European Opportunities Trust plc (the 'Company')

Legal Entity Identifier: 549300XN7RXQWHN18849

Annual results for the year ended 31 May 2025

Highlights

·      Net asset value total return of (3.7)% and share price total return of (0.9)% for the financial year, compared with a total return of 8.0%, for the Company's Benchmark, the MSCI Europe index.

·      Since the year end the net asset value increased by 5.9% to 1,026p as at 31 July. This compares with a total return of 1.5% for the Benchmark.

·      Annual dividend of 2.0p per share payable on 28 October 2025 (2024:2.0p).

·      Discount of 7.5% on at the financial year end (2024: 10.2%).

·      25% tender offer implemented in June 2025. Potential for a further 25% tender offer, conditional upon performance, following the continuation vote at the 2026 AGM.

·      Reduction in management fees to 0.65% on the first £400m of net assets, 0.60% on next £200m and 0.55% on excess above £600m agreed with effect from 1 October 2025.

·      Potential benefits for shareholders from the proposed merger of Devon Equity Management Limited with River Global PLC.

Chair's Statement

I present the Company's twenty-fifth Annual Report and Accounts since launch, covering the twelve months ended 31 May 2025.

During the period under review, the total return on the net asset value per share of the Company was (3.7)% (with dividends reinvested). This compares with the total return (again reflecting dividends reinvested) of 8.0% from our Benchmark, the MSCI Europe index in GBP, and the total return on the price of the Company's shares of (0.9)% during the same period.

Since the year end, and on a more pleasing note, the net asset value per share has increased by 5.9% to 1,026.0p (as at 31 July 2025), outperforming the Benchmark which increased by 1.5% over that period. The market price of the Company's shares on that date was 937.0p, an increase of 4.6% since the financial year end.

Whilst the Company's NAV total return has outperformed our Benchmark since inception, its three, five and ten year NAV total returns are below the Benchmark. The Board is acutely aware of the disappointment this entails for shareholders. Through engagement with the Investment Manager, the Board is persuaded that the consistency of commitment to a differentiated, high conviction approach will be vindicated in the longer term. We are also cognisant that shareholders  will have an opportunity to vote on the continuation of the Company at the Annual General Meeting to be held in 2026, in accordance with the Company's articles of association.

Our Investment Manager's explanation of the contributors and detractors to recent performance are set out below.

Tender Offer

As mentioned above, shareholders will have the opportunity to vote on the continuation of the Company within the next 18 months. However, in view of recent performance, the Board felt it appropriate to offer shareholders an interim opportunity to realise part of their investment at close to NAV. Consequently, on 7 February 2025, we announced that the Company would undertake a tender offer for up to 25% of its issued share capital. The tender offer was approved by shareholders at a General Meeting held on 3 June and was concluded on 18 June. The effect of the tender offer was to reduce the Company's net assets under management to £463 million as at the end of June.

This tender offer was in addition to the previously announced performance related tender offer to be made as soon as is practicable after the Annual General Meeting in 2026 if the Company's net asset value total return does not equal or exceed the Benchmark total return over the three-year period beginning 1 June 2023 and ending on 31 May 2026. The Company's performance since 1 June 2023 is currently behind the Benchmark.

River Global PLC and our Investment Manager

It was announced on 30 June 2025 that our Investment Manager, Devon Equity Management Limited, had entered into heads of terms to merge its business with River Global PLC. The proposals are subject to contract and regulatory consent from the FCA. Your Board has had extensive discussions with the senior management of both River Global PLC and Devon to understand fully the rationale and implications of the proposed combination. We thank them for the time taken to respond to our enquiries. After careful consideration and having received feedback from some shareholders, we take a positive view of the proposal based on River Global's commitment to Investment Trusts, the expanded portfolio management and analyst resource and the enhanced marketing and distribution capability. We have also received reassurance of the continued commitment of key staff at Devon and that the underlying investment philosophy and process will be retained.

