RIGHTS AND ISSUES INVESTMENT TRUST PLC

Legal Entity Identifier (LEI): 2138002AWAM93Z6BP574

Half Yearly Results for the six months ended 30th June 2025

A copy of the Company's Half Yearly Financial Report for the six months ended 30th June 2025 will shortly be available to view and download from www.jupiteram.com/rightsandissues.  Neither the contents of that website nor the contents of any website accessible from hyperlinks on this website (or any other website) is incorporated into or forms part of this announcement.

Printed copies of the Report will be made available to shareholders shortly. Additional copies may be obtained from the Corporate Secretary - Apex Fund Administration Services (UK) Limited, Hamilton Centre, Rodney Way, Chelmsford, Essex CM1 3BY.

INTERIM DIVIDEND

An interim dividend of 12.25p per share has been approved by the Board and is payable on 26th September 2025 to shareholders on the register as at 29th August 2025 (ex-dividend 28th August 2025).

The following text is copied from the Half Yearly Financial Report.

HALF YEARLY FINANCIAL REPORT

for the six months ended 30th June 2025

Financial Highlights

Financial Highlights for the six months to 30th June 2025

Capital Performance

†   Source: Jupiter, Morningstar

†† Source: Trustnet

Chairman's Statement

I am pleased to present the Chairman's Statement for Rights and Issues Investment Trust for the six months ended 30 June 2025. Despite continued global economic uncertainty your Company has delivered a sound performance. In the period we saw inflation and interest rates remain steady and sentiment towards the small cap market continue to improve, albeit modestly. These global economic factors as well as competitive pressures will, as ever, challenge the management teams of our portfolio companies. The Company's performance is largely driven by the concentration of its portfolio and its active management over the long term. Our Investment Manager continues to monitor our portfolio companies' ability to maintain their margins and market share.

Net Asset Value & Share Price Returns

The Company's portfolio of investments delivered a positive capital return of 2.9% and a total return of 4.3% for the period. This is behind that of our chosen benchmark, the FTSE All-Share Index, which delivered a capital return of 6.8% and 9.1% on a total return basis, and the Deutsche Numis Smaller Companies Index which returned 7.0%. The Company's performance is commented on in more detail in the Investment Manager's report.

Your Company's shares performed less well, delivering a negative return of (6.7%) (including dividends paid). During the period there was a significant widening of the discount between the share price and Net Asset Value. A major factor in this was the Company's inability to buy back shares following the narrow defeat of the share buyback authority resolution at the Company's Annual General Meeting in late March and again at the subsequent General Meeting in early May.

Portfolio Activity

The investment portfolio was little changed over the period, with just one new holding added towards the end of the half year:

JTC is a leading global administrator of institutional and private investment funds. Led by founder Nigel Le Quesne and employing a 'shared ownership' model, JTC has an excellent track record of both organic and inorganic growth. The business is now one of the world's largest independent fund administrators which means that it is ideally placed to benefit from the trend away from bank-owned competition, as well as to realise economies of scale. Broader market weakness has created what the Investment Manager views as a compelling valuation entry point and the opportunity to own a high-quality business at an attractive price.

Further details on the investment portfolio, stock selection and performance can be found in the Investment Manager's review.

Discount Control

The Company's authority to extend what had been a routine business practice of share buybacks going back many years lapsed at the Annual General Meeting ('AGM') in March. The Board sought to renew the authority again at a subsequent general meeting in early May 2025, without success. The Board was very disappointed that these resolutions were defeated by the narrowest of margins. The resolution required in excess of 75% of the votes cast to be in favour. At the May general meeting 60% of eligible shares were voted: 73.84% of the votes were cast in favour and 26.16% against by, predominantly, a single shareholder (and related interests), a result that indicates that a very significant majority of shareholders would like to see the programme continue.

Your Board strongly believes that the share buyback programme is in the best interests of the Company and its shareholders. The buyback serves to narrow the discount to Net Asset Value and reduce share price volatility. These buybacks at the margin provide a useful mechanism for those shareholders wanting to realise their investment whilst also providing an economic benefit to remaining shareholders. The Board is consulting with its advisers with the objective of finding an appropriate path to renew the authority and restart the programme.

