Half-year Financial Report
Summary by AI BETAClose X
Date: 19 November 2025
UTILICO EMERGING MARKETS TRUST PLC
UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS TO 30 SEPTEMBER 2025
Utilico Emerging Markets Trust plc ("UEM" or the "Company") today announced its unaudited financial results for the six months to 30 September 2025.
Highlights of results for the six months to 30 September 2025:
· Net asset value ("NAV") total return per share of 12.7%*
· NAV per share of 285.06p per share, up 10.8%
· Gross assets of £536.6m*, an increase of 7.9%
· Annual compound NAV total return since inception of 9.2%*
· Dividends per share totalled 4.745p for the period, an increase of 6.0%. Dividends were fully covered by earnings
· Revenue earnings per share ("EPS") increased 24.6% to 8.15p
· Total revenue income increased to £18.1m (2024: £14.7m)
*See Alternate Performance Measures on pages 39 to 41 of the Half-Yearly Financial Report for the six months to 30 September 2025
The Half-Yearly Financial Report for the six months to 30 September 2025 will be posted to shareholders in early December 2025. A copy will shortly be available to view and download from the Company's website at www.uemtrust.co.uk and the National Storage Mechanism at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. Please click on the following link to view the document: http://www.rns-pdf.londonstockexchange.com/rns/1728I_1-2025-11-19.pdf
Mark Bridgeman, Chairman of UEM said: "UEM celebrated its 20 year anniversary of listing in July. This milestone is a strong testament to the fund's long term strategic focus of investing in infrastructure and utilities within emerging markets and the experience of the dedicated investment management team. Looking at the Company's long term performance, over a five year period and since inception, UEM has returned 67.8% and 494.3% (9.2% per annum) respectively, outperforming the MSCI EM total return index, which was up 34.6% and 379.5% (8.1% per annum) over the same periods.
"The last six months have been challenging to navigate with heightened geopolitical and macro volatility. Nevertheless, the investment management team have continued to identify well managed infrastructure and utilities companies, offering investors a highly differentiated, benchmark agnostic portfolio.
"In August we announced a series of shareholder initiatives to enhance shareholder returns; as part of these, the planned 2026 continuation vote was brought forward to 2025 with the resolution passed by over 97% of shareholders voting. The Board would like to thank shareholders sincerely for their continuing support."
Charles Jillings & Jacqueline Broers, Investment Managers of UEM added: "UEM's strong performance for the first six months to 30 September 2025 was overshadowed by the surge in Asian AI and technology stock performances, witnessed in the latter half of the reporting period, which contrasts with UEM's highly differentiated portfolio focussed on infrastructure and utilities.
"Despite the macro and geopolitical backdrop, we are seeing a number of exciting investment opportunities. UEM's unique focus continues to be on bottom up investing in emerging markets, predominately in infrastructure and utilities companies that are well placed to benefit from the four global infrastructure megatrends (social infrastructure, energy growth & transition, digital infrastructure and global trade). These trends continue to be fundamental as infrastructure investment remains crucial for today's needs and tomorrow's innovation within emerging markets."
Contacts: Joint Portfolio Manager and Company Secretary
ICM Investment Management Limited +44(0)1372 271486
Charles Jillings / Jacqueline Broers / Alastair Moreton
Public Relations
Montfort Communications +44(0) 7798 626282
Gay Collins / Alex Everett
Joint Brokers
Shore Capital +44(0)20 7408 4090
Gillian Martin / Daphne Zhang
Barclays Bank +44(0)20 7623 2323
Dion Di Miceli / Stuart Muress / James Atkinson
BarclaysInvestmentCompanies@barclays.com
Performance Summary
|
|
|
|
|
% Change |
|
|
Half-year |
Half-year |
Annual |
Mar - |
|
|
30 Sep 2025 |
30 Sep 2024 |
31 Mar 2025 |
Sep 2025 |
|
|
|
|
|
|
|
NAV total return per share1 (%) |
12.7 |
(1.4) |
(2.9) |
n/a |
|
Share price total return per share1 (%) |
20.3 |
0.1 |
1.8 |
n/a |
|
Annual compound NAV total return1 (since inception) (%) |
9.2 |
9.1 |
8.8 |
n/a |
|
|
|
|
|
|
|
NAV per share (pence) |
285.06 |
266.00 |
257.28 |
10.8 |
|
Share price (pence) |
255.00 |
217.00 |
216.00 |
18.1 |
|
Discount1 (%) |
(10.5) |
(18.4) |
(16.0) |
n/a |
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
- Capital (pence) |
23.31 |
(10.96) |
(18.81) |
312.73 |
|
- Revenue (pence) |
8.15 |
6.54 |
9.95 |
24.63 |
|
Total (pence) |
31.46 |
(4.42) |
(8.86) |
811.83 |
|
|
|
|
|
|
|
Dividends per share (pence) |
4.7452 |
4.475 |
9.125 |
6.03 |
|
|
|
|
|
|
|
Gross assets1 (£m) |
536.6 |
519.4 |
497.4 |
7.9 |
|
Equity holders' funds (£m) |
515.0 |
499.9 |
479.8 |
7.3 |
|
Shares bought back (£m) |
14.1 |
6.5 |
9.6 |
116.93 |
|
|
|
|
|
|
|
Cash (£m) |
4.3 |
17.8 |
3.9 |
10.3 |
|
Bank loans (£m) |
(21.6) |
(19.5) |
(17.5) |
23.4 |
|
Net debt (£m) |
(17.3) |
(1.7) |
(13.6) |
27.2 |
|
Net gearing1 (%) |
(3.3) |
(0.3) |
(2.8) |
n/a |
|
|
|
|
|
|
|
Management and administration fees and other expenses (£m) |
3.7 |
3.8 |
7.4 |
(2.6)3 |
|
|
|
|
|
|
|
Ongoing charges figure1 (%) |
1.54 |
1.54 |
1.5 |
n/a |
(1) See Alternative Performance Measures on pages 39 to 41 of the Half-Yearly Financial Report for the six months to 30 September 2025
(2) The second quarterly dividend declared has not been included as a liability in the accounts
(3) Percentage change based on comparable six month period to 30 September 2024
(4) For comparative purposes the figures have been annualised
Chairman's Statement
UEM celebrated its 20 year anniversary of listing in July. This milestone is a strong testament to the fund's long term strategic focus of investing in infrastructure and utilities within emerging markets and the experience of the dedicated investment management team.
UEM delivered a NAV total return performance of 12.7% for the six months to 30 September 2025. While the MSCI EM total return Index in Sterling terms was 18.8%, this was driven primarily by a narrow set of technology companies. UEM focuses on infrastructure and utility stocks and consequently the relative underexposure to direct Artificial Intelligence ("AI") and technology investments, especially within the Asian markets, was the main reason for UEM's underperformance.
