Final Results and Final Dividend

BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC
LEI: 5493003YBY59H9EJLJ16

Annual results announcement
for the year ended 31 October 2022

PERFORMANCE RECORD

	As at 31 October 2022		As at 31 October 2021		Change %
Net assets (£000)¹	40,572		43,468		-6.7
Net asset value per ordinary share (pence)	191.63		203.13		-5.7
Ordinary share price (mid-market) (pence)	171.00		191.00		-10.5
Discount to net asset value²	10.8%		6.0%
FTSE All-Share Index	7945.76		8173.30		-2.8
	==========		==========		==========
Performance (with dividends reinvested)
Net asset value per share²		-2.3%		30.4%
Ordinary share price²		-7.0%		22.2%
FTSE All-Share Index		-2.8%		35.4%
		==========		==========

	Year ended 31 October 2022	Year ended 31 October 2021	Change %
Revenue
Net profit after taxation (£'000)	1,438	1,557	-7.6
Revenue earnings per ordinary share (pence)³	6.77	7.10	-4.6
	----------------	----------------	----------------
Dividends (pence)
Interim	2.60p	2.60p	–
Final	4.70p	4.60p	2.2
Total dividends paid and payable	7.30p	7.20p	1.4
	==========	==========	==========

¹ The change in net assets reflects portfolio movements, the purchase of the Company’s own shares and dividends paid during the year.

² Alternative Performance Measures, see Glossary in the Annual Report and Financial Statements.

³ Further details are given in the Glossary in the Annual Report and Financial Statements.

CHAIRMAN’S STATEMENT

Overview
When I reported to shareholders at this time last year, the UK market had been buoyed by a successful vaccine roll-out and there was, to some extent, a degree of optimism as the shadow of COVID-19 faded away and economic activity started to return to more normal levels. However, although the risk of direct COVID-19 related disruption appeared to have dissipated, the longer-term damage to the UK economy that many had feared was evident in strained supply chains, labour shortages and the rising price of materials, freight and logistics.

As the UK economy struggled with the transition from a COVID-19 driven demand for goods over services, to a more balanced goods and services-based economy, the mismatch in demand over supply inevitably led to rising prices and in turn rising inflation. This supply chain pressure was compounded by China’s zero COVID-19 policy, which created bottle necks and was at odds with the resumption of economic activity seen around the industrialised world.

As we moved through early 2022, Russia’s invasion of Ukraine triggered an energy supply shock, resulting in soaring wholesale energy prices, as well as price spikes in agricultural commodities, pushing up the cost of many food staples and further exacerbating the supply constraint led inflationary forces seen at the start of the period. These powerful inflationary drivers ensured the rate of inflation continued to rise throughout the financial year and at the time of writing UK inflation, as measured by the Consumer Prices Index, is at 9.2%, having peaked at 11.1% in October 2022.

The Bank of England has taken action to combat rising inflation by reiterating its commitment to the 2% inflation target and through monetary policy it has implemented several interest rate hikes during the year. However, this action has not come without cost, negatively impacting growth forecasts and raising the likelihood of a more prolonged economic recession. The stock market responded by adjusting valuations downward to reflect this more challenging economic environment and the compounding effect on corporate profit margins of a weakening pound, higher input costs and rising wages. This rise in operating costs has, in many cases, been passed on to the consumer, whose spending power has been steadily eroded as the rising cost of living bites.

Notwithstanding the headwinds faced by the UK economy, our portfolio managers have approached this challenging backdrop with prudence and balance over the 12-month period, avoiding taking large sector or style bets and with limited use of gearing in the portfolio. They also increased portfolio exposure to the resources and power sectors, seeking to add to those holdings which they believe will be beneficiaries of both rising energy costs and the UK Government’s focus on the security of energy supply following the invasion of Ukraine. They have also used their ability to invest in non-UK companies, providing a degree of diversification and additional sources of income.

Our portfolio managers’ ongoing focus on high quality, cash generative companies, with strong balance sheets and experienced management teams has served the Company well during the year as the portfolio remained resilient, marginally outperforming the benchmark; notwithstanding that the Company’s NAV fell in absolute terms during the period.

Performance
During the year the Company’s Net Asset Value per share (NAV) returned -2.3%. By comparison, the Company’s benchmark, the FTSE All-Share Index, returned -2.8%. At the share price level, the Company returned –7.0% over the period as our discount widened from 6.0% at the start of the financial year to 10.8% as at 31 October 2022.

As at 30 January 2023, since the year end the Company’s NAV and share price have increased by 11.7% and 13.7%, respectively (all percentages are in Sterling with dividends reinvested).

As you will read in the Investment Manager’s Report which follows, our portfolio saw strong performance from our exposure to commodities and energy, and our financial holdings also performed well as interest rates rose. Further details of the key contributors and detractors from performance, and the portfolio managers’ views on the outlook for the forthcoming year, can be found in their report which follows below.

Revenue earnings and dividends
I am pleased to report that despite market volatility the Company’s earnings remained relatively stable, with revenue earnings per share for the year ended 31 October 2022 of 6.77 pence compared with 7.10 pence for the previous year. The Directors are mindful of shareholders’ desire for income in addition to capital growth and believe the Company’s dividend is of great value in the current environment as inflation soars to a 40 year high and a challenging global economic backdrop erodes the value of the pound. We are therefore proposing a final dividend per share of 4.70 pence (2021: 4.60 pence) giving total dividends for the year of 7.30 pence per share.

Subject to approval at the Annual General Meeting, the final dividend will be paid on 15 March 2023 to shareholders on the Company’s register at the close of business on 10 February 2023 (ex-dividend date is 9 February 2023). This final dividend, combined with an interim dividend of 2.60 pence per share (2021: 2.60 pence) paid to shareholders on 1 September 2022, gives a total dividend for the year of 7.30 pence, resulting in a yield of 4.3% based on a share price of 171.00 pence as at 31 October 2022.

One of the benefits of the Company’s investment trust structure is that it can retain up to 15% of total revenue each year to build up reserves which may be carried forward and used to pay dividends during leaner times. As at the date of this report the Company held £2,294,000 in revenue reserves.

Policy on share price discount
The Directors recognise the importance to investors that the Company’s share price should not trade at a significant discount to NAV, and therefore, in normal market conditions, may use the Company’s share buy back, sale of shares from treasury and share issuance powers to seek to ensure that the share price does not differ excessively from the underlying NAV. The existing authority to buy back up to 14.99% of the Company’s issued share capital (excluding treasury shares) will expire at the conclusion of the 2023 Annual General Meeting and a resolution will be put to shareholders to renew the authority at that meeting. Currently, ordinary shares representing up to 33% of the Company’s issued ordinary share capital can be allotted as new ordinary shares or sold from treasury.

During the year, a total of 226,928 ordinary shares were purchased at an average price of 181.50 pence per share, for a total consideration (including costs) of £416,000. All ordinary shares bought back were cancelled. No shares were placed in treasury. The average discount for the year to 31 October 2022 was 7.8% and the discount at the year end was 10.8% which resulted in a share price return of -7.0% over the financial year. To put this in context, average discounts for investment trusts as a sector widened during the year to 13.3% as at 31 December 2022, compared with just 2.5% at the end of 2021. As at 30 January 2023, the sector discount was 9.2%.

Gearing
One of the advantages of the investment trust structure is that the Company can use gearing with the objective of increasing portfolio returns. The Company operates a flexible gearing policy which depends on prevailing market conditions and is subject to a maximum level of 20% of net assets at the time of investment. Net gearing during the financial year did not exceed the level. As at 31 October 2022 it stood at 2.4%.

At the year end, the Company had in place a borrowing facility of up to £4 million, provided by ING Luxembourg S.A. This facility expired in December 2022 and the borrowings were repaid to the lender. Following consultation with the Manager, the Board sought a new borrowing facility that was aligned with the Company’s gearing limit of 20% of net assets. On 23 December 2022, the Company arranged a replacement borrowing facility provided by The Bank of New York Mellon (International) Limited. This new facility has a higher borrowing limit of £8 million and as at the date of this report it is drawn down by £4 million.

Board composition
At the date of this report the Board consists of four independent non-executive Directors, with two of the current Directors having been appointed since 2019. In accordance with best practice and good corporate governance, the Directors continue to submit themselves for annual re-election. The Board has a succession plan in place and will continue to appraise regularly its composition to ensure that a suitable balance of skills, knowledge, experience, independence and diversity is achieved to enable the Board to discharge its duties effectively. Further information on the Board’s policy on director tenure and succession planning can be found in the Directors’ Report in the Annual Report and Financial Statements.

Corporate governance
The UK Code of Corporate Governance (the UK Code) requires enhanced disclosure setting out how we, as Directors, have fulfilled our duties in taking into account the wider interests of stakeholders in promoting the success of the Company. The Board takes its governance responsibilities very seriously and follows the provisions of the UK Code as closely as possible.

The Association of Investment Companies (AIC) has also published updates to its Code of Corporate Governance (the 2019 AIC Code) which were endorsed by the Financial Reporting Council (FRC) as being appropriate for investment companies and fulfils the requirements of the UK Corporate Governance Code, as they are applicable to investment companies. The Board has fully adopted the recommendations of the 2019 AIC Code.

Environmental, Social and Governance (ESG) considerations
Material ESG issues can present both opportunities and risks to long-term investment performance. While the Company does not have a sustainable investment objective or exclude investments based only on ESG criteria, these ethical and sustainability issues are a consideration of the Company, and your Board is committed to a diligent oversight of the activities of our Investment Manager in these areas.

We believe that the companies in which the portfolio is invested should operate within a healthy ecosystem of all their stakeholders whether these are shareholders, employees, customers, regulators or suppliers and that this can aid the sustainability of long-term returns. We have also provided information on our Manager's approach to investment stewardship and voting. Further information can be found in the Annual Report and Financial Statements.

Continuation vote
The Company has an arrangement in place whereby at the Annual General Meeting (AGM) held in 2018 and at every fifth AGM of the Company convened thereafter, shareholders shall be asked to approve the continuation of the Company as an investment trust. Therefore, an ordinary resolution will be put to shareholders at the forthcoming AGM to be held at 12.00 noon on Tuesday, 7 March 2023. The Board has considered the Company’s performance, investment strategy and objective and the ongoing viability of the Company over the next five years. The Board believes that the Company’s offering remains compelling, providing shareholders with growth in both capital and income over the longer term. The Board therefore unanimously recommends that shareholders vote in favour of the continuation of the Company in its current form.

Annual general meeting
It is the Board’s intention that this year’s AGM will be held on Tuesday, 7 March 2023 at 12.00 noon at the offices of BlackRock at 12 Throgmorton Avenue, London, EC2N 2DL. Details of the business of the meeting are set out in the Notice of Annual General Meeting in the Annual Report and Financial Statements.

At present, UK Government restrictions on public gatherings are no longer in force in connection with COVID-19 and therefore we intend to hold the AGM in the normal way with physical attendance by shareholders. However, although unlikely, shareholders should be aware that it is possible that such restrictions could be reimposed if required prior to the date of the AGM and therefore we recommend that as well as physical attendance, shareholders also cast their votes by proxy to ensure that their votes are counted.

Shareholders who intend to attend the AGM should ensure that they have read the venue requirements for entry to the AGM. These requirements, along with further information on the business of this year’s AGM, can be found in the Directors’ Report in the Annual Report and Financial Statements.

The Board very much looks forward to meeting shareholders and answering any questions you may have on the day. We hope you can attend this year’s AGM.

Communication with shareholders
We appreciate how important access to regular information is to our shareholders. To supplement our Company website, we now offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the Company and other news, views and insights. Further information on how to sign up is included on the inside front cover of the Annual Report and Financial Statements.

Outlook
As you will read in their report which follows below, your investment managers’ fundamental strategy has not changed, although they remain cautious, not least given the ongoing impact of the war in Ukraine. The UK market has been subject to sustained political and economic uncertainty this year, with rapid changes in last government's policy and the ill advised "mini-budget" negatively impacting confidence among both companies and investors. However, in a world currently dominated by macroeconomic and geopolitical factors, our portfolio managers remain focused on bottom-up stock selection, assembling a portfolio of individual companies which they believe are well placed to prosper over time.

