Finsbury Growth & Income Trust PLC
Unaudited Half Year Results For The Six Months Ended
31 March 2025
This Announcement is not the Company’s Half Year Report & Accounts. It is an abridged version of the Company’s full Half Year Report & Accounts for the six months ended 31 March 2025. The full Half Year Report & Accounts, together with a copy of this announcement, will shortly be available on the Company’s website at www.finsburygt.com where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.
The Company’s Half Year Report & Accounts for the six months ended 31 March 2025 has been submitted to the UK Listing Authority, and will shortly be available for inspection on the National Storage Mechanism (NSM): https://data.fca.org.uk/#/nsm/nationalstoragemechanism
COMPANY PERFORMANCE
| As at 31st March 2025 | As at 30th September 2024 | % Change | |
| Net Asset Value Per Share† | 952.4p | 943.4p | 1.0% |
| Net Asset value per share total return* | 2.1% | 8.2% | |
| Share price total return* | 4.2% | 3.4% | |
| Share price | 886.0p | 861.0p | 2.9% |
| Shareholders’ funds† | £1.383bn | £1.582bn | (12.6%) |
| First interim dividend per share | 8.8p | 8.8p | – |
| Discount of share price to net asset value per share | 7.0% | 8.7% | |
| Ongoing charges p.a. | 0.6% | 0.6% | |
| Net cash | 3.2% | 0.7% geared | |
| Return per share† | 12.7p | 45.6p | |
| Active Share* | 84.4% | 84.1% | |
| Number of shares in issue | 145,224,192^ | 167,717,668^^ | (13.4%) |
† UK GAAP Measure
* Source – Morningstar
** Source – FTSE International Limited (“FTSE”)
^ excluding 79,767,111 shares held in Treasury
^^ excluding 57,273,635 shares held in Treasury
COMPANY SUMMARY
Finsbury Growth & Income Trust PLC is a listed investment company; its shares traded on the main market of the London Stock Exchange. The Company is a member of the Association of Investment Companies (“AIC”).
INVESTMENT OBJECTIVE AND PERFORMANCE MEASUREMENT
The Company aims to achieve capital and income growth and to provide Shareholders with a total return in excess of that of the FTSE All-Share Index (the Company’s benchmark).
INVESTMENT POLICY
The Company’s investment policy is to invest principally in the securities of companies either listed in the UK or otherwise incorporated, domiciled or having significant business operations within the UK. Up to a maximum of 20% of the Company’s portfolio, at the time of acquisition, can be invested in companies not meeting these criteria.
The portfolio will normally comprise up to 30 investments. This level of concentration is likely to lead to an investment return which is materially different from the Company’s benchmark index and is likely to be more volatile and carry more risk*
Unless driven by market movements, securities in FTSE 100 companies and comparable companies listed on an overseas stock exchange will normally represent between 50% and 100% of the portfolio; securities in FTSE 350 companies and comparable companies listed on overseas stock exchanges will normally represent at least 70% of the portfolio.
The Company will not invest more than 15% of the Company’s net assets, at the time of acquisition, in the securities of any single issuer. For the purposes of this limit only, net assets shall exclude the value of the Company’s investment in Frostrow Capital LLP.
The Company does not and will not invest more than 15%, in aggregate, of the value of the gross assets of the Company in other listed closed ended investment companies. Further, the Company does not and will not invest more than 10%, in aggregate, of the value of its gross assets in other listed closed ended investment companies except where the investment companies themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed ended investment companies.
The Company has the ability to invest up to 25% of its gross assets in preference shares, bonds and other debt instruments, although no more than 10% of any one issue may be held.
In addition, a maximum of 10% of the Company’s gross assets can be held in cash, where the Portfolio Manager believes market or economic conditions make equity investment unattractive or while seeking appropriate investment opportunities or to maintain liquidity.
The Company’s gearing policy is that gearing will not exceed 25% of the Company’s net assets.
No investment will be made in any fund or investment company managed by Lindsell Train Limited without the prior approval of the Board.
In accordance with the UK Listing Rules of the Financial Conduct Authority (“FCA”), the Company can only make a material change to its investment policy with the approval of its Shareholders and HMRC.
* The Company publishes its Active Share scores in its monthly fact sheet for investors and in both the annual and half-yearly reports to highlight how different the portfolio is from the Company’s benchmark index.
PERFORMANCE
Whilst performance is measured against the FTSE All-Share Index, the Company’s portfolio is constructed and managed without reference to a stock market index with the Portfolio Manager selecting investments based on their assessment of their long-term value.
The Company’s net assets as at 31 March 2025 were £1,383 million (30 September 2024: £1,582 million) and the market capitalisation was £1,286.7 million (30 September 2024: £1,444.0 million).
MANAGEMENT
Frostrow Capital LLP (“Frostrow”) is the appointed Alternative Investment Fund Manager (“AIFM”) and provides company management, company secretarial, administrative and marketing services. Lindsell Train Limited (“Lindsell Train”) is the appointed Portfolio Manager.
DIVIDENDS
An interim dividend of 8.8p per share (2024: 8.8p) was paid on 16 May 2025 to Shareholders who were registered at the close of business on 4 April 2025. The associated ex-dividend date was 3 April 2025.
It is expected that a second interim dividend will be declared and paid in the Autumn.
DIVIDEND POLICY
The Company’s aim is to increase or at least maintain the total dividend each year. A first interim dividend is typically paid in May and a second interim in November in lieu of a final dividend.
