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Perpetual Inc&Growth (PLI)

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Monday 11 June, 2007

Perpetual Inc&Growth

Final Results


               Perpetual Income and Growth Investment Trust plc                

              Preliminary Announcement of Unaudited Final Results              

Chairman's Statement

Review of the year

During the year under review, the UK stock market turned in its fourth
successive year of double-digit returns, supported by ongoing merger and
acquisition activity and a robust domestic economy. Your Company's diluted net
asset value total return rose by 12.4% in comparison to 11.1% for the FTSE
All-Share Index.

Outlook

Your Manager remains cautiously optimistic in his outlook for the UK equity
market, despite concerns over the build-up of domestic inflationary pressures.
Such concerns lead our Manager towards a strategy that focuses clearly on
companies that should be able to perform well even in a more challenging
economic environment.

Board Membership

Following eleven years as Chairman, I shall be retiring from the Board of your
Company at the Annual General Meeting (`AGM') on 19 July 2007. I am pleased to
hand over the Chairmanship of the Company to William Alexander, as I am sure
that he will serve the Company well. I wish Bill and the rest of the Board
every success for the future.

Your Board is also pleased to welcome Mr Vivian Bazalgette as a non-executive
Director of the Company with effect from 21 May 2007. Mr Bazalgette brings
considerable experience to the Board.

Dividend

An increased interim dividend of 2.75p (2005: 2.40p) was paid to shareholders
on 29 December 2006. The Directors have declared a second interim dividend of
3.85p (2006: 3.60p) representing an increase in the total dividend for the year
of 10%. The second interim dividend will be paid on 29 June 2007 to
shareholders registered on 8 June 2007. The Board's aim is for the Company to
continue to maintain its policy of real dividend growth.

Gearing

Actual gearing of the Company was 21% at the year-end. The Board's policy is to
allow gearing to the level of 25%.

Final Warrant Exercise

During the year under review, holders of warrants had a final opportunity to
exercise the right to convert their warrants into ordinary shares at 100p. The
subscription period in which conversion was possible closed on 31 August 2006
(the final subscription date).

Following the final subscription date, the Company appointed a Trustee to act
on behalf of those warrantholders who had not exercised their right to convert.
The Trustee undertook a review of the remaining warrants and concluded that it
was within warrantholders' interests to convert them into ordinary shares. The
Trustee then sold the ordinary shares in the market and distributed the funds
(less costs) to those warrantholders to whom they were due.

On 14 September 2006, as a result of the exercise of all the Company's
outstanding warrants, 13,620,201 new ordinary shares were issued.

Subscription Share Exercise

During the period under review, subscription shareholders had their first
opportunity to exercise their right to subscribe for one ordinary share of the
Company at a price of 218.94p. The subscription period ended on 31 August 2006.
As a result, 758,886 ordinary shares were allotted on 14 September 2006.
Subscription shareholders will have further opportunities to convert their
holdings in each of the years 2007 to 2013.

Issued Share Capital

As a result of the first subscription share exercise and the conversion of all
the remaining warrants, your Company issued 14,379,087 ordinary shares. The
issued share capital of the Company at the time of writing is therefore
206,860,637 ordinary shares of 10p each and 18,136,367 subscription shares.

Corporate Governance

The Board remains committed to maintaining the highest standards of Corporate
Governance and is accountable to you as shareholders for the governance of the
Company's affairs.

The Directors believe that, during the period under review, they have complied
with the provisions of the AIC Code of Corporate Governance as endorsed by the
Financial Reporting Council, save in respect of matters discussed in the
Corporate Governance statements contained in the Annual Report and Accounts.

AGM

At the AGM there are five items of Special Business to be proposed:-

Share Issuance

First your Directors are asking for the usual authority to issue up to an
aggregate nominal amount of £6,895,354 (a third of the Company's issued share
capital as at 7 June 2007) in new ordinary shares. This will allow Directors to
issue shares within the prescribed limits should any favourable opportunities
arise to the advantage of shareholders. The powers authorised will not be
exercised at a price below Net Asset Value so that the interests of existing
shareholders are not diluted. This authority will expire at the AGM in 2008.

Secondly, your Directors are also asking for the usual authority to issue new
ordinary shares pursuant to a rights issue or otherwise than in accordance with
a rights issue of up to an aggregate nominal amount of £1,034,303 (5% of the
Company's issued share capital as at 7 June 2007) of new ordinary shares
dis-applying 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. This authority will expire at
the AGM in 2008.

