Interim Results

Investment Company PLC
23 December 2004


UNAUDITED INTERIM STATEMENT

For the period 1st April 2004 to 30th September 2004

The Investment Company plc announces its interim results for the six months
ended 30 September 2004. The total income for the half-year amounted to
£531,840, compared with £472,003 for the six months to 30 September 2003. The
Board has resolved to pay an interim dividend on the ordinary shares of 3p in
respect of the year to 31 March 2005 (2004: 3p). It will be paid to ordinary
shareholders on the register on 7 January 2005. The shares will be quoted ex
dividend on 5 January 2005 and the dividend will be paid on 28 January 2005.

As announced at the Annual General Meeting on 6 October 2004, the unaudited net
asset value per ordinary share at 30 September 2004 was 180p (177p at 31 March
2004).

The Company continues to experience a satisfactorily regular flow of dividends
and capital values remain steady despite the recent increase in short-term
interest rates and the present uncertain out-look for interest rates in the
immediate future.

Since 1 April 1998, Stephen Cockburn's services as Managing Director have been
provided to the Company by means of an agreement with Ionian Investment
Management, now a division of Fiske plc, of which he is also an executive
director and holder of 9.99 per cent. of its issued share capital. Under this
agreement, in addition to investment management and custody services, Ionian
Investment Management has provided all day-to-day accounting, company
secretarial, office accommodation and other administrative services for the
Company. In connection with Mr Cockburn's impending retirement as an executive
director of Fiske plc, the Company has given notice to terminate this agreement
with effect from 4 January 2005. The Company has entered into a direct service
agreement with Mr Cockburn for the continued provision of his services as
Managing Director (which will include the investment management role previously
carried out by him through the arrangements with Ionian). The Company expects
shortly to enter into a new agreement with Ionian Investment Management for the
continued provision of administrative, company secretarial, office
accommodation, accountancy and custody services. These changes are not expected
to result in any change in the Company's investment policies or process or in
any material change in management costs.

The Company has today entered into conditional agreements to acquire the
entire issued share capital of New Centurion Trust Limited ('NCT'), a
private investment company owned by Miss J.B. Webb, a director of TIC, and
her sister, Mrs J.P. Brown, in consideration for new ordinary shares and
5% unsecured loan notes of TIC in amounts which will reflect the relative
net asset values of both companies on 31 December 2004. NCT holds
approximately 61.37% of TIC's issued ordinary shares, which are to be
converted into non-voting shares immediately before completion of the
acquisition. As these non-voting shares will be held within the TIC Group
following the acquisition, one effect of the transaction will be a net
reduction in the number of ordinary shares outstanding and an increase in
the gearing of the Company's ordinary shares and participating preference
shares by the prior ranking issue of 5% loan notes.

Further details of the proposed acquisition, which will be subject to approval
by independent shareholders at an extraordinary general meeting expected to be
held in February, are set out in a separate announcement released at the same
time as this announcement. A circular to shareholders, comprising listing
particulars and including notice of that meeting, is expected to be posted to
TIC shareholders as early as practicable in the New Year.

by Order of the Board
James P. Q. Harrison
Secretary
23rd December 2004


REVENUE ACCOUNT
For the six months ended 30th September 2004

                                               Half-year to   Half-year to      Year to
                                             30th September 30th September   31st March
                                                       2004           2003         2004
                                                (unaudited)    (unaudited)    (audited)
                                                          £              £            £

Total income                                        531,840        472,003      942,380
Expenses                                          (148,370)      (157,248)    (327,111)
Net revenue before taxation                         383,470        314,755      615,269
Taxation                                                  -              -            -
Net revenue after taxation                          383,470        314,755      615,269
Dividends: Participating preference                 296,153        342,914      561,132
Ordinary                                             83,958         83,958      195,901
Profit/(loss) for the period                          3,359       (112,117)    (141,764)
     Earnings/(losses) per ordinary share after
     preference dividend                               3.12p         (1.01)p       1.93p


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30th September 2004
                                               Half-year to   Half-year to      Year to
                                             30th September 30th September   31st March
                                                       2004           2003         2004
                                                (unaudited)    (unaudited)    (audited)
                                                          £              £            £

Distributable profits                               383,470        314,755      615,269

Net revenue after taxation
Non-distributable profits                            94,954        146,717      370,696
                                                                             
Net profit on disposal of investments
Writedown in value of investments                         -              -   (1,258,719)
                                                                            