The level of dividend growth is dependent upon the growth and performance of the companies within the investment portfolio. The decision as to the level of dividend paid takes into account the income forecasts maintained by the Company’s AIFM and Portfolio Manager as well as the level of revenue reserves. These forecasts consider dividends earned from the portfolio together with predicted future earnings and are regularly reviewed by the Board.
All dividends have been distributed from current year income and revenue reserves.
CAPITAL STRUCTURE
At 31 March 2025 the Company had 145,224,192 shares of 25p each in issue (excluding 79,767,111 shares held in Treasury) (30 September 2024: 167,717,668; excluding 57,273,635 shares held in Treasury). During the six months under review 22,493,476 shares were bought back to be held in Treasury. Since the end of the half year to 27 May 2025, being the latest practicable date, a further 965,860 shares were bought back to be held in Treasury.
GEARING
As at the half year end the Company was in the third year of its three-year secured fixed term revolving credit facility (the “facility”) of £60 million with Scotiabank Europe PLC (“Scotiabank”) and there is an additional £40 million facility available if required. As at 31 March 2025 £29.2 million has been drawn down from this facility.
REVIEWS
Chairman’s Statement
I am delighted to have been appointed as Chairman of Finsbury Growth & Income Trust PLC. It is a privilege to lead a company with such a strong heritage in its centenary year.
During the period, Simon Hayes retired from the Board, having joined the Board in June 2015 and served as Chairman since February 2021. We extend our heartfelt gratitude to Simon for his exceptional stewardship and significant contributions to the Company during his tenure as Chairman and we wish him the very best for the future.
PERFORMANCE
In the six months to 31 March 2025 the Company delivered a net asset value per share total return^ of 2.1% and a share price total return^ of 4.2%. The Company’s benchmark, the FTSE All-Share Index, which, measured on a total return basis, rose by 4.1% over the same period.
Although the Company’s portfolio has slightly underperformed its benchmark in the period, discount shrinkage, which saw the discount tighten from 8.7% to 7.0%, supported by the Company’s continued share buy-back activity, means the share price return was marginally ahead of benchmark.
The performance of the portfolio remains the paramount concern of your Board. For much of the period under review, the portfolio delivered strong relative and absolute returns only to give up ground as the period end approached, in response to rising concerns over the impact of US tariff reforms which were announced in early April.
Whilst the Board acknowledges that the performance of the Company in recent years has been disappointing there are encouraging signs of recovery in a number of companies within the portfolio and in prospects for the UK market as a whole. The high quality companies and appealing valuations available in the UK market are reflected in the portfolio, which ended the period 100% invested in UK listed or UK focused companies.
During these periods of heightened volatility, the Board has been supportive of the Portfolio Manager’s approach, which has been to stick to its approach of buying attractively priced, high quality businesses with hard-to-replicate data assets or brands, rather than attempting to create value by timing the purchase or sale of holdings in fast moving markets.
The Board notes the increasing risk faced by some companies within the portfolio as a result of the threat of global tariffs and evermore economic uncertainty and will continue to monitor these closely.
Further information on the Company’s portfolio can be found in our Portfolio Manager’s Review.
CONTINUATION OF THE COMPANY
We are grateful for Shareholders continued support but do not take it for granted. As stated in the Annual Report, and as part of broader shareholder engagement, your Board will hold a continuation vote at the Company’s Annual General Meeting in January 2026. This will offer all Shareholders, in particular our retail shareholders who represent a significant proportion of our register, an opportunity to express their support, or otherwise, for the continuation of the Company with its current investment strategy. The Board looks forward to engaging with major shareholders in the months ahead.
SHARE CAPITAL
The Board continues to keep the Company’s discount under close review and is committed to buying back its own shares when the discount approaches or exceeds the 5% level. While share buy-backs will not necessarily prevent the discount from widening beyond this level, the Board believes that buybacks enhance the net asset value per share for remaining shareholders, provide some additional liquidity and help to mitigate discount volatility which can damage the return earned by shareholders when compared with the Company’s NAV return.
During the six months under review the Company has bought back a total of 22,493,476 shares into Treasury at a cost of approximately £200 million. As at 31 March 2025 the discount was 7.0% and at the time of writing (at the close of the UK market on 27 May 2025), the discount was 7.6%. Over the six months the discount averaged 7.5%, compared with 7.4% over the course of the previous financial year.
Since 1 April 2025 to the date of this report, a further 965,860 shares were bought back into Treasury at a cost of £8.5 million. As at 27 May 2024, the Company had 144,258,332 shares in issue (excluding 80,732,971 shares held in Treasury).
DIVIDEND
The Board declared a first interim dividend of 8.8p per share (2024: 8.8p) with respect to the year ending 30 September 2025. The dividend was paid on Friday, 16 May 2025 to shareholders who were on the register on Friday, 4 April 2025. The associated ex-dividend date was Thursday, 3 April 2025.
The Board expects to declare the second interim dividend for the year ending 30 September 2025 in the Autumn.
OUTLOOK
Your Company continues to own what we and the Portfolio Manager believe to be a portfolio of high-quality companies, with durable and market-leading franchises or data assets which offer the potential for significant long–term returns.
The Board believes this combination of a portfolio of world-class companies held for the long term and attractively priced offers real grounds for optimism and the capacity to generate significant returns for shareholders.
Pars Purewal
Chairman
^ Alternative Performance Measure