British & American Investment Trust Plc – Annual Financial Report

British & American Investment Trust PLC
Annual Financial Reportfor the year ended 31 December 2025
Registered number: 00433137

Directors Registered office
David G Seligman (Chairman) Wessex House
Jonathan C Woolf (Managing 1 Chesham Street
Director)
Alex Tamlyn (Non-executive) Telephone: 020 7201 3100
Julia Le Blan (Non-executive Registered in England
and Chair of the Audit
Committee)
No.00433137
29 April 2026

This is the Annual Financial Report as required to be published under DTR 4 of
the UKLA Listing Rules.

Financial Highlights

For the year ended 31 December 2025

2025 2024

Revenue Capital Total Revenue Capital
Total
return return return return
£000 £000 £000 £000 £000
£000
(Loss)/profit (265) (2,236) (2,501) 438 (690)
(252)
before tax –
realised
(Loss)/profit – (1,169) (1,169) – 2,270
2,270
before tax –
unrealised
__________ __________ __________ __________ __________
__________
(Loss)/profit (265) (3,405) (3,670) 438 1,580
2,018
before tax –
total
__________ __________ __________ __________ __________
__________
Earnings per (2.35)p (13.62)p (15.97)p 0.49p 6.32p
6.81p
£1 ordinary
share – basic*
__________ __________ __________ __________ __________
__________
Earnings per (2.35)p (13.62)p (15.97)p 0.49p 4.51p
5.87p
£1 ordinary
share –
diluted*
__________ __________ __________ __________ __________
__________
Net assets 2,310
5,953
__________
__________
Net assets per
ordinary share
– deducting 7p
17p
preference
shares
    at fully
diluted net
asset value**
__________
__________
– diluted 7p
17p
__________
__________
Diluted net 8p
asset value
per
ordinary share
at 22 April
2026
__________
Dividends
declared or
proposed for
the period:
per ordinary
share
– interim paid 0.0p
1.75p
– final 0.0p
0.0p
proposed
per preference 0.0p
1.75p
share

*Calculated in accordance with International Accounting Standard 33 `Earnings
per Share’. The cumulative convertible non-redeemable preference shares are anti
-dilutive relating to the calculation of diluted EPS on the revenue return and
capital return (Note 3).

**Basic net assets are calculated using a value of fully diluted net asset value
for the preference shares.

Chairman’s Statement

I report our results for the year ended 31 December 2025.

Revenue

The loss on the revenue account before tax amounted to £0.3 million (2024: £0.4
million profit). This loss compared to the profit in the previous year is due to
the lower level of dividends received from our subsidiary company. Dividends
received from our subsidiary company have in previous years arisen from film
income and gains related to our US investments, the latter of which were not
available in the current year.

Gross revenues totalled £0.1 million (2024: £0.9 million). In addition, film
income of £117,000 (2024: £112,000) was received in our subsidiary company. In
accordance with IFRS10, this income stream is not included within the revenue
figures noted above because consolidated financial statements are not prepared.

The total return before tax, comprising revenue and capital return, amounted to
a loss of £3.7 million (2024: £2.0 million profit), representing net revenue of
£0.3 million loss, a realised loss of £2.2 million and an unrealised loss of
£1.2 million. The revenue loss per ordinary share was 2.3p (2024: 0.5p earnings)
on an undiluted basis.

During the year, steps have been taken to reduce substantially the running costs
of the company to respond to current circumstances.  As a result, general costs
have been reduced by approximately 25 percent in the current year and this
reduction will be taken forward into future years.

Net Assets and Performance

Net assets at the year end were £2.3 million (2024: £6.0 million), a decrease of
61.2 percent. This compares to an increase in the FTSE 100 index of 21.5 percent
and to an increase in the UK All Share index of 19.8 percent over the period.
With no dividends paid during the year, the total return on assets is the same.

While representing a slight improvement from the interim stage, these results
are most disappointing, particularly after the out-performance of 35 percent in
the previous year, and are due entirely to the large and unexpected fall of 65
percent in the value of our largest US investment Geron Corporation in the first
half of the year. This fall was exacerbated by significant weakness in the US
dollar, which fell by 7.5 percent against sterling during the year. By contrast,
the value of our second largest US investment, Lineage Cell Therapeutics
increased by over 200 percent over the year.

