25 sep 25   dunedin inc.growth - half-year report dunedin income growth investment trust plc | dig | 288 0 0.0% | mkt cap: 359.1m    rns number : 7059a dunedin income growth inv tst plc 25 september 2025   dunedin income growth investment trust plc   half yearly report for the six months ended 31 july 2025 legal entity identifier (lei):  549300ppxlzpr5jtl763     investment objective the company's objective is to achieve growth of income and capital from a high quality portfolio invested mainly in companies listed or quoted in the united kingdom or companies having significant operations and/or exposure to the united kingdom that meet the company's sustainable and responsible investing approach.   benchmark the company's benchmark is the ftse all-share index (total return). performance is measured on a net asset value total return basis over the long-term.   performance highlights net asset value total return per ordinary shareab  share price total return per ordinary sharea six months ended 31 july 2025 +3.1% six months ended 31 july 2025 +7.1% year ended 31 january 2025 +9.0% year ended 31 january 2025 +8.4% revenue return per ordinary share dividend yielda six months ended 31 july 2025 7.82p as at 31 july 2025 4.8% six months ended 31 july 2024 8.92p as at 31 january 2025 5.0% discount to net asset valueab ongoing charges ratioa as at 31 july 2025 8.4% as at 31 july 2025 0.59% as at 31 january 2025 11.6% as at 31 january 2025 0.56% a considered to be an alternative performance measure. b with debt at fair value (including income).    for further information, please contact: ben heatley head of closed end fund sales aberdeen group plc ben.heatley@aberdeenplc.com    financial highlights and calendar financial highlights 31 july 2025 31 january 2025 % change total assets (£'000)a 454,738 477,187 (4.7) equity shareholders' funds (£'000) 405,435 428,528 (5.4) market capitalisation (£'000) 377,647 384,605 (1.8) net asset value per ordinary share 318.85p 317.55p 0.4 net asset value per ordinary share with debt at fair valueb 324.28p 322.47p 0.6 share price per ordinary share (mid) 297.00p 285.00p 4.2 discount to net asset value with debt at fair valueb 8.4% 11.6% revenue return per ordinary sharec 7.82p 8.92p (12.3) net gearingb 7.1% 10.9% ongoing charges ratiob 0.59% 0.56% a defined as total assets per the statement of financial position less current liabilities (before deduction of bank loans and loan notes). b considered to be an alternative performance measure.    c figure for 31 july 2025 is for six months to that date. figure for 31 january 2025 is for the six months to 31 july 2024. calendar expected payment dates of quarterly dividends 28 november 2025 27 february 2026 29 may 2026 28 august 2026 financial year end 31 january 2026 expected announcement of results for year ended 31 january 2026 march 2026 annual general meeting (london) may 2026    chairman's statement     highlights ·      increased total dividend of at least 19.10p per share for the year ending 31 january 2026, representing an increase of 34.5% compared to the previous year. ·      notional dividend yield of 6.0% on nav and a share price dividend yield of 6.6%. ·      share price total return for the six months of 7.1%. ·      nav total return for the period of 3.1%. ·      narrowing of discount to 8.4% at the period end. review of the period a key development during the period was the announcement by the board of a new dividend policy, providing an increase of 34.5% in the level of dividend and a share price dividend yield of 6.6%. full details of the new policy are contained in the dividend section below. the board has made these changes in the expectation that they will lead, over time, to an increase in demand for the company's shares. the net asset value ("nav") total return for the six months ended 31 july 2025 was 3.1%, underperforming the return of 7.5% from the benchmark, the ftse all-share index. the share price total return for the period was 7.1%, closer to the benchmark return, reflecting a narrowing of the discount to 8.4% at the end of the period. despite a period of significant geopolitical events, most notably the imposition of trade tariffs by the us government, the uk equity market delivered a healthy return. it is disappointing to note, however, that the nav total return generated by the company fell short of this. the majority of this underperformance took place in the last month of the period when the portfolio struggled to match the strong return from the market, which returned nearly 4%. a significant factor in the underperformance overall was the investment manager's quality investment style which remained out of favour with investors, particularly in the second half of the period. a more detailed review of performance for the period is contained within the investment manager's review. earnings revenue earnings per share for the period were 7.82p. this compares to 8.92p for the first half of last year, a reduction of 12.3%. this was mostly due to a lower level of option writing over this period compared to last year. in pence per share terms, option writing was lower by 0.64p compared to the first six months of last year. in addition, last year's income for the first half of the year was boosted by the timing of dividend payments. dividend payments by the underlying portfolio companies have remained incrementally positive. dividend as you may be aware, on 9 september, the board announced that it will significantly increase dividend