Final Results for the year to 30th June 2025
Summary by AI BETAClose X
16th September 2025
CITY OF LONDON INVESTMENT GROUP PLC (LSE: CLIG)
("City of London", "the Group" or "the Company")
FINAL RESULTS FOR THE YEAR TO 30TH JUNE 2025 AND DIVIDEND DECLARATION
The Company announces that it has today made available on its website, https://www.clig.co.uk/, the following documents:
- Annual Report and Financial Statements for the year ended 30th June 2025 (the 2025 Annual Report); and
- Notice of 2025 Annual General Meeting (the Notice of AGM).
The above documents will be uploaded to the National Storage Mechanism for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism in due course, in accordance with Listing Rule 9.6.1 R.
The 2025 Annual Report and the Notice of AGM, which will be held on 27th October 2025, will be posted to shareholders on 22nd September 2025.
The Appendix to this announcement contains additional information which has been extracted from the 2025 Annual Report for the purposes of compliance with DTR 6.3.5 only and should be read in conjunction with this announcement. together, these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. This announcement should be read in conjunction with, and is not a substitute for reading, the full 2025 Annual Report.
SUMMARY
|
- |
Funds under Management (FuM) of $10.8 billion at 30th June 2025. This compares with $10.2 billion at the beginning of this financial year on 1st July 2024
|
|
- |
Estimated FuM as of 11th September 2025 was $11.1 billion (2.8% higher than 30th June 2025)
|
|
- |
Net fee income was $69.8 million (2024: $66.2 million)
|
|
- |
Underlying profit before tax* was $30.8 million (2024: $27.2 million). Profit before tax was $26.0 million (2024: $22.6 million)
|
|
- |
Underlying basic earnings per share* were 36.7p (2024: 33.5p). Basic earnings per share were 30.9p (2024: 27.8p). after an effective tax charge of 24% (2024: 24%) of profit before taxation
|
|
- |
Recommended final dividend of 22p per share (2024: 22p) payable on 6th November 2025 to shareholders on the register on 26th September 2025, making a total for the year of 33p (2024: 33p) |
|
|
|
*This is an Alternative Performance Measure (APM). Please refer to the Financial Review for more details on APMs.
For access to the full report, please follow the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4132Z_1-2025-9-15.pdf
Dividend
The Board is proposing to recommend a final dividend of 22p per share (2024: 22p), subject to approval by shareholders at the Company's Annual General Meeting (AGM) to be held on 27th October 2025. This would bring the total dividend payment for the year to 33p (2024: 33p). Rolling five-year dividend cover based on underlying profits equates to 1.21 times (2024: 1.24 times).
The Board confirms the final dividend timetable for the year to 30th June 2025:
· Ex-dividend date: 25th September 2025
· Dividend record date: 26th September 2025
· DRIP election date: 10th October 2025
· Dividend payment date: 6th November 2025
Investor Presentation via Investor Meet Company
Rian Dartnell - Chairman, Deepranjan Agrawal - CFO, Carlos Yuste - Head of Business Development, Michael Edmonds - CLIM CIO and Dan Lippincott - KIM CIO will provide a live presentation relating to the FY 2025 year-end results via Investor Meet Company on 17th September 2025 at 15:00 BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 16th September 2025 at 09:00 BST, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet City of London Investment Group PLC via:
https://www.investormeetcompany.com/city-of-london-investment-group-plc/register-investor
Investors who already follow City of London Investment Group PLC on the Investor Meet Company platform will automatically be invited.
For further information, please visit www.citlon.co.uk or contact:
Rian Dartnell, Chairman
City of London Investment Group PLC
Tel: 001-610-380-0435
Martin Green/
James Hornigold
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20 3829 5000
CHAIR'S STATEMENT
|
+9.6% Underlying EPS* |
Underlying earnings per share for CLIG were higher by 9.6% at 36.7p (2024: 33.5p). |
|
+5.6% FuM |
FuM as of 30th June 2025 rose by 5.6% to $10.8 billion (2024: $10.2 billion). |
|
1.21 Dividend cover |
Rolling five-year dividend cover based on underlying* profits is 1.21 (2024: 1.24). |
|
11.3% Total return |
CLIG's total return since 2006 is an annualised return of 11.3%. |
|
520.1p† Total dividend |
Since listing, CLIG has distributed total dividends of 520.1p† per share. |
* Refer to the financial review for more details.
† Includes proposed dividend of 22p.
You wait ages for a bus and then three turn up at the same time. In 2025, our teams' preparation and positioning paid off as Closed-End Funds (CEF) discounts narrowed, there was a renewed interest in international and emerging markets, and many currencies strengthened against the dollar. The final positive contributor was success in our corporate governance efforts as CEF Boards worked with us and acted to reduce discounts.
It was a good year for CLIG, led by the success and talent of our investment teams who generated substantial gains and outperformed their benchmarks for our clients.
CLIG is an investment-led company with an integrated global investment team focused on building diversified portfolios of high quality, but discounted and often misunderstood securities, including CEFs. By concentrating on niche and underfollowed securities, we aim to exploit persistent market inefficiencies that often go unnoticed by others. Our investment approach is research-driven, combining quantitative techniques with in-depth qualitative analysis. Our global presence enables a continuous investment process that capitalises on opportunities around the clock. Our day begins in Singapore, where our team identifies dislocations in Asian markets while many competitors are asleep. The portfolio is then handed over to our London team, which focuses on opportunities in the UK and European markets. Finally, the US team takes over, continuing the cycle across North American markets. This seamless global collaboration enhances diversification and ensures we are positioned to act swiftly to capitalise on dislocations and evolving market dynamics.
Well-resourced teams, a stable environment, consistent processes - and no stars
Throughout my career, I've learned the value of a contrarian and supportive mindset in managing investment teams. Many managers are procyclical, spending more in good times and slashing budgets in downturns. To avoid this, CLIG maintains a conservative balance sheet with substantial cash and no debt. Discounts in CEFs are often widest in hard times. It is essential that we support our teams and lend a hand, but particularly so when markets are down. This calm and methodical orientation is key to our investment teams having the composure to invest with conviction when opportunities present themselves. CLIG remains focused on empowering and equipping our teams and providing a stable environment to allow them to execute consistently for our clients.
Our desire to learn and grow leads us to innovate and expand our expertise as we have for more than three decades. For CLIM, our roots are in Emerging Markets, but today we manage large mandates in International, Listed Private Equity and Opportunistic Value on behalf of predominantly US institutional clients.
At KIM, we have an array of strong offerings including Growth and Conservative Balanced, Taxable and Tax-sensitive Fixed Income, Cash Management and Equities. Together CLIM provides compelling offerings for our clients to compound their capital in equity markets and KIM provides chiefly lower risk offerings ideally suited to its private client base. We carefully monitor our capacity constrained investment products and know that our long-term performance for clients is our central purpose. Rest assured we will maintain stability of assets with a strict view on our ability to outperform.
Happy fifth anniversary! Our dream merger with Karpus Investment Management
Before delving into developments at your Company over the past year, I would like to celebrate our five-year anniversary of merging with Karpus Investment Management. By combining, CLIG gained an excellent business, a talented new team with complementary skills, all contributing strong cash flows, greater stability, diversification and new learnings.
George Karpus had a dream as an entrepreneur and in 1986 embarked on his lifetime's passion. At the same time, Barry Olliff was planning and establishing Olliff & Partners, the predecessor firm to City of London Investment Group. George and Barry pursued and fulfilled their dreams over nearly four decades - passionately leading their teams, growing their firms and providing strong returns for clients. Five years into our relationship, I can say with confidence that our CLIM and KIM merger made good sense and added considerable expertise and value to CLIG. We draw confidence from this successful integration. While Barry Olliff and George Karpus are officially retired, we are fortunate that their teachings and philosophies are alive and well at CLIG - and both Barry and George remain strong supporters of our teams.
During the year, Mike Edmonds was appointed Chief Investment Officer of CLIM. A highly accomplished investor and City of London veteran, Mike first began his career with the Group in 1992. He brings deep investment expertise, creativity, and an engaging intellectual curiosity - qualities that complement his strong collaborative relationships across our Investment, Research, and Macroeconomic groups. The team is energised with a renewed sense of purpose - using new tools and greater outreach to improve investment processes and challenging old practices to find better ones. Dan Lippincott, Chief Investment Officer at KIM, continues to work very productively with his team and morale is high, boosted by strong performance.
Environmental, Social and Governance
Your Board continues to be committed to the highest standards in environmental, social and governance matters. The Group continues to implement a carbon offset program to address our impact related to travel and other activities. We continually balance the interests of our clients, employees and shareholders and seek to improve and grow the Company.
Diversity, equity and inclusion continue to be emphasised across the Group. All employees attend regular monthly training programs to prepare and remind them of their role in protecting our technology, with an elevated focus on cybersecurity.
The Group continues to be strongly committed to regular workforce engagement events. These sessions ensure the Non-Executive Directors (NEDs) maintain a good understanding of the many elements at play in the Group as well as the teams and individuals working to grow and improve the business. Workforce engagement with the Board has been more frequent over the past six months as we increased focus on growth initiatives as well as streamlining for efficiency gains.
Broadening leadership, stimulating engagement and empowering our teams
A fresh start is energising our teams. There's a renewed sense of purpose and momentum is building. We are challenging old methods to find greater efficiencies.
We are broadening our management structure with more members of our subsidiary Boards at CLIM and KIM and underlining the importance of robust debate and engagement in CLIM and KIM Operating Committees. Innovation and adaptability to change are more important than ever and this happens best from the grass roots.
Your management and the Board have embarked upon a review of our business practices to identify more areas of efficiencies and to ensure we are improving with the latest techniques available. We are giving our teams greater say in designing workflows and pushing decision making to the "coal-face" where more informed decisions can be made - more management by objective and more trust. We are confident in our excellent teams and feel greater autonomy will unleash creativity and enhance engagement. This will allow teams to spend even more of their time and resources on our core functions: investment management and client services.
Your Board
Your Board is operating well and is keenly focused on providing the necessary elements to support CLIG for continued success.
I began my role as Chairman in October 2023. One of my first activities was to work with our Nomination Committee to identify an excellent addition to our Board. Sarah Ing joined us a few months later and became Chair of the Remuneration Committee at the end of 2024. Peter Roth, who joined in 2019, continues his excellent work as Senior Independent Director as well as Chair of the Audit and Risk Committee. Peter is deeply committed to the Group's success and he was particularly hard-working and effective this year. Finally, we were pleased to identify Ben Stocks and welcome him to our Board in April 2025 and appoint him as Chair of our Nomination Committee in July. Ben hit the ground running and is already making important contributions.
The Board is currently well-balanced with members possessing a good mix of skills and perspectives. We will also begin a search for another NED to add diversity and longevity to the Board. We expect to appoint this new NED after our new CEO joins.
Having completed my second year as Chairman, I am standing for another year to complete a three-year term. Our largest shareholders, including our Control Shareholder Group, requested that I continue to serve as Chairman, particularly in this period in which we are selecting a new CEO. In July, Tom Griffith became a Senior Advisor and stepped down from his role as CEO. On behalf of our employees and the Board, I would like to thank Tom for his dedication to the Group. He remains a cherished friend of the firm and the team looks forward to maintaining a close relationship with Tom in the years to come.
Our activities to identify our new CEO are advancing well and we have considerable interest from candidates for this exciting role. We are seeking a leader who shares our investment philosophy and passion for supporting our teams to deliver outstanding results for our clients. The ideal candidate will bring an investor's mindset, a "can-do" and empowering management style, and the drive and commercial acumen to propel our firm to the next level.
Dividend
CLIG went public in 2006 at a price of 184.6p per share and your Company paid its first dividend of 8.6p per share in January 2007. It is gratifying to note that we have raised the dividend eight times to its current 33p per share. Since our listing, we have distributed back to shareholders a total of 520.1p per share in dividends (including proposed dividend of 22p) or 2.8 times our original 2006 share price.
We recommend a maintained final dividend of 22p per share, payable as of 6th November 2025 for shareholders of record on 26th September 2025. Subject to shareholder approval, our annual dividend, including the 11p per share of interim dividend paid in April 2025 will therefore total 33p per share (2024: 33p), providing an attractive yield for our shareholders. We are maintaining our dividend policy of targeting a 1.2 times dividend cover over a rolling five-year period. The current dividend cover is 1.21 times over five years.
We continue to believe that the existing policy will serve the group well; it has provided a useful structure and discipline for many years. Please refer to Figure 1 for CLIG's dividend history and our website at https://clig.com/dividend-cover/ for the dividend cover chart, which provides a template for determining cover based on a number of variables.
