Final Results

Investment Company PLC
05 June 2007



The Investment Company plc

Preliminary Results for the year ended 31 March 2007

Chairman's Statement

I wrote to you on the 1st December last and told you that your board was looking
forward to the immediate future with confidence.  This was despite the increases
that the Bank of England had made in base rates and the fact that most of us
feel that inflation is actually running at a rather higher level than government
statistics admit.  It is now generally acknowledged that such figures as emerge
from HM Treasury are less trustworthy than they used to be in the past.

Since I wrote, the Bank of England Monetary Policy Committee has yet again
raised interest rates and some economic commentators have criticised the delay
in such increases although as always these comments have the benefit of
hindsight.  At the present time inflation is forecast to fall back from the 3.1%
figure which caused the Bank of England to write to the Chancellor to explain
why inflation had moved outside the target band.  It remains to be seen whether
such optimism is to be justified, but by the time you read this statement it may
well be that there has been a further hike in base rates.

Despite this rise in interest rates the fixed coupon preference shares, which
comprise the major part of your company's portfolio of investments, have
remained remarkably steady.  Thus a net asset value per ordinary share of
273.77p compares with 276.74p at 30 September 2006 and 283.36p at 31 March 2006.
  As I explained in my statement last year all these calculations of ordinary
share asset values are after deducting the participating preference shares in
issue at a price of 100p per share.  I went on to point out that our own
participating preference shares stand in the market at a significant premium to
their own asset value of 100p.  I said that 100p would be those shareholders'
entitlement on a return of capital or in a liquidation.  This may have been
slightly misleading.

Your directors are anxious that you should appreciate that it is not anticipated
that there should be a return of capital to participating preference
shareholders or that your company should go into liquidation, but if either of
those unlikely events were to take place at a time when the participating
preference shares are trading on the London Stock Exchange at a premium to their
underlying 100p entitlement, then preference shareholders would be entitled to
receive a sum in excess of 100p calculated by reference to the average market
price ('AMP') over the previous three months prior to such event.

Quite properly, this AMP clause as it is colloquially known, protects the
interests of such preference shareholders although, as I have mentioned before,
preference shareholders in a large and successful public company were repaid
their capital at 100p on a vote of ordinary shareholders in a decision on which
the preference shareholders were not themselves able to vote when the preference
shares had been trading at a significant premium in the market.  As I explained
in my statement last year that is one reason why your board is cautious about
investments in shares which stand above par value without such benefit as the
AMP clause which protects our own preference shareholders.

A year ago I also commented on the onerous obligations imposed by the law and
the Listing Authority on public companies of no matter what their size.   We
shall shortly have to publish quarterly statements.  Bearing in mind how little
happens in six months in the sort of markets in which your company is invested,
it will be difficult to find anything particularly exciting or informative to
say.  Nevertheless we shall have to try and we will then spend £150 posting such
statements on the London Stock Exchange Regulatory News Service.  Shareholders
should be made aware however that we will not be sending them a hard copy of
such news releases in the post as we do presently with our Interim and Final
year's announcements.

I wrote at length last time about our concerns with respect to the Courtaulds
Textile Group.  Shareholders may be aware that this company recently changed
hands for a nominal sum and a hefty contribution to the deficit in its pension
scheme; i.e. the company was worth less than nothing.   Courtaulds Textiles was
earlier taken over by Sara Lee, a very substantial American company, which has
acted with very proper responsibility to such public shareholders in its
subsidiaries as ourselves and, as part of the disposal of what had become a
catastrophic millstone, it was arranged for the Hong Kong based acquirer of the
business to guarantee the dividends and capital assets of these listed
subsidiaries.

I am very pleased to report that during the last few weeks we have been able to
assist materially in negotiating a buyout of the outside preference shareholders
in the three subsidiary companies of the Courtaulds Textile Group in which they
existed with the result that our capital has been returned to us.  We are
grateful for the honourable way in which the new owners of Courtaulds Textiles
have behaved. At the same time we are grateful for the acknowledgement that has
been given to us by other shareholders in these issues whose interests we have
protected.

