Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email in the first instance.

 Information  X 
Enter a valid email address

Fins Growth Inc Tst (FGT)

  Print      Mail a friend       Annual reports

Wednesday 25 May, 2011

Fins Growth Inc Tst

Half-yearly Report

                      LONDON STOCK EXCHANGE ANNOUNCEMENT                       

                      Finsbury Growth & Income Trust PLC                       

             Unaudited Half Year Results For The Six Months Ended              

                                 31 March 2011                                 

Company Summary

Key Statistics


                                                 As at        As at    % Change
                                              31 March 30 September            
                                                  2011         2010            
Share price                                     318.0p       297.8p        +6.8
Net asset value per share (including            326.0p       301.4p        +8.2
Net asset value per share (excluding            321.6p       297.0p        +8.3
(Discount)/premium of share price to net        (1.1)%         0.3%         n/a
asset value per share (excluding income)                                       
Gearing†                                          7.1%         6.7%         n/a
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 One year to            
                                                     to          30            
                                               31 March   September            
                                                   2011        2010            
Share price (total return)#                       +8.3%      +33.1%            
Net asset value per share (total return)#        +10.3%      +25.6%            
FTSE All-Share Index (total return)               +8.5%      +12.5%            
(Company benchmark)                                                            


Dividends                                   Year ending  Year ended            
                                           30 September          30            
                                                   2011   September            
First interim dividend                         4.4p per    4.4p per            
                                                  share       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.

               A member of the Association of Investment                       

Investment Objective

To achieve capital and income growth and to provide shareholders with a total
return in excess of that of the FTSE All-Share Index.

Investment Policy

The Company invests principally in the securities of UK listed companies,
whilst up to a maximum of 20% of the Company's portfolio, at the time of
acquisition, can be invested in quoted companies worldwide. Where possible, a
minimum position size of 1% of the Company's gross assets is held unless the
holding concerned is being built or disposed of.

The portfolio is managed by Lindsell Train Limited and will normally comprise
approximately thirty investments. Unless driven by market movements, FTSE 100
companies, including preference shares issued by such companies, will normally
represent between 50% and 100% of the portfolio; at least 70% of the portfolio
will normally be invested in companies within the FTSE 350.


Performance is measured against the FTSE All-Share Index (total return).

First Interim Dividend

A first interim dividend of 4.4p per share (2010: 4.4p) was paid on 6 May 2011
to shareholders registered at the close of business on 1 April 2011. The
associated ex-dividend date was 30 March 2011.

Capital Structure

At 31 March 2011 the Company had 53,487,423 shares of 25p each in issue with no
shares being held in treasury (31 March 2010: 50,855,811 (treasury shares:
1,941,612)). During the six months under review 540,000 new shares were issued.
Since the end of the half-year a further 1,325,000 new shares have been issued.
As at 10 May 2011, the Company had 54,812,423 shares in issue with no shares
being held in treasury.


As at 31 March 2011 the Company had a secured multicurrency revolving credit
facility of £20 million provided by Scotiabank Europe plc. As at this date a
total of £12.35 million had been drawn down.

Chairman's Statement


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 contributers 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
beginning on page 5.

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 at a 0.9% 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

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

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.


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


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


10 May 2011

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 overall 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

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 Marstons 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 the 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

Investment Manager's Review


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

10 May 2011


as at 31 March 2011


Investment                  Sector                        Fair            % of
                                                       Value £     Investments
Diageo                      Beverages                   19,316            10.4
A.G. Barr                   Beverages                   17,797             9.6
Unilever                    Food Producers              17,347             9.3
Pearson                     Media                       13,797             7.4
Fidessa                     Software & Computer         11,812             6.4
Rathbone Brothers           General Financials          10,822             5.8
Sage Group                  Software & Computer          9,734             5.2
Schroders                   General Financials           9,548             5.1
Reed Elsevier               Media                        7,943             4.3
Kraft Foods ^               Food Producers               7,122             3.9
Top 10 investments                                     125,238            67.4
Euromoney Institutional     Media                        6,363             3.4
Burberry Group              Personal Goods               5,982             3.2
Marston's                   Travel & Leisure             5,926             3.2
Daily Mail & General        Media                        5,470             2.9
Dr Pepper Snapple ^         Beverages                    5,021             2.7
Hargreaves Lansdown         General Financials           5,001             2.7
London Stock Exchange       General Financials           4,896             2.6
Thomson Reuters ~           Media                        4,805             2.6
Fuller Smith & Turner       Travel & Leisure             4,200             2.3
Young & Co's Brewery        Travel & Leisure             3,718             2.0
Top 20 investments                                     176,620            95.0
Greene King                 Travel & Leisure             3,112             1.7
Lloyds Banking Group        Preference Shares            2,771             1.5
9.25%                       (Banks)                                           
(non cum preference)*                                                         
Lindsell Train Investment   General Financials           2,140             1.3
Celtic                      Travel & Leisure               611             0.3
Frostrow Capital LLP +      General Financials             340             0.2
Celtic 6% (cum              Travel & Leisure                59               -
Total investments                                      185,653           100.0

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

^ 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 2011

Sector                                            Finsbury      FTSE   Finsbury
                                                    Growth All-Share     Growth
                                                  & Income     Index   & Income
                                                         %         %   (under)/
Oil & Gas                                                -      17.7     (17.7)
Basic Materials                                          -      13.5     (13.5)
Industrials                                              -       7.4      (7.4)
Consumer Goods                                        39.1      11.1       28.0
Health Care                                              -       6.7      (6.7)
Consumer Services                                     30.1       9.3       20.8
Telecommunications                                       -       6.3      (6.3)
Utilities                                                -       3.7      (3.7)
Financials (excluding preference shares)              17.7      22.6      (4.9)
Technology                                            11.6       1.7        9.9
Total excluding preference shares                     98.5     100.0      (1.5)
Preference shares                                      1.5         -        1.5
Total                                                100.0     100.0          -

