City of London Investment Trust PLC

Interim / Quarterly Report • Feb 21, 2025

National Storage Mechanism | Additional information

RNS Number : 9282X

City of London Investment Trust PLC

21 February 2025

LEGAL ENTITY IDENTIFIER: 213800F3NOTF47H6AO55

THE CITY OF LONDON INVESTMENT TRUST PLC

Unaudited Results for the Half-Year Ended 31 December 2024

This announcement contains regulated information

INVESTMENT OBJECTIVE

The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board fully recognises the importance of dividend income to shareholders.

PERFORMANCE

	As at 31 December 2024	As at 30 June 2024
Net asset value ("NAV") per ordinary share	425.1p	424.3p
Premium/(discount)	1.4%	(1.0)%
Net asset value per ordinary share (debt at fair value)	430.8p	429.6p
Premium/(discount) (debt at fair value)	0.0%	(2.2)%
Ordinary share price	431.0p	420.0p
Gearing (debt at par value)	7.6%	7.1%
	Six months to 31 December 2024	Six months to 31 December 2023
Dividends per share	10.5p	10.1p

Dividend yields		As at 31 December 2024		As at 30 June 2024
The City of London Investment Trust plc		4.9%		4.9%
FTSE All-Share Index (Benchmark)		3.8%		3.7%
AIC UK Equity Income sector		4.8%		4.2%
IA UK Equity Income OEIC sector		4.2%		4.3%
Sources: Morningstar Direct, LSEG Datastream
Total return performance to 31 December 2024	6 months %	1 year %	3 years %	5 years %	10 years %
NAV 1	2.8	11.5	24.8	29.2	83.8
Share price 2	5.1	10.6	26.8	25.1	80.1
FTSE All-Share Index (Benchmark)	1.9	9.5	18.5	26.5	81.9
AIC UK Equity Income sector 3	2.7	10.1	16.6	26.9	88.2
IA UK Equity Income OEIC sector 4	1.4	8.7	13.8	20.0	66.2

Sources: Morningstar Direct, Janus Henderson, LSEG Datastream

1 Net asset value per ordinary share total return with debt at fair value (including dividends reinvested)

2 Share price total return using mid-market closing price

3 AIC UK Equity Income sector size weighted average NAV total return (shareholders' funds)

4 The Investment Association ("IA") peer group average is based on mid-day NAV whereas the returns of the investment trust are calculated using close of business NAV

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

Introduction

City of London achieved a 2.8% net asset value total return during the six months to 31 December 2024 against a backdrop of political change in the UK and USA, uncertain economic prospects globally and cuts in interest rates.

The Markets

Following July's general election, the new Labour government introduced a Budget in October which raised public spending, increased the employer's national insurance tax rate and signalled the removal of the Inheritance Tax exemption for personal pension funds. Growth in the UK economy slowed from the pace of the first half of the year, whilst the Bank of England lowered the base rate to 4.75% through two cuts of 25 basis points. The UK 10-year gilt yield rose from 4.2% to 4.6% during the six months, reflecting concerns about the stickiness of inflation and the prudent sustainability of government finances. Growth in Europe was also weak, with the European Central Bank reducing its deposit rate to 3.0%. Economic growth in the US, in contrast, remained relatively robust, with the US Federal Reserve making three cuts in interest rates to 4.5%.

The UK equity market returned 1.9%, as measured by the FTSE All-Share Index, with medium-sized and small companies slightly outperforming larger peers. The banking sector was a notable outperformer, with banks benefitting through rolling over structural hedges of funds on better terms than had prevailed during the period of ultra-low interest rates. The oil sector, however, was weak with the Brent oil price falling by 7% to $75 per barrel during the six months, reflecting reduced global demand.

