STS Global Income & Growth Trust plc

LEI: 549300UZ1Y7PPQYJGE19

Half-year financial report

Six months to 30 September 2025

FINANCIAL HIGHLIGHTS

_{Source: Lipper; LSEG Data & Analytics}

^ For details of all Alternative Performance Measures refer to the half-year report.

INTERIM MANAGEMENT REPORT

Chair's statement

Introduction

This is my first half year report as Chair of your Company. My predecessor, John Evans, stepped down at the Company's last AGM and I would like to take this opportunity to thank him for his significant contribution - he will be much missed. As a result of this, I am pleased to announce that Alexandra Innes has become the Senior Independent Director and Bridget Guerin the Chair of the Marketing and Communications Committee.

In addition, we were delighted to share in May that Tomasz Boniek has become Co-Manager of the Company, alongside James Harries, having worked on the Global Income strategy since its inception at Troy.

Performance overview

The Company's performance over the period to 30 September 2025 was positive, with our net asset value ('NAV') per share increasing by 1.9%, but this lagged our comparison index, the Lipper Global - Equity Global Income Index, which recorded a return of 8.3%. While we are disappointed not to have matched that performance level, we believe your Manager's philosophy and portfolio positioning has remained consistent, and the gap is explained by current market dynamics.

Recent market performance, particularly in the US, has been driven by a relatively narrow group of large technology and AI-linked stocks, now often referred to as "MANGO" (Microsoft/Meta, Apple/Anthropic, NVIDIA, Google, OpenAI). Beyond Microsoft, we have no exposure to this cohort in our portfolio, which remains focussed on high-quality, dividend-paying companies trading on attractive valuations. As a result, as market exuberance has shifted toward these stocks, our low relative exposure has contributed to our relative underperformance.

The past six months have been characterised not only by enthusiasm for AI but also by a complex mix of macroeconomic and geopolitical forces. Inflation has eased but remains above target in many markets; interest rates have stayed higher for longer; and global trade relations have become more fractious, with new tariff proposals and industrial policy interventions adding to uncertainty.

We continue to maintain a globally diversified equity portfolio emphasising companies with strong cash flows, resilient business models and sustainable dividend capacity. In an environment of heightened valuations and narrow market leadership, our focus remains on preserving capital and generating returns over the long term.

During the period under review, there was a narrowing of your Company's discount to NAV at which the share price traded over the period and the share price total return was 3.0%.

Dividends

As set out in our last Annual Report, we significantly increased our dividend, representing a yield of 3.5% on the closing share price as of 31 March 2025. We are looking to maintain this level of yield in the current year and as such grew our first interim dividend in order that shareholders receive the higher dividend payment at the earliest opportunity. The Board was pleased to declare a first interim dividend of 2.1 pence per ordinary share in September 2025, taking our yield to 3.7% for the first quarter. We believe this yield remains competitive within the broader global equity income sector, and we will continue to monitor it carefully in line with market conditions and portfolio performance.

Discount management

Your Company operates a discount control mechanism with the objective of ensuring that, in normal market conditions, the shares trade consistently close to their net asset value per share. Your Company will buy back shares to maintain a narrow discount to ensure liquidity is available when required by the market. We believe this has had several benefits throughout the last two years, providing confidence to existing and new shareholders. During the period under review, 4,388,000 shares were purchased and, due to market demand, 225,000 shares were issued.

Outlook

Looking forward, we recognise that global equity markets may face a number of headwinds: sustained inflation, interest rate uncertainty, evolving trade and tariff dynamics and the risk that the narrow group of companies leading stock markets in recent years may come under pressure. At the same time, this may well create opportunity. We believe the Company is well positioned for any potential bumpiness ahead. Our diversified portfolio, with a bias to quality income-generating businesses, is designed to perform in a less exuberant  market environment.

While we do not seek to predict when leadership in equities may rotate, we are mindful that valuations outside the "MANGO" cohort have already begun to reflect more moderate expectations, and this may favour the investment style we employ. Our conviction remains that investors anticipating greater uncertainty and increased dispersion of returns may be better served by a strategy grounded in income and capital preservation.

