Half-year Report

RNS Number : 5916J

Troy Income & Growth Trust Plc

28 April 2022

 

To:    RNS 

From:  Troy Income & Growth Trust plc

LEI:  213800HLNMQ1R6VBLU75

Date:  28 April 2022

TROY INCOME & GROWTH TRUST PLC

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2022

The investment objective of Troy Income & Growth Trust is to provide shareholders with an attractive income yield and the prospect of income and capital growth through investing in a portfolio of predominantly UK equities.

Financial Highlights
	31 March 2022	30 September 2021	Change
Equity shareholders' funds	£234,503,000	£248,621,000	-5.7%
Net asset value per share	77.53p	77.72p	-0.2%
Share price (mid-market)	77.00p	76.60p	+0.5%
Discount to net asset value	(0.7)%	(1.4)%

Total Return* (for the periods to 31 March 2022)
	Six Months	One Year	Three Years	Five Years	Ten Years
Share price	+1.8%	+10.3%	+7.2%	+13.7%	+98.6%
Net asset value per share	+1.8%	+9.4%	+9.0%	+16.7%	+103.0%
FTSE All-Share Index	+4.7%	+13.0%	+16.8%	+25.8%	+99.6%
* Total return includes reinvesting the net dividend in the month that the share price goes ex-dividend.

INTERIM BOARD REPORT

Performance

The Company delivered a Net Asset Value ("NAV") per share total return of +1.8% and a share price total return of +1.8% over the six months to 31 March 2022. Over the same period, the FTSE All-Share Index ("the Index") produced a total return of +4.7%. The weighted average NAV total return for the AIC UK Equity Income sector over the six months to 31 March 2022 was +2.0%.

Performance was highly polarised over the two quarters of the period. In the first three months the Company's NAV rose +8.3% against an Index return of +4.3%, concluding a strong calendar 2021 for equity markets. However, over the latter quarter, trends driving stock markets shifted dramatically, with the Company's NAV falling -5.9% against the Index return of +0.5%. Such sharp moves for your Company are unusual against a long history of markedly lower volatility than the Index, and reflect a period of divergent performance and volatility in global markets, that was dominated by macroeconomic events.

The Company paid a dividend of 0.49p per share for each of the first and second quarters.  Further details of the Board's outlook for dividends are contained later in this report.

Background

We have seen material divergence in asset prices and themes leading stock markets over the past six months. News flow in the final quarter of 2021 was dominated by the emergence of the Omicron COVID-19 variant, however, markets proved relatively robust, to the benefit of your Company. The spectre of inflation was already looming in 2021, and, over the past three months, market sentiment has shifted further, driven by the inter-related factors of i) ongoing inflationary pressures as the world reopens at differing speeds, ii) central banks signalling meaningful interest rate rises in the year ahead in an attempt to control inflation and iii) the shocking invasion of Ukraine by Russia in February. In addition to the humanitarian and political crises, the latter has further exacerbated inflationary pressures. Across your Company's portfolio of investments, there is negligible direct exposure to Russia and Ukraine, although, of course, it is the indirect impacts that may be more widely felt.

Commodities have been in particular focus given Russia and Ukraine's roles as major producers of several key economic inputs, including oil, gas, and wheat. Global prices have spiked violently, perhaps no better exemplified than by oil, where prices rose to just over $100 (WTI) by the end of March, having spiked as high as $124 - an extraordinary shift from the historically low levels seen in the midst of the pandemic. Central banks have been stirred into decisive action in an attempt to curb these pressures. The UK base rate has risen to 0.75% after three increases in quick succession. Likewise, the upper bound of the US Federal Reserve's target rate has risen to 0.50%, with significant further rises likely this year. Market expectations have moved rapidly in anticipation of this tightening, sending government bond yields upwards to levels not seen since before the COVID-19 pandemic.

The short-term consequence for equity markets has been a marked bifurcation. The share prices of those companies involved in the production of raw materials have benefitted, at the expense of those dependent on them. At the same time, upwards revisions in market-wide discount rates have penalised more highly rated, higher growth stocks. The divergence is illustrated perhaps most starkly by the FTSE All-Share Index, where energy and mining companies have in aggregate risen double-digits in the first calendar quarter of 2022, while Information Technology and many high-quality companies favoured by the Managers in the Industrials and Consumer sectors have fallen heavily. Given the Index's high weighting to large energy and mining companies, it has achieved a positive return for the calendar year to date, while other equity indices, including the S&P 500 and MSCI World, have fallen. Given your Company's aversion to these cyclical and capital-intensive sectors, returns over this unusual period have been more similar to these latter two indices than to the FTSE All-Share Index.

