Half-year Report

RNS Number : 0033X
Troy Income & Growth Trust Plc
25 April 2019
 

 

TROY INCOME & GROWTH TRUST PLC

LEI: 213800HLNMQ1R6VBLU75

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2019

 

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 2019

30 September 2018

Change

Equity shareholders' funds

£223,731,000

£224,058,000

-0.1%

 

 

 

 

Net asset value per share

78.51p

79.04p

-0.7%

 

 

 

 

Share price (mid-market)

79.00p

78.30p

+0.9%

 

 

 

 

Premium/(discount) to net asset value

0.6%

(0.9)%

 

 

 

 

 

 

Total Return* (for the periods to 31 March 2019)

 

Six Months

One Year

Three Years

Five Years

 

From 31 July 2009**

 

 

 

 

 

 

Share price

+2.8%

+9.5%

+20.2%

+46.2%

+207.5%

 

 

 

 

 

 

Net asset value per share

+1.6%

+10.3%

+21.3%

+47.4%

+185.0%

 

 

 

 

 

 

FTSE All-Share Index

-1.8%

+6.4%

+31.3%

+34.5%

+138.4%

 

 

 

 

 

 

* Total return includes reinvesting the net dividend in the month that the share price goes ex-dividend.

** Appointment of Troy Asset Management Limited as Manager.

 

 

INTERIM BOARD REPORT AS AT 31 MARCH 2019

 

Performance

The Company delivered a Net Asset Value (NAV) total return of +1.6% over the six months to 31 March 2019 while over the same period the share price total return was +2.8%. The difference between the two reflects the movement from a discount of 0.9% at the end of September to a premium of 0.6% at the end of March. Over the same period the FTSE All-Share Index produced a total return of -1.8%. Over the twelve months to 31 March 2019 the NAV total return of +10.3% and share price total return of +9.5% were also ahead of the FTSE All-Share Index which returned +6.4%.

 

The Board remains predominantly interested in long-term performance and, although over the three years to 31 March 2019 the NAV total return of +21.3% compares less favourably with +31.3% for the FTSE All-Share Index, over five years the Company's NAV total return of +47.4% compares very favourably to +34.5% for the FTSE All-Share Index.

 

The final quarter of 2018 saw sharp equity market declines, with the FTSE All-Share Index falling -10.2%. This was followed by a rapid recovery in the first three months of 2019, during which the UK equity market rose +9.4%. The outperformance of the broader market and its peer group by the Company during the six month period came as the portfolio participated less (70%) in the market decline than it did in the subsequent rally (97%). The Managers have consistently sought to deliver such a return profile, and it has been a feature of their performance since their appointment nearly ten years ago.

 

The Company increased the aggregate of the first and second interim dividends by +3.8% to 1.37p (a quarterly rate of 0.685p) when compared to the equivalent dividends in the previous year.

 

Background

The weakness suffered across many European and Asian equity markets over the summer became more entrenched during the fourth quarter. Quantitative Tightening (the unwinding of Quantitative Easing), a deteriorating global trade environment and weakening economic data applied downward pressure on an already faltering UK equity market. The fourth quarter also saw the hitherto unaffected S&P 500 Index finally capitulate and fall some -14.3% on a total return basis. At the same time, the Chicago Board Options Exchange Volatility Index, or VIX, which measures volatility, rose to levels last seen in the early 2018 correction.

 

While it seemed in the closing months of 2018 as if investors may be facing a more prolonged downturn, this view did not persist into the New Year, as it became apparent that the Federal Reserve would again choose to bail out investors. Dovish statements by members of the Federal Reserve's monetary policy board signified a significant change in stance; rolling back on two presumed rate rises for 2019 to zero. Speculation abounded that they may even be forced to announce a cut. Persistently robust corporate earnings and a change in the mood music relating to US-China trade further fuelled the sharp first-quarter rebound during which the S&P 500 Index climbed +13.7%.

 

During the early months of 2019 the UK equity market moved increasingly to price in a relatively benign Brexit outcome. Domestically focussed equities, including many UK banks and retailers, rose particularly strongly and sterling also hit a nine-month high of 1.33 to the dollar as the prospect of a 'no deal' appeared to ebb. With a number of failed votes on Theresa May's deal and some alternative paths, the Chancellor's spring statement provided the welcome news that the UK economy has been 'remarkably robust'. In response the Bank of England voted unanimously at the March meeting to maintain UK interest rates at 0.75%, stating that "the economic outlook [for the UK] will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond."