Dividends

The Directors are very aware of the importance of income to our shareholders and therefore the Company will be paying an interim dividend of 12.25p (2024:12.0p) per share, an increase of 2.1% over the corresponding dividend in the prior year. The dividend will be paid on 26th September 2025 to shareholders on the register at 29th August 2025.

Shareholder Engagement

Over the first half of the year your Board and the Company's advisors maintained a regular dialogue with major shareholders, in addition to meeting a number of them at our AGM and general meeting. The feedback we received was consistent with previous years. Notably, the small size of the Board was greatly appreciated, as was the continued involvement of Simon Knott.

Forthcoming Directorate Changes

As you may recall, Jonathan Roper has informed the Company of his intention to step down from the Board at the next AGM. In light of this the Board will be reviewing its composition and that of its committees with a view to finding a suitable replacement by the end of the year. Jonathan has served on the board for fourteen years and provided much thoughtful and valued support and advice.

Marketing

Our partnership with Jupiter continues to work well and we have seen a good level of marketing activity with the purpose of raising awareness of the Company to a wider audience. This proactive approach aims to enhance visibility and attract potential investors. Over the course of the period events were held that included wealth managers, professional fund managers and private individuals via a range of traditional in-person activities, as well as digital content and video tools, which you will be able to find on our Investment Manager's website: www.jupiteram.com/rightsandissues.

Outlook

After another period of significant volatility, it feels like markets have found their feet again over recent weeks and seem to have become less susceptible to reacting to every announcement coming out of Washington. While we remain alert to the potential negative consequences of US trade policy, we note that a degree of pragmatism seems to be emerging and therefore the risks of a significant global slow-down have moderated somewhat.

In the UK we recognise that many economic challenges remain and that the government's room for manoeuvre continues to be limited despite its large majority in parliament. The bigger picture, however, is that inflation has remained under control and interest rates have stabilised at a level which we view as compatible with improved confidence and hence a recovery in growth. Meanwhile, the government has wisely abandoned its policy of deliberately talking the UK down in order to lower expectations.

Whilst we are aware of these and other factors, we will continue to encourage our Investment Manager to seek out opportunities to invest in differentiated companies operated by good management that they believe to be fundamentally under-priced. There may also now be stronger macroeconomic forces that could result in a fundamental reassessment of the pricing of the UK's smaller companies' sector. Our commitment to rigorous risk management and disciplined investment practices remains steadfast. The Board believes that our managers at Jupiter have the skills and knowledge to identify these opportunities and continue to be well placed to deliver value for your Company into the future.

Thank you for your continued support and confidence in Rights and Issues Investment Trust.

Andrew Hosty

Chairman

6th August 2025

You can view or download copies of the Half Yearly and the Annual Reports from the Company's website at www.jupiteram.com/rightsandissues

The Half Yearly Report will also be made available to shareholders and copies are available at the registered office of the Company on request.

Investment Manager's Review

Introduction

We are pleased to present our investment report for the first half of 2025 to shareholders of the Company. Overall, the Company's portfolio of investments delivered a positive total return for the period. The Company's shares fared less well as the discount to net asset value widened significantly. Portfolio activity has been limited in volatile market conditions, but one new holding was added towards the end of the half year.

Market backdrop

The UK equity market performed well over the period as a whole, with the FTSE All-Share Index Total Return Index1 ("FTAS") returning 9.1% and the Deutsche Numis Smaller Companies Index1 ("DNSCI") 7.0%. This overall performance belied significant volatility at times, especially around the introduction of Donald Trump's so-called 'Liberation Day' tariffs in early April. By contrast, equity markets remained remarkably sanguine about the outbreak of direct hostilities between Israel and Iran in June. Notwithstanding a short-lived spike in the oil price, this turned out to be the appropriate reaction as the US effectively enforced a ceasefire shortly afterwards.

Despite these threats to global trade, inflation has remained relatively benign and in line with market expectations. As a result, both policy and market interest rates have continued to moderate. The UK ten-year gilt yield finished the half modestly below where it started, with the two-year rate falling more significantly. The Bank of England delivered two base rate cuts as widely anticipated.

While UK consumer and business confidence remain subdued, there have been some signs of improving sentiment, particularly in the retail and hospitality sectors. After spending the first six months of the new parliament determinedly talking expectations down, the UK government has perhaps realised that this was in danger of becoming a self-fulfilling prophecy and therefore struck a more positive tone through the first part of this year. Clearly the public finances remain challenging, but given the UK's relatively strong position in the current global environment, hopefully a more optimistic mindset will translate into activity and growth.