On behalf of the Board, I would like to thank shareholders for their continued support and for the trust you place in us. We remain committed to the long-term objectives of the Company: rising income, capital preservation and steady growth. Alexandra Innes and I have met with multiple shareholders in the last few months, and we would like to thank them for their engagement and their feedback. The Board would like to ensure that all shareholders are kept well-informed, and we would encourage those who have not already done so to consider signing up for our email updates. You can opt in via our website: https://www.stsplc.co.uk/contact-us/.

Sarah Harvey

Chair

2 December 2025

Managers' review

Having had a good start to the year, in part by protecting shareholders' capital during the Liberation Day sell off in April, the Company has been making steady progress over this short period under review albeit some way behind the comparison index. Over the six months to 30 September 2025 the Company advanced by 1.9% in net asset value terms relative to an increase of 8.3% for the index. This takes the return over 12 months to 8.7% compared to 10.4% for the index. After a long period of benign conditions in global capital markets, certainly since 2008 but arguably going all the way back to the fall of the Berlin Wall in 1989, we are in a world of structural change. Inflation and bond yields have risen, and the world is splitting once again into competing spheres of influence with China and the USA facing off against each other. Companies are no longer able to optimise costs to the same degree nor countries exploit their comparative advantages. Politics have become more divisive. Despite this the US equity market is expensive on most long-term measures. At the same time, under the surface, opportunities are presenting themselves, allowing us to improve the quality and underlying growth of the portfolio without compromising income. We have established new investments in Nike and Sysco in the period under review.

Investment outlook

Equity markets remain heavily concentrated, with an ever-greater share of returns driven by a narrow group of mega-cap technology companies. The S&P 500 is close to record highs and trades on a price/earnings multiple above 22x1. History shows that starting valuations at these levels have rarely delivered more than low single-digit annualised returns over the subsequent decade. At the same time, the market's dependence on artificial intelligence ('AI') has become more pronounced. AI is powering both share prices and economic growth, with data-centre and related infrastructure investment estimated to have added over 1% to US GDP in the first half of this year. The danger is that this optimism proves overextended: capital spending is being pulled forward, but the commercial benefits remain uncertain, with early evidence suggesting that most enterprises have yet to see tangible P&L impact from AI adoption. Should expectations falter, both market leadership and economic momentum could unwind rapidly.

This bifurcation - between elevated valuations at the index level and more attractive opportunities under the surface - remains a defining feature of today's environment. While speculative excess persists in a handful of highly valued names, many high-quality businesses are trading at multi-year lows relative to their earnings power. In our own portfolio, more than half of our holdings now trade below their ten-year average valuation multiples, despite delivering resilient results and strong free cash flow growth.

Against this backdrop, we continue to emphasise discipline and patience. Our companies are not immune to short-term share price weakness, but their competitive advantages, cash generation, and balance-sheet strength provide the resilience that we seek. Recent volatility has allowed us to establish new investments at attractive valuations as well as add to several existing investments. We will seek to continue to take advantage of overlooked opportunities in the months to come.

Portfolio review

Microsoft was a strong performer, rising by 32.6%2 over the period amid renewed optimism around its AI strategy. Reports indicated the company is recasting its relationship with OpenAI, potentially trading a reduced revenue share for a larger equity stake in a new for-profit entity. This could give Microsoft both financial upside and strategic security while ceding some of the capex burden of model training. Azure remains the dominant platform for inference compute, and Microsoft's ecosystem advantage ensures deep integration of AI into productivity and developer tools. With Copilot adoption continuing to scale and Azure growth robust, the company remains uniquely positioned to monetise the next wave of enterprise AI.

Nintendo also rose, appreciating by 23.3%2 since March. As we expected, the new Switch 2 console has been launched and has been a tremendous success. The timeless intellectual property this company possesses has been demonstrated once again as new versions of such gaming franchises as Mario, Donkey Kong and Zelda have been snapped up by gamers.  The positive reaction from the share price has meant that the valuation of the shares is now less attractive, and we have reduced the size of the investment in the portfolio as a result.