Revised Management Fee

The Board reviews the Company's management fee structure with the Investment Manager each year to ensure that the terms of the fee are competitive and reasonable for shareholders. I am pleased to inform shareholders that, irrespective of the outcome of the ongoing negotiations between Devon and River Global described above, the Board and the Investment Manager have agreed a reduced management fee to become effective from 1 October 2025. Under the new arrangements, Devon will be entitled to 0.65% per annum on net assets up to £400 million; 0.60% per annum on any net assets between £400 million and £600 million and 0.55% per annum on any net assets above £600 million. Previously Devon was entitled to 0.80% per annum on any net assets up to £1 billion; 0.70% per annum on any net assets over £1 billion up to £1.25 billion; and 0.60% per annum on any net assets above £1.25 billion.

Annual dividend

The Company's investment objective is to achieve shareholder returns primarily through capital growth. Accordingly the Board does not impose a specific income objective on the Investment Manager in the management of the portfolio. Consequently the revenue per share, and therefore the dividends paid, have fluctuated from year to year.

The Board's policy is to propose an annual dividend which is at least sufficient to enable the Company to maintain its investment trust status with HMRC. It has generally (but not exclusively) been the Board's practice to pay a dividend covered by the revenue return per share of the year to which it pertains. However, in view of the importance of income to many shareholders and the Company's ample revenue reserves, the Board has decided to recommend a final dividend of 2.0p (unchanged on 2.0p paid in 2024).

The ability to fund dividend payments out of revenue reserves is one of the key advantages of investment trusts which, in contrast with open-ended funds such as OEICs, can hold back some of the income generated in good years, thereby building up revenue reserves that can be used to supplement dividends during periods of lower revenue returns.

The dividend will be proposed at the Annual General Meeting and will be payable on 28 October to shareholders on the Register of Members on 3 October (the Record Date). The ex-dividend date is 2 October 2025.

A dividend reinvestment plan is available from the Company's registrars, MUFG Corporate Markets, to shareholders who wish to re-invest their dividends in the shares of the Company.

Discount management

The discount on the Company's shares was 7.5% at the year end (2024: 10.2%), which compares with the average discount on that date of 5.4% for the Company's peers in the AIC Europe sector. The average discount on the Company's shares over the year was 10.7% (2024: 10.2%).

The Board has an active discount management policy, the primary purpose of which is to reduce discount volatility. The Board seeks to maintain the discount in single digits in normal market conditions. Buying shares at a discount also results in a small enhancement to the NAV per continuing share.

A total of 2,879,195 shares were repurchased during the period under review, with an aggregate value of £24.5 million. No further shares have been repurchased since the financial year end aside from those repurchased in the Tender Offer referred to above.

The Board believes that the Company should retain the power to buy back shares during the current financial year and is therefore seeking to renew the annual authority to repurchase up to 14.99% of the Company's shares in issue at the forthcoming Annual General Meeting. The Board's current powers to buy back shares, last renewed at the general meeting held on 3 June, expire at the Annual General Meeting.

Gearing

The Board believes that borrowing can enhance returns to investors over the long-term. The Board monitors the level of the Company's gearing carefully on an ongoing basis and the level of gearing at any given time is a reflection of the Investment Manager's confidence in identifying attractive investment opportunities at the point of drawdown or renewal.

In August 2025, the Company renewed its longstanding multi-currency revolving credit facility with The Bank of Nova Scotia, London Branch with a maximum drawable amount of £70 million available until September 2026 (reduced from £85 million in 2024/25), with credit approval for an additional `accordion' amount available upon application for a further £50 million (unchanged on the previous year). There was £70 million drawn down as at 31 May 2025, reduced to £55 million as of the date of this report.

