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Fins Growth Inc Tst (FGT)

  Print      Mail a friend       Annual reports

Wednesday 09 May, 2012

Fins Growth Inc Tst

Half-yearly Report

                                                          For immediate release

                                                                     9 May 2012

To: City Editors


Finsbury Growth & Income Trust PLC

Announces Half Year Results for the six months to 31 March 2012


Financial Highlights:          (Unaudited)  (Audited)       
                                  As at 31   As at 30       
                                     March  September      %
                                      2012       2011 Change
Share price                         347.8p     308.1p  +12.9
Net asset value per share           347.9p     310.3p  +12.1
(including income)                                          
Net asset value per share           343.3p     305.5p  +12.4
(excluding income)                                          
Premium of share price to net                               
asset value per share                                       
(excluding income)                    1.3%       0.9%      -
Gearing†                              6.4%       7.6%      -
Shareholders' funds                £219.2m    £177.6m  +23.4
Market capitalisation              £219.1m    £176.4m  +24.2
Number of shares in issue       63,017,165 57,237,423  +10.1
                                Six months   One year       
                                        to         to       
                                  31 March  September       
                                      2012       2011       
Share price (total return)#         +14.3%      +6.5%       
Net asset value per share                                   
(total return)#                     +14.4%      +5.8%       
FTSE All-Share Index (total                                 
return)                             +15.0%      -4.4%       
(Company benchmark)#                                        


                            Year ending    Year ended
Dividends                  30 September  30 September
                                   2012          2011
First interim                                4.4p per
dividend                 4.6p per share         share
Second interim                Yet to be      4.8p per
dividend                       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
9 May 2012

                                   - 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


"The Company has continued its strong returns with a net asset value total
return of 14.4% and a share price total return of 14.3%."





I am pleased to report that for the six months under review the Company has
continued its strong returns with a net asset value per share total return of
14.4% and a share price total return of 14.3%. These results were broadly in
line with the Company's benchmark, the FTSE All-Share Index, measured on a
total return basis, which rose by 15.0% during the same period. The principal
contribution to net asset value performance came from our holding in Diageo
which posted strong results during the year, including an announcement that the
proportion of its profits earned in emerging economies was now in excess of
40%. Other principal contributors included Rathbone Brothers, Schroders, Sage
Group and London Stock Exchange. Further information on the Company's portfolio
can be found in our Investment Manager's Review beginning on page 5 of the Half
Year Report 2012.

During the period, the Company's shares have consistently traded close to it
net asset value, beginning the period at a 0.9% premium to the Company's
ex-income net asset value per share and moving to a 1.3% premium at the period


Share Capital


As I reported at the year-end, due to strong demand for your Company's shares,
a General Meeting was held in December 2011 to obtain shareholder authority to
issue a further 5,824,216 shares on a non-pre­emptive basis and a Prospectus
was also published in order to obtain admission to the Official List maintained
by the UK Listing Authority of any shares issued; the shareholder authority was
renewed at the Company's Annual General Meeting held on 18 January 2012. It is
particularly pleasing that this strong demand has continued over the last four
months and the authority granted in January 2012 has been fully utilised. The
Board has therefore convened a General Meeting, to be held on Friday, 11 May
2012, to seek shareholder authority to issue a further 6,507,838 shares. Any
shares issued under this authority will continue to be issued at prices not
less than the prevailing cum income net asset value per share and will be
accretive to the net asset value per share.


Return and Dividend


The Income Statement shows a total return per share of 41.9p (six months ended
31 March 2011: 28.9p) consisting of a revenue return per share of 3.0p (six
months ended 31 March 2011: 2.8p) and a capital return per share of 38.9p (six
months ended 31 March 2011: 26.1p). The Board has declared a first interim
dividend of 4.6p per share, compared to last year's first interim dividend of
4.4p per share, an increase of 4.5%. The dividend was paid on 4 May 2012 to
shareholders who were on the register on 30 March 2012. The associated ex
dividend date was 28 March 2012.




