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DIVERSE INCOME TRUST (THE) PLC
Interim / Quarterly Report • Feb 11, 2025
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Interim / Quarterly Report
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The Diverse Income Trust plc
"Superior returns via good and growing dividends"
Half-Yearly Report for the period to 30 November 2024
Company No: 07584303
Contents
| The Company | |
|---|---|
| Depth and Opportunity | ii |
| The Diverse Income Trust plc | 1 |
| Strategic Report | |
| Chairman's Statement | 2 |
| Investment Manager's Report | 4 |
| Portfolio Information | 10 |
| Interim Management Report and Directors' Responsibility Statement |
13 |
| Group Accounts | |
| Income Statement | 14 |
| Statement of Changes in Equity | 15 |
| Balance Sheet | 16 |
| Cash Flow Statement | 17 |
| Notes to the Financial Statements | 18 |
| Shareholder Information | |
| Investment Objective and Policy | 24 |
| Shareholder Information | 25 |
| Directors and Advisers | 27 |
| Glossary of Terms | 28 |
| Cover photograph: TP ICAP, a financial services company, used with permission. |
Objectives and outcomes since April 2011
The Diverse Income Trust aims to deliver good and growing total returns, by investing in a wide range of good and growing companies, which are expected to produce good and growing dividends.
Source: Morningstar
Summary of Trust Financial Results over the half-year to November 2024
NAV per ordinary share1
1 For an in-depth assessment of performance please refer to the Chairman's Statement on pages 2 and 3 and the Manager's Report on pages 4 to 8.
Revenue return per ordinary share, NAV per ordinary share and Discount to NAV defined in the Glossary on pages 28 to 30. Ordinary shares in issue as at 30 November 2024: 236,393,165 (2023: 318,540,642)
Key Performance Indicators
to 30 November 2024
The Board uses the following KPIs to assess the success of the Company's strategy and its outcome for shareholders. Throughout this report we refer to Adjusted NAV which is the calculated NAV prior to recognising a movement attributable to the redemption pool as detailed in the Glossary on page 29. The NAV including the movement is shown below and is also detailed in the Glossary.
Depth and Opportunity
- As highlighted in the second pie chart above, the Trust intentionally invests over the full range of UK quoted companies.
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- The broader nature of the Trust's portfolio has the potential to greatly outperform most others that restrict their investment universe solely to larger and mid-cap sized companies.
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- In addition, portfolio diversification is greatly improved by investing across the full range of industry sectors as well as market capitalisations. At times of market stress, diversification typically provides a degree of resilience.
- Typically, smaller companies outperform larger companies over the longer term. Fewer professional investors actively research them some stand at heavily overlooked valuations.
- In spite of the usual longer-term trend, recently, smallcap returns have been greatly outpaced by the large technology companies known as the Magnificant 7.
- Whilst the current trend could persist for a little longer, in the past it has normally concluded with a period of substantial smallcap outperformance.
- In addition, during globalisation, the share prices of numerous highly ambitious quoted companies have regularly outpaced the returns of those growing less rapidly that deliver a major part of their total return through paying regular and growing cash dividends.
- The UK exchange mainly comprises equity income stocks, and when the global economy was troubled between 1965 and 1985 for example, the UK stock market greatly outperformed international comparatives including the US.
- We anticipate that smallcap and equity income strategies will outperform again when market drivers broaden and investors become valuation focused. Then the NAV would be expected to close, further boosting shareholder returns.
The Diverse Income Trust plc
to 30 November 2024
The Company's Objective
The Company's investment objective is to provide shareholders with an attractive and growing level of dividends coupled with capital growth over the long term.
It seeks to achieve this by investing principally in UK-listed companies that have the potential to generate above-average dividend growth. If the Trust's strategy succeeds, it is anticipated that its return will outpace others in the Peer Group*, as well as the mainstream stock market indices over the longer term.
The Board sets the Trust's objective and appoints Premier Miton Managers Limited ('PPM' or the 'Manager') to manage the Trust. The Board is independent of the Manager.
In the period to 30 November the adjusted NAV total return of the Trust was 4.9%, which compares with:
- 2.1% Deutsche Numis All-Share Index;
- -2.3% Deutsche Numis Smaller Companies plus AIM Index (excluding Investment Companies); and
Since inception the adjusted NAV total return of the Trust has been 235.5%, compared with: 123.6% Deutsche Numis All-Share Index;
106.1% Deutsche Numis Smaller Companies plus AIM Index (excluding Investment Companies); and
0.9% Peer Group*.
176.1% Peer Group*.
The Diverse Income Trust plc is an investment trust quoted on the London Stock Exchange under the ticker code DIVI. In this report it is referred to as the 'Company', the 'Trust' and 'Diverse', or together with its subsidiary, DIT Income Services Limited, as the 'Group'.
* The Peer Group is defined in the Glossary.
Chairman's Statement
This report covers the half year to November 2024, a period punctuated by elections across most of the developed world. Whilst some resulted in unexpected drama, there was little surprise in the UK's change of government. Inflation continued to wane and, with it, interest rates began to fall in the UK and elsewhere. Economic growth remained robust in the US with activity elsewhere advancing only modestly. Market returns continued to be dominated by a narrow range of US technology giants (the so-called "Magnificent Seven") although there were signs at the end of the period that the prospect of lower interest rates and hopes for better economic growth in 2025 was encouraging investors to look more widely for returns.
Half-year returns
The Trust's adjusted NAV total return was 4.9% over the half year, ahead of the total return of the Deutsche Numis All-Share Index which was 2.1%, and that of the Peer Group which rose 0.9%. The share price total return was 5.3%.
Despite an improving interest rate environment, the share prices of smaller companies and AIM stocks remained under pressure. Although the UK economy grew at a modest rate (putting behind earlier fears of recession) there was persistent selling of UK equities by domestic investors, amid uncertainties over forthcoming tax rises by the new government, during the prolonged lead-up to the October Budget. Total returns on the Deutsche Numis Smaller Companies (ex-ITs) + AIM index and the Deutsche Numis Alternative Markets index both fell (by 2.3% and 8.6% respectively), against the positive trend in the overall UK market.
The Trust's revenue earnings per share over the half year to November 2023 rose 10.5% to 2.63p, which compares with 2.38p last year. The Board has already declared a first interim dividend of 1p per share for the current year which, together with the second interim dividend of 1.05p declared with these results means that shareholder dividends for the period are 2.5% ahead of those declared in respect of the same period of the 2023-24 financial year. It is anticipated that, in combination, the four dividends for the current year will represent an increase over those paid a year earlier.
Returns since the Trust was first listed in April 2011
It has been encouraging to see a return to outperformance by the Company's portfolio over the past year, after a variable period during the UK market's volatility in recent years, buffeted by pandemic-related and political factors. Over the thirteen years and seven-month period since issue, the Trust's shareholders have enjoyed a NAV total return of 235.5%, and a share price total return 196.2%, well ahead of the comparable figures of 190.0% and 176.1% for the NAV and share price return of the peer group and of 123.6% for the Numis All-Share Index.
Share Issuance and Redemptions
The Company's discount was little changed, starting at 8.6%, ending at 8.4% and averaging 8.5% during the reporting period. Since November, sector discounts have remained under pressure while the Company's discount has narrowed and at the time of writing stood at 7%. Although a discount has persisted since 2019, since launch in 2011 the Trust has on average traded close to its NAV, at an average discount of 1.4%.
The UK investment trust sector's discount rating has been affected by the multi-year net selling of UK equities by UK institutions (motivated by regulations on solvency and volatility) and overseas investors (whose focus has been on US technology companies, with UK political factors adding a local deterrent). Although there are early signs that outflows are stabilising, the uncertainties ahead of and in the wake of the first budget of the new Labour government have dampened enthusiasm for UK equities. Investment trust discounts remain wider than historical norms as a result.
The Company operates an annual redemption facility, enabling investors to redeem part or all of their holding at either the prevailing net asset value at the redemption point, or (if a redemption pool is created) the realised value of the assets attributable to the redeeming shares. At the end of May 2024, 82.1m shares (25.8% of the issued share capital) were tendered for redemption, with the proceeds from the redemption pool being distributed on 24 July 2024.
As notified in the 2024 Annual Report, the date of this annual redemption is moving from the end of May to the end of August, to separate the administration and accounting for any redemption from the preparation of the financial statements and annual report for the year. Accordingly, shareholders will be able in July 2025, if they so wish, to elect to redeem shares at the next redemption point which will be 29 August 2025.
Investment Strategy
Chairman's Statement
The Board continuously reviews the Company's strategy and approach to ensure it remains relevant and appropriate, with one Board meeting a year being specifically set aside for this. This meeting was held in November 2024 and after detailed discussion the appropriateness of the Manager's approach reaffirmed. The Board grants the Manager considerable discretion to vary, for example, the number of stocks in the portfolio and this does change as highlighted in the Manager's Report on page 11. Premier Miton continue to adjust their approach as circumstances dictate within the bounds set by the Board.
Prospects
Despite the enthusiasm evident in a US market regularly hitting new all-time highs, sentiment has remained relatively sober elsewhere, reflecting lacklustre economic growth outside North America, the geopolitical uncertainties from conflicts in Europe and the Middle East, unstable political conditions in major European countries and macro-economic uncertainty ahead of the new US administration's tariff proposals.
