TROY INCOME & GROWTH TRUST PLC

Interim / Quarterly Report • Apr 29, 2021

National Storage Mechanism | Additional information

RNS Number : 9655W

Troy Income & Growth Trust Plc

29 April 2021

To:               RNS                                                                     

From:          Troy Income & Growth Trust plc

LEI:             213800HLNMQ1R6VBLU75

Date:           29 April 2021

TROY INCOME & GROWTH TRUST PLC

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2021

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 2021	30 September 2020	Change
Equity shareholders' funds	£243,718,000	£251,686,000	-3.2%
Net asset value per share	72.68p	72.60p	+0.1%
Share price (mid-market)	71.60p	72.00p	-0.6%
Discount to net asset value	1.5%	0.8%

Total Return* (for the periods to 31 March 2021)
	Six Months	One Year	Three Years	Five Years	Ten Years
Share price	+1.1%	+4.5%	+6.4%	+16.7%	+98.8%
Net asset value per share	+2.6%	+10.8%	+9.9%	+21.0%	+100.7%
FTSE All-Share Index	+18.5%	+26.7%	+9.9%	+35.7%	+79.0%
* Total return includes reinvesting the net dividend in the month that the share price goes ex-dividend.

INTERIM BOARD REPORT

Performance

The Company delivered a Net Asset Value (NAV) total return of +2.6% and share price total return of +1.1% over the six months to 31 March 2021. Over the same period, the FTSE All-Share Index produced a total return of +18.5%. The weighted average NAV total return for the AIC UK Equity Income sector over the six months to 31 March 2021 was +20.9%. Both the Board and the Managers recognise this significant relative underperformance which erodes the hard-won relative outperformance generated in the previous two years.

As noted previously, the Board remains predominantly interested in long-term performance. Although the impact of this short but sharp period of relative underperformance is that over three and five years the Company's performance now lags behind the market, over ten years the Company's NAV has significantly outperformed the FTSE All-Share Index.

A quarterly rate of 0.49p per share was paid for the first and second interim dividends and the Company expects, barring unforeseen circumstances, to maintain this rate of distribution for the current financial year.  Further details of the Board's outlook for dividends are contained later in this report.

Background

The first weeks of the Company's reporting year were characterised by many of the same equity market drivers that had influenced markets through the summer of 2020. However, the early November announcement of compelling COVID-19 vaccine efficacy data marked a sharp and significant change in sentiment. The breakthrough significantly truncated downside risk for investors and led to the market valuing companies based on more normalised levels of profitability, thereby acting as a starting gun for a rotation towards more cyclical assets.

Investors' optimism was further excited by the resolution of a bitterly contested US presidential election and the expectation that a newly empowered Democratic party would pursue a policy of continued fiscal and monetary largess.  On this side of the Atlantic, a trade agreement was eventually reached between the UK and the European Union.

The ensuing increase in risk appetite has been felt across many asset classes. Government bond yields have risen sharply over the last six months, the oil price (WTI) has risen 47% to nearly $60 a barrel, and Iron Ore and Copper prices have both risen over 30%. For equity investors the most dramatic manifestation of this has been the sharp change in market leadership. More cyclical and asset-intensive companies, many of which were among the most aggressively marked down following the emergence of the pandemic, have risen sharply. This is illustrated by the 6 months returns from the Banks and Oil & Gas sectors1 which rose 56.6% and 42.4% respectively. Both are still more than 20% below their pre-pandemic levels. Meanwhile, higher quality companies, which we define as those that exhibit higher returns on capital and lower levels of volatility, have been jettisoned by investors looking to participate in the repricing of more value orientated stocks. While many of these higher quality stocks had been more resilient in the face of COVID-related disruption, this rotation has meant the return from the Consumer Staples sector over the reporting period has been a modest +4.1% whilst the equivalent Healthcare index has fallen -9.4%. Over 10 years however, Healthcare and Consumer Discretionary stocks have both in aggregate more than doubled while Banks and Oil stocks have delivered negative returns.

Portfolio

The environment described above has created an exceptionally challenging period for the Managers' investment style which aims to seek out and invest in high-quality companies with predictable long-term growth profiles. Although your portfolio contains a number of companies that have benefitted from the development of a vaccine, most notably within the portfolio's allocation to Consumer Discretionary stocks which includes holdings such as Next and Compass Group, the positive contribution from these holdings has been all but offset by a marked derating in a number of the portfolio's core quality growth investments. 

