**Summary of BlackRock Throgmorton Trust PLC Half-Year Report (August 1, 2025)**
**Overview**
BlackRock Throgmorton Trust PLC released its half-year report for the six months ended May 31, 2025, highlighting performance, financial results, and strategic actions amid global market volatility. The report reflects challenges from geopolitical tensions, trade tariffs, and UK economic headwinds, impacting smaller companies and the trust’s performance.
**Key Financial Highlights**
**Net Assets**Declined to £505.94 million from £595.91 million in November 2024.
**Net Asset Value (NAV) per Share**Fell to 652.56p from 682.82p.
**Share Price**Remained flat at 578.00p, underperforming the benchmark.
**Benchmark Index**Rose 3.4%, while the trust’s NAV total return was -2.2%, underperforming by 5.6 percentage points.
**Revenue Earnings per Share**Decreased to 8.44p from 9.44p due to lower dividends and derivative income.
**Interim Dividend**Declared 3.80p per share, up from 3.75p, fully covered by portfolio revenue.
**Performance and Market Context**
The period was marked by global volatility, including US tariffs (“Liberation Day” measures) and UK Budget-related headwinds.
UK smaller companies underperformed, with the benchmark up 3.4% vs. FTSE All Share’s 7.3% gain.
The trust’s underperformance was attributed to stylistic headwinds (traditional value outperforming quality growth) and M&A activity not benefiting the portfolio.
Long-term performance remains strong104.6% NAV growth over 10 years vs. benchmark’s 44.9%.
**Strategic Actions**
**Share Buybacks**Repurchased 9.74 million shares for £55.91 million, reducing the discount to NAV to 10.3% as of July 30, 2025.
**Portfolio Adjustments**Reduced exposure to UK mid-cap domestic sectors (travel, leisure, retail) and increased shorts in these areas. Added international positions in defense, aerospace, and AI-related software.
**Outlook**
UK small and mid-cap valuations are historically low, trading at ~10x forward P/E, offering potential for reappraisal and recovery.
Challenges include de-equitisation of UK markets, outflows, and lack of IPOs, but international investor demand for UK equities remains.
The trust remains confident in its quality growth strategy and the long-term opportunities in UK smaller companies.
**Management and Governance**
James Will succeeded Chris Samuel as Chairman in March 2025.
The Board continues to focus on minimizing share price volatility and narrowing the discount to NAV through performance and shareholder engagement.
**Conclusion**
Despite short-term underperformance, BlackRock Throgmorton Trust maintains a long-term focus on quality growth, strategic share buybacks, and optimism for UK smaller companies’ recovery potential. The trust remains committed to delivering value to shareholders through disciplined investment and active portfolio management.
| Metric | As at 31 May 2025 | As at 30 Nov 2024 | Change |
|---|---|---|---|
| Net assets (£’000) | 505,940 | 595,908 | (15.1%) |
| Net asset value per ordinary share (pence) | 652.56 | 682.82 | (4.4%) |
| Revenue earnings per ordinary share (pence) | 8.44 | 9.44 (for 6 months ended 31 May 2024) | (10.6%) |
| Net revenue profit on ordinary activities after taxation (£’000) | 6,889 | 8,885 (for 6 months ended 31 May 2024) | (22.5%) |
| Interim dividend per ordinary share (pence) | 3.80 | 3.75 | 1.3% |
| Gross and net gearing (%) | 111.1% / 105.5% | 115.3% / 108.6% | (3.7%) / (2.9%) |
Note: The change in net assets reflects portfolio movements, shares repurchased into treasury, and dividends paid during the period.
Debt Comparison (Gearing)
| Date | Gross Gearing (%) | Net Gearing (%) |
|---|---|---|
| 31 May 2025 | 111.1% | 105.5% |
| 31 May 2024 | 117.4% | 112.9% |
| 30 Nov 2024 | 115.3% | 108.6% |
The Company was geared through the use of long and short derivative positions. The decrease in gearing from 31 May 2024 to 31 May 2025 indicates a reduction in debt levels relative to the Company's assets.
This HTML code creates two tables: 1. The first table compares key financials (net assets, net asset value per share, revenue earnings per share, net revenue profit, interim dividend, and gearing) between 31 May 2025 and 30 November 2024, with the change percentage calculated where applicable. 2. The second table compares debt levels (gearing) between 31 May 2025, 31 May 2024, and 30 November 2024, showing the decrease in debt levels over time. Please note that the comparison for revenue earnings per share and net revenue profit is made between 31 May 2025 and 31 May 2024, as the 30 November 2024 date does not have the same metrics available for comparison.