Given UEM's focus, where investment in infrastructure and utilities companies remains fundamental to the advancement of many emerging market economies, it is important to look at the Company's long term performance. Over a five year period and since inception, UEM has outperformed the MSCI EM total return Index reporting a return of 67.8% and 494.3% (9.2% per annum) respectively, whilst the MSCI EM Index was up 34.6% and 379.5% (8.1% per annum) over the same periods.
This last six months have continued to be challenging to navigate, with heightened geopolitical and macro volatility. The markets have witnessed continual changes to US President Trump's tariff policy; persistent question marks over the direction of US interest rates and inflation; an export led Chinese economy; ongoing geopolitical pressures with the Ukraine-Russia war; and mounting tension in the Middle East.
Nevertheless, the investment management team continues to identify well managed infrastructure and utilities companies, which offer investors a highly differentiated, benchmark agnostic portfolio, as reflected in the fund's active share (a measure of the difference between UEM's holdings and those in the MSCI EM Index) being over 97%. This bottom-up focus continues to be a key attribute of the fund, as the team continues to capitalise on the global infrastructure megatrends that are driving investment into infrastructure and utilities, and which is imperative to the development of many emerging market economies.
Shareholder initiatives
In August we announced a series of shareholder initiatives with the intention of enhancing shareholder returns. These initiatives included:
New conditional tender offer structure: a new performance-related tender offer benchmarked against the MSCI EM total return Index and measured over the five-year period to 31 March 2030, for up to 25% of UEM's issued share capital.
Share buyback commitment: the Board will continue to use its buyback programme to seek to address the discount to NAV at which UEM's shares may trade from time to time, with the ambition of maintaining a single digit discount in normal market conditions on a sustainable basis.
Progressive dividend policy: a continuation of the commitment to increase the total annual dividend, paid quarterly.
As part of these initiatives, the planned 2026 continuation vote was brought forward to 2025 and held at a General Meeting on the same day as the Company's Annual General Meeting ("AGM") in September. I am pleased to report that the resolutions at the General Meeting were passed by over 97% of shareholders voting. The Board would like to thank shareholders sincerely for their continuing support. The next continuation vote will take place at the AGM to be held in 2030.
Revenue Earnings and Dividend
UEM's revenue earnings per share ("EPS") increased by 24.6% to 8.15p compared to the six months ended 30 September 2024. The dividend remained fully covered by earnings.
UEM declared a first quarter dividend of 2.325p per share and an increased second quarter dividend of 2.42p per share, making a total of 4.745p per share for the half year. Based on two further quarterly dividends of 2.42p per share, the full year dividend to 31 March 2026 would amount to 9.585p, an increase of 5.0% on the prior year. The Board remains committed to pursuing a progressive dividend policy.
The retained earnings revenue reserves increased by £6.5m, over the six months to 30 September 2025 to £18.5m, equal to 10.22p per share.
Ongoing Charges
Ongoing charges were unchanged at 1.5% for the half year to 30 September 2025. This is an area that the Board remains focused on, regularly assessing the Company's service providers and fees.
Bank Debt
As at 30 September 2025, UEM's bank debt was £21.6m, an increase of £4.1m from £17.5m as at 31 March 2025. Net gearing stood at 3.3%
(31 March 2025: 2.8%). The increase in the gearing reflects our portfolio managers' positive views on the outlook for emerging markets and opportunities available.
Unlisted Investments (Level 3 Investments)
The primary focus for UEM has been, and continues to be, listed investments. As noted in the Company's annual report as at 31 March 2025, no new unlisted investment will be made, except in exceptional circumstances.
As at 30 September 2025, the value of the level 3 investments was £9.4m, representing 1.8% of the portfolio down from £13.4m (2.7% of the portfolio) as at 31 March 2025. The reduction is primarily due to the decrease in valuation of Petalite of £2.1m.
Share Buybacks
Over the six months to 30 September 2025, UEM's share price discount has narrowed from 16.0% to 10.5%. The Company bought back 5.8m shares during the period, equivalent to 3.1% of the shares in issue as at 31 March 2025 at an average price of 242.78p per share and a total cost of £14.1m. The share buybacks contributed 0.4% to UEM's total returns during the six months ended 30 September 2025. Since inception the fund has bought back 96.4m shares, at an aggregate cost of £187.9m.
Outlook
We continue to be positive on the long term outlook for emerging markets as the international economic order is realigning, which better reflects the growing economic weight of emerging markets in the global economy. Notwithstanding question marks arising around US exceptionalism, in the short term a slow down in global growth on the back of US tariffs remains a concern, particularly as China's economic recovery remains sluggish and partially obscured by the AI euphoria currently being reflected in the market. Trade tensions, despite thawing, continue to add an additional layer of uncertainty.
Nevertheless, despite higher market volatility, opportunities still remain. We continue to be confident that our strong management teams across the portfolio are able to navigate the challenging environment, especially as investments into infrastructure and utility assets remain critical for many emerging market economies to become resilient in the longer term.
Mark Bridgeman
Chairman
19 November 2025
Investment Managers' Report
UEM's strong performance for the first six months to 30 September 2025 was overshadowed by the surge in Asian AI and technology stock performances witnessed in the latter half of the reporting period. Given UEM's highly differentiated portfolio (reflected by its active share of over 97%) focused on infrastructure and utilities and lack of exposure to the technology euphoria, UEM's total return increased by 12.7% underperforming the MSCI EM total return Index which increased by 18.8% in Sterling terms. However, UEM's NAV performance over five years and since inception is ahead of the MSCI EM total return Index reporting a return of 67.8% and 494.3% (9.2% per annum) respectively whilst the MSCI EM total return Index was up 34.6% and 379.5% (8.1% per annum) over the same periods.
Investment Environment
In the six months to 30 September 2025, markets have continued to see heightened economic and political uncertainty. President Trump's gyrating US trade policy has not only started to reshape global trade but has also increased global tensions with tariffs being used not only as an economic tool, but for geopolitical purposes as well. Both Brazil and India have been on the receiving end of such actions.
Question marks have also started to emerge around US exceptionalism. Uncertainty over the direction of US monetary policy remains, as US inflationary pressures have persisted, despite evidence of a slowing labour market and GDP growth.
Relations between the US and China continue to be precariously balanced with both sides strategically competitive and distrustful, yet cognisant of the need to coexist. China continues to see macroeconomic weakness. Whilst China's GDP growth is likely to reach its annual 'target' of around 5.0%, consumer confidence remains weak, the property market - once the engine room of growth - is fragile, and local government debt levels are stressed. This weakness though is not being reflected in the Chinese markets which are dominated by the AI euphoria, coupled with a strong belief in the government's 'anti-involutionary policy' which aims to target excessive competition and overcapacity within certain industries.