Notwithstanding these risks, as noted in recent reports, the UK market has been sidelined in investors' preferences for many years. This has been disproportionate to the operational performance of UK quoted companies. As a result, on a number of key measures, the UK equity market has become lowly rated relative to international comparators, particularly the US market. Within the UK market, many smaller companies have suffered more severe derating due to their invisibility to larger institutional investors.
Although the growth rates of most UK companies do not approach those of the technology leaders in the US, nor do UK share valuations which, relative to their own history, appear modest.
Investments in UK funds recently saw a first monthly inflow, after 41 consecutive monthly outflows. With valuations looking attractive relative to other regions, with the regulatory discussion shifting towards encouraging investment in the UK market and with UK and global interest rates on a declining trend, the prospective risk-reward from UK equities, particularly the neglected second liners and smaller companies, warrants consideration on a contrarian view. Our Managers are exceptionally positive on the outlook for the portfolio, as discussed in their report.
Andrew Bell Chairman 10 February 2025
Investment Manager's Report
The day-to-day fund managers with the responsibility for the makeup of the Trust's portfolio.
Gervais Williams
Gervais joined Miton in March 2011 and is now Head of Equities in Premier Miton. He has been an equity fund manager since 1985, including 17 years at Gartmore. He was named Fund Manager of the Year by What Investment? in 2014. Gervais is also the President of the Quoted Companies Alliance and a member of the AIM Advisory Council.
Martin Turner
Martin joined Miton in May 2011. Martin and Gervais have had a close working relationship since 2004, with complementary expertise that led them to back a series of successful companies. Martin qualified as a Chartered Accountant with Arthur Anderson and had senior roles and extensive experience at Merrill Lynch and Collins Stewart.
Being a multicap strategy, the portfolio has the advantage of being able to pick out all the UK stocks well placed to generate good and growing dividend income across the full range of market capitalisations.
Line depicting the valuation of the UK stock market universe, showing the valuations of the quoted stocks across the market capitalisation range.
Source: Premier Miton
Investment Manager's Report
In the chart above, valuation is quantified via the Price to Book ratio which relates the market capitalisation of a quoted company to the capital it has invested. Generally, low ratios imply low investor expectations.
The Trust's portfolio can consider investing in all the stocks listed in the UK, including those that are large, but alongside those that are mid-sized or smallcaps.
This is known as multicap strategy, and the portfolio has the advantage of being able to include all the stocks that are well-set to pay out good and growing dividends, irrespective of the current scale of their business. The chart above highlights that typically, smaller quoted companies currently stand on lower valuations, which means when they succeed and get bigger, their share price return is amplified by their valuation rising as well as their earnings and dividends.
We believe that the best opportunity for adding value is via listening and then questioning corporate management teams directly. In that regard, we typically seek to maximise the time they commit to engaging with quoted company leadership teams.
The bar chart below denotes the number of face-to-face company meetings that Gervais Williams and Martin Turner held in the past 6 months, and in the two preceding 6-month periods.*
Source: Premier Miton
* This does not include conferences.
Investment Manager's Report continued
Over the six months to November 2024, the Diverse Income Trust has outperformed the various comparative indices.
Total returns of the Trust vs the Peer Group and its comparator indices over the past 6 months
Source: Morningstar
In the half year to November 2024, the NAV of the Trust rose 4.9% in adjusted total return terms, the Peer Group, rose by 0.9%, whilst the Deutsche Numis All-Share Index rose by 2.1%, and the Deutsche Numis Smaller Companies Plus AIM Index fell 2.3%.
The Trust's total return comprises both the accumulation of its cash dividends, that in general have risen progressively since issue in April 2011, plus the change in the Trust's NAV which normally fluctuates daily. Overall, the Trust's longer term objective has been to generate growing revenues, and it has succeeded since issue in paying a stream of progressively growing cash dividends to shareholders. In contrast, stock market prices vary considerably over time, so the NAV returns are more variable, while having delivered outperformance since inception, as well as during the current reporting period.
The multicap nature of the strategy has enhanced returns because much of the half year outperformance was related to the strong returns of certain midcap sized holdings, along with relatively few disappointments.
The principal contributors to and detractors from performance over the half year to November 2024
| Contribution | |
|---|---|
| to return % | |
| Largest 5 contributors to performance | |
| XPS Pensions Plc | 1.17 |
| Paypoint | 1.14 |
| Galliford Try Holdings Plc | 1.09 |
| Pan African Resources Plc | 0.87 |
| Just Group | 0.69 |
| Largest 5 detractors from performance | |
| Zotefoams | -0.53 |
| CT Automotive Group | -0.47 |
| Inspired | -0.37 |
| Sabre Insurance Group | -0.36 |
| Man Group | -0.35 |
Source: Premier Miton
One of the features of the UK exchange is that it comprises numerous smaller companies, as well as large and midcaps. While the fluctuations of mid and smallcap share prices are often somewhat uncorrelated with those of the majors, over the longer term as a group they tend to outperform.
Ongoing institutional redemptions are still depressing the share prices of UK quoted companies and hence their valuations, but company buybacks are now offsetting this adverse trend.
Investment Manager's Report continued
After persistent US stock exchange outperformance over decades, many UK investors have sold down UK stocks heavily over the last three years.
Amongst UK-quoted largecaps the ongoing institutional selling of recent years has been offset by an increased willingness to buy back their shares. Whilst some UK smallcaps have also decided to buy back their shares, in general the scale of ongoing institutional selling has overwhelmed buyers, to the extent that their share prices have often declined.
The net effect is that the valuation of the UK exchange has weakened over recent years, which contrasts with others such as the US which have risen. In the Outlook section below, we outline why we believe that global investors will greatly increase their UK capital allocations from here. Given that the UK stock market's valuation is comparatively low, we believe such a change in institutional capital flows would drive considerable outperformance.
Many potential global winners are standing on unusually low valuations in the UK and sometimes their adverse share price momentum and valuation have given a misleading impression.
Many link a rapidly rising share price with a confidence that the underlying company's prospects continue to improve. In this context, if a share price isn't rising well, then it is easy to assume that the prospects for the underlying business are static or unexciting.
In the UK, there are numerous stocks that we believe have the potential to be global winners, with prospects that continue to improve, and yet with the pressure of UK OEIC selling, their absence of share price improvement currently gives a misleading impression.
Stocks that we believe have the potential to be global winners in future, where heavy UK redemptions have led to abnormally low valuations. The list below includes examples brought into the portfolio, or otherwise topped up.
| Concurrent Technologies |
|---|
| Cyanconnode |
| Beeks Financial Cloud |
| Record |
| Gulf Marine |
| Raspberry Pi |
| Gaming Realms |
| TruFin |
| Intercede |
| Capital Intl |
Investment Manager's Report continued
In general, even successful UK stocks have not risen as much as usual with good results, and hence the Trust hasn't taken as much profit on these as yet. Thus, the largest holdings have grown to comprise a larger portfolio weighting than previously.
The following portfolio holdings have been retained even after outperforming and becoming larger portfolio weightings, because their valuations have not yet risen as much as usual during the period of ongoing UK OEIC redemptions.
| Weightings | |
|---|---|
| Holdings | % |
| Galliford Try Holdings Plc | 3.26 |
| TP ICAP Group Plc | 3.07 |
| Paypoint Plc | 2.99 |
| CMC Markets Plc | 2.95 |
| XPS Pensions Group Plc | 2.74 |
| Pan African Resources Plc | 2.67 |
| BT Group Plc | 2.14 |
| Concurrent Technologies Plc | 1.99 |
Source: Premier Miton
Weighting of the largest 10 holdings at the end of the last six half year periods
Source: Premier Miton
Alongside, with the Trust's largest portfolio weightings increasing, its number of holdings is also reducing, in a trend that we anticipate persisting, such that the number may stabilise around 80 later in the year.
Since 2019, the dividend income paid by UK stock market as a whole has fallen, whereas the Trust's revenue and dividends have grown further through this period.
Despite the aggregate dividend paid by the UK stock marketing falling since 2019, due to the pandemic, the Trust's revenue per share, and dividends paid to shareholders have been resilient, and continued to grow through the period.
Source: Company
When the trust was first listed, it was always envisaged that if its portfolio generated stronger dividend growth than others over the longer term, then that would also be reflected in superior total returns for shareholders (ie the return of both the stream of cash dividends and the Trust's NAV appreciation together).
Source: Morningstar
Since launch in 2011, the NAV of the Trust rose 235.5% in total return terms, the Peer Group rose by 176.1%, whilst the Deutsche Numis All-Share Index rose by 123.6%, and the Deutsche Numis Smaller Companies Plus AIM Index rose 106.1%.
The Outlook for the Trust
Investment Manager's Report continued
Globalisation was a period when interest rates fell progressively, market liquidity was abundant, and budget deficits were relatively easy to finance. With nationalism and protectionism however, geopolitical tensions now predominate – along with the open-ended risks that they carry. In addition, with government debt costs rising, plus the extra defence spend and potential unemployment benefit to come in future, legislatures are currently upping their tax take, in a trend that may be set to crowd out others.
Globalisation favoured large and megacaps, such that strategies almost wholly invested in a limited number of industry sectors, via a limited number of large holdings were able to deliver perfectly good customer outcomes. With protectionism from here however, we worry that strategies aligned with the long decades of abundant 'Goldilocks' market liquidity may now deliver poorer outcomes.