Net Asset Value Total Return

City of London's net asset value total return was 2.8%, exceeding the FTSE All-Share Index (1.9%), the AIC UK Equity Income sector average (2.7%) and the IA UK Equity Income OEIC sector average (1.4%). Stock and sector selection contributed to relative outperformance against the Index by 93 basis points. The biggest sector contributor was tobacco, where corporate earnings and dividends were resilient. Imperial Brands was the second biggest stock contributor. The biggest stock contributor was our underweight position in AstraZeneca. The third biggest contributor was NatWest, whose share price rose by 29% during the six months. The biggest detracting sector was aerospace and defence, where Rolls Royce, which we do not hold, continued to perform well despite not paying a dividend, and was our biggest stock detractor. In addition, our holding in BAE Systems gave back some gains, having been a very strong performer over the previous three years.

Earnings and Dividends

Earnings per share declined from 8.8p to 8.4p, compared with the same six-month period last year, mainly due to the change in timing of dividend payments from some investee companies. Another factor was the absence of any special dividends compared with £0.9 million received during the same period last year. This reflected an increasing trend by UK listed companies to substitute dividend distributions with share buy backs to fund shareholder returns, particularly in relation to exceptional profits.

The Board continues to control expenses tightly. City of London's ongoing charge, which represents the investment management fee and other administrative non-interest expenses as a percentage of shareholder funds, is expected to remain around 0.37% during this financial year. This is low compared with almost all other investment trusts and (non-tracker) managed equity investment products.

City of London has declared two interim dividends to date of 5.25p each in respect of this financial year. The Company's diverse portfolio, strong cash flow and revenue reserve give the Board confidence that in line with its objective to provide long-term income and capital growth, it will be able to increase the total annual dividend for the 59th consecutive year. The quarterly dividend rate will be reviewed by the Board before the third interim dividend is declared in April 2025.

Material Events and Transactions during the Period

The Board continued with its stated policy, subject to prevailing conditions, of issuing and buying back shares within a narrow band relative to net asset value. During the six-month period, the Company's shares traded close to net asset value and ended the period with the share price equal to net asset value (valuing debt at fair value) and at a 1.4% premium to net asset value (valuing debt at par value). 28,278 shares were bought back, costing £119,000, at a small discount and no shares were issued.

A new holding was bought in TP ICAP, a leading intermediary in global financial markets. Notable additions were made to Shell, the oil and gas company, and to the diversified Real Estate Investment Trusts, British Land and Land Securities. DS Smith, the paper and packaging company in the process of being taken over by the US company, International Paper, was sold. Pennon, the water utility, was sold ahead of the final determination of the regulatory review of UK water companies. In a tough backdrop for consumer spending, Burberry and DFS Furniture omitted their dividends and were sold. A significant profit was realised with the sale of half the holding in 3i following a very strong share price performance. Some profits were also taken in BAE Systems.

Outlook for the Six Months to 30 June 2025

The UK economy is struggling to grow, with business confidence adversely affected by a combination of the rise in employer's national insurance, the prospect of tighter labour regulations and the well-above inflation increase in the National Minimum Wage from April 2025. Although it seems likely that there will be further interest rate cuts from the current level of 4.5%, the Bank of England's decision is made harder by the ripple effect of government induced cost pressures on inflation. Cuts in interest rates could be well received by investors, who will anticipate an improvement in corporate profits and consumer spending. The outlook for growth in Europe is also weak, with considerable political uncertainty in both France and Germany. The European Central Bank is expected to make further cuts in interest rates which may improve sentiment. Prospects for economic growth are stronger in the US, with its technology sector continuing to generate impressive returns. The policies of the Trump administration, such as in relation to tariffs, currently remain uncertain and the judgement of the potential impact of such policies will feature materially in the Federal Reserve's determination of future interest rates.

Many domestic UK stocks remain on relatively depressed valuations, both absolutely and relatively when compared with their peers in overseas markets. The diversified Real Estate Investment Trusts exemplify this valuation discrepancy, trading on discounts to net asset value of 30% and dividend yields of 6%. It is important to recognise, however, that City of London's portfolio is biased towards companies with overseas sales. At 31 December 2024, some 63% of the underlying sales of investee companies were made overseas. They are therefore well placed to benefit from global growth trends. It is also worth noting the possible signs of a lessening of geo-political tensions, such as the ceasefire in Gaza, and President Trump's proactive engagement in efforts to end the war in Ukraine.