 

Management Fee

In January the Board announced a reduction in the annual management fee payable to Troy Asset Management, the Company's investment manager. With effect from 1 January 2019, the Company moved to a flat annual management fee of 0.65% of net assets. This compares to the previous tiered fee of 0.75% of net assets up to £175 million and 0.65% of net assets above £175 million. The Board remains committed to ensuring the Company's ongoing charges are competitive.

 

Discount Control Mechanism

The DCM was active for both buyers and sellers during the period with the Company issuing a net total of 1,500,000 shares from treasury. 2,550,000 shares were issued at a small premium to Net Asset Value and 1,050,000 shares were repurchased at a small discount. All transactions are NAV enhancing and provide additional liquidity to Shareholders. The DCM also reduces discount volatility which remains much lower than for the peer group as a whole.  

 

Gearing

The £20 million gearing facility with ING was renewed on 24 April 2019 for a further two years. The facility was not utilised during the period but remains available if appropriate investment opportunities arise.

 

Dividends

The current quarterly dividend rate is 0.685p and the second quarterly dividend will be paid on 26 April 2019. As in previous years the Board will consider an uplift to the final quarterly dividend before the year end on 30 September.

 

Outlook

Over the past six months, Sino-US trade talks, the Fed's rate decisions and the thoroughly time-worn subject of Brexit have featured heavily on market sentiment. As the Company passes its half-year, uncertainty still abounds in regards to at least two of these issues. Meanwhile, increasingly frequent pieces of weak economic data remind investors that we are likely in the latter stages of a mature bull market. As a result, the Managers remain cautiously positioned as we look to the rest of the year.

 

In the case of Brexit, it is important to note that the Company is not positioned to be on one side of a binary outcome. Parts of the portfolio stand to benefit from a continuing upswing in sentiment towards the UK. However, at the same time, the portfolio retains substantial holdings in core global defensive businesses, reflecting concerns of further market instability. A balance between exposure to the UK domestic economy and resilient dollar earnings continues to seem prudent.

 

Underpinning the Company's core of quality defensive investments are yields and valuations which, despite reservations about the broad market rating, are considerably more attractive than those experienced two years ago. Consequently, the Board and Managers are relatively more optimistic about some of the long-term returns available to the Company's Shareholders and the underlying portfolio's ability to preserve the value of their capital.

 

 

David Warnock

Chairman

24 April 2019

 

 

Principal Risks and Uncertainties

The principal risks facing the Company relate to the Company's investment activities and include performance and market risk, resource risk and operational risk. The underlying risks and potential increased volatility associated with Brexit and other global political situations are considered within market 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 2018.

The Company's principal risks and uncertainties have not changed since the date of the Annual Report and are not expected to change for the remaining six months of the Company's financial year.

 

Going Concern

Having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, the Directors believe 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. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.

 

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 2019 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

24 April 2019 

 

STATEMENT OF COMPREHENSIVE INCOME

 

 

 

Six months ended

31 March 2019

(unaudited)

Six months ended

31 March 2018

(unaudited)

 

 

 

 

 

 

Revenue

Capital

Total

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

£'000

£'000

£'000

Loss on investments held at fair value

 

 

 

 

 

 

 

 

-

(194)

(194)

-

(12,510)

(12,510)

Currency losses

 

-

-

-

-

(3)

(3)

Income

2

3,694

-

3,694

4,180

-

4,180

Investment management

 

 

 

 

 

 

 

fees

 

(258)

(479)

(737)

(284)

(528)

(812)

Other administrative

 

 

 

 

 

 

 

expenses

 

(250)

-

(250)

(248)

-

(248)

Finance costs of borrowing

 

(9)

(16)

(25)

(9)

(16)

(25)

 

 

_______

______

_______

_______

______

_______

Profit/(loss) before taxation

 

3,177

(689)

2,488

3,639

(13,057)

(9,418)

Taxation

3

(41)

-

(41)

(33)

-

(33)

 

 

_______

______

_______

_______

______

_______

Profit/(loss) for the period

 

3,136

(689)

2,447

3,606

(13,057)

(9,451)

 

 

_______

______

_______

_______

______

_______

Earnings per Ordinary

 

 

 

 

 

 

 

share (pence)

5

1.11

(0.24)

0.87

1.25

(4.52)

(3.27)

 

 

_______

______

_______

_______

______

_______

 

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 prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. 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 2018

(audited)

 

 

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Profits on investments held at fair value

 

-

1,927

1,927

Currency losses

 