distributions to shareholders. for the year ending 31 january 2026, it is the board's intention that the company's dividend will be increased to a minimum of 6.0% of the nav as at 31 july 2025 (being the most recent financial quarter end), offering an attractive yield compared to cash, the ftse all-share index and peers in the uk equity income sector. this amounts to a total dividend for the year of at least 19.10p per share, an increase of 34.5% compared to the total dividend of 14.20p for the year ended 31 january 2025. based on the share price of 288p as at 24 september 2025, this represents a notional dividend yield of 6.6%. furthermore, it is the board's intention to continue with a progressive dividend policy with growth in absolute terms in future years from the increased level, and building on the successful long-term track record of dividend increases. the company will fund the dividend cost from a combination of revenue and capital generation thus utilising one of the key benefits of the investment company structure. the rationale for the change is that, over the long-term, income return through dividends has been a significant proportion of the total return generated by the company, and the board is very aware of the importance of regular and reliable dividends to shareholders. the board also has observed the significant change that has taken place in the distribution policy of the businesses in which the company invests. this has seen companies increasingly favour share buy backs over dividend distributions. the net buy back yield alone on the ftse all-share index at the end of 2024 was around 2%, having been close to zero in 2014. at the same time, the total sterling amount of dividend payments expected to be made by uk companies in 2025 is only marginally higher than it was a decade earlier. alongside this, the board notes the substantial increase in interest rates since late 2021 which has made holding cash a more attractive proposition than was the case for the period following the global financial crisis. today, cash rates offer a premium yield comparable with the dividend yield available on the ftse all-share index (3.4%). the board does not expect significant changes to the investment process as a result of the new dividend policy, with the company continuing to focus on high-quality companies and long-term capital and income growth, supported by a disciplined investment approach, together with an integrated sustainability focus. it will, however, give the company's portfolio managers additional flexibility to focus on delivering total returns. a first interim dividend in respect of the year ending 31 january 2026, of 3.20p per share, was paid on 29 august 2025 and the board has already declared a second interim dividend of 4.25p per share, payable on 28 november 2025 to shareholders on the register on 7 november 2025, with an ex-dividend date of 6 november 2025. the remaining dividends for the financial year are expected to comprise a further interim dividend of 4.25p per share payable in february 2026, and a final dividend of at least 7.40p per share payable in may 2026. formal dividend announcements will be made in advance of each of these payments.  for future financial years, the board anticipates three equal interim dividend payments followed by a balancing final dividend. gearing the board believes that the sensible use of modest financial gearing, whilst amplifying market movements in the short term, will enhance both capital and income returns for shareholders over the long term. we also recognise the benefit that having a reasonable proportion of long-term fixed rate funding provides to managing the revenue account, through greater certainty over financing costs. the company currently employs two sources of gearing, a £30 million loan note which matures in 2045, and a £30 million multi-currency credit facility of which £19.5 million was drawn at the period end. with debt valued at par, the company's net gearing decreased from 10.9% to 7.1% during the period, due to a higher level of cash balances being held at the period end. the board believes this remains a relatively conservative level of gearing and the undrawn part of the credit facility provides the company with financial flexibility should opportunities to deploy additional capital arise. discount and share buy backs the share price total return for the period was 7.1%, higher than the 3.1% nav total return, reflecting a narrowing of the discount from 11.6% as at 31 january 2025 to 8.4% at the end of the period (on a cum-income basis with borrowings stated at fair value).  the company continued to buy back shares during the period, with 7.8 million shares bought back at a cost of £22.7 million and an average discount to nav of 8.8%. this provided an estimated enhancement of 0.5% to the nav per share with more than 70% of the buy back activity occurring in the first three months of the period.  