Aberforth Smaller Companies Trust PLC · LSE:ASL
Aberforth Smaller Companies Trust — Aberforth Partners LLP — Investor Presentation (November 2025)
32 slides from Aberforth Smaller Companies Trust's investor presentation, November 2025
Slide 1: Presentation to AFUND Investors, November 2025
Aberforth Partners LLP Presentation to AFUND Investors November 2025 This presentation is intended for investment professionals. It does not represent investment advice. 14 Melville Street - Edinburgh EH3 7NS Tel 0131 220 0733 enquiries@aberforth.co.uk - www.aberforth.co.uk Aberforth Partners LLP is
Slide 2: Aberforth Partners
Aberforth Partners ▪ A consistent investment approach deployed by a well-resourced team of six ─ Small UK quoted companies, value philosophy, fundamental analysis, engagement ─ Significant “skin in the game” ─ New investment manager – Duncan MacInnes joined us in September ▪ Prioritising our existin
Slide 3: Total returns to 31 October 2025
Total returns to 31 October 2025 CAGR AFUND Total Return % YTD 1 Year 3 Year 5 Year 10 Year inception FTSE All-Share 20.9 22.5 14.7 14.7 8.0 8.1 FTSE 250 (XIC) 9.9 10.8 11.9 9.0 5.0 9.9 FTSE SmallCap (XIC) 8.6 8.6 13.8 13.7 7.2 7.5 DNSCI (XIC) 11.1 12.9 12.6 9.9 6.1 9.3 AFUND 6.7 8.1 11.8 14.3 5.8 1
Slide 4: External influences on AFUND's performance in 2025
External influences on AFUND’s performance in 2025 ▪ A drag from macroeconomic uncertainty ─ Overseas facing businesses – tariff related volatility ─ Domestic facing businesses – UK fiscal concerns and the Budget ▪ Style factors ─ Value – helpful year-to-date but a headwind since June ─ Size (over-w
Slide 5: Winners and losers – 10 months to 31 October
Winners and losers – 10 months to 31 October 10 Best Winners 10 Worst Losers Total Total Rank Company return (%) Attribution (bp) Rank Company return (%) Attribution (bp) 1 Zegona Communications 68 140 1 Ithaca Energy 118 -124 2 Jupiter Fund Management 84 122 2 Videndum -73 -116 3 International Pers
Slide 6: Value roll – 10 months to 31 October
Value roll – 10 months to 31 October Top 10 Purchases Top 10 Sales Rank Company £m Rank Company £m 1 Pets at Home Group 2.1 1 Just Group * 5.5 2 Ashmore Group 2.0 2 Zegona Communications 5.1 3 Brooks Macdonald Group † 1.9 3 Quilter 3.3 4 Hollywood Bowl Group 1.5 4 Bakkavor Group * 3.2 5 Gamma Commun
Slide 7: Looking ahead
Looking ahead Aberforth Partners LLP 6
Slide 8: The triple discount revisited – and yet it moves!
The triple discount revisited – and yet it moves! Historical PEs PE relatives 18.6 World 16.0 1. UK vs. RoW 35Y average 0.96 Today 0.92 17.2 31 Dec 2024 0.86 UK 15.3 2. Small caps vs. UK 35Y average 0.88 Today 0.75 Small cap* 13.5 31 Dec 2024 0.82 13.0 *London Business School series till 2013, then
Slide 9: Smaller companies – neglect and opportunity
Smaller companies – neglect and opportunity Rolling 5 year relative total return, DNSCI (XIC) vs. FTSE All-Share 180 170 160 150 140 130 120 110 100 90 80 70 60 ▪ Extended period of small cap under-performance – lingering effects of Brexit and the pandemic ─ Not just the UK – a liquidity obsession i
Slide 10: Attractive valuations
Attractive valuations Number of EV/EBITA 2024 2025 2026 stocks AFUND 81 7.8x 8.1x 7.1x Tracked Universe 220 11.5x 11.3x 9.9x "Smaller small" companies* 126 9.0x 9.1x 7.6x "Larger small" companies** 94 12.6x 12.2x 10.9x Stocks > 60% revenue generated UK*** 98 11.9x 11.3x 10.1x Stocks > 60% revenue ge
Slide 11: M&A realisations since 2021
M&A realisations since 2021 Completed or new offers within the DNSCI (XIC) since 31/12/2021 120% Seraphine Group (206%) Pendragon Alphawave IP Group Wincanton Micro Focus 100% Spirent Communications John Menzies RPS Group 80% Innovaderma Devro Restaurant Group Kin and Carta Just Group Offer price pr
Slide 12: Engaged and influential
Engaged and influential ▪ Aberforth’s approach to stewardship ─ Discreet engagement, honed over three decades, subject to our valuation discipline ─ Supportive and long term, seeking to work with and through the chair ▪ Influence from significant stakes, where Aberforth’s clients have 10%+ stakes ─
Slide 13: Jupiter Fund Management case study – the valley of fear
Jupiter Fund Management case study – the valley of fear 160p Structural headwinds Engagement The turn 150p • Mid tier killing ground • Board & shareholders • Change of chair • Fee pressure • Self-help on cost • Cost savings 140p • Rising costs • Capital allocation • Acquisition of CCLA 130p • Outflo
Slide 14: Dividends signal the fundamentals
Dividends signal the fundamentals ▪ Aberforth’s style and process have driven strong dividend growth over 35 years ▪ AFUND pays out what it earns, returning income earned promptly to unitholders 60 ▪ ASCoT has the same portfolio but can smooth dividends 50 9.0 ─ The chart shows the strong underlying
Slide 15: Why invest in AFUND today?
