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Perpetual Inc&Growth (PLI)

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Tuesday 14 November, 2006

Perpetual Inc&Growth

Interim Results


               Perpetual Income and Growth Investment Trust plc                

             Preliminary Announcement of Unaudited Interim Results             

                    For the Period Ending 30 September 2006                     

Review of the Period

During the period under review your Company's diluted net asset value (`NAV')
rose by 2.7% in comparison to a rise of 0.1% in the FTSE All-Share Index. The
mid-market share price increased by 1.7% over the period.

Outlook

As we head into 2007, our Manager believes that there are grounds for optimism
when assessing the prospects for UK equities. However, to reflect his concerns
about the pace of UK economic growth, he continues to position the portfolio
defensively, which should ensure that your Company is well placed in the coming
months.

Dividend

The Board has declared an increased interim dividend of 2.75p (2005: 2.4p),
representing an increase of 14.6% from last year's interim dividend. This
dividend is payable on 29 December 2006 to shareholders registered at the close
of business on 8 December 2006. This increase in the dividend continues the
Board's policy of sustained real increases in dividend.

Final Warrant Exercise

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

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

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

Subscription Share Exercise

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

Issued Share Capital

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

Gearing

Actual gearing of the Company was 19% at the period end. The Board's policy is
to allow gearing to the level of 25% for investment in companies where there
are stock specific opportunities. Therefore, gearing is not an expression of
confidence in the performance of the overall UK stockmarket but rather an
endorsement of the potential for selected stocks.

Sir Patrick Sheehy
Chairman
14 November 2006

Income Statement

                                                  Six months to              
                                                   30 September              
                                                           2006              
                                                    (Unaudited)              
                                                                             
                                       Revenue          Capital         Total
                                         £'000            £'000         £'000
                                                                             
Gains on investments                         -           15,647        15,647
                                                                             
Foreign exchange gains                       -            3,432         3,432
                                                                             
Income                                                                       
                                                                             
  UK dividends                           9,181                -         9,181
                                                                             
  Overseas dividends                     1,102                -         1,102
                                                                             
Gross return                            10,283           19,079        29,362
                                                                             
Investment management fee -              (810)          (3,409)       (4,219)
note 3                                                                       
                                                                             
Other expenses                           (215)                -         (215)
                                                                             
Net return before finance costs                                              
and                                                                          
                                                                             
  taxation                               9,258           15,670        24,928
                                                                             
Finance costs - note 3                   (827)          (1,929)       (2,756)
                                                                             
Return on ordinary activities                                                
before                                                                       
                                                                             
  taxation                               8,431           13,741        22,172
                                                                             
Tax on ordinary activities               (163)                -         (163)
                                                                             
Return on ordinary activities                                                
after                                                                        
                                                                             
  taxation                               8,268           13,741        22,009
                                                                             
Transfer to reserves                     8,268           13,741        22,009
                                                                             
Return per ordinary share -                                                  
note 5                                                                       
                                                                             
Basic                                     4.3p             7.1p         11.4p
                                                                             
Diluted                                   3.7p                -             -

The total column of this statement represents the Company's profit and loss
account, prepared in accordance with UK Accounting Standards. The supplementary
revenue and capital columns are both prepared under guidance published by the
Association of Investment Companies. All items in the above statement derive
from continuing operations and the Company has no other gains or losses
therefore no statement of total recognised gains or losses is presented. No
operations were acquired or discontinued in the period.

Income Statement

                                         Six months to                 Year to
                                     30 September 2005                31 March
                                                                          2006
                                           (Unaudited)                (Audited)
                                                                               
                            Revenue            Capital        Total       Total
                              £'000              £'000        £'000       £'000
                                                                               
Gains on investments              -             53,332       53,332     123,526
                                                                               
Foreign exchange                  -            (2,315)      (2,315)     (3,078)
losses                                                                         
                                                                               
Income                                                                         
                                                                               
  UK dividends                7,103                  -        7,103      13,847
                                                                               
  Overseas dividends            996                  -          996       2,178
                                                                               
Gross return                  8,099             51,017       59,116     136,473
                                                                               
Investment management         (655)            (2,017)      (2,672)     (8,223)
fee - note 3                                                                   
                                                                               
Other expenses                (232)                  -        (232)       (512)
                                                                               
Net return before             7,212             49,000       56,212     127,738
finance costs and                                                              
taxation                                                                       
                                                                               
Finance costs - note          (594)            (1,386)      (1,980)     (4,198)
3                                                                              
                                                                               
Return on ordinary            6,618             47,614       54,232     123,540
activities before                                                              
taxation                                                                       
                                                                               
Tax on ordinary               (149)                  -        (149)       (327)
activities                                                                     
                                                                               
Return on ordinary            6,469             47,614       54,083     123,213
activities after                                                               
taxation                                                                       
                                                                               
