TIDMHNE

RNS Number : 9076N

Henderson Eurotrust PLC

28 September 2023

JANUS HERSON FUND MANAGEMENT UK LIMITED

HERSON EUROTRUST PLC

LEGAL ENTITY IDENTIFIER: 213800DAFFNXRBWOEF12

28 September 2023

HERSON EUROTRUST PLC

Annual Financial Results for the year ended 31 July 2023

This announcement contains regulated information

Investment objective

Henderson EuroTrust plc ("the Company") aims to achieve a superior total return from a portfolio of European (excluding the UK) investments where the quality of the business is deemed to be high or significantly improving.

Performance highlights

 
 Total return performance to 31 July 2023 
                      1 year   3 years   5 years   10 years 
                           %         %         %          % 
-------------------  -------  --------  --------  --------- 
 NAV(1)                 16.7      23.0      44.6      157.9 
 Share price(2)         19.7      21.1      38.1      144.3 
 Benchmark(3)           16.1      36.7      39.2      124.3 
 Peer group NAV(4)      14.6      31.8      41.4      146.2 
 
 
 
                                            Year ended      Year ended 
                                          31 July 2023    31 July 2022 
--------------------------------------  --------------  -------------- 
 NAV per share at year end                      161.3p          142.1p 
 Share price at year end                        139.5p          120.5p 
 Dividend for year(5)                             3.8p            3.8p 
 Dividend yield(6)                                2.7%            3.2% 
 Ongoing charge(9)                               0.79%           0.75% 
 Gearing at year end                          GBP15.6m         GBP7.3m 
  (% of NAV)                                      4.6%          (2.5%) 
 Number of investments at year end(7)               47              41 
 Discount at year end(8)                         13.5%           15.2% 
 Net assets                                  GBP342.0m       GBP301.0m 
 
 

1 Net asset value ("NAV") per ordinary share total return (including dividends reinvested)

2 Share price total return (including dividends reinvested)

3 FTSE World Europe (ex UK) Index

4 Association of Investment Companies (" AIC") Europe Sector (based on cumulative fair net asset value returns)

5 Including the 0.8p interim dividend paid on 28 April 2023 and the 3.0p final dividend which will be put to shareholders for approval at the Annual General Meeting ("AGM") on 15 November 2023

6 Based on the share price at the year end

7 Excluding the nil value position in OW Bunker (2022: excluding OW Bunker)

8 Calculated using the mid-market closing price

9 Calculated using the methodology prescribed by the AIC

Sources: Morningstar Direct, Janus Henderson

CHAIRMAN'S STATEMENT

Summary:

-- Over the year, the share price and the net asset value were ahead of the benchmark index and ahead of the AIC peer group

-- Stock selection has been the driver of the modest outperformance, an encouraging outcome given that growth stocks on the whole have lagged the market

-- We have increased the board size to five and our new director will be appointed Senior Independent Director following the conclusion of the 2023 AGM

The financial year to 31 July 2023 has seen a significant recovery in the share price and net asset value after the disappointment of the previous financial year. I am pleased to report that, over the year, the share price and net asset value were moderately ahead of the benchmark index and materially ahead of the AIC peer group. In the latest financial year, "value" stocks in Europe outperformed "growth" stocks by over 9 percentage points but individual stock selection in quite a difficult environment was strong enough to result in modest overall outperformance.

In the year to 31 July 2023, net asset value total return was 16.7%. This compared with a total return of 16.1% for the benchmark index (FTSE World Europe (ex UK)) and 14.6% for the AIC peer group. The discount to net asset value narrowed during the year, from 15.2% to 13.5%, and as a result, the share price total return for the Company was 19.7%. The share price at 31 July 2023 was 139.5p, only slightly below the all-time high of 140.5p.

Dividend

We have proposed a final dividend of 3.0p, which brings the total dividend for the year ended 31 July 2023 to 3.8p. Subject to shareholder approval the dividend will be paid on 22 November 2023 to shareholders on the register as at 20 October 2023. The shares will be quoted ex-dividend on 19 October 2023. The Company's dividend approach is broadly to pay out the level of actual income received. In the Chairman's Statement of October 2020, I explained that the Board committed to pay out the majority of the (then significant) revenue reserve over three to four years. The proposed final dividend of 3.0p for the year ended 31 July 2023 means that commitment to shareholders will be fulfilled and, once the dividend has been paid in November 2023, the revenue reserve will effectively be zero.

The Board has also decided that, as only a very small part of the Company's revenue is received in the first half of the financial year (for example, 0.3p per share was received for the six months ended 31 January 2023), going forward the Company will pay a final dividend only, and no interim dividend. This is in line with the Company's commitment that, once the revenue reserve had been paid out, dividends would broadly reflect the level of income received.

Board changes

During the year we implemented a number of key recommendations following an external Board evaluation exercise undertaken in June 2022. First, we expanded the Board from four to five directors, to broaden the diversity of skills and experience. Stephen White, who is a former European investment manager and experienced investment trust director, joined the Board with effect from 1 December 2022 and will seek election from shareholders at the AGM in November 2023.

Second, we are appointing a Senior Independent Director with effect from the AGM in November 2023. Subject to his election by shareholders, Stephen White will assume this role, thereby providing shareholders with an alternative point of contact to raise any concerns should they not wish to discuss these with me or the Chairman of the Audit and Risk Committee.

In my statement last year, I indicated my intention to retire from the Board at the AGM this year. However, the search for my successor has taken longer than anticipated; the Directors have therefore asked me to stay on until its completion. Consequently, I have agreed that I will retire from the Board, at the latest, at the AGM in November 2024 and an update on the recruitment process will be included in our half year results' announcement in March 2024.

Annual General Meeting

Our meeting will be held on Wednesday 15 November 2023 at 2.30pm at Janus Henderson Investors' offices at 201 Bishopsgate, London EC2M 3AE. I hope as many shareholders as possible will be able to attend to take the opportunity to meet the Board and to hear a presentation from the Fund Manager. However, if you are unable to attend in person, you can watch the meeting live by visiting www.janushenderson.com/trustslive. Full details are set out in the Notice which has been sent to shareholders with this report and are also available online at www.hendersoneurotrust.com .

Outlook

We are heartened by the absolute and relative performance of the Company over the last year. We believe that attitudes towards investing in European shares are becoming more positive; Europe is home to many strong global businesses on attractive valuations and also demonstrates an above average focus on sustainability. Inevitably, there will be headwinds at times but we remain committed to seeking out growth companies which have the ability to achieve consistent growth in the long run. There is a wealth of such opportunities in this region.