Despite the macro and geopolitical backdrop, there continues to be a number of exciting investment opportunities across emerging markets. It is encouraging to see so many of UEM's investee companies continuing to be resilient, as well as adaptive, whilst remaining focused on delivering over the long term.
Portfolio Focus
As at 30 September 2025, UEM's gross assets increased to £536.6m (31 March 2025: £497.4m) reflecting portfolio gains of £47.1m, and share buy backs of £14.1m during the six months under review.
At the half year, the top ten investments accounted for 41.1% of the total portfolio (31 March 2025: 37.6%), with the top thirty accounting for 74.8% (31 March 2025 73.7%).
Regardless of all the macro and geopolitical 'noise', UEM's unique focus continues to be on bottom- up investing in emerging markets, predominately in infrastructure and utilities companies that are well placed to benefit from the four global infrastructure megatrends. These trends continue to be fundamental as infrastructure investment remains crucial for today's needs and tomorrow's innovation within emerging markets.
In light of the increased geopolitical and macro volatility, it remains imperative for the investment management team to continue travelling extensively, visiting existing and potential investee companies to obtain a first-hand account of current trading and market sentiment. Such meetings and site visits provide a valuable opportunity to gain an in-depth understanding of the investments, assessing whether they are operating in line with expectations and evaluating the mood within the businesses, all of which adds critical value to investment decisions.
Social Infrastructure - 34.1% of portfolio (31 March 2025: 32.2%)
Social infrastructure continues to be the largest megatrend sector within UEM's portfolio at 34.1%, as there is still significant investment required within emerging markets for essential basic social infrastructure.
In the six months to 30 September 2025, UEM increased its position by £4.7m in Orizon Valorizacao de Residuos ("Orizon"), the Brazilian waste management operator, participating in the company's follow on fund raising in May 2025. Orizon continues to capitalise on its leading position in the highly fragmented waste disposal sector, looking to acquire new waste sites while adding value to existing assets through initiatives such as biomethane generation and carbon credit monetisation. Over the period, Orizon's share price increased by 32.0%, making it the top contributor to UEM's portfolio, adding 1.9% (£9.7m) to UEM's total return performance.
UEM also increased its position in ASUR by £4.1m. ASUR, the Mexican listed airport operator with concessions in Mexico, Colombia and Puerto Rico, continues to benefit from the strong structural growth drivers in its markets, including rising GDP per capita and the expanding middle class, which is boosting air travel demand.
UEM made a new investment of £5.5m in Motiva Infraestrutura de Mobilidade ("Motiva"), one of the largest infrastructure groups in LatAm, operating 4,475km of highways, airports, and urban mobility assets. Motiva maintains a conservative capital allocation approach and has been undergoing a phase of increasing operational efficiency, while also positioning itself to capture opportunities from Brazil's robust upcoming infrastructure auction pipeline.
Over the period, UEM reduced its position in Aguas Andinas, the Chilean water company by £4.3m following strong share price performance and elevated valuations. Two of UEM's water sanitation companies also delivered strong gains. Manila Water, the Philippines listed water company, saw its share price increase by 21.2% over the half year following a stock re-rating, whilst Sabesp, the Brazilian listed water sanitation company, was up by 29.5% as results confirmed its turnaround process. As a result, Sabesp contributed 1.8% (£8.7m) to UEM's total return over the period.
Energy Growth and Transition - 27.5% of portfolio (31 March 2025: 25.6%)
This megatrend continues to be an important segment for UEM, with energy infrastructure remaining fundamental to the growth of many emerging markets. In addition, with the rapid advancement and focus on technology, including AI, it is expected energy demand and intensity for many emerging market countries will continue to increase in the near term.
During the six months to 30 September 2025, UEM increased its existing investment in NHPC Limited ("NHPC") by £9.4m. NHPC is an Indian state-owned hydropower company with 8,247MW of operational capacity. NHPC is undergoing a transformative growth cycle with capacity expected to more than double by 2032 - all of which is being underpinned by an attractive regulatory model - playing on 'energy growth and transition' within India.
New LatAm investments over the period within this megatrend included Colbún (£11.2m) and Copel (£7.1m). Colbún, a Chilean listed electricity generation company with 5.0GW of installed capacity, is increasingly focused on renewable energy, while Copel is a Brazilian integrated utility company operating across generation, transmission, distribution and energy trading, which was privatised in 2023. Both companies operate in markets with established regulatory frameworks and inflation-adjusted tariffs, providing resilient operations and predictable cash flows. Both are capitalising on the ongoing 'energy growth and transition' within LatAm, supported by strong management teams and solid track records.
Over the period, UEM exited Serena Energia ("Serena"), realising £17.1m. Serena, a Brazilian listed renewables company, received a takeover offer, which UEM sold into. Serena added 1.1% (£5.4m) to UEM's total return contribution to NAV over the half year. Pertamina Geothermal, the geothermal arm of the state-owned company Pertamina in Indonesia, was also sold, taking advantage of the increase in share price driven by M&A speculation.
Axia Energia (formerly Eletrobras), was one of UEM's top contributors to performance over the period, adding 0.8% (£4.0m) to UEM's total return as its share price rose by 24.9%. Since privatisation, the company has been improving operational efficiency, while greater clarity has emerged regarding its capital structure and the government-related disputes has been resolved. Offsetting this strong performance, Pampa Energia, an integrated energy conglomerate in Argentina, reduced UEM's total return contribution to NAV by 0.3%, as its share price was affected by political uncertainty ahead of Argentina's midterm elections.
Digital Infrastructure - 24.2% of portfolio (31 March 2025: 25.0%)
Digital infrastructure remains a fundamental global megatrend for UEM as digital connectivity becomes more important to everyday life and a fundamental backbone of many emerging market economies. In addition, with the increasing focus and investment on AI, digital infrastructure remains key to digital development within emerging markets.
To capitalise on this, UEM invested £5.0m over the six months to 30 September 2025 in Trip.com, the Hong Kong listed leading Chinese online travel agent, which is benefitting from both the growth in the Chinese and ASEAN travel market and the increasing propensity to book online. Further, Helios Towers, the UK listed telecom tower company operating in ten countries in Africa and the Middle East, saw strong share price performance over the period, up by 39.8%.
FPT Corporation ("FPT"), the Vietnamese listed technology and telecommunications company, previously one of the strong contributors to UEM's total return in the year ended 31 March 2025, detracted 0.7% of UEM's performance. FPT's share price was down by 23.1% over the half year due to global macro uncertainty causing delays in contract awards, as well as market concerns of the impact that AI might have on the IT outsourcing industry.
