Preliminary Results Part 2

NEWS RELEASE

                                      For immediate release - 12 December 2007

                      Finsbury Growth & Income Trust PLC

Finsbury Growth & Income Trust PLC preliminary results for the year ended 30
September 2007.

Part 2

Income Statement

incorporating the revenue account for the year ended 30 September 2007

                                              2007                    2006
                           Revenue Capital   Total Revenue Capital   Total
                     Notes   £'000   £'000   £'000   £'000   £'000   £'000
 
Gains on investments
held at fair value
through profit or                -   7,401   7,401       -  21,943  21,943
loss
Income                 2     6,253       -   6,253   7,155       -   7,155
Investment             3     (415)   (895) (1,310)   (341)   (691) (1,032)
management,
management and
performance fees
Other expenses               (513)       -   (513)   (526)       -   (526)
 
Net return on
ordinary activities
before finance               5,325   6,506  11,831   6,288  21,252  27,540
charges and taxation
Finance charges              (470)   (954) (1,424)   (373)   (759) (1,132)
 
Return on ordinary
activities before            4,855   5,552  10,407   5,915  20,493  26,408
taxation
Taxation on ordinary
activities                       -       -       -     (2)       -     (2)
 
Return on ordinary
activities after             4,855   5,552  10,407   5,913  20,493  26,406
taxation
 
Return per share       4     9.44p  10.79p  20.23p  12.37p  42.87p  55.24p

The total column of this statement represents the profit and loss
account of the Company.

The revenue and capital columns are supplementary to this and are
prepared under guidance published by the Association of Investment Companies
(AIC).

All items in the above statement derive from continuing operations.

The Company had no recognised gains or losses other than those
declared in the Income Statement.

Reconciliation of Movements in Shareholders' Funds

For the year ended 30 September 2007

                         Called-up   Share              Capital
                             share premium   Special redemption  Capital Revenue
                           capital account   reserve    reserve reserves reserve     Total

                             £'000   £'000     £'000      £'000    £'000   £'000     £'000

At 30 September 2006        12,309  25,414    12,424      3,453   91,471   3,907   148,978

Net return from
ordinary activities              -       -         -          -    5,552   4,855    10,407

Second interim dividend
(4.2p per share) for
the year ended 30                -       -         -          -        - (2,068)   (2,068)
September 2006

First interim dividend
(4.2p per share) for
the year ended 30                -       -         -          -        - (2,183)   (2,183)
September 2007

Shares issued net of
issue expenses                 853  10,068         -          -        -       -    10,921

Year ended 30 September     13,162  35,482    12,424      3,453   97,023   4,511   166,055
2007

At 30 September 2005        11,237  14,843    12,424      3,453   70,978   2,933   115,868

Net return from
ordinary activities              -       -         -          -   20,493   5,913    26,406

Second interim dividend
(4.0p per share) for
the year ended 30                -       -         -          -        - (1,796)   (1,796)
September 2005

First interim dividend
(4.2p per share) for
the year ended 30                -       -         -          -        - (2,020)   (2,020)
September 2006

Special dividend (2.3p
per share) for the year
ended 30 September 2006          -       -         -          -        - (1,123)   (1,123)

Shares issued net of
issue expenses               1,072  10,571         -          -        -       -    11,643

Year ended 30 September     12,309  25,414    12,424      3,453   91,471   3,907   148,978
2006



Balance Sheet
as at 30 September 2007

                                                     2007       2006

                                                    £'000      £'000
 
Fixed assets
Investments held at fair value through profit     189,042    166,347
or loss
 
Current assets
Debtors                                             1,753      1,346
Cash at bank                                          507      2,099
                                                    2,260      3,445
Current Liabilities
Creditors                                           (397)      (814)
Bank Loans                                       (24,850)   (20,000)
                                                 (25,247)   (20,814)
Net current liabilities                          (22,987)   (17,369)
Total net assets                                  166,055    148,978
 
Capital and reserves
Called-up share capital                            13,162     12,309
Share premium account                              35,482     25,414
Special reserve                                    12,424     12,424
Capital redemption reserve                          3,453      3,453
Capital reserve
- realised                                         43,800     45,644
- unrealised                                       53,223     45,827
Revenue reserve                                     4,511      3,907
 