-

(6)

(6)

Income

2

9,040

-

9,040

Investment management fees

 

(569)

(1,057)

(1,626)

Other administrative expenses

 

(476)

-

(476)

Finance costs of borrowing

 

(17)

(33)

(50)

 

 

______

_______

______

Profit before taxation

 

7,978

831

8,809

Taxation

3

(127)

-

(127)

 

 

______

_______

______

Profit for the period

 

7,851

831

8,682

 

 

______

_______

______

Earnings per Ordinary share (pence)

5

2.73

0.29

3.02

 

 

______

_______

______

 

 

STATEMENT OF FINANCIAL POSITION

 

 

 

 

 

 

As at

31 March

2019

(unaudited)

£'000

          As at

31 March

2018

(unaudited)

£'000

              

As at

30 September

2018

(audited)

£'000

 

 

 

 

 

 

 

 

 

Notes

Non-current assets

 

 

 

 

Ordinary shares

 

216,596

206,183

213,743

 

 

______

______

______

Investments held at fair value through profit or loss

 

216,596

206,183

213,743

 

 

______

______

______

Current assets

 

 

 

 

Accrued income and prepayments

 

778

793

642

Cash and cash equivalents

 

8,570

7,356

10,343

 

 

______

______

______

Total current assets

 

9,348

8,149

10,985

 

 

______

______

______

Total assets

 

225,944

214,332

224,728

Current liabilities

 

 

 

 

Trade and other payables

 

(2,213)

(521)

(670)

 

 

______

______

______

Total current liabilities

 

(2,213)

(521)

(670)

 

 

______

______

______

Net assets

 

223,731

213,811

224,058

 

 

______

______

______

Issued capital and reserves attributable to

 

 

 

 

equity holders

 

 

 

 

Called-up share capital

7

72,699

72,699

72,699

Share premium account

 

23,112

23,132

23,124

Special reserves

 

58,949

61,917

57,831

Capital reserve

8

63,812

50,613

64,501

Revenue reserve

 

5,159

5,450

5,903

 

 

______

______

______

Equity shareholders' funds

 

223,731

213,811

224,058

 

 

______

______

______

Net asset value per Ordinary share (pence)

5

78.51

74.04

79.04

 

 

______

______

______

 

 

STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

Six months ended 31 March 2019 (unaudited)

 

Share

 

 

 

 

 

Share

premium

Special

Capital

Revenue

 

 

capital

account

reserves

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 October 2018

72,699

23,124

57,831

64,501

5,903

224,058

(Loss)/profit and total comprehensive income for the period

-

-

-

(689)

3,136

2,447

Equity dividends

-

-

-

-

(3,880)

(3,880)

Shares bought back into treasury

-

-

  (781)

-

-

(781)

Shares issued from treasury

-

5

1,899

-

-

1,904

Discount control costs

-

 (17)

 -

 -

 -

 (17)

 

______

_______

______

______

_______

______

Balance at 31 March 2019

72,699

23,112

58,949

63,812

5,159

223,731

 

______

_______

______

______

_______

______

 

 

 

 

 

 

 

Six months ended 31 March 2018 (unaudited)

 

Share

 

 

 

 

 

Share

premium

Special

Capital

Revenue

 

 

capital

account

reserves

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 October 2017

72,699

23,149

63,504

63,670

5,670

228,692

(Loss)/profit and total comprehensive income for the period

-

-

-

(13,057)

3,606

(9,451)

Equity dividends

-

-

-

-

(3,826)

(3,826)

Shares bought back into treasury

-

-

  (2,500)

-

-

(2,500)

Shares issued from treasury

-

 -

913

-

-

913

Discount control costs

-

 (17)

 -

 -

 -

 (17)

 

______

_______

______

______

_______

______

Balance at 31 March 2018

72,699

23,132

61,917

50,613

5,450

213,811

 

______

_______

______

______

_______

______

 

 

 

 

 

 

 

Year ended 30 September 2018 (audited)

 

Share

 

 

 

 

 

Share

premium

Special

Capital

Revenue

 

 

capital

account

reserves

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 October 2017

72,699

23,149

63,504

63,670

5,670

228,692

Profit and total comprehensive income for the year

-

-

-

831

7,851

8,682

Equity dividends

-

-

-

-

(7,618)

(7,618)

Shares bought back into treasury

-

-

(6,893)

-

-

(6,893)

Shares issued from treasury

-

8

1,220

-

-

1,228

Discount control costs

-

(33)

