Schroders Capital Global Innovation Trust plc - INOV H1 2026 Earnings Report

Schroders Capital Global Innovation Trust plc - INOV EPS Results

• Actual EPS: -GBX 0.12
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Schroders Capital Global Innovation Trust plc - INOV Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Schroders Capital Global Innovation Trust plc - INOV Announcement Details

• Quarter: H1 2026
• Date: 9/16/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, September 16, 2026
• Conference Call Time: 2:00AM ET

Schroder UK Public Private Trust plc specializes in investments in startups, midsize, middle market and large stage, early stage and mature stage investments. The fund primarily invests in the healthcare, financials, industrials, technology, consumer goods, telecommunications, basic materials, and biotechnology sector. It seeks to invest in quoted and unquoted companies. It primarily invests in companies incorporated in the United Kingdom or traded on a London Stock Exchange market but can invest in Europe, United States and Asia other countries. The fund seeks to become a significant shareholder in the portfolio companies.

Schroders Capital Global Innovation Trust plc - INOV H1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: NAV per share rose 1.3% in the first half, while the share price increased 10.5%, narrowing the discount to NAV from more than 30% to approximately 25%.
• Positive Sentiment: The managed wind-down generated £9.6 million in realizations, including exits from Bluewater Bio, Autolus Therapeutics and milestone proceeds. The planned 2026 tender offer was increased to £28 million, taking expected capital returned since the wind-down to £66 million.
• Positive Sentiment: The life sciences portfolio produced key trade-sale outcomes: Memo Therapeutics’ lead program was acquired by Ipsen for £200 million upfront plus potential milestones, while Neurona Therapeutics was acquired by UCB for $650 million upfront plus potential milestones.
• Positive Sentiment: Revolut remained a major value driver, with management highlighting 30% customer growth to 68 million, strong profitability and continued regulatory expansion. Its increased valuation made it the fund’s second-largest holding, close behind Atom Bank.
• Negative Sentiment: Management said it does not expect material portfolio realizations before 2028, reflecting limited control over exits from minority investments and dependence on trade sales or IPOs. In addition, Kymab’s milestone value was eliminated after Sanofi discontinued the relevant program, while Back Market and AgroStar were written down.

Presentation

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

Welcome, ladies and gentlemen, to the interim report and accounts investment update for the Schroders Capital Global Innovation Trust. This presentation is going to give an overview of four sections. Firstly, an introduction, giving an overview of the fund and where we are currently at. Then I will go into a bit more detail on the financial performance, then more detail on the specific portfolio developments, and finally, a short outlook, giving a view over the next 6-12 and longer term period. Firstly, on the introduction, the key messages from the interim reports. Firstly, the NAV per share increased by 1.3%, from GBP 0.2223 as of the end of December, to GBP 0.2253 as of the end of June. The company made progress with its managed wind down.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

We generated GBP 9.6 million in realizations over the period, from exits of Bluewater Bio, Autolus Therapeutics, and milestones from several of the previously exited life science holdings. The interim report also details the increase in the planned tender offer to GBP 28 million from GBP 18 million originally. This is supported by cash generation in the portfolio, and the existing available resources. In line with the managed wind down, we also completed no new or follow-on investments over the period. The portfolio continues to be managed for orderly exits rather than forced disposals. Firstly on financial performance. This first slide gives an overview of the change in, firstly, the NAV per share and also the share price on the left-hand side of the page. As mentioned on the previous slide, the NAV per share increased by 1.3% over the first half period.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

That was a decline in the first quarter and then stronger growth in the second. On the share price level, over the period, it increased by 10.5% with a similar dynamic to the NAV per share. The discount to the NAV per share narrowed from greater than 30% to closer to 25%. The right-hand side of this page gives an overview of the aggregate value of the fund's NAV and market capitalization, therefore not reflecting the number of shares and issuance, which is impacted by the tender offers that have been implemented by the board. Next slide just gives an overview of the calendar year performance of the fund, over the previous years. The first slide on more details of the performance.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

