**Summary**
Aberdeen Equity Income Trust plc (AEI) reported strong performance for the six months ending March 31, 2026, with a net asset value (NAV) total return of 9.9%, outperforming the FTSE All-Share Indexs 8.9% return. The share price total return was 4.7%. The companys revenue increased by 14.6% to £6.2 million, and net revenue earnings rose by 19.7% to £5.8 million. The merger with Shires Income PLC significantly boosted the companys assets, increasing the investment portfolio by £120 million and the number of shares in issue by nearly 55%. This merger also led to a more diversified portfolio and greater scale, which is expected to reduce the ongoing charges ratio for shareholders.
AEIs investment strategy focuses on an index-agnostic approach, targeting the best ideas across the market cap spectrum. The companys top sector holdings as of March 31, 2026, were Financials (36.6%), Energy (16.2%), and Industrials (9.8%). The company declared its intention to pay three interim dividends of 5.70 pence per share for the current financial year, with the second interim dividend announced on May 19, 2026, to be paid on June 26, 2026.
The companys net assets grew by 73.8% to £320.4 million, and market capitalization increased by 65.6% to £305.5 million. Net gearing stood at 9.6% at the period end, down from 11.2% in September 2025. The ongoing charges ratio is estimated to be 0.45% for the current year, benefiting from a management fee waiver related to the merger.
In terms of portfolio performance, the energy sector was the largest contributor, driven by strong operational delivery from Ithaca Energy and other holdings. Financials also performed well, with CMC Markets and Conduit delivering strong returns. The companys cautious approach to highly valued technology stocks proved beneficial, and selective purchases were made towards the end of the period.
Looking ahead, AEI remains focused on delivering an attractive dividend yield, dividend growth, and capital growth. The company is well-positioned to benefit from periods of heightened volatility and is confident in its ability to extend its track record of dividend per share growth. The merger with Shires Income has enhanced AEIs investment capabilities, allowing for a broader investment mandate and the ability to invest in overseas stocks and bonds.
| Metric | 31 March 2026 | 30 September 2025 | % Change |
|---|---|---|---|
| Financials | |||
| Total Assets (£'000) | 352,700 | 206,800 | +70.6% |
| Equity Shareholders' Funds (£'000) | 320,400 | 184,300 | +73.8% |
| Net Asset Value per Ordinary Share (pence) | 403.75 | 377.84 | +6.9% |
| Market Capitalisation (£'000) | 305,500 | 184,400 | +65.6% |
| Share Price per Ordinary Share (pence) | 385.00 | 378.00 | +1.9% |
| Revenue Return per Ordinary Share (pence) | 11.23 | 10.17 | +10.4% |
| Dividend per Ordinary Share (pence) | 11.40 | 11.40 | 0.0% |
| Debt | |||
| Net Gearing (%) | 9.6% | 11.2% | -14.3% |
| Total Borrowings (£'000) | 32,389 | 22,484 | +44.0% |
| Cash and Cash Equivalents (£'000) | 1,724 | 1,821 | -5.3% |