Performance

The Company's investment portfolio delivered a total return2 of 4.3% for the period. While positive in absolute terms, this was behind both the FTAS, which returned 9.1%, and the DNSCI which returned 7.0%, and which is more representative of the portfolio's small and mid-cap investment universe. Given a widening of the discount between share price and NAV, the Company's shares performed significantly less well, delivering a negative return of (6.7%) (including dividends).

Given the highly concentrated nature of the portfolio, relative performance is principally a function of stock selection as opposed to sector or factor weights. The following individual investments were among the most significant contributors to performance.

Renold (+71%)

Manufacturer of industrial chains and transmissions Renold continued to deliver a strong operating performance through the period. More significantly for the share price, the company received two potential takeover offers in May, one of which became a recommended bid in June. This represents a satisfactory conclusion to what has been an excellent investment for the Company over recent years, although it also serves to highlight how lowly UK valuations are resulting in the loss of good businesses from our market.

Alpha (+37%)

Specialist FX and banking group Alpha also received an indicative takeover approach on the back of strong operational performance during the period. At the time of writing this has not yet become a formal offer and we remain open minded about valuation and whether we would support a takeover at this stage.

OSB (+36%)

Specialist buy-to-let mortgage lender OSB produced a strong performance over the first six months of the year as it delivered something of a strategic reset that drew a line under certain challenges that have affected the share price over recent years. This allowed the market to focus on OSB's highly attractive valuation and begin to take a more positive view of the investment case.

Treatt (-46%)

Flavours and fragrances business Treatt was the most significant detractor from performance over the period. Despite solid strategic progress under a new CEO, the business suffered from weak demand in the US and the impact of high citrus prices driving their customers to alternative flavourings. While we view these as temporary effects, we recognise that it will now take time for Treatt to reestablish credibility with the market.

Gamma Communications (-25%)

Business telecommunications group Gamma was also a significant detractor in the period. The company made a strategically important acquisition early in the year in Germany, with the aim of increasing the scale of their operations in a market that they see as key to growth in the future. Initial indications are that this has been well timed as activity there has picked up and largely offset softer conditions in the UK. Gamma also moved its listing from AIM to the UK main market during the period, which may have been somewhat disruptive to the shares. We continue to see good growth prospects for the company.

Portfolio changes

The portfolio was little changed over the period, with just one new holding added towards the end of the half year:

JTC is a leading global administrator of institutional and private investment funds. Led by founder Nigel Le Quesne and employing a 'shared ownership' model, JTC has an excellent track record of both organic and inorganic growth. The business is now one of the world's largest independent fund administrators which means that it is ideally placed to benefit from the trend away from bank-owned competition, as well as to realise economies of scale. Broader market weakness has created what we view as a compelling valuation entry point and the chance to own a high- quality business at an attractive price.

Summary and Outlook

Despite lagging the Company's benchmark, it is pleasing that the investment portfolio delivered a positive absolute return for the period. While the share price performance has been substantially weaker, we are focused on delivering investment returns as we believe that this will create the most value for shareholders over time.

After another period of significant volatility it feels like markets have found their feet again over recent weeks and are perhaps now less susceptible to every announcement coming out of Washington. While we remain alert to the potential negative consequences of US trade policy, we note that a degree of pragmatism seems to be emerging and therefore the risks of a significant global slow-down have moderated somewhat.

In the UK we recognise that many economic challenges remain and that the government's room for manoeuvre continues to be limited despite its apparently large majority in parliament. The bigger picture, however, is that inflation has remained under control and interest rates have stabilised at a level which we view as compatible with improved confidence and hence a recovery in growth. Meanwhile, the government has wisely abandoned its policy of deliberately talking the UK down in order to lower expectations.

In any kind of UK recovery, we think that equity valuations look compelling and will continue to attract investor interest, even if that comes in the form of takeover approaches as has been the case recently. We remain optimistic that public market investors will start to recognise the opportunity as well, leading to a broader re-rating of what remains a very unloved and under-owned asset class.

Matt Cable
Lead Manager
Tim Service
Investment Manager
6th August 2025

1 Both benchmarks excluding Investment Trusts

2 Increase in NAV plus dividends paid