Half-year Report

Troy Income & Growth Trust Plc

04 May 2023

 

To:                   RNS                                                                                             

From:             Troy Income & Growth Trust plc

LEI:                  213800HLNMQ1R6VBLU75

Date:              4 May 2023

TROY INCOME & GROWTH TRUST PLC

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2023

The investment objective of Troy Income & Growth Trust plc is to achieve rising income and long-term capital growth through investment in a portfolio of predominantly UK equities.

Financial Highlights
	31 March 2023	30 September 2022	Change
Equity shareholders' funds	£186,264,000	£193,315,000	(3.6)%
Net asset value per share	72.05p	68.48p	5.2%
Share price (mid-market)	70.60p	67.00p	5.4%
Discount to net asset value	(2.0)%	(2.2)%

Total Return* (for the periods to 31 March 2023)
	Six Months	One Year	Three Years	Five Years	Ten Years
Share price	7.7%	(5.0)%	9.5%	11.5%	61.1%
Net asset value per share	8.9%	(3.6)%	16.0%	15.8%	68.1%
FTSE All-Share Index	12.3%	2.9%	47.4%	27.9%	75.9%
* Total return includes reinvesting the net dividend in the month that the share price goes ex-dividend.

INTERIM BOARD REPORT

Introduction

I am pleased to have joined Troy Income and Growth Trust plc ('the Company') as a non-executive Director and Chair. On behalf of myself and the rest of the Board, I would like to thank my predecessor, David Warnock, for his committed stewardship of the Company.

The Company has a clear proposition. It is a UK equity investment trust that invests in high-quality, predominantly UK-listed companies, capable of providing dividend growth every year. The Company aims to offer its Shareholders progressive annual dividend growth and good total returns with lower share price volatility than the FTSE All Share Index. Uniquely in the AIC UK Equity Income sector, it also offers Shareholders the ability to purchase and sell shares in the Company whenever they want at close to net asset value due to the implementation of a strict discount control mechanism.

Company Aims

Since my arrival, the Board has focused on setting clearer objectives for the Company and has spent a full day's working session with the Managers to gain their input. We have agreed the Company will aim to provide the following:

•    Share price total return above the FTSE All Share Index over a 5-year period

Recent performance has fallen short of this target, with the portfolio lagging the wider market return. Calendar year 2022 in particular was a challenging period, with the rapid rise in interest rates and inflation leading to significant polarisation within equity markets. Sectors typically eschewed by the Managers for their cyclicality and capital intensity, particularly Energy and Mining, performed very strongly. Concurrently, many highly profitable and growth-oriented companies held in the portfolio suffered share price declines. The Managers see a considerably more balanced market today, with the environment well-suited to the Company's quality, dividend growth focused approach. Recent results and dividends reported by holdings provide reassurance on the strength of the portfolio and the outlook for returns in a variety of market scenarios.

•    Dividend growth of 4% per annum for Shareholders

Having paid a dividend of 0.5p for the first quarter of the financial year, the Company paid 0.51p in the second quarter. This represents growth of c.4% on last year's second quarter dividend. It is the Board's intention going forward to target annual dividend growth of 4%, market conditions permitting.

Over recent years, the Company's portfolio has evolved. The Managers have prioritised companies able to deliver progressive dividend growth and sold out of companies with higher yields that lack the potential for long term dividend growth. It is encouraging for the Board to see income growth from the portfolio feeding through to revenues. Given the Managers' confidence in the robustness of the portfolio's dividends, and the Company's strong revenue reserves, the Board has decided to increase the rate of dividend growth for the Company.

•    Share price volatility lower than the FTSE All Share Index

The Managers emphasise high-quality, resilient, dividend-paying businesses that should drive consistent returns, avoiding the worst of market volatility. In particular, they believe a portfolio suffering fewer and less destructive drawdowns will be in a better position to compound returns over the long run. The Company has consistently fared better than the FTSE All-Share Index during market sell-offs and has continued to provide a return with lower share price volatility. The discount control mechanism has played an important role in this, ensuring the Company's share price remains closely aligned with net asset value.

The Board will closely monitor the Company's progress against these aims and will report on this in the annual report and accounts.

Performance

The Company delivered a Net Asset Value ('NAV') per share total return of +8.9% and a share price total return of +7.7% over the six months to 31 March 2023. Over the same period, the FTSE All Share Index produced a total return of +12.3%. The average NAV total return for the AIC UK Equity Income sector was +12.6% for the same period. Looking back over time, it has not been unusual for the Company to lag the index and peers in periods of particularly strong markets. The two most significant drags were the Company's holdings in large, low cyclicality Consumer Staples companies, and sterling's strong appreciation against the dollar impacting the Company's US-listed holdings.

