confident in the intrinsic qualities of the infrastructure sector and infrastructure debt as an asset class. We have successfully reinvested capital in accordance with our strategy of maintaining portfolio diversification and credit quality by continuing to target loan yields of 9-10%.

Differentiating infrastructure debt from private credit

Private credit markets as a whole have grown substantially over the past five years, with total assets under management increasing from USD1.1 trillion at the end of 2020, to c.USD1.8 trillion by the end of 2025, according to Preqin. This has been driven by several factors, including:

·    a better risk/return opportunity for investors than can be found in the liquid credit markets, such as leveraged loans and high yield bonds;

·    the growth in the number and size of alternative asset managers;

·    a fall-off in bank lending due to regulatory and other constraints;

·    the greater flexibility of private market lenders and their willingness to innovate; and

·    an increase in the number of alternative asset managers.

This growth, whilst mostly positive for both investors and the broader economy, has resulted in potential teething problems for some parts of the sector. In particular, some market participants have questioned the robustness of private loan valuations, the adequacy of disclosures, risk levels and loan under-writing standards. This is particularly being seen in the BDC sector in the United States, where fund valuations have recently been under pressure.

We believe that there are some clear differences in and benefits to be gained from the SEQI target investment universe and our underlying loan portfolio. In contrast to some other parts of the private credit sector, SEQI stands well:

·    lending against infrastructure is typically lower risk than general corporate lending, as confirmed by independent rating agencies such as Moody's and S&P. This is because infrastructure companies often have hard assets with significant barriers to entry and a high replacement cost, and because the demand for such assets is relatively stable over the economic cycle;

·    we have little or no direct exposure to many of the sectors that are currently under pressure, such as software. (By contrast, some of the large BDCs have up to 30% of their lending to software companies);

·    SEQI can mitigate interest rate risk by locking in higher interest rates with swaps;

·    we have a robust approach to loan valuations. Each loan valuation is independently reviewed every month by PricewaterhouseCoopers LLP ("PwC"), with the vast majority of our loans exited at or around the most recent mark price;

·    we aim to have a high level of disclosure. We report monthly, more frequently than many of our peers, with a detailed report on lending activity, relevant market conditions and statistics on the portfolio. If we have a non‑performing loan ("NPL"), we tell our Shareholders about it and provide updates as we work to resolve the situation. Each month, we publish a full list of our investments as an Excel spreadsheet save for redactions of highly commercially sensitive information; and

·    our underwriting standards have been strengthened and refined over 11 years of experience, through a number of market cycles and periods of disruption such as the COVID-19 lockdowns, Russia's invasion of Ukraine, an energy price shock and a spike of high inflation, as well as periods of both very low and relatively high interest rates. Over these tumultuous periods, our losses due to bad debts have been significantly lower than those of not just the broader credit markets, but also directly comparable high yield infrastructure lending.

NAV performance

Over the financial year, the Company's NAV per Ordinary Share increased from 92.55p to 93.17p, after paying dividends of 6.875p, producing a NAV total return of 8.4% (2025: 6.1%), compared to our target return of 7-8%.

NAV per share has grown in the year due to an increase in interest income and the positive effect of the share buyback programme. Our Investment Adviser discusses these movements in more detail in its report. In addition, net interest income (after operating expenses) more than covered dividend payments, also enhancing the NAV.

Our portfolio outperformed the liquid credit markets this year, with leveraged loans and high yield bonds generating total returns of 5.9% and 5.0% respectively.

Capital allocation

During the financial year, the Company has maintained a balanced and consistent approach to capital allocation with an active buyback programme sitting alongside continued reinvestment in infrastructure debt. Our flexible approach to share buybacks has enabled the programme to remain in place since July 2022 and allowed us to increase our purchases when the discount widens. During the year £59.5 million was returned to Shareholders through share buybacks and £422.1 million of new loans were made (including some commitments entered into but not fully drawn by year end). These new investments were predominantly senior secured loans (representing 69% of the total) in Europe and the UK (collectively 81% of the total), and were well diversified, being spread across five of the Fund's eight investment sectors. In addition, 58.5% of the loans are fixed rate, providing security of income.

These new loans were funded by the recycling of the proceeds received from maturing loans and loans that repaid early, leaving our £300 million revolving credit facility ("RCF") undrawn at the year end. We have very good visibility on loans scheduled for repayment in the near term and the zero RCF balance is consistent with our long-standing strategy of having low or no structural leverage while using the RCF periodically to manage short‑term cash movements with the intention of remaining fully invested.

The Board believes that, looking to the future, it is important for the Fund to strike a balance between supporting our share price rating through buybacks and continuing to make new investments to refresh the portfolio and maintain access to high-quality transactions alongside reputable global sponsors.

Share price performance and the ongoing discount

The market environment has remained challenging for all investment companies, and in particular the alternatives sector, where most of the companies' shares are continuing to trade at a significant discount to NAV. Across the infrastructure, renewable energy and debt sectors of investment trusts - which include 39 different trusts with a combined market capitalisation of £22.3 billion (as at our year end) - the average discount has increased from 22.0% at the start of the financial year to 22.4% at the end.

In relation to SEQI, the share price discount to NAV widened from 15.4% to 17.8%. At the end of February 2026, the discount had reduced to single figures and was on a downwards trajectory. However, markets were then hit by the broadening Middle East conflict centred on Iran and the accompanying rise in inflation expectations and fixed income yields. This resulted in a significant reduction in the share price over the last month of the year: from 84.40p at the end of February to 76.60p at the year end. The share price has since recovered and now stands at 81.40p as at 9 June 2026. The year-end share price total return was 6.6% (2025: 5.3%) once dividends are taken into account. Share price performance is discussed in more detail in the Investment Adviser's report.

