Capital Gearing Trust P.l.c. - Half-Year Results - 30 Sept 2025

Capital Gearing Trust P.l.c. - Half-Year Results - 30 Sept 2025

PR Newswire

LONDON, United Kingdom, November 18

LONDON STOCK EXCHANGE ANNOUNCEMENT

Capital Gearing Trust P.l.c.

(the 'Company')

Unaudited Half-Year Results for the six months ended 30 September 2025

Legal Entity Identifier: 213800T2PJTPVF1UGW53

Information disclosed in accordance with DTR 4.2.2

Capital Gearing Trust (LSE: CGT), the FTSE 250 investment trust focused on preserving and, over time, growing shareholders' real wealth, has today announced its Half-Year Results for the period ended 30 September 2025.

Financial Summary and Highlights

	30 September	31 March
	2025	2025
Share Price	4,885.0p	4,785.0p
NAV per Share	4,988.2p	4,924.8p
Share Price Discount to NAV per Share (1)	2.1%	2.8%
Market Capitalisation	£805.2m	£859.9m
Shareholders' Funds	£822.2m	£885.0m

Total Return Performance to 30 September 2025

	6 months	1 Year	3 Years	5 Years	10 Years
	(%)	(%)	(%)	(%)	(%)
Share Price (1)	4.3	4.8	8.5	15.7	65.4
NAV per Share (1)	3.4	5.1	9.5	21.2	72.2
Consumer Price Index ('CPI') (2)	0.3	3.8	12.5	27.7	39.0

Source: AIC/LSEG/ONS.

(1) Alternative Performance Measure. Please refer to the Company's Half-Year Report for the six months ended 30 September 2025 ('2025 Half-Year Report') for a description of the Alternative Performance Measures and a glossary of terms and definitions.

(2) The Company does not have a formal benchmark but uses the Consumer Price Index ('CPI') as a relative measure over the medium to longer term.

• Over the six month reporting period to the end of September 2025, the Company delivered a net asset value ('NAV') total return of +3.4% and a share price total return of +4.3%. This compares with the Consumer Price Index ('CPI') return of +0.3%.
• During the 'tariff swoon', global equities fell almost 20% in sterling terms in the two months ended 8 April 2025. Over the same period the Company's NAV fell by just 2%. The principal objective of the Company is to preserve wealth and this episode was a good dress rehearsal for a more prolonged equity bear market.
• A majority of the returns came from the Risk Asset portfolio, with equities rebounding strongly after the tariff-induced weakness in April. The bond portfolio delivered modest positive returns against a backdrop of rising yields and strengthening sterling.
• on Tuesday 18 November 2025 at 2.30 p.m., the investment team will present the Company's half-year results via Investor Meet Company's webcasting service. Investors can sign up to Investor Meet Company for free and add "to meet CG Asset Management" via: https://www.investormeetcompany.com/cg-asset-management/register-investor
• On Tuesday 2 December 2025 from 9:30 a.m. to 1:00 p.m., CG Asset Management will be holding its annual Investor Day HOME | CGAM Investor Day 2025. The fund managers will discuss the current macroeconomic environment in greater depth, examine the outlook for investment trusts, and provide a comprehensive update on our asset allocation positioning. To register, please visit https://www.cgam-events.com/

Chairman's Statement

Performance

This is my first statement following my appointment as Chairman. I can report that over the six month reporting period to the end of September 2025, the Company delivered a net asset value ('NAV') total return of +3.4%. This compares with the Consumer Price Index ('CPI') return of +0.3%. The share price total return over the period was +4.3% as the discount ended the six-month period at the lower level of 2.1% compared with 2.8% as at 31 March 2025.

These results reflect the resilience of our capital preservation mandate and the disciplined implementation of our investment strategy even in periods of market instability. This was highlighted during the 'tariff swoon'. Whilst this retrenchment was not formally classified as a bear market, global equities fell almost 20% in sterling terms in the two months ended 8 April 2025. Over the same period the Company's NAV fell by just 2%. The principal objective of the Company is to preserve wealth and this episode was a good dress rehearsal for a more prolonged equity bear market.