Over the financial year the discount to net asset value at which our shares trade has ranged from approximately 11.4% to 18.7%, ending the year at 13.5% (2022: 15.2%). In the long run, strong absolute and relative performance is a necessary - but not sufficient - factor in reducing the discount. Therefore, we continue to consider all other factors which might contribute to the appeal of the Company to all types of shareholder, and retail investors in particular. As part of this process, I extend an invitation to any shareholders who have questions, whether specific or general, or who would welcome a more general discussion with me or the Senior Independent Director to get in touch via the Corporate Secretary (itsecretariat@janushenderson.com). I also direct current and potential shareholders to the wealth of materials on the Janus Henderson website ( www.janushenderson.com ) including short videos and articles by our portfolio manager Jamie Ross, and a video by Jamie on our year end results at www.hendersoneurotrust.com .

Nicola Ralston

Chairman

27 September 2023

FUND MANAGER'S REPORT

Summary:

-- I am pleased to report a positive year for performance, both in absolute terms (the value of your shares has increased), and in relative terms (our net asset value per share has increased by more than the index return).

   --     This performance has been driven by the positive impact of our stock selection. 

-- We have also found opportunity to increase our exposure to some of the highest quality companies in Europe.

Key messages

I am pleased to report a positive year for performance, both in absolute terms (the value of your shares has increased), and in relative terms (our net asset value per share has increased by more than the index return). This performance has been achieved in an environment where our style of investing (buying and owning high quality growing businesses) has been out of favour, but our stock picking has been strong enough to outweigh this.

What has driven our performance?

The best performing sectors in the financial year tended to be those of a cyclical, interest rate sensitive nature: consumer discretionary, financials, industrials and technology. The sectors that lagged tended to be less economically sensitive: consumer staples, health care, real estate and telecommunications. As has been usual for us, our sector allocations have had little bearing on our relative performance. Stock picking within each sector has been a much more important determinant of performance: we are 'stock pickers' not 'sector pickers'.

Our best performing positions were in three areas: financials, luxury goods companies and semi-conductor equipment businesses.

Within financials, we were particularly well-rewarded for our decision to maintain a large position in UniCredit even through the early days of the Russia-Ukraine conflict in 2022, when investors were concerned about UniCredit's Russian exposure. We felt that their exposure was small enough to be manageable, even in a worst-case scenario, and that the undervaluation of the company's shares was far too extreme for us to sell just at the time when higher inflation and interest rates were coming back into the system (typically a good thing for banks, at least initially). UniCredit shares have delivered a total return of more than 150% over the last twelve months and have benefitted from higher interest rates, strong control of the cost base, a benign environment for loan losses and strong capital returns to shareholders. Management have done an excellent job. Munich Re, a longstanding position for us, has been another financial that has performed well in this environment.

We have three luxury goods companies in the portfolio: Hermès and Moncler have been longstanding positions and LVMH was added more recently, in 2021. Luxury goods companies sell aspiration and desirability - intangible characteristics for which people are prepared to pay a high price. The best companies curate their brand allure with decades of consistent investment, avoid discounting and partner with well-known trend-setters. Within the sector, we have taken the approach of owning brands with the strongest and most longstanding cultural heritage. This approach has led us to owning Hermès, Moncler and LVMH; these are three of the more expensive companies in the sector, but we think it is worth paying up for brands of this quality. We were pleased to see our companies perform well in the period, in part due to short-term factors such as recovery in China after Covid restrictions were lifted, but our investment view takes a much longer-term perspective. We continue to see attractive growth prospects for these high margin and high return companies over the medium- to long-term.

The semiconductor industry encompasses businesses of highly variable quality. The industry is exposed to attractive structural growth drivers such as the growing ubiquity of semiconductor usage and powerful technological themes such as machine learning, artificial intelligence and the internet of things. However, not all companies have a sufficiently commanding market position to translate this growth potential into a high margin and high return business. The three semiconductor companies that we own share one key characteristic: they have consistently high market shares in their core technology. ASML has a 100% market share in high end lithography, ASM International has a commanding market share in a packaging technology called Atomic Layer Deposition, while Besi dominate the nascent area of Hybrid Bonding. Strong market shares in niche technologies drive high margins and return on capital for these companies. We have had a longstanding position in ASML and initiated a new position in ASM International during the year and Besi in June 2022, taking advantage of a period when investors seemed overly concerned about a potential short-term cyclical downswing in industry demand. These two positions rallied particularly strongly over the year.

Finally, Novo Nordisk is worthy of mention. Novo is our largest position and a long standing holding in the portfolio. Novo has recently launched an obesity drug in the US and this has attracted a huge amount of media attention. We have been following their progress in this therapeutic area for a number of years and it is pleasing to see the company finally able to bring an efficacious and well-tolerated product to market. We believe that the obesity franchise is extremely well positioned for growth and this reinforces our positive views on the company. We continue to own a large position in Novo even after the strong multi-year share price performance.

Our underperformers have tended to be defensive in nature. When investors want to buy into improving economic sentiment, they tend to avoid steady, consistent, dependable companies such as Roche, Cellnex and Sartorius. We ignore these short-term swings in sentiment and continue to value the long-term compounding nature of these businesses. In addition to this issue of style, there were a small number of companies whose operational performance was not as impressive as we would wish. Allfunds, DSM Firmenich and Kion have each struggled this year.

Allfunds, a business that links up fund houses with fund distributors, is exposed to three major drivers of growth in assets under administration: the onboarding of new clients, inflows from existing clients and long-term growth in market levels. Over the past year or two, market volatility across multiple asset classes has impacted the latter two of these drivers whilst the onboarding of new clients, an area where they have more control, has remained resilient. We retain faith in the ability of this high market share, high margin business to generate significant growth over time, but a period of more benign markets would be welcome. DSM has struggled with a number of issues, some industry-wide and some stockspecific. On the former, there has been some post-Covid unwind with a number of US customers destocking their ingredients inventory. On the latter, DSM has suffered from weakness in vitamin pricing and have had to deal with disruption related to the Firmenich merger and senior management changes. We have maintained our positions in both Allfunds and DSM (now DSM Firmenich). Finally, Kion has suffered from cost overruns in its warehouse automation business as well as signs of slowing demand. We felt that our long-term thesis had been sufficiently challenged to sell out of our position in Kion.

