REG-BlackRock Income and Growth Investment Trust Plc: Final Results
28/01/2026 07:02
BlackRock Income and Growth Investment Trust plc
LEI: 5493003YBY59H9EJLJ16
Annual Report and Financial Statements 31 October 2025
Performance record
As at As at
31 October 31 October
2025 2024
Net assets (£’000) 1 46,715 43,760
Net asset value per ordinary share (pence) 245.97 222.22
Ordinary share price (pence) 219.00 193.50
Discount to net asset value 2 11.0% 12.9%
FTSE All-Share Index 3 11986.71 9785.37
========= =========
For the year For the year
ended ended
31 October 31 October
2025 2024
Performance (with dividends reinvested)
Net asset value per share 2 14.3% 18.1%
Ordinary share price 2 17.3% 13.2%
FTSE All-Share Index 3 22.5% 16.3%
========= =========
For the period For the period
since since
1 April 2012 4 to 1 April 2012 4 to
31 October 31 October
2025 2024
Performance since 1 April 2012 4 (with dividends reinvested)
Net asset value per share 2 171.5% 137.6%
Ordinary share price 2 170.2% 130.3%
FTSE All-Share Index 3 184.6% 132.3%
========= =========
For the year For the year Change
ended ended %
31 October 31 October
2025 2024
Revenue
Net profit after taxation (£’000) 1,400 1,454 -3.7
Revenue earnings per ordinary share (pence) 5 7.23 7.20 +0.4
--------------- --------------- ---------------
Dividends (pence)
Interim 2.70 2.70 –
Final 5.00 4.90 +2.0
--------------- --------------- ---------------
Total dividends payable/paid 7.70 7.60 +1.3
========= ========= =========
1 The change in net assets reflects net revenue and
capital profits, the purchase of the Company’s own shares and dividends paid
during the year.
2 Alternative Performance Measures, see Glossary in the
Company’s Annual Report for the year ended 31 October 2025.
3 Benchmark Index.
4 Since BlackRock’s appointment as Investment Manager
on 1 April 2012.
5 Further details are given in the Glossary in the
Company’s Annual Report for the year ended 31 October 2025.
Chairman’s statement
Dear Shareholder
Overview
2025 was one of the most tumultuous years in recent memory. The
first half of the year was shaped by significant volatility across global
markets. Ongoing and fluctuating levels of geopolitical tensions, including
conflicts in Eastern Europe and the Middle East, remained a key source of
market uncertainty. Inflationary pressure, while easing, continued to
influence central bank policy, with interest rate paths diverging between the
US and Europe. Global trade negotiations and the implementation, and
subsequent pausing, of tariffs only added to the uncertainty. This was too
much for many investors who reduced equity exposure and sought safe haven
assets such as Gilts and gold. Despite this, equity markets on average
performed strongly (albeit that strength was very concentrated) during the
period under review, with the FTSE 100 reaching record highs, aided by strong
earnings, low valuations, M&A activity and a weaker US dollar.
Given the volatility experienced, our portfolio managers approached this
challenging backdrop with caution. However, as you will read in their report
which follows, they have also sought to adjust the portfolio in response to
the changing landscape. They increased portfolio exposure to Aerospace &
Defence, a previous underweight, and repositioned some of the portfolio’s
domestic exposure as the types of company expected to perform well in this
environment changed. Their approach meant that this year the portfolio
delivered a double-digit absolute return for shareholders, but one which
underperformed our benchmark index during the financial year. We are all very
conscious of that underperformance and you will see from the Manager Report
where they see it coming from and why they believe it is unlikely to continue
into the future.
Performance
During the year the Company’s Net Asset Value (NAV) per share
returned 14.3%. By comparison, the Company’s Benchmark Index, the FTSE
All-Share Index, returned 22.5%. At the share price level, the Company
returned 17.3% over the period as our discount narrowed from 12.9% at the
start of the year to 11.0% as at 31 October 2025 (all percentages in Sterling
terms with dividends reinvested).
As at 23 January 2026, since the year end the Company’s NAV and share price
have increased by 4.8% and 4.6%, respectively (all percentages are in Pound
Sterling with dividends reinvested) and the Company’s discount was 11.2%.
Further details of the key contributors and detractors from performance, and
the portfolio managers’ views on the outlook for the forthcoming year, can
be found in their report which follows.
Revenue earnings and dividends
Despite the market’s volatility the Company’s earnings remain
resilient, with revenue earnings per share for the year ended 31 October 2025
of 7.23 pence compared with 7.20 pence for the previous year. The Directors
are mindful of shareholders’ desire for income in addition to capital growth
and know that the Company’s dividend is greatly valued by shareholders. The
Board is therefore proposing a final dividend per share of 5.00 pence (2024:
4.90 pence). Subject to approval at the Annual General Meeting, the final
dividend will be paid on 20 March 2026 to shareholders on the Company’s
register at the close of business on 13 February 2026 (ex-dividend date is 12
February 2026). This final dividend, combined with an interim dividend of 2.70
pence per share (2024: 2.70 pence) paid to shareholders on 2 September 2025,
gives a total dividend for the year of 7.70 pence, an increase of 1.3%
year-on-year and resulting in a yield of 3.5% based on a share price of 219.00
pence as at 31 October 2025.
One of the reasons the Company is in a position to increase dividends in this
way is that the Company’s investment trust structure allows it to retain up
to 15% of total revenue each year to build up reserves which may be carried
forward and used to pay dividends during leaner times. As at 31 October 2025
the Company held £1,990,000 in revenue reserve, equivalent to 10.48 pence per
share before the payment of final dividend of 5.00 pence for the year ended 31
October 2025.
Share price discount and Buybacks
The Directors recognise that the discount to NAV at which the
Company’s shares trade is an important factor to investors and have
therefore sought to use the Company’s share buy back powers to seek to
mitigate increases in the discount between the share price and the underlying
NAV.
In using these powers during the year, a total of 700,818 ordinary shares were
purchased at an average price of 202.62 pence per share, for a total
consideration (including costs) of £1,420,000 and at an average discount of
14.2%. All ordinary shares bought back were cancelled. The average discount
for the year to 31 October 2025 was 11.9% and the discount at the year end was
11.0%. To put this in context, the average discount for the investment company
sector as a whole widened substantially this year and exceeded 13.1% as at 31
October 2025.
The Board’s existing authority to buy back up to 14.99% of the Company’s
issued share capital (excluding treasury shares) will expire at the conclusion
of the 2026 Annual General Meeting and a resolution will be put to
shareholders to renew the authority at that meeting. Currently, ordinary
shares representing up to 33% of the Company’s issued ordinary share capital
can be allotted as new ordinary shares or sold from treasury and the Board
will also seek to renew this power.
Gearing
One of the advantages of the investment trust structure is that the
Company can use gearing with the objective of increasing portfolio returns.
The Company operates a flexible gearing policy which depends on prevailing
market conditions and is subject to a maximum level of 20% of net assets at
the time of investment. Net gearing during the financial year did not exceed
that level. As at 31 October 2025, net gearing stood at 6.1%
and at 23 January 2026 stood at 3.5%. At the year end, the Company had a
borrowing facility in place of up to £8 million, provided by The Bank of New
York Mellon (International) Limited. As at the date of this report it is drawn
down by £6 million.
Board composition
At the date of this report the Board consists of four independent
Non-executive Directors, two of whom have recently joined the Board as part of
its ongoing succession planning. Following a search to identify a new
Non-executive Director during the year, the Board was pleased to announce the
appointment of Marcus Hine. Marcus is chair of the Company’s audit committee
and brings valuable professional and asset management expertise. Marcus will
stand for election for the first time by shareholders at the forthcoming AGM.
His full biography can be found in the Company’s Annual
Report for the year ended 31 October 2025.
In accordance with best practice and good corporate governance, the Directors
continue to submit themselves for annual re-election. Further information on
the Board’s policy on board diversity, director tenure and succession
planning can be found in the Directors’ Report in the Company’s Annual
Report for the year ended 31 October 2025. As a small
Board, all of whose members are considered independent of the Manager, the
major Board committees including the Audit Committee comprise all four of the
directors.
Corporate governance
The UK Code of Corporate Governance (the UK Code) requires enhanced
disclosure setting out how the Board as Directors, have fulfilled our duties
in taking into account the wider interests of stakeholders in promoting the
success of the Company. The Board takes its governance responsibilities very
seriously and follows the provisions of the UK Code as closely as possible.
As an investment company, the Company reports against the Association of
Investment Companies Code of Corporate Governance which has been endorsed by
the Financial Reporting Council as being appropriate for investment companies
and fulfils the requirements of the UK Corporate Governance Code, as they are
applicable to investment companies.
As it does each year, and as required by the Corporate Governance Code, the
Company undertook a comprehensive Board evaluation this year. The overall
conclusion highlighted the effectiveness of the Board, and the skills,
expertise and commitment of the Directors.
Annual general meeting
This year’s AGM will be held on Tuesday, 17 March 2026 at 12.00
noon at the offices of BlackRock at 12 Throgmorton Avenue, London, EC2N 2DL.
Details of the business of the meeting are set out in the Notice of Annual
General Meeting in the Company’s Annual Report for the year ended 31 October
2025.
We hope you can attend this year’s AGM. The Board very much looks forward to
meeting shareholders and answering any questions you may have on the day. We
also value hearing shareholders’ thoughts and feedback on the Company on a
more informal basis following the AGM. If you hold your shares through a
platform or nominee, you will need to contact them and ask them to appoint you
as a representative in respect of your shares in order to attend, speak and
vote at the AGM.
For those shareholders who are unable to attend the meeting in person, but who
wish to follow the AGM proceedings, you can do so via a live webinar. Details
on how to register, together with access instructions will be available
shortly on the Company’s website at: www.blackrock.com/uk/brig or by
contacting the Company Secretary at cosec@blackrock.com. It is not possible to
attend, speak or vote via this medium which is solely intended to provide
shareholders with the ability to watch the proceedings, which we hope
shareholders will find helpful if required.
Additionally, if you are unable to attend you can still exercise your right to
vote by proxy or appoint a representative to attend in your place. Details of
how to do this are included on the AGM Proxy Card provided to shareholders
with the annual report.
Communication with shareholders
We appreciate how important access to regular information is to our
shareholders. To supplement our Company website, we offer shareholders the
ability to sign up to the Trust Matters newsletter which includes information
on the Company and other news, views and insights. Further information on how
to sign up is included on the inside front cover of the Company’s Annual
Report for the year ended 31 October 2025.
Outlook
Our portfolio managers anticipate further volatility in 2026 and
recent events regarding Venezuela and Greenland certainly support that
expectation. They do however believe that risk appetite
may return in a more benign environment of easing monetary policy and falling
inflation. Notwithstanding party political turmoil and generalised gloominess,
the UK consumer is in fact in good economic health, with savings rates high
and growth in real wages. This more supportive backdrop should provide more
fertile ground and encourage investment. The Bank of England’s 25-basis
point interest rate cut in December was welcome news and falling inflation
could pave the way for further cuts in 2026, reducing both the UK’s fiscal
burden and the cost of capital. A more supportive monetary policy may also
provide UK business and industry with the confidence to invest for growth. The
outlook in Europe also looks more positive with the ECB having reduced
interest rates and a tailwind of significant fiscal expansion in Germany. In
the US, equities are at near historical highs, with index performance
predominantly driven by the A.I. tech rally. By contrast, UK equities are
trading at low relative valuations but with, importantly, strong earnings.
This provides opportunity for investors seeking both capital growth and
diversification from any potential US equity market correction.
The Board has been reassured to see our portfolio managers enter 2026 with
renewed optimism about the breadth of opportunity on offer in the UK equity
market. Your Board remains fully supportive of their investment philosophy and
place our confidence in their ability to continue to deliver on the
Company’s investment objective.
GRAEME PROUDFOOT
Chairman
27 January 2026
Investment Manager’s report
Performance
For the year ended 31 October 2025, the Company’s NAV returned a
strong 14.3%, representing a solid positive outcome for shareholders, although
this underperformed its benchmark, the FTSE All-Share Index (the Benchmark
Index), which returned 22.5% over the same period (all percentages are in
Sterling with dividends reinvested). The year was characterised by a
challenging and unusually concentrated market environment, which created a
demanding backdrop for active management and weighed on relative performance.
This outcome is front of mind for us and provides important context for the
discussion of portfolio positioning and performance that follows.
Market review
Over the twelve months to 31 October 2025, global equity markets
navigated a challenging mix of fiscal shifts, trade tensions and evolving
monetary policy. The period opened with the UK’s 2024 October Budget, which
delivered fiscal loosening funded by employer tax hikes. This
drove gilt yields sharply higher, weighing on domestically exposed sectors
such as housebuilders and mid-caps for the rest of the period, while banks
benefited from expectations that interest rates would remain elevated.
Early 2025 brought significant shifts in market leadership by geography,
sector and style; US equities retreated while UK and European markets
advanced, the value factor outperformed growth and quality as economic and
political uncertainty spurred a rally in defensive shares and widespread
investor de-risking, as market participants reduced overall exposure in
response to heightened volatility.
Through spring, President Trump’s “Liberation Day” tariff announcements
triggered the largest spike in 30-year US Treasury yields since 2020, sparking
a global sell-off. However, markets rebounded quickly as inflation eased and
economic data proved resilient, with AI-driven optimism restoring tech
leadership. Mega-cap names like Nvidia and Microsoft hit historic valuation
milestones, even as cyclical rotations briefly disrupted momentum. European
equities lagged global peers but held firm on fiscal support and defence
spending, while global benchmarks posted broad gains through summer. In the
UK, the Chancellor’s Spring Statement reaffirmed a commitment to maintaining
fiscal headroom, which had been questioned earlier in the quarter when gilt
yields rose in January.
