Date : 11/19/2012 @ 2:00AM
Source : PR Newswire (US)
Stock : Invesco Gth (IVI)
Quote : 298.5  0.0 (0.00%) @ 1:30AM
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Invesco Income Growth Trust plc

Half-Yearly Financial Report for the Six Months to 30 September 2012


Invesco Income Growth Trust plc is an investment trust company listed on the London Stock Exchange. The Company is managed by Invesco Asset Management Limited.

Investment Objective

The Company's investment objective is to provide shareholders with long-term
capital growth and real long-term growth in dividends from a portfolio yielding
more than the FTSE All-Share Index.

The Company will invest principally in UK equities and equity-related securities of UK companies selected from any market sector. In managing the Company's investment portfolio, the Manager will seek to achieve a total return over the long term in excess of the total return on the FTSE All-Share Index.

Full details of the Company's Investment Policy (incorporating the Company's
investment objective) can be found on page 11 of the Company's 2012 annual
financial report.


Performance Statistics

                                                 AT             AT           
                                       30 SEPTEMBER       31 MARCH          %
                                               2012           2012     CHANGE
Net asset value per ordinary share                                         
- per Balance Sheet                          230.6p         221.7p       +4.0

- after deducting proposed dividends 228.6p 218.4p +4.7

Mid-market price per ordinary share 225.50p 213.75p +5.5

Discount per ordinary share                    2.2%           3.6%         
Gross gearing(1) - excluding the              10.8%           7.4%         
effect of cash                                                               
Net gearing(2) - including the                 8.2%           4.8%         
effect of cash                                                               
1. Gross gearing: borrowing ÷ shareholders' funds.                           
2. Net gearing: borrowing less cash and cash equivalents ÷ shareholders'  
                                         SIX MONTHS     SIX MONTHS           
                                              ENDED          ENDED           
                                       30 SEPTEMBER   30 SEPTEMBER          %
                                               2012           2011     CHANGE
Total Return                                                                 
(includes net dividends reinvested)                                          
Net asset value per ordinary share             4.8%          -3.6%         
FTSE All-Share Index                           1.9%         -11.8%           
Source: Thomson Reuters Datastream                                         
Revenue and Dividends                                                        
Net revenue after tax (£'000)                 3,303          3,176       


Revenue return per ordinary share              5.6p           5.4p       +3.7
Dividends - first interim                     2.00p          1.95p           
- second interim                              2.00p          1.95p           





I must admit to being relieved that in my first statement as your new Chairman,
I am able to report a positive result for the six months to 30 September 2012
with a total return on our net asset value of 4.8%, compared to a total return
of only 1.9% by our benchmark, the FTSE All-Share Index. My relief arises from
the fact that for most of the period such a positive result looked far from
certain, with the FTSE All-Share Index falling about 10% in the first two
months, as investors reacted to the ongoing Euro crisis, especially the vote in
Greece, and the worsening economic news. However, further supportive measures
from Central Banks helped markets gradually to recover, albeit in a way that
closely resembled the popular Two-Step country-western dance, with its two
steps forward and one step back, to finish the period barely ahead of where it
had started. So in the circumstances our performance is a good result and our
Manager, who is to be congratulated, will comment in more detail as to how this
performance was achieved. However, there has been an increasing recognition
amongst many investors that the income part of the total return is much more
secure than the capital part, so leading them to invest more in the types of
companies that we naturally invest in, which has clearly been to our benefit.

Revenue and Dividends

Our revenue has shown further modest growth from the same period last year as many companies were able to increase their dividend despite the difficult economic background.

The Board is pleased to declare a second interim dividend of 2.0p per share in
respect of the year ending 31 March 2013. This dividend will be paid on 31
December 2012 to shareholders registered on 7 December 2012. Together with the
first interim dividend, this makes a total of 4.0p for the first half of the
current financial year compared with 3.9p last year. This is consistent with
the Board's objective of achieving a better balance between the three interim
and the final dividend payments and should not be taken as an indication of the
level of the full year's total distribution.


The aftermath of the US elections and the looming US fiscal cliff, the new
Chinese leadership and their approach to the weaker Chinese economy, and the
seemingly never ending Eurozone crisis are just some of the reasons why
volatility in markets could be a feature for some time to come. We can hope
that this volatility at least continues to resemble the Two-Step dance, so
ensuring some progress. However, there are still good opportunities for
investors like our Company and your Board shares our Manager's confidence that
our portfolio should be able to generate attractive long term returns.