Reducing (and eventually eliminating) the discount continues to be a key strategic objective of the Board. To help achieve this, we have:

·    an active and ongoing buyback programme, with 75.3 million shares costing £59.5 million repurchased over the financial year (2025: 70.4 million shares costing £55.9 million) and 288.5 million shares repurchased since the beginning of the programme;

·    a continuing active dialogue with investors and a philosophy of open and transparent dissemination of information with considerable investment in various online content including monthly investor reporting;

·    positive engagement with policymakers, alongside other investment companies (especially in the alternatives sector), resulting in the Pension Schemes Act 2026 introducing significant changes to UK defined benefit schemes designed to encourage investment in alternative assets; and

·    a continual assessment of best practice in the sector and review of alternative options and strategies.

The ongoing share purchases by the Directors of the Company and the directors of the Investment Adviser reflect our shared conviction in the investment case and the value provided by the current share price. In total, 70,843 (2025: 62,059) Ordinary Shares were bought by these parties during the financial year. In addition, the Investment Adviser bought 1,223,481 (2025: 1,235,468) Ordinary Shares during the financial year. However, they also sold 3,200,000 shares to help fund the launch of a new Asian closed-ended infrastructure fund which, if achieved, has the potential to open up further opportunities for SEQI. In total, the aggregate investment of these parties in the Company at the year end is 6,161,926 Ordinary Shares (2025: 8,092,121), including shares acquired by the Investment Adviser under the terms of the Investment Adviser agreement

SEQI's changing share register

As part of its discount management programme, the Board has an ongoing programme of initiatives, working with the Investment Adviser and our joint Brokers, to market the Ordinary Shares to a wider audience, with the goal of attracting new investors.

Over the past three years, we have seen a significant change in the composition of our share register. Institutional investors have fallen from 45% to 39%; wealth management firms remained fairly constant, moving from 49% to 47%; and it has been pleasing to see that retail investors (investing through platforms such as Hargreaves Lansdown, Interactive Investor and AJ Bell) have increased from 6% to 14%. We hope that the recent ISA changes will encourage more retail investors as they seek a strong income and stable capital.

These changes have been in line with movements in the wider London-listed funds sector. The ongoing consolidation of wealth management firms has resulted in significant changes to holdings as merged firms consolidate and adjust holdings and ownership guidelines. However, the increase in retail investors with more individual investors taking an interest in, and control of, their own share portfolios is a positive trend which we think could grow further in the years ahead.

SEQI has responded proactively to these changes.

·    Firstly, we have stepped up our engagement with retail investors, by investing in our website and participating in retail-focused webinars and conferences. We have mandated Kepler Partners to help us communicate effectively with individual investors

·    Secondly, we have maintained our strong relationship with institutional investors and wealth managers. Although their percentage of the share register has declined, they remain the bedrock of our investor base

·    Thirdly, we continue to work with our Brokers, Jefferies and J.P. Morgan, to seek out new investors, including those from new jurisdictions

It is our belief that SEQI's shares continue to offer excellent value and that the share price has the real potential to respond positively to increasing demand, which could be stimulated by a wider marketing approach.

Dividend

Our dividend of 6.875p per Ordinary Share remains cash covered at 1.06x (2025: 1.00x). The level of cash cover is higher than the previous year, due in part to the receipt in cash of capitalised interest and also strong new lending activity, which generated fee income of 0.49p per Ordinary Share. The dividend yield of 9.0% as at 31 March 2026 compares favourably to the yield on leveraged loans (5.9%), high yield bonds (5.0%) and the Company's peer group in the AIC Infrastructure sector (6.1%).

Paying an attractive, stable and covered dividend is an important part of the Company's value proposition to investors and the Board believes that the current level can and will be maintained going forward, subject to any unforeseen circumstances.  However, the Board is mindful of the increased broader risk environment, and hence keeps the level of dividend under constant review to ensure that it remains sustainable.

Portfolio performance

Our investment strategy over the financial year has been to maintain portfolio credit quality and diversification, while targeting a portfolio yield of 9-10%.

·    Credit quality has improved or been maintained against a number of key metrics: the proportion of the portfolio invested in senior secured loans rose from 59.9% to 63.5%; the weighted average "equity cushion" (being the average amount of equity capital in the businesses that we lend to, expressed as a percentage of their total capital) remained broadly flat at 38% compared to 39% in the prior year, as did construction risk at 12.8% compared to 12.5%

·    Diversification has been maintained, albeit with a smaller number of investments, covering eight sectors and 27 sub-sectors, marginally down from 29 sub-sectors

·    Yield has been maintained: our portfolio's weighted average yield-to-maturity, which measures both the income and future capital gains, fell slightly from 9.9% to 9.6% - a significantly smaller fall than for UK base rates, reflecting the high proportion (58.5%) of fixed-rate loans in the portfolio and the impact of the interest rate hedging strategy we undertook to protect the portfolio from falling interest rates

During the year, the Fund committed £422.1 million to new loans (including USD/EUR and other currency loans converted into Sterling), contributing to a balanced sector and geographic mix, as well as a more defensive positioning through a slightly higher proportion of senior-ranked loans.

We have made progress on our two NPLs, which now represent only 0.3% of our NAV, compared to 1.0% last year. These investments comprise a loan backed by a property in Washington DC that was previously leased to a school (representing less than 0.02% of NAV) and a municipal infrastructure loan in Germany (representing 0.3% of NAV). The valuation of the Washington DC loan was further written down during the year and has now been sold. On the German loan, the Investment Adviser continues to work diligently to realise value from the underlying assets and we will update our investors as and when there are further developments. NPLs are discussed in more detail in the Investment Adviser's report.

While not classified as an NPL, our investment in Active Care Group ("ACG") continued to be a focus for the Investment Adviser and the Board. The Company has been the majority shareholder of ACG since its restructuring in May 2024, and our aggregated investment in ACG now represents 7.1% of NAV. This is substantially more than our typical exposure to a single investment. However, much of our funding to ACG since we became its owner has been directed at improving the operational profitability, and therefore the value, of the business. In particular, we have made efforts to pivot the business from one substantially funded by the public sector (where fee rates have lagged inflation for many years), to one capable of attracting more private-pay patients. ACG is discussed in more detail in the Investment Adviser's report, along with some of the risks associated with the investment.

The Investment Adviser closely monitors every loan within the portfolio. The Board reviews the portfolio at each quarterly Board meeting and, in addition, undertakes a more detailed review semi-annually. When necessary, loans are also subject to further enhanced scrutiny by our Investment Adviser and AIFM.