Directors' performance evaluation and annual re-elections

In order to review the effectiveness of the Board, its Committees and the individual Directors, the Board has recently commissioned a formal independent appraisal by an external consultant, Cyclico. Whilst the review, which concluded in June, resulted in a number of minor operational recommendations for the Board, the overall conclusion was that the Board as a whole, and its Committees, were functioning effectively.

The Board considers that a tri-annual external appraisal process is a constructive means of evaluating the contribution of individual Directors, identifying ways to improve the functioning and performance of the Board and its committees, building on collective strengths and identifying any training needs.

In accordance with the UK Corporate Governance Code, all Directors who have held office during the financial year are offering themselves for re-election at the forthcoming Annual General Meeting.

I would like to thank my fellow Directors for their diligence and dedication on your behalf over the last year.

Shareholder engagement

The Board believes that shareholder engagement is extremely important and aims to maintain an open dialogue with shareholders. Over the course of the year, we have continued to engage with a range of our shareholders representing in aggregate the majority of the share register. The Board values the feedback it has received and insights it has gained through the engagement process and we thank the shareholders for their valuable contributions. We remain committed to continued engagement with all shareholders.

2025 Annual General Meeting

The Company's Annual General Meeting will be held at 11:00 am on Wednesday, 8 October 2025.

I would like to take the opportunity to remind shareholders that they have the right to attend and vote on matters that affect the Company. It is an important aspect of an investment trust that shareholders can and are encouraged to make their voices heard by voting on key business matters.

The Directors consider that all resolutions to be put to shareholders are in their and the Company's best interests as a whole, and recommend that shareholders vote in their favour.

In addition to the formal business, Alexander Darwall will provide a presentation to shareholders on the performance of the Company over the past year as well as an outlook for the future.

Should shareholders have questions for the Board or the Investment Manager, or any queries as to how to vote, they are welcome, as always, to submit them by email to [email protected] or call 020 3985 0445.

Outlook

European equities are performing relatively well compared with the US equity market this year. Trump turmoil has made European equities look relatively attractive. This, together with lower oil and gas prices (a particular positive for Europe), make for an encouraging backdrop for the Company's investment strategy.

We acknowledge that the Company's returns relative to our Benchmark have been below par in recent years but, albeit short term, we are pleased to note that there have been some signs of recovery in the Company's performance in recent months. As we approach the three yearly continuation vote at next year's Annual General Meeting we will continue to keep the Company's performance, and our Investment Manager, under close review on your behalf.

Your Board and I would like to express our thanks to all of our shareholders for their continuing support.

Matthew Dobbs

Chair

14 August 2025

Investment Manager's Review  

The total return on the net asset value of the Company's shares was (3.7)% during the twelve months to 31 May 2025. This compares with a total return of 8.0% from our Benchmark, the MSCI Europe index in GBP.

Portfolio Review

Our portfolio, a collection of European companies which compete successfully worldwide, has obvious advantages: a bigger global opportunity than one restricted to Europe only and global success providing validation of our companies' products and services. Whilst this strategy is challenged by the policies of the Trump administration, we are well positioned to cope with US tariffs as our companies typically provide services or have US based operations, in both cases avoiding the worst effects of tariffs.  However, we must acknowledge that our strategy does not have a place for mainstream financials, a strongly performing sector, which explains in part at least, our disappointing performance.

Themes in the portfolio include 'productivity' (through technology advances); 'disruption' (through technology and new business models); 'defence'; and 'electrification'. The productivity plays include healthcare companies like Novo Nordisk and Camurus where successful clinical trials and, in the case of Camurus, significant new deals vindicate our confidence in their technology. Companies like Wise and Ryanair continue to disrupt industries where incumbents are handicapped by their legacy systems. Our defence holdings are plays on the acknowledged need to increase spending. As for electrification, as part of that the transition to the 'electric economy', demand for natural gas is rising. GTT in providing engineering services to Liquified Natural Gas carriers is a clear beneficiary of this trend. Other 'winners' in the electric economy include Prysmian, a leading supplier of electric cables, and Infineon, the world leader in power semiconductors.