Your Board remains fully supportive of this approach and have every confidence in the ability of our Investment Managers to continue to deliver on the Company’s investment objective as we move into 2023 and beyond.

Graeme Proudfoot
Chairman
1 February 2023

INVESTMENT MANAGER’S REPORT

Performance
For the 12 months since 31 October 2021, the Company’s NAV returned -2.3%, outperforming its benchmark, whereas the FTSE All-Share Index (the Benchmark Index) returned -2.8% over the same period (all percentages are in Sterling with dividends reinvested).

Market review
The year ended 31 October 2022 marked a tumultuous time in markets with building inflationary pressures that were exacerbated by the war in Ukraine, leading to rising interest rates and heightened recessionary concerns.

Strong demand combined with supply chain constraints continued to drive inflation higher at the start of the period. Interest rate expectations rose to reflect this increasingly inflationary backdrop causing the discount rate used by financial markets to rise and the valuation of financial assets to fall. This also impacted the shape of the market as the valuation of long duration assets was hit hardest, as evidenced by the underperformance of growth shares within equity markets. Global stock markets weakened further on the announcement of Russia’s invasion of Ukraine in February 2022. The war exacerbated inflationary concerns as supply chains were disrupted once more, with the price of key commodities across energy and agriculture markets rising sharply while energy supply and security became a key focus. Geopolitical tensions have remained at the fore throughout the period, as highlighted by the interruptions to Europe’s energy supply due to the suspension of the Nord Stream gas pipeline. Recessionary fears have been stoked by persistent high inflation pressuring consumers, while the rhetoric from central banks remains hawkish driving interest rate expectations higher.

Whilst COVID-19 faded in relative importance, it continued to have impacts, notably with China’s ongoing zero-COVID-19 policy, compounding the global inventory problems and causing continued supply chain constraints.

The period ended with the UK Government’s “mini-budget” announcement leading to market turmoil. The scale of the announced tax cuts and the lack of independent oversight from the Office of Budget Responsibility triggered a sell-off in gilts which quickly spiralled as Liability Driven Investment pension schemes became forced sellers and only stabilised once the Bank of England intervened. The outlook for the UK economy remains challenged, although it has stabilised following the latest change in leadership.

Although the FTSE All-Share Index fell in absolute terms, the UK market provided some relative respite compared to other global markets, benefitting in part from its low starting valuation. Market performance was dominated by the strength in commodities prices; Mining and Oil & Gas markedly outperformed as the oil price surged and defensive sectors, such as Tobacco and Pharmaceuticals, also benefitted from the increase in economic uncertainty. In contrast, cyclical sectors, notably Industrials, and domestically exposed sectors, such as Construction and Retailers, fell sharply contributing to weakness in mid and small-cap indices.

Contributors to and detractors from performance
During the period, the Company’s performance fell in absolute terms as rising interest rates and the implications of the “mini-budget” announcement weighed on performance, however, the portfolio outperformed in relative terms. International shares performed relatively better and contributed to relative performance of the portfolio while domestic holdings including BTGroup, Taylor Wimpey and Moonpig Group performed poorly and detracted. Mining holdings Rio Tinto and BHP were top positive contributors to the returns of the Company reflecting the strength in commodity markets.

Pearson was a top positive contributor during the period despite rejecting a bid from private equity. The company has consistently posted strong results and was the strongest performing company in the index over the period. The education company is shifting emphasis away from the legacy textbook business to the stable growth, highly cash generative core, where we see material value.

Whilst the underweight positioning in the Oil & Gas sector detracted from performance given strength in the oil price, other holdings exposed to the energy sector including Drax and Chart Industries, a US-listed supplier of equipment to the clean energy sector performed well and contributed to relative performance. Whilst these had been relatively recent purchases for the Company, both have been subsequently sold following significant outperformance having risen c. 40% in absolute terms during the year.

US-listed Mastercard reported solid results with strong payment volumes and an encouraging acceleration in cross-border volume linked to increased travel as COVID-19 restrictions fade. EuroAPI, a pharmaceutical ingredients producer, was another top positive contributor to relative performance during the period. This was added to the portfolio after its spin-off from French pharmaceutical company, Sanofi. The company announced very strong numbers in September for its first statement as a public company where revenue beat expectations by 5% and EBITDA by 10%.

Heightened recession concerns impacted the portfolio with the potential for consumer weakness, housing price falls and rising unemployment leading to weakness in several holdings, such as MoonpigGroup, Hays, Taylor Wimpey and Grafton Group. Whilst cyclical exposure in the Company was moderated, we continue to own positions in these areas given the attractive valuations on offer. We are also reassured by strong balance sheets and cash generation and where we see the opportunity for companies to improve market positions through the downturn.

Elsewhere the holding in Integrafin negatively impacted performance. Although the technology platform for independent financial advisers reported strong results, we were disappointed to see a meaningful cost increase causing us to question the operational strength of the company. We have sold the position.

Transactions
We approached portfolio construction with caution and balance over the 12-month period, avoiding large sector or style bets and with limited use of gearing, given the difficult circumstances and many moving parts that investors faced.

Having added to holdings in the resources and energy sectors prior to the period, we continued to add to holdings that are beneficiaries of both rising energy costs and of the focus on the security of energy supply; purchasing Centrica and WoodsideEnergy Group and adding to BP Group and Shell. We also reduced Financials exposure in the portfolio, including the sale of Legal & General, given challenges in the financial system in the UK.

Ferguson’s strong logistics enabled the company to thrive during the period of robust demand and disrupted supply chains, while high commodity prices boosted revenues and margins. The strong share price combined with our concern over the sustainability of this performance prompted us to sell the holding. We used some of the proceeds of the Ferguson sale to purchase a new holding in Ashtead Group, the US-focused equipment rental company offering attractive structural growth from continued outsourcing trends in this fragmented industry.

We purchased a new holding in BTGroup which is building out the UK’s national fibre network, targeting more than 25 million homes, providing customers and businesses with access to high-speed internet.

We purchased Sanofi in the first half of 2021, encouraged by the progress of the operational turnaround at the company which was focused on improving efficiency while benefitting from the growing and underappreciated success of its blockbuster, Dupixent, while its consumer health division offered optionality. More recently, we grew concerned on litigation around the recalled drug Zantac and we subsequently sold the holding in August 2022.

Towards the end of the period, we purchased a small position in Kone, the Finnish elevator engineering company. The company trades at a significant discount to peers, primarily due to concerns over its exposure to China yet has a strong service division, is highly cash generative supporting a compelling dividend.

Gearing
Historically, we have managed the Company’s portfolio with a modest and consistent level of gearing, typically between 5-8% to enhance income generation and capital growth. However, as market volatility has picked up, we have been more active over the last 2 years, varying both the level of gearing and using a broader range (0-10%) depending on the opportunities or risks presenting themselves at the time. At 31 October 2022, the Company had employed net gearing of 2.4%.

Outlook
As we look ahead into 2023, the headwinds facing global equity markets are evident. Inflation has consistently surprised in its depth and breadth, driven by the resilient demand, COVID-19 supply chain constraints, and most importantly by rising wages in more recent data. Central banks across the developed world continue to unwind ten years of excess liquidity by tightening monetary policy desperate to prevent the entrenchment of higher inflation expectations. Meanwhile, the risk of policy error from central banks or politicians remains high as evidenced by the turmoil created by the “mini-budget” in the UK that sent gilts spiralling. The cost and availability of credit has changed and strengthens our belief in investing in companies with robust balance sheets capable of funding their own growth. The rise in the risk-free or discount rate also challenges valuation frameworks especially for long duration, high growth or highly valued businesses. We are mindful of this and feel it is incredibly important to focus on companies with strong, competitive positions, at attractive valuations that can deliver in this environment.

The political and economic impact of the war in Ukraine has been significant in uniting Europe and its allies, whilst exacerbating the demand/supply imbalance in the oil and soft commodity markets. We are conscious of the impact this has on the cost of energy, and we continue to expect divergent regional monetary approaches with the US being somewhat more insulated from the impact of the conflict, than for example, Europe. Complicating this further is the impact COVID-19 has had on certain parts of the world, notably China, which has used lockdowns to control the spread of the virus impacting economic activity. More recently, China’s reopening in January 2023 has been well received by markets, with the return of the world's second largest economy bolstering the global outlook. However, the rapid reversal of the lockdown policy has seen infections rates surge to levels not seen since the height of the pandemic. We also see the potential for longer-term inflationary pressure from decarbonisation and deglobalisation, the latter as geopolitical tensions rise more broadly across the world.

We would expect broader demand weakness as we enter 2023 although the ‘scars’ of supply chain disruption are likely to support parts of industrial capex demand as companies seek to enhance the resilience of their supply chains. A notable feature of our conversations with a wide range of corporates has been the ease with which they have been able to pass on cost increases and protect or even expand margins during 2022 as evidenced by US corporate margins reaching 70-year highs. We believe that as demand weakens and as the transitory inflationary pressures start to fade during 2023 (e.g. commodity prices, supply chain disruption) then pricing conversations will become more challenging, despite pressure from wage inflation which may prove more persistent. While this does not bode well for margins in aggregate, we believe that 2023 will see greater differentiation as corporates’ pricing power will come under intense scrutiny.

The UK’s policy has somewhat diverged from the other G7 countries in fiscal policy terms as the present government attempts to create stability after the severe reaction from the “mini-budget”. The early signs of stability are welcome as financial market liquidity has increased and the outlook, whilst challenged, has improved. Although the UK stock market retains a majority of internationally weighted revenues, the domestic facing companies have continued to be impacted by this backdrop, notably financials, housebuilders and property companies. The valuation of the UK market remains highly supportive as currency weakness supports international earnings, whilst domestic earners are in many cases at COVID-19 or Brexit lows in share price or valuation terms. Although we anticipate further volatility ahead as earnings estimates moderate, we know that in the course of time, risk appetites will return, and opportunities are emerging.

We continue to focus the portfolio on cash generative businesses with durable, competitive advantages with strong leadership as we believe these companies are best-placed to drive returns over the long-term. We anticipate economic and market volatility will persist in 2023 and we are excited by the opportunities this will likely create by identifying those companies using this cycle to strengthen their long-term prospects as well as attractive turnaround situations.

ADAM AVIGDORI AND DAVID GOLDMAN
BlackRock Investment Management (UK) Limited
1 February 2023

TEN LARGEST INVESTMENTS

1 = AstraZeneca (2021: 1st)
Sector: Pharmaceuticals & Biotechnology
Market value: £3,510,000
Percentage of portfolio: 8.4% (2021: 7.2%)

AstraZeneca is an Anglo-Swedish multinational pharmaceutical group with its headquarters in the UK. It is a science-led biopharmaceutical business with a portfolio of products for major disease areas including cancer, cardiovascular infection, neuroscience and respiration.

2 + Shell (2021: 3rd)
Sector: Oil & Gas Producers
Market value: £3,497,000
Percentage of portfolio: 8.4% (2021: 4.7%)

Shell is a global oil and gas group. The group operates in both Upstream and Downstream industries. Upstream is engaged in searching for and recovering crude oil and natural gas and the liquefaction and transportation of gas. Downstream is engaged in manufacturing, distribution and marketing activities for oil products and chemicals.

3 - RELX (2021: 2nd)
Sector: Media
Market value: £2,422,000
Percentage of portfolio: 5.8% (2021: 5.2%)

RELX is a global provider of professional information solutions that includes publication of scientific, medical, technical and legal journals. It also has the world’s leading exhibitions, conference and events business.

4 = Reckitt Benckiser (2021: 4th)
Sector: Household Goods & Home Construction
Market value: £1,942,000
Percentage of portfolio: 4.7% (2021: 4.5%)

Reckitt Benckiser is a global leader in consumer health, hygiene and home products. Its products are sold in many countries. The company’s strategy is to have a highly focused portfolio concentrating on its most profitable brands, which are responsible for 70% of its revenues.

