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Perpetual Inc&Growth (PLI)

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Friday 18 November, 2011

Perpetual Inc&Growth

Half-yearly Report


               Perpetual Income and Growth Investment Trust plc                

                         Half-Yearly Financial Report                          

                    for the Six Months to 30 September 2011                    

Key Facts

Perpetual Income and Growth Investment Trust plc (`the Company') is an
investment trust company listed on The London Stock Exchange. The Company is
managed by Invesco Asset Management Limited.

Investment Objective of the Company

The Company's investment objective is to provide shareholders with capital
growth and real growth in dividends over the medium to longer term from a
portfolio of securities listed mainly in the UK equity and fixed interest
markets.

Full details of the Company's Investment Policy (incorporating the investment
objective and risk and investment limits) can be found on pages 16 and 17 of
the Company's 2011 annual financial report. The Investment Policy was updated
at the 2011 AGM.

Performance Statistics

The Benchmark index of the Company is the FTSE All-Share Index.

                                                            At       At        
                                                                               
                                                            30 31 March       %
                                                     September                 
                                                                               
                                                          2011     2011  Change
                                                                               
Total return (all income reinvested):                                          
                                                                               
Diluted net assets*                                                        -2.3
                                                                               
Benchmark*, the FTSE All-Share Index                                      -11.8
                                                                               
Diluted net asset value per                                                    
                                                                               
ordinary share:                                                                
                                                                               
- after charging proposed dividend                      243.1p   252.8p    -3.8
                                                                               
- as balance sheet                                      245.5p   255.5p    -3.9
                                                                               
Shareholders' funds (£'000)                            527,665  545,341    -3.2
                                                                               
Mid-market price:                                                              
                                                                               
-ordinary shares                                        241.2p   252.8p    -4.6
                                                                               
-subscription shares                                     34.5p    40.0p   -13.8
                                                                               
Discount per ordinary share                               1.8%     1.1%        
                                                                               
Capital return - Benchmark*, the                                               
                                                                               
FTSE All-Share Index                                                      -13.5
                                                                               
Gross gearing                                            19.8%    19.0%        
                                                                               
Net gearing                                              19.8%    19.0%        

* Source: Thomson Reuters Datastream and Morningstar.

                                                 six months ended              
                                                                               
                                             30 September 30 September         
                                                                               
                                                     2011         2010         
                                                                               
Revenue                                                                        
                                                                               
Diluted revenue return per share                    5.94p        5.46p     +8.8
                                                                               
Dividends - first interim                            2.4p         2.2p         
                                                                               
- second interim                                     2.4p         2.2p         
                                                                               
- total                                              4.8p         4.4p     +9.1

INTERIM MANAGEMENT REPORT INCORPORATING CHAIRMAN'S STATEMENT

Chairman's Statement

Performance

During the six months to 30 September 2011, the Company's total return was
-2.3% compared to the -11.8% return from the FTSE All-Share Index. The
mid-market price per share decreased by 4.6% to 241.2p and the discount to NAV
per ordinary share widened from 1.1% to 1.8%.

Dividend

The Board has declared a second interim dividend of 2.4p per share in respect
of the three months to 30 September 2011. This dividend is payable on 28
December 2011 to shareholders registered at the close of business on 9 December
2011.

Subscription Share Exercise and Issued Share Capital

During the period under review, subscription shareholders had their sixth
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 2011.
As a result, 491,203 ordinary shares were allotted on 13 September 2011.
Subscription shareholders will have further opportunities to convert their
holdings in the years 2012 and 2013.

During the period a further 1,694,073 ordinary shares were issued for cash and
as a result of the above transactions, the issued share capital of your Company
at the period end was 213,085,780 ordinary shares of 10p each and 16,987,622
subscription shares.

William Alexander

Chairman

18 November 2011

Investment Management Report

Market Review

The stock market's optimism of early 2011 faded over the six months as economic
news flow deteriorated, reflecting a worsening outlook. In fact, by the summer
months of 2011, market sentiment had become so poor that the FTSE All-Share
Index recorded its largest fall since the third quarter of 2002. Macro-economic
news flow, particularly the European sovereign debt and banking crisis,
dominated investor sentiment for much of the period. Forecasts for slower
economic growth led to reductions in profit forecasts for cyclical industries
and to sharper falls in the share prices of those sectors.

