**Summary of Murray Income Trust PLCs Annual Financial Report (2025):**
**Performance Highlights**
**Net Asset Value (NAV) Total Return** +2.7% (2024: +9.9%)
**Share Price Total Return** +4.3% (2024: +7.6%)
**Benchmark (FTSE All-Share Index) Total Return:** +11.2% (2024: +13.0%)
**Earnings per Share (Revenue)** 38.6p (2024: 37.4p)
**Dividend per Share** 40.00p (2024: 38.50p)
**Discount to NAV** 9.6% (2024: 10.5%)
**Dividend Yield** 4.7% (2024: 4.5%)
**Key Developments**
1. **Strategic Review Announced** The Board initiated a strategic review in July 2025 to improve performance and returns, with outcomes expected by the end of 2025.
2. **Dividend Increase** The annual dividend was increased by 3.9%, marking the 52nd consecutive year of dividend growth.
3. **Underperformance** Both NAV and share price returns lagged the benchmark, with NAV at +2.7% and share price at +4.3% compared to the FTSE All-Share Indexs +11.2%.
4. **Discount Reduction** The discount to NAV narrowed slightly from 10.5% to 9.6%.
5. **Share Buybacks** The Company bought back 6.8 million shares, representing 6.5% of outstanding shares, at an average discount of 10.9%, positively impacting NAV total return by 0.7%.
6. **Gearing** Net gearing increased to 11.1% from 9.1% in 2024.
7. **Board Changes** Alan Giles retired, Stephanie Eastment became Senior Independent Director, and Andrew Page was appointed as a Director.
**Investment Performance**
The portfolio underperformed the benchmark due to factor and style issues, particularly the underperformance of Quality stocks relative to Value stocks.
Top contributors included ShellGlencoreAstraZenecaDBSand Games Workshop.
Top detractors were Rolls RoyceBritish American TobaccoHSBCTotalEnergiesand Diageo.
**Strategic Review**
The Board is considering proposals from various candidates, including third-party managers and other investment companies, to enhance performance and shareholder value.
The review focuses on portfolio construction, investment philosophy, income generation, risk controls, and commitment to investment trusts.
**Dividend and Reserves**
Revenue reserves fell slightly to 54% of the current annual dividend due to the dividend exceeding revenue per share.
The Board remains committed to a progressive dividend policy.
**Discount and Share Buybacks**
The Company actively manages its discount through share buybacks, which totaled £4.8 billion across the sector in the first half of 2025.
Murray Income Trust bought back 6.8 million shares, contributing positively to NAV total return.
**Gearing and Borrowing**
Net gearing increased to 11.1%, with long-term borrowings of £100 million and a new £30 million revolving credit facility.
**Board and Governance**
The Board emphasizes diversity and has met all FCA Listing Rules targets for gender and ethnic diversity.
The Company adheres to high standards of corporate governance, including regular risk assessments and compliance with regulations.
**Outlook**
The Board anticipates a more benign environment for Quality investing, with potential shifts in capital from the US to the UK market.
The portfolio is positioned to benefit from long-term structural growth trends and an attractive valuation.
**Conclusion**
Murray Income Trust PLC faces challenges in performance relative to its benchmark but is taking proactive steps through a strategic review, share buybacks, and a commitment to dividend growth. The Board remains focused on enhancing shareholder value and navigating market volatility.