5 + British American Tobacco (2021: 8th)
Sector: Tobacco
Market value: £1,854,000
Percentage of portfolio: 4.5% (2021: 3.7%)

British American Tobacco is one of the world’s leading tobacco groups, with more than 200 brands in the portfolio selling in approximately 180 markets worldwide.

6 + Rio Tinto (2021: 7th)
Sector: Mining
Market value: £1,651,000
Percentage of portfolio: 4.0% (2021: 3.7%)

Rio Tinto is a metals and mining group operating in approximately 36 countries around the world, producing iron ore, copper, diamonds, gold and uranium.

7 - Unilever (2021: 5th)
Sector: Personal Goods
Market value: £1,365,000
Percentage of portfolio: 3.3% (2021: 3.9%)

Unilever is a global supplier of food, home, and personal care products with more than 400 brands focused on health and well-being.

8 - 3i Group (2021: 6th)
Sector: Financial Services
Market value: £1,329,000
Percentage of portfolio: 3.2% (2021: 3.8%)

3i Group is a private equity and venture capital group based in London. The group invests in mid-market buyouts, growth capital and infrastructure. Sectors invested in are business and financial services, consumer, industrials, energy and health care.

9 + Pearson (2021: 32nd)
Sector: Media
Market value: £1,321,000
Percentage of portfolio: 3.2% (2021: 1.3%)

Pearson is a British multinational and provides educational materials and learning technologies. The company provides a range of education services, including educational software, and system-wide solutions. The company serves customers in the education and consumer publishing markets across North America, Europe, Asia Pacific, and other regions.

10 + Smith & Nephew (2021: 13th)
Sector: Health Care Equipment & Services
Market value: £1,187,000
Percentage of portfolio: 2.9% (2021: 2.8%)

Smith & Nephew is a multinational medical equipment manufacturing company and an international producer of advanced wound management products, arthroscopy products, trauma and clinical therapy products, and orthopaedic reconstruction products.

All percentages reflect the value of the holding as a percentage of total investments as at 31 October 2022.

Percentages in brackets represent the value of the holding as at 31 October 2021.

Together, the ten largest investments represent 48.4% of total investments (ten largest investments as at 31 October 2021: 43.5%).

DISTRIBUTION OF INVESTMENTS AS AT 31 OCTOBER 2022

Analysis of portfolio by sector

		% of investments by market value	Benchmark
1	Support Services	12.6	3.5
2	Oil & Gas Producers	10.5	12.4
3	Pharmaceuticals & Biotechnology	9.6	10.5
4	Media	9.0	3.3
5	Household Goods & Home Construction	7.4	1.0
6	Banks	6.1	7.9
7	Financial Services	6.0	3.8
8	Mining	5.7	0.3
9	Tobacco	4.5	4.4
10	Non-Life Insurance	3.7	0.9
11	Personal Goods	3.3	0.5
12	Electronic & Electrical Equipment	3.1	0.9
13	Travel & Leisure	2.9	2.9
14	General Retailers	2.9	2.8
15	Health Care Equipment & Services	2.9	0.7
16	Food Producers	2.8	0.5
17	Life Insurance	2.8	2.4
18	Fixed Line Telecommunications	1.3	1.8
19	Gas, Water & Multiutilities	1.1	3.3
20	Industrial Engineering	1.0	0.6
21	Real Estate Investment Trusts	0.8	2.6

Sources: BlackRock and Datastream.

Investment size

	Number of investments	% of investments by market value
< £1m	31	40.4
£1m to £2m	11	37.0
£2m to £3m	1	5.8
£3m to £4m	2	16.8

Source: BlackRock

List of investments as at 31 October 2022

	Market value £000	% of investments
Support Services
Rentokil Initial	1,128	2.7
Mastercard¹	997	2.4
Hays	933	2.2
RS Group	733	1.8
Ashtead Group	712	1.7
Equifax¹	442	1.1
Grafton Group	289	0.7
	---------------	---------------
	5,234	12.6
	=========	=========
Oil & Gas Producers
Shell	3,497	8.4
BP Group	540	1.3
Woodside Energy Group	330	0.8
	---------------	---------------
	4,367	10.5
	=========	=========
Pharmaceuticals & Biotechnology
AstraZeneca	3,510	8.4
EuroAPI¹	497	1.2
	---------------	---------------
	4,007	9.6
	=========	=========
Media
RELX	2,422	5.8
Pearson	1,321	3.2
	---------------	---------------
	3,743	9.0
	=========	=========
Household Goods & Home Construction
Reckitt Benckiser	1,942	4.7
Berkeley Group	760	1.8
Taylor Wimpey	368	0.9
	---------------	---------------
	3,070	7.4
	=========	=========
Banks
Standard Chartered	1,187	2.9
HSBC Holdings	682	1.6
Lloyds Banking Group	680	1.6
	---------------	---------------
	2,549	6.1
	=========	=========
Financial Services
3i Group	1,329	3.2
Ashmore Group	438	1.1
London Stock Exchange Group	394	0.9
Premier Asset Management Group	319	0.8
	---------------	---------------
	2,480	6.0
	=========	=========
Mining
Rio Tinto	1,651	4.0
BHP	700	1.7
	---------------	---------------
	2,351	5.7
	=========	=========
Tobacco
British American Tobacco	1,854	4.5
	---------------	---------------
	1,854	4.5
	=========	=========
Non-Life Insurance
Direct Line Group	944	2.3
Hiscox	588	1.4
	---------------	---------------
	1,532	3.7
	=========	=========
Personal Goods
Unilever	1,365	3.3
	---------------	---------------
	1,365	3.3
	=========	=========
Electronic & Electrical Equipment
Schneider Electric¹	705	1.7
Oxford Instruments	578	1.4
	---------------	---------------
	1,283	3.1
	=========	=========
Travel & Leisure
Whitbread	946	2.3
Fuller Smith & Turner - A Shares	270	0.6
Patisserie Holdings²	–	–
	---------------	---------------
	1,216	2.9
	=========	=========
General Retailers
Moonpig Group	438	1.1
Next	434	1.0
WH Smith	326	0.8
	---------------	---------------
	1,198	2.9
	=========	=========
Health Care Equipment & Services
Smith & Nephew	1,187	2.9
	---------------	---------------
	1,187	2.9
	=========	=========
Food Producers
Tate & Lyle	1,182	2.8
	---------------	---------------
	1,182	2.8
	=========	=========
Life Insurance
Phoenix Group	1,143	2.8
	---------------	---------------
	1,143	2.8
	=========	=========
Fixed Line Telecommunications
BT Group	557	1.3
	---------------	---------------
	557	1.3
	=========	=========
Gas, Water & Multiutilities
Centrica	477	1.1
	---------------	---------------
	477	1.1
	=========	=========
Industrial Engineering
Kone¹	441	1.0
	---------------	---------------
	441	1.0
	=========	=========
Real Estate Investment Trusts
Big Yellow Group	321	0.8
	---------------	---------------
	321	0.8
	=========	=========
Total investments	41,557	100.0
	=========	=========

¹ Non-UK listed investments.

² Company under liquidation.

All investments are in ordinary shares unless otherwise stated. The total number of investments held at 31 October 2022 was 45 (31 October 2021: 48).

As at 31 October 2022, the Company did not hold any equity interests comprising more than 3% of any company’s share capital.

STRATEGIC REPORT

The Directors present the Strategic Report of the Company for the year ended 31 October 2022.

Investment objective
The Company’s objective is to provide growth in capital and income over the long term through investment in a diversified portfolio of principally UK listed equities.

Business and management of the company
BlackRock Income and Growth Investment Trust plc is an investment trust company that has a premium listing on the London Stock Exchange. Its principal activity is portfolio investment. Investment trusts, like unit trusts and open-ended investment companies (OEICs), are pooled investment vehicles which allow exposure to a diversified range of assets through a single investment thus spreading, although not eliminating, investment risk.

Investment trusts, unlike unit trusts and OEICs, have the ability to borrow for investment purposes and to manage dividend distributions through revenue reserves. They also enjoy, unlike unit trusts and OEICs, the benefit of continuous dealing during market hours.

The Company is an Alternative Investment Fund in accordance with the Alternative Investment Fund Managers Directive (AIFMD). BlackRock Fund Managers Limited (the Manager) is the Company’s Alternative Investment Fund Manager. The management of the investment portfolio and the administration of the Company have been contractually delegated to the Manager. The Manager, operating under guidelines determined by the Board, has direct responsibility for decisions relating to the running of the Company and is accountable to the Board for the investment, financial and operating performance of the Company.

The Company delegates fund accounting services to BlackRock Investment Management (UK) Limited (BIM (UK) or the Investment Manager), which in turn sub-delegates these services to the Fund Accountant, The Bank of New York Mellon (International) Limited, and also sub-delegates registration services to the Registrar, Computershare Investor Services PLC. Other service providers include the Depositary, also performed by The Bank of New York Mellon (International) Limited. Details of the contractual terms with these service providers are set out in the Directors’ Report in the Annual Report and Financial Statements.

Business model
The Company invests in accordance with the investment objective. The Board is collectively responsible to shareholders for the long-term success of the Company and is its governing body. There is a clear division of responsibility between the Board and the Manager. Matters reserved for the Board include setting the Company’s strategy, including its investment objective and policy, setting limits on gearing, setting the dividend, capital structure, governance, and appointing and monitoring the performance of service providers, including the Manager.

The Company’s business model follows that of an externally managed investment trust, therefore the Company does not have any employees and outsources its activities to third party service providers, including the Manager which is the principal service provider.

Investment strategy and policy
The Company’s policy is that the portfolio will usually consist of approximately 30-60 securities and the Company will invest primarily in the securities of companies listed or admitted to trading in the UK. The Company may invest up to 20% of the gross asset value of the Company in the securities of companies that are not listed or admitted to trading in the UK.

The Company may hold a maximum of 10% of the issued ordinary share capital of any company. No more than 15% of the gross asset value of the Company may be invested in the securities of any one issuer, calculated at the time of any relevant investment. Cash may not exceed 10% of the net asset value of the Company. The performance of the Company is measured by reference to the FTSE All-Share Index (the Benchmark Index) on a total return basis. Non-benchmark securities (including securities that are not listed or admitted to trading in the UK) may not exceed 20% of the gross asset value of the Company. Any non-benchmark securities which are listed or admitted to trading in the UK shall be limited to 10% of the gross asset value of the Company. Each investee company that is a constituent of the Benchmark Index is subject to a lower limit of 0% and an upper limit of plus 4 percentage points of the Company’s gross asset value against such investee company’s weighting in the Index on an ongoing basis, subject to an absolute sector weighting upper limit of 20% of the Company’s net asset value at any time.

The Company may deal in derivatives, including options, futures, contracts for difference and derivatives not traded on or under the rules of a recognised or designated investment exchange for the purpose of efficient portfolio management. Derivatives and exchange traded funds may be dealt in only with the prior consent of the Board.

The Company achieves an appropriate spread of risk by investing in a diversified portfolio of securities.

No material change can be made to the investment policy without the approval of shareholders by ordinary resolution.

Investment approach and process
In assembling the Company’s portfolio, a relatively concentrated approach to investment is adopted to ensure that the fund manager’s best ideas contribute significantly to returns. We believe that it is the role of the portfolio overall to achieve a premium level of yield rather than every individual company within it. This gives increased flexibility to invest where returns are most attractive. This relatively concentrated approach results in a portfolio which differs substantially from the Benchmark Index and in any individual year, the returns will vary, sometimes significantly, from those of the Benchmark Index. Over longer periods the objective is to achieve total returns greater than the Benchmark Index.

Investment approach
The foundation of the portfolio, approximately 70% by value, is in high free cash flow companies that can sustain cash generation and pay a growing yield whilst aiming to deliver a double-digit total return. Additionally, the Investment Manager seeks to identify and invest 20% by value of the portfolio in ‘growth’ companies that have significant barriers to entry and scalable business models that enable them to grow consistently. Turnaround companies are also sought, at around 10% by value, which represent those companies that are out of favour by the market, facing temporary challenges with high yields/very low valuations, but with recovery potential. The return from this segment is expected to contribute meaningfully to returns over time.