The evolving opportunity

The geographical scope of SEQI's investment remit has remained unchanged since its IPO in March 2015. It is currently limited to the US and Canada, the UK and certain other European countries, Australia and New Zealand. Whilst the target jurisdictions selected 11 years ago were appropriate given the scale of opportunities then available and the limited private infrastructure debt market development elsewhere, that approach is no longer optimal. Other markets have now reached a sufficient state of maturity and the Investment Adviser has identified potential opportunities, often via existing sponsor relationships, in certain non‑eligible jurisdictions, which the Company is currently unable to take advantage of.

Given this, we are intending to undertake a consultation exercise with Shareholders to discuss extending our investment policy to include a wider range of carefully selected jurisdictions, with a view to proposing this at the upcoming AGM if thought appropriate.

Sustainability

In a rapidly evolving regulatory and geopolitical environment, sustainability remains a key pillar in SEQI's approach to infrastructure credit investing. Over the past year, the Board and Investment Adviser undertook a comprehensive review of the Company's sustainability framework to ensure it remains robust, relevant, and at the forefront of emerging best practice. This review marks an important evolution in SEQI's sustainability journey.

Since 2019, SEQI has embedded ESG considerations into its investment process. Its proprietary ESG scoring system helped guide capital allocation decisions, resulting in a much cleaner portfolio today with no direct exposure to assets considered the least environmentally friendly such as coal terminals or oil rigs, which are contrary to the Company's negative screening policy described in the sustainability section of this report. This is a notable accomplishment. Seven years on, the Board recognises that regulatory and market expectations have evolved, particularly with the growing emphasis on identifying both dependencies and impact, new issues coming to the fore such as cybersecurity and data management, and advances in tools that enable more accurate investment-useful modelling of climate scenarios and transition risks for instance.

These factors prompted a wholesale review of SEQI's approach to sustainability. During the year, we conducted a wide-ranging stakeholder materiality assessment, seeking feedback from SEQI investors, the Board of Directors, and key services providers including the Investment Manager and Adviser, on exactly these issues.

As a result, I am pleased to announce that SEQI has adopted a revised sustainability framework as of 1 April 2026. At its core is a new dual-scoring system, comprising:

·    an ESG Risk Score, measuring the extent to which material ESG factors could affect a borrower's credit quality and financial resilience; and

·    an Externality Score, measuring material net effects a borrower may have on the environment and society.

More details of this new scoring mechanism are contained in the Investment Adviser's report and SEQI's sustainability report for 2026. Financial year 2026/27 will represent an implementation year as we continue to refine the new methodology with a view to obtaining an independent assurance opinion over it at 31 March 2027.

The review also led to other refinements of SEQI's sustainability policies, including updates to the negative screening and thematic investing categories.

This evolution demonstrates our continued commitment to improvement in how we embed sustainability into our risk management, credit discipline and long-term value preservation to support the Company's objective of delivering attractive, stable returns for investors.

Board changes

There have been a number of changes in respect of the Board and its consultants. Margaret Stephens, Chair of the Audit Committee, stepped down on 31 March 2026. Margaret has made a massive contribution to SEQI, and I would like to thank her for her wisdom, guidance and unstinting commitment. Nicola Paul, who joined the Board last July, has taken over as Chair of the Audit Committee from 1 April 2026.

During the year, Kin Tang completed his placement with us as part of the Guernsey Training Agency's non-executive director ("NED") Development Programme. This programme provides unremunerated board placements for aspiring NEDs from diverse ethnic, social and career backgrounds.

Last autumn, the Board reviewed its workload and the support arrangements that were in place and concluded that it would be appropriate to appoint a new independent consultant with financial and risk expertise to provide enhanced support in a quasi‑CFO capacity for the Company. As a result, I am very pleased to welcome Graeme McDonald to the team. Graeme joined on 1 January 2026.

With the departure of Margaret, the Board has reduced from six to five members. We are not planning to initiate an immediate recruitment process for a new Director but will keep Board composition under review.

Changes to Articles

The Company undertook a review of its Articles of Association during the year and is proposing effective corporate housekeeping with non‑controversial changes to bring the Articles into line with accepted practice across the investment company sector. 

Outlook

The global macro‑economic picture remains challenging, affected by the continuing conflicts in Europe and the Middle East, which have impacted oil prices. While risk has undoubtedly increased because of these conflicts, we are confident that the Company is well positioned in the current market given the following characteristics:

·    a diversified portfolio of high-yielding loans, producing a portfolio yield of 9-10%;

·    a prudent approach to credit risk for new investments;

·    improved lending terms, in the context of heightened market volatility, since the end of the financial year;

·    continued focus on the share price, proactive approach to discount management through share buybacks and continued Shareholder engagement; and

·    an attractive dividend yield, covered by the income generated by the portfolio.

Finally, I would like to thank our Shareholders for their continued support. We operate in challenging times, but we believe that lending to infrastructure projects remains a robust and differentiated strategy that can deliver strong risk-adjusted returns for investors.

James Stewart

Chair

10 June 2026

Investment Adviser's report

The Investment Adviser's objectives for the year

During the financial year, Sequoia Investment Management Company Limited ("SIMCo" or the "Investment Adviser") has had the following objectives for the Fund:

Gross portfolio return of 8-9%	Cash-cover the dividend target of 6.875p per Ordinary Share per annum	Manage portfolio credit quality in the face of economic uncertainty
The Fund is invested in a portfolio which currently yields 9.6% and produced a NAV total return of 8.4% in the year, ahead of the Company's target net annual return of 7-8% after annual costs of approximately 1%.	The Company paid four cash-covered quarterly dividends of 1.71875p per Ordinary Share in line with its dividend target, amounting to a total of 6.875p.	The proportion of the portfolio invested in senior secured loans rose from 59.9% to 63.5%; and NPLs are approximately only 0.3% of NAV.
Timely and transparent investor reporting	Target an interest rate profile of 40% floating rate and 60% fixed rate, to reflect the likelihood of falling interest rates	Follow a sustainable investment strategy and continue to enhance the sustainability profile of the Company and the portfolio
Monthly Factsheet, RNS NAV announcements and full portfolio disclosures have continued to provide investors with complete transparency. During the year, investor engagement included a capital markets seminar, roadshows and an ESG Investor roundtable event.	The floating rate portion of the portfolio remained broadly stable at 41.5% on 31 March 2026 from 40.6% a year previously. This was achieved through our loan origination activities and tactical use of interest rate swaps.	The overall ESG score of SEQI's portfolio at 31 March 2026 was 66.12, up from 64.70 in the previous year. SEQI redesigned its sustainability framework to align with evolving market standards and forward-looking best practices. Further details on the new approach can be found in the sustainability section of our website: https://www.seqi.fund/sustainability/.