British American Tobacco ('BAT') continued its strong run. Investor sentiment improved as evidence mounted that the turnaround in new categories is gathering pace. UBS's Nicotine Survey highlighted strong momentum for Velo in the US, capturing over half of sequential category growth, and the company is also benefitting from crackdowns on illicit vapes. Combined with progress in heated tobacco and the test launch of Vuse One, this reinforced the message that BAT can deliver sustainable growth across all categories. Trading on a modest multiple with a dividend yield above 6%, the shares continue to look undervalued given the quality of the franchise and the prospect of earnings upgrades.

UK-based motor insurer Admiral Group performed well. We continue to view this business as a very well managed franchise with excellent economics. The company has navigated the recent fluctuations in the insurance market following COVID extremely well, allowing it to post very good results. Limited capital requirements enable the company to make generous payments to shareholders, with a progressive dividend policy augmented by regular special dividends.

Reckitt Benckiser also contributed positively. The shares rose on the back of stronger performance in its "Core Reckitt" divisions, with emerging markets showing robust growth and category momentum accelerating. Importantly, the sale of the Essential Home division has now been agreed, marking another step in the simplification of the group. While the disposal is dilutive to earnings, it brings greater focus to higher-growth, higher-margin categories and allows for a sizeable special dividend. Execution has improved, advertising spend is rising to support brand strength, and with litigation risks around Mead Johnson moving towards resolution, the strategic outlook looks clearer.

Paychex shares eased despite broadly steady results. The company reported solid revenue growth and resilient margins, but investor focus remains on the integration of Paycor. Management acknowledged near-term sales disruption from the deal, but reiterated confidence in achieving double-digit growth next year as synergies from cross-selling and a ramp-up in the Professional Employer Organisation ('PEO') segment take hold. While the burden of proof rests with management, client retention remains strong, margins are intact, and Paychex's recurring revenue model continues to provide stability. We see little change to the long-term investment case, and the recent share price weakness reflects execution scepticism rather than any deterioration in fundamentals.

Kenvue is a consumer health company that was spun out of Johnson & Johnson. The company has several strong brands such as Listerine, Tylenol (the brand name for acetaminophen) and Neutrogena which hold strong positions in their categories especially in the US. Kenvue declined after US health authorities announced a review of acetaminophen use during pregnancy, following studies that suggested a possible link with autism. Tylenol accounts for around 10% of Kenvue's sales, but the share of usage among expectant mothers is estimated at less than 0.5% of group revenues. The market reaction appears disproportionate, particularly as the agency itself acknowledged the absence of causal evidence. Litigation risk cannot be dismissed, but the more material story remains the ongoing strategic review and activist involvement, which could see asset sales or a sharpening of focus across the brand portfolio. In our view, Kenvue retains valuable franchises and a clear self-help opportunity.

Coloplast has continued to derate over this period. This is a medical device company based in Denmark which specialises in intimate healthcare such as ostomy and continence care. This is a specialised niche with high barriers to entry and substantial recurring demand. The declining share price has enabled us to continue to establish a long-term investment in the company at increasingly attractive valuations.

A confluence of factors has caused the Accenture share price to fall. These include slower bookings from clients, slowing government spending in the US, and structural concerns relating to the disruptive effects of AI on Accenture's business model. Our expectation is that Accenture will be in strong demand and will be able to deliver its services with fewer people to the benefit of margins in time. Having reduced the size of the holding owing to valuation we are now close to a level where we may commit further capital.

Finally, Diageo continues to be weak. We continue to think the company is experiencing a bust, following the COVID boom, which will pass. Although more structural concerns relating to changing consumer habits cannot be dismissed, we think this is more than adequately reflected in the valuation of the shares.

James Harries

2 December 2025

New holdings

Two new investments were established during this period: Nike and Sysco.

Nike is the world‑leading athletic footwear and apparel business. Nike's share price has fallen sharply over the past twelve months as the company works through an inventory build‑up across a handful of wholesale franchise channels and as renewed tariff rhetoric from the US administration has weighed on sentiment. We have followed the company for several years and believe the market reaction materially undervalues the long‑term attractions of the franchise.