The Diverse Income Trust's strategy intentionally contrasts, so that it has the potential to greatly outperform. Specifically, its investment universe covers all equity income stocks, including mid and smallcaps, and deliberately extends across the full range of industry sectors too.
During periods of persistent market liquidity challenge in the past, numerous corporates often ran short of ready cash. In contrast, those generating surplus cash didn't just survive, but had the advantage that they could actively enhance their earnings growth potential. They could fund expansion into the markets vacated by insolvencies. They could acquire over-leveraged but otherwise viable companies – sometimes for as little as £1 – debt-free from the receiver. These deals typically delivered unusually strong returns on capital, such that mid and smallcap deals in particular, could sometimes deliver aggressive earnings upgrades.
For this reason, the UK exchange's large cohort of equity income stocks is overwhelmingly important, given that President Trump's mandate of sweeping change runs the risk of unintended consequences. We believe equity income strategies are now set to gather increasingly expansive capital allocations, making the UK one of the best performing of global exchanges – as it was in the 1970's.
Perhaps of even greater significance, UK-quoted mid and smallcaps greatly outperformed the majors during this decade, delivering returns that comfortably outpaced rising inflation, as well as being very considerably ahead of numerous international comparatives such as the US.
In short, whilst US protectionism may unsettle global stock markets and UK interest rates may remain higher than desired, we view all this positively. A weak UK exchange rate for example, would drive upgrades because the earnings of the largest UK stocks typically have a very large overseas component. Alongside, if companies with weak balance sheets did run into trouble more frequently, then those with strong balance sheets would have the advantage. We believe this would lead to productivity improvements, and quoted smallcap earnings upgrades. From here, even the slightest improvement in UK capital flows may be enough to drive dramatic share price appreciation. Overall, we believe the outperformance latency of the Trust is currently exceptional, and the strongest it has been for decades.
Gervais Williams and Martin Turner 10 February 2025
Portfolio Information
as at 30 November 2024
Galliford Try
Galliford Try is one of the UK's leading construction groups, working to improve the UK's infrastructure and built environment. The company has a notably strong balance sheet, with average net cash balances of £159m (FY25E average) that compares with its market capitalisation of £384m. In some business sectors it is one of the primary suppliers, including UK water where very substantial infrastructure investment is now planned.
Over recent years, Galliford Try's ongoing success has already been reflected in the growth in the cash dividend it has paid to shareholders. It was also successful in appealing to an arbitration about extra costs on a past contract and has therefore paid as a special dividend to shareholders as well. 10% 5% 0% One off special dividend Yield Plus special dividendYear to June '23 Year to June '24
At its Capital Markets Day in May 2024, Galliford Try highlighted its ambition to increase its profit margin from 2.6% at present to 4.0% by 2030. If it were to meet these targets, then they imply that Galliford Try's profits might grow at a rate of around 15% per annum up to 2030, providing further scope to grow its dividend at a rate well ahead of inflation. 10% 5% 0% 10% 5% 0% Yield Year to June '23 Year to June '24 Year to June '25F Year to Dec '22Yield Year to June '23 Year to June '24
Pan African Resources
Year to June '23
10%
Pan African Resources is a mid-scale South African-based gold miner. It mines gold both via underground operations and from surface tailings. Overall, it is one of the lowest cash-cost producers of gold in Southern Africa. 10% 5% 0% 10% 5% 0% One off special dividend 10% 5% 0% One off special dividend Yield Plus special dividendYear to June '23 Year to June '24
Over recent years, Pan African Resource's ongoing success has been reflected in terms of a growing stream of cash dividends. Yield Plus special dividend 10% 5%
Year
to June '24
Year to June '25F
Mintails, Pan African Resources' newest mine, has had a strong start, already producing c9,000 oz of gold in the recent half year. Alongside, with the appreciation of the gold price, its operations appear well set to generate considerable additional surplus cash in future.
Yu Group
Yu Group was set up as a new utility supplier of electricity and gas to the UK corporate sector, with an objective of growing market share by delivering service levels that are well ahead of much of its established competition.
Yu Group has grown very considerably over recent years, generating a growing stream of profits, although its success has only recently been reflected in terms of the payment of cash dividends.
Yield Year to Dec '23 Year to Dec '24F Currently, it is estimated that Yu has a market share of around 2.0%, although analysts believe this has the potential to rise circa 7.0% over the coming three to five years. If Yu were to succeed in anything like this scale, then the company would generate considerably greater sums of surplus cash, and its dividend growth has the potential to be unusually strong. 10% 5% 0% Yield Year to June '25F Year to Dec '22 Year to Dec '23 Year to Dec '24F
Yield Year to Dec '23 Year to Dec '24FTP ICAP
10% 5% 0%
10% 5% 0%
Year to June '24
Yield
Year to Dec '22
Year to June '25F
Year to Dec '22
Year to Dec '22
Year to June '25F
TP ICAP Group considers itself to be the world's largest inter-dealer broker, alongside its position as the world's largest energy & commodities broker. Typically, the largest global investment banks and investment institutions are its customers, because they value its capacity to assist them in portfolio transactions, both via informative market data, and by offering access to extra market liquidity. 10% 5% 0% YieldYear to June '25F Year to Dec '22 Year to Dec '23 Year to Dec '24F
Yield Year to Dec '23 Year to Dec '24F Over recent years, TP ICAP's success has been reflected in the growth in its cash dividend.
Yield Year to Dec '23 Year to Dec '24F In 2025, TP ICAP plans to part-IPO its data and analytics business that is called Parameta Solutions. This will release trapped capital, and underpin the strength of its cash generative credentials, and in doing so provide additional growth potential for its dividend.
Source: Company/market consensus forecasts; yields based on share price at the start of the period (31.05.24)
| Sector & | Valuation | % of | Yield | ||
|---|---|---|---|---|---|
| Rank | Company | main activity | £000 | net assets | % |
| 1 | Galliford Try | Industrials | 7,681 | 3.2 | 4.1 |
| 2 | TP ICAP | Financials | 7,253 | 3.1 | 5.6 |
| 3 | Paypoint | Industrials | 7,051 | 3.0 | 4.7 |
| 4 | CMC Markets | Financials | 6,960 | 2.9 | 3.8 |
| 5 | XPS Pensions | Financials | 6,485 | 2.7 | 2.8 |
| 6 | Pan African Resources** | Basic Materials | 6,296 | 2.7 | 2.8 |
| 7 | BT | Telecommunications | 5,047 | 2.1 | 5.0 |
| 8 | Concurrent Technologies** | Technology | 4,660 | 2.0 | 0.7 |
| 9 | Savannah Energy**+ | Energy | 4,407 | 1.9 | – |
| 10 | Kenmare Resources | Basic Materials | 4,339 | 1.8 | 11.7 |
| Top 10 investments | 60,179 | 25.4 | |||
| 11 | Yu** | Utilities | 4,157 | 1.8 | 3.1 |
| 12 | AVIVA | Financials | 3,956 | 1.7 | 7.1 |
| 13 | Phoenix | Financials | 3,888 | 1.6 | 10.4 |
| 14 | ME Group international | Consumer Discretionary | 3,795 | 1.6 | 3.6 |
| 15 | NewRiver REIT | Real Estate | 3,791 | 1.6 | 8.7 |
| 16 | Plus500 | Financials | 3,658 | 1.5 | 4.3 |
| 17 | Sainsbury (J) | Consumer Staples | 3,550 | 1.5 | 5.0 |
| 18 | Diversified Energy | Energy | 3,487 | 1.5 | 7.1 |
| 19 | Legal & General | Financials | 3,480 | 1.5 | 9.3 |
| 20 | MAN | Financials | 3,381 | 1.4 | 6.1 |
| Top 20 investments | 97,322 | 41.1 | |||
| 21 | FRP Advisory** | Industrials | 3,163 | 1.3 | 3.4 |
| 22 | National Grid | Utilities | 3,140 | 1.3 | 5.5 |
| 23 | Sabre Insurance | Financials | 3,115 | 1.3 | 4.5 |
| 24 | Smurfit WestRock (Formally Smurfit Kappa) | Industrials | 3,085 | 1.3 | 2.2 |
| 25 | TruFin** | Financials | 3,039 | 1.3 | – |
| 26 | M&G | Financials | 2,954 | 1.3 | 10.0 |
| 27 | Greatland Gold** | Basic Materials | 2,947 | 1.3 | – |
| 28 | Tesco | Consumer Staples | 2,922 | 1.2 | 3.4 |
| 29 | Just | Financials | 2,826 | 1.2 | 1.5 |
| 30 | Conduit Holdings | Financials | 2,672 | 1.1 | 5.2 |
| Top 30 investments | 127,185 | 53.7 | |||
| 31 | Intercede** | Technology | 2,624 | 1.1 | – |
| 32 | Vodafone | Telecommunications | 2,554 | 1.1 | 7.9 |
| 33 | Norcros | Industrials | 2,487 | 1.0 | 4.1 |
| 34 | Tatton Asset Management** | Financials | 2,485 | 1.0 | 2.5 |
| 35 | BAE Systems | Industrials | 2,382 | 1.0 | 2.5 |
| 36 | McBride | Consumer Staples | 2,335 | 1.0 | – |
| 37 | H&T** | Financials | 2,301 | 1.0 | 4.9 |
| 38 | Greencoat UK Wind | Financials | 2,297 | 1.0 | 8.7 |
| 39 | AO World | Consumer Discretionary | 2,255 | 1.0 | – |
| 40 | Lancashire | Financials | 2,209 | 0.9 | 12.6 |
| Top 40 investments | 151,114 | 63.8 | |||
| Balance held in 76 equity investments | 67,688 | 28.5 | |||
| Total investment portfolio | 218,802 | 92.3 | |||
| Other net current assets | 18,176 | 7.7 | |||
| Net assets | 236,978 | 100.0 | |||
* Source: Refinitiv. Based on historical yields and therefore not representative of future yields. Includes special dividends where applicable.