Chairman's Statement





Your Company has a two-year fixed term committed secured revolving credit
facility of £25m which is subject to a variable rate of interest. As at 31
March 2012 a total of £14.05 million was drawn down under this facility (30
September 2011: £13.55 million).




2012 began positively, the rally in share prices having been supported by good
corporate earnings and strong balance sheets. However, despite improving
prospects for the U.S., the UK market continues to be affected by uncertainty
in Europe, still an important trading partner for the UK, and despite a
continued reduction in inflation, UK growth is expected to be low for the year.
Shareholders will be aware, however, that a number of the companies held in our
portfolio have significant exposure to faster growing overseas markets and are
among world leaders in their respective sectors. 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

9 May 2012



Investment Manager's Review


"....we hope to earn competitive long-term returns by building and maintaining
strategic holdings in a number of what we analyse to be exceptional companies."

Performance Commentary


We remind shareholders that we hope to earn competitive long-term returns by
building and maintaining strategic holdings in a number of what we analyse to
be exceptional companies. We commit client capital to these positions with the
intention of sticking with them over the course of several economic and stock
market cycles, in the full awareness that not all will perform well, as
businesses or share prices, at the same time and that there will certainly be
periods when some will stagnate, fall or otherwise underperform. This shouldn't
matter - so long as other parts of the portfolio are doing well and, even more
to the point, so long as we are correct about the likelihood of each company
creating value for its owners eventually.

We reiterate this here, because it is so easy to describe the performance of
the portfolio over the half year in terms of the state of the popular "risk-on/
risk-off" trade, followed by many market commentators. Easy, but inappropriate.
So, holdings that tactical investors regard as economically cyclical, or geared
to the stock market cycle ("risky") have done exceptionally well - such as
Burberry, London Stock Exchange, Rathbone and Schroders and so-called
"defensive" stocks underperformed - like A.G. Barr, Pearson, Sage and Unilever
. Nonetheless, we don't think about the portfolio in this way and certainly we
don't try to second-guess other investors' appetite for risk quarter by

For us it is far more relevant to note that, for instance, both London Stock
Exchange ("risk" asset) and Unilever ("risk-off" asset) increased their most
recent dividends by c6% (despite the wildly divergent performance of their
shares over the half year). We view these increases as the respective boards'
best estimate of likely long term cash earnings growth for each company and,
given that a 6% dividend growth rate is a "real" increase (ahead of UK
inflation) we are satisfied that the qualities we see in the London Stock
Exchange's market franchise and Unilever's collection of global consumer brands
- that these qualities will help us to achieve shareholders' investment

In summary, a superficial analysis of performance over the period might say -
the portfolio underperformed because of its exposure to low beta shares. We
prefer to say - the portfolio generated a competitive return because, by and
large, economic developments confirmed the strategic attractions of the
companies in which we're invested and those long-term attractions were
confirmed by immediate, cash-in-hand dividend increases.


Developments for Portfolio Companies


We have three main strategic ideas, all captured across the portfolio. In our
view events over the period confirmed their validity. They are - equity is
cheap in a globalising world; emerging market consumers are only just getting
started; Apple/Amazon's tablet devices are driving a technology cycle of
productivity gains and new industry creation.



Investment Manager's Review



We see the London Stock Exchange's strong share price performance as an
indication that investors are increasingly bullish about equity as an asset
class, after its poor returns not just in 2011, but the previous decade. We
expect trusted asset managers or asset aggregators, such as Schroders and
Hargreaves Lansdown to benefit further too.

Diageo has been a real driver of your Company's return in 2011/2, outperforming
the benchmark, despite its reputation as a "defensive". The reason, we believe,
was the company's announcement that the proportion of its profits earned in
emerging economies has breached 40% for the first time and still growing
strongly. Both Heineken and Unilever - important portfolio commitments - offer
similar exposure, but with no recent rerating of their shares (hence our
enthusiasm to build weightings further).

