Half Year Report to 31 October 2024

The Global Smaller Companies Trust PLC

Half Year Report for the six months ended 31 October 2024

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The Global Smaller Companies Trust PLC

Half Year Report for the six months ended 31 October 2024

Financial Highlights for the half year (un-audited)

Chairman's Review

total return(2) of 2.7% compared to the Benchmark(3) total retuof 5.7%.

shareholders(2) of 1.6%.

Throughout the first half of the financial year to 30 April 2025, market participants continued to focus on trends in economic growth, inflation and geopolitical developments. Despite a rapid rise in interest rates, major economies appeared to be on course for a 'soft landing', while welcome falls in the level of inflation allowed several major central banks to begin cutting interest rates, including the US Federal Reserve, the European Central Bank and the Bank of England. Whether inflation will continue to fall remains to be seen. Conversely, persistent inflation in Japan prompted the central bank to raise interest rates modestly from their very low levels. Geopolitical tensions and uncertainty persisted over the six-month period, with the US election attracting much attention though ending up more conclusive than predicted. The UK produced a decisive election result, however the new government's growth agenda faces significant budgetary challenges. Sadly,

the war between Russia and the Ukraine showed no signs of ending and the conflict in the Middle East spread.

Smaller company equities rallied in the six months ended 31st October 2024. North America was the strongest region (up by 8.6%) and, after a lacklustre 2 years, UK smaller companies showed signs of life, rising by 5.7% in the period. European markets were sluggish and the Asian countries within the Emerging Markets rose whilst those in Latin America showed weakness. Japan recovered after an unexpected hike in interest rates in early August led to the Japanese market suffering from

its largest single day decline since the Black Monday stock market crash in October 1987.

Our investment portfolio in overall terms was behind the Company's Benchmark (80% MSCI All Country World ex UK Small Cap Index (net)/20% Deutsche Numis UK Smaller

600

500

400

300

200

(Rebased to 100 at 31 October 2009)

See full details of the explanation in relation to the calculation of Alternative Performance Measures in the Annual Report and Financial Statements for the year ended 30 April 2024.

2|  The Global Smaller Companies Trust PLC

100

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

The Global Smaller Companies Trust share price (total return)

The Global Smaller Companies Trust NAV (debt at fair value and total return)

Benchmark (total return) *This is the blended benchmark over the period to incorporate any changes that have taken

Half Year Report for the six months ended 31 October 2024  |  3

Companies (excluding investment companies) Index). Taking the Company's long-term liabilities at fair value, the NAV per share rose to 180.8p, a 2.7% total retufor the six months, compared to a retuof 5.7% from the Benchmark.

ensuring a seamless transition of the Company's investment approach. Nish Patel was appointed as lead manager of the portfolio in May this year following Peter Ewins' retirement. Nish, a senior team member since 2007, brings deep expertise

Lead Manager's Review

Along with the Investment Company sector, the Company's discount widened, ending the period at 11.2%. The share price rose by 0.3% in the six months to 160.6p, or by 1.6% in total retuterms. The Board continued to use its buyback powers actively, and since the final quarter of the last financial year, the level of activity has been at a higher level. 26.6m shares were repurchased for treasury over the six months under review at an average discount to NAV of 9.7%, enhancing the NAV by 0.6% in the process. This compares to 30.2m shares which were repurchased in the year to 30 April 2024.

and continuity to the portfolio's management. As part of Columbia Threadneedle Investments' integration of the acquired BMO business, some adjustments were made

to the team supporting the lead manager, involving a combination of new appointments and departures. These changes are a natural part of the integration process and reflect Columbia Threadneedle Investments' commitment to strengthening resources to support the Company's long term investment objectives. Shareholders can be confident that the Company's established investment philosophy and approach remain unchanged under Nish's leadership. On behalf of the

Market background

In the US, the economy was supported by a robust services sector. A resilient labour market underpinned consumer confidence, although signs of stress did emerge within the lower income cohort and this led to some earnings disappointments from consumer facing companies. Global manufacturing has been in the doldrums for almost two years now. Encouragingly though, recent data showed signs of stabilisation in the UK and China. Germany struggled, especially its auto sector because of sluggish demand in the face of lower subsidies for electric

vehicles and increased competition from Chinese imports. Growth remained strong in India. In China, the malaise in the property sector spread to the consumer and this necessitated vast amounts of fiscal and monetary intervention by the authorities in order to lift sentiment.

