Finsbury Growth & Income Trust PLC - Half-year Report
PR Newswire
LONDON, United Kingdom, May 29
Legal Entity Identifier: 213800NN42KX2LG1GQ40
29 May 2025
LONDON STOCK EXCHANGE ANNOUNCEMENT
Finsbury Growth & Income Trust PLC
Unaudited Half Year Results For The Six Months Ended
31 March 2025
This Announcement is not the Company's Half Year Report & Accounts. It is an abridged version of the Company's full Half Year Report & Accounts for the six months ended 31 March 2025. The full Half Year Report & Accounts, together with a copy of this announcement, will shortly be available on the Company's website at www.finsburygt.com where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.
The Company's Half Year Report & Accounts for the six months ended 31 March 2025 has been submitted to the UK Listing Authority, and will shortly be available for inspection on the National Storage Mechanism (NSM): https://data.fca.org.uk/#/nsm/nationalstoragemechanism
COMPANY PERFORMANCE
AS AT 31 MARCH 2025
KEY FACTS |
|
|
952.4p | 2.1% | 4.2% |
Net Asset Value Per Share† (change 1.0%) | Net Asset value per share total return*^ 30 September 2024: 8.2% | Share price total return*^ 30 September 2024: 3.4% |
886.0p | £1.383bn | 8.8p |
Share price 30 September 2024: 861.0p (change 2.9%) | Shareholders' funds† 30 September 2024: £1.582 bn (change (12.6%)) | First interim dividend per share (change 0%) |
7.0% | 0.6% | 3.2% |
Discount of share price to net asset value per share^ | Ongoing charges p.a.^ 30 September 2024: 0.6% | Net cash^ 30 September 2024: (0.7% geared) |
12.7p | 84.4% | 145,224,192 |
Return per share† 31 March 2024: 45.6p | Active Share^* 30 September 2024: 84.1% | Number of shares in issue (excluding 79,767,111 shares held (change (13.4%)) |
^ Alternative Performance Measure (see glossary)
† UK GAAP Measure
* Source - Morningstar
** Source - FTSE International Limited ("FTSE") © FTSE 2025* (See glossary)
COMPANY SUMMARY
Finsbury Growth & Income Trust PLC is a listed investment company; its shares traded on the main market of the London Stock Exchange. The Company is a member of the Association of Investment Companies ("AIC").
INVESTMENT OBJECTIVE AND PERFORMANCE MEASUREMENT
The Company aims to achieve capital and income growth and to provide Shareholders with a total return in excess of that of the FTSE All-Share Index (the Company's benchmark).
INVESTMENT POLICY
The Company's investment policy is to invest principally in the securities of companies either listed in the UK or otherwise incorporated, domiciled or having significant business operations within the UK. Up to a maximum of 20% of the Company's portfolio, at the time of acquisition, can be invested in companies not meeting these criteria.
The portfolio will normally comprise up to 30 investments. This level of concentration is likely to lead to an investment return which is materially different from the Company's benchmark index and is likely to be more volatile and carry more risk*
Unless driven by market movements, securities in FTSE 100 companies and comparable companies listed on an overseas stock exchange will normally represent between 50% and 100% of the portfolio; securities in FTSE 350 companies and comparable companies listed on overseas stock exchanges will normally represent at least 70% of the portfolio.
The Company will not invest more than 15% of the Company's net assets, at the time of acquisition, in the securities of any single issuer. For the purposes of this limit only, net assets shall exclude the value of the Company's investment in Frostrow Capital LLP.
The Company does not and will not invest more than 15%, in aggregate, of the value of the gross assets of the Company in other listed closed ended investment companies. Further, the Company does not and will not invest more than 10%, in aggregate, of the value of its gross assets in other listed closed ended investment companies except where the investment companies themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed ended investment companies.
The Company has the ability to invest up to 25% of its gross assets in preference shares, bonds and other debt instruments, although no more than 10% of any one issue may be held.
In addition, a maximum of 10% of the Company's gross assets can be held in cash, where the Portfolio Manager believes market or economic conditions make equity investment unattractive or while seeking appropriate investment opportunities or to maintain liquidity.
The Company's gearing policy is that gearing will not exceed 25% of the Company's net assets.
No investment will be made in any fund or investment company managed by Lindsell Train Limited without the prior approval of the Board.
In accordance with the UK Listing Rules of the Financial Conduct Authority ("FCA"), the Company can only make a material change to its investment policy with the approval of its Shareholders and HMRC.
* The Company publishes its Active Share scores in its monthly fact sheet for investors and in both the annual and half-yearly reports to highlight how different the portfolio is from the Company's benchmark index.
PERFORMANCE
Whilst performance is measured against the FTSE All-Share Index, the Company's portfolio is constructed and managed without reference to a stock market index with the Portfolio Manager selecting investments based on their assessment of their long-term value.
The Company's net assets as at 31 March 2025 were £1,383 million (30 September 2024: £1,582 million) and the market capitalisation was £1,286.7 million (30 September 2024: £1,444.0 million).
