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Invesco Inc Grth Tst (IVI)

  Print      Mail a friend       Annual reports

Friday 02 June, 2006

Invesco Inc Grth Tst

Final Results


                        INVESCO Income Growth Trust plc                        

                   Preliminary Announcement of Final Results                   

                       for the Year Ended 31 March 2006                        

Chairman's Statement

Investment Performance

During the period under review the UK stockmarket has performed very strongly,
producing the fourth best March-to-March return of the last 20 years. Following
three successive years of falls from March 2000 there have now been three
successive positive years. Continued expansion of company profits has more than
compensated for disappointing UK economic growth and concerns about the impact
on growth and inflation of high oil prices and a slowing housing market.

The Board is pleased to note that the total return for the period (comprising
the movement in NAV plus net dividends reinvested) was 25.4%. In the vast
majority of years such an outcome would be cause for celebration. However, it
is disappointing that your Company has underperformed the benchmark index,
which gained 28.0% during the period under review, and the reasons for this are
explained more fully in the Manager's report. Nevertheless the Board takes
comfort from the longer term relative performance against the benchmark. The
mid-market price of the ordinary shares increased from 167p to 204.75p during
the year, while the discount per ordinary share narrowed from 12.0% to 10.8%.

Gearing

The Board continues to monitor the Company's level of gearing which, when
prudently used, should enhance the return to shareholders. As at 31 March 2006
the Company had actual gearing of 114%, provided by Convertible Unsecured Loan
Stock (`CULS') of £19m. During October 2005, the two floating rate notes worth
£10m which the Company held, were sold to fund further investment in shares
following a temporary market setback, thereby increasing effective gearing from
109% at the interim stage to the current level.

In absolute terms, the Company's maximum level of debt is presently limited to
the value of its CULS, currently £19 million, and a £1 million overdraft
facility. It is envisaged that, depending on market conditions, the Company's
effective gearing will normally be in the range of 100-125% of net asset value.
It is important to stress that, prior to a significant change within this range
by the Manager, permission is required from the Board.

Share Buy-Backs

During the year, 492,000 ordinary shares have been repurchased and are held as
treasury shares. Since the year end, a further 501,663 ordinary shares have
been repurchased and are also held as treasury shares.

Revenue and Dividends

An increased interim dividend of 2.2p per share (2005: 2.1p) was paid to
shareholders in December 2005. The Board have, for reasons set out below, now
declared a special interim dividend of 0.90p (2005: nil) in respect of the six
months to 31 March 2006. The Directors are also now recommending a final
dividend of 3.95p per share (2005: 3.7p), representing an increase in the total
amount of dividend paid for the year of 21.6% (including the special). Both the
special dividend and, if approved by shareholders, the final dividend will be
paid on 7 July 2005 to shareholders on the Register of Members on 16 June 2006.
In arriving at the total normal dividend figure (i.e. 6.15p excluding the
special), the Board has undertaken a review of the Company's revenue reserves,
the potential for future dividend growth in the equity markets as a whole and
the effect of the CULS converting no later than in 2009, and believes that this
level of total normal dividend is one from which the Board's aim to maintain
dividend growth over the longer term at least in line with inflation, can be
achieved. However, rather than transfer any surplus distributable income to
reserves, as the Board has done in the past, they have now decided that in
future they will consider each year whether to pay this as a special dividend
to shareholders. The future payments of a special dividend will depend entirely
on the considerations outlined above and shareholders should not necessarily
expect the special dividend to be paid.

The Board is also pleased to announce that, with effect from the start of the
Company's financial year, i.e. 1 April 2006, dividend payments will be made to
shareholders on a quarterly basis in March, July, October and December. The
Board believes that this is consistent with the importance shareholders place
on both the frequency and level of dividend payments. Dividends will be paid in
three equal instalments with an increased final payment - and special dividend,
if appropriate - once the Company's distributable income for the year has been
established.