Hugh Twiss


16 November 2012



Portfolio Strategy and Review
Concerns over the Eurozone sovereign debt crisis and the outlook for global
growth continued to dominate UK stock market sentiment over the six months. The
first two months saw equities fall in the face of a growing realisation of the
challenges facing the developed world, especially the Eurozone. The stock
market then rallied as European leaders committed themselves to the idea of a
single supervisor of Eurozone banks and a mechanism to inject capital into
troubled banks directly, the European Central Bank announced a new bond buying
plan and the US Federal Reserve announced additional and unlimited quantitative
easing. The very end of the period, however, saw equities retreat again as the
International Monetary Fund warned that it would cut its forecast for global
economic growth and civil unrest in Spain and Greece highlighted the challenges
facing governments intent on imposing further austerity. The period as a whole
was also noteworthy for the number of profit downgrades from companies,
particularly within the industrial cyclical part of the market.

The positioning of the Company's portfolio, with a focus on strongly positioned
companies able to withstand a challenging economic environment, saw it continue
to outperform its benchmark.

Relative to the benchmark, the portfolio continued to benefit from its zero
weighting in the mining sector. The sector underperformed as company results
confirmed the impact that falling commodity prices and rising costs are having
on earnings and the viability of future projects in the sector.

The portfolio is overweight the pharmaceutical sector, and this too provided a
positive impact on performance. The shares of AstraZeneca in particular saw a
welcome return to favour coinciding with the announcement of the appointment of
a new Chief Executive.

Other positive impacts on performance came from a broad selection of holdings.
Despite the wettest summer for over 100 years, two clothing retail companies -
Next and N. Brown - delivered very strong performances. The retail sector
remains tricky, with the seemingly inexorable rise of sales via the internet
putting pressure on the traditional high street, and both of these companies
demonstrated their ability to see the internet as an opportunity rather than a

The holding in Whitbread performed strongly over the period, with Costa Coffee
continuing its expansion and Premier Inns taking market share from its
competition, benefiting from the strength of its parent company's balance
sheet. Nichols, the maker of fruit-based soft drink Vimto, also saw its shares
post excellent gains. The company confirmed its ability to provide organic
growth both in the UK, as it expands from its northern regional base, and

The portfolio has a significant weighting in the tobacco sector, which
underperformed over the period. News that the Australian Government had made
progress towards the introduction of plain packaging had largely been expected,
but appeared to act as a catalyst for profit taking in the sector.

I remain of the view that the companies held in the sector represent exactly the sort of quality stocks that can deliver attractive profit and dividend growth in a low growth economic environment.

Unfortunately the holding in Barclays had a negative impact on performance over
the period. In the aftermath of the 2008 banking crisis, these shares fell
heavily, to a level at which I believed they were undervalued. They
subsequently showed some recovery, but recent newsflow - including the
resignation of the Chief Executive - has confirmed the scale of the challenges
still facing the company, while I also believe there are better opportunities
for investment elsewhere. The shares have therefore been sold from the

As to other portfolio activity, I have continued to seek to further improve the
quality of the holdings. Consistent with this aim, a new investment was made in
Spectris, a company which manufactures productivity-enhancing instrumentation
and controls for a range of industries, and whose market positioning and strong
track record fit my quality criteria for the portfolio.


The stock market's rise in the past year, fuelled by monetary stimulus and
central bank policy initiatives, has occurred despite reductions in the
forecasts of company earnings for the current financial year and beyond. Equity
valuations are therefore no longer as cheap as they were at the beginning of
the year. I also expect concerns about the Eurozone debt crisis and the outlook
for the global economy to remain a feature of the market, as the developed
world continues to grapple with the aftermath of the 2008 banking crisis, and
that stock market volatility will remain high.

However, within the market as a whole, there is still a subset of stocks that
look attractively valued, particularly for investors seeking income. My
investment strategy of the past three years remains intact - I am seeking
companies with strong fundamentals, with sensible management whose interests
are aligned with shareholders and with a low risk balance sheet. The high level
of equity market volatility of the past year has left the shares of many of
these strongly placed companies looking attractive, and I am confident about
the outlook for long-term returns from the portfolio.

Ciaran Mallon

Investment Manager

16 November 2012


Related Parties and Transactions with the Manager

The Company has no related parties.

Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco
Limited, acts as Manager and Company Secretary to the Company. Details of
IAML's services and fee arrangements are given in the latest annual financial
report, which is available on the Manager's website at

Principal Risks and Uncertainties

The principal risk factors relating to the Company can be summarised as:

* Investment objective - there can be no guarantee that the Company will meet its investment objective;

* Market risk - a fall in the stock market as a whole will affect the performance of the portfolio and individual investments;

* Investment risk - there is a risk of poor performance of individual investments. This is mitigated by diversification and monitoring of investment guidelines;

* Shares - share price is affected by market sentiment, supply and demand for the shares, and dividends declared as well as portfolio performance;

* Gearing - borrowing will amplify the effect on shareholders' funds of portfolio gains and losses;

* Regulatory - whilst compliance with rules and regulations is closely monitored, breaches could affect returns to shareholders; and

* Reliance on Third Party Service Providers - The Company has no employees, other than the Board, so is reliant upon the performance of third party service providers, particularly the Manager, for it to function.

A detailed explanation of these principal risks and uncertainties can be found
on pages 13 and 14 of the 2012 annual financial report, which is available on
the Manager's website.

In the view of the Board these principal risks and uncertainties are equally
applicable to the remaining six months of the financial year as they were to
the six months under review.

Going Concern

This half-yearly financial report has been prepared on a going concern basis.
The Directors consider this is the appropriate basis as the Company has
adequate resources to continue in operational existence for the foreseeable
future. In reaching this conclusion, the Directors took into account the
diversified portfolio of readily realisable securities which can be used to
meet funding commitments, and the ability of the Company to meet all of its
liabilities, including bank overdraft and ongoing expenses from its assets. The
Directors also considered the revenue forecasts for the forthcoming year and
future dividend payments in concluding that the going concern basis is



The Directors are responsible for preparing the half-yearly financial report using accounting policies consistent with applicable law and UK Accounting Standards.

The Directors confirm that to the best of their knowledge:

- the condensed set of financial statements contained within the half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement `Half-Yearly Financial Report';

- the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the FSA's Disclosure and Transparency rules; and

- the interim management report includes a fair review of the information required on related party transactions.

The half-yearly financial report has not been audited or reviewed by the Company's auditor.

Signed on behalf of the Board of Directors.

Hugh Twiss


16 November 2012



Ordinary shares unless stated otherwise

                                                              VALUE        % OF
COMPANY                 ACTIVITY BY SECTOR                    £'000   PORTFOLIO
GlaxoSmithKline         Pharmaceuticals &                     6,579         4.4
British American        Tobacco                               6,462         4.3
Imperial Tobacco        Tobacco                               6,319         4.2
AstraZeneca             Pharmaceuticals &                     6,233         4.2
BP                      Oil & Gas Producers                   5,609         3.8
HSBC                    Banks                                 5,483         3.7
Vodafone                Mobile Telecommunications             4,965         3.3
Royal Dutch Shell `B'   Oil & Gas Producers                   4,069        
Next                    General Retailers                     3,278         2.2
Centrica                Gas, Water & Multiutilities           3,263         2.2
Young & Co.'s Brewery   Travel & Leisure                      3,197        
Croda International     Chemicals                             3,161         2.1
BT                      Fixed Line Telecommunications         3,091         2.1
Legal & General         Life Insurance                        2,880         1.9
Tesco                   Food & Drug Retailers                 2,867         1.9
Whitbread               Travel & Leisure                      2,865         1.9
Land Securities         Real Estate Investment Trusts         2,808         1.9
Reed Elsevier           Media                                 2,782         1.9
SSE                     Electricity                           2,745         1.8
AMEC                    Oil Equipment, Services &             2,739         1.8
Intercontinental Hotels Travel & Leisure                      2,727        
Pearson                 Media                                 2,660         1.8
Wood Group              Oil Equipment, Services &             2,504         1.7
Filtrona                Support Services                      2,484         1.7
Compass                 Travel and Leisure                    2,384         1.6
                                                             94,154        63.1
Other investments                                            54,996        36.9
Total investments                                           149,150       100.0