MANAGEMENT
Frostrow Capital LLP ("Frostrow") is the appointed Alternative Investment Fund Manager ("AIFM") and provides company management, company secretarial, administrative and marketing services. Lindsell Train Limited ("Lindsell Train") is the appointed Portfolio Manager.
DIVIDENDS
An interim dividend of 8.8p per share (2024: 8.8p) was paid on 16 May 2025 to Shareholders who were registered at the close of business on 4 April 2025. The associated ex-dividend date was 3 April 2025.
It is expected that a second interim dividend will be declared and paid in the Autumn.
DIVIDEND POLICY
The Company's aim is to increase or at least maintain the total dividend each year. A first interim dividend is typically paid in May and a second interim in November in lieu of a final dividend.
The level of dividend growth is dependent upon the growth and performance of the companies within the investment portfolio. The decision as to the level of dividend paid takes into account the income forecasts maintained by the Company's AIFM and Portfolio Manager as well as the level of revenue reserves. These forecasts consider dividends earned from the portfolio together with predicted future earnings and are regularly reviewed by the Board.
All dividends have been distributed from current year income and revenue reserves.
CAPITAL STRUCTURE
At 31 March 2025 the Company had 145,224,192 shares of 25p each in issue (excluding 79,767,111 shares held in Treasury) (30 September 2024: 167,717,668; excluding 57,273,635 shares held in Treasury). During the six months under review 22,493,476 shares were bought back to be held in Treasury. Since the end of the half year to 27 May 2025, being the latest practicable date, a further 965,860 shares were bought back to be held in Treasury.
GEARING
As at the half year end the Company was in the third year of its three-year secured fixed term revolving credit facility (the "facility") of £60 million with Scotiabank Europe PLC ("Scotiabank") and there is an additional £40 million facility available if required. As at 31 March 2025 £29.2 million has been drawn down from this facility.
REVIEWS
Chairman's Statement
I am delighted to have been appointed as Chairman of Finsbury Growth & Income Trust PLC. It is a privilege to lead a company with such a strong heritage in its centenary year.
During the period, Simon Hayes retired from the Board, having joined the Board in June 2015 and served as Chairman since February 2021. We extend our heartfelt gratitude to Simon for his exceptional stewardship and significant contributions to the Company during his tenure as Chairman and we wish him the very best for the future.
PERFORMANCE
In the six months to 31 March 2025 the Company delivered a net asset value per share total return^ of 2.1% and a share price total return^ of 4.2%. The Company's benchmark, the FTSE All-Share Index, which, measured on a total return basis, rose by 4.1% over the same period.
Although the Company's portfolio has slightly underperformed its benchmark in the period, discount shrinkage, which saw the discount tighten from 8.7% to 7.0%, supported by the Company's continued share buy-back activity, means the share price return was marginally ahead of benchmark.
The performance of the portfolio remains the paramount concern of your Board. For much of the period under review, the portfolio delivered strong relative and absolute returns only to give up ground as the period end approached, in response to rising concerns over the impact of US tariff reforms which were announced in early April.
Whilst the Board acknowledges that the performance of the Company in recent years has been disappointing there are encouraging signs of recovery in a number of companies within the portfolio and in prospects for the UK market as a whole. The high quality companies and appealing valuations available in the UK market are reflected in the portfolio, which ended the period 100% invested in UK listed or UK focused companies.
During these periods of heightened volatility, the Board has been supportive of the Portfolio Manager's approach, which has been to stick to its approach of buying attractively priced, high quality businesses with hard-to-replicate data assets or brands, rather than attempting to create value by timing the purchase or sale of holdings in fast moving markets.
The Board notes the increasing risk faced by some companies within the portfolio as a result of the threat of global tariffs and evermore economic uncertainty and will continue to monitor these closely.
Further information on the Company's portfolio can be found in our Portfolio Manager's Review.
CONTINUATION OF THE COMPANY
We are grateful for Shareholders continued support but do not take it for granted. As stated in the Annual Report, and as part of broader shareholder engagement, your Board will hold a continuation vote at the Company's Annual General Meeting in January 2026. This will offer all Shareholders, in particular our retail shareholders who represent a significant proportion of our register, an opportunity to express their support, or otherwise, for the continuation of the Company with its current investment strategy. The Board looks forward to engaging with major shareholders in the months ahead.
SHARE CAPITAL
The Board continues to keep the Company's discount under close review and is committed to buying back its own shares when the discount approaches or exceeds the 5% level. While share buy-backs will not necessarily prevent the discount from widening beyond this level, the Board believes that buybacks enhance the net asset value per share for remaining shareholders, provide some additional liquidity and help to mitigate discount volatility which can damage the return earned by shareholders when compared with the Company's NAV return.
During the six months under review the Company has bought back a total of 22,493,476 shares into Treasury at a cost of approximately £200 million. As at 31 March 2025 the discount was 7.0% and at the time of writing (at the close of the UK market on 27 May 2025), the discount was 7.6%. Over the six months the discount averaged 7.5%, compared with 7.4% over the course of the previous financial year.
Since 1 April 2025 to the date of this report, a further 965,860 shares were bought back into Treasury at a cost of £8.5 million. As at 27 May 2024, the Company had 144,258,332 shares in issue (excluding 80,732,971 shares held in Treasury).
