Finsbury Growth & Income Trust PLC
Unaudited Half Year Results For The Six Months Ended
31 March 2022
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 2022. 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 2022 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 SUMMARY
The Company is an investment trust. Its shares are listed on the premium segment of the Official List and 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 may be considered to carry above average 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 company or fund managed by the Portfolio Manager without the prior approval of the Board.
In accordance with the 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.
* 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.
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 8.3p per share (2021: 8.0p) was paid on 13 May 2022 to shareholders who were registered at the close of business on 1 April 2022. The associated ex-dividend date was 31 March 2022.
In accordance with FRS 102 dividends are included in the Financial Statements in the period in which they are paid or approved by shareholders.
It is expected that a second interim dividend will be declared and paid in the Autumn.
CAPITAL STRUCTURE
At 31 March 2022 the Company had 223,330,882 shares of 25p each in issue (excluding 1,660,421 held in treasury) (30 September 2021: 224,991,303; there were no shares held in treasury). During the six months under review 1,660,421 shares were bought back to be held in treasury. Since the end of the half-year, to 12 May 2022, being the latest practicable date, a further 700,459 shares were bought back and held in treasury.
GEARING
As at the half-year end the Company was in the final year of its three-year secured fixed term revolving credit facility (the “facility”) of £50 million with Scotiabank Europe PLC (“Scotiabank”) and there is an additional £50 million facility available if required. As at 31 March 2022 a total of £36.7 million has been drawn down from this facility. The Company has commenced negotiations with Scotiabank and it is intended that this facility will be renewed with effect from early October 2022.