6th Aug 2025 11:38
(Alliance News) - Smithson Investment Trust PLC on Wednesday reported a positive net asset value total return in the first half of 2025, beating its comparison index, which had a slightly negative return.
The trust, founded by stock picker Terry Smith, makes long-term investments in a portfolio of 25 to 40 small and mid sized listed companies globally. Its benchmark is the MSCI World SMID index.
NAV per share on June 30 was 1,670.0 pence, up 2.3% from 1,631.8p on December 31. NAV total return over the six months was 2.4%, compared to negative 0.3% for the comparison index.
Compared to a year before, NAV was up 6.4% from 1,569.5p.
Total net assets were GBP1.91 billion on June 30, down from GBP2.13 billion on December 31, as Smithson continued to make share buybacks to close the discount of its share price to NAV. It bought back 46.6 million shares, 26% of its total, in 2024 and bought back a further 15.9 million in the first half of 2025. It has bought back 35% of its shares since the programme began.
Despite this, the discount to NAV widened to 10.3% on June 30 from 9.1% on December 31. As a result, the share price total return was just 1.0% in the first half.
Smithson shares were down 0.3% to 1,514.00p in London on Wednesday.
"While the buyback programme has not yet materially reduced the company's discount to single digits - which is the board's objective - the board remains confident this can be achieved over the medium term," Smithson said.
"Although buybacks gradually reduce the size of the company, with a market capitalisation of approximately GBP1.7 billion, this is not expected to impact share liquidity. The company continues to be one of the largest and most liquid in its investment trust sector."
Smithson is a FTSE 250 index constituent.
Revenue earnings per share in the first half were 4.46p but this is expected to to be lower in the second half. Smithson pays no interim dividend.
By Tom Waite, Alliance News editor
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