Our approach to Environmental, Social and Governance (ESG)
BlackRock believes that sustainability risk – and climate risk in particular – now equates to investment risk, and this will drive a profound reassessment of risk and asset values as investors seek to react to the impact of climate policy changes. This in turn (in BlackRock's view) is likely to drive a significant reallocation of capital away from traditional carbon intensive industries over the next decade. BlackRock believes that carbon-intensive companies will play an integral role in unlocking the full potential of the energy transition, and to do this, they must be prepared to adapt, innovate and pivot their strategies towards a low carbon economy.

As part of BlackRock’s structured investment process, ESG risks and opportunities (including sustainability/climate risk) are considered within the portfolio management team’s fundamental analysis of companies and industries. ESG factors have been a key consideration of the BlackRock UK Equity Team’s investment process since inception and the Company’s portfolio managers work closely with BIS to assess the governance quality of companies and understand any potential issues, risks or opportunities.

As part of their approach to ESG integration, the portfolio managers use ESG information when conducting research and due diligence on new investments and again when monitoring investments in the portfolio. In particular, portfolio managers now have access to 1,200 key ESG performance indicators in Aladdin (BlackRock's proprietary trading system) from third-party data providers. BlackRock’s internal sustainability research framework scoring is also available alongside third-party ESG scores in core portfolio management tools. BlackRock’s analyst’s sector expertise and local market knowledge allows it to engage with companies through direct interaction with management teams and conducting site visits. In conjunction with the portfolio management team, BIS meets with boards of companies frequently to evaluate how they are strategically managing their longer-term issues, including those surrounding ESG and the potential impact these may have on company financials. BIS’s and the portfolio management team’s understanding of ESG issues is further supported by BlackRock’s Sustainable Investment Team (BSI). BSI look to advance ESG research and integration, active engagement and the development of sustainable investment solutions across the firm.

Further information on the Manager’s approach to ESG and Socially Responsible Investing can be found in the Strategic Report in the Annual Report and Financial Statements.

Gearing and borrowings
The appropriate use of gearing can add value and the Company may, from time to time, use borrowings to achieve this. The Board is responsible for the level of gearing in the Company and reviews the position at every meeting. Gearing, including borrowings and gearing through the use of derivatives (which requires prior Board approval), when aggregated with underwriting participations, will not exceed 20% of the net asset value at the time of investment, drawdown or participation. There are no derivative positions at 31 October 2022. Any borrowing, except for short-term liquidity purposes, is used for investment purposes or to fund the purchase of the Company’s own shares.

At the year end, the Company had in place a two-year unsecured Sterling revolving credit facility of £4 million, provided by ING Luxembourg S.A. The facility matured on 31 December 2022 and was repaid. The Company has put in place a replacement borrowing facility with a limit of £8 million, extended to the Company by The Bank of New York Mellon (International) Limited. At the date of this report the facility was drawn down in the sum of £4 million.

Performance
The Board also reviews regularly the Company’s performance attribution analysis to understand how performance was achieved. This provides an understanding of how components such as sector exposure, stock selection and asset allocation impact performance. The table below provides performance information for the current and prior year.

Details of the Company’s performance for the year are also given in the Chairman’s Statement above. The Investment Manager’s Report above includes a review of the main developments during the year, together with information on investment activity within the Company’s portfolio.

Results and dividends
The Company’s revenue earnings for the year amounted to 6.77p per share (2021: 7.10p per share). The total net loss for the year, after taxation, was £949,000 (2021: profit of £10,621,000) of which the net revenue profit amounted to £1,438,000 (2021: £1,557,000) and the net capital loss amounted to £2,387,000 (2021: profit of £9,064,000). Details of dividends paid and declared in respect of the year are set out in the Chairman’s Statement above.

KEY PERFORMANCE INDICATORS

At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company over time, and which are comparable to other investment trusts, are set out in the following table. As indicated in the footnote to the table, some of these KPIs fall within the definition of ‘Alternative Performance Measures’ under guidance issued by the European Securities and Markets Authority (ESMA) and additional information explaining how these are calculated is set out in the Glossary in the Annual Report and Financial Statements.

Additionally, the Board regularly reviews the performance of the portfolio, the net asset value, share price, discount to NAV and ongoing charges of the Company and compares this against various companies and indices. The Board also reviews the performance of the portfolio against a benchmark index, the FTSE All-Share Index. Information on the Company’s performance is given in the Chairman’s Statement above.

The principal KPIs are described below.

Performance against the benchmark
The performance of the portfolio together with the performance of the Company’s net asset value and share price are reviewed at each Board meeting and compared to the return of the Company’s benchmark, the FTSE All-Share Index.

Premium/discount to NAV
At each meeting the Board monitors the level of the Company’s premium or discount to NAV and considers strategies for managing any premium or discount. Further details of the discount policy are provided in the Annual Report and Financial Statements. In the year to 31 October 2022, the Company’s share price to NAV traded in the range of a discount of 15.7% to a premium of 0.9%, both on a cum income basis. The Company bought back a total of 226,928 ordinary shares during the year at an average discount of 10.8% and at an average price of 181.50p per share. The total consideration (including costs) was £416,000. No ordinary shares were reissued from treasury during the year.

Ongoing charges
Ongoing charges represent the Company’s management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, write back of prior year expenses and certain non-recurring items, expressed as a percentage of average daily net assets.

The Board reviews the ongoing charges and monitors the expenses incurred by the Company at each meeting. The Board also compares the level of ongoing charges against those of its peers.

	Year ended 31 October 2022	Year ended 31 October 2021
NAV per share¹	191.63p	203.13p
Share price²	171.00p	191.00p
Net asset value total return^{3, 4}	-2.3%	+30.4%
Share price total return^{3, 4}	-7.0%	+22.2%
Change in Benchmark Index⁵	-2.8%	+35.4%
Discount to net asset value⁴	10.8%	6.0%
Revenue earnings per share	6.77p	7.10p
Dividends per share	7.30p	7.20p
Ongoing charges^{4, 6}	1.18%	1.21%
	=========	=========

¹ Calculated in accordance with accounting policies adopted by the Company and AIC guidelines.

² Mid-market share price.

³ This measures the Company’s share price and NAV total return, which assumes dividends paid by the Company have been reinvested.

⁴ Alternative Performance Measures, see Glossary in the Annual Report and Financial Statements.

⁵ FTSE All-Share Index (total return).

⁶ Ongoing charges represent the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, write back of prior year expenses and certain non-recurring items as a % of average daily net assets.

Performance against the Company’s peers
Whilst the principal objective is to achieve growth in capital and income relative to the benchmark, the Board also monitors performance relative to a range of competitor funds, particularly those also within the AIC UK Equity Income sector.

Principal risks
The Company is exposed to a variety of risks and uncertainties. As required by the UK Corporate Governance Code, the Board has undertaken a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity.

In making this assessment, the Board has considered, amongst other factors, the ongoing COVID-19 pandemic which has given rise to unprecedented challenges for businesses across the globe and the Board has taken into consideration the risks posed to the Company by the crisis and incorporated these into the Company’s risk register. It has also considered the impact of the conflict in Ukraine and its impact on the global economy. Emerging risks are considered by the Board as they come into view and are incorporated into the existing review of the Company’s risk register.

A core element of this process is the Company’s risk register which identifies the risks facing the Company and assesses the likelihood and potential impact of each risk and the controls established for mitigation. A residual risk rating is then calculated for each risk. The risk register is regularly reviewed and the risks reassessed. The risk environment in which the Company operates is also monitored and regularly appraised. New risks are also added to the register as they are identified which ensures that the document continues to be an effective risk management tool. The risk register, its method of preparation and the operation of key controls in the Investment Manager’s and third party service providers systems of internal control are reviewed on a regular basis by the Audit Committee.

Additionally, the Investment Manager considers emerging risks in numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company identified through the annual risk survey will be communicated to the Board.

In order to gain a more comprehensive understanding of the Investment Manager’s and other third party service providers’ risk management processes and how these apply to the Company’s business, the Audit Committee periodically receives presentations from BlackRock’s Internal Audit and Risk & Quantitative Analysis functions. The Audit Committee also reviews Service Organisation Control (SOC 1) reports from the Company’s service providers.

The current risk register includes a range of risks which are categorised under the following headings:

· investment performance;

· income/dividend;

· gearing;

· legal, regulatory and tax compliance;

· operational;

· market; and

· financial.

The principal risks identified are described in detail within the table below, together with an explanation of how they are managed and mitigated. The Board will continue to assess these risks on an ongoing basis.

Principal Risk	Mitigation/Control
Investment performance The Board is responsible for: · setting the investment strategy to fulfil the Company’s objective; and · monitoring the performance of the Investment Manager and the implementation of the investment strategy. An inappropriate investment strategy may lead to: · poor performance compared to the Benchmark Index and the Company’s peer group; · a widening discount to NAV; · a reduction or permanent loss of capital; and · dissatisfied shareholders and reputational damage. The Board is also aware of the long-term risk to performance from inadequate attention to ESG issues and in particular the impact of climate change.	To manage this risk the Board: · regularly reviews investment performance; · regularly reviews the Company’s investment mandate and long-term strategy; · is required to provide prior consent to the use of derivatives and exchange traded funds; · has set investment restrictions and guidelines which the Investment Manager monitors and regularly reports on; · reviews changes in gearing and the rationale for the composition of the investment portfolio; · monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with factors specific to particular sectors, based on the diversification requirements inherent in the investment policy; and · monitors the discount to NAV and use of the granted buy back powers. ESG analysis is integrated into the Manager's investment process. This is monitored by the Board.
Income/dividend The amount of dividends and future dividend growth will depend on the Company’s underlying portfolio and the dividends paid by the underlying investee companies. Changes in the composition of the portfolio and any change in the tax treatment of the dividends or interest received by the Company may alter the level of dividends received by shareholders.	The Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each meeting. The Company also has a revenue reserve and powers to pay dividends from capital which could potentially be used to support the Company’s dividend if required.
Gearing The Company’s investment strategy may involve the use of gearing to enhance investment returns. Gearing may be generated through borrowing money or increasing levels of market exposure through the use of derivatives. The Company currently has an unsecured revolving credit facility provided by The Bank of New York Mellon (International) Limited. The use of gearing exposes the Company to the risks associated with borrowing.	To manage this risk the Board has limited gearing, including borrowings and gearing through the use of derivatives, to 20% of NAV at the time of investment, drawdown or participation. The Investment Manager will only use gearing when confident that market conditions and opportunities exist to enhance investment returns.
Legal, regulatory and tax compliance The Company has been approved by HM Revenue & Customs as an investment trust, subject to meeting the relevant eligibility conditions and operating as an investment trust in accordance with Sections 1158 and 1159 of the Corporation Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments. Any breach of the relevant eligibility conditions could lead to the Company losing investment trust status and being subject to corporation tax on capital gains realised within the Company’s portfolio. The Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers Directive (the ‘AIMFD’), the Market Abuse Regulation, the UK Listing Rules and the FCA’s Disclosure Guidance & Transparency Rules. Any serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010.	Compliance with the accounting rules affecting investment trusts are regularly monitored. The Investment Manager monitors investment movements, the level and type of forecast income and expenditure and the amount of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached. The results are reported to the Board at each meeting. The Board is aware of the risk of potential changes in law and taxation post Brexit and will continue to monitor this closely. The Company Secretary and the Company’s professional advisers provide regular reports to the Board in respect of compliance with all applicable rules and regulation. The Company and its appointed Alternative Investment Fund Manager (AIFM and/or Manager) are subject to the risks that the requirements of AIFMD are not correctly complied with. The Board and the Manager also monitor changes in government policy and legislation which may have an impact on the Company. The Market Abuse Regulation came into force across the EU on 3 July 2016. The Board has taken steps to ensure that individual Directors (and their Persons Closely Associated) are aware of their obligations under the regulation and has updated internal processes, where necessary, to ensure the risk of non-compliance is effectively mitigated.
Operational In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by third parties and is dependent on the control systems of BlackRock (the Investment Manager and AIFM), and of The Bank of New York Mellon (International) Limited (the Depositary and Fund Accountant), which ensures safe custody of the Company’s assets and maintains the Company’s accounting records. The Company’s share register is maintained by the Registrar, Computershare Investor Services PLC. Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the Company’s performance. Disruption to the accounting, payment systems or custody records, as a result of a cyber-attack or otherwise, could impact the monitoring and reporting of the Company’s financial position. The security of the Company’s assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems.	Due diligence is undertaken before contracts are entered into with third party service providers. Thereafter, the performance of the provider is subject to regular review and reports to the Board. The Bank of New York Mellon’s and BlackRock’s internal control processes are regularly tested and monitored throughout the year and are evidenced through their Service Organisation Control (SOC 1) reports, which are subject to review by an Independent Service Assurance Auditor. The SOC 1 reports provide assurance in respect of the effective operation of internal controls. These reports are regularly reviewed by the Audit Committee. The Company’s assets are subject to a strict liability regime and in the event of a loss of assets, the Depositary must return assets of an identical type or the corresponding amount, unless able to demonstrate the loss was a result of an event beyond its reasonable control. The Board reviews the overall performance of the Manager, Investment Manager and all other third party service providers on a regular basis and compliance with the Investment Management Agreement regularly. The Board also considers the business continuity arrangements of the Company’s key service providers. The Board considers succession arrangements for key employees of the Investment Manager and the Board also considers the business continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of the Company’s risk register. In respect of the unprecedented risks posed by the COVID-19 pandemic in terms of the ability of service providers to function effectively, the Board has received reports from key service providers setting out the measures that they have put in place to address the crisis, in addition to their existing business continuity framework. Having considered these arrangements and reviewed service levels since the crisis has evolved, the Board is confident that a good level of service has and will be maintained.
Market Market risk arises from volatility in the prices of the Company’s investments. It represents the potential loss the Company might suffer through realising investments at a time of negative market movements. There is also the potential for the Company to suffer loss through holding investments in a period of negative market movements.	The Board considers the diversification of the portfolio, asset allocation, stock selection, and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager. The Board monitors the implementation and results of the investment process with the Investment Manager. The Board also recognises the benefits of a closed-end fund structure in extremely volatile markets such as those experienced with the COVID-19 pandemic and, more recently, the conflict in Ukraine and its impact on markets. Unlike open-ended counterparts, closed-end funds are not obliged to sell-down portfolio holdings at low valuations to meet liquidity requirements for redemptions. During times of elevated volatility and market stress, the ability of a closed-end fund structure to remain invested for the long-term enables the Investment Manager to adhere to disciplined fundamental analysis from a bottom-up perspective.
Financial The Company’s investment activities expose it to a variety of financial risks that include market risk.	Details of these risks are disclosed in note 16 to the financial statements within the Annual Report Financial Statements, together with a summary of the policies for managing these risks.