As set out in the interim report, the large and unexpected fall in Geron’s share
price which occurred in February 2025 came after the FDA had granted approval of
its haematological cancer drug, Rytelo, the company’s first such approval, in
the previous year and the commencement of sales in the second half of 2024. The
immediate cause of the fall was static quarterly sales over the 2024 Christmas
period, considered a disappointing result from a newly launched product, which
unnerved the market.

The long-serving CEO left the company soon afterwards to be replaced by a new
and highly experienced CEO in the third quarter.  A major re-calibration of the
sales team and strategy was implemented in the second half with a view to re
-invigorating sales and achieving break even in 2026. Most importantly, as a
result of these changes, the company felt able for the first time to issue a
sales forecast for 2026 which called for a current year increase in sales of
approximately 30 percent.  While Geron’s share price did not recover appreciably
during the past year, the current year sales forecast as recently re-confirmed
by the company could be expected, using standard market valuation metrics, to
result in a significant re-rating of the stock to over twice its current
valuation when applied even to the lower end of the sales projections range.
 More detailed comments on the performance and valuation of Geron are set out in
the Managing Director’s report below.

The year 2025 and the opening months of 2026 have been a time of significant
upheaval, bringing turbulence to financial, trade and commodity markets alike
and to global affairs and geopolitics generally. The underlying factors giving
rise to this upheaval can be summed up in three words:  Volatility, Resilience
and Re-Alignment.

The volatile character and erratic decision-making of the current US President,
un-checked by a compliant cabinet and a seemingly powerless Congress, has
translated into periods of substantial volatility and instability in markets
over the period.

This was initially seen in financial and trade markets in the second and third
quarters of 2025 following the `Liberation Day’ imposition of ultra-high and
indiscriminate international trade tariffs by the USA on 2nd April. The
subsequent chaotic and partial reversal of these unrealistic tariffs over the
following months only served to exacerbate and extend this volatility into the
remainder of the year.

Equity markets had entered 2025 with ongoing strength as interest rates world
-wide continued their downward path. However, this strength began to be steadily
eroded in the early months of the year following the inauguration of the new
President in January, declining by 7.5 percent in the USA in the first quarter.
The markets were then severely tested by the tariff announcement in April,
causing equity markets to fall almost immediately by a further 11 percent in the
USA and by 12 percent in the UK.

However, these falls were quickly reversed as the tariffs themselves were
substantially reduced.  Equity markets in the US – and even in the UK despite
its growing domestic problems – then continued their upward trajectory,
finishing the year with gains of 20 percent. It should be noted, however, that
much of this upward movement, particularly in the US market, was attributable to
those high growth businesses, the so-called `Magnificent 7′, involved in
artificial intelligence programming and associated industries. This effect
lasted through to the fourth quarter when some of these companies began to lose
favour as the market started to appreciate the huge scale of their investment
programmes.

This strength in equities continued despite the numerous politically-motivated
and unpredictable initiatives emanating from the White House over the second
half of 2025, such as the regime-changing attack on Venezuela, US territorial
aspirations towards Canada and Greenland, a seemingly acquiescent attitude to
Russia’s territorial designs on Ukraine and the vehement US criticism and even
potential abandonment of NATO.  All of which had the increasing effect of
undermining the USA’s credibility and respect internationally and contributed to
a significant weakening of the US dollar index, which fell by 10 percent over
the year.

Moving into 2026, the outbreak of hostilities between the USA and Iran in
February of this year has so far only served to repeat the pattern from 2025,
with financial markets falling sharply on the event and then reacting
erratically in response to the daily pronouncements and unpredictable actions of
the US President as this unpopular war has unfolded.

On this particular occasion, however, volatility has additionally spread to the
commodities markets as a significant portion of global oil supply has been
interrupted by the closure of the Strait of Hormuz. With the outcome of the war
still unclear, the volatility in the oil price, which has risen to levels not
seen since the Russian invasion of Ukraine in 2022, continues. In the absence of
a quick re-establishment of shipments through the Persian Gulf and given the
damage already inflicted on energy infrastructure in the Gulf and the associated
production of downstream products, a significant reduction in global supply of
crude oil and refined products over the longer term is in prospect, potentially
resulting in price increases not seen since the oil embargo of 1973, when the
oil price quadrupled compared to the less than doubling seen so far in the
current crisis.

