Finsbury Growth & Income Trust PLC
(the “Company”)
This announcement contains regulated information
Annual Financial Report for the year ended 30 September 2022
STRATEGIC REPORT / COMPANY SUMMARY
Finsbury Growth & Income Trust PLC is a listed investment company, its shares are quoted 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”).
OBJECTIVES 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).
The Company’s net assets as at 30 September 2022 were £1,830.4 million (2021: £2,064.7 million) and the market capitalisation was £1,725.9 million (2021: £1,970.9 million).
DIVIDENDS
A first interim dividend of 8.3p per share was paid on 13 May 2022 to shareholders registered at close of business on 1 April 2022. The associated ex-dividend date was 31 March 2022.
A second interim dividend of 9.8p per share was paid on 4 November 2022 to shareholders registered at close of business on 30 September 2022. The associated ex-dividend date was 29 September 2022.
The total dividend declared for the year was therefore 18.1p per share (2021: 17.1p per share), an increase of 5.8%.
STRATEGIC REPORT / COMPANY PERFORMANCE
KEY FACTS
| 848.4p Net asset value per share 2021: 917.7p (change: -7.6%) | (5.8)% Net asset value per share total return*,^ 2021: +10.6% | (5.6)% Share price total return*,^ 2021: +6.3% |
| 800.0p Share price 2021: 876.0p (change: -8.7%) | £1.830bn Shareholders’ funds† 2021: £2.065bn (change: -11.4%) | 215,737,992 (excluding 9,253,311 shares held in treasury) Number of shares in issue 2021: 224,991,303 (treasury shares 2021: Nil) (change: -4.1%) |
| 5.7% Discount of share price to net asset value per share^ 2021: 4.5% | 0.60% Ongoing charges^ 2021: 0.62% | 1.2% Gearing^ 2021: 0.3% |
| (53.4)p (Loss)/return per share† 2021: +88.0p | ||
| 84.8% Active Share*^ 2021: 86.0% | ||
| 18.1p Total dividends per share for the year† 2021: 17.1p (change: +5.8%) |
* Source – Morningstar
^ Alternative Performance Measure (see glossary)
† UK GAAP Measure
FIVE YEAR PERFORMANCE SUMMARY
| 30 SEP | 30 SEP | 30 SEP | 30 SEP | 30 SEP | |
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Share price | 818.0p | 942.0p | 840.0p | 876.0p | 800.0p |
| Share price total return* ^ | +13.2% | +17.4% | (9.0)% | +6.3% | (5.6)% |
| Net asset value per share | 812.8p | 935.6p | 846.2p | 917.7p | 848.4p |
| Net asset value per share total return* ^ | +13.1% | +17.4% | (7.7)% | +10.6% | (5.8)% |
| FTSE All-Share Index total return** # | +5.9% | +2.7% | (16.6)% | +27.9% | (4.0)% |
| Total (loss)/return per share† | 93.6p | 143.8p | (67.1)p | 88.0p | (53.4)p |
| Dividends per share† | 15.3p | 16.6p | 16.6p | 17.1p | 18.1p |
* Source: Morningstar
** Source: FTSE International Limited (“FTSE”) © FTSE, 2022
# See glossary of terms and alternative performance measures)
^ Alternative Performance Measure (“APM”) (see glossary)
† UK GAAP Measure
The Company was incorporated in Scotland on 15 January 1926. Lindsell Train Limited (“Lindsell Train”) was appointed as Portfolio Manager in December 2000. The total return of the Company’s share price over the ten years to 30 September 2022 has been 165.7%, equivalent to a compound annual return of 10.3%. This compares with a total return of 79.5%* from the Company’s benchmark, equivalent to a compound annual return of 6.0%*.
* Source: Morningstar, FTSE International Limited (“FTSE”) © FTSE2022
STRATEGIC REPORT / KEY PERFORMANCE INDICATORS
The Board reviews the performance of the portfolio in detail and hears the views of the Portfolio Manager at each meeting.
Information on the Company’s performance is provided in the Chairman’s Statement and the Portfolio Manager’s Review.
This performance is assessed against the following KPIs which are unchanged from last year with the exception of Dividend Per Share.