DIVIDEND
The Board declared a first interim dividend of 8.8p per share (2024: 8.8p) with respect to the year ending 30 September 2025. The dividend was paid on Friday, 16 May 2025 to shareholders who were on the register on Friday, 4 April 2025. The associated ex-dividend date was Thursday, 3 April 2025.
The Board expects to declare the second interim dividend for the year ending 30 September 2025 in the Autumn.
OUTLOOK
Your Company continues to own what we and the Portfolio Manager believe to be a portfolio of high-quality companies, with durable and market-leading franchises or data assets which offer the potential for significant long-term returns.
The Board believes this combination of a portfolio of world-class companies held for the long term and attractively priced offers real grounds for optimism and the capacity to generate significant returns for shareholders.
Pars Purewal
Chairman
28 May 2025
^ Alternative Performance Measure (see glossary).
PORTFOLIO MANAGER'S REVIEW
In recent reports I have emphasised the material shift in the composition of your portfolio since 2020. One way of conveying the implications of that shift is to note the marked increase in exposure to UK companies that sell software services or data-analytics tools to professionals and businesses around the world.
That shift has not yet produced the sustained improvement in investment performance that all FGT Shareholders want to see. However, I am sure that relatively speaking it has meant your portfolio is better prepared to withstand the effects of tariffs and possible trade wars than it otherwise would have been. It is not clear that tariffs matter at all for major portfolio holdings, such as RELX, London Stock Exchange Group or Experian, because their products are digital, not physical. Moreover, the subscription-type revenues earned by that trio and other important holdings, such as Rightmove and Sage, are reassuringly predictable. The portfolio exposure to such businesses, and I include here the holdings in the two asset management companies, that also charge recurring fees for the provision of services and advice, is getting on for 70%.
Of the remainder of the portfolio there are two big investments in companies that do make products sold globally. These are by position size, Unilever and Diageo; combined over 20% of the whole. In fact, Unilever has recently been able to reassure investors that its exposure to any permanent US-imposed tariffs is relatively modest. Only 20% of Unilever's revenues are derived from the US and a proportion of those are manufactured there and therefore not subject to tariffs. Moreover, Unilever's brand portfolio, of staple products regularly replenished by consumers all around the world, is likely to prove resilient if times do indeed get tougher. For Diageo, the situation is, ostensibly, less reassuring. At the heart of the investment debate about Diageo is the fact the company derives half of its profits from the US and it has the misfortune that two of its most important and popular products there are Mexican tequila and Canadian whiskey, both now at risk of tariff imposition. Nonetheless, we have maintained the weighting to Diageo shares and continue to look for opportunities to add to them. There are two reasons for this. First, the company has global scale and unarguably world-class brands.
Tariffs will eventually be repealed or their effects weaken and throughout we expect Diageo to gain share and get stronger, while weaker competitors struggle. Second, tariffs are only one part of President Trump's economic policy. In addition, he has promised big tax cuts for US citizens and the prospect of a booming domestic economy. If such conditions eventuate, we'd hope Diageo's exposure to US consumers would be seen as a strength, not, as currently, a weakness.
The recent market weakness in reaction to tariff concerns, coupled with the timely receipt of the proceeds of the Hargreaves Lansdown sale to private equity in April, has given us an opportunity to initiate and add to new holdings. Two of these, holdings, Clarkson and Intertek, share a number of features in common. They are both service, not manufacturing, companies - in ship-broking and testing and assurance. Both are the best or amongst the best at what they do in the world. In other words, they contradict the narrative that the London stock market lacks world-class companies. Both, too, have been very rewarding investments so far in the 21st century, as they have capitalized on their long-term growth opportunities. Nonetheless, the CEOs of both have recently told us they believe the relevance of their services is becoming ever more vital to their customers as we get deeper into the third decade of the century and therefore the opportunities for business and share price gains are better than ever. Finally, a variety of factors has depressed the shares of both over the last 12 months, not least the threat of a trade war, and this has enabled us to build the holdings at attractive prices, we believe.
I look at FGT's portfolio and I think - here is a collection of outstanding, predominantly global, companies, with obvious growth opportunities. Then I look at our NAV performance and wonder why it isn't better. Then I think to myself I should probably buy some more FGT shares for myself. I do hope all Shareholders will be rewarded for their patience, including me.
