Half-year Report
04/05/2023 07:00
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RNS Number : 3258Y Troy Income & Growth Trust Plc 04 May 2023
To:
RNS
From: Troy Income & Growth Trust plc
LEI: 213800HLNMQ1R6VBLU75
Date: 4 May 2023
TROY INCOME & GROWTH TRUST PLC
INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2023
The investment objective of Troy Income & Growth Trust plc is to achieve
rising income and long-term capital growth through investment in a portfolio
of predominantly UK equities.
Financial Highlights
31 March 2023 30 September 2022 Change
Equity shareholders' funds £186,264,000 £193,315,000 (3.6)%
Net asset value per share 72.05p 68.48p 5.2%
Share price (mid-market) 70.60p 67.00p 5.4%
Discount to net asset value (2.0)% (2.2)%
Total Return* (for the periods to 31 March 2023)
Six Months One Year Three Years Five Years
Ten Years
Share price 7.7% (5.0)% 9.5% 11.5% 61.1%
Net asset value per share 8.9% (3.6)% 16.0% 15.8% 68.1%
FTSE All-Share Index 12.3% 2.9% 47.4% 27.9% 75.9%
* Total return includes reinvesting the net dividend in the month that the
share price goes ex-dividend.
INTERIM BOARD REPORT
Introduction
I am pleased to have joined Troy Income and Growth Trust plc ('the Company')
as a non-executive Director and Chair. On behalf of myself and the rest of the
Board, I would like to thank my predecessor, David Warnock, for his committed
stewardship of the Company.
The Company has a clear proposition. It is a UK equity investment trust that
invests in high-quality, predominantly UK-listed companies, capable of
providing dividend growth every year. The Company aims to offer its
Shareholders progressive annual dividend growth and good total returns with
lower share price volatility than the FTSE All Share Index. Uniquely in the
AIC UK Equity Income sector, it also offers Shareholders the ability to
purchase and sell shares in the Company whenever they want at close to net
asset value due to the implementation of a strict discount control mechanism.
Company Aims
Since my arrival, the Board has focused on setting clearer objectives for the
Company and has spent a full day's working session with the Managers to gain
their input. We have agreed the Company will aim to provide the following:
• Share price total return above the FTSE All Share Index over a
5-year period
Recent performance has fallen short of this target, with the portfolio lagging
the wider market return. Calendar year 2022 in particular was a challenging
period, with the rapid rise in interest rates and inflation leading to
significant polarisation within equity markets. Sectors typically eschewed by
the Managers for their cyclicality and capital intensity, particularly Energy
and Mining, performed very strongly. Concurrently, many highly profitable and
growth-oriented companies held in the portfolio suffered share price declines.
The Managers see a considerably more balanced market today, with the
environment well-suited to the Company's quality, dividend growth focused
approach. Recent results and dividends reported by holdings provide
reassurance on the strength of the portfolio and the outlook for returns in a
variety of market scenarios.
• Dividend growth of 4% per annum for Shareholders
Having paid a dividend of 0.5p for the first quarter of the financial year,
the Company paid 0.51p in the second quarter. This represents growth of c.4%
on last year's second quarter dividend. It is the Board's intention going
forward to target annual dividend growth of 4%, market conditions permitting.
Over recent years, the Company's portfolio has evolved. The Managers have
prioritised companies able to deliver progressive dividend growth and sold out
of companies with higher yields that lack the potential for long term dividend
growth. It is encouraging for the Board to see income growth from the
portfolio feeding through to revenues. Given the Managers' confidence in the
robustness of the portfolio's dividends, and the Company's strong revenue
reserves, the Board has decided to increase the rate of dividend growth for
the Company.
• Share price volatility lower than the FTSE All Share Index
The Managers emphasise high-quality, resilient, dividend-paying businesses
that should drive consistent returns, avoiding the worst of market volatility.
In particular, they believe a portfolio suffering fewer and less destructive
drawdowns will be in a better position to compound returns over the long run.