Employment across most countries weakened a little but still remained healthy. With inflation coming down, central banks started to cut interest rates and bond yields fell initially, providing welcome relief to the more interest rate sensitive parts of the world

In addition, the Company continued its marketing efforts in order to attract buyers of its shares.

Dividends

Revenue returns per share rose by 9.0%, in comparison to the six months to 31 October 2023. As a consequence, the Board decided to increase the interim dividend by 2.9% to 0.70p per share. Shareholders on the register on 27 December 2024 will receive this dividend on 23 January 2025.

Investment team changes

When Columbia Threadneedle Investments acquired Bank of Montreal's EMEA asset management business (BMO GAM (EMEA)) in November 2021, the investment team responsible for managing the Company's portfolio successfully transitioned to Columbia Threadneedle Investments,

Company, we would like to express our gratitude to those team members who have moved on for their valuable contributions and wish them every success in the future.

Board Changes

Following the Annual General Meeting on

13 August 2024, Jo Dixon retired from the Board. Jo was the Chairman of the Audit and Management Engagement Committee and Senior Independent Director and following her retirement Nick Bannerman and Graham Oldroyd were appointed to these roles respectively. As part of its succession plan, and having followed a formal recruitment process, the Board was pleased to appoint Zoe King as a non-executive Director with effect from 12 December 2024.

Anja Balfour

Chairman

16 December 2024

Geographical distribution of the investment portfolio as at 31 October 2024

Lead Manager's Review (continued)

Geographical performance (total retusterling adjusted) for the half year ended 31 October 2024

Source: Columbia Threadneedle Investments

over the period versus the local smaller companies comparator indices, with all retunumbers measured in Sterling.

North America

In North America, smaller companies as measured by the MSCI North America Small Cap index (net) delivered an 8.6% retuin sterling terms. This would have been greater had it not been for the weakening of the Dollar against Sterling over the six month period. Our portfolio's 7.2% total retuwas

1.4 percentage points behind the index. From a sector perspective, positive stock selection in industrials and energy was offset by adverse stock selection in information technology and financials.

Curtiss-Wright, a producer of critical components for a range of industrial markets, saw very good growth in its defence electronics and nuclear divisions.

business, in part driven by falling interest rates. Frontdoor, a provider of home warranty plans, remained resilient in a sluggish housing market. The company raised its profitability through various pricing initiatives, generation of additional service fee income and process improvements.

On the negative side, value added technology reseller CDW endured a slowdown in spending by customers on large projects and increased price competition in the industry. Auto parts distributor LKQ Corp was challenged by lower repairable claims as insurance prices rose and used car values fell. In addition, the company's Specialty segment saw continued weakness in the recreational vehicle market. Oil and gas exploration and production company Kosmos Energy fell with the oil price. Furthermore, production guidance was lowered because of disappointing performance from one of the

economy such as housing. As the Federal Reserve grew confident that inflation was normalising it cut the US interest rate by 0.5% in September in order to maintain a healthy labour market. The pace at which interest rates were expected to change differed by region and this led to significant movements in currencies with the Japanese Yen and British Pound strengthening over the period and the Euro and US Dollar weakening.

Equity markets delivered strong returns over the six months, once again dominated by large caps, although small caps did show signs of life with strong outperformance in the month of July. Growth stocks led the market again as bond yields fell. Commodity markets were mixed with industrial metals weaker, oil volatile and gold up on the prospect of lower interest rates. The

best performing sectors were technology, communication services and utilities. The laggards were energy, materials and consumer staples.

Corporate earnings were on the whole better than sell side analyst forecasts, however this outperformance often did not result in share price appreciation, indicating high expectations from investors. Equity market valuations of smaller companies expanded over the period, but not as much as their larger counterparts. Credit spreads of corporate bonds tightened to very narrow levels, particularly for the least credit worthy borrowers.