The IMF cut its forecast for economic growth in 2011 for the UK from 1.5% to
1.1% as the Bank of England continued to keep interest rates on hold at 0.5%
raising expectations for an extension of quantitative easing, which has since
been confirmed. Meanwhile, the UK government's preferred measure of UK
inflation, the Consumer Price Index (CPI), remained above its target of 2.0%,
at 5%. The Bank of England still believes that the CPI will fall sharply in
2012. However, there continued to be areas of positive corporate news flow,
with a number of large companies announcing share buy backs as well as
continuing to deliver resilient operational performance.

Portfolio Strategy & Review

The Company's net asset value, including reinvested dividends, fell by 2.7%
during the six months to the end of September 2011. This compares to a fall of
11.8% from the FTSE All-Share Index (total return).

The performance of the Company over the period benefited from its positioning
in areas of the market which exhibit reliable growth in revenues and cash
flows. These have performed well against the recent background of increasing
market uncertainty.

The portfolio's holdings in the tobacco sector performed strongly over the six
months. Shares in Imperial Tobacco rose on news that the price war in Spain now
appears to be over and were further boosted by speculation regarding a possible
takeover bid. Shares in Reynolds American saw returns enhanced by the rise in
the US dollar.

The Company is also heavily invested in the pharmaceutical sector. News flow
over the period was generally supportive for the sector; for an industry that
is priced for a much more difficult long term future, the market was surprised
by a number of new drug approvals by the FDA, including Horizant for
GlaxoSmithKline and Brilinta for AstraZeneca. The portfolio's holdings in Roche
further benefited from the strength of the Swiss franc against sterling.

Weighing on performance were the holdings in BAE Systems, BG Group, Amlin,
Balfour Beatty and Daily Mail & General Trust. These shares fell in nervous
markets and, in the case of BAE Systems, on concerns over the outlook for
defence spending.

In terms of portfolio activity, it is noteworthy that overall activity was
limited as the Manger's views on the market and the wider economy were largely
unaltered. The Company reduced its exposure to holdings in Daily Mail & General
Trust and Tate & Lyle and, following strong performance, sold its holdings in
Altria and Bunzl during the period. The proceeds were used to make new
investments in Doric Nimrod Air Two, Rolls Royce and TalkTalk Telecom and to
add to existing holdings in BAE Systems and N.Brown.

Outlook

The recent news from the UK economy has provided strong evidence of the fragile
condition of the domestic economic situation. Indeed, according to Sir Mervyn
King, we are in the middle of the worst financial crisis since the 1930's. This
level of economic weakness is not a big surprise and the Manager expects this
challenging environment to persist for several years to come. This view has
been instrumental in shaping the investment strategy for the past year or so.
The strategy has been focused on taking advantage of the strength of large
quoted companies. In sharp contrast to the household and government sectors,
corporates look to be in a position of strength, not just in the UK but
globally. Large companies in particular are mostly well managed and have
flexibility in their use of capital and labour. This has allowed them to
gradually reduce debt levels in recent years, to the extent that company
balance sheets in general are now in excellent shape. This is in stark contrast
to most sovereign balance sheets, which have been vastly expanded to provide
the large stimulus packages that have characterised the post-crisis world and
leave many sovereign credit ratings at risk of downgrades.

Many of the biggest holdings in the portfolio have delivered solid levels of
earnings, cash flow and dividend growth over the last three years. This
operational progress has been achieved despite the financial crisis and the
deepest recession in post-war history. The management teams of the companies
that the Company owns have clearly demonstrated their ability to grow on a per
share basis over the recent past. This gives the Manager confidence that these
businesses can continue in similar vein in the future notwithstanding the
continued probable weakness of developed world economies.

One thing that is extraordinary about these businesses is the valuation at
which their shares trade. Despite their dependability and their proven ability
to grow through the most testing of economic circumstances, their valuations
are low both in absolute terms and relative to other asset classes. Indeed, in
many instances, the dividend yield on their equity is higher than their
equivalent corporate bond yield. Whilst the equity asset class remains out of
favour, the Manager believes that equities are lower risk now than for many
years given the scale of the derating witnessed. Despite the continuing
problems in the Eurozone and the associated volatility in the UK stock market,
as an equity investor, the manager believes that the current environment offers
an exceptional opportunity to invest in some of the biggest and best companies
in the market at extremely attractive valuations.

Mark Barnett

Investment Manager

18 November 2011

Related Party

Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager and Company Secretary to the Company. Details of
IAML's services and fee arrangements are given in the latest annual financial
report, which is available on the Manager's website.

