Half-yearly Financial Report

 LEI: 549300K1D1P23R8U4U50

 

Artemis UK Future Leaders plc

(the “Company”)

 

Half-Yearly Financial Report

 

The following text is extracted from the Half-Yearly Financial Report of the Company for the half year ended 31 July 2026. All page numbers below refer to the Half-Yearly Financial Report which will be made available on the Company's website:

www.artemisfunds.com/futureleaders

 

A copy of the Half-Yearly Financial Report will also be submitted to the National Storage Mechanism and will shortly be available for inspection online at:

 

https://data.fca.org.uk/#/nsm/nationalstoragemechanism

 

Investment Objective

The investment objective of the Company is to achieve long-term total returns for shareholders primarily by actively investing in a broad cross-section of small to medium sized UK quoted companies. The Company’s shares qualify to be considered as a mainstream investment product suitable for promotion to retail investors and are eligible for investment in an ISA.

Financial Information and Performance Statistics

Total Return Statistics

(with dividends reinvested)

	For Six	For Year
	Months to	Ended
	31 July	31 January
	2026	2026
Net asset value (NAV) total return (1)(2)	+1.6	0.0
Share price total return(1)(2)	+2.1	+7.1
Benchmark Index(2)(3)	+0.9	+16.1

 

					Since
Total returns as at 31 July 2026	1 year	3 years	5 years	10 years	appointment
Net asset value per ordinary share	0.5%	2.1%	(24.4)%	58.1%	9.7%
Ordinary share price	5.2%	4.4%	(24.0)%	55.1%	14.4%
Deutsche Numis Smaller Companies
plus AIM (Excl. Inv-Trust)	9.8%	27.5%	2.2%	74.3%	24.6%

 

Source: Artemis/Lipper.

Capital Statistics

	At	At
Period End Date	31 July 2026	31 January 2026	Change
Total shareholders’ funds (£’000)	124,890	129,385	(3.5)%
Net asset value (‘NAV’) per share	429.41p	434.66p	(1.2)%
Share price(2)	385.50p	386.00p	(0.1)%
Discount(1)	(10.2)%	(11.2)%
Gearing(1)
– gross gearing	8.0%	8.6%
– net gearing	7.3%	8.2%
– net cash	nil	nil
Maximum authorised gearing	20.0%	19.3%
	Six months ended	Year ended
Return and dividend per ordinary share	31 July 2026	31 January 2026
Return(1)
– revenue	7.09p	12.37p
– capital	(2.50)p	(13.81)p
– Total	4.59p	(1.44)p
First interim dividend	3.85p	3.85p

 

(1) Alternative Performance Measures (‘APM’). See pages 27 to 29 for the explanation and calculation of APMs. Further details are provided in the Glossary of Terms and Alternative Performance Measures in the Company’s 2026 Annual Financial Report.

(2) Source: LSEG Data & Analytics.

(3) The benchmark index of the Company is the Deutsche Numis Smaller Companies plus AIM (Excl. Inv-Trust) Index with dividends reinvested.

 

Chairman’s statement

Dear shareholders,

I am writing to report the results for the six months ended 31 July 2026.

In what was a mixed period for UK smaller companies, Artemis UK Future Leaders plc’s net asset value (NAV), with dividends included, rose 1.6% in the six months ended 31 July 2026, compared with a gain of 0.9% from its Deutsche Numis Smaller Companies plus AIM benchmark(1). The most recent quarter was more encouraging. Over the three months ended 31 July 2026, the NAV grew by 10.1% compared to a return of 5.8% for the benchmark. The share price rose 2.1% in the six months ended 31 July 2026. Over the three months ended 31 July 2026 it rose by 14.8%.

A comprehensive review of Artemis’ strategy, performance and outlook is set out in the Investment Managers’ Report.

Dividends and dividend policy

Our dividend policy remains unchanged: to distribute all available revenue income in the form of quarterly dividends, supplemented, as necessary, by realised capital reserves. The policy target is a 4% dividend yield (based on the year-end share price) for the year ending 31 January 2027, subject to normal circumstances.

A first interim dividend for the year ending 31 January 2027 of 3.85 pence per share was paid in August. A second interim dividend of 3.85 pence per share will be paid in November. The Board remains committed to maintaining alignment with the stated yield target.

Update on Investment Manager

Anna Pugh joined Artemis’ UK smaller companies team as an analyst in May 2026. Anna, who has 11 years’ experience, joined from River Global Investors, where she worked on UK small-cap and micro-cap strategies. The Board welcomes this addition to the team and is encouraged by Artemis’ continued commitment to further strengthening its UK smaller companies capability at what we believe is an important stage in the cycle for the asset class.

Mark Niznik and William Tamworth have been working together since 2015 and continue to manage the portfolio.

Over the past six months Mark, William and Anna have all increased their personal investments in Artemis UK Future Leaders and since their appointment have collectively bought 868,000 shares in the Company. This is a demonstration of their confidence in the outlook and also ensures their interests are aligned with other shareholders.

Outlook

Despite periods of volatility and ongoing political uncertainty, the backdrop for UK smaller companies is positive. Valuations remain very attractive relative to both larger companies and international peers. While the UK economic outlook appears sluggish but stable, resilient corporate fundamentals, increased M&A activity and a growing willingness among company boards to return capital to shareholders provide additional reasons for cautious optimism. After a prolonged period of underperformance, there are early signs that UK smaller companies are beginning to regain ground relative to larger companies. Geopolitical uncertainty, and the potential implications for energy prices, inflation and investor sentiment, remains an important risk for UK small caps.

Against this backdrop, the Board believes these conditions continue to offer an attractive opportunity for long-term investors in the Company.

Conclusion

The Board continues to have confidence in the Investment Manager’s disciplined approach of investing in companies with strong cash generation, robust balance sheets and attractive valuations. We believe these characteristics should provide resilience while allowing shareholders to participate in the long-term potential of UK smaller companies.

On behalf of the Board, I would like to thank shareholders for their continued support. We remain committed to clear and transparent communication and I look forward to updating you again in the Annual Report.

 

Bridget Guerin

Chairman

12 October 2026

 

Investment Managers’ report

Mark Niznik

Mark has managed Artemis‘ ‘UK smaller companies’ strategy since joining the firm in 2007. He started his investment career in 1985 and has worked at firms including Invesco Perpetual and Standard Life.

William Tamworth

William works alongside Mark in managing Artemis’ ‘UK smaller companies’ strategy. Prior to joining Artemis in 2015, William worked at Liberum and Citigroup where he analysed small and mid-cap companies.

Anna Pugh

Anna joined Artemis in 2026 as an analyst on the ‘UK smaller companies’ strategy. Before joining Artemis, she spent eight years at River Global Investors, working on their small-cap and micro-cap strategies. She has also been a product specialist at Neptune Investment Management.

