Interim Management Statement

RNS Number : 1225Y

Investment Company PLC

27 August 2009

 



The Investment Company plc

Interim Management Statement

The following statement was made by the Chairman at the Annual General Meeting of the Company;

'As forecast in my statement of 8 July we have reinstated our £1.5m overdraft facility and we are presently engaged on a programme of purchasing quoted preference shares and other prior charge securities with double figure income yields in large companies. Over the last few months prices of similar shares have risen as confidence in Banks and Insurance businesses has been to some extent restored.

Due to the high structural gearing of the assets attributable to our ordinary shares this has resulted in an increase in net asset value per share from approximately 80p per the accounts at 31 March 2009 to over 103p per share at 30 June and 134p at the end of July.

Despite the more recent fall back in market prices caused by speculation that the European Commission may forbid Banks in receipt of state aid to pay coupons on certain debt instruments possibly including preference shares, your Board estimates that the NAV per ordinary share today remains at approximately 130p.'

Contact:

Stephen Cockburn - Managing Director - 020 7448 4715

 

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