Nick Train
Lindsell Train Limited
Portfolio Manager
28 May 2025
INVESTMENTS AS AT 31 MARCH 2025
SECTOR | INVESTMENTS | FAIR VALUE 1 OCTOBER 2024 £'000 | NET INVESTMENTS £'000 | CAPITAL APPRECIATION/ (DEPRECIATION) £'000 | FAIR VALUE 31 MARCH 2025 £'000 | % OF INVESTMENTS | |
· | CD | RELX | 195,714 | (33,653) | 19,389 | 181,450 | 13.6 |
· | F | London Stock Exchange | 207,057 | (52,644) | 23,598 | 178,011 | 13.3 |
· | I | Experian Group | 215,320 | (25,247) | (18,042) | 172,031 | 12.8 |
· | T | Sage Group | 161,981 | (23,938) | 30,378 | 168,421 | 12.6 |
· | CS | Unilever | 185,755 | (15,175) | (8,954) | 161,626 | 12.1 |
· | CS | Diageo | 174,284 | 1,831 | (39,566) | 136,549 | 10.2 |
· | CD | Rightmove | 84,893 | 5,966 | 9,616 | 100,475 | 7.5 |
· | F | Schroders | 75,991 | (8,255) | (555) | 67,181 | 5.0 |
· | CD | Burberry Group | 50,535 | (7,510) | 6,216 | 49,241 | 3.7 |
· | CS | Fevertree Drinks | 28,714 | (1,195) | (638) | 26,881 | 2.0 |
|
| Top 10 Investments |
|
|
| 1,241,866 | 92.8 |
· | I | Intertek | - | 22,839 | 1,035 | 23,874 | 1.8 |
· | CS | Mondelez International # | 22,077 | (20,995) | (1,082) | - | - |
· | CS | A.G. Barr | 22,023 | (2,440) | (353) | 19,230 | 1.4 |
· | CS | Remy Cointreau ^ | 19,194 | (16,441) | (2,753) | - | - |
· | F | Rathbone Brothers | 17,012 | (2,102) | (2,043) | 12,867 | 1.0 |
· | CD | Manchester United # | 17,257 | (3,196) | (2,129) | 11,932 | 0.9 |
· | I | Clarkson | - | 12,914 | (2,255) | 10,659 | 0.8 |
· | F | The Lindsell Train Investment Trust plc | 7,640 | - | 400 | 8,040 | 0.6 |
· | CD | Celtic * | 5,728 | - | (171) | 5,557 | 0.4 |
· | F | Frostrow Capital LLP** | 3,225 | - | - | 3,225 | 0.2 |
· | CD | Young & Co's Brewery (non-voting) | 3,460 | (2,118) | (257) | 1,085 | 0.1 |
· | CD | Cazoo # | - | - | - | - | - |
· | CS | Heineken + | 5,347 | (5,260) | (87) | - | - |
· | F | Hargreaves Lansdown | 90,011 | (89,535) | (476) | - | - |
· |
| Total Investments | 1,593,218 | (266,154) | 11,271 | 1,338,335 | 100.0 |
* Includes Celtic 6% cumulative convertible preference shares, fair value £355,000 (Sept 2024: £363,000)
** Includes Frostrow Capital LLP AIFM Investment, fair value £125,000 (Sept 2024: £125,000)
# Listed in the United States
^ Listed in France
+ Listed in Netherlands
? Unquoted
FINANCIAL STATEMENTS
INCOME STATEMENT
for the six months ended 31 March 2025
| (UNAUDITED) SIX MONTHS ENDED | (UNAUDITED) SIX MONTHS ENDED | ||||
| REVENUE | CAPITAL | TOTAL | REVENUE | CAPITAL | TOTAL |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Gains on investments at fair value through |
|
|
|
|
|
|
- | 11,271 | 11,271 | - | 79,283 | 79,283 | |
Currency translations | - | (14) | (14) | - | (80) | (80) |
Income (note 2) | 13,280 | - | 13,280 | 17,339 | - | 17,339 |
AIFM and Portfolio Management fees (note 3) | (995) | (2,983) | (3,978) | (1,184) | (3,552) | (4,736) |
Other expenses | (594) | - | (594) | (613) | - | (613) |
Return on ordinary activities before finance charges and taxation | 11,691 | 8,274 | 19,965 | 15,542 | 75,651 | 91,193 |
Finance charges | (234) | (703) | (937) | (303) | (910) | (1,213) |
Return on ordinary activities before taxation | 11,457 | 7,571 | 19,028 | 15,239 | 74,741 | 89,980 |
Taxation on ordinary activities | 3 | - | 3 | (3) | - | (3) |
Return on ordinary activities after taxation | 11,460 | 7,571 | 19,031 | 15,236 | 74,741 | 89,977 |
Return per share - basic and diluted | 7.6p | 5.1p | 12.7p | 7.7p | 37.9p | 45.6p |
The "Total" column of this statement represents the Company's Income Statement.
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; therefore no separate Statement of Comprehensive Income has been presented.
