Interim Management Statement

RNS Number : 0808Q

Investment Company PLC

28 July 2010

 

The Investment Company Plc

 

Interim Management Statement

28^th July 2010

The following statement was made by the Chairman, Sir David Thomson Bart, at the Annual General Meeting of the Company;

As set out in detail in my Statement in the Annual Report and Accounts for the year to 31^st March 2010 the Net Asset Value per ordinary share had risen over the previous twelve months from 79.98p to 265.45p.  At the 30^th June 2010 the Net Asset Value per ordinary share had slipped back to 243.93p including net revenue for the first quarter of 10.94p.  It should be borne in mind that the Company's portfolio of investments was over £13 million at 31^st March and a movement of only £187,000 or 1.44% adds or subtracts 10p per share to or from the Net Asset Value per ordinary share.

Our largest holdings which are in the prior charges of the Lloyds Banking Group, saw a decline in market price of over 10% in the quarter to 30^th June but have risen quite sharply since as the ordinary shares of the Bank have moved ahead in July up 35% in the month.  We remain confident of the attractions of these high yielding securities particularly when compared with the other issues whose dividends have been suspended at the direction of the European Commission.

When the Royal Bank of Scotland was faced with a similar obligation to suspend interest payments on certain prior charge securities we accepted gratefully that Bank's offer to buy-in the Euro-denominated loan which we held securing a profit over cost of 317%. Both of our preference share holdings in National Westminster Bank continue to receive their coupons on the due dates and market prices of these securities continue to recover.

Against a background of volatile equity markets in London (the FTSE 100 Index fell 13.4% in the quarter to end June but has risen 10% in July) the Company's portfolio continues to show the steadier performance which may be expected of the type of prior charge securities in which we specialise.

Contact:

Stephen Cockburn - Managing Director - 020 7448 4715

 

END

 

 

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