Strengthening the team

Anna Pugh joined Artemis’ UK smaller companies team as an analyst in May. Anna, who has 11 years’ experience, previously worked at River Global Investors, where she focused on UK small-cap and micro-cap strategies. She has a first-class degree in economics from the University of Bath and is a CFA charterholder.

Mark Niznik and William Tamworth have been working together since 2015 and continue to manage the portfolio.

Performance

Artemis UK Future Leaders plc’s net asset value (NAV), including dividends, rose 1.6% in the six months to the end of July 2026, compared with gains of 0.9% from its Deutsche Numis Smaller Companies plus AIM (Excl. Inv-Trust) benchmark(1). The most recent quarter was more encouraging. Over the past three months, the NAV grew by 10.1% compared to a return of 5.8% for the benchmark.

Our performance over the past year has been poor. Crucially, however, this has been driven by a relative de-rating in the shares of the companies we invest in – their earnings have remained resilient. We believe the trust’s holdings are undervalued relative to the wider UK smaller companies market (which is itself undervalued relative to UK large caps).

 

(1) Artemis/Lipper Limited.

Positives

	Average
Top 10 Contributors	Weight %	Return %	Impact %
Moonpig	3.0	29.0	0.7
Young & Co’s Brewery	2.4	28.4	0.5
Mears	3.0	20.4	0.5
Halfords	1.5	61.4	0.5
Vistry	0.0	-56.1	0.5
Keller	1.6	74.0	0.5
PZ Cussons	1.3	40.6	0.4
Severfield	1.2	38.9	0.4
MONY	3.1	13.8	0.4
discoverIE	1.8	23.3	0.4

Source: FactSet

Note: performance period 1 February 2026 to 31 July 2026; bold indicates stocks that were owned in the period.

Online card and gift retailer Moonpig saw increased sales and beat profit expectations in the 12 months to the end of April. Our first meeting with newly appointed chief executive Catherine Faiers was positive.

Pub chain Young & Co’s delivered robust results for the last financial year and reported a strong start to this one, boosted by the warm weather.

Mears has consistently increased its earnings expectations since 2022: this has continued into 2026 with strong underlying trading, new contract wins and a boost from share buybacks.

Halfords saw a 10% earnings upgrade in June on the back of strong sales growth and higher margins.

Second-quarter results at geotechnical contractor Keller were ahead of management expectations, prompting an upgrade to full-year revenue and earnings expectations. The strength was driven by excellent performance in North America (infrastructure projects and data centres) which accounts for more than 70% of group profits.

Consumer goods company PZ Cussons saw growth across each of its four primary markets with upgraded expectations for operating profit (albeit these have not translated through to earnings per share due to a higher tax rate and a higher minority charge). Earnings forecasts look cautiously set.

The new chief executive and chief financial officer at steelwork company Severfield are starting to gain credibility despite challenging end markets. With balance sheet concerns easing, the market is looking forward to the recovery potential of earnings.

Shares in MONY, the owner of price-comparison websites such as MoneySuperMarket, had fallen in February on concerns that AI would disrupt its business model. First-half results – where management reiterated full-year expectations – helped to reassure investors. MONY is expected to end the year with no net debt and we see the shares as being underpinned by continued strength in free cash flow.

Electronic components manufacturer discoverIE announced that full-year adjusted earnings were likely to be ahead of expectations.

Negatives

	Average
Top 10 Detractors	Weight %	Return %	Impact %
LBG Media	0.8	–60.0	–0.8
Telecom Plus	2.2	–36.0	–0.8
Future	1.2	–43.5	–0.7
DFS Furniture	1.5	–27.6	–0.5
MJ Gleeson	1.2	–28.7	–0.4
CMC Markets	0.0	108.2	–0.4
Serco	2.0	–18.8	–0.4
AB Dynamics	0.3	–29.1	–0.4
Tate & Lyle	0.0	50.6	–0.3
GlobalData	1.4	–23.8	–0.3

 

Source: FactSet

Note: performance period 1 February 2026 to 31 July 2026; bold indicates stocks that were owned in the period.

While first-half revenues at LBG Media (LADbible) grew strongly, there was a rapid shift away from high-margin Facebook revenues and towards lower-margin direct ones. The speed of change prompted a downgrade to expectations, but reducing its dependence on Facebook should ultimately improve the quality of LBG’s earnings.

In response to growing competition in the energy and broadband markets, the management of Telecom Plus cut prices as it sought to increase the number of customers who use more than one of its services (consumers who use multiple products are more valuable and stay for longer than those who only take one). This led to a 40% cut in earnings expectations.

Specialist media company Future (which owns brands such as TechRadar, Tom’s Guide and GoCompare) is having to rapidly adapt as AI summaries cannibalise traditional search. There is no single solution to this threat, but the company’s publications are already well cited by LLMs (large language models), and we think management’s approach of trialling many different initiatives is sensible. For example, Collab is a product that allows Gen Z social media entrepreneurs to create content on Future’s existing platform, while Signal offers heavily curated recommendations. It is also worth noting magazines remain a very profitable part of its business more than 20 years after widespread internet adoption. Although we acknowledge the risk from AI is high, the valuation implies this is a business near bankruptcy: a p/e ratio of 3x and a free cash flow yield of more than 25%.

Sofa retailer DFS saw weaker footfall in February (potentially weather-related) which deteriorated further in March (likely an early sign of the impact of the Iran conflict on consumer confidence). While the near-term outlook is challenging, the medium-term recovery potential is unchanged and, on this basis, DFS looks cheap.

Housebuilder MJ Gleeson issued a profit warning on the back of an anticipated land sale which failed to complete and continued weakness in the UK housing market.

Government contractor Serco fell despite positive interim results (operating profit up 8%). There is some uncertainty as to how Andy Burnham’s approach will affect UK government outsourcing (although Serco now makes a greater proportion of profit from North America than it does from the UK and Europe combined).

Shares in AB Dynamics, a provider of vehicle testing services, fell shortly after we started a new holding. Although we knew the high second-half weighting posed a risk for full-year profit expectations, it was nevertheless disappointing to see this risk materialise. In the short term, trading is being affected by weakness at European OEM (original equipment manufacturer) customers and disruption from the Middle East conflict. This does not change the medium-term growth potential which is underpinned by increased testing requirements.

Slower revenue growth has prompted further earnings downgrades at GlobalData.

Activity

Our five largest purchases in the period were all also new holdings: PZ Cussons, Tristel, AB Dynamics, Safestore and Keystone Law. We also added to NIOX, Victrex and discoverIE.

PZ Cussons is a branded consumer goods business focused on four main geographic markets (UK, Australia, Nigeria and Indonesia). It has market-leading positions in several of its niches – for example Cussons Baby in baby personal care in Indonesia. The business has a mixed record but we felt a 9% free cash flow yield was attractive given progress in addressing its historic issues, an increasingly strong balance sheet and cautious looking market expectations.

