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Fins Growth Inc Tst (FGT)

  Print      Mail a friend       Annual reports

Tuesday 10 May, 2011

Fins Growth Inc Tst

Preliminary Announcement of Results


                                                          For immediate release

                                                                    10 May 2011

To: City Editors

                      Finsbury Growth & Income Trust PLC                       

         Announces Interim Results for the six months to 31 March 2011         

Financial Highlights:                   (Unaudited)     (Audited)     % change
                                                                              
                                      31 March 2011  30 September             
                                                                              
                                                             2010             
                                                                              
Share price                                  318.0p        297.8p         +6.8
                                                                              
Net asset value per share (inc               326.0p        301.4p         +8.2
income)                                                                       
                                                                              
Net asset value per share (ex                321.6p        297.0p         +8.3
income)                                                                       
                                                                              
(Discount)/premium of share price            (1.1)%          0.3%          n/a
to net asset value per share (ex                                              
income)                                        7.1%          6.7%          n/a
                                                                              
Gearing+                                                                      
                                                                              
Shareholders' funds                         £174.3m       £159.6m         +9.2
                                                                              
Market capitalisation                       £170.1m       £157.7m         +7.9
                                                                              
Number of shares in issue                53,487,423    52,947,423         +1.0
                                                                              
                                   Six months to 31   One year to             
                                         March 2011                           
                                                     30 September             
                                                             2010             
                                                                              
Share price (total return)#                   +8.3%        +33.1%             
                                                                              
Net asset value per share (total             +10.3%        +25.6%             
return)#                                                                      
                                                                              
FTSE All-Share Index (total                   +8.5%        +12.5%             
return)                                                                       
                                                                              
(Company benchmark)                                                           
                                                                              
Dividends                            Year ending 30    Year ended             
                                     September 2011                           
                                                     30 September             
                                                             2010             
                                                                              
First interim dividend               4.4p per share      4.4p per             
                                                            share             
                                                                              
Second interim dividend            Yet to be             4.4p per             
                                   declared                 share             

# Source - Morningstar

+ Calculated by dividing the drawn down amount from the loan facility by
Shareholders' funds.

For and on behalf of

Frostrow Capital LLP, Secretary

10 May 2011

                                   - ENDS -                                    

The following are attached:

* Chairman's Statement

* Investment Manager's Review

* Income Statement

* Reconciliation of Movements in Shareholders' Funds

* Balance Sheet

* Cash Flow Statement

* Notes to the Interim Accounts

For further information please contact:

Alastair Smith/Mark Pope, Frostrow Capital LLP 020 3008 4911/4913

Jo Stonier, Quill Communications 020 7758 2236

Nick Train, Lindsell Train Limited 020 7227 8200

Chairman's Statement

Performance

I am pleased to report that for the six months under review the Company
continued its strong run of performance with a net asset value per share total
return of 10.3% and a share price total return of 8.3%. These results compare
favourably with the Company's benchmark, the FTSE All-Share Index, measured on
a total return basis, which provided a return of 8.5% during the same period.
The principal contributors to net asset value performance were our holdings in
Rathbone Brothers, Schroders, Diageo and Fidessa. Further information on the
Company's entire portfolio can be found in our Investment Manager's Review.

The price of the Company's shares began the period at a 0.3% premium to the
Company's ex-income net asset value per share and moved to a 1.1% discount at
the period end. At the time of writing it is a 1.1% premium.

I am delighted to report that the Company was a winner in the UK Growth &
Income Category at the 2011 Moneywise, Investment Trust Awards.

Share Capital and Discount Control

The Company has now issued a total of 1,865,000 new shares since 1 October 2010
at a minimum 0.5% premium to the estimated cum income net asset value per share
at the time of issue. We believe our ability to meet the market's demand for
liquidity in this way is very beneficial for all investors: not just those
wishing to buy, but those continuing to hold and those wishing to sell. Good
liquidity also helps to preserve a narrower dealing spread in the Company's
shares.

The Board attaches considerable importance to its discount control mechanism
which we use actively when necessary. The Company's strong performance and
ongoing demand for its shares have kept the discount of the Company's share
price to the net asset value per share tight; the average month-end discount of
share price to the ex-income net asset value per share during the half year was
0.9%.