VIABILITY STATEMENT
In accordance with provision 31 of the UK Corporate Governance Code, the Directors have assessed the prospects of the Company over a longer period than the twelve months referred to by the ‘Going Concern’ guidelines. The Company is an investment trust with the objective of achieving capital growth and income.

The Directors believe that five years is an appropriate investment horizon to assess the viability of the Company. This is based on the Company’s long-term mandate, the low turnover in the portfolio and the investment holding period investors generally consider while investing in the UK market. This period has also been selected as it is aligned to the Company’s objective of achieving long-term growth in capital and income. The Board is aware of the ongoing uncertainty surrounding the potential duration of the COVID-19 pandemic and the conflict in Ukraine, their impact on the global economy and the prospects for many of the Company’s portfolio holdings. Notwithstanding the impact of these events, and given the factors stated below, the Board expects the Company to continue to meet its liabilities as they fall due for the foreseeable future.

The Board conducted its review for the period up to the AGM in 2028, being a five-year period from the date that this annual report will be laid before shareholders for approval. In making this assessment the Board has considered the following factors:

· the Company’s principal risks as set out above;

· the ongoing relevance of the Company’s investment objective in the current environment; and

· the level of demand for the Company’s shares.

The Company is required to undertake a continuation vote at this year’s AGM and has also reviewed the potential impact that this may have on the Company’s viability. Particular consideration has been given to the following:

· the performance of the Company versus its benchmark index;

· good communication with major shareholders. At the present time there has been no indication that the continuation vote will not be successful index; and

· at the close of business on 30 January 2023 the Company’s shares were trading at a discount to NAV of 9.2%.

Having considered the above factors, the Board believes that the scheduled continuation vote does not have a detrimental impact on the Company’s viability.

As part of its assessment the Board has also considered:

· the level of ongoing charges, both current and historical;

· the level at which the shares trade relative to NAV;

· the level of income generated; and

· future income forecasts.

The Board has concluded that the Company would be able to meet its ongoing operating costs and net current liabilities as they fall due as a consequence of:

· a liquid portfolio; and

· overheads which comprise a small percentage of net assets.

Therefore, the Board has concluded that even in exceptionally stressed operating conditions, the Company would comfortably be able to meet its ongoing operating costs as they fall due.

However, investment companies may face other challenges. These include regulatory changes, changes to the tax treatment of investment trusts, a significant decrease in size due to poor investment performance or substantial share buy back activity, which may result in the Company no longer being of sufficient market capitalisation to represent a viable investment proposition or no longer being able to continue in operation.

Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment.

Future prospects
The Board’s main focus is the achievement of income and capital growth. The future performance of the Company is dependent upon the success of the investment strategy.

The outlook for the Company is discussed in the Chairman’s Statement and in the Investment Manager’s Report above.

Social, community and human rights issues
As an investment trust, the Company has no direct social or community responsibilities.

However, the Company believes that it is in shareholders’ interests to consider environmental, social and governance factors and human rights issues when selecting and retaining investments. Details of the Company’s approach to socially responsible investment are set out in the Annual Report and Financial Statements.

Modern slavery act
As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chain, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.

Directors, gender representation and employees
The Directors of the Company on 31 October 2022, all of whom held office throughout the year, are set out in the Governance Structure and Directors’ biographies in the Annual Report and Financial Statements.

The Board recognises the importance of having a range of experienced Directors with the right skills and knowledge to enable it to fulfil its obligations. As at 31 October 2022, the Board consisted of three male Directors and one female Director, resulting in 25% female board representation. The Company does not have any employees.

Promoting the success of BlackRock Income and Growth Investment Trust plc
The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of members as a whole. This enhanced disclosure covers how the Board has engaged with and understands the views of stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the Board’s decisions.

As the Company is an externally managed investment company and does not have any employees or customers, the Board considers the main stakeholders in the Company to be the shareholders, key service providers (being the Manager and Investment Manager, the Custodian, Depositary, Registrar and Broker) and investee companies. The reasons for this determination, and the Board’s overarching approach to engagement, are set out in the table below.

Stakeholders
Shareholders Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on understanding the views of shareholders in order to incorporate them into the Board’s strategy and objectives in delivering long-term growth and income.	Manager and Investment Manager The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as administration, secretarial, accounting and marketing services. The Manager has sub-delegated portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company to deliver successfully its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation.	Other key service providers In order for the Company to function as an investment trust with a listing on the premium segment of the official list of the FCA and trade on the London Stock Exchange’s (LSE) main market for listed securities, the Board relies on a diverse range of service providers and advisors for support in meeting relevant obligations and safeguarding the Company’s assets. For this reason the Board considers the Company’s Custodian, Depositary, Registrar and Broker to be stakeholders. The Board maintains regular contact with its key external providers and receives regular reporting from them through the Board and committee meetings, as well as outside of the regular meeting cycle.	Investee companies Portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors the Investment Manager’s stewardship arrangements and receives regular feedback from the Investment Manager in respect of meetings with the management of portfolio companies.

A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company are set out in the table below.

Area of Engagement	Issue	Engagement	Impact
Investment mandate and objective	The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to shareholders over the long-term. Consideration of sustainable investment is a key part of the investment process and must be factored in when making investment decisions. The Board also has responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio returns.	The Board believes that responsible investment and sustainability are important to the longer-term delivery of growth in capital and income and has worked very closely with the Manager throughout the year to review regularly the Company’s performance, investment strategy and underlying policies and to understand how sustainability considerations are integrated into the investment process. The Manager’s approach to the consideration of ESG factors in respect of the Company’s portfolio, as well as its engagement with investee companies to encourage the adoption of sustainable business practices which support long-term value creation, are kept under review by the Board. The Manager reports to the Board in respect of its consideration of ESG factors and how these are integrated into the investment process.	The portfolio activities undertaken by the Investment Manager and the performance delivered for shareholders during the year can be found in the Investment Manager’s Report above.
Discount strategy	The Board believes that strong performance and an attractive dividend yield enhances demand for the Company’s shares, which will help to narrow the Company’s discount of share price to NAV over time.	The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the impact of dividends paid on brought forward distributable reserves. The Board reviews the Company’s discount/premium to NAV on a regular basis and holds regular discussions with the Manager and the Company’s broker regarding the discount/premium level. The Manager provides the Board with feedback and key performance statistics regarding the success of the Company’s marketing initiatives which include messaging to highlight the dividends. The Board also reviews feedback from shareholders in respect of the level of dividend.	The average discount for the year to 31 October 2022 was 7.8%. During the year the Company’s share price has traded at a maximum discount of 15.7% and a maximum premium of 0.9%.
Service levels of third party providers	The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of service: including the Manager in respect of investment performance and delivering on the Company’s investment mandate; the Custodian and Depositary in respect of their duties towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing with investor queries and the Company’s Brokers in respect of the provision of advice and acting as a market maker for the Company’s shares.	The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual evaluation of the Manager’s performance, their commitment and available resources. The Board performs an annual review of the service levels of all third party service providers and concludes on their suitability to continue in their role. The Board receives regular updates from the AIFM, Depositary, Registrar and Brokers. In light of the challenges presented by the ongoing COVID-19 pandemic to the operation of business across the globe, the Board has worked closely with the Manager to gain comfort that relevant business continuity plans are operating effectively for all of the Company’s service providers.	Performance evaluations were performed on a timely basis and the Board concluded that all third party service providers, including the Manager, Custodian, Depositary and Fund Administrator were operating effectively and providing a good level of service. The Board has received updates in respect of business continuity planning from the Manager, Custodian, Depositary, Fund Administrator, Brokers and Registrar, and is confident that arrangements are in place to ensure that a good level of service will continue to be provided despite the ongoing impact of the COVID-19 pandemic.
Board composition	The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience, diversity and skills, and that it is compliant with best corporate governance practice under the UK Code of Corporate Governance, including guidance on tenure and the composition of the Board’s committees.	Over recent years the Board undertook a review of succession planning arrangements and identified the need for action given that, if no action were taken, a majority of Board Directors would have had tenure in excess of nine years. The Board, discharging the duties of a Nomination Committee, agreed the selection criteria and the method of selection, recruitment and appointment. Board diversity, including gender, was taken into account when establishing the criteria. 50% of the Board was appointed after 2019. All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect of the 2022 evaluation process are given in the Annual Report and Financial Statements). All Directors stand for re-election by shareholders annually. Shareholders may, subject to any COVID-19 restrictions, attend the AGM and raise any queries in respect of Board composition or individual Directors in person, or may contact the Company Secretary or the Chairman using the details provided in the Annual Report and Financial Statements if they wish to raise any issues.	The Board recognises the benefits of diversity and a structured process of ongoing refreshment and will continue to consider regularly its composition. The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in 2022. Through its Manager and Corporate Broker, there is regular contact with major shareholders. Shareholders are able to raise any concerns in this regard at the AGM or alternatively they may write to the Chairman of the Board. Details of the proxy voting results in favour and against individual Directors’ re-election at the 2022 AGM are given on the Company’s website at www.blackrock.com/uk/brig. Historical proxy voting results can be found under the ‘Further Literature’ tab.
Shareholders	Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy.	The Board is committed to maintaining open channels of communication and to engage with shareholders. The Company welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders therefore have the opportunity to meet the Directors and Investment Manager and to address questions to them directly. The Annual Report and Half-Yearly Financial Report are available on the BlackRock website and are also circulated to shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly factsheets, the daily NAV and other information are also published on the website at www.blackrock.com/uk/brig. The Board also works closely with the Investment Manager to develop the Company’s marketing strategy, with the aim of ensuring effective communication with shareholders in respect of the investment mandate and objective. Unlike trading companies, one-to-one shareholder meetings usually take the form of a meeting with the Investment Manager as opposed to members of the Board. As well as attending regular investor meetings the Investment Manager holds regular discussions with wealth management desks and offices to build on the case for, and understanding of, long-term investment opportunities in the UK market. The Investment Manager also coordinates public relations activity, including meetings with relevant industry publications to set out their vision for the portfolio strategy and outlook for the UK equity market. The Investment Manager releases monthly portfolio updates to the market to ensure that investors are kept up to date in respect of performance and other portfolio developments, and maintains a website on behalf of the Company that contains relevant information in respect of the Company’s investment mandate and objective. If shareholders wish to raise issues or concerns with the Board, they are welcome to do so at any time. The Chairman is available to meet directly with shareholders periodically to understand their views on governance and the Company’s performance. He may be contacted via the Company Secretary whose details are given in the Annual Report and Financial Statements.	The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the Company evolve its reporting, aiming to make reports more transparent and understandable. Feedback from all substantive meetings between the Investment Manager and shareholders will be shared with the Board. The Directors will also receive updates from the Company’s broker on any feedback from shareholders, as well as share trading activity, share price performance and an update from the Investment Manager.