CLIG remains debt-free and had cash balances of $35.5 million as of 30th June 2025 (2024: $33.7 million) with the final dividend of 22p per share (c.$14.8 million) to be paid in November 2025. After the dividend is paid, we will continue to have over $20 million of cash on our balance sheet.
|
Figure 1. Dividend history |
|
|
|
|
|
||
|
|
Pence per share |
Dividend cover* |
Pence per share |
||||
|
FY |
Interim |
Final |
Total |
1yr |
Rolling 5yr |
Special dividend |
Total (inc. special dividend) |
|
2005-06 |
8.6 |
- |
8.6 |
1.48 |
n/a |
- |
8.6 |
|
2006-07 |
3.0 |
7.0 |
10.0 |
1.99 |
n/a |
- |
10.0 |
|
2007-08 |
6.0 |
13.5 |
19.5 |
1.51 |
n/a |
- |
19.5 |
|
2008-09 |
5.0 |
10.0 |
15.0 |
1.05 |
n/a |
- |
15.0 |
|
2009-10 |
7.0 |
15.0 |
22.0 |
1.28 |
1.46 |
- |
22.0 |
|
2010-11 |
8.0 |
16.0 |
24.0 |
1.44 |
1.45 |
- |
24.0 |
|
2011-12 |
8.0 |
16.0 |
24.0 |
1.40 |
1.34 |
- |
24.0 |
|
2012-13 |
8.0 |
16.0 |
24.0 |
1.04 |
1.24 |
- |
24.0 |
|
2013-14 |
8.0 |
16.0 |
24.0 |
0.87 |
1.24 |
- |
24.0 |
|
2014-15 |
8.0 |
16.0 |
24.0 |
1.10 |
1.17 |
- |
24.0 |
|
2015-16 |
8.0 |
16.0 |
24.0 |
0.96 |
1.07 |
- |
24.0 |
|
2016-17 |
8.0 |
17.0 |
25.0 |
1.46 |
1.09 |
- |
25.0 |
|
2017-18 |
9.0 |
18.0 |
27.0 |
1.47 |
1.17 |
- |
27.0 |
|
2018-19 |
9.0 |
18.0 |
27.0 |
1.30 |
1.26 |
13.5 |
40.5 |
|
2019-20 |
10.0 |
20.0 |
30.0 |
1.28 |
1.29 |
- |
30.0 |
|
2020-21 |
11.0 |
22.0 |
33.0 |
1.46 |
1.39 |
- |
33.0 |
|
2021-22 |
11.0 |
22.0 |
33.0 |
1.35 |
1.37 |
13.5 |
46.5 |
|
2022-23 |
11.0 |
22.0 |
33.0 |
1.11 |
1.30 |
- |
33.0 |
|
2023-24 |
11.0 |
22.0 |
33.0 |
1.01 |
1.24 |
- |
33.0 |
|
2024-25 |
11.0 |
22.0** |
33.0 |
1.12 |
1.21 |
- |
33.0 |
|
Total dividend |
|
|
|
|
|
|
520.1 |
|
*Excluding special dividends |
|
|
|
|
|
||
|
** Proposed dividend
|
|
|
|
|
|
||
Shareholder engagement
We continue to pursue a transparent dialogue with our shareholders. We plan to continue periodic programs with Investor Meet Company as we have found the platform and format to be an efficient and productive way to engage with shareholders and prospects.
I am pleased to report that relations with our Control Shareholder Group have been very constructive and helpful to the Group. We welcome the engagement with all shareholders and find we learn a great deal through these dialogues.
Share Price KPI
CLIG targets a total return (share price plus dividends) to compound annually in a range of 7.5% to 12.5% over a five-year period. For the five years ended 30th June 2025, the total return was 36.9%, or 6.5% annualised (source, Bloomberg). The environment for UK-listed asset managers has been negative for the past few years for a number of reasons and resulted in a de-rating of our shares while our dividends have been consistent, including periodic special dividends. We are more optimistic that the continued shift of investor interest outside of the United States will boost profitability and that investors will take note of our growth in FuM, profits as well as our increased focus on efficiency.
I also note that the 30th June 2025 share price of £3.46 per share (being the end-date for the reference price) marked a weak moment for CLIG shares. From 30th June to 31st August 2025, the shares have risen 13%, putting CLIG's share price return at over 9% p.a. for the five-plus years. CLIG's total return since listing in April 2006 is an annualised return of 11.3%.
Figure 2. CLIG's total return since listing in April 2006 v/s UK Small Cap indices (annualised)
|
|
Total return since 2006 |
|
|
|
CLIG LN |
11.3% |
|
|
|
SMX = FTSE Small Cap Index |
7.1% |
|
|
|
SMXX = FTSE Small Cap ex Inv Trusts |
6.0% |
|
|
|
ASX= FTSE ALL Share Index |
6.1% |
|
|
|
Source: Bloomberg |
|
||
Outlook
Interest in markets outside the United States returned in force in 2025 and seems set to continue as investors seek out relative value given large segments of the US market appear stretched. This should serve the Group extremely well as Emerging Markets ($3.7 billion) and International ($2.5 billion) remain our largest areas and make up over 57% of client assets. At KIM, the focus on fixed income products and balanced portfolios provides a useful balance to our more volatile equity strategies at CLIM.
Our teams truly have the "Right to Win" with highly talented and well-resourced teams, strong track records and dedicated operating and client-servicing teams. I am confident our investment teams are the best in CLIG's history. It is heartening to observe client wins and new flows into our strategies, but disappointing to see net outflows, particularly in the first half of the financial year. We are focused on client retention and more optimistic that our healthy pipeline will improve flows.
Annual General Meeting (AGM)
Our Annual General Meeting will take place on Monday, 27th October 2025 at 77 Gracechurch Street, London EC3V 0AS. This year, we will have a session preceding the AGM in which our Chief Investment Officers from CLIM and KIM and members of our Investment Team will present their views and outlook. It is sure to be an interesting update and a good opportunity for you to meet members of our investment team. You are warmly invited and we hope to meet you there.
Conclusion
Over the past year, your team successfully capitalised on market opportunities by staying true to its team-based approach and disciplined investment process. These efforts resulted in a period of strong performance for our clients. Success generates its own momentum and with the Board's commitment to empowering and supporting employees, we are laying the groundwork to propel CLIG to the next phase of success.
Teamwork, preparation and patience: our key focus is on performing for our clients. When our clients win, we all win.
I want to thank our colleagues at CLIG for their focus and dedication. We thank you, our shareholders, for your continued confidence in CLIG.
Sincerely yours,
Rian Dartnell
Chairman of the Board
15th September 2025
INVESTMENT AND BUSINESS REVIEW
Market overview
The past year represented another risk-on phase of market action. Equity markets globally continued to post stellar returns as many markets set new all-time highs. This represented a broadening out of performance as investors began to diversify away from their seemingly sole focus on the "Magnificent Seven" mega cap companies and the US information technology sector. Artificial intelligence continued to be a major market theme but the focus widened to include emerging markets beneficiaries as well as companies that will benefit from the massive amounts of energy and other natural resources that will be required to fully implement its use in the global economy.
The MSCI ACWI Index, a proxy for global markets, returned 16.7% on a total return basis in US dollar terms. European markets outperformed, rising 19.1%, led by the financial sector as interest rates fell while aerospace and defence companies in particular benefited from Germany's decision to loosen its fiscal constraints and commit to more military spending.
That is not to say that it was all smooth sailing. In the second half of 2024, equities were boosted by three rate cuts by the US Federal Reserve and euphoria over the election of Donald Trump for a second term as US President in what was assumed to be a relatively strong mandate for a business-friendly agenda. However, there were early signs of policy doubts by February which became panic stricken in April following President Trump's announcement of "Liberation Day" tariffs. Equities swooned before climbing the proverbial wall of worry for the rest of the first half as deals were cut and the initial headline tariff rates reduced to more palatable, albeit decades high, levels.
Fixed income markets were equally volatile with the US 10 Year Treasury yield oscillating between a high of 4.8% and a low of 3.6% as concerns about inflation levels, economic activity, Federal Reserve independence and US debt levels caused bouts of panic and gloom in fairly equal measure. In the end, the yield ended the period at 4.2%, only a shade lower than the level it entered the year at 4.4%. The Bloomberg Global Aggregate Index rose 8.9% in US dollar terms. Credit markets were also largely benign and supportive of equity performance as spreads tightened, reflected in a 13.0% gain in the Bloomberg Global High Yield Index.
The dollar weakened significantly over the year, in particular against the Euro, which gained more than 10%. This represented a sea change in sentiment which could underpin international diversification in the years ahead if the trend reversal continues. Gold (+42%) and Bitcoin (+74%) also benefited from dollar weakness indicating an investor preference for alternative, non-fiat currency assets.
Looking ahead, investor focus will likely remain on the Trump administration's policies and how these impact the global economy and the new world order. Dramatic and impactful changes are occurring with trade, resource and industrial policy at the forefront. Interest rate trends, trade negotiations, and geopolitical pressure points will all likely capture headlines in the year ahead. While risks will always persist, the broadening out of asset class performance indicates strong underpinnings for the recent bull market and should support further gains. However, the uncertain and ever-changing environment underlines the importance of active management in navigating an increasingly complex global landscape.
Investment Management Performance
It was broadly a favourable environment for CLIM's investment strategies from a performance perspective and all strategies ended the year ahead of their benchmarks as the table below demonstrates.
|
Figure 1: CLIM strategies |
Performance |
Benchmark |
Difference |
|
Emerging Markets |
+20.3% |
+14.8% |
+550bps |
|
International Equity |
+22.7% |
+17.7% |
+500bps |
|
Opportunistic Value |
+17.5% |
+12.8% |
+470bps |
|
Listed Private Equity |
+16.6% |
+8.0% |
+860bps |
*The above returns are presented as net of fees performance figures. The CLIM Global Emerging Markets Strategy is shown against the S&P Emerging Frontier Super Composite BMI Net TR Index, the CLIM Global Developed CEF International Equity Strategy is shown against the MSCI ACWI ex-US Net TR Index, the CLIM Opportunistic Value Strategy is shown against the Blended 50/50 MSCI AWCI/Bloomberg Global Aggregate Bond Index, and the CLIM Listed Private Equity Strategy is compared to an 8% annual hurdle rate. Data is as of 30th June 2025. Past performance is no guarantee of future results.
Firstly, our strategies have benefited from an improved environment for corporate governance. The last few years since 2022 have been characterised by a period of wide discounts among the universe of closed-end funds (CEFs) in which CLIM primarily sources investments. This has been particularly pronounced in the UK market where outflows from institutional and retail investors alike had resulted in depressed ratings. Such ratings allowed CLIM to accumulate positions at deeply valued price points and to work with Boards to take measures to address discounts. Among other factors, these engagements helped provide the catalyst for broad-based actions by Boards to narrow discounts on funds held in portfolios. Such event-driven actions included elevated levels of share buybacks, tender offers, mergers, restructurings and, in extreme cases, outright liquidations. CLIM's strategies benefited accordingly.
Secondly, heightened market volatility, particularly since the election of President Trump in late 2024, has provided additional opportunities to benefit from discount volatility, as well as market rotation, as countries, sectors, size and style factors came in and out of favour.
Lastly, outperformance by non-US equities over the last twelve months, after more than a decade of dominance by US stocks, brought new buyers to our largest areas of underlying focus, namely International Equity and Emerging Markets (EM).
The International Equity strategy benefited from increased demand, especially for European and UK large cap exposure as well as international mid and small cap exposure.
Conversely, in addition to the factors already highlighted, the EM strategy was meaningfully aided by its allocation to South Korean holding companies which outperformed following the Government's proposed Corporate Value Up program designed to address the "Korea Discount" by promoting capital efficiency, transparent governance and increased shareholder returns.
Likewise, KIM's main strategies performed well over the trailing twelve months.
|
Figure 2: KIM strategies |
Performance |
Benchmark |
Difference |
|
Growth Balanced |
+12.7% |
+12.2% |
+55bps |
|
Conservative Balanced |
+9.2% |
+10.1% |
-87bps |
|
Tax-Sensitive Fixed Income |
+3.2% |
+1.1% |
+207bps |
|
Taxable Fixed Income |
+7.4% |
+5.9% |
+150bps |
|
Cash Management |
+6.0% |
+5.7% |
+29bps |
|
Equities |
+16.8% |
+16.3% |
+46bps |
*The KIM Fixed Income Strategy is shown against the Bloomberg Government/Credit Bond Index, the KIM Tax-Sensitive Fixed Income Strategy is shown against the Bloomberg Municipal Bond Index, the KIM Growth Balanced Strategy is shown against the Blended 40% Bloomberg Government/Credit Bond Index/39% Russell 3000 Index/21% MSCI ACWI ex USA Net TR Index. The KIM Conservative Balanced Strategy is shown against the Blended 60% Bloomberg Government/Credit Bond Index/26% Russell 3000 Index/14% MSCI ACWI ex USA Net TR Index. The KIM Equities Strategy is shown against the Blended 65% Russell 3000 Index/35% MSCI ACWI ex USA Net TR Index. The KIM Cash Management Strategy is shown against the ICE BofA 1-3 Year US Treasury Index.
The primary contributor to outperformance over the past year has been a modest narrowing of discounts across fixed income and equity CEFs. Performance was further enhanced by substantial tender offers executed near net asset value and notable distribution increases among several major holdings.
Special Purpose Acquisition Companies, during their pre-acquisition phase, continue to serve as effective alternatives to T-bills and money market funds within our Cash Management and Fixed Income strategies. While short-term performance remains important, KIM's long-term track record is particularly strong, especially in fixed income. Over the past five years, the Taxable Fixed Income and Tax-Sensitive Fixed Income strategies have exceeded their respective benchmarks by 6.6% and 3.7% per annum.
As outlined above CLIM and KIM's strategies continue to perform strongly and demonstrate a "right to win" when competing for new business. Later in this report, we provide the peer group rankings for our strategies which demonstrate that all remain in either the first or second quartile for the most recent five-year periods. We expect this will put us in a strong position to grow as investor appetite for our areas of focus increase.