Given the relative attraction of UK equities to their equivalents in overseas markets, especially with regard to dividend yield, it remains the case that investors in UK equities "are paid to hold on". It is encouraging to see many companies taking advantage of their low valuations to buy back their shares "on the cheap". Imperial Brands, City of London's seventh largest holding, has demonstrated the benefits of this approach with its share buy backs over the last two years having been significantly accretive to earnings per share.

More takeovers can be expected from overseas companies and private equity firms while this low relative value of UK equities persists. The dividend yield of UK equities will also become increasingly attractive relative to bank deposit rates as interest rates decline.

Sir Laurie Magnus CBE

Chairman

20 February 2025

FORTY LARGEST INVESTMENTS

Company	Market value 31 December 2024 £'000		Company	Market value 31 December 2024 £'000
HSBC	105,230		Aviva	40,777
Shell	97,802		GSK	40,380
RELX	92,175		IG	39,620
Unilever	85,256		3i	35,640
British American Tobacco	76,293		British Land	30,797
BAE Systems	73,759		Munich Re	28,985
Imperial Brands	73,399		Severn Trent	28,842
Tesco	72,923		Reckitt Benckiser	26,576
NatWest	71,373		SSE	26,466
AstraZeneca	64,354		TotalEnergies	26,465
National Grid	53,701		Schroders	23,872
Barclays	52,021		Sage	21,760
Lloyds Banking	51,493		Swire Pacific	21,725
Rio Tinto	51,481		Glencore	21,204
M&G	51,389		Beazley	20,413
Diageo	49,725		Anglo American	20,094
BP	49,512		Deutsche Telekom	19,651
Phoenix	44,028		Britvic	19,620
Legal & General	43,662		St. James's Place	19,519
Land Securities	40,880		Novartis	18,752
These investments total £1,831,614,000 or 81.0% of the portfolio.
Convertibles and all classes of equity in any one company are treated as one investment.

SECTOR EXPOSURE

As a percentage of the investment portfolio excluding cash

	%
Financials	32.3
Consumer Staples	20.2
Industrials	9.8
Energy	8.1
Health Care	7.3
Consumer Discretionary	6.3
Utilities	5.3
Basic Materials	4.7
Telecommunications	2.6
Real Estate	2.4
Technology	1.0
Total	100.0

Source: Janus Henderson

SECTOR BREAKDOWN OF INVESTMENTS

	Valuation 31 December 2024 £'000				Valuation 31 December 2024 £'000
ENERGY			Industrial Support Services
Oil, Gas and Coal			PayPoint		15,600
BP	97,802		Hays		10,285
Shell	49,512		Inchcape		9,619
TotalEnergies1	26,465				35,504
ENI1	9,673		Total Industrials		222,419
	183,452
Total Energy	183,452		CONSUMER STAPLES
			Beverages
BASIC MATERIALS			Diageo		49,725
Chemicals			Britvic		19,620
Victrex	8,308		Coca-Cola1		10,940
Johnson Matthey	6,014				80,285
	14,322
			Food Producers
Industrial Metals and Mining			Nestlé1		17,803
Rio Tinto	51,481		Hilton Food		9,050
Glencore	21,204		Tate & Lyle		8,638
Anglo American	20,094				35,491
	92,779
Total Basic Materials	107,101		Personal Care, Drug and Grocery Stores
			Unilever	85,256
INDUSTRIALS			Tesco		72,923
Aerospace and Defence			Reckitt Benckiser	26,576
BAE Systems	73,759				184,755
	73,759
			Automobiles and Parts
Construction and Materials			Dowlais		6,740
Ibstock	14,432				6,740
Marshalls	7,338
	21,770		Tobacco
			British American Tobacco		76,293
Electronic and Electrical Equipment			Imperial Brands		73,399
IMI	13,202				149,692
Morgan	11,288		Total Consumer Staples		456,963
Rotork	5,962
XP Power	2,974		HEALTH CARE
	33,426		Medical Equipment and Services
			Smith & Nephew	12,586
General Industrials					12,586
Swire Pacific1	21,725
Smiths	13,720		Pharmaceuticals and Biotechnology
Mondi	11,319		AstraZeneca	64,354
	46,764		GSK		40,380
			Novartis1		18,752
Industrial Engineering			Merck1		16,285
Vesuvius	11,196		Johnson & Johnson1	12,010
	11,196				151,781
			Total Health Care		164,367

