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Invesco Inc Grth Tst (IVI)

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Tuesday 11 June, 2013

Invesco Inc Grth Tst

Annual Financial Report

Invesco Income Growth Trust plc

Annual Financial Report Announcement

For the year ended 31 March 2013

Performance Statistics

                                                   AT          AT             
                                             31 MARCH    31 MARCH            %
                                                 2013        2012       CHANGE
Net asset value per ordinary share:                                           
  - per Balance Sheet                          263.0p      221.7p        +18.6
  - after deducting proposed dividends         259.5p      218.4p        +18.8
Mid-market price per ordinary share           245.50p     213.75p        +14.9
Discount per ordinary share                      6.7%        3.6%             
Gross gearing - excluding the effect of          8.6%        7.4%             
Net gearing - including the effect of            8.6%        7.4%             
                                                 YEAR        YEAR             
                                                ENDED       ENDED             
                                             31 MARCH    31 MARCH             
                                                 2013        2012             
Total Return                                                                  
(includes net dividends reinvested)                                           
Net asset value† per ordinary share            +23.7%      +11.3%             
FTSE All-Share Index                           +16.8%       +1.4%             
Mid-market price per ordinary share            +19.7%      +17.0%             
Source: Thomson Reuters Datastream                                            
Revenue and Dividends                                                         
Net revenue after tax (£'000)                   5,545       5,510         +0.6
Revenue return per ordinary share               9.47p       9.41p         +0.6
  - first interim                               2.00p       1.95p             
  - second interim                              2.00p       1.95p             
  - third interim                               2.00p       1.95p             
  - final                                       3.55p       3.35p             
                                                9.55p       9.20p         +3.8
Retail Price Index                               3.3%        3.6%             
Ongoing charges ratio†                          0.95%       0.99%             




In my interim statement I admitted to being relieved that I was able to report
a modest positive result for the first six months of the year, but that I was
cautiously optimistic about the outcome for the full year. However, I was too
cautious and against the consensus view at the time, the market was strong in
the second half with your Company's performance even stronger - indeed a
performance more like the Tango than my earlier reference to the Two-Step
country & western dance! It is, therefore, very pleasing to be able to report
that the total return on our net asset value was +23.7% which significantly
outperformed our benchmark's equivalent return of +16.8%. Our share price's
total return was lower at +19.7% as a result of the discount to net asset value
(NAV) widening out to 6.7% at the end of the year. Nonetheless, our NAV total
return has now very encouragingly outperformed our benchmark over one, three,
five and ten years. The Portfolio Manager, who should be congratulated,
provides details in his report as to how this performance was achieved, but we
undoubtedly benefitted from not only being primarily invested in the correct
parts of the market, but also from our utilisation of gearing which at the year
end was slightly lower (8.6% gross gearing) than the level reported at the
interim point. However, we expect gearing to contribute to shareholder returns,
and to ensure that our Manager has sufficient flexibility to take advantage of
attractive opportunities as they arise, we recently negotiated an increase in
our borrowing facility from £20 million to £25 million, on unchanged terms.

Revenue and Dividends

During the year, earnings per share increased to 9.5p per share from 9.4p.
Although the rate of increase for the full year was not quite as good as that
reported at the interim stage and largely reflects the absence of a number of
special dividends which had been paid in the same period last year, we are
determined to meet our long term dividend growth objective. We are, therefore,
pleased to recommend a final dividend of 3.55p per share, which together with
aggregate interim dividends paid of 6p, gives a total dividend per share for
the year of 9.55p (2012: 9.2p), an increase of 3.8%. This exceeds the
annualised inflation rate for the year to end March of 3.3% (as measured by the
RPI Index) and is consistent with our objective of growing the dividend at
above the rate of inflation. If approved by shareholders, the final dividend
will be paid on 19 July 2013 to shareholders on the register on 28 June 2013.

Investment Policy

The tenet of the Company's Investment Policy has been in place for many years
and, whilst the Board has no intention of changing it, they felt that in the
wake of the Retail Distribution Review it would be helpful to reword it in
hopefully clearer language that all shareholders would more easily understand
and also would better distinguish the Company from its peers. The new wording
can be seen on page 13.

Whilst we do not believe this requires shareholder approval since the change
is not material, the Board thought it would be appropriate to do so and a
resolution has been included in the Notice of Meeting for the forthcoming
Annual General Meeting.