Finally, Pearson increased its final dividend by 9% in Q1 2012, the 20th
consecutive year of dividend growth. This growing stream of distributable cash
was generated in part by an increase in profit margin at Pearson's biggest
division, US education, from 17 to 19%. The improved profitability results from
the success Pearson has had in digitising its text book and teaching materials
and, indeed, digitising the whole education process. Apple has confirmed its
ambition to help change the way people learn - by online devices. Pearson
content and software will populate any hardware offered by Apple or, indeed,
any other. We were surprised Pearson's shares fell after its results - the
company looks to us like one of the world's great growth companies of the next
decade or two. We look to buy more and expect it and other technology/content
companies in the portfolio - Daily Mail, Fidessa, Reed and Sage - to grow
strongly in coming years.

Nick Train, Lindsell Train Limited Investment Manager

9 May 2012







as at 31 March 2012

                                                              Value        % of
Investment                            Sector                  £'000 Investments
Diageo                                Beverages              26,106 11.3       
Unilever                              Food Producers         20,795 9.0        
A.G. Barr                             Beverages              17,030 7.3        
Pearson                               Media                  16,997 7.3        
Heineken Holdings (A Shares) *        Beverages              15,521 6.7        
Rathbone Brothers                     General Financials     11,475 5.0        
Fidessa                               Software & Computer    11,428 4.9        
Sage Group                            Software & Computer    11,399 4.9        
Schroders                             General Financials     10,531 4.5        
Kraft Foods ^                         Food Producers          8,660 3.7        
Top 10 investments                                          149,942 64.6       
Reed Elsevier                         Media                   8,548 3.7        
London Stock Exchange                 General Financials      8,225 3.5        
Burberry Group                        Personal Goods          7,628 3.3        
Greene King                           Travel & Leisure        7,324 3.2        
Daily Mail & General Trust (A Shares) Media                   7,187 3.1        
Euromoney Institutional Investor      Media                   6,911 3.0        
Hargreaves Landsdown                  General Financials      6,861 3.0        
Marston's                             Travel & Leisure        6,126 2.6        
Dr.Pepper Snapple ^                   Beverages               5,451 2.4        
Fuller Smith & Turner                 Travel & Leisure        5,005 2.2        
Top 20 investments                                          219,208 94.6       
Young & Co's Brewery (non-voting)     Travel & Leisure        4,068 1.8        
Thomson Reuters ~                     Media                   3,551 1.5        
Lindsell Train Investment Trust       General Financials      2,200 0.9        
Lloyds Banking Group 9.25% (non cum   Preference Shares                        
preference) **                        (Banks)                 1,842 0.8        
Celtic                                Travel & Leisure          508 0.2        
Frostrow Capital +                    General Financials        470 0.2        
Celtic 6% (cum preference) **         Travel & Leisure           53           -
Total investments                                           231,900 100.0      


All of the above investments are equities listed in the UK, unless otherwise

* Listed in the Netherlands

^ Listed in the United States

~ Listed in Canada

** Non-equity - Preference Shares

+ Unquoted partnership interest



Comparison of Sector Weightings with the FTSE All-Share Index


as at 31 March 2012                                           Finsbury Growth &
                                       Finsbury          FTSE            Income
Sector                                   Growth     All-Share          (under)/
                                       & Income         Index        overweight
                                              %             %                 %
Oil & Gas                                     - 17.7          (17.7)           
Basic Materials                               - 11.1          (11.1)           
Industrials                                   - 8.6           (8.6)            
Consumer Goods                   43.6           13.5          30.1             
Health care                                   - 7.2           (7.2)            
Consumer Services                28.6           9.4           19.2             
Telecommunications                            - 6.2           (6.2)            
Utilities                                     - 3.9           (3.9)            
Financials                       17.2           20.8          (3.6)            
Technology                       9.8            1.6           8.2              
Total excluding Preference       99.2           100.0         (0.8)            
Preference Shares                0.8                        - 0.8              
Total including Preference       100.0          100.0                         -