	Valuation 31 December 2024 £'000							Valuation 31 December 2024 £'000
CONSUMER DISCRETIONARY				Investment Banking and Brokerage Services
Retailers				M&G				51,389
Kingfisher	11,311			IG				39,620
Halfords	3,930			3i				35,640
	15,241			Schroders				23,872
				St. James's Place				19,519
Media				Rathbones			14,940
RELX	92,175		TP ICAP			11,610
	92,175							196,590
Household Goods and Home Construction				Life Insurance
Persimmon	17,103			Phoenix				44,028
Taylor Wimpey	15,690			Legal & General				43,662
	32,793			Aviva				40,777
				Prudential				7,642
Travel and Leisure								136,109
Young	2,475
	2,475			Non-life Insurance
Total Consumer Discretionary	142,684			Munich Re1				28,985
				Beazley				20,413
TELECOMMUNICATIONS				Direct Line Insurance				12,118
Telecommunications Service Providers				Hiscox				9,189
Deutsche Telekom1	19,651			Sabre Insurance				6,555
BT	14,045							77,260
Vodafone	12,973			Total Financials				698,559
Verizon Communications1	12,782
	59,451			REAL ESTATE
Total Telecommunications	59,451			Real Estate Investment Trusts
				Land Securities	40,880
UTILITIES				British Land				30,797
Electricity				Segro				12,614
SSE	26,466							84,291
		26,466		Total Real Estate				84,291
Gas, Water and Multi-utilities				TECHNOLOGY
National Grid	53,701			Software and Computer Services
Severn Trent	28,842			Sage	21,760
United Utilities	10,515				21,760
	93,058			Total Technology				21,760
Total Utilities	119,524
				TOTAL INVESTMENTS				2,260,571
FINANCIALS
Banks
HSBC	105,230			UK investments				2,065,500
NatWest	71,373			Overseas investments				195,071
Barclays	52,021			TOTAL INVESTMENTS		2,260,571
Lloyds Banking	51,493
Nationwide Building Society 10.25% Var Perp CCDS	8,483
	288,600

1 Overseas listed

All classes of equity in any one company are treated as one investment.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

·   Portfolio and market price

·   Dividend income

·   Investment activity, gearing and performance

·   Tax and regulatory

·   Operational

Information on these risks and how they are managed is given in the Annual Report for the year ended 30 June 2024. In the view of the Board, these principal risks and uncertainties at the year end remain and are as applicable to the remaining six months of the financial year as they were to the six months under review.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge:

•	the condensed set of financial statements has been prepared in accordance with FRS 104 "Interim Financial Reporting".
•	the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of the principal risks and uncertainties for the remaining six months of the year); and
•	the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

