In the midst of this, the Church House UK Equity Growth portfolio had rather an active Summer.  We initiated a position in Coca-Cola EuroPacific Partners in early August after they had a share price pull back after their H1 results. The company manufactures and bottles its eponymous products across western Europe, Australia, Indonesia and the Pacific. The company, like most soft drinks, has resilient and stead cashflow with a disciplined capital allocation. Despite slightly pared back guidance, the company delivered solid revenue and profit growth over H1 2025, coupled with a stable dividend and buyback program. The company has grown organically at just under 6% over the past ten years and 7.5% in EPS terms and we used the recent pull back to initiate in the stock. 

The position was funded by an exit in L’Oréal, who we have held since just before Covid. The stock has performed well for us, especially in the recently tough tariff-led environment. We felt that we wanted to increase our UK exposure in the defensive consumer staples sector and after a good run cashed in for a position in CCEP. We remain holders in our Esk Global Equity Fund. 

In slightly smaller scale trading, we trimmed our top position in Diploma who have continued to outperform. We used the proceeds to top up London Stock Exchange Group and Sage, both have been hit in the past few months. LSEG had good (and in-line) results but noted slower (but still good) growth in annual subscription value. They have a large and potentially powerful data set, so will be focussed on delivering the right AI tools to harness its growth. Sage was in a similar boat with good results but a slight slowdown in annual recurring revenue. Management however stated that the business should meet it’s full year guidance. 

In tough UK and international markets we continue to seek out the highest quality businesses and invest in these when valuations come in-line. As we approach the winter and Reeve’s (last?) Autumn Budget we will be ready to pull the trigger as and when. 

The above article has been prepared for investment professionals. Any other readers should note this content does not constitute advice or a solicitation to buy, sell, or hold any investment. We strongly recommend speaking to an investment adviser before taking any action based on the information contained in this article.

Please also note the value of investments and the income you get from them may fall as well as rise, and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.