**Summary of Schroder UK Mid Cap Fund PLC Final Results for the Year Ended 30 September 2025**
Schroder UK Mid Cap Fund PLC announced its financial results for the year ended 30 September 2025, highlighting strong performance and strategic initiatives aimed at enhancing shareholder value.
**Key Financial Highlights**
**Net Asset Value (NAV) Total Return** 10.8%, outperforming the FTSE 250 ex Investment Trusts Total Return Index (6.7%).
**Share Price Total Return** 18.0%, driven by narrowing discount to NAV and strategic initiatives.
**Outperformance** The fund outperformed its benchmark over 1, 3, and 10 years in both NAV and share price terms.
**Strategic Initiatives**
**Management Fee Reduction** Implemented from April 2025 to lower costs and improve returns.
**Continuation Vote** Introduced to ensure alignment with shareholder interests and best corporate governance practices.
**Buyback Policy** Actively used to manage the discount to NAV, with 269,000 shares repurchased during the year and an additional 406,500 post-year-end.
**Portfolio Performance**
**Sector Exposure** Strong performance driven by exposure to industrials, particularly aerospace and defence.
**Stock Contributions** Chemring, Babcock International, and QinetiQ were significant positive contributors, while 4imprint and Trustpilot detracted from performance.
**M&A Activity** Benefited from takeovers of Spectris and Just Group.
**Dividends**
**Increased Dividends** Interim dividend raised by 5% to 6.3 pence per share, with a final dividend of 16.1 pence per share, totaling 22.4 pence for the year (4.2% increase).
**Gearing and Discount Management**
**Net Gearing** Reduced to 4.8% from 9.5% in 2024, with £17 million drawn from the revolving credit facility.
**Discount to NAV** Narrowed from 12.3% to 7.0%, supported by buybacks and strategic initiatives.
**Board and Governance**
**Board Changes** Richard Curling joined as an independent non-executive director and Chair of the Remuneration Committee.
**AGM** Scheduled for 25 February 2026, with a continuation vote to be proposed in 2028.
**Outlook**
**Market Conditions** UK mid caps offer structural growth potential, corporate resilience, and valuation support, despite global economic challenges.
**Portfolio Positioning** Focus on resilient, cash-generative businesses with long-term growth potential.
**Investor Engagement**
**Webinar** Scheduled for 13 January 2026 to discuss results and portfolio outlook.
**Marketing Initiatives** Enhanced engagement through podcasts, videos, and digital platforms to deepen investor understanding.
**Conclusion**
Schroder UK Mid Cap Fund PLC demonstrated robust performance and strategic advancements, positioning itself well for continued growth and value creation in the UK mid-cap market. The Board remains confident in the long-term prospects of UK mid caps and the funds ability to deliver attractive returns.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net Asset Value (NAV) per share total return | 6.7% | 10.8% | +4.1% |
| Share price total return | Not provided | 18.0% | Not applicable |
| Discount to NAV | 12.3% | 7.0% | -5.3% |
| Net gearing | 9.5% | 4.8% | -4.7% |
| Borrowings (Bank loan) | £25,000,000 | £17,000,000 | -£8,000,000 |
| Cash at bank and in hand | £1,845,000 | £1,775,000 | -£70,000 |
| Total dividends per share | 22.4 pence | 22.4 pence | 0 pence |