As has recently been noted in a special report by the IMF, any long-term and
substantial increase in energy and derivative products prices caused by this war
is likely to put significant downward pressure on global growth going forward,
with the inevitable accompanying negative effects on financial markets and
investment.  The IMF also noted that the UK was particularly vulnerable to these
pressures, not just because of the UK’s reliance on imported energy but because
of the generally weak position of the UK’s economy in terms of growth, borrowing
costs and tax burden, the political causes of which were examined in some detail
in our interim statement.

Associated with these financial and commodity market upheavals has been the
political and strategic reaction to the erratic and in many cases unprecedented
policy decisions made by the current US administration since its inauguration.

Many countries, particularly the long-term allies of the USA in the West, have
begun to realise that the return of American isolationism has edged out the age
of American exceptionalism and that they must therefore become more prepared for
a world and challenges without American support.  This has started a major
process of political, strategic and indeed financial re-alignment throughout the
world which is likely to have long-lasting and consequential geopolitical and
strategic effects.  What this re-alignment might lead to over time is impossible
to predict, but given the great disappointment and shock felt by many countries
at this unprecedented and counter-productive shift in US domestic and global
policy, such countries are unlikely to want to rely on an eventual change in
American  administration and policy to return the West to the status quo ante,
when unrivalled American  power – both hard and soft – and a competitive but
rational and forward-looking  engagement with the rest of the world was
instrumental in producing the long era of prosperity, relative peace and well
-being which the developed world has enjoyed over the many decades since the
Second World War.

Dividend

As a result of the large and unexpected decline in the market value of our
largest investment in 2025, we will not pay an interim or final dividend for the
year. We intend to resume the payment of dividends upon the return of valuation
levels closer to those prevailing in the previous year.

Recent events and outlook

Despite the continued and surprising resilience in equity markets over the
period, it will be evident from the remarks made above that the general
background to financial markets and investment has become even more turbulent,
uncertain and difficult to gauge than it has been for many years.

As previously noted in our interim report, the massive uncertainties caused by
the often outlandish and unpredictable initiatives emanating from the USA and
the many anti-business and economically disruptive policies being introduced in
both the USA and the UK, plus more recently with the outbreak of a regional war
in the Middle East with its seriously negative global implications, do not bode
well for ensuring the stable and predictive background in which businesses can
thrive and be profitable.

With respect to our own particular portfolio, given that our investments have
over the last year become concentrated on a specific sector, US biotechnology,
which has its own unique dynamic and particularly given the current
circumstances of the investments in question, it could be said that our
portfolio is somewhat less exposed to the general vicissitudes of the broader
market, as has indeed been seen over the last year. We remain convinced that
developments expected in both of our main US investments will bear fruit in
terms of increased value over the forthcoming period, enabling us to re
-establish a broader range of investments in the portfolio as market conditions
at the time permit.

As at 22 April 2026, our net assets had increased to £2.7 million, an increase
of 15.4 percent since the beginning of the calendar year. This is equivalent to
7.6 pence per share (prior charges deducted at fully diluted value) and 7.6
pence per share on a diluted basis. Over the same period the FTSE 100 increased
5.5 percent and the All Share Index increased 5.1 percent.

David Seligman

29 April 2026

Managing Director’s report

As noted above in the Chairman’s statement, US and UK equity markets
demonstrated high levels of both volatility and resilience over the past year.
By year end, these markets had recovered their all time high levels despite the
plethora of the otherwise disruptive events and negative conditions which
prevailed over the period.

This can to some extent be explained by the weight of liquidity seeking a home
as interest rates and inflation continued to recede from their post-Covid highs
and the effects of the energy price shock following the Russian invasion of
Ukraine.  Additionally, there was an unprecedented rush of investment into AI
related companies which drove up the indices and also into gold, the latter
increasing by 100 percent over the year in US dollar terms to never before seen
values as central banks, particularly in China, India and Brazil, increased
their holdings significantly as a counterweight to their US treasury
investments.

By contrast, the US dollar, US treasuries, UK gilts and the property sector came
under sustained pressure as medium to long-term interest rates reflected the
poor longer-term political and economic outlook of many Western countries faced
with stubborn levels of inflation, weak growth and growing government debt and
debt servicing burdens.