 
                                    Average portfolio               Attribution Analysis 
                                        weight (%)                           (1) 
                                                                  Sector        Stock 
                                                              allocation    selection     Total 
                                Company   Index   Relative        effect       effect    effect 
                               --------                     ------------  -----------  -------- 
 Aerospace & Defence                5.7     2.2       -3.5           0.3          0.7       1.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Alternative Energy                 0.0     0.5        0.5           0.0          0.1       0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Automobiles and 
  Parts                             0.0     3.3        3.3           0.0         -0.5      -0.5 
                               --------  ------  ---------  ------------  -----------  -------- 
 Banks                              7.0     7.5        0.4           1.5         -0.4       1.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Beverages                          2.3     2.1       -0.2           0.0         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Cash                              -0.7     0.0        0.7           0.0         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Chemicals                          2.3     3.5        1.2          -0.1          0.0      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Construction & 
  Materials                         0.0     3.8        3.8           0.0         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Consumer Services                  0.7     0.2       -0.5          -0.1         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Electricity                        2.1     2.9        0.8          -1.0          0.1      -0.9 
                               --------  ------  ---------  ------------  -----------  -------- 
 Electronic & Electrical 
  Equipment                         2.9     2.7       -0.2          -0.1          0.0      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Finance and Credit 
  Services                          1.5     0.0       -1.5           0.0         -0.7      -0.6 
                               --------  ------  ---------  ------------  -----------  -------- 
 Food Producers                     9.8     6.1       -3.8          -1.1         -0.8      -1.9 
                               --------  ------  ---------  ------------  -----------  -------- 
 Gas, Water & Multiutilities        0.0     1.4        1.4           0.0         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 General Industrials                1.6     1.9        0.3          -0.5         -0.1      -0.6 
                               --------  ------  ---------  ------------  -----------  -------- 
 Health Care Providers              0.0     0.3        0.3           0.0         -0.0      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Household Goods 
  and Home Construction             0.0     0.4        0.4           0.0          0.0       0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Industrial Engineering             3.6     2.5       -1.1           0.4         -0.1       0.2 
                               --------  ------  ---------  ------------  -----------  -------- 
 Industrial Materials               0.0     0.5        0.5           0.0          0.1       0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Industrial Metals 
  & Mining                          0.0     0.7        0.7           0.0          0.1       0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Industrial Support 
  Services                          0.4     1.7        1.4          -0.1          0.5       0.5 
                               --------  ------  ---------  ------------  -----------  -------- 
 Industrial Transportation          0.0     2.6        2.6           0.0         -0.0      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Investment Banking 
  and Brokerage 
  Services                          8.9     3.4       -5.6           0.2         -0.6      -0.3 
                               --------  ------  ---------  ------------  -----------  -------- 
 Leisure Goods                      0.0     0.1        0.1           0.0          0.0       0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Life Insurance                     0.0     0.7        0.7           0.0          0.0       0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Media                              1.9     1.0       -0.9          -0.2          0.0      -0.2 
                               --------  ------  ---------  ------------  -----------  -------- 
 Medical Equipment 
  and Services                      1.7     3.1        1.4           0.1          0.3       0.4 
                               --------  ------  ---------  ------------  -----------  -------- 
 Nonlife Insurance                  3.2     5.1        1.9           1.2          0.0       1.2 
                               --------  ------  ---------  ------------  -----------  -------- 
 Oil, Gas and Coal                  5.3     4.1       -1.2           0.6         -0.2       0.3 
                               --------  ------  ---------  ------------  -----------  -------- 
 Personal Care, 
  Drug and Grocery 
  Stores                            3.2     1.3       -1.9           0.1         -0.1      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Personal Goods                     9.5     7.0       -2.5           1.1          0.3       1.3 
                               --------  ------  ---------  ------------  -----------  -------- 
 Pharmaceuticals 
  & Biotechnology                  15.4    13.0       -2.4           0.0         -0.3      -0.2 
                               --------  ------  ---------  ------------  -----------  -------- 
 Precious Metals 
  and Mining                        0.0     0.0        0.0           0.0         -0.0      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Real Estate Investment 
  and Services                      0.0     0.7        0.7           0.0          0.4       0.4 
                               --------  ------  ---------  ------------  -----------  -------- 
 Real Estate Investment 
  Trusts                            0.0     0.4        0.4           0.0          0.1       0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Retailers                          0.0     0.7        0.7           0.0         -0.2      -0.2 
                               --------  ------  ---------  ------------  -----------  -------- 
 Software & Computer 
  Services                          2.6     4.2        1.6           0.6          0.0       0.6 
                               --------  ------  ---------  ------------  -----------  -------- 
 Technology Hardware 
  & Equipment                       5.8     4.6       -1.2           0.8          0.3       1.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Telecommunications 
  Equipment                         0.0     0.6        0.6           0.0          0.3       0.3 
                               --------  ------  ---------  ------------  -----------  -------- 
 Telecommunications 
  Service Providers                 3.3     2.8       -0.5          -0.5         -0.1      -0.6 
                               --------  ------  ---------  ------------  -----------  -------- 
 Tobacco                            0.0     0.1        0.1           0.0         -0.0      -0.0 
                               --------  ------  ---------  ------------  -----------  -------- 
 Travel and Leisure                 0.0     0.6        0.6           0.0         -0.1      -0.1 
                               --------  ------  ---------  ------------  -----------  -------- 
 Total(1)                         100.0   100.0        0.0           3.1         -1.2       1.9 
                               --------  ------  ---------  ------------  -----------  -------- 
 

1 Total may not sum to the value shown due to rounding differences

Source: Factset

What changes have we made?

We have now had three years of value outperforming growth and quality. Notwithstanding the fact that we managed to outperform marginally over the last year, this style environment has been tough for us. Our inclination throughout the period has been to increase our exposure to high quality companies at a time when they have been out of favour. Each of our purchases and sales over the past twelve months can be seen as moving us in this direction. I will illustrate this with two of our new positions highlighting why we think these are high quality businesses with very attractive long-term prospects.

In March, we initiated a new position in Alcon, the Swiss listed manufacturer of ophthalmic equipment and contact lenses. Over the long term, the industry has experienced healthy growth of 4-5% per annum. Alcon, after years of underinvestment under Novartis ownership, is playing catch up. They have been growing faster than the overall market and expect to continue to do so. Margin potential since the spin-out from Novartis has been clear but the delivery has been slower than hoped for. Recently, however, margin progress has started to come through and the outlook for further margin gains is strong. Finally, on valuation, in MedTech, investors tend to pay for durable growth, i.e. organic revenue growth and the sector trades on around 25 times forward price to earnings. Alcon has usually traded at a 0-10% premium, but when we bought our position, it traded at a small discount. Over the next few years, revenue growth should be faster than the sector (6% versus 4%) and so should earnings per share growth (greater than 15% versus 11%) if they achieve margin progress as guided. We thus see Alcon as a superior growth business capable of margin improvement and a valuation rerating over time.

In May, we bought a position in the Swiss testing company SGS. We have long liked the characteristics of the testing sector. The companies provide a cheap, but essential function to a number of businesses across a wide range of end markets. Often their work is mandated by regulation. The industry is fragmented but is increasingly being consolidated by the large, listed companies, with smaller players disadvantaged in a world where customers want broad, global services. This means that the large companies can consistently acquire the smaller ones at inexpensive valuations, taking advantage of inherent scale benefits to create shareholder value over the medium term. We also believe that increasingly stringent environmental testing regulation is resulting in a boost to testing intensity and this should bring higher growth rates for SGS and their peers especially in the consumer goods-facing part of the business. SGS are the global leader in consumer testing and are in the strongest position to benefit.

Our most notable sales during the period were Enel, CNH International and Kion (a utility company, a tractor company and a forklift truck company respectively).