The Company's long-term investment horizon means that the Managers have used the opportunities created by events, including both the volatility that investors experienced this time last year and the more recent shifts in relative valuation, to buy new investments that offer higher dividend growth such as Diploma and InterContinental Hotels, as well as add to core holdings including Diageo, Experian, Reckitt Benckiser and Unilever. Whilst many of these core holdings have seen significant share price headwinds, their underlying profitability and long-term value generating capacity remains undiminished, meaning they now trade at what the Managers deem to be very attractive valuations.

Discount Control Mechanism

The Discount Control Mechanism (DCM) was active during the period with the Company repurchasing a net total of 11.3m shares. These shares are now held in treasury. The DCM was implemented in 2010 in order to provide liquidity to both buyers and sellers of the Company's shares and to maintain the close linkage between the price of those shares and their underlying NAV. The DCM reduces discount volatility which remains much lower than for the peer group as a whole. All transactions are NAV enhancing.  

Gearing

The Company had a £20 million gearing facility with ING that expired on 24 April 2021. The facility was not utilised during the period, reflecting the Managers' conservative investment style and desire to keep the volatility of returns relatively low. The Board and Managers will keep under review the possibility of a new gearing facility but meantime the Company will save the cost of maintaining such a facility.

Dividends

The current quarterly dividend rate is 0.49p per share and the second quarterly dividend was paid on 23 April 2021. The imposition of a second national lockdown shortly after the start of the period and the associated impact on corporate cash flows means that a number of portfolio companies have yet to recommence dividend payments. This continued disruption to the portfolio's income means it is probable that the full year dividend will be partially paid out of reserves. The current dividend rate continues to represent a level of distribution that reflects the potential income generating capability of the underlying portfolio and a base from which the Company can, once more, grow its dividend.

The Management Team

In February of this year, Troy Asset Management ('Troy') announced its succession plans for Francis Brooke who will be relinquishing his fund management responsibilities and taking on a new role as executive Vice-Chairman of Troy on 31 December 2021. Hugo Ure and Blake Hutchins will continue to co-manage the Company after Francis steps down. The Board has been aware and supportive of the succession plans for some time and looks forward to a well-managed and seamless transition.

Outlook

As an Investment Trust focusing explicitly on investing in resilient, compounding businesses, the last six months have undoubtedly been challenging in relative performance terms for Troy Income & Growth Trust. Long-standing investors will be aware that divergence from the market has been a feature of the Company's returns over the years, often to the benefit of shareholders but also occasionally to their short-term detriment.  Such periods have proved short-lived in the past and when navigated sensibly, provide the Managers with opportunities to purchase shares in high-quality companies, capable of multi-year dividend growth, at attractive prices. As ever, uncovering such opportunities remains their priority, and they have added selectively to both new opportunities and several of the exceptional, resilient companies that already form the core of the portfolio. It is expected that these additions will not only further strengthen the long-term dividend growth prospects of the portfolio but also drive future capital returns.

Following a period of significant stock market strength, in which returns have been primarily driven by a recovery in a relatively narrow group of pro-cyclical companies, it is reasonable to anticipate a broadening of market returns looking ahead. Over the past six months, mining companies, energy companies and banks have dominated UK large-cap returns, whilst more stable businesses have either struggled to keep pace or have been sold off as a violent repositioning trade reversed some of the trends that occurred in the more risk-averse markets of early 2020. Following a meaningful re-pricing of expectations, it is noted that many cyclical companies have recently moved towards or beyond peak enterprise value, whereas the shares of many of the sustainable dividend growth stocks favoured by the Managers now trade at levels of free cash flow yield which have previously been a precursor to more attractive absolute returns. With valuations across equity markets now more balanced, the Managers judge relative risk/reward on any reasonable time-frame to be in favour of higher-quality, growing businesses.

David Warnock

Chairman

28 April 2021

1 All references to sector performance are as defined by the relevant FTSE 350 sector index.

.

Principal Risks and Uncertainties

The principal risks facing the Company relate to the Company's investment activities and include pandemic risk, 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 2020.

