LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN UK SMALL CAP GROWTH & INCOME PLC

UNAUDITED HALF YEAR REPORT & FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31ST JANUARY 2026

Legal Entity Identifier: 549300PXALXKUMU9JM18

Information disclosed in accordance with the DTR 4.1.3

JPMorgan UK Small Cap Growth & Income plc ('JUGI' or the 'Company') announces its half year results for the six months to 31st January 2026.

Highlights

·      NAV total return for the six months to 31st January 2026 was +5.3% (with net dividends reinvested), compared to the benchmark (Numis Smaller Companies AIM plus ex Investment Companies Index,) return of +8.9% for the same period. Share price total return was +6.8% for the period.

·      Five-year cumulative NAV total return to 31st January 2026 was +26.5%, compared to the benchmark return of +18.3%. Five-year share price cumulative total return was +25.4% 

·      Ten-year cumulative NAV total return to 31st January 2026 was +146.2%, compared to the benchmark return of +81.6%. Ten-year share price cumulative total return was +172.3% 

·      The Company consistently ranks in the top quartile across three-, five- and ten-year periods when viewed against its most directly comparable peer group of investment companies 

·      The portfolio underperformed its benchmark over the six-month period primarily due to stock-specific issues affecting two holdings, Warpaint London and Baltic Classified (both positions have now been exited).  The portfolio's lack of exposure to two commodity names, Greatland Resources and Pan African Resources, that performed particularly strongly, also adversely impacted performance.

·      During the six months to 31st January 2026, the Company repurchased 5,340,250 shares into Treasury (equivalent to 4.3% of the shares in issue at the start of the financial year) at an average discount of 9.9%. 

·      For the financial year ending 31st July 2026, the Board intends to pay dividends totalling 14.52p per share (3.63p per quarter), based on 4% of NAV at the preceding year-end. As 7.26p per share has already been paid for the first half of the year, a further 7.26p per share is expected to be paid over the remaining six months.

Katrina Hart, Chair of JUGI, commented:

"Notwithstanding the increased uncertainty stemming from heightened geopolitics, the long-term investment case for UK smaller companies remains in place. By their very nature, they tend to innovate and grow faster than larger, mature businesses."

"It is too early to call the extent of any negative market impacts resulting from this latest conflict…however, the Board remains confident that your Company's portfolio is in skilled and experienced hands, with additional support from the Manager's extensive research resources. The recent positive performance of the majority of the portfolio's holdings, along with the Company's strong long-term performance track record, provide ample evidence of the Portfolio Managers' skill at identifying innovative, resilient companies with exciting growth prospects. In summary, we believe your Company is well positioned to maintain its long track record of providing shareholders with strong returns and outperformance compared to its peers, as well as an attractive, predictable income stream."

Portfolio Managers, Georgina Brittain & Katen Patel, commented:

"Despite the war in the Gulf and the potential for short term higher inflation in the UK, due largely to the rise in energy costs, we currently maintain our positive outlook on our market and the portfolio remains geared. This reflects our current view that the war will be short-lived and the economic impact on the UK muted. Our focus is therefore on the compelling opportunities we see. Whilst valuations have gradually risen over the last year, so have profits. UK mid and small caps remain very cheap relative to their own history and relative to the FTSE100. We have outlined just some of the exciting new additions we have made to the portfolio and we believe we own many companies that will deliver strong returns into the future."

CHAIR'S STATEMENT

Investment Comment and Performance

After a turbulent first half, UK equities recovered strongly in the latter months of 2025, taking their lead from buoyant global markets, despite persistent geopolitical tensions and a protracted period of uncertainty leading up to the UK Budget in November. UK equity market gains were supported by signs of improvement in the domestic economy, further monetary easing from the Bank of England and a degree of relief that the Budget did not impose as many new costs on businesses as feared.

Nevertheless, UK smaller cap companies were unable to keep pace with the gains achieved by UK large caps, reflecting their greater sensitivity to interest rates and near-term uncertainties around government policy, combined with concerns about the potentially disproportionate impact of artificial intelligence (AI) on certain smaller businesses. The Company's benchmark, the Numis Smaller Companies plus AIM (excluding Investment Companies) Index, returned a creditable +8.9% over the six months to 31st January 2026, but this was set against a rise of +13.4% for the FTSE 100 total return. Your Company generated a total return of +5.3% on net assets (with net dividends reinvested), while its share price total return was +6.8% during the period. While disappointing, this lag masks the fact that the majority of the portfolio's holdings delivered positive absolute returns over the review period. Relative underperformance was mainly the result of stock specific issues affecting just two holdings, combined with the portfolio's lack of exposure to two commodity names that performed particularly strongly. Your Managers run the portfolio very differently from an index tracker, as reflected in the portfolio's high active share of 79% (referring to the proportion of the portfolio that diverges from the benchmark). We believe this approach is crucial to generating superior returns over the longer term and one that is valued by our shareholders.

