THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

JANUS HENDERSON FUND MANAGEMENT UK LIMITED

LEGAL ENTITY IDENTIFIER: 213800NE2NCQ67M2M998

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

Unaudited Results for the Half Year Ended 30 November 2025

The Henderson Smaller Companies Investment Trust plc announces its financial results for the half year ended 30 November 2025.

§ NAV total return¹ rose by 5.0%

§ Share price total return² rose by 4.5%

§ Interim dividend³ of 7.5p maintained

§ The Company repurchased 8.9m shares, enhancing NAV by 1.0%

§ Cassie Herlihy joined the Fund Management team, with 8 years of financial industry experience managing UK small caps

The Company's Half-Year Report for the six months ended 30 November 2025 (the "Half-Year Report") will shortly be available to download from the Company's website: www.hendersonsmallercompanies.com. An abridged extract from the report, the 'Update', will be sent to shareholders in February 2026. The Update has also been submitted to the National Storage Mechanism ("NSM") and will shortly be available for inspection on the NSM website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism and on the Company's website.

A circular, including a Notice of General Meeting, together with the related form of proxy, are also being sent to shareholders. The circular and form of proxy have been submitted to the NSM and will shortly be available for inspection on the NSM's website and on the Company's website.

INVESTMENT OBJECTIVE

The Company aims to maximise shareholders' total returns (capital and income) by investing in smaller companies that are quoted in the United Kingdom.

TOTAL RETURN PERFORMANCE TO 30 NOVEMBER 2025 (including dividends reinvested)

 Sources: Morningstar Direct, Janus Henderson, LSEG Datastream

1 Net asset value ("NAV") per ordinary share total return with income reinvested

2 Share price total return using mid-market closing price

3 Interim dividend of 7.5p (30 November 2024: 7.5p) to be paid to shareholders on 27 March 2026

4 Deutsche Numis Smaller Companies Index (excluding investment companies) total return

5 Average NAV total return of the Association of Investment Companies ("AIC") UK Smaller Companies sector

6 Average share price total return of the AIC UK Smaller Companies sector

FINANCIAL SUMMARY

 *Note: November figures show the interim dividend in each respective year. May figures show the final dividend for the 12 months.

INTERIM MANAGEMENT REPORT

CHAIR'S STATEMENT

Dear Shareholder

Markets generally rallied worldwide over the period under review as investors took comfort from an improvement in the global backdrop. Trade relations became less strained following the reversal of some previously announced tariffs, while interest rate cuts in both the UK and the US further supported confidence.

Closer to home, UK shares faced some headwinds as uncertainty built ahead of the Government's November 2025 Budget. However, once the details were published, the measures proved less restrictive than many had feared, helping to calm concerns in gilt markets; this more settled environment should provide a supportive backdrop for UK small-cap equities.

Despite these UK domestic headwinds, our portfolio posted positive returns during the period under review. However, the Board recognises that the Company's performance remains behind its benchmark. During the half year, refinements to the investment process were implemented to strengthen stock selection while maintaining the Company's core investment philosophy. The fund management team has made tangible progress in increasing conviction and reducing the number of holdings in the portfolio and this has helped to improve performance during the period under review. 

In November we were delighted to welcome Cassie Herlihy to the fund management team; Cassie will work with Indri van Hien and longstanding team member Shiv Sedani to further the evolution of the investment process, whilst ensuring that the core philosophy of investing in growth at the right price remains.

Performance

During the six months to 30 November 2025, the Company's net asset value ("NAV") total return increased by 5.0%, compared with a 7.4% rise in the Deutsche Numis Smaller Companies ex-Investment Companies Index and 4.8% for the AIC UK Smaller Companies sector average NAV.

The Company's share price total return rose by 4.5% over the same period, reflecting improved sentiment despite discount pressures.

Dividend and earnings

The Board is pleased to declare an interim dividend of 7.5p per share (30 November 2024: 7.5p). The dividend will be paid on 27 March 2026 to shareholders on the register at 13 March 2026. The shares will be quoted ex-dividend on 12 March 2026.

The Board remains committed to maintaining the Company's longstanding record of dividend growth, underpinning its status as an AIC Dividend Hero. Barring any unforeseen developments, the Board's intention is to recommend an increased final dividend.

Share rating, buybacks and discount

The Company's shares traded at a relatively stable discount to NAV during the period, moving from 9.2% on 31 May 2025 to 9.8% on 30 November 2025, narrower than the AIC UK Smaller Companies sector average discount of 14.8%.