** AIM/AQUIS listed
Portfolio Information
as at 30 November 2024
+ Security currently suspended; Level 3 investment (see note 9)
Portfolio Information continued
Financials Industrials Energy Basic Materials Telecomms Utilities Financials Industrials Basic Materials Energy Consumer Discretionary Real Estate Technology Utilities Consumer Staples Telecomms Health Care Portfolio exposure by sector (%) Actual income by sector (%) £218.8 million £6.3 million 34.6 17.7 10.0 7.0 3.8 8.8 4.7 37.5 14.5 7.1 4.7 4.4 3.0 4.3 0.4 1.2 16.0 6.9 4.0 0.7 4.6 4.1 Real Estate Consumer Staples Consumer Discretionary Technology Health Care
Portfolio as at 30 November 2024
Source: Refinitiv
The tables above set out how the portfolio's capital was deployed as at 30 November 2024. The data is shown in terms of the classifications on which the holdings are listed. The portfolio as at 30 November 2024 is set out in detail on page 11, in line with that included in the Balance Sheet on page 16.
The investment income above comprises the income from the portfolio as included in the Income Statement for the year ending 30 November 2024 attributable to the various sectors. The returns of the Company are from Capital and Revenue. Investments for the Company's portfolio are principally selected on their individual merits. As the portfolio evolves, the Manager continuously reviews the portfolio's overall sector and index balance to ensure that it remains in line with the underlying conviction of the Manager.
The Investment Policy is set out on page 24, and details regarding risk factors and diversification and other policies are set out each year in the Annual Report.
The investments are held on regulated exchanges, primarily the LSE Main Market and AIM. This provides the ability of smaller listed companies to raise funds. This also provides liquidity in acquisition and disposal of shares by the Company. The Manager actively reviews the liquidity of the investments in the portfolio. The Company maintains an adequate cash position to enable it to take advantage of investments at opportune times.
Interim Management Report and Directors' Responsibility Statement
Interim Management Report
Portfolio Information continued
The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal risks and uncertainties for the remaining six months of the financial year are set out in the Chairman's Statement on pages 2 and 3 and the Manager's Report on pages 4 to 8.
The principal risks facing the Group are substantially unchanged since the date of the Annual Report and Accounts for the year ended 31 May 2024 and continue to be as set out in that report on pages 12 to 15.
Risks faced by the Group include, but are not limited to, investment and strategy, the size of the company, a lesser portfolio weighting within the mainstream indices, dividend cover, share price volatility and discount/marketability risk, key fund management team risk, engagement of third party service providers and major market event, climate change or geo-political risk.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
• the condensed set of financial statements has been prepared in accordance with the applicable set of accounting standards and Article 4 of the IAS Regulation; and gives a true and fair view of the assets, liabilities and financial position and return of the Group; and
- this Half-Yearly Financial Report includes a fair review of the information required by:
-
- DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
-
- DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related party transactions that could do so.
-
This Half-Yearly Financial Report was approved by the Board of Directors on 10 February 2025 and the above responsibility statement was signed on its behalf by:
Andrew Bell Chairman 10 February 2025
Condensed Consolidated Income Statement
for the half year to 30 November 2024 (unaudited)
| Half year to 30 November 2024 |
Half year to 30 November 2023 |
Year ended 31 May 2024* |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | Revenue return £000 |
Capital return £000 |
Total £000 |
Revenue return £000 |
Capital return £000 |
Total £000 |
Revenue return £000 |
Capital return £000 |
Total £000 |
|
| Gains/(losses) on investments held at fair value through profit or loss |
11 | – | 3,051 | 3,051 | – | (9,276) | (9,276) | – | 30,676 | 30,676 |
| Losses on derivative contracts | – | – | – | – | (848) | (848) | – | (848) | (848) | |
| Foreign exchange (losses)/gains | – | (1) | (1) | – | 1 | 1 | – | (1) | (1) | |
| Income | 2 | 6,960 | – | 6,960 | 8,507 | – | 8,507 | 15,550 | – | 15,550 |
| Management fee | 3 | (232) | (697) | (929) | (291) | (872) | (1,163) | (591) | (1,774) | (2,365) |
| Other expenses | 4 | (428) | – | (428) | (435) | – | (435) | (856) | – | (856) |
| Return on ordinary activities before finance costs and taxation |
6,300 | 2,353 | 8,653 | 7,781 | (10,995) | (3,214) | 14,103 | 28,053 | 42,156 | |
| Finance costs | 5 | – | – | – | (4) | (12) | (16) | (4) | (12) | (16) |
| Return on ordinary activities before taxation |
6,300 | 2,353 | 8,653 | 7,777 | (11,007) | (3,230) | 14,099 | 28,041 | 42,140 | |
| Taxation – irrecoverable withholding tax |
6 | (73) | – | (73) | (124) | – | (124) | (195) | – | (195) |
| Return on ordinary activities after taxation |
7 | 6,227 | 2,353 | 8,580 | 7,653 | (11,007) | (3,354) | 13,904 | 28,041 | 41,945 |
| Basic and diluted return: | pence | pence | pence | pence | pence | pence | pence | pence | pence | |
| Per ordinary share | 7 | 2.63 | 1.00 | 3.63 | 2.38 | (3.43) | (1.04) | 4.35 | 8.77 | 13.12 |
* Extracted from audited financial statements.
The total column of this statement is the Income Statement of the Company prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of UK IFRS. The supplementary revenue and capital columns are presented in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies ('AIC SORP').
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year.
There is no other comprehensive income and therefore the return on ordinary activities after tax is also the total comprehensive income.
The accompanying notes are an integral part of these financial statements.
Condensed Consolidated Statement of Changes in Equity
for the half year to 30 November 2024 (unaudited)
| Notes | Share capital £000 |
Share premium account £000 |
Capital redemption reserve £000 |
Special reserve £000 |
Capital reserve £000 |
Revenue reserve £000 |
Total £000 |
|
|---|---|---|---|---|---|---|---|---|
| As at 1 June 2024* | 286 | 197,039 | 152 | – | 19,423 | 16,813 | 233,713 | |
| Total comprehensive income: | ||||||||
| Net return for the period | – | – | – | – | 2,353 | 6,227 | 8,580 | |
| Transactions with shareholders recorded directly to equity: |
||||||||
| Redemption of Ordinary shares 2024 | – | – | – | – | 4 | – | 4 | |
| Cancellation of Share premium account+ | – | (197,039) | – | 197,039 | – | – | – | |
| Equity dividends paid | 8 | – | – | – | – | – | (5,319) | (5,319) |
| As at 30 November 2024 | 286 | – | 152 | 197,039 | 21,780 | 17,721 | 236,978 |
+ Following Court approval and the consequent registration of the Court Order with the Registrar of Companies, the cancellation of the Company's Share Premium account became effective and an amount of £197,039,000 was transferred from the Share Premium account to the Special Reserve which is distributable.
| Notes | Share capital £000 |
Share premium account £000 |
Capital redemption reserve £000 |
Special reserve £000 |
Capital reserve £000 |
Revenue reserve £000 |
Total £000 |
|
|---|---|---|---|---|---|---|---|---|
| As at 1 June 2023* | 406 | 197,039 | 32 | 15,699 | 86,971 | 16,128 | 316,275 | |
| Total comprehensive income: | ||||||||
| Net return for the period | – | – | – | – | (11,007) | 7,653 | (3,354) | |
| Transactions with shareholders recorded directly to equity: |
||||||||
| Shares bought back and cancelled | – | – | – | (15,699) | (17,655) | – | (33,354) | |
| Cancellation of Ordinary shares | (37) | – | 37 | – | – | – | – | |
| Expenses in relation to cancellation | – | – | – | – | (4) | – | (4) | |
| Equity dividends paid | 4 | – | – | – | – | – | (6,849) | (6,849) |
| As at 30 November 2023 | 369 | 197,039 | 69 | – | 58,305 | 16,932 | 272,714 |
| Notes | Share capital £000 |
Share premium account £000 |
Capital redemption reserve £000 |
Special reserve £000 |
Capital reserve £000 |
Revenue reserve £000 |
Total £000 |
|
|---|---|---|---|---|---|---|---|---|
| As at 1 June 2023* | 406 | 197,039 | 32 | 15,699 | 86,971 | 16,128 | 316,275 | |
| Total comprehensive income: | ||||||||
| Return for the year | – | – | – | – | 28,041 | 13,904 | 41,945 | |
| Transactions with shareholders recorded directly to equity: |
||||||||
| Redemption of Ordinary shares 2023 | – | – | – | (15,699) | (17,655) | – | (33,354) | |
| Redemption of Ordinary shares 2024 | – | – | – | – | (77,930) | – | (77,930) | |
| Cancellation of Ordinary shares | (120) | – | 120 | – | – | – | – | |
| Expenses in relation to share cancellation | – | – | – | – | (4) | – | (4) | |
| Equity dividends paid | 4 | – | – | – | – | – | (13,219) | (13,219) |
| As at 31 May 2024 | 286 | 197,039 | 152 | – | 19,423 | 16,813 | 233,713 |
* Extracted from audited financial statements.