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2025
(Unaudited) Six months ended | CALLED UP SHARE CAPITAL £'000 | SPECIAL DISTRIBUTABLE RESERVE £'000 | CAPITAL REDEMPTION RESERVE £'000 | CAPITAL RESERVE £'000 | REVENUE RESERVE £'000 | TOTAL SHAREHOLDERS FUNDS £'000 |
At 1 October 2024 | 56,248 | 1,050,008 | 3,453 | 412,490 | 59,969 | 1,582,168 |
Net return from | - | - | - | 7,571 | 11,460 | 19,031 |
Second interim | - | - | - | - | (18,097) | (18,097) |
Repurchase of shares into Treasury | - | (199,989) | - | - | - | (199,989) |
At 31 March 2025 | 56,248 | 850,019 | 3,453 | 420,061 | 53,332 | 1,383,113 |
(Unaudited) Six months ended | CALLED UP SHARE CAPITAL £'000 | SHARE PREMIUM ACCOUNT £'000 | CAPITAL REDEMPTION RESERVE £'000 | CAPITAL RESERVE £'000 | REVENUE RESERVE £'000 | TOTAL SHAREHOLDERS FUNDS £'000 |
At 1 October 2023 | 56,248 | 1,099,847 | 3,453 | 604,212 | 58,969 | 1,822,729 |
Net return from ordinary activities | - | - | - | 74,741 | 15,236 | 89,977 |
Second interim dividend (10.5p per share) for the year ended | - | - | - | - | (21,454) | (21,454) |
Repurchase of shares into Treasury | - | - | - | (143,951) | - | (143,951) |
At 31 March 2024 | 56,248 | 1,099,847 | 3,453 | 535,002 | 52,751 | 1,747,301 |
STATEMENT OF FINANCIAL POSITION
as at 31 March 2025
| (UNAUDITED) | (AUDITED) |
| 31 MARCH | 30 SEPTEMBER |
| 2025 | 2024 |
| £'000 | £'000 |
Fixed assets |
|
|
Investments held at fair value through profit or loss (note 1) | 1,338,335 | 1,593,218 |
Current assets |
|
|
Debtors | 77,915 | 7,509 |
Cash and cash equivalents | 2,114 | 14,639 |
| 80,029 | 22,148 |
Current liabilities |
|
|
Creditors: amounts falling due within one year | (6,051) | (3,998) |
Bank loan | (29,200) | - |
| (35,251) | (3,998) |
Net current assets | 44,778 | 18,150 |
Total assets less current liabilities | 1,383,113 | 1,611,368 |
Creditors: amounts falling due after one year |
|
|
Bank loan | - | (29,200) |
Net assets | 1,383,113 | 1,582,168 |
Capital and reserves |
|
|
Called up share capital | 56,248 | 56,248 |
Special distributable reserve | 850,019 | 1,050,008 |
Capital redemption reserve | 3,453 | 3,453 |
Capital reserve | 420,061 | 412,490 |
Revenue reserve | 53,332 | 59,969 |
Total Shareholders' funds | 1,383,113 | 1,582,168 |
Net asset value per share (note 5) | 952.4p | 943.4p |
STATEMENT OF CASH FLOWS
for the six months ended 31 March 2025
| (UNAUDITED) | (UNAUDITED) |
| 31 MARCH | 31 MARCH |
| 2025 | 2024 |
| £'000 | £'000 |
Net cash inflow from operating activities before interest (note 7) | 8,440 | 12,110 |
Investing activities |
|
|
Purchase of investments | (43,658) | (76,946) |
Sale of investments | 239,482 | 226,391 |
Net cash inflow from investing activities | 195,824 | 149,445 |
Financing activities |
|
|
Equity dividends paid | (18,097) | (21,454) |
Repayment of loans | - | (7,500) |
Repurchase of Shares into Treasury | (197,741) | (141,968) |
Interest paid | (937) | (1,213) |
Net cash outflow from financing activities | (216,775) | (172,135) |
Decrease in cash and cash equivalents | (12,511) | (10,580) |
Currency translations | (14) | (80) |
Cash and cash equivalents at 1 October | 14,639 | 17,426 |
Cash and cash equivalents at 31 March | 2,114 | 6,766 |
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The condensed Financial Statements for the six months to 31 March 2025 have been prepared under the historical cost convention, modified to include the revaluation of investments and in accordance with FRS 104 'Interim Financial Reporting' and with the AIC's Statement of Recommended Practice ("the SORP") for Investment Trust Companies and Venture Capital Trusts dated July 2022 and the Companies Act 2006.
The accounting policies used for the year ended 30 September 2024 have been applied.
FAIR VALUE
Under FRS 102 and FRS 104 investments have been classified using the following fair value hierarchy:
Level 1 - quoted prices in active markets
Level 2 - prices of recent transactions for identical instruments
Level 3 - valuation techniques using observable and unobservable market data.