Mid-year delivered one of the strongest rallies in recent memory, supported by
trade negotiations and multiple bilateral deals that reinforced risk-on
sentiment. September defied its historical reputation as the weakest month,
delivering the best gains in fifteen years after the Federal Reserve’s first
rate cut since 2024 and continued enthusiasm for AI. October extended this
momentum but introduced fresh volatility as tariff rhetoric resurfaced and UK
fiscal concerns dominated headlines. Chancellor Rachel Reeves signalled higher
taxes and spending restraint to rebuild fiscal headroom in the upcoming Autumn
Budget, alongside plans to accelerate investment through planning reforms.
For the period, global equities delivered solid gains as the FTSE All-Share
Index returned +22.5% whilst the S&P 500 returned +21.5% and the Stoxx 600
returned +11.9%, underscoring resilience amid policy uncertainty and
geopolitical shocks. Index returns were highly concentrated, with a small
number of stocks contributing a disproportionate share of benchmark
performance.
Contributors to and detractors from performance
Against this backdrop, the portfolio delivered a solid positive
absolute return over the period, although it underperformed its benchmark in a
highly concentrated market where a small number of stocks dominated index
returns. The narrowness of the UK FTSE All-Share Index, with 10 names
contributing more than 60% of the return on a year-to-date basis was a general
headwind with the Trust being underweight or not owning a number of these
names. Notably, the underweight to the Aerospace and Defence sector,
particularly Rolls-Royce Holdings (Rolls-Royce) was a primary driver of the
underperformance. Elsewhere, detractors included Tate & Lyle and WH Smith,
impacted by stock-specific challenges, Segro, weighed down by subdued UK
growth and political risk, and RELX, pressured by investor concerns over
potential AI disruption.
We noted in the interim report that the underweight positioning in the
Aerospace and Defence sector was a significant detractor from relative
performance. This reflected major upgrades at Rolls-Royce
and supported by increased investor interest following
announcements around European defence spending. We discuss this change further
in our transactions section.
A significant detractor from performance was Tate & Lyle
, where the combination of tariff announcements, weakening
US consumer confidence and a stagnant innovation pipeline amongst their
customers led to unexpected profit weakness. Confronted with a challenging
geopolitical backdrop, not dissimilar to COVID-19, their customers have slowed
innovation which has exacerbated an already weak volume backdrop. Whilst we
had previously reduced the position, we have retained it as we continue to
believe the move towards a higher growth speciality business is the correct
one, and will result in significant capital appreciation over time, but
recognise the journey is non-linear.
Another significant detractor was WH Smith
, which sold off following the announcement that the company has
identified a significant ‘overstatement’ of the profitability of its North
American division. This was entirely unexpected and caused the shares to fall
c.40% on the day. This was a material breach of the
investment thesis and we have subsequently sold the position.
RELX has enjoyed a significant acceleration in revenue
growth over the past three years, benefitting from the launch of new AI
capabilities, most notably in its legal division. However, the shares have
recently derated sharply amid concerns that the company will, at some point,
be disrupted by artificial intelligence (AI), a narrative that is very
difficult to categorically disprove and that has impacted the wider
information services and software names. We view AI as a source of both
opportunity and threat and have focused our exposure to the theme in those
companies that will benefit from the AI revolution. We strongly believe that
AI will continue to be additive to RELX’s growth and as such, continue to
have conviction in the position.
In Real Estate, Segro shares have
underperformed over the year. Whilst rental growth has continued to be strong,
the development pipeline has slowed due to lower business confidence,
primarily as a result of the UK political landscape. Stubbornly high gilt
yields have posed a headwind to the risk premium for real estate assets in the
UK and indeed, raised inflation expectations have meant higher-for-longer
interest rates that have kept financing costs elevated. We discuss our
approach further in transactions below.
Despite negative relative portfolio performance, the portfolio delivered a
positive return where there were some bright spots. The portfolio benefitted
from its holding in Standard Chartered
which carried on its strong 2024 performance into 2025. The bank’s
performance has been very strong, a combination of the bank’s ongoing
transformation and a supportive rate backdrop enabling impressive earnings
growth and cash distributions. The bank’s growing wealth channel remains a
standout and most recent guidance has been upgraded for revenue growth to the
top end of the previously guided 5-7% range.
3i Group was one of the strongest contributors to
portfolio returns over the 12 months to the end of October, supported by
ongoing operational strength at its core asset, Action. Action has continued
to deliver solid growth through store rollouts and robust underlying trading,
although recent softness in like-for-like sales, particularly in France, has
impacted the shares since the period end.
Lloyds Banking Group (Lloyds) had a good year with the
shares rising almost 80% through the year as the potential for sizable cash
returns has become more visible. Resolution of the motor commission
investigation appears relatively benign while Lloyds continues to benefit from
higher rates over the last two to three years feeding through to its
profitability, which is still impacted by the low rate environment of
2020-2022. We had significantly increased the weighting in Lloyds towards the
end of 2024 and early in 2025, benefitting the portfolio. Underweight
positions, most notably in Diageo and
Glencore , which the portfolio has
zero exposure to, also contributed to performance as these shares
underperformed.
Weir Group was another positive contributor to performance
over the period, supported by the upbeat backdrop for mining activity,
especially for copper and gold mining. The company’s innovation, strong
aftermarket performance and recent mining software acquisitions are key
drivers to the group’s growth potential.
Transactions
During the period, we purchased BAE Systems
, Melrose Industries
and Rolls Royce . The redrafting of
global alliances has prompted a significant rethink by European countries of
their plans for defence spending. President Trump’s rhetoric has driven
significant shifts within NATO and prompted a fundamental change in Europe’s
fiscal approach, led by Germany’s commitment to spend “whatever it
takes” to underpin the region’s security and independence. We believe this
will result in a material change in the medium, and long-term growth potential
of these businesses.
Later in the period, we also started a position in
Babcock , which appears well placed to deliver further
upgrades driven by international marine orders, growth in its nuclear division
and exposure to NATO’s rearmament and training initiatives.
As we discussed in the performance section, we managed our portfolio exposure
to the perception of AI disintermediation which remains a potential headwind.
As part of this overall view, we sold the position in
Pearson . The shares have performed strongly since entering
the portfolio in 2021, primarily as execution across the business improved and
early signs of investment began to pay dividends. Our thesis came under
pressure in early 2025 as stricter immigration policies, notably in the US and
Australia, impacted international students and thus the growth potential of
the assessments division combined with threats from AI disintermediation and
US government spending reform.
We sold our position in SGS following
the announcement of potential merger with its peer, Bureau Veritas. Whilst
this would have created the largest Testing and Inspection business globally,
we sold our position as this was a significant departure from our investment
thesis which was predicated on the self-help potential on offer rather than a
large deal and complex integration. We have a high threshold for capital
allocation and remain cautious of large-scale M&A particularly when undertaken
by a relatively new management team at a time of significant geopolitical
uncertainty and tariff announcements. During the period we also sold
Hays and Big Yellow
. These changes partially reflect a further reduction in UK
domestic exposure whilst the exit of Hays recognises a depressed employment
landscape which is unlikely to improve.
We purchased a position in Intermediate Capital Group
. The private capital specialist continues to deliver strong
inflows and strategy performance. As discussed in the performance section, we
added to Lloyds to reflect our view
that the shares had been overly punished on fears relating to the motor
finance commission liability and that the fundamentals of the bank remain
attractive.
Gearing
Historically, we have managed the Company with a modest and
consistent level of gearing, typically between 5-8% to enhance income
generation and capital growth. However, as market volatility has picked up, we
have been more active over the last two years, varying both the level of
gearing and using a broader range (0-10%) depending on the opportunities or
risks presenting themselves at the time. As at 31st October, the Company had
employed net gearing of 6.1%.
Outlook
The outlook for investment markets continues to be driven by a
complex interplay of elevated geopolitical uncertainty, easing monetary policy
and strong thematic winds in AI, Defence and Financials sectors. The first
half of 2025 saw global markets fall sharply as tariffs were threatened only
to be followed by an impressive recovery as proposed tariff levels were
lowered and their implementation delayed. However, tariffs remain a key source
of market volatility with the potential for outsized impacts on specific
industries and companies. Expectations of Fed rate cuts have consistently been
pushed out this year. US President Trump’s unpredictability, whether tariff
related or more generally, suggests volatility in both equity and bond markets
is likely to remain elevated. These factors have also driven weakness in the
US Dollar impacting companies with US Dollar earnings. Our response is to
focus on those companies that have strong and sustainable competitive
advantages alongside sufficient pricing power to navigate these uncertain
times while seeking opportunities that may result from elevated volatility in
markets.
The outlook for Europe is buoyed by a combination of rate cuts by the ECB
(from 3.0% to 2.0%) and significant fiscal expansion from Germany with an
emphasis on defence and infrastructure spending. This has already led to the
significant outperformance of European defence exposed companies though the
question is whether this spend stimulates economic activity more broadly in
Germany and then Europe as a whole. In our conversations with corporates,
those exposed to highlighted industries, such as defence, are very optimistic,
yet the outlook more generally suggests stabilisation rather than anything
more for now. Meanwhile, China continues to fight weak domestic demand and
deflationary pressures with a broad range of fiscal and monetary tools with
limited success to date; the uncertainty created by US tariff announcements
clearly hampering their efforts.
The UK index continues to be relatively immune to the political challenges of
the UK government and economy, as the strong performance during 2025. However,
for the domestic exposed companies which represent c.20% of the index, the
challenges of politics have been notable for investor confidence. The hope of
‘certainty’ delivered by a large majority in 2024, has given way to an
elevated equity risk premium as both equity, and indeed gilt markets, continue
to suffer from the fractures within this majority. Whilst fiscal consolidation
is welcomed as the sensible path for a highly indebted nation, there remains
little confidence in either its delivery or its architects surviving a
potential leadership challenge. The UK saver remains robust, with high savings
rates and real wages continue to grow highlighting the potential for UK
economic recovery when consumer and business confidence improves. While
economic data has shown signs of stability, uncertainty around the growth
outlook and future policy direction has constrained investor confidence.
The UK stock market remains very depressed in valuation terms relative to
other developed markets offering double-digit discounts across a range of
valuation metrics. This valuation anomaly saw further reactions from UK
corporates who continue to use excess cash flows to fund buybacks. Combining
this with a dividend yield of 3.2% (FTSE All-Share Index yield as at end of
October 2025; source: FT), the cash return of the UK market is attractive in
absolute terms and higher than other developed markets. This valuation anomaly
has also been evidenced by the continuation of inbound M&A for UK listed
companies. Although we anticipate further volatility ahead, we believe that
risk appetite will return and opportunities are emerging.
We continue to focus the portfolio on cash generative businesses that we
believe offer durable, competitive advantages as we believe these companies
are best placed to drive superior returns over the long term. Whilst we
anticipate economic and market volatility will persist throughout the year
ahead, we expect that this will create opportunities; by seeking to identify
the companies that strengthen their long-term prospects as well as attractive
turnaround situations.
ADAM AVIGDORI AND DAVID GOLDMAN
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
27 January 2026
12 month performance attribution for the year ended 31 October 2025
Sector Contribution to return 1 Commentary
Allocation Selection 2 Total Effect
Basic Materials 0.15% 0.33% 0.48% The Company’s underweight exposure to Glencore contributed to relative performance.
Health Care 0.23% 0.04% 0.27% The Company’s underweight position in Health Care contributed positively to relative performance during the year.
Technology 0.07% 0.00% 0.07% The lack of exposure to the Technology sector had a marginal impact on relative returns.
Oil & Gas 0.18% -0.19% -0.01% The underweight position in the Oil & Gas sector had a marginal impact on relative returns.
Consumer Goods 0.05% -0.15% -0.10% Within Consumer Goods, the overweight position in Tate & Lyle detracted from performance.
Telecommunications -0.19% 0.00% -0.19% The lack of exposure to Telecommunications detracted from performance.
Utilities -0.28% 0.04% -0.24% Sector allocation in the Utilities sector, where the Company maintained an underweight position, negatively impacted relative returns.
Financials 0.54% -2.68% -2.14% Financials weighed on relative performance, driven primarily by holdings in Segro and London Stock Exchange Group.
Consumer Services -0.48% -1.67% -2.15% The Company’s overweight exposure to WH Smith and RELX negatively impacted relative returns.
Industrials -0.35% -2.46% -2.82% Within Industrials, underweight exposure to Aerospace and Defence names, notably, Rolls-Royce and BAE Systems detracted from performance.
========= ========= =========
1 Due to the limitations of a static attribution
methodology, the numbers quoted are indicative and not exact.
2 The interaction effect is included with stock
selection.
Ten largest investments
Together, the Company’s ten largest investments represented 45.3% of the
Company’s portfolio as at 31 October 2025 (2024: 44.0%)
1. AstraZeneca
(2024: 1st)
Sector: Pharmaceuticals & Biotechnology
Market Value: £3,932,000
Share of investments: 7.9% (2024: 6.5%)
AstraZeneca is a leading multinational pharmaceutical and biotechnology
company headquartered in Cambridge, UK. It specializes in innovative medicines
across oncology, cardiovascular, respiratory, neuroscience, and other
therapeutic areas. With a strong global footprint and significant R&D
investment, AstraZeneca remains a major player in the pharmaceutical industry.