The accompanying notes are an integral part of these financial statements.
Condensed Consolidated Balance Sheet
as at 30 November 2024 (unaudited)
| Notes | 30 November 2024 £000 |
30 November 2023 £000 |
31 May 2024* £000 |
|
|---|---|---|---|---|
| Non-current assets: | ||||
| Investments held at fair value through profit or loss | 9 | 218,802 | 258,589 | 292,692 |
| Current assets: | ||||
| Trade and other receivables | 1,724 | 2,092 | 2,258 | |
| Cash at bank and cash equivalents | 16,836 | 12,790 | 17,027 | |
| 18,560 | 14,882 | 19,285 | ||
| Current liabilities: | ||||
| Trade and other payables | (384) | (757) | (334) | |
| Redemption Pool liability | – | – | (77,930) | |
| Net current assets | (384) | 14,125 | (58,979) | |
| Total net assets | 236,978 | 272,714 | 233,713 | |
| Capital and reserves: | ||||
| Share capital – ordinary shares | 5 | 236 | 319 | 236 |
| Share capital – management shares | 5 | 50 | 50 | 50 |
| Share premium account | – | 197,039 | 197,039 | |
| Capital redemption reserve | 152 | 69 | 152 | |
| Special reserve | 197,039 | – | – | |
| Capital reserve | 21,780 | 58,305 | 19,423 | |
| Revenue reserve | 17,721 | 16,932 | 16,813 | |
| Shareholders' funds | 236,978 | 272,714 | 233,713 | |
| pence | pence | pence | ||
| Net asset value per Ordinary Share – basic and diluted | 6 | 100.25 | 85.61 | 98.87 |
* Extracted from audited financial statements.
The accompanying notes are an integral part of these financial statements.
Condensed Consolidated Cash Flow Statement
Condensed Consolidated
as at 30 November 2024 (unaudited)
Balance Sheet
for the half year to 30 November 2024 (unaudited)
| Half year to 30 November |
Half year to 30 November |
Year ended 31 May |
|
|---|---|---|---|
| 2024 £000 |
2023 £000 |
2024* £000 |
|
| Operating activities: | |||
| Net return before taxation | 8,653 | (3,230) | 42,140 |
| (Gains)/losses on investments and derivatives held at fair value through profit or loss | (3,051) | 10,124 | (29,828) |
| Finance costs | – | 9 | 9 |
| Decrease in trade and other receivables | 521 | 173 | 20 |
| Increase/(decrease) in trade and other payables | 50 | (60) | (46) |
| Withholding tax paid | (73) | (124) | (195) |
| Net cash inflow from operating activities | 6,100 | 6,892 | 12,100 |
| Investing activities: | |||
| Purchase of investments | (27,967) | (33,536) | (55,893) |
| Sale of investments | 104,920 | 45,174 | 72,930 |
| Net cash inflow from financing activities | 76,953 | 11,638 | 17,037 |
| Financing activities: | |||
| Cancellation of shares | (77,925) | (33,358) | (33,354) |
| Expenses in relation to share cancellation | – | – | (4) |
| Revolving credit facility non-utilisation fee paid | – | (9) | (9) |
| Equity dividends paid | (5,319) | (6,849) | (13,219) |
| Net cash outflow from financing | (83,244) | (40,216) | (46,586) |
| Decrease in cash and cash equivalents | (191) | (21,686) | (17,449) |
| Reconciliation of net cash flow movements in funds: | |||
| Cash and cash equivalents at the start of the period | 17,027 | 34,476 | 34,476 |
| Net cash outflow from cash and cash equivalents | (191) | (21,686) | (17,449) |
| Cash at bank and cash equivalents at the end of the period | 16,836 | 12,790 | 17,027 |
| Cash and cash equivalents | |||
| Comprise the following: | |||
| Cash at bank | 16,836 | 12,790 | 17,027 |
| 16,836 | 12,790 | 17,027 |
* Extracted from audited financial statements.
The notes on pages 18 to 23 form part of these financial statements.
Notes to the Condensed Consolidated Financial Statements
for the half year to 30 November 2024 (unaudited)
1. General Information and Accounting Policies
The condensed consolidated financial statements, which comprise the unaudited results of the Company and its wholly-owned subsidiary, DIT Income Services Limited (together referred to as the "Group"), for the period ended 30 November 2024 have been prepared in accordance with UK-adopted international accounting standards and the AIC SORP.
In the current period, the Company has applied amendments to IFRS issued by the IASB adopted in conformity with UK IFRS. These include annual improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosure and presentation requirements. The adoption of these has not had any material impact on these financial statements and the accounting policies used by the Company followed in these half-year financial statements are consistent with the most recent Annual Report for the year ended 31 May 2024.
Going concern
The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust company will continue to be met.
The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date when these financial statements were approved. In making the assessment, the Directors of the Company have considered the likely impacts of international and economic uncertainties on the Company, operations and the investment portfolio. These include, but are not limited to, geopolitical events, the conflicts in Europe and the Middle East.
The Directors noted that the Company, with the current cash balance and holding a portfolio of listed investments, is able to meet the obligations of the Company as they fall due. The current cash balance enables the Company to meet any funding requirements and finance future additional investments. The Company is a closed-end fund, where assets are not required to be liquidated to meet day to day redemptions.
The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash flows. In making this assessment, they have considered plausible downside scenarios. The conclusion was that in a plausible downside scenario the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and the Directors believe that it is possible the Company could experience further reductions in income and/or market value, and changes in expenses, the opinion of the Directors is that this should not be to a level which would threaten the Company's ability to continue as a going concern.
The Directors are not aware of any material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows and investment commitments (of which there are none of significance). Therefore, the financial statements have been prepared on the going concern basis.
Comparative information
The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in the Companies Act 2006. The financial information for the half-year periods ended 30 November 2023 and 30 November 2024 has not been audited or reviewed by the Company's Auditor. The comparative figures for the financial year ended 31 May 2024 have been extracted from the latest published Annual Report and Accounts, which have been reported on by the Company's Auditor and delivered to the Registrar of Companies. The report of the Auditor was (i) unqualified, (ii) did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
2. Income
Notes to the Condensed Consolidated
Financial Statements
for the half year to 30 November 2024 (unaudited)
| Half year to 30 November 2024 | Half year to 30 November 2023 | Year ended 31 May 2024 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Income from investments: |
|||||||||
| UK dividends | 4,778 | – | 4,778 | 5,885 | – | 5,885 | 10,511 | – | 10,511 |
| UK REIT dividend income | 188 | – | 188 | 301 | – | 301 | 486 | – | 486 |
| Non UK dividend income | 1,291 | – | 1,291 | 1,943 | – | 1,943 | 3,896 | – | 3,896 |
| 6,257 | – | 6,257 | 8,129 | – | 8,129 | 14,893 | – | 14,893 | |
| Other income: | |||||||||
| Bank deposit interest | 713 | – | 713 | 381 | – | 381 | 659 | – | 659 |
| Exchange losses | (10) | – | (10) | (3) | – | (3) | (2) | – | (2) |
| Total income | 6,960 | – | 6,960 | 8,507 | – | 8,507 | 15,550 | – | 15,550 |
3. Return per Ordinary Share
Returns per share are based on the weighted average number of shares in issue during the period. Normal and diluted return per share are the same as there are no dilutive elements on share capital.
| Half year to 30 November 2024 |
Half year to 30 November 2023 |
Year ended 31 May 2024 |
||||
|---|---|---|---|---|---|---|
| £000 | pence per share |
£000 | pence per share |
£000 | pence per share |
|
| Revenue return | 6,227 | 2.63 | 7,653 | 2.38 | 13,904 | 4.35 |
| Capital return | 2,353 | 1.00 | (11,007) | (3.43) | 28,041 | 8.77 |
| Total return | 8,580 | 3.63 | (3,354) | (1.04) | 41,945 | 13.12 |
| Weighted average number of ordinary shares | 236,393,165 | 321,192,500 | 319,642,124 |
4. Dividends per Ordinary Share
Amounts recognised as distributions to equity holders in the period.
| Half year to 30 November 2024 |
Half year to 30 November 2023 |
Year ended 31 May 2024 |
||||
|---|---|---|---|---|---|---|
| pence | pence | pence | ||||
| £000 | per share | £000 | per share | £000 | per share | |
| In respect of the previous period: | ||||||
| Third interim dividend | 2,482 | 1.05 | 3,026 | 0.95 | 3,026 | 0.95 |
| Final dividend | 2,837 | 1.20 | 3,823 | 1.20 | 3,822 | 1.20 |
| In respect of the period under review: | ||||||
| First interim dividend | – | – | – | – | 3,185 | 1.00 |
| Second interim dividend | – | – | – | – | 3,186 | 1.00 |
| 5,319 | 2.25 | 6,849 | 2.15 | 13,219 | 4.15 |
The Board has declared a first interim dividend of 1.00p per ordinary share, payable on 28 February 2025 to shareholders registered at the close of business on 20 December 2024. The ex-dividend date was 19 December 2024. The Board has also declared a second interim dividend of 1.05p per ordinary share, payable on 30 May 2025 to shareholders registered at the close of business on 21 March 2025. The ex-dividend date will be 20 March 2025 and the latest date to elect for dividends to be reinvested via the Dividend Reinvestment Plan ("DRIP") will be 11 April 2025.
