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Perpetual Inc&Growth (PLI)

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Wednesday 05 June, 2002

Perpetual Inc&Growth

Final Results


               Perpetual Income and Growth Investment Trust plc                

              Preliminary Announcement of Unaudited Final Results              

Chairman's Statement

I am pleased to report that during the twelve months to 31 March 2002, the
Company's net asset value per share increased by 11.1% while the market price
increased by 17.8% from 133.5p to 157.3p. This compares to the FTSE Actuaries
All-Share Index which fell 5.7% over the same period. Although market
conditions were less than bright at the time of writing my Interim Statement,
the sharply reduced interest rates in the UK, Europe, and USA have, for the
most part, averted a global economic recession. The strength of the UK economy
coupled with signs of improving global markets during the period have
contributed to a successful second half performance of your Company. Your Board
are seeking approval for the payment of a final dividend of 2.85p (2001: 2.75p)
to be paid on 12 July 2002 to shareholders on the Register on 14 June 2002

During the year the investment policy has remained unchanged concentrating
investment in UK companies which offer prospects of both capital and income
growth. A number of investments were made in the aftermath of 11 September 2001
as attractive opportunities became available at competitive prices. These
amongst other investment decisions made over this volatile period have proved
successful. Within this context the importance of a flexible and responsive
style has been vindicated in the current market environment.

Stephen Whittaker, who has been a Director of the Company since launch, is not
seeking re-election at the forthcoming Annual General Meeting. Stephen has
recently left INVESCO Perpetual to take up a new appointment. I should like to
take this opportunity to thank Stephen for his contribution to the Company
since its inception. Edward Burke has been invited to join the Board. He has
worked with Stephen and Mark Barnett in Henley for a number of years and will
bring his considerable UK equities expertise to the Board.

Three items of special business are to be proposed at the Annual General
Meeting as special resolutions.

First, your Board are seeking renewal of the authority granted last year to
issue new ordinary shares in the Company. This will allow the Directors
flexibility to issue new shares within the prescribed limits in a shorter
period than would otherwise be the case. This power will not be exercised at an
issue price below net asset value, so that the interests of existing
shareholders are not diluted.

Second, your Board are also seeking renewal of the authority to issue new
ordinary shares disapplying pre-emption rights. This will allow shares to be
issued to new shareholders without having to be offered to existing
shareholders first, thus broadening the shareholder base of the Company.

Third, your Board wishes to renew the authority to buy-back up to 14.99% of the
Company's issued ordinary shares. Acquisitions under this authority will be
subject to the restrictions referred to in the Notice of Annual General Meeting
and will only be made at market prices below the prevailing net asset value. No
such purchases were made in the accounting year just ended but we continue to
believe that share buy-backs can be a useful tool in maintaining and enhancing
shareholder value. During the year 2,270,000 warrants were purchased by the
Company for cancellation.

Finally, I believe your Company offers investors good prospects relative to the
Income Growth sector for the coming year. The Company is well managed and
employs sound investment strategies. There may be a number of uncertainties
ahead but the Board remains confident that the active investment approach will
produce the desired result. It is therefore reasonable to expect that the
Company will continue to deliver attractive levels of total return over the
medium to longer term.

Sir Patrick Sheehy

Chairman

5 June 2002

Statement of Total Return (incorporating the revenue account)

for the year ended 31 March 2002

                                             2002                    2001        
                                                                                 
                                  Revenue Capital   Total Revenue Capital   Total
                                                                                 
                                    £'000   £'000   £'000   £'000   £'000   £'000
                                                                                 
Gains on investments                    -  38,310  38,310       -  41,080  41,080
                                                                                 
Foreign exchange losses                 -    (26)    (26)       -   (144)   (144)
                                                                                 
Warrants purchased for                  - (1,224) (1,224)       -       -       -
cancellation                                                                     
                                                                                 
Income                             10,735       -  10,735  10,682       -  10,682
                                                                                 
Investment management                                                            
                                                                                 
 fee                                (870) (4,765) (5,635)   (795) (3,477) (4,272)
                                                                                 
Other expenses                      (231)       -   (231)   (163)    (10)   (173)
                                                                                 
Net return before finance                                                        
                                                                                 
costs and taxation                  9,634  32,295  41,929   9,724  37,449  47,173
                                                                                 
Interest payable                    (804) (1,875) (2,679)   (852) (1,987) (2,839)
                                                                                 
Return on ordinary                                                               
activities                                                                       
                                                                                 
before tax                          8,830  30,420  39,250   8,872  35,462  44,334
                                                                                 
Tax on ordinary activities          (147)      86    (61)   (110)      90    (20)
                                                                                 
Return on ordinary                                                               
activities                                                                       
                                                                                 
 after tax for the financial        8,683  30,506  39,189   8,762  35,552  44,314
year                                                                             
                                                                                 
Dividends in respect of                                                          
                                                                                 
 ordinary shares                  (8,602)       - (8,602) (8,212)       - (8,212)
                                                                                 
Transfer to reserves                   81  30,506  30,587     550  35,552  36,102
                                                                                 
Return per ordinary share                                                        
                                                                                 
Basic                                4.9p   17.2p   22.1p    5.0p   20.1p   25.1p
                                                                                 
Diluted                              4.7p   16.5p   21.2p    4.8p   19.6p   24.4p

The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued in the year.