 
        Largest New Investments                 Largest Divestments 
--------------------------------------  ---------------------------------- 
 Company name                 Position   Company name        Position size 
                          size at year                         at start of 
                             end (% of                          year (% of 
                        the portfolio)                      the portfolio) 
--------------------  ----------------  ----------------  ---------------- 
 SGS                              2.62   Koninklijke KPN              3.05 
 ASM International                2.25   Kion                         2.00 
 Alcon                            1.91   CNH Industrial               1.87 
 BNP Paribas                      1.85   Enel                         1.29 
 Heineken                         1.71 
 Schneider Electric               1.66 
 Euronext                         1.52 
 Brenntag                         0.95 
 Industrie De Nora                0.81 
 Zealand Pharma                   0.61 
 

Our medium term outlook

I am pleased that we have managed to outperform modestly in yet another year of value outperformance. We have used the last few years to increase our exposure to growth and quality and I am confident that our companies are well-placed to deliver strong growth, attractive margins and robust return on capital.

Classification of holdings as at 31 July 2023

 
 
                                     Compounders(1) Average   Improvers(2) Average   Company Average   Index Average 
 Market Capitalisation (GBPm)                       112,902                 43,178            94,024          81,677 
----------------------------------                           ---------------------  ----------------  -------------- 
 Price/book (x)                                         3.6                    1.4               2.6             2.0 
 Trailing 12 month dividend yield 
  (%)                                                   2.2                    2.6               2.3             3.0 
 Trailing 12 month price/earnings 
  (x)                                                  24.8                   13.4              20.2            14.6 
 Forward 2024 price/earnings (x)                       17.5                   12.9              16.0            12.9 
                                    -----------------------  ---------------------  ----------------  -------------- 
 Historical 3-year earnings per 
  share growth per annum (%)                           11.5                   16.3              12.8            23.9 
 Forecast next 12 months earnings 
  per share growth (%)                                 12.7                    8.4              11.5             9.4 
 Return on equity (%)                                  27.4                    5.7              21.5            19.6 
 Operating margin (%)                                  25.1                   13.5              22.0            18.3 
 Long term debt to capital (%)                         31.0                   33.9              31.8            33.1 
 Number of securities                                    32                     15                47             577 
                                                             ---------------------  ----------------  -------------- 
 Weight (%)(3)                                         76.6                   28.4 
                                    -----------------------  --------------------- 
 

Fundamentals are based on weighted averages at the stock level, excluding net cash/borrowing

1 Compounders - high-return businesses

2 Improvers - companies whose return profile should materially improve over time

3 The weight percentages of Compounders and Improvers are shown including net cash/borrowing

Net cash/(borrowing) was -5.1% at 31 July 2023

OW Bunker, a nil value position, is not included in the analysis

Source: Factset/Fundamentals in Sterling and Janus Henderson

Top ten contributors to and bottom detractors from relative performance

Data illustrating the top ten contributors to relative performance is set out below:

 
                      % 
 UniCredit            2.82 
                     ----- 
 Munich Re.           1.54 
                     ----- 
 Hermès          0.81 
                     ----- 
 ASM International    0.77 
                     ----- 
 Safran               0.70 
                     ----- 
 Besi                 0.57 
                     ----- 
 Metso                0.48 
                     ----- 
 Novo Nordisk         0.37 
                     ----- 
 Moncler              0.37 
                     ----- 
 Alcon                0.36 
                     ----- 
 

Data illustrating the bottom ten detractors from relative performance is set out below:

 
                                         % 
 Partners Group                          -0.31 
                                        ------ 
 Sartorius                               -0.40 
                                        ------ 
 Siemens                                 -0.41 
                                        ------ 
 DSM Firmenich                           -0.41 
                                        ------ 
 Roche                                   -0.49 
                                        ------ 
 Kion                                    -0.61 
                                        ------ 
 Allfunds                                -0.65 
                                        ------ 
 Cellnex                                 -0.86 
                                        ------ 
 EDP Renovaveis                          -0.95 
                                        ------ 
 Koninklijke DSM (prior to the merger 
  with Firmenich)                        -1.60 
                                        ------ 
 

Jamie Ross

Fund Manager

27 September 2023

PRINCIPAL RISKS AND UNCERTAINTIES

Managing our risks

The Board, with the assistance of the Manager, has carried out a robust assessment of the principal risks and uncertainties facing the Company, including those that would threaten its business model, future performance, solvency and liquidity.

With the assistance of the Manager, the Board has drawn up a risk register facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's Investment Objective and Policy, in order to mitigate these risks as far as practicable. The Board monitors the Manager, other suppliers and the internal and external environments in which the Company operates to identify new and emerging risks. The Board's policy on risk management has not materially changed from last year. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

 
 Risk                                       Mitigation 
 Investment activity and performance        The Board monitors investment 
  An inappropriate investment                performance at each Board meeting 
  strategy (for example, in terms            and regularly reviews the extent 
  of stock or sector attribution             of its borrowings. 
  or the level of gearing) may 
  result in underperformance against         The Board receives monthly updates 
  the Company's benchmark index              from the Fund Manager. 
  and the companies in its peer 
  group. 
                                           ------------------------------------------- 
 Portfolio and market                       The Board reviews the portfolio 
  Although the Company invests               at each meeting, regularly considers 
  almost entirely in securities              relevant political, economic and 
  that are quoted on recognised              environmental changes and mitigates 
  markets, share prices may move             risk through diversification of 
  rapidly. The companies in which            investments in the portfolio. 
  investments are made may operate 
  unsuccessfully, or fail entirely. 
  Significant economic, political 
  or environmental changes in 
  Europe and globally may impact 
  investment returns. A fall in 
  the market value of the Company's 
  portfolio would have an adverse 
  effect on shareholders' funds. 
                                           ------------------------------------------- 
 Regulatory                                 The Manager is contracted to provide 
  A breach of Section 1158 could             investment, company secretarial, 
  lead to a loss of investment               administration and accounting 
  trust status, resulting in capital         services through qualified professionals. 
  gains realised within the portfolio        The Board receives internal controls 
  being subject to corporation               reports produced by Janus Henderson 
  tax. A breach of the FCA's Listing         on a quarterly basis, which confirm 
  Rules could result in suspension           regulatory compliance. 
  of the Company's shares, while 
  a breach of the Companies Act 
  2006 could lead to criminal 
  proceedings, or financial or 
  reputational damage. 
                                           ------------------------------------------- 
 Operational and cyber                      The Board monitors the services 
  Disruption to, or failure of,              provided by the Manager and its 
  the Manager's accounting, dealing          other suppliers and receives reports 
  or payment systems or the Custodian's      on the key elements in place to 
  records could prevent the accurate         provide effective internal control. 
  reporting and monitoring of                During the year the Board received 
  the Company's financial position.          reports on the Manager's approach 
  The Company is also exposed                to information security and cyber 
  to the operational risk that               attack defence. The Board considers 
  one or more of its service providers       the loss of the Fund Manager as 
  may not provide the required               a risk but this is mitigated by 
  level of service. The Company              the experience of the Equities 
  may also be exposed to the risk            team at Janus Henderson. 
  of cyber attack on its service 
  providers. 
                                           ------------------------------------------- 
 ESG                                        For those companies with a MSCI 
  The Company is an Article 8                Laggard rating, the Board requires 
  company under SFDR. Decisions              the Manager to formally explain 
  on ESG matters can be subjective           the rationale for the potential 
  and criteria may change as knowledge,      improvement of the MSCI risk rating 
  technology and science evolves.            to a minimum of 'medium' within 
  There is a risk that an investment,        three years. See the Annual Report 
  assessed as appropriate at a               for more detail. 
  point in time, subsequently 
  does not meet ESG criteria,                The Company's ESG criteria are 
  and exposes the Company to reputational    considered to be sufficiently 
  risk.                                      clear and measurable. These criteria 
                                             and the Company's adherence to 
                                             them are monitored and reviewed 
                                             on a regular basis. Should the 
                                             Board or the Manager consider 
                                             it appropriate to review or alter 
                                             the criteria, this would be considered 
                                             on a case by case basis against 
                                             known factors prevailing at the 
                                             time. 
                                           ------------------------------------------- 
 