Regional portfolio performance

The bar chart above shows how the different geographical regional portfolios performed

The Ensign Group has been held by the Company for a number of years. This operator of healthcare facilities delivered good results with momentum in occupancy, acuity and earnings. Organic revenue growth at insurance broker Brown & Brown was supported by rising insurance rates, new business wins and stable retention. A healthy investment banking backdrop, strong capital markets activity and market share gains helped to lift the shares of diversified financial services company Jefferies Financial Group. Precious metals streaming company Wheaton Precious Metals rose with the gold price and announced a deal to finance a project in the Ivory Coast. Recent addition to the portfolio Jones Lang LaSalle delivered outperformance. This provider of real estate services was helped by a retuto growth of the company's transaction services

company's assets and delays in the startup of a new project. Shares of payments processor WEX lagged because of weaker volumes and a lower fuel price in its Mobility business and the migration of a large travel customer to a new contract in its Corporate Payments segment. US Physical Therapy, an operator of outpatient physical therapy clinics, suffered from the industry wide shortage

of labour and consequently reported higher than expected costs. The ongoing inventory correction in the semiconductor industry led to disappointing results from diversified chip producer MaxLinear. Purchaser of charged off receivables PRA Group was the subject of concerns over a deceleration in supply of defaulted credit card debt.

Lead Manager's Review (continued)

Industrial classification of the investment portfolio as at 31 October 2024

that the newly elected Labour government would help spur a multi-year recovery in volumes sold at construction materials business Breedon Group and the shares were upgraded by a broker. Also in the construction industry, ground engineering specialist Keller Group benefitted from a strong North American infrastructure market and management's actions to improve the company's operational performance.

There were stock specific challenges in the portfolio with marketing company Next 15 Group reporting weaker than expected earnings because of softness in its technology and government divisions. Additionally, the company suffered from a contract loss from a large client. It was frustrating to see Ashtead Technology Holdings underperform. This rental company to the oilfield services industry delivered good results but fell because of a lower

products 4imprint Group suffered from sluggish demand from new customers.

Europe

The European smaller companies market was down slightly in the period, falling 0.9%. The retuof our portfolio was marginally better than the local index. Good stock selection in consumer discretionary and industrials was pulled down a little by unfavourable stock selection in healthcare and technology.

Information services business Karnov Group was the subject of takeover interest from private equity. Accelleron Industries is a Swiss business that specialises in the manufacture and servicing of turbochargers for customers in a wide range of sectors. In the period the company delivered strong organic revenue growth, particularly in its marine and energy businesses. Analysts lifted their earnings forecasts

UK

The UK smaller companies market generated

1. respectable retuin the six-month period, rising 5.7%. Disappointingly, the portfolio lagged the local index and fell by 4.2%. A noticeable trend in the UK stock market in the period was the underperformance of the Alternative Investment Market (AIM) with these shares as measured by the FTSE AIM All Share Index falling by 2.1% in total retuterms, mostly because of fears over the removal of inheritance tax relief on these investments. At the start of the period the UK portfolio had 24% of its assets invested in AIM quoted shares.

On the positive side, defence services company QinetiQ Group was helped by strong growth in its European business.

Encouragingly, the company also reported

good progression in orders and switched its capital allocation focus away from M&A and towards share repurchases. Online classifieds platform Baltic Classifieds Group announced solid results and the shares rerated as concerns over the company's exposure to the war in Ukraine subsided. Financial services provider Just Group has been a beneficiary of the growth of the bulk annuities sector. In the period the company continued to increase its market share in this area. Media and consultancy services company Ascential received a takeover bid from Informa at a 53% premium. The new CEO at identity verification and fraud prevention software business GB Group outlined a sensible strategy to simplify the company's structure, product offering and marketing plan. In addition, demand improved at GB Group's identity business. Optimism grew

oil price and uncertainty over the new UK government's position towards drilling in the North Sea. Investors became a little nervous that distributor of food and confectionary Kitwave Group would find it difficult to meet analysts' financial forecasts for the year given adverse weather and the company's investment in growth initiatives. Producer of electronic components TT Electronics saw end market weakness for its products and faced operational issues in its US business and this led to a profit warning. Similarly, weak demand and destocking led to a profit warning from gaming technology company Nexteq. Investment company Mercia Asset Management lagged along with the sector as it wrestled with a difficult fund-raising environment. Producer of promotional

for pharmaceutical ingredients business Siegfried as prices rose, new production came online in Spain and costs were cut.