The Company has consistently fared better than the FTSE All-Share Index during
market sell-offs and has continued to provide a return with lower share price
volatility. The discount control mechanism has played an important role in
this, ensuring the Company's share price remains closely aligned with net
asset value.
The Board will closely monitor the Company's progress against these aims and
will report on this in the annual report and accounts.
Performance
The Company delivered a Net Asset Value ('NAV') per share total return of
+8.9% and a share price total return of +7.7% over the six months to 31 March
2023. Over the same period, the FTSE All Share Index produced a total return
of +12.3%. The average NAV total return for the AIC UK Equity Income sector
was +12.6% for the same period. Looking back over time, it has not been
unusual for the Company to lag the index and peers in periods of particularly
strong markets. The two most significant drags were the Company's holdings in
large, low cyclicality Consumer Staples companies, and sterling's strong
appreciation against the dollar impacting the Company's US-listed holdings.
There was strong performance from a range of large, stable holdings within the
portfolio over the six-month period. RELX, Unilever, National Grid, Compass
and AstraZeneca contributed most strongly to returns. Other areas of strength
came from UK domestically focused businesses such as Next and Domino's Pizza,
as these stocks recovered from the dislocation caused by the UK's September
2022 mini-budget. Another notable theme across markets over the period related
to China's re-opening following over two years of strict COVID lockdowns. This
was most obviously manifested within the portfolio by the sharp rise in the
share price of InterContinental Hotels Group, a company with a strong exposure
to Chinese travel. Across the broader index, commodity producers, which the
Company does not hold, were also beneficiaries of this trend.
Background
The market continued to digest the impact of high inflation and higher
interest rates over the six-month period. UK inflation (CPI growth) hit 11.1%
in October 2022, the highest level since the 1970's. Whilst it is likely that
this reading represented peak inflation for this current cycle, the path for
inflation returning to the Bank of England's ('BOE') 2% target is highly
uncertain. In response to such readings, the BOE continued to hike interest
rates. On the 23 March 2023, the UK base rate was raised for the eleventh
consecutive time to 4.25%, having been as low as 0.1% in December 2021.
The magnitude and speed of interest rate rises in response to inflation is
having acute and unpredictable impacts on the market. In September 2022, we
witnessed a crisis in UK pensions. More recently, in March 2023, significant
stress emerged in the US regional banking system. This resulted in Silicon
Valley Bank's collapse, in what was the first major US bank run since the
global financial crisis. Other banks across the world, including Credit
Suisse, suffered varying degrees of contagion and whilst there has been
limited direct read across so far to the UK banks, these events provided a
reminder as to the risks associated with highly levered business models.
The Managers have chosen not to invest in banks, due to the leverage and
cyclicality inherent in their business models. Instead, they seek to invest in
resilient, high-quality dividend growth companies that have relatively lower
levels of share price volatility.
Portfolio
Large, high-quality, low cyclicality businesses continue to make up the core
of the portfolio. Some of the Company's largest allocations include a c.30%
weighting to Consumer Staples (e.g. Unilever, Diageo and Reckitt), c.20% to
non-discretionary B2B-focused businesses (e.g. Compass Group, RELX and Bunzl)
and c.10% to the relatively non-cyclical Healthcare sector (e.g. AstraZeneca
and GSK).
Over the period, the Managers took advantage of market volatility to make new
investments in London Stock Exchange Group, Sage, Smiths Group, Imperial
Brands and Howden Joinery. All five are resilient, leading companies in their
respective industries and have strong balance sheets and well-covered, growing
dividends.
The Managers exited positions in Haleon, Halma and Aveva Group. Aveva was
subject to a bid by its majority shareholder Schneider Electric, following
which the position was sold. Haleon and Halma were sold on valuation and
dividend yield grounds.
While the team follow a long-term, low turnover strategy, they will continue
to seek to improve the growth of capital values and dividends within the
portfolio.