Share Buybacks

Thirdly your Directors are seeking to renew the authority to buyback up to
31,008,409 (14.99% of the Company's issued share capital as at 7 June 2007)
subject to the restrictions referred to in the notice of the AGM. This
authority will expire at the AGM in 2008.

Your Directors are proposing that shares bought back by the Company either be
cancelled or alternatively, be held as treasury shares with a view to their
resale if appropriate, or later cancellation. The holding of treasury shares is
restricted to 10% of the Company's issued share capital and any resale of them
will only take place on terms that are in the best interests of shareholders.

Electronic Communications and Amendments to the Articles of Association

Fourthly, your Directors are seeking general authority from shareholders to
send or supply documents or information to shareholders in electronic form
(e.g., by e-mail) or by means of a Web site, so taking advantage of new company
legislation regarding electronic communications with shareholders, which became
effective on 20 January 2007. The resolution also makes various changes to the
Articles of Association to reflect the new legislation on electronic
communications, and to make a number of minor consequential changes required by
the Companies Act 2006.

Increase in Authorised Share Capital

Finally, your Directors are seeking authority under s.123 of the Companies Act
1985 to increase its authorised share capital to 300,000,000 ordinary shares of
10p each by the creation of 60,000,000 additional ordinary shares of 10p each.
One of your Company's longer term objectives is to increase the size of the
assets of the Company in a manner consistent with seeking to maximise returns
for shareholders. Should the opportunity arise to issue new shares, the current
authorised share capital may not be adequate to both cover such a new issue and
the potential exercise of all 18,136,367 subscription shares currently in
issue.

Your Directors have carefully considered all the resolutions proposed in the
Notice to the AGM and in their opinion, consider them all to be in the best
interests of shareholders as a whole. Your Directors therefore recommend that
shareholders vote in favour of each resolution.

The AGM of the Company will be held at the offices of INVESCO Asset Management
Limited on 19 July 2007 at 11.30am. I do hope that as many shareholders as
possible are able will attend. This will be an opportunity not only to meet the
Directors, but also to hear the views of Mark Barnett, who is the investment
manager at Invesco Perpetual with the day-to-day responsibility for managing
the Company's share portfolio.

Sir Patrick Sheehy
11 June 2007


Income Statement
for the year ended 31 March

                             2007                               2006           
                                                                               
                             Revenue Capital     Total  Revenue Capital   Total
                                                                               
                     Notes     £'000   £'000     £'000    £'000   £'000   £'000
                                                                               
Gains on investments                                                           
                                                                               
  at fair value                                                                
through                                                                        
  profit or loss                   -  57,517    57,517        - 123,526 123,526
                                                                               
Foreign exchange                                                               
                                                                               
  gains/(losses)                   -   5,646     5,646        - (3,078) (3,078)
                                                                               
Income                   2    19,729       -    19,729   16,025       -  16,025
                                                                               
Investment                                                                     
management                                                                     
                                                                               
  fee                    3   (1,709) (6,481)   (8,190)  (1,410) (6,813) (8,223)
                                                                               
Other expenses                 (451)     (2)     (453)    (512)       -   (512)
                                                                               
Net return before                                                              
finance                                                                        
  costs and taxation          17,569  56,680    74,249   14,103 113,635 127,738
                                                                               
Interest payable             (1,805) (4,211)   (6,016)  (1,259) (2,939) (4,198)
                                                                               
Return on ordinary                                                             
  activities before           15,764  52,469    68,233   12,844 110,696 123,540
tax                                                                            
                                                                               
Tax on ordinary                (321)       -     (321)    (327)       -   (327)
activities                                                                     
                                                                               
Return on ordinary                                                             
                                                                               
  activities after                                                             
tax for                                                                        
  the financial year          15,443  52,469    67,192   12,517 110,696 123,213
                                                                               
Return per ordinary                                                            
                                                                               
share:                                                                         
                                                                               
Basic                    4      7.7p   26.2p     33.9p     6.6p   58.1p   64.7p
                                                                               
Diluted                  4      6.9p   23.3p     30.2p     5.6p   49.7p   55.3p

The total column of this statement represents the Company's profit and loss
account, prepared in accordance with UK Accounting Standards. The supplementary
revenue and capital columns are both prepared under guidance published 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
therefore no Statement of Total Recognised Gains or Losses is presented. No
operations were acquired or discontinued in the year.