Further details regarding the market environment and the Company's performance over the six months ended 30 September 2025, together with the Investment Manager's outlook can be found in the Investment Manager's Report below.

Discount/Premium Control Policy ('DCP')

Our DCP, which aims to ensure that, in normal market conditions, the Company's ordinary shares trade at close to underlying asset value, has resulted in the Company repurchasing 1,487,177 shares into Treasury for a total consideration of £71.6 million over the six months to 30 September 2025.

Reflecting both the quantum of buybacks completed by the Company and the Board's commitment to the DCP, the Company is likely to call a general meeting in the first quarter of 2026 to renew shareholder authority to buy-back shares, since it is highly likely that the authority to buyback 14.99% of the Company's share capital granted at the Annual General Meeting in July 2025 will be exhausted before the date of the 2026 Annual General Meeting. Shareholders will be notified of any such general meeting. The Board hopes that we are close to the nadir of interest in capital preservation portfolios; but we must prepare in case that does not happen.

Whilst the repurchase of the Company's shares does shrink the assets of the Company, the Board notes that due to the vast majority of the Company's expenses being charged on an ad valorem basis, that is they rise and fall commensurably with the Company's assets, there is only a marginal increase in the Company's ongoing charges ratio. We believe that the DCP remains in the best interests of the Company.

Income and Distributions

The amount the Company receives in dividends and interest is the outcome of the application of its investment policy, and the amounts distributed to shareholders are designed to satisfy the Company's annual income distribution test to ensure that it maintains its investment trust status.

Over the course of the Company's year ended 31 March 2025, the Company took advantage of the UK interest streaming rules, which allow approved investment trusts which have income from interest bearing assets to treat all or part of a distribution as an interest distribution, rather than a conventional dividend. Accordingly, the Board recommended a final dividend of 102p per share, which was approved by shareholders, with the payment being designated as follows: Interest distribution per Ordinary share: 66p, Dividend distribution per Ordinary share: 36p. By doing this, the Company received a corresponding deduction in its corporation tax liability.

The total distribution above represented an increase of 30.8% from the 78p paid to shareholders in respect of the Company's financial year ended 31 March 2024. At the half year stage, the receipt of income has fallen since last year, nevertheless the Company is likely to again designate a proportion of the total distribution as an interest distribution. The final distribution recommendation will be determined by the Board and confirmed to shareholders in May 2026.

Board Changes

We bade farewell to Jean Matterson at the conclusion of the Company's AGM held in July, following a tenure of just over ten years. Under her leadership, Jean brought not only deep experience and sound judgment to the role, but also a thoughtful, collaborative spirit that enriched the work of the entire Board. We thank Jean for her valued contribution to the Company and wish her all the best for the future.

Theo and I joined the Board in the second half of 2024. No further change to the Board is envisaged in the immediate future. I can confirm that the Board's composition is compliant with all applicable diversity targets for UK listed companies and it is the Board's intention that this will continue to be the case.

Company's Marketing, Promotion and Shareholder Interaction

With the dual aim of arming the Company's existing shareholders with timely and quality information, and to create a sustained demand for the Company's shares, the Board has tasked CG Asset Management with increasing the Company's profile with investors and potential investors across the investment community. This has resulted in regular updates and thought pieces on the Company via various media including video conferences, podcasts and in-person meetings, together with ongoing interaction with national and investment industry journalists.

The Company has also launched a redesigned website to provide a clearer, more informative and accessible online experience for shareholders. The site provides the history and background of the Company, insights, regulatory documents, performance data, shareholder communications, and investor tools. The new site can be found here: https://capitalgearingtrust.com

The next opportunity to hear from the Investment Manager is on Tuesday 18 November 2025 at 2.30 p.m., when the investment team will present the Company's half-year results via Investor Meet Company's webcasting service. Questions can be submitted at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add "to meet CG Asset Management" via: https://www.investormeetcompany.com/cg-asset-management/register-investor

Investors who already follow CG Asset Management on the Investor Meet Company platform will automatically be invited.