Tristel supplies chlorine dioxide for high-level disinfection of medical devices (for example ultrasound probes) in hospitals. Although the shares are not especially cheap (around a 5% free cash flow yield or 20x p/e), it has attractive financial characteristics. The company is growing revenues at greater than 10% a year (all organically) and makes an 82% gross margin, which drives strong earnings growth. It is in the early stages of entering the US market, which has the potential to transform its business.

AB Dynamics, a provider of vehicle testing services, aims to double revenues and triple profits over the medium term. We see this as credible given increasingly stringent Euro NCAP standards, which tend to be replicated around the world. Although trading has been challenging in the short term, we see the lower valuation as attractive given the longer-term growth prospects.

Safestore, a leading provider of self-storage across the UK and Paris, is a business whose shares Artemis last owned in 2018. Higher interest rates and subdued end markets have hit the business, with the impact compounded by its investment in new sites, which reduce profits for the first three years after opening. As these openings start to mature, and as the cycle turns, there is scope for significant earnings growth. This is not reflected in the valuation: on both a p/e and a p/b (price-to-book) basis it is at a decade low and is currently trading at a 50% discount to NAV. We have little direct property exposure elsewhere in the portfolio, so started a modest holding.

Keystone Law is a UK law firm that operates with a platform model (lawyers are self-employed and retain up to 75% of the revenues they generate with Keystone providing the infrastructure e.g. support, compliance, IT, finance, marketing). The company has generated strong growth by signing up more lawyers and the business model offers a very attractive return on capital (there is minimum capital employed) and cash generation (Keystone Law only pays the lawyers after it has been paid). Few businesses have stronger earnings momentum and trade on a lower valuation.

We sold out of Oxford Instruments with the shares having performed strongly and Morgan Advanced Materials after its share price rose despite persistent earnings downgrades. We took some profits in Secure Trust Bank, Mears, Halfords and Moonpig.

Outlook

We remain positive on the outlook. Recent macroeconomic data has been mostly supportive. Consumer confidence has risen to its highest level in two years. UK economic growth is the highest in the G7 so far this year. Employment remains near an all-time high despite some modest recent weakening. While risks remain from conflict in the Middle East, higher bond yields and a potential AI asset price bubble in the US, we think the low valuations and strong balance sheets of our holdings provide some protection.

Valuations on a different planet

There is currently plenty of talk of a bubble in equity markets, with Panmure Liberum noting the cyclically adjusted p/e (‘CAPE’) ratio for the S&P 500 is at its highest since the turn of the century. Meanwhile, SpaceX’s IPO valuation of approximately $2 trillion was equivalent to 100 times its historic sales.

This is on a different planet to UK small caps. Valuations of smaller companies are low relative to their own history. They are low relative to those of larger companies. And they are only a third of the level of companies in the US. Meanwhile, the dividend yield for the FTSE 250 has climbed above that of the FTSE 100 for the first time in more than 20 years.

Iran remains a risk

A prolonged war between Iran and the US represents the biggest near-term threat to UK small caps as it has the potential to impact inflation, interest (and mortgage) rate expectations and consumer confidence. If (or when) there is a likely resolution we would expect that to be a positive catalyst for UK small caps. Halfords offers a useful example of what can happen when a stock in an unloved area of the market does better (or less badly) than expected: a 10% earnings upgrade in June prompted a 30% increase in its share price. Despite the continuing Middle East conflict and the inflationary consequences of $100 oil, UK consumer confidence has hit a two-year high and our consumer related holdings (where we are overweight) have generally seen resilient trading (e.g. Greggs, Youngs, DFS, Wickes).

Political uncertainty remains, but may be overstated

Andy Burnham and the upcoming budget add another layer of uncertainty, as rising gilt yields globally restrict the headroom for the new Government to deliver growth initiatives within the fiscal rules. However, the planned reintroduction of Help to Buy (or ‘Your First Home’) is early evidence that he is planning on also pursuing policies that stimulate economic growth.

More buybacks, pause in M&A has proven to be only temporary

A record number of the trust’s holdings bought back shares over the first half of 2026. We see this as evidence that their boards are: 1) taking a more positive view on the outlook; 2) believe they have surplus capital; and 3) see their shares as being materially undervalued.

There were no takeover bids for the companies in the portfolio during the first six months of the year but there have been three approaches since the period end: Gamma Communications, Harworth and Ashtead Technology have all received approaches. Given that the trust’s median holding trades on a free cash flow yield of 9%, offers double-digit earnings growth and is forecast to have no net debt, we believe further approaches are just a matter of time.

 

Mark Niznik, William Tamworth & Anna Pugh

Artemis Investment Management LLP

12 October 2026

 

Principal risks and uncertainties

The Directors confirm that they have carried out a robust assessment of the emerging and principal risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. Most of these risks are market related and are similar to those of other investment trusts investing primarily in listed markets. The Audit Committee reviews the Company’s risk control summary at each meeting, and as part of this process, gives consideration to identifying emerging risks. Emerging risks, such as evolving cyber threats, geopolitical tensions and climate related risks, have been considered during the period as part of the Directors’ assessment.

