Interim Results
Finsbury Growth & Income Trust PLC
18 June 2007
For immediate release
18 June 2007
To: City Editors
Finsbury Growth & Income Trust PLC
Announces Interim Results for the six months to 31 March 2007
Financial Highlights: (Unaudited) (Audited) % change
31 March 2007 30 September
2006
Share price 331.5p 300.3p +10.4
Net Asset
Value per
share 330.7p 302.6p +9.3
Premium/(disco
unt) of share
price to Net
Asset Value
per share 0.2% (0.8)%
Shareholders'
Funds £170.5m £149.0m +14.4
Market
capitalisation £170.9m £147.9m +15.6
Six months to Six months to One year to
31 March 2007 31 March 30 September
2006
2006
Share price
(total return)# +10.4% +17.5% +19.6%
Net Asset
Value per
share (total
return )# +9.6% +16.6% +21.2%
FTSE All-Share
Index (total
return) +9.2% +12.7% +14.7%
Dividends Year ending 30 Year ended 30
September 2007 September 2006*
First interim dividend 4.2p per share 4.2p per share
Second interim dividend Yet to be 4.2p per share
declared
*In addition, a special dividend of 2.3p per share was declared on 6 July 2006
and paid on 2 August 2006
# Source - Fundamental Data for the AIC (formerly known as the AITC)
For and on behalf of
Frostrow Capital LLP, Secretary
18 June 2007
- ENDS -
The following are attached:
* Chairman's Statement
* Income Statement
* Reconciliation of Movements in Shareholders' Funds
* Balance Sheet
* Cash Flow Statement
* Notes to the interim accounts
For further information please contact:
Alastair Smith/Mark Pope, Frostrow Capital LLP 020 3 008 4911/4913
Jennie Denholm, Quill Communications 020 7758 2230
Nick Train, Lindsell Train Limited 020 7227 8200
Chairman's Statement
I am pleased to be able to report that in the six months to 31 March 2007 your
Company has continued to achieve an increase in shareholder value as a result of
good investment performance. The market price (measured on a total return basis)
of your Company's shares increased by 10.4% compared to a rise of 9.2% in the
Company's benchmark, the FTSE All Share Index measured on a total return basis.
There was an increase of 4.7% in the number of shares in issue during the period
under review, all of which were issued at a premium to the net asset value per
share. The market capitalisation of your Company increased by 15.6% to £171m at
the half-year end.
Return and Dividend
The Income Statement shows a total return per share of 32.26p made up of a
revenue return of 3.82p and a capital return of 28.44p.
Your board has declared an interim dividend of 4.2p per share (2006: 4.2p) which
was paid on 14 June 2007 to shareholders on the register at the close of
business on 25 May 2007.
Investments
The investment portfolio continues to be a concentrated one comprising 23 stocks
(excluding fixed interest securities) only three of which failed to contribute
to returns. The major contributors/detractor in the rise of 9.6% in the
Company's net asset value per share (measured on a total return basis) ('NAV')
are set out in the following table:
Stock Contribution to NAV (p)
Marston's (formerly Wolverhampton & Dudley Brewery) +5.5
Cadbury Schweppes +3.3
Fidessa Group (formerly Royalblue Group) +3.3
Schroders +3.2
Royal Dutch Shell (0.6)
Borrowings
Your Company has a fixed term committed revolving credit facility of £20m and a
further uncommitted facility of £10m. These are subject to a variable rates of
interest but can be fixed at any time. As at 31 March 2007, a total of £24.4m
was drawn down under these facilities.
Changes in Investment Management and Administrative Arrangements
On 10 April 2007 your Company announced that Frostrow Capital LLP were to
provide Management, Administration, Secretarial and Marketing services to the
Company in place of Close Investments Limited. Frostrow is a new Limited
Liability Partnership formed by Alastair Smith together with some of his former
colleagues. Alastair Smith was previously Managing Director of Close Finsbury
Asset Management Limited which provided such services to your Company. Your
Company has agreed to acquire a 10% interest in Frostrow Capital LLP for
£150,000 and to provide it with a £250,000 three year credit facility.
