Manchester & London Investment Trust Plc - Half-year Report

19 March 2025 MANCHESTER AND LONDON INVESTMENT TRUST PLC (the "Company") The Company today announces its Half-yearly Report for the six months ended 31 January 2025. A copy of the Half-Yearly Report can be accessed via the Company's website at www.mlcapman.com/manchester-london-investment-trust-plcor by contacting the Company Secretary by email onmlitcosec@cm.mpms.mufg.com. Summary of Results At At Change 31 January 2025 31 July 2024 Net assets attributable 349,791 334,099 4.7% to Shareholders (£'000) Net asset value ("NAV") 879.41 831.24 5.8% per Ordinary Share (pence) Six months to 31 January 2025 Total return to Shareholders* 6.7% Benchmark - MSCI UK Investable Market Index (MXGBIM)* 4.1% * Total NAV return including dividends reinvested, as sourced from Bloomberg. Six months to Six months to Change 31 January 2025 31 January 2024 Interim dividend per 7.00 7.00 0.00p Ordinary Share (pence) Special dividend per 7.00 0.00 7.00p Ordinary Share (pence) Dates for the interim dividend Ex-dividend date 10 April 2025 Record date 11 April 2025 Payment date 8 May 2025 CHAIRMAN'S STATEMENT Results for the half year ended 31 January 2025 The Global Technology sector has continued to rally on Ai excitement, albeit with a recent set back on some brilliantly executed propaganda by the CCP via DeepSeek.2025 is the year that Ai is no longer an "if it will" phenomenon but more of a "when will it" crescendo of anticipation. It is becoming ever more evident that the automation of the labour force via agents will become a reality which will significantly expand the Total Addressable Market of Ai. The Manager has added an extra strand to their three favourite secular growth themes of Cloud Computing, Artificial Intelligence and Semiconductor Use which is Agentic Ai software. The Manager's Report sets out the performance of the portfolio in more detail including stock specific contributions to this period's performance. The portfolio remains focused on larger capitalisation, liquid, listed stocks with profitable and cash generative business models that are aligned with some of the most exciting forward-looking themes of the day. The Company exited the period with a Portfolio Net Delta Adjusted Equity Exposure (including Options) of 98.7 per cent which effectively means the Company was roughly fully invested. The Board There have been no changes to the Board during the period. Biographical details of all the directors can be found in the latest AGM notice and the latest Annual Report. Dividends With these results, we have announced an ordinary interim dividend of 7.0 pence per Ordinary Share and a special interim dividend of 7.0 pence per Ordinary Share. This is the same level as the prior year for the ordinary (31 January 2024: 7.0 pence per Ordinary Share) but the special was not paid last year. Discount & Share Buy-Backs The Board monitors the discount at which the Company's shares trade in relation to the underlying NAV per Share. The discount has not narrowed over the period in line with similar sector invested funds also listed on the London Stock Exchange. The Company does not have a target discount level at which it buys back shares and considers a range of factors before it does so, including the direction of recent market moves, the reasons for any discounts and whether they are short term or long term in nature and the overall benefit to Shareholders of any buy backs considering the onerous reporting requirements of such buy backs and the ongoing cost per Share implications. It should be noted that the average discount for the Company for the last 5 years sits at ~13.5 per cent (Source: Bloomberg) which, considering the free float of the Company is less than £150m, could be argued as `in line' with expectations (if not ideal). As at the latest practicable date of 18 March 2025, the number of shares in treasury was 1,260,150 representing ~3.11 per cent of the issued share capital. It is worth noting that between FY22 to FY25 (so far) the Company has returned >£32m to shareholders in dividends and buybacks. Shareholder returns remain a key pillar of our commitment to investors. Auditor Deloitte LLP were re-appointed as the Company's auditor at the AGM held in 2024. Outlook & Risks The world has continued to splinter into Sino and US spheres with a corresponding re-gauging of supply chains, and inflation continues to print above the required Federal Reserve target rate of two per cent. The principal risks and uncertainties faced by the Company for the remaining six months of the financial year, which could have a material impact on performance, remain consistent with those outlined in the Annual Report for the year ended 31 July 2024. A detailed explanation of the Company's principal risks and uncertainties, and how they are managed through mitigation and controls, can be found in the Annual Report for the year ended 31 July 2024. The Company has a risk management framework that provides a structured process for identifying, assessing and managing the risks associated with the Company's business. The investment portfolio is diversified by geography which reduces risk but is focused on the US technology sector and has a high proportion of US Dollar investments. The concentration of investment in the two largest holdings is material and all shareholders should consider whether they are comfortable with this concentration risk when deciding whether to continue to invest in the Company (please see Managers Report below). The key variables for our second half performance are likely to be movements in the US sovereign yield curve and inflation expectations, the escalating cold war between China and the USA (including Taiwan), changes to Tariffs & Export Controls, the price of hydrocarbons and energy, how the Federal Reserve and other Central Banks respond to the aforementioned, whether the expectations for the monetisation of Ai meets expectations, the performance of Microsoft Corporation and Nvidia Inc., the pace of growth of our key four themes (as described above), further conflict in the Middle East, further aggressive action by Russia, and the regulation of technology companies globally. We remain optimistic that our investment exposure, focused on software, digitalisation, cloud computing, data management, semiconductors, semiconductor capital equipment and Ai, offers longer-term pricing power to ward off inflationary threats and significant secular growth