The Board’s approach to Sustainability and ESG
Material environmental, social and governance (ESG) issues can present both opportunities and threats to long-term investment performance. These ethical and sustainability issues are a key focus of the Board and your Board is committed to a diligent oversight of the activities of the Manager in these areas. The Board believes effective engagement with management is, in most cases, the most effective way of driving meaningful change in the behaviour of investee company management. This is particularly true for the Company’s Manager given the extent of BlackRock’s shareholder engagement. As well as the influence afforded by its sheer scale, the Board believes that BlackRock is well placed as Manager to fulfil these requirements due to the integration of ESG into its investment processes, the emphasis it places on sustainability, its collaborative approach in its investment stewardship activities and its position in the industry as one of the largest suppliers of sustainable investment products in the global market. More information on BlackRock’s approach to responsible investing is set out in the Annual Report and Financial Statements.

BY ORDER OF THE BOARD
KEVIN MAYGER
FOR AND ON BEHALF OF
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
Company Secretary
1 February 2023

RESPONSIBLE OWNERSHIP: BLACKROCK’S APPROACH TO SUSTAINABLE INVESTING

Responsible ownership – BlackRock's approach
Consistent with BlackRock’s fiduciary duty as an asset manager, BlackRock Investment Stewardship’s (BIS) purpose is to support investee companies in their efforts to deliver long-term durable financial performance on behalf of our clients. These clients include public and private pension plans, governments, insurance companies, endowments, universities, charities and, ultimately, individual investors, among others. BIS serves as an important link between BlackRock’s clients and the companies they invest in. Clients depend on BlackRock to help them meet their investment goals; the business and governance decisions that companies make will have a direct impact on BlackRock’s clients’ long-term investment outcomes and financial well-being.

Global Principles
BlackRock’s approach to corporate governance and stewardship is comprised in BIS’ Global Principles and market-specific voting guidelines. BIS’ policies set out the core elements of corporate governance that guide its investment stewardship activities globally and within each regional market, including when voting at shareholder meetings for those clients who have authorized BIS to vote on their behalf. Each year, BIS reviews its policies and updates them as necessary to reflect changes in market standards and regulations, insights gained over the year through third-party and its own research, and feedback from clients and companies. BIS’ Global Principles are available on its website at https://www.blackrock.com/corporate/literature/fact-sheet/blk-responsible-investment-engprinciples-global.pdf.

Market-specific proxy voting guidelines
BIS’ voting guidelines are intended to help clients and companies understand its thinking on key governance matters. They are the benchmark against which it assesses a company’s approach to corporate governance and the items on the agenda to be voted on at the shareholder meeting. BIS applies its guidelines pragmatically, taking into account a company’s unique circumstances where relevant. BlackRock informs voting decisions through research and engages as necessary. BIS reviews its voting guidelines annually and updates them as necessary to reflect changes in market standards, evolving governance practice and insights gained from engagement over the prior year.

BIS’ market-specific voting guidelines are available on its website at https://www.blackrock.com/corporate/about-us/investment-stewardship#stewardship-policies.

BlackRock is committed to transparency in terms of disclosure on its stewardship activities on behalf of clients. BIS publishes its stewardship policies on its approach to responsible investment and its global principles, engagement priorities and voting guidelines to help BlackRock’s clients understand its work to advance their interests as long-term investors in public companies. Additionally, BIS published both annual and quarterly vote bulletins that describe its rationale for certain votes at high profile shareholder meetings.

BlackRock’s reporting and disclosures
In terms of its own reporting, BlackRock believes that the SASB provides a clear set of standards for reporting sustainability information across a wide range of issues, from labour practices to data privacy to business ethics. For evaluating and reporting climate-related risks, as well as the related governance issues that are essential to managing them, the TCFD provides a valuable framework. BlackRock recognises that reporting to these standards requires significant time, analysis and effort. BlackRock’s 2021 TCFD report can be found at https://www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/tcfd-report-2021-blkinc.pdf

The Company does not meet the criteria for Article 8 or 9 products under the EU Sustainable Finance Disclosure Regulation (“SFDR”) and the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities. The Investment Manager has access to a range of data sources, including principal adverse indicator (“PAI”) data, when making decisions on the selection of investments. However, whilst BlackRock considers ESG risks for all portfolios and these risks may coincide with environmental or social themes associated with the PAIs, unless stated otherwise in the AIFMD Disclosure Document, the Company does not commit to considering PAIs in driving the selection of its investments.

The above forms part of the Strategic Report.

RELATED PARTY TRANSACTIONS

BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of the investment management contract are disclosed in the Directors’ Report in the Annual Report and Financial Statements.

The investment management fee is levied quarterly, based on 0.60% per annum of the Company’s market capitalisation. The investment management fee due for the year ended 31 October 2022 amounted to £237,000 (2021: £240,000). At the year end, £118,000 was outstanding in respect of the management fee (2021: £180,000).

In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable for these services for the year ended 31 October 2022 amounted to £13,000 including VAT (2021: £11,000). Marketing fees of £11,000 including VAT were outstanding at 31 October 2022 (2021: £11,000).

The Company holds an investment in the BlackRock Institutional Cash Series plc - Sterling Liquid Environmentally Aware Fund of £2,604,000 (2021: £1,299,000) which for the year ended 31 October 2022 and 31 October 2021 has been presented in the financial statements as a cash equivalent. This is a fund managed by a company within the BlackRock Group.

The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in Delaware USA.

The Board currently consists of four non-executive Directors, all of whom are independent of the Company’s Manager. None of the Directors has a service contract with the Company. For the year ended 31 October 2022, the Chairman received an annual fee of £30,750, the Chairman of the Audit Committee received an annual fee of £25,000 and each of the other Directors received an annual fee of £21,500. Directors’ fees were last increased with effect from 1 November 2021.

Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Annual Report and Financial Statements. At 31 October 2022, £8,000 (2021: £8,000) was outstanding in respect of Directors’ fees.

As at 31 October 2022 and 2021, the Directors’ interests in the Company’s ordinary shares were as follows:

	As at 31 October 2022	As at 31 October 2021
Graeme Proudfoot (Chairman)	60,000	60,000
Nicholas Gold¹	20,000¹	20,000
Charles Worsley²	987,539²	987,539²
Win Robbins	12,106	12,106

^1. Mr Gold purchased a further 23,175 ordinary shares on 2 November 2022 and as of the date of this report he holds a total of 43,175 ordinary shares.
^2. Including a non-beneficial interest in 655,500 ordinary shares.

All of the holdings of the Directors are beneficial, other than where stated in the footnote above. No changes to these holdings have been notified up to the date of this report.

The information in the table above has been audited.

STATEMENT OF DIRECTORS’ RESPONSIBILITES IN RESPECT OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, including FRS 102 The Financial Reporting Standard applicable in the UK and Ireland.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company as at the end of each financial year and of the profit or loss of the Company for that year.

In preparing these financial statements, the Directors are required to:

· present fairly the financial position, financial performance and cash flows of the Company;

· select suitable accounting policies in accordance with United Kingdom Generally Accepted Accounting Practice and apply them consistently;

· present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

· make judgements and estimates that are reasonable and prudent;

· state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are also responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report, the Corporate Governance Statement and the Report of the Audit Committee in accordance with the Companies Act 2006 and applicable regulations, including the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules.

The Directors have delegated responsibility to the Manager for the maintenance and integrity of the Company’s corporate and financial information included on the BlackRock website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the Directors, whose names are listed in the Annual Report and Financial Statements, confirm to the best of their knowledge that:

· the financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

· the Strategic Report contained in the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The 2018 UK Corporate Governance Code requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit Committee advise on whether it considers that the Annual Report and Financial Statements fulfils these requirements. The process by which the Audit Committee has reached these conclusions is set out in the Audit Committee’s report in the Annual Report and Financial Statements. As a result, the Board has concluded that the Annual Report and Financial Statements for the year ended 31 October 2022, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s position and performance, business model and strategy.

FOR AND ON BEHALF OF THE BOARD
GRAEME PROUDFOOT
Chairman
1 February 2023

INCOME STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2022

		2022			2021
	Notes	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
(Losses)/gains on investments held at fair value through profit or loss		–	(2,328)	(2,328)	–	8,980	8,980
Gains/(losses) on foreign exchange		–	5	5	–	(3)	(3)
Income from investments held at fair value through profit or loss	3	1,742	169	1,911	1,919	303	2,222
Other income	3	28	–	28	8	–	8
		---------------	---------------	---------------	---------------	---------------	---------------
Total income/(loss)		1,770	(2,154)	(384)	1,927	9,280	11,207
		=========	=========	=========	=========	=========	=========
Expenses
Investment management fee	4	(59)	(178)	(237)	(60)	(180)	(240)
Other operating expenses	5	(265)	(6)	(271)	(284)	(6)	(290)
		---------------	---------------	---------------	---------------	---------------	---------------
Total operating expenses		(324)	(184)	(508)	(344)	(186)	(530)
		=========	=========	=========	=========	=========	=========
Net profit/(loss) on ordinary activities before finance costs and taxation		1,446	(2,338)	(892)	1,583	9,094	10,677
Finance costs	6	(16)	(49)	(65)	(10)	(30)	(40)
		---------------	---------------	---------------	---------------	---------------	---------------
Net profit/(loss) on ordinary activities before taxation		1,430	(2,387)	(957)	1,573	9,064	10,637
Taxation		8	–	8	(16)	–	(16)
		---------------	---------------	---------------	---------------	---------------	---------------
Net profit/(loss) on ordinary activities after taxation		1,438	(2,387)	(949)	1,557	9,064	10,621
		=========	=========	=========	=========	=========	=========
Earnings/(loss) per ordinary share (pence)	8	6.77	(11.24)	(4.47)	7.10	41.35	48.45
		=========	=========	=========	=========	=========	=========

The total column of this statement represents the Company’s profit and loss account. The supplementary revenue and capital accounts are both prepared under guidance published by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. All income is attributable to the equity holders of the Company.

The net profit/(loss) on ordinary activities for the year disclosed above represents the Company’s total comprehensive income/(loss).

