Interim Results

Investment Company PLC
17 November 2003


THE INVESTMENT COMPANY PLC

FOUNDED
1868

REGISTERED No. 4205
ENGLAND AND WALES



UNAUDITED INTERIM REPORT
For the period 1st April 2003 to 30th September 2003

CHAIRMAN'S STATEMENT


The directors have declared an interim dividend of 3p per share payable on 19 December 2003 to shareholders on the
register at 28 November 2003. This compares with an interim dividend of 4p paid last year. The ordinary shares will be
marked ex-dividend on 26 November 2003.

The total income for the half-year amounted to £472,003 compared with £594,583 in the equivalent six months last year.
Income has been severely affected by the very late decision of the directors of Whitnash plc to pass the dividend due
on that company's preference shares on 30th September 2003. At six seconds past six o'clock in the evening of Friday,
26th September, the company announced that it would not be paying the dividend although the shares had been quoted
ex-dividend on 27th August 2003. As shareholders will be aware from the Report & Accounts at 31st March 2003, Whitnash
was the company's largest investment representing 7.82% of the total portfolio. The dividends on these holdings
represented 9.36% of the total income in the year to March 2003.

The excuse given by the directors of Whitnash for the decision not to pay the dividend already declared ex-dividend was
described as follows:

'As the current assets of Whitnash plc mainly relate to receivables from group companies and all the income of Whitnash
plc is generated from group companies its prospects depend upon the performance of Automotive Products Group Limited
and its subsidiaries.'

'The accounts of Automotive Products Group Limited for the year ended 31 December 2002 will soon be filed at Companies
House. These show that at 31 December 2002 Automotive Products Group Limited had a pension fund deficit of £26.2
million calculated in accordance with FRS17. Following changes to pension legislation announced in June 2003, this
pension fund deficit of Automotive Products Group Limited could increase further in value. These factors impact on the
recoverability of amounts owed to Whitnash and thus Whitnash's ability to pay dividends. Therefore the directors have
decided to defer the half year preferential dividends payable on 30 September 2003.'

The directors of Whitnash have stated that the position will be reviewed again after the end of the financial year
which is 31 December 2003 and we await further developments. However it is clear that TIC will be unable to maintain
its ordinary dividend this year which will automatically diminish the participating element of the dividend on the
preference shares. Nevertheless your company has revenue reserves and the dividends on Whitnash are cumulative.
Consequently the directors have decided to reduce the interim dividend from 4p to 3p and will decide the amount of the
final dividend when the results for the full year are known and when the prospects for the resumption of dividends from
Whitnash can be assessed.

The net asset value per 50p ordinary share at 30 September of 199.44p ex-dividend compares with 197.03p ex-dividend at
31 March 2003. The fall in value of the Whitnash holding in the last two days of the period under review almost
eliminated the good work achieved earlier in the period in Bulmers and by the recovery of our holdings in zero dividend
preference shares as mentioned in my statement in June. Nevertheless your directors expect TIC to weather this storm as
it has other similar ones in the past.

This Statement is being sent to all shareholders and is available to the public at the Company's registered office.


P. F. Simms                                          Registered Office:
Chairman                                             3rd Floor Salisbury House
                                                     London Wall
17th November 2003                                   London EC2M 5QS
                                                     Registered No. 4205 England

PROFIT AND LOSS ACCOUNT
For the six months ended 30th September 2003

                        Half-year to     Half-year to           Year to
                      30th September   30th September        31st March
                                2003             2002              2003
                        (unaudited)       (unaudited)         (audited)

                                 £                  £                 £

Total income               472,003            594,583         1,032,883
Expenses                   157,248            153,155            326,351


Net revenue before 
  taxation                 314,755            441,428            706,532
Taxation                         -                  -                  -

Net revenue after 
  taxation                 314,755            441,428            706,532

Dividends:      

    Participating 
     preference            342,914            403,064            648,406
    Ordinary                83,958            111,944            277,974

Loss for the period      (112,117)            (73,580)         (219,848)

(Loss)/earnings per ordinary share after
  preference dividend      (1.01)p               1.37p             2.08p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30th September 2003


                        Half-year to       Half-year to            Year to
                      30th September     30th September         31st March
                                2003               2002               2003
                         (unaudited)        (unaudited)          (audited)

                                   £                  £                  £
Distributable profits

Net revenue after taxation   314,755            441,428            706,532

Non-distributable profits

Net profit/(loss) on disposal 
  of investments             146,717          (653,146)         (533,218)

Writedown in value of 
  investments                      -                  -       (1,112,399)

Movement in unrealised 
  appreciation of investments 32,906             66,473           137,144

                             179,623          (586,673)       (1,508,473)