Economic infrastructure debt occupies a distinctive place within the fixed income universe, offering investors reliable, long-term income streams backed by assets that provide essential services to society. The asset class benefits from structural characteristics resilient across economic cycles: high barriers to entry, predictable or contractually secured cash flows, and robust asset-backed security.

Overview of infrastructure debt

The sectors that make up economic infrastructure, including transportation, utilities, power, renewables, telecommunications and social infrastructure, are typically governed by long-term concessions, licences or regulatory frameworks, with revenues tied to demand, usage or contracted volumes. This creates an inherent stability that distinguishes infrastructure debt from broader corporate credit.

The global infrastructure investment gap remains vast. In their 2025 infrastructure report (3.5% to 2035: Bridging the global infrastructure gap, July 30, 2025), Allianz Research estimate that the world will need USD4.2 trillion per year of infrastructure investments for the next decade, with an annual funding shortfall of approximately USD0.5 trillion against current trajectories. While some of this gap is being addressed, challenges remain in energy transition, the digitalisation of economies, and the onshoring of supply chains driven by deglobalisation. The explosion in AI-related computing demand alone is expected to require USD5.2 trillion of data centre investment globally from 2025-2030 (McKinsey, The cost of compute: A $7 trillion race to scale data centres). In the meantime, energy security concerns, due to the Russia-Ukrainian war and more recently the US-Iranian conflict, have accelerated grid investment programmes across Europe and the UK.

Simultaneously, the supply of bank lending to mid‑market infrastructure projects has failed to grow in line with the requirements of the sector. The implementation of Basel IV capital requirements, which came into effect in January 2025, has further increased the cost of bank regulatory capital for unrated project finance loans, and provides a strong headwind against banks increasing their loan books. This continues to create a compelling opportunity for specialist private lenders with the origination expertise and credit skills to fill the gap, and it is precisely this space in which SEQI operates.

Market backdrop

VIX (volatility index)	Five-year swap rates	ICE BofA BB US high yield index option‑adjusted spread
What is happening? The financial year was marked by a high degree of geopolitical and macro‑economic uncertainty. Global financial markets experienced a sharp spike in volatility, most notably following the announcement of sweeping US tariff measures in April 2025, which drove the VIX index (which measures the market's expectation of 30-day forward-looking volatility implied by the S&P 500 Index option price) to a peak of 52.3. Towards the end of the financial year, the breakout of the Iran war further affected energy prices and contributed to a sharp rise in long‑term interest rates, putting pressure on listed alternatives share prices in the final weeks of the year. While volatility has declined from its peak, uncertainty has remained elevated throughout the year, with the VIX averaging 19.4 over the period compared to 16.7 in the prior year. Why this matters to the Fund Infrastructure debt has demonstrated resilience during periods of market stress. The asset class offers investors exposure to tangible assets and operating businesses providing essential or regulated services, with revenues that are less exposed to broader economic conditions when compared to the wider market. This means fundamental credit quality and cash generation tend to remain largely unaffected by episodes of volatility and valuation movements are mostly transient.	What is happening? Central banks across the Fund's investment jurisdictions continued to diverge in their approach to monetary policy over the financial year. The ECB and Bank of England maintained a gradual cutting cycle, while the Federal Reserve adopted a more cautious stance given persistent inflation concerns in the US. Five-year swap rates, a key reference point for fixed rate infrastructure loan pricing, fell broadly over the year before rising sharply in March 2026 following the escalation of tensions in the Middle East involving Iran, closing the financial year at USD: 3.6%, GBP: 4.2%, EUR: 2.6%. Why this matters to the Fund The movement in five-year swap rates has a direct bearing on both the valuation of the Fund's existing fixed rate portfolio and the pricing of new origination opportunities. The pull-to-par dynamic on existing loans is sensitive to the rate environment, while higher swap rates at year end have improved the prospective yield on new investments entering the pipeline. The Fund's active use of interest rate swaps has allowed it to manage this exposure tactically throughout the year.	What is happening? Credit spreads widened in April 2025 in the immediate aftermath of the tariff announcements, with the ICE BofA BB US High Yield OAS reaching a peak of 3.1% before recovering. Spreads ended the financial year at 2.1%, compared to 2.2% at the start of the period. USD credit spreads remain low by historical standards, but high yield credit spreads in Euros are higher, driven in part by concerns that high energy prices will have a long-term effect on the industrial and transport sectors in Europe. Why this matters to the Fund Wider credit spreads present both challenges and opportunities for the Fund. On the one hand, mark-to-market valuations on existing holdings face downward pressure during periods of spread widening. On the other hand, the Fund has been able to originate new investments at more attractive yields as a result, supporting the long-term income outlook. The Investment Adviser's disciplined approach to credit selection and its focus on senior secured, contractually protected cash flows has meant the portfolio has been relatively well insulated from the more acute stress experienced in broader high yield markets.

Themes in the infrastructure debt market

Over the course of the financial year, the Investment Adviser has identified several key themes shaping the infrastructure debt market. These themes have influenced both the types of opportunities being pursued and the way capital is being allocated within the portfolio.

AI and digitalisation

The rapid expansion of artificial intelligence has created unprecedented demand for digital infrastructure, driving a wave of capital into data centres that has compressed risk-adjusted returns to a level the Investment Adviser no longer considers adequate compensation for high yield lenders. The Fund has therefore maintained, rather than grown, its direct data centre exposure, declining a number of opportunities on return grounds during the year.