Board Membership

Following the resignation of Mr Melville Trimble, as reported in our Interim
Report, the Board is very pleased to welcome Mr Roger Walsom as a non-executive
Director of the Company with effect from 5 May 2006. Mr Walsom brings
considerable experience of the investment trust sector to the Board.

Corporate Governance

The Board remains committed to maintaining the highest standards of Corporate
Governance and is accountable as shareholders for the governance of the
Company's affairs.

The Directors believe that, during the period under review, they have complied
with the provisions of the AITC Code of Corporate Governance as endorsed by the
Financial Reporting Council, save in respect of matters discussed in the
Corporate Governance statements contained within the Annual Report.

Annual General Meeting (`AGM')

At the AGM there are five items of Special Business to be proposed:-

Share Issuance

First the Directors are asking for the usual authority to issue up to an
aggregate nominal amount of £4,603,643 (a third of the Company's issued share
capital, ignoring treasury shares, as at 31 May 2006) in new ordinary shares.
This will allow Directors to issue shares within the prescribed limits should
any favourable opportunities arise to the advantage of shareholders. The powers
authorised will not be exercised at a price below Net Asset Value so that the
interests of existing shareholders are not diluted. This authority will expire
at the AGM in 2007.

Secondly, the Directors are also asking for the usual authority to issue new
ordinary shares pursuant to a rights issue or otherwise than in accordance with
a rights issue of up to an aggregate nominal amount of £690,546 (5% of the
Company's issued share capital, ignoring treasury shares, as at 31 May 2006) of
new ordinary shares dis-applying pre-emption rights. This will allow shares to
be issued to new shareholders without having to be offered to existing
shareholders first, thus broadening the shareholder base of the Company. This
authority will expire at the AGM in 2007.

Share Buybacks

Thirdly the Directors are seeking to renew the authority to buyback up to
8,281,034 shares (14.99% of the Company's issued share capital, ignoring
treasury shares, as at 31 May 2006) subject to the restrictions referred to in
the notice of the AGM. This authority will expire at the AGM in 2007.

The Directors are proposing that shares bought back by the Company either be
cancelled or, alternatively, be held as treasury shares with a view to their
resale if appropriate, or later cancellation. The holding of treasury shares is
restricted to 10% of the Company's issued share capital and any resale of them
will only take place on terms that are in the best interests of shareholders.

Amendment of Articles of Association - Directors' Indemnity

Fourthly, due to recent developments in company law, the Directors are
proposing to amend the provisions contained in the Company's Articles of
Association relating to the indemnification of Directors. The Companies (Audit,
Investigations and Community Enterprise) Act 2004 made changes to section 310
of the Companies Act 1985 in relation to the indemnification of directors by
companies for liabilities arising in connection with the performance of their
functions. The proposed amendment to the Articles will, subject to the
Companies Act, entitle the Directors to be indemnified for the costs and losses
incurred by them in defending and facing liability in civil, criminal and
regulatory proceedings. A consequential amendment to the Articles is also
proposed so that a Director will be entitled to count in the quorum and vote at
a Board Meeting to approve any such indemnity or similar arrangement
notwithstanding his or her interest in the matter discussed.

Amendment of Articles of Association - Capital Profits

Finally, since the Companies (Investment Companies) (Distribution of Profits)
Regulations 1999, investment companies have been allowed to use capital profits
to redeem or purchase their own shares without prejudice to their investment
company status. In anticipation of this statutory relaxation, Article 115 was
amended to allow the Company to use capital profits for this purpose. However,
because the precise extent of the statutory relaxation had not been known at
the time when the Article was amended, the wording of the relevant Article is
unnecessarily convoluted. This resolution is designed to simplify, clarify and
update the wording of Article 115.

The AGM of the Company will be held at the offices of INVESCO Asset Management
Limited on 4 July 2006 at 12.00noon. I do hope that as many shareholders as
possible are able will attend. This will be an opportunity not only to meet the
Directors, but also to hear the views of Ciaran Mallon, who is the investment
manager at Invesco Perpetual with the day-to-day responsibility for managing
the Company's share portfolio.