Total recognised gains/
  (losses)                   494,378          (145,245)         (801,941)


BALANCE SHEET
At 30th September 2003

                     30th September   30th September       31st March
                               2003             2002             2003
                        (unaudited)      (unaudited)        (audited)

                                  £                £                £

Fixed assets

Investments at cost      13,146,439       14,257,920       13,433,242

Unrealised depreciation   (292,820)        (396,397)        (325,726)

                         12,853,619       13,861,523       13,107,516
Current assets

Debtors                       7,200          979,647          231,972

Cash at bank                 17,823          287,690           14,081

                             25,023        1,267,337          246,053

Current liabilities

Bank overdraft              473,548          763,911          517,206
Dividends                   426,872          515,008          413,258
Corporation tax               1,050            1,050            1,050
Other creditors             160,724          259,836          673,113

                          1,062,194        1,539,805        1,604,627

Net current liabilities (1,037,171)        (272,468)      (1,358,574)

Net assets               11,816,448       13,589,055       11,748,942

Capital and reserves   

Called-up share capital   4,566,695        4,954,195        4,566,695

Revaluation reserve       (292,820)        (396,397)        (325,726)

Capital reserve brought 
  forward                 4,510,426        6,156,043        6,156,043

Realised profits/(losses)   146,717        (653,146)      (1,645,617)

Capital reserve carried 
  forward                 4,657,143        5,502,897        4,510,426

Capital redemption 
  reserve                 2,439,800        2,052,300        2,439,800

Revenue account brought
  forward                   557,747        1,549,640        1,549,640

Net revenue for period    (112,117)         (73,580)        (219,848)

Purchase of own shares            -                -        (772,045)

Revenue account carried 
  forward                   445,630        1,476,060          557,747

Total shareholders' 
  funds                  11,816,448       13,589,055       11,748,942


Net asset value per
Participating preference 
  share                     100.00p          100.00p          100.00p

Ordinary share              199.44p xd       235.09p xd       197.03p xd


UNAUDITED CASHFLOW STATEMENT
For the six months ended 30th September 2003

                                Half -year to     Half-year  to            Year  to
                               30th September    30th September          31st March
                                         2003              2002                2003
                       Notes      (unaudited)       (unaudited)           (audited)

                                            £                 £                   £

Net cash inflow from 
  operating activities   (1)          315,295            436,163            748,049

Returns on investments and 
  servicing of finance              (260,665)          (251,935)          (664,215)

Taxation                                    -            (1,746)            (1,746)

                                       54,630            182,482             82,088

Capital expenditure and financial investment

   Purchase of investments        (1,213,752)        (1,289,395)        (2,101,932)
   Purchase of own shares           (498,841)                  -          (273,204)
   Sale of investments              1,869,536            611,415          1,883,914

                                      156,943          (677,980)          (491,222)

Equity dividends paid               (164,173)          (192,859)          (306,127)

Increase/(decrease) in 
  cash                   (2)           47,400          (688,357)          (715,261)


NOTES TO THE CASHFLOW STATEMENT
For the six months ended 30 September 2003

1.          Reconciliation of operating profit to net cashflow from operations

                         Half -year to      Half-year  to           Year  to
                        30th September     30th September         31st March
                                  2003               2002               2003
                           (unaudited)        (unaudited)          (audited)

Net revenue before taxation    314,755            441,428            706,532

Interest payable                15,322              6,592             15,808

(Increase)/decrease in debtors (5,576)           (23,915)                289

(Decrease)/increase in 
  creditors                    (9,206)             12,058             25,420

                               315,295            436,163            748,049


2.          Analysis of net debt

                At 30th September                               At 1st April
                             2003            Cash flow                  2003

Cash at bank               17,823                3,742              14,081

Bank overdraft          (473,548)               43,658           (517,206)

                        (455,725)               47,400           (503,125)


NOTES TO THE INTERIM REPORT

1.         Financial information

The financial information above does not constitute statutory accounts within the meaning of Section 240
of the Companies Act 1985.

The interim financial information has not been audited but has been reviewed by the Company's auditors.

2.         Taxation

No tax liabilities are expected to arise from the activities in the six months to 30th September 2003.
Deferred tax has not been provided.

3.         (Losses)/earnings per share


                             Half-year to        Half-year to            Year to
                           30th September      30th September         31st March
                                     2003                2002               2003
                              (unaudited)         (unaudited)          (audited)
                                        £                   £                  £

Net revenue after taxation         314,755            441,428            706,532

Participating preference 
  dividend                       (342,914)          (403,064)          (648,406)

Loss)/profit attributable to 
  ordinary shareholders           (28,159)             38,364             58,126

Number of ordinary shares in 
  issue                          2,798,584          2,798,584          2,798,584


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