To ensure you get early notification of future presentations and events you can register for email and news alerts concerning the Company using the following link: https://capitalgearingtrust.com/contact/alerts

Karl Sternberg

Chairman

18 November 2025

Investment Manager's Report

Performance

The portfolio made steady progress over the half year reporting period delivering 3.4% on a NAV total return basis. A majority of the returns came from the Risk Asset portfolio, with equities rebounding strongly after the tariff-induced weakness in April. The bond portfolio delivered modest positive returns against a backdrop of rising yields and strengthening sterling. The Company's NAV per share approached its all-time high at the period end.

Attribution Analysis

Return on portfolio	%	%
Cash & treasury-bills	0.2
Credit	0.7
Managed Liquidity Reserve		0.9
Inflation-linked bonds		-0.6
Gold	0.2
Infrastructure	0.8
Alternatives	0.2
Property	0.2
Equities	1.8
Risk assets		3.2
Gross return		3.5
NAV accretion from buyback	0.2
Management fee and other costs	-0.3
Net return		3.4

The Risk Asset holdings (circa. 26% of the portfolio), enjoyed a buoyant period of performance. Within the conventional equity investment trusts all markets delivered strong returns but particularly notable has been emerging markets and Japan. Fidelity Emerging Markets was a standout performer delivering returns in excess of 30% through a combination of strong NAV growth and a narrowing discount. Our large holding in the Aberdeen Asian Focus plc convertible bond, converted into equity in May, just in time to enjoy an extraordinary few months of performance. Overall, our equity investment trusts delivered a return of 13%. This was just below the sterling-denominated MSCI World, which returned 14.9% over the period. This underperformance was largely a consequence of the Company's continued underweight to US equities. Within our alternative portfolio the infrastructure holdings enjoyed a strong period, a welcome return to form after a difficult couple of years. The largest contributors included International Public Partnership Ltd, 3i Infrastructure plc and HICL Infrastructure plc, all of which are in our top 10 equity holdings. Our infrastructure holdings returned 12.9% over the period, outperforming the AIC Infrastructure Sector by 5.3 percentage points ('pp').

In the period we reduced our exposure to Risk Assets by 3% from 29% to 26%. We are concerned about extremely stretched equity valuations, particularly in the US and increasingly speculative investor behaviour.

Bond returns were muted. For our inflation-linked bond holdings (circa. 39% of the portfolio) headwinds and tailwinds offset one another. Our US inflation-linked bonds (TIPS) profited from falling yields that were offset by the weakening dollar. Our UK inflation-linked bonds profited from strong inflation accruals that were partly offset by a steepening yield curve. These improved yields motivated us to make the largest portfolio change in the period, with an increased allocation from 5% to 20% to UK "linkers". At the margin, this was accretive to returns: while our TIPS portfolio underperformed the TIPS index by 1.0pp over the period, our UK inflation-linked bond portfolio outperformed its benchmark index by 1.5pp. This increase was mostly funded by reducing our TIPS holdings and from reinvesting profits taken from Risk Assets. Our Managed Liquidity Reserve (circa. 34% of the portfolio), made up of short-dated government bonds and credit, made steady returns in the period. The very high weighting to these low-risk assets is an expression of our concern about the outlook.

Company Objective and Portfolio Construction

The Company's objective is to preserve and, over time, to grow shareholders' real wealth. To achieve this objective, we follow a flexible multi-asset strategy using a diversified portfolio of equities, index-linked bonds, and other assets to deliver consistent, risk-adjusted returns.

