Worldwide Healthcare Trust PLC (LON:WWH) has announced its Annual Financial Report for the year ended 31 March 2025.
The statements below are extracted from the Company’s annual report for the year ended 31 March 2025 (the Annual Report). The Annual Report, will be posted to shareholders on 16 June 2025. Copies of the Annual Report will be available in hard copy format from the Company Secretary, Frostrow Capital LLP, 25 Southampton Buildings, London WC2A 1AL or from the Company’s website at www.worldwidewh.com where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.
The Annual Report will be submitted to the Financial Conduct Authority and will shortly be available in full, unedited text for inspection on the National Storage Mechanism (NSM): https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The Annual General Meeting will be held on Wednesday, 9 July 2025.
COMPANY PERFORMANCE
Historic performance for the years ended 31 March
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Net asset value per share (total return)*^ | 6.5% | 30.0% | -5.8% | -0.1% | 12.0% | -10.3% |
| Benchmark (total return)* | 5.7% | 16.0% | 20.4% | 2.5% | 10.9% | -3.2% |
| Net asset value per share | 286.9p | 370.3p | 346.5p | 343.5p | 381.1p | 339.5p |
| Share price | 292.0p | 369.5p | 327.5p | 311.5p | 335.0p | 297.5p |
| Premium/(discount) of share price to | (12.4)% | |||||
| net asset value per share | 1.8% | (0.2)% | (5.5)% | (9.3)% | (12.1)% | |
| Dividends per share | 2.5p | 2.2p | 2.7p | 3.1p | 2.8p | 2.4p |
| Leverage | 12.0% | 7.6% | 10.9% | 10.5% | 10.8% | 12.0% |
| Ongoing charges^ | 0.9% | 0.9% | 0.9% | 0.8% | 0.9% | 0.8% |
| Ongoing charges (including performance fees paid or crystallised during the year)^ | 0.9% | 0.9% | 1.4% | 0.8% | 0.9% | 0.8% |
Comparative periods have been restated for the sub-division of each share of 25p each into 10 new shares of 2.5p each, approved at the AGM held on 18 July 2023 and effective on 27 July 2023.
* Source: Morningstar
^ Alternative Performance Measure (see Glossary).
STATEMENT FROM THE CHAIR
“Net asset value per share total return during the year was -10.3%. Long-term returns remain strong, at +13.4% pa since the Company’s inception”
INVESTMENT PERFORMANCE
In this, the 30th year since Worldwide Healthcare Trust’s inception, I am pleased to present your Company’s Annual Report and Financial Statements for the year ended 31 March 2025.
Stock market volatility, driven by macro events, was again a hallmark of the financial year under review. From an investment performance perspective, this resulted in a frustrating year for the global healthcare sector and the Company. Strong market gains in the first part of the financial year were given up by broad declines leading up to the end of 2024. There was then a sharp sell-off in the first quarter of calendar 2025, driven by a combination of factors, including escalating trade tensions and a slowing global economy.
The earlier environment in 2024 was positive for our Portfolio Manager’s strategy. However, there was then a broad shift in investor sentiment, which favoured a more defensive investment approach. As a result, both the Company’s absolute and relative performance suffered during the latter part of the financial year, more than offsetting the strong early returns by year end.
Against this backdrop, the Company’s net asset value per share total return in the financial year was -10.3% (2024: +12.0%). In comparison, our Benchmark, the MSCI World Health Care Index, measured on a net total return, sterling adjusted basis, returned -3.2% (2024: +10.9%).
The Company’s share price total return during the year was -10.5% (2023: +8.6%). The small disparity between the performance of the Company’s net asset value per share and its share price contributed to the slight widening of our share price discount to our net asset value per share from 12.1% at 31 March 2024 to 12.4% at 31 March 2025.
Amongst the healthcare sectors that the Company invests in, the principal positive contributor to our performance was the Healthcare Equipment & Supplies (‘Medtech’) sector. It was largely spared from negative, industry-specific regulatory changes and was only modestly impacted by broad country tariffs. In contrast, the therapeutics sector, specifically biotechnology, was more negatively impacted by the same macro headwinds as well as higher than expected interest rates worldwide.
