REG - Troy Inc & Gwth Plc - Half-year Report

Troy Income & Growth TrustAnnouncement

25/04/2019 07:00

RNS Number : 0033X
Troy Income & Growth Trust Plc
25 April 2019
 


 
TROY INCOME & GROWTH TRUST PLC
LEI: 213800HLNMQ1R6VBLU75
 
INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2019
 
The investment objective of Troy Income & Growth Trust is to provide shareholders with an attractive income yield and the prospect of income and capital growth through investing in a portfolio of predominantly UK equities.
 




Financial Highlights


 


 


 




 


31 March 2019


30 September 2018


Change




Equity shareholders' funds


£223,731,000


£224,058,000


-0.1%




 


 


 


 




Net asset value per share


78.51p


79.04p


-0.7%




 


 


 


 




Share price (mid-market)


79.00p


78.30p


+0.9%




 


 


 


 




Premium/(discount) to net asset value


0.6%


(0.9)%


 




 


 


 


 




 




Total Return* (for the periods to 31 March 2019)




 


Six Months


One Year


Three Years


Five Years


 
From 31 July 2009**




 


 


 


 


 


 




Share price


+2.8%


+9.5%


+20.2%


+46.2%


+207.5%




 


 


 


 


 


 




Net asset value per share


+1.6%


+10.3%


+21.3%


+47.4%


+185.0%




 


 


 


 


 


 




FTSE All-Share Index


-1.8%


+6.4%


+31.3%


+34.5%


+138.4%




 


 


 


 


 


 




* Total return includes reinvesting the net dividend in the month that the share price goes ex-dividend.
** Appointment of Troy Asset Management Limited as Manager.


 




 
INTERIM BOARD REPORT AS AT 31 MARCH 2019
 
Performance
The Company delivered a Net Asset Value (NAV) total return of +1.6% over the six months to 31 March 2019 while over the same period the share price total return was +2.8%. The difference between the two reflects the movement from a discount of 0.9% at the end of September to a premium of 0.6% at the end of March. Over the same period the FTSE All-Share Index produced a total return of -1.8%. Over the twelve months to 31 March 2019 the NAV total return of +10.3% and share price total return of +9.5% were also ahead of the FTSE All-Share Index which returned +6.4%.
 
The Board remains predominantly interested in long-term performance and, although over the three years to 31 March 2019 the NAV total return of +21.3% compares less favourably with +31.3% for the FTSE All-Share Index, over five years the Company's NAV total return of +47.4% compares very favourably to +34.5% for the FTSE All-Share Index.
 
The final quarter of 2018 saw sharp equity market declines, with the FTSE All-Share Index falling -10.2%. This was followed by a rapid recovery in the first three months of 2019, during which the UK equity market rose +9.4%. The outperformance of the broader market and its peer group by the Company during the six month period came as the portfolio participated less (70%) in the market decline than it did in the subsequent rally (97%). The Managers have consistently sought to deliver such a return profile, and it has been a feature of their performance since their appointment nearly ten years ago.
 
The Company increased the aggregate of the first and second interim dividends by +3.8% to 1.37p (a quarterly rate of 0.685p) when compared to the equivalent dividends in the previous year.
 
Background
The weakness suffered across many European and Asian equity markets over the summer became more entrenched during the fourth quarter. Quantitative Tightening (the unwinding of Quantitative Easing), a deteriorating global trade environment and weakening economic data applied downward pressure on an already faltering UK equity market. The fourth quarter also saw the hitherto unaffected S&P 500 Index finally capitulate and fall some -14.3% on a total return basis. At the same time, the Chicago Board Options Exchange Volatility Index, or VIX, which measures volatility, rose to levels last seen in the early 2018 correction.
 
While it seemed in the closing months of 2018 as if investors may be facing a more prolonged downturn, this view did not persist into the New Year, as it became apparent that the Federal Reserve would again choose to bail out investors. Dovish statements by members of the Federal Reserve's monetary policy board signified a significant change in stance; rolling back on two presumed rate rises for 2019 to zero. Speculation abounded that they may even be forced to announce a cut. Persistently robust corporate earnings and a change in the mood music relating to US-China trade further fuelled the sharp first-quarter rebound during which the S&P 500 Index climbed +13.7%.
 