opportunities. Please do not forget to consider the fund for this year's ISA allowance. Daniel Wright Chairman 19 March 2025 MANAGER'S REPORT Portfolio management During the half year under review, the NAV per Share total return was 6.7 per cent, compared to an increase in the benchmark of 4.1 per cent. The NASDAQ-100 Technology Sector Index ("NDXT"), to which some of the portfolio is exposed, had a total return of 8.5 per cent in GBP. The total return of the portfolio by sector holdings in local currency (excluding costs and foreign exchange) is shown below. Total return of underlying sector holdings in local currency (excluding 2025 costs and foreign exchange) Information Technology 2.8% Communication Services 1.4% Healthcare 0.3% Other investments (including funds, ETFs and hedges) 0.0% Foreign Exchange, operating costs & financing 2.2% Total NAV per Share return 6.7% It should be noted that the data and views in this report are now dated and potentially stale. A more up to date analysis of our portfolio can be found in our Fund Factsheets: https://mlcapman.com/manchester-london-investment-trust -plc/ (https://urldefense.proofpoint.com/v2/url?u=https -3A__mlcapman.com_manchester-2D&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=EPkHclP71NIWoFm7VVNfGQqltYUqHtXZ6FljrqjxfJc&e=) and more current views can be found in our Tweets (https://twitter.com/MLCapMan (https://urldefense.proofpoint.com/v2/url?u=https -3A__twitter.com_MLCapMan&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=tbucTWGUbRtZAh6py2VO1fI36vy7IDPhM67_AZztbwY&e=) ) & Newsletters (https://mlcapman.com/Subscribe (https://urldefense.proofpoint.com/v2/url?u=https -3A__mlcapman.com_Subscribe&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=2ar975ItRskiGnDRugMbeR3FJxr_lz -FXRoOEUMKb_s&e=)). The 3.3 per cent decrease in the value of Sterling against the US Dollar over the period was a tailwind for performance due to the significant level of US Dollar exposure in the portfolio. Overall, we estimate the increase in portfolio performance from Foreign Exchange movements was roughly +3.0 per cent. Information Technology Material positive contributors to the portfolio's performance from this sector were Arista Networks Inc, Broadcom Inc, and Nvidia Corp. Material negative contributors to the portfolio's performance from this sector were ASML Holding NV and Advanced Micro Devices Inc. The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 98.2 per cent of net assets, down from 103.2 per cent at the end of the previous financial year. Outlook We see the Cloud Computing market progressing through the ongoing secular growth period it has enjoyed for a number of years. We estimate a doubling in the size of this market over the next decade as it has become clear that in order to extract value from your data using tools such as Ai you need the data managed and on the Cloud. We see Artificial Intelligence ("Ai") being a material positive driver for the Cloud and Semiconductor markets. It is easy to focus on the growth in GPUs from Ai but please note networking, security and other compute all benefit too. To be explicit, we are still taking a predominantly "picks and shovels" route to capture the gains from the growth of Ai although we are interested in gaining more exposure to the agentic software plays. We believe that the Ai semiconductor market will be resurgent during 2025 (for both Training and Inference) but, longer term, we see the growth in Electric Vehicles, Industrial, IoT, Mobile and Digitalisation being stolen by a heavily subsidised Chinese Semiconductor industry. High Impact Risk events The Great Hack: We lose sleep imagining a cyber breach of one of the hyper -scalers causing a loss of faith in the industry and punitive regulation. In such an event, we would suggest looking to the counter-factual of whether the situation would have been even worse if the data had been stored "On Premises". China: The potentially impending hot conflict in Taiwan initiated by China has been the primary subject of Academy (see https://mlcapman.com/academy/ (https://urldefense.proofpoint.com/v2/url?u=https -3A__mlcapman.com_academy_&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=voppzkD6jrDdglspRwO7syMIXUuBKn2eHljaI1yFNsw&e=) ). A large proportion of our portfolio would suffer material falls in value should this event be the outturn, which is why sharp-eyed Factsheet readers see we have intermittently hedged these positions with EWT US or shorts on other less advanced semi-conductor plays. Generally, the "cold war" developing between the US and China has multiple risks for Technology stocks and a progression through further sanctions, closing of markets, IP theft etc. is likely to be a strong headwind for a number of our holdings. We are very keen on the Semi-Cap sector but their high exposure to China has always deterred us from owning more of these names. China is unlikely to accept the US desire to make it a number two player in High Technology and hence it may decide to invest huge amounts into R&D&S&T (the S is Subsidy and the T is Theft) to break down some of the IP moats that the non-Chinese semiconductor, semi-cap and EDA software companies maintain, making competition much tougher in these markets. China already dominates the solar energy market and the EV market, and we expect more encroachment in the less advanced semiconductor space. We expect further restrictions on US technology exports and we expect to see material reductions in sales for some of our holdings including Nvidia (to Singapore). Concentration Risk: The portfolio is now materially concentrated in just 2 holdings; it is also highly concentrated in the Information Technology sector. The fund has a high Active Share Ratio and it is very likely that our performance will vary markedly from all of the better known technology index performances. Should either Nvidia or Microsoft have materially adverse events, or the monetisation of Ai by the sector in general be slower than expected, then the fund will suffer material losses. Humans tend to want everything now! Shareholders should consider if this totality of risk fits with their risk profile. The consensus solution to concentration risk is diversification but so often when one does diversify, one has to diversify into lower quality holdings. Communication Services Alphabet Inc (+1.2%) was the only contributor which had an attribution of -/+1% for the portfolio from this sector. The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 