2. RELX (2024:
2nd)
Sector: Media
Market Value: £2,719,000
Share of investments: 5.5% (2024: 5.9%)
RELX is a global provider of information-based analytics and decision tools
for professional and business customers across industries including science,
healthcare, risk, and legal sectors. It leverages data and technology to
deliver insights that help clients make better decisions, positioning itself
as a critical partner in knowledge-driven markets.
3. Shell (2024:
3rd)
Sector: Oil & Gas Producers
Market Value: £2,353,000
Share of investments: 4.8% (2024: 5.7%)
Shell is one of the world’s largest integrated energy companies, operating
across the oil and gas value chain, including exploration, production,
refining, and marketing. It is actively transitioning towards cleaner energy
solutions while maintaining a strong presence in traditional hydrocarbons,
reflecting its strategic pivot in the evolving energy landscape.
4. Standard Chartered
(2024: 9th)
Sector: Banks
Market Value: £2,124,000
Share of investments: 4.3% (2024: 3.2%)
Standard Chartered is a British multinational bank with a strong focus on
Asia, Africa, and the Middle East. It provides corporate and investment
banking, wealth management, and treasury services. Despite its UK
headquarters, it generates most of its profits outside the UK, emphasising
emerging market growth.
5. Lloyds Banking Group
(2024: 43rd)
Sector: Banks
Market Value: £2,017,000
Share of investments: 4.1% (2024: 0.8%)
Lloyds Banking Group is one of the UK’s largest retail and commercial banks,
providing a wide range of financial services including personal banking,
insurance, and wealth management. It has a strong domestic franchise and is
focused on digital transformation to enhance customer experience.
6. Unilever (2024:
7th)
Sector: Personal Goods
Market Value: £1,970,000
Share of investments: 4.0% (2024: 3.7%)
Unilever is a global consumer goods company with a diverse portfolio of
well-known brands in food, beverages, personal care, and home care. With a
significant presence in emerging markets, Unilever emphasises sustainability
and innovation to drive growth and meet changing consumer preferences
worldwide.
7. HSBC (2024:
5th)
Sector: Banks
Market Value: £1,917,000
Share of investments: 3.9% (2024: 4.1%)
HSBC is one of the world’s largest banking and financial services
organisations, operating globally across Europe, Asia, the Americas, the
Middle East, and Africa. It offers a broad range of services including retail
banking, commercial banking, wealth management, and global banking and
markets. HSBC continues to focus on growth in Asia while managing its
extensive international network.
8. Rio Tinto
(2024: 4th)
Sector: Mining
Market Value: £1,834,000
Share of investments: 3.7% (2024: 4.5%)
Rio Tinto one of the world’s largest mining and metals companies operating
in about 36 countries around the world, producing iron ore, copper, diamonds,
gold and uranium.
9. Reckitt (2024:
14th)
Sector: Household Goods & Home Construction
Market Value: £1,794,000
Share of investments: 3.6% (2024: 2.6%)
Reckitt Benckiser Group is a leading British multinational company
specialising in consumer health, hygiene, and nutrition products. Its
portfolio includes globally recognised brands such as Dettol, Nurofen, Durex,
and Lysol. The group places strong emphasis on science-led innovation and
brand strength to deliver long-term growth while addressing evolving consumer
health and wellbeing needs across developed and emerging markets.
10. 3i Group
(2024: 6th)
Sector: Financial Services
Market Value: £1,727,000
Share of investments: 3.5% (2024: 4.1%)
3i Group is an international investment company focused on private equity and
infrastructure investments. It aims to generate attractive returns by backing
growth-oriented businesses and infrastructure projects, primarily in Europe
and North America, combining active ownership with long-term capital
deployment.
All percentages reflect the value of the holding as a percentage of total
investments.
Percentages in brackets represent the value of the holding as at 31
October 2024.
Distribution of investments as at 31 October 2025
Analysis of portfolio by sector
Sector % of investments by market value Benchmark %
Banks 13.5 14.2
Financial Services 10.5 5.3
Pharmaceuticals & Biotechnology 9.0 11.0
Oil & Gas Producers 6.6 9.0
Non-Life Insurance 6.4 0.8
Aerospace & Defence 6.2 6.5
Mining 5.5 0.4
Media 5.5 1.0
General Retailers 5.0 3.1
Household Goods & Home Construction 4.5 0.8
Real Estate Investment Trusts 4.0 2.2
Personal Goods 4.0 0.2
Support Services 3.6 2.9
Travel & Leisure 3.0 1.9
Life Insurance 2.7 2.5
Industrial Engineering 2.7 0.6
Tobacco 2.7 3.8
Electronic & Electrical Equipment 1.6 1.1
General Retailers 1.3 0.8
Food Producers 1.0 0.5
Beverages 0.7 2.3
Sources: BlackRock and LSEG Datastream.
Investment Size
Number of investments % of investments by market value
< £1m 20 26.2
£1m to £2m 16 47.2
£2m to £3m 4 18.7
£3m to £4m 1 7.9
Source: BlackRock.
List of investments as at 31 October 2025
Market % of
value investments
£’000
Banks
Standard Chartered 2,124 4.3
Lloyds Banking Group 2,017 4.1
HSBC 1,917 3.9
NatWest 595 1.2
--------------- ---------------
6,653 13.5
========= =========
Financial Services
3i Group 1,727 3.5
London Stock Exchange Group 1,191 2.4
Rosebank 881 1.8
Intermediate Capital Group 769 1.6
Ashmore Group 610 1.2
--------------- ---------------
5,178 10.5
========= =========
Pharmaceuticals & Biotechnology
AstraZeneca 3,932 7.9
GSK 566 1.1
--------------- ---------------
4,498 9.0
========= =========
Oil & Gas Producers
Shell 2,353 4.8
BP Group 893 1.8
--------------- ---------------
3,246 6.6
========= =========
Non-Life Insurance
Admiral Group 1,466 3.0
Hiscox 1,172 2.4
Lancashire Holdings 493 1.0
--------------- ---------------
3,131 6.4
========= =========
Aerospace & Defence
Rolls-Royce Holdings 1,427 2.9
Melrose Industries 597 1.2
BAE Systems 570 1.2
Babcock 459 0.9
--------------- ---------------
3,053 6.2
========= =========
Mining
Rio Tinto 1,834 3.7
Anglo American 914 1.8
--------------- ---------------
2,748 5.5
========= =========
Media
RELX 2,719 5.5
--------------- ---------------
2,719 5.5
========= =========
General Retailers
Next 1,158 2.3
Howden Joinery 804 1.6
Inchcape 565 1.1
--------------- ---------------
2,527 5.0
========= =========
Household Goods & Home Construction
Reckitt 1,794 3.6
Bellway 454 0.9
--------------- ---------------
2,248 4.5
========= =========
Real Estate Investment Trusts
Great Portland Estates 1,107 2.2
Segro 909 1.8
--------------- ---------------
2,016 4.0
========= =========
Personal Goods
Unilever 1,970 4.0
--------------- ---------------
1,970 4.0
========= =========
Support Services
Mastercard 1 1,092 2.2
Rentokil Initial 704 1.4
--------------- ---------------
1,796 3.6
========= =========
Travel & Leisure
Compass Group 1,475 3.0
--------------- ---------------
1,475 3.0
========= =========
Life Insurance
Phoenix Group 1,359 2.7
--------------- ---------------
1,359 2.7
========= =========
Industrial Engineering
Weir Group 1,356 2.7
--------------- ---------------
1,356 2.7
========= =========
Tobacco
British American Tobacco 1,324 2.7
--------------- ---------------
1,324 2.7
========= =========
Electronic & Electrical Equipment
Oxford Instruments 805 1.6
--------------- ---------------
805 1.6
========= =========
General Industrials
Coats Group 618 1.3
--------------- ---------------
618 1.3
========= =========
Food Producers
Tate & Lyle 488 1.0
--------------- ---------------
488 1.0
========= =========
Beverages
Fevertree Drinks 361 0.7
--------------- ---------------
361 0.7
========= =========
Total investments 49,569 100.0
========= =========
1 Non-UK listed investments.
All investments are in ordinary shares unless otherwise stated. The total
number of investments held at 31 October 2025 was 41 (2024: 46).
As at 31 October 2025, the Company did not hold any equity interests
comprising more than 3% of any company’s share capital.
Strategic report
The Directors present the Strategic Report of the Company for the year ended
31 October 2025.
Investment objective
The Company’s objective is to provide growth in capital and income
over the long term through investment in a diversified portfolio of
principally UK listed equities.
Business and management of the company
BlackRock Income and Growth Investment Trust plc is an investment
trust company that has a premium listing on the London Stock Exchange. Its
principal activity is portfolio investment. Investment trusts, like unit
trusts and open-ended investment companies (OEICs), are pooled investment
vehicles which allow exposure to a diversified range of assets through a
single investment thus spreading, although not eliminating, investment risk.
Investment trusts, unlike unit trusts and OEICs, have the ability to borrow
for investment purposes and to manage dividend distributions through revenue
reserves. They also enjoy, unlike unit trusts and OEICs, the benefit of
continuous dealing during market hours.
The Company is an Alternative Investment Fund in accordance with the
Alternative Investment Fund Managers Directive (AIFMD). BlackRock Fund
Managers Limited (the Manager) is the Company’s Alternative Investment Fund
Manager. The management of the investment portfolio and the administration of
the Company have been contractually delegated to the Manager. The Manager,
operating under guidelines determined by the Board, has direct responsibility
for decisions relating to the running of the Company and is accountable to the
Board for the investment, financial and operating performance of the Company.
The Company delegates fund accounting services to BlackRock Investment
Management (UK) Limited (BIM (UK) or the Investment Manager), which in turn
sub-delegates these services to the Fund Accountant, The Bank of New York
Mellon (International) Limited (BNY), and also delegates registration services
to the Registrar, Computershare Investor Services PLC. Other service providers
include the Depositary, also performed by The Bank of New York Mellon
(International) Limited (BNY). Details of the contractual terms with these
service providers are set out in the Directors’ Report in the Company’s
Annual Report for the year ended 31 October 2025.
Business model
The Company invests in accordance with the investment objective. The
Board is collectively responsible to shareholders for the long-term success of
the Company and is its governing body. There is a clear division of
responsibility between the Board and the Manager. Matters reserved for the
Board include setting the Company’s strategy, including its investment
objective and policy, setting limits on gearing, setting the dividend, capital
structure, governance, and appointing and monitoring the performance of
service providers, including the Manager.
The Company’s business model follows that of an externally managed
investment trust, therefore the Company does not have any employees and
outsources its activities to third party service providers, including the
Manager which is the principal service provider.
Investment strategy and policy
The Company’s policy is that the portfolio will usually consist of
approximately 30-60 securities and the Company will invest primarily in the
securities of companies listed or admitted to trading in the UK. The Company
may invest up to 20% of the gross asset value of the Company in the securities
of companies that are not listed or admitted to trading in the UK.
The Company may hold a maximum of 10% of the issued ordinary share capital of
any company. No more than 15% of the gross asset value of the Company may be
invested in the securities of any one issuer, calculated at the time of any
relevant investment. Cash may not exceed 10% of the net asset value of the
Company. The performance of the Company is measured by reference to the FTSE
All-Share Index (the Benchmark Index) on a total return basis. Non-Benchmark
Index securities (including securities that are not listed or admitted to
trading in the UK) may not exceed 20% of the gross asset value of the Company.
Any non-Benchmark Index securities which are listed or admitted to trading in
the UK shall be limited to 10% of the gross asset value of the Company. Each
investee company that is a constituent of the Benchmark Index is subject to a
lower limit of 0% and an upper limit of plus 4 percentage points of the
Company’s gross asset value against such investee company’s weighting in
the Index on an ongoing basis, subject to an absolute sector weighting upper
limit of 20% of the Company’s net asset value at any time.
The Company may deal in derivatives, including options, futures, contracts for
difference and derivatives not traded on or under the rules of a recognised or
designated investment exchange for the purpose of efficient portfolio
management. Derivatives and exchange traded funds may be dealt in only with
the prior consent of the Board.
The Company achieves an appropriate spread of risk by investing in a
diversified portfolio of securities.
No material change can be made to the investment policy without the approval
of shareholders by ordinary resolution.
Investment approach and process
In assembling the Company’s portfolio, a relatively concentrated
approach to investment is adopted to ensure that the fund manager’s best
ideas contribute significantly to returns. We believe that it is the role of
the portfolio overall to achieve a premium level of yield rather than every
individual company within it. This gives increased flexibility to invest where
returns are most attractive. This relatively concentrated approach results in
a portfolio which differs substantially from the Benchmark Index and in any
individual year, the returns will vary, sometimes significantly, from those of
the Benchmark Index. Over longer periods the objective is to achieve total
returns greater than the Benchmark Index.
Investment approach
The foundation of the portfolio, approximately 70% by value, is in
high free cash flow companies that can sustain cash generation and pay a
growing yield whilst aiming to deliver a double-digit total return.
Additionally, the Investment Manager seeks to identify and invest 20% by value
of the portfolio in ‘growth’ companies that have significant barriers to
entry and scalable business models that enable them to grow consistently.
Turnaround companies are also sought, at around 10% by value, which represent
those companies that are out of favour by the market, facing temporary
challenges with high yields/very low valuations, but with recovery potential.
