The Board of Capital Gearing Trust is proposing a 10-for-1 share split, subject to shareholder approval at the Annual General Meeting (“AGM”) on 8 July 2026.
As a result of the Company’s strong long-term performance, the share price has increased significantly over time and is now approximately £50 per share.
The Board therefore believes that a lower share price could make the Company’s shares more accessible to a broader range of investors and may help improve liquidity over time.
Whilst this is a reflection of the Company’s success and something the Board is proud of, the Board believes that the current share price may make it more difficult for some investors to buy shares, particularly those investing smaller amounts, monthly savers and shareholders participating in dividend reinvestment programmes.
What is a Share Split?
A share split increases the number of shares in issue whilst reducing the price of each share by the same proportion.
The proposed share split would be carried out on a 10-for-1 basis. This means that for every one ordinary share currently held, shareholders would receive ten new ordinary shares.
Importantly, a share split does not change:
- The value of a shareholder’s investment;
- A shareholder’s percentage ownership of the Company;
- The Company’s net asset value (“NAV”); or
- The Company’s investment strategy and portfolio.
What does this mean in practice?
For illustrative purposes, a share currently worth around £50 would become ten shares worth around £5 each following the share split.
Before
1 ordinary share
Share price approx.
£50
Total value
£50
After
10 ordinary shares
Share price approx.
£5
Total value
£50
The overall value of the investment would remain unchanged immediately following the share split.
This example is provided for illustrative purposes only. The actual market price of the new ordinary shares will depend on the prevailing market price of the Company’s shares immediately prior to the share split becoming effective.
Key dates
The proposed share split is subject to shareholder approval at the AGM.
8 July 2026
Shareholders vote on the proposed share split at the AGM
22 July 2026
Last day of dealings in existing ordinary shares
23 July 2026
New ordinary shares commence trading
CREST accounts credited with new ordinary shares
31 July 2026
Expected despatch of new share certificates
TThe overall value of the investment would remain unchanged immediately following the share split.
This example is provided for illustrative purposes only. The actual market price of the new ordinary shares will depend on the prevailing market price of the Company’s shares immediately prior to the share split becoming effective.
Key points for shareholders
-
The value of your investment will not change as a result of the share split.
-
Your percentage ownership of the Company will remain unchanged.
-
No action is required from shareholders.
-
Each existing share will be replaced with ten new shares.
-
If approved at the AGM, the share split will be implemented automatically.
Frequently asked questions
Why is the Board proposing a share split?The Trust’s share price has increased significantly over time as a result of strong long-term performance.
The Board believes that the current share price may present a barrier for some investors, particularly those investing smaller amounts, monthly savers and shareholders participating in dividend reinvestment programmes.
The Board therefore believes that a lower share price could make the shares more accessible to a broader range of investors and may help improve liquidity over time.
Will the value of my investment change?No.
A share split does not change the value of a shareholder’s investment. The lower share price is offset by the increased number of shares held.
Will my percentage ownership change?No.
Shareholders will continue to own exactly the same proportion of the Company after the share split as before.
Does the share split affect the Company’s NAV?No.
The Company’s assets, liabilities and NAV will be unchanged. Only the number of shares in issue and the share price per share will change.
Does the share split affect the Company’s investment strategy?No.
The share split has no impact on the Trust’s investment objective, strategy or portfolio.
Do I need to do anything?No.
If approved by shareholders at the AGM, the share split will be implemented automatically.
Shareholders holding shares through a platform or nominee account do not need to contact their provider.
Shareholders holding certificated shares will automatically receive replacement share certificates.
What happens to dividends?The dividend per share will be adjusted to reflect the increased number of shares in issue.
However, shareholders’ overall economic entitlement remains unchanged.
How will the new share price be determined?The market price of the new ordinary shares will be based on the prevailing market price of the Company’s existing ordinary shares immediately prior to the share split becoming effective.
The example provided on this page is for illustrative purposes only.
When will the share split take place?Subject to shareholder approval at the AGM on 8 July 2026, the new ordinary shares to begin trading on 23 July 2026.
Record date – when holdings are assessed – 22 July 2026 at 6pm
Effective date – when the split takes place – 23 July 2026 at 8am
Will the ticker or ISIN change?- The ISIN will change to: GB00BT66KP92
- The SEDOL will change to: BT66KP9
- The ticker will remain unchanged
Are there any tax implications?For UK tax purposes:
- A share split is treated as a reorganisation of share capital
- It does not trigger a disposal for Capital Gains Tax (CGT) purposes
- Your base cost is spread across the new shares
However, tax treatment depends on individual circumstances. You should consult your professional tax adviser if needed.
Where can I find more information?Further details are available in:
- The Company’s share split announcement – released on 4 June 2026
- The Company’s 2026 Annual Report and Financial Statements – released on 4 June 2026
You may also contact:
- Company Secretary / Investor Relations
- Your stockbroker or platform provider
Who can I contact with questions?Alison Vincent
Frostrow Capital LLP
Company Secretary
company.secretary@capitalgearingtrust.com
+44 (0) 7376 982071
Katie Forbes
Head of Investor Relations
CG Asset Management Limited
Investment Manager
IR@cgasset.com
+44 (0) 20 3906 1649
SEC Newgate UK
Financial Communications
cgam-cgt@secnewgate.co.uk
+44 (0) 20 3757 6882
Where can I find further information?Further details of the proposed share split can be found in the Annual Report and Notice of Annual General Meeting.
Shareholders are encouraged to review these documents and cast their vote at the AGM on 8 July 2026.
Further details are available in:
- The Company’s share split announcement – released on 4 June 2026
- The Company’s 2026 Annual Report and Financial Statements – released on 4 June 2026
You may also contact: - Company Secretary / Investor Relations
- Your stockbroker or platform provider
We have relied on you to hold our coats whilst we fish in riskier waters, safe in the knowledge that we can get our coats back when the markets get chilly
Excerpt from a letter sent to us by a
Capital Gearing Trust investor
Disclaimer
This webpage is provided for information purposes only and does not constitute investment advice, a recommendation or an offer to buy or sell any securities.
The information contained herein is a summary of the proposed share split and should be read alongside the Annual Report, Notice of Annual General Meeting and other shareholder communications published by the Company.
If you are unsure what action to take, you should seek advice from an appropriately qualified independent financial adviser.
Shareholders wishing to vote on the proposed share split should follow the instructions contained in the Notice of Annual General Meeting. Shareholders who hold shares through a platform, nominee account or stockbroker should contact their platform provider or intermediary directly, as voting deadlines and procedures may vary.