Your Directors have declared a final dividend of 5p (2006: 5p) which makes a
total of 9p (2006: 9p) for the full year.  This dividend will be payable on 28
August 2007 and the shares will be quoted ex-dividend on 4 July 2007.  Since
your directors (as explained above) will be required to issue a quarterly report
on the state of the company at 30 June 2007, which is shortly before the date
fixed for our Annual General Meeting, I can advise you now that your Directors
expect that little will have changed over the next few weeks and that nothing
price sensitive is expected to have occurred between now and then.  Looking
further ahead we expect little movement in the markets in which your company
invests as long as interest rates remain reasonably stable at around current
levels.

Sir David Thomson Bt.

Chairman


5 June 2007


Consolidated Income Statement
For the year ended 31 March 2007
                                                                                  2007          2006
                                                                                     £             £

Total income                                                                      911,902       1,010,351
Administrative expenses                                                           (379,775)     (439,912)
Loan note interest                                                                (182,850)     (194,748)
Other interest payable                                                            (76)          (27,636)

Net revenue before taxation                                                       349,201       348,055
Taxation                                                                          -             (5,200)

Net revenue after taxation                                                        349,201       342,855
Dividends: Participating preference                                               (437,045)     (470,971)
Dividends: Ordinary                                                               (173,465)     (154,191)

Transfer from reserves                                                            (261,309)     (282,307)

Loss per 50p Ordinary Share
Basic and diluted                                                                 (2.41)p       (3.51)p

Net asset value per 50p Ordinary Share                                            273.77p       283.36p

All the Company's operations are continuing.



Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 March 2007
                                                                                  2007          2006
                                                                                     £             £
Distributable profits
Net revenue after taxation                                                        349,201       342,855

Non-distributable profits
Net profit on disposals of investments                                            47,008        1,446,075
Tax on realised gains                                                             -             -
Movement in unrealised appreciation of investments                                25,534        176,417

                                                                                  72,542        1,622,492

Total net recognised gains for the financial year                                 421,743       1,965,347


Consolidated Statement of Changes in Equity
For the year ended 31 March 2007


Group
                                                        Capital
                       Issued     Share   Own Shares   Redemption  Revaluation  Capital    Revenue 
                       Capital   Premium     Held       Reserve      Reserve    Reserve    Account      Total
                      £         £         £           £            £           £         £           £

Balance at 1 April    4,991,381 1,019,246 (2,919,861) 2,439,800    590,621     4,127,484 149,069     10,397,740
2005
Cancellation of
capital redemption
reserve               -         -         -           (2,439,800)  -           -         2,439,800   -
Cancellation of       (50,000)  -         -           50,000       -           -         -           -
deferred shares
Buy in of own shares  (621,500) -         -           621,500      -           -         (1,281,589) (1,281,589)
Realised capital      -         -         -           -            -           1,446,075 -           1,446,075
gains
Movement in
unrealised
appreciation of       -         -         -           -            176,417     -         -           176,417
investments
Retained loss for the -         -         -           -            -           -         (282,307)   (282,307)
period


Balance at 31 March   4,319,881 1,019,246 (2,919,861) 671,500      767,038     5,573,559 1,024,973   10,456,336
2006
Buy in of own shares  (3,750)   -         -           3,750        -           -         (16,669)    (16,669)
Realised capital      -         -         -           -            -           47,008    -           47,008
gains
Movement in
unrealised
appreciation of       -         -         -           -            25,534      -         -           25,534
investments
Retained loss for the -         -         -           -            -           -         (261,309)   (261,309)
period


Balance at 31 March   4,316,131 1,019,246 (2,919,861) 675,250      792,572     5,620,567 746,995     10,250,900
2007


Company Statement of Changes in Equity
For the year ended 31 March 2007

Company
                                                     
                                            Own      Capital
                       Issued     Share    Shares   Redemption  Revaluation   Capital    Revenue
                       Capital   Premium    Held     Reserve      Reserve     Reserve    Account       Total         
                      £         £         £        £            £            £         £            £