Transfer to reserves          6,469             47,614       54,083     123,213
                                                                               
Return per ordinary                                                            
share - note 5                                                                 
                                                                               
Basic                          3.4p              25.3p        28.7p       64.7p
                                                                               
Diluted                        2.9p                  -            -       55.3p

Reconciliation of Movements in Shareholders' Funds

                                             Capital    Capital                 
                             Share    Share  Reserve    Reserve Retained   Total
                           Capital  Premium Realised Unrealised Earnings  Equity
                             £'000    £'000    £'000      £'000    £'000   £'000
                                                                                
For the six months ended                                                        
30 September 2005                                                               
(Unaudited)                                                                     
                                                                                
Shareholders' funds at                                                          
                                                                                
1 April 2005                18,579  159,921  132,141     65,562   10,946 387,149
                                                                                
Return for the year from                                                        
ordinary activities              -        -   10,510     37,104    6,469  54,083
                                                                                
Second interim dividend          -        -        -          -  (6,317) (6,317)
for 2005                                                                        
                                                                                
Warrants exercised             669    6,024        -          -        -   6,693
                                                                                
At 30 September 2005        19,248  165,945  142,651    102,666   11,098 441,608
                                                                                
For the year ended 31                                                           
March 2006                                                                      
(Audited)                                                                       
                                                                                
Shareholders' funds at                                                          
                                                                                
1 April 2005                18,579  159,921  132,141     65,562   10,946 387,149
                                                                                
Return for the year from                                                        
ordinary activities              -        -   29,639     81,057   12,517 123,213
                                                                                
Second interim dividend          -        -        -          -  (6,317) (6,317)
for 2005                                                                        
                                                                                
Interim dividend for 2006        -        -        -          -  (4,619) (4,619)
                                                                                
Warrants exercised             669    6,024        -          -        -   6,693
                                                                                
At 31 March 2006            19,248  165,945  161,780    146,619   12,527 506,119
                                                                                
For the six months ended                                                        
30 September 2006                                                               
(Audited)                                                                       
                                                                                
Shareholders' funds at                                                          
                                                                                
1 April 2006                19,248  165,945  161,780    146,619   12,527 506,119
                                                                                
Return for the year from                                                        
ordinary activities              -        -   26,576   (12,835)    8,268  22,009
                                                                                
Second interim dividend          -        -        -          -  (6,929) (6.929)
for 2006                                                                        
                                                                                
Warrants exercised           1,362   12,258        -          -        -  13,620
                                                                                
Subscription shares             76    1,586        -          -        -   1,662
exercised                                                                       
                                                                                
At 30 September 2006        20,686  179,789  188,356    133,784   13,866 536,481


Balance Sheet

                                            At              At             At 
                                  30 September        31 March   30 September
                                          2006            2006           2005
                                   (unaudited)       (audited)    (Unaudited)
                                         £'000           £'000          £'000
                                                                             
Fixed assets                                                                 
                                                                             
Investments held at fair value                                               
through                                                                      
                                                                             
  profit or loss                       645,025         601,254        510,649
                                                                             
Current assets                                                               
                                                                             
Amounts due from brokers                 6,109           3,393              -
                                                                             
Tax recoverable                              9               7              8
                                                                             
Prepayments and accrued income           2,041           2,742          1,633
                                                                             
Unrealised profit on forward                                                 
currency                                                                     
                                                                             
  transactions                               -               -            124
                                                                             
                                         8,159           6,142          1,765
                                                                             
Creditors: amounts falling due                                               
within                                                                       
                                                                             
  one year                                                                   
                                                                             
Amounts due to brokers                 (9,369)           3,400        (1,343)
                                                                             
Bank overdraft and short-term         (73,057)        (61,679)       (37,564)
loans                                                                        
                                                                             
Accruals and deferred income           (2,168)         (5,589)        (1,797)
                                                                             
Unrealised loss on forward                                                   
currency                                                                     
                                                                             
  transactions                           (943)           (982)              -
                                                                             
                                      (85,537)        (71,650)       (40,704)
                                                                             
Net current liabilities               (77,378)        (65,508)       (38,939)
                                                                             
Total assets less current              567,647         535,746        471,710
liabilities                                                                  
                                                                             
Creditors: amounts falling due        (29,646)        (29,627)       (29,612)
after more than one year                                                     
                                                                             
Provisions                                                                   
                                                                             
Performance fee - note 3               (1,520)               -          (490)
                                                                             
Net assets                             536,481         506,119        441,608
                                                                             
Capital and reserves                                                         
                                                                             
Called up share capital                 20,686          19,248         19,248
                                                                             
Share premium account                  179,789         165,945        165,945
                                                                             
Other reserves:                                                              
                                                                             