InPost, the e-commerce logistics infrastructure company listed on Euronext, also detracted 0.5% of UEM's performance, as its share price was down by 22.5%. The fall reflected mounting concerns about its future relationship with one of its key clients, Allegro in Poland. Converge Information and Communications Technology, the Philippines based fibre broadband operator, also reduced total return contribution to NAV by 0.5%. Its share price was down by 33.1% over the six months as it warned a series of typhoons and shortages of technical staff to undertake repairs would impact its second half results.
Global Trade - 14.2% of portfolio (31 March 2025: 17.2%)
Global trade continues to be a key focus for UEM despite all the ongoing geopolitical and macroeconomic noise. The ongoing tariff changes, though delaying corporate investment decisions due to the uncertainty that it is creating, continues to present opportunities as well as challenges.
International Container Terminal Services ("ICT"), the Philippines listed container port operator, is one investment among many in the portfolio that has been able to navigate these challenges well. As the operator of 33 terminals in 19 countries, ICT continues to deliver operationally and financially, resulting in its share price being up by 32.8% and contributing 1.0% to UEM's total return over the period. Piraeus Port Authority has also benefitted from its port location as the transhipment hub in the Mediterranean Sea, seeing its share price up by 27.2% over the half year to 30 September 2025.
UEM's exposure to the global trade megatrend declined from 17.2% as at 31 March 2025 to 14.2% as at 30 September 2025. This is primarily the result of UEM exiting two key investments. Firstly, Ocean Wilsons, realising £11.4m. Ocean Wilsons, the UK listed investment company, operated as a maritime service provider through its Brazilian subsidiary Wilson Sons and had been in UEM's portfolio since inception. In July, Ocean Wilsons launched a tender offer into which UEM tendered most of its holding, selling the remainder of its position ahead of Ocean Wilsons' proposed merger with Hansa Investment Company. Secondly, UEM sold Rumo, the Brazilian rail-based logistics operator, due to weak outlook, realising £9.1m.
Unlisted Investments (Level 3 Investments)
UEM ended the half year to 30 September 2025, with unlisted investments totalling £9.4m (31 March 2025: £13.4m), representing 1.8% of total investments (31 March 2025: 2.7%). UEM's unlisted investments reduced mainly as a result of the reduction of Petalite's valuation by £2.1m to £1.4m. Subsequent to the half year end, given ongoing difficulties, Petalite has been written down to zero.
Conversant Solutions was also written down to zero from £1.3m, following poor performance.
Revenue Return
Revenue income increased by 23.1% to £18.1m for the half year to 30 September 2025, from £14.7m in the prior half year. This reflected a higher dividend distribution from Umeme Limited, Uganda's electricity distribution company following the conclusion of its concession on 28 February 2025.
Management fees and other expenses were unchanged at £1.5m in the half year to 30 September 2025. Finance costs increased due to utilisation of the bank facility. Taxation increased to £1.4m during the half year (30 September 2024: £0.8m) reflecting withholding tax on the Umeme Limited dividend.
As a result, revenue return for the half year increased by 21.0% to £15.0m from £12.4m for the half year to 30 September 2024. EPS increased by 24.6% to 8.15p compared to the prior half year of 6.54p, reflecting the increase in profit and the reduced average number of shares in issue following buybacks. Dividends per share ("DPS") of 4.745p were covered by earnings.
Retained revenue reserves rose to £18.5m as at 30 September 2025, equal to 10.22p per share.
Capital Return
Portfolio gains amounted to £47.1m on the capital return during the half year to 30 September 2025 (30 September 2024: losses of £17.4m) reflecting a relatively strong portfolio performance. Losses on foreign exchange were £0.7m and the resultant total income gain on the capital account was £46.4m against prior year loss of £17.5m.
Management and administration fees were flat at £2.2m.
Finance costs increased to £0.6m from £34k as a result of the use of the bank facility. There was a taxation charge of £0.8m (30 September 2024: £0.9m) which arose from Indian capital gains tax. The net effect of the above was a capital return gain of £42.9m compared to a loss of £20.7m for
30 September 2024.
Charles Jillings & Jacqueline Broers
ICM Investment Management Limited and ICM Limited
19 November 2025
Half-Yearly Financial Report And Responsibility Statement
The Chairman's Statement and the Investment Managers' Report give details of the important events which have occurred during the period and their impact on the financial statements.
Principal Risks and Uncertainties
Most of UEM's principal risks and uncertainties are market related and are similar to those of other investment companies investing mainly in listed equities in emerging markets.
The principal risks and uncertainties were described in more detail under the heading "Principal Risks and Risk Mitigation" within the Strategic Report section of the Annual Report and Accounts for the year ended 31 March 2025 and have not changed materially since the date of that document.
The principal risks faced by UEM include not achieving long term total returns for its shareholders, adverse market conditions leading to a fall in NAV, loss of key management, its shares trading at a discount to NAV, losses due to inadequate controls of third party service providers, gearing risk and regulatory risk. In addition, the Board continues to monitor a number of emerging risks that could potentially impact the Company, the principal ones being geopolitical risk and climate change risk.
The Annual Report and Accounts is available on the Company's website, www.uemtrust.co.uk
Related Party Transactions
Details of related party transactions in the six months to 30 September 2025 are set out in note 9 to the accounts and details of the fees paid to the Investment Managers are set out in note 2 to the accounts. Directors' fees were increased by approximately 2.6% with effect from 1 April 2025 to: Chairman £55,400 per annum; Chair of Audit & Risk Committee £51,800 per annum; Senior Independent Director £43,100 per annum; and other Directors £41,100 per annum.
The net fee entitlement of each Director is satisfied in shares of the Company, purchased in the market by each Director at around each quarter end.
Directors' Responsibility Statement
In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules, the Directors confirm that to the best of their knowledge:
• the condensed set of financial statements contained within the report for the six months to 30 September 2025 has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" on a going concern basis and gives a true and fair view of the assets, liabilities, financial position and return of the Company;
• the half-yearly report, together with the Chairman's Statement and Investment Managers' Report, includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements as required by DTR 4.2.7R;
• the Directors' statement of principal risks and uncertainties above is a fair review of the principal risks and uncertainties for the remainder of the year as required by DTR 4.2.7R; and
• the half-yearly report includes a fair review of the related party transactions that have taken place in the first six months of the financial year as required by DTR 4.2.8R.