Income Statement

For the six months ended 31 March 2012

                 (Unaudited)                  (Unaudited)               (Audited)
             Six months ended 31                                                 
                  March 2012          Six months ended 31 Year ended 30 September
                                               March 2011                    2011
            Revenue Capital Total  Revenue Capital Total  Revenue Capital  Total 
             £'000   £'000  £'000   £'000   £'000  £'000   £'000   £'000   £'000 
Gains on                                                                         
held at                                                                          
fair value                                                                       
profit or                                                                        
loss              -  23,708 23,708       -  14,364 14,364       -   4,344   4,344
differences       -    (30)   (30)       -       -      -       -     (1)     (1)
(note 2)      2,390       -  2,390   1,952       -  1,952   6,299       -   6,299
fees (note                                                                       
3)            (220)   (448)  (668)   (184)   (374)  (558)   (390)   (793) (1,183)
Other         (256)     (5)  (261)   (208)     (4)  (212)   (458)     (4)   (462)
Return on                                                                        
charges and                                                                      
taxation      1,914  23,225 25,139   1,560  13,986 15,546   5,451   3,546   8,997
Finance        (63)   (128)  (191)    (53)   (107)  (160)    (98)   (200)   (298)
Return on                                                                        
taxation      1,851  23,097 24,948   1,507  13,879 15,386   5,353   3,346   8,699
Taxation on                                                                      
ordinary       (50)       -   (50)    (48)       -   (48)   (100)       -   (100)
Return on                                                                        
taxation      1,801  23,097 24,898   1,459  13,879 15,338   5,253   3,346   8,599
Return per                                                                       
share (note    3.0p   38.9p  41.9p    2.8p   26.1p  28.9p    9.7p    6.1p   15.8p


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




Reconciliation of Movements in Shareholders' Funds

                             premium redemption Special Capital                
(Unaudited)           Share                                     Revenue        
                     capital account    reserve reserve reserve reserve   Total
Six months ended 31                                                            
March 2012             £'000   £'000      £'000   £'000   £'000   £'000   £'000
At 30 September 2011  14,309  50,253      3,453  12,424  92,285   4,894 177,618
Net return from            -       -          -       -  23,097   1,801  24,898
ordinary activities                                                            
Second interim                                                                 
dividend (4.8p per                                                             
share) for the year                                                            
ended 30 September                                                             
2011                       -       -          -       -       - (2,740) (2,740)
Issue of shares        1,445  18,127          -       -       -       -  19,572
Cost of share              -   (116)          -       -       -       -   (116)
At 31 March 2012      15,754  68,264      3,453  12,424 115,382   3,955 219,232
Six months ended 31                                                            
March 2011                                                                     
At 30 September 2010  13,237  37,213      3,453  12,424  88,939   4,324 159,590
Net return from            -       -          -       -  13,879   1,459  15,338
ordinary activities                                                            
Second interim                                                                 
dividend (4.4p per                                                             
share) for the year                                                            
ended 30 September                                                             
2010                       -       -          -       -       - (2,330) (2,330)
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
Year ended 30                                                                  
September 2011                                                                 
At 30 September 2010  13,237  37,213      3,453  12,424  88,939   4,324 159,590
Net return from            -       -          -       -   3,346   5,253   8,599
ordinary activities                                                            
Second interim                                                                 
dividend (4.4p per                                                             
share) for the year                                                            
ended 30 September                                                             
2010                       -       -          -       -       - (2,330) (2,330)
First interim                                                                  
dividend (4.4p per                                                             
share) for the year                                                            
ended 30 September                                                             
2011                       -       -          -       -       - (2,353) (2,353)
Issue of shares        1,072  13,040          -       -       -       -  14,112
Year ended 30         14,309  50,253      3,453  12,424  92,285   4,894 177,618
September 2011                                                                 





