Blackrock Throgmorton Investment Trust PLC

BlackRock Throgmorton Trust PLC BlackRock Throgmorton Trust plc Annual Report and Financial Statements 30 November 2024 Keeping in touch We know how important it is to receive up-to-date information about the Company. To ensure that you are kept abreast, please scan the QR code to the right of this page to visit our website. If you have a smartphone, you can activate the QR code by opening the camera on your device and pointing it at the QR code. This will then open a link on the relevant section on the Company’s website. By visiting our website, you will have the opportunity to sign up to our monthly newsletter which includes our latest factsheets and market commentary, as well as upcoming events and webinars. Information about how we process personal data is contained in our privacy policy available on our website. Further information about the Company can be found on our website at www.blackrock.com/uk/thrg . 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Section 1: Overview 1 The above financial highlights are at 30 November 2024 and percentage comparisons are against 30 November 2023. ¹ Alternative Performance Measures, see Glossary on pages 134 to 138. ² Mid-market share price, NAV performance and Benchmark Index are calculated in Sterling terms with dividends reinvested. The Benchmark Index is the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. ³ Calculated on NAV performance versus the Benchmark Index performance, both with dividends reinvested. Construction group Morgan Sindall was one of the portfolio’s standout performers. The ‘ﬁt out’ division won several large contracts during the year, resulting in upgrades. In addition to its high-proﬁle BBC Cardiff headquarters project (front cover and main photo opposite), recent commissions have included GSK and Capital Group (right-hand photos opposite). PHOTOS COURTESY OF MORGAN SINDALL, GSK, CAPITAL GROUP. Key highlights NAV total return +16.3 % Total Net Assets £595.9m Share price discount/ premium to NAV -13.2 % 2023: -3.6 % Total dividend per share 18.00 p + 22.0 % Revenue earnings per share 18.54p +12.0 % Share price total return +5.0 % Share price at year end: 593.00p Benchmark total return +14.1 % for the year ended 30 November 2024 2 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Investment objective The Company’s objective is to provide shareholders with long-term capital growth and an attractive total return through investment primarily in UK smaller and mid-capitalisation companies traded on the London Stock Exchange. Why BlackRock Throgmorton Trust plc? Additional exposure through leverage The Company can be leveraged up to 30% of net assets, which it does through the use of CFDs and total return swaps (instead of through conventional bank borrowings). This enables it to increase or reduce market exposure flexibly and at more competitive margins. 1 Source: Datastream. For the period 1955 to 2023, Numis Smaller Companies Index plus AIM (excluding Investment Companies) Total Return Index (previously known as Hoare Govett). Barclays Equity Total Return (December 1955 to December 2006), representative of smaller company performance. FTSE All-Share Total Return (January 2008 to May 2022), representative of larger company performance. 2 Since BlackRock was appointed as Manager on 1 July 2008. 3 Dan Whitestone began managing the CFD portfolio in March 2015. He co-managed the portfolio alongside Mike Prentis from March 2015 and took over as sole portfolio manager in February 2018. The Company’s annualised outperformance from 31 March 2015 is 4.7% and since 28 February 2018 is 2.7%. Diverse investment universe The Company is able to invest without restriction in AIM listed companies, has the ability to invest 15% of gross assets in companies listed overseas and 2.5% of net assets in unquoted companies. This further expands our investment universe and provides differentiation from other trusts in the market. Ability to short The Company has the ability to short stocks that we find unattractive (up to 30% of net asset value) enabling it to profit if their share prices fall. This provides an additional mechanism for generating returns that is not available to traditional long-only equity investment trusts. Active management Smaller and mid-capitalisation companies have greater potential for growth. They operate in a less efficient and under-researched area of the market, all of which provides attractive investment opportunities for active managers. Proven track record: strategy and manager A proven strategy with a long-term track record of over 5.0% annualised outperformance over our Benchmark Index since BlackRock took over the management contract. 2 A highly regarded portfolio manager who has generated annualised outperformance of 4.7% since he began managing the portfolio. 3 Long term outperforming asset class The Company offers investors exposure to primarily UK smaller and mid- capitalisation companies, an asset class that has historically outperformed larger companies by 3.3% 1 per annum. The Company aims to achieve long-term capital growth along with an attractive total return for shareholders. It is a high-conviction portfolio focusing on UK’s most exciting and differentiated emerging companies. An unusual feature of the Company is its ability to “short” unattractive companies, providing flexibility and potential for profit. It can also invest up to 15% internationally, broadening the potential opportunities. Our Manager applies a clear and proven investment philosophy and process and has a strong long-term track record of investing in UK Small and mid-cap companies. BlackRock Throgmorton Trust seeks to exploit the differences between the winners and losers in an investment universe where outcomes are highly differentiated. Determining the true earnings power of a company and identifying emerging structural changes within industries can be key. BlackRock’s Emerging Companies team has over 45 years’ experience of investing in the UK Small and Mid-cap equities. Collectively, the team meets over 700 companies a year and undertakes in-depth analysis to identify the best and brightest smaller companies in the UK. This coupled with BlackRock’s deep market insight and research capabilities means our Manager is well-placed to seek out the best and brightest UK smaller companies for our investors. Section 1: Overview 3 Why small and mid-cap companies? Our Manager believes the UK Small and Mid-cap market offers great opportunity for the patient investor. UK Smaller companies are currently trading at very low valuations vs both their own history and that of other asset classes, despite generally robust earnings and, in many cases, good long term growth prospects. As demonstrated by the chart below, smaller companies have significantly outperformed their larger counterparts over time. Our Manager believes there is currently a mispricing of our asset class, and that this presents a real opportunity for the medium to long term investor. Our investment universe consists of up to 1,400 companies, many of which are under researched versus the broader UK market and often overlooked. It is comprised of the bottom 10% of the main UK listed market by value and is home to a vast array of dynamic and exciting companies with the potential to deliver growth for investors. This is often achieved regardless of the market cycle which can also provide portfolio diversification. It’s also a very diverse asset class with a range of outcomes and broad dispersion of returns. This presents a fertile hunting ground for the skilled active manager. £0 £200 £400 £60 0 £800 £1,000 £1,200 Value of £100 invested on 31 December 1955 (as at 30 November 2024) The ﬁgures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Index performance returns do not reﬂect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Smaller company investments are often associated with greater investment risk than those of larger company shares. Large Cap performance represented by Barclays UK Equity Large Cap Index until December 2010. In January 2011, Barclays began to use FTSE All-Share to track the performance of UK large cap companies. Source: Datastream, UK Equity Large Cap Total Return Index and Deutsche Numis Smaller Companies Index + AIM ex. Investment Trusts Total Return Index as at 30 November 2024. Deutsche Numis Smaller Companies Index +AIM ex. IT’s UK Equity Large Cap Index £1,006,752 £130,700 Nov-56 Nov-58 Nov-60 Nov-62 Nov-64 Nov-66 Nov-68 Nov-70 Nov-72 Nov-82 Nov-92 Nov-02 Nov-12 Nov-74 Nov-84 Nov-94 Nov-04 Nov-14 Nov-76 Nov-86 Nov-96 Nov-06 Nov-16 Nov-78 Nov-88 Nov-98 Nov-08 Nov-18 Nov-80 Nov-90 Nov-00 Nov-10 Nov-20 Nov-22 Nov-24 Thousands 4 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Section 1: Overview Key highlights 1 Why BlackRock Throgmorton Trust plc? 2 Performance record 5 Ten year record 6 Section 2: Strategic report Chairman’s statement 10 Investment Manager’s report 16 Portfolio of investments 23 Fair value and gross market exposure of investments 28 Distribution of investments 29 Business review 32 Section 172 statement 41 Environmental, Social and Governance 47 BlackRock Approach to Investment Stewardship 48 Section 3: Governance Governance structure 52 Corporate governance statement 5 6 Directors’ report 63 Report of the remuneration committee 72 Directors’ remuneration policy 76 Report of the Audit Committee 78 Statement of Directors’ responsibilities in respect of the Annual Report and Financial Statements 83 Section 4: Financial Statements Independent Auditor’s Report 88 Statement of Comprehensive Income 94 Statement of Changes in Equity 95 Statement of Financial Position 96 Cash Flow Statement 97 Notes to the Financial Statements 98 Section 5: Additional information Shareholder information 126 Analysis of ordinary shareholders 130 Ten year record 131 Management and other service providers 132 Information to be disclosed in accordance with Listing Rule 9.8.4 133 Glossary 134 Section 6: Annual general meeting Notice of annual general meeting 142 Share fraud warning 146 Contents Financial highlights Portfolio Investment Manager’s report Chairman’s statement Financial statements Section 1: Overview 1 The above financial highlights are at 30 November 2024 and percentage comparisons are against 30 November 2023. ¹ Alternative Performance Measures, see Glossary on pages 134 to 138. ² Mid-market share price, NAV performance and Benchmark Index are calculated in Sterling terms with dividends reinvested. The Benchmark Index is the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. ³ Calculated on NAV performance versus the Benchmark Index performance, both with dividends reinvested. Construction group Morgan Sindall was one of the portfolio’s standout performers. The ‘ﬁt out’ division won several large contracts during the year, resulting in upgrades. In addition to its high-proﬁle BBC Cardiff headquarters project (front cover and main photo opposite), recent commissions have included GSK and Capital Group (right-hand photos opposite). Key highlights NAV total return +16.3 % Total Net Assets £595.9m Share price discount/ premium to NAV -13.2 % 2023: -3.6 % Total dividend per share 18.00 p + 22.0 % Revenue earnings per share 18.54p +12.0 % Share price total return +5.0 % Share price at year end: 593.00p Benchmark total return +14.1 % for the year ended 30 November 2024 22 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 10 7 4 1 9 6 3 8 5 2 16 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Investment Manager’s report For the 12 months ended 30 November 2024 Market review and investment performance The Company delivered a positive return of 16.3% net of fees over the 2024 financial year, outperforming the benchmark by +2.2%. Performance in absolute and relative terms was weighted towards the first half of the year. The Company delivered a return (net of fees) of +19.2%, outperforming the Benchmark Index by +2.4% in the first half of the year and in the second half of the year returned -2.4% versus the Benchmark return of -2.3%. This reflected the disappointing end to the year in response to Labour’s drumbeat of negativity in the lead up to the budget and then of course the budget itself. What a difference a year can make; after a protracted period of subdued returns from the UK small & mid cap market which started in 2022, it really felt like things were turning up during the first half of this year. We started the second half with real optimism, with low inflation, strong employment, and economic growth, and improving business and consumer confidence. What a backdrop for Labour to build on with their “pro-growth” mandate! Unfortunately, defeat was soon snatched from the jaws of victory and the year finished on a very weak note. The Company’s outperformance during the first half of the year can be attributed to a number of strong stock specifics across a broad range of companies such as IntegraFin, Gamma Communications and Morgan Sindall (see table overleaf for the top 10 contributors and detractors to performance during the year). 2024 has been one of the most difficult years to navigate in the 10 years I have managed the Company’s portfolio. Outflows in the asset class have continued, pressuring share prices and valuations of thinly traded shares, where valuation alone was an insufficient catalyst for a reversal of performance, despite in many cases far more robust trading than their valuations would suggest. Meanwhile, mergers and acquisitions (“M&A”) in UK small and medium sized companies continues at pace as private e quity and i nternational companies take advantage of weaker GBP and depressed valuations. This is only good news if you own the shares (though then there is a debate about whether one is selling out on the cheap and forgoing future capital growth for a cash bid today), but for Throgmorton in 2024 the M&A activity cost around 300 basis points (“bps”) of relative performance in the year (i.e. companies being acquired in the benchmark that Throgmorton didn’t own), a material headwind to relative performance. I expect 2025 to be another year of elevated M&A activity, so only time will tell if that is a tailwind or headwind to relative and absolute performance this year. Positive contributors to performance in the second half of the year were well spread across sectors. Our largest position, aggregates business Breedon , delivered resilient results despite adverse weather and subdued market conditions. Breedon continues to be impacted by negative volumes but has continued to make headway with pricing increases and cost efficiencies to grow profitability while it waits for a volume recovery in the market. Morgan Sindall’s “fit out“ division, another large holding within the portfolio, won several large contracts during the year, resulting in upgrades. Morgan Sindall is the number one player in the market and post the recent demise (bankruptcy) of the number 2 player, this favourable evolution of market structure should lead to improved returns and further market share gains from here. Shares in tour operator Jet2 rose after the company upgraded guidance having seen record passengers during the first half of its financial year. Demand increased for both package holidays and flight only options as consumers prioritise d overseas vacations despite a more challenging economic backdrop. Industry capacity remains constrained, whilst Jet2’s stronger balance sheet and fleet additions leave them well placed to grow market share and support pricing/mix in margin accretive holiday packages. In the technology sector a notable contributor during the period included Baltic Classifieds which experienced strong growth in its market leading Real Dan Whitestone Investment Manager 10 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 2024 in brief • The year to 30 November 2024 was a very challenging and unusual year. In particular: – With little demand for UK equities, UK small/mid-cap valuations started the year weak – Wealth Manager consolidation and exposure limits led to selling (of both the Company and likely other UK small/ mid cap funds) throughout the year – Capital Gains Tax planning drove further selling ahead of the tax year end in April 2024 and the UK Budget in October 2024 – US elections and the UK budget led some investors, in particular UK wealth managers, to allocate away from the UK and further reduce their UK small/mid-cap investments • The Company’s portfolio has therefore been cautiously positioned by your portfolio manager • A positive NAV total return of +16.3%, an outperformance of 2.2% vs the Benchmark, is therefore a pleasing result for a cautiously positioned portfolio in challenging and unusual year • Your portfolio manager, Dan Whitestone, has outperformed the benchmark in 9 of the last 10 years. Indeed, since March 2015 when Dan Whitestone became portfolio manager, he has outperformed the benchmark by 78.7% (generating a total NAV return up to 30 November 2024 of +130.5% vs a benchmark return of +51.8%) • To keep the share price performance as close as possible to the NAV performance and keep the discount at a level compatible with the liquidity of the portfolio, significant buy backs were undertaken during the year representing 9.4% of our shares in FY2024 (FY2023: 5.3%; since buybacks started in April 2022: 16.3%). A further 6.6% has been bought back since the year end (up to the latest available date of 14 February 2025) • Despite these extensive buy backs, the Company delivered a disappointing FY2024 share price total return of +5.0%, underperforming the Benchmark by 9.1% and some 11.3% below the NAV performance, as the: – discount widened at year end to -13.2% (30 November 2023 : -3.6%) – average FY2024 discount was up at - 9.3 % (FY2023: -5.25%) • Average FY2024 discount of -9.3% vs a UK Smaller Companies sector average of -11.1% • Longer-term NAV and Share Price performance however remains good – Strong over 10 years; our NAV has outperformed the Benchmark by 88.8% and the share price by 101.6% – Although weaker over 3 and 5 years as the impact of the Ukraine invasion on our asset class and our underperformance versus our benchmark in 2022 works through • Dividends again increased consistent with Board’s desire for a progressive dividend. Total dividend of 18.00p per share for FY2024 declared (30 November 2023: 14.75p) • The Board remains confident in the Manager, the portfolio manager and his investment philosophy and process, and the rest of the BlackRock Emerging Companies investment team. The Board therefore believes that when confidence in the UK returns and demand for UK small/mid-cap funds and equities improves, BlackRock Throgmorton is well positioned to return to its position as a sector leader Christopher Samuel Chairman Chairman’s statement Strategic report The Directors present the Strategic Report of the Company for the year ended 30 November 2024. * Dan Whitestone was co-manager of the portfolio until February 2018 after which he became sole portfolio manager. Page 1 Page 10 Page 16 Page 22 Page 87 Section 1: Overview 5 Performance record As at 30 November 2024 As at 30 November 2023 Net assets (£’000) 1 595,908 575,925 Net asset value per ordinary share (pence) 682.82 600.72 Ordinary share price (mid-market) (pence) 593.00 579.00 Benchmark Index 2 16,794.26 14,713.60 Discount to cum income net asset value 3 (13.2)% (3.6)% For the year ended 30 November 2024 For the year ended 30 November 2023 Performance (with dividends reinvested) Net asset value per share 3 16.3% (2.3)% Ordinary share price 3 5.0% (0.8)% Benchmark Index 2 14.1% (6.0)% Average discount to cum income net asset value for the year 3 (9.3)% (5.2)% Performance for the ten years to 30 November 2024 Performance for the ten years to 30 November 2023 Performance since 1 July 20 14 4 (with dividends reinvested) Net asset value per share 3 150.9% 113.5% Ordinary share price 3 163.7 % 136.9 % Benchmark Index 2 62.1 % 41.1% For the year ended 30 November 2024 For the year ended 30 November 2023 Change % Revenue Net revenue profit on ordinary activities after taxation (£’000) 17,046 16,510 +3.3 Revenue earnings per ordinary share (pence) 5 18.54 16.56 +12.0 Dividends per ordinary share (pence) Interim 3.75 3.30 +13.6 Final 14.25 11.45 +24.5 Total dividends payable/paid 18.00 14.75 +22.0 -45 -30 -15 0 15 30 45 Benchmark Index 2 Ordinary share price (mid-market) NAV per share Annual performance ﬁgures to 30 November change %, calculated in Sterling terms with dividends reinvested. Sources: BlackRock and LSEG Datastream. 11.9 23.2 27.7 6.3 7.3 21.3 33.9 43.8 (2.1) (9.0) (17.5) (31.1) (35.5) (6.0) (2.3) (0.8) (2.7) 1.8 8.0 3.8 9.1 8.2 24.5 37.0 38.8 24.4 42.8 2015 % 2016 2017 2018 2019 2020 2021 2022 2023 2024 14.1 16.3 5.0 Annual performance for the ten years to 30 November 2024 1 The change in net assets reflects portfolio movements, share buybacks and dividends paid during the year. 2 The Company’s Benchmark Index is the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. With effect from 22 March 2018, the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index replaced the Deutsche Numis Smaller Companies excluding AIM (excluding Investment Companies) Index as the Company’s Benchmark Index. From 1 December 2013 to 21 March 2018, the Company’s Benchmark Index was the Deutsche Numis Smaller Companies excluding AIM (excluding Investment Companies) Index. Prior to 1 December 2013, the Company’s Benchmark Index was the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. The performance of the Benchmark Indices during these periods has been blended to reflect these changes. 3 Alternative Performance Measures, see Glossary on pages 134 to 138. 4 Since BlackRock’s appointment as Investment Manager on 1 July 2008. 5 Further details are given in the Glossary on page 137. 6 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 1 Mid-market price. 2 Alternative Performance Measures, see Glossary on pages 134 to 138. 626.1 600.7 682.8 391.6 412.3 542.7 519.1 634.1 681.2 921.9 NAV per share (p) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Ordinary share price per share¹ (p) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 579.0 593.0 339.5 325.0 457.5 457.0 640.0 682.0 935.0 595.0 (3.6) (5.0) (13.2) (13.3) (21.2) (15.7) (12.0) 0.9 1.4 0.1 Share price (discount)/premium to NAV² (%) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 5.7% Compound annual growth rate over the ten year period Dividends per share (p) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 11.10 14.75 18.00 +16.3 6.70 7.50 9.00 10.00 10.20 -2.3 +23.2 +7.3 +33.9 +37.0 -2.7 -31.1 +24.4 +9.1 Change in NAV per share (with dividends reinvested)² (%) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 10.4% Compound annual growth rate over the ten year period 5.7% Compound annual growth rate over the ten year period 10.20 10.50 Ten year record 6 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Section 2: Strategic report 9 Strategic report Long-term growth in US domestic infrastructure should beneﬁt UK specialists with international earnings such as industrial ﬂow equipment manufacturer Rotork. The company’s three divisions – oil & gas, water & power and chemical, process & industrial – provide solutions for managing the ﬂow of liquids, gases and powders to customers in 170 countries. PHOTO COURTESY OF RAMON DE PIN/PEXELS 10 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 2024 in brief • The year to 30 November 2024 (FY2024) was a very challenging and unusual year. In particular: – With little demand for UK equities, UK small/mid-cap valuations started the year weak – Wealth Manager consolidation and exposure limits led to selling (of both the Company and likely other UK small/ mid cap funds) throughout the year – Capital Gains Tax planning drove further selling ahead of the tax year end in April 2024 and the UK Budget in October 2024 – US elections and the UK budget led some investors, in particular UK wealth managers, to allocate away from the UK and further reduce their UK small/mid-cap investments • The Company’s portfolio has therefore been cautiously positioned by your portfolio manager • A positive NAV total return of +16.3%, an outperformance of 2.2% vs the Benchmark, is therefore a pleasing result for a cautiously positioned portfolio in challenging and unusual year • Your portfolio manager, Dan Whitestone, has outperformed the benchmark in 9 of the last 10 years. Indeed, since March 2015 when Dan Whitestone became portfolio manager, he has outperformed the benchmark by 78.7% (generating a total NAV return up to 30 November 2024 of +130.5% vs a benchmark return of +51.8%) • To keep the share price performance as close as possible to the NAV performance and keep the discount at a level compatible with the liquidity of the portfolio, significant buy backs were undertaken during the year representing 9.4% of our shares in FY2024 (FY2023: 5.3%; since buybacks started in April 2022: 16.3%). A further 6.6% has been bought back since the year end (up to the latest available date of 18 February 2025) • Despite these extensive buy backs, the Company delivered a disappointing FY2024 share price total return of +5.0%, underperforming the Benchmark by 9.1% and some 11.3% below the NAV performance, as the: – discount widened at year end to -13.2% (30 November 2023 : -3.6%) – average FY2024 discount was up at - 9.3 % (FY2023: -5.25%) • Average FY2024 discount of -9.3% vs a UK Smaller Companies sector average of -11.1% • Longer-term NAV and Share Price performance however remains good – Strong over 10 years; our NAV has outperformed the Benchmark by 88.8% and the share price by 101.6% – Although weaker over 3 and 5 years as the impact of the Ukraine invasion on our asset class and our underperformance versus our benchmark in 2022 works through • Dividends increased by +22%. Total dividends of 18.00p per share for FY2024 (FY2023: 14.75p) • The Board remains confident in the Manager, the portfolio manager and his investment philosophy and process, and the rest of the BlackRock Emerging Companies investment team. The Board therefore believes that when confidence in the UK returns and demand for UK small/mid-cap funds and equities improves, BlackRock Throgmorton is well positioned to return to its position as a sector leader Christopher Samuel Chairman Chairman’s statement Strategic report The Directors present the Strategic Report of the Company for the year ended 30 November 2024. * Dan Whitestone was co-manager of the portfolio until February 2018 after which he became sole portfolio manager. Section 2: Strategic report 11 Overview The year to November 2024 was a challenging one for UK markets. The few green shoots of recovery seen in the early part of the year wilted as what optimism there had been around the economic plans of the new UK government faded. Growth expectations, consumer confidence and business confidence have all since taken a nasty hit. Given the extent to which your C ompany’s holdings are exposed to the domestic economy and against this difficult backdrop, I am pleased to report that the Company’s NAV generated a positive return of 16.3%, outperforming its benchmark by +2.2%. One feature of the period under review has been continued merger and acquisition (M&A) activity in the UK. As our portfolio manager, Dan Whitestone, explains in his report which follows, this can be beneficial if you own the companies that are bid for and a detractor from relative performance if you don’t. As it happens, M&A in the UK small and mid-cap space has been a material headwind to our relative performance this year. He expects more of this activity to continue in 2025 given the compelling long - term value on offer in the UK market. This may act as either a tailwind or headwind depending upon which companies are acquired and whether or not we hold them in our portfolio. Overall, he remains optimistic that he can find long- term opportunities across the market and that he can use your Company’s ability to short companies to provide some extra returns in the less compelling areas of the market. In these tricky times we are pleased to have a manager able to generate alpha from falling valuations as well as rising ones. As a Board we remain confident in both the outlook for our portfolio and the opportunities currently available in our asset class , and are resolutely focused on achieving the Company’s objectives of providing shareholders with long-term capital growth and an attractive total return through investment in primarily UK smaller and mid-capitalisation companies. Performance Over the year to 30 November 2024, the Company’s Net Asset Value (NAV) total return was +16.3% compared to a return of +14.1% from the Company’s Benchmark Index, an outperformance of +2.2%. The Company’s share price returned +5.0%, underperforming the Benchmark Index by 9.1% as our discount widened during the period. Since the period end and up to the close of business on 1 4 February 2025, the Company’s NAV has fallen by 3.2%, and the Benchmark Index has fallen by 0.5% (all figures with dividends reinvested). Over the short and medium term the Company’s discount to NAV has widened, in large part as result of the fact that UK equities now have been out of favour for several years. Over the longer term the performance remains strong. For the five and ten-year periods to 30 November 2024, the Company’s NAV returned +17.1% and +150.9%, comparing favourably to the Benchmark Index returns of +14.5% and +62.1%. The share price has returned double the benchmark over the ten years to 30 November 2024. -60 -40 -20 0 20 40 60 80 100 120 140 160 180 1 Year change % Performance record to 30 November 2024 (with dividends reinvested) NAV per share Share price Benchmark Index 3 Year change % 5 Year change % % 0.9 -32.8 5.0 17.1 -21.7 16.3 14.5 -11.5 14.1 150.9 62.1 163.7 10 Year change % 12 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Further information on the Company’s performance, the factors that contributed to performance during the period and the outlook for the second half of the financial year are set out in the Investment Manager’s Report on page 16. Performance fee The performance fee is calculated over a two-year rolling period. For the annualised rolling two-year performance period to 30 November 2024, the Company has outperformed the benchmark by 2.7% as at 30 November 2024 (gross of fees). A performance fee of £2,982,000 relating to this performance period has therefore crystallised as at the date of this report (of which £1,389,000 had been accrued in the prior year). For the annualised rolling two-year performance period to 30 November 2025, the Company has outperformed the benchmark by 0.6% as at 30 November 2024. A performance fee of £625,000 relating to this performance period has been accrued at the date of this report; this does not become payable until 30 November 2025 and is subject to the ongoing performance of the Company. Further information on management fees can be found on pages 63 and 64 and in Note 4 to the financial statements on pages 102 and 103. Revenue return and dividends The revenue return per share for the period amounted to 18.54 pence per share, an increase of 12%. The Directors are pleased to declare a proposed final dividend of 14.25 pence per share for the year ended 30 November 2024 (2023: 11.45p). This, together with the interim dividend of 3.75 pence per share paid on 27 August 2024, gives a total dividend for the year of 18.00 pence per share, increasing the total dividend distributed to shareholders compared to the prior financial year by 22.0%. This dividend will be paid on 11 April 2025, subject to shareholder approval at the forthcoming AGM, to shareholders who are on the Company’s register on 28 February 2025. Policy on share price premium/discount The Board believes that the best way of addressing any long term discount to NAV over the longer term is both to generate good performance and to drive demand for the Company’s shares by widening the awareness of the Company’s attractions. However, the Board also has a policy of buying back shares in the Company when the discount is excessive, something we consider in re lation to market conditions, performance and the ongoing attractiveness of the investment proposition. We were disappointed that during the twelve months to 30 November 2024 the Company’s share rating ranged between a discount to NAV of -3.6% and -13.7%, and ended the period at a discount of -13.2% (30 November 2023: -3.6%). This compares with the weighted average discount of the UK smaller companies sector which ended the period at an average discount of -11.1% and given that the Board aims to minimise share price volatility and encourage the Company’s share price to trade within a tight range , we have felt the need to take regular and targeted action to support the shares. It is, of course, not possible to have full control over the discount during a period in which there is little demand for both investment trust shares and smaller company shares in the UK and when the UK government, to date, has yet to convince the markets that its policies will generate the growth it seeks. Nonetheless, we remain convinced that our share buy back activity has been beneficial in reducing the volatility of our share rating and delivering NAV accretion. Your Board will continue to deploy its powers to support the share price by buying back the Company’s shares where it believes that it is in shareholders’ best interests to do so. Share buy back activity During the period under review, the Company bought back a total of 8,600,297 ordinary shares for a total consideration of £52,098,000. Since 30 November 2024 and up to the latest practicable date of 18 February 2025, a further 5,850,000 shares have been bought back for a total consideration of £34,228,000. As at 18 February 2025, the Company’s shares were trading at a discount of 10.6% versus an average discount for the rest of the peer group of 11. 9 %. All shares were bought back at a discount to the prevailing NAV and were therefore accretive to existing shareholders. Chairman’s statement continued Section 2: Strategic report 13 Renewal of buy back authority At the Company’s annual general meeting in March 2024, the Directors were given authority to make market purchases of up to 14,276,699 Ordinary Shares, representing 14.99 per cent. of the issued Ordinary Share capital (excluding treasury shares). The Board concluded that this authority could be fully utilised before the Company’s next annual general meeting and accordingly resolved to convene a General Meeting of the Company to renew the expiring authority. A Circular and Notice of Meeting was issued to shareholders on 31 January 2025 and the General Meeting was held on 17 February at which the resolution to grant a renewal of existing authority was duly passed. As it does each year, the Board will also be seeking to renew the authority from shareholders once again at the AGM to issue new shares (or to reissue shares held in treasury) and to buy back shares. The Board believes this action is in shareholders’ best interests. Further information can be found in the Directors’ Report on page 68. Cancellation of the share premium T he share premium account is a non-distributable reserve and the Company is therefore unable to use it , amongst other things, for making distributions to shareholders or the purchase by the Company and cancellation of its own shares. As at 30 November 2024, the Company had distributable reserves of approximately £336,721,000; the amount standing to the credit of the Company’s share premium account as of 18 February 2025 is £242,122,000. Accordingly, the Company is seeking shareholder approval at the AGM to cancel the Company’s share premium account. If approved by shareholders and subsequently by the Court , this will re sult in an increase of the Company’s distributable reserves and so a greater ability to pay dividends and buy back shares. Please refer to the Directors’ Report on pages 63 to 71 for further detail. Investment Guidelines Given the Company’s small and mid-cap investment mandate, the Board has long had in place internal guidelines preventing investment in FTSE 100 securities but permitting the manager to continue to hold a portfolio company that has moved into the FTSE 100, for a period of up to 12 months after its promotion. Following a review by Winterflood Securities and consultation with major shareholders, the Board has, while retaining the restriction on investing in FTSE 100 securities, removed the 12-month divestment requirement for portfolio companies promoted in to the FTSE 100, as long as such holdings do not exceed 5% of the Company’s gross assets. Corporate governance After nearly nine years on the Board and nearly eight as Chairman, I will not be seeking re-election at the Company’s AGM on 25 March 2025 and so will be stepping down from the Board with effect from the close of the meeting. It has been a privilege to chair the Company over nearly eight years and I would like to thank shareholders, Board colleagues over the year s and all at BlackRock for their help and support durin g my tenure as Chairman. As a result of my forthcoming retirement, t he Board undertook a search process under the leadership of the C ompany’s Senior Independent Director, Louise Nash, to identify a new Director and my successor. I am therefore delighted to welcome Mr James Will to the Board with effect from 1 January 2025; James w ill be appointed Chairman following the AGM. He also serves as a member of the Company’s Audit, Nomination and Management Engagement Committees. James is an experienced Chair and non-executive director as well as a well-regarded former lawyer with an extensive knowledge of the investment company sector. Further details of James’s background can be found on page 53. Mr Glen Suarez retired from the Board on 9 August 2024 after he advised the Board that, due to the increasing demands of his other business commitments, he was no longer able to give his role on the Board the time it merited. I would like to thank Glen for his contribution to the Board during his tenure. We wish him well for the future. “It is important to view the Company’s share rating in the wider market context, noting that the investment trust sector average discount at 30 November 2024 had widened to 15.5% compared to 12.8% at the end of 2023 and 10.7% at the end of 2022.” 14 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 The Company is compliant with the recommendations of the FTSE Women Leaders Review (which states that boards should be at least 40% female and have at least one woman in the role of Chair or Senior Independent Director on the board). However, following Glen ’s retirement the Company no longer meets the ethnic diversity recommendations of the Parker Review. Since Glen’s departure occurred during the search for my successor, the Board decided to complete the appointment of my successor before starting a search for Glen’s replacement so the new Chairman could run this process. As a result, the process to ensure the Board meets the recommendations of the Parker Review will start shortly. Further information on the Board’s policy on board diversity, director tenure and succession planning can be found in the Directors’ Report starting on page 63. We have also disclosed data on the breakdown of the Board by gender and ethnicity which can be found on page 57. The Board has also reported to shareholders on our compliance with the UK Code of Corporate Governance and other matters of good governance on page 52. As it does each year and as required by the Corporate Governance Code, the Company, with the assistance of an independent third-party evaluator, undertook a comprehensive Board evaluation. The conclusion was positive in terms of the effectiveness of the Board and the skills, expertise and commitment of the individual Directors; the Board remains confident that each Director is discharging their role and that the Board and its committees are functioning effectively. Annual General Meeting The Company’s Annual General Meeting (AGM) will be held in person on 25 March 2025 at 12.00 p.m. at the offices of BlackRock at 12 Throgmorton Avenue, London, EC2N 2DL. Details of the business of the meeting are set out in the Notice of Annual General Meeting on pages 142 to 145 of this Annual Report. Prior to the formal business of the meeting, our Investment Manager will make a presentation to shareholders. This will be followed by a question and answer session and then lunch and the opportunity to speak with the directors and with our portfolio manager. Shareholders who are unable to attend the meeting in person but who wish to follow the proceedings, can do so via a live webinar. Details on how to register will be available shortly on the Company’s website at www.blackrock.com/uk/thrg or from the Company Secretary at [email protected]. While it is not possible to speak or vote via this medium, I trust shareholders will once again find this facility helpful. All shareholders, in particular those who are unable to attend, are encouraged to exercise their right to vote. Details of how to do this are included on page 127. Further information on the business of this year’s AGM can be found in the Notice of the AGM on pages 142 to 145. Shareholder communication As we do each year, our Senior Independent Director and I met with several of our largest shareholders to answer any questions they had and seek feedback. As a Board, we would also very much like to hear the views of all shareholders so if you have questions or feedback, please write to me or my successor, James Will, at our registered offices (please see page 132) or by email at: [email protected] . If you are happy with our activities, we’d like to know; if you are not, we would also like to know! Can I once again encourage all shareholders to sign up to the BlackRock Trust Matters newsletter for news, views and insights on your company and the investment trust market. See the inside cover for details on how to do this. Outlook As you will read in our portfolio manager’s report on page 16, the economic environment is a little dispiriting. However, using all the tools at his disposal to manage the portfolio, he has reduced exposure to those areas of the domestic market which he believes may suffer most as a result of the Budget measures and add ed short positions to those sectors and holdings which he believes will be disproportionately impacted. The portfolio manager also notes that there are some reasons to be positive. It may have its detractors, but the UK offers a huge universe of high-quality undervalued companies with compelling growth prospects, all of which he is able to invest in on your behalf. Chairman’s statement continued Section 2: Strategic report 15 The Board remains confident in the Manager, the portfolio manager and his investment philosophy and process, and the rest of the BlackRock Emerging Companies investment team. Moreover the Board believes that when confidence in the UK returns and demand for UK small/mid-cap funds and equities improves, BlackRock Throgmorton Trust plc is well positioned to return to its position as a sector leader. The Board looks forward to the future of the Company with confidence. CHRISTOPHER SAMUEL Chairman 19 February 2025 16 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Investment Manager’s report For the 12 months ended 30 November 2024 Market review and investment performance The Company delivered a positive return of 16.3% net of fees over the 2024 financial year, outperforming the benchmark by +2.2%. Performance in absolute and relative terms was weighted towards the first half of the year. The Company delivered a return (net of fees) of +19.2%, outperforming the Benchmark Index by +2.4% in the first half of the year and in the second half of the year returned -2.4% versus the Benchmark return of -2.3%. This reflected the disappointing end to the year in response to Labour’s drumbeat of negativity in the lead up to the budget and then of course the budget itself. What a difference a year can make; after a protracted period of subdued returns from the UK small & mid cap market which started in 2022, it really felt like things were turning up during the first half of this year. We started the second half with real optimism, with low inflation, strong employment, and economic growth, and improving business and consumer confidence. What a backdrop for Labour to build on with their “pro-growth” mandate! Unfortunately, defeat was soon snatched from the jaws of victory and the year finished on a very weak note. The Company’s outperformance during the first half of the year can be attributed to a number of strong stock specifics across a broad range of companies such as IntegraFin, Gamma Communications and Morgan Sindall (see table overleaf for the top 10 contributors and detractors to performance during the year). 