On behalf of the Board
Mark Bridgeman
Chairman
19 November 2025
Condensed Statement of Comprehensive Income (Unaudited)
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Six months to 30 September 2025 |
Six months to 30 September 2024 |
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Notes |
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
return |
return |
return |
return |
return |
return |
|
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on investments |
- |
47,103 |
47,103 |
- |
(17,438) |
(17,438) |
|
|
Foreign exchange losses |
- |
(675) |
(675) |
- |
(100) |
(100) |
|
|
Investment and other income |
18,077 |
- |
18,077 |
14,738 |
- |
14,738 |
|
|
Total income/(loss) |
18,077 |
46,428 |
64,505 |
14,738 |
(17,538) |
(2,800) |
|
2 |
Management and administration fees |
(700) |
(2,151) |
(2,851) |
(723) |
(2,239) |
(2,962) |
|
|
Other expenses |
(807) |
- |
(807) |
(824) |
- |
(824) |
|
|
Profit/(loss) before finance costs and taxation |
16,570 |
44,277 |
60,847 |
13,191 |
(19,777) |
(6,586) |
|
|
Finance costs |
(151) |
(603) |
(754) |
(8) |
(34) |
(42) |
|
|
Profit/(loss) before taxation |
16,419 |
43,674 |
60,093 |
13,183 |
(19,811) |
(6,628) |
|
3 |
Taxation |
(1,428) |
(789) |
(2,217) |
(805) |
(921) |
(1,726) |
|
|
Profit/(loss) for the period |
14,991 |
42,885 |
57,876 |
12,378 |
(20,732) |
(8,354) |
|
|
|
|
|
|
|
|
|
|
4 |
Earnings per share (basic) - pence |
8.15 |
23.31 |
31.46 |
6.54 |
(10.96) |
(4.42) |
All items in the above statement derive from continuing operations.
The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.
The net return on ordinary activities after taxation represents the profit for the period and also the total comprehensive Income.
Condensed Statement of Changes in Equity (Unaudited)
|
for the six months to 30 September 2025 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary |
|
Capital |
|
Retained earnings |
|
|
|
Notes |
|
share |
Merger |
redemption |
Special |
Capital |
Revenue |
|
|
|
capital |
reserve |
reserve |
reserve |
reserves |
reserve |
Total |
|
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|
|
Balance as at 31 March 2025 |
1,865 |
76,706 |
480 |
397,556 |
(8,796) |
12,011 |
479,822 |
|
7 |
Shares purchased by the Company and cancelled |
(58) |
- |
58 |
(14,143) |
- |
- |
(14,143) |
|
|
Profit for the period |
- |
- |
- |
- |
42,885 |
14,991 |
57,876 |
|
5 |
Dividends paid in the period |
- |
- |
- |
- |
- |
(8,534) |
(8,534) |
|
|
Balance as at 30 September 2025 |
1,807 |
76,706 |
538 |
383,413 |
34,089 |
18,468 |
515,021 |
|
for the six months to 30 September 2024 |
|
|
|
|
|
|
||
|
|
|
Ordinary |
|
Capital |
|
Retained earnings |
|
|
|
Notes |
|
share |
Merger |
redemption |
Special |
Capital |
Revenue |
|
|
|
capital |
reserve |
reserve |
reserve |
reserves |
reserve |
Total |
|
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|
|
Balance as at 31 March 2024 |
1,909 |
76,706 |
436 |
407,180 |
26,603 |
10,099 |
522,933 |
|
7 |
Shares purchased by the Company and cancelled |
(29) |
- |
29 |
(6,527) |
- |
- |
(6,527) |
|
|
(Loss)/profit for the period |
- |
- |
- |
- |
(20,732) |
12,378 |
(8,354) |
|
5 |
Dividends paid in the period |
- |
- |
- |
- |
- |
(8,119) |
(8,119) |
|
|
Balance as at 30 September 2024 |
1,880 |
76,706 |
465 |
400,653 |
5,871 |
14,358 |
499,933 |
|
for the year to 31 March 2025 |
|
|
|
|
|
|
||
|
|
|
Ordinary |
|
Capital |
|
Retained earnings |
|
|
|
Notes |
|
share |
Merger |
redemption |
Special |
Capital |
Revenue |
|
|
|
capital |
reserve |
reserve |
reserve |
reserves |
reserve |
Total |
|
|
|
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
£'000s |
|
|
|
Balance as at 31 March 2024 |
1,909 |
76,706 |
436 |
407,180 |
26,603 |
10,099 |
522,933 |
|
7 |
Shares purchased by the Company and cancelled |
(44) |
- |
44 |
(9,624) |
- |
- |
(9,624) |
|
|
(Loss)/profit for the year |
- |
- |
- |
- |
(35,399) |
18,723 |
(16,676) |
|
5 |
Dividends paid in the year |
- |
- |
- |
- |
- |
(16,811) |
(16,811) |
|
|
Balance as at 31 March 2025 |
1,865 |
76,706 |
480 |
397,556 |
(8,796) |
12,011 |
479,822 |
Condensed Statement of Financial Position (Unaudited)
|
Notes |
as at |
30 Sep 2025 |
30 Sep 2024 |
31 Mar 2025 |
|
|
£'000s |
£'000s |
£'000s |
|
|
|
Non-current assets |
|
|
|
|
11 |
Investments |
534,169 |
502,949 |
495,154 |
|
|
Current assets |
|
|
|
|
|
Other receivables |
1,731 |
2,654 |
1,008 |
|
|
Cash and cash equivalents |
4,324 |
17,826 |
3,933 |
|
|
|
6,055 |
20,480 |
4,941 |
|
|
Current liabilities |
|
|
|
|
|
Other payables |
(2,175) |
(3,156) |
(2,055) |
|
6 |
Bank loans |
(21,574) |
(19,503) |
(17,553) |
|
|
|
(23,749) |
(22,659) |
(19,608) |
|
|
|
|
|
|
|
|
Net current liabilities |
(17,694) |
(2,179) |
(14,667) |
|
|
Total assets less current liabilities |
516,475 |
500,770 |
480,487 |
|
|
Non-current liabilities |
|
|
|
|
|
Deferred tax |
(1,454) |
(837) |
(665) |
|
|
Net assets |
515,021 |
499,933 |
479,822 |
|
|
|
|
|
|
|
|
Equity attributable to equity holders |
|
|
|
|
7 |
Ordinary share capital |
1,807 |
1,880 |
1,865 |
|
|
Merger reserve |
76,706 |
76,706 |
76,706 |
|
|
Capital redemption reserve |
538 |
465 |
480 |
|
|
Special reserve |
383,413 |
400,653 |
397,556 |
|
|
Capital reserves |
34,089 |
5,871 |
(8,796) |
|
|
Revenue reserve |
18,468 |
14,358 |
12,011 |
|
|
Total attributable to equity holders |
515,021 |
499,933 |
479,822 |
|
|
|
|
|
|
|
8 |
Net asset value per share |
|
|
|
|
|
Basic - pence |
285.06 |
266.00 |
257.28 |
Condensed Statement of Cash Flows (Unaudited)
|
|
Six months to 30 Sep 2025 |
Six months to 30 Sep 2024 |
Year to 31 Mar 2025 |
|
|
£'000s |
£'000s |
£'000s |
|
Operating activities |
|
|
|
|
Profit/(loss) before taxation |
60,093 |
(6,628) |
(14,092) |
|
Deduct investment income - dividends |
(17,608) |
(13,750) |
(22,293) |
|
Deduct investment income - interest |
(454) |
(935) |
(1,463) |
|
Deduct bank interest received |
(15) |
(53) |
(84) |
|
Add back interest charged |
754 |
42 |
960 |
|
Add back (gains)/losses on investments |
(47,103) |
17,438 |
29,007 |
|
Add back foreign currency losses |
675 |
100 |
590 |
|
Decrease in other receivables |
13 |
51 |
30 |
|
(Decrease)/increase in other payables |
(182) |
870 |
881 |
|
Net cash outflow from operating activities before dividends and interest |
(3,827) |
(2,865) |
(6,464) |
|
Dividends received |
16,739 |
13,921 |
22,874 |
|
Investment income - interest received |
422 |
698 |
824 |
|
Bank interest received |
15 |
53 |
84 |
|
Taxation paid |
(1,421) |
(2,400) |
(3,426) |
|
Net cash inflow from operating activities |
