HENDERSON HIGH INCOME TRUST PLC
Unaudited results for the half year ended 30 June 2026
This announcement contains regulated information
Investment Objective
The Company invests in a prudently diversified selection of both well-known and smaller companies to provide investors with a high dividend income stream while also maintaining the prospect of capital growth.
Performance for the six months to 30 June 2026
· Net asset value (NAV) total return (debt at fair value)1 of 6.3% compared with a total return from the benchmark2 of 6.0%
· Mid-market share price total return (including dividends reinvested) of 8.7%
| Financial highlights | at 30 June 2026 | at 31 December 2025 |
| NAV per share3 | 205.6p | 198.8p |
| Mid-market price per share | 198.0p | 187.5p |
| Net assets | £351.8m | £340.2m |
| Dividends paid/payable in respect of the period | 5.55p | 10.90p |
| Dividend yield | 5.6% | 5.8% |
| Gearing | 17.9% | 17.5% |
| (Discount)/premium to NAV (debt at fair value) | (3.7%) | (5.7%) |
| Total return performance (including dividends reinvested and excluding transaction costs) | |||||
| 6 months% | 1 year% | 3 years% | 5 years% | 10 years% | |
| NAV total return (debt at fair value)1 | 6.3 | 14.4 | 49.2 | 60.9 | 115.0 |
| Share price total return4 | 8.7 | 16.5 | 46.1 | 54.7 | 113.8 |
| Benchmark2 | 6.0 | 18.3 | 46.3 | 51.7 | 104.0 |
| FTSE All-Share Index | 7.2 | 21.9 | 53.1 | 67.9 | 129.8 |
| ICE BofA Sterling Non-Gilts Index | 0.9 | 4.2 | 20.4 | (2.6) | 18.9 |
| 1. Net asset value with debt at fair value per ordinary share total return (including dividends reinvested and excluding transaction costs) 2. The benchmark is a composite of 80% of the FTSE All-Share Index (total return) and 20% of the ICE BofA Sterling Non-Gilts Index (total return) rebalanced annually3. Net asset value per share with debt at fair value as published by the Association of Investment Companies (AIC)4. The mid-market share price total return (including dividends reinvested) Sources: Morningstar Direct and Janus Henderson | |||||
| CHAIRMAN’S STATEMENT Markets/PerformanceThe first half of 2026 has seen financial markets deliver positive returns. Despite a difficult and volatile backdrop given the hostilities in the Middle East, which has exerted upwards pressure on energy prices and inflation, companies have generally been able to weather the storm and monetary policy has been supportive. Overall corporate profitability has remained robust and dividend payout rates have continued to be positive. The Company’s performance in the first half of the year versus its benchmark (80% of the FTSE All-Share Index and 20% of the ICE BofA Sterling Non-Gilts Index) has been a touch ahead with a net asset value total return of 6.3% versus the benchmark return of 6.0%. The Company’s share price total return was higher at 8.7% as the discount at which the Company’s share price has traded at relative to net asset value reduced during the period. Gearing/Asset AllocationThe Company’s asset allocation has continued to favour equities over fixed interest investments. During the first half of the year approximately 90% of the Company’s assets were invested in equities and 10% in bonds. Gearing through the first half of the year remained stable, commencing at 17.5% and ending at 17.9%. DividendsThe first interim dividend of 2.775 pence per share was paid on 24 April 2026 and the second interim dividend for the same amount was paid on 24 July 2026. A third interim dividend of 2.8 pence per share was announced on 6 July 2026 and this dividend will be paid on 30 October 2026 to shareholders registered at the close of business on 11 September 2026. Dividend payouts from UK companies have continued to be positive although there have been pockets of weakness with the UK housebuilding sector being a notable casualty. The Board as ever continues to regularly review prospective income levels from the Company’s portfolio and it remains confident in the Company’s ability to provide shareholders with a high income return. Board of DirectorsHaving chaired the Board since May 2021 and having been appointed to the Board in 2018, I will be stepping down at the Annual General Meeting in 2027. I am very pleased that Richard Cranfield, who was appointed as a Director in March 2020, will succeed me as Chairman. Richard is the current Chairman of IntegraFin Holdings plc, a FTSE 250 Company. The Board has commenced a search for a new Director to join the Board in early 2027. Investment Management ArrangementsThe Board regularly reviews arrangements with Janus Henderson to ensure that they are in the best interests of shareholders. In line with other Janus Henderson investment trusts and indeed other competitor investment trusts, we have agreed that it would be prudent to have more formalised additional investment cover. In this respect I am pleased to say that Andrew Jones, a member of the Janus Henderson Global Equity Income Team who has 30 years investment experience, has been appointed as Deputy Fund Manager to Henderson High Income. Andrew works closely with David Smith, who has been the Company’s Fund Manager since 2014 and Andrew has been the effective deputy fund manager for some time. The Board does not anticipate any change to the management of