Details of how the Board monitors the services provided by Janus Henderson and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section of the Corporate Governance report of the 2023 Annual Report. Further details of the Company's exposure to market risk (including market price risk, currency risk and interest rate risk), liquidity risk and credit and counterparty risk and how they are managed are contained in the Notes to the Financial Statements within the Annual Report.

VIABILITY STATEMENT AND GOING CONCERN

The Company is a long-term investor. The Board believes it is appropriate to assess the Company's viability over a five year period in recognition of the Company's long-term horizon and what the Board believes to be investors' horizons, taking account of the Company's current position and the potential impact of the principal risks and uncertainties as documented in the Strategic Report within the Annual Report.

The Directors do not expect there to be any significant change in the current principal risks and adequacy of the mitigating controls in place. In addition, the Directors do not envisage any change in strategy or objectives or any events that would prevent the Company from continuing to operate over that period, as the Company's assets are liquid, its commitments are limited and the Company intends to continue to operate as an investment trust. In coming to this conclusion, the Board has considered the potential impact of the principal risks and uncertainties facing the Company, in particular the impact of the rise in inflation, COVID-19, the risks arising from the wider ramifications of the conflict between Russia and Ukraine, investment strategy and performance against the benchmark (whether from stock or sector attribution or the level of gearing) and market risk, materialising in severe but plausible scenarios, and the effectiveness of any mitigating controls in place.

The Directors took into account the liquidity of the portfolio and the borrowings in place when considering the viability of the Company over the next five years and its ability to meet liabilities as they fall due. This included consideration of the duration of the Company's borrowing facilities and how a breach of any covenants could impact on the Company's net asset value and share price. Based on this assessment, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five year period.

The Directors consider it appropriate to adopt the going concern basis of accounting in preparing the Financial Statements (see note 1(b) for further details).

BORROWINGS

During the year under review, the Company had in place an unsecured loan facility of GBP25 million (2022: GBP25 million) which allowed it to borrow as and when appropriate. The maximum amount drawn down in the year under review was GBP17.7 million (2022: GBP12.8 million), with borrowing costs for the year totalling GBP217,000 (2022: GBP84,000). GBP8.6 million of the facility was in use at the year end (2022: GBP12.6 million). Actual gearing at 31 July 2023 was 4.6% (2022: 2.5%) of NAV. Since the year end the Company has put in place an unsecured loan facility of EUR30 million to replace the previous facility. The Board has delegated responsibility for day to day gearing levels to the Fund Manager. The Fund Manager expects to maintain some level of gearing in most conditions and the normal level of gearing is expected to be between 2% and 6% of NAV, but at times it may be above or below these levels. The Fund Manager does not use gearing in an attempt to time prospective market moves. Instead, the Company's gearing will increase when the Fund Manager sees attractive, stock specific, opportunities to deploy capital and will reduce gearing when the Fund Manager is a net seller of existing positions, again for stock specific reasons.

RELATED PARTY TRANSACTIONS

The Company's transactions with related parties in the year were with its Directors and the Manager. There have been no material transactions between the Company and its Directors during the year and the only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the year end. Directors' shareholdings are disclosed in the 2023 Annual Report.

In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties, there have been no material transactions with the Manager affecting the financial position of the Company during the year under review. More details on transactions with the Manager, including amounts outstanding at the year end, are given in the Notes to the Financial Statements within the Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

In accordance with Disclosure Guidance and Transparency Rule 4.1.12, each of the Directors confirms that, to the best of his or her knowledge:

 
 (a)   the Company's Financial Statements, which have been prepared 
        in accordance with UK Accounting Standards, give a true 
        and fair view of the assets, liabilities, financial position 
        and profit of the Company; and 
 (b)   the Annual Report and Financial Statements include a fair 
        review of the development and performance of the business 
        and the position of the Company, together with a description 
        of the principal risks and uncertainties that it faces. 
 

The Directors consider that the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.

On behalf of the Board

Nicola Ralston

Chairman

27 September 2023

TWENTY LARGEST HOLDINGS AS AT 31 JULY 2023

 
 
                                                                             Market       Percentage 
                                                                         Value 2023     of Portfolio 
        Company                 Country       Sector                        GBP'000             2023 
---  ----------------------  ------------  --------------------------  ------------  --------------- 
                                            Pharmaceuticals 
 1    Novo Nordisk            Denmark        and Biotechnology               20,336             5.69 
 2    Nestlé             Switzerland   Food Producer                    17,817             4.99 
 3    TotalEnergies           France        Oil, Gas and Coal                17,261             4.83 
                                            Pharmaceuticals 
 4    Roche                   Switzerland    and Biotechnology               15,766             4.41 
                                            Pharmaceuticals 
 5    Sanofi                  France         and Biotechnology               14,465             4.05 
                                            Technology Hardware 
 6    ASML                    Netherlands    and Equipment                   13,009             3.64 
 7    Hermès             France        Luxury Goods                     12,403             3.47 
      LVMH Moët 
       Hennessy Louis 
 8     Vuitton                France        Personal Goods                   12,156             3.40 
                                            Aerospace and 
 9    Safran                  France         Defence                         10,072             2.82 
                                            Software and Computer 
 10   SAP                     Germany        Services                         9,968             2.79 
---  ----------------------  ------------  --------------------------  ------------  --------------- 
 Top 10                                                                     143,253            40.09 
---------------------------------------------------------------------  ------------  --------------- 
 11   DSM Firmenich         Switzerland     Food Producer                     9,860             2.76 
 12   Cellnex               Spain           Mobile Telecommunications         9,762             2.73 
                                            Aerospace and 
 13   Airbus                France           Defence                          9,642             2.70 
                                            Industrial Support 
 14   SGS                   Switzerland      Services                         9,353             2.62 
                                            Private Equity 
 15   Partners Group        Switzerland      Asset Manager                    9,028             2.53 
                                            Personal Care, 
                                             Drug and Grocery 
 16   Beiersdorf            Germany          Store                            8,650             2.42 
 17   Munich Re.            Germany         Insurance                         8,441             2.36 
 18   Deutsche Börse   Germany         Financial Services                8,400             2.35 
                                            Technology Hardware 
 19   ASM International     Netherlands      and Equipment                    8,033             2.25 
 20   UniCredit             Italy           Banks                             7,913             2.21 
---  --------------------  --------------  --------------------------  ------------  --------------- 
 Top 20                                                                     232,335            65.02 
---------------------------------------------------------------------  ------------  --------------- 
 