On behalf of the Board

Sir Laurie Magnus CBE

Chairman

20 February 2025

INCOME STATEMENT

	(Unaudited) Half-year ended 31 December 2024			(Unaudited) Half-year ended 31 December 2023			(Audited) Year ended 30 June 2024
	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains on investments held at fair value through profit or loss	-	18,690	18,690	-	92,532	92,532	-	200,864	200,864
Income from investments held at fair value through profit or loss	44,017	-	44,017	46,388	-	46,388	109,335	-	109,335
Other interest receivable and similar income	111	-	111	185	-	185	371	-	371
Gross revenue and capital gains	44,128	18,690	62,818	46,573	92,532	139,105	109,706	200,864	310,570
Management fee	(969)	(2,261)	(3,230)	(961)	(2,242)	(3,203)	(1,927)	(4,497)	(6,424)
Other administrative expenses	(591)	-	(591)	(468)	-	(468)	(1,009)	-	(1,009)
Net return before finance costs and taxation	42,568	16,429	58,997	45,144	90,290	135,434	106,770	196,367	303,137
Finance costs	(925)	(1,976)	(2,901)	(737)	(1,535)	(2,272)	(1,666)	(3,520)	(5,186)
Net return before taxation	41,643	14,453	56,096	44,407	88,755	133,162	105,104	192,847	297,951
Taxation on net return	(161)	-	(161)	(201)	-	(201)	(533)	-	(533)
Net return after taxation	41,482	14,453	55,935	44,206	88,755	132,961	104,571	192,847	297,418
Return per ordinary share (note 2)	8.39p	2.93p	11.32p	8.80p	17.67p	26.47p	20.87p	38.48p	59.35p

The total columns of this statement represent the Company's Income Statement, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The accompanying notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

Half-year ended 31 December 2024 (unaudited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other  capital  reserves  £'000	Revenue  reserve  £'000	Total  £'000
At 1 July 2024	125,666	1,072,624	2,707	849,910	46,621	2,097,528
Net return on ordinary activities after taxation	-	-	-	14,453	41,482	55,935
Buyback of 28,278 ordinary shares for treasury	-	-	-	(119)	-	(119)
Dividends paid	-	-	-	-	(51,905)	(51,905)
At 31 December 2024	125,666	1,072,624	2,707	864,244	36,198	2,101,439
Half-year ended 31 December 2023 (unaudited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other  capital  reserves  £'000	Revenue  reserve  £'000	Total  £'000
At 1 July 2023	124,339	1,053,061	2,707	691,463	44,322	1,915,892
Net return on ordinary activities after taxation	-	-	-	88,755	44,206	132,961
Issue of 5,310,000 of new ordinary shares	1,328	19,563	-	-	-	20,891
Dividends paid	-	-	-	-	(50,759)	(50,759)
At 31 December 2023	125,667	1,072,624	2,707	780,218	37,769	2,018,985
Year ended 30 June 2024 (audited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other  capital   reserves  £'000	Revenue  reserve  £'000	Total   £'000
At 1 July 2023	124,339	1,053,061	2,707	691,463	44,322	1,915,892
Net return after taxation	-	-	-	192,847	104,571	297,418
Buyback of 8,301,867 ordinary shares for treasury	-	-	-	(34,400)	-	(34,400)
Issue of 5,310,000 new ordinary shares	1,327	19,563	-	-	-	20,890
Dividends paid	-	-	-	-	(102,272)	(102,272)
At 30 June 2024	125,666	1,072,624	2,707	849,910	46,621	2,097,528

The accompanying notes are an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

	(Unaudited)  31 December  2024  £'000	(Unaudited)  31 December  2023  £'000	(Audited)  30 June  2024  £'000
Investments held at fair value through profit or loss (note 3)
Listed at market value	2,260,571	2,126,376	2,246,245
Investment in subsidiary undertakings	347	347	347
	2,260,918	2,126,723	2,246,592
Current assets
Debtors	8,892	9,541	12,911
Cash at bank	-	1,753	-
	8,892	11,294	12,911
Creditors: amounts falling due within one year	(52,670)	(3,387)	(46,307)
Net current (liabilities)/assets	(43,778)	7,907	(33,396)
Total assets less current liabilities	2,217,140	2,134,630	2,213,196
Creditors: amounts falling due after more than one year	(115,701)	(115,645)	(115,668)
Net assets	2,101,439	2,018,985	2,097,528
Capital and reserves
Called-up share capital (note 4)	125,666	125,667	125,666
Share premium account	1,072,624	1,072,624	1,072,624
Capital redemption reserve	2,707	2,707	2,707
Other capital reserves (note 5)	864,244	780,218	849,910
Revenue reserve	36,198	37,769	46,621
Equity shareholders' funds	2,101,439	2,018,985	2,097,528
Net asset value per ordinary share (note 6)	425.10p	401.66p	424.29p

The accompanying notes are an integral part of these financial statements.