Lindsell Train Limited will continue to act as the Company's Investment Manager
at an increased fee of 45 basis points (increased from 32.5 basis points)
calculated as previously on the Company's market capitalisation.
Your Board estimates that under these new arrangements a saving of approximately
£180,000 will be achieved in a full year.
Outlook
Your Board continues to strive to achieve long term capital growth and an
increasing revenue return. At the same time it intends to continue to issue new
shares at a premium to net asset value per share as demand requires. The
achievement of these objectives does depend inevitably on market conditions. The
economic slow down in the United States, increasing interest rates in the UK and
unresolved problems in the Middle East would seem to indicate that market
conditions in the near term are likely to be volatile and uncertain.
Michael Reeve
Chairman
18 June 2007
Income Statement
For the six months ended 31 March 2007
(Unaudited) (Unaudited)
Six months Six months (Audited)
ended ended Year ended
31 March 2007 31 March 2006 30 September
2006
Revenue Capital Revenue Capital
return return Total return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Gains on
investments
held at fair
value through
profit or loss - 15,253 15,253 - 18,699 18,699 - 21,943 21,943
Income from
investments
(note 2) 2,591 - 2,591 3,002 - 3,002 7,155 - 7,155
Management fee (203) (412) (615) (164) (331) (495) (341) (691) (1,032)
(note 3)
Other expenses (244) - (244) (237) (80) (317) (526) - (526)
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Return on
ordinary
activities
before finance
charges and
taxation 2,144 14,841 16,985 2,601 18,288 20,889 6,288 21,252 27,540
Finance (210) (427) (637) (197) (400) (597) (373) (759) (1,132)
charges
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Return on
ordinary
activities
before
taxation 1,934 14,414 16,348 2,404 17,888 20,292 5,915 20,493 26,408
Taxation on
ordinary
activities - - - - - - (2) - (2)
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Return on
ordinary
activities
after taxation 1,934 14,414 16,348 2,404 17,888 20,292 5,913 20,493 26,406
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
Return per
Ordinary share
(note 4) 3.82p 28.44p 32.26p 5.14p 38.21p 43.35p 12.37p 42.87p 55.24p
------------- ------- ------ ------ ------- ------- ------- ------- ------- -------
The total column of this statement represents the Income Statement of the
Company. The revenue and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment Companies
(formerly known as the Association of Investment Trust Companies).
Reconciliation of Movements in Shareholders' Funds
For the six months ended 31 March 2007
------------------------------------------------------------------------------------------------------------------
Capital Other
Share Share Special Redemption Capital Revenue
Capital Premium Reserve Reserve Reserve 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 - - - - 14,414 1,934 16,348
Second interim
dividend (4.2p
per share) for
the year ended
30 September
2006 - - - - - (2,068) (2,068)
Issue of
Ordinary
shares 578 6,658 - - - - 7,236
----------------- ------- ------- ------ -------- ------- ------- -------
At 31 March
2007 12,887 32,072 12,424 3,453 105,885 3,773 170,494
----------------- ------- ------- ------ -------- ------- ------- -------
------------------------------------------------------------------------------------------------------------------
Capital Other
Six months ended Share Share Special Redemption Capital Revenue
31 March 2006 Capital Premium Reserve Reserve Reserve Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
------------------------------------------------------------------------------------------------------------------
At 30
September 2005 11,237 14,843 12,424 3,453 70,978 2,933 115,868
Net return
from ordinary
activities - - - - 17,888 2,404 20,292
Second interim
dividend of
4.0p paid in
respect of
year ended 30
September 2005 - - - - - (1,796) (1,796)
Issue of
Ordinary
shares 835 8,190 - - - - 9,025
----------------- ------- ------- ------- -------- ------- ------- -------
At 31 March
2006 12,072 23,033 12,424 3,453 88,866 3,541 143,389
----------------- ------- ------- ------- -------- ------- ------- -------
------------------------------------------------------------------------------------------------------------------