This was particularly the case in the UK as the misguided political, fiscal and
financial initiatives of the new Labour government continued to have a negative
impact on its vaunted ambitions to achieve sustained growth, reduce inflation
and observe fiscal rectitude.  These policy mis-steps were detailed in the
interim statement and their combined effects have left the UK in a weakened
position to deal with the additional pressures now caused by the hostilities in
Iran, as the IMF has recently pointed out.

Despite this, however, the UK equity market remained firm over the year,
although it should be noted that while the UK FTSE 100 index of large
capitalisation companies – reflecting the activities of mainly international
companies with foreign earnings – grew by 20 percent in 2025, the FTSE 250 index
of mid-capitalisation companies – which better represents the domestic
activities of UK companies – grew by the lower amount of 9 percent.  Reflecting
this and the weak underlying condition of the UK economy and its prospects, the
pound sterling, while gaining by 10 percent against a weak US dollar, lost 4
percent against the Euro over the year.

As the equity concentration of our portfolio has narrowed considerably with the
planned disposal last year of many of our UK-based stocks, the substantial
downward movement in the price of our largest US investment, Geron Corporation,
and also in the US dollar, has had a disproportionately negative effect on the
portfolio’s overall value, as previously noted in our interim statement and in
the Chairman’s statement above.  The 200 percent recovery over the year in the
share price of our second largest US investment, Lineage Cell Therapeutics, when
coupled with the 10 percent fall in the US dollar, was not sufficient to prevent
the large decline in the value of our portfolio overall, as set out in the
Chairman’s statement above.  Since the year end, however, the price of Geron has
recovered by 17 percent with further advances expected this year as the
company’s sales start to reflect the increases recently forecast by the company,
as explained in more detail below.

Geron Corporation

Geron’s share price fell by 75 percent in 2025 from the high levels achieved in
2024 which reflected the solid and long-awaited progress achieved in that year;
namely, approval received from the FDA of its haematology drug, Imetelstat
(marketed as `Rytelo’), and the commencement of commercial sales. The severe
reversal in 2025 was quite unexpected and, as previously explained in the
interim statement, followed static sales in the Christmas quarter of 2024 when
such first year sales of a newly launched drug are expected to follow a steadily
rising pattern.

In response, the long-serving CEO departed, a new and experienced CEO was
appointed in the summer and a significant restructuring of the sales team and
its focus was carried out. Its aim was to enhance sales quickly and reduce costs
with a view to achieving break-even in the second half of 2026.  Additionally,
and most importantly, the company for the first time issued a sales forecast for
2026 which called for a current year increase in sales of approximately 30
percent, the sort of early-year sales trajectory which a newly released and
ground-breaking drug would expect to enjoy.

Despite these substantial and forward-looking operational adjustments, the
company’s share price remained subdued during the year, valuing the company
significantly below its comparators when applying standard market sales-based
metrics to the sales actually achieved in the USA in the year, let alone
prospective sales expected to be generated in the current year, in line with the
recently announced sales forecasts.  This sales-related market valuation
methodology applicable to such early-stage biotechnology company as Geron was
fully explained in our interim statement.

Furthermore, the current valuation also fails to take any account of a number of
the company’s other important value drivers. These include:

· expected break-even this year,
· European sales following EMEA approval in Europe last year. Although the
commencement of these sales has been delayed by the US administration’s recent
imposition of Most Favoured Nation rules on US drug company pricing, the
management is actively seeking European partners to collaborate with under this
new regime and an early access programme is already underway in Germany,
· a second disease indication (MF – Myelofibrosis) currently in advanced Phase
3 trials with a larger addressable market than the current disease indication
currently being commercialised (MDS – Myelodysplastic Syndrome),
· significant levels of cash with little debt, and
· potential interest from big pharma companies. The sector has seen
considerably increased levels of corporate activity over the recent year, not to
address the perennial issue of patent expiry but in response to widespread
industry concern caused by the damaging price and trade tariff changes
introduced by the White House.

Because of this current disconnect between market valuation and the underlying
value of the company’s sales and prospects, we fully expect the market to re
-rate the company in the near term, particularly if the first quarter results to
be announced next month confirm the trajectory of significantly higher sales
projected by the company for 2026.  We are therefore committed to retaining this
investment until such time as its prior and indeed a properly representative
market value is realised.  At which time, we will be able to rebalance the
portfolio back to a more traditional structure and recommence the payment of
dividends.