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2022

	Notes	Called up share capital £000	Share premium account £000	Capital redemption reserve £000	Capital reserve £000	Special reserve £000	Revenue reserve £000	Total £000
For the year ended 31 October 2022
At 31 October 2021		315	14,819	234	11,870	13,843	2,387	43,468
Total comprehensive (loss)/income:
Net (loss)/profit for the year		–	–	–	(2,387)	–	1,438	(949)
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation	9,10	(2)	–	2	–	(414)	–	(414)
Share purchase costs	10	–	–	–	–	(2)	–	(2)
Dividends paid¹	7	–	–	–	–	–	(1,531)	(1,531)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------
At 31 October 2022		313	14,819	236	9,483	13,427	2,294	40,572
		=========	=========	=========	=========	=========	=========	=========
For the year ended 31 October 2021
At 31 October 2020		326	14,819	223	2,806	15,816	2,411	36,401
Total comprehensive income:
Net profit for the year		–	–	–	9,064	–	1,557	10,621
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation		(11)	–	11	–	(1,961)	–	(1,961)
Share purchase costs		–	–	–	–	(12)	–	(12)
Dividends paid²	7	–	–	–	–	–	(1,581)	(1,581)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------
At 31 October 2021		315	14,819	234	11,870	13,843	2,387	43,468
		=========	=========	=========	=========	=========	=========	=========

¹ Interim dividend paid in respect of the six months ended 30 April 2022 of 2.60p per share was declared on 22 June 2022 and paid on 1 September 2022. Final dividend paid in respect of the year ended 31 October 2021 of 4.60p per share was declared on 13 January 2022 and paid on 17 March 2022.

² Interim dividend paid in respect of the six months ended 30 April 2021 of 2.60p per share was declared on 23 June 2021 and paid on 1 September 2021. Final dividend paid in respect of the year ended 31 October 2020 of 4.60p per share was declared on 1 February 2021 and paid on 17 March 2021.

For information on the Company’s distributable reserves please refer to note 15 in the Annual Report and Financial Statements.

BALANCE SHEET AS AT 31 OCTOBER 2022

	Notes	2022 £000	2021 £000
Fixed assets
Investments held at fair value through profit or loss		41,557	46,080
		---------------	---------------
Current assets
Current tax asset		16	11
Debtors		589	324
Cash and cash equivalents		2,657	1,362
		---------------	---------------
Total current assets		3,262	1,697
		=========	=========
Creditors – amounts falling due within one year
Bank loan		(4,000)	(4,000)
Other creditors		(247)	(309)
		---------------	---------------
Total current liabilities		(4,247)	(4,309)
		=========	=========
Net current liabilities		(985)	(2,612)
		=========	=========
Net assets		40,572	43,468
		=========	=========
Capital and reserves
Called up share capital	9	313	315
Share premium account	10	14,819	14,819
Capital redemption reserve	10	236	234
Capital reserve	10	9,483	11,870
Special reserve	10	13,427	13,843
Revenue reserve	10	2,294	2,387
		---------------	---------------
Total shareholders’ funds	8	40,572	43,468
		=========	=========
Net asset value per ordinary share (pence)	8	191.63	203.13
		=========	=========

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2022

	2022 £000	2021 £000
Operating activities
Net (loss)/profit on ordinary activities before taxation	(957)	10,637
Add back finance costs	65	40
Loss/(gains) on investments held at fair value through profit or loss	2,328	(8,980)
(Gains)/losses on foreign exchange	(5)	3
Sales of investments held at fair value through profit or loss	17,325	22,755
Purchases of investments held at fair value through profit or loss	(15,424)	(21,084)
Decrease/(increase) in other debtors	29	(89)
(Decrease)/increase in other creditors	(62)	60
Taxation on investment income	3	(27)
	---------------	---------------
Net cash generated from operating activities	3,302	3,315
	=========	=========
Financing activities
Ordinary shares purchased for cancellation	(414)	(1,961)
Share purchase costs paid	(2)	(12)
Interest paid	(65)	(40)
Dividends paid	(1,531)	(1,581)
	---------------	---------------
Net cash used in financing activities	(2,012)	(3,594)
	=========	=========
Increase/(decrease) in cash and cash equivalents	1,290	(279)
Cash and cash equivalents at the beginning of the year	1,362	1,644
Effect of foreign exchange rate changes	5	(3)
	---------------	---------------
Cash and cash equivalents at the end of the year	2,657	1,362
	=========	=========
Comprised of:
Cash at bank	53	63
Cash Fund¹	2,604	1,299
	---------------	---------------
	2,657	1,362
	=========	=========

¹ Cash Fund represents funds held on deposit with the BlackRock Institutional Cash Series plc – Sterling Liquid Environmentally Aware Fund.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022

1. PRINCIPAL ACTIVITY
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.

2. ACCOUNTING POLICIES
The principal accounting policies adopted by the Company are set out below.

(a) Basis of preparation
The financial statements have been prepared on a going concern basis in accordance with ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102) and the revised Statement of Recommended Practice – ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (SORP) issued by the Association of Investment Companies (AIC) in October 2019, and updated in July 2022, and the provisions of the Companies Act 2006.

Substantially, all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the period to 1 February 2024, being a period of at least 12 months from the date of approval of the financial statements, and therefore consider the going concern assumption to be appropriate. The Directors have reviewed compliance with the covenants associated with the bank loan facility, income and expense projections, the liquidity of the investment portfolio and the risks associated with the current environment of heightened geo-political risk given the war in Ukraine in making their assessment.

We also acknowledge the continuation vote in March 2023, however, given the Company’s relative performance to peers, our discussions with shareholders to date and the alternatives available to shareholders to realise their investment, we believe the continuation vote will be passed and therefore the vote does not represent a material uncertainty to the going concern of the Company.

The Directors have considered the impact of climate change on the value of the investments included in the Financial Statements and have concluded that:

– there was no further impact of climate change to be considered as the investments are valued based on market pricing as required by FRS 102; and

– the risk is adequately captured in the assumptions and inputs used in measurement of Level 3 assets, if any, as noted in note 16 of the Financial Statements within the Annual Report and Financial Statements.

None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change.

The principal accounting policies adopted by the Company are set out below. Unless specified otherwise, the policies have been applied consistently throughout the year and are consistent with those applied in the preceding year. All of the Company’s operations are of a continuing nature.

The Company’s financial statements are presented in Sterling, which is the functional currency of the Company and the primary economic environment in which the Company operates. All values are rounded to the nearest thousand pounds (£000) except where otherwise indicated.

(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and a capital nature has been presented alongside the Income Statement.

(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.

(d) Income
Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the year. Provisions are made for dividends not expected to be received.

Special dividends are recognised on an ex-dividend basis and treated as capital or revenue depending on the facts or circumstances of each dividend.

Dividends are accounted for in accordance with Section 29 of FRS 102 on the basis of income actually receivable, without adjustment for tax credits attaching to the dividend. Dividends from overseas companies continue to be shown gross of withholding tax.

Deposit interest receivable is accounted for on an accruals basis. Interest income from the Cash Fund is accounted for on an accruals basis. Underwriting commission is recognised when the issue underwritten closes.

Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash equivalent of the dividend is recognised as revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital.

(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the revenue account of the Income Statement, except as follows:

· expenses which are incidental to the acquisition or disposal of an investment are treated as capital. Details of transaction costs on the purchases and sales of investments are disclosed in note 10, in the Annual Report and Financial Statements;

· expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated; and

· the investment management fee and finance costs have been allocated 75% to the capital account and 25% to the revenue account of the Income Statement in line with the Board’s expected long-term split of returns, in the form of capital gains and income respectively, from the investment portfolio.

(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date.

The current tax effect of different items of expenditure is allocated between capital and revenue on the marginal basis using the Company’s effective rate of corporation tax for the accounting period.

Deferred taxation is recognised in respect of all timing differences at the financial reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to less taxation in the future have occurred at the balance sheet date. Deferred taxation is measured on a non-discounted basis, at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. This is subject to deferred taxation assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the timing differences can be deducted.

(g) Investments held at fair value through profit or loss
The Company’s investments are classified as held at fair value through profit or loss in accordance with Section 11 and 12 of FRS 102 and are managed and evaluated on a fair value basis in accordance with its investment strategy.

All investments are classified upon initial recognition as held at fair value through profit or loss. Purchases of investments are recognised on a trade date basis. Sales are recognised at the trade date of the disposal and the proceeds are measured at fair value, which is regarded as the proceeds of the sale less any transaction costs.

The fair value of the financial investments is based on their quoted bid price at the balance sheet date on the exchange on which the investment is quoted, without deduction for the estimated future selling costs. Unquoted investments are valued by the Directors at fair value using International Private Equity and Venture Capital Valuation Guidelines. This policy applies to all current and non-current asset investments of the Company.

Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Income Statement as ‘Gains or losses on investments held at fair value through profit or loss’. Also included within this heading are transaction costs in relation to the purchase or sale of investments.

The fair value hierarchy consists of the following three levels:

Level 1 – Quoted market price for identical instruments in active markets.

Level 2 – Valuation techniques using observable inputs.

Level 3 – Valuation techniques using significant unobservable inputs.

(h) Debtors
Debtors include sales for future settlement, other debtors and prepayments and accrued income in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets.

(i) Creditors
Creditors include purchases for future settlement, interest payable, share buyback costs and accruals in the ordinary course of business. Creditors are classified as creditors – amounts due within one year if payment is due within one year or less (or in the normal operating cycle of business if longer). If not, they are presented as creditors – amounts due after more than one year.

(j) Dividends payable
Under Section 32 of FRS 102, final dividends should not be accrued in the financial statements unless they have been approved by shareholders before the balance sheet date. Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity when they have been approved by shareholders and have become a liability of the Company. Interim dividends are only recognised in the financial statements in the period in which they are paid.

(k) Cash and cash equivalents
Cash comprises cash in hand and on demand deposits. Cash equivalents include bank overdrafts repayable on demand and short-term, highly liquid investments, that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

(l) Foreign currency translation
In accordance with Section 30 of FRS 102, the Company is required to nominate a functional currency being the currency in which the Company predominately operates. The functional and reporting currency is Sterling, reflecting the primary economic environment in which the Company operates. Transactions in foreign currencies are translated into Sterling at the rates of exchange ruling on the date of the transaction. Foreign currency monetary assets and liabilities and non-monetary assets held at fair value are translated into Sterling at the rates of exchange ruling at the balance sheet date. Profits and losses thereon are recognised in the capital account of the Income Statement and taken to the capital reserve.

(m) Share repurchases and share reissues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The full cost of the repurchase is charged to the special reserve.

Shares repurchased and held in treasury – the full cost of the repurchase is charged to the special reserve.

Where treasury shares are subsequently reissued:

· amounts received to the extent of the repurchase price are credited to the special reserve and capital reserve based on a weighted average basis of amounts utilised from these reserves on repurchases; and

· any surplus received in excess of the repurchase price is taken to the share premium account.

Where new shares are issued, amounts received to the extent of any surplus received in excess of the par value are taken to the share premium account.

Costs on issuance of new shares are charged to the share premium account. Costs on share reissues are charged to the special reserve and capital reserve.

(n) Bank borrowings
Bank loans are recorded as the proceeds received. Finance charges are accounted for on an accruals basis in the Income Statement.

(o) Critical accounting judgement and key sources of estimation uncertainty
The Board makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Directors do not believe that any accounting judgements or estimates have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

3. INCOME

	2022 £000	2021 £000
Investment income:
UK dividends	1,447	1,503
UK scrip dividends	–	19
UK special dividends	96	226
UK REIT dividends	11	9
Overseas dividends	188	162
	---------------	---------------
Total investment income	1,742	1,919
	=========	=========
Other income:
Interest from Cash Fund	28	1
Underwriting commission	–	7
	---------------	---------------
Total income	1,770	1,927
	=========	=========

Dividends and interest received in cash during the year amounted to £1,838,000 and £23,000 respectively (2021: £1,771,000 and £1,000).

Special dividends of £169,000 have been recognised in capital during the year (2021: £303,000).

4. INVESTMENT MANAGEMENT FEE

	2022			2021
	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Investment management fee	59	178	237	60	180	240
	---------------	---------------	---------------	---------------	---------------	---------------
Total	59	178	237	60	180	240
	=========	=========	=========	=========	=========	=========

Under the terms of the investment management agreement, BFM is entitled to a fee of 0.6% per annum of the Company’s market capitalisation. The investment management fee is allocated 75% to the capital account and 25% to the revenue account. There is no additional fee for company secretarial and administration services.

