2nd Mar 2026 12:27
(Alliance News) - BlackRock Throgmorton Trust PLC announced subdued full-year results for 2025, producing barely positive growth in net asset value, lagging its benchmark, while reducing its discount partially thanks to a buyback programme.
The trust investing in UK small and medium-capitalisation listed companies reported a NAV per share of 668.53 pence on November 30, up 0.7% from 682.82 pence a year prior.
NAV total return was also 0.7% in 2025, down from 16.3% a year prior. It also lagged against the benchmark, the Deutsche Numis Smaller Companies plus AIM, excluding investment firms, index which returned 10.1%.
Despite recording lower dividends return from its portfolio companies, the trust will keep its own dividend policy unchanged and will pay a second interim dividend of 15.20 pence per share, bringing the full-year total to 19 pence per share. It is a 5.6% increase from last year's 18 pence.
A share buyback programme worth about GBP71 million, however, helped the trust's shares to grow 6.5% in the year, allowing for its discount to NAV to shrink to 8.5% at the end of the financial year from an average of 10.5%.
The trust's Chair James Will said: "Although the portfolio delivered a modest increase in absolute terms, the underperformance compared with our benchmark was disappointing; particularly so given our portfolio manager has reported that many of our holdings performed strongly but this was often not reflected in share prices."
The current approach however remains valid, the board said, especially once accounting for the trust's long-term performance.
In its outlook, Will added: "2025 has been a challenging year for markets in general and the UK small and mid-cap market has not been immune with sustained outflows and economic uncertainty all putting pressure on share prices throughout the sector, de-coupling these from underlying company fundamentals. Notwithstanding these challenging dynamics...the asset class (and the company’s portfolio) offers significant value for investors that are prepared to take a longer-term view."
BlackRock Throgmorton Trust shares were down 1.2% to 635.49 pence each at midday on Monday in London.
By Martin Miraglia, Alliance News reporter
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