After the strong recovery in the UK stock market which we have enjoyed since
the lows of 2009, albeit with a fair amount of volatility on the way, it is
perhaps natural to voice some caution, particularly since economic growth in
the UK and in so many other important economies remains anaemic and policy
makers appear to be struggling to find solutions. However, one consequence is
likely to be that interest rates will remain at their current low levels for
some time to come, so that the equity markets are one of the few to offer any
prospect of a reasonable yield. Although, equity valuations are not as low as
they were, neither are they too high, so investors, especially those seeking
income, are likely to continue to be attracted to equities, particularly on any
weakness. However, returns like we have seen in recent years may be harder to
achieve, although we can be confident that our Manager will be working hard to
find attractive opportunities for our portfolio in order to continue to meet
our longer term investment objectives.

Annual General Meeting (AGM)

The Notice of the AGM of the Company, which is to be held on Friday, 12 July
2013 is on pages 43 to 46 and a summary of the resolutions is set out in the
Report of the Directors on pages 24 and 25. Whilst I urge all shareholders to
vote in favour of these resolutions by returning their completed voting papers
or voting on-line, I do hope that as many shareholders as possible will attend
the AGM in person and have the opportunity of hearing from our Manager about
the portfolio and his views on the outlook, as well as meeting myself and my
fellow directors.

After a year in the chair I am now better able to appreciate all the work and
the important contribution of my predecessor, John McLachlan, to the success of
the Company and I would like to take this opportunity to thank him on behalf of
all shareholders.

Hugh Twiss


11 June 2013



Portfolio Strategy and Review

At the start of the period under review, concerns over the outlook for global
economic growth and the on-going Eurozone crisis dominated market sentiment.
However, following the statement by Mario Draghi, President of the European
Central Bank, that he would do "whatever it takes" to save the euro UK equities
shrugged off those concerns. Fuelled by ever increasing amounts of monetary
stimulus, both the FTSE 100 and FTSE All-Share indices delivered consecutive
positive returns over the following 10 months - the first time this had
happened in over 50 years. This occurred despite some very mixed news from the
global economy, further bail-outs of Eurozone banking systems, profit
downgrades from companies and further reductions in forecasts for UK economic

The FTSE All-Share Index delivered a total return of 16.8% over the 12 months.
The positioning of the Company's portfolio, with a focus on strongly placed
companies able to withstand a challenging economic environment, saw it again
outperform its benchmark. The total return on the Company's net asset value,
including reinvested dividends, was 23.7% over the period.

The portfolio's performance benefited from its zero weighting in the mining
sector, which has sharply underperformed the latest stock market rise, as well
as strong performances from a broad spread of the portfolio's investments.
Amongst these, the most significant individual positive impact came from HSBC.
The portfolio has a major investment in this company, albeit one which is
underweight relative to its index positioning, which delivered strongly
positive returns over the 12 months. Within a sector that faces some major
challenges, HSBC stands out as a quality investment, with a strong global
franchise, business model and balance sheet.

The portfolio is heavily exposed to the pharmaceutical sector and this too
provided a positive impact on performance. The holding in AstraZeneca, which
had delivered a relatively disappointing performance the previous year,
contributed strongly as the appointment of a new chief executive, Pascal
Soriot, and his subsequent outline of a strategy to return the company to
growth, has been very well received.

The holdings in two clothing retail companies - Next and Brown (N) - delivered
very strong share price performances. Trading in the retail sector remains
challenging, with the seemingly inexorable rise of sales via the internet
putting pressure on the traditional high street but, despite the wettest summer
for over 100 years, both companies delivered revenue growth above expectations,
with internet sales a particularly strong feature.

The holding in Whitbread posted a strong performance over the period, with
Costa Coffee continuing its expansion and Premier Inns gaining market share.
Nichols, the maker of fruit-based soft drink Vimto, also saw its shares post
excellent gains. The company confirmed its ability to provide organic growth -
both in the UK, as it expands from its northern regional base, and overseas.

There were relatively few detractors from performance. Shares in Imperial
Tobacco fell following confirmation of tough trading conditions in southern
Europe and growing concerns that the UK may follow Australia in introducing
plain packaging for cigarettes. I believe that the low valuation of the shares
of Imperial Tobacco compared with its peers more than discounts these concerns
and that the companies held in the tobacco sector represent exactly the sort of
quality stocks that can deliver attractive profit and dividend growth through a
low growth environment.