Equity shareholders' funds                        166,055    148,978
 
Net asset value per share (note 5)                 315.4p     302.6p



Cash Flow Statement
for the year ended 30 September 2007

                                                          2007      2006

                                                         £'000     £'000
 
Net cash inflow from operating activities                4,083     4,735
 
Net cash outflow from servicing of finance             (1,376)   (1,101)
 
Financial investment
Purchase of investments                               (15,890)  (17,227)
Sale of investments                                         71     6,741
 
Net cash outflow from financial investment            (15,819)  (10,486)
 
Equity dividends paid                                  (4,251)   (4,939)
 
Net cash outflow before financing                     (17,363)  (11,791)
 
Financing
Issue of new shares net of issue expenses               10,921    11,772
Drawdown of loans                                        4,850     1,900
 
Net cash inflow from financing                          15,771    13,672
 
(Decrease)/increase in cash                            (1,592)     1,881
 
Reconciliation of net cash flow to movement in net
debt
(Decrease)/increase in cash resulting from cashflows   (1,592)     1,881
Increase in debt                                       (4,850)   (1,900)
 
Movement in net debt                                   (6,442)      (19)
Net debt at 1 October 2006                            (17,901)  (17,882)
Net debt at 30 September 2007                         (24,343)  (17,901)



Notes

1. Accounting Policies

(a) The accounts have been prepared under the historical cost
convention, except for the measurement at fair value of certain financial
instruments, and in accordance with the Companies Act 1985, accounting
standards applicable in the United Kingdom and with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
issued by The Association of Investment Trust Companies (the SORP).

(b) Investment Policy

As the Company's business is investing in financial assets with a
view to profiting from their total return in the form of increases in fair
value, financial assets are designated as fair value through profit and loss
on initial recognition in accordance with FRS 26. The Company manages and
evaluates the performance of these investments on a fair value basis in
accordance with its investment strategy, and information about the investments
is provided on this basis to the Board of Directors.

Investments held at fair value through profit or loss are initially recognised
at fair value. After initial recognition, investments that are classified as
at fair value through profit or loss, are measured at fair value, which is
either the bid price or the last traded price depending on the convention of
the exchange on which the investment is listed. Gains or losses on investments
classified as at fair value through profit or loss are recognised in the
capital column of the Income Statement.

In respect of unquoted investments, or where the market for a financial
instrument is not active, fair value is established by using valuation
techniques, which may include using recent arm's length market transactions
between knowledgeable, willing parties, if available, reference to the current
fair value of another instrument that is substantially the same, discounted
cash flow analysis and option pricing models. Where there is a valuation
technique commonly used by market participants to price the instrument and
that technique has been demonstrated to provide reliable estimates of prices
obtained in actual market transactions, that technique is utilised.

All purchases and sales of investments are accounted for on the trade date
basis.

The Company's policy is to capitalise transaction costs on acquisition and the
profit or loss on disposal is calculated net of transaction costs on disposal.
FRS 26 requires that transaction costs for financial assets at fair value
through profit or loss be expensed. The total of such expenses, showing the
total amounts included in disposals and additions are disclosed below, as
recommended by the revised SORP.

Transaction costs on the acquisition and sale of investments totalled £108,000
and £nil respectively (2006: £87,000 and £nil) and are included in gains on
investments within the Income Statement.

(c) Dividend Payments

Dividends paid by the Company on its shares are recognised in the
financial statements in the period in which they are paid.

(d) Investment Income

 Dividends on quoted equity shares are taken to income on the
ex-dividend date.

Fixed returns on non-equity shares are recognised on a time
apportionment basis so as to reflect the effective yield on shares.

Special dividends: In deciding whether a dividend should be regarded as a
capital or revenue receipt, the Company reviews all relevant information as to
the reasons for and sources of the dividend on a case by case basis.

(e) Expenditure and Finance Charges

 All the expense and finance costs are accounted for on an accruals
basis. Expenses are charged through the revenue column of the Income Statement
except as follows:

(1) expenses which are incidental to the acquisition or disposal of
an investment are treated as part of the cost or proceeds of that investment
(as explained in 1(b) above);

(2) expenses are taken to capital reserve realised via the capital column of
the Income Statement, where a connection with the maintenance or enhancement
of the value of the investments can be demonstrated. In line with the Board's
expected long term split of returns, in the form of capital gains and income,
from the Company's investment portfolio, 67% of the investment management fee
and finance costs are taken to the capital reserve realised;

(3) performance fees are charged 100% to capital.