Year ended 30 Capital Other
September 2006 Capital Premium Reserve Reserve Reserve Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
------------------------------------------------------------------------------------------------------------------
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 September
2005 - - - - - (1,796) (1,796)
First interim
dividend (4.2p
per share) for
the year ended
30 September
2006 - - - - - (2,020) (2,020)
Special
dividend (2.3p
per share) for
the year ended
30 September
2006 - - - - - (1,123) (1,123)
Issue of
Ordinary
shares 1,072 10,571 - - - - 11,643
----------------- -------- ------- ------ -------- -------- ------- -------
At 30
September 2006 12,309 25,414 12,424 3,453 91,471 3,907 148,978
----------------- -------- ------- ------ -------- -------- ------- -------
Balance Sheet
As at 31 March 2007
---------------- ------------ ----------- -------------
(Unaudited) (Unaudited) (Audited)
31 March 2007 31 March 2006 30 September 2006
£'000 £'000 £'000
--------------------------------------------------------------------------------
Fixed assets
Investments held at fair
value through profit or
loss 193,127 161,848 166,347
---------------- ------------ ----------- -------------
Current assets
Debtors 1,789 1,919 1,346
Bank balances and short
term deposits 140 226 2,099
---------------- ------------ ----------- -------------
1,929 2,145 3,445
Current liabilities
Other creditors (212) (604) (814)
Bank loans (24,350) (20,000) (20,000)
---------------- ------------ ----------- -------------
Net current liabilities (22,633) (18,459) (17,369)
---------------- ------------ ----------- -------------
Total net assets 170,494 143,389 148,978
---------------- ------------ ----------- -------------
Capital and reserves
Called up share capital 12,887 12,072 12,309
Share premium 32,072 23,033 25,414
Special reserve 12,424 12,424 12,424
Capital redemption reserve 3,453 3,453 3,453
Capital reserve - realised 44,810 45,119 45,644
Capital reserve -
unrealised 61,075 43,747 45,827
Revenue reserve 3,773 3,541 3,907
---------------- ------------ ----------- -------------
Equity shareholders' funds 170,494 143,389 148,978
---------------- ------------ ----------- -------------
Net asset value per
Ordinary share (note 5) 330.7p 296.9p 302.6p
---------------- ------------ ----------- -------------
Cash Flow Statement
For the six months ended 31 March 2007
(Unaudited) (Unaudited) (Audited)
31 March 2007 31 March 2006 30 September
2006
£'000 £'000 £'000
------------------ ----------- ------------ -------------
Net cash inflow from
operating activities (note
7) 1,319 1,142 4,735
Servicing of finance
Loan and bank overdraft
interest paid (714) (571) (1,101)
Financial investment
Purchase of investments (12,153) (9,486) (17,227)
Sale of investments 71 - 6,741
------------------ ----------- ------------ -------------
Net cash outflow from
financial investment (12,082) (9,486) (10,486)
Equity dividends paid (2,068) (1,796) (4,939)
------------------ ----------- ------------ -------------
Net cash outflow before
financing (13,545) (10,711) (11,791)
Financing
Issue of new shares 7,236 8,819 11,772
Drawdown of loans 4,350 1,900 1,900
------------------ ----------- ------------ -------------
Net cash inflow from
financing 11,586 10,719 13,672
------------------ ----------- ------------ -------------
(Decrease)/increase in
cash (1,959) 8 1,881
------------------ ----------- ------------ -------------
Reconciliation of net cash flow to
movement in net debt
(Decrease)/increase in
cash resulting from
cashflows (1,959) 8 1,881
Increase in debt (4,350) (1,900) (1,900)
------------------ ----------- ------------ -------------
Movement in debt (6,309) (1,892) (19)
Net debt at start of
period/year (17,901) (17,882) (17,882)
------------------ ----------- ------------ -------------
Net debt at end of
period/year (24,210) (19,774) (17,901)
------------------ ----------- ------------ -------------
Notes to the interim accounts
1. Basis of Preparation
The financial statements have been prepared under the historical cost convention
except for the measurement of investments which are valued at fair value, and in
accordance with applicable accounting standards and with the Statement of
Recommended Practice 'Financial Statements of Investment Trust Companies' dated
December 2005.