board succession as stated in the annual report, we were pleased to announce the appointment of arun kumar sarwal as an independent non-executive director and chair of the audit committee, with effect from the 1 february 2025. both david barron and jasper judd retired from the board at the agm in may, at which point i succeeded david as chairman. we are therefore currently a board of four directors. outlook the board is aware that shareholders will have noted the company's underperformance against the benchmark index for the period, which has extended an unwelcome recent run. however, the directors recognise this has been against a market backdrop which has been severely unfavourable for the investment manager's distinct quality/growth investment style. furthermore, although there have been challenges with a small number of the holdings in the portfolio, the majority are trading well and have delivered robust earnings and share price performances in line with the investment manager's expectations. with a return to a more favourable market environment (perhaps driven by an economy struggling to grow and the need for further interest rate cuts), and combined with the new dividend policy, the board expects that additional demand for the company's shares, especially from retail investors, can reduce further the current discount to nav.   howard williams chairman 24 september 2025   interim management statement     directors' responsibility statement the directors are responsible for preparing the half yearly financial report in accordance with applicable law and regulations. the directors confirm that to the best of their knowledge: -     the condensed set of financial statements has been prepared in accordance with financial reporting standard 104 'interim financial reporting'; -     the interim board report (constituting the interim management report) includes a fair review of the information required by dtr 4.2.7r of the disclosure guidance and transparency rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year; and -     the financial statements include a fair review of the information required by dtr 4.2.8r of the disclosure guidance and transparency rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the company during that period, and any changes in the related party transactions described in the last annual report that could do so. principal risks and uncertainties the board regularly reviews the principal risks and uncertainties faced by the company together with the mitigating actions it has established to manage the risks. these are set out within the strategic report contained within the annual report for the year ended 31 january 2025 and comprise the following risk categories: -     investment objectives -     investment strategies -     investment performance -     sustainable and responsible investing criteria -     income/dividends -     financial/market -     gearing -     regulatory -     operational (including cyber-crime) -     geo-political the company's principal risks and uncertainties have not changed materially since the date of the annual report and are not expected to change materially for the remaining six months of the company's financial year. in addition to those principal risks and uncertainties, the board considers that the development of artificial intelligence ("ai") presents potential risks to businesses in almost every sector. the extent of the risk presented by ai is extremely hard to assess at this point but the board considers that it is an emerging risk and, together with the manager, will monitor developments in this area. there are a number of other risks which, if realised, could have a material adverse effect on the company and its financial condition, performance and prospects. these include a number of existing geo-political risks, including the impact on financial markets of us tariffs. the board is also conscious of the effect of higher inflation on financial markets and the resultant implications for interest rates.   going concern the company's assets consist mainly of equity shares in companies listed on the london stock exchange and in most circumstances are considered to be realisable within a short timescale. the board has set limits for borrowing and derivative contract positions and regularly reviews actual exposures, cash flow projections and compliance with loan covenants. the directors have considered the fact that company's investments comprise readily realisable securities which can be sold to meet funding requirements if necessary. the directors have also performed stress testing on the portfolio and the loan financial covenants. having taken these matters into account, the directors believe that the company has adequate financial resources to continue in operational existence for the foreseeable future and for at least twelve months from the date of this report. accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.   on behalf of the board howard williams chairman 24 september 2025  investment manager's review   performance and market review despite all of the geopolitical events in the first half of this financial year, it is somewhat surprising that the uk equity market was able to deliver a positive absolute return of 7.5%. staging a strong recovery post the 'liberation day' decline, the market shrugged off a combination of highly volatile trade negotiations, a us/israeli attack on iran and a challenging domestic economic and political backdrop. the company's net asset value ("nav") total return was 3.1% for the six months to the end of july 2025. after tracking the benchmark return over the first five months of the period, and outperforming during the market turmoil in april, the portfolio then struggled to match the sharp market rally in july. this led to the company underperforming the benchmark by 4.4% for the period. there were two main drivers of the underperformance. firstly, and most significantly, was the 'style' leadership within the market itself. the ftse all-share index return was heavily concentrated in a narrow selection of large-cap stocks with banks, tobacco and aerospace & defence accounting for over 70% of the benchmark return. our focus on quality and sustainability means we are typically underweight in sectors such as banks. in some cases, such as tobacco and aerospace & defence, these criteria prevent us from investing in them altogether.  