Portfolio

Your Company is characterised by a low level of portfolio turnover, with the Managers targeting long holding periods in companies capable of consistent free cash flow growth, instead of attempting to shift exposures based on short-term dynamics. As a result, the focus remains on the core sectors that have typified the Company over the past 13 years. A major positive in times of weakness is the opportunity to modestly increase the level of activity, adding value through tactical purchases in preferred areas. Amidst times of rapidly changing expectations, markets can often overreact as they attempt to find a new equilibrium. The Managers have added to a handful of companies where they believe this to be the case, including quality industrials Diploma and Halma, the global franchise firm InterContinental Hotels Group, and 3i Infrastructure the holder of various highly resilient assets.

The core of the portfolio remains little changed, with the largest holdings in Consumer Staples (e.g. Diageo, Nestle, Unilever), B2B-focussed software (Experian, RELX, Paychex), Healthcare (AstraZeneca, GlaxoSmithKline), and quality industrials such as Croda. While the individual business models differ, all these companies share commonality in highly recurring revenue streams, clear structural growth drivers, pricing power, and resilient operations in times of economic stress.

Discount Control Mechanism

The Discount Control Mechanism ("DCM") was active during the period with the Company repurchasing 17.4m shares. These shares are now held in treasury. The DCM was implemented in 2010 in order to provide liquidity to both buyers and sellers of the Company's shares and to maintain the close linkage between the price of those shares and their underlying NAV. The DCM reduces discount volatility, which remains much lower than for the peer group as a whole. All transactions are NAV enhancing.

Dividends

The current quarterly dividend rate is 0.49p per share and the second quarterly dividend will be paid on 29 April 2022. The Board anticipates the payouts for the remainder of the year being at least maintained at this level, in the absence of unforeseen circumstances. The Managers anticipate robust growth in dividends from the underlying portfolio companies this year and, as the quantum becomes clearer, the Board expects to begin increasing the dividend to Shareholders while also rebuilding dividend cover.

Reduction in Management Fee

In January the Board was pleased to announce a reduction in the annual management fee payable to the Company's Investment Managers. With effect from 1 January 2022, the Company moved to a tiered annual management fee of 0.55% of net assets (i.e., excluding any gearing facility) up to £250 million and 0.50% of net assets above £250 million. This compares to the previous fee of 0.65% and so the new fee represents a reduction of 15% up to £250 million of net assets (£250,000 per annum cost saving) and a reduction of 23% on net assets greater than £250 million. This fee reduction reflects the commitment of both the Board and the Managers to creating value for Shareholders and to ensuring the Company's ongoing charges are competitive.

Outlook

The market reaction since the start of 2022 suggests investors were overly complacent about the risks of inflation and higher rates heading into the year. But it is important to recognise that expectations have adjusted meaningfully over a short period of time. Therefore, while probability is firmly weighted in favour of interest rates rising materially over the course of 2022, share prices have already moved significantly to try and price this in. The divergence of performance by sector and industry has been short and sharp. Commodity producers have been in favour whilst growth stocks have sold off but the Managers see reason for a broader shape to returns from here. The market-wide re-pricing to reflect changing rate expectations happens fast, and is the over-arching reason for the short-term relative underperformance of your Company.

The important question from here is how companies will fare operationally in the year ahead. The Managers have been busy dissecting results and meeting management teams over the past few months. The vast majority of companies are operating and executing admirably. This is reflected in the fact that many of the weaker share price performers in the near term are core holdings that have contributed most positively to returns over the past couple of years, and longer term. Experian, Croda, Unilever and Next are such examples. Some holdings, such as American Express, actively benefit from an inflationary environment, and some have moved rapidly to offset impacts, while others will take more time to work through the pressures. Importantly, the Managers see little that threatens the long-term durability and capacity for free cash flow and dividend growth from most of your Company's investments. This wider perspective is important - in uncertain times it is easy to shorten one's time horizon to the detriment of good long-term investing. The Managers are challenged to maintain this wider perspective and take advantage of opportunities where the stock market's reaction appears overdone.