The last several years have been difficult for the global healthcare sector and the Company, with the sector having underperformed the broader markets and the Company having underperformed our Benchmark on a five-year view. As you would expect, the Board is not content with this situation. We have been spending considerable time with our Portfolio Manager challenging and re-confirming our commitment to the Company’s investment strategy (see ‘Outlook’ below).
Nonetheless, our long-term performance continues to be strong. From the Company’s inception 30 years ago in 1995 to the end of the financial year, the total return of our net asset value per share has been +4,254%, equivalent to a compound annual return of +13.4%. This compares to a cumulative blended Benchmark return of +2,354% and a compound annual return of +11.3% over the same period.
Further information on the healthcare sector, the Company’s investments and performance during the year can be found in the Portfolio Manager’s Review.
CAPITAL
Since the beginning of 2022, and for a variety of reasons, share price discounts across the investment company sector in the UK have widened. As of 9 June 2025, the average level of discount in the broader sector stands at c. 14.6%*. This compares to the Company’s share price discount of 6.3%.
It is the Board’s policy to buy back our shares if the Company’s share price discount to the net asset value per share exceeds 6% on an ongoing basis. Shareholders should note, however, that it remains possible for the discount to be greater than this for extended periods of time, particularly when sentiment towards investment trusts generally, the healthcare sector and/or the Company remains poor. In such an environment, buybacks may prove unable to sustainably narrow the discount. Nonetheless, even in such an environment, the Board believes that buybacks are important, as they enhance the net asset value per share for remaining shareholders and go some way to dampening discount volatility.
* Source: Winterflood
The Company’s commitment to its share buyback policy is demonstrated by the fact that we have one of the most active buyback programmes in the investment trust sector. During the financial year, a total of 51,310,528 shares were repurchased for treasury at a cost of £176.5m and at an average discount of 10.8%. The shares repurchased during the year equated to 9.4% of the Company’s share capital at the beginning of the year.
At 31 March 2025, the Company had 494,631,804 shares in issue, excluding the 107,033,396 shares held in treasury.
From the beginning of the new financial year to 9 June 2025, a further 11,291,577 shares have been bought back for treasury, at a cost of £33.2m and at an average discount of 9.7%. As stated above, our share price discount since year end has narrowed to 6.3%.
I confirm that all shares held in treasury will continue to be held for re-issue at a premium to the net asset value per share.
A summary of the Board’s and the Company’s advisers’ activities during the year, including buyback and marketing activities, is provided on page 7 of this Annual Report.
REVENUE AND DIVIDEND
Shareholders will be aware that it remains the Company’s investment policy to pursue capital growth for shareholders and to pay dividends at least to the extent required to maintain investment trust status. Therefore, the level of dividends declared can go down as well as up. An unchanged interim dividend of 0.7p per share for the year ended 31 March 2025 was paid on 9 January 2025 to shareholders on the register on 29 November 2024.
The Company’s net revenue for the year as a whole decreased to £16.1m from £19.7m. This was due largely to a decrease in exposure to higher yielding stocks in the portfolio as well as a reduction in the size of the portfolio due to shares being bought back by the Company during the year. As a result, the revenue return per share was 2.4p (2024: 2.7p per share).
Accordingly, the Board is proposing a slightly reduced final dividend for the year of 1.7p per share (2024: 2.1p per share). Together with the interim dividend already paid, this makes a total dividend for the year of 2.4p per share (2024: 2.8p per share).
The effect of share buybacks means that the reported dividend per share, which is based on the number of shares in issue at the end of the financial year, is higher than the reported revenue return per share, which is based on the average number of shares in issue over the year.
Based on the closing mid-market share price of 302.0p on 9 June 2025, the total dividend payment for the year represents a current yield of 0.8%.
The final dividend will be payable, subject to shareholder approval, on 23 July 2025, to shareholders on the register of members on 13 June 2025. The associated ex-dividend date will be 12 June 2025.
The Company’s dividend policy, which is set out on page 29 of this Annual Report, will be proposed for approval at the forthcoming Annual General Meeting.
BOARD OF DIRECTORS
As I mentioned in my statement at the Company’s half year, the Board appointed two new Directors at the beginning of October. Both Sian Hansen and William Hemmings have begun to make material contributions to the Board’s deliberations.