Principal Risks and Uncertainties

The principal risk factors relating to the Company can be summarised as
follows:

• Investment policy and process - the adopted investment policy and process may
not achieve the returns sought by the Company;

• Market movements and portfolio performance -a fall in the stock markets and/
or a prolonged period of decline in the stock markets relative to other forms
of investments will affect the performance of the portfolio, as well as the
performance of individual portfolio investments;

• Ordinary shares -share prices are affected by market sentiment, supply and
demand for the shares, and dividends declared as well as portfolio performance;

• Gearing - the use of borrowings will amplify the effect on shareholders'
funds of portfolio gains and losses;

• Regulatory - consequences of a serious breach of regulatory rules could
include, but are not limited to, the Company being subject to capital gains on
its investments; suspension from the London Stock Exchange; fines; a qualified
audit report, reputational problems and a loss of assets through fraud; and

• Reliance on Third Party Service Providers - failure by any service provider
to carry out its obligations to the Company could have a materially detrimental
impact on the operation of the Company and affect the ability of the Company to
successfully pursue its investment policy.

A detailed explanation of these principal risks and uncertainties can be found
on pages 21 and 22 of the Company's 2011 annual financial report, which is
available on the Manager's website

www.invescoperpetual.co.uk/investmenttrusts

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

Going Concern

The financial statements have been prepared on a going concern basis. The
Directors consider this is the appropriate basis as they have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. In reaching this conclusion, the
Directors took into account the Company's investment objective, its risk
management policies, the diversified portfolio of readily realisable securities
which can be used to meet funding commitments, the overdraft which can be used
for both long-term and short-term funding requirements, the liquidity of the
investments which could be used to repay the overdraft in the event that the
facility could not be renewed or replaced, and the ability of the Company to
meet all of its liabilities, including the £30 million debenture, and ongoing
expenses.

DIRECTORS' RESPONSIBILITY STATEMENT

in respect of the preparation of the half-yearly financial report

The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.

The Directors confirm that to the best of their knowledge:

  * the condensed set of financial statements contained within the half-yearly
    financial report have been prepared in accordance with the Accounting
    Standards Board's Statement "Half-Yearly Financial Report";
   
  * the interim management report includes a fair review of the information
    required by DTR 4.2.7R and DTR 4.2.8R of the FSA's Disclosure and
    Transparency Rules; and
   
  * the interim management report includes a fair review of the information
    required on related party transactions.
   
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.

Signed on behalf of the Board of Directors.

William Alexander

Chairman

18 November 2011

INVESTMENT PORTFOLIO STATEMENT AT 30 SEPTEMBER 2011

UK ordinary shares unless stated otherwise

                                                            Market          
                                                                            
                                                             Value      % of
                                                                            
Company                           Sector                     £'000 Portfolio
                                                                            
Equity investments                                                          
                                                                            
Reynolds American                 Tobacco                   32,970       5.2
                                                                            
(US Common Stock)                                                           
                                                                            
Imperial Tobacco                  Tobacco                   32,091       5.1
                                                                            
GlaxoSmithKline                   Pharmaceuticals &         31,230       4.9
                                  Biotechnology                             
                                                                            
British American Tobacco          Tobacco                   29,484       4.7
                                                                            
Vodafone                          Mobile Communications     28,167       4.5
                                                                            
AstraZeneca                       Pharmaceuticals &         27,185       4.3
                                  Biotechnology                             
                                                                            
BG                                Oil & Gas Producers       25,615       4.1
                                                                            
BT                                Fixed Line                25,585       4.0
                                  Telecommunications                        
                                                                            
BAE Systems                       Aeropace & Defence        19,968       3.2
                                                                            
Roche (Swiss stock)               Pharmaceuticals &         19,095       3.0
                                  Biotechnology                             
                                                                            
Top ten holdings                                           271,390      43.0
                                                                            
Babcock International             Support Services          18,656       3.0
                                                                            
Reckitt Benckiser                 Household Goods &         18,502       2.9
                                                                            
                                  Home Construction                         
                                                                            
Capita                            Support Services          17,743       2.8
                                                                            
Centrica                          Gas, Water &              16,812       2.7
                                  Multiutilities                            
                                                                            
Tesco                             Food & Drug Retailers     16,696       2.6
                                                                            
Provident Financial               Financial Services        14,878       2.4
                                                                            
Compass                           Travel & Leisure          13,770       2.2
                                                                            
Hiscox                            Non-life Insurance        12,891       2.0
                                                                            
Pennon                            Gas, Water &              12,311       1.9
                                  Multiutilities                            
                                                                            
SSE (formerly Scottish &          Electricity               12,093       1.9
                                                                            
Southern Energy)                                                            
                                                                            
Top twenty holdings                                        425,742      67.4
                                                                            
BTG                               Pharmaceuticals &         12,076       1.9
                                  Biotechnology                             
                                                                            