This, similar to the previous presentation I gave for the annual result and accounts, looks at the performance very specifically since the wind down. For this purpose, we look at performance since Q3 of 2024. The portfolio overall has increased by 11.8%, with 36% of the starting value of that portfolio having now been turned into realizations. Starting investment value of just under GBP 137 million, GBP 6 million of investments completed into the portfolio. A gain of just under GBP 17 million and then GBP 50 million of realizations, which brings us to the value of the portfolio, at the end of the interim report period, of GBP 110 million. This next slide then just goes in on the cash profile of the fund.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

Over that same period, the fund started with GBP 29 million in cash, made the same amount of investments and realizations with a small gain in the money market fund that we hold. To date has repurchased or canceled GBP 38 million in shares, with a small amount coming out for costs and other movements, bringing cash at the end of the period to GBP 34 million. Overall, GBP 38 million returned to date, when combined with the planned tender offer for 2026, which as I mentioned earlier, has been increased from GBP 18 million to GBP 28 million. That will take the total amount returned to shareholders over the period to GBP 66 million, since the wind down. Next on to portfolio developments. From an investment activity perspective, no new investments were completed in the period. Realizations total just under GBP 10 million.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

On the portfolio side, we had the sale of Neurona Therapeutics to UCB, for up to $1.2 billion or just under that. We had the sale of Memo Therapeutics or their potravitug program to Ipsen for up to EUR 700 million. The sale of Bluewater Bio in the Salica Environmental Technologies Fund that completed in January of this year. From a valuation perspective, we had the positive revaluation of Revolut, and I'll give a bit more detail in terms of how that company is performing. The down valuations of Back Market and AgroStar, to reflect weakness in the market comparables for these companies, and specific factors related to supply chains, and other factors for these companies.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

This slide then just puts that in an overlay in terms of how that has impacted the net asset value of the fund over the period. Life sciences contributed positively given those two trade sales. The growth holdings were a moderate detractor. The venture holdings were broadly flat over the period. There was a small negative contribution from public equities, and specifically the remaining public equity holding, Autolus, which I'll cover in a bit more detail. That resulted in a closing net asset value of $143.1 million as of the period end. This slide gives us a snapshot of the top 20 holdings of the portfolio as of the period end. A few things that I'll draw out specifically on this slide.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

Firstly, the increase in the value of Revolut now places this as very closely the second holding in the fund, closer to the largest holding, Atom Bank. The cash and equivalents, as I mentioned, is increased to $34.3 million, which represents 24% of the NAV. Finally, with the sale of part of the public equity position, the amount in public equities has declined further to 1% and after the period end has gone to nil in the portfolio overall. Broadly, the rest of the portfolio continues to be around similar metrics as to reported in the previous webinar in December. The next slide then just goes in very specifically on the performance of the new investments completed since Schroders Capital started making new investments from the fund in 2021.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

This portfolio is currently marked at 1.3x the value of the investments that we have made, with 50% of that value already returned in realizations. The encouraging thing and the encouraging part of the overall track record on the Schroders Capital side is particularly the life science holdings, which have been very, very strong. We have had the further exits of Memo Therapeutics and Neurona, which I will go into in more detail on subsequent pages. The next slide just then gives an overview of very specifically the life science holdings. As mentioned, the sale of Neurona and the sale of Memo Therapeutics, both companies that achieved a post proof of concept clinical phase. The other thing I would like to mention on the biotech portfolio is the post-balance sheet event that we are announcing in the holding that we have in Kymab.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

Kymab, as shareholders may remember, was acquired by Sanofi several years ago, and we retained some value in the holding attributed to the milestone payments that were potentially to be received as part of that previous exit. Sanofi has now announced that they have discontinued that program and therefore no further value is expected from the previous exit of Kymab. Firstly on the exit of Memo Therapeutics. This is a company developing antibody therapeutics for virus infections and oncology. We had invested back in Q4 of 2023. The company was an exciting Swiss biotech business. We had backed their unique technology, which allows for the discovery and development of rare antibodies. The company was developing a lead therapeutic, AntiBKV, an antibody designed to treat patients for infection that are going through kidney transplants, a condition that affects over 10,000 patients each year.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

