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Perpetual Inc&Growth (PLI)

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Monday 22 November, 2004

Perpetual Inc&Growth

Interim Results


               Perpetual Income and Growth Investment Trust plc                

             Preliminary Announcement of Unaudited Interim Results             

                    For the Period Ending 30 September 2004                    

Highlights

  * Interim Dividend increased by 7% to 2.25p (2003:2.10p).
   
  * NAV performance ranks top quartile in sector over 1,3 and 5 years.
   
  * Entered FTSE 250 Index during November.
   
Chairman's Statement

During the period under review the Company's diluted net asset value rose by
3.2 per cent in comparison to a rise of 3.4 per cent in the FTSE All-Share
Index. The share price dropped 1 per cent over the period and the discount
stands at 6.0 per cent at the period end. The Company's NAV performance
currently ranks in the top quartile in its sector over 1, 3 and 5 year periods.

Your Board has declared an interim dividend of 2.25p, which continues the
Boards' policy of sustained real increases in dividend.

On 14 September 2004, 3,423,189 shares were issued on the annual exercise of
warrant holders' rights. As a result the total number of ordinary shares in
issue is now 185,788,766. Warrant holders have until 2006 to exercise their
warrants. There are currently 20,312,985 warrants outstanding.

Since the end of March the FTSE All Share Index has traded in a narrow band
between 2340 and 2460 producing a total return of 5.13%. The market has,
however, been a volatile one in 2004, as each negative month has been followed
by a positive one. The UK market finally found some direction in August with
the FTSE All Share making strong gains throughout August and September rising
3.6% as defensive sectors such as utilities, telecommunications, financials and
healthcare came through.

In the UK economy the housing market appeared to be cooling down following the
Monetary Policy Committee's five increases in interest rates since November
2003. This looks to be having an effect on the consumer, as UK retail sales
declined for the first time in 14 months in July by 0.4%. Growth in consumer
debt, announced in July to have reached £1trillion, is also slowing as there is
evidence that consumers are now showing some reluctance to take-on additional
debt.

It has been your Board's policy to maintain a modest amount of gearing
throughout the period in order to have the flexibility to take advantage of
stock specific opportunities as they arise. As I have commented before, this is
not so much an endorsement of the strength of the UK market as a whole but a
reflection of the potential for individual situations.

Your Board is confident in the underlying strengths of the portfolio. The
Manager's approach of seeking undervalued companies with the ability to pay and
sustain growing dividend should continue to benefit the fund over the medium
term.

Sir Patrick Sheehy
Chairman
22 November 2004

Statement of Total Return                                                      
                                                                               
(Incorporating the Revenue Account)                                            
                                                                               
                                          Six months to 30 September 2004      
                                                                               
                                     (Unaudited)                               
                                                                               
                                           Revenue       Capital          Total
                                                                               
                                             £'000         £'000          £'000
                                                                               
Gains/(losses) on investments -                  -         5,964          5,964
realised                                                                       
                                                                               
Gains/(losses) on investments -                  -         5,038          5,038
unrealised                                                                     
                                                                               
Foreign exchange losses                          -          (91)           (91)
                                                                               
Income                                                                         
                                                                               
  UK dividends                               6,578             -          6,578
                                                                               
  Overseas dividends                           973             -            973
                                                                               
  UK unfranked investment income               185             -            185
                                                                               
  Deposit interest                               -             -              -
                                                                               
  Underwriting commission                       22             -             22
                                                                               
Gross return                                 7,758        10,911         18,669
                                                                               
Investment management fee                    (507)       (1,182)        (1,689)
                                                                               
Other expenses                               (261)             -          (261)
                                                                               
Net return before finance costs and                                            
                                                                               
taxation                                     6,990         9,729         16,719
                                                                               
Interest payable and similar charges         (434)       (1,011)        (1,445)
                                                                               
Return on ordinary activities before                                           
                                                                               
taxation                                     6,556         8,718         15,274
                                                                               
Tax on ordinary activities                   (142)             -          (142)
                                                                               
Return on ordinary activities after                                            
                                                                               
taxation                                     6,414         8,718         15,132
                                                                               
Dividends in respect of equity             (4,180)             -        (4,180)
shares                                                                         
                                                                               