Performance

We discuss the key contributors and detractors below.

Top five contributors

The biggest positive contributor to our performance in the period under review was Deutsche Börse. Turmoil in financial markets tend to be good for the company and there has been turmoil in abundance. Management had the foresight to invest substantially over recent years and the company is now enjoying the fruits of that strategy. RELX continued to contribute to returns as the company reports higher growth rates on the back of its use of artificial intelligence (AI). GTT shares gained, steadily matching increasing demand for their natural gas related engineering services. Thales, BAE Systems and Exosens, three defence companies, all performed well. The prospect of multi-year increases in European and international defence spending provides good earnings visibility. Shares in Genus also contributed following the FDA's approval for their unique gene editing technology. This is potentially transformational for the company's prospects although it will take time to see the full benefits. bioMérieux was another positive contributor, as it continued to build on its leading position in in vitro diagnostics.

Top five detractors

* Price performance and relative contribution to portfolio returns have been calculated on a total return basis by reference to each portfolio transaction. Over the period from close on 31 May 2024 to 31 May 2025. These calculations include the impact of foreign currency rates and are based on Bloomberg securities and FX pricing sources and Bloomberg's estimation of the portfolio's total market value. Relative contribution to portfolio return is measured against the MSCI Europe total return index in GBP. Source: Devon, Bloomberg.

The standout detractor from our performance was Novo Nordisk. Competitive developments in the burgeoning market for anti-obesity drugs explain the sharp fall in the share price. Whilst Novo Nordisk was the trail blazer with their GLP-1 drugs, such is the scale of the market opportunity that many new entrants have been attracted to this space: the stockmarket's concern is that their 'first mover advantage' is not an enduring advantage. Recent clinical trial results from their 'next generation' drug underwhelmed investors. However, on both points we are more positive. The anti-obesity opportunity is vast and the diverse needs of the patient population means that many different drugs will be required. Novo Nordisk has many advantages including a strong portfolio of drugs and a strong pipeline, with good 'real world' performance, huge scale and attendant economies, and global reach. Edenred shares fell sharply as the threat of regulatory changes in their key markets unsettled investors. Edenred has navigated previous changes successfully and, for as long as employee benefits remain part of governments' policies (and all the signs are positive), we expect the company to build on its excellent record.

Worldline has been a bad investment; our analysis was wrong, and we have since sold the holding. Another detractor was Dassault Systèmes. The company has reported lower growth rates as their main customer base, the automotive industry, reacted to the 'tariff turmoil' by pausing investment. The company's CAD/CAM (computer aided design and manufacture) offering is compelling, and we remain confident that the company has a bright future. Oxford Instruments shares drifted on little news other than a concern that they would suffer from US tariffs. Of the other detractors we note ICG, the private equity and debt company. Results have been good with strong fund raising underpinning a confident outlook.

Portfolio Activity

During the period under review, we raised approximately £38.3 million net cash. We sold £137.6 million of stocks and reinvested £99.3 million, representing a turnover ratio of 20% of the Company's average net assets during the year (2024: 71%). We increased the number of holdings from 27 to 28. There were four new investments and three complete sales during the period under review.

The biggest complete sale from the portfolio in the period was Darktrace, which was taken over by an American private equity company. We reduced the weighting of Deutsche Börse on the back of good performance. We sold the entirety of the holding in S.O.I.T.E.C. because their unique semiconductor wafer technology failed to gain traction in new areas. We also reduced the weighting in RELX, again, on the back of good performance. In addition, we lightened the holding in Novo Nordisk, recognising that it was an outsized weighting.

We established four new positions: Universal Music Group (UMG), Exosens, Wise and VAT Group.