With this in mind, shareholders should take considerable comfort from the fact that your Company has outperformed its benchmark on an annualised basis in both net asset value (NAV) and share price terms over the three-, five- and ten-year periods to 31st January 2026 - see detailed long term performance on page 7 of the Company's Half Year Report for the six months to 31st January 2026 ('2026 Half Year Report'). It also consistently ranks in the top quartile across these time periods when viewed against its most directly comparable peer group of investment companies.

The Investment Manager's Report on pages 13 and 14 of the  2026 Half Year Report provides more detail on recent performance, portfolio positioning and the investment outlook.

Enhanced Dividend Policy

The Company operates an enhanced dividend policy, targeting a 4% annual yield based on the unaudited NAV as at the end of the preceding financial year. This means that dividends are funded by a combination of income generated by the underlying portfolio during the financial period and by distributable reserves built up by the Company over time. This approach affords the Portfolio Managers the flexibility to invest for optimum total returns. The Company pays four equal quarterly interim dividends, declared in August, November, February and May and typically paid in October, January, April and July each year.

In August 2025, the Company announced that the unaudited cum income net asset value at the close of business on 31st July 2025 (the Company's preceding year-end) was 362.58 pence per share (2024: 376.24 pence per share). In line with the Company's distribution policy, the Directors declared the first quarterly interim dividend of 3.63 pence per share for the year ending 31st July 2026 (2025: 3.76 pence per share for the year ending 31st July 2025), which was paid in October 2025. A second interim dividend of 3.63 pence per share was paid in January 2026 and it is anticipated that two further interim dividend payments, each of 3.63 pence per share, will be made in April and July 2026. This will take the 2026 annual dividend to 14.52 pence per share (2025: 15.04 pence per share).

Gearing

The Company has maintained a fairly constant level of gearing, although the Board gives the Portfolio Managers flexibility to adjust the gearing tactically within a range of 10% net cash to 15% geared in normal markets. During the reporting period, the Company's gearing ranged from 8.4% to 12.5%, ending the reporting period at 10.8%, as the Portfolio Managers took advantage of attractive valuations.

Gearing enhanced performance during the six-month review period and the Board remains of the view that gearing is an efficient way to enhance long-term returns for shareholders, albeit at the cost of a small increase in short-term volatility. When arranging lending facilities for the Company, the Board takes into consideration the cost of borrowing. The level of gearing is regularly discussed with the Portfolio Managers and is adjusted by them to reflect the risk appetite within parameters set by the Board.

During the last financial year ended 31st July 2025, the Company secured a new £55 million 360-day revolving facility with Bank of America, offering improved and more flexible terms compared to the previous arrangement. The facility includes an option to increase the loan by £35 million up to £90 million. In July 2025, the Company exercised £5 million of this option, resulting in a total commitment of £60 million as of 31st July 2025. However, the Company has since repaid this £5 million, reducing the total commitment back to £55 million as at 31st January 2026.

Discount

The discount at which the Company's shares trade relative to NAV narrowed slightly over the review period, reducing from 9.5% at the end of the 2025 financial year to 8.4% at 31st January 2026. This was narrower than the prevailing average discount of the Company's UK smaller cap peers.

The Board believes it is of significant benefit to shareholders that the Company's shares trade consistently close to their NAV and we strive to achieve this by making the investment proposition as attractive as possible to existing and prospective shareholders. To this end, we remain committed to supporting the share price by paying an attractive and reliable dividend, communicating the investment case effectively and actively considering further growth opportunities that would deliver scale benefits to shareholders. In the Board's view, your Company's superior long-term performance track record and share rating put it in a strong position to lead the ongoing process of rationalisation underway across the investment trust sector.