Our confidence has grown under the stewardship of the recently appointed CEO, Elliott Hill. His decision to rationalise distribution and prioritise product innovation is painful in the short term, but in our view essential to protect Nike's unrivalled brand equity and ensure the company remains the pre-eminent sports brand globally.

Tariffs and the associated profit margin pressure will hurt near‑term earnings, but we see this as a temporary dislocation rather than a structural change. Assuming a recovery to Nike's historic operating margins - which we regard as a conservative base case - we bought the shares on what we believe is an attractive valuation, with the highest dividend yield of the last ten years. In addition, the balance sheet carries minimal financial leverage, affording Nike the flexibility to invest through financial market cycles.

The investment in Nike is exactly the kind of opportunity we aim to capture: buying world-class businesses when they are out of favour.

Sysco is the largest foodservice distributor in the US, serving over 700,000 customer locations across restaurants, healthcare, education, and travel. Though structurally well-placed in a growing "food-away-from-home" market, investor sentiment has soured due to recent softness in high-margin independent restaurant volumes. While this segment is recovering more slowly than expected, we believe concerns are overdone. The company's core competitive edge, its scale, is intact and growing. Sysco is taking the right steps to reignite momentum through salesforce investments and a focus on growing its specialty businesses, such as custom meat, fresh produce, and imported goods. These are categories that carry higher margins and foster customer stickiness.

At around 16x forward earnings¹, the shares are attractively valued particularly for a business with defensive characteristics, durable competitive advantages, and a 55-year record of dividend increases. Despite near-term noise, Sysco continues to grow both earnings and free cash flow, with buybacks enhancing per-share returns. We expect long-term revenue growth in the mid-single digit range and an improving capital return profile, making it a compelling income-generating holding in the portfolio. The dividend yield of 2.7% adds to the appeal in today's uncertain environment.

The new investments were funded by the sales of Medtronic and Hershey.

Tomasz Boniek

2 December 2025

¹ Source: Bloomberg

Statement of Directors' responsibilities

A review of the half year and the outlook for the Company can be found in the Chair's statement and Managers' review above.

Risk and mitigation

The Company's business model is longstanding and resilient to most of the short-term uncertainties that it faces, which the Board believes are effectively mitigated by its internal controls and the oversight of the Manager, as described in the latest annual report. The principal and emerging risks and uncertainties are therefore largely longer-term and driven by the inherent uncertainties of investing in global equity markets. The Board believes that it is able to respond to these longer-term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders' interests are materially reduced.

Risks are regularly monitored at Board meetings and the Board's planned mitigation measures are described in the latest annual report. The Board maintains a risk register and also carries out a risk review as part of its annual strategy meeting.

A detailed explanation of the principal risks and uncertainties facing the Company and how the Board manages them can be found in the 2025 annual report, which can be found on the Company's website www.stsplc.co.uk. In the view of the Board, these principal risks and uncertainties at the year end remain. The Board continues to work with the agents and advisers to the Company to manage these risks. The risks identified are as applicable to the remaining six months of the year as they were to the six months under review.

Going concern status

The Company's business activities, together with the factors likely to affect its future development, performance and position, are continually monitored by the Board.

The financial position of the Company as at 30 September 2025 is shown on the unaudited statement of financial position below. The unaudited statement of cash flows of the Company is set out below.

The Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist primarily of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a very short timescale. The Directors are mindful of the principal risks disclosed above. They have reviewed revenue forecasts and the financial position of the Company. They believe that the Company has adequate financial resources and a suitably liquid investment portfolio to continue its operational existence for the foreseeable future and for at least one year from the date of signing of these financial statements. Accordingly, the Directors consider it appropriate to continue to adopt the going concern basis in preparing these financial statements.

Related party transactions

During the first six months of the year, no transactions with related parties have taken place which have materially affected the financial position or performance of the Company. There have been no material changes in any related party transaction described in the annual report for the year ended 31 March 2025.