2024 has been one of the most difficult years to navigate in the 10 years I have managed the Company’s portfolio. Outflows in the asset class have continued, pressuring share prices and valuations of thinly traded shares, where valuation alone was an insufficient catalyst for a reversal of performance, despite in many cases far more robust trading than their valuations would suggest. Meanwhile, mergers and acquisitions (“M&A”) in UK small and medium sized companies continues at pace as private e quity and i nternational companies take advantage of weaker GBP and depressed valuations. This is only good news if you own the shares (though then there is a debate about whether one is selling out on the cheap and forgoing future capital growth for a cash bid today), but for Throgmorton in 2024 the M&A activity cost around 300 basis points (“bps”) of relative performance in the year (i.e. companies being acquired in the benchmark that Throgmorton didn’t own), a material headwind to relative performance. I expect 2025 to be another year of elevated M&A activity, so only time will tell if that is a tailwind or headwind to relative and absolute performance this year. Positive contributors to performance in the second half of the year were well spread across sectors. Our largest position, aggregates business Breedon , delivered resilient results despite adverse weather and subdued market conditions. Breedon continues to be impacted by negative volumes but has continued to make headway with pricing increases and cost efficiencies to grow profitability while it waits for a volume recovery in the market. Morgan Sindall’s “fit out“ division, another large holding within the portfolio, won several large contracts during the year, resulting in upgrades. Morgan Sindall is the number one player in the market and post the recent demise (bankruptcy) of the number 2 player, this favourable evolution of market structure should lead to improved returns and further market share gains from here. Shares in tour operator Jet2 rose after the company upgraded guidance having seen record passengers during the first half of its financial year. Demand increased for both package holidays and flight only options as consumers prioritise d overseas vacations despite a more challenging economic backdrop. Industry capacity remains constrained, whilst Jet2’s stronger balance sheet and fleet additions leave them well placed to grow market share and support pricing/mix in margin accretive holiday packages. In the technology sector a notable contributor during the period included Baltic Classifieds which experienced strong growth in its market leading Real Dan Whitestone Investment Manager Section 2: Strategic report 17 Estate, Autos and Jobs & Services divisions. Within the financial sector Tatton Asset Management and IntegraFin both saw positive inflows and benefitted from overall strength in financial markets. Detractors during the period were a combination of negative stock specifics (i.e. shares falling in response to negative trading developments), shares that fell despite a lack of negative news, and also shares we did not own in the benchmark that performed well, either through trading or by being acquired. As mentioned at the start, we estimate M&A has cost the Company in terms of relative performance in 2024. The largest detractor was Next 15 , a media company, which delivered a material profit warning in the period as a 5-year contract with a Middle Eastern client was cancelled after only 3 years, resulting in a significant hit to profits for the full year. We had already been reducing the position and subsequently fully exited by the end of the year given the large contribution of this one client and the broader slowdown in spending that Next 15 is experiencing from some of its technology clients. Shares in Zotefoams drifted lower during the period despite resilient trading. We ascribe the weakness to broader concerns around European industrials (especially those with Chinese exposure), in addition to weakness at its key customer, Nike, which accounts for around a quarter of group revenues. Other notable detractors included shares we didn’t own that performed well in the period, such as gaming software provider Playtech and media business Ascential (acquired by its peer Informer for a +50% premium). Largest contributors Stock Fund Weighting Benchmark Weighting Effect on Fund return INTEGRAFIN HOLDINGS PLC 2.29% 0.52% 0.71% GAMMA COMMUNICATIONS PLC 2.63% 0.65% 0.71% MORGAN SINDALL GROUP PLC 1.55% 0.60% 0.65% BALTIC CLASSIFIEDS GROUP PLC 1.76% 0.61% 0.56% SIGMAROC PLC 1.18% 0.22% 0.53% CLOSE BROTHERS GROUP PLC 0.00% 0.34% 0.52% BREEDON GROUP PLC 2.87% 0.63% 0.52% Short position -0.23% 0.67% 0.44% 4IMPRINT GROUP PLC 2.07% 0.75% 0.43% TATTON ASSET MANAGEMENT PLC 2.22% 0.18% 0.42% Baltic Classiﬁeds, the owner of fourteen online classiﬁed portals in Lithuania, Estonia and Latvia, has seen strong growth in its market leading Real Estate, Autos and Jobs & Services divisions. PHOTO COURTESY OF BALTIC CLASSIFIEDS 18 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Largest detractors Stock Fund Weighting Benchmark Weighting Effect on Fund return YOUGOV PLC 1.10% 0.43% -0.53% SIG PLC 1.14% 0.15% -0.52% WATCHES OF SWITZERLAND GROUP PLC 0.57% 0.41% -0.51% TT ELECTRONICS PLC 1.24% 0.12% -0.49% CVS GROUP PLC 1.02% 0.41% -0.46% INDIVIOR PLC 0.88% 0.69% -0.46% NEXT 15 GROUP PLC 0.97% 0.36% -0.44% PLAYTECH PLC 0.00% 0.79% -0.44% AJ BELL PLC 0.21% 0.74% -0.42% WH SMITH PLC 2.34% 0.00% -0.39% Portfolio positioning and outlook It’s frustrating that only a few months ago I was writing about “robust” UK macro data, falling mortgage rates and a positive outlook for 2025. For as Keynes said “when the facts change, I change my mind”. Unfortunately, the UK Budget has had a chilling effect on UK economic momentum; the CITI Economic surprise index, which peaked at over +50 in the summer has fallen to -34, close to trough levels, UK GDP data has been revised down to close to 0 in quarter 3 with little growth expected in quarter 4, retail sales slowed to 0.4% growth in quarter 4, and business confidence has fallen sharply. Though the absolute amount of spending in the budget was not wildly different from our expectations, the mix of policies is definitely worse. The changes to National Insurance are a case in point, most expected the 1.2% higher rate for employer contributions which had been well trailed. The change to lower the threshold at which NI is paid was, however, unexpected and will disproportionately affect those in part time work and impose large costs on the businesses that employ them. Companies are telling us that they will respond to these inflationary impulses by reducing staff and seeking efficiency savings, which A core holding like Breedon offers exposure to both UK and US infrastructure. The resurfacing of Islay airﬁeld shown above was undertaken by its dedicated airﬁeld resurfacing business. PHOTO COURTESY OF BREEDON Section 2: Strategic report 19 suggests the outlook for UK employment is weaker. For Industrials, to remain competitive, they will have to either absorb or mitigate mechanical NI costs should they wish to remain price competitive against global rivals, however, they should get a significant boost from weaker sterling which continues to depreciate against both the US Dollar and major European currencies too. Despite Bank of England (“BoE”) cuts through quarter 4, bond yields are higher, with the 30-year bond at its highest level since 1998, and swap spreads, crucial for mortgage pricing, following suit. The outlook for the housebuilding sector and supply chain has darkened as funding rates appreciate. Labour will need to move at an even faster rate with supply side reforms if they want to stimulate a housing recovery. In recent days bond yields have pushed even higher, eroding the C hancellor’s fiscal headroom and raising speculation of another adjustment at the March Budget and spending review. Just like when banks state that their capital position is “very strong”, the sight of the Chancellor telling journalists her fiscal rules are “non- negotiable” does little to inspire confidence. The U.K.’s twin deficit combined with a weakening growth outlook doesn’t inspire external investment, which this country badly needs. We have tried to reflect this evolving situation in the Company’s positioning, liquidity permitting. We have reduced long exposure in UK domestics with rate sensitivity where valuations don’t reflect this new reality. We have also introduced and/ or added to shorts in several areas, particularly those companies with incremental cost pressure, or where there was already evidence of their business model creaking in 2024. We increased shorts in retailers who are heavily exposed to sourcing in Dollars as well as in the technology sector where we see budgetary pressures amongst small and medium enterprises who will be disproportionately hit by this budget, as well as those where the Government is a large customer. We are nervous about adding too much in the short book as 1) shares prices are down significantly since the Budget and in many cases are on cross- cycle trough valuation metrics, 2) 2024 witnessed significant M&A activity and we think 2025 will be no different, and 3) not that we are betting the house on the BoE but the weaker growth might accelerate rate cuts despite the near term concerns of stickier inflation. We have not made significant changes to our positioning in UK international earning companies set to benefit from weaker sterling and limited UK domestic cyclicality. We still favour domestic US exposure where we see long term roadmaps for growth in infrastructure and data c entre capex, which should benefit holdings such as Hill & Smith and Rotork to name but two. As for general i ndustrial, 2024 saw further moderation in activity levels as destocking continued longer than many hoped. The stop-start nature of these supply chain issues throughout the year has impacted a range of geographies and sub-sectors differently, as they are all at different points in the cycle. We got some of these dynamics right and some wrong in 2024, but overall, within General Industrials we have noticed an improvement in the book-to-bill ratios, accelerating through the second half of 2024 and into the financial year 2025. For many companies trading on depressed cross-cycle multiples this is particularly encouraging, and as discussed earlier, weak Sterling will help both their competitive position as well as from a translational earnings perspective. A core holding like Breedon offers exposure to both UK and US infrastructure, where we have witnessed the permanent withdrawal of capacity which has been reflected in strong pricing to offset volume reductions. Consequently, profits have still demonstrated impressive year on year growth despite the reduction in volumes, and with a reengineered cost base, profits in the next cycle could reach new highs as volumes recover. Indeed, we expect 2024 to mark the trough for volumes, not just for Breedon but for many other “growth cyclicals” despite the absence of an overall “V” shaped recovery in 2025. In many cases we find these investments trading on close to trough multiples on trough earnings and we have continued to add to our exposure here believing the risk/reward to be particularly compelling. We added to some select real estate companies, which may sound counterintuitive in the face of weakening macro and rising bond yields, but yet again we think valuations are compelling. Great Portland , for example, is now at an almost 50% discount to Net Asset Value. We’ve also averaged down in U.K housebuilder Bellway , now at circa 0.7x its tangible book value, and still believe that 2024 will mark the trough for housing volumes. It’s frustrating but it’s hard to get too constructive on the UK small and midcap universe right now, given the domestic fiscal environment I have depicted. But before we get too despondent and talk ourselves into a bearish frenzy, it is important to put some of the UK macro data into context: UK construction PMIs have come off the peak, but are still the strongest in Europe; Mortgage volumes fell 3.5% month on month in November but ended the year +40% on 2023 (and the -3.5% compares with three consecutive months of -10% following the Truss debacle); aggregate employment is still strong; Asda’s disposable income tracker is still growing roughly 10% on an annualised basis in November; the savings rate is 10%, significantly higher than the pre covid 20 year average of 7%; Service sector PMIs remain hovering above 50, even as business confidence has fallen. Lastly, and perhaps key, is that the BoE’s own view on inflation is much more sanguine than financial markets, leaving more scope to cut faster than currently expected. 20 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 We think a deep recession is unlikely, but our hopes for a V shaped recovery in 2025 have been squashed. Our base case now is a return to the environment of 2023, subdued demand and anaemic growth. Downside risks from a further fiscal mis-step or further punishment by the bond market are clear. Normally by the time the bond market moves make the mainstream press and the commentariat starts decrying the state of the pound, its closer to the end than the start. Remember all the calls for the £ to be at parity with the Dollar in 2022? Ultimately, we have moved from a situation of economic strength and financial markets looking supportive to one where economic data has weakened and UK fiscal policy looks increasingly at the whim of financial markets. We will continue to invest in companies with strong balance sheets, and growing cash flows and seek idiosyncratic investment opportunities where we see a compelling runway for growth and an asymmetric risk/reward opportunity. Even though there may be more clouds on a short-term horizon the valuations of what we consider to be the highest quality UK domestic assets are back at trough levels and very attractive on a medium-term view, and trading remains solid despite the backdrop. We remain alive to the data and more importantly what companies are telling us and will adjust our positioning accordingly. In conclusion, we enter 2025 somewhat apprehensively and that is reflected in a gross exposure that is now down to around 110%, and a net exposure that is around 105%. DAN WHITESTONE BlackRock Investment Management (UK) Limited 19 February 2025 Section 2: Strategic report 21 22 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 10 7 4 1 9 6 3 8 5 2 PHOTOS COURTESY OF BREEDON, GRAFTON GROUP, HILL & SMITH HOLDINGS, GAMMA COMMUNICATIONS, WORKSPACE GROUP, OXFORD INSTRUMENTS Section 2: Strategic report 23 Portfolio of investments 1 Breedon (2023: 1st) Construction & Materials Market value: £19,820,000 Share of net assets: 3.3% (2023: 3.3%) Supplier of construction materials 2 IntegraFin (2023: 15th) Financial Services Market value: £18,223,000¹ Share of net assets: 3.1% (2023: 1.8%) UK savings platform for financial advisors 3 Tatton Asset Management (2023: 11th) Financial Services Market value: £16,616,000 Share of net assets: 2.8% (2023: 2.2%) Provision of discretionary fund management services to the IFA market 4 Rotork (2023: 7th) Electronic & Electrical Equipment Market value: £16,449,000 Share of net assets: 2.8% (2023: 2.5%) Manufacturer of industrial flow equipment 5 Grafton Group (2023: 4th) Support Services Market value: £16,358,000 Share of net assets: 2.7% (2023: 2.8%) Builders merchants in the UK, Ireland and Netherlands 6 Hill & Smith Holdings (2023: 12th) Industrial Metals & Mining Market value: £16,279,000 Share of net assets: 2.7% (2023: 2.2%) Supplier of infrastructure products and galvanizing services 7 Gamma Communications (2023: 2nd) Mobile Telecommunications Market value: £15,630,000 Share of net assets: 2.6% (2023: 3.0%) Provider of communication services to UK businesses 8 GPE (2023: 77th) Real Estate Investment Trusts Market value: £15,256,000¹ Share of net assets: 2.6% (2023: 0.5%) Owner of commercial real estate in central London 9 Workspace Group (2023: 16th) Real Estate Investment Trusts Market value: £14,854,000 Share of net assets: 2.5% (2023: 1.8%) Supply of flexible workspace to businesses in London 10 Oxford Instruments (2023: 3rd) Electronic & Electrical Equipment Market value: £14,422,000 Share of net assets: 2.4% (2023: 2.8%) Designer and manufacturer of tools and systems for industry and research * Traded on the Alternative Investment Market (AIM) of the London Stock Exchange. 1 Includes long derivative positions. Percentages shown are the share of net assets. The market value shown is the gross exposure to the shares through equity investments and long derivative positions. For equity investments, the market value is the fair value of the shares. For long derivative positions, it is the market value of the underlying shares to which the portfolio is exposed via the contract. Percentages in brackets represent the portfolio holding as at 30 November 2023. Arrows indicate the change in relative ranking of the position in the portfolio compared to its ranking as at 30 November 2023. 24 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 # Company £’000^ % Description 11 Ibstock Construction & Materials 14,409 2.4 Manufacturer of clay bricks and concrete products 12 FTSE 250 Index Future Financial Services 14,282 1 2.4 Index future 13 WH Smith General Retailers 14,055 2.4 Retailer of books, stationery, magazines, newspapers and confectionery 14 Jet2 Travel & Leisure 13,763 2.3 Low cost tour operator and airline 15 Morgan Sindall Construction & Materials 12,765 2.1 Supplier of office fit out, construction and urban regeneration services 16 Boku Support Services 12,153 2.0 Digital payments platform 17 Baltic Classifieds Group Software & Computer Services 10,995 1.8 Operator of online classified businesses in the Baltics 18 GlobalData Industrial Support Services 10,802¹ 1.8 Data analytics and consulting 19 Bellway Household Goods and Home Construction 10,685 1.8 UK housebuilder 20 Dunelm Group General Retailers 10,645 1.8 Retailer of homeware products 21 Chemring Group Aerospace & Defence 9,569 1.6 Provider of technology products and services to aerospace, defence and security markets 22 Victorian Plumbing Home Improvement Retailers 9,293¹ 1.6 Online retailer of bathroom products 23 Alfa Financial Software Software & Computer Services 8,996 1.5 Provider of software to the finance industry 24 FRP Advisory Group PLC Support Services 8,933 1.5 Provider of forensics, corporate finance, debt and financial advisory services 25 Cairn Homes & Household Goods and Home Construction 8,654¹ 1.4 Builder of community apartments and homes 26 Trainline Travel & Leisure 8,441¹ 1.4 Provider of online rail and train ticketing services 27 4imprint Group Media 8,425 1.4 Supplier of promotional merchandise in the US 28 Xero & Software & Computer Services 7,741¹ 1.3 Software company specialising in accounting for small businesses 29 IG Group Holdings Financial Services 7,629 1.3 Online provider of spread betting and CFD trading services 30 TP ICAP Financial Services 7,385 1.2 Inter-dealer broker 31 Cranswick Food Producers 6,964 1.2 Producer of premium, fresh and added-value food products 32 Luceco Electronic & Electrical Equipment 6,685 1.1 Supplier & manufacturer of high quality LED lighting products 33 Vesuvius Industrial Engineering 6,565 1.1 British engineered ceramics company 34 Porvair Electronic & Electrical Equipment 6,522¹ 1.1 Specialist filtration and environmental technology 35 Balfour Beatty Construction & Materials 6,417 1.1 Multinational infrastructure group 36 MJ Gleeson Household Goods and Home Construction 6,392 1.1 UK housebuilder 37 Hunting Oil Equipment and Services 6,234¹ 1.0 Oil services business 38 Elementis Chemicals 6,233¹ 1.0 Speciality chemicals company Portfolio of investments continued Section 2: Strategic report 25 # Company £’000^ % Description 39 Deliveroo Software & Computer Services 6,163 1.0 Online food delivery business 40 Clarkson Industrial Transportation 5,962 1.0 Provider of shipping services 41 Zegona Communications Telecommunication Services 5,920 1.0 Provider of telecommunications services 42 Derwent London Real Estate Investment Trusts 5,855 1.0 British property investment company 43 Oxford Biomedica Pharmaceuticals & Biotechnology 5,785¹ 1.0 Gene cell therapy 44 Hammerson Real Estate Investment Trusts 5,755 1.0 Property investment company 45 GB Group Software & Computer Services 5,628 0.9 Developer and supplier of identity verification solutions 46 Morgan Advanced Materials Electronic & Electrical Equipment 5,491 0.9 Advanced materials manufacturer 47 Genuit Construction & Materials 5,457 0.9 Manufacturer of plastic piping systems 48 AJ Bell Financial Services 5,364 0.9 UK savings platform for financial advisors & individual investors 49 Kier Group Construction & Materials 5,339 0.9 UK construction, services and property group 50 Robert Walters Support Services 5,199 0.9 Provider of specialist recruitment services 51 AB Dynamics Industrial Engineering 5,149 0.9 Developer and supplier of specialist automotive testing systems 52 Glenveagh Properties & Household Goods and Home Construction 5,018¹ 0.8 Builder of community apartments and homes 53 Sirius Real Estate Real Estate Investment & Services 4,924 0.8 Owner and operator of business parks, offices and industrial complexes in Germany 54 Craneware Healthcare Equipment & Services 4,907 0.8 Provider of financial business software for US hospitals 55 Zotefoams Chemicals 4,869¹ 0.8 Manufacturer of polyolefin foams used in sport, construction, marine, automation, medical equipment and aerospace 56 Polar Capital Holdings Financial Services 4,831 0.8 Provider of investment management services 57 DiscoverIE Electronic & Electrical Equipment 4,710 0.8 International designer, manufacturer and supplier of customised electronics 58 Ashmore Group Financial Services 4,670¹ 0.8 Emerging market focused investment manager 59 PayPoint Industrial Support Services 4,565¹ 0.8 Digital payments business 60 Young & Co’s Brewery Travel & Leisure 4,502 0.8 Owner and operator of pubs mainly in the London area 61 Londonmetric Property # Real Estate Investment Trusts 4,364¹ 0.7 Investor in, and developer of property 62 Future Media 4,330 0.7 Multi-platform media business covering technology, entertainment, creative arts, home interest and education 63 SThree Support Services 4,245 0.7 Provider of specialist professional recruitment services 64 SIG Industrial Support Services 4,214 0.7 Supplier of building, roofing and insulation products 65 SigmaRoc Construction & Materials 4,208 0.7 Buy-and-build group targeting construction materials assets in the UK and Northern Europe 66 TT Electronics Electronic & Electrical Equipment 3,916 0.7 Global manufacturer of electronic components 67 Plus500 Ltd Financial Services 3,883 0.6 Online trading platform provider 26 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 # Company £’000^ % Description 68 Restore Support Services 3,696 0.6 Records management business 69 SPS Commerce & Software & Computer Services 3,661¹ 0.6 Cloud-based supply chain management software provider 70 Cerillion Software & Computer Services 3,505 0.6 Provider of billing, charging and customer management systems 71 Lundin Mining & Industrial Metals & Mining 3,303¹ 0.6 Diversified base metals miner 72 Euronext & Financial Services 3,225¹ 0.5 European stock exchange 73 Medpace Holdings & Pharmaceuticals & Biotechnology 3,131¹ 0.5 Clinical research organization (CRO) conducting global clinical research for the development of drugs and medical devices 74 Alpha Group International Financial Services 3,089 0.5 Foreign exchange risk management and banking solutions provider 75 Senior PLC Aerospace & Defence 3,008 0.5 Specialist engineering business 76 Bloomsbury Publishing Media 2,941 0.5 Independent publishing house 77 Marshalls Construction & Materials 2,939¹ 0.5 British construction materials group 78 Costain Group Industrial Support Services 2,930 0.5 Construction and engineering company 79 Safestore Real Estate Investment Trusts 2,876 0.5 Provider of self-storage units 80 Savills Real Estate Investment & Services 2,870 0.5 Provision of specialist real estate services 81 TI Fluid Systems Automobiles & Parts 2,839 0.5 Manufacturer of thermal management and fluid handling systems 82 Yellow Cake PLC Industrial Metals & Mining 2,808¹ 0.5 Uranium investment company 83 Permanent TSB & Banks 2,788 0.5 Irish bank 84 Central Asia Metals Industrial Metals & Mining 2,772¹ 0.5 Production of base metals with operations in Kazakhstan and North Macedonia 85 Watches of Switzerland Personal Goods 2,685 0.5 Retailer of luxury watches 86 Forterra Construction & Materials 2,684 0.5 Manufacturer of building products 87 Moneysupermarket.com Software & Computer Services 2,622 0.4 Provider of price comparison website specialising in financial services 88 Judges Scientific Electronic & Electrical Equipment 2,607 0.4 Designer and producer of scientific instruments 89 Animalcare Group Pharmaceuticals & Biotechnology 2,555 0.4 Veterinary pharmaceuticals business 90 Accesso Technology Software & Computer Services 2,336¹ 0.4 Provider of ticketing and virtual queuing solutions 91 Videndum Industrial Engineering 2,292¹ 0.4 Provider of media hardware products and software solutions 92 CVS Group General Retailers 2,275 0.4 Operator of veterinary surgeries 93 Inficon & Electronic & Electrical Equipment 2,266¹ 0.4 Provider of innovative instrumentation and critical sensor technologies 94 Indivior PLC Pharmaceuticals & Biotechnology 2,214¹ 0.4 Pharmaceuticals business specialising in addiction and mental health treatments 95 Raspberry Pi Holdings PLC Technology Hardware & Equipment 2,114 0.4 Single-board computer manufacturer Portfolio of investments continued Section 2: Strategic report 27 # Company £’000^ % Description 96 Rosebank Financial Services 2,100 0.4 Industrial company with a “Buy, improve, sell” strategy 97 OSB Group Financial Services 2,024 0.3 Specialist lending business 98 Creo Medical Group PLC Medical Equipment and Services 1,977¹ 0.3 Manufacturer of medical devices 99 Eckoh Software & Computer Services 1,836 0.3 Global provider of secure payments products 100 Gooch & Housego Electronic & Electrical Equipment 1,768 0.3 Designer and manufacturer of advanced photonic systems 101 Team17 Leisure Goods 1,656 0.3 Video game developer and publisher 102 The Pebble Group Media 1,597 0.3 Designer and manufacturer of promotional goods 103 Computacenter Software & Computer Services 1,498 0.3 Computer services 104 Advanced Medical Solutions Healthcare Equipment & Services 1,272¹ 0.2 Developer and manufacturer of advanced wound care solutions 105 XP Power Electronic & Electrical Equipment 1,167 0.2 Leading provider of power solutions 106 Maxcyte Pharmaceuticals & Biotechnology 337 0.1 Clinical-stage global cell-based therapies and life sciences company 107 Cohort PLC Aerospace & Defence 129 – Defence and security technology company Long investment positions (excluding BlackRock’s Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund) 667,154 112.0 Short investment positions (20,120) (3.4) 1 Includes long derivative positions. * Traded on the Alternative Investment Market (AIM) of the London Stock Exchange. # Traded on the FTSE 100 Index of the London Stock Exchange. & Holdings listed on exchanges outside of the UK. ^ The market value shown is the gross exposure to the shares through equity investments and long derivative positions. For equity investments, the market value is the fair value of the shares. For long derivative positions, it is the market value of the underlying shares to which the portfolio is exposed via the contract. Percentages shown are the share of net assets. At 30 November 2024, the Company held equity interests in two companies comprising more than 3% of a company’s share capital as follows: Tatton Asset Management and Luceco. 28 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Fair value 1 Gross market exposure 2,3 Gross market exposure as a % of net assets 2 £’000 £’000 2024 2023 Long equity investment positions (excluding BlackRock’s Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund) 557,602 557,602 93.6 96.8 Long derivative positions 1,281 109,552 18.4 14.6 Subtotal of long investment positions 558,883 667,154 112.0 111.4 Short investment positions 532 (20,120) (3.4) (3.8) Subtotal of long and short investment positions 559,415 647,034 108.6 107.6 Cash and cash equivalents 43,889 (43,730) (7.3) (6.7) Other net current liabilities (7,396) (7,396) (1.3) (0.9) Net assets 595,908 595,908 100.0 100.0 The Company was geared through the use of long and short derivative positions. Gross and net gearing as at 30 November 2024 were 115.4% and 108.6% respectively (2023: 115.2% and 107.6% respectively). Gross and net gearing are Alternative Performance Measures, see Glossary on pages 134 to 138. 1 Fair value is determined as follows: – Long equity investment positions are valued at bid prices where available, otherwise at latest market traded quoted prices. – The exposure to securities held through long derivative positions directly in the market would have amounted to £108,271,000 at the time of purchase, and subsequent movement in market prices have resulted in unrealised gains on the long derivative positions of £1,281,000 resulting in the value of the total long derivative market exposure to the underlying securities increasing to £109,552,000 as at 30 November 2024. If the long positions had been closed on 30 November 2024, this would have resulted in a gain of £1,281,000 for the Company. – The notional exposure of selling the securities gained via the short derivative positions would have been £(20,652,000) at the time of entering into the contract, and subsequent movement in market prices have resulted in unrealised gains on the short derivative positions of £532,000 resulting in the value of the total short derivative market exposure of these investments increasing to £(20,120,000) at 30 November 2024. If the short positions had been closed on 30 November 2024, this would have resulted in a gain of £532,000 for the Company. 2 Gross market exposure for equity investments is the same as fair value; bid prices are used where available and, if unavailable, latest market traded quoted prices are used. For both long and short derivative positions, the gross market exposure is the market value of the underlying shares to which the portfolio is exposed via the contract. 3 The gross market exposure column for cash and cash equivalents has been adjusted to assume the Company traded direct holdings, rather than exposure being gained through long and short derivative positions. Fair value and gross market exposure of investments as at 30 November 2024 Section 2: Strategic report 29 Distribution of investments as at 30 November 2024 Sector % of long portfolio % of short portfolio % of net portfolio Oil Equipment and Services 1.0 0.0 1.0 Oil & Gas 1.0 0.0 1.0 Chemicals 1.7 0.0 1.7 Industrial Metals & Mining 3.9 0.0 3.9 Basic Materials 5.6 0.0 5.6 Aerospace & Defence 2.0 0.0 2.0 Construction & Materials 11.4 (0.3) 11.1 Electronic & Electrical Equipment 10.2 (0.3) 9.9 Industrial Engineering 2.2 0.0 2.2 Industrial Support Services 3.5 (0.2) 3.3 Industrial Transportation 0.9 0.0 0.9 Support Services 7.8 0.0 7.8 Industrials 38.0 (0.8) 37.2 Food Producers 1.1 (0.2) 0.9 Personal Goods 0.4 0.0 0.4 Consumer Staples 1.5 (0.2) 1.3 Medical Equipment and Services 0.3 0.0 0.3 Healthcare Equipment & Services 1.0 0.0 1.0 Pharmaceuticals & Biotechnology 2.2 (0.3) 1.9 Health Care 3.5 (0.3) 3.2 Automobiles & Parts 0.4 0.0 0.4 General Retailers 4.2 (0.3) 3.9 Home Improvement Retailers 1.4 0.0 1.4 Household Goods and Home Construction 4.8 0.0 4.8 Leisure Goods 0.3 0.0 0.3 Media 2.7 (0.3) 2.4 Travel & Leisure 4.1 0.0 4.1 Consumer Discretionary 17.9 (0.6) 17.3 Banks 0.4 0.0 0.4 Financial Services 14.4 0.0 14.4 Financials 14.8 0.0 14.8 Real Estate Investment & Services 1.2 0.0 1.2 Real Estate Investment Trusts 7.6 (0.2) 7.4 Real Estate 8.8 (0.2) 8.6 Software & Computer Services 8.5 (0.7) 7.8 Technology Hardware & Equipment 0.3 (0.4) (0.1) Technology 8.8 (1.1) 7.7 Mobile Telecommunications 2.4 0.0 2.4 Telecommunications Services 0.9 0.0 0.9 Telecommunications 3.3 0.0 3.3 Total Investments 103.2 (3.2) 100.0 The above percentages are calculated on the net portfolio as at 30 November 2024. The net portfolio is calculated as long equity and derivative positions, less short derivative positions as at 30 November 2024. 30 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 2.0% 1.2% 22.8% 19.4% 20.5% 5.1% 10.2% -0.8% 0.0% £2bn – £2.5bn £2.5bn – £5bn £10bn – £20bn £5bn – £10bn £1.5bn – £2bn £0m – £500m 1 The above investments may comprise exposures to long equity and long derivative positions. Source: BlackRock. Long positions 1 % of net portfolio Short positions -10 0 10 20 30 40 Market capitalisation as at 30 November 2024 £500m – £1bn 0.0% 0.0% -0.6% -0.3% -1.1% -0.3% 21.9% £1bn – £1.5bn -11 12 0 0 0 32 Long positions 1 Number of positions 1 The above investments may comprise exposures to long equity and long derivative positions. Source: BlackRock. Short positions £2.5m – £5m £0m – £2.5m £5m – £10m £15m – £20m -20 -10 0 10 20 30 40 Position size as at 30 November 2024 Market value 37 18 8 0 £10m – £15m Analysis of the portfolio Section 2: Strategic report 31 FTSE 250 52.2% FTSE AIM 20.3% Other 17.2% FTSE Small Cap 9.7% Portfolio holdings within Key Benchmark Indices Gross Basis 1 Net Basis 2 FTSE 250 55.0% FTSE AIM 21.6% Other 12.5% FTSE Small Cap 10.3% FTSE 100 0.6% FTSE 100 0.6% Within Benchmark 78.3% (2023: 70.4%) Off-Benchmark 21.7% (2023: 29.6%) Source: BlackRock. 1 Long exposure plus short exposure as a percentage of the portfolio in aggregate excluding investment in BlackRock’s Institutional Cash Series plc – Sterling Liquid Environmentally Aware Fund. Long exposure less short exposure as a percentage of the portfolio excluding investment in BlackRock’s Institutional Cash Series plc – Sterling Liquid Environmentally Aware Fund. 2 Within Benchmark 82.5% (2023: 68.2%) Off-Benchmark 17.5% (2023: 31.8%) Portfolio holdings within Benchmark Index (the Numis Smaller Companies plus AIM (excluding Investment Companies) Index) Net Basis 2 Gross Basis 1 32 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Business review Principal activities The Company is a public company limited by shares which carries on business as an investment trust and its principal activity is portfolio investment. Objective The Company’s objective is to provide shareholders with long-term capital growth and an attractive total return through investment primarily in UK smaller and mid-capitalisation companies traded on the London Stock Exchange. Strategy, business model, investment policy and investment process The Company invests in accordance with the objective given above. The Board is collectively responsible to shareholders for the long-term success of the Company and is its governing body. There is a clear division of responsibility between the Board and the Manager, BlackRock Fund Managers Limited (BFM). Matters for the Board include setting the Company’s strategy, including its investment objective and policy, setting limits on gearing (both bank borrowings and the effect of derivatives), capital structure, governance, and appointing and monitoring of performance of service providers, including the Manager. The Company’s business model follows that of an externally managed investment trust; therefore the Company does not have any employees and outsources its activities to third party service providers, including the Manager who is the principal service provider. The management of the investment portfolio and the administration of the Company have been contractually delegated to BFM. The Manager, operating under guidelines determined by the Board, has direct responsibility for the decisions relating to the day-to-day running of the Company and is accountable to the Board for the investment, financial and operating performance of the Company. Other service providers include the Depositary and the Fund Accountant, The Bank of New York Mellon (International) Limited, and the Registrar, Computershare Investor Services PLC. Details of the contractual terms with third party service providers are set out in the Directors’ Report. Investment Policy The Company’s performance is measured against the Numis Smaller Companies plus AIM (excluding Investment Companies) Index (the Benchmark Index). The Investment Manager, BlackRock Investment Management (UK) Limited (BIM (UK)), may invest in companies outside the Benchmark Index without restriction, subject to the following limits. The Company may hold up to 15% of its gross assets, at the time of acquisition, in securities of companies which are listed or traded on a stock exchange outside the UK. In addition to the normal long only portfolio, the Company will likely hold a mixture of long and short contracts for difference (CFDs) and/or comparable equity derivatives that would result in a typical net market exposure of between 100% and 115%. In extremis, the Company could deploy the full 30% of permissible leverage into short CFDs and/or comparable equity derivatives, thereby reducing its overall net market exposure to 70%. The Company may also invest up to 2.5% of its net assets (measured at the time of investment) in unquoted securities, including securities issued by companies incorporated outside the United Kingdom. However, the Company may invest more than 2.5%, but no more than 3.75%, of its net assets (both measured at the time of investment), in unquoted securities in circumstances where such investment is in an existing investee company and, in the Investment Manager’s opinion, a failure of the Company to make such investment would have a material adverse effect on the value of the Company’s investment in such investee company. In addition, the Company is permitted to employ leverage up to 30% of net assets, which it does primarily through the use of CFDs and/or comparable equity derivatives, rather than bank borrowings, therefore enabling the Company to have a maximum net market exposure of 130%. In normal circumstances the Company will likely hold a mixture of long and short CFDs and/or comparable equity derivatives that would result in a typical net market exposure of between 100% and 115%. Portfolio risk will be mitigated by investment in a diversified portfolio of holdings. No more than 5% of the Company’s gross assets, at the time of acquisition, may be invested in any one single holding, excluding holdings in cash or money market funds, where up to 10% of the Company’s gross assets may be held. The Company may also invest in collective investment vehicles. However, the Company will not invest more than 10% of its gross assets, at the time of the acquisition, in other listed Section 2: Strategic report 33 closed-ended investment funds, unless such companies have a stated investment policy not to invest more than 15% of their gross assets in other listed closed-ended investment funds, in which case the limit is 15% of gross assets. The Board’s policy is that net gearing, borrowings less cash, should not exceed 20% of gross assets. The Company expects to employ any leverage primarily through its use of CFDs and/or comparable equity derivatives. No material change will be made to the investment objective and policy without shareholder approval. * The AIC measures gearing at gross level, rather than net market exposure level (i.e. gearing is calculated as borrowings + long CFDs and/or comparable equity derivatives + short CFDs and/or comparable equity derivatives) and therefore the published gearing figures will be higher than the typical net market exposure of between 100% and 115%. Investment process A unique feature of the Company is that it has the ability to go both long and short up to approximately 30% of the Company’s net assets. While the UK Smaller Companies sector has generated positive returns over the long term, there can be significant volatility. Such an environment provides an attractive opportunity to add value via both long and short positions which can exploit share price moves whether up or down. As the maximum short portfolio exposure through derivatives is 30% of net assets, the Company will at all times retain an exposure to the market, as shown in the chart below. In the course of their research the investment management team comes across companies which they judge are likely to underperform; the ability to take short positions therefore enhances the opportunity to make money for shareholders. This is not possible in a conventional or long only portfolio. Idea generation can come from anywhere, though the primary focus is on meeting companies, speaking to management teams, and seeking to gain an in-depth understanding of the business and the industry in which they operate. This is the greatest source of idea generation. Our portfolio manager focuses on identifying strong management teams with clarity of strategic vision, in growing markets with attractive industry dynamics, where they have a leading market position supported by a differentiated product offering, giving them pricing power and strong margins. These characteristics are then combined with strong financial structures. We seek to avoid indebted companies, therefore we look for companies that have strong balance sheets, and importantly those with high levels of cash conversion, where cash can be reinvested back into the business at a high rate of return. From here our manager constructs a diversified portfolio of high quality, growth companies, while also identifying stock specific shorting opportunities in companies that do not meet the above criteria. These are often in industries under significant pressure or companies with weak financial structures (i.e. too much debt and not enough cash flow). A clear investment process underpins portfolio construction Source: BlackRock. Investment process subject to change. For illustrative purposes only. Idea generation In-depth fundamental company analysis Typical portfolio construction Earnings growth Industry Market position Cash generation Looking through the Long / Short lens BlackRock resources Company meetings External research Macro / thematic Diversiﬁcation c.130 positions Longs c.1% to 5% Shorts c.0.5% to 1% Net: 90% to 115% Gross: 100% to 130% Lower, managed volatility Balance sheet BlackRock Emerging Companies Team Portfolio Manager Management Regular engagement with BlackRock Investment Stewardship and Risk Function throughout the investment process 34 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 When markets are expected to rise in the medium term, the long/short strategy is used to generate additional market exposure through ensuring that the long exposure exceeds the short exposure in a range between 0% to 15% of the net assets of the Company. Rising or ‘bull’ markets have historically (in the UK) persisted for longer than falling or ‘bear’ markets. A typical net market exposure might therefore be between 100% and 115%. This is lower than the ‘gross exposure’, which is the combination of the long equity positions, plus the net of long and short derivative positions expressed as a percentage of net assets. Performance The Investment Manager’s report on pages 16 to 20 includes a review of the main developments during the year, together with information on investment activity within the Company’s portfolio. Results and dividends The results for the Company are set out in the Statement of Comprehensive Income on page 94. The total profit for the year, after taxation, was £86,322,000 (2023: loss of £15,749,000) of which the net revenue profit amounted to £17,046,000 (2023: £16,510,000) and the net capital profit amounted to £69,276,000 (2023: loss of £32,259,000). Details of the dividends declared in respect of the year are set out in the Chairman’s Statement on page 12. Key performance indicators At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company over time, and which are comparable to those reported by other investment trusts, are set out in the table below. These KPIs fall within the definition of ‘Alternative Performance Measures’ (APMs) under guidance issued by the European Securities and Markets Authority (ESMA), and additional information explaining how these are calculated is set out in the Glossary on pages 134 to 138. The Board monitors the KPIs at each meeting. Additionally, it regularly reviews a number of indices and ratios to understand the impact on the Company’s relative performance of the various components such as asset allocation and stock selection. This includes an assessment of the Company’s performance and ongoing charges against its peer group of investment trusts with similar investment objectives. Year ended 30 November 2024 Year ended 30 November 2023 Net asset value total return 1,2 16.3% (2.3)% Share price total return 1,2 5.0% (0.8)% Benchmark Index total return 3 14.1% (6.0)% Discount to cum income net asset value 2 13.2% 3.6% Revenue return per share 18.54p 16.56p Ongoing charges 2,4 0.56% 0.54% Ongoing charges including performance fees 2,5 0.82% 0.87% 1 This measures the Company’s share price and NAV total return, which assumes dividends paid by the Company have been reinvested. 2 Alternative Performance Measures, see Glossary on pages 134 to 138. 3 The Company’s Benchmark Index is the Numis Smaller Companies plus AIM (excluding Investment Companies) Index. 4 Ongoing charges represent the management fee and all other operating expenses, excluding the performance fee, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non- recurring items as a % of average daily net assets. 5 Ongoing charges represent the management fee, performance fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items as a % of average daily net assets. Further information on the management fees paid by the Company can be found in Note 4 to the financial statements on pages 102 and 103. Business review continued Section 2: Strategic report 35 Share price discount/premium The Directors recognise that it is in the long-term interests of shareholders that the Company’s shares do not trade at an excessive discount or premium to their prevailing NAV for any material length of time. In the year under review the discount to NAV of the ordinary shares on a cum income basis has ranged between a discount of 3.5% and 13.7%, with the average being a discount of 9.3%. The shares ended the year at a discount of 13.2% on a cum income basis. As at 18 February 2025 the discount was 10.6%. Following the financial year end, the Board convened a General Meeting of its shareholders on 17 February 2025. The purpose of the meeting was to seek to renew the power taken at the last AGM to buy back up to 14.99% of the Company’s shares. As it does each year, the Board will also be seeking to renew the authority from shareholders at the AGM to issue new shares (or to reissue shares held in treasury) and to buy back shares. Further information on these powers and the Board's policy in this respect can also be found in the Chairman’s Statement on pages 12 and 13. Principal risks As required by the UK Code of Corporate Governance, the Board has in place a robust, ongoing process to identify, assess and monitor the principal and emerging risks of the Company, including those that they consider would threaten its business model, future performance, solvency or liquidity. Emerging risks are considered by the Board as they come into view and are incorporated into the Company’s risk register where applicable. Additionally, the Manager considers emerging risks in numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company identified through the annual risk survey will be communicated to the Board. A core element of this process is the Company’s risk register, which identifies the risks facing the Company and the likelihood and potential impact of each risk, together with the controls established for mitigation. A residual risk rating is calculated for each risk, which allows the effect of any mitigating procedures to be reflected in the register. The current risk register includes a range of risks spread between investment performance risk, income/dividend risk, legal & regulatory risk, counterparty risk, operational risk, market risk, political risk and financial risk. The risk register, its method of preparation and the operation of key controls in the Manager’s and third party service providers’ systems of internal control are reviewed on a regular basis by the Audit Committee. In order to gain a more comprehensive understanding of the Manager’s and other third party service providers’ risk management processes and how these apply to the Company’s business, the Audit Committee periodically receives presentations from BlackRock’s Internal Audit and Risk & Quantitative Analysis teams. Where produced, the Audit Committee also reviews summaries of the Service Organisation Control (SOC1) reports from the Company’s service providers. The Board has undertaken a robust assessment of both the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. For instance, the risk that unforeseen or unprecedented events (including heightened geo-political tensions, a global pandemic, hyperinflation, stagflation, a liquidity event or significant changes in technology and the evolution of artificial intelligence (AI)) may have a significant negative impact on global markets (notably through increased commodity and labour price volatility, driving inflation and impacting global trade) and consequently a negative impact on the Company’s NAV, performance and discount. The Board has taken into consideration the risks posed to the Company by these events and incorporated them into the Company’s risk register. Emerging risks are considered by the Board as they come into view and are incorporated into the existing review of the Company’s risk register. Additionally, the Manager considers emerging risks in numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company identified through the annual risk survey will be communicated to the Board. Emerging risks that have been considered by the Board over the year include the impact of escalating geo-political conflict, technological advances and issues around shareholder voting against a backdrop of heightened activism across the UK investment companies sector. The key emerging risks identified are as follows: Geo-political risk: Escalating geo-political tensions (including, but not limited to tensions in the Middle East and the ongoing war in Ukraine, or deteriorating relations between China and the US/other countries) have a significant negative impact on global markets, with an increasing use of tariffs and domestic regulations making global trade more complex and driving economic fragmentation. 36 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Artificial Intelligence (‘AI’): Advances in computing power means that AI has become a powerful tool that will impact a huge range of areas and with a wide range of applications that have the potential to dislocate established business models and disrupt labour markets, creating uncertainty in corporate valuations. The significant energy required to power this technological revolution will create further pressure on environmental resources and carbon emissions. Shareholder voting: There has been an increase in activist activity across the UK closed end funds sector, with general meetings being requisitioned on a number of UK investment trusts to change the composition of the board, and potentially the manager and investment policy. Some investors may find it difficult to vote at general meetings, and against this backdrop of heightened activity there is a risk that low voting turnout at AGMs and GMs may result either in changes being made that are not in all shareholders’ best interests or in the failure to implement changes that are in the best interests of shareholders. The Board will continue to assess these risks on an ongoing basis. In relation to the UK Code, the Board is confident that the procedures that the Company has put in place are sufficient to ensure that the necessary monitoring of risks and controls has been carried out throughout the reporting period. The principal risks and uncertainties faced by the Company during the financial year, together with the potential effects, controls and mitigating factors, are set out in the table on pages 36 to 39. Investment performance Principal risk The Board is responsible for: • setting the investment policy to fulfil the Company’s objectives; and • monitoring the performance of the Company’s Investment Manager and the strategy adopted. An inappropriate policy or strategy may lead to: • poor performance compared to the Company’s Benchmark Index, peer group or shareholder expectations; • reduced demand for the Company’s shares; • a widening discount to NAV; • a reduction or permanent loss of capital; and • dissatisfied shareholders and reputational damage. Mitigation/Control To manage these risks the Board: • regularly reviews the Company’s investment mandate and long-term strategy; • has set, and regularly reviews, the investment guidelines and has put in place appropriate limits on levels of gearing and the use of derivatives; • receives from the Investment Manager a regular explanation of stock selection decisions, portfolio gearing and any changes in gearing and the rationale for the composition of the investment portfolio; • receives from the Investment Manager regular reporting on the portfolio’s exposure through derivatives, including the extent to which the portfolio is geared in this manner and the value of any short positions; • monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with particular sectors, based on the diversification requirements inherent in the Company’s investment policy; • considers the risk of incapacitation of the portfolio manager or his departure from the Manager; and • monitors the share price discount or premium to NAV. Market risk Principal risk Market risk arises from changes to the prices of the Company’s investments. It represents the potential loss the Company might suffer through holding investments and derivatives. Market risk includes the potential impact of events which are outside the scope of the Company’s control including heightened geo-political tensions as set out above, which may have Business review continued Section 2: Strategic report 37 a significant negative impact on global markets and consequently a negative impact on the Company’s NAV, performance and discount. Companies operating within the sectors in which the Company invests may be impacted by new legislation governing climate change and environmental issues, which may have a negative impact on their valuation and share price. Mitigation/Control The Board carefully considers the diversification of the portfolio, asset allocation, stock selection, unquoted investments and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager. The Board monitors the implementation and results of the investment process with the Investment Manager, and key market risk factors are discussed. The Board also recognises the benefits of a closed-end fund structure in extremely volatile markets. Unlike open-ended counterparts, closed-end funds are not obliged to sell down portfolio holdings at low valuations to meet liquidity requirements for redemptions. Although the Board has taken shareholder authority to buy back shares to manage the discount, it retains the discretion to decide whether to implement buy backs and the timing and degree to which this is done. During times of elevated volatility and market stress, th is discretion and the ability of a closed-end fund structure to remain invested for the long er term potentially enables the Investment Manager to adhere to disciplined fundamental analysis from a bottom-up perspective and be ready to respond to dislocations in the market as opportunities present themselves. Income/dividend risk Principal risk The amount of dividends and future dividend growth will depend on the performance of the Company’s underlying portfolio holdings. Changes in the composition of the portfolio and any change in the tax treatment of the dividends or interest received by the Company may reduce the level of dividends received by shareholders. Mitigation/Control The Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each meeting. The Company also has a revenue reserve and powers to pay dividends from capital which could potentially be used to support the Company’s dividend if required. Financial risk Principal risk The Company’s investment activities expose it to a variety of financial risks that include market risk, foreign currency risk, counterparty risk and interest rate risk. At 30 November 2024, the Company had approximately 22.3% of its gross asset value invested in AIM traded equity securities and 12.4% of its gross assets in international markets, and, by the very nature of its investment objective, largely invests in smaller companies. Liquidity in these securities can from time to time become constrained, making these investments difficult to realise at or near published prices. Mitigation/Control The Company is not materially exposed to foreign currency and interest rate risk. For mitigation of market risk, see above. There are also risks linked to the Company’s use of derivative transactions including long and short investment positions. Details are disclosed in note 11 on page 108, together with a summary of the policies for managing and controlling these risks in note 16. Operational risk Principal risk In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by BlackRock (the Manager and AIFM) and The Bank of New York Mellon (International) Limited (the Depositary and Fund Accountant) who maintain the Company’s accounting records. Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the Company’s performance. Disruption to the accounting, payment systems or custody records, as a result of a cyber-attack or otherwise, could impact the monitoring and reporting of the Company’s financial position. 38 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 The security of the Company’s assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems. Mitigation/Control The Board reviews the overall performance of the Manager, Investment Manager and all other third party service providers and compliance with the investment management agreement on a regular basis. The Fund Accountant’s and the Manager’s internal control processes are regularly tested and monitored throughout the year and are evidenced through their Service Organisation Control (SOC 1) reports, which are subject to review by an Independent Service Assurance Auditor. The SOC 1 reports provide assurance in respect of the effective operation of internal controls. The Company’s financial instruments held in custody are subject to a strict liability regime and in the event of a loss of such financial instruments held in custody, the Depositary must return assets of an identical type or the corresponding amount, unless able to demonstrate that the loss was a result of an event beyond its reasonable control. The Board considers succession arrangements for key employees of the Manager and the Board also considers the business continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of the Company’s risk register. The Board also receives regular updates from BlackRock’s internal audit function and the Company’s Audit Committee Chairman attends an annual briefing from the head of BlackRock’s internal audit function once a year. This is supplemented by a written report which describes the progress made against the current internal audit plan, any issues identified and the plan for the forthcoming year. Legal and regulatory risk Principal risk The Company has been approved by HM Revenue & Customs as an investment trust, subject to continuing to meet the relevant eligibility conditions, and operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments. Any breach of the relevant eligibility conditions could lead to the Company losing its investment trust status and being subject to corporation tax on capital gains realised within the Company’s portfolio. In such event the investment returns of the Company may be adversely affected. Any serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010. Mitigation/Control The Investment Manager monitors investment movements, the level of forecast income and expenditure and the amount of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached, and the results are reported to the Board at each meeting. Following authorisation under the Alternative Investment Fund Managers’ Directive as retained and onshored in the UK (AIFMD), the Company and its appointed Alternative Investment Fund Manager (AIFM) are subject to the risks that the requirements of the AIFMD are not correctly complied with. The Board and the AIFM also monitor changes in government policy and legislation which may have an impact on the Company. Compliance with the accounting standards applicable to quoted companies and those applicable to investment trusts are also regularly monitored to ensure compliance. Business review continued Section 2: Strategic report 39 Risk of regulatory change Principal risk Amongst other relevant laws and regulations, the Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers’ Directive (as retained and onshored in the UK), the Market Abuse Regulation (also as retained and onshored in the UK), the UK Listing Rules and the Disclosure Guidance and Transparency Rules. Mitigation/Control The Company Secretary and the Company’s professional advisers monitor developments in relevant laws and regulations and provide regular reports to the Board in respect of the Company’s compliance. The Market Abuse Regulation came into force across the EU on 3 July 2016 and has been retained and onshored in the UK following Brexit. The Board has taken steps to ensure that individual Directors (and their Persons Closely Associated) are aware of their obligations under the regulation and has updated internal processes, where necessary, to ensure the risk of non- compliance is effectively mitigated. Counterparty Principal risk The potential loss that the Company could incur if a counterparty is unable (or unwilling) to perform on its commitments. The risk that a bank the Company has deposits with will fail and the Company will not recover monies deposited with such bank. The Company’s investment policy also permits the use of both exchange-traded and over-the-counter derivatives (including contracts for difference). Mitigation/Control Due diligence is undertaken before contracts are entered into and exposures are diversified across a number of counterparties. The Board reviews the controls put in place by the Investment Manager to monitor and to minimise counterparty exposure, which include intra-day monitoring of exposures to ensure that these are within set limits. The Depositary is liable for restitution for the loss of financial instruments held in custody, unless it is able to demonstrate that the loss was due to an event beyond its reasonable control. The creditworthiness of financial institutions is assessed by BlackRock’s Portfolio Management Group (“PMG”) Fundamental Fixed Income Credit Research Team prior to entering into any banking arrangements. The Company has restricted the amount of cash which may be held with any one financial institution, and cash balances are monitored daily and any significant surplus cash is invested substantially in BlackRock’s UCITS compliant Cash Fund to diversify risk. Viability statement The Directors have assessed the prospects of the Company over a longer period than the 12 months referred to by the “Going Concern” guidelines. The Board conducted this review for the period up to the AGM in 2030, being a five-year period from the date that this Annual Report will be approved by shareholders. This is generally the investment holding period investors consider while investing in the smaller companies’ sector. The Board is cognisant of the uncertainty surrounding the potential duration of the Russia/Ukraine conflict and the hostilities in the Middle East, their impact on the global economy, and the prospects for the Company’s portfolio holdings. In making its assessment the Board has also considered the following factors: • the Company’s principal risks as set out on pages 35 to 39; • the impact of a significant fall in UK equity markets on the value of the Company’s investment portfolio in the light of the heightened volatility resulting from the ongoing Russia/Ukraine conflict, the hostilities in the Middle East, and any potential impact on the global economy, and the path of inflation and interest rates in the UK; • the ongoing relevance of the Company’s investment objective; and • the level of demand for the Company’s shares. 40 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 The Directors have also considered the Company’s revenue and expense forecasts and the fact that expenses and liabilities are relatively stable. The Company also has a portfolio of investments which provides a level of cash receipts in the form of dividends and which are considered to be relatively realisable if required. The Directors reviewed the assumptions and considerations underpinning the Company’s existing going concern assertion (please see the disclosure in the Directors’ Report on page 65), which are based on: • processes for monitoring costs; • key financial ratios; • evaluation of risk management and controls; • compliance with the investment objective; • the Company’s ability to meet its liabilities as they fall due; • portfolio risk profile; • share price discount to NAV; • gearing; • counterparty exposure and liquidity risk; • the operational resilience of the Company and its key service providers and their ability to continue to provide a good level of service for the foreseeable future; and • the effectiveness of business continuity plans in place for the Company and key service providers. The Company has a relatively liquid portfolio and largely fixed overheads (excluding any applicable performance fees) which comprise a very small percentage of net assets 0.56% excluding performance fees, 0.82% including performance fees in 2024. The effective performance fee cap in the event that the NAV return exceeds the Benchmark Index return over the performance period is circa 0.90% of the average gross assets over the two years and the applicable percentage to be applied to the outperformance of the NAV total return over the Benchmark Index return is 15%. In addition, the maximum cap on total management and performance fees is 1.25% of average gross assets (measured over a rolling two-year period). Therefore, the Board has concluded that the Company would be able to meet its ongoing operating costs as they fall due. The Directors have also considered the impact of potential changes in law, regulation and taxation and the matter of foreign exchange risk. They have determined that although there are a number of potential risks associated with the legal, fiscal and regulatory landscape they do not believe that this represents a material threat to the Company’s strategy and business model, nor do they believe that the Investment Manager will be materially impeded in achieving the Company’s investment objective. Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment. Business review continued Section 2: Strategic report 41 The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of members as a whole. This enhanced disclosure covers how the Board has engaged with and understands the views of stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the Board’s decisions. As the Company is an externally managed investment company and does not have any employees or customers, the Board considers the main stakeholders in the Company to be the shareholders and the key service providers (being the Manager and Investment Manager, the Custodian, Depositary, Registrar and Broker). The reasons for this determination, and the Board’s overarching approach to engagement, are set out below: Stakeholders Shareholders Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on understanding the views of shareholders in order to incorporate them into the Board’s strategy and objectives in delivering long-term growth and income. In turn, portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. Manager and Investment Manager The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as administration, secretarial, accounting and marketing services. The Manager has sub-delegated portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company to successfully deliver its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation. Other key service providers In order for the Company to function as an investment trust with a listing on the premium segment of the official list of the FCA and trade on the London Stock Exchange’s (LSE) main market for listed securities, the Board relies on a diverse range of advisors for support in meeting relevant obligations and safeguarding the Company’s assets. For this reason, the Board considers the Company’s Custodian, Depositary, Registrar and Broker to be stakeholders. The Board, either directly or through the Manager, maintains regular contact with its key external providers and receives regular reporting from them through the Board and Committee meetings, as well as outside of the regular meeting cycle. Section 172 statement: promoting the success of BlackRock Throgmorton Trust plc 42 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company are set out below. Investment mandate and objective Issue The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to shareholders over the long-term. The Board also has responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio returns. Engagement The Board works closely with the Investment Manager throughout the year in further developing our investment strategy and underlying policies, not simply for the purpose of achieving the Company’s investment objective but in the interests of shareholders and future investors. The Board is kept advised in respect of the Manager’s consideration of ESG factors as part of the investment process; a summary of BlackRock’s approach to ESG matters is set out on page 47. Impact Details regarding the Company’s NAV and share price performance can be found in the Chairman’s Statement on page 11 and in the Strategic Report on page 34. The portfolio activities undertaken by the Manager can be found in the Investment Manager’s Report on pages 16 to 20. Management of the share rating Issue The Board believes that the best way of addressing the discount over the longer term is to continue to generate good performance and to create demand for the Company’s shares in the secondary market through broadening awareness of the Company’s unique structure. The Board believes that it is in shareholders’ interests that the share price does not trade at an excessive premium or discount to NAV. Therefore, where deemed to be in shareholders’ long-term interests, it may exercise its powers to issue shares or buy back shares with the objective of ensuring that an excessive premium or discount does not arise. Engagement The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the impact of dividends paid on brought forward distributable reserves. The Board reviews the Company’s discount/premium to NAV on a regular basis and holds regular discussions with the Manager and the Company’s broker regarding the discount/premium level. The Board believes that the best way of maintaining the share rating at an optimal level over the long-term is to create demand for the shares in the secondary market. To this end the Investment Manager is devoting considerable effort to broadening the awareness of the Company, particularly to wealth managers and to the wider retail shareholder market. The Manager provides the Board with feedback and key performance statistics regarding the success of the Company’s marketing initiatives. Impact The average discount for the year to 30 November 2024 was 9.3%. During the year the Company’s share price has traded between a discount of 3.5% and 13.7%. Section 172 statement continued Section 2: Strategic report 43 Service levels of third party providers Issue The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of service including: the Manager in respect of investment performance and delivering on the Company’s investment mandate; the Depositary in respect of its duties towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing with investor queries and the Company’s Brokers in respect of the provision of advice and acting as a market maker for the Company’s shares. Engagement The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual evaluation of the Manager’s performance, their commitment and available resources. The Board performs an annual review of the service levels of all third party service providers and concludes on their suitability to continue in their role. The Board has received updates in respect of business continuity planning from the Company’s Manager, Depositary, Fund Administrator, Brokers, Registrar and Printers, and is confident that arrangements are in place to ensure that a good level of service will continue to be provided. Impact Performance evaluations were performed on a timely basis and the Board concluded that all third party service providers, including the Manager, Depositary and Fund Administrator were operating effectively and providing a good level of service. Board composition Issue The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience and skills, and that it is compliant with best corporate governance practice under the UK Corporate Governance Code, including guidance on tenure and the composition of the Board’s committees. Engagement During the year the Board undertook a review of succession planning arrangements and identified the need for action to ensure that the composition of the Board remained appropriate and that there was an ongoing process of refreshment, bringing in new ideas and different perspectives. The Board, through its Nomination Committee, agreed the selection criteria and the method of selection, recruitment and appointment. Board diversity, including factors such as age, ethnicity, and gender, was taken into account when establishing the criteria. All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect of the 2024 evaluation process are given on page 58). All Directors stand for re-election by shareholders annually. Shareholders may attend the AGM and raise any queries in respect of Board composition or individual Directors in person or may contact the Company Secretary or the Chairman using the details provided on page 132 if they wish to raise any issues. Impact The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in 2024. Details for the proxy voting results in favour and against individual Directors’ re-election at the 2024 AGM are given on the Company’s website at www.blackrock.com/uk/thrg . Shareholders Issue Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The dividend is funded out of current year revenue and, where deemed appropriate, may be supported from revenue reserves if current year revenue is insufficient. The Company does not have a policy of seeking income, however, the portfolio has, to date, continued to deliver a level of income such that the Board is able to pay an attractive dividend. 44 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Engagement The Board is committed to maintaining open channels of communication and to engaging with shareholders and welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders therefore have the opportunity to meet the Directors and Investment Manager and to address questions to them directly. The Chairman and Senior Independent Director also meet directly with shareholders providing a forum for canvassing their views and enabling the Board to be aware of any issues of concern. The Annual Report and Half Yearly financial report are available on the BlackRock website and are also circulated to shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly factsheets, the daily NAV and other information are also published on the website at www.blackrock.com/uk/thrg . The Board also works closely with the Manager to develop the Company’s marketing strategy, with the aim of ensuring effective communication with shareholders in respect of the investment mandate and objective. Unlike trading companies, shareholder meetings usually take the form of a meeting with the Investment Manager as opposed to members of the Board. As well as attending regular investor meetings the Investment Manager holds regular discussions with wealth management desks and offices to build on the case for, and understanding of, long-term investment opportunities in the UK smaller companies’ sector. However, the Board is ultimately responsible for communication with shareholders and all substantive matters arising from such communication are referred to the Board. The Manager also coordinates public relations activity, including meetings between the Investment Manager and relevant industry publications to set out their vision for the portfolio strategy and outlook for the UK equity market. The Manager releases the daily NAV and monthly portfolio updates to the market to ensure that investors are kept up to date in respect of performance and other portfolio developments and maintains a website on behalf of the Company that contains relevant information in respect of the Company’s investment mandate and objective. If shareholders wish to raise issues or concerns with the Board, they are welcome to do so at any time. The Chairman is available to meet directly with shareholders periodically to understand their views on governance and the Company’s performance where they wish to do so. He may be contacted via the Company Secretary whose details are given on page 132. Impact The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the Company evolve its reporting, aiming to make reports more transparent and understandable. Feedback from all substantive meetings between the Investment Manager and shareholders will be shared with the Board. The Directors will also receive updates from the Company’s broker on any feedback from shareholders, as well as share trading activity, share price performance and an update from the Investment Manager. The Investment Manager attended professional investor meetings and held discussions with a range of different wealth management desks and offices in respect of the Company during the year under review. Investors were also impressed with the wide pool of resource available through BlackRock’s Emerging Companies team, and the rigorous ‘bottom-up’ investment approach. Responsible Investing Issue Consideration of material Environmental, Social and Governance (ESG) information and sustainability risks are considered when making investment decisions. Sustain a bility-related risks, including climate-related risks, are becoming a defining factor in companies’ long-term prospects across the investment spectrum, with significant and lasting implications for economic growth and prosperity. Section 172 statement continued Section 2: Strategic report 45 Engagement The Board believes that responsible investment and sustainability are integral to the longer-term delivery of the Company’s success. The Board works closely with the Investment Manager to regularly review the Company’s performance, investment strategy and underlying policies to ensure that the Company’s investment objective continues to be met in an effective, responsible and sustainable way in the interests of shareholders and future investors. The Investment Manager’s approach to the consideration of ESG factors in respect of the Company’s information and consideration of sustainability risks are kept under review by the Board. The Investment Manager reports to the Board in respect of its consideration of sustainability risks and these are integrated into the investment process; a summary of BlackRock’s approach to ESG integration is set out on page 47. The Investment Manager’s engagement and voting policy is detailed on pages 48 and 49. Impact The Investment Manager believes there is often a positive correlation between good ESG practices on the part of portfolio companies and investment performance. Details of the Company’s performance in the year are given in the Chairman’s Statement on page 11 and the Performance Record on page 5. BlackRock structures its approach around three main pillars: investment processes, material insights and transparency. These pillars underpin ESG integration at BlackRock and they are supported by equipping BlackRock employees with investment relevant E, S and/or G data, tools, and education. More information in respect of BlackRock’s approach to ESG integration can be found at https://www.blackrock.com/ corporate/literature/publication/blk-esg-investment-statement-web.pdf . BlackRock’s reporting and disclosures In terms of its own reporting, BlackRock believes that the Sustainability Accounting Standards Board provides a clear set of standards for reporting sustainability information across a wide range of issues, from labour practices to data privacy to business ethics. For evaluating and reporting climate-related risks, as well as the related governance issues that are essential to managing them, the Task Force on Climate-related Financial Disclosures (TCFD) provides a valuable framework. BlackRock recognises that reporting to these standards requires significant time, analysis, and effort. BlackRock’s 2023 TCFD report can be found at www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/tcfd-report -2023- blkinc.pdf . Future prospects The Board’s main focus is on the achievement of capital growth and the future of the Company is dependent upon the success of the investment strategy. The outlook for the Company is discussed in the Chairman’s Statement on page 14 and in the Investment Manager’s Report on pages 16 to 20. Social, community and human rights issues As an investment trust, the Company has no direct social or community responsibilities. However, the Company believes that it is in shareholders’ interests to consider human rights issues, and environmental, social and governance factors when selecting and retaining investments. Details of the Company’s approach to socially responsible investment is set out above and on page 47. Modern Slavery Act As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. The Board considers the Company’s supply chain, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter. 46 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Directors, gender representation and employees The Directors of the Company on 30 November 2024, all of whom held office throughout the year, are set out on pages 53 to 55. The Board recognises the importance of having a range of experienced Directors who, both individually and collectively, possess a suitable balance of skills, knowledge, independence and diversity to enable it to fulfil its obligations. As at 30 November 2024, the Board consisted of two men and three women, resulting in 60% female representation. Following the appointment of Mr Will on 1 January 2025 the ratio was 50:50. The Company has no employees, and all of its Directors are non-executive. Therefore, there are no disclosures to be made in respect of employees. The Chairman’s Statement on pages 10 to 15 and the Investment Manager’s Report on pages 16 to 20 form part of this Strategic Report. The Strategic Report was approved by the Board at its meeting on 19 February 2025. By order of the Board KEVIN MAYGER for and on behalf of BlackRock Investment Management (UK) Limited COMPANY SECRETARY 19 February 2025 Section 172 statement continued Section 2: Strategic report 47 Environmental, Social and Governance (ESG) The Board’s approach to ESG Environmental, Social and Governance (ESG) issues can present both opportunities and risks to long-term investment performance. The Company does not have an ESG mandate (and accordingly does not have an ESG or impact focused investment strategy and has not adopted any exclusionary screens) but our Investment Manager does take ESG factors into account as part of the investment process as these elements can significantly influence a company’s valuation. These ESG issues are a key focus of the Board, and the Board is committed to a diligent oversight of the activities of the Manager in these areas. The Board is aware of the Company’s long-term underweight position in extractive industries, where innovative and disruptive business models are rare and the non-participation in some capital raises where ESG factors have been a concern. The Board believes multi-year engagement and dialogue with management is, in most cases, the most constructive way of building understanding of an investee company’s approach to addressing material business risks and opportunities. This is particularly true for our Manager given the extent of BlackRock’s shareholder engagement. Further detail of how our Manager has voted and engaged with the companies in our portfolio can be found on pages 48 and 49. As well as the understanding afforded by its sheer scale, the Board believes that BlackRock is well placed as Manager to fulfil these requirements due to its approach to ESG integration and its application of this to the Company’s investment processes, the emphasis it places on sustainability, its investment stewardship approach and its position in the industry as one of the largest suppliers of sustainable investment products in the global market. More information on BlackRock’s approach to investment stewardship is set out on page 48. BlackRock’s approach to ESG integration BlackRock believes that sustainability risks, including climate risks, are investment risks. As a fiduciary, BlackRock manages material risks and opportunities that could impact portfolios. Sustainability can be a driver of investment risks and opportunities, and BlackRock incorporates them in its firm wide processes when they are material. This in turn (in BlackRock’s view) is likely to drive a significant reallocation of capital away from traditional carbon intensive industries over the next decade. BlackRock believes that carbon-intensive companies will play an integral role in unlocking the full potential of the energy transition, and to do this, they must be prepared to adapt, innovate and pivot their strategies towards a low carbon economy. BlackRock incorporates into its firmwide processes relevant, financially material information, including financially material data and information related to ESG. BlackRock’s investment view is that doing so can provide better risk-adjusted returns for its clients over the long term. BlackRock’s clients have a wide range of perspectives on a variety of issues and investment themes, including sustainable and low-carbon transition investing. Given the wide range of unique and varied investment objectives sought by its clients, BlackRock’s investment teams have a range of approaches to considering financially material E, S, and/or G factors. As with other investment risks and opportunities, the financial materiality of E, S and/or G considerations may vary by issuer, sector, product, mandate, and time horizon. Depending on the investment approach, this financially material E, S and/or G data or information may help inform due diligence, portfolio or index construction, and/or monitoring processes of client portfolios, as well as BlackRock’s approach to risk management. BlackRock’s ESG integration framework is built upon its history as a firm founded on the principle of thorough and thoughtful risk management. Aladdin, BlackRock’s core risk management and investment technology platform, allows investors to leverage financially material E, S and/or G data or information as well as the combined experience of BlackRock’s investment teams to effectively identify investment opportunities and investment risks. BlackRock’s heritage in risk management combined with the strength of the Aladdin platform enables BlackRock’s approach to ESG integration. 48 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 The BlackRock Investment Stewardship (BIS) team takes a long-term approach in its stewardship efforts, reflecting the investment horizons of the majority of BlackRock’s clients ^ . BlackRock Investment Stewardship’s activities include engaging with companies, proxy voting on clients’ behalf, contributing to industry dialogue on stewardship, and reporting on its activities. These activities are the main components of the stewardship toolkit and are performed all year long. BlackRock Investment Stewardship aims to take a globally consistent approach, while recognizing the unique markets and sectors in which companies operate. BIS benchmark policies BIS benchmark policies, and the vote decisions made consistent with these policies, take a financial materiality-based approach and are focused solely on advancing clients’ financial interests. BIS takes a globally consistent approach, while recognizing the unique markets and sectors in which companies operate. More detail in respect of BIS reporting can be found at: https://www.blackrock.com/corporate/insights/investment-stewardship/blackrock-investment-stewardship . BIS Global Principles The BIS Global Principles reflect BIS’ views on certain globally applicable fundamental elements of governance that contribute to a company’s ability to create long-term financial value, anchored in transparency and accountability. The BIS Global Principles are available here: w ww.blackrock.com/corporate/literature/fact-sheet/blkresponsible-investment-engprinciples- global.pdf . BIS regional voting guidelines The BIS regional voting guidelines provide context on how the Principles inform BIS’ voting decisions in relation to common ballot items for shareholder meetings in those markets. BIS’ regional voting guidelines are available on its website: https:// www.blackrock.com/corporate/insights/investment-stewardship/blackrock-investment-stewardship#stewardship-policies . BlackRock Throgmorton Trust plc – engagement with portfolio companies in 2024 The BlackRock portfolio management team has excellent access to company management teams and undertakes about 700 company meetings each year to identify high quality, cash generative businesses with strong management teams that are able to generate growth in a more challenging economic environment. In addition, BlackRock also has a separate Investment Stewardship (BIS) team that is responsible for engaging with investee companies, proxy voting on the behalf of clients when authorised, contributing to industry dialogue on stewardship and reporting on its activities^. For the year to 30 November 2024, BIS held 37 company engagements on a range of governance issues. Additional information is set out in the table and charts below and on page 49 as well as the key engagement themes for the meetings held in respect of the Company’s portfolio holdings. As at 30 November 2024 As at 30 November 2023 Number of engagements held 37 68 Number of companies met 28 54 % of equity investments covered 30.6 52.9 Shareholder meetings voted at 108 103 Number of proposals voted on 1708 1518 Number of votes against management resolutions 30 42 % of total votes represented by votes against management 1.8 2.8 BlackRock Investment Stewardship Section 2: Strategic report 49 0 25 50 75 100 30% 32% 97% 0 10 20 30 40 50 60 51% 46% 35% 30% 19% 19% Engagement themes 1 Environmental Social Governance Top 6 Engagement Topics 1 Remuneration Board composition and effectiveness Corporate strategy Climate risk management Board Gender Diversity Business Oversight/Risk Management * Engagements include multiple company meetings during the year with the same company. Most engagement conversations cover multiple topics and are based on BlackRock vote guidelines and BlackRock’s engagement priorities can be found at: www.blackrock. com/corporate/about-us/investment-stewardship#engagement-priorities . Percentages reflect the number of meetings at which a particular topic is discussed as a percentage of the total meetings held; as more than one topic is discussed at each meeting the total will not add up to 100%. 1 Sources: ISS Proxy Exchange and BlackRock Investment Stewardship. ^ Starting in 2025, BlackRock’s stewardship policies are developed and implemented by two independent, specialist teams, BlackRock Investment Stewardship (BIS) and BlackRock Active Investment Stewardship (BAIS). While the two teams operate independently, their general approach is grounded in widely recognized norms of corporate governance and shareholder rights and responsibilities. BIS is responsible for engagement and voting in relation to clients’ assets managed by certain index equity portfolio managers. Approximately 90% of BlackRock clients’ public equity assets under management are held in index strategies, as of 30 September, 2024. BAIS partners with BlackRock’s active investment teams on company engagement and voting in relation to their holdings. Index or active, BlackRock’s stewardship teams, and all of its stewardship efforts across the firm, are focused on making decisions consistent with clients’ stated objectives. More information is available on BlackRock’s website: https://www.blackrock.com/ corporate/insights/investment-stewardship . 50 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Section 3: Governance 51 Governance Section 3: Governance 51 Business communications specialist Gamma was a top performer during the year. PHOTO COURTESY OF GAMMA COMMUNICATIONS 52 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Governance structure Responsibility for good governance lies with the Board. The governance framework of the Company reﬂects the fact that, as an investment company, the Company has no employees, the Directors are all non-executive and the investment management and administration functions are outsourced to the Manager and other service providers. The Board 1 6 scheduled meetings per annum Membership: Six Non-executive Directors (NED), all independent of the Investment Manager Chairman : Christopher Samuel Key objectives: • To determine and review the investment policy, strategy and parameters; • To provide leadership within a framework of prudent and effective controls which enable risk to be assessed and managed, and the Company’s assets to be safeguarded; • To challenge constructively and scrutinise performance of all outsourced activities; and • To establish the Company’s remuneration policy and keep it under review. Audit Committee 2 3 scheduled meetings per annum Membership: All NEDs Chairman: Angela Lane Key objectives: • To oversee financial reporting; • To review the reporting of the auditor and the effectiveness of the audit; • To consider the adequacy of the control environment and to review the Company’s risk register; and • To review the performance of the third party service providers. Management Engagement Committee 1 1 scheduled meeting per annum Membership: All NEDs Chairman: Christopher Samuel Key objectives: • To be responsible for the annual review of the performance of the Manager and Investment Manager; and • To ensure that the provisions of the management agreement follow industry practice, remain competitive and are in the best interest of shareholders. Nomination Committee 1 1 scheduled meeting per annum Membership: All NEDs Chairman: Christopher Samuel Key objectives: • To make recommendations for any new Board appointments; • To review regularly the structure, size and composition of the Board; and • To consider and make recommendations to the Board on matters of succession planning. Remuneration Committee 1 1 scheduled meeting per annum Membership: All NEDs Chairman: Nigel Burton Key objectives: • To make recommendations on remuneration of Directors; and • To determine and recommend to the Board a policy on Directors’ remuneration. 1 As well as the six scheduled Board meetings, the Board and its Committees also held several ad-hoc meetings during the year. 2 Terms of reference for the committee are available at www.blackrock.com/uk/thrg . * The Committee has considered developing best practice around the number of times the audit committee of a FTSE 250 company should meet each year and has concluded that three meetings is appropriate. The Committee believes that it is not the number of meetings held that determines its effectiveness, it is the robustness of the debate and challenge, and the scope, timeliness and quality of the information which the committee considers. A M N R 52 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Section 3: Governance 53 Directors’ biographies Christopher Samuel Appointed 1 June 2016 Chairman A M N R Christopher was Chief Executive of Ignis Asset Management from 2009 until its sale to Standard Life Investments in 2014. He was previously Chief Operating Officer at Gartmore and Hill Samuel Asset Management and a Partner at Cambridge Place Investment Management. He is currently a Non-executive Director of Scottish Mortgage Investment Trust plc and Quilter plc 1 . He was formerly the Chairman of JPMorgan Japanese Investment Trust plc and a Non- executive Director of Alliance Trust plc, UIL Limited and its subsidiary UIL Finance Limited. He qualified as a Chartered Accountant with KPMG. Attendance record: Board: 6/6 Audit Committee: 3/3 Management Engagement Committee: 1/1 Nomination Committee: 1/1 Remuneration Committee: 1/1 None of the Directors has a service contract with the Company. The terms of their appointment are detailed in a letter sent to them when they join the Board. These letters are available for inspection at the registered office of the Company and will be available at the Annual General Meeting. 1 He is also a Non-executive Director of Quilter plc’s subsidaries: Quilter Financial Planning, Quilter Investment Platform Limited and Quilter Life & Pensions Limited. The Board meetings for the Quilter plc subsidiaries are held at the same time and the role is considerably less onerous than that of a listed company. The Board has specifically considered the time commitment of the Chairman and is satisfied that he has sufficient time to effectively discharge his role and obligations to the Company. Section 3: Governance 53 James Will Appointed 1 January 2025 Non-executive Director (Chair Designate) A M N R James is an experienced Chair and non-executive director with an extensive knowledge of the investment company sector. James is currently a non-executive Director of Invesco Asia Trust plc (to be renamed Invesco Asia Dragon Trust plc) and JP Morgan European Discovery Trust plc. James is also the Senior Independent Director of Herald Investment Trust plc (although he is due to retire from the Board at its AGM in April 2025). James previously held the roles of Chairman of The Scottish Investment Trust plc and of Asia Dragon Trust plc and was a non-executive Director of JP Morgan Global Growth and Income plc. James was until 2014 Chairman of Scottish law firm Shepherd and Wedderburn LLP where he was a senior corporate partner heading its financial sector practice. He has experience of working in a wide range of industry sectors including financial services, technology, energy and life sciences. Attendance record: N/a 54 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Angela Lane Appointed 10 June 2020 Chairman of the Audit Committee A M N R Angela previously spent 18 years working in private equity at 3i, becoming a partner in 3i's Growth Capital business managing the UK portfolio. Since 2007, Angela has held several non-executive and advisory roles for small and medium capitalised companies across a range of industries including business services, healthcare, travel, media, consumer goods and infrastructure. She is currently a Non-executive Director and Chairman of the Audit Committee of Pacific Horizon Investment Trust plc, and a Non-executive Director and Chairman of the Audit Committee of Seraphim Space Investment Trust plc. She is a Fellow of the Institute of Chartered Accountants in England and Wales. Attendance record: Board: 6/6 Audit Committee: 3/3 Management Engagement Committee: 1/1 Nomination Committee: 1/1 Remuneration Committee: 1/1 None of the Directors has a service contract with the Company. The terms of their appointment are detailed in a letter sent to them when they join the Board. These letters are available for inspection at the registered office of the Company and will be available at the Annual General Meeting. Directors’ biographies continued 54 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Louise Nash Appointed 21 March 2019 Senior Independent Director A M N R Louise was a UK Small and Mid-Cap fund manager, firstly at Cazenove Capital and latterly at M&G Investments which she left in 2015. She now works for family wine business Höpler and also acts as a consultant to JLC Investor Relations. Louise was previously a Non-executive Director of Stockdale Securities. Attendance record: Board: 6/6 Audit Committee: 3/3 Management and Engagement Committee: 1/1 Nomination Committee: 1/1 Remuneration Committee: 1/1 Section 3: Governance 55 None of the Directors has a service contract with the Company. The terms of their appointment are detailed in a letter sent to them when they join the Board. These letters are available for inspection at the registered office of the Company and will be available at the Annual General Meeting. Merryn Somerset Webb Appointed 24 March 2021 Non-executive Director A M N R Merryn has significant experience of financial matters through her role as an Editor at large for Bloomberg Opinion. She writes extensively on personal finance and features regularly on both radio and television. Merryn brings valuable investment trust specific experience. She is currently a Non-executive Director of Schroder Japan Trust plc and was formerly a Non-executive Director of Baillie Gifford Shin Nippon PLC, Murray Income Investment Trust plc and Netwealth Investments Limited. Attendance record: Board: 6/6 Audit Committee: 3/3 Management Engagement Committee: 1/1 Nomination Committee: 1/1 Remuneration Committee: 1/1 Section 3: Governance 55 Nigel Burton Appointed 21 December 2020 Non-executive Director Chairman of the Remuneration Committee A M N R Nigel spent over 14 years as an investment banker at leading City institutions including UBS Warburg and Deutsche Bank, including as the Managing Director responsible for the energy and utilities sector. He then spent 15 years as Chief Financial Officer or Chief Executive Officer of a number of private and public companies. Nigel is currently a Non-executive Director of AIM listed companies Microsaic Systems plc, eEnergy Group plc and Location Sciences Group plc. He was formerly a Non-executive Director of Mobile Streams plc, Digitalbox plc, Corcel plc, Modern Water plc, Alexander Mining plc and Chairman of Remote Monitored Systems plc. Attendance record: Board: 6/6 Audit Committee: 3/3 Management Engagement Committee: 1/1 Nomination Committee: 1/1 Remuneration Committee: 1/1 56 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Introduction Corporate governance is one of the processes by which the Board seeks to safeguard shareholders’ interests and protect and enhance shareholder value. Shareholders hold the Directors responsible for the stewardship of the Company, delegating authority and responsibility to the Directors to manage the Company on their behalf and holding them accountable for its performance. The Board is ultimately responsible for framing and executing the Company’s strategy and for closely monitoring risks. We aim to run the Company in a manner which is responsible and consistent with our belief in honesty, transparency and accountability. In our view, good governance means managing the business well and engaging effectively with investors. We consider the practice of good governance to be an integral part of the way we manage the Company, and we are committed to maintaining high standards of financial reporting, transparency and business integrity. As a UK-listed investment trust company our principal reporting obligation is driven by the UK Corporate Governance Code (the UK Code). However, as listed investment trust companies differ in many ways from other listed companies, the Association of Investment Companies has drawn up its own set of guidelines, the AIC Code of Corporate Governance (the AIC Code), which addresses the governance issues relevant to investment companies and meets the approval of the Financial Reporting Council. The UK Code is available from the Financial Reporting Council’s website at frc.org.uk. The AIC Code is available from the Association of Investment Companies at www.theaic.co.uk . This report, which forms part of the Directors’ Report, explains how the Board deals with its responsibility, authority and accountability. Compliance The Board has made the appropriate disclosures in this report to ensure that the Company meets its continuing obligations. It should be noted that, as an investment trust, most of the Company’s day-to-day responsibilities are delegated to third party service providers, the Company has no employees and the Directors are all non-executives, therefore not all the provisions of the UK Code are directly applicable to the Company. The Board considers that the Company has complied with the recommendations of the AIC Code and the provisions contained within the UK Code that are relevant to the Company throughout the accounting period, except for those relating to: • the role of the chief executive; • executive directors’ remuneration; and • the need for an internal audit function. For the reasons set out in the AIC Guide, and explained in the UK Code, the Board considers these provisions are not relevant to the position of the Company, being an externally managed investment company with no executive employees and, in relation to internal audit function, in view of BlackRock having an internal audit function. Information on how the Company has applied the principles of the AIC Code and the UK Code is set out below. The Board Board composition As at 30 November 2024, the Board consisted of five Non-executive Directors. As at the date of this report there are now six Non- executive Directors, all of whom are independent of the Company’s Manager. The provision of the UK Corporate Governance Code which relates to the combination of the roles of the chairman and chief executive does not apply as the Company has no executive directors. The Directors’ biographies, on pages 53 to 55, demonstrate a breadth of investment knowledge, business and financial experience relevant to the Company’s business which enables the Board to provide effective strategic leadership and proper governance of the Company. Details of the Chairman’s other significant time commitments can also be found on page 53. Corporate governance statement Section 3: Governance 57 Board independence and tenure The Board’s independence, including that of the Chairman, has been considered and all of the Directors are deemed to be independent in character and have no relationships or circumstances which are likely to affect their judgement. The Board subscribes to the view expressed in the AIC Code that long-serving Directors should not be prevented from forming part of an independent majority. It does not consider that the length of tenure, in isolation, reduces a Director’s ability to act independently. The Board’s policy on tenure is that continuity and experience add significantly to the strength of the Board and, as such, no formal limit on the overall length of service of any of the Company’s Directors has been imposed, although the Board believes in the merits of an ongoing and progressive refreshment of its composition. Succession planning The Directors support a planned and progressive renewing of the Board. The Board’s tenure and succession policy seeks to ensure that the Board remains well balanced at all times through the application of a formal succession plan, seeking to identify and appoint new Directors, as required, who possess a range of skills, knowledge and experience which is aligned to the activities of the Company. Directors must also be able to demonstrate sufficient commitment to the Company, including the ability to commit sufficient time to effectively discharge their duties. Overboarding The Board is cognisant of the concept of “overboarding” and has considered the time commitment required by the Directors’ other roles, taking into account their nature and complexity. The Board does not believe that any of the Directors are currently overboarded. The Board reviews this information annually to ensure all Directors have sufficient capacity to carry out their role effectively. Further information on how the Board satisfies itself that Directors have sufficient time to effectively discharge their role is set out on page 66. Board Diversity While the Board does not have a formal policy on diversity, it recognises the benefits at Board level and believes that Directors should have a mix of different skills, experience, backgrounds, ethnicity, gender and other characteristics. It has therefore agreed to comply with best practice and applicable regulation in respect of diversity, including gender and ethnicity. A broad range of factors are taken into account when setting an appointment brief and during the search and selection process and have been applied during the recruitment and that all Board appointments must be made on merit, in the context of the skills, experience, independence and knowledge which the Board as a whole requires to be effective. As at 30 November 2024 the Board had a 40:60 male to female gender ratio, in accordance with relevant regulation and best practice, and will continue to consider other diversity characteristics, such as age, ethnicity, gender, disability, educational or professional background when appraising Board composition. Following a search and selection process undertaken by our Nomination Committee, and led by our Senior Independent Director, the Board subsequently resolved to appoint Mr James Will on 1 January 2025. As a result of his appointment the gender ratio of the Board is now 50:50. Up until 9 August 2024, when one of our Directors stepped down from the Board, the Board had complied with the recommendations of the Parker Review in respect of board diversity and the recent changes to the FCA’s Listing Rules which set new diversity targets and associated disclosure requirements for UK companies listed on the premium and standard segment of the London Stock Exchange. Listing Rule 9.8.6R (9) requires listed companies to include a statement in their annual reports and accounts in respect of certain targets on board diversity, or if those new targets have not been met to disclose the reasons for this. Mr Suarez stepped down from the Board at relatively short notice while the search for a new Chair was underway. The Board decided to complete the Chair search before seeking to identify a replacement for Mr Suarez. It is the Board’s intention to replace this diversity characteristic by the end of 2025 and this has been incorporated into the Board’s succession plan. The composition and diversity of the Board at the financial year end can be found in the disclosure table which follows below: Gender Number of Board members Percentage of Board Number of senior roles held 1 Men 2 40% 1 Women 3 60% 2 Ethnicity 2 White British (or any other white background) 5 100% 3 1 A senior position is defined as the role of Chairman, Audit Committee Chairman or Senior Independent Director. 