Instead, the Investment Adviser has focused on adjacent opportunities where the AI buildout creates infrastructure demand but competition remains less intense. Power infrastructure serving data centres is one such area, exemplified by the extension and upsize of the Fund's facility to Project Grange, a leading Irish provider of infrastructure standby generation, with a total commitment of €75 million and a yield to maturity of over 9%. The Fund also selectively added broadband and fibre exposure during the year where pricing remained attractive.

Energy security

Energy security has emerged as one of the defining infrastructure investment themes of the mid‑2020s. The transition away from fossil fuels, the electrification of transport and heating, and the growing power demands of the digital economy have together created substantial and long-dated investment requirements.

These needs have been further accelerated by geopolitical events: Russia's invasion of Ukraine exposed the vulnerability of European energy systems to supply disruption, while the escalation of Middle East tensions involving Iran has reinforced the political and commercial case for energy independence across SEQI's target markets.

During the year, the Investment Adviser made a number of investments reflecting this theme, including two interconnector transactions linking power grids across jurisdictions, which directly support grid resilience and cross-border energy balancing. The Fund also added solar generation exposure in Europe. The Investment Adviser believes energy security will remain a multi-decade investment theme and the Fund is well positioned to continue originating attractive opportunities across this value chain.

Private credit market growth and scrutiny

Private credit assets under management have grown from approximately USD1.1 trillion at end 2020 to c.USD1.8 trillion by end 2025 (Preqin), attracting growing scrutiny around valuation robustness, underwriting standards and disclosure quality, most visibly in the US Business Development Company sector.

The Investment Adviser believes these concerns do not apply to SEQI, and that the current environment of heightened scrutiny serves to highlight the Fund's differentiating characteristics. Infrastructure debt has historically exhibited structurally lower default rates and higher recovery values than general corporate lending, reflecting the essential nature of the underlying assets and services, and the security packages typically available to lenders. SEQI has no exposure to the segments currently under most pressure, such as software.

Instead, the Fund's loans are underpinned by tangible, cash-generative infrastructure assets and operating businesses providing essential services, supporting downside protection and recoverability in a way that is distinct from more enterprise value-based lending models.

Every loan the Fund makes is independently valued monthly by PwC, with its disposal track record providing further validation: during the year, the Fund exited £474.7 million of private loans at an average price of 1.1% above the two-month-prior carrying value. The Fund also reports monthly with full portfolio disclosure, a level of transparency materially higher than most private credit peers.

NAV performance

Over the last 12 months, the Company's NAV per share increased from 92.55p to 93.17p, after paying dividends of 6.875p, producing a NAV total return of 8.4% over the period. In comparison to liquid credit markets, SEQI outperformed leveraged loans and high yield bonds, which generated total returns of 5.9% and 5.0% respectively over the same period.

NAV effect	Year ended 31 March 2026	Year ended 31 March 2025
Interest income on the Fund's investments	8.27p	8.17p
Portfolio valuation movements, net of foreign exchange and hedge movements	0.11p	(1.45)p
IFRS adjustment from mid‑price at acquisition to bid price	(0.29)p	(0.17)p
Operating costs (including interest expense)	(1.33)p	(1.59)p
Gains from buying back shares at a discount to NAV	0.74p	0.70p
Gross increase in NAV	7.50p	5.66p
Less: Dividends paid	(6.88)p	(6.88)p
Net increase/(decrease) in NAV after payment of dividends	0.62p	(1.22)p

The NAV growth during the year was primarily driven by interest income and the continued positive contribution of the share buyback programme.

The portfolio pull-to-par, which is a measure of future NAV gains that will arise solely through the passage of time, is 4.5p per share as at 31 March 2026. The "pull-to-par" effect refers to the principle that a debt instrument's market value progressively approaches its notional value as it nears maturity, assuming stable credit quality and no risk of default. This occurs because the issuer is contractually obligated to repay the notional amount at redemption. As a result, the investment's market price increasingly aligns with its redemption value over time, regardless of prevailing market conditions. Pull-to-par also includes the gain or loss that arises as interest rate swaps approach their maturity date.

Share performance

As at 31 March 2026, the Company had 1,479,731,915 Ordinary Shares in issue (31 March 2025: 1,555,061,936). The closing share price on that day was 76.60p per Ordinary Share (31 March 2025: 78.30p), implying a market capitalisation of approximately £1.1 billion. After taking account of quarterly dividends amounting to 6.875p per Ordinary Share, the share price total return over the period was 6.6%, outperforming leveraged loans and high yield bonds which generated total returns of 5.9% and 5.0% respectively.

The year told two distinct stories on share price. Through the first 11 months, sentiment towards SEQI improved materially, with the share price reaching a peak of 84.40p at the end of February 2026 and the discount to NAV narrowing to single digits, reflecting growing investor recognition of the Fund's strong income generation and improving NAV. However, the escalation of Middle East tensions involving Iran in March 2026 triggered a sharp rise in fixed income yields and a broad-based sell‑off across listed alternatives, reversing much of the year's gains in the final weeks.

The year-end discount of 17.8% therefore reflected the impact of this late-period market disruption, rather than the share price progress achieved over most of the year, or, in the Investment Adviser's view, the fundamental quality of the portfolio.

The sector-wide discount to NAV has continued to face pressure, with the average discount across the infrastructure, renewable energy and debt sectors moving from 22.0% at the start of the financial year to 22.4% at year end. SEQI's discount, while wider than we would like, compares favourably to many peers and has been among the least volatile in the sector.

The Company continued its active share buyback programme during the year, repurchasing 75.3 million Ordinary Shares at a cost of £59.5 million. Since the programme was first announced in July 2022, the Company has bought back a total of 288.5 million Ordinary Shares. Both the Investment Adviser and the Board believe the current share price discount to NAV remains unwarranted given the strength and resilience of the portfolio, and the buyback programme remains an important tool in managing this discount while delivering NAV accretion for remaining Shareholders.