Transfer to/(from) reserves                  2,234         8,718         10,952
                                                                               
Return per ordinary share - note 1                                             
                                                                               
Basic                                         3.5p          4.8p           8.3p
                                                                               
Diluted                                       3.4p          4.6p           8.0p

The revenue column of this statement is the profit and loss account of the     
Company. All revenue and capital items in the above statement derive from      
continuing operations. No operations were acquired or discontinued in the      
period.                                                                        

Statement of Total Return                                                      
                                                                               
(Incorporating the Revenue Account)                                            
                                                                               
                                                                        Year to
                                                                               
                                                                       31 March
                                                                               
                             Six months to 30 September 2004               2004
                                                                               
                                       (Unaudited)                    (Audited)
                                                                               
                             Revenue       Capital        Total           Total
                                                                               
                               £'000         £'000        £'000           £'000
                                                                               
Gains/(losses) on                  -        10,292       10,292          23,429
investments - realised                                                         
                                                                               
Gains/(losses) on                  -        56,572       56,572          86,700
investments - unrealised                                                       
                                                                               
Foreign exchange gains             -         1,010        1,010           3,908
                                                                               
Income                                                                         
                                                                               
  UK dividends                 5,140             -        5,140           9,563
                                                                               
  Overseas dividends             838             -          838           1,699
                                                                               
  UK unfranked investment        492             -          492             857
income                                                                         
                                                                               
  Deposit interest                 -             -            -               1
                                                                               
  Underwriting commission          -             -            -               -
                                                                               
Gross return                   6,470        67,874       74,344         126,157
                                                                               
Investment management fee      (407)         (948)      (1,355)         (5,769)
                                                                               
Other expenses                 (150)             -        (150)           (385)
                                                                               
Net return before finance                                                      
costs and                                                                      
                                                                               
taxation                       5,913        66,926       72,839         120,003
                                                                               
Interest payable and           (248)         (579)        (827)         (1,768)
similar charges                                                                
                                                                               
Return on ordinary                                                             
activities before                                                              
                                                                               
taxation                       5,665        66,347       72,012         118,235
                                                                               
Tax on ordinary activities     (126)             -        (126)           (253)
                                                                               
Return on ordinary                                                             
activities after                                                               
                                                                               
taxation                       5,539        66,347       71,886         117,982
                                                                               
Dividends in respect of      (3,822)             -      (3,822)         (9,566)
equity shares                                                                  
                                                                               
Transfer to/(from)             1,717        66,347       68,064         108,416
reserves                                                                       
                                                                               
Return per ordinary share                                                      
- note 1                                                                       
                                                                               
Basic                           3.1p         36.9p        40.0p           65.2p
                                                                               
Diluted                         3.0p         35.6p        38.6p               -

Balance Sheet                                                                  
                                                                               
                                                At            At             At
                                                                               
                                     30 September       31 March   30 September
                                                                               
                                             2004           2004           2003
                                                                               
                                     (Unaudited)       (Audited)    (Unaudited)
                                                                               
                                            £'000          £'000          £'000
                                                                               
Fixed assets                                                                   
                                                                               
  Investments                              390,118       374,215        319,701
                                                                               
Current assets                                                                 
                                                                               
Amounts due from brokers                       634           905            734
                                                                               
Tax recoverable                                  8            10              8
                                                                               
Prepayments and accrued income               2,370         2,564          2,157
                                                                               
Unrealised profit on forward                                                   
currency                                                                       
                                                                               
transactions                                     -           632            813
                                                                               
Cash at bank                                     -         1,697              -
                                                                               
                                             3,012         5,808          3,712
                                                                               
Creditors: amounts falling due                                                 
within one year                                                                
                                                                               
Amounts due to brokers                     (2,151)         (370)        (3,843)
                                                                               
Bank overdraft and short-term loans       (22,141)      (21,329)        (7,255)
                                                                               
Unrealised loss on forward currency                                            
                                                                               
transactions                                 (371)             -              -
                                                                               
Accruals and deferred income               (1,456)       (4,140)        (1,047)
                                                                               
Proposed dividends                         (4,180)       (5,745)        (3,822)
                                                                               
                                          (30,299)      (31,584)       (15,967)
                                                                               
Net current liabilites                    (27,287)      (25,776)       (12,255)
                                                                               
Total assets less current                  362,831       348,439        307,446
liabilities                                                                    
                                                                               
Creditors: amounts falling due after                                           
more                                                                           
                                                                               
than one year                             (29,633)      (29,616)       (29,596)
                                                                               
Net Assets                                 333,198       318,823        277,850
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                     18,579        18,237         18,198
                                                                               