Principal Risk Description	Mitigating Procedures and Controls
Market (economic) risk Factors such as fluctuations in stock markets, interest rates and exchange rates are not under the control of the Board or the Portfolio Managers, but may give rise to high levels of volatility in the share prices of investee companies, as well as affecting the Company’s own share price and the discount to its NAV. The risk could be triggered by unfavourable developments globally and/or in one or more regions, contemporary examples being the market uncertainty in relation to the wider political developments in Ukraine, the Middle East and the worldwide tariffs implemented by the USA.	The Directors have assessed the market impact of the ongoing uncertainty from the unfavourable developments globally through regular discussions with the Portfolio Managers and the Corporate Broker. The Company’s current portfolio consists of companies listed on the main UK equity market and those listed on AIM. To a limited extent, futures can be used to mitigate against market (economic) risk, as can the judicious holding of cash or other very liquid assets. Futures are not currently being used.
Investment risk The Company invests in small and medium-sized companies traded on the London Stock Exchange or on AIM. By their nature, these are generally considered riskier than their larger counterparts and their share prices can be more volatile, with lower liquidity. In addition, as smaller companies may not generally have the financial strength, diversity and resources of larger companies, they may find it more difficult to overcome periods of economic slowdown or recession.	The Portfolio Managers seek to mitigate risk through holding an economically diversified portfolio without concentrated macroeconomic bets. UK Smaller Companies in aggregate earn approximately 60% of their revenues from the domestic UK economy so the portfolio will be sensitive to both the UK macroeconomic outlook and sentiment towards the UK. The Manager’s preference is to invest in companies with strong balance sheets and strong cash generation which should be relatively better positioned to withstand economic shocks. They like companies with market leading positions which tend to be better able to pass through price increases to mitigate cost inflation. The portfolio is constructed without reference to the benchmark. The weighting that a stock is given is a function of anticipated share price upside, the level of conviction and the riskiness of an investment. A single holding will typically not exceed 5% of the portfolio. The factor profile of the portfolio is also principally driven by bottom-up stock picking although our investment risk team generates factor analysis for the investment team to review on a regular basis. Sustainability analysis is a core part of stock analysis in both assessing the opportunities and risks facing companies over the medium to long term. The Manager identifies key ESG metrics for each company and tracks the disclosure and trend of these. Disclosures by companies in the investment universe can often be poor, so this is an area they engage on. The Portfolio Managers remain cognisant at all times of the potential liquidity of the portfolio. There can be no guarantee that the Company’s strategy and business model will be successful in achieving its investment objective. The Board monitors the performance of the Company, giving due consideration to how the Manager has incorporated ESG considerations including climate change into their investment process. The Board also has guidelines in place to ensure that the Managers adhere to the approved investment policy. The continuation of the Manager’s mandate is reviewed annually.
Shareholders’ risk The value of an investment in the Company may go down as well as up and an investor may not get back the amount invested. In addition, the Company operates within the UK investment trust sector, which has recently experienced increased levels of shareholder activism and other forms of corporate activity targeting listed investment companies. Such activity could create uncertainty regarding the Company’s future, increased costs and management distraction, and may result in corporate actions that do not align with the long-term interests of all shareholders.	The Board regularly reviews the Company’s investment objective and strategy to ensure they remain appropriate. It also monitors the composition of the shareholder register, peer group performance on both a share price and NAV basis, and the Company’s share price discount to NAV per share. The Board and the Portfolio Managers maintain an active dialogue with shareholders and other stakeholders, seeking to ensure that the market rating of the Company’s shares reflects the underlying NAV and to understand investor concerns at an early stage. Share buyback and issuance authorities are in place to support the management of the discount and premium as appropriate. The Board remains alert to the potential for shareholder activism and is prepared to respond as necessary, with a focus on protecting the long-term interests of all shareholders.
Reliance on the Manager and other third-party service providers The Company has no employees and the Board comprises non-executive directors only. The Company is therefore reliant upon the performance of third-party service providers for its executive function and service provisions. The Company’s operational structure means that all cyber risk (information and physical security) arises at its third-party service providers, including the risk of fraud, sabotage or crime against the Company. The Company’s operational capability relies upon the ability of its third-party service providers to continue working throughout the disruption caused by a major event such as the Covid-19 pandemic. Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment could have a materially detrimental impact on the operation of the Company and could affect the ability of the Company to successfully pursue its investment policy. The Company’s main service providers, of which the Manager is the principal provider, are listed on page 31. The Manager may be exposed to reputational risks. In particular, the Manager may be exposed to the risk that litigation, misconduct, operational failures, negative publicity and press speculation, whether or not it is valid, will harm its reputation. Damage to the reputation of the Manager could potentially result in counterparties and third parties being unwilling to deal with the Manager and by extension the Company, which carries the Manager’s name. This could have an adverse impact on the ability of the Company to pursue its investment policy successfully.	Third-party service providers are subject to ongoing monitoring by the Manager and the Board. The Manager reviews the performance of all third-party providers regularly through formal and informal meetings. The Audit Committee reviews regularly the performance and internal controls of the Manager and all third-party providers through audited service organisation control reports together with updates on information security, the results of which are reported to the Board. The Manager’s business continuity plans are reviewed on an ongoing basis and the Directors are satisfied that the Manager has in place robust plans and infrastructure to minimise the impact on its operations so that the Company can continue to trade, meet regulatory obligations, report and meet shareholder requirements. The Board receives regular update reports from the Manager and third-party service providers on business continuity processes and has been provided with assurance from them all insofar as possible that measures are in place for them to continue to provide contracted services to the Company.
Regulatory risk The Company is subject to various laws and regulations by virtue of its status as an investment trust, its listing on the London Stock Exchange and being an Alternative Investment Fund under the UK AIFMD regime. A loss of investment trust status could lead to the Company being subject to corporation tax on the chargeable capital gains arising on the sale of its investments. Other control failures, either by the Manager or any other of the Company’s service providers, could result in operational or reputational problems, erroneous disclosures or loss of assets through fraud, as well as breaches of regulations.	The Manager reviews the level of compliance with tax and other financial regulatory requirements on a regular basis. The Board regularly considers all risks, the measures in place to control them and the possibility of any other risks that could arise. The Manager’s Risk and Compliance function produces annual reports for review by the Company’s Audit Committee. Further details of risks and risk management policies as they relate to the financial assets and liabilities of the Company are detailed in note 16 of the last Annual Financial Report for the year ended 31 January 2026.

 