The Board monitors the discount closely and undertakes buybacks when it believes this is in shareholders' best interests. In challenging market conditions, discounts across the sector have widened significantly. The Board considered the prevailing discount an opportunity to enhance shareholder value and therefore continued its active buyback programme.

During the six months under review, the Company repurchased 8,913,840 shares, representing 12.0% of share capital, all of which were placed in Treasury. These buybacks enhanced NAV by approximately 1.0%.

Since the period end and up to 23 January 2026, a further 1,702,497 shares, representing 2.3% of share capital, have been repurchased.

General meeting to renew share buyback authority

The Board is convening a general meeting at 9.30 am on Wednesday, 4 March 2026 to seek shareholder approval to renew the Company's authority to buy back up to 14.99% of the Company's issued share capital (excluding Treasury shares). Of the authority to repurchase 9,389,123 shares granted at the last AGM, the Company has repurchased 4,764,278 as at 23 January 2026, representing 8.2% of issued share capital (excluding Treasury shares).

The Board is asking for a new share buyback authority for the following reasons:

§ over half the current buyback authority granted at the 2025 AGM has been used;

§ renewing the share buyback authority now will ensure the Company remains able to buy back shares;

§ buying back shares below NAV is part of the Company's approach to discount management and it enhances the NAV for shareholders; and

§ the Board will only use the authority when it believes it benefits shareholders.

Accordingly, the Company has today published a Circular setting out further details of the proposal to renew the share buyback authority. The Circular includes the notice of meeting to convene a general meeting at which the appropriate shareholder authority will be sought.

Fund Manager and Board changes

As already announced, Neil Hermon retired from the asset management industry during the period. The Board appointed Cassie Herlihy as Deputy Fund Manager, supporting Indri van Hien, who continues to lead the team. Cassie joins us from Gresham House, where she was part of an investment team managing multiple portfolios focused on UK small caps. She has eight years of financial industry experience.

On governance, Victoria Sant retired from the Board following the AGM on 7 October 2025 after nine years of dedicated service. Following her departure, the Board now comprises five members.

Continuation vote

At the AGM in October 2025, shareholders voted overwhelmingly in favour of the continuation of the Company, with 95% of votes cast supporting the resolution. This strong endorsement reflects confidence in the Company's strategy and the advantages of the investment trust structure, including the ability to employ gearing to enhance returns and the flexibility to smooth dividend payments over time.

Outlook

While we must acknowledge that the recent UK Budget was a missed opportunity for the Government to advance its growth agenda, it has however brought much needed clarity for all stakeholders. UK consumers continue to see real wage increases, corporates are benefitting from falling (but still restrictive) interest rates and both groups are sitting on strong balance sheets. Confidence is the catalyst needed to drive investment, hiring and spending decisions, and we are hopeful that this rebuilds in the wake of the budget.

Amid persistent geopolitical challenges, US and European interest rates continue to fall, coupled with further fiscal stimulus. However, we remain cautious on inflation and overheating risks, reinforcing the growing emphasis on portfolio diversification.

In navigating these challenging conditions, the Company's portfolio continues to have a quality bias and holds companies with robust business models that are able to forge their own paths. These companies are soundly financed and are being run by management teams whose incentives are aligned with our own. The attractive valuations in this part of the market are well-documented. These claims are validated by continued in-bound merger and acquisition ("M&A") activity and ongoing share buyback programmes being sanctioned by boards.

Over the long term, the Company seeks to capture the well-established small-cap premium: that is, the long-term outperformance of small caps over large caps driven by factors such as higher growth prospects and higher alpha-generating opportunities in this under-researched part of the market. Whilst the small-cap factor has proved elusive in the UK over the last 10 years, with budget uncertainty now resolved and relative stability restored in gilt markets, we are optimistic about investor attention returning to company fundamentals and technical pressure caused by outflows abating. The recent reform of the UK Listing Rules suggests there is movement aimed at coaxing companies back to the UK market, but more could always be done.

While much market commentary is focused on US asset bubbles, we are reminded of the compelling opportunities UK smaller companies offer, bringing diversification and growth potential to portfolios. We believe UK smaller companies continue to deliver exciting growth opportunities to long-term investors, and remain confident in the ability of our Fund Managers to draw on their consistent and disciplined investment approach to generate significant long-term value.

Penny Freer

Chair of the Board

27 January 2026

FUND MANAGER'S REPORT

Market review - six months to 30 November 2025

The broad UK equity market rose over the period. Markets were buoyed by the considerable easing of global trade tensions following the reciprocal tariffs announced by the US on 'Liberation Day' in April alongside easing monetary policy in both the UK and US. During the period under review, the US Federal Reserve cut the base rate three times whilst the Bank of England cut once, taking rates to 3.75%-4.0% and 4% respectively.