5. Called-up Share Capital
The Company, which is a closed-ended investment company with an unlimited life, has a redemption facility through which shareholders are entitled to request the redemption of all or part of their holding of ordinary shares annually, historically, on 31 May each year. However, this is changing to 29 August starting in 2025. The Board may, at its absolute discretion, elect not to operate the annual redemption facility in whole or in part. In respect of the 31 May 2024 Redemption Point, the Company received redemption requests for 82,147,477 ordinary shares. All of these shares were redeemed by the Company at the calculated redemption price of 94.86p per share and cancelled.
The issued share capital consisted of 236,393,165 ordinary shares and 50,000 management shares as at 30 November 2024.
6. Net Asset Value
Ordinary shares
Notes to the Condensed Consolidated
Financial Statements continued
The NAV per ordinary share and the net assets attributable at the period end were as follows:
| Net assets | Net assets | Net assets | ||||
|---|---|---|---|---|---|---|
| NAV pence | attributable | NAV pence | attributable | NAV pence | attributable | |
| per share | 30 November | per share | 30 November | per share | 31 May | |
| 30 November | 2024 | 30 November | 2023 | 31 May | 2024 | |
| 2024 | £000 | 2023 | £000 | 2024 | £000 | |
| Basic and diluted | 100.25 | 236,978 | 85.61 | 272,714 | 98.87 | 233,713 |
NAV per ordinary share is based on net assets at the period end and 236,393,165 ordinary shares, being the number of ordinary shares in issue at the period end (30 November 2023: 318,540,642 and 31 May 2024: 236,393,165 ordinary shares).
Management shares
The NAV of £1 (30 November 2023: £1 and 31 May 2024: £1) per management share is based on net assets at the period end of £50,000 (30 November 2023: £50,000 and 31 May 2024: £50,000) and 50,000 (30 November 2023: 50,000 and 31 May 2024: 50,000) management shares. The shareholders have no right to any surplus or capital or assets of the Company.
7. Transaction Costs
During the period, expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Income Statement. The total costs were as follows:
| Half year to | Half year to | Year ended | |
|---|---|---|---|
| 30 November | 30 November | 31 May | |
| 2024 | 2023 | 2024 | |
| £000 | £000 | £000 | |
| Costs on acquisitions | 61 | 141 | 241 |
| Costs on disposals | 64 | 29 | 44 |
| 125 | 170 | 285 |
These transaction costs are dealing commissions paid to stockbrokers and stamp duty, a government tax paid on transactions (which is zero when dealing on the AIM/AQUIS exchanges). A breakdown of these costs is set out below:
| Half year to 30 November 2024 £000 |
% of average monthly net assets |
Half year to 30 November 2023 £000 |
% of average monthly net assets |
Year to 31 May 2024 £000 |
% of average monthly net assets |
|
|---|---|---|---|---|---|---|
| Costs paid in dealing commissions | 76 | 0.03 | 46 | 0.02 | 72 | 0.02 |
| Costs of stamp duty | 49 | 0.02 | 124 | 0.05 | 213 | 0.08 |
| 125 | 0.05 | 170 | 0.07 | 285 | 0.10 |
The average monthly net assets for the six months to 30 November 2024 were £233,790,000 (30 November 2023: £275,246,000 and 31 May 2024: £275,707,000).
Notes to the Condensed Consolidated Financial Statements continued
8. Management Fee
The management fee is calculated at the rate of one-twelfth of 0.8% per calendar month on the average market capitalisation of the Company's shares up to £450m and 0.7% above £450m, payable monthly in arrears. In addition to the basic management fee, and for so long as a Redemption Pool is in existence, the Manager is entitled to receive from the Company a fee calculated at the rate of one-twelfth of 1.0% per calendar month of the NAV of the Redemption Pool on the last business day of the relevant calendar month.
At 30 November 2024, the management fee was £929,000 (30 November 2023: £1,163,000 and 31 May 2024: £2,365,000), of which an amount of £288,000 was outstanding and due to Premier Portfolio Managers Limited in respect of management fees (30 November 2023: £235,000 and 31 May 2024: £213,000).
9. Valuation of Financial Instruments
The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements. Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant assets as follows:
Level 1 – valued using quoted prices, unadjusted in active markets for identical assets or liabilities.
- Level 2 valued by reference to valuation techniques using observable inputs for the asset or liability other than quoted prices included in Level 1.
- Level 3 valued by reference to valuation techniques using inputs that are not based on observable market data for the asset or liability.
The tables below set out fair value measurements of financial instruments as at the period end, by the level in the fair value hierarchy into which the fair value measurement is categorised.
Financial assets
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| £000 | £000 | £000 | £000 | |
| Financial assets at fair value through profit or loss at 30 November 2024 | ||||
| Equity investments | 214,395 | – | 4,407 | 218,802 |
| 214,395 | – | 4,407 | 218,802 | |
| Level 1 | Level 2 | Level 3 | Total | |
| £000 | £000 | £000 | £000 | |
| Financial assets at fair value through profit or loss at 30 November 2023 | ||||
| Equity investments | 253,106 | 432 | 5,051 | 258,589 |
| 253,106 | 432 | 5,051 | 258,589 | |
| Level 1 £000 |
Level 2 £000 |
Level 3 £000 |
Total £000 |
|
| Financial assets at fair value through profit or loss at 31 May 2024 | ||||
| Equity Investments | 288,285 | – | 4,407 | 292,692 |
| 288,285 | – | 4,407 | 292,692 |
Subsidiary
Notes to the Condensed Consolidated
Financial Statements continued
The value of the subsidiary, DIT Income Services Limited, held at fair value is £1 (30 November 2023: £1 and 31 May 2024: £1) and is classified as a Level 3 investment.
The Company's subsidiary completes trading transactions. There were no investments held for trading in the subsidiary at 30 November 2024 (30 November 2023: £nil and 31 May 2024: £nil). The difference between the sale and purchase of assets is trading income recognised in the Income Statement.
10. Transactions with the Manager and Related Parties
The amounts paid and payable to the Manager pursuant to the management agreement are disclosed in note 8. Fees paid to the Directors in the half year to 30 November 2024 amounted to £88,000 (half year to 30 November 2023: £87,000 and year ended 31 May 2024: £175,000).
Investment Objective and Policy
Investment Objective
The Company's investment objective is to provide shareholders with an attractive and growing level of dividends coupled with capital growth over the long term.
Investment Policy
The Company invests primarily in UK-quoted or traded companies with a wide range of market capitalisations, but a long-term bias toward small and mid cap equities. The Company may also invest in large cap companies, including FTSE 100 constituents, where it is believed that this may increase shareholder value.
The Manager adopts a stock specific approach in managing the Company's portfolio and therefore sector weightings are of secondary consideration. As a result of this approach, the Company's portfolio does not track any benchmark index.
The Company may utilise derivative instruments including index-linked notes, contracts for differences, covered options and other equity-related derivative instruments for efficient portfolio management, gearing and investment purposes. Any use of derivatives for investment purposes will be made on the basis of the same principles of risk spreading and diversification that apply to the Company's direct investments, as described below. The Company will not enter into uncovered short positions.
Risk Diversification
Portfolio risk is mitigated by investing in a diversified spread of investments. Investments in any one company shall not, at the time of acquisition, exceed 15% of the value of the Company's investment portfolio. Typically it is expected that the Company will hold a portfolio of between 100 and 180 securities, most of which will represent no more than 1.5% of the value of the Company's investment portfolio as at the time of acquisition.
The Company will not invest more than 10% of its gross assets, at the time of acquisition, in other listed closed-ended investment funds, whether managed
by the Manager or not, except that this restriction shall not apply to investments in listed closed-ended investment funds which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed-ended investment funds. In addition to this restriction, the Directors have further determined that no more than 15% of the Company's gross assets will, at the time of acquisition, be invested in other listed closed-ended investment funds (including investment trusts) notwithstanding whether or not such funds have stated policies to invest no more than 15% of their gross assets in other listed closedended investment funds.
Unquoted Investments
The Company may invest in unquoted companies from time to time subject to prior Board approval. Investments in unquoted companies in aggregate will not exceed 5% of the value of the Company's investment portfolio as at the time of investment.
Borrowing and Gearing Policy
The Board considers that long-term capital growth may be enhanced by the use of gearing which may be through bank borrowings and the use of derivative instruments such as contracts for differences. The Company may borrow (through bank facilities and derivative instruments) up to 15% of NAV (calculated at the time of borrowing).
The Board oversees the level of gearing in the Company, and reviews the position with the Manager on a regular basis.
In the event of a breach of the investment policy set out above and the investment and gearing restrictions set out therein, the Manager shall inform the Board upon becoming aware of the same and if the Board considers the breach to be material, notification will be made to the LSE.
No material change will be made to the investment policy without the approval of shareholders by ordinary resolution.
Shareholder Information
Capital Structure
Investment Objective and Policy
The Company's share capital consists of redeemable ordinary shares of 0.1p each ("ordinary shares") with one vote per share and non-voting management shares of £1 each ("management shares"). From time to time, the Company may issue C ordinary shares of 1p each ("C shares") with one vote per share.