The return from this segment is expected to contribute meaningfully to returns
over time.
Gearing and borrowings
The appropriate use of gearing can add value and the Company may,
from time to time, use borrowings to achieve this. The Board is responsible
for the level of gearing in the Company and reviews the position at every
meeting. Gearing, including borrowings and gearing through the use of
derivatives (which requires prior Board approval), when aggregated with
underwriting participations, will not exceed 20% of the net asset value at the
time of investment, drawdown or participation. There are no derivative
positions at 31 October 2025. Any borrowing, except for short-term liquidity
purposes, is used for investment purposes or to fund the purchase of the
Company’s own shares.
The Company has put in place a revolving credit facility with a limit of £8
million, extended to the Company by The Bank of New York Mellon
(International) Limited (BNY). At the date of this report the facility was
drawn down in the sum of £6 million.
Performance
The Board reviews regularly the Company’s performance attribution
analysis to understand how performance was achieved. This provides an
understanding of how components such as sector exposure, stock selection and
asset allocation impact performance. The table on the next below provides
performance information for the current and prior year.
Details of the Company’s performance for the year are also given in the
Chairman’s Statement above. The Investment Manager’s Report above
includes a review of the main developments during the year, together
with information on investment activity within the Company’s portfolio.
Results and dividends
The Company’s revenue earnings for the year amounted to 7.23p per
share (2024: 7.20p per share). The total net profit for the year, after
taxation, was £5,848,000 (2024: £6,835,000) of which the net revenue profit
amounted to £1,400,000 (2024: £1,454,000) and the net capital profit
amounted to £4,448,000 (2024: £5,381,000). Details of dividends paid and
declared in respect of the year are set out in the Chairman’s Statement
above.
Key performance indicators
At each Board meeting, the Directors consider a number of
performance measures to assess the Company’s success in achieving its
objectives. The key performance indicators (KPIs) used to measure the progress
and performance of the Company over time, and which are comparable to other
investment trusts, are set out in the following table. As indicated in the
footnote to the table, some of these KPIs fall within the definition of
‘Alternative Performance Measures’ under guidance issued by the European
Securities and Markets Authority (ESMA) and additional information explaining
how these are calculated is set out in the Glossary in the Company’s Annual
Report for the year ended 31 October 2025.
Additionally, the Board regularly reviews the performance of the portfolio,
the net asset value, share price, discount to NAV and ongoing charges of the
Company and compares this against various companies and indices. Information
on the Company’s performance is given in the Chairman’s Statement.
The principal KPIs are described below.
Performance against the Benchmark Index
The performance of the portfolio together with the performance of
the Company’s net asset value and share price are reviewed at each Board
meeting and compared to the return of the Company’s Benchmark Index, the
FTSE All-Share Index.
Premium/discount to NAV
At each meeting the Board monitors the level of the Company’s
premium or discount to NAV and considers strategies for managing any premium
or discount. Further details of the discount policy are provided in the
Company’s Annual Report for the year ended 31 October 2025. In the year to
31 October 2025, the Company’s share price to NAV traded in the range of
6.9% to 15.8%, both on a cum income basis. The Company bought back a total of
700,818 ordinary shares during the year at an average discount of 14.2% and at
an average price of 202.62p per share. The total consideration (including
costs) was £1,420,000. No ordinary shares were reissued from treasury during
the year.
Performance against the Company’s peers
Whilst the principal objective is to achieve growth in capital and
income relative to the Benchmark Index, the Board also monitors performance
relative to a range of competitor funds, particularly those also within the
AIC UK Equity Income sector.
Ongoing charges
The Board reviews the ongoing charges and monitors the expenses
incurred by the Company at each meeting. The Board also compares the level of
ongoing charges against those of its peers.
Year ended Year ended
31 October 31 October
2025 2024
NAV per share 1 245.97p 222.22p
Share price 219.00p 193.50p
Net asset value total return 2, 3 +14.3% +18.1%
Share price total return 2, 3 +17.3% +13.2%
Change in Benchmark Index 4 +22.5% +16.3%
Discount to net asset value 3 11.0% 12.9%
Revenue earnings per share 7.23p 7.20p
Dividends per share 7.70p 7.60p
Ongoing charges 3, 5 1.15% 1.15%
========= =========
1 Calculated in accordance with accounting policies
adopted by the Company and AIC guidelines.
2 This measures the Company’s share price and NAV total
return, which assumes dividends paid by the Company have been reinvested.
3 Alternative Performance Measures, see Glossary in the
Company’s Annual Report for the year ended 31 October 2025.
4 FTSE All-Share Index (total return).
5 Ongoing charges represent the management fee and all
other operating expenses, excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items as a % of average daily net
assets.
Principal risks
The Company is exposed to a variety of risks and uncertainties. As
required by the UK Corporate Governance Code, the Board has undertaken a
robust assessment of the principal and emerging risks facing the Company,
including those that would threaten its business model, future performance,
solvency or liquidity.
In making this assessment, the Board has considered, amongst other factors,
the impact of the conflicts in Ukraine and the Middle East and their impact on
the global economy. Emerging risks are considered by the Board as they come
into view and are incorporated into the existing review of the Company’s
risk register. There has been no material change in the risks faced by the
Company as identified and assessed during the year.
A core element of this process is the Company’s risk register which
identifies the risks facing the Company and assesses the likelihood and
potential impact of each risk and the controls established for mitigation. A
residual risk rating is then calculated for each risk. The risk register is
regularly reviewed and the risks reassessed. The risk environment in which the
Company operates is also monitored and regularly appraised. New risks are also
added to the register as they are identified which ensures that the document
continues to be an effective risk management tool. The risk register, its
method of preparation and the operation of key controls in the Investment
Manager’s and third-party service providers, systems of internal control are
reviewed on a regular basis by the Audit Committee.
Additionally, the Investment Manager considers emerging risks in numerous
forums and the Risk and Quantitative Analysis team produces an annual risk
survey. Any material risks of relevance to the Company identified through the
annual risk survey will be communicated to the Board.
The Board has considered several emerging risks including the
potential impact of advancements in technology, specifically the evolution of
artificial intelligence.
In order to gain a more comprehensive understanding of the Investment
Manager’s and other third-party service providers’ risk management
processes and how these apply to the Company’s business, the Audit Committee
periodically receives presentations from BlackRock’s Internal Audit and Risk
& Quantitative Analysis functions. The Audit Committee also reviews Service
Organisation Control (SOC 1) reports from the Company’s service providers.
The current risk register includes a range of risks which are categorised
under the following headings:
- investment performance;
- income/dividend;
- gearing;
- legal, regulatory and tax compliance;
- operational;
- market; and
- financial.
The principal risks identified are described in detail within the following
tables, together with an explanation of how they are managed and mitigated.
The Board will continue to assess these risks on an ongoing basis.
Investment performance
Principal risk
The Board is responsible for:
- setting the investment strategy to fulfil the
Company’s objective; and
- monitoring the performance of the Investment Manager
and the implementation of the investment strategy.
An inappropriate investment strategy may lead to:
- poor performance compared to the Benchmark Index and
the Company’s peer group;
- a widening discount to NAV;
- a reduction or permanent loss of capital; and
- dissatisfied shareholders and reputational damage.
The Board is also aware of the long-term risk to performance from inadequate
attention to ESG issues and in particular the impact of climate change.
Mitigation/Control
To manage this risk the Board:
- regularly reviews investment performance;
- regularly reviews the Company’s investment mandate
and long-term strategy;
- is required to provide prior consent to the use of
derivatives and exchange traded funds;
- has set investment restrictions and guidelines which
the Investment Manager monitors and regularly reports on;
- reviews changes in gearing and the rationale for the
composition of the investment portfolio;
- monitors the maintenance of an adequate spread of
investments in order to minimise the risks associated with factors specific to
particular sectors, based on the diversification requirements inherent in the
investment policy; and
- monitors the discount to NAV and use of the granted buy
back powers.
Income/dividend
Principal risk
The amount of dividends and future dividend growth will depend on
the Company’s underlying portfolio and the dividends paid by the underlying
investee companies.
Changes in the composition of the portfolio and any change in the tax
treatment of the dividends or interest received by the Company may alter the
level of dividends received by shareholders.
Mitigation/Control
The Board monitors this risk through the receipt of detailed income
forecasts and considers the level of income at each meeting. The Company also
has a revenue reserve and powers to pay dividends from capital which could
potentially be used to support the Company’s dividend if required.
Gearing
Principal risk
The Company’s investment strategy may involve the use of gearing
to enhance investment returns.
Gearing may be generated through borrowing money or increasing levels of
market exposure through the use of derivatives. The Company currently has an
unsecured revolving credit facility provided by The Bank of New York Mellon
(International) Limited (BNY). The use of gearing exposes the Company to the
risks associated with borrowing.
Mitigation/Control
To manage this risk the Board has limited gearing, including
borrowings and gearing through the use of derivatives, to 20% of NAV at the
time of investment, drawdown or participation.
The Investment Manager will only use gearing when confident that market
conditions and opportunities exist to enhance investment returns.
Legal, regulatory and tax compliance
Principal risk
The Company has been approved by HM Revenue & Customs as an
investment trust, subject to meeting the relevant eligibility conditions and
operating as an investment trust in accordance with Sections 1158 and 1159 of
the Corporation Tax Act 2010. As such, the Company is exempt from capital
gains tax on the profits realised from the sale of its investments. Any breach
of the relevant eligibility conditions could lead to the Company losing
investment trust status and being subject to corporation tax on capital gains
realised within the Company’s portfolio.
The Company is required to comply with the provisions of the Companies Act
2006, the Alternative Investment Fund Managers Directive (the AIFMD), the
Market Abuse Regulation, the UK Listing Rules and the FCA’s Disclosure
Guidance & Transparency Rules.
Any serious breach could result in the Company and/or the Directors being
fined or the subject of criminal proceedings or the suspension of the
Company’s shares which would in turn lead to a breach of the Corporation Tax
Act 2010.
Mitigation/Control
Compliance with the accounting rules affecting investment trusts are
regularly monitored.
The Investment Manager monitors investment movements, the level and type of
forecast income and expenditure and the amount of proposed dividends, if any,
to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax
Act 2010 are not breached. The results are reported to the Board at each
meeting. The Board is aware of the risk of potential changes in law and
taxation and will continue to monitor this closely.
The Company Secretary and the Company’s professional advisers provide
regular reports to the Board in respect of compliance with all applicable
rules and regulation.
The Company and its appointed Alternative Investment Fund Manager (AIFM and/or
Manager) are subject to the risks that the requirements of AIFMD are not
correctly complied with. The Board and the Manager also monitor changes in
government policy and legislation which may have an impact on the Company.
The Market Abuse Regulation came into force on 3 July 2016. The Board has
taken steps to ensure that individual Directors (and their Persons Closely
Associated) are aware of their obligations under the regulation and has
updated internal processes, where necessary, to ensure the risk of
non-compliance is effectively mitigated.
Operational
Principal risk
In common with most other investment trust companies, the Company
has no employees. The Company therefore relies upon the services provided by
third parties and is dependent on the control systems of BlackRock (the
Investment Manager and AIFM), and of The Bank of New York Mellon
(International) Limited (BNY) (the Depositary and Fund Accountant), which
ensures safe custody of the Company’s assets and maintains the Company’s
accounting records. The Company’s share register is maintained by the
Registrar, Computershare Investor Services PLC.
Failure by any service provider to carry out its obligations to the Company
could have a material adverse effect on the Company’s performance.
Disruption to the accounting, payment systems or custody records, as a result
of a cyber-attack or otherwise, could impact the monitoring and reporting of
the Company’s financial position.
The security of the Company’s assets, dealing procedures, accounting records
and maintenance of regulatory and legal requirements, depend on the effective
operation of these systems.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with
third party service providers. Thereafter, the performance of the provider is
subject to regular review and reports to the Board.
The Bank of New York Mellon’s and BlackRock’s internal control processes
are regularly tested and monitored throughout the year and are evidenced
through their Service Organisation Control (SOC 1) reports, which are subject
to review by an Independent Service Assurance Auditor. The SOC 1 reports
provide assurance in respect of the effective operation of internal controls.
These reports are regularly reviewed by the Audit Committee.
The Company’s assets are subject to a strict liability regime and in the
event of a loss of assets, the Depositary must return assets of an identical
type or the corresponding amount, unless able to demonstrate the loss was a
result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager
and all other third party service providers on a regular basis and compliance
with the Investment Management Agreement regularly. The Board also considers
the business continuity arrangements of the Company’s key service providers.
The Board considers the business continuity arrangements of the Company’s
key service providers on an ongoing basis and reviews these as part of its
review of the Company’s risk register. Having considered these arrangements
and reviewed service levels, the Board is confident that a good level of
service has and will be maintained.
Market
Principal risk
Market risk arises from volatility in the prices of the Company’s
investments. It represents the potential loss the Company might suffer through
realising investments at a time of negative market movements.
There is also the potential for the Company to suffer loss through holding
investments in a period of negative market movements.
Mitigation/Control
The Board considers the diversification of the portfolio, asset
allocation, stock selection, and levels of gearing on a regular basis and has
set investment restrictions and guidelines which are monitored and reported on
by the Investment Manager.