 In addition, our broker and Manager continually review the Company's rating and, in consultation with the Board, utilise the buy-back authority to manage imbalances in supply and demand for the Company's shares when it is considered that it will be effective and in the interests of all shareholders. During the six months to 31st January 2026, the Company repurchased 5,340,250 shares into Treasury (equivalent to 4.3% of the shares in issue at the start of the financial year) at an average discount of 9.9%. Over the same period, the Company's UK smaller cap peers bought back an average of 6.0% of their shares in issue excluding shares in Treasury. The Board is therefore pleased to note that your Company's superior rating has been achieved with below average shrinkage to its capital base. The Company did not issue any ordinary shares either during the reporting period or subsequently.

At the end of the reporting period, there were 139,141,277 shares in issue (including 14,029,991 shares held in Treasury). Between the period end and 27th March 2026, the Company has repurchased a further 125,000 shares into Treasury (equivalent to  0.1% of the ordinary shares in issue as at 31st January 2026) at an average discount of 9.0 %. The discount stood at 9.9 % at this date.

Board of Directors

The Board consists of five members, which the Directors believe is an appropriate number for the needs of the Company. A thorough appraisal process conducted during the year confirmed that the Board has all the relevant skills and experience to support the Company's ongoing success. Alice Ryder, who joined the Board in February 2017, will retire at the Company's 2026 AGM in November following the end of her nine-year tenure. The Board will shortly commence the search for her replacement using an independent recruitment consultant and will update shareholders on the results of this search in due course.

Staying in Touch

Your Board believes it is vitally important that shareholders have regular information about the Company's progress. If you have not already done so, please consider signing up for our email updates featuring news and views, as well as the latest performance of the portfolio. You can opt in via the QR Code on page 3 of the 2026 Half Year Report or via the following link: www.jpmorganuksmallcapgrowthandincomeplc.com.

Outlook

Notwithstanding the increased uncertainty stemming from heightened geopolitics, the long-term investment case for UK smaller companies remains in place. By their very nature, they tend to innovate and grow faster than larger, mature businesses. This inherent vibrancy has seen UK smaller companies outperform larger UK companies over the past 25 years. Their performance has been close to that of the S&P 500 and they have outpaced other major markets over the same period.

Furthermore, after a period in the doldrums, valuations of UK smaller companies are now at compelling levels relative to their own history and compared to UK large caps and other major markets. A resurgence in international investor flows into the UK, combined with an increase in mergers and acquisitions, suggests that investors are beginning to appreciate the value on offer in UK equity markets. As has already been demonstrated by takeover activity within the Company's portfolio, smaller cap stocks are likely to be a particular beneficiary of this newfound appetite for UK equities due to their relative affordability. Until the outbreak of the Iranian war in recent weeks, there were also signs of gradual improvement in the UK economy, which should support smaller companies disproportionately, as they are typically more reliant on domestic economic activity than their larger counterparts.

It is too early to call the extent of any negative market impacts resulting from this latest conflict, however the trajectory for inflation and hence, interest rates, looks less favourable as I write. Fortunately, the Board remains confident that your Company's portfolio is in skilled and experienced hands, with additional support from the Manager's extensive research resources. The recent positive performance of the majority of the portfolio's holdings, along with the Company's strong long-term performance track record, provide ample evidence of the Portfolio Managers' skill at identifying innovative, resilient companies with exciting growth prospects.

In summary, we believe your Company is well positioned to maintain its long track record of providing shareholders with strong returns and outperformance compared to its peers, as well as an attractive, predictable income stream. My fellow Directors and I look forward to reporting on the Company's continued progress and thank you for your ongoing support.

Katrina Hart

Chair                                                                                                                                                30th March 2026

INVESTMENT MANAGER'S REPORT

Performance and Market Background

As we said six months ago, global geopolitical tensions remained in the foreground during the first half of our financial year to 31st July 2026. Russia's war against Ukraine continued for its fourth year, the president of Venezuela was ousted and Iran became an incredibly volatile situation. In addition, the President of the US continued to surprise markets in numerous ways, not least with regard to his comments on Greenland. One positive during the period was that the third ceasefire in Gaza between Israel and Hamas, which took place in October 2025, has to date remained in force. Amid heightened tensions in the Middle East, we maintain a disciplined approach and are closely monitoring developments.

In the UK, Labour's second Budget again rattled the stock market and its 18 months in power have been notable for the number of U-turns and climbdowns that it has been compelled to make. That said, the UK economy has gently but positively surprised many commentators. Interest rates continued to fall and were reduced twice in the six months to 3.75%, bringing the total number of rate cuts since August 2024 to six. Whilst inflation continued to exceed the 2% target, there were strong expectations that it would fall to 2% this Spring. However, this view has now been upended by the US/Israeli attack on Iran.