Dividend cash cover

SEQI has paid 6.875p in dividends during the last 12 months in accordance with its target. The Fund's dividend cash cover was 1.06x for the financial year, an improvement on the prior year's 1.00x. This improvement reflects two principal factors: the receipt in cash of capitalised payment-in-kind ("PIK") interest during the year; and strong new lending activity, which generated fee income of 0.49p per Ordinary Share.

Looking forward, the Investment Adviser is of the view that the dividend remains sustainable, subject to any unforeseen circumstances, given the strong pipeline of investment opportunities and the yields available on private infrastructure debt.

Portfolio overview

Throughout the financial year, the Fund maintained a disciplined focus on building and managing a diversified portfolio of private debt investments across core infrastructure sectors in jurisdictions with low political and regulatory risk. The strategy remained centred on delivering target returns while maintaining and improving the credit quality of the portfolio.

Consistent NAV returns during volatility

Over the past decade, SEQI has delivered an annualised total NAV return of 8.1%, significantly outperforming Sterling-hedged High Yield Bonds, which returned 4.1% during the same period. This year's NAV total return of 8.4% marks an improvement on the prior year and demonstrates the consistency of SEQI's investment approach in an environment of elevated macro‑economic uncertainty and volatility in listed alternatives. With a weighted average yield-to-maturity of 9.6% and a portfolio pull-to-par of 4.5p per share, the Fund remains structurally positioned to deliver both sustained income and capital appreciation as assets mature.

Consolidation and new investment activity

The number of investments in the portfolio decreased from 59 to 50 over the 12-month period. This reflects active portfolio management, including the exit of smaller positions and more liquid public bond holdings, consolidating the portfolio into fewer, higher-conviction positions.

The Investment Adviser has actively redeployed capital from maturing and exited assets into an attractive pipeline of new opportunities and repaid the outstanding RCF as of the prior year end.

The Fund committed £422.1 million to new loans during the year, predominantly senior secured (69% of total) and concentrated in Europe and the UK (81% of total), spread across five of the Fund's eight investment sectors.

Diversification

As a result of new lending activity, the Fund's portfolio remains well diversified across loan types, geographies, sectors and sub-sectors, supported by defined investment limits that underpin this balance.

Credit quality

The proportion of senior secured loans increased from 59.9% to 63.5%, providing enhanced downside protection across the portfolio.

Private debt exposure increased from 90.8% to 94.1%, reaffirming the Fund's core strategy and reversing the modest decline seen in the prior year. Private debt typically enjoys a higher yield than public debt (e.g. high yield bonds) of the same credit quality.

Our policy not to invest in distressed, stressed or "CCC profile" loans remains in place.

NPLs reduced to 0.3% of NAV, down from 1.0% at the prior year end.

Interest rates

The Fund has maintained its shift towards a higher percentage of fixed-rate assets, with 58.5% of the portfolio invested in fixed-rate assets as at year end. The increase in modified duration from 1.9 to 2.3 years reflects this deliberate strategy of locking in currently attractive long-term yields via longer-dated interest rate swaps.

Construction risk

Construction risk exposure increased marginally from 12.4% to 12.8% of the portfolio as at 31 March 2026, remaining well within the Company's 20% policy limit and below the historical average. The Fund continues to apply a selective and disciplined approach to greenfield projects, investing only where the return appropriately compensates for construction-related risk and avoiding projects carrying both construction and demand or ramp-up risk.

Portfolio characteristics

Fund performance

		31 March 2026	31 March 2025	31 March 2024
Net asset value	per Ordinary Share	93.17p	92.55p	93.77p
	£ million	1,378.6	1,493.2	1,524.3
Cash held (including in the Subsidiaries)	£ million	49.2	35.1	99.4
Balance of RCF	£ million	0.0	56.9	0.0
Invested portfolio	percentage of NAV	97.7%	100.8%	90.6%
Total portfolio	including investments in settlement	103.6%	109.8%	94.2%

Portfolio characteristics

		31 March 2026	31 March 2025	31 March 2024
Number of investments		50	59	55
Valuation of investments	£ million	1,320.6	1,423.6	1,380.7
ESG score		66.12	64.70	62.77
Largest exposure	£ million	97.8	70.3	60.6
	percentage of NAV	7.1%	4.9%	4.0%
Single largest investment	£ million	62.3	61.7	60.6
	percentage of NAV	4.5%	4.3%	4.0%
Average investment size	£ million	26.4	23.7	22.6
Sectors	by number of invested assets	8	8	8
Sub-sectors		27	29	30
Jurisdictions		11	10	10
Private debt	percentage of invested assets	94.1%	90.8%	96.9%
Senior debt		63.5%	59.9%	58.6%
Floating rate		41.5%	40.6%	42.1%
Construction risk		12.8%	12.4%	7.4%
Weighted average maturity	years	3.6	3.6	4.4
Weighted average life	years	3.4	3.4	3.9
Yield-to-maturity		9.6%	9.9%	10.0%
Modified duration		2.3	1.9	2.2

Credit performance

Over the past financial year, the credit performance of the portfolio has remained resilient. The Fund's annual loss rate is 0.54%, and the proportion of non-performing loans has fallen to 0.3% of NAV, the lowest level since inception, reflecting both the resolution of several legacy positions and the continued high credit quality of new origination activity.

Non-performing loans

Lenders are, in general, obligated to maintain confidentiality towards the companies they lend to. The Company's policy is therefore not to publish specific details of underperforming loans, except where the borrower has entered a public insolvency process. Further, publicly disclosing the challenges at any underperforming business could worsen its operational prospects, for instance by making it harder to retain employees or secure new contracts.

A loan secured against a property in Washington DC, which had been impaired following a significant reduction in federal education funding in the city, was further written down during the year and has now been sold.

Thereafter, the Fund holds one remaining non‑performing loan, representing 0.3% of NAV. The loan is secured against a tangible asset and is carried at a value consistent with the Investment Adviser's conservative assessment of recoverable value. Legal proceedings remain ongoing and the Investment Adviser continues to work actively to maximise recovery for Shareholders. The Company is unable to provide further details regarding the identity of the borrower for commercial reasons and will update investors as circumstances allow.