There was strong performance from a range of large, stable holdings within the portfolio over the six-month period. RELX, Unilever, National Grid, Compass and AstraZeneca contributed most strongly to returns. Other areas of strength came from UK domestically focused businesses such as Next and Domino's Pizza, as these stocks recovered from the dislocation caused by the UK's September 2022 mini-budget. Another notable theme across markets over the period related to China's re-opening following over two years of strict COVID lockdowns. This was most obviously manifested within the portfolio by the sharp rise in the share price of InterContinental Hotels Group, a company with a strong exposure to Chinese travel. Across the broader index, commodity producers, which the Company does not hold, were also beneficiaries of this trend.

Background

The market continued to digest the impact of high inflation and higher interest rates over the six-month period. UK inflation (CPI growth) hit 11.1% in October 2022, the highest level since the 1970's. Whilst it is likely that this reading represented peak inflation for this current cycle, the path for inflation returning to the Bank of England's ('BOE') 2% target is highly uncertain. In response to such readings, the BOE continued to hike interest rates. On the 23 March 2023, the UK base rate was raised for the eleventh consecutive time to 4.25%, having been as low as 0.1% in December 2021.

The magnitude and speed of interest rate rises in response to inflation is having acute and unpredictable impacts on the market. In September 2022, we witnessed a crisis in UK pensions. More recently, in March 2023, significant stress emerged in the US regional banking system. This resulted in Silicon Valley Bank's collapse, in what was the first major US bank run since the global financial crisis. Other banks across the world, including Credit Suisse, suffered varying degrees of contagion and whilst there has been limited direct read across so far to the UK banks, these events provided a reminder as to the risks associated with highly levered business models.

The Managers have chosen not to invest in banks, due to the leverage and cyclicality inherent in their business models. Instead, they seek to invest in resilient, high-quality dividend growth companies that have relatively lower levels of share price volatility.

Portfolio

Large, high-quality, low cyclicality businesses continue to make up the core of the portfolio. Some of the Company's largest allocations include a c.30% weighting to Consumer Staples (e.g. Unilever, Diageo and Reckitt), c.20% to non-discretionary B2B-focused businesses (e.g. Compass Group, RELX and Bunzl) and c.10% to the relatively non-cyclical Healthcare sector (e.g. AstraZeneca and GSK).

Over the period, the Managers took advantage of market volatility to make new investments in London Stock Exchange Group, Sage, Smiths Group, Imperial Brands and Howden Joinery. All five are resilient, leading companies in their respective industries and have strong balance sheets and well-covered, growing dividends.

The Managers exited positions in Haleon, Halma and Aveva Group. Aveva was subject to a bid by its majority shareholder Schneider Electric, following which the position was sold. Haleon and Halma were sold on valuation and dividend yield grounds.

While the team follow a long-term, low turnover strategy, they will continue to seek to improve the growth of capital values and dividends within the portfolio.

Discount Control Mechanism

The discount control mechanism ('DCM') is one way in which the Company sets itself apart from other trusts in the sector. The DCM materially improves the liquidity of the Company's shares and ensures Shareholders can purchase and sell shares in the Company at a price that closely reflects the NAV. This is particularly important during times of market stress, where it is not uncommon for other trusts to trade at a material discount to their NAV's.

The Company has operated the DCM since Troy became the Company's Manager in 2009 and it continues to be a key aspect of the Company's proposition.

Dividends

The Board announced in March that the Company would pay a second interim dividend of 0.51p per share (2022 - 0.49p). This represents a step up in the rate of the Company's dividend growth to c.4% compared the prior year's second interim. Absent any unforeseen circumstances, it is the Board's objective to maintain this rate of dividend growth going forward.

This increase in the dividend signals the Managers' confidence in the underlying portfolio and the Board's strong desire to deliver dividend growth to Shareholders. The Company's dividend growth can be expected to be sustainable through a wide variety of market environments, with the current annual dividend covered by almost 11 months of revenue reserves.

Recent corporate results continue to demonstrate strong dividend growth from some significant portfolio holdings. Highlights included +10% growth in the final dividends from RELX and InterContinental Hotels Group, +8% from Croda and LSE Group, and +11% from Bunzl.