Figure 3. CLIG - FuM by line of business
|
CLIM |
30 Jun 2022 |
30 Jun 2023 |
30 Jun 2024 |
30 Jun 2025 |
||||||||
|
|
$m |
% of CLIM total |
% of CLIG total |
$m |
% of CLIM total |
% of CLIG total |
$m |
% of CLIM total |
% of CLIG total |
$m |
% of CLIM total |
% of CLIG total |
|
Emerging Markets |
3,703 |
64% |
40% |
3,580 |
61% |
38% |
3,394 |
53% |
33% |
3,674 |
54% |
34% |
|
International Equity |
1,812 |
32% |
20% |
1,983 |
34% |
21% |
2,394 |
38% |
23% |
2,486 |
36% |
23% |
|
Opportunistic Value |
193 |
3% |
2% |
244 |
4% |
3% |
251 |
4% |
3% |
309 |
5% |
3% |
|
Listed Private Equity* |
- |
0% |
0% |
- |
0% |
0% |
174 |
3% |
2% |
218 |
3% |
2% |
|
Other** |
83 |
1% |
1% |
97 |
1% |
1% |
104 |
2% |
1% |
150 |
2% |
1% |
|
CLIM total |
5,791 |
100% |
63% |
5,904 |
100% |
63% |
6,317 |
100% |
62% |
6,837 |
100% |
63% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KIM*** |
30 Jun 2022 |
30 Jun 2023 |
30 Jun 2024 |
30 Jun 2025 |
||||||||
|
|
$m |
% of KIM total |
% of CLIG total |
$m |
% of KIM total |
% of CLIG total |
$m |
% of KIM total |
% of CLIG total |
$m |
% of KIM total |
% of CLIG total |
|
Growth Balanced |
1,260 |
37% |
14% |
1,266 |
36% |
13% |
1,426 |
36% |
14% |
1,419 |
36% |
13% |
|
Conservative Balanced |
1,080 |
32% |
12% |
1,085 |
31% |
12% |
1,103 |
28% |
11% |
1,143 |
29% |
10% |
|
Tax-Sensitive Fixed Income |
389 |
11% |
4% |
405 |
11% |
4% |
693 |
18% |
6% |
528 |
13% |
5% |
|
Taxable Fixed Income |
578 |
17% |
6% |
586 |
17% |
6% |
501 |
13% |
5% |
707 |
18% |
7% |
|
Cash Management |
43 |
1% |
0% |
96 |
3% |
1% |
108 |
3% |
1% |
101 |
2% |
1% |
|
Equities |
83 |
2% |
1% |
82 |
2% |
1% |
93 |
2% |
1% |
79 |
2% |
1% |
|
KIM total |
3,433 |
100% |
37% |
3,520 |
100% |
37% |
3,924 |
100% |
38% |
3,977 |
100% |
37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLIG total |
9,224 |
|
100% |
9,424 |
|
100% |
10,241 |
|
100% |
10,814 |
|
100% |
*The Listed Private Equity strategy is to buy high quality private equity funds at discounts in CEF structures traded in listed markets. It was recategorised from Emerging Markets during the year, and the recategorisation of existing client assets is not reflected in the Net Flows column for either strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
A breakdown of FuM by strategy is as follows:
Figure 4: Flows ($ million)
|
|
Jun-24 |
Inflows |
Outflows |
Net Flows |
Market & investment performance |
Jun-25 |
|
CLIM |
|
|
|
|
|
|
|
Emerging Markets |
3,394 |
91 |
(463) |
(372) |
652 |
3,674 |
|
International Equity |
2,394 |
122 |
(509) |
(387) |
479 |
2,486 |
|
Opportunistic Value |
251 |
26 |
- |
26 |
32 |
309 |
|
Listed Private Equity* |
174 |
60 |
(50) |
10 |
34 |
218 |
|
Other** |
104 |
40 |
- |
40 |
6 |
150 |
|
CLIM total |
6,317 |
339 |
(1,022) |
(683) |
1,203 |
6,837 |
|
KIM*** |
|
|
|
|
|
|
|
Growth Balanced |
1,426 |
36 |
(174) |
(138) |
131 |
1,419 |
|
Conservative Balanced |
1,103 |
45 |
(148) |
(103) |
143 |
1,143 |
|
Tax-Sensitive Fixed Income |
693 |
87 |
(108) |
(21) |
(144) |
528 |
|
Taxable Fixed Income |
501 |
58 |
(50) |
8 |
198 |
707 |
|
Cash Management |
108 |
10 |
(24) |
(14) |
7 |
101 |
|
Equities |
93 |
3 |
(26) |
(23) |
9 |
79 |
|
KIM total |
3,924 |
239 |
(530) |
(291) |
344 |
3,977 |
|
CLIG total |
10,241 |
578 |
(1,552) |
(974) |
1,547 |
10,814 |
*The Listed Private Equity strategy is to buy high quality private equity funds at discounts in CEF structures traded in listed markets. It was recategorised from Emerging Markets during the year, and the recategorisation of existing client assets is not reflected in the Net Flows column for either strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
Funds under Management (FuM) were $10.8 billion as at 30th June 2025, an increase of 5.6% as compared to $10.2 billion as at 30th June 2024.
Net outflows were weighted more heavily to the first half of the financial year when macroeconomic uncertainty rattled markets. The second half withdrawals were characterised by some profit-taking after very strong performance by our investment teams. This was particularly true in the International Equity and EM strategies which saw net outflows of $387 million and $372 million respectively. The Growth and Conservative Balanced strategies (a combination of equity and fixed income) saw net outflows of $241 million over this period, due primarily to client retirement cash needs. Net investment outflows totalled $974 million across the Group during the financial year.
New mandates included $60 million in the Listed Private Equity (LPE) strategy and $70 million in the EM strategy, with another $46 million mandate confirmed for August 2025 funding. Net inflows of circa $84 million combined across the Opportunistic Value, LPE, alternatives and Taxable Fixed Income strategies were also recorded.
Persistent discount volatility and strong outperformance of the Group's strategies continue to be the focus of marketing efforts with allocators.
Figure 5: Net investment flows ($ million)
|
|
FY 2022 |
FY 2023 |
FY 2024 |
FY 2025 |
|
CLIM |
|
|
|
|
|
Emerging Markets |
(316) |
(206) |
(424) |
(372) |
|
International Equity |
453 |
(51) |
153 |
(387) |
|
Opportunistic Value |
1 |
35 |
(33) |
26 |
|
Listed Private Equity* |
- |
- |
- |
10 |
|
Other** |
74 |
(6) |
(12) |
40 |
|
CLIM total |
212 |
(228) |
(316) |
(683) |
|
KIM*** |
|
|
|
|
|
Growth Balanced |
(37) |
(129) |
(56) |
(138) |
|
Conservative Balanced |
(49) |
(53) |
(50) |
(103) |
|
Tax-Sensitive Fixed Income |
105 |
36 |
89 |
(21) |
|
Taxable Fixed Income |
(119) |
(3) |
5 |
8 |
|
Cash Management |
(4) |
31 |
8 |
(14) |
|
Equities |
(6) |
(11) |
(0) |
(23) |
|
KIM total |
(110) |
(129) |
(4) |
(291) |
|
CLIG total |
102 |
(357) |
(320) |
(974) |
*The Listed Private Equity strategy is to buy high quality private equity funds at discounts in CEF structures traded in listed markets. It was recategorised from Emerging Markets during the year, and the recategorisation of existing client assets is not reflected in the Net Flows column for either strategy.
**Includes Frontier and alternatives.
***KIM's FuM has been recategorised into underlying strategies.
FuM figures are rounded.
FINANCIAL REVIEW
The Group income statement is presented in line with UK-adopted International Accounting Standards on page 96 of the full report, but the financial information is reviewed by the management and the Board as shown in the table below. This makes it easier to understand the Group's operating results and shows the profits which is used to calculate Group's profit-share.
|
Consolidated income for financial years ended 30th June |
|
|
|
|
|
2025 |
2024 |
Change |
|
|
$'000 |
$'000 |
% |
|
Gross fee income |
73,044 |
69,453 |
5.2% |
|
Commissions |
(1,978) |
(1,811) |
9.2% |
|
Custody fees |
(1,296) |
(1,475) |
-12.1% |
|
Net fee income |
69,770 |
66,167 |
5.4% |
|
Net interest income |
1,095 |
1,079 |
1.5% |
|
Total net income |
70,865 |
67,246 |
5.4% |
|
Salary, benefits and other related costs |
(18,328) |
(18,767) |
-2.3% |
|
Other administrative expenses |
(8,659) |
(8,177) |
5.9% |
|
Depreciation and amortisation |
(961) |
(975) |
-1.4% |
|
Overheads before profit-share, EIP, share option charge and gain on investments |
(27,948) |
(27,919) |
0.1% |
|
Profit before profit-share, EIP, share options charge and gain on investments |
42,917 |
39,327 |
9.1% |
|
Profit-share |
(10,815) |
(10,617) |
1.9% |
|
EIP |
(1,297) |
(1,506) |
-13.9% |
|
Share option charge |
17 |
(35) |
-147.6% |
|
Gain on investments |
766 |
1,051 |
-27.2% |
|
Profit before tax and amortisation on intangibles |
31,588 |
28,220 |
11.9% |
|
Amortisation of intangibles |
(5,599) |
(5,599) |
0.0% |
|
Profit before tax |
25,989 |
22,621 |
14.9% |
|
Tax |
(6,307) |
(5,506) |
14.5% |
|
Profit after tax |
19,682 |
17,115 |
15.0% |
|
|
|
|
|
|
Alternative Performance Measures |
|
|
|
|
|
2025 |
2024 |
Change |
|
|
$'000 |
$'000 |
% |
|
Profit before tax |
25,989 |
22,621 |
14.9% |
|
Add back/(deduct): |
|
|
|
|
Gain on investments |
(766) |
(1,051) |
-27.2% |
|
Amortisation of intangibles |
5,599 |
5,599 |
0.0% |
|
Underlying profit before tax |
30,822 |
27,169 |
13.4% |
|
Tax |
(6,307) |
(5,506) |
14.5% |
|
Tax effect on adjustments |
(1,154) |
(1,083) |
6.6% |
|
Underlying profit after tax |
23,361 |
20,580 |
13.5% |
FuM
FuM as of 30th June 2025 increased by 5.6% ($0.6 billion) to $10.8 billion from US$10.2 billion at the end of the last financial year. The increase was a result of a combination of flows, market movements and performance. Refer to Figure 3 on page 12 of the full report - FuM by line of business. Average FuM for the year increased by 7.2% from $9.6 billion in FY 2024 to $10.3 billion in FY 2025.
Alternative Performance Measures
The Directors use the following Alternative Performance Measures (APMs) to evaluate the performance of the Group as a whole:
Earnings per share in pence - Earnings per share in US dollars as per the income statement is converted to sterling using the average exchange rate for the period. Refer to note 8 in the financial statements.
Underlying profit before tax - Profit before tax, adjusted for gain on investments and amortisation of intangibles. This provides a measure of the profitability of the Group for management's decision-making.
Underlying earnings per share in pence - CLIG shares are quoted on the London Stock Exchange and the dividend is declared in sterling. Underlying profit before tax, adjusted for tax as per income statement and tax effect of adjustments, are divided by the weighted average number of shares in issue as at the period end. Underlying earnings per share is converted to sterling using the average exchange rate for the period. Refer to note 8 in the financial statements.
Group income statement and statement of comprehensive income
Revenue
The Group's gross revenue comprises of management fees charged as a percentage of FuM. The Group's gross revenue increased by 5.2% YoY to $73.0 million (2024: $69.5 million). The increase in revenue is due to higher average FuM for the year, offset by general fee erosion due to changes in fee rates, product and investor mix.
Commissions payable of $2.0 million (2024: $1.8 million) relate to fees due to US-registered investment advisers and have increased slightly over the year as a result of an increase in gross revenue.
The Group's net fee income, after custody charges of $1.3 million (2024: $1.5 million), increased by 5.4% to $69.8 million (2024: $66.2 million). The Group's average net fee margin for FY 2025 was c.67bps as compared to c.69bps for FY 2024.
Net interest income is made up of interest earned on bank deposits, short-term investments in money market instruments and cash management products offset by interest paid on lease obligations and others. Net interest income increased by 1.5% as compared to the previous year. Refer to page 106 of the full report for our lease accounting policy.
Costs
Overheads before profit share, EIP, share option charge and gain on investments for FY 2025 totalling $27.9 million (2024: $27.9 million) were in line with last year. These costs would have been lower by c.1% had it not been for US dollar weakening against sterling by an average of 3% as c.29% of the Group's overheads are incurred in sterling.
The Group's cost/income ratio, which is arrived at by comparing overheads before profit share, EIP, share option charge and gain on investments with net fee income, reduced by 2.1% to 40.1% in FY 2025 as compared to 42.2% in FY 2024. This was a result of continued cost discipline and maintaining overhead costs in line with FY 2024, along with an increase in net revenue for the year.
The largest component of overheads continues to be employee-related costs. Salary, benefits and other related costs reduced by 2.3% over the last year to $18.3 million (2024: $18.8 million), which was due to both a reduction and a change in the headcount mix, which was partly offset by inflationary salary and associated cost increases with effect from 1st July 2024 and a subsequent increase in employer national insurance contributions in the UK, effective from 1st April 2025. The average number of employees for the year was 113 as compared to 118 for the prior year. The number of employees as at 30th June 2025 was 110 (2024: 118).