Balance sheet management

The Fund ended the financial year with the RCF fully repaid and a cash balance of £49.2 million (including cash held in the Subsidiaries), reflecting strong capital recycling activity throughout the year. Notably, some of this cash is not investable as it is tied to the interest income of the Fund and is therefore earmarked for our investors' next dividend payment. The invested portfolio stood at 97.7% of NAV at year end, consistent with the Fund's objective of remaining fully deployed.

New origination has been concentrated in sectors where the Investment Adviser sees the most compelling risk-adjusted returns at this point in the cycle, notably renewables, power and digitalisation, while the broader portfolio has been actively tilted toward defensive, senior secured positions. The Investment Adviser continues to see an attractive pipeline of opportunities across the Fund's target markets and remains focused on maintaining full deployment as capital is recycled from maturing positions.

Origination activities

SEQI's investment strategy targets opportunities across both the primary and secondary debt markets, each offering distinct advantages. Primary market investments allow the Fund to earn upfront lending fees and structure transactions to meet specific risk and return criteria, while secondary market acquisitions facilitate the efficient deployment of capital into seasoned assets with established performance histories.

Primary market origination

The primary market remains the Fund's core focus, representing 88.6% of the portfolio as at 31 March 2026, an increase from 83.7% in the prior year. The Investment Adviser actively originates bilateral transactions and participates in club deals involving a small group of aligned lenders, where it can negotiate favourable terms and maintain strong ongoing relationships with borrowers. Primary market activity has been well diversified across sectors and geographies during the year, with a continued preference for senior secured structures.

Secondary market acquisitions

Secondary market acquisitions, representing 11.4% of the portfolio, provide a complementary source of deployment, enabling rapid capital recycling into seasoned assets with established credit histories. The Investment Adviser selectively uses the secondary market to manage portfolio composition and enhance liquidity where appropriate.

Expanding our investment universe

As SEQI approaches its twelfth year of operation, the Investment Adviser has identified a growing number of attractive infrastructure debt opportunities in jurisdictions outside the Fund's current eligible geography. While the Fund's original investment mandate was well suited to the market landscape at the time of its IPO in 2015, the global infrastructure debt market has developed significantly since then, with compelling opportunities now emerging across a broader range of developed economies.

The Investment Adviser is therefore working with the Board to propose an expansion of the Fund's eligible jurisdiction list to include investment grade rated member countries of the Organisation for Economic Co-operation and Development beyond the current mandate. This would include robust developed economies such as Japan and South Korea, where the Investment Adviser has been building origination capability, including through the opening of a new office in Hong Kong. No capital has been deployed into new jurisdictions at this stage. The Board intends to consult Shareholders formally on this proposed change.

Active Care Group

ACG is a UK provider of complex care, including acquired brain injury, acquired spinal injury, neurological conditions, learning disabilities, and respiratory and ventilation. ACG operates across hospitals and step-down residential settings, supported living, care in the home, and case management.

ACG is active across several main segments:

·    Residential and Neuro: The largest segment by revenue and EBITDA, operating specialist neuro‑rehabilitation and complex-needs residential facilities across a national estate and 812 beds

·    Care in the Home ("CITH"): Provision of domiciliary complex care packages 

·    Case Management: Co-ordination of care and rehabilitation packages

·    Staffing: Provision of specialist clinical and care staff through ACG's internal bank and external placement model

Our investment in ACG

Following the restructuring of the business in May 2024, the Fund has investments across ACG's capital structure, including senior secured debt (along with other lenders) and subordinated debt (held via the Luxembourg Subsidiary) and common equity (held by a UK Subsidiary). To be prudent, we currently ascribe no value to the common equity, although this may change as we make progress on our exit strategy.

Instrument	Cost £ million	Valuation £ million
Senior secured debt	50.6	62.0
Subordinated debt	52.3	35.8
Common equity	0	0

Note that the senior secured debt is being held at a premium to cost, reflecting the accrual of interest, while the subordinated debt is at a discount to cost, as a result of the valuation process.

The clear result has been a transformation in the quality of the estate:

·    £30.8m estate investment: invested in upgrading clinical environments and the wider estate

·    £7.7m IT investment: modernising digital infrastructure and clinical systems

Continuing investment in the business, improving quality and building a platform for future success

Over the past two years, ACG has had a focus on improving the quality of its care provision, which is central to its business and the key to future success. In total, approximately £38.5 million has been invested in the business, through a combination of funding from SEQI, third-party debt funding and internally generated funds.

At the same time, ACG is undergoing a strategic pivot away from NHS and local authority patients, by launching a new division, Active Neuro, providing neuro-rehabilitation services for insurance-funded and private-pay patients (as well as publicly funded ones). The UK has a chronic shortage of such facilities and privately funded patients carry higher margins and more favourable working capital dynamics than NHS‑funded care.

Financial strategy

As part of this pivot, ACG has embarked on a disposal programme of non-core assets, providing additional funding for investment in the private-pay part of the business and increasing the group's operational focus on neuro-rehabilitation. At the same time, as it executes on its strategy, ACG will be able to return capital to its lenders, including SEQI.

The disposal programme began in the first calendar quarter of 2026, with the exchange of contracts for the sale of its Remeo division (long-term respiratory care) in May 2026. The programme is expected to continue over the course of 2026 and into 2027.

Risks

The performance of the Fund's investments in ACG is subject to material risks including, but not limited to: the ability of ACG to meet its budget, including the rollout of private-pay neuro-rehabilitation services; its ability to dispose of non-core divisions and assets at suitable prices and on a timetable consistent with its business plan; its ability to manage its operating costs; its ability to manage its capital costs, including the cost of refurbishing and/or acquiring and/or redeveloping healthcare facilities; its ability to increase revenues from the public and private sectors in line with or faster than cost inflation; its ability to manage its working capital requirements; its ability to continue to maintain appropriate banking and other financing facilities; its ability to retain and attract high-quality employees; the tax regime in the United Kingdom, including taxes related to payroll; and the general macro-economic conditions of the United Kingdom.