The Board monitors the implementation and results of the investment process
with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in
extremely volatile markets such as major geopolitical events and their impact
on markets. Unlike open-ended counterparts, closed-end funds are not obliged
to sell-down portfolio holdings at low valuations to meet liquidity
requirements for redemptions. During times of elevated volatility and market
stress, the ability of a closed-end fund structure to remain invested for the
long term enables the Investment Manager to adhere to disciplined fundamental
analysis from a bottom-up perspective.
Financial
Principal risk
The Company’s investment activities expose it to a variety of
financial risks that include market risk.
Mitigation/Control
Details of these risks are disclosed in note 16 to the financial
statements, together with a summary of the policies for managing these risks.
Viability statement
In accordance with the UK Corporate Governance Code, the Directors
have assessed the prospects of the Company over a longer period than the
twelve months referred to by the ‘Going Concern’ guidelines. The Company
is an investment trust with the objective of achieving capital growth and
income.
The Directors believe that five years is an appropriate investment horizon to
assess the viability of the Company. This is based on the Company’s
long-term mandate, the low turnover in the portfolio and the investment
holding period investors generally consider while investing in the UK market.
This period has also been selected as it is aligned to the Company’s
objective of achieving long-term growth in capital and income. The Board is
aware of the current heightened global geopolitical tensions and has
considered their impact on the economy, and the prospects for many of the
Company’s portfolio holdings. Notwithstanding the impact of these events,
and given the factors stated below, the Board expects the Company to continue
to meet its liabilities as they fall due for the foreseeable future.
The Board conducted its review for the period up to the AGM in 2031, being a
five-year period from the date that this annual report will be laid before
shareholders for approval. In making this assessment the Board has considered
the following factors:
- the Company’s principal risks as set out above;
- the ongoing relevance of the Company’s investment
objective in the current environment;
- the level of demand for the Company’s shares;
- the performance of the Company versus its benchmark
index;
- good communication with major shareholders; and
- at the close of business on 23 January 2026 the
Company’s shares were trading at a discount to NAV of 11.2%.
As part of its assessment the Board has also considered:
- the level of ongoing charges, both current and
historical;
- the level at which the shares trade relative to NAV;
- the level of income generated; and
- future income forecasts.
The Board has concluded that the Company would be able to meet its ongoing
operating costs and net current liabilities as they fall due as a consequence
of:
- a liquid portfolio; and
- overheads which comprise a small percentage of net
assets.
Therefore, the Board has concluded that even in exceptionally stressed
operating conditions, the Company would comfortably be able to meet its
ongoing operating costs as they fall due.
However, investment companies may face other challenges. These include
regulatory changes, changes to the tax treatment of investment trusts, a
significant decrease in size due to poor investment performance or substantial
share buy back activity, which may result in the Company no longer being of
sufficient market capitalisation to represent a viable investment proposition
or no longer being able to continue in operation.
Based on the results of their analysis, the Directors have a reasonable
expectation that the Company will be able to continue in operation and meet
its liabilities as they fall due over the period of their assessment.
Future prospects
The Board’s main focus is the achievement of income and capital
growth. The future performance of the Company is dependent upon the success of
the investment strategy.
The outlook for the Company is discussed in the Chairman’s Statement and in
the Investment Manager’s Report above.
Social, community and human rights issues
As an investment trust, the Company has no direct social or
community responsibilities.
However, the Company believes that it is in shareholders’ interests to
consider environmental, social and governance factors and human rights issues
when selecting and retaining investments. Details of the Company’s approach
to socially responsible investment are set out in the Company’s Annual
Report for the year ended 31 October 2025.
Modern slavery act
As an investment vehicle the Company does not provide goods or
services in the normal course of business and does not have customers.
Accordingly, the Directors consider that the Company is not required to make
any slavery or human trafficking statement under the Modern Slavery Act 2015.
In any event, the Board considers the Company’s supply chain, dealing
predominantly with professional advisers and service providers in the
financial services industry, to be low risk in relation to this matter.
Directors, gender representation and employees
The Directors of the Company on 31 October 2025, all of whom, with
the exception of Mr Hine, held office throughout the year, are set out in the
Governance Structure and Directors’ biographies in the Company’s Annual
Report for the year ended 31 October 2025.
The Board recognises the importance of having a range of experienced Directors
with the right skills and knowledge to enable it to fulfil its obligations. As
at 31 October 2025, the Board consisted of three male Directors and one female
Director. The Company does not have any employees.
Promoting the success of BlackRock Income and Growth Investment Trust plc
The Companies (Miscellaneous Reporting) Regulations 2018 require
directors to explain more fully how they have discharged their duties under
Section 172(1) of the Companies Act 2006 in promoting the success of their
companies for the benefit of members as a whole. This
enhanced disclosure covers how the Board has engaged with and understands the
views of stakeholders and how stakeholders’ needs have been taken into
account, the outcome of this engagement and the impact that it has had on the
Board’s decisions.
As the Company is an externally managed investment company and does not have
any employees or customers, the Board considers the main stakeholders in the
Company to be the shareholders, key service providers (being the Manager and
Investment Manager, the Custodian, Depositary, Registrar and Broker) and
investee companies. The reasons for this determination, and the Board’s
overarching approach to engagement, are set out below.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the
continued existence of the Company and the successful delivery of its
long-term strategy. The Board is focused on fostering good working
relationships with shareholders and on understanding the views of shareholders
in order to incorporate them into the Board’s strategy and objectives in
delivering long-term growth and income.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is
responsible for the Company’s portfolio management (including asset
allocation, stock and sector selection) and risk management, as well as
ancillary functions such as administration, secretarial, accounting and
marketing services.
The Manager has sub-delegated portfolio management to the Investment Manager.
Successful management of shareholders’ assets by the Investment Manager is
critical for the Company to deliver successfully its investment strategy and
meet its objective. The Company is also reliant on the Manager as AIFM to
provide support in meeting relevant regulatory obligations under the AIFMD and
other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust with a
listing on the premium segment of the official list of the FCA and trade on
the London Stock Exchange’s (LSE) main market for listed securities, the
Board relies on a diverse range of service providers and advisors for support
in meeting relevant obligations and safeguarding the Company’s assets. For
this reason the Board considers the Company’s Custodian, Depositary,
Registrar and Broker to be stakeholders. The Board maintains regular contact
with its key external providers and receives regular reporting from them
through the Board and committee meetings, as well as outside of the regular
meeting cycle.
Investee companies
Portfolio holdings are ultimately shareholders’ assets, and the
Board recognises the importance of good stewardship and communication with
investee companies in meeting the Company’s investment objective and
strategy. The Board monitors the Investment Manager’s stewardship activities
and receives regular feedback from the Investment Manager in respect of
meetings with the management of portfolio companies.
A summary of the key areas of engagement undertaken by the Board with its key
stakeholders in the year under review and how Directors have acted upon this
to promote the long-term success of the Company are set out in the table
below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the
Company in delivering on its investment mandate to shareholders over the long
term. Consideration of sustainable investment is a key part of the investment
process and must be factored in when making investment decisions. The Board
also has responsibility to shareholders to ensure that the Company’s
portfolio of assets is invested in line with the stated investment objective
and in a way that ensures an appropriate balance between spread of risk and
portfolio returns.
Engagement
The Board believes that responsible investment and sustainability
are important to the longer-term delivery of growth in capital and income and
has worked closely with the Manager throughout the year to review regularly
the Company’s performance, investment strategy and underlying policies and
to understand how sustainability considerations are integrated into the
investment process.
The Manager’s approach to the consideration of ESG factors in respect of the
Company’s portfolio, as well as its engagement with investee companies to
encourage the adoption of sustainable business practices which support
long-term value creation, are kept under review by the Board. The Manager
reports to the Board in respect of its consideration of ESG factors and how
these are integrated into the investment process.
Impact
The portfolio activities undertaken by the Investment Manager and
the performance delivered for shareholders during the year can be found in the
Investment Manager’s Report above,
Discount strategy
Issue
The Board believes that strong performance and an attractive
dividend yield enhances demand for the Company’s shares, which will help to
narrow the Company’s discount of share price to NAV over time.
Engagement
The Manager reports total return performance statistics to the Board
on a regular basis, along with the portfolio yield and the impact of dividends
paid on brought forward distributable reserves.
The Board reviews the Company’s discount/premium to NAV on a regular basis
and holds regular discussions with the Manager and the Company’s broker
regarding the discount/premium level.
The Board has authority to buy back up to 14.99% of the Company’s issued
share capital (excluding treasury shares) and has an active buy back programme
in place. The Company bought back a total of 700,818 ordinary shares during
the year at an average discount of 14.2% and at an average price of 202.62p
per share. As at the financial year end, the Company’s shares were trading
at a discount to NAV of 11.0%.
The Manager provides the Board with feedback and key performance statistics
regarding the success of the Company’s marketing initiatives which include
messaging to highlight the dividends.
The Board also reviews feedback from shareholders in respect of the level of
dividend.
Impact
The average discount for the year to 31 October 2025 was 11.9%.
During the year the Company’s share price has traded at a minimum discount
of 6.9% to a maximum discount of 15.8%, both on a cum income basis.
The Board believes the buy back activity undertaken during the year has been
effective in reducing the discount volatility and increasing liquidity in the
Company’s shares. All shares were purchased at a discount to the prevailing
NAV and were accretive to the NAV.
Service levels of third party providers
Issue
The Board acknowledges the importance of ensuring that the
Company’s principal suppliers are providing a suitable level of service:
including the Manager in respect of investment performance and delivering on
the Company’s investment mandate; the Custodian and Depositary in respect of
their duties towards safeguarding the Company’s assets; the Registrar in its
maintenance of the Company’s share register and dealing with investor
queries and the Company’s Brokers in respect of the provision of advice and
acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a
regular basis. The Board carries out a robust annual evaluation of the
Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third party
service providers and concludes on their suitability to continue in their
role.
The Board receives regular updates from the AIFM, Depositary, Registrar and
Brokers.
The Board has worked closely with the Manager to gain comfort that relevant
business continuity plans are operating effectively for all of the Company’s
service providers.
Impact
Performance evaluations were performed on a timely basis and the
Board concluded that all third party service providers, including the Manager,
Custodian, Depositary and Fund Administrator were operating effectively and
providing a good level of service.
The Board has received updates in respect of business continuity planning from
the Manager, Custodian, Depositary, Fund Administrator, Brokers and Registrar,
and is confident that arrangements are in place to ensure that a good level of
service will continue to be provided in the event of disruption, for example
the COVID-19 pandemic.
Board composition
Issue
The Board is committed to ensuring that its own composition brings
an appropriate balance of knowledge, experience, diversity and skills, and
that it is compliant with best corporate governance practice under the UK Code
of Corporate Governance, including guidance on tenure and the composition of
the Board’s committees.
Engagement
The Board keep succession planning under regular review and
(discharging the duties of a Nomination Committee) has agreed the selection
criteria and the method of selection, recruitment and appointment. The
importance of Board diversity, including gender, was taken into account when
establishing the criteria. Tenure is also kept under review.
With these criteria in mind, and as part of its succession planning process,
the Board initiated a search and selection process in the year to identify a
new non-executive Director. As a result of this process, Mr Marcus Hine has
been appointed as a Non-executive Director with effect from 16 September 2025.
Mr Hine has also been appointed Chair of the Company’s audit committee. His
full biography can be found in the Company’s Annual Report for the year
ended 31 October 2025.
As at the date of this report, the Board is comprised of three men and one
woman. Mr Worsley, a long serving Director, currently has a tenure in excess
of nine years. The Board has considered the independence of all Directors,
including that of the Chairman, and notwithstanding the length of tenure of
individual Directors, the Board deems all Directors to be independent in
character, with no relationships or circumstances which are likely to affect
their judgement. The Board is cognisant of the need to balance the value of
highly-experienced directors with the benefits of bringing new skills, diverse
perspectives, and fresh ideas. It has a formal director tenure policy and
operates an ongoing succession plan to ensure it composition is appropriate.
The Board has undergone a process of refreshment, with two new Directors
appointed in 2024 and 2025 respectively and one long serving Director having
recently retired.
The Board subscribes to the view expressed in the AIC Code that long-serving
Directors should not be prevented from forming part of an independent
majority. It does not consider that the length of a Director’s tenure
reduces his or her ability to act independently. The Board’s policy on
tenure is that continuity and experience add significantly to the strength of
the Board and, as such, no limit on the overall length of service of any of
the Company’s Directors has been imposed, although the Board believes in the
merits of periodic and progressive refreshment of its composition as evidenced
by the succession planning actions taken through the course of the year as
described above.
All Directors are subject to a formal evaluation process on an annual basis
(more details and the conclusions in respect of the 2025 evaluation process
are given above). All Directors stand for re-election by shareholders
annually. Shareholders may attend the AGM and raise any queries in respect of
Board composition or individual Directors in person, or may contact the
Company Secretary or the Chairman using the details provided
in the Company’s Annual Report for the year ended 31 October 2025
if they wish to raise any issues.
Impact
The Board recognises the benefits of diversity and a structured
process of ongoing refreshment and will continue to consider regularly its
composition.
The Directors are not aware of any issues that have been raised directly by
shareholders in respect of Board composition in 2025. Through its Manager and
Corporate Broker, there is regular contact with major shareholders.
Shareholders are able to raise any concerns in this regard at the AGM or
alternatively they may write to the Chairman of the Board. Details of the
proxy voting results in favour and against individual Directors’ re-election
at the 2025 AGM are given on the Company’s website at
www.blackrock.com/uk/brig . Historical
proxy voting results can be found under the ‘Further Literature’ tab.