The net savings in employee-related costs during the year were offset by an increase in other administrative expenses. Other administrative expenses for the current year were 5.9% higher at $8.7 million as compared to $8.2 million for the last year. The increase primarily relates to higher legal and professional fees (including costs related to CLIG's qualification to trade on the OTCQX ® Best Market), additional marketing resources, an increase in travel costs to meet clients and prospects, and the impact of US dollar weakening over costs denominated in sterling.
Profit before profit-share, EIP, share options charge and gain on investments increased 9.1% YoY to $42.9 million as compared to $39.3 million for FY 2024. Despite this increase, total variable profit-share for FY 2025 only increased marginally to $10.8 million as compared with $10.6 million in FY 2024.
The Group's Employee Incentive Plan (EIP) charge for FY 2025 also fell by $0.2 million to $1.3 million as compared to the FY 2024 charge of $1.5 million.
Overall, despite sterling strengthening against the US dollar by an average of 3%, generic inflationary increases on the cost base, higher legal and professional fees, marketing and travel costs, the Group's total administrative expenses were marginally lower at $45.6 million for the year.
Gain on investments
Investment gains of $0.8 million (2024: gain of $1.1 million) relate to the realised and unrealised gains/(losses) on the Group's seed investments and other investments in Special Purpose Acquisition Companies (SPACs).
Amortisation of intangibles
Intangible assets relating to direct customer relationships, distribution channels and KIM's trade name recognised on the merger with KIM are being amortised over seven to fifteen years (refer to note 1.7 of the financial statements) and have resulted in an amortisation charge of $5.6 million for the year (2024: $5.6 million). Deferred tax liability on these intangibles as of 30th June 2025 amounted to $6.5 million (2024: $7.9 million) based on the relevant tax rate, which will unwind over the useful economic life of the associated assets. Goodwill amounting to $90.1 million was also initially recognised on the completion of the merger. Refer to note 9 for more details.
Taxation
Profit before tax of $26.0 million (2024: $22.6 million), after a corporation tax charge of $6.3 million (2024: $5.5 million), with an effective rate of 24% (2024: 24%), resulted in a 15% increase in profit after tax of $19.7 million (2024 $17.1 million), which is all attributable to the equity shareholders of the Company.
Underlying profits
Underlying profit before tax for the year at $30.8 million was 13.4% higher than the $27.2 million achieved in FY 2024. Underlying profit after tax for the year was 13.5% higher at $23.4 million as compared to $20.6 million for FY 2024, which was mainly due to the higher net fee income whilst maintaining our operating costs in line with FY 2024.
Group statement of financial position
The Group's financial position continues to be strong and liquid, with cash resources of $35.5 million as at 30th June 2025, compared with $33.7 million as at 30th June 2024.
The Group had invested $2.5 million in seeding the Global Equity CEF in December 2021 and $2.5 million in SPACs in March 2022. As at the end of June 2025, these investments were valued at $6.5 million (2024: $5.7 million). Total realised gains recognised on its investments and its SPACs products were $0.2 million (2024: gain of $0.9 million including the redemption of its REIT investments) and unrealised gains of $0.6 million (2024: gain of $0.2 million) were taken to the income statement.
The Global Equity CEF fund is assessed to be under the Group's control and is thus consolidated using accounts drawn up as of 30th June 2025. There were no third-party investors, collectively known as the non-controlling interest (NCI) in these funds as of 30th June 2025 (2024: nil).
The Group's right-of-use assets (net of depreciation) amounted to $4.4 million as of 30th June 2025 as compared with $5.1 million as of 30th June 2024.
The Employee Benefit Trust (EBT) purchased 453,500 shares (2024: 318,000 shares) at a cost of $2.1 million (2024: $1.3 million) in preparation for the annual EIP awards due at the end of October 2025.
The EIP has had a consistently high level of participation each year since inception (>60% of Group employees), with the first tranche of awards vesting in October 2018. During the year 36.8% (2024: 35.8%) of the shares vesting were sold to help cover the employees' resulting tax liabilities, leading to a healthy 63.2% (2024: 64.2%) share retention within the Group.
In addition, Directors and employees exercised 59,500 (2024: 47,400) options over shares held by the EBT, raising $0.3 million (2024: $0.1 million) which was used to pay down part of the loan to the EBT.
Dividend
Dividend policy
This policy was introduced in 2014 and is assessed for appropriateness on an annual basis. No changes have been proposed during the current financial year. It was designed to incorporate the required flexibility to deal with the potential volatility of CLIG's income. This is going to be applied with flexibility, with approximately one-third payable as an interim dividend and two-thirds as final dividend.
Details are as follows:
• Dividend cover ratio of c.1.2 times (1.2x) of the underlying earnings on a rolling five-year basis.
• It will be assessed for appropriateness annually.
• This Policy specifically takes into account the implicit volatility in CLIG's earnings as a result of its significant present exposure to emerging markets.
• While the cover is targeted as 1.2x of the underlying earnings, this will continue to be applied flexibly and the annual dividend will approximate to this cover on a rolling five-year average.
• The Board will take into account both the CLIG budget for the next year and market outlook when determining the current year's dividend.
Dividends paid during the year totalled $20.9 million (2024: $19.9 million). The total dividend of 33p per share comprised of the 22p per share final dividend for FY 2024 and the 11p per share interim dividend for the current year (2024: 22p per share final for FY 2023 and 11p per share interim dividend).
We have provided an illustrative framework on our website at https://clig.com/ dividend-cover/ to enable interested parties to calculate our post-tax profits based upon some key assumptions. The dividend cover chart shows the quarterly estimated cost of a maintained dividend against actual post-tax profits for last year, the current year and the assumed post-tax profit for next financial year based upon assumptions included in the chart.
The Group is well capitalised, and its regulated entities complied at all times with their local regulatory capital requirements. In the UK, the Group's principal operating subsidiary, CLIM, is regulated by the FCA. As required under the Capital Requirements Directive, the underlying risk management controls and capital position are disclosed on CLIM's website www.citlon.com.
Currency exposure
While Group's revenue and the bulk of its expenses are now aligned in US dollars, c.29% of Group's overheads are incurred in sterling and to a lesser degree Singapore dollars, that are subject to currency rate fluctuations against US dollars.
The Group's currency exposure also relates to its subsidiaries' non-US dollar assets and liabilities, which are mostly in sterling. The exchange rate differences arising on their translation into US dollars for reporting purposes each month is recognised in the income statement.
Viability statement
In accordance with the provisions of the UK Corporate Governance Code, the Directors have assessed the viability of the Group over a three-year period, considering the Group's current position and prospects, Internal Capital Adequacy and Risk Assessment (ICARA) and the potential impact of principal risks and how they are managed as detailed in the risk management report on pages 41 to 42 of the full report.
Period of assessment
While the Directors have no reason to believe that the Group will not be viable over a longer period, given the uncertainties still associated with the global economic and political factors and their potential impact on financial markets, any longer time horizon assessments are subject to more uncertainty due to external factors.
Considering the recommendations of the Financial Reporting Council in their 2021 thematic review publication, the Board has therefore determined that a three-year period to 30th June 2028 constitutes an appropriate and prudent timeframe for its viability assessment. This three-year view is also more aligned to the Group's detailed stress testing.
Assessment of viability
As part of its viability statement, the Board has conducted a robust assessment of the principal risks facing the Group, including those that would threaten its business model, future performance, solvency, or liquidity. This assessment includes continuous monitoring of both internal and external environments to identify new and emerging risks, which in turn are analysed to determine how they can best be mitigated and managed.
The primary risk is the potential for loss of FuM as a result of poor investment performance, reputational damage, client redemptions, breach of mandate guidelines or market volatility. The Directors review the principal risks regularly and consider the options available to the Group to mitigate these risks so as to ensure the ongoing viability of the Group is sustained.
The ICARA is reviewed by the Board and incorporates stress testing based on loss of revenue on the Group's financial position over a three-year period. The Group has performed additional stress tests using several different scenario levels, over a three-year period which are significantly more severe than our acceptable risk appetite, which include:
•a significant fall in FuM;
•a significant fall in net fee margin; and
•combined stress (significant falls both in FuM and net fee margin).
Having reviewed the results of the stress tests, the Directors have concluded that the Group would have sufficient resources in the stressed scenarios and that the Group's ongoing viability would be sustained. The stress scenario assumptions would be reassessed, if necessary, over the longer term. An example of a mitigating action in such scenarios would be a reduction in costs along with a reduction in dividend.
Based on the results of this analysis, the Board confirms it has a reasonable expectation that the Company and the Group will be able to continue in operation and meet their liabilities as they fall due over the next three years.
On that basis, the Directors also considered it appropriate to prepare the financial statements on the going concern basis as set out on page 81 of the full report.
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2025
|
|
Note |
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Revenue Gross fee income |
2 |
73,044 |
69,453 |
|
Commissions payable |
|
(1,978) |
(1,811) |
|
Custody fees payable |
|
(1,296) |
(1,475) |
|
Net fee income |
|
69,770 |
66,167 |
|
Administrative expenses Employee costs |
|
30,423 |
30,925 |
|
Other administrative expenses |
|
8,659 |
8,177 |
|
Depreciation and amortisation |
|
6,560 |
6,574 |
|
|
|
(45,642) |
(45,676) |
|
Operating profit |
3 |
24,128 |
20,491 |
|
Finance income |
4 |
1,490 |
1,460 |
|
Finance expense |
5 |
(395) |
(381) |
|
Gain on investments |
6 |
766 |
1,051 |
|
Profit before taxation |
|
25,989 |
22,621 |
|
Income tax expense |
7 |
(6,307) |
(5,506) |
|
Profit for the period |
|
19,682 |
17,115 |
|
Profit attributable to: |
|
|
|
|
Equity shareholders of the parent |
|
19,682 |
17,115 |
|
Basic earnings per share (cents) |
8 |
40.1 |
35.1 |
|
Diluted earnings per share (cents) |
8 |
39.4 |
34.4 |
CONSOLIDATED AND COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30TH JUNE 2025
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Profit for the period |
19,682 |
17,115 |
|
Other comprehensive income: Items that may be subsequently reclassified to profit or loss if specific conditions are met |
|
|
|
Foreign currency translation differences |
- |
(1) |
|
Total comprehensive income for the period |
19,682 |
17,114 |
|
Attributable to: Equity shareholders of the parent |
19,682 |
17,114 |
CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION
30TH JUNE 2025
|
|
|
Group |
Company |
|||||
|
|
|
|
30th June 2025 |
30th June 2024 |
30th June 2025 |
30th June 2024 |
||
|
|
|
Note |
$'000 |
$'000 |
$'000 |
$'000 |
||
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
Property and equipment |
|
917 |
1,128 |
157 |
227 |
|
|
|
|
Right-of-use assets |
|
4,418 |
5,076 |
699 |
925 |
|
|
|
|
Intangible assets |
9 |
117,296 |
122,853 |
62 |
20 |
|
|
|
|
Other financial assets |
|
6,506 |
5,750 |
134,203 |
134,283 |
|
|
|
|
Deferred tax asset |
|
1,737 |
1,879 |
287 |
313 |
|
|
|
|
|
|
130,874 |
136,686 |
135,408 |
135,768 |
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
8,855 |
8,380 |
6,574 |
3,654 |
|
|
|
|
Current tax receivable |
|
662 |
167 |
3,360 |
2,426 |
|
|
|
|
Cash and cash equivalents |
|
35,492 |
33,738 |
16,550 |
20,381 |
|
|
|
|
|
|
45,009 |
42,285 |
26,484 |
26,461 |
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
(10,308) |
(10,432) |
(4,461) |
(5,519) |
|
|
|
|
Lease liabilities |
|
(585) |
(526) |
(318) |
(284) |
|
|
|
|
Creditors, amounts falling due within one year |
|
(10,893) |
(10,958) |
(4,779) |
(5,803) |
|
|
|
|
Net current assets |
|
34,116 |
31,327 |
21,705 |
20,658 |
|
|
|
|