7.1 per cent of net assets, up from 4.0 per cent at the end of the previous financial year. The largest holding in this sector is Alphabet Inc. which we joke is our "Value investment" holding. Like all Value investments, Alphabet has issues (Search being disrupted, weak management, over-woke corporate ethos, vanity other-Bets projects, inefficient cost structures, ineffectiveness to move R&D to commercial application, too many divisions) that we have written extensively about in Tweets and Newsletters. However, if Alphabet took some simple logical steps forward the valuation has material upside potential. Waymo and YouTube could be very valuable assets in the future. This year we added FWONK (Liberty Media Formula One) which saw a share price performance of 21.1 per cent from our initial purchase. We remain positive on FWONK as it plays to the increased leisure time, event-based spending theme. Healthcare There were no contributors which had an attribution of -/+1% for the portfolio from this sector. The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 2.3 per cent of net assets, up from 1.9 per cent at the end of the previous financial year. Our favoured holding in this sector is ISRG (Intuitive Surgical) which saw a share price performance over the period of 28.6 per cent. We would buy a lot more but the stock trades expensively. Other investments including hedges There were no contributors which had an attribution of -/+1% for the portfolio from these holdings. The portfolio's weighting to this sector (including options on a MTM basis) at the period end was 1.3 per cent of net assets (please note this includes 1.7 per cent of net assets held in a US money market ETF which effectively operates as a cash alternative rather than an equity exposure). This sector weighting is up from 0.9 per cent at the end of the previous financial year (excluding healthcare). Current Focus of Investment Process We use a Data Framework to select the stock universe from which we select specific stock candidates for the portfolio. From this stock universe, we select stocks whilst keeping the following attributes in mind: 1. Exposure to Elite Financial Metrics (high IP, mission critical, recurring, low churn); 2. Exposure to Secular Growth; 3. Exposure to the Ai revolution within the Information Technology sphere as an Enabler rather than just a Beneficiary (pseudo-Ai exposure); 4. The Management Teams of holdings should be undertaking pragmatic cost cutting or productivity drives; 5. Cash flow per Share and Earnings per Share metrics are considered equally as important as Sales Growth; 6. Once Cash Flow is earned then it should be invested wisely in one of: high ROIC investment, buy backs or dividends (or divesting non-core, capital hungry activities); 7. Manageable exposure to a China/Taiwan "hot war"; and 8. Realistic Stock Based Compensation schemes. We believe that the true enablers of Ai will be pragmatic and patient and view themselves as Era-long winners from Ai. Many software companies will be disrupted by Ai, making investing in Technology a dangerous landscape to navigate. Economy, Market & Technology The US economy remains robust which is unsurprising considering its make-up is driven by consumption and consumption has a high correlation to high employment and wage growth. We have consistently said that US Interest Rates will have to be `Higher for Longer' and Technology shares hate surprise increases in discount rates. To be specific, our portfolio has a strong negative correlation to surprise increases in 10-year Treasury yields. There are many forecasts for an impending recession in the USA because that is what happened historically each time rates were raised so steeply. We believe that "every time is different". We are not so convinced that the recession outturn is already written but we do worry about escalating global debt levels and increasing long term discount rates. General IT spending is likely to pick up through 2025 as companies focus on optimisation and automation. Spending is being prioritised into Ai & Cloud and these are the areas we have refocused our portfolio on. Spending will likely focus on platforms that can offer a wide spectrum of services including the management of your data. The era of the networked desktop has moved to the data centre connected end point and this means that those with the scale and resources to invest will win. For the minnows, we have further bad news, which is that in a few further years we may start to see Quantum Computing applications become more prevalent and these will require even greater scale. Few now doubt that we have entered the Era of Ai. We believe that we still have a long way to travel down this road and that those that bank quick profits now will rue the day they did so. The press make a lot of noise and the vast majority of it should be ignored (example: DeepSeek). We are Era-long investors, and our portfolio is firmly focused on Ai Deliverers not ".ai show-boaters". Having said that, we will be pragmatic and we will have to pivot. Make no mistake of this, the West is now in a cold war with China and the Chinese are our enemy. The world is a far more dangerous place and will become so if we remain complacent of the new reality. In the meantime, the regulation and statis of the UK & Eurozone surely lead to a slow and withering aging of Europe as it is outcompeted on either side by the USA and China. The situation in the UK & Eurozone is so bad now that it is viewed by the US and China as a comedy zone that can be ignored (see Ukraine negotiations). We have no idea what the future holds but we believe that since 1771 there has been a glacial shift in the utility as economic units from Man to the Machine. Those that have backed the technological advancement of the Machine over this period have quite commonly made excess investment returns. We believe that Ai is, in part, just an extension of software, albeit with non-sequential processing and non- deterministic outcomes (Software 2.0). Hence, we feel that expecting the Era of Ai to develop along the same rough path as the Era of Software is not irrational and offers investors some comfort and guidance. The next decade could be one of the most interesting eras for technology investing ever. It is of a low probability but still possible that we could see Ai completely transform the global economy in the short period of a decade whereby the effective Total Addressable Market of Software 