Shareholders
Issue
Continued shareholder support and engagement are critical to the
continued existence of the Company and the successful delivery of its
long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication
and to engage with shareholders. The Company welcomes and encourages
attendance and participation from shareholders at its Annual General Meetings.
Shareholders therefore have the opportunity to meet the Directors and
Investment Manager and to address questions to them directly.
The Annual Report and Half Yearly Financial Report are available on the
BlackRock website and are also circulated to shareholders either in printed
copy or via electronic communications. In addition, regular updates on
performance, monthly factsheets, the daily NAV and other information are also
published on the website at
www.blackrock.com/uk/brig .
The Company also has an arrangement in place whereby at every fifth Annual
General Meeting of the Company, shareholders shall be asked to approve the
continuation of the Company as an investment trust by ordinary resolution.
This mechanism provides shareholders with a regular opportunity at which they
can realise the value of their shares. The Board, through its Manager and
corporate advisers, engaged with major shareholders on the continuation vote
held in March 2023 and it was confirmed that there was no dissatisfaction and
that they would support continuation. The vote was subsequently passed with
99.8% in favour of continuation.
The Board also works closely with the Investment Manager to develop the
Company’s marketing strategy, with the aim of ensuring effective
communication with shareholders in respect of the investment mandate and
objective. Unlike trading companies, one-to-one shareholder meetings usually
take the form of a meeting with the Investment Manager as opposed to members
of the Board. As well as attending regular investor meetings the Investment
Manager holds regular discussions with wealth management desks and offices to
build on the case for, and understanding of, long-term investment
opportunities in the UK market.
The Investment Manager also coordinates public relations activity, including
meetings with relevant industry publications to set out their vision for the
portfolio strategy and outlook for the UK equity market. The Investment
Manager releases monthly portfolio updates to the market to ensure that
investors are kept up to date in respect of performance and other portfolio
developments, and maintains a website on behalf of the Company that contains
relevant information in respect of the Company’s investment mandate and
objective. If shareholders wish to raise issues or concerns with the Board,
they are welcome to do so at any time.
The Chairman is available to meet directly with shareholders periodically to
understand their views on governance and the Company’s performance. He may
be contacted via the Company Secretary whose details are given in the
Company’s Annual Report for the year ended 31 October 2025.
Impact
The Chairman and other directors are available to meet directly with
shareholders periodically to understand their views on governance, the
Company’s performance, strategy and prospects.
Feedback and questions will also help the Company evolve its reporting, aiming
to make reports more transparent and understandable. Feedback from all
substantive meetings between the Investment Manager and shareholders will be
shared with the Board. The Directors will also receive updates from the
Company’s broker on any feedback from shareholders, as well as share trading
activity, share price performance and an update from the Investment Manager.
The Board’s approach to Sustainability and ESG
Material environmental, social and governance (ESG) issues can
present both opportunities and threats to long-term investment performance.
These issues are a key focus of the Board and your Board is committed to a
diligent oversight of the activities of the Manager in these areas. The Board
believes that effective engagement by the Investment Manager with investee
companies can contribute to investment performance. The Board believes that
BlackRock is well placed as Manager to fulfil these requirements due to the
integration of ESG into its investment processes, its approach in its
investment stewardship activities and its position in the industry as one of
the largest suppliers of sustainable investment products in the global market.
More information on BlackRock’s approach to responsible investing is set out
in the Company’s Annual Report for the year ended 31
October 2025.
BlackRock’s approach to material ESG integration
BlackRock’s clients have a wide range of perspectives on a variety
of issues and investment themes. Given the wide range of unique and varied
investment objectives sought by our clients, BlackRock’s investment teams
have a range of approaches to considering financially material E, S, and/or G
factors. As with other investment risks and opportunities, the relevance of E,
S and/or G considerations may vary by issuer, sector, product, mandate, and
time horizon. Depending on the investment approach, this financially material
E, S and/or G data or information may help inform due diligence, portfolio or
index construction, and/or monitoring processes of our portfolios, as well as
our approach to risk management.
BlackRock’s ESG integration framework is built upon our history as a firm
founded on the principle of thorough and thoughtful risk management. Aladdin,
our core risk management and investment technology platform, allows investors
to leverage financially material E, S and/or G data or information as well as
the combined experience of our investment teams to effectively identify
investment opportunities and investment risks. Our heritage in risk management
combined with the strength of the Aladdin platform enables BlackRock’s
approach to ESG integration. More information in respect of BlackRock’s
approach to ESG integration can be found at
https://www.blackrock.com/corporate/literature/publication/blk-esg-investment-statement-web.pdf.
BY ORDER OF THE BOARD
KEVIN MAYGER
FOR AND ON BEHALF OF
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
Company Secretary
27 January 2026
Related Party Transactions
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Company under a contract which is terminable on six months’
notice. BFM has (with the Company’s consent) delegated certain portfolio and
risk management services, and other ancillary services, to BlackRock
Investment Management (UK) Limited (BIM (UK)). Further details of the
investment management contract are disclosed in the Directors’ Report in the
Company’s Annual Report for the year ended 31 October 2025.
The investment management fee due for the year ended 31 October 2025 amounted
to £188,000 (2024: £179,000). At the year end, £33,000 was prepaid in
respect of the management fee (2024: outstanding of £122,000).
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceeds the cap of
1.15% per annum of average daily net assets. The amount of rebate accrued to
31 October 2025 amounted to £93,000 (2024: £52,000).
In addition to the above services, BIM (UK) has provided the Company with
marketing services. The total fees paid or payable for these services for the
year ended 31 October 2025 amounted to £13,000 including VAT (2024:
£18,000). At the year end, £25,000 including VAT was outstanding in respect
of marketing fees (2024: £29,000).
The Company holds an investment in the BlackRock Institutional Cash Series plc
– Sterling Liquid Environmentally Aware Fund of £3,202,000 (2024:
£2,255,000) which for the year ended 31 October 2025 and 31 October 2024 has
been presented in the financial statements as a cash equivalent. This is a
fund managed by a company within the BlackRock Group. The Company’s
investment in the Cash Fund is held in a share class on which no management
fees are paid to BlackRock to avoid double dipping.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
At the date of this report, the Board consists of four non-executive
Directors, all of whom are considered to be independent of the Manager by the
Board.
Disclosures of the Directors’ interests in the ordinary shares of the
Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report in the Company’s Annual Report for the year
ended 31 October 2025. At 31 October 2025, £9,000 (2024: £7,000) was
outstanding in respect of Directors’ fees.
Statement of Directors’ responsibilities in respect of the Annual Report and
Financial Statements
The Directors are responsible for preparing the Annual Report and Financial
Statements in accordance with applicable United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law),
including Financial Reporting Standard FRS 102 The Financial Reporting
Standard applicable in the UK and Republic of Ireland (“FRS 102”).
Under company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company as at the end of each financial year and of the profit
or loss of the Company for that year.
In preparing these financial statements, the Directors are required to:
– present fairly the financial position, financial
performance and cash flows of the Company;
– select suitable accounting policies in accordance
with Section 10 of FRS 102 and apply them consistently;
– present information, including accounting policies,
in a manner that provides relevant, reliable, comparable and understandable
information;
– make judgements and accounting estimates that are
reasonable and prudent;
– state whether applicable UK Accounting Standards,
including FRS 102, have been followed, subject to any material departures
disclosed and explained in the financial statements; and
– prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are also responsible for preparing the Strategic Report, the
Directors’ Report, the Directors’ Remuneration Report, the Corporate
Governance Statement and the Report of the Audit Committee in accordance with
the Companies Act 2006 and applicable regulations, including the requirements
of the Listing Rules and the Disclosure Guidance and Transparency Rules.
The Directors have delegated responsibility to the Manager for the maintenance
and integrity of the Company’s corporate and financial information included
on the BlackRock website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
Each of the Directors, whose names are listed in the Company’s Annual Report
for the year ended 31 October 2025, confirm to the best of their knowledge
that:
– the financial statements, prepared in accordance with
applicable accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company; and
– the Strategic Report contained in the Annual Report
and Financial Statements includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces.
The 2018 UK Corporate Governance Code requires Directors to ensure that the
Annual Report and Financial Statements are fair, balanced and understandable.
In order to reach a conclusion on this matter, the Board has requested that
the Audit Committee advise on whether it considers that the Annual Report and
Financial Statements fulfils these requirements. The process by which the
Audit Committee has reached these conclusions is set out in the Audit
Committee’s report in the Company’s Annual Report for the year ended 31
October 2025. As a result, the Board has concluded that the Annual Report and
Financial Statements for the year ended 31 October 2025, taken as a whole, are
fair, balanced and understandable and provide the information necessary for
shareholders to assess the Company’s position and performance, business
model and strategy.
FOR AND ON BEHALF OF THE BOARD
GRAEME PROUDFOOT
Chairman
27 January 2026
Income statement for the year ended 31 October 2025
2025 2024
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net gains on investments held at fair value through profit or loss – 4,888 4,888 – 5,684 5,684
Net gains/(losses) on foreign exchange – 5 5 – (4) (4)
Income from investments held at fair value through profit or loss 3 1,694 – 1,694 1,749 49 1,798
Other income 3 132 – 132 98 – 98
--------------- --------------- --------------- --------------- --------------- ---------------
Total income 1,826 4,893 6,719 1,847 5,729 7,576
========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (23) (165) (188) (24) (155) (179)
Other operating expenses 5 (311) (7) (318) (301) (6) (307)
--------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (334) (172) (506) (325) (161) (486)
========= ========= ========= ========= ========= =========
Net profit before finance costs and taxation 1,492 4,721 6,213 1,522 5,568 7,090
Finance costs 6 (91) (273) (364) (63) (187) (250)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit before taxation 1,401 4,448 5,849 1,459 5,381 6,840
Taxation charge (1) – (1) (5) – (5)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit after taxation 8 1,400 4,448 5,848 1,454 5,381 6,835
========= ========= ========= ========= ========= =========
Earnings per ordinary share (pence) 8 7.23 22.98 30.21 7.20 26.65 33.85
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss
account. The supplementary revenue and capital accounts are both prepared
under guidance published by the Association of Investment Companies (AIC). All
items in the above statement derive from continuing operations. No operations
were acquired or discontinued during the year. All income is attributable to
the equity holders of the Company.
The net profit for the year disclosed above represents the Company’s total
comprehensive income.
Statement of changes in equity for the year ended 31 October 2025
Notes Called Share Capital Special Capital Revenue Total
up share premium redemption reserve reserve reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
For the year ended 31 October 2025
At 31 October 2024 298 14,819 251 10,682 15,647 2,063 43,760
Total comprehensive income:
Net profit for the year – – – – 4,448 1,400 5,848
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation 9,10 (7) – 7 (1,413) – – (1,413)
Share repurchase costs 10 – – – (7) – – (7)
Dividends paid 1 7 – – – – – (1,473) (1,473)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 2025 291 14,819 258 9,262 20,095 1,990 46,715
========= ========= ========= ========= ========= ========= =========
For the year ended 31 October 2024
At 31 October 2023 307 14,819 242 12,391 10,266 2,131 40,156
Total comprehensive income:
Net profit for the year – – – – 5,381 1,454 6,835
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation 9,10 (9) – 9 (1,700) – – (1,700)
Share repurchase costs 10 – – – (9) – – (9)
Dividends paid 2 7 – – – – – (1,522) (1,522)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 2024 298 14,819 251 10,682 15,647 2,063 43,760
========= ========= ========= ========= ========= ========= =========
1 Interim dividend paid in respect of the six months
ended 30 April 2025 of 2.70p per share was declared on 19 June 2025 and paid
on 2 September 2025. Final dividend paid in respect of the year ended 31
October 2024 of 4.90p per share was declared on 7 January 2025 and paid on 14
March 2025.
2 Interim dividend paid in respect of the six months
ended 30 April 2024 of 2.70p per share was declared on 20 June 2024 and paid
on 3 September 2024. Final dividend paid in respect of the year ended 31
October 2023 of 4.80p per share was declared on 21 December 2023 and paid on
15 March 2024.
Balance sheet as at 31 October 2025
Notes 2025 2024
£’000 £’000
Non current assets
Investments held at fair value through profit or loss 49,569 45,096
--------------- ---------------
Current assets
Current tax asset 18 22
Debtors 132 972
Cash and cash equivalents 3,309 2,515
--------------- ---------------
Total current assets 3,459 3,509
========= =========
Current liabilities
Creditors (197) (845)
Bank loan (6,116) (4,000)
--------------- ---------------
Total current liabilities (6,313) (4,845)
========= =========
Net current liabilities (2,854) (1,336)
--------------- ---------------
Net assets 46,715 43,760
Equity
Called up share capital 9 291 298
Share premium account 10 14,819 14,819
Capital redemption reserve 10 258 251
Special reserve 10 9,262 10,682
Capital reserve 10 20,095 15,647
Revenue reserve 10 1,990 2,063
--------------- ---------------
Total shareholders’ funds 8 46,715 43,760
========= =========
Net asset value per ordinary share (pence) 8 245.97 222.22
========= =========
Statement of cash flows for the year ended 31 October 2025
2025 2024
£’000 £’000
Operating activities
Net profit before taxation 1 5,849 6,840
Changes in working capital items:
Decrease in other receivables (excluding amounts due from brokers) 26 30
(Decrease)/increase in other payables (excluding amounts due to brokers) (232) 26
--------------- ---------------
Other adjustments:
Finance costs 364 250
Gains on investments held at fair value through profit or loss (4,888) (5,684)
(Gains)/losses on foreign exchange (5) 4
Special dividends allocated to capital – (49)
Sale of investments held at fair value through profit or loss 20,966 18,292
Purchase of investments held at fair value through profit or loss (20,155) (14,839)
Refund of withholding tax reclaims 3 –
--------------- ---------------
Net cash inflow from operating activities 1,928 4,870
========= =========
Financing activities
Ordinary shares repurchased into treasury (1,411) (1,680)
Share repurchase costs (7) (9)
Interest paid (248) (250)
Dividends paid (1,473) (1,522)
Drawdown of bank loan 2,000 -
--------------- ---------------
Net cash outflow from financing activities (1,139) (3,461)
========= =========
Increase in cash and cash equivalents 789 1,409
Effect of foreign exchange rate changes 5 (4)
--------------- ---------------
Cash and cash equivalents 794 1,405
Cash and cash equivalents at the start of year 2,515 1,110
--------------- ---------------
Cash and cash equivalents at the end of the year 3,309 2,515
========= =========
Comprised of:
Cash at bank 107 260
Cash fund 2 3,202 2,255
--------------- ---------------
3,309 2,515
========= =========
1 Dividends and interest received in cash during the year
amounted to £1,730,000 and £129,000 respectively (2024: £1,772,000 and
£76,000).