Events and ticketing company CTS Eventim's earnings were lifted by the Paris Olympics and Paralympics. Furthermore, the company secured contracts for recently announced music tours and corporate events. Amidst an industry slowdown swimming pool equipment manufacturer Fluidra outperformed its competitors in the US and its shares rallied 26%. Engcon manufactures components for construction machinery. The company reported good order growth in Europe and expansion of its profit margin as a greater proportion of its sales came from higher value products. In recent years helmet technology company MIPS has suffered from the downtuin the bicycle market, however, earnings now seem to be recovering,

Lead Manager's Review (continued)

Currency movements relative to sterling for the half year ended 31 October 2024

Rebased to 100 at 30 April 2024

110

Currency strengthening against sterling

Source: Columbia Threadneedle Investments & Refinitiv Eikon

discretionary and unfavourable in consumer staples.

Toy and game manufacturer Tomy reported strong domestic sales growth, helped by new products and releases. The company also revealed ambitious long term financial targets. Building products specialist Sanwa Holdings announced better than expected profits in its Americas business because of a resilient pricing environment and cost cutting. Investors also anticipated an improvement in capital allocation at the company after a prominent activist fund took a stake in the business. The demand outlook for wire and cable manufacturer SWCC's products continued to strengthen because of increased investment in Japan's power infrastructure. Same-store sales growth at retailer PAL Group accelerated, particularly through the company's e-commerce channel. Investors grew optimistic about

was caught up in the negative sentiment that is currently engulfing the auto sector. In anticipation of an interest rate increase by the Bank of Japan, investors took profits in diversified property business Nomura Real Estate Holdings. Similarly, profits were taken in regional bank Nishi-NipponFinancial Holdings as market volatility and a stronger Japanese Yen reduced the likelihood of another interest rate hike in the near term. Pharmacy store operator QOL Holdings suffered from government led revisions to drug prices. Home interior products company Sangetsu was hurt by higher raw material, logistics and personnel costs.

Eastspring Investments Japan Smaller Companies Fund delivered a total retuthat was behind the benchmark because of adverse stock selection in the telecommunications sector.

helped in part by normalisation of customer inventories.

Detractors included Stabilus, the German manufacturer of gas springs, dampers and electromechanical drives. The company reduced its financial forecasts because of weakness in the automotive and commercial vehicle markets. Tecan, a Swiss laboratory automation business, suffered from sluggishness in its Chinese business and deferrals of customer orders. DavideCampari-Milano was affected by concerns over a weaker consumer market and regulatory issues in China. Schoeller- Bleckmann, the Austrian provider of drill bits to the oil and gas industry, fell with the oil price. As well as this, increased competition in the US dampened the company's profitability. Gerresheimer specialises in

drug packaging and drug delivery systems. As demand normalised after the pandemic, inventories were reduced across the company's customer base and this led to a profit warning. French industrial technology software business Lectra reported lower orders for new equipment. Sdiptech, which provides technology for public infrastructure, stumbled after reporting lower profit margins and the departure of some of its management team.

Japan

The MSCI Japan Small Cap Index was up 1.9% in the six-month period. It was very pleasing to see our internally managed portfolio deliver good performance, with this part of the Company's investments outperforming its benchmark. Stock selection was very good in information technology and consumer

the future prospects of IT services provider WingArc1st's artificial intelligence platform. Gaming and entertainment equipment manufacturer Sankyo reported strong sales and profit growth over the period with good customer retention and strong sales of newer titles that typically command higher margins. Construction products specialist Nichias revealed strong demand across its customer base and potential stabilisation in its semiconductor related business.