                                                                        YEAR TO
                SIX MONTHS TO               SIX MONTHS TO              31 MARCH
                30 SEPTEMBER 2012           30 SEPTEMBER 2011              2012
                     £'000    £'000   £'000     £'000   £'000     £'000   £'000
Profits/                 -    4,150   4,150         - (7,189)   (7,189)   8,408
(losses) on                                                                    
investments at                                                                 
fair value                                                                     
through profit                                                                 
or loss                                                                        
UK dividends         3,460        -   3,460     3,396       -     3,396   5,947
UK unfranked           243        -     243       208       -       208     445
Overseas                 -        -       -        15       -        15       -
Underwriting            30        -      30         -       -         -       -
Investment           (239)    (239)   (478)     (231)   (231)     (462)   (920)
management fee                                                                 
- note 2                                                                       
Other expenses       (144)        -   (144)     (161)       -     (161)   (306)
Net return           3,350    3,911   7,261     3,227 (7,420)   (4,193)  13,574
before finance                                                                 
costs and                                                                      
Finance costs         (47)     (47)    (94)      (51)    (51)     (102)   (188)
Return on            3,303    3,864   7,167     3,176 (7,471)   (4,295)  13,386
before and                                                                     
after tax                                                                      
Return per            5.6p     6.6p   12.2p      5.4p (12.8)p    (7.4)p   22.9p
ordinary share                                                                 
Basic - note 4                                                                 
The total column of this statement represents the Company's profit and loss
account. The supplementary revenue and capital columns are presented for
information purposes in accordance with the Statement of Recommended Practice
issued by the Association of Investment Companies. All items in the above
statement derive from continuing operations and the Company has no other gains
or losses and therefore no statement of total recognised gains or losses is
presented. No operations were acquired or discontinued in the period.



Registered number 3141073

                                             AT              AT              AT
                                   30 SEPTEMBER    30 SEPTEMBER        31 MARCH
                                           2012            2011            2012
                                          £'000           £'000           £'000
Fixed assets                                                                   
Investments at fair value               149,150         126,801         138,703
Current assets                                                                 
Amounts due from brokers                      -             285               -
Prepayments and accrued income              705             730            
                                            705           1,015             916
Creditors: amounts falling due                                             
within one year                                                                
Bank overdraft                         (14,520)        (11,542)         (9,623)
Amounts due to brokers                    (149)           (557)               -
Accruals and deferred income              (149)           (142)           (165)
                                       (14,818)        (12,241)         (9,788)
Net current liabilities                (14,113)        (11,226)         (8,872)
Total assets less current               135,037         115,575         129,831
Capital and reserves                                                           
Called up share capital                  14,638          14,638          14,638
Share premium                            40,021          40,021          40,021
Capital redemption reserve                2,310           2,310           2,310
Capital reserve                          72,136          52,925          68,272
Revenue reserve                           5,932           5,681           4,590
Shareholders' funds                     135,037         115,575         129,831
Net asset value per ordinary                                               
share - note 5                                                                 
Basic                                    230.6p          197.4p          221.7p



                                  SIX MONTHS TO   SIX MONTHS TO         YEAR TO
                                   30 SEPTEMBER    30 SEPTEMBER        31 MARCH
                                           2012            2011            2012
                                          £'000           £'000           £'000
Net return before finance costs           7,261         (4,193)          13,574
and taxation                                                                   
Adjustment for (gains)/losses           (4,150)           7,189         (8,408)
on investments                                                                 
Decrease/(increase) in debtors              211              87           
(Decrease)/increase in                     (16)             (3)              20
Net cash flow from operating              3,306           3,080           5,087
Servicing of finance                       (94)           (102)           (188)
Net financial investment                                                       
Purchase of investments                 (9,787)        (12,125)        (25,492)
Sale of investments                       3,639          12,080          28,870
Net equity dividends paid               (1,961)         (1,897)         (5,322)
Movement in cash in the period          (4,897)           1,036           


Net debt at beginning of period         (9,623)        (12,578)        (12,578)
Net debt at end of period              (14,520)        (11,542)         (9,623)
Analysis of changes in net debt                                            
Brought forward:                                                               
Bank overdraft                          (9,623)        (12,578)        (12,578)
Net debt brought forward                (9,623)        (12,578)        (12,578)
Movements in period:                                                           
Cash (outflow)/inflow from bank         (4,897)           1,036           2,955
Net debt at end of period              (14,520)        (11,542)         (9,623)



