**Summary of abrdn UK Smaller Companies Growth Trust PLC Annual Financial Report (Year Ended 30 June 2025)**
**Performance Highlights**
**Net Asset Value (NAV) Total Return** +6.8% (2024: +18.1%).
**Share Price Total Return** +11.4% (2024: +21.0%).
**Reference Index (Deutsche Numis Smaller Companies plus AIM ex-investment companies):** +7.8%.
**Total Dividends per Share** 13.20p (2024: 12.00p), a 10.0% increase.
**Discount to NAV** 9.0% (2024: 12.5%).
**Ongoing Charges Ratio** 0.85% (2024: 0.92%).
**Financial Overview**
**Total Assets** £399.2 million (2024: £453.1 million), a decrease of 11.9%.
**Equity Shareholders Funds** £359.2 million (2024: £413.1 million), a decrease of 13.0%.
**Market Capitalisation** £326.8 million (2024: £361.3 million), a decrease of 9.5%.
**Net Asset Value per Share** 581.37p (2024: 556.19p), an increase of 4.5%.
**Share Price** 529.00p (2024: 486.50p), an increase of 8.7%.
**Chairman’s Statement**
The year saw healthy returns despite a volatile macroeconomic backdrop, including the impact of the October 2024 UK budget and US trade tariffs.
The Company outperformed the reference index in the first half but faced challenges in the second half due to the Investment Managers quality focus being out of favor.
Dividends increased by 10.0% to 13.20p per share, supported by strong earnings resilience and share buybacks.
Gearing increased slightly to 6.6% (20245.8%) due to full utilization of the £40 million revolving credit facility.
A new £40 million secured facility with Bank of America replaced the previous loan post-year-end.
Management fees were reduced by 17.3% annually due to a revised fee structure effective 1 April 2025.
Share buybacks totaled 12.5 million shares (16.8% of issued capital) at an average discount of 10.2%, adding 9.8p per share to NAV.
The Companys name is proposed to change to "Aberdeen UK Smaller Companies Growth Trust plc" to align with the Managers rebranding.
**Investment Manager’s Review**
The portfolio benefited from strong performances in sectors like construction (Morgan Sindall), leisure (Games Workshop), and pensions (XPS Pensions).
Weak contributors included Ashtead Technology, Next15, and Hunting, impacted by macroeconomic uncertainties and sector-specific challenges.
New additions included Applied Nutrition, Avon Technologies, and Bloomsbury Publishing, while exits included 4imprint, Clarkson, and Liontrust Asset Management.
The portfolio remains focused on companies with strong fundamentals, resilient earnings, and capable management teams.
**Financial Calendar**
**Online Shareholder Presentation** 22 October 2025.
**Annual General Meeting (AGM)** 20 November 2025.
**Final Dividend Payment** 28 November 2025.
**Key Risks and Mitigations**
**Strategy Risk** Mitigated through regular monitoring of discount to NAV and shareholder engagement.
**Investment Performance Risk** Addressed via regular reviews of the Investment Manager and adherence to investment guidelines.
**Operational Risk** Managed through robust oversight of third-party service providers and cybersecurity measures.
**Geopolitical Risk** Diversified portfolio and managed gearing provide some protection against volatility.
**Corporate Governance**
The Board complies with the AIC Code and relevant UK Code provisions, ensuring transparency and accountability.
The Company has no employees, with all functions outsourced to the Manager and other service providers.
**Outlook**
Economic and geopolitical uncertainties persist, but UK smaller companies remain attractively valued with potential for renewed investor interest.
The Company is well-positioned to capture opportunities through its disciplined investment process and focus on quality companies.
**Conclusion**
The abrdn UK Smaller Companies Growth Trust delivered solid returns in a challenging environment, supported by strategic initiatives like fee reductions, share buybacks, and dividend increases. The Company remains focused on long-term capital growth through investment in UK smaller companies, with a commitment to shareholder value and governance.