2 Categorisation of ethnicity is stated in accordance with the Office of National Statistics classification. 58 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Directors’ induction and training When a new Director is appointed to the Board, he or she is provided with all the relevant information regarding the Company and their duties and responsibilities as a Director. In addition, a new Director will participate in a comprehensive induction day which includes presentations from representatives of the Manager, including the Investment Manager, Legal & Compliance, Risk & Quantitative Analysis, Internal Audit and the Company Secretary, whereby he or she will become familiar with the various processes which are considered necessary for the performance of their duties and responsibilities. The induction session is structured to ensure new Directors can ask questions and request clarification where required. The Company’s policy is to encourage Directors to keep up to date and attend training courses on matters which are directly relevant to their involvement with the Company. The Directors also receive regular briefings from, amongst others, the Auditor and the Company Secretary regarding any proposed developments or changes in law or regulations that could affect themselves or the Company. Directors’ liability insurance The Company has maintained appropriate Directors’ Liability Insurance cover throughout the year, which continues to be in force as at the date of this report. The Board’s responsibilities The Board is responsible to shareholders for the effective stewardship of the Company. A formal schedule of matters reserved for the decision of the Board has been adopted. Investment policy and strategy are determined by the Board. It is also responsible for the gearing policy, dividend policy, public documents, such as the Annual Report and Financial Statements, the buy-back policy and corporate governance matters. In order to enable them to discharge their responsibilities effectively the Board has full and timely access to relevant information. The Board currently meets at least six times a year to review investments, performance, financial reports and other reports of a strategic nature. Board or Board Committee meetings are also held on an ad hoc basis to consider issues as they arise. Key representatives of the Manager and/or Investment Manager attend each meeting and between these meetings there is regular contact with the Manager and Investment Manager. The Directors have direct access to company secretarial advice and the services of the Manager, through a nominated representative, who is responsible to the Board for ensuring that Board and Committee procedures are followed and that the Company complies with applicable rules and regulations. Where necessary, in the furtherance of their duties, the Directors may seek independent professional advice at the expense of the Company. Performance evaluation In order to review the effectiveness of the Board, its Committees and the individual Directors, the Board carries out an annual appraisal process. As recommended by the UK Code, and as a constituent of the FTSE 350, the annual evaluation for the year ended 30 November 2024 has been carried out with the assistance of an independent third party, Lintstock. The performance evaluation took the form of electronic performance evaluation questionnaires. The evaluation looked at several key areas, including the performance of the Board and its Committees, the effectiveness of the Board’s oversight of the Investment Manager, investment strategy and performance, risk management, external relations and succession planning. The responses were then collated, analysed and discussed by the Chairman and Senior Independent Director before being presented to the Board for its consideration. The performance of the Chairman was also evaluated by our external appraiser and reported to our Senior Independent Director, who in turn shared the findings with the Board. The appraisal process is considered to be constructive in terms of identifying areas in which the functioning and performance of the Board and its Committees and the contribution of individual Directors could be improved, as well as building on and developing individual and collective strengths. The overall conclusion from the evaluation process was that the Board and its Committees were functioning effectively. Corporate governance statement continued Section 3: Governance 59 Delegation of responsibilities The Board has delegated the following areas of responsibility: Management and administration The management of the investment portfolio and the administration of the Company have been contractually delegated to BlackRock Fund Managers Limited (BFM or the Manager) as the Company’s AIFM, and BFM (with the permission of the Company) has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited (BIM (UK) or the Investment Manager). The contractual arrangements with the Manager are summarised on pages 63 and 64. The Manager, operating under guidelines determined by the Board, has responsibility for the decisions relating to the day-to-day running of the Company and is accountable to the Board for the investment, financial and operating performance of the Company. The Manager has delegated the fund accounting and administration services to The Bank of New York Mellon (International) Limited. The review of the Manager’s performance is an ongoing duty and responsibility of the Board which is carried out at every Board Meeting. In addition, a formal review is undertaken annually, details of which are set out on page 58 of the Directors’ Report. The assets of the Company have been entrusted to the Depositary for safekeeping. The Company’s appointed Depositary is The Bank of New York Mellon (International) Limited. The address at which the business is conducted is given on page 132. The Board has delegated the exercise of voting rights attaching to the securities held in the portfolio to the Investment Manager. Details of the Investment Manager’s approach to voting is set out on page 48. Committees of the Board The Board has appointed a number of committees as set out below and on page 52. Copies of the terms of reference of each committee are available on request from the Company’s registered office, on the BlackRock website at www.blackrock.com/uk/ thrg and at each Annual General Meeting. Audit Committee The Audit Committee, is chaired by Angela Lane and consists of all the Directors of the Company. Further details are provided in the Report of the Audit Committee on pages 78 to 82. Nomination Committee The Nomination Committee, which comprises all the Directors, is chaired by Christopher Samuel. The role of the Committee is to review Board structure, size and composition, the balance of knowledge, experience and skills range and to consider succession planning and tenure policy. Appointments of new Directors will be made on a formalised basis, with the Committee agreeing the selection criteria and the method of selection, recruitment and appointment. Board diversity, including gender, ethnicity and other diversity characteristics, will be taken into account in establishing the criteria. The services of an external search consultant may be used to identify potential candidates. The Committee meets at least once a year and more often if required. Management Engagement Committee The Management Engagement Committee is chaired by Christopher Samuel and comprises all the Directors of the Company. The Committee annually reviews the appropriateness of the Manager’s continued appointment, together with the terms and conditions thereof. In addition to reviewing performance, the Manager is also assessed in relation to the quality of the fund management and administration teams, commitment to their investment trust business, strength of relationships with shareholders and the appropriateness of the management contract, including fees. 60 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Remuneration Committee The Remuneration Committee is currently chaired by Nigel Burton. The Remuneration Committee has delegated responsibility for determining and recommending to the Board a policy for Directors’ remuneration. The Committee reports and makes recommendations to the Board on all matters of remuneration. Further details are provided in the Report of the Remuneration Committee on pages 72 to 75. Internal controls The Board is responsible for ensuring the establishment and maintenance of the Company’s system of internal controls and for monitoring their adequacy and effectiveness, for ensuring that financial information published or used within the business is reliable, and for regularly monitoring compliance with regulations governing the operation of investment companies. The Board reviews the effectiveness of the internal control systems on an ongoing basis to identify, evaluate and manage the Company’s significant risks. As part of that process, there are procedures designed to capture and evaluate any failings or weaknesses and should a matter be categorised by the Board as significant, procedures exist to ensure that necessary action is taken to remedy the failing. The Board is not aware of any significant failings or weaknesses arising during the year under review. Control of the risks identified, covering financial, operational, compliance and risk management, is embedded in the operations of the service providers as delegated by the Company. There is a monitoring and reporting process to review these controls, which has been in place throughout the year under review and up to the date of this report, carried out by the Manager’s internal audit department. This accords with the Financial Reporting Council’s: Guidance on Risk Management and Internal Control. The Company’s risk register sets out the risks relevant to the Company and describes, where relevant, the internal controls that are in place at the AIFM, the Investment Manager and other third party service providers to mitigate these risks. The Audit Committee formally reviews this register on a semi-annual basis and BFM, as the Company’s AIFM, reports on any significant issues that have been identified in the period. The Depositary also reviews the control processes in place at the Custodian, the Fund Accountant and the AIFM and reports formally to the Committee twice yearly. Both the AIFM and the Depositary will escalate issues and report to the Committee outside of these meetings on an ad hoc basis to the extent this is required. The Committee also receives summaries of the annual Service Organisation Control (SOC 1) reports respectively from BlackRock and The Bank of New York Mellon on the internal controls of their respective operations, together with the opinion of their reporting accountants. The Board recognises that these control systems can only be designed to manage rather than to eliminate the risk of failure to achieve business objectives, and to provide reasonable, but not absolute, assurance against material misstatement or loss, and relies on the operating controls established by the Manager and the Depositary. The Manager prepares revenue forecasts and management accounts which allow the Board to assess the Company’s activities and review its performance at each Board meeting. The Board and the Manager have agreed clearly defined investment criteria and have specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are submitted to the Board at each meeting. Internal audit The Company does not have its own internal audit function, as all the administration is delegated to the Manager whose internal audit department reports to the Company’s Audit Committee on a semi-annual basis on the results of testing performed in relation to the Manager’s internal control processes. The Board monitors the controls in place through the Manager’s internal audit department and considers that there is currently no need for the Company to have its own internal audit function although this matter is kept under review. Financial reporting The production of the Annual Report and Financial Statements is outsourced to the Fund Administrator and is reviewed and approved by the Directors. The Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements is set out on pages 83 and 84, the Independent Auditor’s Report on pages 88 to 93 and the Statement of Going Concern on page 65. Corporate governance statement continued Section 3: Governance 61 Bribery prevention policy The provision of bribes of any nature to third parties in order to gain a commercial advantage is prohibited and is a criminal offence. The Company has a zero-tolerance policy towards bribery and a commitment to carry out business fairly, honestly and openly. The Board takes its responsibility to prevent bribery very seriously, and BlackRock has anti-bribery policies and procedures in place which are high level, proportionate and risk based, and which are periodically reviewed by the Board. The Company’s other service providers have been contacted in respect of their anti-bribery policies and where necessary, contractual changes are made to existing agreements in respect of anti-bribery provisions. Criminal Finances Act 2017 The Company has a commitment to zero-tolerance towards the criminal facilitation of tax evasion. GDPR Data protection rights were harmonised across the European Union following the implementation of the General Data Protection Regulation (GDPR) on 25 May 2018. The Board has sought and received assurances from its third party service providers that they have taken appropriate steps to ensure compliance with GDPR. Communication with shareholders All shareholders have the opportunity to attend and vote at the AGM. The Notice of the AGM sets out the business of the Meeting and any special business is explained in the Directors’ Report. Separate resolutions are proposed for substantive issues. The Chairman also writes to shareholders each year to invite them to the AGM. In addition, in recognition of the importance of seeking to reach all shareholders, particularly those who purchase their shares via an intermediary, the Company has, as it did at this time last year, utilised the S.793 process with the objective of communicating with the Company’s broad shareholder base. The Board believes that it is important that as many shareholders as possible have the opportunity to attend the AGM and, importantly, that they are encouraged to exercise their votes. Regular updates on performance are available to shareholders on the website. The Investment Manager will review the Company’s activities at the AGM, where the Directors, including the Chairman of the Board and the Chairman of the Audit Committee and representatives of the Manager will be available to answer shareholders’ questions. Proxy voting figures are announced to the shareholders at the AGM and will be made available on the Manager’s website shortly after the meeting. In accordance with provision 4 of the 2018 UK Corporate Governance Code, when, in the opinion of the Board, a significant proportion of votes have been cast against a resolution at any general meeting, the Board will explain, when announcing the results of voting, what actions it intends to take to understand the reasons behind the vote result. The Company’s willingness to enter into discussions with shareholders is demonstrated by a programme of presentations made by the Investment Manager. The Board discusses with the Investment Manager at each Board meeting any feedback from meetings with shareholders, and it also receives reports from its corporate broker. The Chairman and Senior Independent Director also meet directly with shareholders providing a forum for canvassing their views and enabling the Board to be aware of any issues of concern. In addition, as part of a strategic review undertaken at the Board’s request, our Broker and Financial Adviser, Winterflood, met with several of our top ten shareholders, seeking their views and feedback on a range of issues. There is also a clear channel of communication between the Board and the Company’s shareholders via the Company Secretary and the Board encourages shareholders to utilise this. The Company Secretary has no express authority to respond to enquiries addressed to the Board and all communication, other than junk mail, is redirected to the Chairman. There is a section within this report entitled “Additional Information – Shareholder Information”, on pages 126 to 129, which provides an overview of useful information available to shareholders. The Company’s financial statements, regular fact sheets and other information, are also published on the BlackRock website at www.blackrock.com/uk/thrg . The work undertaken by the Auditor does not involve consideration of the maintenance and integrity of the website and, accordingly, the Auditor accepts no responsibility for any changes that have occurred to the financial statements since they were initially presented on the website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in their jurisdiction. 62 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Packaged Retail and Insurance-Based Investment Products (PRIIPs) Regulation (The Regulation) The Regulation (as onshored in the UK and amended) requires that anyone manufacturing, advising on, or selling a PRIIP to a retail investor in the UK must comply with the Regulation. Shares issued by investment trusts fall into scope of the Regulation and under the PRIIPs framework they must disclose costs in the same way as open-ended funds. However, on 19 September 2024, the Government announced that it would lay legislation to exempt listed investment trusts from the current PRIIPs Regulation, as well as making other necessary amendments to other EU assimilated law, in response to concerns raised by industry representatives regarding the suitability of the current regime. It further clarified that investment trusts would be included within the scope of the future UK retail disclosure framework (the Consumer Composite Investment (CCI) regime) which is intended to better cater for a variety of products, including investment trusts, while still ensuring consumers receive appropriate information to allow them to make meaningful choices between investment opportunities. The FCA will be holding a consultation on its proposed CCI Regulation this autumn and it is anticipated that the earliest this could be enacted is Q2 2025. Following on from this announcement, the FCA confirmed that it would not take supervisory or enforcement action if an investment trust chose not to follow the requirements of the PRIIPs Regulation and associated technical standards, and/or the requirements of Article 50(2)(b) and Article 51 of the MiFID Org Regulation. Notwithstanding the above, investors should be aware that the Company’s AIFM, as PRIIPs manufacturer, continues to prepare a key information document (KID) in respect of the Company. This KID is available, free of charge, to UK retail investors prior to them making any investment decision and is published on BlackRock’s website. The Manager has amended the KID Document for the Company in line with guidance from the Association of Investment Companies (“AIC”), making it clear in the KID that there are no additional costs paid by investors to acquire shares, and disclosing that the Company had an OCF of 0.56% (excluding performance fees) and 0.82% (including performance fees) as at 30 November 2024. The Company is not responsible for the information contained in the KID and investors should note that the procedures for calculating the risks, costs and potential returns are prescribed by the Regulation. The figures in the KID may not reflect the expected returns for the Company and anticipated performance returns cannot be guaranteed. BlackRock Fund Managers Limited as the Company’s AIFM has elected to continue to publish KIDs for the Alternative Investment Funds that it manages at the present time, pending further to the development of the CCI regime. The PRIIPs KID in respect of the Company can be found at: www.blackrock.com/uk/thrg . Disclosure Guidance and Transparency Rules Other information required to be disclosed pursuant to the Disclosure Guidance and Transparency Rules has been placed in the Directors’ Report on pages 63 to 71 because it is information which refers to events that have taken place during the course of the year. By order of the Board CHRISTOPHER SAMUEL Chairman 19 February 2025 Corporate governance statement continued Section 3: Governance 63 The Directors present the Annual Report and Financial Statements of the Company for the year ended 30 November 2024. Status of the Company The Company carries on business as an investment trust. It has been approved by HM Revenue & Customs as an investment trust in accordance with Sections 1158 and 1159 of the Corporation Tax Act 2010, subject to the Company continuing to meet eligibility conditions. The Directors are of the opinion that the Company has conducted its affairs in a manner which will satisfy the conditions for continued approval. The Company is domiciled in the UK as an investment company within the meaning of Section 833 of the Companies Act 2006. It is not a close company and has no employees. As an investment company that is managed and marketed in the United Kingdom, the Company is an Alternative Investment Fund (AIF) falling within the scope of, and subject to the requirements of the Alternative Investment Fund Managers’ Directive (AIFMD) (as implemented and transposed into UK law). The Company is governed by the provisions of the UK Alternative Investment Fund Managers Regulations 2013 (the Regulations) and is required to be authorised by the Financial Conduct Authority (FCA). It must comply with a number of obligations, including the appointment of an Alternative Investment Fund Manager (AIFM) and a depositary to carry out certain functions. The Company must also comply with the Regulations in respect of leverage, outsourcing, conflicts of interest, risk management, valuation, remuneration and capital requirements and must also make additional disclosures to both shareholders and the FCA. Further details are set out on the BlackRock website at www.blackrock.com/uk/thrg , the Regulatory Disclosures section on page 133 and in note 16 of the Notes to the Financial Statements on pages 111 to 122. The Company’s ordinary shares are eligible for inclusion in the Stocks & Shares component of an Individual Savings Account (ISA). Facilitating retail investments The Company currently conducts its affairs so that its shares can be recommended by an Independent Financial Advisor to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investments and intends to continue to do so for the foreseeable future. The shares are excluded from the FCA’s restrictions which apply to non- mainstream pooled investments because they are shares in an investment trust. The Common Reporting Standard Tax legislation under The OECD (Organisation for Economic Co-operation and Development) Common Reporting Standard for Automatic Exchange of Financial Account Information (The Common Reporting Standard) was introduced on 1 January 2016. The legislation requires investment trust companies to provide personal information to HMRC about investors who purchase shares in investment trusts. The Company will have to provide information annually to the local tax authority on the tax residencies of a number of non-UK based certificated shareholders, and corporate entities. The local tax authority to which the information is initially passed may in turn exchange the information with the tax authorities of another country or countries in which the shareholder may be tax resident, where those countries (or tax authorities in those countries) have entered into agreements to exchange financial account information. All new shareholders entered onto the share register, excluding those whose shares are held in CREST, will be sent a certification form for the purposes of collecting this information. Dividends Details of dividends paid and payable are set out in the Chairman’s Statement on page 12. Investment management and administration BlackRock Fund Managers Limited (BFM) was appointed as the Company’s AIFM with effect from 2 July 2014. The management contract is terminable by either party on six months’ notice. BlackRock Investment Management (UK) Limited (BIM (UK)) continues to act as the Company’s Investment Manager under a delegation agreement with BFM. BIM (UK) also acted as the Company Secretary of the Company throughout the year. BFM receives a base management fee of 0.35% of gross assets per annum (calculated on the month end gross assets of the Company, including the economic exposure of the total long and short positions and index futures less current liabilities). Directors’ report 64 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 BFM is also entitled to a performance fee of 15% of Net Asset Value (NAV) total return outperformance of the Benchmark Index measured and annualised on a two-year rolling basis and applied on the average gross assets over two years. The performance fee has an effective cap of circa 0.9% of average gross assets over that period. Outperformance is the amount by which the Fund Return arithmetically exceeds the Benchmark Return. The cap applies as a result of the maximum cap on total management and performance fees of 1.25% of average gross assets over a rolling two-year period. The fee structure also includes a mechanism by which any cumulative previous underperformance versus the Benchmark Index return must be made good before any future performance fee can be generated. Conversely, any outperformance which has not been remunerated as a result of the application of the maximum cap on total fees of 1.25% (as above) may be carried forward solely for the purposes of being applied to net off against any underperformance not yet made good. The performance fee model for the Company operates on a rolling two-year period, with an effective annual cap of circa 0.9% on average gross assets over two years. On the first day of the financial year outperformance from the previous financial year (if any) is carried forward and accrued in the daily NAV released to the London Stock Exchange. For the year ended 30 November 2024, the total accrual of the performance fee for all rolling two year performance periods amounted to £3,607,000 (2023: £2,014,000;), calculated as follows: • For the annualised rolling two-year performance period to 30 November 2024, the Company has outperformed the benchmark by 2.7% as at 30 November 2024. A performance fee of £2,982,000 relating to this performance period has been accrued at the date of this report; and • For the annualised rolling two-year performance period to 30 November 2025, the Company has outperformed the benchmark by 0.6% as at 30 November 2024. A performance fee of £625,000 relating to this performance period has been accrued at the date of this report, which does not become payable until 30 November 2025, subject to the ongoing performance of the Company. The Board believes that the fee structure is appropriately aligned to the Company’s activities, investment objective and shareholder interests. The low base fee minimises the costs borne by shareholders, whilst the performance fee is designed to reward the Manager at a level acceptable to shareholders for the generation of superior performance versus the Benchmark Index. Further details of the management fees are disclosed in note 4 on pages 102 and 103. No penalty on termination of the investment management agreement is payable by the Company in the event that six months’ written notice is given to BFM. There are no provisions relating to payment of fees in lieu of notice. The Company contributes to a focused investment trust sales and marketing initiative operated by BIM (UK) on behalf of the investment trusts under its management. The Company’s contribution to the consortium element of the initiative, which enables the trusts to achieve efficiencies by combining certain sales and marketing activities, represented 0.025% per annum of its net assets (£620.4 million as at 31 December 2024) and this contribution is matched by BIM (UK). For the year ended 30 November 2024, £175,000 including VAT (2023: £149,000 including VAT) has been accrued in respect of these initiatives. The purpose of the programme overall is to ensure effective communication with existing shareholders and to attract new shareholders to the Company. This has the benefit of improving liquidity in the Company’s shares and helps sustain the stock market rating of the Company. BFM and BIM (UK) are subsidiaries of BlackRock, Inc. which is a publicly traded corporation on the New York Stock Exchange and operating as an independent firm. Appointment of the Manager The Board considers the arrangements for the provision of investment management and other services to the Company on an ongoing basis and a formal review is conducted annually. As part of the annual review, the Board considers the quality and continuity of the personnel assigned to handle the Company’s affairs, the investment process and the results achieved to date. The Board believes that the continuing appointment of BFM (the Manager) as AIFM, and the delegation of investment management services to BIM (UK) (the Investment Manager), on the terms disclosed above, is in the interests of shareholders as a whole. The specialist nature of the Company’s investment remit is, in the Board’s view, best served by the Emerging Companies team at BlackRock, which has a proven track record in successfully investing in this sector. Directors’ report continued Section 3: Governance 65 Depositary and Custodian The Company has appointed The Bank of New York Mellon (International) Limited as its Depositary (the Depositary or BNY). Its duties and responsibilities are outlined in the investment fund legislation (as contained in the FCA AIF Rulebook). The main role of the Depositary under the AIFMD is to act as a central custodian with additional duties to monitor the operations of the Company, including monitoring cash flows and ensuring the value of the Company’s shares is calculated appropriately in accordance with the relevant regulations and guidance. The Depositary is also responsible for enquiring into the conduct of the AIFM in each annual accounting period. The Depositary receives a fee payable at 0.0095% of the net assets of the Company. The Company has appointed the Depositary in a tripartite agreement to which BFM as AIFM is also a signatory. The Depositary is also liable for loss of financial instruments held in custody. Under the depositary agreement, custody services in respect of the Company’s assets have been delegated to BNYM which also receives a custody fee payable by the Company at rates depending on the number of trades effected and the location of securities held. Custody fees of £7,000 (2023: £7,000) were paid to BNY. The depositary agreement is subject to 90 days’ notice of termination by any party. Registrar The Company has appointed Computershare Investor Services PLC as its Registrar (the Registrar). The principal duty of the Registrar is the maintenance of the register of shareholders (including registering transfers). It also provides services in relation to any corporate actions, dividend administration, shareholder documentation and compliance with the Common Reporting Standard. The Registrar receives a fixed fee, plus disbursements and VAT. Fees in respect of corporate actions are negotiated as and when they arise. Registrar fees of £44,000 (2023: £44,000) were paid to the Registrar. Derivative counterparties The Company transacts with multiple counterparties for transacting in derivatives. At 30 November 2024, the Company had master agreements with BNP Paribas, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley and Société Générale, to enable the Company to gain long and short exposure on individual securities through derivatives. Further details are given in note 16 on pages 111 to 122. Change of control There are no agreements which the Company is party to that might be affected by a change in control of the Company. Exercise of voting rights in investee companies As of 1 January 2025, BlackRock’s stewardship policies are developed and implemented by two independent, specialist teams, BlackRock Investment Stewardship (BIS) and BlackRock Active Investment Stewardship (BAIS). While the two teams operate independently, their general approach is grounded in widely recognized norms of corporate governance and shareholder rights and responsibilities. BIS is responsible for engagement and voting in relation to clients’ assets managed by certain index equity portfolio managers. Approximately 90% of BlackRock clients’ public equity assets under management are held in index strategies, as of 30 September 2024. BAIS partners with BlackRock’s active investment teams on company engagement and voting in relation to their holdings. Principal risks The key risks faced by the Company are set out in the Strategic Report on pages 35 to 39. Going concern The Financial Statements of the Company have been prepared on a going concern basis. The forecast projections and actual performance are reviewed on a regular basis throughout the year and the Directors believe that this is the appropriate basis, and the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date these Financial Statements were approved, and is financially sound. The Company is able to meet all of its liabilities from its assets and the 2024 ongoing charges (excluding performance fees) are approximately 0.56% (2023: 0.54%) of the net assets. 66 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Directors Information about the Directors, including their relevant experience, can be found on pages 53 to 55. Details of Directors’ interests in the ordinary shares of the Company are set out in the Report of the Remuneration Committee on pages 74 and 75. Further information on the Directors of the Company as at 30 November 2024 and as at the date of this report can be found on pages 53 to 55. In accordance with best practice and the recommendations of the UK Code of Corporate Governance, all Directors will retire each year and if eligible, will offer themselves for re-election. The Board may also appoint Directors but any Director so appointed must stand for election by the shareholders at the next Annual General Meeting. Directors are also required to retire if they have served more than nine years on the Board and then may offer themselves for annual re-election. The Board has considered the position of all Directors standing for either election or re-election at the forthcoming AGM in March 2025 and believes that it is in the Company’s best interests to support the respective resolutions. The Board therefore recommends that shareholders vote in favour of these resolutions. The Board ensures that each Director has sufficient time to discharge their role and considers both the number and nature of their other commitments, the time commitment required and overall capacity. This may include a detailed review of their time spent on other activities. Any new external appointments must first be approved by the Board and the Director concerned must demonstrate that they have sufficient time to carry out the new role. Before recommending a Director for re-election their time capacity, independence, attendance record and ongoing commitment to the affairs of the Company are considered. A formal evaluation of their performance is also carried out each year. Director Asset and Investment Management Finance and/or Accounting Investment Trust experience Marketing and Distribution Corporate Strategy and Finance Legal expertise Christopher Samuel ✔ ✔ ✔ ✔ ✔ James Will ✔ ✔ ✔ ✔ ✔ Merryn Somerset Webb ✔ ✔ ✔ Nigel Burton ✔ ✔ ✔ ✔ ✔ Louise Nash ✔ ✔ ✔ ✔ Angela Lane ✔ ✔ ✔ ✔ Having considered the Directors’ performance within the annual Board performance evaluation process, further details of which are provided on page 58, the Board believes that it continues to be effective and that the Directors bring extensive knowledge and experience, suitably aligned to the activities of the Company, and demonstrate a range of valuable business, financial and asset management skills, as set out in the table above. Further details of their experience and expertise can be found in their biographies on pages 53 to 55. Further details of the independence of the Board and Board tenure is provided in the Corporate Governance Report on page 57. There were no contracts subsisting during the year under review or up to the date of this report in which a Director of the Company is or was materially interested and which is or was significant in relation to the Company’s business. None of the Directors is entitled to compensation for loss of office on the takeover of the Company. None of the Directors has a service contract with the Company. Directors’ report continued Section 3: Governance 67 Conflicts of interest The Board has put in place a framework for Directors to report conflicts of interest or potential conflicts of interest. All Directors are required to notify the Company Secretary of any situations, or potential situations where they consider that they have or may have, a direct or indirect interest or duty that conflicts or possibly conflicts with the interests of the Company. All new situations, or changes to previously reported situations are reviewed on an individual basis and reviewed at each meeting. Directors are also reminded at each meeting that there remains a continuing obligation to notify the Company Secretary of any new situations that may arise or any changes that may occur to a previously notified situation. The Board considers that the framework has worked effectively throughout the year. Directors’ remuneration report and policy The Directors’ Remuneration Report can be found within the Report of the Remuneration Committee on pages 72 to 75. An advisory ordinary resolution to approve this report will be put to shareholders at the Company’s AGM. The Company is also required to put the Directors’ Remuneration Policy to a binding shareholder vote every three years. The Company’s Remuneration Policy was last put to shareholders at the AGM in 2023, therefore, an ordinary resolution to approve the policy will be put to shareholders at the AGM to be held in 2026. Directors’ responsibilities The Directors’ responsibilities in preparing these Financial Statements are noted on pages 83 and 84. Substantial share interests As at 30 November 2024, the following investors had declared a notifiable interest of 3% or more in the Company’s voting rights. Shareholder Number of ordinary shares % of issued share capital 1 RBC Europe Limited 6,757,816 7.74% Rathbones Investment Management Ltd 6,167,476 7.06% Evelyn Partners Limited 4,256,665 4.87% IntegraFin Holdings plc 2,880,691 3.30% 1 Based upon 87,271,864 shares in issue at the year end. As at 18 February 2025, the following investors had declared a notifiable interest in the Company’s voting rights: Shareholder Number of ordinary shares % of issued share capital 1 RBC Europe Limited 6,757,816 8.30% Rathbones Investment Management Ltd 5,876,231 7.22% Evelyn Partners Limited 4,147,214 5.09% City of London Investment Management Company Limited 4,067,838 5.00% 1 Based upon 81,421,864 shares in issue as at 18 February 2025. 