_

_

-

(33)

 

______

_______

______

______

_______

______

Balance at 30 September 2018

72,699

23,124

57,831

64,501

5,903

224,058

 

______

_______

______

______

_______

______

 

 

 

CASH FLOW STATEMENT

 

 

 

 

Six months

ended

31 March

2019

(unaudited)

£'000

Six months

ended

31 March

2018

(unaudited)

£'000

Year

ended

30 September

2018

(audited)

£'000

 

 

 

 

 

Cash flows from operating activities

 

 

 

Investment income received

3,552

4,025

9,047

Administrative expenses paid

(1,060)

(1,047)

(2,083)

 

______

______

______

Cash generated from operations

2,492

2,978

6,964

Finance costs paid

(25)

(25)

(50)

Taxation

(41)

(33)

(127)

 

______

______

______

Net cash inflows from operating activities

2,426

2,920

6,787

 

______

______

______

Cash flows from investing activities

 

 

 

Purchases of investments

(11,106)

(24,285)

(34,061)

Sales of investments

9,815

21,916

38,568

Realised gain on forward currency contracts

-

149

149

 

______

______

______

Net cash (outflow)/inflow from investing activities

(1,291)

(2,220)

4,656

 

______

______

______

Net cash inflow before financing

1,135

700

11,443

 

______

______

______

Financing activities

 

 

 

Proceeds of issue of shares

1,904

913

1,228

Cost of share buybacks

(915)

(2,500)

(6,759)

Dividends paid

(3,880)

(3,825)

(7,618)

Costs incurred on issue of new shares

(17)

(17)

(33)

 

______

______

______

Net cash outflow from financing activities

(2,908)

(5,429)

(13,182)

 

______

______

______

Net decrease in cash and short term deposits

(1,773)

(4,729)

(1,739)

Cash and short term deposits at the start of the period

10,343

12,088

12,088

Effect of foreign exchange rate changes

-

(3)

                   (6)  

 

______

______

______

Cash and short term deposits at the end of the period

8,570

7,356

10,343

 

______

______

______

Reconciliation of operating profit to operating cash flows

 

 

 

Profit/(loss) before taxation

2,488

(9,418)

8,809

Add interest payable

25

25

50

Adjustments for:

 

 

 

Loss/(gains) on investments

194

12,510

(1,927)

Currency losses

-

3

6

(Increase)/decrease in accrued income and prepayments

(135)

(149)

4

(Decrease)/increase in trade and other payables

(80)

7

22

 

______

______

______

Cash generated from operations

2,492

2,978

6,964

 

______

______

______

         

 

Distribution of Assets and Liabilities

 

 

 

Valuation at

30 September

2018

 

 

 

Valuation at

31 March

2019

 

 

 

 

 

 

Purchases

Sales

Appreciation/

(depreciation)

 

£'000

%

£'000

£'000

£'000

£'000

%

Listed investments

 

 

 

 

 

 

 

Ordinary shares

213,743

95.4

12,862

(9,815)

(194)

216,596

   96.8

Current assets

10,985

4.9

 

 

 

9,348

4.2

Current liabilities

(670)

(0.3)

 

 

 

(2,213)

(1.0)

 

______

_____

 

 

 

______

_____

Net assets

224,058

100.0

 

 

 

223,731

100.0

 

______

_____

 

 

 

______

_____

Net asset value per share

79.04p

 

 

 

 

78.51p

 

 

______

 

 

 

 

______

 

 

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 2018 financial statements.

 

(b)

Dividends payable

 

 

Dividends are recognised on the ex-dividend date.

         

 

2.

Income

Six months ended

31 March

2019

£'000

Six months ended

31 March

2018

£'000

Year

 ended

30 September

2018

£'000

 

 

 

 

 

 

 

Income from listed investments

 

 

 

 

UK dividend income

3,422

3,954

8,405

 

Overseas dividend income

270

225

633

 

 

______

______

______

 

 

3,692

4,179

9,038

 

 

______

______

______

 

Other income from investment activity

 

 

 

 

Deposit interest

2

-

1

 

Underwriting income

-

1

1

 

 

______

______

______

 

Total income

3,694

4,180

9,040

 

 

______

______

______

 

3.

Taxation

 

 

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

 

4.

The following table shows the revenue for each period less the dividends declared in respect of the financial period to which they relate.