Feature film rights

In 2025, our film company subsidiary changed the basis valuation of its feature
film rights to reflect more accurately the market value of these assets, in line
with third-party professional valuations obtained in previous years and re
-confirmed in 2025.

Previously, these films and their long-term world-wide copyrights had been
valued using a financial proxy methodology based on historical revenues,
including discounted cash flow, comparable price earnings and market yield
calculations.

The resulting valuations using this method were considerably lower than the
valuation range determined by the professional valuation which captured not only
the income-based value noted above but also the open-market sale values of both
the films themselves and the ancillary value associated with the long copyright
world-wide rights to these titles, including for example valuable feature film
and TV series remake rights and licensing. Work is currently ongoing to exploit
these ancillary rights in relation to two titles.

As a result, an upward revaluation of these assets of £1.7 million has been
included in this year’s results to a level which itself has been conservatively
capped at a discount of approximately 40 percent to the low end of the range
determined by the professional valuation to take account of uncertainty and the
long time-frame involved in film making.

Jonathan Woolf

29 April 2026

Income statement

For the year ended 31 December 2025

2025 2024

Revenue Capital Total Revenue Capital Total
return return return return
£ 000 £ 000 £ 000 £ 000 £ 000 £ 000
Investment 106 – 106 939 – 939
income
(note 2)
Holding – (1,169) (1,169) – 2,270 2,270
(losses)/gai
ns on
investments
at fair
value
through
profit or
loss
Losses on – (1,033) (1,033) – (198) (198)
disposal
of
investments
at
fair value
through
profit or
loss
Losses on – (884) (884) – (254) (254)
provision
for
liabilities
and charges
Foreign 31 (164) (133) (7) 41 34
exchange
gains/(losse
s)
Expenses (373) (143) (516) (436) (246) (682)
________ ________ ________ ________ ________ ________
(Loss)/profi (236) (3,393) (3,629) 496 1,613 2,109
t
before
finance
costs
and tax
Finance (29) (12) (41) (58) (33) (91)
costs
________ ________ ________ ________ ________ ________
(Loss)/profi (265) (3,405) (3,670) 438 1,580 2,018
t
before tax
Tax 27 – 27 35 – 35
________ ________ ________ ________ ________ ________
(Loss)/profi (238) (3,405) (3,643) 473 1,580 2,053
t for
the year
________ ________ ________ ________ ________ ________
Earnings
per share
Basic – (2.35)p (13.62)p (15.97)p 0.49p 6.32p 6.81p
ordinary
shares*
  _______   _______   _______   _______   _______   _______

_ _ _ _ _ _
Diluted – (2.35)p (13.62)p (15.97)p 0.49p 4.51p 5.87p
ordinary
shares*
________ ________ ________ ________ ________ ________

The company does not have any income or expense that is not included in the
profit/(loss) for the year. Accordingly, the `(Loss)/profit for the year’ is
also the `Total Comprehensive Income for the year’ as defined in IAS 1 (revised)
and no separate Statement of Comprehensive Income has been presented.

The total column of this statement represents the Income Statement, prepared in
accordance with IFRS. The supplementary revenue return and capital return
columns are both prepared under guidance published by the Association of
Investment Companies. All items in the above statement derive from continuing
operations.

All profit and total comprehensive income is attributable to the equity holders
of the company.

*Calculated in accordance with International Accounting Standard 33 `Earnings
per Share’. The cumulative convertible non-redeemable preference shares are anti
-dilutive relating to the calculation of diluted EPS on the revenue return and
capital return.

Statement of changes in equity

For the year ended 31 December 2025

Share Capital Retained Total
capital reserve earnings

£ 000 £ 000 £ 000 £ 000
Balance at 31 December 2023 35,000 (30,709) 221 4,512
Changes in equity for 2024
Profit for the period – 1,580 473 2,053
Ordinary dividend paid (note 4) – – (437) (437)
Preference dividend paid (note 4) – – (175) (175)
________ ________ ________ ________
Balance at 31 December 2024 35,000 (29,129) 82 5,953
Changes in equity for 2025
Loss for the period – (3,405) (238) (3,643)
Ordinary dividend paid (note 4) – – – –
Preference dividend paid (note 4) – – – –
________ ________ ________ ________
Balance at 31 December 2025 35,000 (32,534) (156) 2,310
________ ________ ________ ________