Return and Dividend

The Income Statement shows a total return per share of 28.9p (six months ended
31 March 2010: 37.8p) consisting of a revenue return per share of 2.8p (six
months ended 31 March 2010: 4.1p) and a capital return per share of 26.1p (six
months ended 31 March 2010: 33.7p). The Board has declared an unchanged first
interim dividend of 4.4p per share which was paid on 6 May 2011 to shareholders
on the register on 1 April 2011. The associated ex dividend date was 30 March
2011. The Company's net revenue return for the period under review was less
than the same period last year, due principally to timing differences in the
receipt of dividends from a number of the Company's investments.

Borrowings

Your Company has a fixed term committed secured revolving credit facility of £
20m which is subject to a variable rate of interest. As at 31 March 2011 a
total of £12.35m was drawn down under this facility. We believe that the
availability of a meaningful gearing facility of this kind is very useful for a
closed end investment company such as ours.

Developments in the Investment Trust Sector

HM Treasury's review of the tax and company law rules affecting investment
trusts set out in its consultation document last summer has now resulted in
sensible and beneficial amendments which will be advantageous to the whole
industry. Our trade association, the Association of Investment Companies (AIC),
played a leading role in reaching this satisfactory conclusion of the review.

The Alternative Investment Fund Managers Directive was passed into law by the
European Parliament last summer, but there is much detail still to emerge
before this Directive takes effect in 2013. It is however clear that much of
the over-bureaucratic regulation first proposed has been abandoned in favour of
more pragmatic measures and the AIC again played a major role in achieving
this.

Outlook

It is expected that the modest growth anticipated in the UK economy during the
rest of this year and into 2012 will be export led and that consumer spending
growth is likely to lag GDP growth as credit conditions remain relatively tight
and earnings growth remains subdued. However, shareholders will know that most
of the companies in our portfolio are international in their operations so they
are not entirely at the mercy of the UK economy.

Your Board believes that our Investment Manager's strategy of investing for the
long term in durable cash generative franchises capable of sustained dividend
growth will continue to deliver superior investment returns to shareholders.

Anthony Townsend

Chairman

Investment Manager's Review

Of course we are pleased that your Company's net asset value per share
outperformed the FTSE All-Share Index again over the recent period.
Nonetheless, we feel duty-bound to admit to shareholders that we regard such
outperformance as random. This is because we make no attempt to micro-manage
the portfolio to achieve a given performance objective from half year to half
year (or even from year to year). Trying to fine tune an investment strategy
over such relatively short term periods is far too difficult for us. Instead,
we hope to achieve satisfactory longer term returns for you by maintaining a
collection of holdings in fine businesses (which we analyse to be undervalued)
and otherwise leave as well alone as we prudently may.

This does not mean that we do not closely follow the companies in which we've
invested your capital - we do. And, in particular, we pay attention to dividend
progression. What follows is a brief review of each constituent (listed
alphabetically), beginning with an update on its most recent dividend
announcement. We hope you will be impressed by the pace of dividend growth
across the portfolio after our disappointments on this score last year, and
share our conviction that it remains positioned to generate acceptable absolute
and relative returns into the future.

A.G.Barr - (Last dividend +10% year on year). Key brands - IRN-BRU and Rubicon
(the latter an inspired 2007 acquisition) - will drive further growth and the
growth of soft drink brands has the propensity to generate a lot of valuable
cash. Barr remains a core holding for your Company. Nonetheless, given the size
of the commitment - at one stage in 2010 it accounted for nearly 15% of your
assets - and the sub 2% dividend yield at the current price, we still believe
it made sense to reduce the holding somewhat last year.

Burberry Group - (Dividend +43%). Sales of luxury goods continue to be
amazingly robust. Meanwhile LVMH, owner of Louis Vuitton, of course, and run by
the very shrewd M. Arnault, has recently twice placed values on comparable
assets - Hermes and Bulgari (by bidding for them) - that make Burberry look
undervalued.

Celtic - (Does not pay a dividend). The economics of Scottish football remain
challenging and the club is barely profitable. However, we note that both
Arsenal and Roma SA have changed hands in recent weeks, acquired by rational,
profit-seeking US entrepreneurs and at valuations very much higher than that
commanded by Celtic on the public market. This is a unique "trophy" asset and
an underexploited global brand.