Long-term shareholders will be familiar with the labels we have used for many years to describe the various assets available to the team - namely: Dry Powder, Index-Linked Bonds and Risk Assets. Whilst there has not been any change to the investment strategy, we have worked with the Board to find new labels which better reflect and explain their role in achieving the investment objective. We hope this new terminology, as detailed below, is helpful:

• Managed Liquidity Reserve (formerly Dry Powder) - Cash and short-dated bonds that provide the Investment Manager with liquidity and optionality in uncertain markets
• Inflation-Linked Bonds (formerly Index-Linked Bonds) - These government bonds protect against inflation and are a key component of the capital preservation strategy
• Risk Assets (label unchanged) - Chiefly comprising listed investment trusts, ETFs, and property companies offering long-term growth potential

For more detail on these assets and the Company's investment strategy, please refer to the Company's website at https://capitalgearingtrust.com

Outlook

Our aim is to spend time worrying so that you don't have to. As we write this, the list of things we are worrying about is long. Chief among them is the fiscal position of developed market governments, in particular France, the US and the UK. France is forecast to have a budget deficit of over 5% this year. Government debt to GDP has risen to 114% and the country is in political paralysis. By the end of the year it will have had at least 6 different prime ministers since 2024. In the US the budget deficit is expected to be over 6% of GDP. Indeed, by 2030, 100% of Federal tax receipts will be consumed by non-discretionary expenditure (social security, debt interest expense, Medicare & Medicaid). The entire discretionary budget (education, defence, the civil service, roads etc.) will be deficit financed. In the UK the fiscal position is slightly better, our budget deficit is forecast to be "only" around 4% this year. All three governments have a lot of bonds to sell.

The UK's position is probably more precarious than that of the US or France. The US enjoys the exorbitant privilege of being the global reserve currency and France benefits from back-stopping by the ECB. Few need to own UK government debt. It is entirely plausible that any one of those countries (and several others) could suffer a fiscal crisis in the near future.

Bond markets have woken up to this. Yield curves have steepened dramatically as investors assess these risks and the higher returns needed to entice new buyers to buy the ever greater supply of government bonds. Yet equity investors have shrugged this off. The S&P500 trades at a CAPE ratio of 41x, against this measure it has only ever been more expensive for less than 1% of its history. When it comes to long-term prospective returns starting valuations really matter. If history is a guide then investors in the US can expect real returns of less than 1% per annum over the next 10 years. Of course, stocks tend not to move smoothly sideways: the path is more likely to include stomach-lurching falls. Nor are extremes of valuation confined to the Magnificent 7 1 : Walmart trades on over 40x earnings even though its cash-flow growth over the last decade has lagged inflation. Procter & Gamble trades on a more modest 21x earnings. Yet it only generates a free cash yield of 4.0% which has also grown slower than inflation over the last decade. When interest rates were zero these sorts of valuations may have made sense for so-called "bond proxies". But the increase in real yields in recent years has been nothing short of extraordinary. In the aftermath of the Covid pandemic 10-year real yields in the UK reached -3%, since then they have risen to around 1.5% today. Surely, these valuations cannot make sense now, when 20-year TIPS offer real yields of 2.3%. Where is the equity risk premium - the extra payment for holding a risky asset over safer government debt?

These equity valuations are set against a backdrop of high and rising macro-economic risks. There are two worth considering, the first is tariffs. The effective tariff rate for US consumers is estimated to be 19%, the highest level since 1933. We don't know what the impacts of these will be but we can guess at lower corporate profits - as businesses try to shield consumers from the worst of price rises - and higher inflation. The tariffs also amount to a highly regressive tax and/or a dramatic reduction in purchasing power for consumers.