NOTES

1.	Accounting Policy - Basis of Preparation
	The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", issued in July 2022. For the period under review, the Company's accounting policies have not varied from those described in the Annual Report for the year ended 30 June 2024. These financial statements have been neither audited nor reviewed by the Company's auditors. As an investment fund, the Company has the option, which it has taken, not to present a cash flow statement. A cash flow statement is not required when an investment fund meets all the following conditions: substantially all of the entity's investments are highly liquid and are carried at market value; and where a statement of changes in equity is provided.
2.	Return per Ordinary Share
			(Unaudited) Half-year ended 31 December 2024 £'000			(Unaudited) Half-year ended 31 December 2023 £'000			(Audited)  Year ended  30 June  2024   £'000
	The return per ordinary share is based on the following figures:
	Revenue return		41,482			44,206			104,571
	Capital return		14,453			88,755			192,847
	Total		55,935			132,961			297,418
	Weighted average number of ordinary shares in issue for each period		494,334,723			502,285,221			501,134,608
	Revenue return per ordinary share		8.39p			8.80p			20.87p
	Capital return per ordinary share		2.93p			17.67p			38.48p
	Total return per ordinary share		11.32p			26.47p			59.35p
	The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are the same.
3.	Financial Instruments
	The financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value or the Statement of Financial Position amount is a reasonable approximation of fair value (debtors and creditors falling due within one year).           The table below sets out fair value measurements of the investments using the FRS 102 fair value hierarchy.
	Financial assets at fair value through profit or loss at 31 December 2024
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	2,136,162		-			347			2,136,509
	Total	2,136,162		-			347			2,136,509
	Financial assets at fair value through profit or loss at 31 December 2023
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	2,126,376		-			347			2,126,723
	Total	2,126,376		-			347			2,126,723
	Financial assets at fair value through profit or loss at 30 June 2024
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	2,246,245		-			347			2,246,592
	Total	2,246,245		-			347			2,246,592
	Financial liabilities The secured notes, preference stocks and preferred ordinary stock are carried in the Statement of Financial Position at par. At 31 December 2024, the aggregate fair value of the preferred and preference stock was £2,635,000 (31 December 2023: £2,276,000; 30 June 2024: £2,469,000). At 31 December 2024, the fair value of the secured notes was estimated to be £84,840,000 (31 December 2023: £91,658,000; 30 June 2024: £87,069,000). The fair value of the secured notes is calculated using a discount rate which reflects the yield on a UK gilt of similar maturity plus a suitable credit spread. The preference stocks and preferred ordinary stock are categorised as Level 1 in the fair value hierarchy. The secured notes are categorised as Level 3 in the fair value hierarchy.
	Fair value hierarchy categories 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 as follows:            Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the asset or liability, either directly or indirectly; and Level 3: Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability.
	The valuation techniques used by the Company are explained in the accounting policies in note 1 in the Company's Annual Report for the year ended 30 June 2024.
4.	Share Capital
	During the half-year ended 31 December 2024, 28,278 ordinary shares were bought back into treasury for a net payment of £119,000 (half-year ended 31 December 2023: 5,310,000 new ordinary shares issued for total proceeds of £20,890,000; year ended 30 June 2024: 5,310,000 new ordinary shares issued for total proceeds of £20,890,000 and 8,301,867 ordinary shares bought back into treasury for a net payment of £34,400,000). The number of ordinary shares in issue (excluding shares held in treasury) at 31 December 2024 was 494,334,723 (31 December 2023: 502,664,868; 30 June 2024: 494,363,001). There were 8,330,145 shares in treasury at 31 December 2024 (31 December 2023: nil and 30 June 2024: 8,301,867). Since 31 December 2024 to 19 February 2025, a further 10,191,050 shares have been bought back for treasury.
5.	Other Capital Reserves