UMG, as the owner of a huge catalogue of recorded music, benefits from digital technology which enables them to monetise their assets better. Exosens, a manufacturer of night vision goggles, is a play on increasing defence spending. Wise, a London based global payments technology company, is building a world leading FX platform for cross- border movements of money. VAT Group, a Swiss technology company, is a key supplier to the growing semiconductor industry. We increased positions in Edenred and Genmab on share price weakness; we bought more shares in Genus as the FDA's approval of their gene editing technology transforms their prospects.

Outlook

Two factors, capricious policy making by the Trump administration, and the impact of wars in Eastern Europe and Middle East, overshadow the near-term outlook.

As to the first, we are confident that most of our companies can avoid the worst effects of tariffs. With its tariff policy, the Administration is encouraging international companies to do more in America. Oil prices have climbed in response to worsening conflicts around the world but are not yet at levels that are thought to damage economic growth to any great extent.

The disruption to the US economy from the tariff policies is the prime reason why asset allocators are turning their attention, and funds, away from US equities to European equities again after years of neglect. Further, Germany's strong fiscal position stands in stark contrast to the dire US public finances. This allowed Germany to amend its constitutional debt brake thereby permitting the government to spend more on defence and security. Defence spending is expected to increase rapidly, reaching 3.5% of GDP in 2029. At the same time it created a new €500 billion fund for additional infrastructure investment. This stimulus will be felt throughout Europe and underpins a much more encouraging medium-term outlook.

The longer-term case for our strategy rests on our conviction that our companies will continue to benefit from growing global demand for their products and services. We try to identify companies that provide critical goods or services and where they have a good degree of pricing power. In such cases, we believe these companies can enjoy good demand growth, neutralising the worst of any potential tariff effects. Moreover, many of our companies reported breakthrough developments in recent months, paving the way for transformational profits growth. Genus, Camurus and Novo Nordisk have all reported clinical trials and approvals that will lead to significant profits; Infineon is increasing its design 'wins' in the Chinese automotive market, again, giving good visibility to significant profits growth; and Dassault Systèmes has launched its AI product which should boost its earnings power considerably.

Typically, our companies also have less debt than most European listed companies, which we regard as prudent.

Our collection of 'special' companies, ones that can thrive in a range of economic scenarios, is well set to reap the rewards of their efforts. In a range of activities we have companies that are well positioned to succeed in their particular areas of activity, and this gives us great confidence for the future.

Alexander Darwall

Devon Equity Management Limited

14 August 2025

Investment Activity

During the year ended 31 May 2025

* Change in value reflects the value of the holding at the end of the period less the value at the beginning of the period less the net effect of trading activity during the year.

Income Statement

for the year ended 31 May 2025

* There is no other comprehensive income and therefore the 'Net return after taxation' is the total comprehensive income for the financial year.

The total column of this statement is the income statement of the Company, prepared in accordance with UK adopted International Accounting Standards.

The supplementary revenue return and capital return columns are both prepared under guidance produced by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations.

No operations were acquired or discontinued during the year.

Statement of Financial Position

as at 31 May 2025

Statement of Changes in Equity

For the year ended 31 May 2025

* Dividends paid during the financial year were paid out of revenue reserves.

Cash flow statement for the year ended 31 May 2025

Selected notes to the Financial Statements

1. Material Accounting Policies

The Accounts comprise the financial results of the Company for the year to 31 May 2025. The functional and reporting currency of the Company is pounds sterling because that is the currency of the prime economic environment in which the Company operates. The Accounts were authorised for issue in accordance with a resolution of the Directors on 14 August 2025. All values are rounded to the nearest thousand pounds (£'000) except where indicated.

The Accounts have been prepared in accordance with UK-adopted International Accounting Standards and the requirements of the Companies Act 2006.

