**Summary of Scottish American Investment Co. PLC (SAINTS) Half-Year Results (August 2025):**
**Financial Performance**
**Net Asset Value (NAV) Total Return** 1.1% for the first six months of 2025, outperforming global equities (FTSE All-World Index) which returned 1%.
**Share Price Return** 3.6%, aided by a narrowing discount to NAV.
**Dividend** Declared a second interim dividend of 3.75p, representing a 5.4% increase from 2024.
**Portfolio Highlights**
**Equity Investments** Continued dividend growth despite a strengthening dollar. Holdings in derivative exchanges (e.g., Deutsche Boerse, CME) performed well due to market volatility.
**Property Investments** Returned 3.6%, primarily from rental income and marginal property value increases.
**Infrastructure Investments** Delivered strong returns of 15%, supported by operational performance and valuation improvements.
**Strategic Moves**
**Share Buybacks** Purchased 3.4% of shares in issue at the start of the year, enhancing NAV per share.
**New Investments** Added Accenture and Jack Henry & Associates to the portfolio, leveraging market volatility for attractive valuations.
**Divestments** Sold UPS and TCI due to strategic concerns and reduced growth expectations, respectively.
**Outlook**
**Optimism** The Board and Managers remain confident in SAINTS long-term prospects for inflation-beating income growth and attractive returns.
**Board Changes** Recruitment of a new Director and chairperson designate is nearing completion, with an announcement expected soon.
**Market Context**
**Volatility** The first half of 2025 saw significant market volatility due to geopolitical tensions, policy shifts, and economic uncertainties.
**Strategy** SAINTS focuses on high-quality, resilient businesses with consistent dividend-paying capabilities, positioning itself as a stable investment option.
**Conclusion**
SAINTS demonstrated resilience and strategic agility in a volatile market environment, achieving positive returns and enhancing shareholder value through dividends, share buybacks, and prudent investment decisions. The company remains well-positioned for long-term growth and income generation.
| Metric | 2024 (Year-end) | 2025 (Half-year) | Change |
|---|---|---|---|
| Net Asset Value (NAV) - Book Value (in £'000) | 952,693 | 915,895 | -3.9% |
| Net Asset Value (NAV) - Fair Value (in £'000) | 985,382 | 948,693 | -3.7% |
| Net Asset Value per Share - Fair Value (in pence) | 557.8 | 556.0 | -0.3% |
| Total Borrowings - Book Value (in £'000) | 94,742 | 94,749 | +0.01% |
| Total Borrowings - Fair Value (in £'000) | 62,053 | 61,951 | -0.2% |
| Gearing (Borrowings as % of Shareholders' Funds) | 10.0% | 10.3% | +0.3% |
| Revenue (in £'000) | 32,387 (Year) | 18,571 (Half-year) | -42.7% (Annualized) |
| Net Return on Ordinary Activities after Taxation (in £'000) | 51,872 (Year) | 7,582 (Half-year) | -68.1% (Annualized) |
| Dividends Paid (in £'000) | 25,856 (Year) | 13,480 (Half-year) | -47.9% (Annualized) |