Daily Mail & General Trust - ( Dividend +11%). We remain excited by the growth
in the company's online properties, particularly MailOnline, which is turning
into a Facebook-type phenomenon. In the first quarter of this year Time Warner
purchased US gossip website Huffington Post. If we extrapolate from the very
fancy price paid by Time Warner there are £100ms of unrecognised value in Daily
Mail, in our opinion.

Diageo - (Dividend +6%). Peripheral Europe is very tough and it is true that
Greece, Ireland and Spain are important Diageo markets. What is reassuring is
Diageo's relatively debt-free balance sheet which allows it to take a place at
the table for all current auctions of spirits brands. Diageo is one of the UK's
few truly industry-leading global companies, positioning itself for much higher
earnings into the next upswing. Meanwhile its shares offer market beating yield
and dividend growth.

Dr Pepper Snapple - (Dividend +20%). Coke and Pepsi are struggling for growth
in US, but Pepper's non-cola brands are taking share there and, like Barr, it
is a lovely cash machine.

Euromoney Institutional Investor - (Dividend +52%). Daily Mail's sister
company. Shares are consolidating after a great run in 2010, but this is still
the best collection of business to business financial media assets we know in
the world. Bank Credit Analyst, Euromoney and Metal Bulletin, for instance, are
"must-reads" for their respective industries.

Fidessa - (Dividend +10%). Shares are hitting new 10 year highs, but still 25%
below the all time peak of the Tech Boom. Fidessa is a much bigger and better
company today than it was in 2000 and is an increasingly indispensible part of
the plumbing of world capital markets.

Fuller Smith & Turner - (Dividend +5.5%). Investors worry about the economic
squeeze on Middle England pub visits, but Fuller's London bias and clean
balance sheet are helping it. We expect the company to pick up more fine assets
from distressed competitors.

Greene King - (Dividend +6.7%). Maintained capital expenditure paid back debt
and increased dividend in 2010 - triply reassuring. But it sits in the
unpopular pub/brewing sector. Greene King offers a growing dividend, starting
from a yield 70% above the market average. For us this adequately compensates
for temporary tough times. Now a c2.0% holding and one to which we have been
adding in 2011.

Hargreaves Lansdown - (Dividend +22%). Asset growth remains exceptionally
strong. A beneficiary of both the urgent requirement felt by UK individuals to
provide for their retirements and the general suspicion and disdain felt for
High Street financial service providers.

Kraft Foods - (Dividend unchanged). We expect the undoubted benefits of its
Cadbury acquisition to hasten a return to dividend growth.

Lloyds Preference Shares - (No dividend). Assuming Lloyds is no worse a risk
than RBS, we think these preferred shares could trade at c£1.00, rather than c£
0.90 today. We are still 12 months away from dividend resumption; although, on
balance, we think the chances of that resumption have improved.

London Stock Exchange - (Dividend +4.7%). Volumes of share dealing and new
listings are picking up with the capital market cycle. Meanwhile the exchange
industry is in flux, as participants look to establish dominant global
liquidity pools. The London Stock Exchange remains a resonant brand and likely
lynch-pin in any such global combination.

Marston's - (Dividend unchanged). The recent trading update was encouraging,
highlighting the self-help available to an inherently cash-generative business,
even in a downturn. Its directors have been buying shares for their own
accounts, while similar pub assets are changing hands across the industry at
prices that make Marston's look cheap.

Pearson - (Dividend +7%). By applying digital technology to the education
industry Pearson has accelerated its growth and improved its profitability.
This is a major holding for your Company and one where we have high hopes for a
major rerating. The company has the look of one of the great growth stock
stories of second decade of the century.

Rathbone Brothers - (Dividend +8%). Rathbone's shares have perked up in 2011,
after a dull phase. The company remains a conservatively financed and strong
franchise in the savings industry, offering participation to wealth creation in
the UK economy and the fortunes of global financial markets. We are bullish on
both.