Alternative Performance Measures (“APM”)
The Board believes that each of the APMs, which are typically used within the investment trust sector, provides additional useful information to the shareholders in order to assess the Company’s performance between reporting periods and against its peer group. The measures used for the year under review have remained consistent with the prior year. Further information on each of the APMs can be found in the glossary.
^ Alternative Performance Measure (see glossary)
† UK GAAP Measure
* Source: Morningstar
(5.8)%
NET ASSET VALUE TOTAL RETURN^*
This reflects the change in the Company’s net asset value including the impact of reinvested dividends.
During the year under review the Company’s net asset value per share total return was -5.8% (2021: +10.6%).
(53.4)p
(LOSS)/RETURN PER SHARE†
The total loss per share for the year was 53.4 pence per share (2021: return of 88.0 pence per share).
Over five years, the Company earned a total of 204.9 pence per share.
See the chart below for the five year history.
18.1p
DIVIDENDS PER SHARE†
The total dividend declared for the year was 18.1p per share
(2021: 17.1p per share), an increase of 5.8%.
(5.6)%
SHARE PRICE TOTAL RETURN^*
This reflects the change in the value of the Company’s share price including the impact of reinvested dividends.
During the year under review the Company’s share price total return was -5.6% (2021: +6.3%).
Over five years, the share price total return was +21.5%.
(1.6)%
RELATIVE PERFORMANCE TO BENCHMARK AND PEER GROUP
The Company’s benchmark is the FTSE All-Share Index (total return) which delivered a return of -4.0% (2021: +27.9%) over the year. This compares with the Company’s share price total return of -5.6% (2021: +6.3%).
Over five years the share price total return was 21.5% compared with the Company’s benchmark which delivered a return of 11.3%.
The Board also monitors the Company’s net asset value per share return against its AIC peer group^. As at 30 September 2022 the Company’s ranking against its peer group of UK growth and income sector investment trusts was:
| Rank out of 23 | ||
| Period | 2022 | 2021 |
| 1 yr | 6 | 21 |
| 3 yr | 17 | 9 |
| 5 yr | 4 | 2 |
| 10 yr | 1 | 3 |
(5.7)%
SHARE PRICE DISCOUNT/ PREMIUM TO NET ASSET VALUE PER SHARE^
The Board reviews the level of discount/ premium to net asset value per share at every Board meeting and consideration is given to ways in which the share price performance may be enhanced, including the effectiveness of marketing, share issuance and buy-backs, where appropriate. Details of how the Company’s share buy-back and issuance policy works can be found in the Statutory Documentation section on the Company’s website.
No shares were issued by the Company during the year (2021: 7,240,000 new shares were issued by the Company at a premium to the higher of the prevailing cum or ex income net asset value per share at the time of issue). At 30 September 2022 the Company’s share price stood at a 5.7% discount to the Company’s net asset value per share (2021: 4.5% discount).
During the year, the Company bought back 9,253,311 shares into treasury (2021: Nil) at an average price of 826.9p and an average discount of 5.5%.
Since the year end the Company has purchased a further 1,668,897 shares to be held in treasury.
^ Alternative Performance Measure (see glossary)
* Source: Morningstar
STRATEGIC REPORT / CHAIRMAN’S STATEMENT
“Your Board continues to fully support the Portfolio Manager’s disciplined strategy of investing in high quality companies that own both durable and cash generative brands. It has delivered attractive returns over the longer-term and we believe firmly that this will continue to deliver strong investment returns to shareholders in the future.”
SIMON HAYES
CHAIRMAN
Annual report and financial statements
Copies of the Annual Report and financial statements will be posted to shareholders in mid December 2022 and will be available on the Company’s website (www.finsburygt.com) or in hard copy format from the Company Secretary.
The Company’s Annual Report for the period ended 30 September 2022 has been submitted to the Financial Conduct Authority and will shortly be available for inspection on the National Storage Mechanism (NSM) via https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The Annual General Meeting will be held on Tuesday, 17 January 2023.
Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on the Company’s website (or any other website) is incorporated into, or forms part of, this announcement.
-ENDS-