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:
| (UNAUDITED) AS AT 31 MARCH 2025 | |||
AS AT 31 MARCH 2025 | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
£'000 | £'000 | £'000 | £'000 | |
Equity investments | 1,329,553 | 5,202 | - | 1,334,755 |
Limited liability partnership interest (Frostrow) | - | - | 3,100 | 3,100 |
AIFM Capital contribution (Frostrow) | - | - | 125 | 125 |
Preference share investments | - | 355 | - | 355 |
| 1,329,553 | 5,557 | 3,225 | 1,338,335 |
| (AUDITED) AS AT 30 SEPTEMBER 2024 | |||
AS AT 30 SEPTEMBER 2024 | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL |
£'000 | £'000 | £'000 | £'000 | |
Equity investments | 1,584,265 | 5,365 | - | 1,589,630 |
Limited liability partnership interest (Frostrow) | - | - | 3,100 | 3,100 |
AIFM Capital contribution (Frostrow) | - | - | 125 | 125 |
Preference share investments | - | 363 | - | - |
| 1,584,265 | 5,728 | 3,225 | 1,593,218 |
2. INCOME
| (UNAUDITED) | (UNAUDITED) |
| SIX MONTHS | SIX MONTHS |
| ENDED | ENDED |
| 31 MARCH 2025 | 31 MARCH 2024 |
| £'000 | £'000 |
Income from investments |
|
|
UK listed dividends | 13,166 | 16,050 |
Overseas dividends | - | 1,131 |
Other operating income | 114 | 158 |
Total income | 13,280 | 17,339 |
3. AIFM AND PORTFOLIO MANAGEMENT FEES
| (UNAUDITED) | (UNAUDITED) | ||||
| REVENUE | CAPITAL | TOTAL | REVENUE | CAPITAL | TOTAL |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
AIFM fee | 249 | 746 | 995 | 296 | 888 | 1,184 |
Portfolio management fee | 746 | 2,237 | 2,983 | 888 | 2,664 | 3,552 |
Total fees | 995 | 2,983 | 3,978 | 1,184 | 3,552 | 4,736 |
4. Return per share - basic and diluted
| (UNAUDITED) | (UNAUDITED) |
| SIX MONTHS TO | SIX MONTHS TO |
| 31 MARCH | 31 MARCH |
| 2025 | 2024 |
| £'000 | £'000 |
The return per share is based on the following figures: |
|
|
Revenue return | 11,460 | 15,236 |
Capital return | 7,571 | 74,741 |
Total return | 19,031 | 89,977 |
Weighted average number of shares in issue for the period | 149,640,691 | 197,249,523 |
Revenue return per share | 7.6p | 7.7p |
Capital return per share | 5.1p | 37.9p |
Total return per share | 12.7p | 45.6p |
The calculation of the total, revenue and capital returns per ordinary share is carried out in accordance with IAS 33, "Earnings per Share".
During the period there were no dilutive instruments held, therefore the basic and diluted return per share are the same.
5. NET ASSET VALUE PER SHARE
| (UNAUDITED) | (AUDITED) |
| AS AT | AS AT |
| 31 MARCH | 30 SEPTEMBER |
| 2025 | 2024 |
Net Assets (£'000) | 1,388,113 | 1,582,168 |
Number of shares in issue | 145,224,192 | 167,717,668 |
Net asset value per share | 952.4p | 943.4p |
6. TRANSACTION COSTS
Purchase transaction costs for the six months ended 31 March 2025 were £234,000 (six months ended 31 March 2024: £394,000). These comprise stamp duty costs of £231,000 (31 March 2024: £354,000) and commission of £3,000 (31 March 2024: £40,000).
Sales transaction costs for the six months ended 31 March 2025 were £76,000 (six months ended 31 March 2024: £72,000). These comprise commission.
These transaction costs are included within the gains and losses on investments within the Income Statement.
7. RECONCILIATION OF TOTAL RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
| (UNAUDITED) | (UNAUDITED) |
| SIX MONTHS | SIX MONTHS |
| ENDED | ENDED |
| 31 MARCH 2025 | 31 MARCH 2024 |
| £'000 | £'000 |
Total return before finance charges and taxation | 19,965 | 91,193 |
Deduct capital return before finance charges and taxation | (8,274) | (75,651) |
Net revenue before finance costs and taxation | 11,691 | 15,542 |
(Increase)/decrease in accrued income and prepayments | (431) | 282 |
(Decrease)/increase in creditors | (184) | 390 |
Taxation - withholding tax | 347 | (552) |
AIFM, Portfolio management charged to capital | (2,983) | (3,552) |
Net cash inflow from operating activities | 8,440 | 12,110 |
8. GOING CONCERN
The Directors believe, having considered the Company's financial position, investment objective, risk management policies, capital management policies and procedures, as well as the nature of the portfolio and the expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. In addition, there are no material uncertainties relating to the Company that would prevent its ability to continue in such operational existence for at least twelve months from the date of the approval of this half year financial report. For these reasons, the Directors consider there is reasonable evidence to continue to adopt the going concern basis in preparing the Financial Statements. In reviewing the position as at the date of this report, the Board has considered the guidance on this matter issued by the Financial Reporting Council.
As part of their assessment, the Directors have given careful consideration to the consequences for the Company of continuing uncertainty created by the increase in global inflation and rising interest rates, international trade tariffs, together with the consequences of the wars in Ukraine and the Middle East as well as subsequent long-term effects on economies and international relations. As previously reported, stress testing was carried out in November 2024 to establish the impact of a significant and prolonged decline in the Company's performance and prospects. This included a range of plausible downside scenarios such as reviewing the effects of substantial falls in investment values and the impact on the Company's ongoing charges ratio. It is recognised that the Company is mainly invested in readily realisable, listed securities that can be sold, if necessary, to repay indebtedness.
Shareholders will be given the opportunity to vote on the continuation of the Company at the Annual General Meeting in 2026.
9. COMPARATIVE INFORMATION
The financial information contained in this Half Year Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the six months ended 31 March 2025 and 2024 has not been audited by the Company's auditor.