As at 30 November 2024, there were 236,393,165 ordinary shares in issue. As at the date of this Report there are 236,393,165 ordinary shares in issue, none of which are held in treasury, and 50,000 management shares in issue.
Redemption of Ordinary Shares
The Company has a redemption facility through which shareholders are entitled to request the redemption of all or part of their holding of ordinary shares. Redemption Request forms are available upon request from the Company's Registrar.
Shareholders submitting valid requests for the redemption of ordinary shares will have their shares redeemed at the Redemption Price or the Company may arrange for such shares to be sold in the market at the prevailing NAV (including current period revenue) (the "Dealing Value") (subject to the Directors' discretion). The Directors may elect, at their absolute discretion, to calculate the Redemption Price applying on any redemption point by reference to a separate Redemption Pool, when the Redemption Price will be calculated by reference to the amount generated upon the realisation of the Redemption Pool.
The Board may, at its absolute discretion, elect not to operate the annual redemption facility on any given Redemption Point, or to decline in whole or part any redemption request. To date, the Board has not exercised this discretion but retains the right to do so, as set out in the Articles of Association, if they consider it to be in the interests of shareholders as a whole.
A redemption of ordinary shares may be subject to either income tax and/or capital gains tax. In particular, private shareholders that sell their shares via the redemption mechanism could find they are subject to income tax on the gains made on the redeemed shares rather than the more usual capital gains tax on the sale of their shares in the market. However, individual circumstances do vary, so shareholders who are in any doubt about the redemption or the action that should be taken should consult their stockbroker, accountant, tax adviser or other independent financial adviser.
The relevant dates for the August 2025 Redemption Point are:
| 29 July 2025 | Latest date for receipt of Redemption Requests and certificates for certificated shares |
|---|---|
| 3.00 pm on 29 July 2025 |
Latest date and time for receipt of Redemption Requests and TTE (transfer to escrow) instructions for uncertificated shares via CREST |
| 5.00 pm on 29 August 2025 |
The Redemption Point |
| On or before 12 September 2025 |
Company to notify Redemption Price and dispatch redemption monies; or |
| If the redemption is to be funded by way of a Redemption Pool, Company to notify the number of shares being redeemed. Notification of Redemption Price and dispatch of redemption monies to take place as soon as practicable thereafter |
|
| On or before 26 September 2025 |
Balance certificates to be sent to shareholders |
Further details of the redemption facility are set out in the Company's Articles of Association or are available from the Company Secretary.
Shareholder Information continued
Historic Dividend Record
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Year ended 31 May: | pence | pence | pence | pence | pence | pence | pence | pence | pence | pence |
| First interim dividend | 0.65 | 0.70 | 0.75 | 0.80 | 0.85 | 0.85 | 0.90 | 0.95 | 1.00 | 1.00 |
| Second interim dividend | 0.65 | 0.70 | 0.80 | 0.85 | 0.90 | 0.90 | 0.90 | 0.95 | 1.00 | 1.05 |
| Third interim dividend | 0.75 | 0.80 | 0.85 | 0.90 | 0.90 | 0.90 | 0.90 | 0.95 | 1.05 | – |
| Final dividend | 0.75 | 0.80 | 1.00 | 1.10 | 1.05 | 1.10 | 1.20 | 1.20 | 1.20 | – |
| Special dividend | – | 0.401 | 0.231 | 0.161 | – | – | – | – | – | – |
| 2.80 | 3.40 | 3.63 | 3.81 | 3.70 | 3.75 | 3.90 | 4.05 | 4.25 | 2.05 |
1 A special dividend was paid for the years ended 31 May 2017, 31 May 2018 and 31 May 2019, reflecting years when many special dividends were also paid by the companies in the portfolio.
Share Dealing
Shares can be traded through your usual stockbroker.
Share Prices
The Company's ordinary shares are listed on the Official List of the FCA and traded on the LSE.
Share Register Enquiries
The register for the ordinary shares is maintained by MUFG Corporate Markets. In the event of queries regarding your holding, please contact the Registrar on 0371 664 0300 or on +44 (0)371 664 0300 from outside the UK (calls are charged at the standard geographic rate and will vary by provider; calls outside the UK will be charged at the applicable international rate). Lines are open 9.00am to 5.30pm, Monday to Friday, excluding public holidays in England and Wales. You can also email [email protected]
Changes of name and/or address must be notified in writing to the Registrar: MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds LS1 4DL.
Electronic Communications from the Company
Shareholders have the opportunity to be notified by email when the Company's annual report, halfyearly report and other formal communications are available on the Company's website, instead of receiving printed copies by post. This has environmental benefits in the reduction of paper, printing, energy and water usage, as well as reducing costs to the Company.
If you have not already elected to receive electronic communications from the Company and wish to do so, please contact the Registrar using the details shown on page 27. Please have your investor code to hand.
Manager: Premier Portfolio Managers Limited
The Company's Manager is Premier Portfolio Managers Limited, a wholly-owned subsidiary of Premier Miton Group plc. Premier Miton Group is listed on AIM.
Members of the fund management team invest in their own funds and are significant shareholders in the Premier Miton Group.
Investor updates in the form of monthly factsheets are available from the Company's website, www.diverseincometrust.com
| February 2025 | Announcement of half-yearly results Payment of first interim dividend |
|---|---|
| May 2025 | Year end Payment of second interim dividend |
| August 2025 | Announcement of annual results Redemption Point Payment of third interim dividend |
| October 2025 | Annual General Meeting |
| November 2025 | Half-year end Payment of final dividend |
An investment company as defined under Section 833 of the Companies Act 2006. Registered in England No. 7584303. A member of the Association of Investment Companies.
Directors and Advisers
Directors (all non-executive)
Andrew Bell, Chairman Charles Crole Caroline Kemsley-Pein Michelle McGrade Calum Thomson
Alternative Investment Fund Manager ("AIFM")
Premier Portfolio Managers Limited Eastgate Court High Street Guildford Surrey GU1 3DE
Investment Manager
Premier Fund Managers Limited Eastgate Court High Street Guildford Surrey GU1 3DE
Telephone: 020 3714 1525 Website: premiermiton.com
Authorised and Regulated by the Financial Conduct Authority
Company website
www.diverseincometrust.com
Auditor
BDO LLP 55 Baker Street London W1U 7EU
Banker Bank of New York Mellon One Piccadilly Gardens Manchester M1 1RN
Depositary and Custodian
The Bank of New York Mellon (International) Limited One Canada Square London E14 5AL
Secretary and Registered Office
Waystone Administration Solutions (UK) Limited Broadwalk House Southernhay West Exeter EX1 1TS
Tel: 01392 477500
Registrar and Transfer Office MUFG Corporate Markets
Shareholder Services Department Central Square 29 Wellington Street Leeds LS1 4DL
Tel: 0371 664 0300 (+44 (0)371 664 0300 from outside the UK) (calls are charged at the standard geographic rate and will vary by provider; calls from outside the UK will be charged at the applicable international rate).
Lines are open 9.00am to 5.30pm, Monday to Friday, excluding public holidays in England and Wales.
Email: [email protected] Web: www.mpms.mufg.com
Solicitor
Stephenson Harwood LLP
1 Finsbury Circus London EC2M 7SH
Stockbroker
Panmure Liberum Limited Ropemaker Place Level 12 25 Ropemaker Street London EC2Y 9LY
Shareholder Warning
Many companies are aware that their shareholders have received unsolicited phone calls or correspondence concerning investment matters. These calls typically come from fraudsters operating in 'boiler rooms' offering investors shares that often turn out to be worthless or non-existent, or an inflated price for shares they own. While high profits are promised, those who buy or sell shares in this way usually lose their money. These fraudsters can be very persistent and extremely persuasive. Shareholders are therefore advised to be very wary of any unsolicited advice, offers to buy shares at a discount or offers of free company reports.
It is very unlikely that either the Company or the Company's Registrar would make unsolicited telephone calls to shareholders and that any such calls would relate only to official documentation already circulated to shareholders and never in respect of investment 'advice'.
If you have been contacted by an unauthorised firm regarding your shares, you can report this using the FCA helpline on 0800 111 6768 or by using the share fraud reporting form at www.fca.org.uk/consumers/scams.
Glossary
AIC
The Association of Investment Companies.
AIM
The Alternative Investment Market is a sub-market of the LSE. It allows smaller companies to float shares with a more flexible regulatory system than applicable to the main market.
Alternative Performance Measure ("APM")
An APM is a numerical measure of the Company's current, historical or future financial performance, financial position or cash flows, other than a financial measure defined or specified in the applicable financial framework.
The Company uses a number of APMs to provide information in order to assist the Board and the Investment Manager in monitoring the Company in order for them to meet the objective of the Company, including the management of risk. These consist of, but are not limited to, key performance and financial indicators set out in the various relevant parts of the Report.
AQUIS Stock Exchange ("AQUIS")
The AQUIS Stock Exchange (previously known as NEX, ICAP Securities and Derivatives Exchange or ISDX) operates two primary traded market segments, the AQUIS Stock Exchange Main Market and the AQUIS Stock Exchange Growth Market. Both AQUIS Stock Exchanges are focused on smaller enterprises, with the latter focused on both smaller and medium-sized enterprises.