rolls royce, british american tobacco and bae systems were particularly strong performers and make up large weightings in the index. overall, quality as a style lagged the market substantially, with the msci uk quality index rising just over 1% in the six month period, thus making it a challenging backdrop for relative performance for our strategy. the second element that held back returns were some stock specific underperformers. this included novo-nordisk which revised down its full year growth expectations for its obesity and diabetes treatments, and the chemical distributor azelis which reported weaker revenue growth in its americas business driven by softness in various end markets. given plenty of alternative options offering better growth prospects, we chose to sell both holdings. despite the weaker returns relative to benchmark, at the company level there was much to be positive about. in particular, we saw five companies deliver very pleasing outcomes with material benefits accruing to their businesses and their share prices. healthcare reit assura attracted significant attention following a takeover approach from both private equity and its listed peer, primary health properties ("php"). asian life insurer prudential delivered strong financial results and accelerated new business growth, an important step in convincing investors it can both deliver on its targets and return significant amounts of capital. asset manager and life insurer m&g announced a substantial step in developing a credible growth strategy for its investment management business with a distribution deal with japanese insurer dai-icihi life that included an agreement to build a stake of 15% in the uk company.  animal genetics leader genus achieved a critical milestone that potentially creates a very significant future revenue source when it received approval from the fda for the development of pigs genetically edited to be resistant to porcine reproductive and respiratory syndrome. finally, closed life book consolidator chesnara announced its largest ever deal, acquiring hsbc life (uk) for £260 million, substantially extending the duration of its cash flows and underpinning the dividend distribution for the long-term. dividend income and gearing on a headline basis, revenues declined in absolute terms during the period. this was driven by a lower level of option income, which was particularly first-half weighted in 2024, an equity base approximately 10% smaller due to the ongoing effect of share buybacks, and the timing of dividend receipts from overseas companies. on an adjusted basis, we estimate that investment income was flat to slightly up, reflecting modest underlying dividend growth from the companies in the portfolio. the level of borrowings remained unchanged over the period. we believe the level of gearing remains appropriate given very attractive valuations for the underlying investments. net gearing was lower at the period end, but this was due to the timing effect of several sales within the portfolio, temporarily elevating the amount of cash on hand, which has since been reinvested.  portfolio activity during the period, we initiated a position in haleon, the leading pure-play consumer healthcare company. it has a strong portfolio of leading brands, such as sensodyne and advil across attractive segments including oral health, respiratory health, pain relief, and vitamins. this should enable it to deliver industry leading revenue growth whilst it has significant opportunities to enhance its margin profile and returns to investors. we also initiated a position in londonmetric, a specialist real estate company focused on attractive sub-sectors including logistics, convenience retail, healthcare, and entertainment, and this supports a high and growing dividend distribution. to partially fund this purchase, we reduced the holding in assura after it became evident that php would succeed in its bid for the company and further upside appeared limited.  in july, we also participated in the rights issue by chesnara, the consolidator of closed life insurance assets, which was undertaken to finance the acquisition of hsbc life (uk). in terms of sales, we exited the position in the construction company morgan sindall. the business has performed extremely strongly in recent years, but the significant increase in the share price and the valuation multiple, meant we saw better opportunities elsewhere. towards the end of the period, we also exited novo-nordisk and azelis as noted above. during the period, we topped up the holdings in oxford instruments and uk housebuilder taylor wimpey where, despite subdued current trading conditions, we see attractive valuations. in particular, the shares in taylor wimpey are at multiples only reached at recent previous crisis points, despite a strong balance sheet and secular demand for housing. we also added further to existing positions in specialist insurer hiscox, m&g and natwest as well as diageo. to fund these purchases, we reduced the holdings in a number of companies including astrazeneca and unilever reflecting their large absolute size and fair valuations. we also trimmed positions on relative strength in telecom plus, genus, and games workshop as they performed strongly and valuations become more stretched.  