68 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Articles of Association Any amendments to the Company’s Articles of Association must be made by a special resolution of the members of the Company. Share capital Details of the Company’s share capital and voting rights are given in note 14 on page 109. Details of the voting rights in the Company’s shares as at the date of this report are also given in note 16 to the Notice of Annual General Meeting on page 143. The ordinary shares carry the right to receive dividends and have one voting right per ordinary share. There are no restrictions on the voting rights of the ordinary shares or on the transfer of the ordinary shares. There are no shares which carry specific rights with regard to the control of the Company. Share issues and repurchases The Board believes that the best way to address any discount over the longer term is to generate good performance and to create demand for the Company’s shares in the secondary market through effective marketing to drive awareness of the Company’s unique structure, robust investment process and long-term investment track record in an attractive sector that is difficult to navigate. In support of this activity, and where deemed to be in shareholders’ long-term interests, the Board may exercise its powers to issue or buy back shares with the objective of ensuring that neither an excessive discount or premium to NAV arises. The Board considers several factors in determining whether the discount or premium to NAV at which the Company’s shares trade is excessive or otherwise. These may include but are not limited to: whether the share rating is commensurate with the peer group of UK Smaller Companies and whether the Company’s shares are trading in normal market conditions; the ongoing attractiveness of the investment proposition, in particular the strength of the portfolio management team and process; and the strong long-term performance delivered for shareholders, both in absolute and relative terms. Share buybacks may be made principally: (i) to enhance net asset value for continuing shareholders by purchasing shares at a discount to the prevailing net asset value; and (ii) to address any imbalance between the supply of and the demand for the Company’s shares that results in a discount of the quoted market price to the published net asset value per share. In accordance with the Listing Rules of the FCA, the maximum price (excluding expenses) that may be paid on the exercise of the authority must not exceed the higher of: (i) 5% above the average closing price on the London Stock Exchange of an ordinary share over the five business days immediately preceding the date of purchase; and (ii) the higher of the price of the last independent trade and the highest current independent bid. In deciding whether to make any such purchases, the Directors will have regard to what they believe to be in the best interests of Shareholders as a whole and to applicable legal requirements. Although the Manager initiates any buybacks, the policy and parameters are set by the Board and reviewed at regular intervals. If needed, the Company would raise any cash required to finance the purchase of such shares either by selling securities in the Company’s portfolio or by short-term borrowing. The current annual authority to repurchase ordinary shares was granted to Directors at the AGM held on 19 March 2024 and expires at the conclusion of the AGM in 2025. However, the Company sought additional authority to buy-back a further 14.99% ordinary shares at the General Meeting held on 17 February 2025. This additional authority will expire at the conclusion of the AGM in 2025. The Directors are therefore proposing that their authority to buy-back shares to be held in treasury, or for cancellation, and to issue new shares or sell shares from treasury be renewed at the forthcoming AGM. Treasury shares The Company is authorised to purchase its own ordinary shares to be held in treasury for reissue or cancellation at a future date. As at 30 November 2024, 15,938,000 shares were held in treasury (2023: 7,337,703 shares). Treasury shares will only be reissued at prices at or above the prevailing NAV per share thereby giving the Company the ability to reissue shares quickly and cost effectively, improving liquidity and providing the Company with additional flexibility in the management of its capital base. It also ensures a positive overall effect for shareholders when shares are bought back at a discount and then sold at a price at or above the NAV per share. Directors’ report continued Section 3: Governance 69 Streamlined Energy & Carbon Reporting scheme (SECR) statement: greenhouse gas (GHG) emissions and energy consumption disclosure As an externally managed investment company, the Company has no greenhouse gas emissions to report from its operations, nor does it have any responsibility for any other emissions producing sources under the Companies Act (Strategic Report and Directors’ Reports) Regulations 2013. For the same reason, the Company considers itself to be a low energy user under the SECR regulations and therefore is not required to disclose energy and carbon information. Business of the AGM The following information to be discussed at the forthcoming Annual General Meeting is important and requires your immediate attention. If you are in any doubt about the action you should take, you should seek advice from your stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended). If you have sold or transferred all of your ordinary shares in the Company, you should pass this document, together with any other accompanying documents including the form of proxy, at once to the purchaser or transferee, or to the stockbroker, bank or other agent through whom the sale or transfer was effected, for onward transmission to the purchaser or transferee. The business of this year’s AGM consists of 15 resolutions. Resolutions 1 to 11 are proposed as ordinary resolutions and resolutions 12 to 15 are being proposed as special resolutions. Ordinary Resolution 1 – Annual Report and Financial Statements This resolution seeks shareholder approval to receive the report of the Directors and Financial Statements for the year ended 30 November 2024 and the Auditor’s report thereon. Ordinary Resolution 2 – Approval of the Directors’ Remuneration Report This resolution is an advisory vote on the Directors’ Remuneration Report for the year ended 30 November 2024, excluding any content relating to the remuneration policy as set out on pages 76 and 77. Ordinary Resolution 3 – Approval of a final dividend This resolution seeks shareholder approval of a final dividend of 14.25 pence for the year ended 30 November 2024. Ordinary Resolutions 4 to 8 – Election or re-election of the Directors Resolutions 4 to 8 relate to the election or re-election of the Directors. The Board has undertaken a formal performance evaluation during the year and confirms that the performance of the Directors standing for re-election continues to be effective and that each Director continues to demonstrate commitment to their role and has confirmed with each Director, and specifically with the Chairman of the Board, that they have sufficient time to effectively discharge their duties to the Company. Their biographies on pages 53 to 55 provide details of their collective expertise and experience. The Board believes their re- appointment is in the best interests of shareholders and will promote the long-term success of the Company. Ordinary Resolutions 9 and 10 – Re-appointment of the external Auditor and the Auditor’s Remuneration These resolutions relate to the re-appointment and remuneration of the Company’s auditor. The Company, through its Audit Committee, has considered the independence and objectivity of the external auditor and is satisfied that the Auditor is independent. Further information in relation to the assessment of the existing Auditor’s independence can be found in the Report of the Audit Committee on pages 78 to 82. Resolutions relating to the following items of special business will be proposed at the forthcoming AGM. Ordinary Resolution 11 – Authority to allot ordinary shares The Directors may only allot shares for cash if authorised to do so by shareholders in a general meeting. This resolution seeks authority for the Directors to allot shares for cash up to an aggregate nominal amount of £407,109.32 per annum, which is equivalent to 8,142,186 ordinary shares of 5p each and represents 10% of the Company’s issued ordinary share capital (excluding treasury shares) as at the date of the Notice of the AGM. This resolution will expire at the conclusion of the AGM of the Company to be held in 2026 unless renewed prior to that date at an earlier general meeting. All shares issued under this authority would be at a premium to the prevailing NAV. 70 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Special Resolution 12 – Authority to disapply pre-emption rights By law, Directors require specific authority from shareholders before allotting new shares or selling shares out of treasury for cash without first offering them to existing shareholders in proportion to their holdings. Resolution 12 empowers the Directors to allot new shares for cash or to sell shares held by the Company in treasury, otherwise than to existing shareholders on a pro rata basis, up to an aggregate nominal amount of £407,109.32 which is equivalent to 8,142,186 ordinary shares of 5p each and represents 10% of the Company’s issued ordinary share capital (excluding treasury shares) as at the date of the Notice of the AGM. This resolution, which is subject to the passing of ordinary resolution 11 , will expire at the conclusion of the AGM of the Company to be held in 2026 unless renewed prior to that date at an earlier general meeting. All shares issued under this authority would be at a premium to the prevailing NAV. Special Resolution 13 – Authority to buy back ordinary shares The resolution to be proposed will seek to renew the authority granted to Directors enabling the Company to purchase its own ordinary shares. The Directors will only consider repurchasing shares in the market if they believe it to be in shareholders’ interests and as a means of correcting any imbalance between supply and demand for the Company’s shares. The Directors are seeking authority to purchase up to 12,205,137 ordinary shares (being 14.99% of the issued ordinary share capital excluding treasury shares as at the date of this report). This authority, unless renewed at an earlier general meeting, will expire at the conclusion of the AGM of the Company to be held in 2026. Any ordinary shares purchased pursuant to this resolution shall be cancelled immediately upon completion of the purchase or held, sold, transferred or otherwise dealt with as treasury shares in accordance with the provisions of the Companies Act. Special Resolution 14 – Notice period for General Meetings Special Resolution 14 empowers the Directors to hold general meetings (other than annual general meetings) on 14 days’ notice, which is the minimum notice period permitted by the Companies Act 2006. The EU Shareholder Rights Directive increases the minimum notice period to 21 days unless two conditions are met. The first condition is that the Company offers facilities for shareholders to vote by electronic means. The second condition is that there is an annual resolution of shareholders approving the reduction in the minimum notice period from 21 days to 14 days, hence this resolution being proposed. It is not intended that this power will be used as a matter of course, rather that this flexibility will be utilised where the Board believes that the nature of the business to be conducted requires that a general meeting be convened at 14 days’ notice. Special Resolution 15 – Cancellation of Share Premium Account As noted in the Chairman’s statement on pages 12 and 13, the Board may exercise its powers to buy back shares from time to time to ensure that the Company’s shares do not trade at an excessive discount to NAV. Pursuant to the shareholder authority to repurchase shares, approved by shareholders at the Company’s AGM held on 19 March 2024, the Company has repurchased 12,413,000 shares. The Company’s authority was subsequently renewed at a General Meeting of its members held on 17 February 2025. The Directors believe that that it is in shareholders’ interests to ensure that the Company has, at all times, the ability to buy back shares in order to manage the discount to NAV at which the Company’s shares may trade. Market purchases of shares must, in normal circumstances, be made out of distributable reserves of the Company or the proceeds of a fresh issue of shares made for the purpose of the purchase. As at 30 November 2024, the Company had distributable reserves of approximately £337 million. The Company’s share premium account is a non-distributable reserve and the Company is therefore unable to use the amount standing to the credit of this account for the purpose of, among other things, making purchases of its shares. Pursuant to a special resolution passed on 1 July 2010 authorising the cancellation of the share premium account, the Company applied to the Court for the entire share premium account to be cancelled so that the amount standing to the credit of the share premium account as at that date became a distributable reserve, subject to the satisfaction of the Company’s liabilities at that time. The cancellation became effective on 29 July 2010. Since then, the Company has issued further shares and the amount now standing to the credit of the Company’s share premium account is £242,122,000. The Companies Act 2006 permits the Company (subject to the approval of shareholders and the consent of the Court) to cancel or reduce its share premium account and credit the resulting sum (less an amount equal to certain of the Company’s liabilities as at that date) to the Company’s distributable reserves. By cancelling or reducing the share premium account, the Company increases its flexibility to facilitate any prospective buy back of shares. Directors’ report continued Section 3: Governance 71 A cancellation or reduction of the share premium account requires the passing of a special resolution. Accordingly, resolution 15 seeks shareholder approval to cancel the entire amount standing to the credit of the Company’s share premium account. Subject to confirmation by the High Court of Justice in London and the cancellation taking effect, the amount so cancelled will be credited to the Company’s distributable reserves. This will improve the Company’s distributable reserves position and will provide the Company with flexibility to support the buyback of shares in the future. The cancellation of the Company’s share premium account will have no impact of the value of your shares and will merely ensure that the Company has increased distributable reserves available to undertake purchases of its own shares. The Board believes this action is in shareholders’ interests and recommends that you vote in favour of the resolution. Recommendation The Board considers that each of the resolutions to be proposed at the Annual General Meeting is likely to promote the success of the Company for the benefit of its members as a whole and is in the best interests of the Company and its shareholders as a whole. The Directors unanimously recommend that shareholders vote in favour of these resolutions as they intend to do in respect of their own beneficial holdings. As mentioned in the Chairman’s statement, if you are unable to attend the meeting in person you can cast your vote by proxy, either by appointing the chairman as your proxy or alternatively a third party. Details on how to do so are included on the Proxy Card provided. If you hold your shares through a Nominee or Platform you will need to contact them directly to instruct them on how you wish to vote or to request that they appoint you as a proxy in respect of your shareholding should you wish to attend the meeting. It may also be possible to vote electronically via the platform. If you are able to do so we would encourage shareholders to exercise your vote. Corporate Governance Full details are given in the Corporate governance statement on pages 56 to 62. The Corporate Governance Statement forms part of this Directors’ Report. Audit information As required by Section 418 of the Companies Act 2006 the Directors who held office at the date of approval of this Directors’ Report confirm that, so far as they are aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Company’s auditor is aware of that information. Independent Auditor The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office. A resolution to re-appoint PricewaterhouseCoopers LLP as auditor of the Company will be proposed at the forthcoming Annual General Meeting, together with a resolution to authorise the Audit Committee to determine its remuneration. The Directors’ Report was approved by the Board at its meeting on 19 February 2025. By order of the Board KEVIN MAYGER for and on behalf of BlackRock Investment Management (UK) Limited Company Secretary 19 February 2025 72 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 On behalf of the Board, the Remuneration Committee presents the Directors’ Remuneration Report for the year ended 30 November 2024 which has been prepared in accordance with Sections 420-422 of the Companies Act 2006 and the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The law requires the Company’s Auditor to audit certain of the disclosures provided. Where disclosures have been audited, they are indicated as such. The Auditor’s opinion is included in their report on pages 88 to 93. Remuneration Committee The Committee has delegated responsibility for determining the policy for directors’ remuneration and setting remuneration for the Company’s chair, Audit Committee chair and independent Non-executive Director in accordance with the principles and provisions of the UK Code. The Committee reports and makes recommendations to the Board on all matters of remuneration. Statement by the Chairman of the Remuneration Committee A key driver of the Company’s Remuneration Policy is that fees payable to Directors should be sufficient to attract and retain individuals with suitable knowledge and experience. The Company’s Directors are all non-executive and are independent of the Manager. The Company’s Directors’ Remuneration Policy was last reviewed in December 2024. Following this review, it was agreed that with effect from 1 December 2024 all Directors’ fees would be increased to the levels set out in the policy table on page 77. Further detail on the Company’s remuneration policy and the basis for determining the level of any change in Directors’ remuneration are set out in the Remuneration policy on pages 76 and 77. Prior to this increase, Directors’ fees were last increased on 1 December 2023. No discretionary fees have been paid to Directors during the year or previous year or since inception and the payment of such fees is expected to be a rare occurrence, only necessary in exceptional circumstances. Any discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an explanation of the work undertaken and why it was deemed necessary to pay such additional remuneration. The Company’s Directors are all non-executive and are independent of the Manager. No advice or services were provided by any external agencies or third parties. Implementation of the Remuneration Policy in the year 2024 The Directors intend that the Remuneration Policy, which forms part of this report, will be implemented as set out on pages 76 and 77. The Directors do not receive any performance related remuneration or incentives. Discretionary payments are permitted under the policy; however, such discretionary payments would only be considered in exceptional circumstances. Remuneration/service contracts The maximum remuneration of the Directors is determined within the limits of the Company’s Articles and the limit currently amounts in aggregate to £250,000. No element of the Directors’ remuneration is performance related. The Company has not awarded any share options or long-term performance incentives to any of the Directors. None of the Directors has a service contract with the Company or receives any non-cash benefits or pension entitlements. The terms of their appointment are detailed in an appointment letter issued to them when they join the Board. These letters are available for inspection at the registered office of the Company. Report of the Remuneration Committee Nigel Burton Chairman of the Remuneration Committee Section 3: Governance 73 Remuneration implementation report A single figure for the total remuneration of each Director is set out in the table below for the years ended 30 November 2024 and 2023. The information in the table below has been audited. Year ended 30 November 2024 Year ended 30 November 2023 Directors Base Salary Taxable Benefits 1 Total Base Salary Taxable Benefits 1 Total £ £ £ £ £ £ Christopher Samuel (Chairman) 48,800 874 49,674 46,700 540 47,240 Nigel Burton 33,100 409 33,509 31,700 – 31,700 Loudon Greenlees 2 – – – 11,455 196 11,651 Angela Lane 38,700 281 38,981 35,359 402 35,761 Louise Nash 34,100 2,329 36,429 31,700 2,140 33,840 Glen Suarez 3 22,853 1,613 24,466 28,226 2,154 30,380 Merryn Somerset Webb 33,100 2,245 35,345 31,700 1,893 33,593 Total 210,653 7,751 218,404 216,840 7,325 224,165 1 Taxable benefits relate to travel and subsistence costs. 2 Loudon Greenlees retired on 23 March 2023. 3 Glen Suarez was appointed on 9 January 2023 and retired on 9 August 2024. No discretionary payments were made in the year to 30 November 2024 (2023: £nil). The amounts paid by the Company to the Directors were for services as Non-executive Directors. As at 30 November 2024, fees of £16,000 (2023: £18,000) were outstanding to Directors in respect of their annual fees. Relative importance of spend on pay As the Company has no employees, the table below also comprises the total remuneration costs and benefits paid by the Company. To enable shareholders to assess the relative importance of spend on pay, this has been shown in the table below compared to the Company’s net profit on ordinary activities after taxation, total operating expenditure and dividend distributions. 2024 £’000 2023 £’000 Change £’000 Directors’ total remuneration 211 224 -13 Dividends paid and payable 15,003 14,192 +811 Net profit/(loss) on ordinary activities after taxation 86,322 (15,749) +102,071 Buyback of ordinary shares after costs 52,098 29,807 +22,291 No payments were made in the period to any past Directors (2023: £nil). 74 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Annual percentage change in Directors’ remuneration The following table sets out the annual percentage changes in Directors’ fees over the past five years. Directors 30 November 2020 30 November 2021 30 November 2022 30 November 2023 30 November 2024 Christopher Samuel 2.6% 3.8% 7.3% 6.1% 4.5% Loudon Greenlees 1 3.3% 4.8% 7.7% 5.7% n/a Jean Matterson 2 3.8% 3.7% n/a n/a n/a Louise Nash 3 3.8% 3.7% 7.1% 5.7% 7.6% Angela Lane 4 n/a 3.7% 7.1% 5.7% 4.6% Nigel Burton 5 n/a n/a 7.1% 5.7% 4.4% Merryn Somerset Webb 6 n/a n/a 7.1% 5.7% 4.4% Glen Suarez 7 n/a n/a n/a n/a n/a 1 As Loudon Greenlees retired as a Director on 23 March 2023, the percentage change in his annual fixed fee has been annualised. 2 As Jean Matterson retired as a Director on 24 March 2021, the percentage change in her annual fixed fee has been annualised. 3 As Louise Nash was appointed as a Director on 21 March 2019, the percentage change in her annual fixed fee has been annualised. Louise Nash’s salary increased on 1 December 2023 as a result of her role as Senior Independent Director. 4 As Angela Lane was appointed as a Director on 10 June 2020, the percentage change in her annual fixed fee has been annualised. 5 As Nigel Burton was appointed as Director on 21 December 2020, the percentage change in his annual fixed fee has been annualised. 6 As Merryn Somerset Webb was appointed as a Director on 24 March 2021, the percentage change in her annual fixed fee has been annualised. 7 As Glen Suarez was appointed as a Director on 9 January 2023 and retired on 9 August 2024, there is no percentage change comparison. As previously noted, the Company does not have any employees and hence no comparisons are given in respect of the comparison between Directors’ and employees’ pay increases. Directors’ shareholdings The interests of the Directors in the ordinary shares of the Company are set out in the table below. The Company does not have a share option scheme, therefore none of the Directors has an interest in any share options in the Company. There is no requirement for Directors to hold shares in the Company. 18 February 2025 30 November 2024 30 November 2023 Ordinary shares Ordinary shares Ordinary shares Christopher Samuel 67,263 67,263 65,606 Louise Nash 5,500 5,500 3,900 Angela Lane 11,749 11,749 11,673 Nigel Burton 16,986 16,986 16,570 Merryn Somerset Webb 3,823 3,823 3,727 James Will Nil n/a n/a Loudon Greenlees n/a n/a n/a Glen Suarez n/a n/a 4,800 The information in the table above has been audited. Report of the Remuneration Committee continued Section 3: Governance 75 All of the holdings of the Directors are beneficial. No changes to these holdings have been notified up to the date of this report. Retirement of directors Further details are given in the Directors’ Report on page 66. Performance The graph below compares the Company’s NAV and share price total returns with the total return on an equivalent investment in the Benchmark Index 1 . This index is deemed to be the most appropriate as the Company has a UK smaller and mid- capitalisation companies’ objective. Performance from 30 November 2014 to 30 November 2024 Share price performance NAV performance Benchmark Index 1 Nov 22 Nov 23 Nov 24 Nov 14 Nov 15 Nov 16 Nov 17 Nov 18 Nov 19 Nov 20 Nov 21 0 50 100 150 200 250 300 350 400 450 1 With effect from 22 March 2018, the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index replaced the Deutsche Numis Smaller Companies excluding AIM (excluding Investment Companies) Index as the Company’s Benchmark Index. From 1 December 2013 to 21 March 2018, the Company’s Benchmark Index was the Deutsche Numis Smaller Companies excluding AIM (excluding Investment Companies) Index. Prior to 1 December 2013 the Company’s Benchmark Index was the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. The performance of the Benchmark Indices during these periods has been blended to reflect these changes. Sources: BlackRock and LSEG Datastream. Performance figures in Sterling terms with dividends reinvested, rebased to 100 at 30 November 2014. For and on behalf of the Board NIGEL BURTON Chairman of the Remuneration Committee 19 February 2025 76 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 In setting the appropriate level of Directors’ fees, a number of factors are considered by the Company’s Remuneration Committee, including: • the workload of the Directors, their responsibilities, any change in these responsibilities and additional legal duties (for example as a result of new legislation being implemented); • the relationship with their suppliers (primarily the Company’s third party service providers); • the size and complexity of the Company; • the time commitment required; • the level of skills and appropriate experience required; • the need for Directors to maintain on an ongoing basis an appropriate level of knowledge of regulatory and compliance requirements in an industry environment of increasing complexity; • the average rate of inflation during the period since the last fee increase; • the level of remuneration in comparison with other investment trusts of a similar size and/or mandate; and • any data published by the Association of Investment Companies to ensure that fees are in line with industry practice. This comparison, together with consideration of any alteration in Non-executive Director responsibilities, is used to review whether any change in remuneration is necessary. The review is performed on an annual basis. The Remuneration Committee is cognisant of the need to avoid any potential conflicts of interest and has therefore agreed a mechanism by which no Director is present when his or her own pay is being considered. The Company has no employees and consequently no consideration is required to be given to employment conditions elsewhere in setting this policy and there has been no employee consultation. No element of the Directors’ remuneration is performance related or subject to recovery or withholding (except for tax). Directors cannot be awarded any share options or long-term performance incentives. None of the Directors has a service contract with the Company or receives any non-cash benefits (except as described in the policy table), pension entitlements or compensation for loss of office. The Remuneration Policy would be applied when agreeing the remuneration package of any new Director. The terms of Directors’ appointments are detailed in a letter sent to them when they join the Board. These letters are available for inspection at the registered office of the Company. Directors’ appointments do not have a fixed duration, but they can be terminated by the Company in writing at any time without obligation to pay compensation. On termination of the appointment, Directors shall only be entitled to accrued fees as at the date of termination together with reimbursement of any expenses properly incurred prior to that date. No payments for loss of office are made. Directors are also subject to re-election at least every three years and, if not elected, their appointment ceases immediately. However, in accordance with the UK Corporate Governance Code the Board have agreed that all Directors will, being eligible, stand for re-election annually. The continuation of an appointment is contingent on a satisfactory performance evaluation and re-election by shareholders at the AGM. Consideration of shareholders’ views In accordance with applicable law and regulation, an ordinary resolution to approve the remuneration report is put to shareholders at each AGM, and shareholders have the opportunity to express their views and raise any queries in respect of remuneration policy at this meeting. The Company last obtained shareholder approval for its remuneration policy at the AGM in 2023. In accordance with the Companies Act 2006, the remuneration policy will next be subject to a triennial binding shareholder vote at the AGM in 2026. At the Company’s AGM held on 23 March 2023, 99.80% (including votes cast at the Chairman’s discretion) were in favour of the resolution to approve the remuneration policy and 0.20% of votes cast were against. The Company’s remuneration policy is laid before shareholders every three years. At the Company’s AGM held on 19 March 2024, 99.72% of votes cast were in favour of the resolution to approve the Directors’ remuneration report in respect of the year ended 30 November 2023 and 0.28% against. The remuneration report is laid before shareholders annually. Any discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an explanation of the work undertaken. Directors’ remuneration policy Section 3: Governance 77 Policy table Purpose and link to strategy Fees payable to Directors should be sufficient to attract and retain individuals of high calibre with knowledge and experience which is suitably aligned to the activities of the Company. Those chairing the Board and key committees should be paid higher fees than other Directors in recognition of their more demanding roles. Fees should reflect the time spent by Directors on the Company’s affairs and the level of complexity of responsibilities borne by the Directors. Description Levels of fixed annual fee with effect from 1 December 2024: Chairman – £50,250 Audit Committee Chairman – £40,000 Senior Independent Director – £36,100 Directors – £34,100 All reasonable expenses to be reimbursed. Maximum levels Remuneration consists of a fixed fee each year, set in accordance with the stated policies and any increase granted must be in line with the stated policies. The Company’s Articles of Association provide that until otherwise determined by the Company by ordinary resolution, there shall be paid to the Directors (other than alternate Directors) such fees for their services in the office of Director as the Directors may determine (not exceeding in the aggregate an annual sum of £250,000 (subject to increase as provided above) or such larger amount as the Company may by ordinary resolution decide) divided between the Directors as they agree. In accordance with the provisions of the Company’s Articles of Association the Directors are also entitled to be repaid all reasonable travelling, hotel and other expenses incurred by them respectively in or about the performance of their duties as Directors including any expenses incurred in attending meetings of the Board or of Committees of the Board or Annual General Meetings or General Meetings. In addition, the Directors propose a limit of £10,000 in relation to the maximum that may be paid in respect of taxable benefits. These ceilings have been set at a level to provide flexibility in respect of the recruitment of additional Board members (where required) and inflation. Policy on share ownership Directors are encouraged to own shares in the Company. All Directors with the exception of Mr Will who joined the Board on 1 January 2025, are currently shareholders. Operation Fixed fee element The Board reviews the quantum of Directors’ fees each year to ensure that this is in line with the level of Directors’ fees for other investment trusts of similar size and complexity. When considering any changes in fees, the Board will take into account factors such as the average rate of inflation over the period since the previous review, and the level and any change in the Directors’ responsibilities (including additional time commitments as a result of increased regulatory or corporate governance requirements). Directors are not eligible to be compensated for loss of office, nor are they eligible for bonuses, pension benefits, share options or other incentives or benefits. Directors do not have service contracts but are appointed under letters of appointment. Discretionary Payments The Company’s Articles of Association authorise the payment of discretionary fees to Directors for any additional work undertaken on behalf of the Company which is outside of their normal duties. Any such extra work undertaken is subject to the prior approval of the Chairman or, in the case of the Chairman undertaking the extra work, subject to the prior approval of the Chairman of the Audit Committee. The level of discretionary fees shall be determined by the Directors and will be subject to a maximum of £10,000 per annum per Director. Any discretionary fees paid will be disclosed in the Directors’ Remuneration Report within the Annual Report. Taxable benefits Certain expenses incurred by Directors are required to be treated as taxable benefits. Taxable benefits comprise, but are not limited to, travel expenses and subsistence incurred by the Directors in the course of travel to attend Board and Committee meetings which are held at the Company’s registered office in London, and which are reimbursed by the Company and therefore treated as a benefit in kind and are subject to tax and national insurance. The Company’s policy in respect of this element of remuneration is that all reasonable costs of this nature will be reimbursed as they are incurred, including tax and national insurance costs incurred by the Directors on such expenses. 78 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 As Chairman of the Audit Committee (the Committee) I am pleased to present the Committee’s report to shareholders for the year ended 30 November 2024. Composition The Committee consists of all the Directors of the Company, including the Board Chairman since 2019. Following the publication of the latest AIC Code of Corporate Governance, which permits the Board Chairman to be a member of the Committee, the Board determined that it was appropriate for him to become a member of the Committee, particularly given that he is a Chartered Accountant and has recent and relevant financial experience. The Board considers that at least four members of the Committee have recent and relevant financial experience and specific competence in accounting and/or auditing and the Committee, as a whole, has competence relevant to the sector in which the Company operates to discharge its function effectively. Further information on the experience of the members of the Committee can also be found in their biographies on pages 53 to 55. Role and responsibilities The Company has established a separately chaired Committee whose duties include considering and recommending to the Board for approval the contents of the half yearly and annual financial statements and providing an opinion as to whether the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s performance, position, business model and strategy. The Committee reviews the external Auditor’s report thereon and has primary responsibility for the relationship with the external Auditor, including the development of a policy on the provision of non-audit services, reviewing and forming an opinion on the effectiveness of the external audit process and audit quality. Other duties include reviewing the appropriateness of the Company’s accounting policies and monitoring the effectiveness of the internal control systems and standards. The Company operates within written terms of reference detailing its scope and duties and these are available on the Company’s website at www.blackrock.com/uk/thrg . The Committee meets at least three times a year. Two of these meetings are held prior to the Board meetings to approve the half yearly and annual reports. The Committee will hold additional meetings where deemed to be necessary. The Committee also receives regular reports from the Manager’s internal audit and compliance departments. Responsibilities and review of the external audit During the year the principal activities of the Audit Committee included: • considering and recommending to the Board for approval the contents of the half yearly and annual financial statements and reviewing the external auditors’ report thereon; • reviewing the scope, execution, results, cost effectiveness, independence and objectivity of the external Auditor; • reviewing the audit and any non-audit fees payable to the external Auditor and the terms of its engagement; • reviewing and approving the external Auditor’s plan for the financial year, with a focus on the identification of areas of audit risk, and consideration of the appropriateness of the level of audit materiality adopted; • reviewing the effectiveness of the external audit process and the quality of the audit engagement leader and the audit team, and making a recommendation to the Board with respect to the reappointment of the Auditor; • reviewing the role of the Manager and third party service providers in an effective audit process; Angela Lane Chairman of the Audit Committee Report of the Audit Committee Section 3: Governance 79 • considering the quality of the formal audit report to shareholders; • reviewing the appropriateness of the Company’s accounting policies; • monitoring the effectiveness of the Company’s risk management and internal control systems and standards and carrying out a review, at least annually, of their effectiveness; and • evaluating the need for an internal audit function, as set out in the Corporate Governance Statement on page 60. The fees paid to the external Auditor are set out in note 5 on page 104. An explanation on how auditor objectivity and independence is safeguarded is reported under assessment of the effectiveness of the external audit process on pages 81 and 82. Whistleblowing policy The Committee has also reviewed and accepted the ‘whistleblowing’ policy that has been put in place by the Manager under which its staff, in confidence, can raise concerns about possible improprieties in matters of financial reporting or other matters, in so far as they affect the Company. Significant issues considered regarding the Annual Report and Financial Statements During the year, the Committee considered a number of significant issues and areas of key audit risk in respect of the Annual Report and Financial Statements. The Committee reviewed the external audit plan at an early stage and concluded that the appropriate areas of audit risk relevant to the Company had been identified and that suitable audit procedures had been put in place to obtain reasonable assurance that the Financial Statements as a whole would be free of material misstatements. The table below sets out the key areas of risk identified by the Committee and also explains how these were addressed. Significant issue The accuracy of the valuation of the investment portfolio. How the issue was addressed Listed investments, long and short derivative positions and index futures are valued using stock exchange prices from third party vendors. The Board reviews detailed portfolio valuations on a regular basis throughout the year and receives confirmation from the Manager that the pricing basis is appropriate, in line with relevant accounting standards as adopted by the Company and that the carrying values are materially correct. Significant issue The risk of misappropriation of assets and ownership of investments. How the issue was addressed The Depositary is responsible for financial restitution for loss of financial investments held in custody. The Depositary reports to the Committee on a twice-yearly basis and is also available to attend the Company’s Annual General Meeting. The Committee reviews reports from its service providers on key controls over assets of the Company. Any significant issues are reported by the Manager to the Committee. The Manager has put in place procedures to ensure that investments can only be made to the extent that the appropriate contractual and legal arrangements are in place to protect the Company’s assets. 80 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Significant issue The accuracy of the calculation of management and performance fees. How the issue was addressed The Manager reports to the Committee on the calculation of any performance fee accruals that have been included in the Company’s NAV on a regular basis. The management fee and any performance fee are calculated in accordance with the contractual terms in the investment management agreement by the administrator, BNY, and are reviewed in detail by the Manager and are also subject to an analytical review by the Committee. Significant issue The risk that income is overstated, incomplete or inaccurate through failure to recognise proper income entitlements or to apply the appropriate accounting treatment for recognition of income. How the issue was addressed The Committee reviews income forecasts, including special dividends, and receives explanations from the Manager for any variations or significant movements from previous forecasts and prior year figures. The audit includes checks on the completeness and accuracy of income, and also checks that this has been recognised in accordance with stated accounting policies. The provision of portfolio valuation, fund accounting and administration services is delegated to the Manager, which sub- delegates the provision of fund accounting to The Bank of New York Mellon (International) Limited. The provision of custody and depositary services is directly contracted by the Company to The Bank of New York Mellon (International) Limited. The Committee has therefore reviewed summaries of the Service Organisation Control (SOC 1) reports prepared by the Manager, Depositary and the Fund Accountants to ensure that the relevant control procedures are in place to cover these areas of risk as identified in the table above and are adequate and appropriate and have been designated as operating effectively by the reporting auditors. The Committee receives and reviews regular reports on the material risks faced by the Company and the key controls employed to manage these risks. Consideration is given regularly to the nature and extent of risks faced by the Company and these risks are monitored and regularly re-assessed. Where changes in risk have been identified during the year, the Committee will assess whether any further action is required to mitigate these risks. The Committee has reviewed the effectiveness of the Company’s risk management and internal controls systems, which accord with the FRC ‘Guidance on Risk Management, Internal Control and Related Financial and Business Reporting’, and has procedures in place to review their effectiveness on a regular basis. No material weaknesses have been identified in the year under review and up to the date of this report. The Committee confirms that these procedures have been in place throughout the Company’s financial year and continue to be in place up to the date of approval of this report. Auditor and audit tenure The Company’s current auditor PricewaterhouseCoopers LLP was appointed on 21 March 2019 following the result of a tender process held in late 2018. The current audit engagement leader is Mr Allan McGrath who has been the Company’s audit engagement leader since September 2021. Prior to this date, the audit engagement leader was Christopher Meyrick. The Committee, in conjunction with the Board, is committed to reviewing this appointment on a regular basis to ensure the Company is receiving an optimal level of service. The appointment of the Auditor is reviewed each year and the audit engagement leader rotates at least every five years. There are no contractual obligations that restrict the Company’s choice of auditor. The Committee is mindful of the EU audit legislation which requires the rotation of long serving auditors. The Company carried out a formal tender process in 2018 and following due consideration, PricewaterhouseCoopers LLP was selected as the Company’s new Independent Auditor. Report of the Audit Committee continued Section 3: Governance 81 It is the Company’s policy to put the statutory audit out to tender at least every ten years. The Committee is satisfied that the Company has complied with the provisions of the Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of Competitive Processes and Audit Committee Responsibilities) Order 2014, published by the Competition and Markets Authority on 26 September 2014. In recognition of underlying audit rotation requirements, the Committee currently intends that a further tender process will be undertaken during the year to 30 November 2029 to cover the financial year ending 30 November 2029 onwards. The Committee will continue to review the Auditor’s appointment each year to ensure that the Company is receiving an optimal level of service. There were no fees paid to the Auditor in respect of non-audit services during the year. The Company’s policy on non-audit services is set out in full in the Audit Committee’s terms of reference which are available on the Company’s website at www.blackrock.com/uk/thrg . Assessment of the effectiveness of the external audit process To assess the effectiveness of the external audit, members of the Committee communicate regularly with BIM (UK) and BFM to obtain a good understanding of the quality and efficiency of the audit. The Committee has adopted a formal framework in its review of the effectiveness of the external audit process and audit quality. This includes a review of the following areas: • the quality of the audit engagement leader and the audit team; • the expertise of the audit firm and the resources available to it; • identification of areas of audit risk; • planning, scope and execution of the audit; • consideration of the appropriateness of the level of audit materiality adopted; • the role of the Committee, the Manager and third party service providers in an effective audit process; • communication by the Auditor with the Committee; • monitoring and reviewing the supply of any non-audit services, taking into account relevant ethical guidelines regarding the provision of such services; • how the Auditor supports the work of the Committee and how the audit contributes added value; • a review of the independence and objectivity of the audit firm; and • the quality of the formal audit report to shareholders. Feedback in relation to the audit process and the effectiveness of the Manager in performing its role is also sought from relevant involved parties, notably the audit engagement leader and his team. The external Auditor is invited to attend the Committee meetings at which the half yearly and annual report and financial statements are considered and to meet with the Audit Committee without representatives of the Manager being present on at least one occasion. The effectiveness of the Board and the Manager in the external audit process is assessed principally in relation to the timely identification and resolution of any process errors or control breaches that might impact the Company’s net asset values and accounting records. It is also assessed by reference to how successfully any issues in respect of areas of accounting judgement are identified and resolved, the quality and timeliness of papers analysing these judgements, the Board’s and the Manager’s approach to the value of independent audit and the booking of any audit adjustments arising, and the timely provision of draft public documents for review by the auditor and the Committee. To form a conclusion with regard to the independence of the external Auditor, the Committee considers whether the skills and experience of the Auditor makes it a suitable supplier of non-audit services and whether there are safeguards in place to ensure that there is no threat to its objectivity and independence in the conduct of the audit resulting from the provision of any such services. On a continuous basis, PricewaterhouseCoopers LLP reviews the independence of its relationship with the Company and, on a semi-annual basis, reports to the Committee, providing details of any other relationship with the Manager. As part of this review, the Committee also receives information about policies and processes for maintaining independence and monitoring compliance with relevant requirements from the Company’s Auditor, including information on the rotation of the Audit engagement leader and staff, the level of fees that the Company pays in proportion to the overall fee income of the 82 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 firm, and the level of related fees, details of any relationships between the Audit firm and its staff and the Company as well as an overall confirmation from the Auditor of its independence and objectivity. As a result of its review, the Committee has concluded that PricewaterhouseCoopers LLP is independent of the Company and the Manager. Conclusions in respect of the Annual Report and Financial Statements The production and the audit of the Company’s Annual Report and Financial Statements is a comprehensive process requiring input from a number of different contributors. In order to reach a conclusion that the Annual Report and Financial Statements are fair, balanced and understandable, the Board has requested that the Committee advise on whether these criteria are satisfied. In so doing, the Committee has given consideration to the following: • the comprehensive control framework over the production of the Annual Report and Financial Statements, including the verification processes in place to deal with the factual content; • the extensive levels of review that are undertaken in the production process by the Manager, the Depositary and the Committee; • the controls that are in place at the Manager and other third party service providers to ensure the completeness and accuracy of the Company’s financial records and the security of the Company’s assets; and • the existence of satisfactory Service Organisation Control reports that have been reviewed and reported on by external auditors to verify the effectiveness of the internal controls of the Manager, Custodian and Fund Accountant. In addition to the work outlined above, the Committee has reviewed the Annual Report and Financial Statements and is satisfied that, taken as a whole, they are fair, balanced and understandable and provide shareholders with the information necessary to assess the Company’s position, performance, business model and strategy. In reaching this conclusion, the Committee has assumed that the reader of the Annual Report and Financial Statements would have a reasonable level of knowledge of the investment trust industry in general. The Committee has reported on these findings to the Board who affirms the Committee’s conclusions in the Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements on pages 83 and 84. ANGELA LANE Chairman of the Audit Committee 1 9 February 2025 Report of the Audit Committee continued Section 3: Governance 83 The Directors are responsible for preparing the Annual Report and Financial Statements, (including the Directors’ Remuneration Report) in accordance with applicable United Kingdom law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors are required to prepare the financial statements in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these Financial Statements, the Directors are required to: • present fairly the financial position, financial performance and cash flows of the Company; • select suitable accounting policies in accordance with IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and then apply them consistently; • present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; • make judgements and estimates that are reasonable and prudent; • state whether the Financial Statements have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006, subject to any material departures disclosed and explained in the Financial Statements; • provide additional disclosures when compliance with the specific requirements in international accounting standards in conformity with the requirements of the Companies Act 2006, is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s financial position and financial performance; and • prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are also responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the Corporate Governance Statement in accordance with the Companies Act 2006 and applicable regulations, including the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules. The Directors have delegated responsibility to the Investment Manager and the AIFM for the maintenance and integrity of the Company’s corporate and financial information included on BlackRock’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions. Each of the Directors, whose names are listed on pages 53 to 55, confirms to the best of his or her knowledge that: • the Financial Statements, which have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and net loss of the Company; and • the Annual Report and Financial Statements include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces. Statement of Directors’ responsibilities in respect of the Annual Report and Financial Statements 84 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 The 2018 UK Corporate Governance Code also requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit Committee advise on whether it considers that the Annual Report and Financial Statements fulfil these requirements. The process by which the Committee has reached these conclusions is set out in the Audit Committee’s report on pages 78 to 82. As a result, the Board has concluded that the Annual Report and Financial Statements for the year ended 30 November 2024, taken as a whole, are fair, balanced and understandable and provided the information necessary for shareholders to assess the Company’s position, performance, business model and strategy. For and on behalf of the Board CHRISTOPHER SAMUEL Chairman 19 February 2025 Statement of Directors’ responsibilities in respect of the Annual Report and Financial Statements continued Section 3: Governance 85 Financial Statements Section 4: Financial 87 Promotional merchandise specialist 4imprint was another signiﬁcant contributor to performance. PHOTO COURTESY OF 4IMPRINT 88 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Report on the audit of the financial statements Opinion In our opinion, BlackRock Throgmorton Trust plc’s financial statements: • give a true and fair view of the state of the company’s affairs as at 30 November 2024 and of its profit and cash flows for the year then ended; • have been properly prepared in accordance with UK- adopted international accounting standards; and • have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Statement of Financial Position as at 30 November 2024; the Statement of Comprehensive Income, the Statement of Changes in Equity, and the Cash Flow Statement for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies. Our opinion is consistent with our reporting to the Audit Committee. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, we declare that non- audit services prohibited by the FRC’s Ethical Standard were not provided. We have provided no non-audit services to the company in the period under audit. Our audit approach Overview Audit scope • The Company is a standalone Investment Trust Company and engages BlackRock Fund Managers Limited (the ‘Manager’) to manage its assets. The Manager engages Bank of New York Mellon (International) Limited (the “Fund Accountant”) to provide administrative functions to the Company. • We tailored the scope of our audit taking into account the type of investments within the Company, the involvement of the third parties, the accounting processes, controls, and the industry in which the Company operates. Key audit matters • Valuation and existence of investments • Accuracy, occurrence and completeness of investment income Materiality • Overall materiality: 6.0m (2023: £5.8m) based on 1% of net assets. • Performance materiality: £4.5m (2023: £4.3m). The scope of our audit As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. Key audit matters Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit. The key audit matters below are consistent with last year. Independent Auditor’s Report to the members of BlackRock Throgmorton Trust plc Section 4: Financial Statements 89 Key audit matter How our audit addressed the key audit matter Valuation and existence of investments Refer to the Report of the Audit Committee (page 79), Accounting policies (page 100) and Notes to the financial statements (page 107). The investment portfolio at the year end comprised of listed equity investments valued at £557.602 million and a net holding of derivative Contracts for Difference (CFDs) with a net fair value of £1.813m. We focused on the valuation and existence of investments because investments represent the principal element of the net asset value (NAV) as disclosed on the Statement of Financial Position in the Financial Statements. The investment portfolio at the year-end comprised of listed equity investments, and AIM traded stocks, valued at £557.6 million. We focused on the valuation and existence of investments because investments represent the principal element of the net asset value as disclosed on the Statement of Financial Position in the financial statements. We tested the valuation of all of the equity investments by agreeing the valuation to independent third party sources using our proprietary data analytics tool “Halo”, and a sample of CFDs by agreeing to independent third party sources. Where further investigation was required into HALO pricing we manually agreed pricing to independent third party sources. We tested the existence of all of the investments and CFDs by agreeing the Company’s holdings to an independent custodian confirmation in the case of the listed equity investments, as well as the depositary statement, and broker statements for the CFDs. We have no matters to report as a result of this testing. Accuracy, occurrence and completeness of investment income Refer to the Report of the Audit Committee (page 80), Accounting policies (page 99) and Notes to the Financial Statements (page 102). Income from investments consists primarily of dividend income. Within dividend income there is a risk of incomplete or inaccurate recognition of revenue through the failure to recognise proper income entitlements or to apply an inappropriate accounting treatment. In addition, the Directors are required to exercise judgement in determining whether income receivable in the form of special dividends should be classified as ‘revenue’ or ‘capital’ in the Statement of Comprehensive Income. Income from investments consists primarily of dividend income. Within dividend income there is a risk of incomplete or inaccurate recognition of revenue through the failure to recognise proper income entitlements or to apply an inappropriate accounting treatment. In addition, the Directors are required to exercise judgement in determining whether income receivable in the form of special dividends should be classified as ‘revenue’ or ‘capital’ in the Statement of Comprehensive Income. We responded to this risk by performing the following audit procedures: • We obtained an understanding of the processes and controls around revenue recognition and classification of special dividends by reviewing the internal controls reports of the Fund Accountant. • We assessed the appropriateness of the classification of special dividends as revenue or capital by the Directors with reference to publicly available information. For all dividends recorded by the Company, we performed our audit procedures through the use of our proprietary testing tool Halo: • We tested the accuracy of receipts by agreeing the dividend rates from investments to independent market data; • We tested occurrence by examining for each investment holding, that all dividends recorded in the year had been declared in the market; • To test for completeness, we investigated that the appropriate dividends had been received in the year by reference to independent data of dividends declared for all investment holdings held within the year; 90 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Key audit matter How our audit addressed the key audit matter • Tested the accuracy, occurrence, and completeness of net profit from derivatives by agreeing a sample of derivative returns against supporting evidence; and, • For the revenue generated by realised gains, we tested the accuracy and occurrence by agreeing a sample of gains recorded to supporting evidence such as bank statements and broker statements. As stipulated by the requirements set out in the AIC SORP, we tested the allocation and presentation of dividend income between the revenue and capital return columns of the Statement of Comprehensive Income by determining reasons behind dividend distributions. We have no matters to report as a result of this testing. How we tailored the audit scope We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the company, the accounting processes and controls, and the industry in which it operates. All audit procedures were conducted remotely by a UK audit team. We tested and examined information using sampling and other auditing techniques, to the extent we considered necessary to provide a reasonable basis for us to form our own judgements. The impact of climate risk on our audit In planning our audit, we made enquiries of the Directors and the Investment Manager to understand the extent of the potential impact of climate change risk on the Company’s financial statements. The Directors and Investment Manager concluded that the impact on the measurement and disclosures within the financial statements is not material because the majority of the Company’s investment portfolio is made up of level 1 quoted securities which are valued at fair value based on market prices. We found this to be consistent with our understanding of the Company’s investment activities. We also considered the consistency of the climate change disclosures included in the Strategic Report and Investment Manager Report with the financial statements and our knowledge from our audit. Materiality The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: Overall company materiality 6.0m (2023: £5.8m). How we determined it 1% of net assets Rationale for benchmark applied We applied this benchmark, which is a generally accepted auditing practice for investment trust audits. We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2023: 75%) of overall materiality, amounting to £4.5m (2023: £4.3m) for the company financial statements. In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate. We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £297,000 (2023: £288,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons. Independent Auditor’s Report continued Section 4: Financial Statements 91 Conclusions relating to going concern Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included: • evaluating the Directors’ updated risk assessment and considering whether it addressed relevant threats; • evaluating the Directors’ assessment of potential operational impacts, considering their consistency with other available information and our understanding of the business and assessed the potential impact on the financial statements; • reviewing the Directors’ assessment of the Company’s financial position in the context of its ability to meet future expected operating expenses, their assessment of liquidity as well as their review of the operational resilience of the Company and oversight of key third- party service providers; and • assessing the implication of significant reductions in net asset value as a result of a severe but plausible downside in the market’s performance on the ongoing ability of the Company to operate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company’s ability to continue as a going concern. In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. With respect to the Strategic report and Directors’ Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included. Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below. Strategic Report and Directors’ Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors’ Report for the year ended 30 November 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors’ Report. Directors’ Remuneration In our opinion, the part of the Report of the remuneration committee to be audited has been properly prepared in accordance with the Companies Act 2006. Corporate governance statement The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the corporate governance statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate governance statement as other information are described in the Reporting on other information section of this report. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during 92 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 the audit, and we have nothing material to add or draw attention to in relation to: • The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks; • The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation of how these are being managed or mitigated; • The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting in preparing them, and their identification of any material uncertainties to the company’s ability to continue to do so over a period of at least twelve months from the date of approval of the financial statements; • The directors’ explanation as to their assessment of the company’s prospects, the period this assessment covers and why the period is appropriate; and • The directors’ statement as to whether they have a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions. Our review of the directors’ statement regarding the longer- term viability of the company was substantially less in scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements and our knowledge and understanding of the company and its environment obtained in the course of the audit. In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement is materially consistent with the financial statements and our knowledge obtained during the audit: • The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information necessary for the members to assess the company’s position, performance, business model and strategy; • The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and • The section of the Annual Report describing the work of the Audit Committee. We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors. Responsibilities for the financial statements and the audit Responsibilities of the Directors for the financial statements As explained more fully in the Statement of Directors’ responsibilities in respect of the Annual Report and Financial Statements, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non- compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of Section 1158 of the Corporation Tax Act 2010 (see page 63 of the Annual Report), and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such Independent Auditor’s Report continued Section 4: Financial Statements 93 as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase net asset value. Audit procedures performed by the engagement team included: • discussions with the Manager and the Audit Committee, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; • understand the controls implemented by the Company and the Fund Accountant designed to prevent and detect irregularities; • assessment of the Company’s compliance with the requirements of Section 1158 of the Corporation Tax Act 2010, including recalculation of numerical aspects of the eligibility conditions; • identifying and testing journal entries, in particular year end journal entries posted by the Fund Accountant during the preparation of the financial statements; • designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing for example, targeting transactions that otherwise would be immaterial; and • reviewing relevant meeting minutes, including those of the Audit Committee. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected. A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditors’ report. Use of this report This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Other required reporting Companies Act 2006 exception reporting Under the Companies Act 2006 we are required to report to you if, in our opinion: • we have not obtained all the information and explanations we require for our audit; or • adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or • certain disclosures of directors’ remuneration specified by law are not made; or • the financial statements and the part of the Report of the remuneration committee to be audited are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Appointment Following the recommendation of the Audit Committee, we were appointed by the directors on 21 March 2019 to audit the financial statements for the year ended 30 November 2019 and subsequent financial periods. The period of total uninterrupted engagement is 5 years, covering the years ended 30 November 2019 to 30 November 2024. Allan McGrath (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 19 February 2025 94 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Statement of Comprehensive Income for the year ended 30 November 2024 2024 2023 Notes Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Income from investments held at fair value through profit or loss 3 16,070 518 16,588 15,981 – 15,981 Net income from derivatives 3,11 1,024 – 1,024 830 – 830 Other income 3 1,569 – 1,569 1,139 – 1,139 Total income 18,663 518 19,181 17,950 – 17,950 Net profit/(loss) on investments held at fair value through profit or loss 10 – 59,598 59,598 – (28,389) (28,389) Net loss on foreign exchange – (61) (61) – (114) (114) Net profit from derivatives 11 – 12,839 12,839 – 242 242 Total 18,663 72,894 91,557 17,950 (28,261) (10,311) Expenses Investment management and performance fees 4 (644) (3,524) (4,168) (629) (3,903) (4,532) Other operating expenses 5 (922) (21) (943) (792) (20) (812) Total operating expenses (1,566) (3,545) (5,111) (1,421) (3,923) (5,344) Net profit/(loss) on ordinary activities before finance costs and taxation 17,097 69,349 86,446 16,529 (32,184) (15,655) Finance costs 6 (24) (73) (97) (25) (75) (100) Net profit/(loss) on ordinary activities before taxation 17,073 69,276 86,349 16,504 (32,259) (15,755) Taxation (charge)/credit 7 (27) – (27) 6 – 6 Profit/(loss) for the year 17,046 69,276 86,322 16,510 (32,259) (15,749) Earnings/(loss) per ordinary share (pence) 9 18.54 75.37 93.91 16.56 (32.36) (15.80) The total columns of this statement represent the Company’s Statement of Comprehensive Income, prepared in accordance with UK-adopted International Accounting Standards (IAS). The supplementary revenue and capital accounts are both prepared under guidance published by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. All income is attributable to the equity holders of the Company. The Company does not have any other comprehensive income/(loss) (2023: £nil). The net profit/(loss) for the year disclosed above represents the Company’s total comprehensive income/(loss). The notes on pages 98 to 123 form part of these Financial Statements. Section 4: Financial Statements 95 Statement of Changes in Equity for the year ended 30 November 2024 The notes on pages 98 to 123 form part of these Financial Statements. Notes Called up share capital Share premium account Capital redemption reserve Special reserve Capital reserves Revenue reserve Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 For the year ended 30 November 2024 At 30 November 2023 5,160 242,122 11,905 3,231 295,624 17,883 575,925 Total comprehensive income: Net profit for the year – – – – 69,276 17,046 86,322 Transactions with owners, recorded directly to equity: Ordinary shares bought back into treasury 14, 15 – – – (3,213) (48,620) – (51,833) Share buyback costs 14, 15 – – – (18) (247) – (265) Dividends paid 1 8 – – – – – (14,241) (14,241) At 30 November 2024 5,160 242,122 11,905 – 316,033 20,688 595,908 For the year ended 30 November 2023 At 30 November 2022 5,160 242,122 11,905 33,038 327,883 13,249 633,357 Total comprehensive (loss)/income: Net (loss)/profit for the year – – – – (32,259) 16,510 (15,749) Transactions with owners, recorded directly to equity: Ordinary shares bought back into treasury 14, 15 – – – (29,646) – – (29,646) Share buyback costs 14, 15 – – – (161) – – (161) Dividends paid 1 8 – – – – – (11,876) (11,876) At 30 November 2023 5,160 242,122 11,905 3,231 295,624 17,883 575,925 1 Final dividend of 11.45p per share for the year ended 30 November 2023, declared on 2 February 2024 and paid on 28 March 2024 and interim dividend of 3.75p per share for the year ended 30 November 2024, declared on 24 July 2024 and paid on 27 August 2024. 2 Final dividend of 8.50p per share for the year ended 30 November 2022, declared on 10 February 2023 and paid on 31 March 2023 and interim dividend of 3.30p per share for the year ended 30 November 2023, declared on 27 July 2023 and paid on 1 September 2023. For information on the Company’s distributable reserves please refer to note 15 on page 110 . 96 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Notes 2024 2023 £’000 £’000 Non current assets Investments held at fair value through profit or loss 10 557,602 557,594 Current assets Other receivables 12 1,536 2,280 Derivative financial assets held at fair value through profit or loss 11, 16 2,173 703 Current tax asset 400 365 Cash collateral pledged with brokers 11, 16 700 775 Cash and cash equivalents – cash at bank 11, 16 43,889 24,328 Total current assets 48,698 28,451 Total assets 606,300 586,045 Current liabilities Other payables 13 (8,262) (7,740) Derivative financial liabilities held at fair value through profit or loss 11, 16 (360) (1,454) Cash and cash equivalents – bank overdraft – (306) Liability for cash collateral received 11, 16 (1,770) (620) Total current liabilities (10,392) (10,120) Net assets 595,908 575,925 Equity Called up share capital 14 5,160 5,160 Share premium account 15 242,122 242,122 Capital redemption reserve 15 11,905 11,905 Special reserve 15 – 3,231 Capital reserves 15 316,033 295,624 Revenue reserve 15 20,688 17,883 Total shareholders’ funds 595,908 575,925 Net asset value per ordinary share (pence) 9 682.82 600.72 The Financial Statements on pages 94 to 123 were approved and authorised for issue by the Board of Directors on 19 February 2025 and signed on its behalf by Mr Christopher Samuel, Chairman. BlackRock Throgmorton Trust plc Registered in England, No. 00594634 Statement of Financial Position as at 30 November 2024 The notes on pages 98 to 123 form part of these Financial Statements. Section 4: Financial Statements 97 Cash Flow Statement for the year ended 30 November 2024 2024 2023 £’000 £’000 Operating activities Net profit/(loss) on ordinary activities before taxation 1 86,349 (15,755) Add back finance costs 97 100 Net (profit)/loss on investments held at fair value through profit or loss (including transaction costs) (59,598) 28,389 Net profit from derivatives (including transaction costs) (12,839) (242) Financing costs on derivatives (3,230) (2,324) Net loss on foreign exchange 61 114 Sales of investments held at fair value through profit or loss 310,643 207,680 Purchases of investments held at fair value through profit or loss (251,053) (216,892) Net receipts on closure of derivatives 13,505 5,915 Decrease/(increase) in other receivables 63 (470) Increase in other payables 1,499 2,892 Decrease in amounts due from brokers 681 1,321 (Decrease)/increase in amounts due to brokers (734) 2,365 Net movement in cash collateral held with brokers 1,225 (6,025) Net cash inflow from operating activities before taxation 86,669 7,068 Taxation paid (62) (185) Net cash inflow from operating activities 86,607 6,883 Financing activities Interest paid (97) (100) Cash paid for ordinary shares bought back into treasury (52,341) (29,564) Dividends paid (14,241) (11,876) Net cash outflow from financing activities (66,679) (41,540) Increase/(decrease) in cash and cash equivalents 19,928 (34,657) Effect of foreign exchange rate changes (61) (114) Change in cash and cash equivalents 19,867 (34,771) Cash and cash equivalents at start of year 24,022 58,793 Cash and cash equivalents at end of year 43,889 24,022 Comprised of: Cash at bank 412 – Bank overdraft – (306) Cash Fund 2 43,477 24,328 43,889 24,022 1 Dividends and interest received in cash during the year amounted to £15,643,000 and £1,459,000 respectively (2023: £15,499,000 and £1,191,000). 2 Cash Fund represents funds held on deposit with the BlackRock Institutional Cash Series plc – Sterling Liquid Environmentally Aware Fund. The notes on pages 98 to 123 form part of these Financial Statements. 98 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 1. Principal activity The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010. 2. Accounting policies The principal accounting policies adopted by the Company have been applied consistently, other than where new policies have been adopted and are set out below. (a) Basis of preparation The financial statements have been prepared under the historic cost convention modified by the revaluation of certain financial assets and financial liabilities held at fair value through profit or loss and in accordance with UK-adopted International Accounting Standards (IAS), with future changes being subject to endorsement by the UK Endorsement Board and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. All of the Company’s operations are of a continuing nature. Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts, issued by the Association of Investment Companies (AIC) in October 2019 and updated in July 2022, is compatible with UK-adopted IAS, the Financial Statements have been prepared in accordance with the guidance set out in the SORP. Substantially all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future for the period to 30 November 2026, being a period of at least twelve months from the date of approval of the Financial Statements and therefore consider the going concern assumption to be appropriate. The Directors have reviewed the income and expense projections and the liquidity of the investment portfolio in making their assessment. The Directors have considered the impact of climate change on the value of the investments included in the Financial Statements and have concluded that there was no further impact of climate change to be considered as the investments are valued based on market pricing as required by IFRS 13. None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change. The Company’s Financial Statements are presented in Sterling, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All values are rounded to the nearest thousand pounds (£’000) except where otherwise indicated. Adoption of new and amended International Accounting Standards and interpretations: IFRS 17 – Insurance contracts (effective 1 January 2023). This standard replaced IFRS 4 and applies to all types of insurance contracts. IFRS 17 provides a consistent and comprehensive model for insurance contracts covering all relevant accounting aspects. IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction (effective 1 January 2023). The International Accounting Standards Board (IASB) has amended IAS 12 Income Taxes to require companies to recognise deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. According to the amended guidance, a temporary difference that arises on initial recognition of an asset or liability is not subject to the initial recognition exemption if that transaction gave rise to equal amounts of taxable and deductible temporary differences. These amendments might have a significant impact on the preparation of financial statements by companies that have substantial balances of right-of-use assets, lease liabilities, decommissioning, restoration and similar liabilities. The impact for those affected would be the recognition of additional deferred tax assets and liabilities. IAS 8 – Definition of accounting estimates (effective 1 January 2023). The IASB has amended IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help distinguish between accounting policies and accounting estimates, replacing the definition of accounting estimates. IAS 1 and IFRS Practice Statement 2 - Disclosure of accounting policies (effective 1 January 2023). The IASB has amended IAS 1 Presentation of Financial Statements to help preparers in deciding which accounting policies to disclose in their financial statements by stating that an entity is now required to disclose material accounting policies instead of significant accounting policies. Notes to the Financial Statements for the year ended 30 November 2024 Section 4: Financial Statements 99 IAS 12 – International Tax Reform Pillar Two Model Rules (effective 1 January 2023). The IASB has published amendments to IAS 12 Income Taxes to respond to stakeholders’ concerns about the potential implications of the imminent implementation of the OECD pillar two rules on the accounting for income taxes. The amendment is an exception to the requirements in IAS 12 that an entity does not recognise and does not disclose information about deferred tax assets as liabilities related to the OECD pillar two income taxes and a requirement that current tax expenses must be disclosed separately to pillar two income taxes. The amendment of these standards did not have any significant impact on the Company. Relevant International Accounting Standards that have yet to be adopted: IAS 1 – Classification of liabilities as current or non current (effective 1 January 2024). The IASB has amended IAS 1 Presentation of Financial Statements to clarify its requirement for the presentation of liabilities depending on the rights that exist at the end of the reporting period. The amendment requires liabilities to be classified as non current if the entity has a substantive right to defer settlement for at least 12 months at the end of the reporting period. The amendment no longer refers to unconditional rights. IAS 1 – Non current liabilities with covenants (effective 1 January 2024). The IASB has amended IAS 1 Presentation of Financial Statements to introduce additional disclosures for liabilities with covenants within 12 months of the reporting period. The additional disclosures include the nature of covenants, when the entity is required to comply with covenants, the carrying amount of related liabilities and circumstances that may indicate that the entity will have difficulty complying with the covenants. IAS 21 – Lack of exchangeability (effective 1 January 2025). The IASB issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. IFRS 18 – Presentation and disclosure in financial statements (effective 1 January 2027). The IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined management defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes. None of the standards that have been issued, but are not yet effective, are expected to have a material impact on the Company. (b) Presentation of the Statement of Comprehensive Income In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and a capital nature has been presented alongside the Statement of Comprehensive Income. (c) Segmental reporting The Directors are of the opinion that the Company is engaged in a single segment of business being investment business. (d) Income Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the year. Provision is made for any dividends not expected to be received. Special dividends, if any, are treated as a capital or a revenue receipt depending on the facts or circumstances of each particular case. The return on a debt security is recognised on a time apportionment basis so as to reflect the effective yield on the debt security. Deposit interest receivable is accounted for on an accruals basis. Interest income from the Cash Fund is accounted for on an accruals basis. Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash equivalent of the dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital. 100 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 2. Accounting policies continued (e) Expenses All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the revenue column of the Statement of Comprehensive Income, except as follows: • expenses which are incidental to the acquisition or sale of an investment are charged to the capital column of the Statement of Comprehensive Income. Details of transaction costs on the purchases and sales of investments are disclosed within note 10 to the Financial Statements on page 107; • expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated; • the investment management fee and finance costs have been allocated 25% to the revenue account and 75% to the capital account column of the Statement of Comprehensive Income in line with the Board’s expected long term split of returns, in the form of capital gains and income, respectively, from the investment portfolio; and • performance fees are allocated 100% to the capital column of the Statement of Comprehensive Income as fees are generated in connection with enhancing the value of the investment portfolio. (f) Taxation The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date. Where expenses are allocated between capital and revenue accounts, any tax relief in respect of expenses is allocated between capital and revenue returns on the marginal basis using the Company’s effective rate of corporation tax for the accounting period. Deferred taxation is recognised in respect of all temporary differences that have originated but not reversed at the financial reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to pay less taxation in the future have occurred at the financial reporting date. This is subject to deferred taxation assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred taxation assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise. (g) Investments held at fair value through profit or loss In accordance with IFRS 9, the Company classifies its investments at initial recognition as held at fair value through profit or loss and are managed and evaluated on a fair value basis in accordance with its investment strategy and business model. All investments are measured initially and subsequently at fair value through profit or loss. Purchases of investments are recognised on a trade date basis. Sales of investments are recognised at the trade date of the disposal. The fair value of the financial investments is based on their quoted bid price at the financial reporting date, without deduction for the estimated selling costs. This policy applies to all current and non-current asset investments held by the Company. Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as “Net profit/(loss) on investments held at fair value through profit or loss”. Also included within the heading are transaction costs in relation to the purchase or sale of investments. For all financial instrum ents not traded in an active market, the fair value is determined by using various valuation techniques. Valuation techniques include market approach (i.e., using recent arm’s length market transactions adjusted as necessary and reference to the current market value of another instrument that is substantially the same) and the income approach (e.g., discounted cash flow analysis and option pricing models making use of available and supportable market data where possible). See note 2(o) below. (h) Derivatives The Company can hold long and short positions in contracts for difference (CFDs) and index futures which are held at fair value based on the bid prices of the underlying securities in respect of long positions and the offer prices of the underlying securities in respect of short positions. Notes to the Financial Statements continued Section 4: Financial Statements 101 Profits and losses on derivative transactions are recognised in the Statement of Comprehensive Income. They are shown in the capital column of the Statement of Comprehensive Income if they are of a capital nature and are shown in the revenue column of the Statement of Comprehensive Income if they are of a revenue nature. To the extent that any profits or losses are of a mixed revenue and capital nature, they are apportioned between revenue and capital accordingly. Derivative assets and derivative liabilities that are subject to netting arrangements are offset in the Statement of Financial Position. (i) Other receivables and other payables Other receivables and other payables do not carry any interest and are short term in nature and are accordingly stated on an amortised cost basis. (j) Dividends payable Under IAS, final dividends should not be accrued in the Financial Statements unless they have been approved by shareholders before the financial reporting date. Interim dividends should not be recognised in the Financial Statements unless they have been paid. Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity. (k) Foreign currency translation Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction. Foreign currency monetary assets and liabilities and non-monetary assets held at fair value are translated into Sterling at the rate ruling on the financial reporting date. Foreign exchange differences arising on translation are recognised in the Statement of Comprehensive Income as a revenue or capital item depending on the income or expense to which they relate. For investment transactions and investments held at the year end, denominated in a foreign currency, the resulting gains or losses are included in the gain on investments held at fair value through profit or loss in the Statement of Comprehensive Income. (l) Cash and cash equivalents Cash comprises cash in hand and on demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. The Cash Fund is managed by BlackRock Asset Management Ireland Limited and is subject to fees and expenses which are capped at 0.03% of the NAV. The investment is managed as part of the Company’s cash and cash equivalents as defined under IAS 7 and is presented as a cash equivalent in the Financial Statements. (m) Bank borrowings Bank overdrafts are recorded as the proceeds received. Finance charges, including any premium payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Statement of Comprehensive Income using the effective interest rate method and are added to the carrying amount of the instruments to the extent that they are not settled in the period in which they arise. (n) Share repurchases, share reissues and new share issues Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased, and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The full cost of the repurchase is charged to the special reserve. Shares repurchased and held in treasury – the full cost of the repurchase is charged to the special reserve. Where treasury shares are subsequently re-issued: • amounts received to the extent of the repurchase price are credited to the special reserve; and • any surplus received in excess of the repurchase price is taken to the share premium account. Where new shares are issued, the par value is taken to called up share capital and amounts received to the extent of any surplus received in excess of the par value are taken to the share premium account. Share issue costs are charged to the share premium account. Costs on share reissues are charged to the special reserve and capital reserves. (o) Critical accounting estimates and judgements The Directors of the Company make estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Directors do not believe that any accounting judgements or estimates have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. There are no critical accounting estimates or judgements. 102 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 3. Income 2024 2023 £’000 £’000 Investment income: UK dividends 12,887 12,168 UK special dividends 575 1,464 UK property income distributions 803 610 Dividends from UK REITs 1 169 33 Overseas dividends 1,346 1,706 Overseas property income distributions 118 – Dividends from overseas REITs 1 172 – Total investment income 2 16,070 15,981 Net income from derivatives 1,024 830 Other income: Deposit interest 14 3 Interest from Cash Fund 1,530 1,083 Collateral interest 25 53 Total other income 1,569 1,139 Total income 18,663 17,950 1 REITs – real estate investment trusts. 2 UK and overseas dividends are presented based on the country of domicile of the respective underlying portfolio company. Special dividends of £518,000 have been recognised in capital during the year (2023: £nil). 4. Investment management and performance fees 2024 2023 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Investment management fee 644 1,931 2,575 629 1,889 2,518 Performance fee – 1,593 1,593 – 2,014 2,014 Total 644 3,524 4,168 629 3,903 4,532 Investment management fee The investment management fee is calculated at the rate of 0.35% per annum on month end Gross Assets. For the purposes of this note, Gross Assets are defined as the value of the portfolio of the Company, including uninvested cash, with the portfolio valuation based on value at risk (with value at risk being the gross asset value of the long-only portfolio plus the gross value of the underlying equities, long and short, to which the Company is exposed through derivatives including CFDs and index futures). The management fee is charged 25% to the revenue account and 75% to the capital account of the Statement of Comprehensive Income. There is no additional fee for company secretarial and administration services. Performance fee The performance fee is calculated at the rate of 15% of the outperformance of the Company. For the purpose of this note, outperformance is defined as the amount by which the annualised percentage Net Asset Value total return of the Company arithmetically exceeds the annualised percentage return of the Benchmark Index, measured over a rolling two- year performance period. This rate is applied to the average Gross Assets, in that rolling two-year performance period. Outperformance is the amount by which the Net Asset Value total return arithmetically exceeds the Benchmark Index total return. There is a cap on the annual total management and performance fees of 1.25% per financial year of the average Gross Assets over the rolling two-year performance period (the “Cap” or “Capped Amount”) which has the effect of capping the annual performance fees at circa 0.9% of average Gross Assets and which means that the performance fee from any performance period will not exceed 0.9% of average Gross Assets for the relevant performance period. Notes to the Financial Statements continued Section 4: Financial Statements 103 The performance fee is calculated daily for the rolling two-year performance period ending 30 November 2024 and the rolling two-year performance period ending 30 November 2025, and accruals are made in the NAV subject to the Cap. The performance fee is payable on 30 November each year in relation to the rolling two-year performance period ending on that date. The accrual is calculated applying the following assumptions: • The Benchmark Index remains unchanged; • The Net Asset Value total return performs in line with the Benchmark Index total return for the remainder of the respective rolling two-year performance periods ending 30 November 2024 and 30 November 2025; and • The future value of Gross Assets for performance fee purposes is the same at the balance sheet date. The amount of outperformance on which a performance fee has not been paid in a financial year due to the application of the Cap will be carried forward to offset against future shortfall returns. As at 1 December 2024, the carried forward unpaid net outperformance, net of prior period shortfall returns, available to offset against future shortfall returns was 4.8% (1 December 2023: 4.8%). On the first day of the financial year, due to the application of the Cap in the prior financial year, any performance fee for the ongoing rolling two-year performance period not yet recognised is accrued in the daily NAV released to the London Stock Exchange on that day. Performance fees have been wholly allocated to the capital account of the Statement of Comprehensive Income as the performance has been predominantly generated through capital returns from the investment portfolio. For the year ended 30 November 2024, the total accrual of performance fee for all rolling two-year performance periods amounted to £3,607,000 (2023: £2,014,000), calculated as follows: • For the annualised rolling two-year performance period to 30 November 2024, the Company outperformed the benchmark by 2.7% as at 30 November 2024. A performance fee of £2,982,000 relating to this performance period was accrued at the date of this report. • For the annualised rolling two-year performance period to 30 November 2025, the Company has outperformed the benchmark by 0.6% as at 30 November 2024. A performance fee of £625,000 relating to this performance period has been accrued at the date of this report, which does not become payable until 30 November 2025, subject to the ongoing performance of the Company. 104 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 5. Other operating expenses 2024 2023 £’000 £’000 Allocated to revenue: Custody fee 7 7 Auditor’s remuneration 1 70 58 Registrar’s fee 44 44 Directors’ emoluments 2 211 224 Broker fees 48 36 Depositary fees 70 70 Marketing fees 175 149 FCA fees 29 27 Printing and postage fees 55 43 Directors search fees 51 – Directors evaluation fees 30 – AIC fees 22 21 Stock exchange listing fees 36 31 Write back of prior year expenses 3 (27) (12) Other administrative costs 101 94 Total revenue expenses 922 792 Allocated to capital: Custody transaction charges 4 21 20 Total 943 812 The Company’s ongoing charges 5 , calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items were: 0.56% 0.54% The Company’s ongoing charges 5 , calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, including performance fees but excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items were: 0.82% 0.87% 1 No non-audit services were provided by the Company’s auditors. 2 Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report on page 73. The Company has no employees. 3 Relates to audit fees, printing fees, legal fees, professional fees, miscellaneous fees and Directors’ expenses written back during the year (2023: Directors’ recruitment fees, miscellaneous fees and postage fees). 4 For the year ended 30 November 2024, expenses of £21,000 (2023: £20,000) were charged to the capital account of the Statement of Comprehensive Income. These relate to transaction costs charged by the Custodian on sale and purchase trades. 5 Alternative Performance Measures, see Glossary on pages 134 to 138 . Notes to the Financial Statements continued Section 4: Financial Statements 105 6. Finance costs 2024 2023 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Interest paid on bank overdraft 1 2 3 4 12 16 Collateral interest paid 23 71 94 21 63 84 24 73 97 25 75 100 7. Taxation (a) Analysis of charge/(credit) in year 2024 2023 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Current taxation: Overseas taxation 27 – 27 (6) – (6) Total taxation charge/(credit) (note 7(b)) 27 – 27 (6) – (6) (b) Factors affecting total taxation charge/(credit) for the year The taxation assessed for the year is lower (2023: higher) than the standard rate of corporation tax used of 25.00% (2023: blended rate of corporation tax of 23.01% based on a rate of 19.00% up to 31 March 2023 and a rate of 25.00% from 1 April 2023). The differences are explained below: 2024 2023 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Profit/(loss) on ordinary activities before taxation 17,073 69,276 86,349 16,504 (32,259) (15,755) Profit/(loss) on ordinary activities multiplied by standard rate of 25.00% (2023: blended rate of 23.01%) 4,269 17,319 21,588 3,798 (7,423) (3,625) Effects of: Non-taxable UK dividends (3,451) (129) (3,580) (3,144) – (3,144) Non-taxable overseas dividends (337) – (337) (393) – (393) Net (profit)/loss on investments held at fair value through profit or loss – (14,899) (14,899) – 6,533 6,533 Foreign exchange loss – 15 15 – 26 26 Overseas tax suffered 27 – 27 (6) – (6) Disallowed expenses – 5 5 – 5 5 Management expenses not (utilised)/relieved (481) 899 418 (261) 915 654 Net profit from derivatives – (3,210) (3,210) – (56) (56) (4,242) (17,319) (21,561) (3,804) 7,423 3,619 Total taxation charge/(credit) for the year (note 7(a)) 27 – 27 (6) – (6) For the year ended/as at 30 November 2024 the Company had net surplus management expenses of £107.2 million (2023: £105.6 million) and a non-trade loan relationship deficit of £49.2 million (2023: £49.2 million). A deferred tax asset has not been recognised in respect of these losses because the Company is not expected to generate taxable income in a future period in excess of the deductible expenses of that future period. Accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing tax losses. Accordingly, the deferred tax asset of £39.1 million (2023: £38.7 million) has not been recognised as at 30 November 2024 which has been calculated based on the corporation tax rate in effect from 1 April 2023 of 25%, as enacted by the Finance Act 2021. 106 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 8. Dividends 2024 2023 Dividends paid on equity shares: Record date Payment date £’000 £’000 Final dividend of 11.45p per share for the year ended 30 November 2023 (2022: 8.50p) 23 February 2024 28 March 2024 10,841 8,595 Interim dividend of 3.75p per share for the year ended 30 November 2024 (2023: 3.30p) 2 August 2024 27 August 2024 3,400 3,281 Total 14,241 11,876 The total dividends payable in respect of the year ended 30 November 2024 which form the basis of Section 1158 of the Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amounts proposed, meet the relevant requirements as set out in this legislation. 2024 2023 Dividends paid or declared on equity shares: £’000 £’000 Interim dividend of 3.75p per share for the year ended 30 November 2024 (2023: 3.30p) 3,400 3,281 Final dividend of 14.25p per share for the year ended 30 November 2024 1 (2023: 11.45p) 11,603 10,911 Total 15,003 14,192 1 Based on 81,421,864 ordinary shares in issue on 18 February 2025. 