11,928 |
9,407 |
13,892 |
|
Investing activities |
|
|
|
|
Purchases of investments |
(81,808) |
(55,563) |
(128,323) |
|
Sales of investments |
89,869 |
53,665 |
123,128 |
|
Net cash inflow/(outflow) from investing activities |
8,061 |
(1,898) |
(5,195) |
|
Financing activities |
|
|
|
|
Repurchase of shares for cancellation |
(13,825) |
(6,421) |
(9,624) |
|
Dividends paid |
(8,534) |
(8,119) |
(16,811) |
|
Drawdown of bank loans |
9,987 |
19,306 |
28,524 |
|
Repayment of bank loans |
(6,314) |
- |
(11,913) |
|
Interest paid |
(585) |
- |
(806) |
|
Net cash (outflow)/inflow from financing activities |
(19,271) |
4,766 |
(10,630) |
|
Increase/(decrease) in cash and cash equivalents |
718 |
12,275 |
(1,933) |
|
Cash and cash equivalents at the start of the period |
3,933 |
5,751 |
5,751 |
|
Effect of movement in foreign exchange |
(327) |
(200) |
115 |
|
Cash and cash equivalents at the end of the period |
4,324 |
17,826 |
3,933 |
Notes To The Accounts (Unaudited)
1. Accounting Policies
The Company is an investment company incorporated in the United Kingdom listed in the closed ended investment funds category of the Official List of the Financial Conduct Authority and whose shares are admitted to trading on the London Stock Exchange's Main Market for listed securities.
The unaudited condensed accounts have been prepared in accordance with UK adopted International Accounting Standards, which comprise standards and interpretations approved by the IASB and International Accounting Standards and Standing Interpretations Committee interpretations approved by the IASC that remain in effect and to the extent that they are in conformity with the requirement of the Companies Act 2006 ("IFRS"), IAS 34 "Interim Financial Reporting" and the accounting policies set out in the audited statutory accounts for the year ended 31 March 2025.
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by the Directors in applying the accounting policies and key sources of uncertainty were the same as those applied to the financial statements as at and for the year ended 31 March 2025.
The condensed accounts do not include all of the information required for full annual accounts and should be read in conjunction with the accounts of the Company for the year ended 31 March 2025, which were prepared under full IFRS requirements.
2. Management And Administration Fees
The Company has appointed ICM Investment Management Limited ("ICMIM") as its Alternative Investment Fund Manager and joint portfolio manager with ICM Limited ("ICM"), for which they are entitled to a management fee. The aggregate fees payable by the Company are apportioned between the Investment Managers as agreed by them.
The relationship between ICMIM and ICM is compliant with the requirements of the UK version of the EU Alternative Investment Fund Managers Directive as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and also such other requirements applicable to ICMIM by virtue of its regulation by the Financial Conduct Authority.
The annual management fee is a tiered structure as follows: 1.0% of NAV up to and including £500m; 0.9% of NAV exceeding £500m up to and including £750m; 0.85% of NAV exceeding £750m up to and including £1,000m; and 0.75% of NAV exceeding £1,000m, payable quarterly in arrears. The management fee is allocated 80% to capital return and 20% to revenue return. The investment management agreement may be terminated upon six months' notice.
ICMIM also provides company secretarial services to the Company, with the Company paying £35,000 (30 September 2024: £35,000 and 31 March 2025: £70,000) equivalent to 45% of the costs associated with this office and recharges research fees to the Company based on a budget of £0.3m per annum, paid quarterly in arrears. These charges are allocated 80% to capital return and 20% to revenue return.
JPMorgan Chase Bank N.A. - London Branch has been appointed Administrator and ICMIM has appointed Waverton to provide certain support services (including middle office, market dealing and information technology support services).
3. Taxation
The revenue return taxation charge of £1,428,000 (30 September 2024: £805,000 and 31 March 2025: £1,834,000) relates to irrecoverable overseas taxation suffered on dividend and interest income.
The capital return taxation expense of £789,000 (30 September 2024: £921,000 and 31 March 2025: £750,000) relates to capital gains on realised gains on sale of overseas investments and deferred tax in respect of capital gains tax on overseas unrealised investment gains that may be subject to taxation in future years.
4. Earnings Per Share
Earnings per share is the profit attributable to shareholders and based on the following data:
|
|
Six months to 30 Sep 2025 |
Six months to 30 Sep 2024 |
Year to 31 Mar 2025 |
|
|
£'000s |
£'000s |
£'000s |
|
Revenue return |
14,991 |
12,378 |
18,723 |
|
Capital return |
42,885 |
(20,732) |
(35,399) |
|
Total return |
57,876 |
(8,354) |
(16,676) |
|
|
Number |
Number |
Number |
|
Weighted average number of ordinary shares in issue during the period for basic earnings per share calculations |
183,942,178 |
189,171,264 |
188,115,133 |
|
|
Pence |
Pence |
Pence |
|
Revenue return per share |
8.15 |
6.54 |
9.95 |
|
Capital return per share |
23.31 |
(10.96) |
(18.81) |
|
Total profit/(loss) per share* |
31.46 |
(4.42) |
(8.86) |
*Represents both the basic and diluted earnings per share
5. Dividends
|
|
Record date |
Payment date |
30 Sep 2025 £'000s |
30 Sep 2024 £'000s |
31 Mar 2025 £'000s |
|
2024 Fourth quarterly dividend of 2.15p per share |
07-Jun-24 |
28-Jun-24 |
- |
4,072 |
4,072 |
|
2025 First quarterly dividend of 2.15p per share |
06-Sep-24 |
27-Sep-24 |
- |
4,047 |
4,047 |
|
2025 Second quarterly dividend of 2.325p per share |
29-Nov-24 |
19-Dec-24 |
- |
- |
4,352 |
|
2025 Third quarterly dividend of 2.325p per share |
07-Mar-25 |
28-Mar-25 |
- |
- |
4,340 |
|
2025 Fourth quarterly dividend of 2.325p per share |
06-Jun-25 |
27-Jun-25 |
4,309 |
- |
- |
|
2026 First quarterly dividend of 2.325p per share |
05-Sep-25 |
26-Sep-25 |
4,225 |
- |
- |
|
|
|
|
8,534 |
8,119 |
16,811 |
The Directors have declared a second quarterly dividend in respect of the year ending 31 March 2026 of 2.42p per share payable on 23 December 2025 to shareholders on the register at close of business on 5 December 2025. The total cost of the dividend, which has not been accrued in the results for the six months to 30 September 2025, is £4,323,000 based on 178,629,391 shares in issue as at 17 November 2025.