 

Market capitalisation (excluding cash) of the portfolio by weight at 31 July 2023

 
 Market cap           % Portfolio weight   % Benchmark weight 
-------------------  -------------------  ------------------- 
 >EUR20bn                           74.9                 73.7 
 EUR10bn - EUR20bn                   8.2                 12.0 
 EUR5bn - EUR10bn                   11.5                  9.7 
 EUR1bn - EUR5bn                     4.7                  4.4 
 EUR0bn - EUR1bn                     0.7                  0.2 
-------------------  -------------------  ------------------- 
 

Performance drivers over the year ended 31 July 2023

 
 
                                                % 
----------------------------------------  ------- 
 
 Benchmark Return                            16.1 
 
 Sector Allocation(1)                       (2.0) 
 
 Stock Selection                              3.1 
 
 Currency Movements (relative to index)       0.9 
 
 Effect of Cash and Gearing                 (0.1) 
 
 Effect of Ongoing Charge                   (0.8) 
 
 Residual (due to timing and rounding)      (0.5) 
----------------------------------------  ------- 
 
 NAV Total Return                            16.7 
----------------------------------------  ------- 
 

(1) Sector allocation is the effect of asset allocation, less the effects of gearing, share buy-backs / issues and currency.

Source: Morningstar Direct, Janus Henderson

AUDITED INCOME STATEMENT

 
                                       Year ended 31 July                Year ended 31 July 
                                              2023                              2022 
 
                                  Revenue     Capital      Total    Revenue     Capital      Total 
                                   return      return     return     return      return     return 
                                  GBP'000     GBP'000    GBP'000    GBP'000     GBP'000    GBP'000 
Gains/(losses) on investments 
 held 
 at fair value through profit 
 or loss 
 (note 2)                               -      43,816     43,816          -    (54,923)   (54,923) 
Investment income (note 
 3)                                 8,877           -      8,877      9,298           -      9,298 
Other income                           71           -         71          1           -          1 
                                ---------  ----------  ---------  ---------  ----------  --------- 
 
Gross revenue and capital 
 Gains/(losses)                     8,948      43,816     52,764      9,299    (54,923)   (45,624) 
 
Management fee                      (407)     (1,628)    (2,035)      (410)     (1,642)    (2,052) 
 
Other administrative expenses       (553)           -      (553)      (553)           -      (553) 
                                ---------  ----------  ---------  ---------  ----------  --------- 
Net return/(loss) before 
 finance costs and taxation         7,988      42,188     50,176      8,336    (56,565)   (48,229) 
 
Finance costs                        (43)       (174)      (217)       (17)        (67)       (84) 
                                ---------  ----------  ---------  ---------  ----------  --------- 
Net return/(loss)before 
 taxation                           7,945      42,014     49,959      8,319    (56,632)   (48,313) 
 
Taxation on net return            (1,120)           -    (1,120)       (69)        (11)       (80) 
                                ---------  ----------  ---------  ---------  ----------  --------- 
Net return/(loss)after 
 taxation                           6,825      42,014     48,839      8,250    (56,643)   (48,393) 
                                    =====       =====      =====      =====       =====      ===== 
 
Return/(loss) per ordinary 
 share 
 (basic and diluted) (note 
 4)                                 3.22p      19.83p     23.05p      3.89p    (26.73p)   (22.84p) 
                                    =====       =====      =====      =====       =====      ===== 
 

The total return column of this statement represents the Income Statement of the Company.

All revenue and capital items in the above statement derive from continuing operations.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the AIC.

The Company had no recognised gains or losses other than those disclosed in the Income Statement.

AUDITED STATEMENT OF CHANGES IN EQUITY

 
                                Called 
                                    up         Share        Capital 
                                 share       premium     redemption       Capital      Revenue     Total shareholders' 
 Year ended 31 July            capital       account        reserve      reserves      reserve                   funds 
  2023                         GBP'000       GBP'000        GBP'000       GBP'000      GBP'000                 GBP'000 
 
   At 1 August 2022              1,060        41,032            263       251,065        7,590                 301,010 
 Net return after 
  taxation                           -             -              -        42,014        6,825                  48,839 
 Final dividend paid 
  in respect of the 
  year ended 31 July 
  2022 (paid 23 November 
  2022)                              -             -              -             -      (6,356)                 (6,356) 
 Interim dividend paid 
  in respect of the 
  year ended 31 July 
  2023 (paid 28 April 
  2023)                              -             -              -             -      (1,695)                 (1,695) 
                            ----------   -----------     ----------   -----------   ----------            ------------ 
 At 31 July 2023                 1,060        41,032            263       293,079        6,364                 341,798 
                                ======        ======         ======       =======       ======                 ======= 
 
 
 
 
                                Called 
                                    up         Share        Capital 
                                 share       premium     redemption       Capital      Revenue     Total shareholders' 
 Year ended 31 July            capital       account        reserve      reserves      reserve                   funds 
  2022                         GBP'000       GBP'000        GBP'000       GBP'000      GBP'000                 GBP'000 
 
   At 1 August 2021              1,060        41,032            263       307,722        4,633                 354,710 
 Net (loss)/return 
  after taxation                     -             -              -      (56,643)        8,250                (48,393) 
 Costs relating to 
  sub-division of shares             -             -              -          (14)            -                    (14) 
 Final dividend paid 
  in respect of the 
  year ended 31 July 
  2021 (paid 24 November 
  2021)                              -             -              -             -      (3,602)                 (3,602) 
 Interim dividend paid 
  in respect of the 
  year ended 31 July 
  2022 (paid 22 April 
  2022)                              -             -              -             -      (1,695)                 (1,695) 
 Refund of unclaimed 
  dividends over 12 
  years old                          -             -              -             -            4                       4 
                            ----------   -----------     ----------   -----------   ----------            ------------ 
 At 31 July 2022                 1,060        41,032            263       251,065        7,590                 301,010 
                                ======        ======         ======       =======       ======                 ======= 
 
 

AUDITED STATEMENT OF FINANCIAL POSITION

 
                                             As at 31                As at 31 
                                            July 2023               July 2022 
                                              GBP'000                 GBP'000 
---------------------------------------  ------------  ---------------------- 
 Fixed assets 
  Fixed asset investments held at fair 
  value through profit or loss 
 Listed at market value - overseas            357,406                 308,398 
                                           ----------              ---------- 
 