Total assets less current liabilities |
|
164,990 |
168,013 |
157,113 |
156,426 |
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Lease liabilities |
|
(4,705) |
(5,207) |
(725) |
(964) |
|
|
|
|
Deferred tax liability |
|
(7,821) |
(9,162) |
(216) |
(256) |
|
|
|
|
Net assets |
|
152,464 |
153,644 |
156,172 |
155,206 |
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
|
|
|
Share capital |
10 |
644 |
644 |
644 |
644 |
|
|
|
|
Share premium account |
|
2,866 |
2,866 |
2,866 |
2,866 |
|
|
|
|
Merger relief reserve |
10 |
128,984 |
128,984 |
128,984 |
128,984 |
|
|
|
|
Investment in own shares |
|
(8,795) |
(9,227) |
(8,795) |
(9,227) |
|
|
|
|
Share option reserve |
|
128 |
187 |
128 |
187 |
|
|
|
|
EIP share reserve |
|
1,683 |
2,046 |
1,683 |
2,046 |
|
|
|
|
Foreign currency translation reserve |
|
(1,011) |
(1,011) |
466 |
466 |
|
|
|
|
Capital redemption reserve |
|
33 |
33 |
33 |
33 |
|
|
|
|
Retained earnings |
|
27,932 |
29,122 |
30,163 |
29,207 |
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
Equity shareholders of the parent |
|
152,464 |
153,644 |
156,172 |
155,206 |
|
|
|
|
Total equity |
|
152,464 |
153,644 |
156,172 |
155,206 |
|
|
As permitted by section 408 of the Companies Act 2006, the income statement of the Parent Company is not presented as part of these financial statements. The Parent Company's profit for the financial period amounted to $21,858k (2024: $20,445k).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
30TH JUNE 2025
|
|
Share capital $'000 |
Share premium account $'000 |
Merger relief reserve $'000 |
Investment in own shares $'000 |
Share option reserve $'000 |
EIP Share reserve $'000 |
Foreign currency translation reserve $'000 |
Capital redemption reserve $'000 |
Retained earnings $'000 |
Total attributable to share- holders $'000 |
|
As at 1st July 2023 |
644 |
2,866 |
128,984 |
(10,301) |
170 |
2,200 |
(1,010) |
33 |
31,882 |
155,468 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
- |
17,115 |
17,115 |
|
Other comprehensive income |
- |
- |
- |
- |
- |
- |
(1) |
- |
- |
(1) |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
(1) |
- |
17,115 |
17,114 |
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
Share option exercise |
- |
- |
- |
154 |
(9) |
- |
- |
- |
9 |
154 |
|
Purchase of own shares |
- |
- |
- |
(1,315) |
- |
- |
- |
- |
- |
(1,315) |
|
Share-based payment |
- |
- |
- |
- |
35 |
1,039 |
- |
- |
- |
1,074 |
|
EIP vesting/forfeiture |
- |
- |
- |
2,235 |
- |
(1,193) |
- |
- |
- |
1,042 |
|
Deferred tax on share options |
- |
- |
- |
- |
(9) |
- |
- |
- |
(22) |
(31) |
|
Current tax on share options |
- |
- |
- |
- |
- |
- |
- |
- |
27 |
27 |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
- |
- |
(19,889) |
(19,889) |
|
Total transactions with owners |
- |
- |
- |
1,074 |
17 |
(154) |
- |
- |
(19,875) |
(18,938) |
|
As at 30th June 2024 |
644 |
2,866 |
128,984 |
(9,227) |
187 |
2,046 |
(1,011) |
33 |
29,122 |
153,644 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
- |
19,682 |
19,682 |
|
Other comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
19,682 |
19,682 |
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
Share option exercise |
- |
- |
- |
278 |
(42) |
- |
- |
- |
42 |
278 |
|
Purchase of own shares |
- |
- |
- |
(2,110) |
- |
- |
- |
- |
- |
(2,110) |
|
Share-based payment |
- |
- |
- |
- |
(17) |
888 |
- |
- |
- |
871 |
|
EIP vesting/forfeiture |
- |
- |
- |
2,264 |
- |
(1,251) |
- |
- |
- |
1,013 |
|
Deferred tax on share options |
- |
- |
- |
- |
- |
- |
- |
- |
(4) |
(4) |
|
Current tax on share options |
- |
- |
- |
- |
- |
- |
- |
- |
8 |
8 |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
- |
- |
(20,918) |
(20,918) |
|
Total transactions with owners |
- |
- |
- |
432 |
(59) |
(363) |
- |
- |
(20,872) |
(20,862) |
|
As at 30th June 2025 |
644 |
2,866 |
128,984 |
(8,795) |
128 |
1,683 |
(1,011) |
33 |
27,932 |
152,464 |
COMPANY STATEMENT OF CHANGES IN EQUITY
30TH JUNE 2025
|
|
Share capital $'000 |
Share premium account $'000 |
Merger reserve $'000 |
Investment in own shares $'000 |
Share option reserve $'000 |
EIP share reserve $'000 |
Foreign currency translation reserve $'000 |
Capital redemption reserve $'000 |
Retained earnings $'000 |
Total attributable to shareholders $'000 |
|
As at 1 July 2023 |
644 |
2,866 |
128,984 |
(10,301) |
161 |
2,200 |
468 |
33 |
28,658 |
153,713 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
- |
20,445 |
20,445 |
|
Other comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
20,445 |
20,445 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
Share option exercise |
- |
- |
- |
154 |
(9) |
- |
- |
- |
(1) |
144 |
|
Purchase of own shares |
- |
- |
- |
(1,315) |
- |
- |
- |
- |
- |
(1,315) |
|
Share-based payment |
- |
- |
- |
- |
35 |
1,039 |
- |
- |
- |
1,074 |
|
EIP vesting/forfeiture |
- |
- |
- |
2,235 |
- |
(1,193) |
- |
- |
- |
1,042 |
|
Deferred tax on share options |
- |
- |
- |
- |
- |
- |
- |
- |
(6) |
(6) |
|
Foreign exchange translation |
- |
- |
- |
- |
- |
- |
(2) |
- |
- |
(2) |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
- |
- |
(19,889) |
(19,889) |
|
Total transactions with owners |
- |
- |
- |
1,074 |
26 |
(154) |
(2) |
- |
(19,896) |
(18,952) |
|
As at 30th June 2024 |
644 |
2,866 |
128,984 |
(9,227) |
187 |
2,046 |
466 |
33 |
29,207 |
155,206 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
- |
21,858 |
21,858 |
|
Other comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Total comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
21,858 |
21,858 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
Share option exercise |
- |
- |
- |
278 |
(42) |
- |
- |
- |
16 |
252 |
|
Purchase of own shares |
- |
- |
- |
(2,110) |
- |
- |
- |
- |
- |
(2,110) |
|
Share-based payment |
- |
- |
- |
- |
(17) |
888 |
- |
- |
- |
871 |
|
EIP vesting/forfeiture |
- |
- |
- |
2,264 |
- |
(1,251) |
- |
- |
- |
1,013 |
|
Dividends paid |
- |
- |
- |
- |
- |
- |
- |
- |
(20,918) |
(20,918) |
|
Total transactions with owners |
- |
- |
- |
432 |
(59) |
(363) |
- |
- |
(20,902) |
(20,892) |
|
As at 30th June 2025 |
644 |
2,866 |
128,984 |
(8,795) |
128 |
1,683 |
466 |
33 |
30,163 |
156,172 |
CONSOLIDATED AND COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2025
|
|
|
Group |
Company |
||
|
|
Note |
30th June 2025 $'000 |
30th June 2024 $'000 |
30th June 2025 $'000 |
30th June 2024 $'000 |
|
Cash flow from operating activities |
|
|
|
|
|
|
Profit before taxation |
|
25,989 |
22,621 |
1,405 |
1,675 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation of property and equipment |
|
285 |
293 |
89 |
97 |
|
Depreciation of right-of-use assets |
|
658 |
672 |
226 |
227 |
|
Amortisation of intangible assets |
|
5,617 |
5,609 |
18 |
10 |
|
Share-based payment charge |
|
(17) |
35 |
(4) |
4 |
|
EIP-related charge |
|
1,298 |
1,438 |
432 |
581 |
|
Gain on investments |
6 |
(766) |
(1,051) |
(12) |
(323) |
|
Interest receivable |
4 |
(1,490) |
(1,460) |
(750) |
(898) |
|
Interest payable |
5 |
8 |
24 |
8 |
24 |
|
Interest payable on leased assets |
5 |
387 |
357 |
50 |
17 |
|
Translation adjustments |
|
73 |
29 |
(164) |
149 |
|
Cash generated from operations before changes |
|
|
|
|
|
|
in working capital |
|
32,042 |
28,567 |
1,298 |
1,563 |
|
(Increase)/decrease in trade and other receivables |
|
(1,010) |
(302) |
(779) |
880 |
|
Increase/(decrease) in trade and other payables |
|
807 |
365 |
910 |
3,038 |
|
Cash generated from operations |
|
31,839 |
28,630 |
1,429 |
5,481 |
|
Interest received |
4 |
1,490 |
1,460 |
750 |
898 |
|
Interest payable |
5 |
(8) |
(24) |
(8) |
(24) |
|
Interest paid on leased assets |
5 |
(387) |
(357) |
(50) |
(17) |
|
Taxation paid |
|
(7,781) |
(8,122) |
(3,555) |
(3,857) |
|
Net cash generated from/(used in) operating activities |
|
25,153 |
21,587 |
(1,434) |
2,481 |
|
Cash flow from investing activities |
|
|
|
|
|
|
Dividends received from subsidiaries |
|
- |
- |
20,800 |
19,150 |
|
Purchase of property and equipment and intangibles |
|
(134) |
(500) |
(79) |
(44) |
|
Purchase of non-current financial assets |
|
(2,789) |
(4,594) |
- |
- |
|
Proceeds from sale of current financial assets |
|
2,791 |
9,997 |
- |
5,203 |
|
Net cash generated from/(used in) investing activities |
|
(132) |
4,903 |
20,721 |
24,309 |
|
Cash flow from financing activities |
|
|
|
|
|
|
Ordinary dividends paid |
11 |
(20,918) |
(19,889) |
(20,918) |
(19,889) |
|
Purchase of own shares by employee share option trust |
|
(2,110) |
(1,315) |
(2,110) |
(1,315) |
|
Proceeds from sale of own shares by employee |
|
|
|
|
|
|
benefit trust |
|
295 |
154 |
295 |
154 |
|
Payment of lease liabilities |
|
(539) |
(231) |
(295) |
(48) |
|
Net cash used in financing activities |
|
(23,272) |
(21,281) |
(23,028) |
(21,098) |
|
Net increase/(decrease) in cash and cash equivalents |
|
1,749 |
5,209 |
(3,741) |
5,692 |
|
Cash and cash equivalents at start of period |
|
33,738 |
28,569 |
20,381 |
14,779 |
|
Effect of exchange rate changes |
|
5 |
(40) |
(90) |
(90) |
|
Cash and cash equivalents at end of period |
|
35,492 |
33,738 |
16,550 |
20,381 |
NOTES TO THE FINANCIAL STATEMENTS
The contents of this preliminary announcement have been extracted from the Company's Annual Report, which is currently in print and will be distributed within the week. The information shown for the years ended 30th June 2025 and 30th June 2024 do not constitute statutory accounts and has been extracted from the full accounts for the years ended 30th June 2025 and 30th June 2024. The reports of the auditors on those accounts were unqualified and did not contain adverse statements under sections 498(2) or (3) of the Companies Act 2006. The accounts for the year ended 30th June 2024 have been filed with the Registrar of Companies. The accounts for the year ended 30th June 2025 will be delivered to the Registrar of Companies in due course.
1. SIGNIFICANT ACCOUNTING POLICIES
City of London Investment Group PLC (the Company) is a public limited company which listed on the London Stock Exchange on 29th October 2010 and is domiciled and incorporated in the United Kingdom under the Companies Act 2006.
1.1 Basis of preparation
The financial statements have been prepared in accordance with UK-adopted International Accounting Standards.
The Group financial statements have been prepared under the historical cost convention, except for certain financial assets held by the Group that are reported at fair value. The Group and Company financial statements have been prepared on a going concern basis.
The principal accounting policies adopted are set out below and have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
1.2 New or amended accounting standards and interpretations
The Group has adopted all the new or amended accounting standards and interpretations issued by the International Accounting Standards Board (IASB) that are mandatory for the current reporting period. Any new or amended accounting standards that are not mandatory have not been early adopted.
There are no new or amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's consolidated financial statements that would be expected to have a material impact on the Group's consolidated financial statements when they become effective.
1.3 Accounting estimates and assumptions
The preparation of these financial statements in conformity with UK-adopted International Accounting Standards requires management to make estimates and judgments that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Whilst estimates are based on management's best knowledge and judgement using information and financial data available to them, the actual outcome may differ from those estimates.
The most significant areas of the financial statements that are subject to the use of estimates and judgments are noted below:
Impairment of Goodwill
The recognition of goodwill in a business combination and subsequent impairment assessments are based on significant accounting estimates. Note 9 details our estimates and assumptions in relation to the impairment assessment of goodwill.
1.4 Investment in subsidiaries
Investments in subsidiaries in the Company only accounts are stated at cost less, where appropriate, provision for impairment.
1.5 Basis of consolidation
The consolidated financial statements are based on the financial statements of the Company and all of its subsidiary undertakings. The Group's subsidiaries are those entities which it directly or indirectly controls. Control over an entity is evidenced by the Group's ability to exercise its power in order to affect any variable returns that the Group is exposed to through its involvement with the entity. The consolidated financial statements also incorporate the results of the business combination using the acquisition method. The acquiree's identifiable net assets are initially recognised at their fair values at the acquisition date. The results of the acquired business are included in the consolidated statement of comprehensive income from the date on which control is obtained.
When assessing whether to consolidate an entity, the Group evaluates a range of control factors as defined under IFRS 10 Consolidated financial statements, namely:
•the purpose and design of the entity;
•the relevant activities and how these are determined;
•whether the Group's rights result in the ability to direct the relevant activities;
•whether the Group has exposure or rights to variable returns; and
•whether the Group has the ability to use its power to affect the amount of its returns.
Subsidiaries are consolidated from the date on which control is transferred to the Group and are deconsolidated from the date that control ceases.