6. Bank Loans
The Company has a secured multicurrency revolving credit facility of £50,000,000 with Barclays Bank PLC expiring on 30 August 2026. Secured investments are held within a UEM segregated account at the Custodian. The main covenants are: secured investments to have constituents of the FTSE All World index of at least 1.5 times greater than the loans drawn; and the loans drawn to the secured investments to be a maximum of 50%. The terms of the loan facility, including those related to accelerated repayment and costs of repayment, are typical of those normally found in facilities of this nature. The Company has the option each quarter to request an extension to the expiry date of the facility subject to the commitment period being no more than 365 days. Subsequent to the period end, the Company requested an extension of the expiry date to 30 November 2026 which was agreed, effective on and from 30 November 2025. Commitment fees are charged on any undrawn amounts at commercial rates.
As at 30 September 2025 £21,574,000 (30 September 2024: £19,503,000 and 31 March 2025: £17,553,000) was drawn down. The value of the investments held within the segregated secured account as at 30 September 2025 was £158,506,000 (30 September 2024: £153,859,000 and 31 March 2025: £143,024,000).
7. Ordinary Share Capital
|
Issued, called up and fully paid |
|
|
|
|
Ordinary shares of 1p each |
|
Number |
£'000s |
|
Balance as at 31 March 2025 |
|
186,495,391 |
1,865 |
|
Purchased for cancellation by the Company |
|
(5,824,000) |
(58) |
|
Balance as at 30 September 2025 |
|
180,671,391 |
1,807 |
During the period the Company bought back for cancellation 5,824,000 (30 September 2024: 2,897,524 and 31 March 2025: 4,347,112) ordinary shares at a total cost of £14,143,000 (30 September 2024: £6,527,000 and 31 March 2025: £9,624,000).
A further 2,042,000 ordinary shares have been purchased for cancellation at a total cost of £5,256,000 since the period end to 17 November 2025 (the latest practicable date to finalise these accounts).
8. Net Asset Value Per Share
The NAV per share is based on the net assets attributable to the equity shareholders of £515,021,000 (30 September 2024: £499,933,000 and 31 March 2025 £479,822,000) and on 180,671,391 ordinary shares, being the number of ordinary shares in issue at the period end (30 September 2024: 187,944,979 and 31 March 2025: 186,495,391).
9. Related Party Transactions
The following are considered related parties of the Company during the period: the subsidiary undertaking (UEM (HK) Limited), the associates of the Company (EBP Holdings Limited ("EBP") and Pitch Hero Holdings Limited), the Board of UEM, ICM and ICMIM (the Company's joint portfolio managers), Mr Saville, Mr Jillings and Ms Broers (key management persons of ICMIM) and UIL Limited.
As at 31 March 2025 the fair value of the loan held with UEM (HK) Limited was £3,272,000 and loan interest accrued was £nil. As at 30 September 2025 the fair value of the loan held with UEM (HK) Limited was £2,655,000 and loan interest accrued was £nil.
There were no transactions with EBP.
Pursuant to an extension and amendment (dated 16 June 2025) of a loan agreement dated 1 March 2021 under which UEM has agreed to loan monies to Pitch Hero, as at 30 September 2025 the balance of the loan and interest outstanding was £631,000 (31 March 2025: £695,000). In the period Pitch Hero repaid £63,000 and paid interest to UEM of £32,000. The loan bears interest at an annual rate of 10%. The final repayment date was extended to 25 August 2029.
The Board received aggregate remuneration of £96,000 (30 September 2024: £96,000 and 31 March 2025: £198,000) included within "Other expenses" for services as Directors. As at the period end, £nil (30 September 2024: £nil and 31 March 2025: £nil) remained outstanding to the Directors. In addition to their fees, the Directors received dividends totalling £9,000 (30 September 2024: £13,000 and 31 March 2025: £25,000) during the period under review in respect of their shareholdings in the Company. There were no further transactions with the Board during the period.
There were no transactions with ICM and ICMIM other than investment management, secretarial costs, research fees as set out in note 2 of £2,689,000 (30 September 2024: £2,799,000 and 31 March 2025: £5,355,000) and reimbursed expenses included within Other Expenses of £34,000 (30 September 2024: £46,000 and 31 March 2025: £101,000). As at the period end £1,310,000 (30 September 2024: £1,290,000 and 31 March 2025: £1,248,000) remained outstanding in respect of management, company secretarial and research fees.
Mr Jillings and Ms Broers received dividends, respectively, totalling £27,000 (30 September 2024: £20,000 and 31 March 2025: £49,000) and £500 (30 September 2024: £500 and 31 March 2025: £1,000) and UIL Limited received dividends totalling £431,000 (30 September 2024: £399,000 and 31 March 2025: £830,000).
10. Going Concern
Notwithstanding that the Company has reported net current liabilities of £17,694,000 as at 30 September 2025 (30 September 2024: £2,179,000 and 31 March 2025: £14,667,000), the financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons. The Board's going concern assessment has focused on the forecast liquidity of the Company for at least twelve months from the date of approval of the financial statements. This analysis assumes that the Company would, if necessary, be able to meet some of its short term obligations through the sale of listed securities, which represented 98.2% of the Company's total portfolio as at 30 September 2025. As part of this assessment the Board has considered a severe but plausible downside that reflects the impact of the Company's key risks and an assessment of the Company's ability to meet its liabilities as they fall due assuming a significant reduction in asset values and accompanying currency volatility.
The Board also considered reverse stress testing to identify the reduction in the valuation of liquid investments that would cause the Company to be unable to meet its net liabilities, being primarily the bank loan. The Board is confident that the reduction in asset values implied by the reverse stress test is not plausible even in the current volatile environment. Consequently, the Directors believe that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements.
Accordingly, the Board considers it appropriate to continue to adopt the going concern basis in preparing the accounts.
11. Fair Value Hierarchy
IFRS 13 'Financial Instruments: Disclosures' require an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:
Level 1 reflects financial instruments quoted in an active market.
Level 2 reflects financial instruments whose fair value is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable markets.