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 2021 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

28 April 2021

STATEMENT OF COMPREHENSIVE INCOME
		Six months ended 31 March 2021 (unaudited)			Six months ended 31 March 2020 (unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Profits/(losses) on investments held at fair value
	-	2,806	2,806	-	(47,352)	(47,352)
Currency gains/(losses)		-	1	1	-	(5)	(5)
Income	2	2,590	-	2,590	3,944	-	3,944
Investment management
fees		(277)	(514)	(791)	(288)	(534)	(822)
Other administrative
expenses		(306)	-	(306)	(275)	-	(275)
Finance costs of borrowing		(9)	(16)	(25)	(9)	(16)	(25)
		_______	______	_______	_______	______	_______
Profit/(loss) before taxation		1,998	2,277	4,275	3,372	(47,907)	(44,535)
Taxation	3	(43)	-	(43)	(49)	-	(49)
		_______	______	_______	_______	______	_______
Profit/(loss) for the period		1,955	2,277	4,232	3,323	(47,907)	(44,584)
		_______	______	_______	_______	______	_______
Earnings per Ordinary
share (pence)	5	0.57	0.66	1.23	1.04	(15.02)	(13.98)
		_______	______	_______	_______	______	_______

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 2020 (audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Profits/(losses) on investments held at fair value		-	(32,210)	(32,210)
Currency gains/(losses)		-	10	10
Income	2	8,214	-	8,214
Investment management fees		(574)	(1,066)	(1,640)
Other administrative expenses		(554)	-	(554)
Finance costs of borrowing		(18)	(32)	(50)
		______	_______	______
Profit/(loss) before taxation		7,068	(33,298)	(26,230)
Taxation	3	(53)	-	(53)
		______	_______	______
Profit/(loss) for the period		7,015	(33,298)	(26,283)
		______	_______	______
Earnings per Ordinary share (pence)	5	2.11	(10.04)	(7.93)
		______	_______	______

STATEMENT OF FINANCIAL POSITION		As at 31 March 2021 (unaudited) £'000	As at 31 March 2020 (unaudited) £'000	As at 30 September 2020 (audited) £'000
	Notes
Non-current assets
Ordinary shares	6	240,759	220,971	242,316
		______	______	______
Investments held at fair value through profit or loss		240,759	220,971	242,316
		______	______	______
Current assets
Accrued income and prepayments		792	753	861
Trade receivables		59	2,305	474
Cash and cash equivalents		2,878	9,115	8,556
		______	______	______
Total current assets		3,729	12,173	9,891
		______	______	______
Total assets		244,488	233,144	252,207
Current liabilities
Trade and other payables		(770)	(4,036)	(521)
		______	______	______
Total current liabilities		(770)	(4,036)	(521)
		______	______	______
Net assets		243,718	229,108	251,686
		______	______	______
Issued capital and reserves attributable to
equity holders
Called-up share capital	7	86,878	83,471	86,878
Share premium account		53,937	47,727	53,960
Special reserves		52,291	63,397	60,366
Capital reserve - unrealised		43,221	18,059	41,678
Capital reserve - realised		3,333	11,609	2,599
Revenue reserve		4,058	4,845	6,205
		______	______	______
Equity shareholders' funds		243,718	229,108	251,686
		______	______	______
Net asset value per Ordinary share (pence)	5	72.68	68.62	72.60
		______	______	______