The Group's subsidiary undertakings as at 30th June 2025 are detailed below:
City of London Investment Group PLC holds a controlling interest in the following:
|
|
|
Controlling |
Country of |
|
Subsidiary undertakings |
Activity |
interest |
incorporation |
|
City of London Investment Management Company Limited |
Management of funds |
100% |
UK |
|
City of London US Investments Limited Karpus Management Inc. (aka Karpus Investment Management) |
Holding company Management of funds |
100% 100% |
UK USA |
|
Global Equity CEF Fund |
Delaware Statutory Trust Fund |
100% |
USA |
City of London Investment Management Company Limited holds 100% of the ordinary shares in the following:
|
City of London Investment Management (Singapore) PTE Ltd |
Management of funds |
|
Singapore |
||||
|
City of London Latin America Limited |
Dormant company |
|
UK |
||||
|
|
|
|
|
||||
|
City of London US Investments Limited holds 100% of the ordinary shares in the following: |
|
|
|
||||
|
City of London US Services Limited |
Service company |
UK |
|
||||
The registered addresses of the subsidiary companies are as follows:
|
City of London Investment Management Company Limited City of London US Investments Limited City of London US Services Limited City of London Latin America Limited |
77 Gracechurch Street, London EC3V 0AS, UK |
|
City of London Investment Management Company (Singapore) PTE Ltd |
20 Collyer Quay, #10-04, Singapore 049319 |
|
Karpus Management Inc. |
183 Sully's Trail, Pittsford, New York 14534, USA |
|
Global Equity CEF Fund |
4005 Kennett Pike, Suite 250, Greenville, DE 19807, USA |
1.6 Property and equipment
For all property and equipment depreciation is calculated to write off their cost to their estimated residual values by equal annual instalments over the period of their estimated useful lives, which are considered to be:
Short leasehold property improvements-over the remaining life of the lease
Furniture and equipment - four to ten years
Computer and telephone equipment - four to ten years
1.7 Intangible assets
Intangible assets acquired separately are initially recognised at cost. Intangible assets acquired through a business combination other than goodwill, are initially measured at fair value at the date of the acquisition.
(i) Goodwill
Goodwill arises through a business combination. Goodwill represents the excess of the purchase consideration paid over the fair value of the identifiable assets, liabilities and contingent liabilities of the business at the date of the acquisition. Goodwill is measured at cost less accumulated impairment losses. Goodwill on acquisition is allocated to a cash generating unit (CGU) that is expected to benefit from the acquisition, for the purpose of impairment testing. The CGU to which goodwill is allocated represents the lowest level at which goodwill is monitored for internal management purposes. A CGU is identified as a group of assets generating cash inflows which are independent from cash inflows from other Group cash generating assets and are not larger than the Group's operating segments.
(ii) Direct customer relationships and distribution channels
The fair values of direct customer relationships and distribution channels acquired in the business combination have been measured using a multi-period excess earnings method. These are amortised on a straight line basis over the period of their expected benefit, being a finite life of ten years for direct customer relationships and a finite life of seven years for distribution channels.
(iii) Trade name
The fair value of the trade name acquired in the business combination has been measured using a relief from royalty method. This is amortised on a straight line basis over the period of its expected benefit, being a finite life of fifteen years.
(iv) Software licences
Software licences are capitalised at cost and amortised on a straight line basis over the useful life of the asset. Costs are capitalised on the basis of the costs incurred to acquire and bring into use the specific software. Costs also include directly attributable overheads. The estimated useful life over which the software is depreciated is between four to ten years. Software integral to a related item of hardware equipment is accounted for as property and equipment. Costs associated with maintaining computer software programs are expensed to the income statement as incurred.
1.8 Impairment of goodwill and other assets
Goodwill arising on acquisition is not subject to annual amortisation and is tested annually for impairment, or more frequently if changes in circumstances indicate a possible impairment. The Group annually reviews the carrying value of its CGU to ensure that those assets have not suffered from any impairment loss. The review compares the recoverable amount of the CGU to which goodwill is allocated against its carrying amount. Where the recoverable amount is higher than the carrying amount, no impairment is required. The recoverable amount is defined as the higher of (a) fair value less costs of disposal or (b) value in use, which is based on the present value of future cash flows expected to derive from the CGU.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).
Other assets are tested for impairment whenever management identifies any indicators of impairment.
Any impairment loss is recognised immediately through the income statement.
1.9 Business Combinations
The Group accounts for business combinations using the acquisition method. A business combination is determined where in a transaction, the asset acquired and the liabilities assumed constitute a business.
The consideration transferred on the date of the transaction is measured at fair value as are the identifiable assets acquired and liabilities assumed. Intangible assets are recognised separately from goodwill at the acquisition date only when they are identifiable.
1.10 Financial instruments
Financial instruments are only recognised in the financial statements and measured at fair value when the Group becomes party to the contractual provisions of the instrument.
Under IFRS 9 Financial Instruments, financial assets are classified as either:
•amortised at cost;
•at fair value through the profit or loss; or
•at fair value through other comprehensive income.
Financial liabilities must be classified at fair value through profit or loss or at amortised cost.
The Group's investments in securities are classified as financial assets or liabilities at fair value through profit or loss. Such investments are initially recognised at fair value, and are subsequently re-measured at fair value, with any movement recognised in the income statement. The fair value of the Group's investments is determined as follows:
•Shares traded in active markets - priced using the quoted closing price
•Unlisted seed capital investments in funds - priced using net asset value at the reporting date
The consolidated Group assesses and would recognise a loss allowance for expected credit losses on financial assets which are measured at amortised cost. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a twelve-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next twelve months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Under the expected credit loss model, impairment losses are recorded if there is an expectation of credit losses, even in the absence of a default event. This model is applicable to assets amortised at cost or at fair value through other comprehensive income. The assets on the Group's balance sheet to which the expected loss applies to are fees receivable. At the end of each reporting period, the Group assesses whether the credit risk of these trade receivables has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
1.11 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and on-demand deposits with an original maturity of three months or less from inception, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
1.12 Trade payables
Trade payables are measured at initial recognition at fair value and subsequently measured at amortised cost.
1.13 Current and deferred taxation
The Group provides for current tax according to the tax regulations in each jurisdiction in which it operates, using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. However, deferred tax is not accounted for if it arises from goodwill or the initial recognition (other than in a business combination) of other assets or liabilities in a transaction that affects neither the accounting nor the taxable profit or loss.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. The tax rates used are those that have been enacted, or substantively enacted, by the end of the reporting period. Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly as part of other comprehensive income, in which case the deferred tax is also dealt with as part of other comprehensive income. For share-based payments, where the estimated future tax deduction exceeds the amount of the related cumulative remuneration expense, the excess deferred tax is recognised directly in equity.
1.14 Share-based payments
The Company operates an Employee Incentive Plan (EIP) which is open to all employees in the Group. Awards are made to participating employees over shares under the EIP where they have duly waived an element of their annual profit-share before the required waiver date, in general before the start of the relevant financial year.
The awards are made up of two elements: Deferred Shares and Bonus Shares. The Deferred Shares represent the waived profit-share and the Bonus Shares represent the additional award made by the Company as a reward for participating in the EIP. Awards will vest (i.e. no longer be forfeitable) over a three-year period with one-third vesting each year for all employees, other than Executive Directors of CLIG. Awards granted from October 2021 onwards for the Executive Directors of CLIG will vest (i.e. no longer be forfeitable) over a five-year period with one-fifth vesting each year, and from October 2024 onwards over a five-year period with one-third vesting each year for the third, fourth and fifth anniversaries following grant. Should an employee leave within the vesting period, the unvested portion of the waived profit-share element is settled in cash as per the EIP rules.
The full cost of the Deferred Shares is recognised in the year to which the profit-share relates. The value of the Bonus Shares is expensed on a straight line basis over the period from the date the employees elect to participate to the date that the awards vest. This cost is estimated during the financial year and at the point when the actual award is made, the share-based payment charge is re-calculated and any difference is taken to the profit or loss.
The Company operates an Employee Share Option Plan. The fair value of the employee services received in exchange for share options is recognised as an expense. The fair value has been calculated using the Black-Scholes pricing model, and is being expensed on a straight line basis over the vesting period, based on the Company's estimate of the number of shares that will actually vest. At the end of the three-year period when the actual number of shares vesting is known, the share-based payment charge is re-calculated and any difference is taken to the profit or loss.
1.15 Revenue recognition
Revenue is recognised within the financial statements based on the services that are provided in accordance with current investment management agreements (IMAs). The fees are charged as a percentage of Funds under Management. The performance obligations encompassed within these agreements are based on daily/monthly asset management of funds. Payment terms are monthly/quarterly in advance or in arrears. The Group has an enforceable right to the payment of these fees for services provided, in accordance with the underlying IMAs.
For each contract, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of services promised.
1.16 Commissions payable
A portion of the Group's revenue is subject to commissions payable under third party marketing agreements. Commissions payable are recognised in the same period as the revenue to which they relate.
1.17 Foreign currency translation
The functional and presentational currency of the company and all its subsidiaries is US dollars.
Transactions in currencies other than the relevant Group entity's functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Gains and losses arising on retranslation are included in the profit or loss for the year.
1.18 Leases
The total outstanding lease cost, discounted at the Group's weighted average incremental borrowing rate to its present value, is shown as a lease liability in the statement of financial position. The payment of the lease charge is allocated between the lease liability and an interest charge in the income statement.
On recognition of the lease liability, the associated asset is shown as a right-of-use asset. This is further adjusted for any lease payments made prior to adoption and any future restoration costs as implicit within the lease contract. The resulting total value of the right-of-use asset is depreciated on a straight line basis over the term of the lease period.
The Group re-measures the lease liability whenever:
•there is a change in the lease term;
•there is a change in the lease payments; and
•a lease contract is modified and the lease modification is not accounted for as a separate lease.
Where there is a change in the lease term or lease payments, the lease liability is re-measured by discounting the revised lease payments at the current or revised discount rate depending on the nature of the event. Where the lease liability is re-measured, a corresponding adjustment is made to the right-of-use assets.
Where extension/termination options exists within a lease, the Group would assess at the lease commencement date as to whether it is reasonably certain that it will exercise these options. The Group would reassess these options if there was a significant event or significant change in circumstances within its control, which would warrant the Group with reasonable certainty to exercise these options.
Payments in relation to short-term leases, those that are less than twelve months in duration continue to be expensed to the income statement on a straight line basis. At the end of the year, all of the Group's leases were recognised as right-of-use assets.
1.19 Pensions
The Group operates defined contribution pension schemes covering the majority of its employees. The costs of the pension schemes are charged to the income statement as they are incurred. Any amounts unpaid at the end of the period are reflected in other creditors.
2 SEGMENTAL ANALYSIS
The Directors consider that the Group has only one reportable segment, namely asset management, and hence only analysis by geographical location is given.
|
|
USA $'000 |
Canada $'000 |
UK $'000 |
Europe (ex UK) $'000 |
Other $'000 |
Total $'000 |
|
Year to 30th June 2025 |
|
|
|
|
|
|
|
Gross fee income |
70,567 |
1,529 |
- |
818 |
130 |
73,044 |
|
Non-current assets: |
|
|
|
|
|
|
|
Property and equipment |
759 |
- |
147 |
- |
11 |
917 |
|
Right-of-use assets |
3,656 |
- |
699 |
- |
63 |
4,418 |
|
Intangible assets |
117,234 |
- |
62 |
- |
- |
117,296 |
|
Year to 30th June 2024 |
|
|
|
|
|
|
|
Gross fee income |
66,885 |
1,465 |
- |
1,001 |
102 |
69,453 |
|
Non-current assets: |
|
|
|
|
|
|
|
Property and equipment |
901 |
- |
205 |
- |
22 |
1,128 |
|
Right-of-use assets |
4,030 |
- |
925 |
- |
121 |
5,076 |
|
Intangible assets |
122,833 |
- |
20 |
- |
- |
122,853 |
|
3. |
OPERATING PROFIT |
|
|
|
||
|
|
The operating profit is arrived at after charging: |
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
||
|
|
Depreciation of property and equipment |
285 |
293 |
|
||
|
|
Depreciation of right-of-use assets
|
658 |
672 |
|
||
|
|
Amortisation of intangible assets
|
5,617 |
5,609 |
|
||
|
|
Auditor's remuneration: |
|
|
|
||
|
|
- Statutory audit of the parent and consolidated financial statements |
158 |
149 |
|
||
|
|
- Statutory audit of subsidiaries of the Company |
147 |
134 |
|
||
|
|
- Audit related assurance services |
50 |
62 |
|
||
|
|
Short-term lease expense |
20 |
21 |
|
||
|
|
Legal and Professional fees |
2,563 |
1,766 |
|
||
|
|
Consultancy and software fees |
1,959 |
1,780 |
|
||
|
|
Market information services |
1,312 |
1,511 |
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
4. FINANCE INCOME |
|
|
|||
|
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|||
|
|
Interest on cash and cash equivalents |
1,490 |
1,460 |
|||
|
5. FINANCE EXPENSE |
|
|
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Interest payable on lease liabilities |
387 |
357 |
|
Interest payable other |
8 |
24 |
|
|
395 |
381 |
|
6. GAIN ON INVESTMENTS |
|
|
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Unrealised gain on investments |
614 |
180 |
|
Realised gain on investments |
152 |
871 |
|
|
766 |
1,051 |
|
7. |
TAX CHARGE ON PROFIT ON ORDINARY ACTIVITIES |
|
|
|
|
(a) Analysis of tax charge on ordinary activities: |
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
|
Current tax: |
|
|
|
|
UK corporation tax at 25% (2024: 25%) based on the profit for the period |
3,992 |
5,417 |
|
|
Double taxation relief |
(585) |
(887) |
|
|
Adjustments in respect of prior years |
162 |
(7) |
|
|
UK tax total |
3,569 |
4,523 |
|
|
Foreign tax |
4,145 |
2,453 |
|
|
Adjustments in respect of prior years |
(207) |
(123) |
|
|
Foreign tax total |
3,938 |
2,330 |
|
|
Total current tax charge |
7,507 |
6,853 |
|
|
Deferred tax: |
|
|
|
|
UK - origination and reversal of temporary differences |
129 |
68 |
|
|
Foreign - origination and reversal of temporary differences |
(1,329) |
(1,415) |
|
|
Total deferred tax credit |
(1,200) |
(1,347) |
|
|
Total tax charge in income statement |
6,307 |
5,506 |
(b) Factors affecting tax charge for the current period:
The tax charge on profit for the year is different to that resulting from applying the standard rate of corporation tax in the UK - 25% (prior year - 25%). The differences are explained below:
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Profit on ordinary activities before tax |
25,989 |
22,621 |
|
Tax on profit from ordinary activities at the standard rate |
(6,497) |
(5,655) |
|
Effects of: |
|
|
|
Unrelieved foreign tax at rates different to those of the UK |
(20) |
(166) |
|
Income ineligible for tax |
(62) |
75 |
|
Capital allowances less than depreciation |
207 |
98 |
|
Prior period adjustments |
47 |
129 |
|
Other |
18 |
13 |
|
Total tax charge in income statement |
(6,307) |
(5,506) |
8. EARNINGS PER SHARE
The calculation of earnings per share is based on the profit for the period attributable to the equity shareholders of the parent divided by the weighted average number of ordinary shares in issue for the period ended 30th June 2025.
