Finsbury Growth & Income Trust plc (LON:FGT) has announced its Annual Financial Report for the year ended 30 September 2025
The statements below are extracted from the Company’s annual report for the year ended 30 September 2025 (the Annual Report). The Annual Report, which includes the notice of the Company’s forthcoming annual general meeting, will be posted to shareholders mid December 2025. Members of the public may obtain copies from Frostrow Capital LLP, 25 Southampton Buildings, London WC2A 1AL or from the Company’s website www.finsburygt.com where up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.
The Annual Report will be submitted to the Financial Conduct Authority and will shortly be available in full, unedited text for inspection on the National Storage Mechanism (NSM): https://data.fca.org.uk/#/nsm/nationalstoragemechanism
STRATEGIC REPORT / Chairman’s Statement
Pars Purewal, Chairman
I am honoured to address Shareholders for the first time in an Annual Report as Chairman of the Company. I am only the 8th person to hold this role in our history, a reminder of the continuity and long-term stewardship that have guided the Company through both strong and challenging periods.
PERFORMANCE
While the Company’s performance over the past year has again been disappointing, our commitment to a disciplined, high-conviction, and concentrated investment approach remains unchanged. We continue to focus on the long term, and on positioning the Company to deliver sustainable value for Shareholders in the years ahead.
For the year ended 30 September 2025, the share price total return was 2.3%, underperforming the FTSE All-Share Index, which returned 16.2% over the same period. The Company delivered a net asset value (‘NAV’) total return of -0.1%, compared to +8.2% in the previous year.
The Board acknowledges this extended period of underperformance and the understandable frustration this has caused among Shareholders. In the face of this poor performance, your Board has subjected the Portfolio Manager’s investment process and the resulting portfolio holdings to close scrutiny. We remain confident in the long-term investment process, which focuses on high-quality, cash-generative businesses with durable competitive advantages. While many of our portfolio companies are listed in the UK, they are, in reality, global businesses with leading positions in their respective industries. We share the Portfolio Manager’s belief, both in the quality of these companies and in the belief that this quality will, ultimately, be reflected in their share price performance.
As it is always important to point out, a highly concentrated portfolio means higher risk, particularly in the short-term. At 30 September 2025, the Company’s Active Share – a measure of how much it varies from the FTSE All-Share Index benchmark – was 86.4% (2024: 84.1%). Such an uncorrelated portfolio will inevitably perform very differently from the wider market, whether positively or negatively.
I urge you to read Nick Train’s review where he discusses his investment approach.
AGM
This year’s Annual General Meeting is notable for two reasons. Firstly, it marks the Company’s centenary. Finsbury Growth & Income Trust PLC was founded as Scottish Cities Investment Trust Limited in Edinburgh in January 1926, just ten days before another scion of Scotland, John Logie Baird, first demonstrated television.
The second reason this AGM is significant is that it includes something entirely new in our history: a continuation vote. Put simply, this gives Shareholders the opportunity to decide whether the Company should continue with its long-term investment approach. It is a moment to pause, reflect, and, we hope, affirm your support. In that sense, the continuation vote is not just a formality; it is a valuable opportunity for Shareholders to make their voice heard in shaping the next chapter of our story.
CONTINUATION VOTE
During the year, I, together with the Senior Independent Director, met with several of our largest Shareholders. While there was shared disappointment regarding the Company’s recent investment performance, I am encouraged to report significant support for the continuation of the Company from amongst Shareholders we spoke with.
In the spirit of transparency and good governance, we wish to highlight that joint Founders of Lindsell Train, Michael Lindsell and Nick Train, while both fully supporting the continuation of the Company and hoping that it continues for the next 100 years, have chosen not to vote their shares. This decision was taken to avoid any perception of a conflict of interest, given their roles as both shareholders and portfolio managers.
The Board unanimously recommends that Shareholders vote in favour of continuation. All Directors intend to vote their shares accordingly.
The Board strongly encourages all Shareholders to exercise their votes in respect of the meeting in advance. Details of how Shareholders can vote are set out in the Notice of Meeting. Any Shareholder who requires a hard copy form of proxy may request one from the Registrar MUFG Corporate Markets.
Please note that the continuation vote is not a liquidity event; it does not involve redemption, tender offers, or a return of capital.
Rather, it is a strategic decision point that allows Shareholders to express their support for the investment philosophy that has underpinned the Company’s performance over time.
If Shareholders vote in favour, the Company will continue as before. If the vote is against, the Board will consider alternative strategic options. The outcome will be announced following the Centenary AGM.
SHARE BUY-BACKS
The Board keeps the discount under close review and is committed to buying back its own shares at or near the 5% discount level, in accordance with its policy.
While share buy-backs will not necessarily reduce the discount, particularly in times of market volatility, they may, to a limited extent, mitigate a widening trend. In addition, buy-backs enhance the net asset value per share for remaining shareholders, provide some additional liquidity and help to dampen discount volatility which can damage shareholder returns.
As at 30 September 2025 the discount was 6.7% compared with a closing discount at the last year end of 8.7%. During the year under review the Company bought back a total of 34,698,781 shares, 20.7% of the shares in issue) into Treasury at a cost of approximately £309.7 million and at an average discount of 7.5%. Over the course of the year the Company’s discount averaged 7.5%.
As at the close of the UK market on 1 December 2025, the discount was 5.7%. Since the year end, a further 10,787,363 shares were bought back into Treasury at a cost of £90.2 million. As at 1 December 2025, the Company had 122,231,524 shares in issue (excluding 102,759,779 shares held in Treasury).
The Board believes that the Company’s share buy-back programme continues to be in the interest of Shareholders; providing liquidity for those wishing to exit while enhancing value for continuing investors. This year alone, buybacks have added approximately 18.2 pence per share, and since we began repurchasing shares at the current scale, they have contributed a cumulative increase of around 42.7 pence per share.
DIVIDENDS
Your Board has declared two interim dividends for the year totalling 20.2p per share (2024: 19.6p), an increase of 3.1%. In order to facilitate dividend payments on a timely and cost-effective basis, your Board continues to elect to distribute the Company’s income to Shareholders by means of two interim dividends rather than wait several months to secure shareholder approval to pay a final dividend at the AGM. This dividend policy will again be proposed for approval at the forthcoming AGM.
OUTLOOK
The Board remains confident that the Trust’s strategy will deliver sustainable, long-term returns for Shareholders. We appreciate your continued support and patience during this challenging period, both your Portfolio Manager and Directors have demonstrated their commitment by continuing to acquire shares in the Trust. Over the last year, Nick Train has acquired 275,237 shares and currently speaks for 4.7% of the equity of the Company (December 2024: 3.5%). This alignment underscores our shared determination to navigate this challenging period together.
The Board is pleased to confirm that it has agreed amendments to the fee arrangements with the AIFM and Portfolio Manager, with effect from 1 January 2026. The revised structure will deliver an immediate cost saving of c.£600,000 per annum. Since the appointment of Lindsell Train in 2000, management fees have been regularly reviewed and stepped down with increased fund size providing economies of scale for Shareholders.
As we evaluate the results of the continuation vote let me reassure you that the Board will do whatever it takes to add value for Shareholders.
Pars Purewal
Chairman
2 December 2025