In the UK, intense speculation in the run up to a seasonally later-than-usual Autumn Statement caused volatility in sterling and long-dated UK gilt yields. Both business and consumer confidence were undermined during the noisy run up which will have had an adverse impact on GDP growth in the short term. The Government's second Budget included some significantly back-end-loaded tax rises to fund the higher-than-expected fiscal headroom and increased spending in welfare and public services, a move which sought to appease both parliamentary back-benchers and the gilt markets. Initial conclusions from economists are that the Budget appears to have short-term deflationary impulses but a neutral impact on longer-term forecasts. UK 10-year gilt yields fell in the period under review and sterling depreciated against the US dollar.

Oil prices trended lower in the period as OPEC announced production hikes despite a weakening backdrop for demand. Gold and commodity prices rallied as geopolitical tensions persisted.

In this environment, and continuing the trend which has overshadowed the performance of UK smaller companies in recent years, smaller companies underperformed their larger counterparts, with the Deutsche Numis Smaller Companies ex Investment Companies Index up 7.4% against a rise in the FTSE All-Share Index of 11.8%.

Fund performance

The Company has delivered positive absolute returns in the period but has underperformed its benchmark. The share price rose by 4.5% and NAV by 5.0% on a total return basis. This compared with the Deutsche Numis Smaller Companies ex-Investment Companies Index rise of 7.4% in total return terms. The underperformance was attributable to negative contributions from stock selection and expenses, whilst gearing and the ongoing share buyback have been positive contributors to performance. The negative contribution from stock selection reflects the strong performance of certain benchmark stocks that fall outside our investment criteria, which focuses on growth businesses with high-quality fundamentals trading at reasonable valuations and meeting liquidity requirements. In addition, there were a small number of company-specific issues in stocks we did own which impacted performance; we continue to monitor and adjust our exposure to these stocks to reflect our analysis of and conviction in their future prospects.

Gearing

Gearing started the period at 10.2% and ended at 13.9%, underlining our confidence in the outlook for our portfolio. Debt facilities are a combination of £30m unsecured loan notes at an interest rate of 3.33%, £20m unsecured loan notes at 2.77% and £70m short-term bank borrowings. As the net asset value rose in the period, the use of gearing was a positive contributor to performance.

Attribution analysis

The following tables show the top five contributors to, and detractors from, the Company's relative performance. Some of the stocks are included in the benchmark index but not held by the Company. These have an effect on relative performance.

Principal contributors

Balfour Beatty is an international construction, support services and infrastructure investor group. Just Group is a provider of pension risk transfer services and individual annuities. Wizz Air is an Eastern European-based low-cost airline operator. WH Smith is a global convenience store operator, with retail outlets located in airports and railway stations. Breedon is a construction and materials company with operations in the UK and US.

Principal detractors

Goodwin is a global engineering group specialising in mechanical and refractory engineering. SolGold is a gold and copper exploration company. Gamma Communications is a B2B telecommunications provider operating in the UK and Europe. Softcat is a value-added reseller of IT infrastructure in the UK. Ceres Power is a clean-energy technology company specialising in green hydrogen.

Portfolio activity

Our approach is to consider our investments as long term in nature and to avoid unnecessary turnover. The focus has been on adding stocks to the portfolio that have good growth prospects, sound financial characteristics and strong management, at a valuation level that does not reflect these strengths. Likewise, we have been employing strong sell disciplines to dispose of stocks that fail to meet these criteria.

During the period, we added to a number of positions in our portfolio and increased exposure to those stocks which we feel have further catalysts to drive strong performance.

New additions to the portfolio include: CVS, a veterinary services provider operating in the UK and Australia; Elementis, a global speciality chemical company; Mitie, a facilities management and specialist support services business; SSP Group, a leading global operator of food and beverage outlets in travel hubs; and Tatton Asset Management, a managed portfolio services provider to independent financial advisers in the UK.

In addition, we added to our existing positions in: Genus, a leading global porcine and bovine genetics supplier; Oxford Biomedica, a contract development and manufacturing organisation specialising in viral vector development for cell and gene therapies; and Chemring, a UK-based provider of defence technology products and services. 

To balance the additions to our portfolio, we have disposed of positions in companies where a reassessment of the investment thesis indicated weaker prospects with a diminished return potential or where the valuation had become extended, including holdings in Cohort, Domino's Pizza, Eurocell, Genuit, Grainger, Impax Asset Management, Keller and Tribal.