Registered number: 00433137

Balance Sheet

At 31 December 2025

2025 2024

£ 000 £ 000
Non-current assets
Investments – at fair value 1,078 5,678
through profit or loss
Investment in subsidiaries – at 8,185 7,359
fair value through profit or
loss
__________ __________
9,263 13,037
Current assets
Receivables 61 20
Derivatives – at fair value  1 11
through profit or loss
Cash and cash equivalents 1 249
__________ __________
63 280
__________ __________
Total assets 9,326 13,317
__________ __________
Current liabilities
Trade and other payables 936 1,884
Bank credit facility 658 942
__________ __________
(1,594) (2,826)
__________ __________

Total assets less current 7,732 10,491
liabilities
__________ __________

Non – current liabilities (5,422) (4,538)
__________ __________
Net assets 2,310 5,953
__________ __________
Equity attributable to equity
holders
Ordinary share capital 25,000 25,000
Convertible preference share 10,000 10,000
capital
Capital reserve (32,534) (29,129)
Retained revenue earnings (156) 82
__________ __________
Total equity 2,310 5,953
__________ __________

Approved: 29 April 2026

Cash flow statement

For the year ended 31 December 2025

Year ended 2025 Year ended 2024
£ 000 £ 000
Cash flows from operating activities
(Loss)/profit before tax (3,670) 2,018
Adjustments for:
Losses/(gains) on investments 3,086 (1,818)
Proceeds on disposal of investments 1,152 832
at fair value through profit and
loss
Purchases of investments at fair (99) (236)
value through profit and loss
Interest received (52) (5)
__________ __________
Operating cash flows before 417 791
movements in working capital
(Increase)/decrease in receivables (58) 331
Decrease in payables (68) (172)
__________ __________
Net cash from operating activities 291 950
before interest
Interest paid (23) (67)
__________ __________
Net cash from operating activities 268 883
Cash flows from financing activities
Dividends paid on ordinary shares (137) (300)
Dividends paid on preference shares (95) (80)

__________ __________
Net cash used in financing (232) (380)
activities
__________ __________
Net increase in cash and cash 36 503
equivalents
Cash and cash equivalents at (693) (1,196)
beginning of year
__________ __________
Cash and cash equivalents at end of (657) (693)
year
__________ __________

Cash and cash equivalents 1 249
Bank credit facility (658) (942)
       __________        __________
Cash and cash equivalents at end of (657) (693)
year
__________ __________

Purchases and sales of investments are considered to be operating activities of
the company, given its purpose, rather than investing activities. Cash and cash
equivalents at year end shows net movement on the bank facility.

1 Basis of preparation and going concern

The financial information set out above contains the financial information of
the company for the year ended 31 December 2025. The company has prepared its
financial statements in accordance with UK-adopted international accounting
standards and with the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards. The financial statements have also
been prepared as far as applicable and relevant to the company in accordance
with the Statement of Recommended Practice: Financial Statements of Investment
Trust Companies and Venture Capital Trusts (SORP), reissued in July 2022 by the
Association of Investment Companies (AIC).

The financial statements have been prepared on a going concern basis adopting
the historical cost convention except for the measurement at fair value of
investments, derivative financial instruments and subsidiaries.

The information for the year ended 31 December 2025 is an extract from the
statutory accounts to that date. Statutory company accounts for 2024, which were
prepared in accordance with UK-adopted international accounting standards, have
been delivered to the registrar of companies and company statutory accounts for
2025, prepared under IFRS as adopted by the UK, will be delivered in due course.

The auditors have reported on the 31 December 2025 year end accounts and their
report was unqualified and did not include references to any matters to which
the auditors drew attention by way of emphasis without qualifying their reports
and did not contain statements under section 498(2) or (3) of the Companies Act
2006.

The directors, having made enquiries, consider that the company has adequate
financial resources to enable it to continue in operational existence for the
foreseeable future. Accordingly, the directors believe that it is appropriate to
continue to adopt the going concern basis in preparing the company’s accounts.