The holding in Barclays ordinary shares had a negative impact on performance
over the period. In the aftermath of the 2008 banking crisis, these shares fell
heavily, to a level at which I believed they were undervalued. They
subsequently showed some recovery, but with newsflow over the year highlighting
the scale of the challenges still facing the company, I decided to dispose of
the holding, although a Barclays preference share is still held.

As far as other portfolio activity is concerned, I have continued to seek to
further improve the quality of the holdings and also to seek out strongly
positioned companies whose shares have not fully participated in the recent
stock market rise. New investments were made in Senior, Spectris and Synergy


The stock market's rise in the past year, fuelled by monetary stimulus and
central bank policy initiatives, has occurred despite reductions in the
forecasts of company earnings for the current financial year and beyond. Equity
valuations are therefore no longer as cheap as they were a year ago. I also
expect concerns about the Eurozone debt crisis and the outlook for the global
economy to remain a feature of the market, as the developed world continues to
grapple with the aftermath of the 2008 banking crisis, and that stock market
volatility may rise from currently low levels.

However, within the market as a whole, there is still a subset of stocks that
look attractively valued, particularly for investors seeking income. My
investment strategy of the past three years remains intact - I am seeking
companies with strong fundamentals, with sensible management whose interests
are aligned with shareholders and with a low risk balance sheet. Despite the
stock market's recent rise, the shares of many of these strongly placed
companies continue to look attractive, and I am confident about the outlook for
long-term returns from the portfolio.

Ciaran Mallon

Portfolio Manager

11 June 2013



AT 31 MARCH 2013

UK listed ordinary shares unless otherwise stated

HOLDINGS  COMPANY                  ACTIVITY BY SECTOR           VALUE      % OF
                                                                £'000 PORTFOLIO
460,851   GlaxoSmithKline          Pharmaceuticals &            7,090       4.3
198,341   British American Tobacco Tobacco                      6,995       4.2
956,462   HSBC                     Banks                        6,719       4.0
195,942   AstraZeneca              Pharmaceuticals &            6,461       3.9
1,284,917 BP                       Oil & Gas                    5,909       3.6
245,808   Imperial Tobacco         Tobacco                      5,649       3.4
1,739,688 BT                       Fixed Line                   4,836       2.9
2,175,028 Vodafone                 Mobile                       4,059       2.4
185,141   Royal Dutch Shell B      Oil & Gas                    4,045       2.4
247,350   SSE                      Electricity                  3,671       2.2
Top ten holdings                                               55,434      33.3
995,507   Centrica                 Gas, Water &                 3,660       2.2
626,800   Young & Co.'s Brewery    Travel & Leisure             3,573       2.1
2,042,158 Legal & General          Life Insurance               3,525       2.1
863,439   Tesco                    Food & Drug Retailers        3,294       2.0
74,026    Next                     General Retailers            3,230       1.9
327,693   Euromoney Institutional  Media                        3,154       1.9
114,035   Croda International      Chemicals                    3,126       1.9
1,145,864 Resolution               Life Insurance               3,121       1.9
261,874   Pearson                  Media                        3,098       1.9
368,692   Land Securities          Real Estate Investment       3,056       1.8
Top twenty holdings                                            88,271      53.0
386,858   Reed Elsevier            Media                        3,019       1.8
732,046   Brown (N)                General Retailers            2,987       1.8
397,259   Filtrona                 Support Services             2,888       1.7
138,113   InterContinental Hotels  Travel & Leisure             2,772       1.7
995,979   Wm Morrison Supermarkets Food & Drug Retailers        2,751       1.7
311,876   Wood                     Oil & Gas                    2,701       1.6
309,296   Compass                  Travel & Leisure             2,600       1.6
490,221   Informa                  Media                        2,581       1.6
100,493   Whitbread                Travel & Leisure             2,580       1.6
1,139,422 Ladbrokes                Travel & Leisure             2,573       1.5
Top thirty holdings                                           115,723      69.6
78,666    Wolseley                 Support Services             2,572       1.5
224,576   Experian                 Support Services             2,560       1.5
755,229   Jupiter Fund Management  Financial Services           2,471       1.5
196,132   Smiths                   General Industrials          2,463       1.5
926,478   GKN                      Automobiles & Parts          2,448       1.5
230,929   AMEC                     Oil & Gas                    2,439       1.5
275,675   Nichols                  Beverages                    2,425       1.5
316,645   Smith & Nephew           Health Care Equipment &      2,405       1.4
308,356   National Grid            Gas, Water &                 2,359       1.4
799,988   G4S                      Support Services             2,330       1.4
Top forty holdings                                            140,195      84.3
364,260   Drax                     Electricity                  2,227       1.3
246,813   Capita                   Support Services             2,219       1.3
345,228   Pennon                   Gas, Water &                 2,149       1.3
166,000   Bunzl                    Support Services             2,148       1.3
122,206   Severn Trent             Gas, Water &                 2,091       1.3
290,873   United Utilities         Gas, Water &                 2,061       1.2
686,331   MITIE                    Support Services             1,924       1.2
71,431    Spectris                 Electronic & Electrical      1,754       1.1
99,886    Ultra Electronic         Aerospace & Defence          1,715       1.0
708,726   Senior                   Aerospace & Defence          1,689       1.0
Top fifty holdings                                            160,172      96.3
164,197   Synergy Health           Health Care Equipment &      1,663       1.0
233,737   Domino Printing Services Electronic & Electrical      1,491       0.9
Total ordinary shares                                         163,326      98.2
1,300,000 Barclays Bank 14%        Banks                        1,745       1.0
1,027,000 Friends Life 12% 21 May  Life Insurance               1,359       0.8
Total fixed income investments                                  3,104       1.8
Total value of investments                                    166,430     100.0