Portfolio of investments

At 31 July 2026
		Market Value	Portfolio^	Exposure*
Company	Sector	£’000	£’000	%
MONY Group	Software and Computer Services	3,876	4,197	3.2
Moonpig Group	Retailers	3,337	3,505	2.7
Restoreᴬᴵᴹ	Industrial Support Services	3,154	3,155	2.5
Young & Co’s Brewery
– Non-Voting	Travel and Leisure	3,005	3,006	2.4
discoverIE Group	Electronic and Electrical Equipment	2,959	2,959	2.4
GB Group	Software and Computer Services	2,939	3,601	2.4
NIOX Groupᴬᴵᴹ	Medical Equipment and Services	2,820	2,820	2.3
Mears Group	Industrial Support Services	2,780	2,780	2.2
4imprint Group	Media	2,671	2,900	2.1
Victorian Plumbing Groupᴬᴵᴹ	Retailers	2,642	2,642	2.1
IntegraFin Holdings	Investment Banking and Brokerage Services	2,585	3,664	2.1
Coats Group	General Industrials	2,582	2,582	2.1
PZ Cussons	Personal Goods	2,531	2,531	2.0
Hollywood Bowl Group	Travel and Leisure	2,493	2,493	2.0
Secure Trust Bank	Banks	2,346	2,346	1.9
Gamma Communications	Telecommunications Service Providers	2,319	2,918	1.9
Kainos Group	Software and Computer Services	2,299	2,299	1.8
Morgan Sindall Group	Construction and Materials	2,297	2,297	1.8
NCC Group	Software and Computer Services	2,287	3,297	1.8
Next 15 Groupᴬᴵᴹ	Media	2,278	2,278	1.8
Top twenty investments		54,200	58,270	43.5
Wilmington	Media	2,250	2,970	1.8
Tatton Asset Managementᴬᴵᴹ	Investment Banking and Brokerage Services	2,220	2,220	1.8
RWSᴬᴵᴹ	Industrial Support Services	2,217	2,217	1.8
YouGovᴬᴵᴹ	Media	2,157	2,157	1.7
Victrex	Chemicals	2,138	2,404	1.7
Science Groupᴬᴵᴹ	Industrial Support Services	2,135	2,135	1.7
Brooks Macdonald Group	Investment Banking and Brokerage Services	2,125	2,125	1.7
On the Beach Group	Travel and Leisure	2,083	2,083	1.7
Avon Technologies	Aerospace and Defence	2,068	2,068	1.7
Hilton Food Group	Food Producers	2,045	2,045	1.6
TT Electronics	Technology Hardware and Equipment	2,029	2,029	1.6
Serco Group	Industrial Support Services	1,963	2,131	1.6
Halfords Group	Retailers	1,932	1,932	1.6
Severfield	Construction and Materials	1,922	1,922	1.5
Dunelm Group	Retailers	1,920	1,920	1.5
Netcallᴬᴵᴹ	Software and Computer Services	1,913	1,913	1.5
Keller Group	Construction and Materials	1,895	1,895	1.5
Energean	Oil, Gas and Coal	1,845	1,845	1.5
Tristelᴬᴵᴹ	Health Care Equipment and Supplies	1,840	1,840	1.5
Ashtead Technology	Oil, Gas and Coal	1,820	1,820	1.5
Top forty investments		94,717	99,941	76.0
Workspace Group	Real Estate Investment Trusts	1,789	1,789	1.4
DFS Furniture	Retailers	1,742	1,742	1.4
Chemring Group	Aerospace and Defence	1,712	1,712	1.4
Jadestone Energyᴬᴵᴹ	Oil, Gas and Coal	1,629	1,629	1.3
Wickes Group	Retailers	1,565	1,565	1.3
GlobalData	Industrial Support Services	1,519	1,519	1.2
MJ Gleeson	Household Goods and Home Construction	1,423	1,423	1.1
Greggs	Personal Care, Drug and Grocery Stores	1,392	1,392	1.1
Johnson Service Group	Industrial Support Services	1,357	1,357	1.1
Norcros	Construction and Materials	1,277	2,352	1.0
Keystone Lawᴬᴵᴹ	Commercial & Professional Services	1,206	1,206	1.0
J D Wetherspoon	Travel and Leisure	1,199	1,199	1.0
Telecom Plus	Electricity	1,150	1,174	0.9
AB Dynamicsᴬᴵᴹ	Automobiles and Components	1,085	1,085	0.9
M&C Saatchiᴬᴵᴹ	Media	1,056	1,056	0.8
Henry Boot	Real Estate Investment and Services	978	1,438	0.8
Accesso Technology Groupᴬᴵᴹ	Software and Computer Services	948	948	0.8
Beeks Financial Cloud
Groupᴬᴵᴹ	Software and Computer Services	923	923	0.7
Safestore Holdings	Real Estate Investment and Services	859	1,485	0.7
Bloomsbury Publishing	Media	832	1,970	0.7
Top sixty investments		120,358	128,905	96.6
Warpaint Londonᴬᴵᴹ	Personal Goods	784	784	0.6
LBG Mediaᴬᴵᴹ	Media	711	711	0.6
CLS	Real Estate Investment and Services	709	709	0.6
SIG	Industrial Support Services	630	630	0.5
Future	Media	621	1,258	0.5
FDM Group	Industrial Support Services	514	514	0.4
Harworth Group	Real Estate Investment and Services	303	1,292	0.2
Total Investments: 67 (31 January 2026: 65)		124,630	134,803	100.0

 

Ordinary shares unless stated otherwise.

* The Portfolio Exposure indicates the impact on market price movements resulting from the ownership of shares and derivative instruments. The Market Value represents the fair value of the portfolio, which is reflected on the Condensed Balance Sheet. In the case of holding a Contract for Difference (CFD), the Market Value reflects the profit or loss generated by the contract since its inception, based on the movement of the underlying share price. CFDs provide investors with the benefits and risks of owning a security without actually owning it. There is no delivery of physical goods or securities, which means that CFDs are generally regarded as an easier method of settlement because losses and gains are paid in cash. CFDs are disclosed in Derivative assets/liabilities at market value in the Condensed Balance Sheet on page 21. However, when the Company solely holds shares, both the Market Value and the Portfolio Exposure align.

AIM  Investments quoted on AIM.

^  Includes CFD position.

 

Governance

Going Concern

The financial statements have been prepared on a going concern basis. The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements.

The Board is therefore satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are considered to be readily realisable and is able to meet all of its liabilities from its assets and income generated from them.

Related Party Transactions and Transactions with the Manager

Note 20 of the Company’s 2026 Annual Financial Report gives details of related party transactions and transactions with the Manager. This report is available on the Company’s section of the Manager’s website at www.artemisfunds.com/futureleaders.

Directors’ Responsibility Statement in respect of the preparation of the Half-Yearly Financial Report

The Directors are responsible for preparing the Half-Yearly Financial Report using accounting policies consistent with applicable law and International Financial Reporting Standards.

The Directors confirm that to the best of their knowledge:

– the condensed set of financial statements contained within the Half-Yearly Financial Report has been prepared in accordance with the UK-adopted International Accounting Standard 34 ‘Interim Financial Reporting’;

– the interim management report, together with the Chairman’s Statement and Investment Managers’ Report, includes a fair review of the information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure Guidance and Transparency Rules; and

– the interim management report includes a fair review of the information required on related party transactions.

The Half-Yearly Financial Report has not been audited or reviewed by the Company’s auditor.

Signed on behalf of the Board of Directors.

 

Bridget Guerin

Chairman

12 October 2026

 

Condensed statement of comprehensive income

		Six months ended			Six months ended
		31 July 2026			31 July 2025
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£’000	£’000	£’000	£’000	£’000	£’000
Profit/(loss) on investments held at fair value		–	352	352	–	(498)	(498)
Income	2	2,486	–	2,486	2,381	–	2,381
Net (losses)/gains on derivatives		–	(610)	(610)	–	255	255
Investment management fee	3	(53)	(299)	(352)	(15)	(359)	(374)
Other expenses		(315)	–	(315)	(263)	(1)	(264)
Profit/(loss) before finance costs and taxation		2,118	(557)	1,561	2,103	(603)	1,500
Finance costs	3	(32)	(178)	(210)	(7)	(44)	(51)
Profit/(loss) before taxation		2,086	(735)	1,351	2,096	(647)	1,449
Taxation	4	–	–	–	–	–	–
Profit/(loss) after taxation		2,086	(735)	1,351	2,096	(647)	1,449
Return/(loss) per ordinary share		7.09p	(2.50)p	4.59p	6.90p	(2.13)p	4.77p
Weighted average number of ordinary shares in
issue during the period				29,433,910			30,373,362

 

The total columns of this statement represent the Company’s statement of comprehensive income, prepared in accordance with UK-adopted international accounting standards. The profit/(loss) after taxation is the total comprehensive income/(loss). The supplementary revenue and capital columns are both prepared in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies. All items in the above statement derive from continuing operations of the Company. No operations were acquired or discontinued in the period.