2 Cash Fund represents funds held on deposit with the
BlackRock Institutional Cash Series plc – Sterling Liquid Environmentally
Aware Fund.
Notes to the financial statements for the year ended 31 October 2025
1. Principal activity
The Company was incorporated on 29 May 2001 and its principal
activity is that of an investment trust company within the meaning of Section
1158 of the Corporation Tax Act 2010.
2. Accounting policies
The principal accounting policies adopted by the Company are set out
below.
(a) Basis of preparation
The financial statements have been prepared on a going concern basis
in accordance with The Financial Reporting Standard applicable in the UK and
Republic of Ireland (FRS 102) and the revised Statement of Recommended
Practice – Financial Statements of Investment Trust Companies and Venture
Capital Trusts (SORP), issued by the Association of Investment Companies (AIC)
in October 2019 and updated in July 2022, and the provisions of the Companies
Act 2006.
Substantially, all of the assets of the Company consist of securities that are
readily realisable and, accordingly, the Directors are satisfied that the
Company has adequate resources to continue in operational existence for the
period to 31 January 2027, being a period of at least 12
months from the date of approval of the financial statements, and therefore
consider the going concern assumption to be appropriate. The Directors have
reviewed compliance with the covenants associated with the bank loan facility,
income and expense projections and the liquidity of the investment portfolio
in making their assessment.
The Directors have considered the impact of climate change on the value of the
investments included in the Financial Statements and have concluded that there
was no further impact of climate change to be considered as the investments
are valued based on market pricing as required by FRS 102.
None of the Company’s other assets and liabilities were considered to be
potentially impacted by climate change.
The principal accounting policies adopted by the Company are set out below.
Unless specified otherwise, the policies have been applied consistently
throughout the year and are consistent with those applied in the preceding
year. All of the Company’s operations are of a continuing nature.
The Company’s financial statements are presented in Sterling, which is the
functional currency of the Company and the primary economic environment in
which the Company operates. All values are rounded to the nearest thousand
pounds (£’000) except where otherwise indicated.
(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust
company and in accordance with guidance issued by the AIC, supplementary
information which analyses the Income Statement between items of a revenue and
a capital nature has been presented alongside the Income Statement.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a
single segment of business being investment business.
(d) Income
Dividends receivable on equity shares are treated as revenue for the
year on an ex-dividend basis. Where no ex-dividend date is available,
dividends receivable on or before the year end are treated as revenue for the
year. Provisions are made for dividends not expected to be received.
Special dividends are recognised on an ex-dividend basis and treated as
capital or revenue depending on the facts or circumstances of each particular
dividend.
Dividends are accounted for in accordance with Section 29 of FRS 102 on the
basis of income actually receivable, without adjustment for tax credits
attaching to the dividend. Dividends from overseas companies continue to be
shown gross of withholding tax.
Deposit interest receivable and interest income from the Cash Fund are
accounted for using the effective interest method in accordance with Section
11 of FRS 102. Underwriting commission is recognised when the issue
underwritten closes.
Where the Company has elected to receive its dividends in the form of
additional shares rather than in cash, the cash equivalent of the dividend is
recognised as revenue. Any excess in the value of the shares received over the
amount of the cash dividend is recognised in capital.
(e) Expenses
All expenses, including finance costs, are accounted for on an
accruals basis. Expenses have been charged wholly to the revenue account of
the Income Statement, except as follows:
- expenses which are incidental to the acquisition or
sale of an investment are charged to the capital account of the Statement of
Comprehensive Income. Details of transaction costs on the purchases and sales
of investments are disclosed in note 10 in the Company’s Annual Report for
the year ended 31 October 2025.
- expenses are treated as capital where a connection with
the maintenance or enhancement of the value of the investments can be
demonstrated; and
- the investment management fee and finance costs have
been allocated 25% to the revenue account and 75% to the capital account of
the Income Statement in line with the Board’s expected long-term split of
returns, in the form of capital gains and income respectively, from the
investment portfolio.
(f) Taxation
The tax expense represents the sum of the tax currently payable and
deferred tax. The tax currently payable is based on the taxable profit for the
year. Taxable profit differs from net profit as reported in the Income
Statement because it excludes items of income or expenses that are taxable or
deductible in other years and it further excludes items that are never taxable
or deductible. The Company’s liability for current tax is calculated using
tax rates that were applicable at the balance sheet date.
The current tax effect of different items of expenditure is allocated between
capital and revenue on the marginal basis using the Company’s effective rate
of corporation tax for the accounting period.
Deferred taxation is recognised in respect of all timing differences at the
financial reporting date, where transactions or events that result in an
obligation to pay more taxation in the future or right to less taxation in the
future have occurred at the balance sheet date. Deferred taxation is measured
on a non-discounted basis, at the average tax rates that are expected to apply
in the periods in which the timing differences are expected to reverse based
on tax rates and laws that have been enacted or substantively enacted by the
balance sheet date. This is subject to deferred taxation assets only being
recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the timing differences can
be deducted.
(g) Investments held at fair value through profit or loss
The Company’s investments are classified as held at fair value
through profit or loss in accordance with Sections 11 and 12 of FRS 102 and
are managed and evaluated on a fair value basis in accordance with its
investment strategy.
All investments are classified upon initial recognition as held at fair value
through profit or loss. Purchases of investments are recognised on a trade
date basis. Sales are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price
at the balance sheet date on the exchange on which the investment is quoted,
without deduction for the estimated future selling costs. Unquoted investments
are valued by the Directors at fair value using International Private Equity
and Venture Capital Valuation Guidelines. This policy applies to all current
and non-current asset investments of the Company.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Income Statement as
‘Gains or losses on investments held at fair value through profit or
loss’. Also included within this heading are transaction costs in relation
to the purchase or sale of investments.
The fair value hierarchy consists of the following three levels:
Level 1 – Quoted market price for identical instruments in active markets.
Level 2 – Valuation techniques using observable inputs.
Level 3 – Valuation techniques using significant unobservable inputs.
(h) Debtors
Debtors include sales for future settlement, other debtors and
prepayments and accrued income in the ordinary course of business. If
collection is expected in one year or less, they are classified as current
assets. If not, they are presented as non-current assets.
(i) Creditors
Creditors include purchases for future settlement, interest payable,
share buyback costs and accruals in the ordinary course of business. Creditors
are classified as creditors – amounts due within one year if payment is due
within one year or less (or in the normal operating cycle of business if
longer). If not, they are presented as creditors – amounts due after more
than one year.
(j) Dividends payable
Under Section 32 of FRS 102, final dividends should not be accrued
in the financial statements unless they have been approved by shareholders
before the balance sheet date. Dividends payable to equity shareholders are
recognised in the Statement of Changes in Equity when they have been approved
by shareholders and have become a liability of the Company. Interim dividends
are only recognised in the financial statements in the period in which they
are paid.
(k) Cash and cash equivalents
Cash comprises cash in hand and on demand deposits. Cash equivalents
include short-term, highly liquid investments, that are readily convertible to
known amounts of cash and that are subject to an insignificant risk of changes
in value.
The investment in the BlackRock Institutional Cash Series plc – Sterling
Liquid Environmentally Aware Fund has been presented in the financial
statements as a cash equivalent as it is held for short
term cash management purposes.
(l) Foreign currency translation
In accordance with Section 30 of FRS 102, the Company is required to
nominate a functional currency being the currency in which the Company
predominately operates. The functional and reporting currency is Sterling,
reflecting the primary economic environment in which the Company operates.
Transactions in foreign currencies are translated into Sterling at the rates
of exchange ruling on the date of the transaction. Foreign currency monetary
assets and liabilities and non-monetary assets held at fair value are
translated into Sterling at the rates of exchange ruling at the balance sheet
date. Profits and losses thereon are recognised in the capital account of the
Income Statement and taken to the capital reserve.
(m) Share repurchases, share reissues and new share issues
Shares repurchased and subsequently cancelled – share capital is
reduced by the nominal value of the shares repurchased and the capital
redemption reserve is correspondingly increased in accordance with Section 733
of the Companies Act 2006. The full cost of the repurchase is charged to the
special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is
charged to the special reserve.
Where treasury shares are subsequently reissued:
- amounts received to the extent of the repurchase price
are credited to the special reserve and capital reserve based on a weighted
average basis of amounts utilised from these reserves on repurchases; and
- any surplus received in excess of the repurchase price
is taken to the share premium account.
Where new shares are issued, the par value is taken to called up share capital
and amounts received to the extent of any surplus received in excess of the
par value are taken to the share premium account.
Costs on issuance of new shares are charged to the share premium account.
Costs on share reissues are charged to the special reserve and capital
reserve.
(n) Bank borrowings
Bank loans are recorded as the proceeds received. Finance charges
are accounted for on an accruals basis in the Income Statement.
(o) Critical accounting judgement and key sources of estimation uncertainty
The Board makes estimates and assumptions concerning the future. The
resulting accounting estimates and assumptions will, by definition, seldom
equal the related actual results. Estimates and judgements are regularly
evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the
circumstances. There are no critical accounting judgements or estimates and
the Directors do not believe that any accounting judgements or estimates have
a significant risk of causing a material adjustment to the carrying amount of
assets and liabilities within the next financial year.
3. Income
2025 2024
£’000 £’000
Investment income:
UK dividends 1,531 1,547
UK special dividends 28 42
UK property income distributions 71 62
Dividends from UK REITs 1 38 17
Overseas dividends 26 81
--------------- ---------------
Total investment income 1,694 1,749
========= =========
Other income:
Interest from Cash Fund 126 85
Deposit interest 4 3
Underwriting commission 2 10
--------------- ---------------
Total other income 132 98
========= =========
Total 1,826 1,847
========= =========
1 REITs – real estate investment trusts.
Dividends and interest received in cash during the year amounted to
£1,730,000 and £129,000 respectively (2024: £1,772,000 and £76,000).
Special dividends of £28,000 (2024: £42,000) have been recognised in income
and special dividends of £nil (2024: £49,000) have been recognised in
capital during the year.
4. Investment management fee
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 59 176 235 58 173 231
Investment management fee rebate (36) (11) (47) (34) (18) (52)
--------------- --------------- --------------- --------------- --------------- ---------------
Total 23 165 188 24 155 179
========= ========= ========= ========= ========= =========
Under the terms of the investment management agreement, BFM is entitled to a
fee of 0.6% per annum of the Company’s quarter end market capitalisation.
The investment management fee is allocated 25% to the revenue account and 75%
to the capital account. There is no additional fee for company secretarial and
administration services.
In addition, effective from 1 November 2023, the Company is entitled to a
rebate from the investment management fee charged by the Manager in the event
the Company’s ongoing charges exceed the cap of 1.15% per annum of average
daily net assets. The amount of rebate accrued for the year ended 31 October
2025 amounted to £47,000 (year ended 31 October 2024: £52,000). The rebate,
if any, is offset against management fees and is allocated between revenue and
capital in the ratio of the total of investment management fees and other
operating expenses ongoing charges (as defined in the
Company’s Annual Report for the year ended 31 October 2025) allocated
between revenue and capital during the year.
5. Other operating expenses
2025 2024
£’000 £’000
Allocated to revenue:
Custody fees 1 1
Depositary fees 5 5
Audit fees 1 60 60
Registrars’ fee 35 27
Directors’ emoluments 2 92 92
Marketing fees 13 18
Printing and postage fees 33 47
Legal and professional fees 22 24
London Stock Exchange fee 13 13
FCA fee 8 8
Prior year expenses written back 3 (10) (25)
Other administration costs 39 31
--------------- ---------------
Total revenue expenses 311 301
========= =========
Allocated to capital:
Custody transaction costs 4 7 6
--------------- ---------------
Total capital expenses 7 6
========= =========
Total 318 307
========= =========
2025 2024
% %
Ongoing charges 5 1.15 1.15
========= =========
1 No non-audit services were provided by the Company’s
auditors (2024: none).
2 Further information on Directors’ emoluments can be
found in the Directors’ Remuneration Report in the Company’s Annual Report
for the year ended 31 October 2025.The Company has no employees.