Where presentational guidance set out in the Statement of Recommended Practice for Investment Trusts issued by the Association of Investment Companies in April 2021 (the 'AIC SORP') is consistent with the requirements of UK-adopted International Accounting Standards in conformity with the Companies Act 2006, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the AIC SORP. The Accounts have also been prepared in accordance with the Disclosure and Transparency Rules issued by the Financial Conduct Authority. The Accounts have been prepared under the historic cost convention, modified by revaluation of financial assets and financial liabilities held at fair value through profit and loss. The accounting policies have been consistently applied throughout the year ended 31 May 2025 and in the prior year other than where new policies have been adopted.

The Board continues to adopt the going concern basis in the preparation of the financial statements.

(a) Segmental reporting

The Company is engaged in a single segment business and, therefore, no segmental reporting is provided.

(b) Income recognition

Ordinary dividends from investments are recognised when the investment is quoted ex-dividend on or before the date of the Statement of Financial Position. All overseas dividend income is disclosed net of withholding tax.

Ordinary dividends receivable from equity shares are taken to the revenue return column of the Income Statement.

Deposit and other interest receivable are accounted for on an accruals basis. These are classified within operating activities in the Cash Flow Statement.

Special dividends are reviewed on a case by case basis to determine if the dividend is to be treated as revenue or capital.

(c) Presentation of Income Statement

In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the Association of Investment Companies (AIC), supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented. In accordance with the Company's Articles of Association, net capital returns may not be distributed by way of dividend. An analysis of reserves broken down into revenue (distributable) items, and capital (non-distributable) items is given in Note 13.

(d) Basis of valuation of investments

Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under contract whose terms require delivery of the investment within the timeframe established by the market concerned. Investments are included initially at fair value which is taken to be their cost, excluding expenses incidental to purchase which are written off to capital at the time of acquisition.

All investments are classified as held at fair value through profit or loss. All investments are measured at fair value with changes in their fair value recognised in the Income Statement in the period in which they arise. The fair value of listed investments is based on their quoted bid price at the reporting date without any deduction for estimated future selling costs.

Foreign exchange gains and losses on fair value through profit or loss investments are included within the changes in the fair value of the investment.

For investments that are not actively traded and/or where active stock exchange quoted bid prices are not available, fair value is determined by reference to a variety of valuation techniques.

These techniques may draw, without limitation, on one or more of: the latest arm's length traded prices for the instrument concerned; financial modelling based on other observable market data; independent broker research; or the published accounts relating to the issuer of the investment concerned.

(e) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risks of changes in value.

(f) Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing on the dates of the transactions. At the reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Gains and losses arising on retranslation are included in the Income Statement with the revenue or capital column depending on the nature of the underlying item.

(g) Borrowing and finance costs

Interest bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs and subsequently measured at amortised cost.

• Interest on the loan facility is accrued at the rate contractually agreed with the lender.
• Bank interest is recognised in the Income Statement in the period in which it is incurred.
• All finance costs are directly charged to the revenue column of the Income Statement.

(h) Expenses

Expenses are accounted for on an accruals basis. Management fees, administration and other expenses are charged fully to the revenue column of the Income Statement. Expenses which are incidental to the purchase or sale of an investment are charged to capital, along with any foreign exchange gains and losses.

In accordance with the AIC SORP, the Board has allocated all expenses, other than expenses incidental to purchase or sale of investments and issue costs, to revenue. Tender offer related costs are charged to capital. The Board will keep the allocation of expenses under review.

(i) Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. All tax costs are charged to revenue.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of the Statement of Financial Position.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the Accounts and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilised.

Investment trusts which have approval under Section 1158 of the Corporation Tax Act 2010 are not liable for taxation of capital gains.

Irrecoverable VAT is included in the expense on which it has been suffered. Recoverable VAT is calculated using the partial exemption method based on the proportion of zero rated supplies to total supplies.

(j) Future accounting developments

At the date of authorisation of the financial statements, there are no future amendments to the UK adopted International Accounting Standards (IAS) and interpretations are considered to be relevant to the Company.