We had originally backed the business as a result of its best-in-class profile and solid preclinical data, but also that it was coming at an attractive valuation, and we had believed that there was the potential for an early M&A exit. That is ultimately what has materialized here for this company. In July of this year, Ipsen agreed to acquire Memo's lead program for a share purchase amount of GBP 200 million, with the potential for additional amounts subject to regulatory and sales milestones that need to be achieved by the company through the sale of this asset. The other thing to note, very importantly on Memo, is that the asset has been acquired specifically, but actually, Memo's remaining assets and employees have been transferred to a new company that will be retained by existing Memo shareholders, including the trust.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

Therefore, this will continue to be a holding in the portfolio despite the value that we will be realizing as a result of this transaction. At the end of Q2, the holding was marked at 2.6x the amount that we had originally invested. This could increase further to closer to 5.6x if all of the milestones play out from the exit as outlined on this page. Next on to Neurona Therapeutics. Neurona is developing breakthrough treatments for neurological disorders. This is another life science company that we backed out of the U.S. at the start of 2024. Neurona is developing cell therapies to treat long-term brain disorders such as epilepsy and Alzheimer's. These are patients that do not respond to drug treatments and often need surgery in order to treat their conditions.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

We backed the company when it was going through phase I, phase II clinical trials, as it was demonstrating first-in-class and best-in-class potential for treatment of focal epilepsy, a market with significant sales potential of over $1 billion per year. The data was very, very strong. Early clinical data demonstrated 95% reduction in monthly seizures one year after a single administration of the therapeutic that the company was developing. They had an exceptionally strong management team with a successful track record of developing therapeutics in this area. Therefore, we were delighted in June of this year that UCB completed its acquisition of Neurona for $650 million upfront, with the potential for subsequent milestones to come thereafter.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

At the end of the period, the holding was valued at 1.5x the amount that we had originally invested, with the potential to go to 2.4x if all of those milestones come to fruition. Next on to Autolus Therapeutics, the last remaining public holding in the fund. This is a commercial-stage biopharma company based in the U.K. that is developing T-cell therapies for cancer and autoimmune diseases that is listed in the U.S. This is a holding that has been a long-term constituent of the fund. The key development here is that following new data that came to light, we updated our assessment of the risk-reward of value creation from this holding, and we decided to fully exit the position over Q2 and Q3, realizing proceeds of GBP 2 million over those two quarters.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

With the full amount of the proceeds from that sale being applied to increase the tender offer amount, as mentioned earlier. Finally, on to Revolut. Now the second-largest holding in the fund. The company announced their annual report and accounts for 2025 earlier this year, outlining the exceptional continued momentum of the company. Their number of retail customers increased by 30% to 68 million. Their revenue increased to GBP 4.5 million, and their profit before tax increased to GBP 1.7 billion. The company has continued to gain traction in various different areas, including several awards, increased operational expansion, and increasing regulatory approvals. Most recently, the conditional approval that they received in the U.S. just last week. This is a company that is continuing to execute exceptionally strongly, and we have very high hopes for this company going into the future. Finally, on to outlook.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

The first slide just gives a very quick overview of the capital return to shareholders. Of the GBP 34 million that we held at the end of the interim period, at the end of June, we plan to return GBP 28 million through the tender offer, with a small amount then held for reserves for investments and expenses. Just to mention here that the board anticipates that further capital distributions will be made by tender offers or by other capital distribution mechanisms. Proceeds from subsequent exits from the portfolio will be held as cash, pending further distributions to shareholders. Finally, on outlook, we are making good progress in executing the managed wind down strategy. The focus remains on timely return of capital to shareholders while maximizing value from the portfolio.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

But this is a challenging process to manage given that a number of the investments that we hold in the fund are through minority equity investments. Therefore, we don't have direct control over when to exit these holdings. A number of these exits need to be achieved through a combination of trade sales and IPOs, which need to be driven by the underlying portfolio companies, and this process can take some time. As a result of this, based on market conditions today and the portfolio as we view it, we do not expect to see material realizations from the portfolio before 2028. Finally, I'd just like to thank shareholders and investors for joining this webinar, and for your continued engagement on the fund. If you do have any questions about the progress of the fund, please do reach out to us.

[Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust]

If you also have any feedback on this webinar, we'd very much appreciate it. Thank you.

Participants

Analysts

• Harry Raikes, Co-Portfolio Manager at Schroders Capital Global Innovation Trust