2.0 sees a greater than 10 fold growth. Please: Visit our website: https://mlcapman.com/about/ (https://urldefense.proofpoint.com/v2/url?u=https -3A__mlcapman.com_about_&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=0vsf3EjNsjl8GhKy31F6qjIKU4Fbd -zSmlm_38r_u4M&e=) Follow our Tweets at: https://twitter.com/MLCapMan (https://urldefense.proofpoint.com/v2/url?u=https -3A__twitter.com_MLCapMan&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=tbucTWGUbRtZAh6py2VO1fI36vy7IDPhM67_AZztbwY&e=) Read our previous articles at: https://www.linkedin.com/company/m-&-l -capitalmanagement-ltd/ (https://urldefense.proofpoint.com/v2/url?u=https -3A__www.linkedin.com_company_m-2D-26-2Dl-2Dcapitalmanagement-2Dltd_&d=DwMF -g&c=bZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo&r=OXFtXf7wLg2sCLSswCAlOwqkQyLXmp zNb36caii-PqE&m=_rUV9JVgxd2_T5wsn_YwMSI7zh-hBoo4l -dNdBB3a0vuSrIySStCBAHBNY51ASma&s=fN85l -2WjLoUAdMz1i34bisi071RNeQiJKbKflIeDPw&e=) Long the Future. M&L Capital Management Limited  @MLCapMan 19 March 2025 Equity Exposures AND PORTFOLIO SECTOR ANALYSIS Equity exposures (longs) As at 31 January 2025 Company Sector* Exposure % of net assets £'000 NVIDIA Information Technology 120,761 34.5 Corporation** Microsoft Information Technology 85,247 24.4 Corporation** Broadcom Inc. Information Technology 23,417 6.7 Arista Networks Information Technology 22,331 6.4 Inc. ASML Holding NV** Information Technology 20,437 5.8 SynopsysInc. Information Technology 18,840 5.4 Advanced Micro Information Technology 18,663 5.3 Devices Inc. Alphabet Inc. Communication Services 17,242 5.0 Micron Technology Information Technology 11,147 3.2 Inc. Apple Inc.** Information Technology 10,503 3.0 Cadence Design Information Technology 9,222 2.6 Systems Inc. Intuitive Health Care 8,146 2.3 Surgical Inc. Liberty media Communication Services 7,921 2.3 Formula One Group** I-shares 0-3 Other 6,053 1.8 month Treasury Bond Dell Technologies Information Technology 4,853 1.4 Inc.** Salesforce Inc.** Information Technology 3,657 1.0 Polar Capital Other 2,658 0.8 Technology Trust Remy Cointreau Other 1,414 0.4 S.A. Applied Materials Information Technology 987 0.3 Inc. Pernod Ricard Other 830 0.2 S.A. AeroVironment Other 406 0.1 Inc.** Western Digital Information Technology 194 0.1 Corporation Motorola Information Technology 104 0.0 Solutions Inc. Pfizer Inc.** Health Care 85 0.0 Allianz Other 12 0.0 Technology Trust Total Long Equity 395,130 113.0 exposure Other net assets (45,399) (13.0) and liabilities*** Net assets 349,791 100.0 *  GICS - Global Industry Classification Standard. ** Including equity swap exposures. ***Includes Short Equity exposures and Options valued at marked to market. Exposure is related to Delta Adjusted Exposure (Glossary). INTERIM MANAGEMENT REPORT The important events that have occurred during the period under review and the key factors influencing the financial statements are set out in the Chairman's Statement and the Manager's Report above. The principal risks facing the Company are substantially unchanged since the date of the latest Annual Report and Financial Statements and continue to be as set out in the Strategic Report and note 16 of that report. Risks faced by the Company include, but are not limited to, investment performance risk; key man risk and reputational risk; fund valuation risk; risk associated with engagement of third-party service providers; regulatory risk; fiduciary risk; fraud risk; market risk; interest rate risk; liquidity risk; currency rate risk; and credit and counterparty risk. Details of the Company's management of these risks are set out in the Annual Report and Financial Statements. M&M Investment Company plc is the controlling shareholder of the Company. This company was controlled throughout the six months ended 31 January 2025, and continues to be controlled by Mark Sheppard, who forms part of the investment management team at M&L Capital Management Limited. Details of related party disclosures are set out in note 7 of this Report. DIRECTORS' REPORT Going Concern As detailed in the notes to the financial statements and in the Annual Report for the year ended 31 July 2024, the Board continually monitors the financial position of the Company and has considered for the six months ended 31 January 2025 an assessment of the Company's ability to meet its liabilities as they fall due. The review also included consideration of the level of readily realisable investments and current cash and debt ratios of the Company and the ability to repay any outstanding prime broking facilities. In light of the results of these tests on the Company's cash balances and liquidity position, the Directors consider that the Company has adequate financial resources to enable it to continue in operational existence. Having carried out the assessment, the Directors are satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial results of the Company. The Directors have not identified any material uncertainties or events that might cast significant doubt upon the Company's ability to continue as a going concern. The assets of the Company comprise mainly of securities that are readily realisable and accordingly, the Company has adequate financial resources to meet its liabilities as and when they fall due and to continue in operational existence for the foreseeable future. Related Party Transactions In accordance with DTR 4.2.8R there have been no new related party transaction agreements during the six-month period to 31 January 2025 and therefore nothing to report on any material effect by such transactions on the financial position or performance of the Company during that period. There have therefore been no changes in any related party transaction agreements described in the last Annual Report that could have a material effect on the financial position or performance of the Company in the first six months of the current financial year or to the date of this report. STATEMENT OF DIRECTORS' RESPONSIBILITIES The Directors confirm that to the best of their knowledge: · the condensed set of financial statements has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting; and gives a true and fair view of the assets, liabilities, financial position and return of the Company; and · this Half-Yearly Report includes a fair review of the information required by: a)      DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and b)      DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so. This