outlook in recent years, market conditions have not been favourable for our investment approach and it has therefore been a frustrating period for relative performance. however, styles go in and out of favour, and quality as a style has underperformed to the deepest extent and for the most extended period in the past quarter of a century. we remain convinced, though, that a high conviction approach focusing on quality, sustainable businesses with resilient income streams gives the company the potential to outperform. over the long-term, owning quality companies has been a winning trend, yet today the portfolio's valuation premium to the wider market has shrunk to the lowest level that we have seen, at just 7%, while roe's and operating margins respectively remain 60% and 25% higher and balance sheets 20% less geared than the market. at the company level, our estimates of potential future returns suggest a weighted average return of 11.7% for the portfolio, a premium of 400bps ahead of that delivered by the benchmark index over the past 10 years. we see this as compelling evidence to stick with our strategy. it is important to stress that we are not passively awaiting a shift in market conditions. our research team and coverage of the uk equity market goes from strength to strength, and the pipeline of potential new investments is at all-time highs. the key question therefore is what needs to change to catalyse a return to quality outperformance? while timing is hard to call, we see a combination of macro dynamics and stock specifics resulting in that change of market leadership. firstly, at the macro level we expect ongoing subdued economic conditions to both lead to declining real interest rates and low economic growth. this should support the valuation of higher quality companies and focus investor appetite on businesses with strong structural growth potential. secondly, getting stock selection correct will be key, with companies delivering consistent growth in profits, cash flow and shareholder returns as the best way to drive share prices, the portfolio contains a significant number of highly attractive valuation opportunities with large latent performance potential, and we are excited about their prospects. we believe strongly that when market conditions change, we will be in a good position to return to outperformance.   ben ritchie and rebecca maclean aberdeen 24 september 2025   investment portfolio at 31 july 2025 market value total assets company sector £'000 % totalenergies oil, gas and coal 27,472 6.0 national grid gas, water and multi-utilities 23,307 5.1 relx media 22,936 5.0 natwest banks 21,710 4.8 chesnara  life insurance 21,191 4.7 prudential life insurance 18,090 4.0 london stock exchange finance and credit services 16,429 3.6 m&g investment banking and brokerage services 15,954 3.5 haleon pharmaceuticals and biotechnology 14,843 3.3 hiscox non-life insurance 14,610 3.2 ten largest equity investments 196,542 43.2 genus pharmaceuticals and biotechnology 14,566 3.2 sirius real estate real estate investment trusts 14,343 3.2 diageo beverages 14,333 3.2 sage software and computer services 12,891 2.8 convatec medical equipment and services 12,059 2.7 taylor wimpey household goods and home construction 11,563 2.5 games workshop leisure goods 11,299 2.5 unilever personal care, drug and grocery stores 11,259 2.5 astrazeneca pharmaceuticals and biotechnology 11,205 2.5 gaztransport & technigaz oil, gas and coal 11,039 2.4 twenty largest equity investments 321,099 70.6 weir group industrial engineering 10,895 2.4 genuit construction and materials 10,584 2.3 icg investment banking and brokerage services 10,381 2.3 oxford instruments electronic and electrical equipment 10,164 2.2 softcat software and computer services 9,914 2.2 volvo industrial transportation 9,833 2.2 telecom plus telecommunications service providers 9,353 2.1 mercedes-benz automobiles & parts 8,768 1.9 londonmetric real estate investment trusts 8,571 1.9 asml technology hardware and equipment 8,366 1.8 thirty largest equity investments 417,928 91.9 edenred industrial support services 7,713 1.7 assura real estate investment trusts 6,194 1.4 total equity investments 431,835 95.0 net current assetsa 22,903 5.0 total assets less current liabilities (excluding borrowings) 454,738 100.0 a excluding bank loan of £19,547,000.   condensed statement of comprehensive income (unaudited)   six months ended six months ended 31 july 2025 31 july 2024 revenue capital total revenue capital total note £'000 £'000 £'000 £'000 £'000 £'000 gains on investments - 1,225 1,225 - 23,080 23,080 income 2 11,829 - 11,829 14,409 - 14,409 investment management fees (326) (489) (815) (349) (523) (872) administrative expenses (446) - (446) (357) - (357) currency (losses)/gains - (623) (623) - 52 52 net return before finance costs and tax 11,057 113 11,170 13,703 22,609 36,312 finance costs (378) (561) (939) (411) (610) (1,021) return before taxation 10,679 (448) 10,231 13,292 21,999 35,291 taxation 3 (516) - (516) (402) - (402) return after taxation 10,163 (448) 9,715 12,890 21,999 34,889 return per ordinary share (pence) 5 7.82 (0.34) 7.48 8.92 15.22 24.14 the total column of the condensed statement of comprehensive income is the profit and loss account of the company.   