Deutsche Numis Indices
Deutsche Numis provides a range of indices covering the entire UK equity market. Those mentioned in the report comprise the following:
The Deutsche Numis All-Share Index contains all fully listed stocks plus all stocks listed on AIM. This is one of the Trust's comparator indices.
The Deutsche Numis Large Cap Index targets the top 80% of the UK main list by value.
The Deutsche Numis Mid Cap Index targets the bottom 20% of the UK main market but excludes the smallest 5%. There is some overlap with the Deutsche Numis Smaller Companies Index below.
The Deutsche Numis Smaller Companies Index
or DNSCI targets the bottom 10% of the main UK market by value.
The Deutsche Numis Smaller Companies plus AIM
Index includes all the constituents of the DNSCI and all companies listed on AIM that fall below the DNSCI size cut-off. This is one of the Trust's comparator.
The Deutsche Numis Alternative Markets
Index covers all companies listed on qualifying alternative markets.
Discount/Premium*
If the share price of an investment trust is lower than the NAV per share, the shares are said to be trading at a discount. The size of the discount is calculated by subtracting the share price from the NAV per share and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium.
| (Discount)/premium | 30 November | 31 May | |
|---|---|---|---|
| calculation | Page | 2024 | 2024 |
| Closing NAV per share (p) | 6 | 100.25 | 97.84 (a) |
| Closing share price (p) | 6 | 91.80 | 89.40 (b) |
| (Discount)/premium | |||
| c = (((b – a)÷a) x 100) (%) | 6 | (8.43) | (8.63) (c) |
The discount/premium and performance is calculated in accordance with guidelines issued by the AIC. The discount/premium is calculated using the NAV per share inclusive of accrued income with debt at market value.
Dividend Yield*
The annual dividend expressed as a percentage of the mid-market share price. This financial ratio shows how much an investment pays out in dividends relative to its stock price. The dividends are based upon historic dividend rates and announcements by the investment company. The dividend yield indicates the anticipated future cashflows from the investment contributing to the income of the Group.
Financial Conduct Authority ("FCA")
This regulator oversees the fund management industry, including the Company's Manager.
* Alternative performance measure.
Financial Reporting Council ("FRC")
The FRC regulates UK auditors and provides guidance to accountants with the aim of promoting better transparency and integrity in the annual reports of quoted businesses.
Gearing
Glossary
Gearing refers to the ratio of the Company's debt to its equity capital. The Company may borrow money to invest in additional investments for its portfolio. If the Company's assets grow, the shareholders' assets grow disproportionately because the debt remains the same. If the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets.
Group
The Company and its subsidiary, DIT Income Services Limited.
Growth Stock
A stock where the earnings are expected to grow at an above-average rate, leading to a faster than average growing share price. Growth stocks do not usually pay a significant dividend.
Key Performance Indicators ("KPIs")
KPIs are a short list of corporate attributes that are used to assess the general progress of the business and are outlined in this Report on the inside front cover.
Mega Cap
"Mega cap" is a designation for the largest companies in the investment universe as measured by market capitalisation, generally those above \$200bn.
Multicap
A multicap strategy is a portfolio invested in a broad range of stocks with market capitalisations ranging from large to small.
Net Asset Value per Ordinary Share ("NAV") or Adjusted Net Asset Value per Ordinary Share ("Adjusted NAV")*
The NAV is shareholders' funds expressed as an amount per individual share. Shareholders' funds are the total value of all of the Company's assets,
at their current market value, having deducted all liabilities and prior charges at their par value, or at their asset value as appropriate. The total NAV per share is calculated by dividing the NAV by the number of ordinary shares in issue excluding treasury shares.
Ongoing Charges*
As recommended by the AIC in its guidance, ongoing charges are the Company's annualised revenue and capital expenses (excluding finance costs and certain non-recurring items) expressed as a percentage of the average daily net assets of the Company during the year.
| 30 November | 31 May | ||
|---|---|---|---|
| Ongoing Charges | 2024 | 2024 | |
| Calculation | £'000 | £'000 | |
| Management fee | 1,708 | 2,365 | |
| Other administrative expenses |
836 | 856 | |
| Less one-time costs | (5) | (14) | |
| Total management fee and other administrative expenses (annualised) |
2,539 | 3,207 | (a) |
| Average net assets in the period/year |
232,613 | 282,251 | (b) |
| Ongoing charges c = ((a÷b) x 100) |
1.09 | 1.14 | (c) |
Peer Group
The Company is part of the AIC's UK Equity Income Investment Trust sector. The trusts in this universe are defined as trusts whose investment objective is to achieve a total return for shareholders through both capital and dividend growth. Typically, the funds will have a yield on the underlying portfolio ranging between 110% and 175% of that of the Deutsche Numis All-Share Index. They will also have at least 80% of their assets in UK listed securities.
Price to Book
A company's price to book ratio is its share price divided by its asset value per share. If this is below 1.0x, the stockmarket is thought to be underpricing the company in question in relation to the accounting value of its assets if sold.
* Alternative performance measure.
Glossary continued
Revenue, Capital and Total return per Ordinary share*
The Revenue, Capital and Total returns are set out in the Consolidated Income Statement on page 14. These consist of income, less expenses and taxation allocated between Revenue and Capital in accordance with the AIC SORP and accounting policies of the Group. The Revenue and Capital returns per share together comprise the Total return per share. The returns per ordinary share are calculated by dividing the Revenue, Capital and Total returns by the weighted average shares in issue during the year excluding treasury shares. The calculation is set out in Note 7 on page 19.
Senior Independent Director ("SID")
The SID is a non-executive Director who can be contacted by investors to discuss a matter of governance when it concerns the Chairman and the normal practice cannot be followed. The Company's SID is currently Caroline Kemsley-Pein.
Smallcap
"Small cap" refers to quoted smaller market capitalisation companies, which typically have little or no weighting in mainstream indices.
SONIA (Interest Rate)
Sterling Overnight Index Average
Total Annual Dividends Declared by the Company
In reference to the graph on total annual dividends declared by the Company on page 8, the figure of 2.02p for 2012 represents 2.19p, which was the total of the four interim dividends to 31 May 2012, recalculated proportionally as if the initial period had been 12 months.
In order to allow shareholders to vote on the dividend, a final dividend was introduced in the year ended 31 May 2015, resulting in the payment of five dividends for that year. Since then, the Company has paid three interim dividends and a final dividend in respect of each year.
Total Assets
Total assets include investments, cash, current assets and all other assets. An asset is an economic resource, being anything tangible or intangible that can be owned or controlled to produce value and to produce positive economic value. Assets represent the value of ownership that can be converted into cash. The total assets less all liabilities will be equivalent to total shareholders' funds.
Total Return – NAV and Share Price Returns*
Glossary continued
Total return statistics enable the investor to make performance comparisons between investment trusts with different dividend policies. The total return measures the combined effect of any dividends paid, together with the rise or fall in the share price or NAV. This is calculated by the movement in the share price or NAV plus dividend income reinvested by the Company at the prevailing NAV.
| Adjusted NAV Total Return | Page | 30 November 2024 |
31 May 2024 |
|
|---|---|---|---|---|
| Closing Adjusted NAV per share (p) |
24 | 100.25 | 97.84 | |
| Add back total dividends paid per share in the period/year (p) |
23 | 2.25 | 4.15 | |
| Closing Adjusted NAV (p) | 6 | 102.50 | 101.99 | (a) |
| Opening NAV per share (p) | 6 | 97.84 | 88.87 | (b) |
| NAV total return unadjusted c = (((a – b)÷b) x 100) |
4.76 | 14.76 | (c) | |
| Adjusted total return %** | 4.85 | 15.40 | ||
| NAV total return %*** | N/A | 16.50 | ||
| Share Price Total Return | Page | 30 November 2024 |
31 May 2024 |
|
| Closing share price (p) | 23 | 91.80 | 89.40 | |
| Add back total dividends paid per share in the period/year (p) |
6 | 2.25 | 4.15 | |
| Adjusted closing share price (p) |
6 | 94.05 | 93.55 | (a) |
| Opening share price (p) | 6 | 89.40 | 83.40 | (b) |
| Share price total return unadjusted c = (((a – b)÷b) x 100) |
5.20 | 12.17 | (c) | |
| Share price total return adjusted %*** |
5.29 | 12.71 |
Volatility
The term volatility describes how much and how quickly the share price or net asset value of an investment has tended to change in the past. Those investments with the greatest movement in their share prices are known as having high volatility, whereas those with a narrow range of change are known as having low volatility.
Yield Stock
Yield stocks pay above-average dividends to shareholders. If the dividend grows, and the yield on the share remains constant, the share price will increase. Companies which grow their dividends faster than average are capable of delivering faster share price growth.
* Alternative performance measure.
** Based on NAV/share price movements and dividends being reinvested at the relevant cum dividend NAV/share price during the year. Where the dividend is invested and the NAV/share price falls, this will further reduce the return or, if it rises, any increase will be greater. The source is Morningstar who have calculated the return on an industry comparative basis.
*** The 31 May 2024 NAV total return of 16.5% is derived from the Adjusted NAV total return of 15.4% from Morningstar plus 1.1%, being the incremental return from the difference between the Net asset value or 98.87p and the Adjusted NAV of 97.84p (see 31 May 2024 annual report Glossary on page 96 and 97 regarding NAV and Adjusted NAV for more details)..
Notes
Notes
Source: Company
Eastgate Court High Street Guildford Surrey GU1 3DE