Balance Sheet

as at 31 March 2012

                                           (Unaudited) (Unaudited)    (Audited)
                                              31 March    31 March 30 September
                                                  2012        2011         2011
                                                 £'000       £'000        £'000
Fixed assets                                                                   
Investments designated at fair value                                           
through profit or loss                         231,900     185,653      188,247
Current assets                                                                 
Debtors                                            655         527        1,145
Cash at bank                                       925         670        2,466
                                                 1,580       1,197        3,611
Current liabilities                                                            
Creditors                                        (198)       (155)        (690)
Bank loan                                     (14,050)    (12,350)     (13,550)
                                              (14,248)    (12,505)     (14,240)
Net current liabilities                       (12,668)    (11,308)     (10,629)
Total net assets                               219,232     174,345      177,618
Capital and reserves                                                           
Share capital                                   15,754      13,372       14,309
Share premium account                           68,264      38,825       50,253
Capital redemption reserve                       3,453       3,453        3,453
Special reserve                                 12,424      12,424       12,424
Capital reserve                                115,382     102,818       92,285
Revenue reserve                                  3,955       3,453        4,894
Equity shareholders' funds                     219,232     174,345      177,618
Net asset value per share (note 5)              347.9p      326.0p       310.3p



Cash Flow Statement

for the six months ended 31 March 2012

                                                                  30 September
                                   (Unaudited)      (Unaudited)           2011
                               31 March 2012 £  31 March 2011 £               
                                          '000             '000          £'000
Net cash inflow from                     1,915            1,202          4,034
operating activities (note 7)                                                 
Net cash outflow from                    (190)            (212)          (350)
servicing of finance                                                          
Financial investment                                                          
Purchase of investments               (21,455)          (5,470)       (17,588)
Sale of investments                      1,003            2,696          2,705
Net cash outflow from                 (20,452)          (2,774)       (14,883)
financial investment                                                          
Equity dividends paid                  (2,740)          (2,330)        (4,683)
Net cash outflow before               (21,467)          (4,114)       (15,882)
Shares issued net of issue              19,572            1,747         14,112
Cost of share issuance                   (116)                -              -
Drawdown of loan                           500            1,650          2,850
Net cash inflow from                    19,956            3,397         16,962
(Decrease)/increase in cash            (1,511)            (717)          1,080
Reconciliation of net cash                                                    
flow to movement in net debt                                                  
(Decrease)/increase in cash            (1,511)            (717)          1,080
resulting from cashflows                                                      
Increase in debt                         (500)          (1,650)        (2,850)
Exchange movements                        (30)                -            (1)
Movement in net debt                   (2,041)          (2,367)        (1,771)
Net debt at start of period/          (11,084)          (9,313)        (9,313)
Net debt at end of period/            (13,125)         (11,680)       (11,084)




Notes to the Accounts

Basis of preparation

The condensed financial statements have been prepared under the historical cost
convention, except for the measurement 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 2011 have
been applied.


                                   (Unaudited) (Unaudited)                     
                                    Six months  Six months                     
                                         ended       ended            (Audited)
                                      31 March    31 March           Year ended
                                          2012        2011    30 September 2011
                                         £'000       £'000                £'000
Income from investments Franked                                                
investment income                                                              
- dividends                              2,085       1,679                5,628
Unfranked investment income                                                    
- limited liability partnership              -           -                  105
- overseas dividends                       305         273                  566
Total                                    2,390       1,952                6,299


Investment management and management fees

                               (Unaudited)      (Unaudited)   Year ended
                          Six months ended Six months ended 30 September
                             31 March 2012    31 March 2011         2011
                                     £'000            £'000        £'000
Investment management fee              448              370          786
Management fee                         184              158          332
VAT thereon*                            36               30           65
Total                                  668              558        1,183


* VAT on management fee





Notes to the Accounts




4. Return per share

The total return per share is based on the total return attributable to equity
shareholders of £24,898,000 (six months ended 31 March 2011: return of £
15,338,000; year ended 30 September 2011: return of £8,599,000) and on
59,455,798 shares (six months ended 31 March 2011: 53,062,424; year ended 30
September 2011: 54,352,887), being the weighted average number of shares in

The revenue return per share is calculated by dividing the net revenue return
of £1,801,000 (six months ended 31 March 2011: return of £1,459,000; year ended
30 September 2011: return of £5,253,000) 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 £23,097,000, (six months ended 31 March 2011:
return of £13,879,000; year ended

30 September 2011: return of £3,346,000) 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
£219,232,000 (31 March 2011: £174,345,000 and 30 September 2011: £177,618,000)
and on 63,017,165 shares in issue (31 March 2011: 53,487,423 and 30 September
2011: 57,237,423) (excluding treasury shares).