John J. McLachlan

Chairman

2 June 2006

Income Statement

for the year ended 31 March

                    2006                                       2005            
                                                                               
                                                            Restated*          
                                                                               
                    Revenue     Capital      Total Revenue   Capital      Total
                                                                               
                    £'000         £'000      £'000   £'000     £'000      £'000
                                                                               
Gains on                   -     28,053     28,053       -    15,827     15,827
investments                                                                    
                                                                               
Income                 5,222          -      5,222   4,587         -      4,587
                                                                               
Investment             (551)      (551)    (1,102)   (457)     (457)      (914)
management fee                                                                 
                                                                               
Other expenses         (220)        (2)      (222)   (323)         -      (323)
                                                                               
Net return before                                                              
finance                                                                        
                                                                               
costs and taxation     4,451     27,500     31,951   3,807    15,370     19,177
                                                                               
Interest payable                                                               
and similar                                                                    
                                                                               
charges                (511)      (511)    (1,022)   (512)     (536)    (1,048)
                                                                               
Return on ordinary                                                             
                                                                               
activities before      3,940     26,989     30,929   3,295    14,834     18,129
taxation                                                                       
                                                                               
Tax on ordinary            -          -          -       -         -          -
activities                                                                     
                                                                               
Transfer to            3,940     26,989     30,929   3,295    14,834     18,129
reserves                                                                       
                                                                               
Return per ordinary                                                            
share                                                                          
                                                                               
 - basic                7.1p      48.3p      55.4p    5.9p     26.5p      32.4p
                                                                               
 - diluted              5.9p      40.2p      46.1p    4.9p     21.9p      26.8p

*Restated for new UKAccounting Standards.

The total column of this statement represents the Company's profit and loss
account. The supplementary revenue and capital columns are presented for
information purposes as recommended by the guidance note issued by the
Association of Investment Trust Companies. All items in the above statement
derive from continuing operations and the Company has no other gains or losses
therefore no statement of total recognised gains or losses is presented. No
operations were acquired or discontinued in the year.

Reconciliation of Movements in Shareholders' Funds

for the year ended 31 March 2006

                               Equity            Capital          Capital    Capital                
                                                                                                    
                      Share Component   Share Redemption Special Reserve-   Reserve- Revenue        
                                                                                                    
                    Capital   of CULS Premium    Reserve Reserve Realised Unrealised Reserve   Total
                                                                                                    
                      £'000     £'000   £'000      £'000   £'000    £'000      £'000   £'000   £'000
                                                                                                    
At 31 March 2004     13,984         -  23,200         50  19,728   22,311      8,555   3,084  90,912
(as previously                                                                                      
stated)                                                                                             
                                                                                                    
Revaluation of            -         -       -          -       -        -      (181)       -   (181)
investments to fair                                                                                 
value                                                                                               
                                                                                                    
Adjustment to CULS        -       100       -          -       -     (10)          -     (9)      81
                                                                                                    
Add final dividend        -         -       -          -       -        -          -   1,566   1,566
for 2004                                                                                            
                                                                                                    
At 1 April 2004      13,984       100  23,200         50  19,728   22,301      8,374   4,641  92,378
(restated)                                                                                          
                                                                                                    
Equity component of       -         -       -          -       -        -          - (1,566) (1,566)
CULS                                                                                                
                                                                                                    
Final dividend for        -     1,002       -          -       -        -          -       -   1,002
2004                                                                                                
                                                                                                    
Return for the year       -         -       -          -       -    1,861     12,973   3,295  18,129
from income                                                                                         
statement                                                                                           
                                                                                                    
Dividend for 2005         -         -       -          -       -        -          - (1,175) (1,175)
                                                                                                    
At 31 March 2005     13,984     1,102  23,200         50  19,728   24,162     21,347   5,195 108,768
(restated)*                                                                                         
                                                                                                    
Return for the year       -         -       -          -       -        -          - (2,070) (2,070)
from income                                                                                         
statement                                                                                           
                                                                                                    