Reconciliation of Movements in Shareholders' Funds

                                           Capital    Capital                  
                           Share    Share  reserve  reserve -  Revenue         
                                                 -                             
                         capital  premium realised unrealised  reserve    Total
                                                                               
                           £'000    £'000    £'000      £'000    £'000    £'000
                                                                               
*Restated at 31 March     18,579  159,921  132,141     65,562   10,946  387,149
2005                                                                           
                                                                               
Final dividend                 -        -        -          -  (6,317)  (6,317)
                                                                               
Net return from                                                                
                                                                               
ordinary activities            -        -   29,639     81,057   12,517  123,213
                                                                               
Interim dividend               -        -        -          -  (4,619)  (4,619)
                                                                               
Issue of ordinary                                                              
                                                                               
  shares                     669    6,024        -          -        -    6,693
                                                                               
At 31 March 2006          19,248  165,945  161,780    146,619   12,527  506,119
                                                                               
Second interim dividend                                                        
(1)                                                                            
                                                                               
  for 2006                     -        -        -          -  (6,929)  (6,929)
                                                                               
Net return from                                                                
                                                                               
ordinary activities            -        -   68,918   (16,449)   15,443   67,912
                                                                               
First interim dividend                                                         
                                                                               
  for 2007                     -        -        -          -  (5,689)  (5,689)
                                                                               
Exercise of Warrants                                                           
                                                                               
  and Issue of ordinary                                                        
                                                                               
  shares                   1,438   13,844        -          -        -   15,282
                                                                               
At 31 March 2007          20,686  179,789  230,698    130,170   15,352  576,695

* Restated for new UK Acconting Standards

(1) The second interim dividend for the year ended 31 March 2006 was declared
and paid in the year ended 31 March 2007.

Balance Sheet

                                                            2007        2006
                                                                            
                                            Notes          £'000       £'000
                                                                            
Fixed assets                                                                
                                                                            
  Investments at fair value through profit               702,434     601,254
or loss                                                                     
                                                                            
Current assets                                                              
                                                                            
  Debtors                                                  3,241       6,142
                                                                            
                                                           3,241       6,142
                                                                            
Creditors: amounts falling due within one               (99,315)    (71,650)
year                                                                        
                                                                            
Net current liabilities                                 (96,074)    (65,508)
                                                                            
Total assets less current liabilities                    606,360     535,746
                                                                            
Creditors: amounts falling due after more               (29,665)    (29,627)
than one year                                                               
                                                                            
Net assets                                               576,695     506,119
                                                                            
Capital and reserves                                                        
                                                                            
  Called up share capital                                 20,686      19,248
                                                                            
Share premium account                                    179,789     165,945
                                                                            
Other reserves                                                              
                                                                            
  Capital reserve - realised                             230,698     161,780
                                                                            
  Capital reserve - unrealised                           130,170     146,619
                                                                            
Revenue reserve                                           15,352      12,527
                                                                            
Equity Shareholders' funds                               576,695     506,119
                                                                            
Net asset value per ordinary share                                          
                                                                            
Basic                                              5      278.8p      262.9p
                                                                            
Diluted                                            5      274.0p      249.4p

Cash Flow Statement

For the year ended 31 March

                                                       2007       2006
                                                                      
                                                      £'000      £'000
                                                                      
Net cashflow from operating activities                9,887      7,131
                                                                      
Servicing of finance                                (5,796)    (4,023)
                                                                      
Capital expenditure and financial investment       (41,377)   (25,461)
                                                                      
Equity dividends paid                              (12,618)   (10,936)
                                                                      
Net cash outflow before management of liquid                          
resources                                                             
                                                                      
and financing                                      (49,904)   (33,289)
                                                                      
Financing                                            15,282      6,693
                                                                      
Decrease in cash                                   (34,622)   (26,596)
                                                                      
Reconciliation of net cash flow to movement in                        
net debt                                                              
                                                                      
Decrease in cash                                   (34,622)   (26,596)
                                                                      
Exchange movements                                    4,611    (1,865)
                                                                      
Debenture stock non-cash movement                      (38)       (34)
                                                                      
Movement in net debt in the year                   (30,049)   (28,495)
                                                                      
Net debt at beginning of year                      (91,306)   (62,811)
                                                                      
Net debt at end of year                           (121,355)   (91,306)

Notes

1. Accounting Policies

The accounts have been prepared under the historical cost convention modified
to include the revaluation of investments, in accordance with applicable United
Kingdom Accounting Standards and in accordance with the Statement of
Recommended Practice "Financial Statements of Investment Trust Companies"
issued by the Association of Investment Companies (`the SORP') in 2005.