(k) Significant accounting judgements, estimates and assumptions

Management have not applied any significant accounting judgements, estimates and assumptions which would have a significant impact on this set of Accounts or those of the prior financial year.

In preparing these Accounts, the Directors have considered the impact of climate change as an emerging risk and have concluded that there was no further impact of climate change to be considered as the investments are valued based on market pricing. In line with UK adopted International Accounting Standards the investments are valued at fair value, which for the Company are the bid prices quoted on the relevant stock exchange at the date of the Statement of Financial Position and therefore reflect market participants' views of climate change risk on the investments held.

2. Income

3. Other expenses*

* Each including VAT where applicable, other than Auditor's remuneration. There were no non-audit fees payable in the years to 31 May 2025 and 31 May 2024.

 ** Tender offer implemented in 2024, unrelated to the tender offer described in the Chair's statement.

4. Finance Costs

All finance costs are charged to revenue.

5. Taxation

(b) Factors affecting current tax charge for the year

The tax charge for the period is higher than (2024: lower) the Company's applicable rate of corporation tax of 25.0% (2024: 25.0%). The calculation of the tax charge is set out below:

Due to the Company's status as an investment trust and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.

There is an unrecognised deferred tax asset of £40 million (2024: £37 million) which relates to unutilised excess expenses. The rate of Corporation Tax of 25% has been used to calculate the potential deferred tax asset. This would only be recovered if the Company were to generate sufficient profits to utilise these expenses. It is considered highly unlikely that this will occur and therefore, no deferred tax asset has been recognised.

6. Returns per share

The return per share figure can be analysed between revenue and capital, as below:

7. Dividends paid to shareholders

Set out below is the total dividend proposed in respect of the financial year under review, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered:

* Based on the number of shares in issue as at 31 July 2025, the latest practicable date prior to the publication of the Annual Report and Accounts. Subject to shareholder approval at the 2025 Annual General Meeting, a final dividend of 2.0p per share will be paid on 28 October 2025 to those shareholders on the register of shareholders on 3 October 2025 (the Record Date).

Glossary of Terms and Alternative Performance Measures ('APM')

Alternative Investment Fund - an Alternative Investment Fund ('AIF') is defined as a collective investment undertaking, including investment compartments of such an undertaking, which (1) raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and (2) does not require authorisation under the UCITS regime. The Company is an AIF.

AIFM/Alternative Investment Fund Manager - an Alternative Investment Fund Manager ('AIFM') is an entity that provides certain investment services to an AIF, including portfolio and risk management services. Devon Equity Management Limited is the Company's AIFM.

Alternative Investment Fund Managers Directive - a European Union Directive to provide a harmonised framework for monitoring and supervising risks posed by AIFMs and the AIFs they manage, and for strengthening the internal market in alternative funds. This directive was transitioned into UK law pursuant to The UK Alternative Investment Fund Managers Regulations 2013, and remains in force following Brexit.

Alternative Performance Measures - The European Securities and Markets Authority ('ESMA') published its guidelines on Alternative Performance Measures ('APMs'). APMs are defined as being a 'financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable accounting framework.'

Benchmark - The Company's primary Benchmark Index, against which its performance is measured, is MSCI Europe index, total return in GBP.

Discount or Premium* - The share price of the Company is derived from buyers and sellers trading its shares on the stock market. The share price is not identical to the net asset value per share of the Company. If the share price is lower than NAV per share, the shares are trading at a discount. The discount is shown as a percentage of the net asset value per share. Shares trading at a price above net asset value per share are deemed to be at a premium.

Discount management - Discount management is the process of the buyback or issuance of the Company's own shares by the Company, to and from its own holding or into 'treasury' with the intention of managing any imbalance between supply and demand for the Company's shares and thereby the market price. The aim is that, in normal market conditions, the market price of the Company's shares will not materially vary from its net asset value per share. The authority to repurchase or issue the Company's own shares is voted upon by the shareholders at each Annual General Meeting.

