Smithson Investment Trust (SSON) H2 2025 earnings summary

Executive summary

• Net asset value (NAV) per share decreased by 1.8% to 1,601.5p for the year ended 31 December 2025, with a total NAV of £1,720.5 million.

• Share price increased by 5.6% to 1,566.0p, narrowing the discount to NAV to 2.2% from 9.1% a year earlier.

• The Board proposed converting the company into an open-ended investment company (OEIC) to address persistent share price discount and enhance shareholder value.

• A major restructuring is underway, with shareholder votes scheduled for February 2026 and anticipated voluntary liquidation if approved.

Financial highlights

• NAV per share fell 1.8% year-over-year, underperforming the MSCI World SMID Index, which rose 10.2%.

• Total loss after tax was £62.8 million, comprising a capital loss of £67.4 million and a revenue profit of £4.6 million.

• Ongoing charges ratio was 0.90%, up from 0.86% in 2024; total cost of investment was 0.92%.

• Dividend of 2.1p per share announced for the 18-month period to 30 June 2026.

• Share buybacks continued, with 23.1 million shares repurchased in 2025, totaling nearly 40% of shares since April 2022.

Outlook and guidance

• The Board believes the proposed OEIC structure will eliminate the share price discount and provide daily liquidity at NAV.

• If the restructuring is approved, all directors will step down and a liquidator will be appointed.

• The investment strategy will remain unchanged in the new structure.