the Company’s portfolio. OutlookArguably the performance of financial markets during the first half of 2026 has been better than expected given the difficult geopolitical backdrop. High energy prices, supply chain issues and higher price inflation have provided a challenging mix. The on-off nature of the current ceasefire in the Middle East provides an unstable environment as we look forward to the rest of the year. Within the UK, corporate performance has been generally encouraging and whilst there are undoubtedly pockets of weakness in the domestic economy, with the outlook for the construction and housebuilding sector looking particularly challenging, larger companies appear to be more resilient due to their balanced activities across the globe. There has been a notable increase in corporate takeover activity with international companies and investors recognising the inherent value of UK quoted companies. In addition, monetary policy should remain supportive of equity markets with the Bank of England unlikely to tighten too significantly whilst overall economic growth prospects remain muted. As usual David Smith, the Company’s Fund Manager, will continue to look for those companies which can offer higher levels of income generation whilst also providing the scope to deliver capital growth over the medium term. Jeremy RiggChairman8 September 2026 |
| Fund Manager’s Report MarketsThe FTSE All-Share Index returned 7.2% during the first six months of the year, as thawing global trade tensions, an initial peace agreement in the Middle East and positive corporate results helped support global equity markets. In March, the escalation of the conflict in the Middle East caused a slump in global stocks as surging oil and gas prices boosted inflation expectations and raised the possibility of tighter monetary policy. Equities then rebounded as a ceasefire largely held, despite occasional flare-ups in tensions, while the US and Iran later signed an initial peace deal. Shifting sentiment around artificial intelligence (AI) also caused volatility. Worries about technology companies’ significant investment in AI, along with anxiety about potential AI-led disruption to traditional business models, unnerved investors. In June, Prime Minister Keir Starmer announced his resignation following the Labour Party’s large losses in May’s local elections. During the period the Bank of England kept its benchmark rate at 3.75% while UK CPI inflation (Consumer Price Index) cooled to 2.6% in June from 3.0% in January. The FTSE 100 (+7.6%) outperformed the FTSE 250 (+4.3%) and FTSE Small Cap (+7.1%) indices. Sectors such as mining, banks and aerospace & defence outperformed, while software & computer services, housebuilders and financial services lagged. PerformanceThe Company’s NAV (with debt at fair value) total return was 6.3% over the period, modestly outperforming the benchmark return of 6.0%. Within the equity portfolio, holdings in Schroders and DCC Energy were positive for performance. Schroders was subject to an agreed bid approach from Nuveen, while DCC Energy received its own approach from a private equity consortium. Some of the overseas holdings, such as Texas Instruments and Engie, also performed well. Semiconductor manufacturer Texas Instruments reported strong trading, benefiting from robust demand from the build-out of data centres in the US. Engie’s agreed acquisition of UK Power Networks was well received by investors. Holdings in Dunelm, Michael Page and Imperial Brands detracted from returns. Dunelm reported softer trading due to subdued underlying market conditions. Recruiter Michael Page suffered from a lacklustre recruitment market while fears over the impact of AI on employment also weighed on the shares. Imperial Brands announced a mixed trading statement, with modest market share losses across its five main countries. Portfolio ActivityWithin the equity portfolio, new holdings were established in Bodycote and Carlsberg. Bodycote is a global provider of heat treatment and specialist metallurgy services with margin expansion potential as the business shifts towards higher‑value specialist technologies. Carlsberg is a global beer and soft drink manufacturer with potential for organic volume recovery across its beer portfolio, as well as margin expansion following the acquisition of Britvic. Elsewhere, we added to our existing holdings in RELX and BP. RELX’s share price fall on AI concerns presented an attractive buying opportunity as we believe the business is well protected from AI-related threats, given its data analytics are based on proprietary data. BP’s strategic shift towards a simpler, more focused oil and gas business, combined with tighter capital discipline, should drive improved returns and cash generation over the medium term. Sales for the period included Mondi and MONY Group. We sold Mondi given our concerns on oversupply in the European paper and packaging industry which is putting pressure on pricing in an environment of subdued demand. While MONY’s short-term cash flows are unlikely to be impacted from agentic AI, we feel they could be over the medium term, which is likely to depress the valuation, hence we exited the position. David SmithFund Manager8 September 2026 |