	At 31 December 2024, the other capital reserves are made up of the capital reserve arising on investments sold which was £378,509,000 (31 December 2023: £362,881,000; 30 June 2024: £346,288,000) and is distributable and the capital reserve arising on revaluation of investments held which was £485,735,000 (31 December 2023: £417,337,000; 30 June 2024: £503,622,000) and which is not distributable.
6.	Net Asset Value per Ordinary Share
	The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £2,101,439,000 (31 December 2023: £2,018,985,000; 30 June 2024: £2,097,528,000) and on 494,334,723 ordinary shares (excluding shares held in treasury) (31 December 2023: 502,664,868; 30 June 2024: 494,363,001) being the number of ordinary shares at the period end.
7.	Transaction Costs
	Purchase transaction costs for the half-year ended 31 December 2024 were £508,000 (half-year ended 31 December 2023: £390,000; year ended 30 June 2024: £1,141,000). These comprise mainly stamp duty and commissions. Sale transaction costs for the half-year ended 31 December 2024 were £42,000 (half-year ended 31 December 2023: £23,000; year ended 30 June 2024: £71,000).
8.	Dividends
	A first interim dividend of 5.25p per ordinary share was paid on 29 November 2024. The second interim dividend of 5.25p per ordinary share (declared on 5 December 2024) will be paid on 28 February 2025 to shareholders on the register on 24 January 2025. The Company's shares went ex-dividend on 23 January 2025.
9.	Related Party Transactions
	Other than the relationship between the Company and its Directors, the provision of services by Janus Henderson is the only related party arrangement currently in place. Other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with this related party affecting the financial position of the Company during the period under review.
10.	Going Concern
	The assets of the Company consist of securities that are readily realisable. The Directors have also considered the current geo-political and macroeconomic uncertainties and the potential for sudden catastrophic events such as pandemics, conflict and climate events, including cash flow forecasting, a review of covenant compliance, including the headroom above the most restrictive covenants, and an assessment of the liquidity of the portfolio. They have concluded that the Company has adequate resources to meet its financial obligations, including the repayment of the bank overdraft, as they fall due for a period of at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
11.	Comparative Information
	The financial information contained in this half-year report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The figures and financial information for the year ended 30 June 2024 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the Report of the Independent Auditors, which was unqualified and did not include a statement under either Section 498(2) or 498(3) of the Companies Act 2006.
12.	Half-Year Report An abbreviated version of the half-year report, the 'Update', will be posted to shareholders in early March 2025. The Update will also be available on the Company's website www.cityinvestmenttrust.com or in hard copy from the Company's registered office.
13.	General Information Company Status
	The City of London Investment Trust plc is a UK domiciled investment trust company.
	ISIN number / SEDOL: ordinary shares: GB0001990497 / 0199049 London Stock Exchange (TIDM) Code: CTY
	Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826
	Legal Entity Identifier (LEI): 213800F3NOTF47H6AO55
	Company Registration Number
	34871
	Registered Office
	201 Bishopsgate, London EC2M 3AE
	Directors and Secretary
	The Directors of the Company are Sir Laurie Magnus CBE (Chairman), Sally Lake (Chair of the Audit and Risk Committee), Clare Wardle (Senior Independent Director), Robert Edward (Ted) Holmes and Ominder Dhillon.
	The Corporate Secretary is Janus Henderson Secretarial Services UK Limited, represented by Sally Porter, ACG.
	Website
	Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.cityinvestmenttrust.com .

For further information please contact:

Job Curtis Fund Manager The City of London Investment Trust plc Telephone: 020 7818 4367
Dan Howe Head of Investment Trusts Janus Henderson Investors Telephone: 020 7818 1818
Harriet Hall PR Director, Investment Trusts Janus Henderson Investors Telephone: 020 7818 2919

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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