As set out in the Directors' report on page 82 of the full report, the Employee Benefit Trust held 1,750,055 (2024: 1,829,637) ordinary shares in the Company as at 30th June 2025. The Trustees of the Trust have waived all rights to dividends associated with these shares. In accordance with IAS 33 Earnings per share, the ordinary shares held by the Employee Benefit Trust have been excluded from the calculation of the weighted average number of ordinary shares in issue.
The calculation of diluted earnings per share is based on the profit for the period attributable to the equity shareholders of the parent divided by the diluted weighted average number of ordinary shares in issue for the period ended 30th June 2025.
Reported earnings per share
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Profit attributable to the equity shareholders of the parent for basic earnings |
19,682 |
17,115 |
|
|
|
|
|
|
Number of shares |
Number of shares |
|
Issued ordinary shares as at 1st July |
50,679,095 |
50,679,095 |
|
Effect of own shares held by EBT |
(1,539,816) |
(1,875,340) |
|
Weighted average shares in issue |
49,139,279 |
48,803,755 |
|
Effect of movements in share options and EIP awards |
759,201 |
978,997 |
|
Diluted weighted average shares in issue |
49,898,480 |
49,782,752 |
|
Basic earnings per share (cents) |
40.1 |
35.1 |
|
Diluted earnings per share (cents) |
39.4 |
34.4 |
|
Basic earnings per share (pence) |
30.9 |
27.8 |
|
Diluted earnings per share (pence) |
30.4 |
27.3 |
Underlying earnings per share*
Underlying earnings per share is based on the underlying profit after tax*, where profit after tax is adjusted for gain/loss on investments, amortisation of acquired intangibles and their relating tax impact.
Underlying profit for calculating underlying earnings per share
|
|
Year to 30th June 2025 $'000 |
Year to 30th June 2024 $'000 |
|
Profit before tax |
25,989 |
22,621 |
|
Add back/(deduct): |
|
|
|
- (Gain)/loss on investments |
(766) |
(1,051) |
|
- Amortisation on acquired intangibles |
5,599 |
5,599 |
|
Underlying profit before tax |
30,822 |
27,169 |
|
Tax expense as per the consolidated income statement |
(6,307) |
(5,506) |
|
Tax effect of fair value adjustments |
190 |
261 |
|
Unwinding of deferred tax liability |
(1,344) |
(1,344) |
|
Underlying profit after tax for the calculation of underlying earnings per share |
23,361 |
20,580 |
|
Underlying earnings per share (cents) |
47.5 |
42.2 |
|
Underlying diluted earnings per share (cents) |
46.8 |
41.3 |
|
Underlying earnings per share (pence) |
36.7 |
33.5 |
|
Underlying diluted earnings per share (pence) |
36.1 |
32.8 |
* This is an Alternative Performance Measure (APM). Please refer to the Financial Review for more details on APM
9. INTANGIBLE ASSETS
|
Group |
Goodwill |
Direct customer relationships |
Distribution channels |
Trade name |
Long term software |
Total |
30th June 2024 |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Cost |
|
|
|
|
|
|
|
|
At start of period |
90,072 |
46,052 |
6,301 |
1,405 |
914 |
144,744 |
144,744 |
|
Additions |
- |
- |
- |
- |
60 |
60 |
- |
|
At close of period |
90,072 |
46,052 |
6,301 |
1,405 |
974 |
144,804 |
144,744 |
|
Amortisation charge |
|
|
|
|
|
|
|
|
At start of period |
- |
17,270 |
3,376 |
351 |
894 |
21,891 |
16,282 |
|
Charge for the period |
- |
4,605 |
900 |
94 |
18 |
5,617 |
5,609 |
|
At close of period |
- |
21,875 |
4,276 |
445 |
912 |
27,508 |
21,891 |
|
Net book value: At close of period |
90,072 |
24,177 |
2,025 |
960 |
62 |
117,296 |
122,853 |
|
Company |
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
At start of period |
|
|
|
|
112 |
112 |
112 |
|
Additions |
|
|
|
|
60 |
60 |
- |
|
At close of period |
|
|
|
|
172 |
172 |
112 |
|
Amortisation charge |
|
|
|
|
|
|
|
|
At start of period |
|
|
|
|
92 |
92 |
82 |
|
Charge for the period |
|
|
|
|
18 |
18 |
10 |
|
At close of period |
|
|
|
|
110 |
110 |
92 |
|
Net book value |
|
|
|
|
62 |
62 |
20 |
Goodwill, direct customer relationships, distribution channels and trade name acquired through business combination relate to the merger with KIM on 1st October 2020.
Impairment
Goodwill acquired through the business combination is in relation to the merger with KIM and relates to the acquired workforce and future expected growth of the cash generating unit (CGU).
The Group has carried out an annual review of the carrying value of the CGU to which the goodwill is allocated to see if it has suffered any impairment. Management also considered whether there were any indicators of impairment of other intangible assets. The services of an independent valuation consultant, Kroll Advisory Limited (Kroll) was retained during the year to perform an assessment of impairment as of 30th April 2025. The Group assessed the recoverable amount of the CGU by both its value in use (VIU) and its fair value (Fair Value) less cost of disposal (FVLCOD). Both methodologies gave a value which exceeded the carrying value of the CGU. Although, the recoverable amount calculated using VIU was higher than FVLCOD, to be consistent with the prior period, the Group adopted FVLCOD as its measurement against the carrying value of its CGU. The Fair Value is based on the Market Comparable Method (or "Comparable Company Analysis") that indicates the value of KIM by comparing it to publicly traded companies in a similar line of business. An analysis of the trading multiples of comparable companies yields insight into investor perceptions and, therefore, the value of the subject company i.e., the value of KIM.
FuM and EBITDA multiples were selected and applied to the historical and forecasted metrics of KIM. The multiples were evaluated and selected based on the relative growth potential, operating margins and risk profile of KIM vis-a-vis the publicly traded comparable companies and also to reflect the degree of control and lack of marketability of the interest held in KIM. As such, FuM multiple of 3.5% and EBITDA multiples of 10.0x and 9.0x (calendar year 2024 and 2025 respectively) were selected based on the Comparable Company Analysis prior to concluding the Fair Value of KIM on a weighted average basis. This Fair Value is classified within Level 3 of IFRS 13 fair value hierarchy.
The Group's forecasts are based on its most recent and current trading activity and on current financial budgets for twelve months that are approved by the Board. The key assumptions underlying the budgets are based on the most recent trading activity with built in organic growth, revenue and cost margins. The annual growth rate used for extrapolating revenue forecasts was 5.6% and for direct costs was 3.0% based on the Group's expectation of future growth of the business.
The goodwill impairment assessment date of 30th April 2025 was different to the current reporting date. The performance of the CGU is reviewed for the period between the assessment date and the reporting date to determine whether any changes in circumstances or impairment indicators have occurred since the assessment date. Following our review, it was determined that there were no changes in circumstances or impairment indicators that would require the CGU to be impaired at the reporting date.
The recoverable amount of the CGU exceeded the carrying amount of the CGU at 30th April 2025 by $24,667k (2024: $9,496k).
Sensitivity analysis was applied to the selected multiples to measure the impact on the headroom in existence under the current impairment review. The following table shows the extent to which each of the selected multiples will be required to change in isolation for the recoverable amount of this CGU to be equal to its carrying amount. This highlights that further adverse movements in the selected multiples would be required before an impairment would be recognised. The below sensitivities make no allowance for mitigating actions that management would take if such market conditions persisted.
|
|
2025 |
|
|
|
From |
To |
|
EV / December LYM FuM - (USD Mn) |
3.5% |
0.9% |
|
EV / CY 2025 FuM - (USD Mn) |
3.5% |
1.0% |
|
EV / CY 2024 EBITDA Post Bonus |
10.0x |
3.5x |
|
EV / CY 2025 EBITDA Post Bonus |
9.0x |
2.7x |
The Directors and management have considered and assessed possible changes to other key assumptions and have not identified any instances that could cause the carrying amount of the CGU to exceed its recoverable amount.
Based on the recoverable amount, using the fair value model, no impairment was required at 30th June 2025.
10. SHARE CAPITAL AND MERGER RELIEF RESERVE
|
|
Share capital |
Merger relief reserve |
|
Group and Company |
$'000 |
$'000 |
|
At start and end of period 50,679,095 ordinary shares of 1p each |
644 |
128,984 |
|
11. DIVIDEND
|
30th June 2025 |
30th June 2024 |
|
|
$'000 |
$'000
|
|
Dividends paid: |
|
|
|
Interim dividend of 11p per share (2024: 11p) |
7,052 |
6,840 |
|
30th June 2024 of 22p per share (2023: 22p) |
13,866 |
13,049 |
|
|
20,918 |
19,889 |
A final dividend of 22p per share (gross amount payable $15,310k; net amount payable $14,782k*) has been proposed, payable on 6th November 2025, subject to shareholder approval, to shareholders who are on the register of members on 26th September 2025.
*Difference between gross and net amounts is due to shares held at EBT that do not receive a dividend.
12. FINANCIAL INSTRUMENTS
The Group's financial assets include cash and cash equivalents, investments and other receivables. Its financial liabilities include accruals, lease liabilities and other payables. The fair value of the Group's financial assets and liabilities is materially the same as the book value.
(i) Financial instruments by category
The tables below show the Group and Company's financial assets and liabilities as classified under IFRS 9 Financial Instruments:
|
Group |
|
Financial assets |
Assets at fair value through |
|
|
30th June 2025 |
|
at amortised cost |
profit or loss |
Total |
|
Assets as per statement of financial position |
|
$'000 |
$'000 |
$'000 |
|
Other non-current financial assets |
|
- |
6,506 |
6,506 |
|
Trade and other receivables |
|
7,139 |
- |
7,139 |
|
Cash and cash equivalents |
|
35,492 |
_ |
35,492 |
|
Total |
|
42,631 |
6,506 |
49,137 |
|
|
|
|
|
|
|
|
|
|
Liabilities at |
|
|
|
|
|
fair value |
|
|
|
|
Financial liabilities |
through |
|
|
|
|
at amortised cost |
profit or loss |
Total |
|
Liabilities as per statement of financial position |
|
$'000 |
$'000 |
$'000 |
|
Trade and other payables |
|
10,107 |
- |
10,107 |
|
Current lease liabilities |
|
585 |
- |
585 |
|
Non-current lease liabilities |
|
4,705 |
- |
4,705 |
|
Total |
|
15,397 |
- |
15,397 |
|
|
|
|
Assets at fair |
|
|
30th June 2024 |
|
Financial assets at amortised cost |
value through profit or loss |
Total |
|
Assets as per statement of financial position |
|
$'000 |
$'000 |
$'000 |
|
Other non-current financial assets |
|
- |
5,750 |
5,750 |
|
Trade and other receivables |
|
6,687 |
- |
6,687 |
|
Cash and cash equivalents |
|
33,738 |
_ |
33,738 |
|
Total |
|
40,425 |
5,750 |
46,175 |
|
|
|
|
|
|
|
|
|
|
Liabilities at |
|
|
|
|
|
fair value |
|
|
|
|
Financial liabilities |
through |
|
|
Liabilities as per statement of financial position |
|
at amortised cost |
profit or loss |
Total |
|
|
|
$'000 |
$'000 |
$'000 |
|
Trade and other payables |
|
10,236 |
- |
10,236 |
|
Current lease liabilities |
|
526 |
- |
526 |
|
Non-current lease liabilities |
|
5,207 |
- |
5,207 |
|
Total |
|
15,969 |
- |
15,969 |
|
Company |
Investment in |
Financial assets |
Assets at fair value through |
|
|
30th June 2025 |
subsidiaries |
at amortised cost |
profit or loss |
Total |
|
Assets as per statement of financial position |
$'000 |
$'000 |
$'000 |
$'000 |
|
Other non-current financial assets |
131,643 |
2,500 |
60 |
134,203 |
|
Trade and other receivables |
- |
6,171 |
- |
6,171 |
|
Cash and cash equivalents |
- |
16,550 |
- |
16,550 |
|
Total |
131,643 |
25,221 |
60 |
156,924 |
|
|
|
|
Liabilities at |
|
|
|
|
|
fair value |
|
|
|
|
Financial liabilities |
through |
|
|
|
|
at amortised cost |
profit or loss |
Total |
|
Liabilities as per statement of financial position |
|
$'000 |
$'000 |
$'000 |
|
Trade and other payables |
|
4,281 |
- |
4,281 |
|
Current lease liabilities |
|
318 |
- |
318 |
|
Non-current lease liabilities |
|
725 |
- |
725 |
|
Total |
|
5,324 |
- |
5,324 |
|
|
Investment in |
Financial assets |
Assets at fair value through |
|
|
30th June 2024 |
subsidiaries |
at amortised cost |
profit or loss |
Total |
|
Assets as per statement of financial position |
$'000 |
$'000 |
$'000 |
$'000 |
|
Other non-current financial assets |
131,733 |
2,500 |
50 |
134,283 |
|
Trade and other receivables |
- |
3,250 |
- |
3,250 |
|
Cash and cash equivalents |
- |
20,381 |
- |
20,381 |
|
Total |
131,733 |
26,131 |
50 |
157,914 |
|
|
|
|
Liabilities at |
|
|
|
|
|
fair value |
|
|
|
|
Financial liabilities |
through |
|
|
|
|
at amortised cost |
profit or loss |
Total |
|
Liabilities as per statement of financial position |
|
$'000 |
$'000 |
$'000 |
|
Trade and other payables |
|
5,339 |
- |
5,339 |
|
Current lease liabilities |
|
284 |
- |
284 |
|
Non-current lease liabilities |
|
964 |
- |
964 |
|
Total |
|
6,587 |
- |
6,587 |
(ii) Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable.