Then there is the AI investment boom. The "hyper-scalers" are forecast to spend around $500 bn in CAPEX through to 2030. To support this $3tn in cumulative investment, we estimate they will need to generate revenues of $2-3tn by 2030. This seems highly unlikely. We expect reality will disappoint and that these investments will generate, at best, modest returns and will require significant write-downs. It is possible that this won't matter; the hyper-scalers generate astonishing amounts of cash from their core businesses and will probably continue to. Equity markets may look past such mis-adventures, just as they have looked past Meta's circa. $45 bn investment into the "metaverse", which has turned out to be largely worthless. More concerning is the potential impact on growth and the potential spill-over into private credit markets. By some estimates, data centre investment is the only thing keeping US GDP growth in positive territory. Take it away and the US might slip quickly into recession. Private debt markets have become major funders of the AI boom. It is possible these transactions are sufficiently well structured to ensure that the debt they provide is fully amortising. Even if it is, they are taking the credit risk of venture backed start-ups whose funding may dry up if their commercial viability is called into question. Open AI, NVIDIA and the like appear to be involved in ever larger circular financings: equity investments which in turn are used to buy the investor's chips. This is reminiscent of the network equipment providers offering vendor finance to sell their products in the late 1990s. We cannot say with certainty that this will end badly, but there is definitely a risk that it might.

We are left with a world of unappealing choices. US equities are very expensive and much of the relative better value of other equity markets has, through good performance, been eroded. Bonds offer, on a long term view, good value but are very vulnerable to fiscal crises in the near term. Credit spreads are exceptionally tight and gold is at record valuations. Labour markets are weakening around the world, growth is low and inflation is sticky.

Against that backdrop our exposure to both equities and bonds is constrained. Where we take interest rate risk, it is via inflation linked bonds. We have a high weighting to cash-like assets within our managed liquidity reserve which offer reasonable returns. We judge the opportunity cost of not being invested in the market to be very low.

We would be delighted if you could join us at the CG Asset Management Investor Day on Tuesday 2 December from 9:30 a.m. to 1:00 p.m. We will discuss the current macroeconomic environment in greater depth, examine the outlook for investment trusts, and provide a comprehensive update on our asset allocation positioning. To register, please visit https://www.cgam-events.com/

1 Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, NVIDIA

Peter SpillerAlastair LaingChristopher Clothier

18 November 2025

Portfolio Investments

The top ten (1) investments in each asset category are listed below. The full portfolio listing of the Company as at 30 September 2025 is published on the Company's website www.capitalgearingtrust.com

	30 September	31 March
	2025	2025
	£'000	£'000
Inflation-Linked Government Bonds
Index-Linked Bonds - United Kingdom	169,222	75,828
Index-Linked Bonds - United States	146,104	244,846
Index-Linked Bonds - Japan	2,077	2,151
Index-Linked Bonds - Sweden	-	11,992
	317,403	334,817
Conventional Government Bonds
Conventional Government Bonds - Japan	150,696	159,043
Conventional Government Bonds - United Kingdom	7,417	15,855
	158,113	174,898
Preference Shares/Corporate Debt
Network Rail 1.75% 2027	11,539	4,947
BP Capital 4.25% Perpetual Bond	9,362	9,588
Eversholt Funding 6.359% 2025	4,945	-
Dwr Cymru (Financing) 3.514% 2030	4,801	5,662
Whitbread 3.375% 2025	4,448	3,959
Road Management Services 2.8332% 2035	4,412	4,427
London And Quadrant Housing Trust 2.625% 2026	3,948	-
Network Rail 1.9618% 2025	3,437	3,359
Tesco 1.982% 2036	3,324	112
Sydney Airport Finance Company 3.12% 2030	3,306	3,166
Other Preference Shares/Corporate Debt Investments	45,789	64,998
	99,311	100,218
Funds/Equities
North Atlantic Smaller Companies Investment Trust	17,304	16,469
Vanguard FTSE 100 UCITS	15,848	16,805
International Public Partnerships	11,468	9,231
HICL Infrastructure	10,814	8,260
Vanguard FTSE 250 UCITS	9,618	10,036
JP Morgan Japan ETF	9,516	23,308
3i Infrastructure	8,501	7,488
BH Macro	7,835	- (2)
BlackRock Energy and Resources Income Trust	7,683	- (3)
Smithson Investment Trust	7,117	6,603
Other Fund/Equity Investments	105,067	141,330
	210,771	239,530
Gold
WisdomTree Physical Swiss Gold (Exchange Traded Commodity)	9,500	10,944
	9,500	10,944
Total Investments	795,098	860,407
Cash	10,856	42,859
Total	805,954	903,266

(1) Some asset categories comprise fewer than ten investments.