 

Condensed statement of changes in equity

	Six months ended 31 July 2026 (unaudited)
			Capital
	Share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserve	reserve	Total
	£’000	£’000	£’000	£’000	£’000	£’000
At 31 January 2026	9,965	22,366	4,063	91,578	1,413	129,385
Total comprehensive (loss)/income for the period	–	–	–	(735)	2,086	1,351
Shares bought back and held in treasury	–	–	–	(2,437)	–	(2,437)
Dividends declared and paid	–	–	–	(875)	(2,534)	(3,409)
At 31 July 2026	9,965	22,366	4,063	87,531	965	124,890
	Six months ended 31 July 2025 (unaudited)
			Capital
	Share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserve	reserve	Total
	£’000	£’000	£’000	£’000	£’000	£’000
At 31 January 2025	9,965	22,366	4,063	98,470	1,780	136,644
Total comprehensive (loss)/income for the period	–	–	–	(647)	2,096	1,449
Dividends declared and paid	–	–	–	(1,607)	(1,780)	(3,387)
At 31 July 2025	9,965	22,366	4,063	96,216	2,096	134,706

 

Condensed balance sheet

		31 July	31 January
		2026	2026
	Notes	£’000	£’000
Non-current assets
Investments held at fair value through profit or loss		124,804	128,586
Current assets
Amounts due from brokers		198	135
Prepayments and accrued income		484	553
Cash and cash equivalents		888	497
Variation margin receivable		817	90
Derivative assets		10	39
		2,397	1,314
Total assets		127,201	129,900
Current liabilities
Accruals		(235)	(322)
Dividends payable		(1,121)	–
Payable for purchase of treasury shares		(17)	–
Collateral pledged		(710)	–
Variation margin payable		(44)	–
Derivative liabilities		(184)	(193)
		(2,311)	(515)
Total assets less current liabilities		124,890	129,385
Net assets		124,890	129,385
Capital and reserves
Share capital		9,965	9,965
Share premium		22,366	22,366
Capital redemption reserve		4,063	4,063
Capital reserve		87,531	91,578
Revenue reserve		965	1,413
Total shareholders’ funds		124,890	129,385
Net asset value per ordinary share		429.41p	434.66p
Number of ordinary shares in issue at the period/year end	6	29,084,015	29,766,693

 

Bridget Guerin

Chairman

12 October 2026

Condensed statement of cash flows

		Six months	Six months
		ended	ended
		31 July	31 July
		2026	2025
	Notes	£’000	£’000
Cash flow from operating activities
Profit before taxation		1,351	1,449
Finance costs		210	51
Adjustments for:
Purchases of investments		(12,855)	(72,708)
Sales of investments		16,927	83,169
Net loss on derivative transactions		610	–
Settlement of derivative transactions		(590)	(43)
Collateral pledged		710	–
		4,802	10,418
(Profit)/loss on investments held at fair value		(352)	498
Increase in receivables		(659)	(77)
Decrease in payables		(26)	(98)
Net cash inflow from operating activities		5,326	12,241
Cash flow from financing activities
Finance cost paid		(210)	(51)
Bank facility repayment		–	(12,350)
Shares bought back and held in treasury		(2,437)	–
Dividends paid	5	(2,288)	(2,218)
Net cash outflow from financing activities		(4,935)	(14,619)
Net increase/(decrease) in cash and cash equivalents		391	(2,378)
Cash and cash equivalents at start of the period		497	2,472
Cash and cash equivalents at the end of the period		888	94
Reconciliation of cash and cash equivalents to the
Balance Sheet is as follows:
Cash held at custodian		100	94
Northern Trust Global Funds plc – Sterling, money market fund		788	–
Cash and cash equivalents		888	94
Cash flow from operating activities includes:
Dividends received		2,383	2,242
Interest received		3	2

As the Company did not have any long term debt at both the current and prior period ends, no reconciliation of the financial liabilities is presented.

The accompanying accounting policies and notes are an integral part of these financial statements.

 

Notes to the condensed financial statements

1. Basis of preparation

The condensed financial statements have been prepared using the same accounting policies as those adopted in the Company’s 2026 Annual Financial Report. They have been prepared on a historical cost basis, in accordance with the applicable UK-adopted international accounting standards and, where consistent with the requirements of UK-adopted international accounting standards, in accordance with the Statement of Recommended Practice for Financial Statements of Investment Trust Companies and Venture Capital Trusts, updated by the Association of Investment Companies in December 2025 (‘AIC SORP’).

2. Income

	Six months	Six months
	ended	ended
	31 July	31 July
	2026	2025
	£’000	£’000
Income from investments:
UK dividends
– ordinary	2,117	2,023
– special	55	183
– property income distribution	126	110
Overseas dividends	–	17
	2,298	2,333
Other income:
Deposit interest	3	2
Derivative income	164	21
Liquidity fund income	21	25
	2,486	2,381

 

No special dividends have been recognised in capital during the period (31 July 2025: £nil).

Overseas dividends include dividends received on UK listed investments where the investee company is domiciled outside of the UK.

3. Management fee and finance costs

The investment management fee and finance costs are allocated 15% to revenue and 85% to capital.

A base management fee is payable monthly in arrears under the agreement with Artemis. The fee is calculated at a rate of 0.65% per annum on the first £50 million of the Company’s net assets, and 0.55% per annum on net assets above £50 million.

4. Taxation and Investment Trust Status

No tax liability arises on capital gains because the Company has been accepted by HMRC as an approved investment trust and it is the intention of the Directors to conduct the affairs of the Company so that it continues to satisfy the conditions for this approval.

5. Dividends on ordinary shares

	Six months ended		Six months ended
	31 July 2026		31 July 2025
	Rate	£’000	Rate	£’000
Dividends paid during the period:
Third interim (prior year)	3.85p	1,144	3.85p	1,170
Final (prior year)	3.89p	1,144	3.45p	1,048
Total dividends paid	7.74p	2,288	7.30p	2,218
Dividends payable in respect of the year:
First interim	3.85p	1,121	3.85p	1,169
Total dividends declared and paid	11.59p	3,409	11.15p	3,387

 

The first interim dividend of 3.85p per ordinary share (31 July 2025: 3.85p) was paid on 21 August 2026 to shareholders on the register on 24 July 2026.

6. Share capital, including movements

Share capital represents the total number of shares in issue, including treasury shares.

	31 July	31 January
	2026	2026
Share capital:
Ordinary shares of 20p each (£’000)	5,817	5,953
Treasury shares of 20p each (£’000)	4,148	4,012
	9,965	9,965
Number of ordinary shares in issue:	29,084,015	29,766,693
Number of shares held in treasury:	20,742,421	20,059,743
Total	49,826,436	49,826,436

 

 

7. Classification under fair value hierarchy

The Company is required to disclose the fair value hierarchy that classifies its financial instruments measured at fair value at one of three levels, according to the relative reliability of the inputs used to estimate the fair values.

Level 1 – investments with quoted prices in an active market;

Level 2 – investments whose fair value are based directly on observable current market prices or are indirectly derived from market prices; and

Level 3 – investments whose fair value are determined using a valuation technique based on assumptions that are not supported by observable current market prices or are not based on observable market data.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of each relevant asset/liability.