Heightened uncertainty and volatility seem likely to characterise the months ahead. Markets are wrestling with the near-term outlook and conflicting headlines are all around. Cost of living concerns, the inverting yield curve, and increasingly hawkish signalling from central banks are pointed to as precursors of an imminent recession. Meanwhile, others highlight the positive economic data points, such as strong labour markets and healthy household balance sheets, as reasons to be more optimistic. Whatever emerges, the Managers see scope for higher quality stocks to fare better, particularly as inflation shocks inevitably start to pressure economic growth. The portfolio looks healthy and this is reflected in the expectation that almost every holding will report dividend growth this year, with many having already done so. The Company's unwavering focus on real growth, strong business models, and sustainable dividends should drive value creation, which can reasonably be expected to feed through into relatively attractive capital and income returns for Shareholders.

David Warnock

Chairman

27 April 2022

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 2021.

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 2022 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements.

For and on behalf of the Board

David Warnock

Chairman

27 April 2022

 

STATEMENT OF COMPREHENSIVE INCOME
		Six months ended 31 March 2022 (unaudited)			Six months ended 31 March 2021 (unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Profits on investments held at fair value
		-	882	882	-	2,806	2,806
Currency gains		-	21	21	-	1	1
Income	2	2,601	-	2,601	2,590	-	2,590
Investment management		(258)	(479)	(737)	(277)	(514)	(791)
fees
Other administrative		(351)	-	(351)	(306)	-	(306)
expenses
Finance costs of borrowing		-	-	-	(9)	(16)	(25)
		_______	______	_______	_______	______	_______
Profit before taxation		1,992	424	2,416	1,998	2,277	4,275
Taxation	3	(58)	-	(58)	(43)	-	(43)
		_______	______	_______	_______	______	_______
Profit for the period		1,934	424	2,358	1,955	2,277	4,232
		_______	______	_______	_______	______	_______
Earnings per Ordinary	5	0.61	0.14	0.75	0.57	0.66	1.23
share (pence)		_______	______	_______	_______	______	_______

The "Profit for the period" is also the Total Comprehensive Income for the period as defined in IAS1 (revised). The total columns of this statement represent the Statement of Comprehensive Income. 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 2021 (audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Profits on investments held at fair value		-	19,651	19,651
Currency losses		-	(11)	(11)
Income	2	6,969	-	6,969
Investment management fees		(564)	(1,047)	(1,611)
Other administrative expenses		(649)	-	(649)
Finance costs of borrowing		(10)	(18)	(28)
		______	_______	______
Profit before taxation		5,746	18,575	24,321
Taxation	3	(114)	-	(114)
		______	_______	______
Profit for the period		5,632	18,575	24,207
		______	_______	______
Earnings per Ordinary share (pence)	5	1.68	5.54	7.22
		______	_______	______

STATEMENT OF FINANCIAL POSITION		As at 31 March 2022 (unaudited) £'000	As at 31 March 2021 (unaudited) £'000	As at 30 September 2021 (audited) £'000
	Notes
Non-current assets
Ordinary shares	6	229,141	240,759	244,514
		______	______	______
Investments held at fair value through profit or loss		229,141	240,759	244,514
		______	______	______
Current assets
Accrued income and prepayments		878	792	968
Trade receivables		36	59	162
Cash and cash equivalents		5,388	2,878	3,951
		______	______	______
Total current assets		6,302	3,729	5,081
		______	______	______
Total assets		235,443	244,488	249,595
Current liabilities
Trade and other payables		(940)	(770)	(974)
		______	______	______
Total current liabilities		(940)	(770)	(974)
		______	______	______
Net assets		234,503	243,718	248,621
		______	______	______
Issued capital and reserves attributable to
equity holders
Called-up share capital	7	86,878	86,878	86,878
Share premium account		53,882	53,937	53,909
Special reserves		25,542	52,291	38,890
Capital reserve - unrealised		51,377	43,221	54,428
Capital reserve - realised		11,899	3,333	8,424
Revenue reserve		4,925	4,058	6,092
		______	______	______
Equity shareholders' funds		234,503	243,718	248,621
		______	______	______
Net asset value per Ordinary share (pence)	5	77.53	72.68	77.72
		______	______	______