Against this backdrop, the Numis Smaller Companies plus AIM (ex Investment Companies) Index was up +8.9% for the period. Your Company underperformed during the half year and produced a total return on NAV of +5.3 %. Share price volatility, especially among small and mid-sized companies, driven by macro news flow, commodity price movements and concerns about the impact of AI on certain business models, continues to make performance challenging. We outline below the specific reasons for our underperformance relative to the benchmark. Even so, your Company remains first quartile versus small cap peers over two, three, five and ten years. Moreover, the discount narrowed over the year, leading to a share price total return of +6.8%.

Portfolio

On the positive side, a number of our largest positions contributed strongly to performance over the period. These included our long-term holdings in Lion Finance (previously named Bank of Georgia), Plus500 (CFD trading) and Keller (geotechnical specialist contractor). Other notable strong performers included Applied Nutrition, a nutrition supplements company we bought at IPO approximately one year ago, Serco (defence company) and Hochschild (gold and silver miner), our largest commodity holding. In addition, we benefitted from ongoing M&A within the UK equity market, with bids for two of our holdings in the Financials sector, JTC and Just Group. On the negative side, two of our holdings were major detractors. Our position in Warpaint London (value cosmetics) disappointed in terms of profit delivery, as did Baltic Classified (online classified ads in the Baltics), which was also hit by concerns over disintermediation by AI and both positions were exited. Other notable detractors from performance were two commodity companies, Greatland Resources and Pan African Resources, both of which rose significantly in the six months under review and neither of which were held in the portfolio. Both have subsequently left our index.

During the period we made certain other changes to the portfolio, in part due to the receipt of cash from our bid stocks. New additions included Norcros, the bathroom and kitchen products company; Boku, a local payment network company; Saga, the provider of services to the over 50s market, including financial products and cruises; and Funding Circle Holdings, a multi-product finance platform for SMEs, which facilitates access to capital for these companies. We also bought small positions in two IPOs during the second half of 2025, namely The Beauty Tech Group and the UK specialist bank Shawbrook.

Outlook

At the time of writing, all focus is on the events in the Middle East and all questions revolve around a potential end date to the conflict.  Prior to the war, the economic backdrop for UK companies had started to become more benign.  Public finances had recently proved stronger than anticipated and this had driven expectations of a  reduction in government borrowing in 2026.  As a result of this, bond yields were declining and further interest rate cuts had looked to be on the cards this year.  Instead, bond yields are now rising again and any interest rate cuts are firmly on hold, as we all await the outcome, longevity and impact of these geopolitical events.

Recent UK statistics demonstrate that unemployment, whilst rising, remains fairly low at 5.2 % (and hopefully a further government U-turn on the extension of the national living wage to younger workers will improve the employment situation for them). The composite UK Purchasing Manager Indices at 53.9 are at almost a two year high and indicate growth. Whilst the all-important Gfk consumer confidence figures are still negative, they had been slowly trending in the right direction. In aggregate, household balance sheets are now a net positive £60 billion, from a £350 billion net debt figure early in 2020. Prior to the recent events in the Middle East it was our view that this should at some point turn into increased consumer spending - and as a consumer driven economy, this is crucial for the outlook.

Despite the war in the Gulf and the potential for short term higher inflation in the UK, due largely to the rise in energy costs, we currently maintain our positive outlook on our market and the portfolio remains geared. This reflects our current view that the war will be short-lived and the economic impact on the UK muted. Our focus is therefore on the compelling opportunities we see. Whilst valuations have gradually risen over the last year, so have profits. UK mid and small caps remain very cheap relative to their own history and relative to the FTSE100. Your Company remains cheaper still, both on a P/E basis relative to its benchmark and on a free cashflow yield basis. We have outlined above just some of the exciting new additions we have made to the portfolio and we believe we own many companies that will deliver strong returns into the future. We do not expect the increased share price volatility that we have been seeing to dissipate - whether AI related or not - and intend to continue utilising it to your Company's advantage. We have outlined above the continued M&A we have benefitted from in the portfolio over the first half of this financial year and we reiterate our view that the level of M&A and the number of companies initiating share buy backs due to their cheap equity in our area of the market, confirm the compelling undervaluation that we continue to see.