The same accounting policies used for the year ended 30 September 2006 have been
applied.
2. Income
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended 30 September
31 March 2007 31 March 2006 2006
£'000 £'000 £'000
Investment income 2,579 2,320 6,467
Dividend paid from subsidiary - 645 645
Bank interest 12 37 43
------------ ---------- ------------
Total 2,591 3,002 7,155
------------ ---------- ------------
During the financial year ending 30 September 2006, an application was made to
have the Company's subsidiary undertaking, Tynepower Limited, struck off. The
company was subsequently dissolved on 30 January 2007.
3. Management fees
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
31 March 2007 31 March 2006 30 September
2006
£'000 £'000 £'000
Investment management fee 523 421 878
Unrecovered VAT thereon 92 74 154
----------- ---------- ------------
Total 615 495 1,032
----------- ---------- ------------
4. Return per Ordinary share
The total return per Ordinary share is based on the total return attributable to
equity shareholders of £16,348,000 (six months ended 31 March 2006: return of
£20,292,000; year ended 30 September 2006: return of £26,406,000) by 50,677,895
(six months ended 31 March 2006: 46,805,418; year ended 30 September 2006:
47,801,791), being the weighted average number of Ordinary shares in issue.
The revenue return per Ordinary share is calculated by dividing the net revenue
return of £1,934,000 (six months ended 31 March 2006: return of £2,404,000; year
ended 30 September 2006: return of £5,913,000) by 50,677,895 (six months ended
31 March 2006: 46,805,418; year ended 30 September 2006: 47,801,791), being the
weighted average number of Ordinary shares in issue.
The capital return per Ordinary share is calculated by dividing the net capital
gains attributable to Ordinary shareholders of £14,414,000 (six months ended 31
March 2006: £17,888,000; year ended 30 September 2006: gain of £20,493,000) by
the weighted average number of Ordinary shares in issue as above.
For the six months ended 31 March 2007, using the actual number of shares in
issue of 51,547,423 as at 31 March 2007, the total return per Ordinary share is
31.71p, split between revenue 3.75p and capital 27.96p.
5. Net asset value per share
The net asset value per Ordinary share is based on net assets attributable to
Ordinary shares of £170,494,000 (31 March 2006: £143,389,000 and 30 September
2006: £148,978,000) and on 51,547,423 Ordinary shares in issue (31 March 2006:
48,286,573 and 30 September 2006: 49,236,573).
6. Transaction costs
Purchase transaction costs for the six months ended 31 March 2007 were £80,000
(six months ended 31 March 2006: £66,000; year ended 30 September 2006:
£87,000).
Sales transaction costs for the six months ended 31 March 2007 were £nil (six
months ended 31 March 2006: £nil; year ended 30 September 2006: £nil).
7. Reconciliation of net total return before finance costs and taxation to net cash
inflow from operating activities
Six months ended 31 March 2007
£'000
Six months ended 31 March 2006
£'000
Year ended
30 September
2006
£'000
Total return before finance charges and taxation
Less:capital return before finance charges and taxation
16,985
(14,841)
20,889
(18,288)
27,540
(21,252)
Net revenue before finance costs and taxation
Increase in accrued income and prepayments
Increase in debtors
Increase/(decrease) in creditors
Distribution from subsidiary
Expenses charged to capital
2,144
(433)
(10)
30
-
(412)
2,601
(432)
(3)
(48)
(645)
(331)
6,288
(164)
-
(53)
(645)
(691)
Net cash inflow from operating activities
1,319
1,142
4,735
8. 2006 Accounts
The figures and financial information for the year ended 30 September 2006 are
extracted from the latest published accounts of the Company and do not
constitute statutory accounts for the year.
Those accounts have been delivered to the Registrar of Companies and included
the Report of the Auditors which was unqualified and did not contain a reference
to any matters to which the auditors drew attention by way of emphasis without
qualifying the report, and did not contain a statement under either Section 237
(2) or 237(3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END*
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