STATEMENT OF CHANGES IN EQUITY
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)
Shares issued from treasury		-		-	-		-		-		-		-
Discount control costs		-		(27)	-		-		-		-		(27)
		______		_______	______		______		______		_______		______
Balance at 31 March 2022		86,878		53,882	25,542		51,377		11,899		4,925		234,503
		______		_______	______		______		______		_______		______
Six months ended 31 March 2021 (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 2020		86,878		53,960	60,366		41,678		2,599		6,205		251,686
Profit and total comprehensive income for the period		-		-	-		1,543		734		1,955		4,232
Equity dividends		-		-	-		-		-		(4,102)		(4,102)
Shares bought back into treasury		-		-	(8,512)		-		-		-		(8,512)
Shares issued from treasury		-		-	437		-		-		-		437
Discount control costs		-		(23)	-		-		-		-		(23)
		______		_______	______		______		______		_______		______
Balance at 31 March 2021		86,878		53,937	52,291		43,221		3,333		4,058		243,718
		______		_______	______		______		______		_______		______
Year ended 30 September 2021 (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 2020		86,878		53,960	60,366		41,678		2,599		6,205		251,686
Profit and total comprehensive income for the year		-		-	-		12,750		5,825		5,632		24,207
Equity dividends		-		-	(1,598)		-		-		(5,745)		(7,343)
Shares bought back into treasury		-		-	(20,315)		-		-		-		(20,315)
Shares issued from treasury		-		-	437		-		-		-		437
Discount control costs		-		(51)	-		-		-		-		(51)
		______		______	______		______		______		______		______
Balance at 30 September 2021		86,878		53,909	38,890		54,428		8,424		6,092		248,621
		______		_______	______		______		______		_______		______

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 2022 (unaudited) £'000	Six months ended 31 March 2021 (unaudited) £'000		Year ended 30 September 2021 (audited) £'000
Cash flows from operating activities
Investment income received	2,700	2,608		6,858
Administrative expenses paid	(1,182)	(1,115)		(2,264)
	______	______		______
Cash generated from operations	1,518	1,493		4,594
Finance costs paid	-	(25)		(28)
Taxation	(58)	1		(116)
	______	______		______
Net cash inflows from operating activities	1,460	1,469		4,450
	______	______		______
Cash flows from investing activities
Purchases of investments	(14,677)	(17,396)		(31,177)
Sales of investments	30,960	22,197		48,995
Capital distributions	-	-		43
	______	______		______
Net cash inflow from investing activities	16,283	4,801		17,861
	______	______		______
Net cash inflow before financing	17,743	6,270		22,311
	______	______		______
Financing activities
Proceeds of issue of shares	-	437		437
Cost of share buybacks	(13,199)	(8,261)		(19,948)
Dividends paid	(3,101)	(4,102)		(7,343)
Discount control costs	(27)	(23)		(51)
	______	______		______
Net cash outflow from financing activities	(16,327)	(11,949)		(26,905)
	______	______		______
Net increase/(decrease) in cash and short-term deposits	1,416	(5,679)		(4,594)
Cash and short term deposits at the start of the period	3,951	8,556		8,556
Effect of foreign exchange rate changes	21	1		(11)
	______	______		______
Cash and short term deposits at the end of the period	5,388	2,878		3,951
	______	______		______
Reconciliation of operating profit to operating cash flows
Profit before taxation	2,416	4,275		24,321
Add interest payable	-	25		28
Adjustments for:
Gains on investments	(882)	(2,806)		(19,651)
Currency (gains)/losses	(21)	(1)		11
Decrease/(increase) in accrued income and prepayments	89	24		(106)
Decrease in trade and other payables	(84)	(24)		(9)
	______	______		______
Cash generated from operations	1,518	1,493		4,594
	______	______		______

Distribution of Assets and Liabilities
	Valuation at 30 September 2021					Valuation at 31 March 2022
			Purchases	Sales	Appreciation/ (depreciation)
	£'000	%	£'000	£'000	£'000	£'000	%
Listed investments
Ordinary shares	244,514	98.4	14,579	(30,834)	882	229,141	97.7
Current assets	5,081	2.0				6,302	2.7
Current liabilities	(974)	(0.4)				(940)	(0.4)
	______	_____				______	_____
Net assets	248,621	100.0				234,503	100.0
	______	_____				______	_____
Net asset value per share	77.72p					77.53p
	______					______

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 2021 financial statements.
	(b)	Dividends payable
		Dividends are recognised on the ex-dividend date.

