North Atlantic Smaller Companies Investment Trust plc (LON:NAS) has announced its Half-Yearly Report for the six months ended 31 July 2026
North Atlantic Smaller Companies Investment Trust plc is a company incorporated and registered in England and Wales.
The objective of the Company is to provide capital appreciation through investment in a portfolio of smaller companies principally based in countries bordering the North Atlantic Ocean.
| 31 July2026(unaudited) | 31 January2026(audited) | %Change | |
| Net asset value (“NAV”) per 0.5p Ordinary Share*: | |||
| Basic and diluted | 598.1p | 555.4p | 7.7 |
| Basic and diluted adjusted# | 639.0p | 591.5p | 8.0 |
| Market price of the 0.5p Ordinary Shares | 424.0p | 359.0p | 18.1 |
| Discount to net asset value | 29.1% | 35.4% | |
| Discount to adjusted net asset value | 33.6% | 39.3% | |
| Standard & Poor’s 500 Composite Index† | 5,562.4 | 5,061.7 | 9.9 |
| Russell 2000 Index† | 2,177.0 | 1,906.6 | 14.2 |
| Ongoing charges (annualised) | 1.2% | 1.2% | |
| * Includes current period revenue. |
# Adjusted to reflect Oryx International Growth Fund Limited (“Oryx”) under the equity method of accounting. See note 6.
† Sterling adjusted.
Chief Executive’s Review
During the six months under review the total return to shareholders of 9% was very marginally behind the Sterling Adjusted Standard & Poors Composite Index. Once again, technology performed well and major oil companies in particular out performed. Sterling fell against the dollar which impacted relative performance as the dollar related assets were now accounting for less than 20% of the portfolio.
The Company generated an income profit for the period of £5,953,000 a fall against the corresponding period last year of £8,522,000. This fall results from lower short term rates combined with the sale of some relatively high yielding securities to fund the share buy back. Consistent with prior years, no dividend is being declared until the outcome of the year becomes clearer. However, based on current expectations, it is anticipated that the dividend for the current year will be at least 6pps and hopefully a maintained 7pps.
The Company purchased for cancellation 5,305,000 shares during the period reducing the number of shares outstanding to 125,195,000 at the end of the period. The shares were purchased at a discount to the net assets of a little over 30% and will therefore benefit all long term shareholders. It is perhaps worth noting that since I became Chief Executive of the Trust approximately 132 million shares, or share equivalents, have been purchased for cancellation. It is expected that further purchases will be made over the next six months.
Quoted Portfolio
Once again President Trump managed to cause considerable volatility in equity markets over the six months as he launched a war against Iran. The result being soaring energy prices and further consumer uncertainty with the likelihood of food price led inflation later in the year.
The value of the Trust’s holding in Oryx and Odyssean rose by 8.1%. Animalcare as a result of a bid rose by 20%. Conduit continued to recover rising by just under 13%. Spire rose by 56% on a bid approach. Tate & Lyle rose by 47% as a result of a takeover. Polar Capital rose by 31% as technology stocks boomed on Wall Street whilst TP ICAP rose 34% as volatility in the bond and equity markets led to earnings upgrades.
The major disappointment was Gleeson PLC which fell by nearly 30% as the failure of the government’s housing policies has led to downgrades across the housebuilding sector with a real risk of bankruptcies in some of the more financially exposed businesses.
In the US our sole quoted holding, Mountain Commerce, was taken over at approximately five times original cost.
Unquoted Portfolio
The majority of Coventbridge and Medica Packaging (an investment in Harwood Private Equity V) were sold during the period, both at good profits to original cost and brought in about £23m in cash. Another investment has started the process to be sold and should this be successful a further £9m in cash could be received by Christmas.
Two new unquoted investments were made as we participated in public to private in two of our quoted investments, Frenkel Topping and Animalcare (£34m and £17.0m respectively including our pro rata share of Harwood Private VI).
Both of these companies are very well known to us and I am highly confident will add significant value to the Trust over the medium term.
Outlook
The UK market continues to suffer from apparently endless redemptions as fund managers pivot towards large international businesses whilst small cap and mid cap managers who have not been lucky enough to benefit from takeovers suffer from poor performance.
UK interest rates have continued to rise at the long end and this combined with a plethora of proposed give aways by the new Burnham administration does not bode well for government deficits or consumer confidence if they are funded by a further massive round of tax rises.
Whilst the government bemoans the lack of interest in UK equities, it is hardly surprising when any sector that is doing well is hit with punitive taxation, banks, oil companies and homebuilders in particular.
Equally depressing is the lack of support for our life science industries where businesses are now curtailing investment in the UK in favour of the United States. Meanwhile the tax assault on the leisure sector is creating redundancies, youth unemployment and in some cases bankruptcies.
The weekly takeover of British companies continues meaning that the gene pool of good quoted companies is shrinking which will inevitably have consequences over the medium term for the Trust.
C H B Mills
Chief Executive
20 September 2026