Interim dividend          -         -       -          -       -    4,663     22,326   3,940  30,929
for 2006                                                                                            
                                                                                                    
Final dividend for        -         -       -          -       -        -          - (1,231) (1,231)
2005                                                                                                
                                                                                                    
Purchase of               -         -       -          -   (955)        -          -       -   (955)
Treasury shares                                                                                     
                                                                                                    
At 31 March 2006     13,984     1,102  23,200         50  18,773   28,825     43,673   5,834 135,441

* Restated for new UK Accounting Standards

Balance Sheet

As at 31 March

                                                 2006                      2005
                                                                               
                                                         £'000      (Restated)*
                                                                               
                                                                          £'000
                                                                               
Fixed assets                                                                   
                                                                               
  Investments at fair value through profit or          152,840          126,127
loss                                                                           
                                                                               
Current assets                                                                 
                                                                               
  Debtors                                                1,347            1,068
                                                                               
  Cash at bank                                             486              137
                                                                               
                                                         1,833            1,205
                                                                               
Creditors: amounts falling due within one year           (688)            (139)
                                                                               
Net current assets                                       1,145            1,066
                                                                               
Total assets less current liabilities                  153,985          127,193
                                                                               
Creditors: amounts falling due after more than        (18,544)         (18,425)
one year                                                                       
                                                                               
Total net assets                                       135,441          108,768
                                                                               
Capital and reserves                                                           
                                                                               
Called-up share capital                                 13,984           13,984
                                                                               
Equity component of CULS                                 1,102            1,102
                                                                               
Share premium account                                   23,200           23,200
                                                                               
Other capital reserves:                                                        
                                                                               
  Capital redemption reserve                                50               50
                                                                               
  Special reserve                                       18,773           19,728
                                                                               
  Capital reserve - realised                            28,825           24,162
                                                                               
  Capital reserve - unrealised                          43,673           21,347
                                                                               
Revenue reserve                                          5,834            5,195
                                                                               
Equity Shareholders' funds                             135,441          108,768
                                                                               
Net asset value per ordinary share                                             
                                                                               
  - basic                                               244.3p           194.5p
                                                                               
  - diluted                                             229.5p           189.8p

* Restated for new UK Accounting Standards

Cash Flow Statement

For the year ended 31 March

                                                 2006                      2005
                                                                               
                                                         £'000         restated
                                                                               
                                                                          £'000
                                                                               
Cash flow from operating activities                      3,724            3,324
                                                                               
Servicing of finance                                     (903)            (957)
                                                                               
Net financial investment                                 1,784         (10,952)
                                                                               
Equity dividends paid                                  (3,301)          (2,741)
                                                                               
Cash inflow/(outflow) before management of               1,304         (11,326)
liquid resources and financing                                                 
                                                                               
Financing                                                (955)           11,452
                                                                               
Increase in cash                                           349              126
                                                                               
Reconciliation of cash flow to movement in net                                 
debt                                                                           
                                                                               
Increase in cash                                           349              126
                                                                               
Cash outflow from decrease in bank loan                      -            5,575
                                                                               
Net cash inflow from issue of CULS                           -         (17,027)
                                                                               
Non-cash movement on CULS                                (119)              968
                                                                               
Change in net debt resulting from cash flows               230         (10,358)
                                                                               
Net debt at beginning of year                         (18,288)          (7,930)
                                                                               
Net debt at end of year                               (18,058)         (18,288)

1. Accounting policies

The financial statements have been prepared under the historical cost
convention modified to include the revaluation of fixed assets and in
accordance with applicable UK Accounting Standards and with the Statement of
Recommended Practice (SORP) for `Financial Statements of Investment Trust
Companies' issued in 2005 by the Association of Investment Trust Companies.

The same accounting policies used for the year ended 31 March 2005 have been
applied, with the following exceptions:

a) Investments

Investments are recognised on the date that they are traded and are classified
as fair value through profit or loss. As the Company's business is investing in
financial assets with a view to profiting from their total return in the form
of interest, dividends or increases in fair value, listed equities and fixed
income securities are designated as fair value through profit or loss on
initial recognition.