STATEMENT OF CHANGES IN EQUITY
Six months ended 31 March 2021 (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 2020		86,878		53,960		60,366		41,678		2,599	6,205	251,686
Profit and total comprehensive income for the period		-		-		-		1,543		734	1,955	4,232
Equity dividends		-		-		-		-		-	(4,102)	(4,102)
Shares bought back into treasury		-		-		(8,514)		-		-	-	(8,514)
Shares issued from treasury		-		-		439		-		-	-	439
Discount control costs		-		(23)		-		-		-	-	(23)
		______		_______		______		______		______	_______	______
Balance at 31 March 2021		86,878		53,937		52,291		43,221		3,333	4,058	243,718
		______		_______		______		______		______	_______	______
Six months ended 31 March 2020 (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 2019		73,495		25,166		63,397		60,217		17,358	5,828	245,461
(Loss)/profit and total comprehensive income for the period		-		-		-		(42,158)		(5,749)	3,323	(44,584)
Equity dividends		-		-		-		-		-	(4,306)	(4,306)
New shares issued		9,976		22,643		-		-		-	-	32,619
Discount control costs		-		(82)		-		-		-	-	(82)
		______		_______		______		______		______	_______	______
Balance at 31 March 2020		83,471		47,727		63,397		18,059		11,609	4,845	229,108
		______		_______		______		______		______	_______	______
Year ended 30 September 2020 (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 2019		73,495		25,166		63,397		60,217		17,358	5,828	245,461
(Loss)/Profit and total comprehensive income for the year		-		-		-		(18,539)		(14,759)	7,015	(26,283)
Equity dividends		-		-		(2,411)		-		-	(6,638)	(9,049)
Shares bought back into treasury		-		-		(620)		-		-	-	(620)
New shares issued		13,383		28,854		-		-		-	-	42,237
Discount control costs		-		(60)		-		-		-	-	(60)
		______		______		______		______		______	______	______
Balance at 30 September 2020		86,878		53,960		60,366		41,678		2,599	6,205	251,686
		______		_______		______		______		______	_______	______

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 ended 31 March 2021 (unaudited) £'000	Six months ended 31 March 2020 (unaudited) £'000		Year ended 30 September 2020 (audited) £'000
Cash flows from operating activities
Investment income received	2,608	3,975		8,157
Administrative expenses paid	(1,115)	(1,116)		(2,226)
	______	______		______
Cash generated from operations	1,493	2,859		5,931
Finance costs paid	(25)	(25)		(50)
Taxation	1	(1)		(33)
	______	______		______
Net cash inflows from operating activities	1,469	2,833		5,848
	______	______		______
Cash flows from investing activities
Purchases of investments	(17,396)	(41,821)		(87,855)
Sales of investments	22,197	26,843		53,856
	______	______		______
Net cash inflow/(outflow) from investing activities	4,801	(14,978)		(33,999)
	______	______		______
Net cash inflow/(outflow) before financing	6,270	(12,145)		(28,151)
	______	______		______
Financing activities
Proceeds of issue of shares	439	21,469		42,339
Cost of share buybacks	(8,263)	-		(617)
Dividends paid	(4,102)	(4,306)		(9,049)
Discount control costs	(23)	(82)		(160)
	______	______		______
Net cash (outflow)/inflow from financing activities	(11,949)	17,081		32,513
	______	______		______
Net (decrease)/increase in cash and short term deposits	(5,679)	4,936		4,362
Cash and short term deposits at the start of the period	8,556	4,184		4,184
Effect of foreign exchange rate changes	1	(5)		10
	______	______		______
Cash and short term deposits at the end of the period	2,878	9,115		8,556
	______	______		______
Reconciliation of operating profit to operating cash flows
Profit/(loss) before taxation	4,275	(44,535)		(26,230)
Add interest payable	25	25		50
Adjustments for:
(Gains)/loss on investments	(2,806)	47,352		32,210
Currency (gains)/losses	(1)	5		(10)
Decrease/(increase) in accrued income and prepayments	24	11		(71)
(Decrease)/increase in trade and other payables	(24)	1		(18)
	______	______		______
Cash generated from operations	1,493	2,859		5,931
	______	______		______

Distribution of Assets and Liabilities
	Valuation at 30 September 2020					Valuation at 31 March 2021
	Purchases	Sales	Appreciation/ (depreciation)
	£'000	%	£'000	£'000	£'000	£'000	%
Listed investments
Ordinary shares	242,316	96.3	17,419	(21,782)	2,806	240,759	98.8
Current assets	9,891	3.9				3,729	1.5
Current liabilities	(521)	(0.2)				(770)	(0.3)
	______	_____				______	_____
Net assets	251,686	100.0				243,718	100.0
	______	_____				______	_____
Net asset value per share	72.60p					72.68p
	______					______

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 2020 financial statements.
	(b)	Dividends payable
		Dividends are recognised on the ex-dividend date.