Outlook

The Managers believe that the lagged impact of higher interest rates and high inflation will continue to affect companies, consumers, and certain parts of the financial system. March brought significant volatility to markets, with pockets of stress emerging in the US and European banking systems. Regulators have acted fast to avoid contagion, but after more than a decade of low rates, the Managers are braced for further speed bumps, as well as possible recessions in Europe and the US.

The Board is confident that the companies held in the portfolio are resilient and adaptable. Over recent months, the Managers have digested encouraging results from a range of the Company's businesses. Strong operations are feeding through to strong dividend growth from several core holdings; 10% growth in RELX's latest dividend, 9% from Reckitt, 8% from Croda, and 10% from Bunzl - the latter marking 30 years of unbroken growth at a 10% compound annual rate. These are reassuring signals by management teams on the outlook for their businesses. All of these businesses have proven to be reliable, long-term income payers over many years, and are typical of the companies preferred by the Managers. The Board believes that the consistent, compounding dividend returns possible from such businesses support a robust outlook for total returns from your Company.

Bridget Guerin

Chairman

3 May 2023

Principal Risks and Uncertainties

The principal risks facing the Company relate to the Company's investment activities and include performance risk, market risk, resource risk and operational risk. Other risks faced by the Company include breach of regulatory rules which could lead to suspension of the Company's Stock Exchange Listing, financial penalties, or a qualified audit report. Breach of Section 1159 of the Corporation Tax Act 2010 could lead to the Company being subject to tax on capital gains.

An explanation of these principal risks and how they are managed is contained in the Strategic Report within the Annual Report and Accounts for the year ended 30 September 2022.

The Company's principal risks and uncertainties have not changed materially since the date of the Annual Report and no material changes are foreseen over the remainder of the year.

Going Concern

The Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. This review included consideration of the Company's investment objective, its principal risks, the nature and liquidity of the portfolio, current liabilities and expenditure forecasts.

The Company's investments consist mainly of readily realisable securities which can be sold to maintain adequate cash balances to meet expected cash flows. In assessing the Company's ability to meet its liabilities as they fall due, the Directors took into account the economic and market outlook. They also considered ongoing investor interest in the continuation of the Company, looking specifically at feedback from meetings and conversations with Shareholders by the Company's advisers, and the operation of the DCM, which the Directors believe enhances the Company's appeal to investors.

Based on their assessment and considerations, the Directors believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibility Statement

The Directors are responsible for preparing the half yearly financial report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

-     the condensed set of interim financial statements contained within the half yearly financial report have been prepared in accordance with International Accounting Standard 34; and

-     the Interim Board Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the financial year and description of principal risks and uncertainties for the remaining six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FCA's Disclosure Guidance and Transparency Rules.

The half yearly financial report for the six months to 31 March 2023 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements.

For and on behalf of the Board

Bridget Guerin

Chairman

3 May 2023

STATEMENT OF COMPREHENSIVE INCOME
		Six months ended 31 March 2023 (unaudited)			Six months ended 31 March 2022 (unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Capital
Gains on investments held at fair value
		-	12,337	12,337	-	882	882
Net foreign currency gains		-	18	18	-	21	21
Revenue
Income from listed investments	2	2,500	-	2,500	2,601	-	2,601
Other income		7	-	7	-	-	-
		_______	______	_______	_______	______	_______
		2,507	12,355	14,862	2,601	903	3,504
		_______	______	_______	_______	______	_______
Expenses
Investment management		(187)	(347)	(534)	(258)	(479)	(737)
fees
Other administrative		(324)	-	(324)	(351)	-	(351)
expenses
Finance costs of borrowing		(50)	(93)	(143)	-	-	-
		_______	______	_______	_______	______	_______
Profit before taxation		1,946	11,915	13,861	1,992	424	2,416
Taxation	3	(74)	-	(74)	(58)	-	(58)
		_______	______	_______	_______	______	_______
Total comprehensive income		1,872	11,915	13,787	1,934	424	2,358
		_______	______	_______	_______	______	_______
Earnings per Ordinary	5	0.68	4.35	5.03	0.61	0.14	0.75
share (pence)		_______	______	_______	_______	______	_______

The total column of this statement represents the Statement of Comprehensive Income prepared in accordance with UK-adopted international accounting standards.  The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. No operations were acquired or discontinued during the period.

STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)		Year ended 30 September 2022 (audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Capital
Losses on investments held at fair value		-	(25,889)	(25,889)
Net foreign currency gains		-	52	52
Revenue
Income from listed investments	2	6,666	-	6,666
Other income		-	-	-
		______	______	______
		6,666	(25,837)	(19,171)
		______	______	______
Expenses
Investment management fees		(465)	(864)	(1,329)
Other administrative expenses		(686)	-	(686)
Finance costs of borrowing		(19)	(35)	(54)
		______	_______	______
Profit before taxation		5,496	(26,736)	(21,240)
Taxation	3	(109)	-	(109)
		______	_______	______
Total comprehensive income/(expense)		5,387	(26,736)	(21,349)
		______	_______	______
Earnings per Ordinary share (pence)	5	1.77	(8.80)	(7.03)
		______	_______	______

STATEMENT OF FINANCIAL POSITION		As at 31 March 2023 (unaudited) £'000	As at 31 March 2022 (unaudited) £'000	As at 30 September 2022 (audited) £'000
	Notes
Non-current assets
Investments in ordinary shares	6	189,428	229,141	194,448
		______	______	______
Investments held at fair value through profit or loss		189,428	229,141	194,448
		______	______	______
Current assets
Accrued income and prepayments		850	878	890
Trade and other receivables		551	36	3,665
Cash and cash equivalents		3,027	5,388	4,710
		______	______	______
Total current assets		4,428	6,302	9,265
		______	______	______
Total assets		193,856	235,443	203,713
Current liabilities
Bank loan		(5,000)	-	(5,000)
Trade and other payables		(2,592)	(940)	(5,398)
		______	______	______
Total current liabilities		(7,592)	(940)	(10,398)
		______	______	______
Net assets		186,264	234,503	193,315
		______	______	______
Issued capital and reserves attributable to
equity holders
Called-up share capital	7	86,878	86,878	86,878
Share premium account		53,817	53,882	53,851
Special reserves		-	25,542	9,684
Capital reserve - unrealised		25,317	51,377	18,854
Capital reserve - realised		15,595	11,899	17,152
Revenue reserve		4,657	4,925	6,896
		______	______	______
Equity shareholders' funds		186,264	243,503	193,315
		______	______	______
Net asset value per Ordinary share (pence)	5	72.05	77.53	68.48
		______	______	______

STATEMENT OF CHANGES IN EQUITY
Six months ended 31 March 2023 (unaudited)				Share			Capital		Capital
		Share		premium	Special		reserve -		reserve -		Revenue
		capital		account	reserves		unrealised		realised		reserve		Total
		£'000		£'000	£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2022		86,878		53,851	9,684		18,854		17,152		6,896		193,315
Profit and total comprehensive income for the period		-		-	-		6,463		5,452		1,872		13,787
Equity dividends		-		-	-		-		-		(4,111)		(4,111)
Shares bought back into treasury		-		-	(16,693)		-		-		-		(16,693)
Discount control costs		-		(34)	-		-		-		-		(34)
Transfer from capital reserves		-		-	7,009		-		(7,009)		-		-
		______		_______	______		______		______		_______		______
Balance at 31 March 2023		86,878		53,817	-		25,317		15,595		4,657		186,264
		______		_______	______		______		______		_______		______
Six months ended 31 March 2022 (unaudited)				Share			Capital		Capital
		Share		premium	Special		reserve -		reserve -		Revenue
		capital		account	reserves		unrealised		realised		reserve		Total
		£'000		£'000	£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2021		86,878		53,909	38,890		54,428		8,424		6,092		248,621
(Loss)/profit and total comprehensive income for the period		-		-	-		(3,051)		3,475		1,934		2,358
Equity dividends		-		-	-		-		-		(3,101)		(3,101)
Shares bought back into treasury		-		-	(13,348)		-		-		-		(13,348)
Discount control costs		-		(27)	-		-		-		-		(27)
		______		_______	______		______		______		_______		______
Balance at 31 March 2022		86,878		53,882	24,542		51,377		11,899		4,925		234,503
		______		_______	______		______		______		_______		______
Year ended 30 September 2022 (audited)				Share			Capital		Capital
		Share		premium	Special		reserve -		reserve -		Revenue
		capital		account	reserves		unrealised		realised		reserve		Total
		£'000		£'000	£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2021		86,878		53,909	38,890		54,428		8,424		6,092		248,621
(Loss)/profit and total comprehensive income for the year		-		-	-		(35,574)		8,838		5,387		(21,349)
Equity dividends		-		-	(1,444)		-		-		(4,583)		(6,027)
Shares bought back into treasury		-		-	(27,872)		-		-		-		(27,872)
Discount control costs		-		(58)	-		-		-		-		(58)
Transfer from capital reserves		-		-	110		-		(110)		-		-
		______		______	______		______		______		______		______
Balance at 30 September 2022		86,878		53,851	9,684		18,854		17,152		6,896		193,315
		______		_______	______		______		______		_______		______

The revenue reserve, special reserves and capital reserve - realised are distributable. The full amount of each of these reserves is available for distribution.