Reconciliation of Movement in Shareholder's Funds

for the year ended 31 March 2002

                                                                2002       2001
                                                                               
                                                                  £'000   £'000
                                                                               
Revenue return for the year                                          81     550
                                                                               
Capital return for the year                                      30,506  35,552
                                                                               
Issue of ordinary shares                                            741     169
                                                                               
Net movement in Shareholder's funds                              31,328  36,271
                                                                               
Opening Shareholder's funds                                     276,529 240,258
                                                                               
Closing Shareholders' funds                                     307,857 276,529

The accompanying notes are an integral part of this statementBalance Sheet

as at 31 March 2002

                                                           2002          2001
                                                                             
                                                           £'000        £'000
                                                                             
Fixed assets                                                                 
                                                                             
  Investments                                                358,604  329,394
                                                                             
Current assets                                                               
                                                                             
  Debtors                                                      6,698    5,344
                                                                             
                                                               6,698    5,344
                                                                             
Creditors: amounts falling due within one year              (27,905) (28,707)
                                                                             
Net current liabilities                                     (21,207) (23,363)
                                                                             
Total assets less current liabilities                        337,397  306,031
                                                                             
Creditors: amounts falling due after more than              (29,540) (29,502)
one year                                                                     
                                                                             
                                                             307,857  276,529
                                                                             
Capital and reserves                                                         
                                                                             
Called-up share capital                                       17,735   17,661
                                                                             
Share premium account                                        151,852  151,185
                                                                             
Other reserves:                                                              
                                                                             
  Capital reserves - realised                                 99,744   93,711
                                                                             
  Capital reserves - unrealised                               34,951   10,478
                                                                             
Revenue reserve                                                3,575    3,494
                                                                             
Equity shareholders' funds                                   307,857  276,529
                                                                             
Net asset value per ordinary share                                           
                                                                             
Basic                                                         173.6p   156.6p
                                                                             
Diluted                                                       163.7p   147.4p

These financial statements were approved by the Board of Directors on 5 June
2002.

Signed on behalf of the Board of Directors

Sir Patrick Sheehy - Chairman

The accompanying notes are an integral part of this statement

Cash Flow Statement

for the year ended 31 March 2002

                                                              2002         2001
                                                                               
                                                                 £'000    £'000
                                                                               
Cash inflow from operating activities                            6,408    8,566
                                                                               
Servicing of finance                                           (2,824)  (2,839)
                                                                               
Taxation                                                         (167)       15
                                                                               
Capital expenditure and financial investment                     5,617  (4,425)
                                                                               
Equity dividends paid                                          (8,404)  (8,048)
                                                                               
Net cash inflow before management of liquid resources              630  (6,731)
and financing                                                                  
                                                                               
Financing                                                          608      169
                                                                               
Increase/(decrease) in cash                                      1,238  (6,562)
                                                                               
Reconciliation of net cash flow to movement in net                             
debt                                                                           
                                                                               
Increase/(decrease) in cash                                      1,238  (6,562)
                                                                               
Exchange movements                                                (26)    (144)
                                                                               
Debenture stock non-cash movement                                 (38)     (38)
                                                                               
Movement in net debt in the year                                 1,174  (6,744)
                                                                               
Net debt at beginning of year                                 (44,196) (37,452)
                                                                               
Net debt at end of year                                       (43,022) (44,196)

The accompanying notes are an integral part of this statement.

The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2002 or 2001. The financial
information for 2001 is derived from the statutory accounts for 2001 which have
been delivered to the Registrar of Companies. The auditors have reported on the
2001 statutory accounts and their report was unqualified and did not contain a
statement under s237(2) or (3) of the Companies Act 1985. The statutory
accounts for 2002 will be finalised on the basis of the information presented
by the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.