(2) Balance as at 31 March 2025 was £6,089,000 but was not a top ten investment and therefore shown as "-".

(3) Balance as at 31 March 2025 was £6,235,000 but was not a top ten investment and therefore shown as "-".

	30 September	31 March
	2025	2025
Asset Allocation Analysis
Inflation-Linked Government Bonds	39%	38%
Funds/Equities	26%	29%
Conventional Government Bonds	20%	18%
Preference Shares/Corporate Debt	12%	9%
Cash	2%	5%
Gold	1%	1%
	100%	100%
Currency Allocation Analysis
Sterling	60%	50%
US Dollar (1)	20%	30%
Japanese Yen (1)	19%	18%
Euro	1%	1%
Swedish Krona	0%	1%
	100%	100%

(1) Currency exposure does not include the effect of currency hedging.

Interim Management Report

A review of the half-year and the outlook for the Company can be found in the Chairman's Statement and the Investment Manager's Report above.

Principal Risks and Uncertainties

The principal risks faced by the Company fall into the following broad categories: investment strategy and performance; share price premium/discount level; operational risk, regulatory and governance risk, and financial and economic risk. Information on each of these areas is given in the Strategic Review within the Annual Report for the year ended 31 March 2025. The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company's financial year.

The Directors continue to work with the agents and advisers to the Company to manage the risks, including any emerging risks, as best they can.

Related Party Transactions

Details of related party transactions are contained in the Annual Report for the year ended 31 March 2025. There have been no material changes to be reported.

Going Concern

The Company's investment objective and business activities, together with the main trends and factors likely to affect its development and performance are monitored continuously by the Board. The Directors believe that the Company is reasonably well placed to manage its business risks and, having reassessed the principal risks, consider it appropriate to continue to adopt the going concern basis of accounting in preparing the interim financial information.

Statement of Directors' Responsibilities

Each Director confirms that, to the best of their knowledge:

(i) the condensed set of financial statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

(ii) the Half-Year Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year and includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period and any changes in the related party transactions described in the last annual report that could do so; and

(iii) the Half-Year Report, taken as a whole, is fair balanced and understandable and provides information necessary for shareholders to access the Company's performance, position and strategy.

This Half-Year Report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the date of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

For and on behalf of the Board

Karl Sternberg

Chairman

18 November 2025

Condensed Income Statement

	(unaudited) Six months ended 30 September 2025			(unaudited) Six months ended 30 September 2024
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Net gains on investments held at fair value	-	12,561	12,561	-	10,656	10,656
Net gains on currency swap contracts	-	7,483	7,483	-	4,678	4,678
Net currency (losses)/gains	-	(66)	(66)	-	32	32
Investment income (note 2)	9,602	-	9,602	10,708	-	10,708
Other income	78	-	78	205	-	205
Gross return	9,680	19,978	29,658	10,913	15,366	26,279
Investment management fee	(1,789)	-	(1,789)	(2,015)	-	(2,015)
Other expenses	(704)	-	(704)	(774)	-	(774)
Net return before tax	7,187	19,978	27,165	8,124	15,366	23,490
Tax charge	-	-	-	(530)	-	(530)
Net return attributable to equity shareholders	7,187	19,978	27,165	7,594	15,366	22,960
Net return per share (note 3)	41.51p	115,41p	156.92p	36.16p	73.15p	109.31p

The total column of this statement represents the Income Statement of the Company. The Revenue return and Capital return columns are supplementary to this and are prepared in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies ('AIC SORP').

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

There are no gains or losses other than those recognised in the Income Statement.

The accompanying notes are an integral part of the condensed financial statements.