Detractors included diversified trading house Sojitz, which made slow progress towards its annual earnings target because of lower production volumes in its metals and minerals business. Technical factors related to an index rebalancing created pressure on the shares of flow control equipment maker Ebara. Auto component producer Niterra

Rest of World

Our fund holdings here give us exposure to smaller companies listed on Asian and Latin American markets in the main, plus certain other global emerging markets. As a whole, these markets produced a reasonable retuover the six-month period, although performance was quite widely dispersed between the different countries. India once again led the pack, closely followed by Indonesia. China showed signs of stabilising, whilst Latin America and Korea struggled.

Performance was mixed across the funds.

The Scottish Oriental Smaller Companies Trust outperformed in the period, helped by strong stock selection in India. After the period end this company's lead manager departed and was replaced by his longstanding deputy. We have been reassured

Lead Manager's Review (continued)

Geographical weightings against Benchmark as at 31 October 2024

for Donald Trump and the Republican party. Given the wide range of potential policy changes ahead, markets will be sensitive to

UK 0.0%

Europe +2.6%

Japan +1.3%

North America -2.2%

Rest of World -1.7%

the substance, severity and sequencing of the fiscal, trade and immigration policies of the incoming US administration, all of which may drive different investment outcomes.

Growth outside of the US is likely to be better in calendar year 2025 than in 2024, however, US imposed tariffs are a clear risk to this. A macro environment with moderate growth, falling inflation, monetary policy easing and potential deregulation should be supportive for risk assets in general.

Inflation has come down significantly, however, expansionary fiscal policies, tight labour markets, ongoing wars and plans

-3%-2%-1%0%1%2%3%

Source: Columbia Threadneedle Investments & MSCI

to restrict immigration and trade all have the potential to rouse inflation. This would present a dilemma to central banks. Rising fiscal deficits have been talked about

that there will be continuity in the company's investment approach and that it remains very well resourced. After a period of improving performance, Schroder ISF Global Emerging Markets Smaller Companies Fund was very slightly behind its benchmark. Utilico Emerging Markets Trust was challenged by a very weak market backdrop in Latin America, where the fund is overrepresented. In addition, this trust's discount widened in the period. Pinebridge Asia ex Japan Small Cap Fund suffered from its underweight position in India, as well as some stock selection issues in Taiwan.

Asset allocation

The pie chart on page 5 shows the exposure of the portfolio across the different markets. Over the period, our exposure to North

America increased, whilst the UK and Europe came down reflecting purchase and sale activity in the period. Asset allocation had very little effect on performance relative

to the benchmark over the six-month period, with attribution from the Company's overweight position in the UK offset by its underweight stance in North America.

Gearing

Gearing ended the six months at 4.1%, slightly down on the 4.7% at the end of April 2024, as we continue to take a cautious approach to the use of leverage for now.

Outlook

Similar to the UK, inflation proved to be a key issue in the US election. Voters opted for change and this resulted in a clear victory

for many years. With the recent rise in government bond yields despite the start of an interest rate cutting cycle we may be reaching the point where fiscal deficits do start to matter.

There are many uncertainties today, yet we have seen the valuation of equities expand and spreads on corporate bonds narrow. It looks like complacency is setting in and so we think it is right to proceed with caution but to take advantage of any opportunities that present themselves.

Nish Patel

Lead Manager

16 December 2024

The total column is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.

Unaudited Condensed Statement

of Changes in Equity

5 Dividends paid

11 Shares repurchased by the Company and held in treasury Net retuattributable to equity shareholders

Balance at 31 October 2024

Half year ended 31 October 2023 Balance at 30 April 2023

Movements during the half year ended 31 October 2023

5 Dividends paid

Shares repurchased by the Company and held in treasury Net retuattributable to equity shareholders

Balance at 31 October 2023

Year ended 30 April 2024 Balance at 30 April 2023

Movements during the year ended 30 April 2024

5 Dividends paid

Shares repurchased by the Company and held in treasury Net retuattributable to equity shareholders

Balance at 30 April 2024