Directors' responsibility statement

The Directors are responsible for preparing the half yearly financial report in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

•       the financial statements have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, in particular with Financial Reporting Standard 104 "Interim Financial Reporting" and with the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the AIC in July 2022;

•           the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months of the financial year and description of principal risks and uncertainties for the remaining six months of the year); and

•            the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and charges therein).

By order of the Board

Sarah Harvey

Chair

2 December 2025

Unaudited statement of comprehensive income

The total columns of this statement are the profit and loss accounts of the Company.

The revenue and capital items are presented in accordance with the Association of Investment Companies ('AIC') Statement of Recommended Practice ('SORP 2022').

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued during the period.

Unaudited statement of financial position

Unaudited statement of changes in equity

*These reserves are distributable with the exception of the unrealised portion of the capital reserve (£31,020,000; 31 March 2025: £39,440,000; 30 September 2024: £29,444,000), which is non-distributable.

**The Company does not have any other income or expenses that are not included in the 'Net return attributable to shareholders' as disclosed in the condensed statement of comprehensive income above, and therefore this is also the 'Total comprehensive income' for the period.

Unaudited statement of cash flows

*Receipts from the sale of, and payments to acquire investment securities, have been classified as components of cash flows from operating activities because they form part of the company's dealing operations.

** Cash flows in prior periods relate to the transaction with Troy Income & Growth Trust plc in March 2024.

Notes to the financial statements

Note 1:  Accounting policies

For the six months ended 30 September 2025 (and the year ended 31 March 2025), the Company is applying The Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102'), which forms part of Generally Accepted Accounting Practice ('UK GAAP').

These condensed financial statements have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland, FRS 104 Interim Financial Reporting, and the Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ('SORP') issued by the AIC in July 2022.

The accounting policies applied for the condensed set of financial statements are set out in the Company's annual report for the year ended 31 March 2025.

Note 2:  Returns and net asset value

Note 3:  Income

During the six months to 30 September 2025 the Company did not receive any special dividends which were treated as capital (30 September 2024 and year to 31 March 2025: £nil).

Note 4: Taxation

Note 5:  Bank loans

The Company has a £20m multi-currency revolving credit facility with The Royal Bank of Scotland International Limited, which expires on 19 September 2026. As at 30 September 2025 £14,915,000 was drawn down until 22 December 2025. The amount has been drawn in the same currency split as borrowed at 30 September 2024 and 31 March 2025 - £1,500,000; €4,500,000; and US$12,750,000.

Interest is payable at the aggregate of the compounded Risk Free Rate ('RFR') for the relevant currency and loan period, plus a margin of 1.55%.

Note 6:  Analysis of net debt

Note 7: Called up share capital

During the six months ended 30 September 2025 there were 4,388,000 shares bought back into treasury at a cost of £10,693,000 (six months ended 30 September 2024: 12,402,000 shares at a cost of £27,373,000; year ended 31 March 2025: 19,356,000 shares at a cost of £43,870,000).

During the six months ended 30 September 2025 225,000 shares were issued from treasury for net proceeds of £555,000 (six months ended 30 September 2024 and year ended 31 March 2025: no shares were issued from treasury).

No shares were purchased for cancellation or cancelled from treasury in the current or prior periods.

Note 8:  Fair value hierarchy

Under FRS 102, the Company is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:

-    Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

-    Level 2: other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments, credit risk, etc); or

-    Level 3: significant unobservable input (including the Company's own assumptions in determining the fair value of investments).

The financial assets measured at fair value through profit and loss are grouped into the fair value hierarchy as follows:

There have been no transfers between levels 1, 2, or 3 during the period (period to 30 September 2024 and year to 31 March 2025: nil).

Note 9:  Half-yearly financial report

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in s434 - 6 of the Companies Act 2006. The financial information for the six months ended 30 September 2025 and 30 September 2024 has not been audited or reviewed.

The information for the year ended 31 March 2025 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under s498 (2), (3) or (4) of the Companies Act 2006.

A copy of the half-year report can shortly be downloaded at www.stsplc.co.uk.

Enquiries:

Juniper Partners Limited

Company Secretary

Email: [email protected]