	31 July 2026		31 January 2026
	Asset	Liabilities	Asset	Liabilities
	£’000	£’000	£’000	£’000
Level 1	124,804	–	128,586	–
Level 2	10	(184)	39	(193)
	124,814	(184)	128,625	(193)

 

8. Status of Half-Yearly Financial Report

The financial information contained in this Half-Yearly Financial Report, which has not been reviewed or audited by an independent auditor, does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the half years ended 31 July 2025 and 31 July 2026 has not been audited. The figures and financial information for the year ended 31 January 2026 are extracted and abridged from the latest audited accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the Independent Auditor’s Report, which was unqualified.

 

By order of the Board

Northern Trust Secretarial Services (UK) Limited

Company Secretary

12 October 2026

 

Information for shareholders

Company history

The investment trust was launched in March 1988 (formerly known as Berry Starquest plc). Perpetual took over the management of the investment trust on 1 March 1994. On 13 June 2002, the investment trust’s name changed to Invesco Perpetual UK Smaller Companies Investment Trust plc. Artemis assumed management of the trust on 10 March 2025, whereby the Company’s name was changed, on 12 March 2025, to Artemis UK Future Leaders plc.

Net Asset Value (‘NAV’) publication

The NAV of the Company is calculated by the Manager on a daily basis and is notified to the Stock Exchange on the following business day. An estimated NAV is also published daily in the newspapers detailed under Share Price Listings.

How to invest in the Company

The Company’s shares are listed and traded on the London Stock Exchange and can be bought or sold through a stockbroker.

You can also buy and sell shares yourself through a wide variety of ‘execution-only’ investment platforms – where you make the investment decisions and your shares are held electronically in an account on your behalf. These tend to be cheaper than holding paper share certificates and also mean you don’t need to worry about losing your certificate.

Most investment platforms allow you to manage your investment trust holdings online, as well as access to a wide range of investment options, however, platforms generally charge fees for holding and trading shares. Platforms featuring Artemis UK Future Leaders include:

– AJ Bell:

www.ajbell.co.uk/markets/investment-trusts

– Barclays Smart Investor:

www.barclays.co.uk/smart-investor

– Charles Stanley Direct:

www.charles-stanley-direct.co.uk

– Fidelity: www.fidelity.co.uk

– Halifax: www.halifax.co.uk/investing

– Hargreaves Lansdown:

www.hl.co.uk/shares/investment-trusts

– interactive investor:

www.ii.co.uk/investment-trusts

The companies above are shown for illustrative purposes only. Other platform providers are available. The links above direct you to external websites operated by each platform provider. Artemis and the Company take no responsibility for the content and information on these third-party sites.

Investor warning

The Company, Artemis and the Registrar would never contact members of the public to offer services or require any type of upfront payment. If you suspect you have been approached by fraudsters, please contact the FCA consumer helpline on 0800 111 6768 and Report Fraud on 0300 123 2040.

Further details for reporting frauds, or attempted frauds, can be found below.

Website

Information relating to the Company can be found on the Company’s section of the Manager’s website, which can be located at https://www.artemisfunds.com/futureleaders.

The contents of websites referred to in this document, or accessible from links within those websites, are not incorporated into, nor do they form part of this half-yearly report.

Financial calendar

The Company publishes information according to the following calendar:

Announcements

Annual Financial Report	April
Half-Yearly Financial Report	October
Year End	31 January
Dividends Payable
1st interim	August
2nd interim	November
3rd interim	March
Final	June
Annual General Meeting	June

General Data Protection Regulation (‘GDPR’)

The Company has a privacy notice which sets out what personal data is collected and how and why it is used. The privacy notice can be found at https://www.artemisfunds.com/futureleaders or a copy can be obtained from the Company Secretary whose correspondence address is found on page 31.

Glossary of terms and alternative performance measures

Alternative Performance Measure (‘APM’)

An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly derived from the financial statements. The APMs listed here are widely used in reporting within the investment company sector and consequently aid comparability.

Benchmark (or Benchmark Index)

A market index, which averages the performance of companies in any sector, giving a good indication of any rises or falls in the market. The benchmark used in these accounts is the Deutsche Numis Smaller Companies plus AIM (Excl. Inv-Trust) Index, with dividends reinvested.

(Discount)/Premium (APM)

Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the underlying net asset value (‘NAV’) of that share. Conversely, premium is a measure of the amount by which the mid-market price of an investment company share is higher than the underlying net asset value of that share. The discount is expressed as a percentage of the net asset value per share and is calculated according to the formula set out below. If the shares are trading at a premium the result of the below calculation will be positive and if they are trading at a discount it will be negative.

		31 July	31 January
		2026	2026
Share price	a	385.50p	386.00p
Net asset value
per share	b	429.41p	434.66p
Discount	c = (a-b)/b	(10.2)%	(11.2)%

 

Dividend yield (APM)

The annual dividend payable expressed as a percentage of the year end share price.

		2026	2025
Dividends per share	a	15.44p	15.00p
Share price	b	386.00p	375.00p
Dividend Yield	c = a/b	4.0%	4.0%

 

The dividend is presented on a historical basis and represents the amount paid in respect of the year ended 31 January 2026 and 31 January 2025 respectively. The share price presented is at 31 January.

Gearing (APM)

The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount by which net assets, or shareholders’ funds, would move if the value of a company’s investments were to rise or fall. A positive percentage indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared. A negative percentage indicates that a company is not fully invested and is holding net cash as described below.

There are several methods of calculating gearing and the following has been used in this report:

Gross gearing (APM)

This reflects the amount of exposure of CFDs in use by the Company and takes no account of any cash balances. It is based on gross exposure of CFDs as a percentage of net assets.

As at 31 July 2026 the Company’s leverage was obtained through CFD exposure of £9,999,000 (31 January 2026: £11,128,000).

		31 July	31 January
		2026	2026
		£’000	£’000
Gross exposure
of CFDs	a	9,999	11,128
Net asset value	b	124,890	129,385
Gross gearing	c = a/b	8.0%	8.6%

 

Net gearing or net cash (APM)

Net gearing reflects the amount of net exposure invested, i.e. CFD exposure less cash and cash equivalents (including investments in money market funds). It is expressed as a percentage of net assets. Net cash reflects the net exposure to cash and cash equivalents, after any offset against total exposure.