Discount Control Mechanism
The discount control mechanism ('DCM') is one way in which the Company sets
itself apart from other trusts in the sector. The DCM materially improves the
liquidity of the Company's shares and ensures Shareholders can purchase and
sell shares in the Company at a price that closely reflects the NAV. This is
particularly important during times of market stress, where it is not uncommon
for other trusts to trade at a material discount to their NAV's.
The Company has operated the DCM since Troy became the Company's Manager in
2009 and it continues to be a key aspect of the Company's proposition.
Dividends
The Board announced in March that the Company would pay a second interim
dividend of 0.51p per share (2022 - 0.49p). This represents a step up in the
rate of the Company's dividend growth to c.4% compared the prior year's second
interim. Absent any unforeseen circumstances, it is the Board's objective to
maintain this rate of dividend growth going forward.
This increase in the dividend signals the Managers' confidence in the
underlying portfolio and the Board's strong desire to deliver dividend growth
to Shareholders. The Company's dividend growth can be expected to be
sustainable through a wide variety of market environments, with the current
annual dividend covered by almost 11 months of revenue reserves.
Recent corporate results continue to demonstrate strong dividend growth from
some significant portfolio holdings. Highlights included +10% growth in the
final dividends from RELX and InterContinental Hotels Group, +8% from Croda
and LSE Group, and +11% from Bunzl.
Outlook
The Managers believe that the lagged impact of higher interest rates and high
inflation will continue to affect companies, consumers, and certain parts of
the financial system. March brought significant volatility to markets, with
pockets of stress emerging in the US and European banking systems. Regulators
have acted fast to avoid contagion, but after more than a decade of low rates,
the Managers are braced for further speed bumps, as well as possible
recessions in Europe and the US.
The Board is confident that the companies held in the portfolio are resilient
and adaptable. Over recent months, the Managers have digested encouraging
results from a range of the Company's businesses. Strong operations are
feeding through to strong dividend growth from several core holdings; 10%
growth in RELX's latest dividend, 9% from Reckitt, 8% from Croda, and 10% from
Bunzl - the latter marking 30 years of unbroken growth at a 10% compound
annual rate. These are reassuring signals by management teams on the outlook
for their businesses. All of these businesses have proven to be reliable,
long-term income payers over many years, and are typical of the companies
preferred by the Managers. The Board believes that the consistent, compounding
dividend returns possible from such businesses support a robust outlook for
total returns from your Company.
Bridget Guerin
Chairman
3 May 2023
( )
Principal Risks and Uncertainties
The principal risks facing the Company relate to the Company's investment
activities and include performance risk, market risk, resource risk and
operational risk. Other risks faced by the Company include breach of
regulatory rules which could lead to suspension of the Company's Stock
Exchange Listing, financial penalties, or a qualified audit report. Breach of
Section 1159 of the Corporation Tax Act 2010 could lead to the Company being
subject to tax on capital gains.
An explanation of these principal risks and how they are managed is contained
in the Strategic Report within the Annual Report and Accounts for the year
ended 30 September 2022.
The Company's principal risks and uncertainties have not changed materially
since the date of the Annual Report and no material changes are foreseen over
the remainder of the year.
Going Concern
The Directors have undertaken a rigorous review of the Company's ability to
continue as a going concern. This review included consideration of the
Company's investment objective, its principal risks, the nature and liquidity
of the portfolio, current liabilities and expenditure forecasts.
The Company's investments consist mainly of readily realisable securities
which can be sold to maintain adequate cash balances to meet expected cash
flows. In assessing the Company's ability to meet its liabilities as they fall
due, the Directors took into account the economic and market outlook. They
also considered ongoing investor interest in the continuation of the Company,
looking specifically at feedback from meetings and conversations with
Shareholders by the Company's advisers, and the operation of the DCM, which
the Directors believe enhances the Company's appeal to investors.
Based on their assessment and considerations, the Directors believe it is
appropriate to continue to adopt the going concern basis in preparing the
financial statements.