2.	Income	Six months ended 31 March 2021 £'000	Six months ended 31 March 2020 £'000	Year  ended 30 September 2020 £'000
	Income from listed investments
	UK dividend income	2,300	3,615	7,325
	Overseas dividend income	290	327	887
		______	______	______
		2,590	3,942	8,212
		______	______	______
	Other income from investment activity
	Deposit interest	-	2	2
		______	______	______
	Total income	2,590	3,944	8,214
		______	______	______

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 31 March 2021* £'000	Six months ended 31 March 2020+ £'000	Year  ended  30 September 2020++ £'000
	Revenue	1,955	3,323	7,015
	Dividends declared and payable from revenue	(3,336)	(4,561)	(6,982)
		______	______	______
		(1,381)	(1,238)	33
		______	______	______
	* Dividends declared relate to the first two interim dividends (both 0.49p) declared in respect of the financial year 2020/2021.
	+ Dividends declared relate to the first two interim dividends (both 0.695p) declared in respect of the financial year 2019/2020.
	++ Dividends declared relate to the first, second and fourth interim dividends declared in respect of the financial year 2019/2020 totalling 2.085p and paid from revenue. The third interim dividend of 0.695p was paid from the distributable capital reserve.

		Six months ended 31 March 2021	Six months ended 31 March 2020	Year  ended 30 September  2020
5.	Return and net asset value per share	p	p	p
	Revenue return	0.57	1.04	2.11
	Capital return	0.66	(15.02)	(10.04)
		______	______	______
	Total return	1.23	(13.98)	(7.93)
		______	______	______
	The figures above are based on the following:
		£'000	£'000	£'000
	Revenue return	1,955	3,323	7,015
	Capital return	2,277	(47,907)	(33,298)
		______	______	______
	Total return	4,232	(44,584)	(26,283)
		______	______	______
	Weighted average number of Ordinary shares in issue
		343,918,970	318,942,183	331,616,651
		__________	__________	__________
	The net asset value per share is based on net assets attributable to shareholders of £243,718,000 (31 March 2020 - £229,108,000; 30 September 2020 - £251,686,000) and on 335,332,987 (31 March 2020 - 333,881,987; 30 September 2020 - 346,652,987) Ordinary shares in issue at the period end.

6.	Financial instruments
		Level 1 £'000	Level 2 £'000	Level 3 £'000	2021 Total £'000
	Financial assets at fair value through profit or loss as at 31 March 2021
	Investments	240,759	-	-	240,759
		______	______	______	______

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 2021.
The fair value of the Company's financial assets and liabilities as at 31 March 2021 was not materially different from the carrying value.

		As at 31 March 2021 (unaudited)	As at 31 March 2020 (unaudited)	As at 30 September 2020 (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	335,332,987	333,881,987	346,652,987
	Held in treasury	12,179,000	-	859,000
		____________	____________	___________
		347,511,987	333,881,987	347,511,987
		____________	____________	____________
	During the six months ended 31 March 2021 11,920,000 shares were repurchased by the Company at a total cost of £8,514,000 and placed in treasury. During the six months ended 31 March 2020 no shares were repurchased by the Company. During the year ended 30 September 2020 859,000 shares were repurchased by the Company at a total cost of £620,000 and placed in treasury. During the six months to 31 March 2021, the six months to 31 March 2020 and the year to 30 September 2020, no Ordinary shares were purchased for cancellation. During the six months ended 31 March 2021 the Company re-issued 600,000 shares from treasury for total proceeds of £439,000. During the six months ended 31 March 2020 and the year ended 30 September 2020 no Ordinary shares were re-issued from treasury. During the six months ended 31 March 2021 the Company did not issue any new shares. In the six months ended 31 March 2020 the Company issued 39,902,942 new shares for proceeds of £32,619,000. In the year ended 30 September 2020 the Company issued 53,532,942 new shares for proceeds of £42,237,000. Included in the figures for the six months ended 31 March 2020 and the year ended 30 September 2020 are 13,647,942 new shares issued in respect of the merger with Cameron Investors Trust plc.

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/(losses) on investments in the Statement of Comprehensive Income. The total costs were as follows:
			Six months ended 31 March 2021 £'000		Six months ended 31 March 2020 £'000		Year  ended 30 September 2020 £'000
	Purchases		82		176		266
	Sales		8		10		18
			______		______		______
			90		186		284
			______		______		______

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 2021 and 31 March 2020 has not been audited.
	The information for the year ended 30 September 2020 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 28 April 2021.

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 2021.

For Troy Income & Growth Trust plc

PATAC Limited, Company Secretary

28 April 2021

Enquiries: 0131 378 0500

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