During the early months of 2019 the UK equity market moved increasingly to price in a relatively benign Brexit outcome. Domestically focussed equities, including many UK banks and retailers, rose particularly strongly and sterling also hit a nine-month high of 1.33 to the dollar as the prospect of a 'no deal' appeared to ebb. With a number of failed votes on Theresa May's deal and some alternative paths, the Chancellor's spring statement provided the welcome news that the UK economy has been 'remarkably robust'. In response the Bank of England voted unanimously at the March meeting to maintain UK interest rates at 0.75%, stating that "the economic outlook [for the UK] will continue to depend significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond."
 
Management Fee
In January the Board announced a reduction in the annual management fee payable to Troy Asset Management, the Company's investment manager. With effect from 1 January 2019, the Company moved to a flat annual management fee of 0.65% of net assets. This compares to the previous tiered fee of 0.75% of net assets up to £175 million and 0.65% of net assets above £175 million. The Board remains committed to ensuring the Company's ongoing charges are competitive.
 
Discount Control Mechanism
The DCM was active for both buyers and sellers during the period with the Company issuing a net total of 1,500,000 shares from treasury. 2,550,000 shares were issued at a small premium to Net Asset Value and 1,050,000 shares were repurchased at a small discount. All transactions are NAV enhancing and provide additional liquidity to Shareholders. The DCM also reduces discount volatility which remains much lower than for the peer group as a whole.  
 
Gearing
The £20 million gearing facility with ING was renewed on 24 April 2019 for a further two years. The facility was not utilised during the period but remains available if appropriate investment opportunities arise.
 
Dividends
The current quarterly dividend rate is 0.685p and the second quarterly dividend will be paid on 26 April 2019. As in previous years the Board will consider an uplift to the final quarterly dividend before the year end on 30 September.
 
Outlook
Over the past six months, Sino-US trade talks, the Fed's rate decisions and the thoroughly time-worn subject of Brexit have featured heavily on market sentiment. As the Company passes its half-year, uncertainty still abounds in regards to at least two of these issues. Meanwhile, increasingly frequent pieces of weak economic data remind investors that we are likely in the latter stages of a mature bull market. As a result, the Managers remain cautiously positioned as we look to the rest of the year.
 
In the case of Brexit, it is important to note that the Company is not positioned to be on one side of a binary outcome. Parts of the portfolio stand to benefit from a continuing upswing in sentiment towards the UK. However, at the same time, the portfolio retains substantial holdings in core global defensive businesses, reflecting concerns of further market instability. A balance between exposure to the UK domestic economy and resilient dollar earnings continues to seem prudent.
 
Underpinning the Company's core of quality defensive investments are yields and valuations which, despite reservations about the broad market rating, are considerably more attractive than those experienced two years ago. Consequently, the Board and Managers are relatively more optimistic about some of the long-term returns available to the Company's Shareholders and the underlying portfolio's ability to preserve the value of their capital.
 
 
David Warnock
Chairman
24 April 2019
 
 
Principal Risks and Uncertainties
The principal risks facing the Company relate to the Company's investment activities and include performance and market risk, resource risk and operational risk. The underlying risks and potential increased volatility associated with Brexit and other global political situations are considered within market 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 2018.
The Company's principal risks and uncertainties have not changed since the date of the Annual Report and are not expected to change for the remaining six months of the Company's financial year.
 
Going Concern
Having considered the Company's investment objectives, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, the Directors believe that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. For these reasons, they consider there is reasonable evidence to continue to adopt the going concern basis in preparing the accounts.
 