Capital reserve - realised             188,356         161,780        142,651
                                                                             
Capital reserve - unrealised           133,784         146,619        102,666
                                                                             
Revenue reserve                         13,866          12,527         11,098
                                                                             
Shareholders' funds                    536,481         506,119        441,608
                                                                             
Net asset value per ordinary                                                 
share - note 5                                                               
                                                                             
Basic                                   259.3p          262.9p         229.4p
                                                                             
Diluted                                 256.1p          249.4p         220.8p


Cash Flow Statement

                                 Six months to        Year to   Six months to
                                  30 September       31 March    30 September
                                          2006           2006            2005
                                    (unaudited)      (audited)     (unaudited)
                                         £'000          £'000           £'000
                                                                             
Cash inflow from operating               4,444          7,131           3,114
activities                                                                   
                                                                             
Servicing of finance                   (2,694)        (4,023)         (1,916)
                                                                             
Taxation                                   (1)              -               -
                                                                             
Capital expenditure and                                                      
financial investment                                                         
                                                                             
Purchase of investments              (136,179)      (215,185)        (92,890)
                                                                             
Sale of investments                    111,306        189,724          89,177
                                                                             
Equity dividends paid                  (6,929)       (10,936)         (6,317)
                                                                             
Net cash outflow before                                                      
management                                                                   
                                                                             
  of liquid resources and             (30,053)       (33,289)         (8,832)
financing                                                                    
                                                                             
Financing                                                                    
                                                                             
Exercise of warrants                    13,620          6,693           6,693
                                                                             
Exercise of subscription shares          1,662              -               -
                                                                             
Decrease in cash                      (14,771)       (26,596)         (2,139)
                                                                             
Net debt at beginning of the          (91,306)       (62,811)        (62,811)
period                                                                       
                                                                             
Exchange movements                       3,393        (1,865)         (2,208)
                                                                             
Debenture stock non-cash                  (19)           (34)            (77)
movement                                                                     
                                                                             
Net debt at end of period            (102,703)       (91,306)        (67,235)

Notes

1. The accounts of the Company are prepared in accordance with applicable UK
Accounting Standards and with the Statement of Recommended Practice: "Financial
Statements of Investment Trust Companies" issued by the Association of
Investment Companies in December 2005.

The financial information for the period to 30 September 2006 has been prepared
on the basis consistent with the accounting policies adopted by the Company in
its statutory accounts for the year ended 31 March 2006.

2. Dividend

The Directors have declared an interim dividend of 2.75p (2005: 2.40p) per
ordinary share in respect of the six months ending 30 September 2006 payable on
29 December 2006 to shareholders registered on 8 December 2006.

3. Management Fees and Finance Costs

Investment management fees and interest payable on borrowings are allocated 70%
to capital and 30% to revenue. A provision for a performance fee of £1,520,000
(31 March 2006: £3,522,000 accruals; 30 September 2005: £490,000) is allocated
wholly to capital.

4. Warrants and Subscription Shares

The warrants were convertible on a one-for-one basis into 10p ordinary shares
at a price of 100p. They were all exercised during the period. 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 2006 and 2013. 758,886 were exercised
during the period. 18,136,367 subscription shares remain at the period end.

5. Basis of Return and Net Asset Value per Ordinary Share

                                  30 September     31 March 30 September
                                          2006         2006         2005
                                                                        
Shareholders' fund (£'000)             536,481      506,119      441,608
                                                                        
Revenue return on ordinary                                              
activities                                                              
                                                                        
  after tax (£'000)                      8,268       12,517        6,469
                                                                        
Capital return on ordinary              13,741      110,696       47,614
activities (£'000)                                                      
                                                                        
Number of subscription shares at    18,136,367   18,895,253   18,895,253
period end                                                              
                                                                        
Number of warrants at the period             -   13,620,201   13,620,201
end                                                                     
                                                                        
Number of shares in issue at the                                        
period end                                                              
                                                                        
  used to calculate net asset                                           
value per share                                                         
                                                                        
  - basic                          206,860,637  192,481,550  192,481,550
                                                                        
  - diluted                        224,997,004  224,997,004  224,997,004
                                                                        
Weighted average number of shares                                       
in issue                                                                
                                                                        
  during the period used to                                             
calculate returns                                                       
                                                                        
  - basic                          193,895,886  190,377,085  188,297,825
                                                                        
  - diluted                        224,997,004  222,874,524  220,763,641

6. 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.

7. The foregoing information at 31 March 2006 is an abridged version of the
Company's full Accounts which carry an unqualified Auditor's report and did not
contain statements under s237(2) and (3) of the Companies Act 1985 and have
been filed with the Registrar of Companies.

By order of the Board
INVESCO Asset Management Limited
Company Secretary
14 November 2006




                                                                                                                                                                                                                                                               

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