The Edinburgh Investment Trust plc
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 31 MARCH 2025
21 May 2025 – The Directors of the Edinburgh Investment Trust plc (“the Company” or “EIT”) have today announced the annual results for the year ended 31 March 2025.
Highlights
- The Company’s NAV rose 8.3% over the period under review
- The share price rose 11.3% to 740p (2024: 690p)
- Final dividend proposed of 7.5p per share, representing a full year dividend yield of 3.9%
- Subject to approval at the July 2025 AGM, total dividends for the year will be 28.8p per share (2024: 27.2p) representing an increase of 5.9%
- Share price discount to NAV narrowed to 9.4% from 11.5%, following the Company’s active share buyback programme, enhancing the NAV by 0.4%
- Ongoing charges ratio reduced to 0.51% from 0.53%, helped by a lower investment management fee
- The Company’s NAV and share price returns are ahead of the benchmark over three and five years to 31 March 2025
Elisabeth Stheeman, Chair, EIT, said: “The end of the Company’s financial year was also the fifth anniversary of the appointment of Liontrust as our investment management team, who have delivered strong performance. Despite significant challenges faced by the investment trust sector, Edinburgh Investment Trust’s five year NAV and share price returns are in excess of the benchmark, with the NAV return being 103.9% compared with the benchmark returning 76.5%. The Board has sought to address the share price discount to NAV, which has been fluctuating at around 10% for the last year, with an active programme buying back 4.7% of shares in the last twelve months, and 17.4% cumulatively since March 2020, enhancing the NAV by 0.4% and 1.7% respectively.
“It is encouraging that the UK equity market has had a better year compared with other equity markets, with the returns of the market illustrating why we remain enthusiastic about the strength of the UK-listed businesses in the Company. Our investment objective of growth in dividends per share in excess of the rate of UK inflation was more than comfortably met over the year. At the time of writing, equity markets have recovered much of the ground lost after the uncertainty of President Trump’s tariffs announcement. Nonetheless, volatility in markets is a reminder of the short-term challenges that investors face as the global economic order evolves. The Portfolio Managers’ diversified portfolio of deeply researched stocks means the Company is well placed to continue to deliver attractive future returns for its shareholders in the years ahead and live up to its mantra to trust in a style to last through the ages.”
Imran Sattar, Portfolio Manager, EIT, said: “Together with Emily Barnard, it has been a great pleasure to complete our first full year as Portfolio Managers of your Company. We have enjoyed the opportunity to set out how we are stewarding the Company’s assets and look forward to continued engagement with shareholders. We manage the portfolio with a total return approach, with the income generated by the portfolio supporting the dividends that the Company pays to its shareholders. Operationally, the portfolio has had a strong year, matching our expectations. Positive contributors to returns included NatWest Group, Verisk (the US insurance focused data and analytics company) and Baltic Classifieds Group (classifieds business), with the latter two new positions in the portfolio.
“The re-election of Donald Trump has increased economic uncertainty. Tariffs are expected to increase the cost of doing business and will weigh on consumer and corporate confidence. Furthermore, the UK has its own additional challenges with the increase in employer National Insurance rates a direct cost headwind for UK businesses. Our focus remains on constructing a well-balanced and diversified portfolio of advantaged businesses. The Company’s holdings have made excellent strategic, operational, and financial progress, and continue to do so.”