 Current assets 
 Debtors                                        3,445                   6,192 
 Cash at bank and in hand                       2,687                   2,482 
                                           ----------              ---------- 
                                                6,132                   8,674 
 
 Creditors: amounts falling due within 
  one year                                   (21,740)                (16,062) 
                                           ----------              ---------- 
 Net current liabilities                     (15,608)                 (7,388) 
                                           ----------              ---------- 
 Total assets less current liabilities        341,798                 301,010 
                                           ----------              ---------- 
 Net assets                                   341,798                 301,010 
                                               ======                  ====== 
 
 Capital and reserves 
 Called up share capital                        1,060                   1,060 
 Share premium account                         41,032                  41,032 
 Capital redemption reserve                       263                     263 
 Capital reserves                             293,079                 251,065 
 Revenue reserve                                6,364                   7,590 
                                          -----------             ----------- 
 Total shareholders' funds                    341,798                 301,010 
                                               ======                  ====== 
 
 Net asset value per ordinary share 
  (basic and diluted)                          161.3p                  142.1p 
                                               ======                  ====== 
 

NOTES TO THE FINANCIAL STATEMENTS

 
 1     Accounting policies 
  . 
 (a)   Basis of preparation 
       The Company is a registered investment company as defined 
        in Section 833 of the Companies Act 2006 and is incorporated 
        in the United Kingdom. It operates in the United Kingdom 
        and is registered at 201 Bishopsgate, London EC2M 3AE. 
 
        The Financial Statements have been prepared in accordance 
        with the Companies Act 2006, FRS 102 'The Financial Reporting 
        Standard applicable in the UK and Republic of Ireland' and 
        with the Statement of Recommended Practice: Financial Statements 
        of Investment Trust Companies and Venture Capital Trusts 
        (the 'SORP') issued in July 2022 by the Association of Investment 
        Companies. 
 
        The principal accounting policies applied in the presentation 
        of these Financial Statements are set out below. These policies 
        have been consistently applied to all the years presented. 
        There have been no significant changes to the accounting 
        policies compared to those set out in the Company's Annual 
        Report for the year ended 31 July 2022. 
 
        As an investment company the Company has the option, which 
        it has taken, not to present a cash flow statement. A cash 
        flow statement is not required when an investment company 
        meets all the following conditions: substantially all of 
        the entity's investments are highly liquid, substantially 
        all of the entity's investments are carried at market value, 
        and the entity provides a statement of changes in equity. 
        The Directors have assessed that the Company meets all of 
        these conditions. 
 
        The Financial Statements have been prepared under the historical 
        cost basis except for the measurement at fair value of investments. 
        In applying FRS 102, financial instruments have been accounted 
        for in accordance with Section 11 and 12 of the standard. 
 
        All of the Company's operations are of a continuing nature. 
 
        The preparation of the Company's Financial Statements on 
        occasion requires the Directors to make judgements, estimates 
        and assumptions that affect the reported amounts in the 
        primary Financial Statements and the accompanying disclosures. 
        These assumptions and estimates could result in outcomes 
        that require a material adjustment to the carrying amount 
        of assets or liabilities affected in the current and future 
        periods, depending on circumstance. 
 
        The Directors do not believe that any accounting judgements 
        or estimates have been applied to this set of Financial 
        Statements that have a significant risk of causing a material 
        adjustment to the carrying amount of assets and liabilities 
        within the next financial year. 
 
 (b)   Going concern 
        The assets of the Company consist of securities that are 
        primarily readily realisable and, accordingly, the Directors 
        believe that the Company has adequate resources to continue 
        in operational existence for at least 12 months from the 
        date of approval of the Financial Statements. Having assessed 
        these factors and the principal risks, as well as considering 
        the impact of the rise in inflation, COVID-19 and the risks 
        arising from the wider ramifications of the conflict between 
        Russia and Ukraine, the Directors consider it appropriate 
        to adopt the going concern basis of accounting in preparing 
        the Financial Statements. 
 
 
 
 2.    Gains/(losses)on investments held at fair value through 
        profit or loss 
                                                                2023             2022 
                                                             GBP'000          GBP'000 
  Gains on sale of investments based on 
   historical cost                                            10,558            4,271 
  Less: Revaluation gains recognised in 
   previous years                                              (591)         (32,176) 
                                                        ------------     ------------ 
 
  Gains/(losses)on investments sold in 
   the year based on carrying value at previous 
   statement of financial position date                        9,967         (27,905) 
                                                        ------------     ------------ 
  Revaluation of investments held at 31 
   July                                                       34,001         (27,108) 
  Exchange (losses)/gains(1)                                   (152)               90 
                                                          ----------       ---------- 
                                                              43,816         (54,923) 
                                                              ======           ====== 
       (1) Includes exchange losses of GBP34,000 (2022: GBP20,000) 
        on bank loans 
 3.    Investment income                                        2023             2022 
                                                             GBP'000          GBP'000 
      -----------------------------------------------  -------------  --------------- 
  Overseas dividend income                                     8,877            9,298 
                                                          ----------       ---------- 
                                                               8,877            9,298 
                                                               =====            ===== 
 
 4.    Return/(loss) per ordinary share (basic and diluted) 
       The total return per ordinary share is based on the net 
        gain attributable to the ordinary shares of GBP48,839,000 
        (2022: loss GBP48,393,000) and on 211,855,410 ordinary shares 
        (2022: 211,855,410), being the weighted average number of 
        shares in issue during the year. The total return can be 
        further analysed as follows: 
 
                                                                2023             2022 
                                                             GBP'000          GBP'000 
      -----------------------------------------------  -------------  --------------- 
  Revenue return                                               6,825            8,250 
  Capital return/(loss)                                       42,014         (56,643) 
                                                          ----------       ---------- 
  Total return/(loss)                                         48,839         (48,393) 
                                                              ======           ====== 
  Weighted average number of ordinary shares             211,855,410      211,855,410 
 
                                                                2023             2022 
                                                               Pence            Pence 
      -----------------------------------------------  -------------  --------------- 
  Revenue return per ordinary share                             3.22             3.89 
  Capital return/(loss) per ordinary share                     19.83          (26.73) 
                                                          ----------       ---------- 
  Total return/(loss) per ordinary share                       23.05          (22.84) 
                                                              ======           ====== 
 
 
 
  The Company has no securities in issue that could dilute 
   the return per ordinary share. Therefore the basic and diluted 
   return per ordinary share are the same. 
 