Income Statement

For the six months ended 31 March 2011

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

Reconciliation of Movements in Shareholders' Funds

                                    Share    Capital                                
                            Share premium redemption Special Capital Revenue        
(Unaudited)               capital account    reserve reserve reserve reserve   Total
Six months ended 31 March   £'000   £'000      £'000   £'000   £'000   £'000   £'000
At 30 September 2010       13,237  37,213      3,453  12,424  88,939   4,324 159,590
Net return from ordinary        -       -          -       -  13,879   1,459  15,338
Second interim dividend         -       -          -       -       - (2,330) (2,330)
(4.4p per share) for the                                                            
year ended 30 September                                                             
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
Six months ended 31 March                                                           
At 30 September 2009       13,199  35,914      3,453  12,424  57,890   4,779 127,659
Net return from ordinary        -       -          -       -  17,117   2,059  19,176
Second interim dividend         -       -          -       -       - (2,615) (2,615)
(5.1p per share) for the                                                            
year ended 30 September                                                             
Repurchase of shares into       -       -          -       - (5,435)       - (5,435)
Sale of shares from             -     420          -       -   4,132       -   4,552
At 31 March 2010           13,199  36,334      3,453  12,424  73,704   4,223 143,337
Year ended 30 September                                                             
At 30 September 2009       13,199  35,914      3,453  12,424  57,890   4,779 127,659
Net return on ordinary          -       -          -       -  27,824   4,384  32,208
Second interim dividend         -       -          -       -       - (2,615) (2,615)
(5.1p per share) for the                                                            
year ended 30 September                                                             
First interim dividend          -       -          -       -       - (2,224) (2,224)
(4.4p per share) for the                                                            
year ended 30 September                                                             
Issue of shares                38     381          -       -       -       -     419
Repurchase of shares into       -       -          -       - (5,934)       - (5,934)
Sale of shares from             -     918          -       -   9,159       -  10,077
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 March    31 March          30
                                                   2011        2010        2010
                                                  £'000       £'000       £'000
Fixed assets                                                                   
Investments designated at fair value            185,653     147,826     168,514
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 reserve                        3,453       3,453       3,453
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' funds                      174,345     143,337     159,590
Net asset value per share (note 5)               326.0p      281.9p      301.4p

Cash Flow Statement

for the six months ended 31 March 2011

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

Notes to the Interim Financial Statements

1. 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 2010 have
been applied.

2. Income


                                               (Unaudited) (Unaudited) (Audited)
                                                Six months  Six months      Year
                                                  ended 31    ended 31  ended 30
                                                March 2011  March 2010 September
                                                     £'000       £'000    2010 £
Income from investments                                                         
Franked investment income                                                       
- dividends                                          1,679       2,293     4,807
Unfranked investment income                                                     
- limited liability partnership profit-share             -          80        80
- overseas dividends                                   273         184       463
                                                     1,952       2,557     5,350
Other income                                                                    
Interest from HMRC (ie: VAT reclaim on                   -          13        13
management fees)                                                                
Total                                                1,952       2,570     5,363

3. Investment management and management fees


                                               (Unaudited) (Unaudited) (Audited)
                                                Six months  Six months      Year
                                                  ended 31    ended 31  ended 30
                                                March 2011  March 2010 September
                                                     £'000       £'000    2010 £
Investment management fee                              370         277       606
Management fee                                         158         127       272
VAT thereon*                                            30          21        46
Total                                                  558         425       924

* VAT on management fee

Notes to the Interim Financial Statements


4. Return per share

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

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:
return 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: £

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


                                               (Unaudited) (Unaudited) (Audited)
                                                Six months  Six months      Year
                                                  ended 31    ended 31  ended 30
                                                March 2011  March 2010 September
                                                     £'000       £'000    2010 £
Total return before finance charges and             15,546      19,420    32,622
Less capital return before finance charges and    (13,986)    (17,257)  (28,045)
Net revenue before finance costs and taxation        1,560       2,163     4,577
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 and management fees            (374)       (262)     (596)
charged to capital                                                              
Other expenses charged to capital                      (4)        (87)      (89)
Net cash inflow from operating activities            1,202         276     4,244

8. 2010 accounts

The figures and financial information for the year to 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.

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 three and in the Investment
Manager's Review beginning on page five. The principal risks faced by the
Company fall into nine 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 2010. The risk associated with the availability of bank finance is
that the provider 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 material
transactions with related parties have taken place which have affected the
financial position or the performance of the Company during the period.

Directors' Responsibilities

The Directors are responsible for preparing the Interim Report in accordance
with applicable law and regulations. The Directors confirm that to the best of
their knowledge the condensed set of financial statements, within the Interim
Report, have been prepared in accordance with applicable accounting standards,
give a true and fair view of the assets, liabilities, financial position and
the return for the half-year ended 31 March 2011 and that the Chairman's
Statement, the Investment Manager's Review and the Interim Management Report
include a fair review of the information required by 4.1.8R to 4.2.11R of the
FSA's Disclosure and Transparency Rules.

The Interim Report has not been reviewed or audited by the Company's auditors.

The Interim Report was approved by the Board on 10 May 2011 and the above
responsibility statement was signed on its behalf by:

Anthony Townsend


Frostrow Capital LLP

Company Secretary

25 May 2011

0203 008 4913

A copy of the interim report has been submitted to the National Storage
Mechanism and will shortly be available for inspection at

The interim report will also shortly be available on the Company's website at

where up to date information on the Company, including daily NAV, share prices
and fact sheets, can also be found.

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