The financial information for the year ended 31 March 2007 has been prepared on
a basis consistent with the accounting policies adopted for the year ended 31
March 2006.

2. Income

                                                                2007       2006
                                                                               
                                                               £'000      £'000
                                                                               
Income from listed investments                                                 
                                                                               
UK dividends                                                  17,590     13,847
                                                                               
Overseas dividends                                             2,138      2,178
                                                                               
                                                              19,728     16,025
                                                                               
Other income                                                                   
                                                                               
Underwriting commission                                            1          -
                                                                               
Total income                                                  19,729     16,025
                                                                               
Total income comprises:                                                        
                                                                               
Dividends                                                     19,728     16,025
                                                                               
Other income                                                       1          -
                                                                               
                                                              19,729     16,025

3. Investment management fee

                                     2007                       2006           
                                                                               
                           Revenue  Capital    Total  Revenue  Capital    Total
                                                                               
                             £'000    £'000    £'000    £'000    £'000    £'000
                                                                               
Investment management fee    1,454    3,393    4,847    1,200    2,800    4,000
                                                                               
Performance-related                                                            
investment                                                                     
                                                                               
management fee                   -    2,122    2,122        -    2,998    2,998
                                                                               
Irrecoverable VAT thereon      255      966    1,221      210    1,015    1,225
                                                                               
                             1,709    6,481    8,190    1,410    6,813    8,223
                                                                               

(i) INVESCO Asset Management Limited provides investment management, company
secretarial and administration services to the Company under an agreement dated
20 February 1996 and subsequently amended on 27 December 2001. Details of this
are shown in the Report of the Directors in the Report & Accounts. At 31 March
2007 £1,496,000 (2006: £1,296,000) was due for payment in respect of the
investment management fee.

(ii) A performance-related fee is payable annually in arrears to the Manager,
if the Company's performance exceeds the FTSE All-Share Index. Details of this
fee is shown in the Report of the Directors in the Annual Report and Accounts.
At the year end £2,369,000 (2006: £3,522,000) was due for payment in respect of
the performance-related fee.

4. Return per ordinary share

Basic revenue, capital and total returns per ordinary share are based on each
of the net returns on ordinary activities after taxation and on 200,360,502
(2006: 190,377,085) shares being the weighted average number of shares in
issue.

The diluted revenue, capital and total returns per ordinary share have been
calculated by assuming 18,136,376 (2006: 32,515,454) shares were issued
following the exercise of the warrants in issue at 100p per share and the
exercise of Subscription Shares at 218.94p per Share. This produces a weighted
average of 224,997,004 (2006: 222,874,524) shares.

5. Net asset value

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

                             Net asset value            Net assets       
                                per share              attributable      
                                                                         
                                 2007        2006        2007        2006
                                                                         
                                Pence       Pence       £'000       £'000
                                                                         
Ordinary shares                                                          
                                                                         
- Basic                        278.8p       262.9     576,695     506,119
                                                                         
- Diluted                      274.0p       249.4     616,403     561,108

The basis of calculation for both the basic and diluted net asset values are
prepared in accordance with the SORP, which do not differ, in any material
respects from that calculated in accordance with the Articles of Association.

The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2007 or 2006. The financial
information for 2006 is derived from the statutory accounts for 2006 which have
been delivered to the Registrar of Companies. The auditors have reported on the
2006 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 2007 are currently unaudited, but 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 audited Report and Accounts will be posted to shareholders shortly. Copies
may be obtained during normal business hours from the Company's Registered
Office, 30 Finsbury Square, London, EC2A 1AG.

The Annual General Meeting will be held on 19 July 2007 at 11.30am at 30
Finsbury Square, London, EC2A 1AG.

By order of the Board

INVESCO Asset Management Limited
Company Secretary

Contacts

Andrew Watkins Tel: 020 7065 4023

Tim Mitchell Tel: 020 7065 3182

11 June 2007


                                                                     

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