 
 
 
 5.     Dividends on ordinary shares 
 
                                        Register date               Payment date                   2023         2022 
                                                                                                GBP'000      GBP'000 
       ------------------------------  --------------------------  ----------------------  ------------  ----------- 
  Final dividend (1.7p) 
   for the year ended 31          22 October 
   July 2021                       2021                             24 November 2021                  -        3,602 
  Interim dividend (0.8p) 
   for the year ended 31 
   July 2022                      8 April 2022                      22 April 2022                     -        1,695 
        Final dividend (3.0p) 
         for the year ended 31          21 October 
         July 2022                       2022                       23 November 2022              6,356            - 
        Interim dividend (0.8p) 
         for the year ended 31 
         July 2023                      11 April 2023               28 April 2023                 1,695            - 
  Refund of unclaimed 
   dividends over 12 years 
   old                                                                                                -          (4) 
                                                                                            -----------   ---------- 
                                                                                                  8,051        5,293 
                                                                                                =======      ======= 
 
 
        The proposed final dividend of 3.0p per share for the year ended 
         31 July 2023 is subject to approval by shareholders at the AGM 
         and has not been included as a liability in these Financial 
         Statements. The final dividend will be paid on 22 November 2023 
         to shareholders on the register of members at the close of business 
         on 20 October 2023. The shares will be quoted ex-dividend on 
         19 October 2023. 
 
         All dividends have been paid or will be paid out of revenue 
         profits and revenue reserves. 
 
         The total dividends payable in respect of the financial year 
         which form the basis of Section 1158 of the Corporation Tax 
         Act 2010 are set out below: 
 
                                                                                                   2023         2022 
                                                                                                GBP'000      GBP'000 
       ----------------------------------------------------------------------------------  ------------  ----------- 
  Revenue available for distribution by way of 
   dividend for the year                                                                          6,825        8,250 
  Interim dividend of 0.8p (2022: 0.8p) paid 28 
   April 2023 (2022: 22 April 2022)                                                             (1,695)      (1,695) 
  Proposed final dividend for the year ended 31 
   July 2023 of 3.0p (2022: 3.0p) (based on 211,855,410 
   ordinary shares in issue at 27 September 2023 
   (2022: 211,855,410))                                                                         (6,356)      (6,356) 
                                                                                            -----------   ---------- 
  Transfer (from)/to revenue reserve(1)                                                         (1,226)          199 
                                                                                                =======      ======= 
 
        (1) There is no undistributed revenue in the current year (2022: 
         GBP199,000 of undistributed revenue). 
 
 6      Net asset value per ordinary share (basic and diluted) 
  . 
        The net asset value per ordinary share of 161.3p (2022: 142.1p) 
         is based on the net assets attributable to ordinary shares of 
         GBP341,798,000 (2022: GBP301,010,000) and 211,855,410 (2022: 
         211,855,410) ordinary shares in issue at the year end. There 
         were also 200,000 shares held in Treasury at the year end (2022: 
         200,000). 
 
         The movements during the year of the assets attributable to 
         the ordinary shares were as follows: 
                                                                                                   2023         2023 
                                                                                                GBP'000      GBP'000 
       ----------------------------------------------------------------------------------  ------------  ----------- 
  Net assets attributable to the ordinary shares 
   at start of year                                                                             301,010      354,710 
  Net return/(loss) after taxation                                                               48,839     (48,393) 
  Costs relating to sub-division of shares                                                            -         (14) 
  Dividends paid on ordinary shares in the year                                                 (8,051)      (5,297) 
  Refund of unclaimed dividends over 12 years old                                                     -            4 
                                                                                            -----------   ---------- 
  Total net assets attributable to the ordinary 
   shares at 31 July                                                                            341,798      301,010 
                                                                                                =======      ======= 
 
 7      Called up share capital 
  . 
                                                                                                             Nominal 
                                                                    Number of                               value of 
                                                              shares entitled              Total number       shares 
                                                                  to dividend                 of shares      GBP'000 
       -------------------------------------------  ---  --------------------  ------------------------  ----------- 
  Allotted and issued ordinary 
   shares of 0.5p each at 31 July 
   2022                                                           211,855,410               212,055,410        1,060 
                                                            -----------------          ----------------   ---------- 
  At 31 July 2023                                                 211,855,410               212,055,410        1,060 
                                                                   ==========                ==========        ===== 
 
  During the year the Company issued no shares (2022: none). 
 
   During the year the Company repurchased no shares (2022: none). 
 
   Shares held in treasury (2023: 200,000; 2022: 200,000) are not 
   entitled to receive a dividend. 
 
   There is a single class of ordinary share. Reserves that can 
   be distributed as a dividend are detailed in the Annual Report. 
 
   Since 31 July 2023, no shares have been repurchased or issued. 
 
 8.     2023 financial information 
  The figures and financial information for the year ended 31 
   July 2023 are extracted from the Company's Annual Financial 
   Statements for that period and do not constitute statutory financial 
   statements for that period. The Company's Annual Financial Statements 
   for the year ended 31 July 2023 have been audited but have not 
   yet been delivered to the Registrar of Companies. The Independent 
   Auditor's Report on the 2023 Financial Statements was unqualified, 
   did not include a reference to any matter to which the Auditors 
   drew attention without qualifying the report, and did not contain 
   any statements under sections 498(2) and 498(3) of the Companies 
   Act 2006. 
 
 9      2022 financial information 
  . 
  The figures and financial information for the year ended 31 
   July 2022 are extracted from the Company's Annual Financial 
   Statements for that period and do not constitute statutory financial 
   statements for that period. The Company's Annual Financial Statements 
   for the year ended 31 July 2022 have been audited and delivered 
   to the Registrar of Companies. The Independent Auditor's Report 
   on the 2022 Financial Statements was unqualified, did not include 
   a reference to any matter to which the Auditors drew attention 
   without qualifying the report, and did not contain any statements 
   under sections 498(2) and 498(3) of the Companies Act 2006. 
 
 10.    Annual Report and Annual General Meeting 
  The Annual Report for the year ended 31 July 2023 will be posted 
   to shareholders in October 2023 and copies will be available 
   from the Corporate Secretary at the Company's Registered Office, 
   201 Bishopsgate, London EC2M 3AE. 
 
   The Company's Annual General Meeting ('AGM' or 'Meeting') is 
   currently scheduled to take place at the registered office at 
   2.30pm on Wednesday 15 November 2023. The Notice of the AGM 
   will be posted to shareholders with the Annual Report and will 
   be available on the Company's website. 
 
 11.    Website 
         This document, and the Annual Report for the year ended 31 July 
         2023, will be available on the following website: www.hendersoneurotrust.com 
         . 
 
 
 
 
 
 For further information please contact: 
 Jamie Ross                         Dan Howe 
  Fund Manager                       Head of Investment Trusts 
  Henderson EuroTrust plc            Janus Henderson Investors 
  Telephone: 020 7818 5260           Telephone: 020 7818 4458 
 Harriet Hall 
  Investment Trust PR Manager 
  Janus Henderson Investors 
  Tel: 020 7818 2919 
 
 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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FR SESFAWEDSEFU

(END) Dow Jones Newswires

September 28, 2023 02:00 ET (06:00 GMT)

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