Reed Elsevier - (Dividend unchanged). As demonstrated by other portfolio
holdings (e.g. Fidessa and Pearson), we are already in the early stages of a
new and potentially very rewarding bull market for Media and Technology
companies. Reed, however, remains disappointingly stranded, both in terms of
its business and its share price. This despite its wonderful assets - number
one in Global Scientific Publishing, number two in Global Legal Publishing,
number one in Global Exhibitions. The new Chairman and CEO have talked a decent
story over the last 12 months, now is the time to deliver.

Sage Group - (Dividend +6%). Sage is valued as if it were a low growth
engineering company, despite high profit margins and wonderful cash generation.
If its new CEO can conjure up even a modest acceleration in its sales growth
then the shares could move back toward previous highs - almost 3.0x above
today's levels.

Schroders - (Dividend +24%). Blow-out recent results, with a welcome marked
acceleration in dividend growth. The company is in a phase that could see a
transformative leap in its assets under management, we hope.

Thomson Reuters - (Dividend +4%). Visionary family owners encourage its
executives to invest heavily into market-leading professional information
services. A high return company in a sector investors are warming to, after
years of disregard. Please take note Reed Elsevier!

Unilever - (Dividend+5.4%). Unilever has just sold its Sanex brand to Colgate
for 3.6x Sanex' annual sales. However the rest of Unilever is valued by stock
market investors at only 1.5x sales, despite 50% of these sales deriving from
Emerging Markets. Unilever is a big company trading at a big discount to its
true strategic worth. The 4% dividend yield and dividend growth pay us to wait
while this value is unlocked.

Young & Co's Brewery - (Dividend+2%). London is a formidable economy in its own
right - as a financial centre, seat of government and tourist destination.
Youngs' pubs and beer brands offer a secure participation in the fortunes of
the capital city.

Nick Train, Lindsell Train Limited

Investment Manager

Income Statement

For the six months ended 31 March 2011

                    (Unaudited)            (Unaudited)             (Audited)       
                                                                                   
                  Six months ended       Six months ended          Year ended      
                                                                                   
                   31 March 2011          31 March 2010        30 September 2010   
                                                                                   
               Revenue Capital  Total Revenue Capital  Total Revenue Capital  Total
                                                                                   
                 £'000   £'000  £'000   £'000   £'000  £'000   £'000   £'000  £'000
                                                                                   
Gains on             -  14,364 14,364       -  17,609 17,609       -  28,733 28,733
investments                                                                        
held at fair                                                                       
value through                                                                      
profit or loss                                                                     
                                                                                   
Exchange             -       -      -       -     (3)    (3)       -     (3)    (3)
difference                                                                         
                                                                                   
Income (note     1,952       -  1,952   2,570       -  2,570   5,363       -  5,363
2)                                                                                 
                                                                                   
Investment       (184)   (374)  (558)   (140)   (285)  (425)   (305)   (619)  (924)
management and                                                                     
management           -       -      -      11      23     34      11      23     34
fees                                                                               
                                                                                   
(note 3)                                                                           
                                                                                   
Recovery of                                                                        
VAT on                                                                             
investment                                                                         
management fee                                                                     
previously                                                                         
paid                                                                               
                                                                                   
Other expenses   (208)     (4)  (212)   (278)    (87)  (365)   (492)    (89)  (581)
                                                                                   
Return on        1,560  13,986 15,546   2,163  17,257 19,420   4,577  28,045 32,622
ordinary                                                                           
activities                                                                         
before finance                                                                     
charges and                                                                        
taxation                                                                           
                                                                                   
Finance           (53)   (107)  (160)    (69)   (140)  (209)   (109)   (221)  (330)
charges                                                                            
                                                                                   
Return on        1,507  13,879 15,386   2,094  17,117 19,211   4,468  27,824 32,292
ordinary                                                                           
activities                                                                         
before                                                                             
taxation                                                                           
                                                                                   
Taxation on       (48)       -   (48)    (35)       -   (35)    (84)       -   (84)
ordinary                                                                           
activities                                                                         
                                                                                   
Return on        1,459  13,879 15,338   2,059  17,117 19,176   4,384  27,824 32,208
ordinary                                                                           
activities                                                                         
after taxation                                                                     
                                                                                   
Return per        2.8p   26.1p  28.9p    4.1p   33.7p  37.8p    8.5p   54.0p  62.5p
share (note 4)                                                                     

The "Total" column of this statement represents the Income Statement of the
Company. The "Revenue" and "Capital" columns are supplementary to this and are
prepared under guidance published by the Association of Investment Companies.