CASH FLOW STATEMENT
	Six months ended 31 March 2023 (unaudited) £'000	Six months ended 31 March 2022 (unaudited) £'000		Year ended 30 September 2022 (audited) £'000
Cash flows from operating activities
Investment income received	2,570	2,700		6,876
Administrative expenses paid	(872)	(1,182)		(2,140)
	______	______		______
Cash generated from operations	1,698	1,518		4,736
Finance costs paid	(116)	-		(60)
Taxation	(106)	(58)		(179)
	______	______		______
Net cash inflows from operating activities	1,476	1,460		4,497
	______	______		______
Cash flows from investing activities
Purchases of investments	(23,280)	(14,677)		(51,123)
Sales of investments	42,290	30,960		73,668
Capital distributions received from investee companies	-	-		113
	______	______		______
Net cash inflow from investing activities	19,010	16,283		22,658
	______	______		______
Net cash inflow before financing	20,486	17,743		27,155
	______	______		______
Financing activities
Proceeds from loan	-	-		5,000
Cost of share buybacks	(19,365)	(13,199)		(25,365)
Dividends paid	(2,791)	(3,101)		(6,027)
Discount control costs	(31)	(27)		(56)
	______	______		______
Net cash outflows from financing activities	(22,187)	(16,327)		(26,448)
	______	______		______
Net (decrease)/increase in cash and cash equivalents	(1,701)	1,416		707
Cash and cash equivalents at the start of the period	4,710	3,951		3,951
Effect of foreign exchange rate changes	18	21		52
	______	______		______
Cash and cash equivalents at the end of the period	3,027	5,388		4,710
	______	______		______
Reconciliation of operating profit  to operating cash flows
Profit/(loss) before taxation	13,861	2,416		(21,240)
Add interest payable	143	-		54
Adjustments for:
(Gains)/losses on investments	(12,337)	(882)		25,889
Currency gains	(18)	(21)		(52)
Decrease in accrued income and prepayments	62	89		200
Decrease in trade and other payables	(13)	(84)		(115)
	______	______		______
Cash generated from operations	1,698	1,518		4,736
	______	______		______

Distribution of Assets and Liabilities
	Valuation at 30 September 2022					Valuation at 31 March 2023
			Purchases	Sales	Appreciation/ (depreciation)
	£'000	%	£'000	£'000	£'000	£'000	%
Listed investments
Ordinary shares	194,448	100.6	21,819	(39,176)	12,337	189,428	101.7
Current assets	9,265	4.8				4,428	2.4
Current liabilities	(10,398)	(5.4)				(7,592)	(4.1)
	______	_____				______	_____
Net assets	193,315	100.0				186,264	100.0
	______	_____				______	_____
Net asset value per share	68.48p					72.05p
	______					______

NOTES TO THE ACCOUNTS
1.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (IFRIC). They have also been prepared using the same accounting policies applied for the year ended 30 September 2022 financial statements
	(b)	Dividends payable
		Dividends are recognised on the ex-dividend date.

2.	Income	Six months ended 31 March 2023 £'000	Six months ended 31 March 2022 £'000	Year  ended 30 September 2022 £'000
	Income from listed investments
	UK dividend income	1,950	2,221	5,783
	Overseas dividend income	550	380	883
		______	______	______
		2,500	2,601	6,666
		______	______	______
	Other income from investment activity
	Deposit interest	7	-	-
		______	______	______
	Total income	2,507	2,601	6,666
		______	______	______

3.	Taxation
	The taxation charge for the period represents withholding tax suffered on overseas dividend income.

4.	Revenue and Dividends The following table shows the revenue for each period less the dividends declared and payable from revenue in respect of the financial period to which they relate.
		Six months ended 31 March 2023* £'000	Six months ended 31 March 2022+ £'000	Year  ended  30 September 2022++ £'000
	Revenue	1,872	1,934	5,387
	Dividends declared and payable from revenue	(2,700)	(3,017)	(4,430)
		______	______	______
		(828)	(1,083)	957
		______	______	______
	* Dividends declared relate to the first two interim dividends (of 0.50p and 0.51p) declared in respect of the financial year 2022/2023.
	+ Dividends declared relate to the first two interim dividends (both 0.49p) declared in respect of the financial year 2021/2022.
	++ Dividends declared relate to the first, second and fourth interim dividends declared in respect of the financial year 2021/2022 totalling 1.48p and paid from revenue. The third interim dividend of 0.49p was paid from the distributable capital reserve.