Condensed Statement of Changes in Equity

	Called-up	Capital		Unrealised	Realised
	Share	redemption	Special	capital	capital	Revenue
For the six months ended	capital	reserve	reserve1	reserve1	reserve1	reserve1	Total
30 September 2025 (unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance at 1 April 2025	6,645	16	842,862	(15,956)	28,875	22,583	885,025
Net return for the period	-	-	-	24,499	(4,521)	7,187	27,165
Repurchase of shares into treasury (note 6)	-	-	(72,048)	-	-	-	(72,048)
Dividends paid (note 4)	-	-	-	-	-	(17,907)	(17,907)
Closing balance at 30 September 2025	6,645	16	770,814	8,543	24,354	11,863	822,235

	Called-up	Capital		Unrealised	Realised
	Share	redemption	Special	capital	capital	Revenue
For the six months ended	capital	reserve	reserve1	reserve1	reserve1	reserve1	Total
30 September 2024 (unaudited)	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance at 1 April 2024	6,645	16	1,037,403	(9,215)	7,670	17,654	1,060,173
Net return for the period	-	-	-	10,960	4,406	7,594	22,960
Repurchase of shares into treasury (note 6)	-	-	(89,840)	-	-	-	(89,840)
Dividends paid (note 4)	-	-	-	-	-	(16,598)	(16,598)
Closing balance at 30 September 2024	6,645	16	947,563	1,745	12,076	8,650	976,695

1 These reserves are available for distribution except for the gains and losses relating to Level 3 investments.

The accompanying notes are an integral part of the condensed financial statements.

Condensed Statement of Financial Position

	(unaudited)	(audited)
	30 September	31 March
	2025	2025
	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss (note 7)	795,098	860,407
Current assets
Debtors	19,544	8,379
Cash	10,856	42,859
	30,400	51,238
Creditors: amounts falling due within one year	(3,263)	(26,620)
Net current assets	27,137	24,618
Net assets	822,235	885,025
Capital and reserves
Called-up share capital	6,645	6,645
Capital redemption reserve	16	16
Special reserve	770,814	842,862
Capital reserve	32,897	12,919
Revenue reserve	11,863	22,583
Total equity shareholders' funds	822,235	885,025
Net asset value per Ordinary share	4,988.2p	4,924.8p

The accompanying notes are an integral part of the condensed financial statements.

The Half-Year Report for the six months ended 30 September 2025 was approved by the Board of Directors on 17 November 2025 and signed on its behalf by:

Karl Sternberg

Chairman

18 November 2025

Condensed Cash Flow Statement

	(unaudited)	(unaudited)
	Six months	Six months
	ended	ended
	30 September	30 September
	2025	2024
	£'000	£'000
Net cash inflow from operating activities (note 5)	8,510	7,123
Purchases of investments	(414,353)	(648,871)
Sales of investments	463,700	760,133
Settlement on currency swap contracts	(747)	(151)
Net cash inflow from investing activities	48,600	111,111
Equity dividends paid	(17,907)	(16,598)
Repurchase of shares into treasury	(70,820)	(91,836)
Cost of share buybacks paid	(386)	(446)
Net cash outflow from financing activities	(89,113)	(108,880)
Increase/(decrease) in cash	(32,003)	9,354
Cash at start of period	42,859	11,643
Cash at end of period	10,856	20,997

The accompanying notes are an integral part of the condensed financial statements.

Notes to the Financial Statements

1. Basis of preparation

The condensed Financial Statements for the six months to 30 September 2025 comprise the Income Statement, the Statement of Changes in Equity, the Statement of Financial Position and the Cash Flow Statement, together with the notes set out below. They have been prepared in accordance with FRS 104 'Interim Financial Reporting', the AIC's Statement of Recommended Practice issued in 2022 ('SORP'), UK Generally Accepted Accounting Principles ('UK GAAP') and using the same accounting policies as set out in the Company's Annual Report and Accounts at 31 March 2025.