Napo Pharmaceuticals              Pharmaceuticals &         11,065       1.7
                                  Biotechnology                             
                                                                            
(US Common stock) UQ                                                        
                                                                            
Drax                              Electricity               10,953       1.7
                                                                            
International Power               Gas, Water &              10,820       1.7
                                  Multiutilities                            
                                                                            
Balfour Beatty                    Construction & Materials  10,713       1.7
                                                                            
KCOM                              Fixed Line                10,030       1.6
                                  Telecommunications                        
                                                                            
Homeserve                         Support Services           9,480       1.5
                                                                            
Morrison (W) Supermarket          Food & Drug Retailers      8,977       1.4
                                                                            
Beazley                           Non-life Insurance         8,600       1.4
                                                                            
Serco                             Support Services           8,472       1.3
                                                                            
Top thirty holdings                                        526,928      83.3
                                                                            
Rentokil Initial                  Support Services           8,311       1.3
                                                                            
Amlin                             Non-life Insurance         8,298       1.3
                                                                            
Chemring                          Aerospace & Defence        8,139       1.3
                                                                            
Tate & Lyle                       Food Producers             7,090       1.1
                                                                            
Daily Mail `A'                    Media                      6,675       1.1
                                                                            
Ladbrokes                         Travel & Leisure           6,595       1.0
                                                                            
Talk Talk Telecom                 Fixed Line                 5,973       1.0
                                  Telecommunications                        
                                                                            
Doric Nimrod Air Two              Equity Investment          4,773       0.8
                                  Instruments                               
                                                                            
Vectura                           Pharmaceuticals &          4,463       0.7
                                  Biotechnology                             
                                                                            
Lombard Medical                   Healthcare Equipment &     4,394       0.7
                                  Services                                  
                                                                            
Technologies                                                                
                                                                            
Top forty holdings                                         591,639      93.6
                                                                            
Altus Resources                   Equity Investment          3,764       0.6
                                  Instruments                               
                                                                            
Impax Environmental               Equity Investment          3,734       0.6
                                  Instruments                               
                                                                            
Markets                                                                     
                                                                            
Impax Asian                       Equity Investment          3,696       0.6
                                  Instruments                               
                                                                            
Environmental                                                               
                                                                            
Markets -                                                                   
                                                                            
ordinary & subscription                                                     
                                                                            
shares                                                                      
                                                                            
N. Brown                          General Retailers          3,640       0.6
                                                                            
Damille Investment                Equity Investment          3,188       0.5
                                  Instruments                               
                                                                            
Macau Property                    Real Estate Investment &   2,401       0.4
                                  Services                                  
                                                                            
UK Coal                           Mining                     2,297       0.4
                                                                            
Rolls Royce                       Aerospace & Defence        1,838       0.3
                                                                            
Imperial Innovations              Financial Services                        
                                                                            
- ordinary &                                                 1,159       0.3
                                                                            
- preference UQ shares                                         592          
                                                                            
Trading Emissions                 Financial Services         1,701       0.3
                                                                            
Top fifty holdings                                         619,649      98.2
                                                                            
Halosource        Chemicals                          1,517     0.2          
                                                                            
Landkom           Food Producers                     1,370     0.2          
International                                                               
                                                                            
Xcounter          Healthcare                         1,110     0.2          
                  Equipment &                                               
                  Services                                                  
                                                                            
Fusion            Financial                            863     0.1          
                  Services                                                  
                                                                            
Workspace         Real Estate                          720     0.1          
                  Investment &                                              
                  Services                                                  
                                                                            
Yell              Media                                562     0.1          
                                                                            
PuriCore          Healthcare                           530     0.1          
                  Equipment &                                               
                  Services                                                  
                                                                            
Renovo            Pharmaceuticals                      476     0.1          
                  & Biotechnology                                           
                                                                            
Walton & CoUQ     Banks                                453     0.1          
                                                                            
XTL               Pharmaceuticals                      157       -          
Biopharmaceutical & Biotechnology                                           
                                                                            
(US ADR)                                                                    
                                                                            
Top sixty                                          627,407    99.4          
holdings                                                                    
                                                                            
Helphire          Financial                            123       -          
                  Services                                                  
                                                                            
Mirada            Media                                 15                  
                                                                            
Ecofin Water &    Equity                                 1       -          
Power -           Investment                                                
                  Instruments                                               
                                                                            
subscription                                                                
shares                                                                      
                                                                            
Total equity                                       627,546    99.4          
investments (63)                                                            
                                                                            
Other investments                                                           
                                                                            
Barclays Bank -                                                             
Nuclear                                                                     
                                                                            