The information for the year ended 30 September 2024 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 30 September 2024 have been filed with the Registrar of the Companies. The report of Deloitte LLP on those accounts was unqualified, did not include a reference to any matters to which Deloitte LLP drew attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006.
GOVERNANCE
INTERIM MANAGEMENT REPORT
The Directors are required to provide an Interim Management Report in accordance with the UK Listing Authority's Disclosure and Transparency Rules. They consider that the Chairman's Statement and the Portfolio Manager's Review, the following statements and the Directors' Responsibility Statement together constitute the Interim Management Report for the Company for the six months ended 31 March 2025.
PRINCIPAL RISKS AND UNCERTAINTIES
The Company's principal and emerging risks are described in detail under the heading "Principal and Emerging Risks" within the Strategic Report in the Company's Annual Report for the year ended 30 September 2024. They have been identified as: cyber risk; key person risk; valuation risk; climate change; geopolitical or natural event risk; and operational disruption.
In the view of the Board, there have not been any material changes to the fundamental nature of these risks, and they remain applicable for the remainder of the financial year. However, the Board continues to monitor and assess the elevated geopolitical and economic volatility affecting the companies within the portfolio. Ongoing global instability driven by regional conflicts, trade tensions, inflationary pressures, and evolving regulatory landscapes has heightened uncertainty around supply chains, investment strategies, and consumer confidence. These factors may adversely impact demand, operational costs, and overall business resilience.
RELATED PARTY TRANSACTIONS
During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.
DIRECTORS' RESPONSIBILITIES
In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules, the Directors confirm that to the best of their knowledge:
- the condensed set of Financial Statements has been prepared in accordance with applicable UK Accounting Standards on a going concern basis, and gives a true and fair view of the assets, liabilities, financial position and net return of the Company;
- the Half Year Report includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the Financial Statements;
- the Statement of Principal and Emerging Risks shown adjacent is a fair review of the principal and emerging risks for the remainder of the financial year.
The Half Year Report has not been audited by the Company's auditor.
This Half Year Report contains certain forward-looking statements. These statements are made by the Directors in good faith based on the information available to them up to the date of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
For and on behalf of the Board
Pars Purewal
Chairman
28 May 2025
FURTHER INFORMATION
GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES ("APM")
ACTIVE SHARE (APM)
Active Share is expressed as a percentage and shows the extent to which a fund's holdings and their weightings differ from those of the fund's benchmark index. A fund that closely tracks its index might have an Active Share of less than 20% and be considered passive, while a fund with an Active Share of 60% or higher is generally considered to be actively managed. The Company has a distinctive strategy: a concentrated portfolio of holdings invested across a small number of sectors and themes. Active Share helps quantify the extent to which the portfolio differs from the benchmark index.
The Active Share performance is sourced from Morningstar.
AIC
Association of Investment Companies. The AIC represents a broad range of investment companies, investment trusts, VCTs and other closed-ended funds.
ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE ("AIFMD")
Agreed by the European Parliament and the Council of the European Union and transposed into UK legislation, the AIFMD classifies certain investment vehicles, including investment companies, as Alternative Investment Funds ("AIFs") and requires them to appoint an Alternative Investment Fund Manager ("AIFM") and depositary to manage and oversee the operations of the investment vehicle. The Board of the Company retains responsibility for strategy, operations and compliance and the Directors retain a fiduciary duty to Shareholders.
ALTERNATIVE PERFORMANCE MEASURE ("APM")
An Alternative Performance Measure is a numerical measure of the Company's current, historical or future financial performance, financial position or cash flows other than a financial measure defined or specified in the applicable financial framework. In selecting these Alternative Performance Measures, the Directors considered the key objectives and expectations of typical investors and believe that each APM gives the reader useful and relevant information in judging the Company's performance and in comparing other Investment Companies.
BENCHMARK RETURN
Total return on the benchmark, assuming that all dividends received were re-invested, without transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.
DISCOUNT OR PREMIUM (APM)
A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount. The Board regularly reviews the level of the discount/premium of the Company's share price to the net asset value per share and considers ways in which share price performance may be enhanced, including the effectiveness of share buy-backs, where appropriate.
DISCOUNT OR PREMIUM (APM) |
| 31 MARCH | 30 SEPTEMBER |
| 2025 | 2024 | |
Share Price (p) |
| 886.0 | 861.0 |
Net Asset value per share (p) |
| 952.4 | 943.4 |
Discount |
| 7.0% | 8.7% |
FTSE DISCLAIMER
"FTSE©" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distributions of FTSE data is permitted without FTSE's express written consent.