all revenue and capital items in the above statement derive from continuing operations. the accompanying notes are an integral part of the financial statements.   condensed statement of financial position (unaudited)   as at as at 31 july 2025 31 january 2025 note £'000 £'000 non-current assets investments at fair value through profit or loss 9 431,835 472,652 current assets debtors 10,636 3,292 cash and short-term deposits 13,980 2,329 24,616 5,621 creditors: amounts falling due within one year bank loan (19,547) (18,907) other creditors (1,713) (1,086) (21,260) (19,993) net current assets/(liabilities) 3,356 (14,372) total assets less current liabilities 435,191 458,280 creditors: amounts falling due after more than one year loan notes 2045 (29,756) (29,752) net assets 405,435 428,528 capital and reserves called-up share capital 38,419 38,419 share premium account 4,908 4,908 capital redemption reserve 1,606 1,606 capital reserve 6 336,772 359,775 revenue reserve 23,730 23,820 equity shareholders' funds 405,435 428,528 net asset value per ordinary share (pence) 7 318.85 317.55 the accompanying notes are an integral part of the financial statements.   condensed statement of changes in equity (unaudited)   six months ended 31 july 2025  share capital share premium redemption capital revenue capital account reserve reserve reserve total note £'000 £'000 £'000 £'000 £'000 £'000 balance at 31 january 2025 38,419 4,908 1,606 359,775 23,820 428,528 return after taxation - - - (448) 10,163 9,715 purchase of own shares for treasury - - - (22,555) - (22,555) dividends paid 4 - - - - (10,253) (10,253) balance at 31 july 2025 38,419 4,908 1,606 336,772 23,730 405,435 six months ended 31 july 2024 share capital share premium redemption capital revenue capital account reserve reserve reserve total note £'000 £'000 £'000 £'000 £'000 £'000 balance at 31 january 2024 38,419 4,908 1,606 376,996 23,886 445,815 return after taxation - - - 21,999 12,890 34,889 purchase of own shares for treasury - - - (9,602) - (9,602) dividends paid 4 - - - - (10,673) (10,673) balance at 31 july 2024 38,419 4,908 1,606 389,393 26,103 460,429 the revenue reserve and the part of the capital reserve represented by realised capital gains represent the amount of the company's reserves distributable by way of dividend and share buybacks. the accompanying notes are an integral part of the financial statements.   condensed statement of cash flows (unaudited)   six months ended six months ended 31 july 2025 31 july 2024 £'000 £'000 operating activities net return before finance costs and taxation 11,170 36,312 adjustments for: gains on investments (1,225) (23,080) currency losses/(gains) 623 (52) (increase)/decrease in accrued dividend income (283) 722 stock dividends included in dividend income (813) (915) increase in other debtors excluding tax (134) (157) increase in other creditors 764 128 net tax paid (750) (698) net cash inflow from operating activities 9,352 12,260 investing activities purchases of investments (47,288) (73,396) sales of investments 83,450 68,604 net cash from/(used in) investing activities 36,162 (4,792) financing activities interest paid (957) (1,007) dividends paid (10,253) (10,673) buyback of ordinary shares for treasury (22,670) (9,597) drawdown of loan - 5,733 net cash used in financing activities (33,880) (15,544) increase/(decrease) in cash and cash equivalents 11,634 (8,076) analysis of changes in cash and cash equivalents during the period opening balance 2,329 12,868 effect of exchange rate fluctuations on cash held 17 52 increase/(decrease) in cash as above 11,634 (8,076) closing balance 13,980 4,844 the accompanying notes are an integral part of the financial statements.   notes to the financial statements (unaudited) for the six months ended 31 july 2025   1. accounting policies  basis of preparation. the condensed financial statements have been prepared in accordance with financial reporting standard 104 'interim financial reporting' and with the statement of recommended practice for 'financial statements of investment trust companies and venture capital trusts', issued in july 2022. they have also been prepared on a going concern basis and on the assumption that status as an investment trust will be maintained.  the half yearly financial statements have been prepared using the same accounting policies and methods of computation as the preceding annual financial statements (year ended 31 january 2025), which were prepared in accordance with financial reporting standard 102.   2. income six months ended six months ended 31 july 2025 31 july 2024 £'000 £'000 income from investments uk dividend income 6,639 6,832 overseas dividends 3,851 5,137 stock dividends 813 915 11,303 12,884 other income income on derivatives 514 1,497 interest income 12 28 526 1,525 total income 11,829 14,409     3. taxation the taxation charge for the period, and the comparative period, represents withholding tax suffered on overseas dividend income.   4. ordinary dividends on equity shares six months ended six months ended 31 july 2025 31 july 2024 £'000 £'000 third interim dividend 2025 of 3.20p (2024 - 3.20p) 4,309 4,677 final dividend 2025 of 4.60p (2024 - 4.15p) 5,944 5,996 10,253 10,673 a first interim dividend in respect of the year ending 31 january 2026 of 3.20p per ordinary share (2025 - 3.20p) was paid on 29 august 2025 to shareholders on the register on 8 august 2025. the ex-dividend date was 7 august 2025.     