Power Notes                                                                 
                                                                            
28 February 2019  Electricity                        1,678     0.3          
                                                                            
PuriCore          Healthcare                         1,500     0.2          
Convertible       Equipment &                                               
                  Services                                                  
                                                                            
NotesUQ                                                                     
                                                                            
Ecofin Water &    Equity                               475     0.1          
Power             Investment                                                
                  Instruments                                               
                                                                            
6% July 31 2016                                                             
                                                                            
Total other                                          3,653     0.6          
interest                                                                    
investments (3)                                                             
                                                                            
Total investments                                  631,199   100.0          
(66)                                                                        

UQ Unquoted

Condensed Income Statement

                                                                        Year to
                                                                               
                        Six months to             Six months to        31 March
                                                                               
                      30 September 2011         30 September 2010          2011
                                                                               
                   Revenue  Capital    Total   Revenue Capital    Total   Total
                                                                               
                     £'000    £'000    £'000     £'000   £'000    £'000   £'000
                                                                               
(Losses)/gains           - (19,434) (19,434)         -  20,711   20,711  54,819
on investments                                                                 
at fair value                                                                  
                                                                               
Foreign exchange         -        5        5         - (1,128)  (1,128) (1,064)
gains/(losses)                                                                 
                                                                               
Income                                                                         
                                                                               
UK dividends        13,136        -   13,136    11,891       -   11,891  21,165
                                                                               
Overseas               977        -      977     1,124       -    1,124   2,807
dividends                                                                      
                                                                               
Unfranked              245        -      245        14       -       14      94
investment                                                                     
income                                                                         
                                                                               
Scrip dividends          -        -        -        83       -       83      83
                                                                               
Gross return        14,358 (19,429)  (5,071)    13,112  19,583   32,695  77,904
                                                                               
Investment           (744)  (1,736)  (2,480)     (653) (1,524)  (2,177) (4,590)
management fee -                                                               
note 2                                                                         
                                                                               
Performance fee          -  (2,737)  (2,737)         -       -        -       -
- note 2                                                                       
                                                                               
Other expenses -     (293)      (1)    (294)     (389)       -    (389)   (677)
note 3                                                                         
                                                                               
Net return                                                                     
before finance                                                                 
costs and                                                                      
                                                                               
taxation            13,231 (23,903) (10,582)    12,070  18,059   30,129  72,637
                                                                               
Finance costs -      (453)  (1,057)  (1,510)     (414)   (965)  (1,379) (2,842)
note 2                                                                         
                                                                               
Return on                                                                      
ordinary                                                                       
activities                                                                     
before                                                                         
                                                                               
taxation            12,868 (24,960) (12,092)    11,656  17,094   28,750  69,795
                                                                               
Tax on ordinary      (146)        -    (146)     (167)       -    (167)   (421)
activities                                                                     
                                                                               
Return on                                                                      
ordinary                                                                       
activities after                                                               
                                                                               
taxation for the    12,722 (24,960) (12,238)    11,489  17,094   28,583  69,374
financial period                                                               
                                                                               
Return per                                                                     
ordinary share -                                                               
note 4                                                                         
                                                                               
Basic                6.01p (11.80p)  (5.79p)     5.47p   8.14p   13.61p  32.99p
                                                                               
Diluted              5.94p (11.65p)  (5.71p)     5.46p   8.13p   13.59p  32.80p

The total column of this statement represents the Company's income statement.
The supplementary revenue and capital columns are presented for information
purposes in accordance with the Statement of Recommended Practise issued by the
Association of Investment Companies. All items in the above statement derive
from continuing operations and the Company has no other gains or losses. No
operations were acquired or discontinued in the period.­

Condensed Balance Sheet

Registered number 3156676

                                                        At          At       At
                                                                               
                                                        30          30 31 March
                                                 September   September         
                                                                               
                                                      2011        2010     2011
                                                                               
                                                     £'000       £'000    £'000
                                                                               
Fixed assets                                                                   
                                                                               
Investments held at fair value through                                         
                                                                               
profit or loss                                     631,199     606,662  645,324
                                                                               
Current assets                                                                 
                                                                               
Amounts due from brokers                             1,491           -    3,052
                                                                               
Proceeds due from issue of                                                     
                                                                               
new shares                                           1,008           -        -
                                                                               
Prepayments and accrued income                       2,751       2,767    3,596
                                                                               
                                                     5,250       2,767    6,648
                                                                               
Creditors: amounts falling due                                                 
                                                                               
within one year                                                                
                                                                               
Bank overdraft                                    (74,428)    (64,834) (73,956)
                                                                               