(NET CASH)/GEARING (APM)
Gearing represents prior charges, adjusted for net current assets expressed as a percentage of net assets (AIC methodology). The Directors believe that it is appropriate to show net gearing in relation to Shareholders' funds as it represents the amount of debt funding on the investment portfolio. The gearing policy is that borrowing will not exceed 25% of the Company's net assets. Prior charges include all loans and bank overdrafts for investment purposes.
|
| 31 MARCH | 30 SEPTEMBER |
|
| 2025 | 2024 |
|
| £'000 | £'000 |
Bank loan (prior charges) |
| (29,200) | (29,200) |
Less net current assets (excluding loan) |
| 73,978 | 18,150 |
|
| 44,778 | (11,050) |
Net assets |
| 1,383,113 | 1,582,168 |
(Net cash)/Gearing |
| (3.2)% | 0.7% |
NET ASSET VALUE ("NAV")
The value of the Company's assets, principally investments made in other companies and cash being held, less any liabilities. The NAV is also described as "Shareholders' funds". The NAV is often expressed in pence per share after being divided by the number of shares that have been issued. The NAV per share is unlikely to be the same as the share price which is the price at which the Company's shares can be bought or sold by an investor. The share price is determined by the relationship between the demand and supply of the shares.
NET ASSET VALUE TOTAL RETURN PER SHARE (APM)
The theoretical total return on an investment over a specified period assuming dividends paid to Shareholders were reinvested at net asset value per share at the time the shares were quoted ex-dividend. This is a way of measuring investment management performance of investment trusts which is not affected by movements in discounts or premiums. The Directors regard the Company's net asset value total return per share as being the overall measure of value delivered to Shareholders over the long term. The Board considers the principal comparator to be its benchmark, the FTSE All-Share Index.
|
| 31 MARCH | 30 SEPTEMBER |
|
| 2025 | 2024 |
Opening NAV per share (p) |
| 943.4 | 891.2 |
Increase in NAV per share (p) |
| 9.0 | 52.2 |
Closing NAV per share (p) |
| 952.4 | 943.4 |
Increase in NAV per share |
| 1.0% | 5.8% |
Impact of dividends re-invested* |
| +1.1% | +2.4% |
NAV per share total return |
| 2.1% | 8.2% |
* Total dividends declared during the period of 10.8p (2024: 19.3p declared during the 2024 financial year) were re-invested at the cum income NAV per share at the ex-dividend date. The Treasury shares held by the Company have been excluded from this calculation.
In accordance with FRS 102 dividends are included in the Financial Statements in the period in which they are paid or approved by Shareholders.
The source is Morningstar which has calculated the return on an industry comparative basis.
ONGOING CHARGES (APM)
Ongoing charges are calculated by taking the Company's annualised operating expenses expressed as a proportion of the average daily net asset value of the Company over the year. The costs of buying and selling investments are excluded, as are interest costs, taxation, cost of buying back or issuing ordinary shares and other non-recurring costs. Ongoing charges represent the costs that Shareholders can reasonably expect to pay from one year to the next, under normal circumstances. The Board continues to be conscious of expenses and works hard to maintain a sensible balance between high quality service and the cost of provision.
|
| 31 MARCH | 30 SEPTEMBER |
|
| 2025 | 2024 |
|
| £'000 | £'000 |
AIFM and portfolio management fees |
| 7,791 | 9,041 |
Operating expenses |
| 1,187 | 1,310 |
Total expenses |
| 8,978* | 10,351 |
Average net assets during the period/year |
| 1,491,907 | 1,697,345 |
Ongoing charges |
| 0.60%** | 0.61% |
* Estimated annualised expenses as reported in the Company's latest revenue forecasts for the year ending 30 September 2025.
** Assumes no change in the average assets.
PEER GROUP
Finsbury Growth & Income Trust PLC is part of the AIC's UK Equity Income Investment Trust Sector. The trusts in this universe are defined as trusts whose investment objective is to achieve a total return for Shareholders through both capital and dividend growth.
REVERSE STRESS TEST
Reverse stress tests are stress tests that identify scenarios and circumstances which would make a business unworkable and identify potential business vulnerabilities.
SHARE PRICE TOTAL RETURN (APM)
The change in capital value of a company's shares over a given period, plus dividends paid to Shareholders, expressed as a percentage of the opening value. The assumption is that dividends paid to Shareholders are re-invested in the shares at the time the shares are quoted ex dividend. The Directors regard the Company's share price total return to be a key indicator of performance. This reflects share price growth of the Company which the Board recognises is important to investors.
SHARE PRICE TOTAL RETURN |
| 31 MARCH | 30 SEPTEMBER |
| 2025 | 2024 | |
Opening share price (p) |
| 861.0 | 852.0 |
Increase in share price (p) |
| 25.0 | 9.0 |
Closing share price (p) |
| 886.0 | 861.0 |
% Increase in share price |
| 2.9% | 1.1% |
% Impact of dividends re-invested* |
| +1.3% | +2.3% |
Share price total return |
| 4.2% | 3.4% |
* Total dividends declared during the period of 10.8p (2024: 19.3p declared during the 2024 financial year) were re-invested at the share price at the ex-dividend date.
The source is Morningstar which has calculated the return on an industry comparative basis.
STRESS TESTING
Stress testing is a forward-looking analysis technique that considers the impact of a variety of extreme but plausible economic scenarios on the financial position of the Company.
TREASURY SHARES
Shares previously issued by a company that have been bought back from Shareholders to be held by the Company for potential sale or cancellation at a later date. Such shares are not capable of being voted and carry no rights to dividends.
- END-
Victoria Hale
Frostrow Capital LLP
Company Secretary - 0203 170 8732
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