2. Investment income

	(unaudited)	(unaudited)
	Six months	Six months
	ended	ended
	30 September	30 September
	2025	2024
	£'000	£'000
Income from investments
Interest from UK bonds	3,944	3,754
Overseas dividend income	2,279	2,506
UK dividend income	1,855	3,415
Interest from overseas bonds	1,524	1,033
Total income	9,602	10,708

3. Net return per share

The calculation of return per share is based on results after tax divided by the weighted average number of shares in issue during the period, excluding shares held in treasury, of 16,483,585 (31 March 2025: 17,970,762).

The revenue, capital and total returns per share are shown in the Income Statement.

4. Dividends paid

	(unaudited)	(unaudited)
	Six months	Six months
	ended	ended
	30 September	30 September
	2025	2024
	£'000	£'000
2025 Dividend paid 8 July 2025 (102.0p per share)	17,907	-
2024 Dividend paid 5 July 2024 (78.0p per share)	-	16,598

5. Reconciliation of net return before tax to net cash inflow from operating activities

	(unaudited)	(unaudited)
	Six months	Six months
	ended	ended
	30 September	30 September
	2025	2024
	£'000	£'000
Net return before tax	27,165	23,490
Adjustments for:
Gains on investment held at fair value	(19,978)	(15,334)
Decrease in prepayments	28	28
Increase/(decrease) in accruals	9	(750)
Taxation reclaimed/(paid)	715	(852)
Decrease/(increase) in dividends receivable	684	(183)
(Increase)/decrease in accrued interest	(47)	692
Realised (losses)/gains on foreign currencies	(66)	32
Net cash inflow from operating activities	8,510	7,123

6. Ordinary shares

During the period, the Company repurchased 1,487,177 shares for a cash consideration of £72,048,000 (six months to 30 September 2024: repurchased 1,891,138 shares for a cash consideration of £89,840,000). The Company issued no new shares during the period or during the six months to 30 September 2024.

At 30 September 2025, there were 26,580,263 shares in issue (31 March 2025: 26,580,263) and 10,096,678 shares were held in treasury (31 March 2025: 8,609,501).

7. Fair value of financial assets and liabilities

Financial Reporting Standard 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1: valued using unadjusted quoted prices in active markets for identical assets;

Level 2: valued using observable inputs other than quoted prices included within Level 1; and

Level 3: valued using inputs that are unobservable and are valued by the Directors using International Private Equity and Venture Capital Valuation ('IPEV') guidelines, such as earnings multiples, recent transactions and net assets, which equate to their fair values.

The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy as follows:

Financial assets held at fair value through profit or loss	Level 1 £000	Level 2 £000	Level 3 £000	(unaudited) As at 30 September 2025 Total £000
Quoted securities	783,352	11,261	-	794,613
Currency swap contracts	-	11,161	-	11,161
Unquoted securities	-	-	485	485
Total fair value of financial assets	783,352	22,422	485	806,259

Financial assets held at fair value through profit or loss	Level 1 £000	Level 2 £000	Level 3 £000	(audited) As at 31 March 2025 Total £000
Quoted securities	844,854	14,990	-	859,844
Currency swap contracts	-	2,931	-	2,931
Unquoted securities	-	-	563	563
Total fair value of financial assets	844,854	17,921	563	863,338

8. General information

The financial information contained in this Half-Year Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half-years ended 30 September 2025 and 30 September 2024 has not been audited. The financial information for the year ended 31 March 2025 has been extracted from the Company's statutory accounts for that period, which have been filed with the Registrar of Companies. The report of the Auditor on those accounts was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

A copy of the 2025 Half-Year Report has been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The Half-Year Report will also shortly be available on the Company's website at www.capitalgearingtrust.comwhere up to date information on the Company, including daily NAV and share prices, factsheets, quarterly reports, webinars and portfolio information can also be found.

-ENDS-

Frostrow Capital LLP

Company Secretary

18 November 2025

For further information contact:

CG Asset Management Limited

Investment Manager

Tel: [phone]

Frostrow Capital LLP

Company Secretary

[e-mail]

[e-mail]: 0203 709 2481

SEC Newgate UK

Financial Communications

[e-mail]

Tel: [phone]

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