Share premium account                      159,921       156,840        156,258
                                                                               
Other reserves:                                                                
                                                                               
Capital reserve - realised                 116,970       112,287        100,671
                                                                               
  Capital reserve - unrealised              31,563        27,528        (2,419)
                                                                               
Revenue reserve                              6,165         3,931          5,142
                                                                               
Equity Shareholders' funds                 333,198       318,823        277,850
                                                                               
Net asset value per ordinary share -                                           
note 2                                                                         
                                                                               
Basic                                       179.3p        174.8p         152.7p
                                                                               
Diluted                                     171.5p        166.2p         146.6p

Cash Flow Statement                                                            
                                                                               
                                     Six months to       Year to  Six months to
                                                                               
                                     30 September       31 March   30 September
                                                                               
                                             2004           2004           2003
                                                                               
                                     (Unaudited)       (Audited)    (Unaudited)
                                                                               
                                            £'000          £'000          £'000
                                                                               
Cash inflow from operating                    3,066        8,119          4,625
activities                                                                     
                                                                               
Returns on investments and servicing        (1,314)      (1,674)          (815)
of finance                                                                     
                                                                               
Taxation                                          -         (18)           (18)
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Purchase of investments                   (100,500)    (214,711)      (104,360)
                                                                               
Sale of investments                          97,651      198,080        102,621
                                                                               
Equity dividends paid                       (5,745)      (9,129)        (5,308)
                                                                               
Net cash (outflow)/inflow before                                               
management                                                                     
                                                                               
of liquid resources and financing           (6,842)     (19,333)        (3,255)
                                                                               
Financing                                     3,423        2,692          2,071
                                                                               
(Decrease)/increase in cash                 (3,419)     (16,641)        (1,184)
                                                                               
Net debt at beginning of the period        (49,248)     (35,970)       (35,970)
                                                                               
Exchange movements                              912        3,401            322
                                                                               
Debenture stock non-cash movement              (19)         (38)           (19)
                                                                               
Net debt at end of period                  (51,774)     (49,248)       (36,851)
                                                                               
Reconciliation of Movement in                                                  
Shareholders' Funds                                                            
                                                                               
                                     Six months to       Year to  Six months to
                                                                               
                                     30 September       31 March   30 September
                                                                               
                                             2004           2004           2003
                                                                               
                                     (Unaudited)       (Audited)    (Unaudited)
                                                                               
                                            £'000          £'000          £'000
                                                                               
Revenue return for the period                 2,234          506          1,717
                                                                               
Capital return for the period                 8,718      107,910         66,347
                                                                               
Issue of ordinary share capital               3,423        2,692          2,071
                                                                               
Net movement in Shareholders' funds          14,375      111,108         70,135
                                                                               
Opening Shareholders' funds                 318,823      207,715        207,715
                                                                               
Closing Shareholders' funds                 333,198      318,823        277,850

Notes to the Interim Accounts

1. The revenue return per ordinary share is based on the net revenue return on
ordinary activities after taxation and on 182,610,091 (30 September 2003:
179,920,795, 31 March 2004: 181,049,475) ordinary shares, being the weighted
average number of ordinary shares in issue in the period.

The capital return per ordinary share is based on the net capital return on
ordinary activities after taxation and on 182,610,091 (30 September 2003:
179,920,795, 31 March 2004: 181,049,475) ordinary shares being the weighted
average number of ordinary shares in issue in the period.

2. The basic net asset value per ordinary share is calculated on net assets of
£333,198,000 (30 September 2003: £277,850,000, 31 March 2004: £318,823,000) and
on 185,788,766 (30 September 2003: 181,980,202, 31 March 2004: 182,365,577)
shares in issue.

3. During the period 3,423,189 warrants were exercised for 3,423,189 ordinary
shares of 10p each at 100p per share. There are 20,312,985 warrants in issue at
the period end.

4. The Directors have declared an interim dividend of 2.25p (2003: 2.10p) per
ordinary share in respect of the six months ending 30 September 2004 payable on
30 December 2004 to ordinary shareholders registered on 3 December 2004.

5. 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 842 of the Income and Corporation Taxes Act 1988.

6. The foregoing information at 31 March 2004 is an abridged version of the
Company's full Accounts which carry an unqualified Auditor's report and have
been filed with the Registrar of Companies.

By order of the Board

INVESCO Asset Management Limited

Secretary

22 November 2004


                                                                                                                          

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