|
• Level 1: fair value derived from quoted prices (unadjusted) in active markets for identical assets and liabilities. |
|
• Level 2: fair value derived from inputs other than quoted prices included within level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). |
|
• Level 3: fair value derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data. |
The fair values of the financial instruments are determined as follows:
|
- |
Investments for hedging purposes are valued using the quoted bid price and shown under level 1. |
|
- |
Investments in own funds are determined with reference to the net asset value (NAV) of the fund. Where the NAV is a quoted price the fair value is shown under level 1, where the NAV is not a quoted price the fair value is shown under level 2. |
|
- |
Forward currency trades are valued using the forward exchange bid rates and are shown under level 2. |
|
- |
Unlisted equity securities are valued using the net assets of the underlying companies and are shown under level 3. |
The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement.
|
Group |
Level 1 |
Level 2 |
Level 3 |
Total |
|
30th June 2025 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
Investment in other non-current financial assets |
6,318 |
188 |
- |
6,506 |
|
Total |
6,318 |
188 |
- |
6,506 |
|
30th June 2024 |
Level 1 $'000 |
Level 2 $'000 |
Level 3 $'000 |
Total $'000 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
Investment in other non-current financial assets |
5,700 |
50 |
- |
5,750 |
|
Total |
5,700 |
50 |
- |
5,750 |
|
Company |
|
|
|
|
|
30th June 2025 |
Level 1 $'000 |
Level 2 $'000 |
Level 3 $'000 |
Total $'000 |
|
Investment in other non-current financial assets |
- |
60 |
- |
60 |
|
Total |
- |
60 |
- |
60 |
|
30th June 2024 |
Level 1 $'000 |
Level 2 $'000 |
Level 3 $'000 |
Total $'000 |
|
Investment in other non-current financial assets |
- |
50 |
- |
50 |
|
Total |
- |
50 |
- |
50 |
There were no financial liabilities at fair value at any of the reported periods.
Level 3
Level 3 assets as at 30th June 2025 are nil (2024: nil).
Where there is an impairment in the investment in own funds, the loss is reported in the income statement. No impairment was recognised during the period or the preceding year.
(iii) Foreign currency risk
Almost all of the Group's revenues, and a significant part of its expenses, are denominated in US dollars. However, expenses related to UK and Singapore offices are denominated in currencies other than US dollars. As a result, expenses and balances arise which give rise to currency exposure.
As at 30th June 2025, significant net asset balances included within the Group's net asset balances were £3,183k (2024: net liabilities of £413k) denominated in sterling, C$543k (2024: C$520k) in Canadian dollars and SGD1,680k (2024: SGD1,676k) in Singapore dollars.
Had the US dollar strengthened or weakened against these currencies as at 30th June 2025 by 10%, with all other variables held constant, the Group's net assets and profit before tax would have increased or decreased (respectively) by $609k (2024: $109k). 10% represents management's assessment of the reasonably possible change in foreign exchange rate.
(iv) Market risk
Changes in market prices, such as foreign exchange rates and equity prices will affect the Group's income and the value of its investments.
Where the Group holds investments in its own funds categorised as unlisted investments, the market price risk is managed through diversification of the portfolio. A 10% increase or decrease in the price level of the funds' relevant benchmarks, with all other variables held constant, would result in an increase or decrease of approximately nil (2024: nil) in the value of the investments and profit before tax.
The Group's Global Equity CEF funds has been consolidated as controlled entities, and therefore the securities held by the fund are reported in the consolidated statement of financial position under investments. At 30th June 2025, all those securities were listed on a recognised exchange. A 10% increase or decrease in the price level of the securities would result in a gain or loss respectively of approximately $0.3 million (2024: $0.3 million) to the Group.
The Group is also exposed to market risk indirectly via its Funds under Management, from which its fee income is derived. To hedge against potential losses in fee income, the Group may look to invest in securities or derivatives that should increase in value in the event of a fall in the markets. The purchase and sale of these securities are subject to limits established by the Board and are monitored on a regular basis. The investment management and settlement functions are totally segregated.
The profit from hedging recognised in the Group income statement for the period is nil (2024: £nil).
(v) Credit risk
The majority of debtors relate to management fees due from funds and segregated account holders. As such, the Group is able to assess the credit risk of these debtors as minimal. For other debtors a credit evaluation is undertaken on a case by case basis.
The Group has zero experience of bad or overdue debts.
The majority of cash and cash equivalents held by the Group are with leading UK and US banks. The credit risk is managed by carrying out regular reviews of each institution's credit rating and of their published financial position. Given their high credit ratings, management does not expect any counterparty to fail to meet its obligations.
(vi) Liquidity risk
The Group's trade and other sundry payables are immaterial and thus the liquidity risk is minimal. In addition, the Group's investments in funds that it manages can be liquidated immediately if required.
(vii) Interest rate risk
The Group has no borrowings, and therefore has no exposure to interest rate risk other than that which attaches to its interest earning cash and cash equivalents balances. The Group's strategy is to maximise the amount of cash which is maintained in interest bearing accounts and short-term treasuries/money market funds, and to ensure that those accounts attract a competitive interest rate. At 30th June 2025, the Group held $35,492k (2024: $33,738k) in cash balances, of which $34,940k (2024: $33,245k) was held in bank accounts, short-term deposits and short-term treasuries/money market funds, which attract variable interest rates. The effect of a 100 basis points increase/decrease in interest rates on the Group's net assets would not be material.
(viii) Capital risk management
The Group manages its capital to ensure that all entities within the Group are able to operate as going concerns and exceed any minimum externally imposed capital requirements. The capital of the Group and Company consists of equity attributable to the equity holders of the Parent Company, comprising issued share capital, share premium, retained earnings and other reserves as disclosed in the statement of changes in equity.
The Group's operating subsidiary company in the UK, City of London Investment Management Company Ltd is subject to the minimum capital requirements of the Financial Conduct Authority (FCA) in the UK. This subsidiary held surplus capital over its requirements throughout the period.
The Group is required to undertake an Internal Capital and Risk Assessment, which is approved by the Board. The objective of this is to ensure that the Group has adequate capital to enable it to manage risks which are not adequately covered under the Pillar 1 requirements. This process includes stress testing for the effects of major risks, such as a significant market downturn, and includes an assessment of the Group's ability to mitigate the risks.
APPENDIX
1. Principal risks
The Board has conducted a robust assessment of the principal risks facing the Group, including those that would threaten its business model, future performance, solvency or liquidity. This assessment includes continuous monitoring of both internal and external environments to identify new and emerging risks, which in turn are analysed to determine how they can best be mitigated and managed. The primary risk is the potential for loss of FuM as a result of poor investment performance, client redemptions, reputational damage, a breach of mandate guidelines or market volatility. The Group seeks to attract and retain clients through consistent outperformance supplemented by first class client servicing.
In addition to the above key business risk, the Group has outlined what it considers to be its other principal risks, including the controls in place and any mitigating factors.
|
|
Principal risk |
Controls / mitigation |
|
Key person risk |
Risk that key employees across the business leave/significant reliance on a small number of key employees. |
Team approach, internal procedures and knowledge sharing. Remuneration packages reviewed as needed to ensure talent/key employees are retained. In addition, the Nomination Committee regularly reviews talent and succession plans for both Board and key senior management positions |
|
Technology, IT / cybersecurity and business continuity risks |
Risk that technology systems and support are inadequate or fail to adapt to changing requirements; systems are vulnerable to third party penetration or that the business cannot continue in a disaster. |
IT monitors and controls risks related to cyber threats, and for the strength and security of the Group's network and infrastructure. The IT department has controls in place to mitigate risk, which include, but are not limited to access management, patch management, application updates, physical environment protection, and data back-up and recovery. The Group has policies in place for Disaster Recovery/Business Continuity and Incident Response Planning. |
|
Material error / mandate breach |
Risk of a material error or investment mandate breach occurring. |
Mandate guidelines are coded (where possible) into the order management system by the Investment Management/Compliance teams of each operating subsidiary. |
|
Regulatory and legal risk |
Risk of legal or regulatory action resulting in fines, penalties, censure or legal action arising from failure to identify or meet regulatory and legislative requirements in the jurisdictions in which the Group and its operating subsidiaries operate, including those as a result of being a listed entity on the London Stock Exchange. Risk that new regulation or changes to the interpretation of existing regulation affects the Group's operations and cost base. |
Compliance teams of each subsidiary monitor relevant regulatory developments - both new regulations as well as changes to existing regulations that impact their respective subsidiary. Implementation is done as practicably as possible taking into account the size and nature of the business. The finance team with the support of CLIG's Company Secretary keeps abreast of any changes to Listing Rules, accounting and other standards that may have an impact on the Group. Finance and both the compliance teams receive regular updates from a variety of external sources including regulators, law firms, consultancies etc. |
2. Related party transactions
In the ordinary course of business, the Company and its subsidiary undertakings carry out transactions with related parties as defined under IAS 24 Related Party Disclosures. Material transactions are set out below.
(i) Transactions with key management personnel
Key management personnel are defined as Directors (both Executive and Non-Executive) of City of London Investment Group PLC.
(a) Details of compensation paid to the Directors as well as their shareholdings in the Group and dividends paid are provided in the Remuneration report on pages 64, 72 and 73 and in note 4 of the full report.
(b) One of the Group's subsidiaries manages funds for some of its key management personnel, for which it receives a fee. All transactions between key management and their close family members and the Group's subsidiary are on terms that are available to all employees of that Company. The amount received in fees during the year was $12k (2024: $7k). There were no fees outstanding as at the year-end.
(c) close member of a key management's personnel family provided professional services to the Group. The amount paid during the period for these services were $0.4k (2024: $43k). The amount outstanding at the year-end was nil (2024: $11k).
(ii) Person with significant influence
One of the Group's subsidiaries manages funds for a person with significant influence based on his shareholding in the Group. The amount of fees received by the Group during the period was $92k (2024: $81k).
(iii) Summary of transactions and balances
During the period, the Company received from its subsidiaries $12,245k (2024: $13,308k) in respect of management service charges and dividends of $20,800k (2024: $19,150k).
Amounts outstanding between the Company and its subsidiaries as at 30th June 2025 are given in notes 16 and 18 of the full report.
3. Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic report, the Directors' report, the Directors' remuneration report and the Financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Company financial statements for each financial year. The Directors have elected under Company law and are required under the Listing Rules of the Financial Conduct Authority to prepare Group financial statements in accordance with UK- adopted International Accounting Standards. The Directors have elected under Company law to prepare the Company financial statements in accordance with UK-adopted International Accounting Standards.
The Group and Company financial statements are required by law and UK-adopted International Accounting Standards to present fairly the financial position of the Group and the Company and the financial performance of the Group; the Companies Act 2006 provides in relation to such financial statements that references in the relevant part of that Act to financial statements giving a true and fair view are references to their achieving a fair presentation.
Under Company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period.
In preparing each of the Group and Company financial statements, the Directors are required to:
•select suitable accounting policies and then apply them consistently;
•make judgements and accounting estimates that are reasonable and prudent;
•state whether they have been prepared in accordance with UK-adopted International Accounting Standards; and
•prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements and the Directors' remuneration report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors' statement pursuant to the Disclosure and Transparency Rules
Each of the Directors, whose names and functions are listed on page 46 of the full report confirm that, to the best of each person's knowledge:
•the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole; and
•the Strategic Report and Directors' report contained in the Annual Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the City of London Investment Group's website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 25 minutes ago Hunting
- 37 minutes ago DotDigital Group
- 1 hour ago BlackRock Greater Europe Inv Trust
- 1 hour ago Niox Group
- 1 hour ago Bunzl