Amounts due to brokers                                (67)       (941)  (1,079)
                                                                               
Accruals and deferred income                       (1,719)     (1,743)  (1,791)
                                                                               
                                                  (76,214)    (67,518) (76,826)
                                                                               
Net current liabilities                           (70,964)    (64,751) (70,178)
                                                                               
Total assets less current liabilities              560,235     541,911  575,146
                                                                               
Creditors: amounts falling due                                                 
                                                                               
after more than one year                                                       
                                                                               
Debenture 2014                                    (29,833)    (29,777) (29,805)
                                                                               
Provision for performance fee                      (2,737)           -        -
                                                                               
Net assets                                         527,665     512,134  545,341
                                                                               
Capital and reserves                                                           
                                                                               
Share capital - note 6                              21,308      21,025   21,090
                                                                               
Share premium                                      192,955     186,116  187,732
                                                                               
Capital reserve                                    292,845     286,347  317,805
                                                                               
Revenue reserve                                     20,557      18,646   18,714
                                                                               
Shareholders' funds                                527,665     512,134  545,341
                                                                               
Net asset value per                                                            
                                                                               
ordinary share - note 5                                                        
                                                                               
Basic                                               247.6p      243.6p   258.6p
                                                                               
Diluted                                             245.5p      241.7p   255.5p

Condensed Cash Flow Statement

                                               Six months  Six months          
                                                                               
                                                       to          to   Year to
                                                                               
                                                       30          30  31 March
                                                September   September          
                                                                               
                                                     2011        2010      2011
                                                                               
                                                    £'000       £'000     £'000
                                                                               
Net return before finance costs                                                
                                                                               
and taxation                                     (10,582)      30,129    72,637
                                                                               
Losses/(gains) on investments                      19,434    (20,711)  (54,819)
                                                                               
Foreign exchange (gains)/losses                       (5)       1,128     1,064
                                                                               
Scrip dividends                                         -        (83)      (83)
                                                                               
Decrease/(increase) in debtors                        845          16   (1,258)
                                                                               
Increase in creditors and provisions                2,665          13       135
                                                                               
Tax on overseas income                              (146)       (167)     (421)
                                                                               
Net cash flow from operating                                                   
                                                                               
activities                                         12,211      10,325    17,255
                                                                               
Servicing of finance                              (1,482)     (1,282)   (2,789)
                                                                               
Capital expenditure and financial                                              
                                                                               
investment                                                                     
                                                                               
Purchase of investments                          (59,096)    (53,273) (139,365)
                                                                               
Sale of investments                                54,335      55,051   133,674
                                                                               
Net equity dividends paid                        (10,879)     (4,621)  (13,886)
                                                                               
Net cash (outflow)/inflow before                                               
                                                                               
management of liquid resources                                                 
                                                                               
and financing                                     (4,911)       6,200   (5,111)
                                                                               
Financing                                           4,434           -     2,126
                                                                               
(Decrease)/increase in cash in                                                 
                                                                               
the period                                          (477)       6,200   (2,985)
                                                                               
Exchange movements                                      5     (1,128)   (1,064)
                                                                               
Debenture stock non-cash movement                    (28)        (24)      (53)
                                                                               
Movement in net debt in the period                  (500)       5,048   (4,102)
                                                                               
Net debt at beginning of period                 (103,761)    (99,659)  (99,659)
                                                                               
Net debt at end of period                       (104,261)    (94,611) (103,761)
                                                                               
Analysis of changes in net debt:                                               
                                                                               
Brought forward:                                                               
                                                                               
Bank overdraft                                   (73,956)    (69,907)  (69,907)
                                                                               
Debenture 2014                                   (29,805)    (29,752)  (29,752)
                                                                               
Net debt brought forward                        (103,761)    (99,659)  (99,659)
                                                                               
Movements in the period:                                                       
                                                                               
Cash (outflow)/inflow from bank                     (477)       6,200   (2,985)
                                                                               
Exchange movements                                      5     (1,128)   (1,064)
                                                                               
Debenture non-cash movement                          (28)        (24)      (53)
                                                                               
Net debt at end of period                       (104,261)    (94,611) (103,761)

Condensed Reconciliation of movements in Shareholders' funds

                                    Share     Share  Capital   Revenue         
                                                                               
                                  Capital   Premium  Reserve   reserve    total
                                                                               
                                    £'000     £'000    £'000     £'000    £'000
                                                                               
For the six months ended 30                                                    
September 2010                                                                 
                                                                               
At 1 April 2010                    21,005   185,691  269,253    11,778  487,727
                                                                               
Net return from ordinary                -         -   17,094    11,489   28,583
activities                                                                     
                                                                               