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 2019 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements.
For and on behalf of the Board
 
David Warnock
Chairman
24 April 2019 
 




STATEMENT OF COMPREHENSIVE INCOME


 




 


 


Six months ended
31 March 2019
(unaudited)


Six months ended
31 March 2018
(unaudited)




 


 




 


 




 


 


Revenue


Capital


Total


Revenue


Capital


Total




 


Notes


£'000


£'000


£'000


£'000


£'000


£'000




Loss on investments held at fair value


 


 


 


 


 


 


 




 


-


(194)


(194)


-


(12,510)


(12,510)




Currency losses


 


-


-


-


-


(3)


(3)




Income


2


3,694


-


3,694


4,180


-


4,180




Investment management


 


 


 


 


 


 


 




fees


 


(258)


(479)


(737)


(284)


(528)


(812)




Other administrative


 


 


 


 


 


 


 




expenses


 


(250)


-


(250)


(248)


-


(248)




Finance costs of borrowing


 


(9)


(16)


(25)


(9)


(16)


(25)




 


 


_______


______


_______


_______


______


_______




Profit/(loss) before taxation


 


3,177


(689)


2,488


3,639


(13,057)


(9,418)




Taxation


3


(41)


-


(41)


(33)


-


(33)




 


 


_______


______


_______


_______


______


_______




Profit/(loss) for the period


 


3,136


(689)


2,447


3,606


(13,057)


(9,451)




 


 


_______


______


_______


_______


______


_______




Earnings per Ordinary


 


 


 


 


 


 


 




share (pence)


5


1.11


(0.24)


0.87


1.25


(4.52)


(3.27)




 


 


_______


______


_______


_______


______


_______




 




The "Profit for the period" is also the Total Comprehensive Income for the period as defined in IAS1 (revised).
The total columns of this statement represent the Statement of Comprehensive Income prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. 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
(CONTINUED)


Year ended
30 September 2018
(audited)




 


 


Revenue


Capital


Total




 


Notes


£'000


£'000


£'000




Profits on investments held at fair value


 


-


1,927


1,927




Currency losses


 


-


(6)


(6)




Income


2


9,040


-


9,040




Investment management fees


 


(569)


(1,057)


(1,626)




Other administrative expenses


 


(476)


-


(476)




Finance costs of borrowing


 


(17)


(33)


(50)




 


 


______


_______


______




Profit before taxation


 


7,978


831


8,809




Taxation


3


(127)


-


(127)




 


 


______


_______


______




Profit for the period


 


7,851


831


8,682




 


 


______


_______


______




Earnings per Ordinary share (pence)


5


2.73


0.29


3.02




 


 


______


_______


______




 
 




STATEMENT OF FINANCIAL POSITION


 


 


 


 




 


 


As at
31 March
2019
(unaudited)
£'000


          As at
31 March
2018
(unaudited)
£'000


              
As at
30 September
2018
(audited)
£'000




 


 




 


 




 


 




 


 
 
Notes




Non-current assets


 


 


 


 




Ordinary shares


 


216,596


206,183


213,743




 


 


______


______


______




Investments held at fair value through profit or loss


 


216,596


206,183


213,743




 


 


______


______


______




Current assets


 


 


 


 




Accrued income and prepayments


 


778


793


642




Cash and cash equivalents


 


8,570


7,356


10,343




 


 


______


______


______




Total current assets


 


9,348


8,149


10,985




 


 


______


______


______




Total assets


 


225,944


214,332


224,728




Current liabilities


 


 


 


 




Trade and other payables


 


(2,213)


(521)


(670)




 


 


______


______


______




Total current liabilities


 


(2,213)


(521)


(670)




 


 


______


______


______




Net assets


 


223,731


213,811


224,058




 


 


______


______


______




Issued capital and reserves attributable to


 


 


 


 




equity holders


 


 


 


 




Called-up share capital


7


72,699


72,699


72,699




Share premium account


 


23,112


23,132


23,124




Special reserves


 


58,949


61,917


57,831




Capital reserve


8


63,812


50,613


64,501




Revenue reserve


 


5,159


5,450


5,903




 


 


______


______


______




Equity shareholders' funds


 


223,731


213,811


224,058




 


 


______


______


______




Net asset value per Ordinary share (pence)


5


78.51


74.04


79.04




 


 


______


______


______




 
 




STATEMENT OF CHANGES IN EQUITY


 