9. Earnings/(loss) and net asset value per ordinary share Total revenue, capital earnings/(loss) and net asset value per ordinary share are shown below and have been calculated using the following: Year ended 30 November 2024 Year ended 30 November 2023 Net revenue profit attributable to ordinary shareholders (£’000) 17,046 16,510 Net capital profit/(loss) attributable to ordinary shareholders (£’000) 69,276 (32,259) Total profit/(loss) attributable to ordinary shareholders (£’000) 86,322 (15,749) Equity shareholders’ funds (£’000) 595,908 575,925 The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was: 91,924,583 99,704,909 The actual number of ordinary shares in issue at the end of the year on which the net asset value per ordinary share was calculated was: 87,271,864 95,872,161 Earnings/(loss) per ordinary share Revenue earnings per share (pence) – basic and diluted 18.54 16.56 Capital earnings/(loss) per share (pence) - basic and diluted 75.37 (32.36) Total earnings/(loss) per share (pence) - basic and diluted 93.91 (15.80) As at 30 November 2024 As at 30 November 2023 Net asset value per ordinary share (pence) 682.82 600.72 Ordinary share price (pence) 593.00 579.00 There were no dilutive securities at the year end. Notes to the Financial Statements continued Section 4: Financial Statements 107 10. Investments held at fair value through profit or loss 2024 2023 £’000 £’000 UK listed equity investments held at fair value through profit or loss 426,396 390,979 AIM traded stocks 131,206 166,615 Total value of financial asset investments at 30 November 557,602 557,594 Opening book cost of investments 583,950 572,761 Investment holding losses (26,356) 4,010 Opening fair value 557,594 576,771 Analysis of transactions made during the year: Purchases at cost 251,053 216,892 Sales proceeds received (310,643) (207,680) Gains/(losses) on investments 1 59,598 (28,389) Closing fair value 557,602 557,594 Closing book cost of investments 518,134 583,950 Closing investment holding gains/(losses) 39,468 (26,356) Closing fair value 557,602 557,594 1 The gains on investments for the year ended 30 November 2024 do not include special dividends totalling £518,000 that were recognised in capital (please see note 3). The Company received £310,643,000 (2023: £207,680,000) from investments sold in the year. The book cost of these investments when they were purchased was £316,869,000 (2023: £205,703,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of investments. During the year, transaction costs of £1,166,000 (2023: £975,000) were incurred on the acquisition of investments. Costs relating to the disposal of investments during the year amounted to £215,000 (2023: £141,000). All transactions costs have been included within the capital reserves. 108 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 11. Derivatives The Company may use a variety of derivative contracts, and during the year entered into a number of index futures contracts and contracts for difference (CFDs). CFDs are synthetic equities and are valued by reference to the market values of the investments’ underlying securities. The sources of the return under the derivative contract (e.g., notional dividends, financing costs, interest returns and realised and unrealised gains and losses) are allocated to the revenue and capital accounts in alignment with the nature of the underlying source of income and in accordance with the guidance given in the AIC SORP. Notional dividend income or expense arising on long or short positions is apportioned wholly to the revenue account. Notional interest income on short positions is allocated wholly to the revenue account. Notional interest expense on long and short positions is apportioned between revenue and capital in accordance with the Board’s long term expected returns of the Company (currently determined to be 25% to revenue and 75% to capital). Changes in value relating to underlying price movements of securities in relation to long and short derivative exposures are allocated to capital. A summary of the various sources of return on the derivative contracts is given in the table below. 2024 2023 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Net realised gains relating to underlying price movements – 13,505 13,505 – 5,915 5,915 Net change in unrealised gains/(losses) relating to underlying price movements – 2,564 2,564 – (3,349) (3,349) Notional dividend income on long positions 2,445 – 2,445 2,268 – 2,268 Notional dividend expense on short positions (375) – (375) (666) – (666) Notional interest expense on long positions (1,270) (3,822) (5,092) (961) (2,888) (3,849) Notional interest income on short positions 196 592 788 189 564 753 Futures interest income on long positions 28 – 28 – – – Total return on derivative contracts for the year 1,024 12,839 13,863 830 242 1,072 The net fair values of derivative financial assets and liabilities are set out in the table below: 2024 2023 £’000 £’000 Derivative financial assets held at fair value through profit or loss 2,678 703 Derivative financial liabilities held at fair value through profit or loss (577) (1,352) Derivative financial liabilities: Amounts due to brokers in respect of revaluation losses on index futures (288) (102) Total net derivative financial (liabilities)/assets 1,813 (751) The fair value of derivative positions at 30 November 2024 waspositive £1,813,000 (2023: negative £751,000), comprising gross revaluation gains of £3,937,000 (2023: £3,349,000) and gross revaluation losses of £2,124,000 (2023: £4,100,000). Net realised gains of £13,509,000 (2023: gains of £5,915,000) comprised realised gains of £59,652,000 (2023: £54,428,000) and realised losses of £46,143,000 (2023: £48,513,000). As at 30 November 2024, the Company held cash and cash equivalent balances of £43,889,000 (2023: £24,328,000). The Company also pledged cash of £700,000 (2023: £775,000) on margin accounts with counterparty brokers. This cash represents collateral posted to broker margin accounts in relation to amounts due to brokers in respect of unrealised losses on open derivative positions. As at 30 November 2024 the Company also owed £1,770,000 (2023: £620,000) to brokers in respect of cash collateral received relating to amounts owed by these brokers to cover unrealised gains on open derivative positions. These cash balances are disclosed as an asset of £700,000 on the Statement of Financial Position (2023: £775,000), and an equivalent creditor of £1,770,000 (2023: £620,000) is also shown to reflect the economic entitlement of the broker to these margins until such a time as the open derivative positions are closed out and the profits are realised. To the extent there are any unrealised losses on CFD contracts, the Company will transfer margin monies across to these broker margin deposit accounts. The Investment Manager monitors margin positions on a daily basis to ensure any margin deposit balances are minimised and any amounts owed to the Company are transferred on a timely basis. In the event of default, legal ownership of any monies held in the margin deposit accounts resides with the counterparty broker. Notes to the Financial Statements continued Section 4: Financial Statements 109 12. Other receivables 2024 2023 £’000 £’000 Amounts due from brokers 31 712 Prepayments and accrued income 1,505 1,568 Total 1,536 2,280 13. Other payables 2024 2023 £’000 £’000 Amounts due to brokers 2,074 2,808 Performance fee accrual 3,607 2,014 Accruals for expenses and interest payable 2,581 2,918 Total 8,262 7,740 14. Called up share capital Ordinary shares in issue Treasury shares Total shares Nominal value number number number £’000 Allotted, called up and fully paid share capital comprised: Ordinary shares of 5 pence each At 30 November 2022 101,158,864 2,051,000 103,209,864 5,160 Ordinary shares bought back into treasury (5,286,703) 5,286,703 – – At 30 November 2023 95,872,161 7,337,703 103,209,864 5,160 Ordinary shares bought back into treasury (8,600,297) 8,600,297 – – At 30 November 2024 87,271,864 15,938,000 103,209,864 5,160 During the year ended 30 November 2024, the Company bought back 8,600,297 shares into treasury (2023: 5,286,703) for a total consideration of £52,098,000 (2023: £29,807,000) including costs. Since 30 November 2024 and up to 18 February 2025, 5,850,000 shares have been bought back into treasury for a total consideration of £34,228,000 . The ordinary shares give shareholders voting rights, the entitlement to all of the capital growth in the Company’s assets and to all income from the Company that is resolved to be distributed. 110 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 15. Reserves Distributable reserves Share premium account Capital redemption reserve Special reserve Capital reserve arising on investments sold Capital reserve arising on revaluation of investments held Revenue reserve £’000 £’000 £’000 £’000 £’000 £’000 At 30 November 2023 242,122 11,905 3,231 322,729 (27,105) 17,883 Movement during the year: Total comprehensive income: Net profit for the year – – – 895 68,381 17,046 Transactions with owners, recorded directly to equity: Ordinary shares bought back into treasury – – (3,213) (48,620) – – Share buyback costs – – (18) (247) – – Dividends paid – – – - – (14,241) At 30 November 2024 242,122 11,905 – 274,757 41,276 20,688 Distributable reserves Share premium account Capital redemption reserve Special reserve Capital reserve arising on investments sold Capital reserve arising on revaluation of investments held Revenue reserve £’000 £’000 £’000 £’000 £’000 £’000 At 30 November 2022 242,122 11,905 33,038 321,274 6,609 13,249 Movement during the year: Total comprehensive income/(loss): Net profit/(loss) for the year – – – 1,455 (33,714) 16,510 Transactions with owners, recorded directly to equity: Ordinary shares bought back into treasury – – (29,646) – – – Share buyback costs – – (161) – – – Dividends paid – – – – – (11,876) At 30 November 2023 242,122 11,905 3,231 322,729 (27,105) 17,883 The share premium account and capital redemption reserves are not distributable reserves under the Companies Act 2006. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable Profits under the Companies Act 2006, the special reserve and capital reserves may be used as distributable reserves for all purposes and, in particular, the repurchase by the Company of its ordinary shares and for payments such as dividends. In accordance with the Company’s Articles of Association, the special reserve, capital reserves and the revenue reserve may be distributed by way of dividend. A t 30 November 2024, the gain on capital reserve arising on the revaluation of investments of £41,276,000 (2023: no gain) is subject to fair value movements and may not be readily realisable at short notice, as such any gains may not be entirely distributable. The investments are subject to financial risks, as such capital reserves (arising on investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments. Notes to the Financial Statements continued Section 4: Financial Statements 111 16. Risk management policies and procedures The Company’s investment activities expose it to various types of risks which are associated with the financial instruments and markets in which it invests. The following information is not intended to be a comprehensive summary of all risks and shareholders should refer to the Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be found at www.blackrock.com/uk/thrg for a more detailed discussion of the risks inherent in investing in the Company. Risk management framework The following information refers to the risk management framework of the Alternative Investment Fund Manager (AIFM). However, as disclosed in the Corporate Governance Statement on pages 56 to 62 and in the Statement of Directors’ Responsibilities on pages 83 and 84, it is the ultimate responsibility of the Board to ensure that the Company’s risks are appropriately monitored, and to the extent that elements of this are delegated to third party service providers, the Board is responsible for ensuring that the relevant parties are discharging their duties in accordance with the terms of the relevant agreements and taking appropriate action to the extent issues are identified. The Directors of the AIFM review quarterly investment performance reports and receive semi-annual presentations in person from the Investment Manager covering the Company’s performance and risk profile during the year. The AIFM has delegated the day-to-day administration of the investment programme to the Investment Manager. The Investment Manager is also responsible for ensuring that the Company is managed within the terms of its investment guidelines and limits set out in the Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be found at www.blackrock.com/uk/thrg . The AIFM is responsible for monitoring investment performance, product risk monitoring and oversight and has the responsibility for the monitoring and oversight of regulatory and operational risk for the Company. The Directors of the AIFM have appointed a Risk Manager who has responsibility for the daily risk management process with assistance from key risk management personnel of the Investment Manager, including members of the Risk and Quantitative Analysis Group (RQA) which is a centralised group which performs an independent risk management function. RQA independently identifies, measures and monitors investment risk, including climate-related risk, and tracks the actual risk management practices being deployed across the Company. By breaking down the components of the process, RQA has the ability to determine if the appropriate risk management processes are in place. This captures the risk management tools employed, how the levels of risk are controlled, ensuring risk/return is considered in portfolio construction and reviewing outcomes. The AIFM reports to the Audit Committee twice yearly on key risk metrics and risk management processes; in addition, the Depositary monitors the performance of the AIFM and reports to the Audit Committee semi-annually. Any significant issues are reported to the Board as they arise. Risk exposures The risk exposures of the Company are set out as follows: (a) Market risk Market risk arises mainly from uncertainty about future values of financial instruments influenced by other price, currency and interest rate movements. It represents the potential loss the Company may suffer through holding market positions in financial instruments in the face of market movements. A key metric RQA uses to measure market risk is Value-at -Risk (VaR) which encompasses price, currency and interest rate risk. VaR is a statistical risk measure that estimates the potential portfolio loss from adverse market moves in an ordinary market environment. VaR analysis reflects the interdependencies between risk variables (including foreign currency risk, interest rate risk and other price risk), unlike a traditional sensitivity analysis. The VaR calculations are based on a confidence level of 99% with a holding period of not greater than one day and a historical observation period of not less than one year (250 days). A VaR number is defined at a specified probability and a specified time horizon. A 99% one day VaR means that the expectation is that 99% of the time over a one day period the Company will lose less than this number in percentage terms. Therefore, higher VaR numbers indicate higher risk. It is noted that the use of VaR methodology has limitations, namely assumptions that risk factor returns are normally distributed and that the use of historical market data as a basis for estimating future events does not encompass all possible scenarios, particularly those that are of an extreme nature and that the use of a specified confidence level (e.g., 99%) does not take into account losses that occur beyond this level. There is some probability that the loss could be greater than the VaR percentage amounts. These limitations, and the nature of the VaR measure, mean that the Company can neither guarantee that losses will not exceed the VaR amounts indicated, nor that losses in excess of the VaR amounts will not occur more frequently. 112 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued The one-day VaR as at 30 November 2024 and 30 November 2023 (based on a 99% confidence level) was 1.97% and 2.20%, respectively. (i) Market risk arising from other price risk Exposure to other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change, or other events could have a significant impact on the Company and the market price of its investments and could result in increased premiums or discounts to the Company’s net asset value. The Company is exposed to market price risk arising from its equity investments and its exposure to derivative positions. The movements in the prices of these investments result in movements in the performance of the Company. Other price risk sensitivity has been covered by the VaR analysis under the market risk section above. The Company’s exposure to other changes in market prices at 30 November 2024 on its equity investments was £557,602,000 (2023: £557,594,000). In addition, the Company’s gross market exposure to these price changes through its derivatives exposure is set out below. Use of derivatives The Company may utilise both contracts for difference (CFDs) and index futures, as part of its investment policy. These instruments can be highly volatile and potentially expose investors to a higher risk of loss. The low initial margin deposits normally required to establish a position in such instruments permit a high degree of leverage in respect of each transaction. As a result, depending on the type of instrument, a relatively small movement in the price of a contract may result in a profit or loss which is high in proportion to the value of the net exposures in the underlying derivative positions. The Company’s current investment strategy specifically utilises CFDs and index futures. The Company limits the gross market exposure, and therefore the leverage, of this strategy to approximately 30% of the Company’s net assets. The long and short CFD positions have a linear performance to referenced stocks quoted on exchanges and therefore have a volatility profile similar to the underlying stocks. See ‘Management of OTC financial derivative instruments’ paragraph below for gearing through the use of derivatives. Management of other price risk By diversifying the portfolio, where this is appropriate and consistent with the Company’s objective, the risk that a price change of a particular investment will have a material impact on the NAV of the Company is reduced which is in line with the investment objective of the Company. Management of over-the-counter (OTC) financial derivative instruments Economic exposure through derivatives is restricted to 30% of the net asset value of the Company. The gross value represents the aggregate of the long and short exposure without netting and so within this limit market exposure may be significantly less. The net exposure refers to the market exposure the Company has to the underlying securities on long derivative positions, less the market exposure of the underlying securities on which the Company has taken in short derivative positions. Further definitions are provided in the Glossary on pages 134 to 138. To the extent derivatives are used to gear the Company’s portfolio, aggregate leverage through the use of derivatives will not exceed 30% of net assets. The Board’s policy is that net gearing, borrowing less cash, should not exceed 20% of gross assets. Exposures are monitored daily by the Investment Manager and its independent risk management team and can be closed out at any time by the Company, subject to market liquidity. The Company’s Board also reviews exposures regularly. The CFD positions are diversified across sectors and geographies comprising 40 positions as at 30 November 2024 (2023: 42). Notes to the Financial Statements continued Section 4: Financial Statements 113 The gross underlying notional exposures through derivatives at 30 November 2024 and 30 November 2023 were: 2024 £’000 % of net assets 2023 £’000 % of net assets Gross exposure relating to long derivative positions 95,270 16.0 78,277 13.6 Gross exposure relating to short derivative positions 20,120 3.4 22,086 3.8 Index Futures – gross exposure relating to long position 14,282 2.4 5,844 1.0 Gross economic exposure subject to a 30% restriction (see above) 129,672 21.8 106,207 18.4 Net market exposure 89,432 15.0 62,035 10.8 Concentration of exposure to market risks An analysis of the Company’s investment portfolio, and sector analysis, is shown on pages 23 to 31. At 30 November 2024, this shows the majority of the portfolio’s value is in UK companies. Accordingly, there is concentration of exposure to the UK, although it is recognised that an investment’s country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country. (ii) Market risk arising from foreign currency risk Exposure to foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Foreign currency sensitivity risk has been covered by the VaR analysis under the market risk section. As the Company’s objective is to achieve capital growth for shareholders through investment mainly in smaller UK quoted companies, substantially all of the Company’s assets are Sterling denominated. Up to 15% of the Company’s portfolio can be invested in overseas companies. Consequently, at any time a proportion of the Company’s assets, liabilities and income may be denominated in currencies other than Sterling (the Company’s functional currency and that in which it reports its results). There were eight non-Sterling denominated long investment positions and there was one non-Sterling denominated short investment position held within the Company’s portfolio at 30 November 2024 (2023: six long positions and one short position). The fair values of the Company’s monetary items which have foreign currency exposure at 30 November 2024 and 30 November 2023 are shown below. Where the Company’s equity investments which are not monetary items are denominated in a foreign currency, they have been included separately in the analysis so as to show the overall level of exposure. Australian Dollar Canadian Dollar Euro Swedish Konra Swiss Franc US Dollar 2024 £’000 £’000 £’000 £’000 £’000 £’000 Receivables (due from brokers, withholding tax receivable, dividends and other income receivable) – 18 32 3 – – Derivatives – long positions (gross exposure) 7,741 3,303 13,377 – 2,266 6,792 Derivatives – short positions (gross exposure) – – – (1,644) – – Cash and cash equivalents – – – – – – Payables (due to brokers and other payables) (17) (7) (21) – (1) (12) Total foreign currency exposure on net monetary items 7,724 3,314 13,388 (1,641) 2,265 6,780 Investments at fair value through profit and loss that are equities – – 6,307 – – – Total net foreign currency exposure 7,724 3,314 19,695 (1,641) 2,265 6,780 Total net foreign currency exposure as a % of net assets 1.30% 0.56% 3.31% –0.28% 0.38% 1.14% 114 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued Australian Dollar Euro Swedish Krona US Dollar 2023 £’000 £’000 £’000 £’000 Receivables (due from brokers, withholding tax receivable, dividends and other income receivable) – 19 1 – Derivatives – long positions (gross exposure) 4,685 5,283 – 10,416 Derivatives – short positions (gross exposure) – – (2,315) – Cash and cash equivalents – – – – Payables (due to brokers and other payables) (3) (12) – (15) Total foreign currency exposure on net monetary items 4,682 5,290 (2,314) 10,401 Investments at fair value through profit and loss that are equities – 3,729 – – Total net foreign currency exposure 4,682 9,019 (2,314) 10,401 Total net foreign currency exposure as a % of net assets 0.81% 1.57% -0.40% 1.81% Management of foreign currency risk The Investment Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board of the Company on a regular basis. The Investment Manager measures the risk to the Company of the foreign currency exposure by considering the effect on the Company’s net asset value and income of a movement in the exchange rate to which the Company’s assets, liabilities, income and expenses are exposed. The Company does not use financial instruments to mitigate the currency exposure in the period between the time that income is included in the Financial Statements and its receipt. Although permitted, derivative contracts are not used to hedge against exposure to foreign currency risk. Consequently, the Company is exposed to risks that the exchange rate of its reporting currencies, relative to other currencies, may change in a manner which has an adverse effect on the value of the portion of the Company’s assets which are denominated in currencies other than their own currencies. (iii) Market risk arising from interest rate risk Exposure to interest rate risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk specifically through its cash holdings and on positions within the CFD portfolio. Interest rate movements may affect the level of income receivable from any cash at bank and on deposits. The effect of interest rate changes on the earnings of the companies held within the portfolio may have a significant impact on the valuation of the Company’s investments. Movements in interest rates will also have an impact on the financing costs of the CFD derivative contracts. Interest rate sensitivity risk has been covered by the VaR analysis under the market risk section. Interest rate exposure The exposure at 30 November 2024 and 30 November 2023 of financial assets and liabilities to interest rate risk is shown by reference to: • floating interest rates – when the interest rate is due to be re-set; and • fixed interest rates – when the financial instrument is due for repayment. Notes to the Financial Statements continued Section 4: Financial Statements 115 2024 Within one year 2023 Within one year £’000 £’000 Exposure to floating interest rates: Derivative contracts – Notional long derivative positions 95,270 78,277 – Notional short derivative positions (20,120) (22,086) – Notional long index future positions 14,282 5,844 Cash Fund 43,477 24,328 Cash collateral pledged with brokers 700 775 Cash and cash equivalents – cash at bank 412 – Cash and cash equivalents – bank overdraft – (306) Cash collateral received (1,770) (620) Management of interest rate risk The Company is exposed to interest rate risk on cash holdings and CFD positions. The Company incurs charges on long positions when held. The Company incurred a charge based on LIBOR plus 25 basis points for long CFD positions and received a benefit based on LIBOR minus 35 basis points for short positions. For non-Sterling long positions, the Company incurred a charge based on EURIBOR plus 25 basis points for positions denominated in Euros, Bank Bill Swap Rate plus 25 basis points for positions denominated in Australian Dollars, CHF LIBOR plus 30 basis points for positions denominated in Swiss Francs and the Federal Funds Rate plus 18 basis points for positions denominated in US Dollars. For non-Sterling short positions, the Company received a benefit based on EURIBOR minus 25 basis points for positions denominated in Euros and CHF LIBOR minus 30 basis points for positions denominated in Swiss Francs. Notional interest is determined on a gross basis; i.e., for this purpose long and short positions or exposures within the master agreement are not netted for calculation of notional interest. Further details of notional interest arising in the year in relation to derivative positions are given within note 11 to the Financial Statements on page 108 . The Company has additional exposure to interest rate risk in relation to its holding in the Cash Fund. Interest received on this holding in the year was on average 5.52% (2023: 4.73%). The Company does not have any fixed rate exposure at 30 November 2024 or 30 November 2023. Interest rates received on cash balances or paid on bank borrowings, respectively, is set out in the table below: Interest received Interest paid 2024 % % Sterling 4.80 0.00 Interest received Interest paid 2023 % % Sterling 3.84 7.93 (b) Counterparty credit risk Credit risk is the risk that the issuer of a financial instrument will fail to fulfil an obligation or commitment that it has entered into with the Company. The Company is exposed to counterparty credit risk from the parties with which it trades and will bear the risk of settlement default. Counterparty credit risk to the Company arises from transactions to purchase or sell investments and through its positions in long and short derivatives. The major counterparties engaged with the Company are all widely recognised and regulated entities. There we no past due or impaired assets as of 30 November 2024. 116 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued Depositary The Company’s Depositary is The Bank of New York Mellon (International) Limited (BNY or the Depositary) (S&P long term credit rating as at 30 November 2024: AA- (2023: AA-)). The Company’s listed investments are held on its behalf by The Bank of New York Mellon (International) Limited (BNY) as the Company’s Custodian (as sub-delegated by the Depositary). All of the equity assets and cash of the Company are held within the custodial network of the global custodian appointed by the Depositary. Bankruptcy or insolvency of the Depositary/Custodian may cause the Company’s rights with respect to its investments held by the Depositary/Custodian to be delayed or limited. The maximum exposure to this risk at 30 November 2024 is the total value of equity investments held with the Depositary/Custodian and cash and cash equivalents in the Statement of Financial Position. In accordance with the requirements of the depositary agreement, the Depositary will ensure that any agents it appoints to assist in safekeeping the assets of the Company will segregate the assets of the Company. Thus, in the event of insolvency or bankruptcy of the Depositary, the Company’s non-cash assets are segregated and this reduces counterparty credit risk. The Company will, however, be exposed to the counterparty credit risk of the Depositary in relation to the Company’s cash held by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, the Company will be treated as a general creditor of the Depositary in relation to cash holdings of the Company. The Board monitors the Company’s risk by reviewing the custodian’s internal control reports. Counterparties/brokers The Company only invests directly in markets that operate on a delivery versus payment basis, and consequently most investment transactions in listed securities involve simultaneous delivery of securities against cash payment using an approved broker. The risk of default is considered minimal, and the trade will fail if either party fails to meet its obligation. Cash held as security by a counterparty to financial derivative contracts is subject to the credit risk of the counterparty as the Company’s access to its cash could be delayed should the counterparty become insolvent or bankrupt. The following table details the total number of counterparties to which the Company is exposed, the maximum exposure to any one counterparty, the collateral held by the Company against this exposure, the total exposure to all other counterparties and the lowest long term credit rating of any one counterparty (or its ultimate parent if unrated). Total number of counterparties Maximum exposure to any one counterparty 1 Collateral held 1 Total exposure to all other counterparties 1 Lowest credit rating of any one counterparty 2 £’000 £’000 £’000 £’000 2024 5 1,785 700 3,294 A- 2023 5 1,795 400 1,980 A- 1 Calculated on a net exposure basis. 2 Standard & Poor’s ratings. The Company may also be exposed to counterparty risk should there be any rehypothecation of pledged collateral. Collateral is received/paid where the client service agreement states that there should be collateral movements agreed with the counterparty, where there is a requirement for a mark-to-market process or collateralisation to ensure that the Company is protected against any counterparty default. Collateral The Company engages in activities which may require collateral to be provided to a counterparty (pledged collateral) or may hold collateral received (inbound collateral) from a counterparty. Pledged and Inbound cash collateral is paid/received in Sterling. The Company uses inbound collateral received from a counterparty to reduce the counterparty credit risk associated with any trading activity in which the Company has engaged. The collateral received/posted by the Company under the ISDA Master Agreement in respect of variation margin is transferred bilaterally under a title transfer arrangement. Collateral received by the Company in respect of variation margin is held in an account in the name of the Depositary on behalf of the Company. Collateral received is segregated from the assets belonging to the Company’s Depositary. At 30 November 2024, all cash collateral received by the Company in respect of CFD transactions was re-invested in the Cash Fund managed by the Manager or its affiliates as disclosed in the Schedule of Investments. The Company is the legal owner of inbound collateral and can sell the assets and withhold the cash in the case of default. All cash received or posted as collateral has an open maturity tenor as it is not subject to a contractual maturity date. Notes to the Financial Statements continued Section 4: Financial Statements 117 The returns earned by the Company from the reinvestment of cash collateral in the Cash Fund during the year ended 30 November 2024 was 5.52% (2023: 4.73). Cash collateral pledged by the Company is separately identified as an asset in the Statement of Financial Position and is not included as a component of cash and cash equivalents. Inbound cash collateral received by the Company is reflected as a liability on the Statement of Financial Position as cash collateral payable. The cash is subject to certain counterparty credit risk as the Company’s access to its cash could be delayed should the counterparties become insolvent or bankrupt. The fair value of inbound cash collateral and cash collateral pledged is reflected in the Statement of Financial Position and is set out in the table below: Pledged collateral Liability for inbound collateral As at 30 November 2024 As at 30 November 2023 As at 30 November 2024 As at 30 November 2023 £’000 £’000 £’000 £’000 Cash collateral 700 775 (1,770) (620) Receivables Amounts due from brokers are disclosed on the Statement of Financial Position as receivables. The counterparties included in receivables are the same counterparties discussed previously under counterparty credit risk and subject to the same scrutiny by the BlackRock RQA Counterparty and Concentration Risk Team (RQA CCR). The Company monitors the ageing of receivables to mitigate the risk of debtor balances becoming overdue. In summary, the exposure to credit risk at 30 November 2024 and 30 November 2023 was as follows: 2024 3 months or less 2023 3 months or less £’000 £’000 Derivative positions – amounts due from brokers 2,173 703 Cash Fund 43,477 24,328 Cash collateral pledged with brokers 700 775 Cash at bank 412 – Amounts due from brokers 31 712 Total 46,793 26,518 The following table details the Company’s exposure to derivatives and net cash collateral (received/pledged in Sterling) analysed by counterparty as at the balance sheet date: 2024 Name of counterparty Counterparty country of incorporation Receivable/ (payable) for derivatives Cash collateral pledged/ (received) £’000 £’000 JPMorgan United States 1,455 (1,380) Société Générale France 718 (390) BNP Paribas France (72) 700 Merrill Lynch United States (288) – Total 1,813 (1,070) 118 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued 2023 Name of counterparty Counterparty country of incorporation Receivable/ (payable) for derivatives Cash collateral pledged/ (received) £’000 £’000 JPMorgan United States 67 (330) Société Générale France 636 (290) BNP Paribas France (1,352) 400 Merrill Lynch United States (102) 375 Total (751) 155 Management of counterparty credit risk Credit risk is monitored and managed by RQA CCR. The team is headed by BlackRock’s Chief Credit Officer who reports to the Global Head of RQA. Credit authority resides with the Chief Credit Officer and selected team members to whom specific credit authority has been delegated. As such, counterparty approvals may be granted by the Chief Credit Officer, or by identified RQA Credit Risk Officers who have been formally delegated authority by the Chief Credit Officer. The counterparty/credit risk is managed as follows: • transactions are only entered into with those counterparties approved by RQA CCR, with a formal review carried out for each new counterparty and with counterparties selected by RQA CCR on the basis of a number of risk mitigation criteria designed to reduce the risk to the Company of default; • the creditworthiness of financial institutions with whom cash is held is reviewed regularly by the RQA CCR; and • RQA CCR reviews the credit standard of the Company’s brokers on a periodic basis and set limits on the amount that may be due from any one broker. The Board monitors the Company’s counterparty risk by reviewing: • the semi-annual report from the Depositary, which includes the results of periodic site visits to the Company’s Custodian where controls are reviewed and tested; • the Custodian’s Service Organisation Control (SOC 1) reports which include a report by the Custodian’s auditors. This report sets out any exceptions or issues noted as a result of the auditor’s review of the Custodian’s processes; • the Manager’s internal control reports which include a report by the Manager’s auditors. This report sets out any exceptions or issues noted as a result of the auditor’s review of the Manager’s control processes; and • in addition, the Depositary and the Manager report any significant breaches or issues arising to the Board as soon as these are identified. There were no past due assets as at 30 November 2024 (2023: £nil). Offsetting disclosures In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an ISDA Master Agreement or similar agreement with its OTC derivative contract counterparties. An ISDA Master Agreement is an agreement between the Company and the counterparty that governs OTC derivative contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Company has a contractual right to offset with the counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. For financial reporting purposes, the Company does offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Financial Position. The disclosures set out in the following table include financial assets and financial liabilities that are subject to an enforceable master netting agreement or similar agreement. Notes to the Financial Statements continued Section 4: Financial Statements 119 At 30 November 2024 and 2023, the Company’s derivative assets and liabilities (by type) are as follows: At 30 November 2024 At 30 November 2023 Assets Liabilities Assets Liabilities £’000 £’000 £’000 £’000 Derivatives Long derivative positions 3,002 (1,433) 2,344 (3,361) Short derivative positions 935 (403) 1,005 (637) Index future – long position – (288) – (102) Total derivative assets and liabilities in the Statement of Financial Position 3,937 (2,124) 3,349 (4,100) Derivatives not subject to a master netting agreement – – – – Total assets and liabilities subject to a master netting agreement 3,937 (2,124) 3,349 (4,100) The following table presents the Company’s derivative assets and liabilities by counterparty, net of amounts available for offset, under a master netting agreement and net of any related collateral paid/(received) by the Company at 30 November 2024 and 30 November 2023: Derivative assets/ (liabilities) subject to a master netting agreement by a counterparty Derivatives available for offset Net amount as per statement of financial position Non-cash collateral given Cash collateral Net amount of derivative assets/ (liabilities) 1 Counterparty £’000 £’000 £’000 £’000 £’000 £’000 At 30 November 2024 JPMorgan 1,512 (57) 1,455 – (1,380) 75 Société Générale 1,339 (621) 718 – (390) 328 BNP Paribas 1,085 (1,157) (72) – 72 – Merrill Lynch – (288) (288) – – (288) Total as at 30 November 2024 3,936 (2,123) 1,813 – (1,698) 115 At 30 November 2023 JPMorgan 1,758 (1,691) 67 – (67) – Société Générale 827 (191) 636 – (290) 346 BNP Paribas 764 (2,116) (1,352) – 400 (952) Merrill Lynch – (102) (102) – 102 – Total as at 30 November 2023 3,349 (4,100) (751) – 145 (606) 1 Amount represents the net amount receivable/(payable) from/(to) the counterparty in the event of default, and does not include over-collateralised positions. (c) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities. The Company is also exposed to the liquidity risk for margin calls on derivative instruments. At the year end, the Company had no overdraft facility (2023: nil). 120 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued Liquidity risk exposure The remaining undiscounted gross cash flows of the financial liabilities as at 30 November 2024 and 30 November 2023, which are payable in the next 90 days, were as follows: 2024 3 months or less 2023 3 months or less £’000 £’000 Amounts due to brokers, accruals and provisions 8,262 7,740 Derivative financial liabilities held at fair value through profit or loss 360 1,454 Cash collateral received in respect of derivatives 1,770 620 Cash and cash equivalents – bank overdraft – 306 Total 10,392 10,120 Management of liquidity risk Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands. Asset disposals may also be required to meet liquidity needs. However, the timely sale of trading positions can be impaired by many factors including decreased trading volume and increased price volatility. As a result, the Company may experience difficulties in disposing of assets to satisfy liquidity demands. Liquidity risk is not significant as the Company’s assets are investments in listed securities that are readily realisable. The Company is also exposed to liquidity risks from the leverage employed through exposure to long and short derivative positions. The underlying securities of the CFD contracts are all quoted investments that can be realised readily. Short derivative positions are backed by sufficient margin cash to reduce risk. Additional cash is held within the portfolio to further mitigate risk. The Company’s liquidity risk is managed on a daily basis by the Investment Manager in accordance with established policies and procedures in place. The Investment Manager reviews daily forward-looking cash reports which project cash obligations. These reports allow them to manage their obligations. For the avoidance of doubt, none of the assets of the Company are subject to special liquidity arrangements. (d) Valuation of financial instruments Financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value (investments and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 2(g) to the Financial Statements on page 100 . 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 asset or liability. The fair value hierarchy has the following levels: Level 1 – Quoted market price for identical instruments in active markets A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Company does not adjust the quoted price for these instruments. Level 2 – Valuation techniques using observable inputs This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data. Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the- counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs. Notes to the Financial Statements continued Section 4: Financial Statements 121 As at the year end the long and short derivative positions were valued using the underlying equity bid price (offer price in respect of short positions) and the contract price at the inception of the trade or at the trade reset date. There have been no changes to the valuation technique since the previous year or as at the date of this report. Contracts for difference have been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the market prices of the underlying quoted securities to which these contracts expose the Company. Level 3 – Valuation techniques using significant unobservable inputs This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation. This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in measurement of Level 3 assets or liabilities. Fair values of financial assets and financial liabilities The table below sets out fair value measurements using the IFRS 13 fair value hierarchy. Financial assets/(liabilities) at fair value through profit or loss at 30 November 2024 Level 1 Level 2 Level 3 Total £’000 £’000 £’000 £’000 Assets: Equity investments 557,602 – – 557,602 Contracts for difference (fair value) – 2,173 – 2,173 Liabilities: Contracts for difference (fair value) – (72) – (72) Index future (288) – – (288) Total 557,314 2,101 – 559,415 Financial assets/(liabilities) at fair value through profit or loss at 30 November 2023 Level 1 Level 2 Level 3 Total £’000 £’000 £’000 £’000 Assets: Equity investments 557,594 – – 557,594 Contracts for difference (fair value) – 703 – 703 Liabilities: – Contracts for difference (fair value) – (1,352) – (1,352) Index future (102) – – (102) Total 557,492 (649) – 556,843 122 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 16. Risk management policies and procedures continued There were no transfers between levels for financial assets and financial liabilities during the year recorded at fair value as at 30 November 2024 and 30 November 2023. The Company did not hold any Level 3 securities throughout the financial year or as at 30 November 2024 (2023: nil). For exchange listed equity investments, the quoted price is the bid price. Contracts for difference are valued based on the bid price of the underlying quoted securities that the contracts relate to. Substantially, all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any price related risks, including climate risk, in accordance with the fair value related requirements of the Company’s financial reporting framework. (e) Capital management policies and procedures The Company’s capital management objectives are: • to ensure it will be able to continue as a going concern; and • secure long term capital growth and an attractive total return primarily through investing in quoted securities in the UK, as well as through investment in a portfolio of long and short derivative positions and/or comparable equity derivatives. This is to be achieved through an appropriate balance of equity capital, investment in derivatives, and gearing. The policy is that any leverage arising through the Company’s derivative contracts, should not exceed 30% of net assets. Additionally net gearing (borrowing less cash) should not exceed 20% of net assets. The Company’s total capital at 30 November 2024 was £595,908,000 (2023: £575,925,000), comprising capital and reserves. The Board with the assistance of the Investment Manager monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes: • the planned level of gearing, which takes into account the Investment Manager’s view on the market; and • the need to buy back equity shares, either for cancellation or to be held in treasury, which takes account of the difference between the NAV per share and the share price (i.e. the level of share price discount or premium). The Company is subject to externally imposed capital requirements: • as a public company, the Company has a minimum share capital of £50,000; and • in order to be able to pay dividends out of profits available for distribution, the Company has to be able to meet one of the two capital restrictions tests imposed on investment companies by law. During the year, the Company complied with the externally imposed capital requirements to which it was subject. 17. Related party disclosure Directors’ emoluments At the date of this report, the Board consists of six n on-executive Directors, all of whom are considered to be independent of the Manager by the Board. Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report on pages 72 to 75. At 30 November 2024, £16,000 (2023: £18,000) was outstanding in respect of Directors’ fees. Notes to the Financial Statements continued Section 4: Financial Statements 123 Significant Holdings The following investors are: a. funds managed by the BlackRock Group or are affiliates of BlackRock, Inc. (Related BlackRock Funds) or b. investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are as a result, considered to be related parties to the Company (Significant Investors). Total % of shares held by Related BlackRock Funds Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc. Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc. As at 30 November 2024 1.2 n/a n/a As at 30 November 2023 1.3 n/a n/a 18. Transactions with the Investment Manager and AIFM BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of the investment management contract are disclosed in the Directors’ Report on pages 63 and 64 . The investment management fee due for the year ended 30 November 2024 amounted to £2,575,000 (2023: £2,518,000). At the year end, £1,906,000 (2023: £1,864,000) was outstanding in respect of management fees. The performance fee payable for the year ended 30 November 2024 amounted to £2,982,000 (2023: £nil). The total accrual of the performance fee for all rolling two year performance periods amounted to £3,607,000 (2023: £2,014,000), calculated as follows: • For the annualised rolling two-year performance period to 30 November 2024, the Company has outperformed the benchmark by 2.7% as at 30 November 2024. A performance fee of £2,982,000 relating to this performance period has been accrued at the date of this report ; and • For the annualised rolling two-year performance period to 30 November 2025, the Company has outperformed the benchmark by 0.6% as at 30 November 2024. A performance fee of £625,000 to this performance period has been accrued at the date of this report, which does not become payable until 30 November 2025, subject to the ongoing performance of the Company. In addition to the above services, BIM (UK) has provided marketing services. The total fees paid or payable for these services for the year ended 30 November 2024 amounted to £175,000 excluding VAT (2023: £149,000). Marketing fees of £124,000 (2023: £269,000) were outstanding at the year end. The Company has an investment in the BlackRock Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund of £43,477,000 (2023: £24,328,000) which for the year ended 30 November 2024 and 30 November 2023 has been presented in the financial statements as a cash equivalent. The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in Delaware USA. 19. Contingent liabilities There were no contingent liabilities at 30 November 2024 (2023: none). Section 5: Additional information 125 Additional information Lime and minerals group SigmaRoc was another top performer. Lime and limestone are key resources in sustainability, including in the production and recycling of lithium batteries. PHOTO COURTESY OF SIGMAROC 126 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Financial calendar The timing of the announcement and publication of the Company’s results may normally be expected in the months shown below: February Annual results announced and Annual Report and Financial Statements published March Annual General Meeting April Final dividend paid July Interim figures announced and half yearly financial report published August Interim dividend paid Dividend The proposed final dividend in respect of the year ended 30 November 2024 is 14.25 pence per share. The Board also declared an interim dividend of 3. 75 pence per share which was paid on 27 August 2024 to shareholders on the register on 2 August 2024 . Dividend timetable Ordinary shares Ex-dividend date (shares transferred without the dividend) 27 February 2025 Record date (last date for registering transfers to receive the dividend) 28 February 2025 Dividend payment date 11 April 2025 Payment of dividends Cash dividends will be sent by cheque to the first-named shareholder at their registered address. Dividends may also be paid direct into a shareholder’s bank account via BACSTEL-IP (Bankers’ Automated Clearing Service – Telecom Internet Protocol). This may be arranged by contacting the Company’s registrar, Computershare Investor Services PLC, through their secure website www.investorcentre.co.uk , on 0370 707 4016 or by completing the Mandate Instructions section on the reverse of your dividend counterfoil and sending this to the Company’s registrar, Computershare. Dividend confirmations will be sent to shareholders at their registered address, unless other instructions have been given, to arrive on the payment date. Dividend tax allowance The annual tax-free allowance on dividend income across an individual’s entire share portfolio is currently £500. Above this amount, individuals pay tax on their dividend income at a rate dependent on their income tax bracket and personal circumstances. The Company continues to provide registered shareholders with confirmation of the dividends paid and this should be included with any other dividend income received when calculating and reporting total dividend income received. It is a shareholder’s responsibility to include all dividend income when calculating any tax liability. If you have any tax queries, please contact a financial advisor. Dividend reinvestment plan Shareholders may request that their dividends be used to purchase further shares in the Company. Dividend reinvestment forms may be obtained from Computershare Investor Services PLC, through their secure website www.investorcentre.co.uk , or on 0370 707 4016. Shareholders who have already opted to have their dividends reinvested do not need to reapply. Share price The Company’s mid-market ordinary share price is quoted daily in The Financial Times and The Times under ‘Investment Companies’ and in The Daily Telegraph under ‘Investment Trusts’. The share price is also available on the BlackRock website at www.blackrock.com/uk/thrg . Shareholder information Section 5: Additional information 127 ISIN/SEDOL numbers The ISIN/SEDOL numbers and mnemonic codes for the Company’s shares are: Ordinary shares ISIN GB0008910555 SEDOL 0891055 Reuters THRG.L Bloomberg code THRG:LN Share dealing Investors wishing to purchase more shares in the Company or sell all or part of their existing holding may do so through a stockbroker. Most banks also offer this service. Alternatively, please go to www.computershare.com/dealing/uk for a range of dealing services made available by Computershare. Electronic communications We encourage you to play your part in reducing our impact on the environment and elect to be notified by email when your shareholder communications become available online. This means you will receive timely, cost-effective and greener online annual reports, half yearly financial reports and other relevant documentation. Shareholders who opt for this service will receive an e-mail from Computershare with a link to the relevant section of the BlackRock website where the documents can be viewed and downloaded. Please submit your email address by visiting www.investorcentre.co.uk/ecomms (you will need your shareholder reference number, which is given on your share certificate or dividend confirmation). You will continue to receive a printed copy of these reports if you have elected to do so. Alternatively, if you have not submitted your email address nor have elected to receive printed reports, we will write and let you know where you can view these reports online. Electronic proxy voting Shareholders are able to submit their proxy votes electronically via Computershare’s internet site at www.eproxyappointment. com using a unique identification PIN which will be provided with voting instructions and the Notice of Annual General Meeting. CREST members who wish to appoint one or more proxies or give an instruction through the CREST electronic proxy appointment service may do so by using the procedures described in the CREST manual. More details are set out in the notes on the Form of Proxy and the Notice of Annual General Meeting. If you hold your shares through a platform or nominee, you will need to contact them and ask them to appoint you as a proxy in respect of your shares in order to attend, speak and vote at the AGM. CREST The Company’s shares may be held in CREST, an electronic system for uncertificated securities trading. Private investors can continue to retain their share certificates and remain outside the CREST system. Private investors are able to buy and sell their holdings in the same way as they did prior to the introduction of CREST, although there may be differences in dealing charges. 128 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Nominee code Where shares are held in a nominee company name, the Company undertakes: • to provide the nominee company with multiple copies of shareholder communications, so long as an indication of quantities has been provided in advance; and • to allow investors holding shares through a nominee company to attend general meetings, provided the correct authority from the nominee company is available. Nominee companies are encouraged to provide the necessary authority to underlying shareholders to attend the Company’s general meetings. Publication of net asset value/portfolio analysis The NAV per share of the Company is calculated daily, with details of the Company’s investments and performance being published monthly. The daily NAV and monthly information are released through the London Stock Exchange’s Regulatory News Service and are available on the BlackRock website at www.blackrock.com/uk/thrg and through the Reuters News Service under the code ‘BLRKINDEX’, on page 8800 on Topic 3 (ICV terminals) and under ‘BLRK’ on Bloomberg (monthly information only). Online access Other details about the Company are also available on the BlackRock website at www.blackrock.com/uk/thrg . The Financial Statements and other literature are published on the BlackRock website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of the Financial Statements may differ from legislation in their jurisdiction. Shareholders can also manage their shareholding online by using Investor Centre, Computershare’s secure website, at www.investorcentre.co.uk . To access Computershare’s website, you will need your shareholder reference number (SRN) which can be found on paper or electronic communications you have previously received from Computershare. Shareholders who hold a share certificate which has been issued by Capita Registrars should insert a ‘C’ before the shareholder reference number quoted on the certificate. Listed below are the most frequently used features of the website. • Holding enquiry – view balances, values, history, payments and reinvestments • Payments enquiry – view your dividends and other payment types • Address change – change your registered address • Bank details update – choose to receive your dividend payment directly into your bank account instead of by cheque • e-Comms sign -up – choose to receive e-mail notification when your shareholder communications become available instead of paper communications • Outstanding payments – reissue payments using the online replacement service • Downloadable forms – including dividend mandates, stock transfer, dividend reinvestment and change of address forms Individual savings accounts (ISAs) ISAs are a tax-efficient method of investment in the UK and the Company’s shares are eligible investments within a stocks and shares ISA. In the 2023/2024 tax year, investors will be able to invest up to £20,000 in ISAs either as cash or shares. Shareholder information continued Section 5: Additional information 129 Shareholder enquiries The Company’s registrar is Computershare Investor Services PLC. Certain details relating to your holding can be checked through the Computershare Investor Centre website. As a security check, specific information needs to be input accurately to gain access to an individual’s account. This includes the shareholder reference number, available from either the share certificate, form of proxy or dividend confirmation or other electronic communications previously received from Computershare. Shareholders who hold a share certificate which has been issued by Capita Registrars should insert a ‘C’ before the shareholder reference number quoted on the certificate. The address of the Computershare website is www.investorcentre.co.uk . Alternatively, please contact the registrar on 0370 707 4016. Changes of name or address must be notified to the registrar either through Computershare’s website, or in writing to: Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ General enquiries Enquiries about the Company should be directed to: The Company Secretary BlackRock Throgmorton Trust plc 12 Throgmorton Avenue London EC2N 2DL Telephone: 020 7743 3000 Email: [email protected] 130 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Analysis of ordinary shareholders as at 30 November 2024 By type of holder Number of shares 2024 Number of shares 2023 % of total 2024 % of total 2023 Individuals 3,206,734 3,356,536 3.67 3.50 Bank or Nominees 81,480,685 91,954,520 93.31 95.87 Other 2,634,445 603,105 3.02 0.63 Total 87,321,864 95,914,161 100.00 100.00 Excludes 15,938,000 treasury shares held as at 30 November 2024. Number of holders 2024 Number of holders 2023 % of total 2024 % of total 2023 Individuals 701 733 63.21 64.30 Bank or Nominees 361 364 32.55 31.93 Other 47 43 4.24 3.77 Total 1,109 1,140 100.00 100.00 By size of holding Number of shares 2024 Number of shares 2023 % of total 2024 % of total 2023 1 – 10,000 2,349,518 2,424,264 2.69 2.53 10,001 – 100,000 5,474,463 6,052,389 6.27 6.31 100,001 – 1,000,000 25,936,181 16,597,918 29.70 17.30 1,000,001 – 5,000,000 47,509,277 43,214,548 54.41 45.06 Over 5,000,000 6,052,425 27,625,042 6.93 28.80 Total 87,321,864 95,914,161 100.00 100.00 Excludes 15,983,000 treasury shares held as at 30 November 202 4 . Number of holders 2024 Number of holders 2023 % of total 2024 % of total 2023 1 – 10,000 836 858 75.39 75.20 10,001 – 100,000 175 191 15.78 16.74 100,001 – 1,000,000 77 71 6.94 6.22 1,000,001 – 5,000,000 20 17 1.80 1.49 Over 5,000,000 1 4 0.09 0.35 Total 1,109 1,141 100.00 100.00 Section 5: Additional information 131 Net revenue attributable to ordinary shareholders Revenue Earnings per share Dividend per share Total net assets Net asset value per ordinary share Share price Ongoing charges ratio 1 Ongoing charges ratio 2 Year ended 30 November £’000 p p £’000 p p % % 2014 3,797 5.19 4.40 235,445 321.97 270.00 1.10 1.20 2015 5,911 8.08 6.70 286,343 391.55 339.50 1.10 2.30 2016 5,723 7.83 7.50 301,547 412.34 325.00 1.10 1.30 2017 7,396 10.11 9.00 396,846 542.66 457.50 0.87 2.16 2018 8,056 11.02 10.00 379,602 519.08 457.00 0.57 1.29 2019 6,265 8.56 10.20 470,057 634.10 640.00 0.59 1.75 2020 5,379 6.57 10.20 596,215 681.24 682.00 0.60 1.60 2021 11,446 12.15 10.50 935,148 921.91 935.00 0.57 1.38 2022 13,257 12.95 11.10 633,357 626.10 595.00 0.54 0.54 2023 16,510 16.56 14.75 575,925 600.72 579.00 0.54 0.87 2024 17,046 18.54 18.00 595,908 682.82 593.00 0.56 0.82 1 Ongoing charges represent the management fee and all other operating expenses, excluding the performance fee, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non- recurring items as a % of average daily net assets. 2 Ongoing charges represent the management fee, performance fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items as a % of average daily net assets. Ten year record 132 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Registered Office (Registered in England and Wales, No. 00594634) 12 Throgmorton Avenue London EC2N 2DL Investment Manager and Company Secretary BlackRock Investment Management (UK) Limited 1 12 Throgmorton Avenue London EC2N 2DL Email: [email protected] Alternative Investment Fund Manager 2 BlackRock Fund Managers Limited 1 12 Throgmorton Avenue London EC2N 2DL Telephone: 020 7743 3000 Banker, Custodian and Depositary The Bank of New York Mellon (International) Limited 1 160 Queen Victoria Street London EC4V 4LA Registrar Computershare Investor Services PLC 1 The Pavilions Bridgwater Road Bristol BS99 6ZZ Telephone: 0370 707 4016 Independent Auditor PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Stockbroker Winterflood Securities Limited 1 The Atrium Building 25 Dowgate Hill London EC4R 2GA Solicitor Stephenson Harwood LLP 1 Finsbury Circus London, EC2M 7SH Management and other service providers 1 Authorised and regulated by the Financial Conduct Authority. 2 BlackRock Fund Managers Limited (BFM) was appointed as the Alternative Investment Fund Manager on 2 July 2014. BlackRock Investment Management (UK) Limited continues to act as the Investment Manager of the Company under a delegation agreement with BFM. Section 5: Additional information 133 The disclosures below are made in compliance with the requirements of Listing Rule 9.8.4. 9.8.4 (1) The Company has not capitalised any interest in the period under review. 9.8.4 (2) The Company has not published any unaudited financial information in a class 1 circular or prospectus or any profit forecast or profit estimate. 9.8.4 (3) This provision has been deleted. 9.8.4 (4) The Company does not have any long-term incentive schemes in operation. 9.8.4 (5) and (6) No Director of the Company has waived or agreed to waive any current or future emoluments from the Company or any subsidiary undertaking. 9.8.4 (7) The Company allotted no ordinary shares during the year. The Company is a stand-alone entity therefore Listing Rules 9.8.4 (8) and 9.8.4 (9) are not applicable. 9.8.4 (10) There were no contracts of significance subsisting during the period under review to which the Company is a party and in which a Director of the Company is or was materially interested, or between the Company and a controlling shareholder. 9.8.4 (11) This provision is not applicable to the Company. 9.8.4 (12) and (13) There were no arrangements under which a shareholder has waived or agreed to waive any dividends or future dividends. 9.8.4 (14) This provision is not applicable to the Company. KEVIN MAYGER For and on behalf of BlackRock Investment Management (UK) Limited Company Secretary 19 February 2025 Information to be disclosed in accordance with Listing Rule 9.8.4 134 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Alternative Performance Measure (APM) An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly derived from the Financial Statements. The Company’s APMs are set out below and are cross-referenced where relevant to the financial inputs used to derive them as contained in other sections of the Annual Report. Benchmark Index The Company’s Benchmark Index used for performance comparative purposes is the Numis Smaller Companies plus AIM (excluding Investment Companies) Index. Benchmark Index outperformance/underperformance is measured by comparing the Company’s net asset value return (NAV) total return, with the performance of the Benchmark Index on a total return basis. As at 30 November 2024, the Company’s NAV total return was +16.3% and the total return of the Benchmark Index was +14.1%, therefore the Company’s NAV outperformance of the Benchmark Index was 2.2 percentage points. As at 30 November 2024, the Company’s share price return was +5.0% and the total return of the Benchmark Index was +14.1%, therefore the Company’s share price underperformance of the Benchmark Index was 9.1 percentage points. Closed-ended company An investment trust works along the same lines as a unit trust, in that it pools money from investors which is then managed on a collective basis. The main difference is that an investment trust is a company listed on the Stock Exchange and, in most cases, trading takes place in shares which have already been issued, rather than through the creation or redemption of units. As the number of shares which can be issued or cancelled at any one time is limited, and requires the approval of existing shareholders, investment trusts are known as closed-ended funds or companies. This means that investment trusts are not subject to the same liquidity constraints as open-ended funds and can therefore invest in less liquid investments. Contract for difference (CFD) A contract for difference is an agreement to exchange the difference in value of a particular share or index between the time at which a contract is opened and the time at which it is closed. A CFD allows an investor to gain access to the movement in the share price or index by putting down a small amount of cash known as a margin. CFDs do not have an expiry date like options or futures contracts. As opposed to an expiry date a CFD is effectively renewed at the close of each trading day and rolled forward if desired. Discount and premium Investment trust shares frequently trade at a discount to NAV. This occurs when the share price (based on the mid-market share price) is less than the NAV. In this circumstance, the price that an investor pays or receives for a share would be less than the value attributable to it by reference to the underlying assets. The discount is the difference between the share price and the NAV, expressed as a percentage of the NAV. As at 30 November 2024, the share price was 593.00 pence (2023: 579.00 pence) and the audited NAV per share was 682.82 pence (2023: 600.72 pence), therefore giving a discount of 13.2% (2023: 3.6%) (please see note 9 of the Financial Statements for the audited inputs to the calculations). A premium occurs when the share price (based on the mid-market share price) is more than the NAV and investors would therefore be paying more than the value attributable to the shares by reference to the underlying assets. For example, if the share price was 370p and the NAV 365p, the premium would be 1.4%. Discounts and premia are mainly the consequence of supply and demand for the shares on the stock market. Gearing and borrowings The Company may achieve gearing through borrowings or the effect of gearing through an appropriate balance of equity capital, investment in derivatives and borrowings. The maximum exposure the Company may have to derivatives for investment purposes and efficient portfolio management purposes, in aggregate, is 120% of the Company’s gross assets. The Company may use borrowings and enter into derivative transactions that have the effect of gearing the Company’s portfolio to enhance performance. Glossary * Alternative Performance Measure. Section 5: Additional information 135 The Company’s gross and net gearing through the use of long and short CFD positions as at 30 November 2024 and 30 November 2023 is set out in the table below. Gross and net gearing Page 30 November 2024 £’000 30 November 2023 £’000 Long investment positions (excluding BlackRock's Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund) 28 667,154 641,715 (a) Short investment positions 28 20,120 22,086 (b) Gross geared exposure (c = a + b) 687,274 663,801 (c) Net geared exposure (d = a - b) 28 647,034 619,629 (d) Net assets 28 595,908 575,925 (e) Gross gearing % of net assets (f = c/e x 100) (%) 115.3 115.2 (f) Net gearing % of net assets (g = d/e x 100) (%) 108.6 107.6 (g) Gross and net exposure Market exposure gained through a CFD contract refers to the gross market value of the underlying securities to which the investor is exposed through the CFD contract. Gross exposure refers to the total exposure the investor has through both long and short positions added together. For example, an investor who has 110% long market exposure through CFDs and 20% short market exposure through CFDs has gross market exposure of 130%. Net exposure refers to the exposure the investor has through long positions less any short positions. For example, an investor who has 110% long market exposure through CFDs and 20% short market exposure through CFDs has net market exposure of 90%; this method of measurement is looking at the net directional market exposure and takes into account the fact that long and short positions theoretically offset one another when the market moves in a particular direction. Leverage Leverage is defined in the AIFMD as “any method by which the AIFM increases the exposure of an AIF it manages whether through borrowing of cash or securities, or leverage embedded in derivative positions or by any other means”. Leverage is measured in terms of ‘exposure’ and is expressed as a ratio of net asset value: Leverage ratio = exposure net asset value The Directive sets out two methodologies for calculating exposure. These are the Gross Method and the Commitment Method. The treatment of cash and cash equivalent balances in terms of calculating what constitutes an “exposure” under AIFMD differs for these two methods. The definitions for calculating the Gross Method exposures require that “the value of any cash and cash equivalents which are highly liquid investments held in the base currency of the AIF, that are readily convertible to a known amount of cash, are subject to an insignificant risk of change in value and provide a return no greater than the rate of a three-month high quality government bond” should be excluded from exposure calculations. The Commitment Method enables instruments to be netted off to reflect ‘netting’ or ‘hedging’ arrangements and the entity’s exposure is effectively reduced. Long and short exposure CFDs enable an investor to benefit from the price of a stock falling as well as rising. This enables the investor to benefit from negative as well as positive views on individual stocks. Entering into a CFD that results in a profit if the share price movement falls, is referred to as taking a short position. The counterparty pays the investor interest on the cash deposited with it, which collateralises the short positions and deductions are made from the value of the short CFD contract in respect of dividends payable in relation to these stocks. Entering into a CFD contract that results in a profit if the share price movement rises, is referred to as taking a long position. The investor pays a financing charge on long positions and receives payments from the counterparty in respect of dividends payable in relation to these long positions. * Alternative Performance Measure. 136 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 NAV per share (Cum income NAV) This is the value of the Company’s assets attributable to one ordinary share. It is calculated by dividing ‘total equity’ by the total number of ordinary shares in issue (excluding treasury shares) as set out in note 9 to the Financial Statements on page 106 for the audited inputs to the calculation. For example, as at 30 November 2024, total equity was £595,908,000 (2023: £575,925,000) and there were 87,271,864 (2023: 95,872,161) ordinary shares in issue (excluding treasury shares) the NAV was therefore 682.82 pence per ordinary share (2023: 600.72 pence). Total equity is calculated by deducting from the Company’s total assets, its current and long-term liabilities and any provision for liabilities and charges. Net asset value (NAV) and share price return (with dividends reinvested) Performance statistics enable the investor to make performance comparisons between investment trusts with different dividend policies. The performance 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 the dividends paid by the Company assuming these are reinvested in the Company at the prevailing NAV/share price (please see note 9 of the financial statements for the audited inputs to the calculations). NAV total return Page 30 November 2024 30 November 2023 Closing NAV per share (pence) 106 682.82 600.72 Add back quarterly dividends (pence) 106 15.20 11.80 Effect of dividend reinvestment (pence) 0.65 (0.55) Adjusted closing NAV (pence) 698.67 611.97 (a) Opening NAV per share (pence) 106 600.72 626.10 (b) NAV total return (c = ((a - b)/b)) (%) 16.3 (2.3) (c) Share price total return Page 30 November 2024 30 November 2023 Closing share price (pence) 106 593.00 579.00 Add back quarterly dividends (pence) 106 15.20 11.80 Effect of dividend reinvestment (pence) (0.34) (0.54) Adjusted closing share price (pence) 607.86 590.26 (a) Opening share price (pence) 106 579.00 595.00 (b) Share price total return (c = ((a - b)/b)) (%) 5.0 (0.8) (c) NAV total return since 1 July 2008 Page For the period since 1 July 2008 to 30 November 2024 For the period since 1 July 2008 to 30 November 2023 Closing NAV per share (cents) 106 682.82 600.72 Add back quarterly dividends (cents) 121.72 106.52 Effect of dividend reinvestment (cents) 124.17 91.27 Adjusted closing NAV (cents) 928.71 798.51 (a) Opening NAV per share (cents) 162.94 162.94 (b) NAV total return (c = ((a - b)/b)) (%) 470.0 390.1 (c) * Alternative Performance Measure. Glossary continued Section 5: Additional information 137 Share price total return since 1 July 2008 Page For the period since 1 July 2008 to 30 November 2024 For the period since 1 July 2008 to 30 November 2023 Closing share price (pence) 106 593.00 579.00 Add back quarterly dividends (pence) 121.72 106.52 Effect of dividend reinvestment (pence) 131.56 120.57 Adjusted closing share price (pence) 846.28 806.09 (a) Opening share price (pence) 141.00 141.00 (b) Share price total return (c = ((a - b)/b)) (%) 500.2 471.7 (c) Ongoing charges ratio* Ongoing charges (%) = Annualised ongoing charges Average undiluted net asset value in the period Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the investment company as a collective fund. Ongoing charges are based on costs incurred in the year as being the best estimate of future costs and include the annual management charge. As recommended by the AIC in its guidance, ongoing charges are calculated using the Company’s annualised revenue and capital expenses (excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items) expressed as a percentage of the average daily net assets of the Company during the year. The inputs that have been used to calculate the ongoing charges percentage are set out in the following table: Ongoing charges calculation Page 30 November 2024 £’000 30 November 2023 £’000 Management fee 102 2,575 2,518 Other operating expenses 1 104 867 804 Total management fee and other operating expenses 3,442 3,322 (a) Performance fee 102 1,593 2,014 (b) Total management and performance fees and other operating expenses (c = a + b) 5,035 5,336 (c) Average daily net assets in the year 614,187 614,378 (d) Ongoing charges in the year excluding performance fees (e = a/d) (%) 0.56 0.54 (e) Ongoing charges in the year including performance fees (f = c/d) (%) 0.82 0.87 (f) 1 Excluding prior year expenses written back during the year of £27,000 and non-recurring expenses of £82,000 incurred during the year (2023: £nil). Revenue profit and revenue reserves Revenue profit is the net revenue income earned after deduction of fees and expenses allocated to the revenue account and taxation suffered by the Company. Revenue reserves is the undistributed income that the Company keeps as reserves. Investment trusts do not have to distribute all the income they generate after expenses. They may retain up to 15% of revenue generated which will be held in a revenue reserve. This reserve can be used at a later date to supplement dividend payments to shareholders. Treasury shares Treasury shares are shares that a company keeps in its own treasury which are not currently issued to the public. These shares do not pay dividends, have no voting rights and are not included in a company’s total issued share capital amount for calculating percentage ownership. Treasury stock may have come from a repurchase or buy back from shareholders, or it may never have been issued to the public in the first place. Treasury shares may be reissued from treasury to the public to meet demand for a company’s shares in certain circumstances. * Alternative Performance Measure. 138 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Performance attribution 6 months ended 30 November 2024 Year ended 30 November 2024 Return on long portfolio (3.1%) 16.1% Return on short portfolio 0.3% (0.1%) Fees and expenses (0.34%) (1.41%) Accretion from buybacks 0.53% 1.04% NAV return (2.4%) 14.1% Benchmark index (2.3%) 16.3% NAV outperformance of benchmark (6.7%) 5.0% Source: BlackRock. Calculations are estimates and data is not audited. Glossary continued Section 6: Notice of annual general meeting 141 Annual general meeting Shares in tour operator and airline Jet2 rose after the company upgraded guidance having seen record passengers during the ﬁrst half of its ﬁnancial year. Demand increased for both package holidays and ﬂight only options. PHOTO COURTESY OF JET2 142 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Notice is hereby given that the Annual General Meeting of BlackRock Throgmorton Trust plc will be held at the ofﬁces of BlackRock, 12 Throgmorton Avenue, London EC2N 2DL on Tuesday, 25 March 2025 at 12.00 p.m. for the purpose of considering and, if thought ﬁt, passing the following resolutions (which will be proposed in the case of resolutions 1 to 11 , as ordinary resolutions and, in the case of resolutions 12 to 15 , as special resolutions). Ordinary business 1. To receive the report of the Directors of the Company and the Financial Statements for the year ended 30 November 2024, together with the report of the auditor thereon. 2. To approve the Directors’ Remuneration Report for the year ended 30 November 2024 (excluding any content relating to the remuneration policy). 3. To approve a ﬁnal dividend of 14.25 pence per share. 4 . To re-elect Louise Nash as a Director of the Company. 5 . To re-elect Nigel Burton as a Director of the Company. 6. To re-elect Angela Lane as a Director of the Company. 7 . To re-elect Merryn Somerset Webb as a Director of the Company. 8 . To elect James Will as a Director of the Company. 9 . To re-appoint PricewaterhouseCoopers LLP as Auditor to the Company to hold ofﬁce until the conclusion of the next Annual General Meeting of the Company. 10 . To authorise the Audit Committee to determine the Auditor’s remuneration. Special business Ordinary resolution 11 . That, in substitution for all existing authorities, the Directors of the Company be and they are hereby generally and unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the Act), to exercise all the powers of the Company to allot shares in the Company and to grant rights to subscribe for or to convert any security into shares in the Company up to an aggregate nominal amount of £407,109.32 (being 10% of the aggregate nominal amount of the issued share capital excluding treasury shares of the Company at the date of this notice) provided that this authority shall expire at the conclusion of the next Annual General Meeting of the Company to be held in 2026 but so that the Company may, before such expiry, make any offer or agreement which would or might require relevant securities to be allotted pursuant to any such offer or agreement as if the authority hereby conferred had not expired. Special resolutions 12 . That, in substitution for all existing authorities and subject to the passing of resolution 11 , the Directors of the Company be and are hereby empowered pursuant to Sections 570 and 573 of the Companies Act 2006 (the Act) to allot equity securities (as deﬁned in Section 560 of the Act), and to sell equity securities held by the Company as treasury shares (as deﬁned in Section 724 of the Act) for cash pursuant to the authority granted by resolution 11 , as if Section 561(1) of the Act did not apply to any such allotments and sales of equity securities, provided that this power: (a) shall expire at the conclusion of the next Annual General Meeting of the Company to be held in 2026, except that the Company may before such expiry make offers or agreements which would or might require equity securities to be allotted or sold after such expiry and notwithstanding such expiry the Directors may allot and sell equity securities in pursuance of such offers or agreements; (b) shall be limited to the allotment of equity securities and/or sale of equity securities held in treasury for cash up to an aggregate nominal amount of £407,109.32 (representing 10% of the aggregate nominal amount of the issued share capital, excluding treasury shares of the Company at the date of this notice); and (c) shall be limited to the allotment of equity securities and/or the sale of equity securities held in treasury at a price of Notice of annual general meeting Section 6: Notice of annual general meeting 143 not less than the net asset value per share as close as practicable to the allotment or sale. 1 3. That, in substitution for the Company’s existing authority to make market purchases of ordinary shares of 5p in the Company (Shares), the Company be and is hereby authorised in accordance with Section 701 of the Companies Act 2006 (the Act) to make market purchases of Shares (within the meaning of Section 693 of the Act), provided that: (a) the maximum number of Shares hereby authorised to be purchased is 12,205,137 (being 14.99% of the Company’s issued ordinary share capital, excluding treasury shares at the date of this notice); (b) the minimum price (exclusive of expenses) which may be paid for a Share shall be 5p being the nominal value per share; (c) the maximum price (exclusive of expenses) which may be paid for a Share shall be the higher of: (i) 5% above the average of the market value of a Share for the ﬁve business days immediately preceding the date of purchase as derived from the Daily Ofﬁcial List of the London Stock Exchange; and (ii) the higher of the price quoted for (a) the last independent trade of; and (b) the highest current independent bid for, any number of Shares on the trading venue where the purchase is carried out; and (d) unless renewed, the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the Company to be held in 2026 save that the Company may, prior to such expiry, enter into a contract to purchase Shares which will or may be completed or executed wholly or partly after such expiry. All Shares purchased pursuant to the above authority shall be either: (i) held, sold, transferred or otherwise dealt with as treasury shares in accordance with the provisions of the Act; or (ii) cancelled immediately upon completion of the purchase. 14 . That, the period of notice required for general meetings of the Company (other than Annual General Meetings) shall be not less than 14 clear days’ notice. 15 . That, subject to the conﬁrmation of the Court, the amount standing to the credit of the share premium account of the Company be cancelled and the amount of the share premium account so cancelled be credited to a reserve. By order of the Board KEVIN MAYGER For and on behalf of BlackRock Investment Management (UK) Limited Company Secretary 19 February 2025 Registered Ofﬁce: 12 Throgmorton Avenue London EC2N 2DL 144 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Notes: 1. A member entitled to attend and vote at the meeting convened by the above Notice is entitled to appoint one or more proxies to exercise all or any of the rights of the member to attend, speak and vote in his place. A proxy need not be a member of the Company. If a member appoints more than one proxy to attend the meeting, each proxy must be appointed to exercise the rights attached to a different share or shares held by the member. 2. To appoint a proxy, you may use the form of proxy enclosed with this annual report. To be valid, the form of proxy, together with the power of attorney or other authority (if any) under which it is signed or a notarially certiﬁed or ofﬁce copy of the same, must be completed and returned to the ofﬁce of the Company’s registrar in accordance with the instructions printed thereon as soon as possible and in any event by not later than 12.00 p.m. on 21 March 2025. Amended instructions must also be received by the Company’s registrar by the deadline for receipt of forms of proxy. Alternatively, you can vote or appoint a proxy electronically by visiting www.eproxyappointment.com . You will be asked to enter the Control Number, the Shareholder Reference Number and PIN which are printed on the form of proxy. The latest time for the submission of proxy votes electronically is 12.00 p.m. on 21 March 2025. 3. Proxymity Voting – if you are an institutional investor you may also be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io . Your proxy must be lodged by 12.00 p.m. on 21 March 2025 in order to be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated terms and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic appointment of your proxy. 4. Completion and return of the form of proxy will not prevent you from attending the meeting and voting in person. If you have appointed a proxy and attend the meeting in person, your proxy appointment will be automatically terminated. 5. Any person receiving a copy of this Notice as a person nominated by a member to enjoy information rights under Section 146 of the Companies Act 2006 (a Nominated Person) should note that the provisions in Notes 1 and 2 above concerning the appointment of a proxy or proxies to attend the meeting in place of a member, do not apply to a Nominated Person as only ordinary shareholders have the right to appoint a proxy. However, a Nominated Person may have a right under an agreement between the Nominated Person and the member by whom he or she was nominated to be appointed, or to have someone else appointed, as proxy for the meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may have a right under such agreement to give instructions to the member as to the exercise of voting rights at the meeting. 6. Nominated Persons should also remember that their main point of contact in terms of their investment in the Company remains the member who nominated the Nominated Person to enjoy the information rights (or perhaps the custodian or broker who administers the investment on their behalf). Nominated Persons should continue to contact that member, custodian or broker (and not the Company) regarding any changes or queries relating to the Nominated Person’s personal details and interest in the Company (including any administrative matter). The only exception to this is where the Company expressly requests a response from the Nominated Person. 7. Only shareholders registered in the register of members of the Company by not later than 6.00 p.m. two days prior to the time ﬁxed for the meeting shall be entitled to attend and vote at the meeting in respect of the number of the ordinary shares registered in their name at such time. If the meeting is adjourned, the time by which a person must be entered on the register of members of the Company in order to have the right to attend and vote at the adjourned meeting is 6.00 p.m. two days prior to the time of adjournment. Changes to the register of members after the relevant times shall be disregarded in determining the rights of any person to attend and vote at the meeting. 8. In the case of joint holders, the vote of the senior holder who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders and, for this purpose, seniority will be determined by the order in which the names stand in the register of members of the Company in respect of the relevant joint holding. 9. Shareholders who hold their ordinary shares electronically may submit their votes through CREST, by submitting the appropriate and authenticated CREST message so as to be received by the Company’s registrar not later than 48 hours before the start of the meeting. Instructions on how to vote through CREST can be found by accessing the following website: www.euroclear.com/ CREST . Shareholders are advised that CREST and the internet are the only methods by which completed proxies can be submitted electronically. 10. If you are a CREST system user (including a CREST personal member) you can appoint one or more proxies or give an instruction to a proxy by having an appropriate CREST message transmitted. To appoint one or more proxies or to give an instruction to a proxy (whether previously appointed or otherwise) via the CREST system, CREST messages must be received by Computershare (ID number 3RA50) not later than 48 hours before the time appointed for holding the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp generated by the CREST system) from which Computershare is able to retrieve the message. CREST personal members or other CREST sponsored members should contact their CREST sponsor for assistance with appointing proxies via CREST. For further information on CREST procedures, limitations and system timings please refer to the CREST manual. The Company may treat as invalid a proxy appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of The Uncertiﬁcated Securities Regulations 2001. Notice of annual general meeting continued Section 6: Notice of annual general meeting 145 11. If the Chairman, as a result of a proxy appointment, is given discretion as to how the votes subject of those proxies are cast and voting rights in respect of those discretionary proxies, when added to the interest in the Company’s securities already held by the Chairman, result in the Chairman holding such number of voting rights that he has a notiﬁable obligation under the Disclosure Guidance and Transparency Rules, the Chairman will make the necessary notiﬁcations to the Company and the Financial Conduct Authority. As a result, any member holding 3% or more of the voting rights in the Company, who grants the Chairman a discretionary proxy in respect of some or all of those voting rights and so would otherwise have a notiﬁcation obligation under the Disclosure Guidance and Transparency Rules, need not make a separate notiﬁcation to the Company and Financial Conduct Authority. 12. Any questions relevant to the business of the meeting may be asked at the meeting by anyone permitted to speak at the meeting. A shareholder may alternatively submit a question in advance by a letter addressed to the Company Secretary at the Company’s registered ofﬁce. Under Section 319A of the Companies Act 2006, the Company must answer any question a shareholder asks relating to the business being dealt with at the meeting, unless (i) answering the question would interfere unduly with the preparation for the meeting or involve the disclosure of conﬁdential information; (ii) the answer had already been given on a website in the form of an answer to a question; or (iii) it is undesirable in the interests of the Company or the good order of the meeting that the question be answered. 13. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its powers as a member provided that, if it is appointing more than one corporate representative, it does not do so in relation to the same shares. It is therefore no longer necessary to nominate a designated corporate representative. 14. Under Section 527 of the Companies Act 2006, members meeting the threshold requirements set out in that section have the right to require the Company to publish on a website a statement setting out any matter relating to: (i) the audit of the Company’s Financial Statements (including the auditor’s report and the conduct of the audit) that are to be laid before the meeting; or (ii) any circumstance connected with an auditor of the Company ceasing to hold ofﬁce since the previous meeting at which annual ﬁnancial statements and reports were laid in accordance with Section 437 of the Companies Act 2006. The Company may not require the members requesting any such website publication to pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company is required to place a statement on a website under Section 527 of the Companies Act 2006, it must forward the statement to the Company’s auditors not later than the time when it makes the statement available on the website. The business which may be dealt with at the meeting includes any statement that the Company has been required under Section 527 of the Companies Act 2006 to publish on a website. 15. Under Sections 338 and 338A of the Act, members meeting the threshold requirements in those sections have the right to require the Company: (i) to give, to members of the Company entitled to receive notice of the meeting, notice of a resolution which may properly be moved and is intended to be moved at the meeting; and/or (ii) to include in the business to be dealt with at the meeting any matter (other than a proposed resolution) which may be properly included in the business. A resolution may properly be moved, or a matter may properly be included in the business unless: (a) (in the case of a resolution only) it would, if passed, be ineffective (whether by reason of inconsistency with any enactment or the Company’s constitution or otherwise); (b) it is defamatory of any person; or (c) it is frivolous or vexatious. Such a request may be in hard copy form or in electronic form, and must identify the resolution of which notice is to be given or the matter to be included in the business, must be authorised by the person or persons making it, must be received by the Company not later than 11 February 2025, being the date six weeks clear before the meeting and (in the case of a matter to be included in the business only) must be accompanied by a statement setting out the grounds for the request. 16. As at 18 February 2025 (being the last practicable date prior to the publication of this Notice of Annual General Meeting), the Company’s issued share capital consisted of 81,421,864 ordinary shares of 5p each, excluding shares held in treasury. Each ordinary share carries the right to one vote and therefore the total voting rights in the Company as at 18 February 2025 are 81,421,864. 17. Further information regarding the meeting which the Company is required by Section 311A of the Companies Act 2006 to publish on a website in advance of the meeting, can be accessed at www.blackrock.com/uk/thrg . 18. No service contracts exist between the Company and any of the Directors, who hold ofﬁce in accordance with letters of appointment and the Articles of Association. Be ScamSmart Investment scams are designed to look like genuine investments Spot the warning signs Have you been: • contacted out of the blue • promised tempting returns and told the investment is safe • called repeatedly, or • told the offer is only available for a limited time? If so, you might have been contacted by fraudsters. Avoid investment fraud Reject cold calls Check the FCA Warning List Get impartial advice you hand over any money. Seek advice from someone Report a scam Find out more at www.fca.org.uk/scamsmart 1 2 3 Remember: if it sounds too good to be true, it probably is! The FCA Warning List is a list of ﬁrms and individuals we know are operating without our authorisation. If you’ve received unsolicited contact about an investment opportunity, chances are it’s a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is to hang up. If you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at www.fca.org.uk/consumers . You can also call the FCA Consumer Helpline on 0800 111 6768 If you have lost money to investment fraud, you should report it to Action Fraud on 0300 123 2040 or online at www.actionfraud.police.uk SGN001 Share fraud warning 146 BlackRock Throgmorton Trust plc l Annual Report and Financial Statements 30 November 2024 Printed by Park Communications on FSC® certiﬁed paper. Park works to the EMAS standard and its Environmental Management System is certiﬁed to ISO 14001. This publication has been manufactured using 100% offshore wind electricity sourced from UK wind. 100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and, on average 99% of any waste associated with this production will be recycled and the remaining 1% used to generate energy. This document is printed on paper made of material from well-managed FSC®-certiﬁed forests and other controlled sources. www.blackrock.com/uk/thrg

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