The accompanying notes are an integral part of this statement

1. Income

                                                    2002          2001
                                                                      
                                                    £'000        £'000
                                                                      
Income from listed investments                                        
                                                                      
UK dividends                                            10,305  10,039
                                                                      
Overseas dividends                                         375     458
                                                                      
UK unfranked investment income - interest                   32     168
                                                                      
                                                        10,712  10,665
                                                                      
Other income                                                          
                                                                      
Deposit interest                                             4       -
                                                                      
Underwriting commission                                     19      17
                                                                      
                                                            23      17
                                                                      
Total income                                            10,735  10,682
                                                                      
Total income comprises:                                               
                                                                      
Dividends                                               10,680  10,497
                                                                      
Interest                                                    36     168
                                                                      
Other income                                                19      17
                                                                      
                                                        10,735  10,682

2. Taxation

                                    2002                    2001       
                                                                       
                         Revenue Capital   Total Revenue Capital  Total
                                                                       
                         £'000     £'000   £'000   £'000   £'000  £'000
                                                                       
Overseas Taxation             61       -      61      20       -     20
                                                                       
Tax relief attributable                                                
to                                                                     
                                                                       
  management fee and                                                   
interest                                                               
                                                                       
  payable, allocated to                                                
Capital                                                                
                                                                       
  reserve-related             86    (86)       -      90    (90)      -
                                                                       
                             147    (86)      61     110    (90)     20

                                                    2002          2001
                                                                      
                                                    £'000        £'000
                                                                      
Revenue on Activities before taxation                    8,830   8,872
                                                                      
Reconciliation of current tax charge                                  
                                                                      
Theoretical tax at UK Corporation Tax rate of 30%        2,649   2,662
(2001: 30%)                                                           
                                                                      
Effects of:                                                           
                                                                      
- UK dividends which are not taxable                   (3,092) (3,205)
                                                                      
- Revenue account expenses in excess of taxable            443     543
income                                                                
                                                                      
                                                             -       -

3. Net asset value per ordinary share

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

                                   Net asset value per  Net assets     
                                   share                attributable   
                                                                       
                                2002          2001 2002            2001
                                                                       
                                pence        pence £`000          £`000
                                                                       
Ordinary shares                                                        
                                                                       
- Basic                              173.6   156.6    308,035   276,529
                                                                       
- Fully diluted                      163.7   147.4    335,476   306,981

4. Notes to the cash flow statement

(a) Reconciliation of operating profit to operating cash                       
    flows                                                                      
                                                                               
                                                            2002           2001
                                                                               
                                                            £'000         £'000
                                                                               
    Net revenue before finance costs and taxation               9,634     9,724
                                                                               
    Decrease in debtors                                           309       530
                                                                               
    Increase in creditors                                       1,256     1,789
                                                                               
    Investment management fee charged to capital              (4,765)   (3,477)
                                                                               
    Tax on unfranked investment income                           (26)         -
                                                                               
    Net cash inflow from operating activities                   6,408     8,566
                                                                               
(b) Analysis of cash flow for headings netted in the cash                      
    flow statement                                                             
                                                                               
                                                            2002           2001
                                                                               
                                                            £'000         £'000
                                                                               
    Servicing of finance                                                       
                                                                               
    Interest paid on overdrafts                               (1,082)     (793)
                                                                               
    Interest paid on debenture interest                       (1,742)   (2,046)
                                                                               
                                                              (2,824)   (2,839)
                                                                               
                                                            2002           2001
                                                                               
                                                            £'000         £'000
                                                                               
    Net financial investment                                                   
                                                                               
    Purchase of investments                                 (213,181) (243,951)
                                                                               
    Sale of investments                                       218,798   239,526
                                                                               
                                                                5,617   (4,425)
                                                                               
                                                            2002           2001
                                                                               
                                                            £'000         £'000
                                                                               
    Financing                                                                  
                                                                               
    Issue of ordinary share capital                               741       169
                                                                               
    Warrants purchased for cancellation                         (133)         -
                                                                               
                                                                  608       169

(c) Analysis of changes in net debt

                             1 April     Cash   Exchange Debenture  31 March
                                         flow                               
                                2001           movements     Stock      2002
                                                                            
                                                          non-cash          
                                                                            
                                                         movements          
                                                                            
                               £'000    £'000      £'000     £'000     £'000
                                                                            
    Bank overdraft          (14,694)    1,238       (26)         -  (13,482)
                                                                            
    Debt due after five     (29,502)        -          -      (38)  (29,540)
    years - Debenture                                                       
                                                                            
    Net debt                (44,196)    1,238       (26)      (38)  (43,022)

2 Perpetual Income and Growth Investment Trust plc

22 Perpetual Income and Growth Investment Trust plc

24 Perpetual Income and Growth Investment Trust plc

28 Perpetual Income and Growth Investment Trust plc


                                                                                                                                                                                                        

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