 




 


 


 


 


 


 


 




Six months ended 31 March 2019 (unaudited)


 


Share


 


 


 


 




 


Share


premium


Special


Capital


Revenue


 




 


capital


account


reserves


reserve


reserve


Total




 


£'000


£'000


£'000


£'000


£'000


£'000




Balance at 1 October 2018


72,699


23,124


57,831


64,501


5,903


224,058




(Loss)/profit and total comprehensive income for the period


-


-


-


(689)


3,136


2,447




Equity dividends


-


-


-


-


(3,880)


(3,880)




Shares bought back into treasury


-


-


  (781)


-


-


(781)




Shares issued from treasury


-


5


1,899


-


-


1,904




Discount control costs


-


 (17)


 -


 -


 -


 (17)




 


______


_______


______


______


_______


______




Balance at 31 March 2019


72,699


23,112


58,949


63,812


5,159


223,731




 


______


_______


______


______


_______


______




 


 


 


 


 


 


 




Six months ended 31 March 2018 (unaudited)


 


Share


 


 


 


 




 


Share


premium


Special


Capital


Revenue


 




 


capital


account


reserves


reserve


reserve


Total




 


£'000


£'000


£'000


£'000


£'000


£'000




Balance at 1 October 2017


72,699


23,149


63,504


63,670


5,670


228,692




(Loss)/profit and total comprehensive income for the period


-


-


-


(13,057)


3,606


(9,451)




Equity dividends


-


-


-


-


(3,826)


(3,826)




Shares bought back into treasury


-


-


  (2,500)


-


-


(2,500)




Shares issued from treasury


-


 -


913


-


-


913




Discount control costs


-


 (17)


 -


 -


 -


 (17)




 


______


_______


______


______


_______


______




Balance at 31 March 2018


72,699


23,132


61,917


50,613


5,450


213,811




 


______


_______


______


______


_______


______




 


 


 


 


 


 


 




Year ended 30 September 2018 (audited)


 


Share


 


 


 


 




 


Share


premium


Special


Capital


Revenue


 




 


capital


account


reserves


reserve


reserve


Total




 


£'000


£'000


£'000


£'000


£'000


£'000




Balance at 1 October 2017


72,699


23,149


63,504


63,670


5,670


228,692




Profit and total comprehensive income for the year


-


-


-


831


7,851


8,682




Equity dividends


-


-


-


-


(7,618)


(7,618)




Shares bought back into treasury


-


-


(6,893)


-


-


(6,893)




Shares issued from treasury


-


8


1,220


-


-


1,228




Discount control costs


-


(33)


_


_


-


(33)




 


______


_______


______


______


_______


______




Balance at 30 September 2018


72,699


23,124


57,831


64,501


5,903


224,058




 


______


_______


______


______


_______


______




 
 
 




CASH FLOW STATEMENT


 


 


 




 


Six months
ended
31 March
2019
(unaudited)
£'000


Six months
ended
31 March
2018
(unaudited)
£'000


Year
ended
30 September
2018
(audited)
£'000




 




 




 




 




 




Cash flows from operating activities


 


 


 




Investment income received


3,552


4,025


9,047




Administrative expenses paid


(1,060)


(1,047)


(2,083)




 


______


______


______




Cash generated from operations


2,492


2,978


6,964




Finance costs paid


(25)


(25)


(50)




Taxation


(41)


(33)


(127)




 


______


______


______




Net cash inflows from operating activities


2,426


2,920


6,787




 


______


______


______




Cash flows from investing activities


 


 


 




Purchases of investments


(11,106)


(24,285)


(34,061)




Sales of investments


9,815


21,916


38,568




Realised gain on forward currency contracts


-


149


149




 


______


______


______




Net cash (outflow)/inflow from investing activities


(1,291)


(2,220)


4,656




 


______


______


______




Net cash inflow before financing


1,135


700


11,443




 


______


______


______




Financing activities


 


 


 




Proceeds of issue of shares


1,904


913


1,228




Cost of share buybacks


(915)


(2,500)


(6,759)