Half-Yearly Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by: Daniel Wright Chairman 19 March 2025 Condensed Statement of Comprehensive Income For the six months ended 31 January 2025 (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 31 January 31 January 31 July 2025 2024 2024 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains on 126 23,513 23,639 155 54,995 55,150 357 123,556 123,913 investments at fair value through profit or loss Investment 605 - 605 526 - 526 1,092 - 1,092 income Interest 624 - 624 659 - 659 1,354 - 1,354 income Gross return 1,355 23,513 24,868 1,340 54,995 56,335 2,803 123,556 126,359 Expenses Management fee (1,256) - (1,256) (327) - (327) (1,458) - (1,458) Other (324) - (324) (270) - (270) (563) - (563) operating expenses Total expenses (1,580) - (1,580) (597) - (597) (2,021) - (2,021) Return before (225) 23,513 23,288 743 54,995 55,738 782 123,556 124,338 finance costs and taxation Finance costs (61) (1,617) (1,678) (36) (1,319) (1,355) (68) (2,966) (3,034) Return on (286) 21,896 21,610 707 53,676 54,383 714 120,590 121,304 ordinary activities before tax Taxation (46) - (46) (77) - (77) (144) - (144) Return on (332) 21,896 21,564 630 53,676 54,306 570 120,590 121,160 ordinary activities after tax Return per (0.83) 54.60 53.77 1.57 133.54 135.11 1.42 300.03 301.45 Share: Basic and fully diluted (pence) The total column of this statement represents the Condensed Statement of Comprehensive Income, prepared in accordance with international accounting standards in conformity with the requirements of UK IFRS the Companies Act 2006. The supplementary revenue and capital columns are both prepared under the Statement of Recommended Practice published by the Association of Investment Companies ("AIC SORP"). All items in the above statement are derived from continuing operations. No operations were acquired or discontinued during the period. There is no other comprehensive income, and therefore the return for the period after tax is also the total comprehensive income. The notes below form part of these financial statements. Condensed Statement of Changes in Equity For the six months ended 31 January 2025 For the six Share Share Special Capital Retained Total months from reserve* 1 August 2024 capital premium reserve* earnings* £'000 to £'000 £'000 £'000 £'000 £'000 31 January 2025 (unaudited) Balance at 1 10,132 25,888 86,468 211,611 - 334,099 August 2024 Ordinary - - (3,065) - - (3,065) shares bought back and held in treasury Total - - - 21,896 (332) 21,564 comprehensive income Dividends - - (2,807) - - (2,807) paid Balance at 31 10,132 25,888 80,596 233,507 (332) 349,791 January 2025 For the six months Share Share Special Capital Retained Total from 1 August 2023 to capital premium reserve* reserve* earnings* £'000 31 January 2024 £'000 £'000 £'000 £'000 £'000 (unaudited) Balance at 1 August 10,132 25,888 94,338 91,021 - 221,379 2023 Total comprehensive - - - 53,676 630 54,306 income Dividends paid - - (2,184) - (630) (2,814) Balance at 31 10,132 25,888 92,154 144,697 - 272,871 January 2024 For the year from Share Share Special Capital Retained Total 1 August 2023 to reserve* capital premium reserve* earnings* £'000 31 July 2024 £'000 (audited) £'000 £'000 £'000 £'000 Balance at 1 10,132 25,888 94,338 91,021 - 221,379 August 2023 Total - - - 120,590 570 121,160 comprehensive income Dividends paid - - (7,870) - (570) (8,440) Balance at 31 10,132 25,888 86,468 211,611 - 334,099 July 2024 * These reserves are distributable, excluding any unrealised capital reserve. The balance of the unrealised capital reserve at 31 January 2025 was £170,096,000 (31 January 2024: £114,428,000; 31 July 2024: £161,436,000). The notes below form part of these financial statements. Condensed Statement of Financial Position As at 31 January 2025 Notes (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2025 2024 2024 £'000 £'000 £'000 Non-current assets Investments held at fair value 311,794 244,388 309,002 through profit and loss Current assets Unrealised derivative assets 2,711 11,894 4,866 Trade and other receivables 195 124 419 Cash and cash equivalents 18,256 6,711 7,187 Cash collateral receivable from 25,054 13,755 16,371 brokers 46,216 32,484 28,843 Creditors - amounts falling due within one year Unrealised derivative (7,691) (1,858) (3,248) liabilities Trade and other payables (528) (274) (498) Cash collateral payable to - (1,869) - brokers (8,219) (4,001) (3,746) Net current assets 37,997 28,483 25,097 Net assets 349,791 272,871 334,099 Equity attributable to equity holders Ordinary Share capital 10,132 10,132 10,132 Share premium 25,888 25,888 25,888 Special reserves 80,596 92,154 84,468 Capital reserves 233,507 144,697 211,611 Retained earnings (332) - - Total equity Shareholders' 349,791 272,871 334,099 funds Net asset value per Ordinary 879.41 678.90 831.24 Share - basic and diluted (pence) Number of shares in issue 3 39,775,645 40,193,018 40,193,018 excluding treasury The notes below form part of these financial statements. Condensed Statement of Cash Flow For the six months ended 31 January 2025 Six months to Six months to Year ended 31 January 31 January 31 July 2025 2024 2024 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Cash flow from operating activities Return on operating activities 21,610 54,383 121,304 before tax Interest expense 1,678 1,355 3,034 Gains on investments held at (22,576) (54,753) (123,533) fair value through profit or loss (Increase)/decrease in (13) 23 (34) receivables (Decrease)/increase in payables (21) (32) 163 Exchange gains on currency (937) (240) (23) balances Tax (46) (77) (144) Net cash (used in)/generated (305) 659 767 from operating activities Cash flow from investing activities Purchase of investments (9,813) (45,084) (79,749) Sale of investments 31,366 33,376 65,875 Derivative instrument cashflows (3,617) 4,611 14,638 Net cash inflow/(outflow) in 17,936 (7,097) 764 investing activities Cash flow from financing activities Ordinary shares bought back and (3,052) - - held in treasury Equity dividends paid (2,807) (2,814) (8,440) Interest paid (1,640) (1,326) (2,976) Net cash used in financing (7,499) (4,140) (11,416) activities Net increase/(decrease) in cash 10,132 (10,578) (9,885) and cash equivalents Exchange gains on currency 937 240 23 balances Cash and cash equivalents at 7,187 17,049 17,049 the beginning of the period Cash and cash equivalents at 18,256 6,711 7,187 the end of the period The notes below form part of these financial statements. Notes