                      SHARE      SHARE REDEMPTION    CAPITAL   REVENUE          
                    CAPITAL    PREMIUM    RESERVE    RESERVE   RESERVE     TOTAL
                      £'000      £'000      £'000       £'00     £'000     £'000
For the six months ended 30 September 2012                                 
At 1 April 2012      14,638     40,021      2,310     68,272     4,590   129,831
Net return on             -          -          -      3,864     3,303     7,167
Dividends paid -          -          -          -          -   (1,961)   (1,961)
final 2012                                                                      
At 30 September      14,638     40,021      2,310     72,136     5,932   135,037
For the six months ended 30 September 2011                                 
At 1 April 2011      14,638     40,021     2,310     60,396     4,402   121,767
Net return on             -          -         -    (7,471)     3,176   (4,295)
Dividends paid -          -          -         -          -   (1,933)   (1,933)
final 2011                                                                     
Unclaimed                 -          -         -          -        36        36
At 30 September      14,638     40,021     2,310     52,925     5,681   115,575
For the year ended 31 March 2012                                           
At 1 April 2011      14,638    40,021      2,310     60,396     4,402   121,767
Net return on             -         -          -      7,876     5,510    13,386
Dividends paid            -         -          -          -   (5,358)   (5,358)
Unclaimed                 -         -          -          -        36        36
At 31 March 2012     14,638    40,021      2,310     68,272     4,590   129,831


Notes to the Condensed Financial Statements

1. Basis of Preparation

The condensed financial statements have been prepared using the same accounting policies as those adopted in the 2012 annual financial report, have been prepared under the historical cost convention and are consistent with applicable UK Accounting Standards and with the Statement of Recommended Practice `Financial Statements of Investment Trust Companies and Venture Capital Trusts'.

2. Management Fee

The investment management fee is calculated and payable monthly in arrears
based on the value of the funds under management before deducting borrowings,
of 0.7% up to £100 million, 0.6% on the next £50 million, 0.55% on the next £50
million and if in excess of £200 million the fee will be reviewed. This fee is
allocated 50% to capital and 50% to revenue.

3. Tax

Owing to the Company's status as an investment company, no tax liability arises
on capital gains. No taxable profits arise as expenses exceed taxable income.

4. Basis of Returns

                            SIX MONTHS TO     SIX MONTHS TO           YEAR TO
                             30 SEPTEMBER      30 SEPTEMBER          31 MARCH
                                     2012              2011              2012
                                    £'000             £'000             £'000
Returns after tax:                                                           
Revenue                             3,303             3,176             5,510
Capital                             3,864           (7,471)             7,876
Total                               7,167           (4,295)            13,386
Weighted average number        58,551,530        58,551,530        58,551,530
of shares in issue                                                           
during the period                                                            

5. Basis of Net Asset Value Per Ordinary Share

                                       AT                AT                AT
                             30 SEPTEMBER      30 SEPTEMBER          31 MARCH
                                     2012              2011              2012
Shareholders' funds          £135,037,000      £115,575,000      £129,831,000
Ordinary shares in             58,551,530        58,551,530        58,551,530
issue at period end                                                          

6. Movements in Share Capital

                           SIX MONTHS TO     SIX MONTHS TO           YEAR TO
                            30 SEPTEMBER      30 SEPTEMBER          31 MARCH
                                    2012              2011              2012
Number of ordinary                                                          
Brought forward               58,551,530        58,551,530        58,551,530
Shares bought back and                 -                 -                 -
In issue at period end        58,551,530        58,551,530        58,551,530

7. Dividends

The first interim dividend of 2p for the quarter ended 30 June 2012 was paid to shareholders on 31 October 2012. The second interim dividend of 2p for the quarter ending 30 September 2012 will be paid on 31 December 2012.

8. Investment Trust Status

It is the intention of the Directors to conduct the affairs of the Company so
that it satisfies the conditions for approval as an investment trust company
within the meaning of section 1159 of the Corporation Tax Act 2010.

9. Status of Half-Yearly Financial Report

The financial information contained in this half-yearly financial report does
not constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. The financial information for the half years ended 30
September 2012 and 30 September 2011 has not been audited. The figures and
financial information for the year ended 31 March 2012 are extracted and
abridged from the latest published accounts and do not constitute the statutory
accounts for that year. Those accounts have been delivered to the Registrar of
Companies and include the Report of the Independent Auditors, which was
unqualified and did not include a statement under section 498 of the Companies
Act 2006.

By order of the Board

Invesco Asset Management Limited

Company Secretary

16 November 2012

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