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.

Reconciliation of Movements in Shareholders' Funds

(Unaudited)             Share   Share    Capital  Special Capital Revenue   Total
                      capital premium redemption          reserve reserve        
Six months ended 31     £'000            reserve  reserve                   £'000
March 2011                    account                       £'000   £'000        
                                £'000      £'000    £'000                        
                                                                                 
At 30 September 2010   13,237  37,213      3,453   12,424  88,939   4,324 159,590
                                                                                 
Netreturnfrom               -       -          -        -  13,879   1,459  15,338
ordinary activities                                                              
                                                                                 
Second interim              -       -          -        -       - (2,330) (2,330)
dividend (4.4p per                                                               
share) for the year                                                              
ended 30 September 20                                                            
10                                                                               
                                                                                 
Issue of shares           135   1,612          -        -       -       -   1,747
                                                                                 
At 31 March 2011       13,372  38,825      3,453   12,424 102,818   3,453 174,345

(Unaudited)                                                                    
                                                                               
Six months ended 31 M                                                          
arch 2010                                                                      
                                                                               
At 30 September 2009     13,199  35,914  3,453   12,424  57,890   4,779 127,659
                                                                               
Net return from               -       -      -        -  17,117   2,059  19,176
ordinary activities                                                            
                                                                               
Second interim dividend       -       -      -        -       - (2,615) (2,615)
(5.1p per share) for                                                           
the year ended 30                                                              
September 2009                                                                 
                                                                               
Repurchase of shares          -       -      -        - (5,435)       - (5,435)
into treasury                                                                  
                                                                               
Sale of shares from           -     420      -        -   4,132       -   4,552
treasury                                                                       
                                                                               
At 31 March 2010         13,199  36,334  3,453   12,424  73,704   4,223 143,337

(Audited)                                                                      
                                                                               
Year ended 30                                                                  
September 2010                                                                 
                                                                               
At 30 September 2009     13,199  35,914  3,453   12,424  57,890   4,779 127,659
                                                                               
Net return from               -       -      -        -  27,824   4,384  32,208
ordinary activities                                                            
                                                                               
Second interim                -       -      -        -       - (2,615) (2,615)
dividend (5.1p per                                                             
share) for the year                                                            
ended 30 September                                                             
2009                                                                           
                                                                               
First interim dividend        -       -      -        -       - (2,224) (2,224)
(4.4p per share) for                                                           
the year ended 30            38     381      -        -       -       -     419
September 2010                                                                 
                                                                               
Issue of shares                                                                
                                                                               
Repurchase of shares          -       -      -        - (5,934)       - (5,934)
into treasury                                                                  
                                                                               
Sale of shares from           -     918      -        -   9,159       -  10,077
treasury                                                                       
                                                                               
At 30 September 2010     13,237  37,213  3,453   12,424  88,939   4,324 159,590

Balance Sheet

As at 31 March 2011

                              (Unaudited)    (Unaudited)          (Audited)
                                                                           
                             31 March2011  31 March 2010  30 September 2010
                                                                           
                                    £'000          £'000              £'000
                                                                           
Fixedassets                                                                
                                                                           
Investments designated            185,653        147,826            168,514
at fair value through                                                      
profit or loss                                                             
                                                                           
Current assets                                                             
                                                                           
Debtors                               527          2,529                613
                                                                           
Cash at bank                          670          7,646              1,387
                                                                           
                                    1,197         10,175              2,000
                                                                           
Current liabilities                                                        
                                                                           
Creditors                           (155)          (214)              (224)
                                                                           
Bank loan                        (12,350)       (14,450)           (10,700)
                                                                           
                                 (12,505)       (14,664)           (10,924)
                                                                           
Net current liabilities          (11,308)        (4,489)            (8,924)
                                                                           
Total net assets                  174,345        143,337            159,590
                                                                           
Capital and reserves                                                       
                                                                           
Share capital                      13,372         13,199             13,237
                                                                           
Share premium account              38,825         36,334             37,213
                                                                           
Capital redemption                  3,453          3,453              3,453
reserve                                                                    
                                                                           