2.	Income	Six months ended 31 March 2022 £'000	Six months ended 31 March 2021 £'000	Year  ended 30 September 2021 £'000
	Income from listed investments
	UK dividend income	2,221	2,300	6,168
	Overseas dividend income	380	290	801
		______	______	______
		2,601	2,590	6,969
		______	______	______
	Other income from investment activity
	Deposit interest	-	-	-
		______	______	______
	Total income	2,601	2,590	6,969
		______	______	______

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 2022* £'000	Six months ended 31 March 2021+ £'000	Year  ended  30 September 2021++ £'000
	Revenue	1,934	1,955	5,632
	Dividends declared and payable from revenue	(3,017)	(3,336)	(4,901)
		______	______	______
		(1,083)	(1,381)	731
		______	______	______
	* 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 two interim dividends (both 0.49p) declared in respect of the financial year 2020/2021.
	++ Dividends declared relate to the first, second and fourth interim dividends declared in respect of the financial year 2020/2021 totalling 1.47p and paid from revenue. The third interim dividend of 0.49p was paid from the distributable capital reserve.

			Six months ended 31 March 2022		Six months ended 31 March 2021		Year  ended 30 September  2021
5.		Return and net asset value per share	p		p		p
		Revenue return	0.61		0.57		1.68
		Capital return	0.14		0.66		5.54
			______		______		______
		Total return	0.75		1.23		7.22
			______		______		______
		The figures above are based on the following:
			£'000		£'000		£'000
		Revenue return	1,934		1,955		5,632
		Capital return	424		2,277		18,575
			______		______		______
		Total return	2,358		4,232		24,207
			______		______		______
		Weighted average number of Ordinary shares in issue	313,192,468		343,918,976		335,250,510
			__________		__________		__________
		The net asset value per share is based on net assets attributable to shareholders of £234,503,000 (31 March 2021 - £243,718,000; 30 September 2021 - £248,621,000) and on 302,462,487 (31 March 2021 - 335,332,987; 30 September 2021 - 319,888,987) Ordinary shares in issue at the period end.
6.	Financial instruments
				Level 1 £'000		Level 2 £'000		Level 3 £'000	2022 Total £'000
	Financial assets at fair value through profit or loss as at 31 March 2022
	Investments			229,141		-		-	229,141
				______		______		______	______

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 2022.
The fair value of the Company's financial assets and liabilities as at 31 March 2022 was not materially different from the carrying value.

						As at 31 March 2022 (unaudited)		As at 31 March 2021 (unaudited)		As at 30 September 2021 (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					302,462,487		335,332,987		319,888,987
	Held in treasury					45,049,500		12,179,000		27,623,000
						____________		____________		___________
						347,511,987		347,511,987		347,511,987
						____________		____________		____________
	During the six months to 31 March 2022, the six months to 31 March 2021 and the year to 30 September 2021, the Company did not issue any new shares. During the six months to 31 March 2022 no Ordinary shares were re-issued from treasury. During the six months to 31 March 2021 the Company re-issued 600,000 shares from treasury for total proceeds of £437,000. During the year to 30 September 2021 the Company re-issued 600,000 shares from treasury for total proceeds of £437,000. 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 six months to 31 March 2021 11,920,000 shares were repurchased by the Company at a total cost of £8,512,000 and placed in treasury. During the year to 30 September 2021 27,364,000 shares were repurchased by the Company at a total cost of £20,315,000 and placed in treasury. During the six months to 31 March 2022, the six months to 31 March 2021 and the year to 30 September 2021, 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 2022 £'000			Six months ended 31 March 2021 £'000		Year  ended 30 September 2021 £'000
		Purchases		70			82		132
		Sales		11			8		17
				______			______		______
				81			90		149
				______			______		______

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 2022 and 31 March 2021 has not been audited.
	The information for the year ended 30 September 2021 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 27 April 2022.

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 2022.

For Troy Income & Growth Trust plc Juniper Partners Limited, Company Secretary 27 April 2022 Enquiries: 0131 378 0500

 

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