Final Results

Investment Company PLC
28 July 2004



The Investment Company plc - Preliminary Results for the year ended 31 March
2004





Dividend



The Directors have declared a second interim dividend, in lieu of the final, for
the year to 31 March 2004 of 4p (2003:6p) making a total for the year of 7p
(2003:10p). The dividend on the Participating Preference shares payable on 1
October 2004 will therefore amount to 4.75p (2003:5.5p).



The second interim dividend will be paid on 9 September 2004 to shareholders on
the share register on 13 August 2004. The shares will go ex-dividend on 11
August 2004.




REVENUE ACCOUNT

For the year ended 31st March 2004
                                                                                         2004              2003

                                                                                    Unaudited           Audited
                                                                                            £                 £
Total income                                                                          942,380         1,032,883
Expenses                                                                            (327,111)         (326,351)
Net revenue before taxation                                                           615,269           706,532
Taxation                                                                                    -                 -
Net revenue, after taxation                                                           615,269           706,532
Dividends paid and proposed                                                         (757,033)         (926,380)
Transfer from reserves                                                              (141,764)         (219,848)
Earnings per 50p Ordinary Share                                                         1.93p             2.08p
Net asset value per 50p Ordinary Share                                                177.39p           197.03p
All of the Company's operations are continuing.







STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 31st March 2004
                                                                                     2004              2003

                                                                                Unaudited           Audited
                                                                                        £                 £
Distributable profits

Net revenue, after taxation                                                       615,269           706,532

Non-distributable profits

Net profit/(loss) on disposals of investments                                     370,696         (533,218)
Writedown in value of investments                                             (1,258,719)       (1,112,399)
                                                                                (888,023)       (1,645,617)
Tax on realised gains                                                                   -                 -
Movement in unrealised appreciation of investments                                480,089           137,144
                                                                                (407,934)       (1,508,473)
Total recognised gains and losses for the financial                               207,335         (801,941)
year






BALANCE SHEET

At 31st March 2004
                                                                31st March 2004                  31st March 2003

                                                                      Unaudited                          Audited
                                                              £               £                £               £
Fixed assets

Investments at cost                                                  11,177,872                       13,433,242
Unrealised appreciation/                                                154,363                        (325,726)
(depreciation)
Investments at market value                                          11,332,235                       13,107,516


Current assets

Debtors                                                     524                          231,972
Cash at bank                                            356,353                           14,081
                                                        356,877                          246,053
Current liabilities

Bank overdraft                                                -                          517,206
Dividends                                               330,161                          413,258
Other creditors                                         159,707                          674,163
                                                        489,868                        1,604,627
Net current liabilities                                               (132,991)                      (1,358,574)

Net assets                                                           11,199,244                       11,748,942



Capital and reserves

Called up share capital                                               4,566,695                        4,566,695
Revaluation reserve                                                     154,363                        (325,726)
Capital reserve                                                       3,622,403                        4,510,426
Capital redemption reserve                                            2,439,800                        2,439,800
Revenue reserves carried forward                                        415,983                          557,747
Shareholders' funds                                                  11,199,244                       11,748,942

Net asset value per:
Participating Preference Share of 50p
  (6,234,805 shares)                                                    100.00p                          100.00p
Ordinary Share of 50p
  (2,798,584 shares)                                                    177.39p                          197.03p









CASH FLOW STATEMENT

For the year ended 31st March
2004
                                                                         2004                            2003

                                                                    Unaudited                         Audited
                                        Notes               £               £               £               £
Operating activities

Cash received from investments                        850,366                         894,327
Interest received                                      90,871                         134,497
Sundry income                                           1,142                           4,059
Cash paid to and on behalf of employees              (66,353)                        (66,435)
Other cash payments                                 (234,673)                       (218,399)
Net cash inflow from                        1                         641,353                         748,049
  operating activities

Returns on investments and
  servicing of finance
Interest paid                                        (35,018)                        (15,808)
Non-equity dividends paid                           (588,257)                       (648,407)

Net cash outflow from returns on                                    (623,275)                       (664,215)
  investments and servicing of finance

Taxation

UK corporation tax repaid                                   -                               -
UK corporation tax paid                                     -                         (1,746)

                                                                            -                         (1,746)
Capital expenditure and
  financial investment
Purchase of investments                           (1,554,571)                     (2,101,932)
Purchase of own shares                              (498,841)                       (273,204)
Sale of investments                                 3,144,182                       1,883,914

Net cash inflow/(outflow) from capital                              1,090,770                       (491,222)
  expenditure and financial investment

Equity dividends paid                                               (249,370)                       (306,127)


Increase/(decrease) in cash                 2                         859,478                       (715,261)
  and cash equivalents






NOTES ON THE CASH FLOW STATEMENT

For the year ended 31st March 2004
                                                                      2004                                2003

                                                                 Unaudited                             Audited
                                                                         £                                   £
1.    Reconciliation of operating
      profit to
      net cash inflow from operations:
      Net revenue before taxation                                  615,269                             706,532
      Interest paid                                                 35,018                              15,808
      Decrease in debtors                                            1,101                                 289
      (Decrease)/increase in creditors                            (10,035)                              25,420
                                                                   641,353                             748,049

2.    Analysis of net funds
                                                             At 31st March              Cash      At 1st April
                                                                      2004              Flow              2003
                                                                         £                 £                 £
      Bank overdraft                                                     -           517,206         (517,206)
      Cash at bank                                                 356,353           342,272            14,081
                                                                   356,353           859,478         (503,125)







Note to the financial information for the year ended 31 March 2004



The financial information does not constitute statutory financial statements
within the meaning of Section 240 of the Companies Act 1985 (as amended). These
statements have been prepared on a consistent basis with the accounting policies
as stated in the previous and current years' financial statements.



The company's statutory accounts for the year ended 31 March 2004 have not yet
been signed and have not been reported on by the company's auditors.



Copies of this announcement are available from the company's registered office
at 3rd Floor, Salisbury House, London Wall, London, EC2M 5QS.


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