Investment Policy

Whilst the Board has been and continues to be satisfied with the substance of
the Company's Investment Policy, it was felt in the wake of the Retail
Distribution Review that it would be helpful to recast the wording in order to
make it more easily understandable and better distinguish the Company from its
peers. Accordingly, the following wording differs from that used in last year's
annual financial report, although the substance is intended to be the same. The
changes are subject to the approval of shareholders at the forthcoming Annual
General Meeting. Should such approval not be forthcoming the Investment Policy
will remain as published in the 2012 annual financial report, which is
available at

The Company's investment objective, principal investment aims, investment
policy and risk and investment limits combine to form the `Investment Policy'
of the Company.

Investment Objective

The Company's investment objective is to produce income and capital growth
superior to that of the UK stock market and dividends paid quarterly that, over
time, grow at above the rate of inflation.

Principal Investment Aims

The Company aims to:

• have a portfolio yielding more than the FTSE All-Share Index in order to
generate sufficient income;

• provide shareholders with dividend growth in excess of inflation over the
longer term;

• achieve capital growth in excess of the FTSE All-Share Index over the longer

• reduce risk by diversifying investments across a wide range of companies and
sectors; and

• enhance returns by utilising gearing, when appropriate.

Investment Policy and Risk

The Company invests principally in quoted UK equities and equity-related
securities of UK companies selected from any market sector.

At certain times some exposure to fixed interest securities may be considered
desirable by the Manager whereby the main criteria for inclusion will be
income, liquidity and credit quality.

The Company utilises borrowings when appropriate in order to seek to enhance
its returns but the associated risks will be mitigated by limiting the maximum
amount of gearing that can be utilised and by investing predominantly in liquid
investments so that any gearing can be managed in a timely way.

One of this Company's principal characteristics is that it diversifies its
investments across a wide range of companies and sectors, so minimising the
risks associated with having too much invested in one stock or sector. The
Manager's aim is to have a broad cross-section of the best-performing stocks
that he can find consistent with this characteristic.

Investment Limits

The Board has prescribed limits on the Investment Policy, among which are the

• no more than 10% of gross assets will be held in a single investment;

• no more than 15% of gross assets will be held in other listed investment

• no more than 5% of gross assets will be held in unquoted investments; and

• gearing may be used to raise market exposure up to a maximum of 25% of net


Principal Risks and Uncertainties

Investment Objective

There can be no guarantee that the Company will meet its investment objective.

Market Risk

As at 31 March 2013, all of the Company's investments were traded on the London
Stock Exchange. The prices of securities and the income derived from them are
influenced by many factors such as general economic conditions, interest rates,
inflation, political events and government policies, as well as by supply and
demand reflecting investor sentiment. In addition, there continues to be a risk
that European policy makers fail to implement an effective and lasting solution
to the Eurozone crisis. Such factors are outside the control of the Board and
Manager and may give rise to high levels of volatility in the prices of
investments held by the Company.