Notes (continued)

(f) Taxation

The payment of taxation is deferred or accelerated because of timing
differences between the treatment of certain items for accounting and taxation
purposes. Full provision for deferred taxation is made under the liability
method, without discounting, on all timing differences that have arisen, but
not reversed by the balance sheet date, unless such provision is not permitted
by Financial Reporting Standard 19.

Any tax relief obtained in respect of management fees, finance
costs and other capital expenses charged or allocated to the capital column of
the Income Statement is reflected in the Capital reserve - realised and a
corresponding amount is charged against the revenue column of the Income
Statement. The tax relief is the amount by which corporation tax payable is
reduced as a result of these capital expenses.

(g) Reserves

 Capital reserve - Realised

 The following are taken to this reserve:

(1) Gains and losses on the realisation of investments;

(2) Realised exchange differences of a capital nature;

(3) Expenses, together with the related taxation effect, allocated
to this reserve in accordance with the above policies; and

Capital reserve - unrealised

The following are taken to this reserve:

(1) Increase and decrease in the valuation of investments held at
the year end; and

(2) Unrealised exchange differences of a capital nature.

2. Income

                                     2007  2006
 
                                    £'000 £'000
Income from investments
Franked investment income
- dividends                         6,074 5,161
- special dividend                      - 1,142
Unfranked investment income
- fixed interest                      145   156
- money market dividend                25     8
                                    6,244 6,467
Other income
Dividend received from subsidiary       -   645
Bank interest                           9    43
                                    6,253 7,155


3. Investment Management, Management and Performance Fees

                       Revenue Capital Total Revenue Capital Total
                          2007    2007  2007    2006    2006  2006

                         £'000   £'000 £'000   £'000   £'000 £'000

Investment management      353     718 1,071     290     588   878
and management fees
Performance fee              -      44    44       -       -     -
VAT thereon                 62     133   195      51     103   154
                           415     895 1,310     341     691 1,032

Following the recent decision of the European Court of Justice in the JPMorgan
Claverhouse Investment Trust/Association of Investment Companies case,
investment trust companies are now entitled to recover VAT previously charged
on their investment management fees. It is currently not known to what extent
recoveries of VAT will be possible. Due to these uncertainties no financial
effects have been anticipated in these financial statements. The Company is in
discussion with its previous Investment Manager, Close Investments Limited,
and its current Investment Manager, Lindsell Train Limited, in order to
determine the quantum of VAT recoverable.

4. Return per Share

The total return per share is based on the total return attributable to equity
shareholders of £10,407,000 (2006: £26,406,000), and on 51,438,470 (2006:
47,801,791) shares, being the weighted average number of shares in issue
during the year.

Revenue return per share is based on the net revenue on ordinary activities
after taxation of £4,855,000 (2006: £5,913,000), and on 51,438,470 (2006:
47,801,791) shares, being the weighted average number of shares in issue
during the year.

Capital return per share is based on net capital gains for the year of
£5,552,000 (2006: £20,493,000), and on 51,438,470 (2006: 47,801,791) shares,
being the weighted average number of shares in issue during the year.

5. Net Asset Value per Share

Net asset value per share is based on net assets of £166,055,000
(2006:£148,978,000) and on 52,647,423 (2006:49,236,573) shares in issue at the
year end.

6. Financial Information

This preliminary statement is not the Company's statutory accounts.
The above results for the year ended 30 September 2007 are an abridged version
of the Company's audited statutory accounts, which have not yet been filed
with the Registrar of Companies.

The statutory accounts for the year ended 30 September 2006 have been
delivered to the Registrar of Companies and those for 30 September 2007 will
be despatched to shareholders shortly. The statutory accounts for the years
ended 30 September 2006 and 2007 both received an audit report which was
unqualified, did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying the report, and did not
contain statements under Section 237 (2) and (3) of the Companies Act 1985.

Frostrow Capital LLP,
Company Secretary
12 December 2007