Directors' Responsibility Statement
The Directors are responsible for preparing the half yearly financial report
in accordance with applicable law and regulations. The Directors confirm that
to the best of their knowledge:
- the condensed set of interim financial statements contained within
the half yearly financial report have been prepared in accordance with
International Accounting Standard 34; and
- the Interim Board Report includes a fair review of the information
required by 4.2.7R (indication of important events during the first six months
of the financial year and description of principal risks and uncertainties for
the remaining six months of the year) and 4.2.8R (disclosure of related party
transactions and changes therein) of the FCA's Disclosure Guidance and
Transparency Rules.
The half yearly financial report for the six months to 31 March 2023 comprises
the Interim Board Report, the Directors' Responsibility Statement and a
condensed set of financial statements.
For and on behalf of the Board
Bridget Guerin
Chairman
3 May 2023
STATEMENT OF COMPREHENSIVE INCOME
Six months ended Six months ended
31 March 2023 31 March 2022
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Capital
Gains on investments held at fair value
- 12,337 12,337 - 882 882
Net foreign currency gains - 18 18 - 21 21
Revenue
Income from listed investments 2 2,500 - 2,500 2,601 - 2,601
Other income 7 - 7 - - -
_______ ______ _______ _______ ______ _______
2,507 12,355 14,862 2,601 903 3,504
_______ ______ _______ _______ ______ _______
Expenses
Investment management (187) (347) (534) (258) (479) (737)
fees
Other administrative (324) - (324) (351) - (351)
expenses
Finance costs of borrowing (50) (93) (143) - - -
_______ ______ _______ _______ ______ _______
Profit before taxation 1,946 11,915 13,861 1,992 424 2,416
Taxation 3 (74) - (74) (58) - (58)
_______ ______ _______ _______ ______ _______
Total comprehensive income 1,872 11,915 13,787 1,934 424 2,358
_______ ______ _______ _______ ______ _______
Earnings per Ordinary 5 0.68 4.35 5.03 0.61 0.14 0.75
share (pence) _______ ______ _______ _______ ______ _______
The total column of this statement represents the Statement of Comprehensive
Income prepared in accordance with UK-adopted international accounting
standards.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
No operations were acquired or discontinued during the period.
STATEMENT OF COMPREHENSIVE INCOME Year ended
(CONTINUED) 30 September 2022
(audited)
Revenue Capital Total
Notes £'000 £'000 £'000
Capital
Losses on investments held at fair value - (25,889) (25,889)
Net foreign currency gains - 52 52
Revenue
Income from listed investments 2 6,666 - 6,666
Other income - - -
______ ______ ______
6,666 (25,837) (19,171)
______ ______ ______
Expenses
Investment management fees (465) (864) (1,329)
Other administrative expenses (686) - (686)
Finance costs of borrowing (19) (35) (54)
______ _______ ______
Profit before taxation 5,496 (26,736) (21,240)
Taxation 3 (109) - (109)
______ _______ ______
Total comprehensive income/(expense) 5,387 (26,736) (21,349)
______ _______ ______
Earnings per Ordinary share (pence) 5 1.77 (8.80) (7.03)
______ _______ ______
STATEMENT OF FINANCIAL POSITION
As at As at As at
31 March 31 March 30 September
2023 2022 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Notes
Non-current assets
Investments in ordinary shares 6 189,428 229,141 194,448