			Six months ended 31 March 2023		Six months ended 31 March 2022		Year  ended 30 September  2022
5.		Return and net asset value per share	p		p		p
		Revenue return	0.68		0.61		1.77
		Capital return	4.35		0.14		(8.80)
			______		______		______
		Total return	5.03		0.75		(7.03)
			______		______		______
		The figures above are based on the following:
			£'000		£'000		£'000
		Revenue return	1,872		1,934		5,387
		Capital return	11,915		424		(26,736)
			______		______		______
		Total return	13,787		2,358		(21,349)
			______		______		______
		Weighted average number of Ordinary shares in issue	273,794,251		313,192,468		303,874,343
			__________		__________		__________
		The net asset value per share is based on net assets attributable to shareholders of £186,264,000 (31 March 2022 - £234,503,000; 30 September 2022 - £193,315,000) and on 258,507,487 (31 March 2022 - 302,462,487; 30 September 2022 - 282,284,487) Ordinary shares in issue at the period end.
6.	Financial instruments
				Level 1 £'000		Level 2 £'000		Level 3 £'000	2023 Total £'000
	Financial assets at fair value through profit or loss as at 31 March 2023
	Investments			189,428		-		-	189,428
				______		______		______	______

In accordance with International Financial Reporting Standards, investments are classified using the fair value hierarchy: Level 1 reflects financial instruments quoted in an active market. Level 2 reflects financial instruments the fair value of which is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable markets.
Level 3 reflects financial instruments the fair value of which is determined in whole or in part using a valuation technique based on assumptions that are not supported by prices from observable market transactions in the same instrument and not based on available observable market data.
There were no transfers of investments between levels during the six months ended 31 March 2023.
The fair value of the Company's financial assets and liabilities as at 31 March 2023 was not materially different from the carrying value.

						As at 31 March 2023 (unaudited)		As at 31 March 2022 (unaudited)		As at 30 September 2022 (audited)
7.	Ordinary share capital
	Ordinary shares of 25p each					No. of shares		No. of    shares		No. of shares
	Allotted, called-up and fully paid					258,507,487		302,462,487		282,284,487
	Held in treasury					89,004,500		45,049,500		65,227,500
						____________		____________		___________
						347,511,987		347,511,987		347,511,987
						____________		____________		____________
	During the six months to 31 March 2023, the six months to 31 March 2022 and the year to 30 September 2022, the Company did not issue any new shares and no shares were re-issued from treasury. During the six months to 31 March 2023 23,777,000 shares were repurchased by the Company at a total cost of £16,693,000 and placed in treasury. During the six months to 31 March 2022 17,426,500 shares were repurchased by the Company at a total cost of £13,348,000 and placed in treasury. During the year to 30 September 2022 37,604,500 shares were repurchased by the Company at a total cost of £27,872,000 and placed in treasury. During the six months to 31 March 2023, the six months to 31 March 2022 and the year to 30 September 2022, no Ordinary shares were purchased for cancellation.
8.		Transaction costs
		During the period expenses were incurred in acquiring or disposing of investments classified as held at fair value through profit or loss. These have been expensed through capital and are included within profits on investments in the Statement of Comprehensive Income. The total costs were as follows:
				Six months ended 31 March 2023 £'000			Six months ended 31 March 2022 £'000		Year  ended 30 September 2022 £'000
		Purchases		92			70		243
		Sales		14			11		29
				______			______		______
				106			81		272
				______			______		______

9.	Publication of non-statutory accounts
	The financial information contained in this Half Yearly Financial Report does not constitute statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the six months ended 31 March 2023 and 31 March 2022 has not been audited.
	The information for the year ended 30 September 2022 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

10.	Approval
	This Half Yearly Financial Report was approved by the Board on 3 May 2023.

11.	This Half Yearly Financial Report will shortly be available for viewing on the Company's website (www.tigt.co.uk) and will be posted to shareholders in May 2023.

For Troy Income & Growth Trust plc Juniper Partners Limited, Company Secretary 3 May 2023 Enquiries: 0131 378 0500

 

END