		31 July	31 January
		2026	2026
		£’000	£’000
Gross exposure of CFDs		9,999	11,128
Less: cash and cash
equivalents		(888)	(497)
Net exposure	a	9,111	10,631
Net asset value	b	124,890	129,385
Net gearing	c = a/b	7.3%	8.2%

 

Maximum authorised gearing

This reflects the maximum authorised borrowings of a company taking into account both any gearing limits laid down in the investment policy and the maximum borrowings laid down in covenants under any borrowing facility and is calculated as follows:

		31 July	31 January
		2026	2026
		£’000	£’000
Maximum authorised borrowings as laid down in the Investment policy:
– lower of 30%
of net asset
value and	a = 30% x d	37,467	38,816
– £25m	b	25,000	25,000
Maximum authorised
borrowings (c = lower
of a and b)	c	25,000	25,000
Net asset value	d	124,890	129,385
Maximum authorised gearing	e = c/d	20.0%	19.3%

 

Leverage

Leverage, for the purposes of the Alternative Investment Fund Managers Directive (‘AIFMD’), is not synonymous with gearing as defined above. In addition to borrowings, it encompasses anything that increases the Company’s exposure, including foreign currency and exposure gained through derivatives. The AIFMD requires the Manager to make available to investors certain information around leverage and risk policies prior to such investors’ investment in the Company. This information is contained in the Pre-Investor Disclosure Document (PIDD) which may be viewed on the Company’s website at: https://www.artemisfunds.com/futureleaders.

Market capitalisation

Is calculated by multiplying the stock market price of an ordinary share by the number of ordinary shares in issue.

Net Asset Value (‘NAV’)

Also described as shareholders’ funds, the NAV is the value of total assets less liabilities. Liabilities for this purpose include current and long-term liabilities. The NAV per share is calculated by dividing the net asset value by the number of ordinary shares in issue (excluding shares held in treasury). For accounting purposes assets are valued at fair (usually market) value and liabilities are valued at amortised cost (their repayment – often nominal – value).

Ongoing charges ratio (APM)

The ongoing administrative costs of operating the Company are encapsulated in the ongoing charges ratio, which is calculated in accordance with guidance issued by the AIC. The calculation incorporates charges allocated to capital in the financial statements as well as those allocated to revenue, but excludes non-recurring costs, transaction costs of investments, finance costs, taxation, and the costs of buying back or issuing shares. The ongoing charges ratio is the aggregate of these costs expressed as a percentage of the daily average net asset value reported in the period.

		31 July	31 January
		2026	2026
		£’000	£’000
Investment management fee(1)	704	488
Other expenses(1)		599	529
Impact of the management
fee waiver(2)		–	285
Total recurring expenses	a	1,303	1,302
Average daily net assets	b	118,911	129,662
Ongoing charges ratio %	c = a/b	1.10%	1.00%

 

(1) 31 July 2026 represents the annualised forecast to 31 January 2027.

(2) As part of the transition, Artemis agreed to a nine-month fee waiver covering the period from 7 March to 7 December 2025. The waiver fully offset the termination fee paid to Invesco, and in addition meant that the Company benefited from paying no management fee for the period 21 June to 7 December 2025.

Return

The return generated in a period from the investments including the increase and decrease in the value of investments over time and the income received.

Total return

Total return is the theoretical return to shareholders that measures the combined effect of any dividends paid together with the rise or fall in the share price or NAV. In this Half-Yearly Financial Report these return figures have been sourced from LSEG Data & Analytics who calculate returns on an industry comparative basis.

Net Asset Value total return (APM)

Total return on net asset value per share, assuming dividends paid by the Company were reinvested into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.

Share price total return (APM)

Total return to shareholders, on a mid-market price basis, assuming all dividends received were reinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.

		Net Asset	Share
As at		Value	Price
31 July 2026		429.41p	385.50p
31 January 2026		434.66p	386.00p
Change in period	a	(1.2)%	(0.1)%
Impact of dividend
reinvestments(1)	b	2.8%	2.2%
Total return for the period	c = a+b	1.6%	2.1%
		Net Asset	Share
As at		Value	Price
31 January 2026		434.66p	386.00p
31 January 2025		449.88p	375.00p
Change in year	a	(3.4)%	2.9%
Impact of dividend
reinvestments(1)	b	3.4%	4.2%
Total return for the year	c = a+b	0.0%	7.1%

 

(1) Total dividends paid during the six months to 31 July 2026 of 7.74p (31 January 2026: 15.00p) reinvested at the NAV or share price on the ex-dividend date. NAV or share price falls subsequent to the reinvestment date consequently further reduce the returns, vice versa if the NAV or share price rises.

Benchmark

Total return on the benchmark is on a mid-market value basis, assuming all dividends received were reinvested, without transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.

Volatility

Volatility refers to the amount of uncertainty or risk about the size of changes in a security’s value. It is a statistical measure of the dispersion of returns for a given security or market index measured by using the standard deviation or variance of returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.

 

Principal service providers

Registered Office and Company Number

50 Bank Street

Canary Wharf

London

E14 5NT

Website: https://www.artemisfunds.com/futureleaders

Email: [email protected]

Registered in England and Wales

Number 02129187

 

Alternative Investment Fund Manager

Artemis Fund Managers Limited

Cassini House

57 St. James’s Street

London SW1A 1LD

Email: [email protected]

Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.

 

Investment Manager

Artemis Investment Management LLP

Cassini House

57 St. James’s Street

London

SW1A 1LD

Authorised and regulated by the Financial Conduct Authority

 

Company Secretary

Northern Trust Secretarial Services (UK) Limited

Company Secretarial Contact:

AFL mailbox: [email protected]

 

Independent Auditor

Ernst & Young LLP

3rd Floor

144 Morrison Street

Edinburgh EH3 8EX

 

Administrator

The Northern Trust Company, London Branch

50 Bank Street

Canary Wharf

London E14 5NT

 

Banker & Custodian

The Northern Trust Company, London Branch

50 Bank Street

Canary Wharf

London E14 5NT

 

Depositary

Northern Trust Investor Services Limited

50 Bank Street

Canary Wharf

London E14 5NT

 

Corporate Broker

JPMorgan Cazenove

25 Bank Street

London E14 5JP

 

Registrar

MUFG Corporate Markets

Central Square

29 Wellington Street

Leeds LS1 4DL

☎ 0371 664 0300

 

If you hold your shares directly in certificated form and not through an investment platform or savings scheme and have queries relating to your shareholding you should contact the Company’s Registrar, MUFG Corporate Markets, via email on [email protected] or on: ☎ 0371 664 0300. Calls are charged at the standard geographic rate and will vary by provider.

MUFG Corporate Markets provides an online and telephone share dealing service for paper share certificates to existing shareholders who are not seeking advice on buying or selling. This service is available at dealing.cm.mpms.mufg.com or ☎ 0371 664 0445. Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable international rate. Lines are open 9.00am to 5.30pm Monday to Friday (excluding Bank Holidays in England and Wales).

Shareholders holding paper share certificates can also access their holding details via the Investor Centre app or the website at uk.investorcentre.mpms.mufg.com. MUFG Corporate Markets is the business name of MUFG Corporate Markets (UK) Limited.

 

Manager’s website

Information relating to the Company can be found on the Company’s section of the Manager’s website, which can be located at https://www.artemisfunds.com/futureleaders.

 

The contents of websites referred to in this document, or accessible from links within those websites, are not incorporated into, nor do they form part of, this financial report.