Gearing - Gearing is the borrowing of cash to buy more assets for the portfolio with the aim of making a gain on those assets larger than the cost of the loan. However, if the portfolio doesn't perform well the gain might not cover the costs. The more an investment company gears, the higher the risk. Gearing is typically expressed as a percentage of net asset value.

Borrowings have a prior charge over the assets of the Company, ranking before shareholders in their entitlement to capital and/or income. Borrowings may include preference shares; debentures; overdrafts and short and long-term loans from banks. If the Company has cash assets, these may be assumed either to net off against borrowings, giving a 'net' or 'effective' gearing percentage, or to be used to buy investments, giving a 'gross' or 'fully invested' gearing figure. Where cash assets exceed borrowings, the Company is described as having 'net cash'. The Company's maximum permitted level of gearing is set by the Board and is described within the Strategic Report of the Annual Report.

† Includes unsettled transactions as at 31 May 2025 of £976,000 (2024: unsettled transaction resulted in a temporary creditors of £1,014,000).

†† Gross (unadjusted for cash and cash equivalents) gearing at year end was 11.6% (2024: 9.1%).

Leverage

For the purposes of the UK Alternative Investment Fund Managers (AIFM) Regulations, leverage is any method which increases the Company's exposure, including the borrowing of cash. It is expressed as a ratio between the Company's exposure and its net asset value and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash balances and after certain hedging and netting positions are offset against each other.

The Board has set maximum levels of leverage that it considers to be reasonable. Devon has implemented systems to calculate and monitor compliance against these limits and has ensured that the limits have been complied with at all times.

·      The maximum permitted leverage calculated on the gross basis is 1.5 times. As at 31 May 2025 gross leverage calculated on the gross basis was 1.07 times (2024: 1.09 times); and

·      The maximum permitted leverage calculated on the commitment basis is 2.0 times. As at 31 May 2025 leverage calculated on the commitment basis was 1.12 times (2024: 1.09 times).

Middle market price - The mid-market price is the mid-point between the buy and the sell prices.

Net asset value - The net asset value in relation to the Company is the market value of its assets less its liabilities (and is sometimes also referred to as Shareholders' Funds). The market value is usually determined by the price at which an investor can redeem a share. For valuation purposes it is common to express the net asset value on a per share basis.

Ongoing charges ratio* - Ongoing charges are the total expenses including both the investment management fee and other costs. The costs of buying and selling investments are excluded, as are interest costs on the Company's loan facility, taxation, non-recurring costs and the costs of buying back or issuing shares. The ongoing charges ratio is calculated in line with the AIC's recommended methodology and is expressed as a percentage of net asset value.

Return - The return generated in a given period from the investments:

·      Revenue return - reflects the dividend and interest from investments and other income net of expenses, finance costs and taxation;

·      Capital return - reflects the capital gain or loss, excluding any revenue return; and

·      Total return* - reflects the aggregate of revenue and capital returns and is the theoretical return to shareholders calculated on a per share basis by adding dividends paid in the period to the increase or decrease in the share price or net asset value in the period. The dividends are assumed to have been re-invested in the form of shares or net assets, respectively, on the date on which the shares were quoted ex-dividend.

Treasury shares - Shares of the Company that have been repurchased by the Company and not cancelled but held in Treasury. These shares do not pay dividends, have no voting rights and are excluded from the net asset value per share calculation.

* An Alternative Performance Measure.

Availability of Annual Report and Accounts

The Annual Report and Accounts will be posted to those shareholders who have elected to receive hard copies.

An electronic version of the Annual Report and Accounts will shortly be available on the Company's website at: www.europeanopportunitiestrust.com and on the National Storage Mechanism at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

Monthly newsletter

Please use the following link to be added to the distribution list for the Company's monthly newsletter and factsheet: https://www.devonem.com/newsletter-sign-up/

For further information, please contact:

www.europeanopportunities.com

Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

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