Level 3 reflects financial instruments whose fair value is determined in whole or in part using a valuation technique based on assumptions that are not supported by prices from observable market transactions in the same instrument and not based on available observable market data.
The financial assets and liabilities measured at fair value in the statement of financial position are grouped into the fair value hierarchy as follows:
|
|
Level 1 £'000s |
Level 2 £'000s |
Level 3 £'000s |
30 Sep 2025 Total £'000s |
|
Investments |
502,967 |
21,849 |
9,353 |
534,169 |
|
|
Level 1 £'000s |
Level 2 £'000s |
Level 3 £'000s |
30 Sep 2024 Total £'000s |
|
Investments |
476,827 |
10,242 |
15,880 |
502,949 |
|
|
Level 1 £'000s |
Level 2 £'000s |
Level 3 £'000s |
31 Mar 2025 Total £'000s |
|
Investments |
472,111 |
9,663 |
13,380 |
495,154 |
During the period two holdings with a value of £19.2m were transferred from level 1 to level 2 due to the investee company shares trading irregularly. The book cost and fair value was transferred using the,31 March 2025 balances, and all subsequent trades are therefore disclosed in the level 2 column (30 September 2024: one holding with a value of £7.0m was transferred from level 1 to level 2 due to the investee company shares trading irregularly. The book cost and fair value was transferred using the,31 March 2024 balances, and all subsequent trades are therefore disclosed in the level 2 column and 31 March 2025: one holding with a value of £5.9m was transferred from level 1 to level 2 due to the investee company shares trading irregularly in the year. The book cost and fair value were transferred using the 31 March 2024 balances).
A reconciliation of fair value measurements in level 3 is set out in the following table:
|
|
Six months to 30 Sep 2025 £'000s |
Six months to 30 Sep 2024 £'000s |
Year to 31 Mar 2025 £'000s |
|
Valuation brought forward |
13,380 |
23,114 |
23,114 |
|
Purchases |
37 |
1,306 |
4,780 |
|
Sales |
(62) |
(951) |
(4,051) |
|
(Losses)/gains on sale of investments |
- |
(26) |
(26) |
|
Losses on investments held at end of period |
(4,002) |
(7,563) |
(10,437) |
|
Valuation carried forward |
9,353 |
15,880 |
13,380 |
|
|
|
|
|
|
Analysed |
|
|
|
|
Cost of investments |
24,069 |
23,720 |
24,094 |
|
(Losses)/gains on investments |
(14,716) |
(7,840) |
(10,714) |
|
Valuation carried forward |
9,353 |
15,880 |
13,380 |
12. Financial Risk Management - Level 3 Financial Instruments
Valuation methodology
The objective of using valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date. The Company uses proprietary valuation models, which are compliant with IPEV guidelines and IFRS 13 and which are usually developed from recognised valuation techniques.
The Directors have satisfied themselves as to the methodology used, the discount rates and key assumptions applied, and the valuations. The methodologies used to determine fair value are described in the 2025 Report and Accounts. The level 3 assets comprise a number of unlisted investments at various stages of development and each has been assessed based on its industry, location and business cycle. The valuation methodologies include net assets, discounted cash flows, cost of recent investment or last funding round and listed peer comparison or peer group multiple, as appropriate. Where applicable, the Directors have considered observable data and events to underpin the valuations. A discount has been applied, where appropriate, to reflect both the unlisted nature of the investments and business risks.
Sensitivity of level 3 financial investments measured at fair value to changes in key assumptions
Level 3 inputs are sensitive to assumptions made when ascertaining fair value. While the Directors believe that the estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. The sensitivities shown in the table below give an indication of the effect of applying reasonable and possible alternative assumptions.
In assessing the level of reasonably possible outcomes consideration was also given to the impact on valuations of the level of volatility in equity markets during the period, principally reflecting concerns about trade tariff uncertainty, geopolitical tensions, high rates of inflation, tightening energy supplies, higher interest rates and the Ukraine and Middle East conflicts. The impact on the valuations has been varied and largely linked to their relevant sectors and this has been reflected in the level of sensitivities applied.
The following table shows the sensitivity of the fair value of level 3 financial investments to changes in key assumptions.
As at 30 September 2025
|
Investment |
Investment type |
Valuation methodology |
Risk weighting |
Sensitivity +/- |
Carrying amount £'000s |
Sensitivity £'000s |
|
EBP |
Equity |
Fair value of net assets |
Medium |
20% |
3,300 |
660 |
|
UEM (HK) Limited |
Loan |
NAV |
Low |
10% |
2,655 |
266 |
|
Petalite Limited |
Equity |
Last funding round |
Medium |
20% |
1,438 |
288 |
|
Other investments |
Equity |
Peer multiples |
Medium |
20% |
1,334 |
267 |
|
Other investments |
Loan |
Discounted cash flows |
Medium |
20% |
626 |
125 |
|
Total |
|
|
|
|
9,353 |
1,606 |
As at 30 September 2024
|
Investment |
Investment type |
Valuation methodology |
Risk weighting |
Sensitivity +/- |
Carrying amount £'000s |
Sensitivity £'000s |
|
Petalite Limited |
Equity/Loan |
Last funding round |
High |
70% |
4,227 |
2,959 |
|
UEM (HK) Limited |
Loan |
NAV |
Low |
10% |
3,617 |
362 |
|
EBP |
Equity |
Fair value of net assets |
Medium |
20% |
2,998 |
600 |
|
Other investments |
Equity |
Various |
Medium |
20% |
4,349 |
870 |
|
Other investments |
Loan |
Discounted cash flows |
Medium |
20% |
689 |
138 |
|
Total |
|
|
|
|
15,880 |
4,929 |
As at 31 March 2025
|
Investment |
Investment type |
Valuation methodology |
Risk weighting |
Sensitivity +/- |
Carrying amount £'000s |
Sensitivity £'000s |
|
Petalite Limited |
Equity |
Last funding round |
Medium |
20% |
3,583 |
717 |
|
UEM (HK) Limited |
Loan |
NAV |
Low |
10% |
3,272 |
327 |
|
EBP |
Equity |
Fair value of net assets |
Medium |
20% |
3,211 |
642 |
|
Other investments |
Equity |
Various |
Medium |
20% |
2,626 |
525 |
|
Other investments |
Loan |
Discounted cash flows |
Medium |
20% |
688 |
138 |
|
Total |
|
|
|
|
13,380 |
2,349 |
13. Results
The financial information contained in this half yearly financial report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2025 and 30 September 2024 have neither been audited nor reviewed by the Company's auditors.
The information for the year ended 31 March 2025 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditor on those accounts contained no qualification or statement under Section 498(2) or (3) of the Companies Act 2006.
Legal Entity Identifier: 2138005TJMCWR2394O39
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