Market outlook

There was little positive to say about how the Government handled the run up to the November Budget and the destruction in corporate and consumer confidence that ensued. However, we are encouraged by the material uplift in fiscal headroom that the Budget has delivered and the relative calm that the gilt market has shown in its wake. Furthermore, tax-raising measures were not as punitive as expected and the inflationary impulses that the 2024 Budget delivered were nowhere to be seen. As the noise abates and short-term uncertainty is removed, there is good reason to believe that confidence can rebuild. 

The Government faces the unenviable challenge of reviving economic growth while walking a fiscal tightrope. The building blocks are in place (resetting of the UK's trading relationship with Europe, deregulation of financial services and planning reform) and there are signs that the Government understands the need to get the private sector back onside and attract foreign investment. Political pressure and the Government's inability to put growth at the heart of new policy have hampered tangible progress so far. After two heavy-handed tax-raising budgets, the Government remains deeply unpopular and we are alive to the possibility of a change in leadership after the local elections this May.

Sticky inflation, which remains above target in both the US and UK, continues to drive uncertainty around the timing of when rates will be cut further and the speed of their descent. However, softening labour market data in the UK should encourage a dovish tilt from the Bank of England. Furthermore, the continued prospect of the monetary easing cycle after a period of restrictive rates is likely to support global equity markets and slowly allow valuation multiples to normalise.

Geopolitics are set to remain challenging. Conflicts in Ukraine and the Middle East are struggling to reach stable resolutions and heightened tensions between China and the US persist. These themes are not new and corporate management teams are becoming accustomed to supply chain upheaval. We take comfort in this and the strong balance sheets of both corporates and consumers, noting that they are intrinsically healthier than they were ahead of the Global Financial Crisis in 2008-2009.

After a lost decade in UK smaller companies, starting with uncertainty about the EU referendum vote, we see good reasons why fortunes could change, and history will show that small caps perform best after periods of economic dislocation. UK small-cap valuations remain attractive and sit well below long-term averages while earnings forecasts are beginning to stabilise after a sharp adjustment in economic activity following the step change in higher interest rates seen in the last three years. Valuations also remain markedly depressed versus other developed markets, even on a sector-adjusted basis. The persistent in-bound M&A activity the market is experiencing suggests that many market players are already taking notice. We are also seeing an increasing number of companies buying back stock in recognition of the deep undervaluation of their own equity. Finally, there have been some green shoots in the initial public offering ("IPO") market, potentially signalling that confidence in the UK equity market is slowly rebuilding.

We acknowledge the uncertainty around economic conditions, but we have confidence that our long-standing investment process will yield a well-diversified portfolio of companies on attractive multiples that can deliver cash-generative growth. The investable universe continues to offer compelling opportunities; with high-quality businesses whose valuations have been distorted by broader market weakness rather than company-specific issues. In the UK, many companies continue to trade at significant discounts to historical levels and international peers.  However, just because something is cheap does not make it a sound investment. This is a stockpicker's market and our enhanced investment processes and disciplined bottom-up stockpicking approach enable us to cut through market noise, avoid value traps, and focus on businesses aligned with long-term growth themes, where management teams have clear self-help levers to drive profitable growth despite macro headwinds. We remain confident in our ability to create long-term value through a consistent, rigorous investment process that has delivered so powerfully over time.

​

Indriatti van Hien, Fund Manager

Cassie Herlihy, Deputy Fund Manager

27 January 2026

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business fall broadly under the following categories:

• investment activity and strategy;

• legal and regulatory;

• operational; and

• financial instruments and the management of risk.

Detailed information on these risks is given in the Strategic Report and in the Notes to the Financial Statements in the Company's Annual Report for the year ended 31 May 2025.

In the view of the Board, these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

DIRECTORS' RESPONSIBILITY STATEMENT

The directors confirm that, to the best of their knowledge:

On behalf of the Board

Penny Freer

Chair of the Board

27 January 2026

INVESTMENT PORTFOLIO

at 30 November 2025

 * Quoted on the Alternative Investment Market ("AIM")

STATEMENT OF COMPREHENSIVE INCOME

The total columns of this statement represent the Statement of Comprehensive Income, prepared in accordance with UK adopted International Accounting Standards, in conformity with the requirements of the Companies Act 2006.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

The profit attributable to shareholders for the period disclosed above represents the Company's total comprehensive income. The Company does not have any other comprehensive income.

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

STATEMENT OF CHANGES IN EQUITY

BALANCE SHEET

 STATEMENT OF CASH FLOWS

NOTES TO THE CONDENSED FINANCIAL STATEMENTS