Financial assets designated as at fair value through profit or loss are
measured at subsequent reporting dates at fair value, which is the bid price.
Previously these were valued at mid price. Comparatives have been restated to
reflect this change as disclosed in note 2(b).

Any gains or losses whether realised or unrealised, arising on fixed asset
investments are taken through the income statement and transferred to capital
reserves.

b) Finance costs

Finance costs are accounted for on an accruals basis, and in accordance with
the provisions of Financial Reporting Standard 26 `Financial Instruments:
Measurement'.

CULS - Financial Reporting Standard 25 `Recognition' required compound
financial instruments to be split into their liability and equity components at
initial recognition. At the date of issue the fair value of the liability
component is estimated using the prevailing market interest rate for similar
non convertible debt and the difference between the proceeds of issue and this
value represent the unchanging value of the equity component. The liability
component is recognised at amortised cost, using the effective interest method.
These finance costs are recognised through the income statement and allocated
50:50 to capital and revenue.

c) Dividends

Following the introduction of FRS21 "Events After the Balance Sheet Date",
dividends are not recognised in the accounts unless there is an obligation to
pay at the balance sheet date. As a result, the accounts for the year ended 31
March 2005 have been restated to reflect this change (see note 2) and the final
dividend for the year ended 31 March 2006 is disclosed as shown in note 5.

2. Restatement of previously reported balances for effects of new UK Accounting
Standards

a) Balance Sheet as at 31 March 2004

                                          Previously Adjustments         
                                                                         
                                            reported       £'000         
                                                                         
                                            31 March             Restated
                                                                         
                                                2004             1 April 
                                                                         
                                               £'000             2004    
                                                                         
                                                                    £'000
                                                                         
Investments (i)                              100,464       (181)  100,283
                                                                         
Current assets                                 1,187           -    1,187
                                                                         
Creditors: amounts falling due within one                                
year:                                                                    
                                                                         
Amount due to brokers                        (1,091)           -  (1,091)
                                                                         
Bank loan                                    (5,575)              (5,575)
                                                                         
Interest on loan                                (24)           -     (24)
                                                                         
Proposed dividend (ii)                       (1,566)       1,566        -
                                                                         
Accruals and deferred income                   (117)           -    (117)
                                                                         
                                             (8,373)       1,546  (6,807)
                                                                         
Net current assets/(liabilities)             (7,186)       1,566  (5,620)
                                                                         
Total assets less current liabilities         93,278       1,385   94,663
                                                                         
Creditors: amounts falling due after one                                 
year:                                                                    
                                                                         
CULS                                         (2,366)          81  (2,285)
                                                                         
Net Assets                                    90,912       1,466   92,378
                                                                         
Capital and reserves                                                     
                                                                         
Called-up share capital                       13,984           -   13,984
                                                                         
Equity component of CULS (iii)                     -         100      100
                                                                         
Share premium                                 23,200           -   23,200
                                                                         
Capital redemption reserve                        50           -       50
                                                                         
Special reserve share buy-back                19,728           -   19,728
                                                                         
Capital reserve - realised (iii)              22,311        (10)   22,301
                                                                         
Capital reserve - unrealised (i)               8,555       (181)    8,374
                                                                         
Revenue reserve (ii), (iii)                    3,084       1,557    4,641
                                                                         
Equity shareholders' funds                    90,912       1,466   92,378
                                                                         
Net asset value per ordinary share -          162.5p        2.6p   165.1p
basic                                                                    
                                                                         
- diluted                                     162.5p        2.6p   165.1p

b) Balance Sheet as at 31 March 2005

                                          Previously Adjustments         
                                                                         
                                            reported       £'000         
                                                                         
                                            31 March             Restated
                                                                         
                                                2005             1 April 
                                                                         
                                               £'000                 2005
                                                                         
                                                                    £'000
                                                                         
Investments (i)                              126,332       (205)  126,127
                                                                         
Current assets                                 1,205           -    1,205
                                                                         
Creditors: amounts falling due within one                                
year:                                                                    
                                                                         