Balance at 1 April    4,991,381 1,019,246 -        2,439,800    602,218      4,127,484 490,112      13,670,241
2005
Cancellation of
capital redemption
reserve               -         -         -        (2,439,800)  -            -         2,439,800    -
Cancellation of       (50,000)  -         -        50,000       -            -         -            -
deferred shares
Buy in of own shares  (621,500) -         -        621,500      -            -         (1,281,589)  (1,281,589)
Realised capital      -         -         -        -            -            1,377,641 -            1,377,641
gains
Movement in
unrealised
appreciation of       -         -         -        -            69,948       -         -            69,948
investments
Retained loss for the -         -         -        -            -            -         (364,639)    (364,639)
period


Balance at 31 March   4,319,881 1,019,246 -        671,500      672,166      5,505,125 1,283,684    13,471,602
2006
Buy in of own shares  (3,750)   -         -        3,750        -            -         (16,669)     (16,669)
Realised capital      -         -         -        -            -            76,058    -            76,058
gains
Movement in
unrealised
appreciation of       -         -         -        -            190,133      -         -            190,133
investments
Retained loss for the -         -         -        -            -            -         (370,790)    (370,790)
period


Balance at 31 March   4,316,131 1,019,246 -        675,250      862,299      5,581,183 896,225      13,350,334
2007


Consolidated Balance Sheet
At 31 March 2007
                                                                2007                      2006
                                                      £            £            £            £
Non current assets
Investments at cost                                                12,828,016                12,391,868
Unrealised appreciation                                            775,390                   795,802

Portfolio investments at market value                              13,603,406                13,187,670
Current assets
Trade and other receivables                           81,184                    121,000
Investments                                           84,756                    81,224
Cash and bank balances                                465,558                   1,048,962

                                                      631,498                   1,251,186

Current liabilities
Dividends payable                                     174,818                   174,818
Trade and other payables                              152,182                   150,698

                                                      327,000                   325,516

Net current assets                                                 304,498                   925,670
Non-current liabilities
Interest bearing liabilities                                       (3,657,004)               (3,657,004)


Net assets                                                         10,250,900                10,456,336


Capital and reserves
Issued capital                                                     4,316,131                 4,319,881
Share premium                                                      1,019,246                 1,019,246
Own shares held                                                    (2,919,861)               (2,919,861)
Capital redemption reserve                                         675,250                   671,500
Revaluation reserve                                                792,572                   767,038
Capital reserve                                                    5,620,567                 5,573,559
Revenue reserves                                                   746,995                   1,024,973


Shareholders' funds                                                10,250,900                10,456,336


Net asset value per:
Participating Preference Share of 50p
(4,994,805 shares, 2006: 4,994,805 shares)                         100.0p                    100.0p
Ordinary Share of 50p
(1,919,891 shares, 2006: 1,927,391 shares)                         273.77p                   283.36p



Sir David Thomson Bt.                                                                     Approved by the Board
Stephen J. Cockburn                                                                                 5 June 2007
Directors


Company Balance Sheet
At 31 March 2007
                                                                2007                      2006
                                                      £            £            £            £
Non current assets
Investments at cost                                                12,828,016                10,998,688
Unrealised appreciation                                            862,299                   672,166

Portfolio investments at market value                              13,690,315                11,670,854
Investment in subsidiaries at cost                                 5,410,552                 5,410,552

                                                                   19,100,867                17,081,406
Current assets
Trade and other receivables                           190,604                   218,017
Cash and bank balances                                459,127                   1,042,242

                                                      649,731                   1,260,259

Current liabilities
Dividends payable                                     174,818                   174,818
Intercompany balances                                 2,416,259                 887,542
Trade and other payables                              152,183                   150,699