Dividends paid - note 7                 -         -        -   (4,621)  (4,621)
                                                                               
Exercise of subscription shares        20       425        -         -      445
                                                                               
At 30 September 2010               21,025   186,116  286,347    18,646  512,134
                                                                               
For the year ended 31 March 2011                                               
                                                                               
At 1 April 2010                    21,005   185,691  269,253    11,778  487,727
                                                                               
Net return from ordinary                -         -   48,552    20,822   69,374
activities                                                                     
                                                                               
Dividends paid - note 7                 -         -        -  (13,886) (13,886)
                                                                               
Ordinary shares issued                 65     1,616        -         -    1,681
                                                                               
Exercise of subscription shares        20       425        -         -      445
                                                                               
At 31 March 2011                   21,090   187,732  317,805    18,714  545,341
                                                                               
For the six months ended 30                                                    
September 2011                                                                 
                                                                               
At 1 April 2011                    21,090   187,732  317,805    18,714  545,341
                                                                               
Net return from ordinary                -         - (24,960)    12,722 (12,238)
activities                                                                     
                                                                               
Dividends paid - note 7                 -         -        -  (10,892) (10,892)
                                                                               
Unclaimed dividends                     -         -        -        13       13
                                                                               
Ordinary shares issued                169     4,197        -         -    4,366
                                                                               
Exercise of subscription shares        49     1,026        -         -    1,075
                                                                               
At 30 September 2011               21,308   192,955  292,845    20,557  527,665

Notes to the Condensed Financial Statements

1. Basis of Preparation

The condensed financial statements of the Company have been prepared using the
same accounting policies as those adopted in the 2011 annual financial report,
which are consistent with applicable United Kingdom Accounting Standards and
with the Statement of Recommended Practice: `Financial Statements of Investment
Trust Companies and Venture Capital Trusts'.

2. Investment Management Fees and Finance Costs

Investment management fees and finance costs are allocated 70% to capital and
30% to revenue. A provision for a performance-related fee is recognised if the
Company's performance exceeds the FTSE All-Share Index and is wholly allocated
to capital. A performance fee of £2,737,000 has been provided for the six
months under review (2010: nil).

3. Other Expenses

Other expenses included one-off costs for the Placing and Offer for B shares of
£100,000 in the six months to 30 September 2010 and the year ended 31 March
2011.

4. Basis of Return per Ordinary Share

                                          Six months Six months to      Year to
                                                  to                           
                                                                               
                                        30 September  30 September     31 March
                                                                               
                                                2011          2010         2011
                                                                               
                                         (Unaudited)   (Unaudited)    (Audited)
                                                                               
                                               £'000         £'000        £'000
                                                                               
Returns after tax:                                                             
                                                                               
Revenue                                       12,722        11,489       20,822
                                                                               
Capital                                     (24,960)        17,094       48,552
                                                                               
Total                                       (12,238)        28,583       69,374
                                                                               
Weighted average number of                                                     
                                                                               
ordinary shares in issue                                                       
                                                                               
during the period:                                                             
                                                                               
-basic                                   211,512,685   210,069,931  210,315,382
                                                                               
-diluted                                 214,197,720   210,279,581  211,498,088

The subscription shares are dilutive for the purposes of return per share when
they would result in the issue of ordinary shares. This occurs when the average
market price of the ordinary shares during the period is greater than the
exercise price of 218.94p. The average market price for the six months ended 30
September 2011 was 258.80p (six months ended 30 September 2010: 221.54p; year
ended 31 March 2011: 234.74p) and thus was dilutive.

5. Basis of Net Asset Value (`NAV') per Ordinary Share

                                                  At            At           At
                                                                               
                                        30 September  30 September     31 March
                                                                               
                                                2011          2010         2011
                                                                               
                                         (Unaudited)   (Unaudited)    (Audited)
                                                                               
                                               £'000         £'000        £'000
                                                                               
Shareholders' funds :                                                          
                                                                               
-basic                                       527,665       512,134      545,341
                                                                               
-diluted                                     564,858       550,402      583,609
                                                                               
Ordinary shares in issue at                                                    
                                                                               
period end:                                                                    
                                                                               
-basic                                   213,085,780   210,254,624  210,900,504
                                                                               
-diluted                                 230,073,402   227,733,449  228,379,329

When the basic NAV is greater than the exercise price of 218.94p, the
subscription shares are dilutive. However, subscription shareholders are not
likely to exercise their option unless the market price is greater than the
exercise price as this would dilute their holding.