Why invest in AFUND today? 1. The market is taking notice of UK valuations ─ Where’s the “moron premium” in the FTSE 100? 2. Small cap valuations remain extremely attractive ─ An option on UK not being as bad as everyone seems to think 3. M&A activity within the small cap universe remains elevated ─
Slide 16: Aberforth's long term performance record
Aberforth’s long term performance record Total return performance since AFUND's inception 35 year 4550 CAGR 4050 £100k invested at AFUND inception: +11.1% 3550 AFUND: £3.8m Total Return rebased to 100 3050 DNSCI (XIC): £2.1m FTAS: £1.5m 2550 +9.3% 2050 1550 +8.1% 1050 550 50 AFUND TR FTSE All-Share
Slide 17: Appendix
Appendix Aberforth Partners LLP 16
Slide 18: Top 20 holdings
Top 20 holdings Total Rank Company Activity portfolio (%) 1 Jupiter Fund Management Investment manager 3.3 2 Wilmington Business information and training 2.7 3 Vesuvius Metal flow engineering 2.5 4 Ashmore Group Investment manager 2.5 5 Galliford Try Holdings Building and infrastructure contractor 2
Slide 19: Sector exposure
Sector exposure DNSCI (XIC) AFUND Relative Sector Significant holdings (>1.5% portfolio weight) weight weight weight Technology 6.3% 6.6% 0.3% TT Electronics, NCC Group, MONY Group Telecommunications 1.0% 0.0% -1.0% Health Care 3.3% 0.0% -3.3% CMC Markets, Sabre Insurance Group, Rathbones Group, Jup
Slide 20: Value style and size
Value style and size Value component of DNSCI (XIC) against DNSCI (XIC) Value style 19% 870 ▪ Value premium within the DNSCI (XIC) since 17% 770 15% ─ The index’s inception in 1955 +3.2% p.a. Value component of DNSCI (XIC) vs DNSCI (XIC) 670 13% 11% ─ ASCoT’s inception in 1990 +2.0% p.a. 570 9% 470
Slide 21: Aberforth's differentiation
Aberforth’s differentiation ASCoT & AFUND AGVIT Size Investment Trusts Mid Cap ITs Unit Trusts AGVIT ASCoT & AFUND Style Aberforth Partners LLP Source: Aberforth Partners LLP; Morningstar. Data available as at 05 November 2025. 20
Slide 22: Balance sheets – leverage profile
Balance sheets – leverage profile Profile of Net debt/EBITDA bandings 40% 35% 30% Weight of portfolio 25% 20% 15% 10% 5% 0% Net Cash < 1x 1x to 1.99x 2x to 2.99x > 3x Net debt/EBITDA bandings AFUND (2025) Tracked Universe (2025) ▪ Strong balance sheets in the portfolio and small companies in general
Slide 23: Portfolio dividend experience
Portfolio dividend experience Portfolio categorised by holding's most recent dividend action 35 30 25 Number of companies 20 33 15 10 20 13 5 11 4 0 Cutters Nil payers No changers Increasers Returners / New Aberforth Partners LLP Source: Aberforth Partners LLP; Bloomberg. Data as at 31 October 2025.
Slide 24: Investment managers
Investment managers SAMUEL G FORD MEng Sam joined Aberforth in August 2019 and became a Partner in May 2021. As a fund manager on M&G Investments’ equity income team for the previous 5 years, he managed UK equity portfolios for a range of clients. Prior to that he was an investment manager with Alli
Slide 25: Glossary – Aberforth Funds
Glossary – Aberforth Funds ▪ Aberforth’s investment philosophy and putting it into practice is explained further at www.aberforth.co.uk/about-Aberforth/ ▪ Aberforth Standard Value refers to The Aberforth Smaller Companies Trust plc, Aberforth’s longest standing client. ▪ Accumulation Units: units no
Slide 26: Glossary – Aberforth Funds
Glossary – Aberforth Funds ▪ GFC: Global Financial Crisis, was a severe worldwide economic crisis that occurred in 2007 to 2008. ▪ GHG: Green House Gas emissions. ▪ Hurdle rate is the rate of capital growth per annum to return a stated amount per share at the planned winding-up date. ▪ Income Units
Slide 27: Glossary – Aberforth Funds
Glossary – Aberforth Funds ▪ Scope 4: Relates to a category of Green House Gas emissions. Termed as avoided emissions, Scope 4, can be defined as reductions that occur outside of a product’s life cycle or value chain, but as a result of the use of that product. ▪ Share buy backs/buybacks: A share bu
Slide 28: Important information
Important information Aberforth Partners LLP 27
Slide 29: Important information
Important information ▪ Throughout this presentation references to: SMALL COMPANIES mean constituents of the Deutsche Numis Smaller Companies Index (Excluding Investment Companies) which are referred to as “DNSCI (XIC)”; LARGE COMPANIES mean constituents of the FTSE All-Share Index which are referre
Slide 30: Important information
Important information ▪ This presentation is intended only for persons who satisfy the requirements of Article 19 (Investment Professionals) and Article 49 (High Net Worth Companies etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and may not be copied or passed
Slide 31: Risk warnings
Risk warnings ▪ Capital may be at risk as the value of investments may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested. ▪ Past performance is not a guide to future performance, nor a reliable indicator of future results or performance.
Slide 32: Risk warnings
Risk warnings ▪ An investment trust may only pay dividends to the extent that it has distributable profits available for that purpose. A reduction in the income from an investment trust's portfolio could adversely affect the yield, if any, on its shares. ▪ Investment trusts may borrow money in order
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