                                                      2,743,260                 1,213,059

Net current (liabilities)/ assets                                  (2,093,529)               47,200
Non-current liabilities
Interest bearing liabilities                                       (3,657,004)               (3,657,004)


Net assets                                                         13,350,334                13,471,602


Capital and reserves
Issued capital                                                     4,316,131                 4,319,881
Share premium                                                      1,019,246                 1,019,246
Capital redemption reserve                                         675,250                   671,500
Revaluation reserve                                                862,299                   672,166
Capital reserve                                                    5,581,183                 5,505,125
Revenue reserves                                                   896,225                   1,283,684


Shareholders' funds                                                13,350,334                13,471,602




Sir David Thomson Bt.                                                                     Approved by the Board
Stephen J. Cockburn                                                                                 5 June 2007
Directors


Consolidated Cash Flow Statement
For the year ended 31 March 2007
                                                   Notes           2007                      2006
                                                         £            £            £            £
Operating activities
Cash received from investments                           746,953                   927,335
Interest received                                        142,705                   108,325
Sundry income                                            -                         26,400
Cash paid to and on behalf of employees                  (172,344)                 (184,403)
Other cash payments                                      (210,645)                 (282,126)
UK corporation tax paid                                  -                         (5,200)


Net cash inflow from operating activities              A              506,669                   590,331
Financing activities
Bank interest                                            (76)                      (30,636)
Loan note interest paid                                  (182,850)                 (194,748)
Non-equity dividends paid                                (437,045)                 (514,371)


Net cash outflow from returns on investments and
servicing of finance                                                  (619,971)                 (739,755)

Investing activities
Purchase of investments                                  (1,881,481)               (1,227,754)
Further payment in respect of purchase of
subsidiaries                                             -                         (34,655)
Purchase of own shares                                   (16,669)                  (1,281,589)
Sale of investments                                      1,596,874                 4,142,985


Net cash (outflow)/inflow from capital
expenditure and financial investment                                  (301,276)                 1,598,987

Equity dividends paid                                                 (168,826)                 (154,255)


Net (decrease)/increase in cash and cash
equivalents                                            B              (583,404)                 1,295,308



Notes on the Consolidated Cash Flow Statement
For the year ended 31 March 2007
                                                                           2007                      2006
                                                                     £                          £
A.    Reconciliation of operating profit to net cash
      inflow from operations:
      Net revenue before taxation                                    349,201                    348,055
      UK corporation tax                                             -                          (5,200)
      Interest paid                                                  76                         30,636
      Loan note interest paid                                        182,850                    194,748
      Investment losses of trading subsidiary                        8,871                      38,166
      (Increase)/decrease in trade and other                         (31,172)                   15,926
      receivables
      Decrease in trade and other payables                           (3,157)                    (32,000)


                                                                     506,669                    590,331


B.    Reconciliation of cash flow to movement in net
      debt
      (Decrease)/increase in cash and cash equivalents
      in the year                                                    (583,404)                  1,295,308

      Change in net debt resulting from cash flows                   (583,404)                  1,295,308

      (Increase)/decrease in net debt                                (583,404)                  1,295,308
      Net (debt)/funds at 1 April 2006                               (2,608,042)                (3,903,350)

      Net debt at 31 March 2007                                      (3,191,446)                (2,608,042)



C.    Analysis of net debt                             At 31 March   Cash            At 1 April
                                                       2007          Flow                  2006
                                                       £             £            £
      Cash at bank                                     465,558       (583,404)    1,048,962
      Long term debt                                   (3,657,004)   -            (3,657,004)


                                                       (3,191,446)   (583,404)    (2,608,042)

Dividend

The Directors are recommending a final dividend of 5p per ordinary share for the
year to 31 March 2007, (2006: final 5p) which will be paid, subject to
shareholder approval, on 28 August 2007 to shareholders on the register on 6
July 2007.  The shares will be marked ex-dividend on 4 July 2007.

Note to the financial information for the year ended 31 March 2007

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 current years' financial statements.

The company's statutory accounts for the year ended 31 March 2007 have not 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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