2 Income

2025 2024
£ 000 £ 000
Income from investments

UK dividends 12  263
Dividend from subsidiary –  578
_________ _________
12 841

Other income 94 98
_________ __________
Total income 106 939
_________ __________

Total income comprises:

Dividends 12 841
Other interest 93 96
Other income – settlement of US class action suit 1 2
_________ _________
106 939
_________ __________
Dividends from investments

Listed investments 5  263
Unlisted investments 7  578
_________ _________
12  841
_________ __________

During the year the company received a dividend of £nil (2024 – £578,000) from a
subsidiary which was generated from gains made on the realisation of investments
held by that company. As a result of the receipt of this dividend a
corresponding reduction was recognised in the value of the investment in the
subsidiary company.

During the year the company recognised £196,000 of a foreign exchange loss (2024
– £48,000 gain) on the loan of $3,526,000 to a subsidiary.  As a result of this
loss, the corresponding movement was recognised in the value of the investment
in the subsidiary company.

Under IFRS 10 the income analysis is for the parent company only rather than
that of the consolidated group. Thus, film revenues of £117,000 (2024 –
£112,000) received by the subsidiary British & American Films Limited are shown
separately in this paragraph.

3 Earnings per ordinary share

The calculation of the basic (after deduction of preference dividend) and
diluted earnings per share is based on the following data:

2025 2024
Revenue Capital Total Revenue Capital
Total
return return return return

£ 000 £ 000 £ 000 £ 000 £ 000
£ 000
Earnings:
(Loss)/profit after (238) (3,405) (3,643) 473 1,580
2,053
tax
Cumulative (350) – (350) (350) –
(350)
convertible non
-redeemablepreference

shares
dividend
________ _________ _________ ________ _________
_________
Adjusted (588) (3,405) (3,993) 123 1,580
1,703
(loss)/profit after
tax
________ _________ _________ _________ _________
_________

Weighted Weighted
average average
number number of
of ordinary
ordinary shares
shares
`000 `000 `000 `000 `000
`000
Basic 25,000 25,000 25,000 25,000 25,000
25,000
Diluted 35,000 35,000 35,000 35,000 35,000
35,000

Basic revenue, capital and total return per ordinary share is based on the net
revenue, capital and total return for the period after tax and after deduction
of dividends in respect of preference shares and on 25 million (2024: 25
million) ordinary shares in issue.

The diluted revenue, capital and total return is based on the net revenue,
capital and total return for the period after tax and on 35 million (2024: 35
million) ordinary and preference shares in issue.

*Calculated in accordance with International Accounting Standard 33 `Earnings
per Share’. The cumulative convertible non-redeemable preference shares are anti
-dilutive relating to the calculation of diluted EPS on the revenue return.

4 Dividends

2025 2024
£ 000 £ 000
Amounts recognised as distributions to equity
holders in the period
Dividends on ordinary shares:
Final dividend for the year ended 31 December – –
2024 of 0.00p (2023: 0.00p) per share
Interim dividend for the year ended 31 – 437
December 2025 of 0.00p
(2024: 1.75p) per share
__________ __________
– 437
__________ __________
Proposed final dividend for the year ended 31 –  –
December 2025 of 0.00p (2024: 0.00p) per share
__________ __________

Dividends on 3.5% cumulative convertible
preference shares:
Preference dividend for the 6 months ended 31 – –
December 2024 of 0.00p (2023: 0.00p) per share
Preference dividend for the 6 months ended 30 – 175
June 2025 of 0.00p (2024: 1.75p) per share
Preference dividend for the 6 months ended 31 – –
December 2025 of 0.00p (2024: 0.00p) per share
__________ __________
– 175
__________ __________

We have set out below the total dividend payable in respect of the financial
year, which is the basis on which the retention requirements of Section 1158 of
the Corporation Tax Act 2010 are considered.

Dividends proposed for the period
2025 2024
£ 000 £ 000
Dividends on ordinary shares:
Interim dividend for the year ended 31 – 437
December 2025 of 0.00p (2024: 1.75p) per share

Proposed final dividend for the year ended 31 – –
December 2025 of 0.00p (2024: 0.00p) per share
__________ __________
– 437
__________ __________
Dividends on 3.5% cumulative convertible
preference shares:
Preference dividend for the 6 months ended 30 – 175
June 2025 of 0.00p (2024: 1.75p) per share
Preference dividend for the 6 months ended 31 – –
December 2025 of 0.00p (2024: 0.00p) per share
__________ __________
– 175
__________ __________