5. returns per share six months ended six months ended 31 july 2025 31 july 2024 p p revenue return 7.82 8.92 capital return (0.34) 15.22 total return 7.48 24.14 the returns per share are based on the following: six months ended six months ended 31 july 2025 31 july 2024 £'000 £'000 revenue return 10,163 12,890 capital return (448) 21,999 total return 9,715 34,889 weighted average number of ordinary shares 129,905,893 144,501,086   6. capital reserves   the capital reserve reflected in the condensed statement of financial position at 31 july 2025 includes gains of £62,448,000 (31 january 2025 - gains of 75,196,000) which relate to the revaluation of investments held at the reporting date.     7. net asset value   equity shareholders' funds have been calculated in accordance with the provisions of financial reporting standard 102. the analysis of equity shareholders' funds on the face of the condensed statement of financial position does not reflect the rights under the articles of association of the ordinary shareholders on a return of assets. these rights are reflected in the net asset value and the net asset value per share attributable to ordinary shareholders at the period end, adjusted to reflect the deduction of the loan notes at par. a reconciliation between the two sets of figures is as follows:     31 july 2025 31 january 2025   net assets attributable (£'000) 405,435 428,528   number of ordinary shares in issue at the period enda 127,153,759 134,949,033   net asset value per ordinary share 318.85p 317.55p   a excluding shares held in treasury     31 july 2025 31 january 2025   adjusted net assets £'000 £'000   net assets attributable (as above) 405,435 428,528   unamortised loan notes issue expenses (244) (248)   adjusted net assets attributable 405,191 428,280     number of ordinary shares in issue at the period enda 127,153,759 134,949,033   adjusted net asset value per ordinary share 318.66p 317.36p   a excluding shares held in treasury.     31 july 2025 31 january 2025   net assets - debt at fair value £'000 £'000   net assets attributable 405,435 428,528   amortised cost loan notes 29,756 29,752   market value loan notes (22,862) (23,114)   net assets attributable 412,329 435,166     number of ordinary shares in issue at the period enda 127,153,759 134,949,033   net asset value per ordinary share - debt at fair value 324.28p 322.47p   a excluding shares held in treasury.   8. transaction costs during the period expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. these have been expensed through capital and are included within gains/(losses) on investments in the condensed statement of comprehensive income. the total costs were as follows: six months ended six months ended 31 july 2025 31 july 2024 £'000 £'000 purchases 237 246 sales 41 42 278 288   9. fair value hierarchy frs 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. the fair value hierarchy has the following classifications:   level 1: 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 (ie developed using market data) for the asset or liability, either directly or indirectly.   level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.   the financial assets and liabilities measured at fair value in the condensed statement of financial position are grouped into the fair value hierarchy at the reporting date as follows:   level 1 level 2 level 3 total as at 31 july 2025 note £'000 £'000 £'000 £'000 financial assets at fair value through profit or loss quoted equities a) 431,835 - - 431,835 total 431,835 - - 431,835 level 1 level 2 level 3 total as at 31 january 2025 note £'000 £'000 £'000 £'000 financial assets at fair value through profit or loss quoted equities a) 472,652 - - 472,652 total 472,652 - - 472,652 a) quoted equities. the fair value of the company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. quoted equities included in fair value level 1 are actively traded on recognised stock exchanges.   10. analysis of changes in net debt at currency non-cash at 31 january 2025 differences cash flows movements 31 july 2025 £'000 £'000 £'000 £'000 £'000 cash and cash equivalents 2,329 17 11,634 - 13,980 debt due within one year (18,907) (640) - - (19,547) debt due after more than one year (29,752) - - (4) (29,756) (46,330) (623) 11,634 (4) (35,323) at currency non-cash at 31 january 2024 differences cash flows movements 31 july 2024 analysis of changes in net debt £'000 £'000 £'000 £'000 £'000 cash and cash equivalents 12,868 52 (8,076) - 4,844 debt due within one year (13,307) (47) (5,686) - (19,040) debt due after more than one year (29,745) - - (4) (29,749) (30,184) 5 (13,762) (4) (43,945) a statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.   11. transactions with the manager the company has an agreement with abrdn fund managers limited (the "manager") for the provision of investment management, secretarial, accounting and administration and promotional activity services. the management fee is calculated and charged, on a monthly basis, at 0.45% per annum on the first £225 million, 0.35% per annum on the next £200 million and 0.25% per annum on amounts over £425 million of the net assets of the company, with debt at par and excluding commonly managed funds. the management fee is chargeable 40% to revenue and 60% to capital. during the period £815,000 (31 july 2024 - £872,000) of investment management fees were payable to the manager, with a balance of £272,000 (31 july 2024 - £292,000) being due at the period end. there were no commonly managed funds held in the portfolio during the six months to 