Investment Risk

Any poor performance of individual investments is mitigated by the
diversification of the portfolio and the continual analysis of all holdings by
the portfolio manager. The Board has established guidelines to ensure that the
Investment Policy of the Company is pursued by the portfolio manager.

A fuller discussion of the economic and market conditions facing the Company
and the current and future performance of the portfolio of the Company are
included in the Portfolio Manager's Report. Past performance of the Company is
not necessarily indicative of future performance.


The market value of the shares in the Company may not reflect their underlying
net asset value (NAV) and they may trade at a discount to it. The Board and the
Manager monitor the market rating of the Company's shares and both share
repurchase and issuance powers that can be used to help in its management are
in place and are intended to be renewed at the AGM. As at 31 March 2013 shares
in the Company traded at a discount of 6.7% (2012: 3.6%).

The value of an investment in the Company and the income derived from that
investment may go down as well as up and an investor may not get back the
amount invested.

While it is the intention of the Directors to pay dividends to shareholders
quarterly, the ability to do so will depend upon the level of income received
from securities and the timing of receipt of such income by the Company.
Accordingly, the amount of quarterly dividends paid to shareholders may


Whilst the use of borrowings by the Company should enhance the total return on
the shares where the return on the Company's underlying securities is rising
and exceeds the cost of borrowing, it will have the opposite effect where the
underlying return is falling, further reducing the total return on the shares.


The Company is subject to various laws and regulations by virtue of its status
as a public limited company registered under section 833 of the Act, its status
as an investment trust, and its listing on the Official List of the UK Listing

Loss of investment trust status could lead to the Company being subject to tax
on the realised capital profits on the sale of its investments. A serious
breach of other regulatory rules could lead to suspension from the Official
List, a fine or a qualified audit report. Other control failures, either by the
Manager or any other of the Company's service providers, could result in
operational or reputational problems, erroneous disclosures or loss of assets
through fraud, as well as breaches of regulations.

The Alternative Investment Fund Managers Directive will impose obligations on
the Company and the Manager which may have significant consequences for the
Company and may increase its compliance and regulatory costs. Failure to meet
these obligations may impair the Manager's ability to manage the investments of
the Company, which may materially adversely affect the Company's ability to
implement its investment strategy and achieve its investment objective.

The Manager reviews compliance with tax and other financial regulatory
requirements on a daily basis. All transactions, income and expenditure are
reported to the Board. The Board regularly considers all perceived risks and
the measures in place to control them. The Board ensures that satisfactory
assurances are received from service providers. The Manager's Compliance and
Internal Audit Officers produce reports regularly for review by the Company's
Audit Committee.

Reliance on Third Party Service Providers

The Company has no employees and the Directors are all appointed on a
non-executive basis. The Company is reliant upon the performance of third party
service providers for its executive functions. In particular, the Manager
performs services which are integral to the operation of the Company. Failure
by any service provider to carry out its obligations to the Company in
accordance with the terms of its appointment could have a materially
detrimental impact on the operation of the Company and could affect the ability
of the Company to successfully pursue its Investment Policy.

The Manager may be exposed to reputational risks, in particular, the risk that
litigation, misconduct, operational failures, negative publicity and press
speculation, whether or not it is valid, will harm its reputation. Any damage
to the reputation of the Manager could result in potential counterparties and
third parties being unwilling to deal with the Manager and by extension the

Further details of the risk management policies and procedures as they relate
to the financial assets and liabilities of the Company are detailed in note 18
to the financial statements.



in respect of the preparation of the Annual Financial Report­

The Directors are responsible for preparing the annual financial report in
accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each
financial year. The Directors have elected to prepare financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice. Under
company law, the Directors must not approve the accounts unless they are
satisfied that they give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

  * select suitable accounting policies and then apply them consistently;
  * make judgements and estimates that are reasonable and prudent;
  * state whether applicable accounting standards have been followed, subject
    to any material departures disclosed and explained in the financial
    statements; and
  * prepare the financial statements on the going concern basis unless it is
    inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and which
enable them to ensure that the financial statements comply with the Companies
Act 2006. They have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Company and to prevent
and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report, which includes a Corporate Governance Statement,
and a Directors' Remuneration Report that comply with that law and those

In so far as each of the Directors is aware:

  * there is no relevant audit information of which the Company's Auditor is
    unaware; and
  * the Directors have taken all steps that they ought to have taken to make
    themselves aware of any relevant audit information and to establish that
    the Auditor is aware of that information.
The Directors of the Company each confirm to the best of their knowledge that:

  * the financial statements, prepared in accordance with the applicable set of
    accounting standards, give a true and fair view of the assets, liabilities,
    financial position and profit of the Company; and
  * this annual financial report includes a fair review of the development and
    performance of the business and the position of the Company together with a
    description of the principal risks and uncertainties that it faces.
Signed on behalf of the Board of Directors

Hugh Twiss


11 June 2013




                                      2013                       2012          
                                  £'000   £'000   £'000   £'000   £'000   £'000
Profits on investments at             -  24,403  24,403       -   8,408   8,408
fair value through profit                                                      
or loss                                                                        
Income                        2   6,447     283   6,730   6,369      23   6,392
Investment management fee     3   (504)   (504) (1,008)   (460)   (460)   (920)
Other expenses                    (285)       -   (285)   (305)     (1)   (306)
Net return before finance         5,658  24,182  29,840   5,604   7,970  13,574
costs and taxation                                                             
Finance costs                     (113)   (113)   (226)    (94)    (94)   (188)
Return on ordinary                5,545  24,069  29,614   5,510   7,876  13,386
activities before and                                                          
after tax                                                                      
Return per ordinary share                                                      
 Basic                        4    9.5p  41.1 p  50.6 p    9.4p   13.5p   22.9p

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 in accordance with the Statement of Recommended Practice
issued by the Association of Investment Companies. All items in the above
statement derive from continuing operations and the Company has no other gains
or losses and therefore no statement of total recognised gains or losses is
presented. No operations were acquired or discontinued in the year.




                       NOTES   SHARE   SHARE    CAPITAL CAPITAL REVENUE        
                               £'000   £'000    RESERVE   £'000   £'000   £'000
At 31 March 2011              14,638  40,021      2,310  60,396   4,402 121,767
Net return on ordinary             -       -          -   7,876   5,510  13,386
Dividends paid             5       -       -          -       - (5,322) (5,322)
At 31 March 2012              14,638  40,021      2,310  68,272   4,590 129,831
Net return on ordinary             -       -          -  24,069   5,545  29,614
Dividends paid             5       -       -          -       - (5,474) (5,474)
At 31 March 2013              14,638  40,021      2,310  92,341   4,661 153,971




                                                 NOTES         2013        2012
                                                              £'000       £'000
Fixed assets                                                                   
  Investments at fair value                                 166,430     138,703
Current assets                                                                 
  Debtors                                                       991         916
Creditors: amounts falling due within one year             (13,450)     (9,788)
Net current liabilities                                    (12,459)     (8,872)
Total assets less current liabilities                       153,971     129,831
Capital and reserves                                                           
  Called up share capital                            6       14,638      14,638
  Share premium                                              40,021      40,021
  Capital redemption reserve                                  2,310       2,310
  Capital reserve                                            92,341      68,272
  Revenue reserve                                             4,661       4,590
Shareholders' funds                                         153,971     129,831
Net asset value per ordinary share                                             
  Basic                                              7       263.0p      221.7p

These financial statements were approved and authorised for issue by the Board
of Directors on 11 June 2013.

Signed on behalf of the Board of Directors

Hugh Twiss





                                                 NOTES         2013        2012
                                                              £'000       £'000
Cash flow from operating activities                           5,373       5,087
Servicing of finance                                          (226)       (188)
Net financial investment                                    (3,324)       3,378
Equity dividends paid                                5      (5,474)     (5,322)
(Decrease)/increase in cash                                 (3,651)       2,955




                                                               2013        2012
                                                              £'000       £'000
(Decrease)/increase in cash                                 (3,651)       2,955
Change in net debt in the year                              (3,651)       2,955
Net debt at the beginning of the year                       (9,623)    (12,578)
Net debt at the end of the year                            (13,274)     (9,623)



1. Basis of Preparation

The financial statements have been prepared in accordance with applicable
United Kingdom Accounting Standards and with the Statement of Recommended
Practice (SORP) `Financial Statements of Investment Trust Companies and Venture
Capital Trusts', issued by the Association of Investment Companies in January

2. Income

                                                                2013       2012
                                                               £'000      £'000
Income from listed investments                                                 
UK dividends                                                   5,937      5,924
UK unfranked investment income                                   480        445
Other income                                                                   
Underwriting commission                                           30          -
Total income                                                   6,447      6,369

Dividend income includes special dividends of £67,000 (2012: £165,000)
recognised in revenue. Special dividends of £283,000 (2012: £23,000) have been
recognised in capital.