The non-payment in December 2019, December 2020, June 2022, December 2023,
December 2024, June 2025 and December 2025 of the dividend of 1.75 pence per
share on the 3.5% cumulative convertible preference shares, consequent upon the
non-payment of a final dividend on the Ordinary shares for the year ended 31
December 2019, for the year ended 31 December 2020, for the period ended 30 June
2022, for the year ended 31 December 2023, for the year ended 31 December 2024
and for the year ended 31 December 2025, has resulted in arrears of £1,225,000
on the 3.5% cumulative convertible preference shares. These arrears will become
payable in the event that the ordinary shares receive, in any financial year, a
dividend on par value in excess of 3.5%.

5 Net asset values

Net asset
value per share
2025 2024
Ordinary shares £ £
Diluted 0.07 0.17
Undiluted 0.07 0.17
Net assets attributable
2025 2024
£ 000 £ 000
Total net assets 2,310 5,953
Less convertible preference (660) (1,701)
shares at fully diluted
value
__________ __________
Net assets attributable to 1,650 4,252
ordinary shareholders
__________ __________

The undiluted and diluted net asset values per £1 ordinary share are based on
net assets at the year end and 25 million (undiluted) ordinary and 35 million
(diluted) ordinary and preference shares in issue.

Principal risks and uncertainties

The principal risks facing the company relate to its investment activities and
include market risk (other price risk, interest rate risk and currency risk),
liquidity risk and credit risk. The other principal risks to the company are
loss of investment trust status and operational risk. These will be explained in
more detail in the notes to the 2025 Annual Report and Accounts, but remain
unchanged from those published in the 2024 Annual Report and Accounts.

Post balance sheet event

In March 2026, the company entered into a £2.0 million unsecured loan facility
agreement with a related party Romulus Films Limited in repayment of all amounts
outstanding to Credit Suisse. The facility shall be available for a term of five
years and will be repayable in full on the last day of term or earlier at the
option of the borrower.

Related party transactions

The company rents its offices from Romulus Films Limited, and is also charged
for its office overheads.

The salaries and pensions of the company’s employees, except for the non
-executive directors and one employee are paid by Remus Films Limited and
Romulus Films Limited and are recharged to the company.

During the year the company entered into an investment transaction with BritAm
Investments Limited to sell stock for £561,000 (2024 – £nil).

At 31 December 2025 £4,977,779 (2024 – £4,983,221) was owed by British &
American Films Limited to Romulus Films Limited under an existing loan agreement
(general purpose facility agreement).

There have been no other related party transactions during the period, which
have materially affected the financial position or performance of the company.

Capital Structure

The company’s capital comprises £35,000,000 (2024 – £35,000,000) being
25,000,000 ordinary shares of £1 (2024 – 25,000,000) and 10,000,000 non-voting
convertible preference shares of £1 each (2024 – 10,000,000). The rights
attaching to the shares will be explained in more detail in the notes to the
2025 Annual Report and Accounts, but remain unchanged from those published in
the 2024 Annual Report and Accounts.

The period from 1 January 2006 to 31 December 2025 (both inclusive) during which
the holders of the Non-Voting Preference Shares had the right to convert all or
any of the Non-Voting Preference Shares held by them into fully paid Ordinary
Shares at the rate of one New Ordinary Share for each Non-Voting Preference
Share has now ended.

In accordance with the company’s Articles of Association, any unconverted Non
-Voting Cumulative Preference Shares outstanding shall be re-designated as
Cumulative Non-Voting Preference Shares only. Accordingly, with effect from 31
December 2025, such shares became non-convertible but otherwise remain in issue
and are non-redeemable.

Directors’ responsibility statement

The directors are responsible for preparing the financial statements in
accordance with applicable law and regulations. The directors confirm that to
the best of their knowledge the financial statements prepared in accordance with
the applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and the profit/(loss) of the company and
that the Chairman’s Statement, Managing Director’s Report and the Directors’
report include a fair review of the information required by rules 4.1.8R to
4.2.11R of the FCA’s Disclosure and Transparency Rules, together with a
description of the principal risks and uncertainties that the company faces.

Annual General Meeting

This year’s Annual General Meeting has been convened for Friday 26 June 2026 at
12.15pm at Wessex House, 1 Chesham Street, London SW1X 8ND.

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