Special reserve                    12,424         12,424             12,424
                                                                           
Capital reserve                   102,818         73,704             88,939
                                                                           
Revenue reserve                     3,453          4,223              4,324
                                                                           
Equity shareholders'              174,345        143,337            159,590
funds                                                                      
                                                                           
Net asset value per                326.0p         281.9p             301.4p
share                                                                      
                                                                           
(note 5)                                                                   

Cash Flow Statement

For the six months ended 31 March 2011

                               (Unaudited)      (Unaudited)          (Audited)
                                                                              
                             31 March 2011    31 March 2010  30 September 2010
                                                                              
                                     £'000            £'000              £'000
                                                                              
Net cash inflow from                 1,202              276              4,244
operating activities (note                                                    
7)                                                                            
                                                                              
Servicing of finance                                                          
                                                                              
Loan interest and                    (212)            (192)              (326)
arrangement fees paid                                                         
                                                                              
Financial investment                                                          
                                                                              
Purchase of investments            (5,470)          (6,473)           (19,152)
                                                                              
Sale of investments                  2,696           15,055             18,170
                                                                              
Net cash (outflow)/inflow          (2,774)            8,582              (982)
from financial investment                                                     
                                                                              
Equity dividends paid              (2,330)          (2,615)            (4,839)
                                                                              
Net cash (outflow)/inflow          (4,114)            6,051            (1,903)
before financing                                                              
                                                                              
Financing                                                                     
                                                                              
Shares issued net of issue           1,747                -                419
expenses                                                                      
                                         -          (5,435)            (5,934)
Repurchase of shares into                                                     
treasury                                                                      
                                                                              
Sale of shares from                      -            4,552             10,077
treasury                                                                      
                                                                              
Drawdown/repayment of loans          1,650              950            (2,800)
                                                                              
Net cash inflow from                 3,397               67              1,762
financing                                                                     
                                                                              
(Decrease)/increase in cash          (717)            6,118              (141)
                                                                              
Reconciliation of net cash                                                    
flow to movement in net                                                       
debt                                                                          
                                                                              
(Decrease)/increase in cash          (717)            6,118              (141)
resulting from cashflows                                                      
                                                                              
(Increase)/decrease in debt        (1,650)            (950)              2,800
                                                                              
Exchange movements                       -              (3)                (3)
                                                                              
Movement in net debt               (2,367)            5,165              2,656
                                                                              
Net debt at start of period        (9,313)         (11,969)           (11,969)
/year                                                                         
                                                                              
Net debt at end of period/        (11,680)          (6,804)            (9,313)
year                                                                          

Notes to the interim accounts

1.  Basis of Preparation                                                       
                                                                               
    The condensed financial statements have been prepared under the historical 
    cost convention, except for the measurement of investments at fair value of
    investments and in accordance with UK Generally Accepted Accounting        
    Practice (GAAP) and the Statement of Recommended Practice (SORP) for       
    `Financial Statements of Investment Trust Companies and Venture Capital    
    Trusts' issued by the Association of Investment Companies dated January    
    2009.                                                                      
                                                                               
    The same accounting policies used for the year ended 30 September 2010 have
    been applied.                                                              
                                                                               
2.  Income                                                                     
                                                                               
                                        (Unaudited)     (Unaudited)   (Audited)
                                                                               
                                         Six months      Six months  Year ended
                                              ended           ended          30
                                                                      September
                                      31 March 2011   31 March 2010        2010
                                                                               
                                              £'000           £'000       £'000
                                                                               
    Income from investments                                                    
                                                                               
    Franked investment income                 1,679           2,293       4,807
                                                                               
    -dividends                                                                 
                                                                               
    Unfranked investment income                                                
                                                                               
    -limited liability partnership                -              80          80
    profit-share                                                               
                                                                               
    -overseas dividends                         273             184         463
                                                                               
    Other income                              1,952           2,557       5,350
                                                                               
    Interest from HMRC (ie:VAT                    -              13          13
    reclaim on management fees)                                                
                                              1,952           2,570       5,363
    Total                                                                      
                                                                               
3.  Investment Management and Management Fees                                  
                                                                               
                                         (Unaudited) (Unaudited)      (Audited)
                                                                               
