Scottish Mortgage Investment Trust (SMT) H1 2025 earnings summary

Executive summary

• NAV per share (debt at fair value) rose 1.9% in six months to 30 Sept 2024, underperforming the FTSE All-World Index's 3.6% gain; five- and ten-year NAV growth remains well ahead of the benchmark.

• Share price fell 6.1% over six months, reflecting a persistent discount to NAV, despite significant share buybacks.

• Portfolio themes include AI, electrification, digitalisation, and decarbonisation, with notable activity in private and emerging market companies.

• Interim dividend of 1.60p per share maintained, consistent with last year.

Financial highlights

• Shareholders' funds decreased to £11,928.6m from £12,629.8m at 31 March 2024.

• Net asset value per share (book) increased 1.8% to 928.1p; NAV per share (fair value) up 1.7% to 952.1p.

• Revenue earnings per share fell 30.9% year-over-year to 1.12p.

• Net return after tax for six months: £214.1m (vs. £-377.3m prior year); capital return £199.2m, revenue return £14.8m.

• Share price at period end: 837.0p, down from 894.0p at 31 March 2024.

Outlook and guidance

• Managers remain optimistic about long-term growth, citing portfolio companies' faster earnings growth than the broader market.

• Expectation that portfolio potential is not fully reflected in current stock prices.

• Cautious on private company funding environment but confident in quality and resilience of holdings.