6. Transaction costs

Purchase transaction costs for the six months ended 31 March 2012 were £84,000
(six months ended 31 March 2011: £39,000; year ended 30 September 2011: £

Sales transaction costs for the six months ended 31 March 2012 were nil (six
months ended

31 March 2011: £4,000; year ended 30 September 2011: £4,000).






Notes to the Accounts


Reconciliation of net total return before finance costs and taxation to net
cash inflow from operating activities

                                          (Unaudited)  (Unaudited)             
                                           Six months   Six months    (Audited)
                                                ended        ended   Year ended
                                             31 March     31 March 30 September
                                                 2012         2011         2011
                                                £'000        £'000        £'000
Total return before finance charges and        25,139       15,546        8,997
                                             (23,225)     (13,986)      (3,546)
Less capital return before finance                                             
charges and taxation                                                           
Net revenue before finance costs and            1,914        1,560        5,451
Decrease/(increase) in accrued income and          39           85         (83)
Decrease/(increase) in debtors                    451            1        (451)
Increase/(decrease) in creditors                   14         (17)           12
Taxation - irrecoverable overseas tax            (50)         (49)         (98)
Investment management and management fees                                      
charged to capital                              (448)        (374)        (793)
Other expenses charged to capital                 (5)          (4)          (4)
Net cash inflow from operating activities       1,915        1,202             


2011 accounts

The figures and financial information for the year to 30 September 2011 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.





Interim Management Report


Principal Risks and Uncertainties

A review of the half year, including reference to the risks and uncertainties
that existed during the period, and the outlook for the Company can be found in
the Chairman's Statement beginning on page 3 Half Year Report 2012 and in the
Investment Manager's Review beginning on page 5 of the Half Year Report 2012.
The principal risks faced by the Company fall into the following broad
categories: market price risk; interest rate risk; portfolio performance;
operational and regulatory risk; credit risk; liquidity risk; investment
management key person risk; availability of bank finance; inability to maintain
a progressive dividend policy. Information on each of these areas, with the
exception of the availability of bank finance and the Board's ability to
maintain a progressive dividend policy, is given in the Business Review within
the Annual Report and Accounts for the year ended 30 September 2011. The risk
associated with the availability of bank finance is that the provider or any
other lender may no longer be prepared to lend to the Company. Copies of the
monthly loan covenant compliance certificates, provided for the lender, are
circulated to the Board and both the Board and the Investment Manager are kept
fully informed of any likelihood of the withdrawal of the loan facility so that
repayment can be effected in an orderly fashion if necessary. With regard to
the Company's dividend policy, the Board regularly reviews the Company's
portfolio and also income forecasts prepared by the Manager; regular reports on
the Company's income position are also made by the Company's Investment Manager
at each Board meeting. The Company also maintains a distributable revenue
reserve which can be used to help make up any shortfall in income received by
the Company.

In the view of the Board these principal risks and uncertainties are applicable
to the remaining six months of the financial year as they were to the six
months under review.

Related Party Transactions

During the first six months of the current financial year no transactions with
related parties have taken place which have materially affected the financial
position or the performance of the Company.

Directors' Responsibilities

The Board of Directors confirms that, to the best of its knowledge:

the condensed set of financial statements contained within the Half Year Report
has been
prepared in accordance with applicable accounting standards; and

the interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the UK Listing Authority and Transparency

The Half Year Report has not been reviewed or audited by the Company's

The Half Year Report was approved by the Board on 9 May 2012 and the above
responsibility statement was signed on its behalf by:

Anthony Townsend Chairman