Georgina Brittain

Katen Patel

Portfolio Managers                                                                                                                          30th March 2026

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half year report:

Principal and Emerging Risks and Uncertainties

The principal risks and uncertainties faced by the Company have not changed significantly and fall into the following broad categories: strategic and performance; discount/premium; smaller company investment and market;  political and economic; investment management team; accounting, legal and regulatory; cybercrime; and climate change. Information on each of these areas is given in the Strategic Report within the Annual Report and Financial Statements for the year ended 31st July 2025 and 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 period under review. As noted in the 2025 Annual Report, the Board, through the Audit Committee, has identified Artificial Intelligence (AI) as an emerging risk due to its potential to disrupt and enhance business processes, with implications for long-term corporate valuations still uncertain.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Going Concern

The Directors believe, having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio (including its liquidity) and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least 12 months from the date of the approval of this half year financial report. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

(i)      the condensed set of financial statements contained within the half year financial report has been prepared in accordance with FRS 104 'Interim Financial Reporting' and gives a true and fair view of the state of affairs of the Company and of the assets, liabilities, financial position and net return of the Company, as at 31st January 2026, as required by the UK Listing Authority Disclosure and Transparency Rules 4.2.4R; and

(ii)     the half year management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure and Transparency Rules.

In order to provide these confirmations and in preparing these financial statements, the Directors are required to:

•        select suitable accounting policies and then apply them consistently;

•        make judgements and accounting estimates that are reasonable and prudent;

•        state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•        prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business;

and the Directors confirm that they have done so.

For and on behalf of the Board

Katrina Hart

Chair                                                                                                                                                30th March 2026

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

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

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The 'Net return/(loss) after taxation' represents the profit or loss for the period and also the total comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

¹     Revenue reserve, Other reserve and part of the Capital reserves form the distributable reserves of the Company and may be used to fund distribution of profits to shareholders, including the repurchase of the Company's own shares. In respect of the Capital reserves, £110,581,000 relates to net investment holding gains.

²     Other reserve was created during the year ended 31st July 2025 following approval by the High Court to cancel the balance on the Share premium account as at close of business on 1st August 2024. This forms part of the Company's distributable reserves.

CONDENSED STATEMENT OF FINANCIAL POSITION

¹     Other reserve was created during the year ended 31st July 2025 following approval by the High Court to cancel the share premium account as at close of business on 1st August 2024.

CONDENSED STATEMENT OF CASH FLOWS

 ¹     The term 'cash and cash equivalents' is used for the purposes of the Statement of Cash Flows.

​

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 31st January 2026

1.  Financial statements

The information contained within the condensed financial statements in this half year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 31st July 2025 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and including the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2.  Accounting policies

The financial statements are prepared under the historical cost convention, modified to include fixed asset investments at fair value, in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP'), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the Association of Investment Companies in July 2022.

FRS 104, 'Interim Financial Reporting', issued by the Financial Reporting Council ('FRC') in March 2015 has been applied in preparing this condensed set of financial statements for the six months ended 31st January 2026.

All of the Company's operations are of a continuing nature.

3.  Return/(loss) per ordinary share

4.  Dividends

Dividend paid and declared

All dividends paid in the period have been funded from the Revenue reserve and partly from other distributable reserves.

The Company has introduced an enhanced dividend policy, targeting a 4% yield on the NAV per annum, calculated on the basis of 4% of NAV as at 31st July each year, being the end of the preceding financial year of the Company. Under the enhanced dividend policy, the Company has transitioned from paying a single annual dividend to distributing four equal quarterly interim dividends. These dividends will be announced in August, November, February and May and are expected to be paid in October, January, April and July each year.

A third quarterly interim dividend of 3.63p per share amounting to £4,542,000, has been declared payable for the year ending 31st July 2026. This will be paid on 1st April 2026 to shareholders on the register at the close of business on 20th February 2026. The ex-dividend date will be 19th February 2026.

5. Net asset value per ordinary share

6.  Fair valuation of investments

The fair value hierarchy disclosures required by FRS 102 are given below:

¹     JPMorgan GBP Liquidity Fund, a money market fund.

²     The figures for the six months ended 31st January 2025 have been restated to include the current asset investment in JPMorgan GBP Liquidity Fund as Level 2.

7.  Analysis of changes in net debt

¹     JPMorgan GBP Liquidity Fund, a money market fund.

JPMORGAN FUNDS LIMITED

30th March 2026

For further information, please contact:

Anmol Dhillon

For and on behalf of

JPMorgan Funds Limited

Telephone: 0800 20 40 20 or or +44 1268 44 44 70

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

ENDS

A copy of the half year report will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The half year report will also shortly be available on the Company's website www.jpmorganuksmallcapgrowthandincomeplc.com where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.