3. Investment Management Fee

                                       2013                     2012          
                             REVENUE  CAPITAL   TOTAL REVENUE  CAPITAL   TOTAL
                               £'000    £'000   £'000   £'000    £'000   £'000
Investment management fee        504      504   1,008     460      460     920

The Manager, Invesco Asset Management Limited ('IAML') provides investment
management, company secretarial and administrative services to the Company
under an agreement dated 21 July 1999 and subsequently amended on 21 September
2009. Details of this are shown in the Report of the Directors. At 31 March
2013, £92,000 (2012: £78,000) was owed in respect of management fees.

4. Return per Ordinary Share

The basic revenue, capital and total returns per ordinary share are based on
each return on ordinary shares after tax and on 58,551,530 (2012: 58,551,530)
ordinary shares, being the weighted average number of shares in issue during
the year.

5. Dividends on Ordinary Shares

Dividends paid and recognised in the year:

                                                 2013               2012       
                                               PENCE    £'000    PENCE    £'000
Final paid in respect of previous year          3.35    1,961     3.30    1,932
First interim paid                              2.00    1,171     1.95    1,142
Second interim paid                             2.00    1,171     1.95    1,142
Third interim paid                              2.00    1,171     1.95    1,142
Return of unclaimed dividends from                 -        -        -     (36)
previous years                                                                 
                                                9.35    5,474     9.15    5,322
Dividends payable in respect of the year:                                      
                                                 2013               2012       
                                               PENCE    £'000    PENCE    £'000
First interim paid                              2.00    1,171     1.95    1,142
Second interim paid                             2.00    1,171     1.95    1,142
Third interim paid                              2.00    1,171     1.95    1,142
Proposed final                                  3.55    2,079     3.35    1,961
                                                9.55    5,592     9.20    5,387

As reported in the Chairman's Statement, three interim dividends were paid
during the year and the proposed 2013 final dividend is subject to approval by
shareholders at the AGM.

6. Share Capital

                                               2013                2012        
                                           NUMBER     £'000     NUMBER    £'000
Allotted, called-up and fully paid:                                            
Ordinary shares of 25p each            58,551,530    14,638 58,551,530   14,638

No shares were bought back and cancelled in the year and no shares were held in
treasury at the year end.

7. Net Asset Value per Ordinary Share

The net asset value per ordinary share and the net asset values attributable at
the year end were as follows:

                                2013                           2012            
                               PENCE         £'000           PENCE        £'000
Ordinary shares                                                                
- Basic                        263.0       153,971           221.7      129,831

Net asset value per ordinary share is based on net assets at the year end and
on 58,551,530 (2012: 58,551,830) ordinary shares, being the number of ordinary
shares in issue at the year end.

8. Related party transactions and transactions with the Manager

Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager, Company Secretary and Administrator to the Company.
Details of IAML's services and fees are disclosed in the Report of the

Fees paid to Directors are disclosed in the Directors Remuneration Report. Full
details of Directors' interests are set out in the Report of the Directors.



NOTICE IS GIVEN that the Annual General Meeting (AGM) of Invesco Income Growth
Trust plc will be held at 30 Finsbury Square, London EC2A 1AG, on 12 July 2013
at 11.30 am for the following purposes:

Ordinary Business

1. To receive the Report of the Directors and Financial Statements for the year
ended 31 March 2013, together with the Report of the Auditors.

2. To approve the Directors' Remuneration Report.

3. To declare a final dividend as recommended.

4. To approve the revised Investment Policy wording set out on pages 13 and 14
of the annual financial report.

5. To re-elect Hugh Twiss a Director of the Company.

6. To re-elect Chris Hills a Director of the Company.

7. To re-appoint the Auditor and to authorise the Directors to determine the
Auditor's remuneration.

Special Business

To consider and, if thought fit, to pass the following resolutions of which
resolution 8 will be proposed as an ordinary resolution and resolutions 9, 10
and 11 will be proposed as special resolutions:

8. THAT:-

the Directors be generally and unconditionally authorised in accordance with
section 551 of the Companies Act 2006 as amended from time to time prior to the
date of the passing of this resolution (`the Act') to exercise all powers of
the Company to allot relevant securities (as defined in that section) up to an
aggregate nominal amount (within the meaning of sections 551(3) and (6) of the
Act) of £4,879,294, such authority to expire at the conclusion of the next AGM
of the Company or the date fifteen months after the passing of this resolution,
whichever is the earlier, but so that this authority shall allow the Company to
make offers or agreements before the expiry of this authority which would or
might require relevant securities to be allotted after such expiry as if the
authority conferred by this resolution had not expired.