Proposed dividend (ii)                       (2,070)       2,070        -
                                                                         
Accruals and deferred income                   (139)           -    (139)
                                                                         
Creditors: amounts falling due after one                                 
year:                                                                    
                                                                         
CULS (iii)                                  (19,319)         894 (18,425)
                                                                         
Net assets                                   106,009       2,759  108,768
                                                                         
Capital and reserves                                                     
                                                                         
Called-up share capital                       13,984           -   13,984
                                                                         
Equity component of CULS (iii)                     -       1,102    1,102
                                                                         
Share premium                                 23,200           -   23,200
                                                                         
Capital redemption reserve                        50           -       50
                                                                         
Special reserve share buy-back                19,728           -   19,728
                                                                         
Capital reserve - realised (iii)              24,266       (104)   24,162
                                                                         
Capital reserve - unrealised (i)              21,552       (205)   21,347
                                                                         
Revenue reserve (ii), (iii)                    3,229       1,966    5,195
                                                                         
Equity shareholders' funds                   106,009       2,759  108,768
                                                                         
Net asset value per ordinary share -          189.5p        5.0p   194.5p
basic                                                                    
                                              185.4p        4.4p   189.8p
- diluted                                                                

c) Income Statement for the year ended 31 March 2005

                                                          For the
                                                                 
                                                       Year ended
                                                                 
                                                         31 March
                                                                 
                                                             2005
                                                                 
Revenue returns as previously reported                        145
                                                                 
Capital returns as previously reported                     14,952
                                                                 
Total return as previously reported                        15,097
                                                                 
Adjustments arising from adoption of new Accounitng              
Standards                                                        
                                                                 
Dividend recognised in 2005 and paid in 2006                3,245
                                                                 
Revaluation charge of investments to fair value at 31         181
Mach 2004                                                        
                                                                 
Revaluation charge of investments to fair value at 31       (205)
March 2005                                                       
                                                                 
CULS                                                        (189)
                                                                 
Restated total return                                      18,129

d) Notes

i) Investments are classified as held at fair value being the bid price for all
listed investments, previously they were carried at mid price.

ii) Dividends are not recognised until they are declared and approved by
shareholders. Accordingly no provision is made for the proposed final dividend
and it is added back to revenue reserves for the year.

iii) CULS are separated into their debt and equity components at time of issue
and finance costs are recognised using the effective interest method.

3. Income

                                                           2006           2005
                                                                              
                                                          £'000          £'000
                                                                              
Income from listed investments                                                
                                                                              
UK dividends                                              4,904          4,004
                                                                              
UK unfranked investment income - interest                   266            532
                                                                              
                                                          5,170          4,536
                                                                              
Deposit interest                                             52             51
                                                                              
Total income                                              5,222          4,587
                                                                              
Dividends                                                 4,904          4,004
                                                                              
Interest                                                    318            583
                                                                              
                                                          5,222          4,587

4. Investment management fee

                          2006                                       2005
                                                                         
                          Revenue Capital   Total Revenue Capital   Total
                                                                         
                          £'000     £'000   £'000   £'000   £'000   £'000
                                                                         
Investment management fee     469     469     938     389     389     778
                                                                         
Irrecoverable VAT thereon      82      82     164      68      68     136
                                                                         
                              551     551   1,102     457     457     914

The Company's Manager is INVESCO Asset Management Limited ("INVESCO"). The
contract between the Company and INVESCO may be terminated on one year's notice
and immediately in certain other circumstances. With effect from 1 April 2005,
the investment management fee is calculated and payable monthly in arrears
based on the value of the funds under management before deducting borrowings,
of 0.7% up to £100 million and 0.6% thereafter (previously 0.7% up to £50
million, 0.65% on the next £50 million and 0.6% thereafter). This fee is
allocated 50% to capital and 50% to revenue (2005: same) in accordance with the
Board's expected long-term split of returns, in the form of capital gains and
income respectively, from the investment portfolio of the Company. At 31 March
2006 £99,000 (2005: £41,000) was owed in respect of management fees.