to the Condensed Financial Statements 1. Significant accounting policies Basis of preparation The condensed financial statements of the Company have been prepared in accordance with international accounting standards, International Accounting Standard 34 "Interim Financial Reporting", in conformity with the requirements of the Companies Act 2006. In the current period, the Company has applied amendments to IFRS. These include annual improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosure and presentation requirements. The adoption of these has not had any material impact on these financial statements and the accounting policies used by the Company followed in these half-year financial statements are consistent with the most recent Annual Report for the year ended 31 July 2024. Going concern The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust company will continue to be met. The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in business for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved. In making the assessment, the Directors have considered the likely impacts of international and economic uncertainties on the Company, operations and the investment portfolio. These include, but are not limited to, the war in Ukraine, political and economic instability in the UK, supply shortages and inflationary pressures. The Directors noted that the cash balance exceeds any short-term liabilities, the Company holds a portfolio of liquid listed investments and is able to meet the obligations of the Company as they fall due. The current cash enables the Company to meet any funding requirements and finance future additional investments. The Company is a closed end fund, where assets are not required to be liquidated to meet day to day redemptions. The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash flows. In making this assessment, they have considered severe but plausible downside scenarios. These tests apply equally to any set of circumstances in which asset value and income are significantly impaired. The conclusion was that in a plausible downside scenario the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and the Directors believe that it is possible the Company could experience further reductions in income and/or market value, and changes in expenses, the opinion of the Directors is that this should not be to a level which would threaten the Company's ability to continue as a going concern. The Directors also regularly assess the resilience of key third party service providers, most notably the Investment Manager and Fund Administrator. The Directors do not have any concerns about the financial viability of the Company's third party service providers. Furthermore, the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows, borrowing facilities and investment commitments (of which there are none of significance). Therefore, the financial statements have been prepared on the going concern basis. Comparative information The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined by the Companies Act 2006. The financial information for the periods ended 31 January 2025 and 31 January 2024 have not been audited or reviewed by the Company's Auditors. The comparative figures for the year ended 31 July 2024 are an extract from the latest published audited statements and do not constitute the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's Auditor and delivered to the Registrar of Companies. The report of the Auditor was unqualified, did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 2. Return per Ordinary Share Returns per Ordinary Share are based on the weighted average number of Shares in issue during the period. Normal and diluted return per Share are the same as there are no dilutive elements of share capital. Six months Six months Year ended to to 31 July 31 January 31 January 2024 2025 2024 (audited) (unaudited) (unaudited) Net Per Net Per Net Per Share Share Share return return Return pence Pence Pence £'000 £'000 £'000 Return on ordinary activities after tax Revenue (332) (0.83) 630 1.57 570 1.42 Capital 21,896 54.60 53,676 133.54 120,590 300.03 Total return on 21,564 53.77 54,306 135.11 121,160 301.45 ordinary activities Weighted average 40,104,163 40,193,018 40,193,018 number of Ordinary Shares 3. Share capital Six months Six months Year ended to to 31 July 31 January 31 January 2024 2025 2024 (audited) (unaudited) (unaudited) 25p Ordinary Number £'000 Number £'000 Number £'000 Shares Opening 40,528,238 10,132 40,528,238 10,132 40,528,238 10,132 Ordinary Shares in issue Shares issued - - - - - - Closing 40,528,238 10,132 40,528,238 10,132 40,528,238 10,132 Ordinary Shares in issue Treasury shares: Balance at 335,220 335,220 335,220 beginning of the period/year Buyback of 417,373 - - Ordinary shares into treasury Balance at 752,593 335,220 335,220 end of period/year Total 39,775,645 40,193,018 40,193,018 Ordinary Share capital excluding treasury shares The Company's Share capital comprises Ordinary Shares of 25p each with one vote per Share. During the period no Ordinary Shares were issued (six months to 31 January 2024: nil; year ended 31 July 2024: nil), with net consideration of £nil (six months to 31 January 2024: £nil; year ended 31 July 2024: £nil). During the period 417,373 Ordinary Shares were bought back and placed in treasury (six months to 31 January 2024: nil; year ended 31 July 2024: nil). 4. Dividends per Ordinary Share The Board has declared an interim dividend of 7p per Ordinary Share and a special dividend of 7p per Ordinary Share (2024: interim dividend of 7p per Ordinary Share) which will be paid on 8 May 2025 to Shareholders registered at the close of business on 11 April 2025 (ex-dividend 10 April 2025). This dividend has not been included as a liability in these financial statements. 5. Net asset value per Ordinary Share Net asset value per Ordinary Share is based on net assets of £349,791,000 (31 January 2024: £272,871,000; 31 July 2024: £334,099,000) at the period end and 39,775,645 (31 January 2024: 40,193,018; 31 July 2024: 40,193,018) being the number of Ordinary Shares excluding Treasury Shares in issue at the period end. 6. Fair value hierarchy The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements. The fair value is the amount at which the asset could be sold in an ordinary transaction between market participants, at the measurement date, other than a forced or liquidation sale. The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements. Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows: · Level 1 - valued using quoted prices, unadjusted in active markets for identical assets and liabilities. · Level 2 - valued by reference to valuation techniques using observable inputs for the asset or liability other than quoted prices included in Level 1. · Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data for the asset or liability. The tables below set out fair value measurement of financial instruments, by the level in the fair value hierarchy into which the fair value measurement is categorised. Financial assets/liabilities at fair value through profit or loss at 31 January 2025 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Investments 311,794 - - 311,794 Unrealised derivatives assets - 2,711 - 2,711 Unrealised derivative liability - (7,691) - (7,691) Total 311,794 (4,980) - 306,814 Financial assets/liabilities at fair value through profit or loss at 31 January 2024 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Investments 244,388 - - 244,388 Unrealised derivatives assets - 11,894 - 11,894 Unrealised derivative liability - (1,858) - (1,858) Total 244,388 10,036 - 254,424 Financial assets/liabilities at fair value through profit or loss at 31 July 2024 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Investments 309,002 - - 309,002 Unrealised derivatives assets - 4,866 - 4,866 Unrealised derivative liability - (3,248) - (3,248) Total 309,002 1,618 - 310,620 7. Transactions with the Manager and related parties M&L Capital Management Limited ("MLCM"), a company controlled by Mark Sheppard, acts as Manager to the Company. Mark Sheppard is also a director of M&M Investment Company plc ("MMIC") which is the controlling Shareholder of the Company. During the six months to 31 January 2025, MMIC (including connected parties) purchased 277,022 Ordinary shares, with net consideration of £2,023,972.46. As at 31 January 2025, MMIC (including connected parties) was interested in a total of 23,577,888 Ordinary Shares of 25 pence each in the Company, representing 59.3% of the issued share capital. Total fees charged by the Manager for the six months to 31 January 2025 were £1,256,000 (six months to 31 January 2024: £327,000; year ended 31 July 2024: £1,458,000), of which £213,000 was outstanding as at 31 January 2025 (31 January 2024: £63,000 31 July 2024: £218,000). The fees payable to Directors are set out in the 2024 Annual Report. There were no other related party transactions in the period. 8. Post Statement of Financial Position event There were no other significant events since the end of the reporting period. 9. Glossary Reference should be made to the Glossary in our Annual Report for the year ended 31 July 2024 (pages 90 to 92) for a definition of key terms and Alternative Performance Measures (such as NAV, NAV per Share and Total Return). INVESTMENT OBJECTIVE The investment objective of the Company is to achieve capital appreciation. INVESTMENT POLICY Asset allocation The Company's investment objective is sought to be achieved through a policy of actively investing in a diversified portfolio, comprising any of global equities and/or fixed interest securities and/or derivatives. The Company may invest in derivatives, money market instruments, currency instruments, contracts for differences ("CFDs"), futures, forwards and options for the purposes of (i) holding investments and (ii) hedging positions against movements in, for example, equity markets, currencies and interest rates. The Company seeks investment exposure to companies whose shares are listed, quoted or admitted to trading. However, it may invest up to 10% of gross assets (at the time of investment) in the equities and/or fixed interest securities of companies whose shares are not listed, quoted or admitted to trading. Risk diversification The Company intends to maintain a diversified portfolio and it is expected that the portfolio will have between approximately 20 to 100 holdings. No single holding will represent more than 20% of gross assets at the time of investment. In addition, the Company's five largest holdings (by value) will not exceed (at the time of investment) more than 75% of gross assets. Although there are no restrictions on the constituents of the Company's portfolio by geography, industry sector or asset class, it is intended that the Company will hold investments across a number of geographies and industry sectors. During periods in which changes in economic, political or market conditions or other factors so warrant, the Manager may reduce the Company's exposure to one or more asset classes and increase the Company's position in cash and/or money market instruments. The Company will not invest more than 15% of its total assets in other listed closed-ended investment funds. However, the Company may invest up to 50% of gross assets (at the time of investment) in an investment company subsidiary, subject always to the other restrictions set out in this investment policy and the Listing Rules. Gearing The Company may borrow to gear the Company's returns when the Manager believes it is in Shareholders' interests to do so. The Company's Articles of Association ("Articles") restrict the level of borrowings that the Company may incur up to a sum equal to two times the net asset value of the Company as shown by the then latest audited balance sheet of the Company. The effect of gearing may be achieved without borrowing by investing in a range of different types of investments including derivatives. Save with the approval of Shareholders, the Company will not enter into any investments which have the effect of increasing the Company's net gearing beyond the limit on borrowings stated in the Articles. General In addition to the above, the Company will observe the investment restrictions imposed from time to time by the Listing Rules which are applicable to investment companies with shares listed on the Official List of the Financial Conduct Authority ("FCA"). No material change will be made to the investment policy without the approval of Shareholders by ordinary resolution. In the event of any breach of the investment restrictions applicable to the Company, Shareholders will be informed of the remedial actions to be taken by the Board and the Manager by an announcement issued through a regulatory information service approved by the FCA. Investment Strategy and Style The fund's portfolio is constructed with flexibility but is