31 july 2025 (2024 - none). the management agreement may be terminated by either party on not less than six months' written notice. on termination by the company on less than the agreed notice period the manager would be entitled to receive fees which would otherwise have been due up to that date. the manager also receives a separate promotional activities fee which is based on a current annual amount of £223,000 payable quarterly in arrears. during the period £114,000 (31 july 2024 - £100,000) of fees were payable to the manager, with a balance of £75,000 (31 july 2024 - £17,000) being due at the period end.   12. segmental information the company is engaged in a single segment of business, which is to invest mainly in equity securities. all of the company's activities are interrelated, and each activity is dependent on the others. accordingly, all significant operating decisions are based on the company as one segment.   13. half yearly financial report the financial information contained in this half yearly financial report does not constitute statutory accounts as defined in sections 434 - 436 of the companies act 2006. the financial information for the six months ended 31 july 2025 and 31 july 2024 has not been audited. the information for the year ended 31 january 2025 has been extracted from the latest published audited financial statements which have been filed with the registrar of companies. the report of the auditor on those accounts contained no qualification or statement under section 498 of the companies act 2006.   14. approval this half yearly financial report was approved by the board on 24 september 2025.   alternative performance measures ("apms")   alternative performance measures are numerical measures of the company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. the company's applicable financial framework includes frs 102 and the aic sorp. the directors assess the company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.  discount to net asset value per share with debt at fair value the discount is the amount by which the share price is lower than the net asset value per share with debt at fair value, expressed as a percentage of the net asset value with debt at fair value.  31 july 2025 31 january 2025 share price (p) a 297.00p 285.00p nav per ordinary share (p) b 324.28p 322.47p discount (a-b)/a 8.4% 11.6% dividend yield dividend yield is calculated using the company's historic annual dividend per ordinary share divided by the share price, expressed as a percentage.   31 july 2025 31 january 2025 annual dividend per ordinary share (p) a 14.20p 14.20p share price (p) b 297.00p 285.00p dividend yield a/b 4.8% 5.0% net gearing   net gearing measures total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. under aic reporting guidance cash and cash equivalents includes net amounts due to and from brokers at the period end as well as cash and short term deposits.   31 july 2025 31 january 2025 borrowings (£'000) a 49,303 48,659 cash (£'000) b 13,980 2,329 amounts due to brokers (£'000) c 255 368 amounts due from brokers (£'000) d 6,854 - shareholders' funds (£'000) e 405,435 428,528 net gearing (a-b+c-d)/e 7.1% 10.9% ongoing charges the ongoing charges ratio has been calculated based on the total of investment management fees and administrative expenses less non-recurring charges and expressed as a percentage of the average daily net asset values with debt at fair value published throughout the year. the ratio for 31 july 2025 is based on forecast ongoing charges for the year ending 31 january 2026. 31 july 2025 31 january 2025 investment management fees (£'000) a 1,619 1,727 administrative expenses (£'000) b 817 898 less: non-recurring charges (£'000) c (13) (104) ongoing charges (£'000)  2,423 2,521 average net assets (£'000) d 413,351 446,732 ongoing charges ratio (a+b+c)/d 0.59% 0.56%  the ongoing charges ratio provided in the company's key information document is calculated in line with the priips regulations, which includes financing and transaction costs.  total return nav and share price total returns show how the nav and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. share price and nav total returns are monitored against open-ended and closed-ended competitors, and the reference index, respectively.     share six months ended 31 july 2025 nav price opening at 1 february 2025 a 322.5p 285.0p closing at 31 july 2025 b 324.3p 297.0p price movements c=(b/a)-1 +0.6% +4.2% dividend re-investmenta d +2.5% +2.9% total return c+d +3.1% +7.1% share year ended 31 january 2025 nav price opening at 1 february 2024 a 309.0p 276.0p closing at 31 january 2025 b 322.5p 285.0p price movements c=(b/a)-1 +4.4% +3.3% dividend re-investmenta d 4.6% 5.1% total return c+d +9.0% +8.4% a nav total return involves investing the net dividend in the nav of the company with debt at fair value on the date on which that dividend goes ex-dividend. share price total return involves reinvesting the net dividend in the share price of the company on the date on which that dividend goes ex-dividend.       by order of the board abrdn holdings limited company secretary 24 september 2025   please note that past performance is not necessarily a guide to the future and the value of investments and the income from them may fall as well as rise.  investors may not get back the amount they originally invested   this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir flfvraeisfie return to news summary

Label: Gesunken