3 Relates to legal and professional fees and other
administration costs written back in the year ended 31 October 2025 (2024:
legal and professional fees, printing and postage fees and other
administration costs).
4 For the year ended 31 October 2025, expenses of £7,000
(2024: £6,000) were charged to the capital account of the Income Statement.
These relate to transaction costs charged by the custodian on sale and
purchase trades.
5 The Company’s ongoing charges are calculated as a
percentage of average daily net assets and using the management fee and all
other operating expenses, excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items. Alternative Performance Measure,
see Glossary in the Company’s Annual Report for the year ended 31 October
2025.
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest on Sterling bank loan 70 210 280 62 185 247
Loan facility fees 21 63 84 1 2 3
--------------- --------------- --------------- --------------- --------------- ---------------
Total 91 273 364 63 187 250
========= ========= ========= ========= ========= =========
Finance costs have been allocated 25% to the revenue account and 75% to the
capital account of the Income Statement.
7. Dividends
Dividends paid on equity shares: Record date Payment date 2025 2024
£’000 £’000
2023 Final dividend of 4.80p 9 February 2024 15 March 2024 – 984
2024 Interim dividend of 2.70p 26 July 2024 3 September 2024 – 538
2024 Final dividend of 4.90p 7 February 2025 14 March 2025 954 –
2025 Interim dividend of 2.70p 25 July 2025 2 September 2025 519 –
--------------- ---------------
Accounted for in the financial statements 1,473 1,522
========= =========
The Directors have proposed a final dividend of 5.00p per share in respect of
the year ended 31 October 2025. The final dividend will be paid, subject to
shareholders’ approval, on 13 March 2026 to shareholders on the Company’s
register on 6 February 2026. The proposed final dividend has not been included
as a liability in these financial statements as final dividends are only
recognised in the financial statements when they have been approved by
shareholders.
The total dividends payable in respect of the year which form the basis of
determining retained income for the purpose of Section 1158 of the Corporation
Tax Act 2010 and Section 833 of the Companies Act 2006, and the amount
proposed for the year ended 31 October 2025, meet the relevant requirements as
set out in this legislation.
Dividends paid or declared on equity shares 2025 2024
£’000 £’000
Interim paid of 2.70p (2024: 2.70p) 519 538
Final proposed of 5.00p 1 (2024: 4.90p) 940 959
--------------- ---------------
Total for the year 1,459 1,497
========= =========
1 Based on 18,793,794 ordinary
shares (excluding treasury shares) in issue on 23 January 2026.
All dividends paid or payable are distributed from the Company’s current
year revenue profits and, if required, from brought forward revenue reserves.
8. Earnings and net asset value per ordinary share
Revenue earnings, capital earnings and net asset value per ordinary
share are shown below and have been calculated using the following:
2025 2024
Net revenue profit attributable to ordinary shareholders (£’000) 1,400 1,454
Net capital profit attributable to ordinary shareholders (£’000) 4,448 5,381
--------------- ---------------
Total profit attributable to ordinary shareholders (£’000) 5,848 6,835
========= =========
Total shareholders’ funds (£’000) 46,715 43,760
========= =========
Earnings per share
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was: 19,351,511 20,193,264
The actual number of ordinary shares in issue at the year end on which the net asset value per ordinary share was calculated was: 18,991,794 19,692,612
Calculated on weighted average number of ordinary shares:
Revenue earnings per share (pence) – basic and diluted 7.23 7.20
Capital earnings per share (pence) – basic and diluted 22.98 26.65
--------------- ---------------
Total earnings per share (pence) – basic and diluted 30.21 33.85
========= =========
As at As at
31 October 31 October
2025 2024
Net asset value per ordinary share (pence) 245.97 222.22
Ordinary share price (pence) 219.00 193.50
========= =========
There were no dilutive securities at the year end (2024: nil).
9. Called up share capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 pence each:
At 31 October 2023 20,603,486 10,081,532 30,685,018 307
Ordinary shares purchased for cancellation (910,874) – (910,874) (9)
--------------- --------------- --------------- ---------------
At 31 October 2024 19,692,612 10,081,532 29,774,144 298
========= ========= ========= =========
Ordinary shares purchased for cancellation (700,818) – (700,818) (7)
At 31 October 2025 18,991,794 10,081,532 29,073,326 291
========= ========= ========= =========
During the year 700,818 ordinary shares (2024: 910,874) were purchased and
subsequently cancelled for a total consideration including expenses of
£1,420,000 (2024: £1,709,000).
Since the year end and up to 23 January 2026, a further 198,000 ordinary
shares have been bought back and cancelled for a total cost including expenses
of £444,000.
The number of ordinary shares in issue at the year end was 29,073,326 (2024:
29,774,144) of which 10,081,532 (2024: 10,081,532) were held in treasury.
10. Reserves
Share Capital Capital Capital Special Revenue
premium redemption reserve reserve reserve reserve
account reserve (arising on (arising on £’000 £’000
£’000 £’000 investments revaluation of
sold) investments
£’000 held)
£’000
At 31 October 2023 14,819 242 7,473 2,793 12,391 2,131
Movement during the year:
Total comprehensive (loss)/income:
Net profit for the year – – 1,629 3,752 – 1,454
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation – 9 – – (1,700) –
Share purchase costs – – – – (9) –
Dividends paid during the year – – – – – (1,522)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 2024 14,819 251 9,102 6,545 10,682 2,063
========= ========= ========= ========= ========= =========
Movement during the year:
Total comprehensive income:
Net (loss)/profit for the year – – (804) 5,252 – 1,400
Transactions with owners, recorded directly to equity:
Ordinary shares purchased for cancellation – 7 – – (1,413) –
Share purchase costs – – – – (7) –
Dividends paid during the year – – – – – (1,473)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 October 2025 14,819 258 8,298 11,797 9,262 1,990
========= ========= ========= ========= ========= =========
The Company’s share premium account was cancelled pursuant to
shareholders’ approval of a special resolution at the Company’s Annual
General Meeting in 2002 and Court approval on 24 January 2002. The share
premium account which totalled £61,852,000 at the time of cancellation was
transferred to a special reserve. This action was taken, in part, to ensure
that the Company had sufficient distributable reserves.
The share premium account and capital redemption reserve of £14,819,000 and
£258,000 (2024: £14,819,000 and £251,000) are not distributable reserves
under the Companies Act 2006. In accordance with ICAEW Technical Release
02/17BL on Guidance on Realised and Distributable Profits under the Companies
Act 2006, the special reserve and capital reserves may be used as
distributable reserves for all purposes and, in particular, the repurchase by
the Company of its ordinary shares and for payments such as dividends. In
accordance with the Company’s Articles of Association, the special reserve,
capital reserves and the revenue reserve may be distributed by way of
dividend. The gain on the capital reserve arising on the revaluation of
investments of £11,797,000 (2024: £6,545,000) is subject to fair value
movements and may not be readily realisable at short notice, as such it may
not be entirely distributable. The investments are subject to financial risks,
as such capital reserves (arising on investments sold) and the revenue reserve
may not be entirely distributable if a loss occurred during the realisation of
these investments.
As at 31 October 2025, the Company’s distributable reserves (excluding
capital reserves on the revaluation of investments) amounted to £19,550,000
(2024: £21,847,000).
11. Valuation of financial instruments
Financial assets and financial liabilities are either carried in the
Balance Sheet at their fair value (investments) or at an amount which is a
reasonable approximation of fair value (due from brokers, dividends and
interest receivable, due to brokers, accruals, cash at bank, bank overdrafts
and bank loans). Section 34 of FRS 102 requires the Company to classify fair
value measurements using a fair value hierarchy that reflects the significance
of inputs used in making the measurements. The valuation techniques used by
the Company are explained in the accounting policies note to the Financial
Statements above.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if
quoted prices are readily available from an exchange, dealer, broker, industry
group, pricing service or regulatory agency and those prices represent actual
and regularly occurring market transactions on an arm’s length basis. The
Company does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for
similar instruments in markets that are considered less than active, or other
valuation techniques where significant inputs are directly or indirectly
observable from market data.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique
includes inputs not based on market data and these inputs could have a
significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices
for similar instruments where significant entity determined adjustments or
assumptions are required to reflect differences between the instruments and
instruments for which there is no active market. The Investment Manager
considers observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary,
and provided by independent sources that are actively involved in the relevant
market.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement. If a fair value
measurement uses observable inputs that require significant adjustment based
on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement
in its entirety requires judgement, considering factors specific to the asset
or liability including an assessment of the relevant risks including but not
limited to credit risk, market risk, liquidity risk, business risk and
sustainability risk. The determination of what constitutes ‘observable’
inputs requires significant judgement by the Investment Manager, and these
risks are adequately captured in the assumptions and inputs used in the
measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is an analysis of the Company’s financial
instruments measured at fair value at the balance sheet date.
Financial assets at fair value through profit or loss Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Equity investments at 31 October 2025 49,569 – – 49,569
Equity investments at 31 October 2024 45,096 – – 45,096
========= ========= ========= =========
There were no transfers between levels of financial assets and financial
liabilities recorded at fair value during the year ended 31 October 2025
(2024: none).
For exchange listed equity investments, the quoted price is the bid price.
Substantially, all investments are valued based on unadjusted quoted market
prices. Where such quoted prices are readily available in an active market,
such prices are not required to be assessed or adjusted for any price related
risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
12. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and
administration services to the Company under a contract which is terminable on
six months’ notice. BFM has (with the Company’s consent) delegated certain
portfolio and risk management services, and other ancillary services, to
BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of
the investment management contract are disclosed in the Directors’ Report in
the Company’s Annual Report for the year ended 31 October 2025.
The investment management fee due for the year ended 31 October 2025 amounted
to £188,000 (2024: £179,000). At the year end, £33,000 was prepaid in
respect of the management fee (2024: outstanding of £122,000).
The Company is entitled to a rebate from the investment management fee charged
by the Manager in the event the Company’s ongoing charges exceeds the cap of
1.15% per annum of average daily net assets. The amount of rebate accrued to
31 October 2025 amounted to £93,000 (2024: £52,000).
In addition to the above services, BIM (UK) has provided the Company with
marketing services. The total fees paid or payable for these services for the
year ended 31 October 2025 amounted to £13,000 including VAT (2024:
£18,000). At the year end, £25,000 including VAT was outstanding in respect
of marketing fees (2024: £29,000).
The Company holds an investment in the BlackRock Institutional Cash Series plc
– Sterling Liquid Environmentally Aware Fund of £3,202,000 (2024:
£2,255,000) which for the year ended 31 October 2025 and 31 October 2024 has
been presented in the financial statements as a cash equivalent. This is a
fund managed by a company within the BlackRock Group. The Company’s
investment in the Cash Fund is held in a share class on which no management
fees are paid to BlackRock to avoid double dipping.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
13. Related party disclosure
At the date of this report, the Board consists of four non-executive
Directors, all of whom are considered to be independent of the Manager by the
Board.
Disclosures of the Directors’ interests in the ordinary shares of the
Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report in the Company’s Annual Report for the year
ended 31 October 2025. At 31 October 2025, £9,000 (2024: £7,000) was
outstanding in respect of Directors’ fees.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates
of BlackRock Inc. (Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who
held more than 20% of the voting shares in issue in the Company and are as a
result, considered to be related parties to the Company (Significant
Investors).
Total % of shares held by Total % of shares held Number of Significant
Related by Significant Investors Investors who are not
BlackRock Funds who are not affiliates affiliates of BlackRock
of BlackRock Group or Group or
BlackRock, Inc. BlackRock, Inc.
As at 31 October 2025 nil n/a n/a
As at 31 October 2024 Nil n/a n/a
========= ========= =========
14. Contingent liabilities
There were £nil contingent liabilities at 31 October 2025 (2024:
£nil).
15. Publication of Non- Statutory Accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The Annual Report and
Financial Statements for the year ended 31 October 2025 will be filed with the
Registrar of Companies after the Annual General Meeting. The figures set out
above have been reported upon by the auditor, whose report for the year ended
31 October 2025 contains no qualification or statement under Section 498(2) or
(3) of the Companies Act 2006.
The comparative figures are extracts from the audited financial statements of
BlackRock Income and Growth Investment Trust plc for the year ended 31 October
2024, which have been filed with the Registrar of Companies, unless otherwise
stated. The report of the auditor on those financial statements contained no
qualification or statement under Section 498 of the Companies Act.
16. Annual Reports
Copies of the Annual Report will be sent to members shortly and will be
available from the registered office c/o The Company Secretary, BlackRock
Income and Growth Investment Trust plc, 12 Throgmorton Avenue, London EC2N
2DL.
17. Annual General Meeting
The Annual General Meeting of the Company will be held at 12 Throgmorton
Avenue, London EC2N 2DL on Tuesday, 17 March 2026 at 12.00 noon.
ENDS
The Annual Report will also be available on the BlackRock website at
blackrock.co.uk/brig. Neither the contents of the Manager's website nor the
contents of any website accessible from hyperlinks on the Manager's website
(or any other website) is incorporated into, or forms part of, this
announcement.
For further information, please contact:
Charles Kilner, Closed End Funds, BlackRock Investment Management (UK) Limited
Tel: 020 7743 3893
Press enquires:
Ed Hooper, Lansons Communications
Tel: 020 7294 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or
EdH@lansons.com
27 January 2026
12 Throgmorton Avenue
London
EC2N 2DL
Release (https://mb.cision.com/Main/22401/4294954/3901821.pdf)
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