 

 

 

Six months ended

31 March

2019*

£'000

Six months ended

31 March

2018+

£'000

Year

 ended

 30 September

2018++

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

3,136

3,606

7,851

 

Dividends declared

(3,892)

(3,812)

(7,639)

 

 

______

______

______

 

 

(756)

(206)

212

 

 

______

______

______

 

 

 

 

 

 

* Dividends declared relate to the first two interim dividends (both 0.685p) declared in respect of the financial year 2018/2019.

 

 

+ Dividends declared relate to the first two interim dividends (both 0.66p) declared in respect of the financial year 2017/2018.

 

 

++ Dividends declared relate to the four interim dividends declared in respect of the financial year 2017/2018 totalling 2.665p.

 

           

 

 

Six months ended

31 March 2019

Six months ended

31 March 2018

Year

 ended

30 September

 2018

 

 

5.

Return and net asset value per share

p

p

p

 

Revenue return

1.11

1.25

2.73

 

Capital return

(0.24)

(4.52)

0.29

 

 

______

______

______

 

Total return

0.87

(3.27)

3.02

 

 

______

______

______

 

The figures above are based on the following:

 

 

 

 

 

£'000

£'000

£'000

 

Revenue return

3,136

3,606

7,851

 

Capital return

(689)

(13,057)

831

 

 

______

______

______

 

Total return

2,447

(9,451)

8,682

 

 

______

______

______

 

Weighted average number of Ordinary shares in issue

 

 

 

 

 

283,525,721

289,198,578

287,811,840

 

 

__________

__________

__________

 

 

 

 

 

 

 

The net asset value per share is based on net assets attributable to shareholders of £223,731,000 (31 March 2018 - £213,811,000; 30 September 2018 - £224,058,000) and on 284,989,045 (31 March 2018 - 288,769,045; 30 September 2018 - 283,489,045) Ordinary shares in issue at the period end.

 

6.

Financial instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

£'000

Level 2

£'000

Level 3

£'000

2019

Total

£'000

 

Financial assets at fair value through profit or loss as at 31 March 2019

 

 

 

 

 

Investments

216,596

-

-

216,596

 

 

______

______

______

______

 

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 2019.

 

 

 

 

 

The fair value of the Company's financial assets and liabilities as at 31 March 2019 was not materially different from the carrying value.

 

 

 

As at

31 March 2019

(unaudited)

As at

31 March 2018

(unaudited)

As at

30 September 2018

(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

284,989,045

288,769,045

283,489,045

 

Held in treasury

5,805,000

2,025,000

7,305,000

 

 

____________

____________

___________

 

 

290,794,045

290,794,045

290,794,045

 

 

____________

____________

____________

 

 

 

 

 

 

During the six months ended 31 March 2019 there were 1,050,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £781,000 and placed in treasury. During the six months ended 31 March 2018 there were 3,225,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £2,500,000 and placed in treasury. During the year ended 30 September 2018 there were 9,630,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £6,893,000 and placed in treasury.

During the six months ended 31 March 2019 there were 2,550,000 Ordinary shares re-issued from treasury for total proceeds of £1,904,000. During the six months ended 31 March 2018 there were 1,200,000 Ordinary shares re-issued from treasury for total proceeds of £913,000. During the six months ended 30 September 2018 there were 2,325,000 Ordinary shares re-issued from treasury for total proceeds of £1,228,000.

During the six months to 31 March 2019, the six months to 31 March 2018 and the year to 30 September 2018 there were no new Ordinary shares issued by the Company and no Ordinary shares purchased for cancellation.

8.

Capital reserve

 

The capital reserve shown in the Statement of Financial Position at 31 March 2019 includes gains of £47,628,000 (31 March 2018 - gains of £39,008,000; 30 September 2018 - gains of £49,494,000) which relate to the revaluation of investments held at the reporting date.

 

9.

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 gains on investments in the Statement of Comprehensive Income. The total costs were as follows:

 

 

Six months ended

31 March 2019

£'000

Six months ended

31 March 2018

£'000

Year

 ended

30 September 2018

£'000

 

 

 

 

 

Purchases

63

100

138

 

Sales

5

17

25

 

 

______

______

______

 

 

68

117

163

 

 

______

______

______

               

 

 

10.

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 2019 and 31 March 2018 has not been audited.

 

The information for the year ended 30 September 2018 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.

 

11.

Approval

 

This Half Yearly Financial Report was approved by the Board on 24 April 2019.

 

 

12.

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 2019.

 

For Troy Income & Growth Trust plc

PATAC Limited, Company Secretary

24 April 2019

Enquiries: 0131 538 1400

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
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