In July 2022, the Board asked me to extend my term on the Board for a period of three to five years by taking on the role of Board Chair. This was in order to oversee the renewal of the Board, including the retirement and replacement of all but one of the then Directors as well as changing the composition and leadership of all of the Board’s Committees.
Given the good progress being made, I will be retiring from the Board at the conclusion of the Annual General Meeting to be held in July 2026.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
ESG matters continue to be an important priority for the Board. Our objective is to have full, transparent disclosure on the topic. Our Senior Independent Director, Bina Rawal, works closely with our Portfolio Manager on this matter.
Our Portfolio Manager remains committed to taking a leading role in the development of meaningful ESG engagement practices in the healthcare sector. As part of this, they facilitate dialogue and an exchange of leading practices among investors, companies and other relevant experts on ESG, in particular, the large capitalisation pharmaceutical sector. They also engage with a broad range of companies on a regular basis about where areas for improvement can be identified. Further information on both ESG matters and climate change can be found in the Portfolio Manager’s ESG report.
PERFORMANCE FEE
There is currently no provision within the Company’s NAV for the payment of a performance fee at a future calculation date. I would highlight that earning a performance fee is difficult for our Portfolio Manager and is dependent on the long-term outperformance of the Company. Any outperformance has to be maintained for 12 months after the relevant calculation date and only becomes payable to the extent that the outperformance gives rise to a total fee greater than the total of all performance fees paid to date. This ensures that a performance fee is not payable for any outperformance that contributes to the recovery of prior underperformance.
INVESTMENT GUIDELINES
The Board made a minor change to the Company’s investment guidelines during the year. Previously, the Company could invest a maximum of 30% of the portfolio, at the time of acquisition, in companies in the Medtech sector. Given the increasing importance of the sector, we raised the limit to 40% of the portfolio, as at the time of acquisition. As this amendment was not considered to be material, the Board was advised that shareholder approval would not be required prior to making this amendment.
ANNUAL GENERAL MEETING
The Company’s AGM will again be held at Saddlers’ Hall, 40 Gutter Lane, London EC2V 6BR on Wednesday, 9 July 2025 from 12.30pm. In addition to the formal proceedings, there will be an opportunity to meet the Board and the Portfolio Manager and to receive an update on the Company’s strategy. We look forward to seeing as many of you as possible there.
For those investors who are not able to attend the meeting in person, a video recording of the Portfolio Manager’s presentation will be uploaded to the website after the meeting. Shareholders can submit questions in advance by sending them to [email protected].
I encourage all shareholders to exercise their right to vote at the AGM and to register your votes online in advance of the meeting. Registering your vote in advance will not restrict you from attending and voting at the meeting in person should you wish to do so. The votes on the resolutions to be proposed at the AGM will again be conducted on a poll. The results of the proxy votes will be published following the conclusion of the AGM by way of a stock exchange announcement and will also be able to be viewed on the Company’s website at www.worldwidewh.com.
OUTLOOK
While global macroeconomic and geopolitical conditions continue to be challenging and buffeting stock market indices, your Board believes that the fundamentals of the healthcare sector remain strong. As frustrating as the past few years have been, the fundamentals of the sector will be reflected in share prices over time.
As highlighted in our Portfolio Manager’s recent “Next 30 Years” presentation, the Board and our Portfolio Manager remain positive about the outlook for the healthcare sector for many reasons. For example, the overall level of new product approvals remains high and is delivering significant levels of quality medicines for patients. Advancements in areas such as genetic engineering, personalised medicine and synthetic biology are also generating a strong future pipeline of innovative new therapies and treatments. In addition, Artificial Intelligence (AI) and machine learning are beginning to have a positive impact on all aspects of the industry.
All of these advancements are underpinned by global demographic trends, which are driving demand for new healthcare solutions, particularly in areas such as cancer treatment, chronic disease management and age-related health issues.
In this sector context, the Board is confident in our Portfolio Manager’s successful long-term investment strategy of focusing on innovation and growth opportunities and believes that the Company will continue to generate attractive long-term returns for shareholders.
Doug McCutcheon
Board Chair, Worldwide Healthcare Trust
10 June 2025