                                          Six months  Six months     Year ended
                                               ended       ended               
                                                                   30 September
                                        31 March 201    31 March               
                                                   1        2010           2010
                                                                               
                                               £'000       £'000          £'000
                                                                               
    Investment management fee                    370         277            606
                                                                               
    Management fee                               158         127            272
                                                                               
    VAT thereon*                                  30          21             46
                                                                               
    Total                                        558         425            924
                                                                               
    * VAT on management fee.                                                   
                                                                               
4.  Returnpershare                                                             
                                                                               
    The total return per share is based on the total return attributable to    
    equity shareholders of £15,338,000 (six months ended 31 March 2010: return 
    of £19,176,000; year ended 30 September 2010: return of £32,208,000) and on
    53,062,424 shares (six months ended 31 March 2010: 50,760,106; year ended  
    30 September 2010: 51,546,561), being the weighted average number of shares
    in issue.                                                                  
                                                                               
    The revenue return per share is calculated by dividing the net revenue     
    return of £1,459,000 (six months ended 31 March 2010: return of £2,059,000;
    year ended 30 September 2010: return of £4,384,000) by the weighted average
    number of shares in issue as above.                                        
                                                                               
    The capital return per share is calculated by dividing the net capital     
    return attributable to shareholders of £13,879,000 (six months ended 31    
    March 2010: loss of £17,117,000; year ended 30 September 2010: return of £ 
    27,824,000) by the weighted average number of shares in issue as above.    
                                                                               
5.  Net asset value per share                                                  
                                                                               
    The net asset value per share is based on net assets attributable to shares
    of £174,345,000 (31 March 2010: £143,337,000 and 30 September 2010: £      
    159,590,000) and on 53,487,423 shares in issue (31 March 2010: 50,855,811  
    and 30 September 2010: 52,947,423) (excluding treasury shares)             
                                                                               
6.  Transaction costs                                                          
                                                                               
    Purchase transaction costs for the six months ended 31 March 2011 were £   
    39,000 (six months ended 31 March 2010: £47,000; year ended 30 September   
    2010: £141,000).                                                           
                                                                               
    Sales transaction costs for the six months ended 31 March 2011 were £4,000 
    (six months ended 31 March 2010: £9,000; year ended 30 September 2010: £   
    22,000).                                                                   
                                                                               
7.  Reconciliation of net totalreturnbefore finance costs and taxation to net  
    cash inflow from operating activities                                      

                                            (Unaudited) (Unaudited)   (Audited)
                                                                               
                                             Six months  Six months  Year ended
                                               ended 31    ended 31            
                                             March 2011  March 2010          30
                                                                      September
                                                  £'000       £'000            
                                                                           2010
                                                                               
                                                                          £'000
                                                                               
Total return before finance charges and          15,546      19,420      32,622
taxation                                                                       
                                                                               
Less capital return before finance charges     (13,986)    (17,257)    (28,045)
and taxation                                                                   
                                                                               
Net revenue before finance costs and              1,560       2,163       4,577
taxation                                                                       
                                                                               
Decrease in accrued income                           85         572         260
                                                                               
Decrease/(increase) in other debtors                  1     (2,092)         135
                                                                               
(Decrease)/increase in creditors                   (17)           3          26
                                                                               
Taxation - irrecoverable overseas tax paid         (49)        (21)        (69)
                                                                               
Investment management, management and             (374)       (262)       (596)
performance fees charged to capital                                            
                                                                               
Other expenses charged to capital                   (4)        (87)        (89)
                                                                               
Net cash inflow from operating activities         1,202         276       4,244

8.  2010Account                                                                
                                                                               
    The figures and financial information for the year ended 30 September 2010 
    are extracted from the latest published accounts of the Company and do not 
    constitute statutory accounts for the year.                                
                                                                               
    Those accounts have been delivered to the Registrar of Companies and       
    included the Report of the Auditors which was unqualified and did not      
    contain a reference to any matters to which the auditors drew attention by 
    way of emphasis without qualifying the report, and did not contain a       
    statement under section 498 of the Companies Act 2006.                     

Frostrow Capital LLP

Company Secretary

10 May 2011

                                   - ENDS -                                    

                      Finsbury Growth & Income Trust PLC