6. Share Capital

(a) Ordinary shares of 10p each

                                          Six months Six months to      Year to
                                                  to                           
                                                                               
                                        30 September  30 September     31 March
                                                                               
                                                2011          2010         2011
                                                                               
                                         (Unaudited)   (Unaudited)    (Audited)
                                                                               
Number of ordinary shares:                                                     
                                                                               
Brought forward                          210,900,504   210,051,017  210,051,017
                                                                               
Ordinary shares issued for cash            1,694,073             -      645,880
                                                                               
Subscription shares exercised                491,203       203,607      203,607
                                                                               
Carried forward                          213,085,780   210,254,624  210,900,504

During the period 1,694,073 new ordinary shares were issued for an average
239.02 pence per share.

(b) Subscription Shares

The subscription shares carry the right to subscribe for one ordinary share at
a price of 218.94p on 31 August in each of the years 2010 to 2013. During the
period 491,203 subscription shares were exercised leaving 16,987,622
subscription shares remaining at the period end.

7. Dividends per Ordinary Share

The first interim dividend of 2.4p was paid on 30 September 2011 to
shareholders registered on 9 September 2011. The Directors have declared a
second interim dividend of 2.4p payable on 28 December 2011 to shareholders
registered on 9 December 2011.

                                         Six months to Six months to    Year to
                                                                               
                                          30 September  30 September   31 March
                                                                               
                                                  2011          2010       2011
                                                                               
                                           (Unaudited)   (Unaudited)  (Audited)
                                                                               
Dividends paid (pence):                                                        
                                                                               
First interim 2011                                   -          2.20       2.20
                                                                               
Second interim 2011                                  -             -       2.20
                                                                               
Third interim 2011                                   -             -       2.20
                                                                               
Fourth interim 2011                               2.75             -          -
                                                                               
First interim 2012                                2.40             -          -
                                                                               
Total                                             5.15          2.20       6.60
                                                                               
£'000 equivalent                                10,892         4,621     13,886

8. Investment Trust Status

It is the intention of the Directors to conduct the affairs of the Company so
that it satisfies the conditions for approval as an investment trust company
set out in section 1158 of the Corporation Tax Act 2010.

9. Status of Half-Yearly Financial Report

The financial information contained in this half-yearly report, which has not
been audited or reviewed by the independent auditors, does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
financial information for the half years ended 30 September 2011 and 30
September 2010 has not been audited. The figures and financial information for
the year ended 31 March 2011 are extracted and abrigded from the latest
published accounts and do not constitute the statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies and included
the Report of the Independent Auditors, which was unqualified and did not
include a statement under section 498 of the Companies Act 2006.

By order of the Board

Invesco Asset Management Limited

Company Secretary

18 November 2011­

Directors, Advisers and Principal Service Providers

Directors

William Alexander, Chairman

Sir Martyn Arbib

Vivian Bazalgette

Antony Hardy, Audit Committee Chairman

Robert Yerbury

Manager, Company Secretary and Registered Office

Invesco Asset Management Limited

30 Finsbury Square

London EC2A 1AG

020 7065 4000

Company Secretarial contact: Karina Bryant and Kelly Nice

Company Number

Registered in England and Wales: No. 3156676

Registrars

Capita Registrars

The Registry
34 Beckenham Road

Beckenham

Kent BR3 4TU

If you hold your shares directly rather than through an ISA or Savings Scheme,
and have any queries relating to your shareholding you should contact the
Registrars on: 0871 664 0300. Calls cost 10p per minute plus network extras.
Lines are open from 8.30 a.m. to 5.30 p.m., Monday to Friday (excluding Bank
Holidays).

Shareholders holding shares directly, can also access their holding details via
Capita's website www.capitaregistrars.com or www.capitashareportal.com

Capita Registrars provide on-line and telephone share dealing services to
existing shareholders who are not seeking advice on buying or selling. This
service is available at www.capitadeal.com or 0871 664 0364. Calls cost 10p per
minute plus network extras. (From outside the UK: +44 (0)203 367 2686). Lines
are open from 8.00 a.m. to 4.30 p.m., Monday to Friday (excluding Bank
Holidays).

Invesco Perpetual Investor Services

Invesco Perpetual has an Investor Services Team available to assist you from
8.30 a.m. to 6.30 p.m. every working day on:0800 085 8677.

The Invesco Perpetual investment trust website is:

www.invescoperpetual.co.uk/investmenttrusts­

The contents of websites referred to in this document, or accessible from links
within those websites, are not incorporated into, nor do they form part of,
this document.

Contacts:

Andrew Watkins

Tel - 020 7065 4023

Kelly Nice

Tel - 020 7065 4647

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