______ ______ ______
Investments held at fair value through profit or loss 189,428 229,141 194,448
______ ______ ______
Current assets
Accrued income and prepayments 850 878 890
Trade and other receivables 551 36 3,665
Cash and cash equivalents 3,027 5,388 4,710
______ ______ ______
Total current assets 4,428 6,302 9,265
______ ______ ______
Total assets 193,856 235,443 203,713
Current liabilities
Bank loan (5,000) - (5,000)
Trade and other payables (2,592) (940) (5,398)
______ ______ ______
Total current liabilities (7,592) (940) (10,398)
______ ______ ______
Net assets 186,264 234,503 193,315
______ ______ ______
Issued capital and reserves attributable to
equity holders
Called-up share capital 7 86,878 86,878 86,878
Share premium account 53,817 53,882 53,851
Special reserves - 25,542 9,684
Capital reserve - unrealised 25,317 51,377 18,854
Capital reserve - realised 15,595 11,899 17,152
Revenue reserve 4,657 4,925 6,896
______ ______ ______
Equity shareholders' funds 186,264 243,503 193,315
______ ______ ______
Net asset value per Ordinary share (pence) 5 72.05 77.53 68.48
______ ______ ______
STATEMENT OF CHANGES IN EQUITY
Six months ended 31 March 2023 (unaudited) Share Capital Capital
Share premium Special reserve - reserve - Revenue
capital account reserves unrealised realised reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2022 86,878 53,851 9,684 18,854 17,152 6,896 193,315
Profit and total comprehensive income for the period - - - 6,463 5,452 1,872 13,787
Equity dividends - - - - - (4,111) (4,111)
Shares bought back into treasury - - (16,693) - - - (16,693)
Discount control costs - (34) - - - - (34)
Transfer from capital reserves - - 7,009 - (7,009) - -
______ _______ ______ ______ ______ _______ ______
Balance at 31 March 2023 86,878 53,817 - 25,317 15,595 4,657 186,264
______ _______ ______ ______ ______ _______ ______
Six months ended 31 March 2022 (unaudited) Share Capital Capital
Share premium Special reserve - reserve - Revenue
capital account reserves unrealised realised reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2021 86,878 53,909 38,890 54,428 8,424 6,092 248,621
(Loss)/profit and total comprehensive income for the period - - - (3,051) 3,475 1,934 2,358
Equity dividends - - - - - (3,101) (3,101)
Shares bought back into treasury - - (13,348) - - - (13,348)
Discount control costs - (27) - - - - (27)
______ _______ ______ ______ ______ _______ ______
Balance at 31 March 2022 86,878 53,882 24,542 51,377 11,899 4,925 234,503
______ _______ ______ ______ ______ _______ ______
Year ended 30 September 2022 (audited) Share Capital Capital
Share premium Special reserve - reserve - Revenue
capital account reserves unrealised realised reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2021 86,878 53,909 38,890 54,428 8,424 6,092 248,621
(Loss)/profit and total comprehensive income for the year
- - - (35,574) 8,838 5,387 (21,349)
Equity dividends - - (1,444) - - (4,583) (6,027)
Shares bought back into treasury - - (27,872) - - - (27,872)
Discount control costs - (58) - - - - (58)
Transfer from capital reserves - - 110 - (110) - -
______ ______ ______ ______ ______ ______ ______
Balance at 30 September 2022 86,878 53,851 9,684 18,854 17,152 6,896 193,315
______ _______ ______ ______ ______ _______ ______
The revenue reserve, special reserves and capital reserve - realised are
distributable. The full amount of each of these reserves is available for
distribution.
CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Investment income received 2,570 2,700 6,876
Administrative expenses paid (872) (1,182) (2,140)
______ ______ ______
Cash generated from operations 1,698 1,518 4,736
Finance costs paid (116) - (60)
Taxation (106) (58) (179)
______ ______ ______
Net cash inflows from operating activities 1,476 1,460 4,497
______ ______ ______
Cash flows from investing activities
Purchases of investments (23,280) (14,677) (51,123)
Sales of investments 42,290 30,960 73,668
Capital distributions received from investee companies - - 113
______ ______ ______
Net cash inflow from investing activities 19,010 16,283 22,658
______ ______ ______
Net cash inflow before financing 20,486 17,743 27,155
______ ______ ______
Financing activities
Proceeds from loan - - 5,000
Cost of share buybacks (19,365) (13,199) (25,365)
Dividends paid (2,791) (3,101) (6,027)
Discount control costs (31) (27) (56)
______ ______ ______
Net cash outflows from financing activities (22,187) (16,327) (26,448)
______ ______ ______
Net (decrease)/increase in cash and cash equivalents (1,701) 1,416 707
Cash and cash equivalents at the start of the period 4,710 3,951 3,951
Effect of foreign exchange rate changes 18 21 52
______ ______ ______
Cash and cash equivalents at the end of the period 3,027 5,388 4,710
______ ______ ______
Reconciliation of operating profit to operating cash flows
Profit/(loss) before taxation 13,861 2,416 (21,240)
Add interest payable 143 - 54
Adjustments for:
(Gains)/losses on investments (12,337) (882) 25,889
Currency gains (18) (21) (52)
Decrease in accrued income and prepayments 62 89 200
Decrease in trade and other payables (13) (84) (115)
______ ______ ______
Cash generated from operations 1,698 1,518 4,736
______ ______ ______
Distribution of Assets and Liabilities
Valuation at Valuation at
30 September 31 March
2022 2023
Purchases Sales Appreciation/
(depreciation)
£'000 % £'000 £'000 £'000 £'000 %
Listed investments
Ordinary shares 194,448 100.6 21,819 (39,176) 12,337 189,428 101.7
Current assets 9,265 4.8 4,428 2.4
Current liabilities (10,398) (5.4) (7,592) (4.1)
______ _____ ______ _____
Net assets 193,315 100.0 186,264 100.0
______ _____ ______ _____
Net asset value per share 68.48p 72.05p
______ ______
NOTES TO THE ACCOUNTS
1. Accounting policies
(a) Basis of accounting
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) IAS 34 - 'Interim Financial Reporting',
as adopted by the International Accounting Standards Board (IASB), and
interpretations issued by the International Financial Reporting
Interpretations Committee of the IASB (IFRIC). They have also been prepared
using the same accounting policies applied for the year ended 30 September
2022 financial statements
(b) Dividends payable
Dividends are recognised on the ex-dividend date.
2. Income Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September
£'000 £'000 2022
£'000
Income from listed investments
UK dividend income 1,950 2,221 5,783
Overseas dividend income 550 380 883
______ ______ ______
2,500 2,601 6,666
______ ______ ______
Other income from investment activity
Deposit interest 7 - -
______ ______ ______
Total income 2,507 2,601 6,666
______ ______ ______
3. Taxation
The taxation charge for the period represents withholding tax suffered on
overseas dividend income.
4. Revenue and Dividends
The following table shows the revenue for each period less the dividends
declared and payable from revenue in respect of the financial period to which
they relate.
Six months ended Six months ended Year
31 March 31 March ended
2023(*) 2022(+) 30 September
£'000 £'000 2022(++)
£'000
Revenue 1,872 1,934 5,387
Dividends declared and payable from revenue (2,700) (3,017) (4,430)
______ ______ ______
(828) (1,083) 957
______ ______ ______
(*) Dividends declared relate to the first two interim dividends (of 0.50p and
0.51p) declared in respect of the financial year 2022/2023.
(+) Dividends declared relate to the first two interim dividends (both 0.49p)
declared in respect of the financial year 2021/2022.
(++) Dividends declared relate to the first, second and fourth interim
dividends declared in respect of the financial year 2021/2022 totalling 1.48p
and paid from revenue. The third interim dividend of 0.49p was paid from the
distributable capital reserve.
Six months ended Six months ended Year
31 March 2023 31 March 2022 ended
30 September
2022
5. Return and net asset value per share p p p
Revenue return 0.68 0.61 1.77
Capital return 4.35 0.14 (8.80)
______ ______ ______
Total return 5.03 0.75 (7.03)
______ ______ ______
The figures above are based on the following:
£'000 £'000 £'000
Revenue return 1,872 1,934 5,387
Capital return 11,915 424 (26,736)
______ ______ ______
Total return 13,787 2,358 (21,349)
______ ______ ______
Weighted average number of Ordinary shares in issue 273,794,251 313,192,468 303,874,343
__________ __________ __________
The net asset value per share is based on net assets attributable to
shareholders of £186,264,000 (31 March 2022 - £234,503,000; 30 September
2022 - £193,315,000) and on 258,507,487 (31 March 2022 - 302,462,487; 30
September 2022 - 282,284,487) Ordinary shares in issue at the period end.