Dividends paid


(3,880)


(3,825)


(7,618)




Costs incurred on issue of new shares


(17)


(17)


(33)




 


______


______


______




Net cash outflow from financing activities


(2,908)


(5,429)


(13,182)




 


______


______


______




Net decrease in cash and short term deposits


(1,773)


(4,729)


(1,739)




Cash and short term deposits at the start of the period


10,343


12,088


12,088




Effect of foreign exchange rate changes


-


(3)


                   (6)  




 


______


______


______




Cash and short term deposits at the end of the period


8,570


7,356


10,343




 


______


______


______




Reconciliation of operating profit to operating cash flows


 


 


 




Profit/(loss) before taxation


2,488


(9,418)


8,809




Add interest payable


25


25


50




Adjustments for:


 


 


 




Loss/(gains) on investments


194


12,510


(1,927)




Currency losses


-


3


6




(Increase)/decrease in accrued income and prepayments


(135)


(149)


4




(Decrease)/increase in trade and other payables


(80)


7


22




 


______


______


______




Cash generated from operations


2,492


2,978


6,964




 


______


______


______



 
 
 
 
 



 




Distribution of Assets and Liabilities


 


 




 


Valuation at
30 September
2018


 


 


 


Valuation at
31 March
2019




 


 


 


 
 




 


Purchases


Sales


Appreciation/
(depreciation)




 


£'000


%


£'000


£'000


£'000


£'000


%




Listed investments


 


 


 


 


 


 


 




Ordinary shares


213,743


95.4


12,862


(9,815)


(194)


216,596


   96.8




Current assets


10,985


4.9


 


 


 


9,348


4.2




Current liabilities


(670)


(0.3)


 


 


 


(2,213)


(1.0)




 


______


_____


 


 


 


______


_____




Net assets


224,058


100.0


 


 


 


223,731


100.0




 


______


_____


 


 


 


______


_____




Net asset value per share


79.04p


 


 


 


 


78.51p


 




 


______


 


 


 


 


______


 




 




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 2018 financial statements.




 


(b)


Dividends payable




 


 


Dividends are recognised on the ex-dividend date.



 
 
 
 
 



 




2.


Income


Six months ended
31 March
2019
£'000


Six months ended
31 March
2018
£'000


Year
 ended
30 September
2018
£'000




 


 




 


 




 


 




 


Income from listed investments


 


 


 




 


UK dividend income


3,422


3,954


8,405




 


Overseas dividend income


270


225


633




 


 


______


______


______




 


 


3,692


4,179


9,038




 


 


______


______


______




 


Other income from investment activity


 


 


 




 


Deposit interest


2


-


1




 


Underwriting income


-


1


1




 


 


______


______


______




 


Total income


3,694


4,180


9,040




 


 


______


______


______




 




3.


Taxation


 




 


The taxation charge for the period represents withholding tax suffered on overseas dividend income.




 




4.


The following table shows the revenue for each period less the dividends declared in respect of the financial period to which they relate.


 




 


 


Six months ended
31 March
2019*
£'000


Six months ended
31 March
2018+
£'000


Year
 ended
 30 September
2018++
£'000




 


 




 


 




 


 




 


 


 


 


 




 


Revenue


3,136


3,606


7,851




 


Dividends declared


(3,892)


(3,812)


(7,639)




 


 


______


______


______




 


 


(756)


(206)


212




 


 


______


______


______




 


 


 


 


 




 


* Dividends declared relate to the first two interim dividends (both 0.685p) declared in respect of the financial year 2018/2019.


 




 


+ Dividends declared relate to the first two interim dividends (both 0.66p) declared in respect of the financial year 2017/2018.


 




 


++ Dividends declared relate to the four interim dividends declared in respect of the financial year 2017/2018 totalling 2.665p.


 



 
 
 
 
 
 







 


 


Six months ended
31 March 2019


Six months ended
31 March 2018


Year
 ended
30 September
 2018




 


 




5.