5. Dividends on ordinary shares

                                                        2006       2005
                                                                       
                                                          £'000   £'000
                                                                       
Amounts recognised as distributions to equity holders                  
in year:                                                               
                                                                       
Final dividend for the year ended 31 March 2005                        
                                                                       
of 3.7p (2004: second interim of 2.8p)                    2,070   1,566
                                                                       
Interim dividend for the year ended 31 March 2006                      
                                                                       
of 2.2p (2005: 2.1p) per share                            1,231   1,175
                                                                       
                                                          3,301   2,741

Set out below is the total dividend payable in respect of the financial year,
which is the basis on which the requirements of Section 842 Income and
Corporation Taxes Act 1988 are considered.

                                                        2006       2005
                                                                       
                                                        £'000     £'000
                                                                       
Interim dividend for the year ended 31 March 2006                      
                                                                       
of 2.2p (2005: 2.1p) per share                           1,231    1,175
                                                                       
Proposed special dividend for the year ended 31 March                  
2006                                                                   
                                                                       
of 0.90p (2005: nil)                                       494        -
                                                                       
Proposed final dividend for the year ended 31 March                    
2006                                                                   
                                                                       
of 3.95p (2005: 3.7p) per share                          2,170    2,070
                                                                       
                                                         3,895    3,245

6. Return per ordinary share

                         2006                               2005           
                                                                           
                                                          Restated         
                                                                           
                         Revenue  Capital  Total Revenue Capital      Total
                                                                           
Return per ordinary                                                        
share:                                                                     
                                                                           
- basic                      7.1p   48.3p  55.4p    5.9p   26.5p      32.4p
                                                                           
- diluted                    5.9p   40.2p  46.1p    4.9p   21.9p      26.8p

Basic revenue return, capital return and total return per ordinary share is
based on each of the net returns on ordinary activities after taxation and on
55,834,064 (2005: 55,935,724) ordinary shares, being the weighted average
number of ordinary shares in issue during the year.

Diluted revenue return capital return and total return per ordinary share is
based on each of the net returns on ordinary activities before interest but
after tax and on 67,487,630 (2005: 67,589,290) being the weighted average
number of ordinary shares, assuming conversion of the CULS, in issue in the
year.

7. Reconciliation of operating profit to operating cashflows

                                                       2006         2005
                                                                        
                                                                Restated
                                                                        
                                                       £'000       £'000
                                                                        
Total income before finance costs and taxation           31,953   19,177
                                                                        
Adjustment for gains on investments                    (28,053) (15,827)
                                                                        
Decrease in debtors                                       (185)     (48)
                                                                        
Increase in creditors                                         9       22
                                                                        
Net cash inflow from operating activities                 3,724    3,324

The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2006. The financial information
for 2005 is derived from the statutory accounts for 2005 which have been
delivered to the Registrar of Companies. The auditors have reported on the 2005
statutory accounts and their report was unqualified and did not contain a
statement under s237(2) or (3) of the Companies Act 1985. The statutory
accounts for 2006 are currently unaudited, but will be finalised on the basis
of the information presented by the Directors in this preliminary announcement
and will be delivered to the Registrar of Companies following the Company's
Annual General Meeting.

The audited Report and Accounts will be posted to shareholders shortly. Copies
may be obtained during normal business hours from the Company's Registered
Office, 30 Finsbury Square, London, EC2A 1AG.

The Annual General Meeting will be held on 4 July 2006 at 12noon at 30 Finsbury
Square, London, EC2A 1AG.

By order of the Board

INVESCO Asset Management Limited

2 June 2006

Contacts:

Mr Tim Mitchell

Tel - 020 7065 3182

Mr Andrew Watkins

Tel - 020 7065 4023

Mrs Karina Bryant

Tel - 020 7065 3644