6. Financial instruments
Level 1 Level 2 Level 3
£'000 £'000 £'000 2023
Total
£'000
Financial assets at fair value through profit or
loss as at 31 March 2023
Investments 189,428 - - 189,428
______ ______ ______ ______
In accordance with International Financial Reporting Standards, investments
are classified using the fair value hierarchy:
Level 1 reflects financial instruments quoted in an active market.
Level 2 reflects financial instruments the fair value of which is evidenced by
comparison with other observable current market transactions in the same
instrument or based on a valuation technique whose variables include only data
from observable markets.
Level 3 reflects financial instruments the fair value of which is determined
in whole or in part using a valuation technique based on assumptions that are
not supported by prices from observable market transactions in the same
instrument and not based on available observable market data.
There were no transfers of investments between levels during the six months
ended 31 March 2023.
The fair value of the Company's financial assets and liabilities as at 31
March 2023 was not materially different from the carrying value.
As at As at As at
31 March 2023 31 March 2022 30 September 2022
(unaudited) (unaudited) (audited)
7. Ordinary share capital
No. of shares No. of shares No. of shares
Ordinary shares of 25p each
Allotted, called-up and fully paid 258,507,487 302,462,487 282,284,487
Held in treasury 89,004,500 45,049,500 65,227,500
____________ ____________ ___________
347,511,987 347,511,987 347,511,987
____________ ____________ ____________
During the six months to 31 March 2023, the six months to 31 March 2022 and
the year to 30 September 2022, the Company did not issue any new shares and no
shares were re-issued from treasury.
During the six months to 31 March 2023 23,777,000 shares were repurchased by
the Company at a total cost of £16,693,000 and placed in treasury. During the
six months to 31 March 2022 17,426,500 shares were repurchased by the Company
at a total cost of £13,348,000 and placed in treasury. During the year to 30
September 2022 37,604,500 shares were repurchased by the Company at a total
cost of £27,872,000 and placed in treasury.
During the six months to 31 March 2023, the six months to 31 March 2022 and
the year to 30 September 2022, no Ordinary shares were purchased for
cancellation.
8. Transaction costs
During the period expenses were incurred in acquiring or disposing of
investments classified as held at fair value through profit or loss. These
have been expensed through capital and are included within profits on
investments in the Statement of Comprehensive Income. The total costs were as
follows:
Six months ended Six months ended Year
31 March 2023 31 March 2022 ended
£'000 £'000 30 September 2022
£'000
Purchases 92 70 243
Sales 14 11 29
______ ______ ______
106 81 272
______ ______ ______
9. Publication of non-statutory accounts
The financial information contained in this Half Yearly Financial Report does
not constitute statutory accounts as defined in Sections 434-436 of the
Companies Act 2006. The financial information for the six months ended 31
March 2023 and 31 March 2022 has not been audited.
The information for the year ended 30 September 2022 has been extracted from
the latest published audited financial statements which have been filed with
the Registrar of Companies. The report of the auditors on those accounts
contained no qualification or statement under Section 498 (2), (3) or (4) of
the Companies Act 2006.
10. Approval
This Half Yearly Financial Report was approved by the Board on 3 May 2023.
11. This Half Yearly Financial Report will shortly be available for viewing on the
Company's website (www.tigt.co.uk) and will be posted to shareholders in May
2023.
For Troy Income & Growth Trust plc
Juniper Partners Limited, Company Secretary
3 May 2023
Enquiries: 0131 378 0500
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