9. THAT:-

the Directors be and they are hereby empowered, in accordance with sections 570
and 573 of the Companies Act 2006 as amended from time to time prior to the
date of the passing of this resolution (`the Act') to allot equity securities
for cash, either pursuant to the authority given by resolution 8 set out above
or (if such allotment constitutes the sale of relevant shares which,
immediately before the sale, were held by the Company as treasury shares)
otherwise, as if section 561 of the Act did not apply to any such allotment,
provided that this power shall be limited:

(a) to the allotment of equity securities in connection with a rights issue in
favour of all holders of a class of equity securities where the equity
securities attributable respectively to the interests of all holders of
securities of such class are either proportionate (as nearly as may be) to the
respective numbers of relevant equity securities held by them or are otherwise
allotted in accordance with the rights attaching to such equity securities
(subject in either case to such exclusions or other arrangements as the
Directors may deem necessary or expedient in relation to fractional
entitlements or legal or practical problems under the laws of, or the
requirements of, any regulatory body or any stock exchange in any territory or
otherwise); and

(b) to the allotment (otherwise than pursuant to a rights issue) of equity
securities up to an aggregate nominal amount of £1,463,788

and this power shall expire at the conclusion of the next AGM of the Company or
the date fifteen months after the passing of this resolution, whichever is the
earlier, but so that this power shall allow the Company to make offers or
agreements before the expiry of this power which would or might require equity
securities to be allotted after such expiry as if the power conferred by this
resolution had not expired; and so that words and expressions defined in or for
the purposes of Part 17 of the Act shall bear the same meanings in this

10. THAT:-

the Company be generally and subject as hereinafter appears unconditionally
authorised in accordance with section 701 of the Companies Act 2006 (`the Act')
to make market purchases (within the meaning of section 693(4) of the Act) of
its issued ordinary shares of 25p each in the capital of the Company (`Shares')


(i) the maximum number of Shares hereby authorised to be purchased shall be

(ii) the minimum price which may be paid for a Share shall be 25p;

(iii) the maximum price which may be paid for a Share shall be an amount equal
to 105% of the average of the middle market quotations for a Share taken from
and calculated by reference to the London Stock Exchange Daily Official List
for five business days immediately preceding the day on which the Share is

(iv) any purchase of Shares will be made in the market for cash at prices below
the prevailing net asset value per Share (as determined by the Directors);

(v) the authority hereby conferred shall expire at the conclusion of the next
AGM of the Company or, if earlier, on the expiry of 15 months from the passing
of this resolution unless the authority is renewed at any other general meeting
prior to such time; and

(vi) the Company may make a contract to purchase Shares under the authority
hereby conferred prior to the expiry of such authority which will be executed
wholly or partly after the expiration of such authority and may make a purchase
of Shares pursuant to any such contract.

11. THAT:-

the period of notice required for general meetings of the Company (other than
Annual General Meetings) shall be not less than 14 clear days' notice.


This annual financial report announcement is not the Company's statutory
accounts. The statutory accounts for the year ended 31 March 2012 have been
delivered to the Registrar of Companies. The statutory accounts both for the
year ended 31 March 2012 and for the year ended 31 March 2013 received an audit
report which was unqualified and did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying the
report. The statutory accounts for the financial year ended 31 March 2013 have
been approved and audited but have not yet been delivered to the Registrar of

The audited Annual Financial Report will be available to shareholders shortly.
Copies may be obtained during normal business hours from the Company's
Registered Office, 30 Finsbury Square, London, EC2A 1AG or the Company's
website at .

By order of the Board

Invesco Asset Management Limited

11 June 2013


Andrew Watkins

Tel - 020 7065 4023

Paul Griggs

Tel - 020 7065 4517

a d v e r t i s e m e n t