5. OTHER OPERATING EXPENSES

	2022 £000	2021 £000
Allocated to revenue:
Custody fees	1	1
Depositary fees	5	5
Audit fees¹	29	29
Registrars’ fee	27	24
Directors’ emoluments²	99	100
Marketing fees	13	11
Printing and postage fees	35	32
Legal and professional fees	12	32
London Stock Exchange fee	10	10
FCA fee	7	7
Prior year expenses written back³	(2)	–
Other administration costs	29	33
	---------------	---------------
	265	284
	=========	=========
Allocated to capital:
Custody transaction costs⁴	6	6
	---------------	---------------
	271	290
	=========	=========
The Company’s ongoing charges⁵, calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, write back of prior year expenses and certain non-recurring items were:	1.18%	1.21%
	=========	=========

¹ No non-audit services were provided by the Company’s auditors.

² Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report in the Annual Report and Financial Statements. The Company has no employees.

³ Relates to other administration costs written back in the year ended 31 October 2022 (31 October 2021: none).

⁴ For the year ended 31 October 2022, expenses of £6,000 (2021: £6,000) were charged to the capital account of the Income Statement. These relate to transaction costs charged by the custodian on sale and purchase trades.

⁵ Alternative Performance Measure, see Glossary in the Annual Report and Financial Statements.

6. FINANCE COSTS

	2022			2021
	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Interest on Sterling bank loan	16	49	65	10	30	40
	---------------	---------------	---------------	---------------	---------------	---------------
	16	49	65	10	30	40
	=========	=========	=========	=========	=========	=========

Finance costs have been allocated 75% to the capital account and 25% to the revenue account of the Income Statement.

7. DIVIDENDS

Dividends paid on equity shares	Record date	Payment date	2022 £000	2021 £000
2020 Final dividend of 4.60p	12 February 2021	17 March 2021	–	1,015
2021 Interim dividend of 2.60p	23 July 2021	1 September 2021	–	566
2021 Final dividend of 4.60p	4 February 2022	17 March 2022	981	–
2022 Interim dividend of 2.60p	22 July 2022	1 September 2022	550	–
			---------------	---------------
			1,531	1,581
			=========	=========

The Directors have proposed a final dividend of 4.70p per share in respect of the year ended 31 October 2022. The final dividend will be paid, subject to shareholders’ approval, on 15 March 2023 to shareholders on the Company’s register on 10 February 2023. The proposed final dividend has not been included as a liability in these financial statements as final dividends are only recognised in the financial statements when they have been approved by shareholders.

The total dividends payable in respect of the year which form the basis of determining retained income for the purpose of Section 1158 of the Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amount proposed for the year ended 31 October 2022, meet the relevant requirements as set out in this legislation.

Dividends paid or declared on equity shares:	2022 £000	2021 £000
Interim paid of 2.60p (2021: 2.60p)	550	566
Final proposed of 4.70p¹ (2021: 4.60p)	986	981
	---------------	---------------
	1,536	1,547
	=========	=========

¹ Based on 20,968,251 ordinary shares (excluding treasury shares) in issue on 30 January 2023.

All dividends paid or payable are distributed from the Company’s current year revenue profits and, if required, from brought forward revenue reserves.

8. EARNINGS/(LOSS) AND NET ASSET VALUE PER ORDINARY SHARE
Revenue, capital earnings/(loss) and net asset value per ordinary share are shown below and have been calculated using the following:

	2022	2021
Net revenue profit attributable to ordinary shareholders (£000)	1,438	1,557
Net capital (loss)/profit attributable to ordinary shareholders (£000)	(2,387)	9,064
	---------------	---------------
Total (loss)/profit attributable to ordinary shareholders (£000)	(949)	10,621
	---------------	---------------
Total shareholders’ funds (£000)	40,572	43,468
	=========	=========
Earnings per share
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was:	21,244,153	21,920,081
The actual number of ordinary shares in issue at the year end on which the net asset value was calculated was:	21,171,914	21,398,842
The number of ordinary shares in issue, including treasury shares at the year end was:	31,253,446	31,480,374
Calculated on weighted average number of ordinary shares:
Revenue earnings per share (pence) – basic and diluted	6.77	7.10
Capital (loss)/earnings per share (pence) – basic and diluted	(11.24)	41.35
	---------------	---------------
Total (loss)/earnings per share (pence) – basic and diluted	(4.47)	48.45
	=========	=========

	As at 31 October 2022	As at 31 October 2021
Net asset value per ordinary share (pence)	191.63	203.13
Ordinary share price (mid-market) (pence)	171.00	191.00
	=========	=========

There were no dilutive securities at the year end (31 October 2021: nil).

9. CALLED UP SHARE CAPITAL

	Ordinary shares number	Treasury shares number	Total shares number	Nominal value £000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 pence each:
At 31 October 2021	21,398,842	10,081,532	31,480,374	315
Shares purchased for cancellation	(226,928)	–	(226,928)	(2)
	---------------	---------------	---------------	---------------
At 31 October 2022	21,171,914	10,081,532	31,253,446	313
	=========	=========	=========	=========

During the year 226,928 ordinary shares (2021: 1,112,783) were purchased and subsequently cancelled for a total consideration including expenses of £416,000 (2021: £1,973,000).

The number of ordinary shares in issue at the year end was 31,253,446 (2021: 31,480,374) of which 10,081,532 (2021: 10,081,532) were held in treasury.

10. RESERVES

	Share premium account £000	Capital redemption reserve £000	Distributable reserves
	Share premium account £000	Capital redemption reserve £000	Capital reserve (arising on investments sold) £000	Capital reserve (arising on revaluation of investments held) £000	Special reserve £000	Revenue reserve £000
At 31 October 2021	14,819	234	7,108	4,762	13,843	2,387
Movement during the year:
Total comprehensive income/(loss):
Net profit/(loss) for the year	–	–	889	(3,276)	–	1,438
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation	–	2	–	–	(414)	–
Share purchase costs	–	–	–	–	(2)	–
Dividends paid during the year	–	–	–	–	–	(1,531)
	---------------	---------------	---------------	---------------	---------------	---------------
At 31 October 2022	14,819	236	7,997	1,486	13,427	2,294
	=========	=========	=========	=========	=========	=========

	Share premium account £000	Capital redemption reserve £000	Distributable reserves
	Share premium account £000	Capital redemption reserve £000	Capital reserve (arising on investments sold) £000	Capital reserve (arising on revaluation of investments held) £000	Special reserve £000	Revenue reserve £000
At 31 October 2020	14,819	223	4,661	(1,855)	15,816	2,411
Movement during the year:
Total comprehensive income:
Net profit for the year	–	–	2,447	6,617	–	1,557
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation	–	11	–	–	(1,961)	–
Share purchase costs	–	–	–	–	(12)	–
Dividends paid during the year	–	–	–	–	–	(1,581)
	---------------	---------------	---------------	---------------	---------------	---------------
At 31 October 2021	14,819	234	7,108	4,762	13,843	2,387
	=========	=========	=========	=========	=========	=========

The share premium account and capital redemption reserve are not distributable reserves under the Companies Act 2006. The Company’s share premium account was cancelled pursuant to shareholders’ approval of a special resolution at the Company’s Annual General Meeting in 2002 and Court approval on 24 January 2002. The share premium account which totalled £61,852,000 was transferred to a special reserve. This action was taken, in part, to ensure that the Company had sufficient distributable reserves. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable Profits under the Companies Act 2006, the special reserve and capital reserves may be used as distributable reserves for all purposes and, in particular, the repurchase by the Company of its ordinary shares and for payments as dividends. In accordance with the Company’s Articles of Association, the special reserve, capital reserves and the revenue reserve may be distributed by way of dividend. The gain on the capital reserve arising on the revaluation of investments of £1,486,000 (2021: gain of £4,762,000) is subject to fair value movements and may not be readily realisable at short notice, as such it may not be entirely distributable. The investments are subject to financial risks; as such capital reserves (arising on investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments.

11. VALUATION OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank, bank overdrafts and bank loans). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note to the Financial Statements in the Annual Report and Financial Statements.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.

The fair value hierarchy has the following levels:

Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Company does not adjust the quoted price for these instruments.

Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where significant inputs are directly or indirectly observable from market data.

Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.

This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.

Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the Level 3 asset or liability including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager, and these risks are adequately captured in the assumptions and inputs used in measurement of Level 3 asset or liability.

Fair values of financial assets and financial liabilities
The table below is an analysis of the Company’s financial instruments measured at fair value at the balance sheet date.

Financial assets at fair value through profit or loss at 31 October 2022	Level 1 £000	Level 2 £000	Level 3 £000	Total £000
Equity investments	41,557	–	–	41,557
	=========	=========	=========	=========

Financial assets at fair value through profit or loss at 31 October 2021	Level 1 £000	Level 2 £000	Level 3 £000	Total £000
Equity investments	46,080	–	–	46,080
	=========	=========	=========	=========

There were no transfers between levels for financial assets and financial liabilities during the year recorded at fair value as at 31 October 2022 (2021: none). The Company held no Level 3 securities during the financial year or as at 31 October 2022 (2021: none).

For exchange listed equity investments, the quoted price is the bid price. Substantially, all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.

12. TRANSACTIONS WITH THE MANAGER AND INVESTMENT MANAGER
BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of the investment management contract are disclosed in the Directors’ Report in the Annual Report and Financial Statements.

The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in Delaware, USA.

13. RELATED PARTY DISCLOSURE
At the date of this report, the Board consists of four non-executive Directors, all of whom are considered to be independent of the Manager by the Board.

Significant holdings
The following investors are:

a. funds managed by the BlackRock Group or are affiliates of BlackRock Inc. (“Related BlackRock Funds”); or

b. investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are as a result, considered to be related parties to the Company (“Significant Investors”).

As at 31 October 2022

Total % of shares held by Related BlackRock Funds	Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.	Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.
nil	n/a	n/a

As at 31 October 2021

Total % of shares held by Related BlackRock Funds	Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.	Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.
nil	n/a	n/a

14. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 October 2022 (2021: nil).

15. SUBSEQUENT EVENTS
The Company’s £4 million overdraft facility with ING Luxembourg S.A. matured on 31 December 2022.

On 31 December 2022, a new facility was arranged between The Bank of New York Mellon (International) Limited (BNYM) and the Company under which BNYM agreed to make available to the Company a variable interest rate unsecured Sterling revolving credit facility of up to £8 million.

16. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in this announcement does not constitute statutory accounts as defined in the Companies Act 2006. The Annual Report and Financial Statements for the year ended 31 October 2022 will be filed with the Registrar of Companies after the Annual General Meeting.

The figures set out above have been reported upon by the auditor, whose report for the year ended 31 October 2022 contains no qualification or statement under Section 498(2) or (3) of the Companies Act 2006.

The comparative figures are extracts from the audited financial statements of BlackRock Income and Growth Investment Trust plc for the year ended 31 October 2021, which have been filed with the Registrar of Companies, unless otherwise stated. The report of the auditor on those financial statements contained no qualification or statement under Section 498 of the Companies Act.

17. ANNUAL REPORT
Copies of the Annual Report will be sent to members shortly and will be available from the registered office c/o The Company Secretary, BlackRock Income and Growth Investment Trust plc, 12 Throgmorton Avenue, London EC2N 2DL.

18. ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at 12 Throgmorton Avenue, London EC2N 2DL on Tuesday, 7 March 2023 at 12.00 noon.

ENDS

The Annual Report will also be available on the BlackRock website at blackrock.co.uk/brig. Neither the contents of the Manager's website nor the contents of any website accessible from hyperlinks on the Manager's website (or any other website) is incorporated into, or forms part of, this announcement.

For further information, please contact:

Melissa Gallagher, Head, Closed End Funds, BlackRock Investment Management (UK) Limited
Tel: 020 7743 3893

Press enquires:

Ed Hooper, Lansons Communications
Tel: 020 7294 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com

2 February 2023

12 Throgmorton Avenue
London
EC2N 2DL