Return and net asset value per share


p


p


p




 


Revenue return


1.11


1.25


2.73




 


Capital return


(0.24)


(4.52)


0.29




 


 


______


______


______




 


Total return


0.87


(3.27)


3.02




 


 


______


______


______




 


The figures above are based on the following:


 


 


 




 


 


£'000


£'000


£'000




 


Revenue return


3,136


3,606


7,851




 


Capital return


(689)


(13,057)


831




 


 


______


______


______




 


Total return


2,447


(9,451)


8,682




 


 


______


______


______




 


Weighted average number of Ordinary shares in issue


 


 


 




 


 


283,525,721


289,198,578


287,811,840




 


 


__________


__________


__________




 
 
 
 
 
 


 
The net asset value per share is based on net assets attributable to shareholders of £223,731,000 (31 March 2018 - £213,811,000; 30 September 2018 - £224,058,000) and on 284,989,045 (31 March 2018 - 288,769,045; 30 September 2018 - 283,489,045) Ordinary shares in issue at the period end.




 




6.


Financial instruments


 


 


 


 




 


 


 


 


 


 




 


 


 


 


 


 




 


 


Level 1
£'000


Level 2
£'000


Level 3
£'000


2019
Total
£'000




 


Financial assets at fair value through profit or loss as at 31 March 2019


 


 


 


 




 


Investments


216,596


-


-


216,596




 


 


______


______


______


______




 




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 2019.




 


 


 


 


 




The fair value of the Company's financial assets and liabilities as at 31 March 2019 was not materially different from the carrying value.




 




 


 


As at
31 March 2019
(unaudited)


As at
31 March 2018
(unaudited)


As at
30 September 2018
(audited)




7.


Ordinary share capital


 


 


 




 


 
Ordinary shares of 25p each


No. of shares


No. of    shares


No. of shares




 


Allotted, called-up and fully paid


284,989,045


288,769,045


283,489,045




 


Held in treasury


5,805,000


2,025,000


7,305,000




 


 


____________


____________


___________




 


 


290,794,045


290,794,045


290,794,045




 


 


____________


____________


____________




 


 


 


 


 




 


During the six months ended 31 March 2019 there were 1,050,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £781,000 and placed in treasury. During the six months ended 31 March 2018 there were 3,225,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £2,500,000 and placed in treasury. During the year ended 30 September 2018 there were 9,630,000 Ordinary shares of 25p each repurchased by the Company at a total cost of £6,893,000 and placed in treasury.
During the six months ended 31 March 2019 there were 2,550,000 Ordinary shares re-issued from treasury for total proceeds of £1,904,000. During the six months ended 31 March 2018 there were 1,200,000 Ordinary shares re-issued from treasury for total proceeds of £913,000. During the six months ended 30 September 2018 there were 2,325,000 Ordinary shares re-issued from treasury for total proceeds of £1,228,000.
During the six months to 31 March 2019, the six months to 31 March 2018 and the year to 30 September 2018 there were no new Ordinary shares issued by the Company and no Ordinary shares purchased for cancellation.










8.


Capital reserve




 


The capital reserve shown in the Statement of Financial Position at 31 March 2019 includes gains of £47,628,000 (31 March 2018 - gains of £39,008,000; 30 September 2018 - gains of £49,494,000) which relate to the revaluation of investments held at the reporting date.




 




9.


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 gains on investments in the Statement of Comprehensive Income. The total costs were as follows:




 


 


Six months ended
31 March 2019
£'000


Six months ended
31 March 2018
£'000


Year
 ended
30 September 2018
£'000




 


 




 


 




 


Purchases


63


100


138




 


Sales


5


17


25




 


 


______


______


______




 


 


68


117


163




 


 


______


______


______



 
 
 
 
 
 
 
 



 
 




10.


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 2019 and 31 March 2018 has not been audited.




 


The information for the year ended 30 September 2018 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.




 




11.


Approval




 


This Half Yearly Financial Report was approved by the Board on 24 April 2019.




 
 




12.


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 2019.




 




For Troy Income & Growth Trust plc
PATAC Limited, Company Secretary
24 April 2019
Enquiries: 0131 538 1400




 




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END
 
 
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