Sequoia Investment Management Company Limited

Investment Adviser

10 June 2026

Statement of comprehensive income

for the year ended 31 March 2026

	Year ended 31 March 2026 £	Year ended 31 March 2025 £
Revenue
Net losses on non-derivative financial assets at fair value through profit or loss	(1,528,490)	(4,073,438)
Net (losses)/gains on derivative financial assets at fair value through profit or loss	(2,122,832)	21,885,607
Investment income	126,694,918	78,766,311
Net foreign exchange gains	655,607	2,588,001
Total revenue	123,699,203	99,166,481
Expenses
Investment Adviser's fees	9,549,873	9,837,744
Investment Manager's fees	440,385	427,098
Directors' fees and expenses	408,807	333,969
Administration fees	641,859	505,738
Auditor's fees	256,638	246,112
Legal and professional fees1	623,758	1,850,074
Valuation fees	708,000	725,500
Custodian fees	216,951	219,056
Listing, regulatory and statutory fees	160,782	167,894
Other expenses	813,747	720,827
Total operating expenses	13,820,800	15,034,012
Loan finance costs	5,734,997	4,332,589
Total expenses	19,555,797	19,366,601
Profit and total comprehensive income for the year	104,143,406	79,799,880
Basic and diluted earnings per Ordinary Share	6.83p	5.04p

1  Legal and professional fees in the prior year included an amount of £1,025,463 in respect of fees relating to the Fund's investment in Bulb Energy. During the year, the Company's Luxembourg Subsidiary received an amount of £4,476,861 in costs recovered in relation to the Bulb litigation.

All items in the above statement are from continuing operations.

Statement of changes in Shareholders' equity

for the year ended 31 March 2026

Year ended 31 March 2026	Share capital £	Retained losses £	Total £
At 1 April 2025	1,664,593,419	(225,404,819)	1,439,188,600
Ordinary Shares buybacks during the year	(59,504,805)	-	(59,504,805)
Total comprehensive income for the year	-	104,143,406	104,143,406
Dividends paid during the year	-	(105,187,386)	(105,187,386)
At 31 March 2026	1,605,088,614	(226,448,799)	1,378,639,815

Year ended 31 March 2025	Share capital £	Retained losses £	Total £
At 1 April 2024	1,720,452,093	(196,169,547)	1,524,282,546
Ordinary Shares buybacks during the year	(55,858,674)	-	(55,858,674)
Total comprehensive income for the year	-	79,799,880	79,799,880
Dividends paid during the year	-	(109,035,152)	(109,035,152)
At 31 March 2025	1,664,593,419	(225,404,819)	1,439,188,600

Statement of financial position

as at 31 March 2026

	Year ended 31 March 2026 £	Year ended 31 March 2025 £
Non-current assets
Non-derivative financial assets at fair value through profit or loss	1,396,025,452	1,479,215,419
Current assets
Cash and cash equivalents	2,076,117	7,523,136
Trade and other receivables	1,566,407	2,411,179
Derivative financial assets at fair value through profit or loss	4,732,642	17,669,291
Total current assets	8,375,166	27,603,606
Total assets	1,404,400,618	1,506,819,025
Current liabilities
Trade and other payables	4,057,973	3,596,055
Derivative financial liabilities at fair value through profit or loss	21,702,830	7,181,087
Total current liabilities	25,760,803	10,777,142
Non-current liabilities
Loan payable	-	56,853,283
Total liabilities	25,760,803	67,630,425
Net assets	1,378,639,815	1,439,188,600
Equity
Share capital	1,605,088,614	1,664,593,419
Retained losses	(226,448,799)	(225,404,819)
Total equity	1,378,639,815	1,439,188,600
Number of Ordinary Shares	1,479,731,915	1,555,061,936
Net asset value per Ordinary Share	93.17p	92.55p

The Financial Statements were approved and authorised for issue by the Board of Directors on 10 June 2026 and signed on its behalf by:

James Stewart

Chair

Statement of cash flows

for the year ended 31 March 2026             

	Year ended 31 March 2026 £	Year ended 31 March 2025 £
Cash flows from operating activities
Profit for the year	104,143,406	79,799,880
Adjusted for:
Net (gains)/losses on non-derivative financial assets at fair value through profit or loss	(8,464,952)	4,073,438
Net losses/(gains) on derivative financial assets at fair value through profit or loss	2,122,832	(21,885,607)
Investment income	(116,701,476)	(78,766,311)
Net foreign exchange gains	(655,607)	(2,588,001)
Loan finance costs	5,734,997	4,332,589
Increase in trade and other receivables (excluding prepaid finance costs and investment income)	(148,562)	(59,360)
Increase/(decrease) in trade and other payables (excluding accrued finance costs, investment income and Ordinary Share buybacks)	101,822	(58,883)
	(13,867,540)	(15,152,255)
Cash received on settled forward contracts	30,138,563	36,116,611
Cash paid on settled forward contracts	(3,760,216)	(1,682,966)
Cash investment income received	96,420,734	107,906,897
Cash received on disposal of interest rate swaps	-	5,323,394
Interest rate swap interest paid	(1,042,787)	(1,036,423)
Purchases of investments	(412,220,987)	(304,401,710)
Sales of investments	524,156,648	285,143,942
Net cash inflow from operating activities	219,824,415	112,217,490
Cash flows from financing activities
Proceeds from loan drawdowns	129,694,283	92,493,120
Loan repayments	(186,683,533)	(35,538,975)
Payment of loan finance costs	(4,937,882)	(5,030,210)
Ordinary Share buybacks	(58,960,785)	(57,033,497)
Dividends paid	(105,187,386)	(109,035,152)
Net cash outflow from financing activities	(226,075,303)	(114,144,714)
Net decrease in cash and cash equivalents	(6,250,888)	(1,927,224)
Cash and cash equivalents at beginning of year	7,523,136	7,507,495
Effect of foreign exchange rate changes on cash and cash equivalents during the year	803,869	1,942,865
Cash and cash equivalents at end of year	2,076,117	7,523,136

 

END