primarily focused on stocks that exhibit the attributes of growth. Target Benchmark The Company was originally set up by Brian Sheppard as a vehicle for British retail investors to invest in with the hope that total returns would exceed the total returns on the UK equity market. Hence, the benchmark the Company uses to assess performance is one of the many available UK equity indices being the MSCI UK Investable Market Index (MXGBIM). The Company has used this benchmark to assess performance for over five years but is not set on using this particular UK Equity index forever into the future and currently uses this particular UK Equity index because at the current time it is viewed as the most cost advantageous of the currently available UK Equity indices (which have a high degree of correlation and hence substitutability). However, once the Company announces the use of an index, then this index should be used across all of the Company's documentation. Investments for the portfolio are not selected from constituents of this index and hence the investment remit is in no way constrained by the index, although the Manager's management fee is varied depending on performance against the benchmark. It is suggested that Shareholders review the Company's Active Share Ratio that is on the fund factsheets as this illustrates to what degree the holdings in the portfolio vary from the underlying benchmark. Environmental, Social, Community and Governance The Company considers that it does not fall within the scope of the Modern Slavery Act 2015 and it is not, therefore, obliged to make a slavery and human trafficking statement. In any event, the Company considers its supply chains to be of low risk as its suppliers are typically professional advisers. In its oversight of the Manager and the Company's other service providers, the Board seeks assurances that they have regard to the benefits of diversity and promote these within their respective organisations. The Company has given discretionary voting powers to the Manager. The Manager votes against resolutions they consider may damage Shareholders' rights or economic interests and report their actions to the Board. The Company believes it is in the Shareholders' interests to consider environmental, social, community and governance factors when selecting and retaining investments and has asked the Manager to take these issues into account. The Manager does not exclude companies from their investment universe purely on the grounds of these factors but adopts a positive approach towards companies which promote these factors. The portfolio's the alytics Environmental Percentile was 82.8 per cent as at 31 January 2025. The Company notes the Task Force on Climate-related Financial Disclosures (`TCFD') reporting recommendations. However, as a listed investment company, the Company is not subject to the Listing Rule requirement to report against the framework. The Company fully recognises the impact climate change has on the environment and society, and the Manager continues to work with the investee companies to raise awareness on climate change risks, carbon emission and energy efficiency. SHAREHOLDER INFORMATION Investing in the Company The Shares of the Company are listed on the Official List of the FCA and traded on the London Stock Exchange. Private investors can buy or sell Shares by placing an order either directly with a stockbroker or through an independent financial adviser. Electronic communications from the Company Shareholders now have the opportunity to be notified by email when the Company's Annual Report, Half-Yearly Report and other formal communications are available on the Company's website, instead of receiving printed copies by post. This reduces the cost to the Company as well as having an environmental benefit in the reduction of paper, printing, energy and water usage. If you have not already elected to receive electronic communications from the Company and now wish to do so, visit www.signalshares.com. All you need to register is your investor code, which can be found on your Share certificate or your dividend confirmation statement. Alternatively, you can contact MUFG Corporate Markets' Customer Support Centre which is available to answer any queries you have in relation to your shareholding: By phone: 0371 664 0300 (from overseas call +44 (0) 371 664 0300). Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales. By email - shareholderenquiries@cm.mpms.mufg.com By post - MUFG Corporate Markets - Share Dealing, Central Square, 29 Wellington Street, Leeds, LS1 4DL. Frequency of NAV publication The Company's NAV is released to the London Stock Exchange on a weekly basis. Sources of further information Copies of the Company's Annual and Half-Yearly Reports, factsheets and further information on the Company can be obtained from its website: www.mlcapman.com/manchester-london-investment-trust-plc. Key dates Half-Yearly results announced March Interim dividend payment May Company's year end 31 July Annual results announced September Annual General Meeting November Expected final dividend payment November Company's half-year end 31 January CORPORATE INFORMATION Directors and Advisors Directors Auditor Daniel Wright (Chairman) Deloitte 110 Queen Street Glasgow G1 3BX Brett Miller Sir James Waterlow Daren Morris Manager and Alternative Administrator Investment Fund Manager M&L Capital Management Waystone Administration Solutions (UK) Limited Limited Broadwalk House 12a Princes Gate Mews Southernhay West London SW7 2PS Exeter EX1 1TS ir@mlcapman.com www.mlcapman.com Company Secretary Registrar MUFG Corporate Governance Limited MUFG Corporate Markets (UK) Limited 19th Floor 10th Floor 51 Lime Street Central Square London EC3M 7DQ 29 Wellington Street Leeds LS1 4DL Tel: 0371 664 0300 Email: shareholderenquiries@linkgroup.co.uk Depositary Bank Indos Financial Limited National Westminster Bank plc The Scalpel 11 Spring Gardens 18th Floor Manchester M60 2DB 52 Lime Street London EC3M 7AF Company Details Registered office Country of incorporation 12a Princes Gate Mews Registered in England and Wales London SW7 2PS Company Number: 01009550 Company website www.mlcapman.com/manchester-london-investment-trust-plc LEI: 213800HMBZXULR2EEO10 Name of authorised official of issuer responsible for making notification MUFG Corporate Governance Limited, Company Secretary Tel: 0333 300 1950 19 March 2025 This information was brought to you by Cision http://news.cision.com

XLON