Interim Results- 1 April 1999 to 30 September 1999

Investment Co PLC
19 November 1999


The Investment Company plc

Unaudited Interim Statement

For the period 1 April 1999 to 30 September 1999


                                     Half-year to    Half-year to     Year to
                                       30-Sep-99      30-Sep-98      31-Mar-99
                                                      (restated)    (restated)
                                           £              £             £
Total income                             842,494        768,589     1,462,358
Expenses                                 170,408        172,847       348,933
Net revenue, before taxation             672,086        595,742     1,113,425
Taxation                                 (12,761)          (348)     (174,607)
Net revenue, after taxation              684,847        596,090     1,288,032

Dividends Participating Pref.            476,893        449,642       831,156 

          Ordinary                        69,964         55,971       153,921
Transfer to reserves                     137,990         90,477       302,955


Earnings per ordinary share after
preference dividend                        7.43p          5.23p        16.33p

NAV per ordinary share                   339.34p        310.73p       335.80p


Statement of total recognised gains and losses

Distributable profits:-
Net revenue, after taxation              684,847        596,090      1,288,032

Non-distributable profits:-
Net profit on disposal of investments    975,022        507,454      1,520,239
Tax on realised gains                   (117,992)             0      
(161,033)
Movement in unrealised appr/(depr)      (909,979)       527,647        165,107
                                         (52,949)     1,035,101      1,524,313

Total recognised gains                   631,898      1,631,191      2,812,345


The Directors have declared an interim dividend of 2.5p per Ordinary Share
payable on 1st February 2000 to shareholders on the register at 6th January
2000.  This payment represents an increase of 0.5p over the interim dividend
of 2p paid last year.  The Directors expect at least to maintain a final
dividend of 3.5p to make a total dividend for the current financial year of
not less than 6p (1998/99: 5.5p).  On the assumption of an unchanged final
dividend, the increase in the interim dividend will result in an additional
0.125p per share becoming payable on 1st October 2000 to holders of the
Participating Preference Shares, making a total annual payment of 8p per
Participating Preference Share (1998/99: 7.875p).

In view of the abolition of ACT with effect from 6 April 1999 the directors
have presented the revenue account of the company showing dividends received
net of any tax credits.  Interest payable under deduction of income tax and
unfranked income has been shown gross.  The relevant figures for previous
periods have been restated on the same basis so that they are comparable. 
Foreign Income Dividends (FIDs) also ceased to exist with effect from 6 April
but premiums received on the redemption of preference shares are still
regarded as distributions.  Accordingly we show these Deemed Distributions net
of any tax credit and last year's receipts of a non-recurring nature (formerly
known as Deemed FIDs) have been adjusted similarly on to a net and therefore
comparable basis.

Total operating income rose from £768,589 to £842,494.  Non-recurring income
was lower at £102,180 compared with £166,859.  However net dividends received
rose from £500,643 to £615,697, an increase of 23%.  To a large extent this
reflects the impact of Clause 23 of Schedule 3 to the Finance Act 1998 which
had the effect of increasing dividends on preference shares paid on or after 6
April 1999 to the old gross rates applicable on issues in existence prior to 6
April 1974.  The impact of these increased dividends had not surprisingly
already had an impact on the market prices of those preference shares affected
in anticipation of the actual payment.  I commented on this in my Interim
Report at this time last year.  Consequently the net asset value per ordinary
share has not changed to any significant extent in the six months.  In fact,
the several increases in short-term interest rates have caused many fixed
interest securities to decline in value since the Spring. Over the six months
to 30th September the FTSE Actuaries Government Securities (UK) Index fell
8.9% and the FTSE Actuaries Fixed Interest Index fell 5.8%.

We are pleased that a number of takeover bids and preference share redemptions
have again been experienced which has enabled our asset value to out-perform
the general trend of fixed interest security indices.  Holdings in the
following companies have been redeemed:  Hewetson, Reed, Glynwed, Rio Tinto,
CGU, Airsprung, Whitbread, Swan Hill and Johnson Matthey.  In addition
Portsmouth & Sunderland were the subject of a takeover bid.  Investment Trusts
have also continued to buy-in their preference shares and we have seen
redemptions by the following trusts:  Edinburgh, Temple Bar, Scottish, Murray
International, Dunedin Income & Growth and Finsbury Trust.

With the shrinking pool of preference shares in which the company has
successfully found investment opportunities over the last few decades, your
Board is now widening the Company's sphere of operation into loans or unquoted
preference issues with equity participation.  Our experience to date is that
such adventurous investments, while requiring careful prior analysis, can be a
fruitful source of both revenue and capital profit.  While the embedded value
in the company's unique portfolio of preference shares has now been largely
realised or recognised in current share prices the Board looks forward to
finding further opportunities for profitable diversification.

The restated results for the year to 31st March 1999 are extracted from the
Company's full accounts for the year which received an unqualified auditor's
report and have been filed with the Registrar of Companies.

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

Registered Office:                                                 
18th Floor  Royex House                                          
Aldermanbury Square                                          P F SIMMS
London EC2V 7HR                                               Chairman

Registered No. 4205 England                         19th November 1999


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