Movement in unrealised (depreciation)/               (9,862)        32,906      480,089
appreciation of investments                          85,092        179,623     (407,934)
                                                                             
Total recognised gains                              468,562        494,378      207,335

BALANCE SHEET

At 30th September 2004
                                                        30th          30th         31st 
                                                   September     September        March
                                                        2004          2003         2004
                                                 (unaudited)   (unaudited)    (audited)
                                                           £             £            £
Fixed assets

Investments at cost                               11,628,686    13,146,439   11,177,872
Unrealised appreciation/(depreciation)               144,501     (292,820)      154,363
                                                  11,773,187    12,853,619   11,332,235
Current assets

Debtors                                              152,946         7,200          524
Cash at bank                                         149,921        17,823      356,353
                                                     302,867        25,023      356,877
Current liabilities

Bank overdraft                                             -       473,548            -
Dividends                                            380,111       426,872      330,161
Other creditors                                      408,248       161,774      159,707
                                                     788,359     1,062,194      489,868
Net current liabilities                            (485,492)   (1,037,171)    (132,991)

Net assets                                        11,287,695    11,816,448   11,199,244

Capital and reserves

Called-up share capital                            4,566,695     4,566,695    4,566,695
Revaluation reserve                                  144,501     (292,820)      154,363
Capital reserve brought forward                    3,622,403     4,510,426    4,510,426
Realised profits/(losses)                             94,954       146,717    (888,023)
Capital reserve carried forward                    3,717,357     4,657,143    3,622,403
Capital redemption reserve                         2,439,800     2,439,800    2,439,800
Revenue account brought forward                      415,983       557,747      557,747
Net revenue/(loss) for period                          3,359     (112,117)    (141,764)
Purchase of own shares                                     -             -            -
Revenue account carried forward                      419,342       445,630      415,983
Total shareholders' funds                         11,287,695    11,816,448   11,199,244

Net asset value per

Participating preference share                       100.00p       100.00p      100.00p
Ordinary share                                    180.55p xd    199.44p xd   177.39p xd


THE INVESTMENT COMPANY PLC
UNAUDITED CASHFLOW STATEMENT
For the six months ended 30th September 2004
                                                    Half-year to   Half-year to        Year to
                                                  30th September 30th September     31st March
                                                            2004           2003           2004
                                                     (unaudited)    (unaudited)      (audited)
                                            Notes
                                                               £              £              £
Net cash inflow from operating activities     (1)        228,558        315,295        641,353
Returns on investments and servicing of                (218,462)      (260,665)      (623,275)
finance
Taxation                                                       -              -              -
                                                          10,096         54,630         18,078
Capital expenditure and financial investment         (1,018,982)    (1,213,752)    (1,554,571)

Purchase of investments
Purchase of own shares                                         -      (498,841)      (498,841)
Sale of investments                                      911,599      1,869,536      3,144,182
                                                       (107,383)        156,943      1,090,770
Equity dividends paid                                  (109,145)      (164,173)      (249,370)
Decrease/(increase) in cash                   (2)      (206,432)         47,400        859,478


NOTES TO THE CASHFLOW STATEMENT

For the six months ended 30th September 2004

1.   Reconciliation of operating profit to           Half-year to     Half-year to        Year to
     net cashflow from operations                    30th September 30th September     31st March
                                                               2004           2003           2004
                                                        (unaudited)    (unaudited)      (audited)
                                                                  £              £              £

     Net revenue before taxation                            383,470        314,755        615,269
     Interest payable                                           244         15,322         35,018
     Deemed income distribution                            (92,127)              -              -
     (Increase)/decrease in debtors                        (65,581)        (5,576)          1,101
     Increase/(decrease) in creditors                         2,552        (9,206)       (10,035)
                                                            228,558        315,295        641,353

2.   Analysis of net debt                                   At 30th                  
                                                          September                  At 1st April
                                                               2004      Cash flow           2004

     Cash at bank                                           149,921      (206,432)        356,353
                                                            149,921      (206,432)        356,353


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 2004. Deferred tax has not been provided.
     
3.   Earnings/(losses) per share

                                                       Half-year to       Half-year to       Year to
                                                        30th September  30th September    31st March
                                                                  2004            2003          2004
                                                           (unaudited)     (unaudited)     (audited)
                                                                     £               £             £

     Net revenue after taxation                                383,470         314,755       615,269
     Participating preference dividend                       (296,153)       (342,914)     (561,132)
     Profit/(loss) attributable to ordinary                     87,317        (28,159)        54,137
     shareholders
     Number of ordinary shares in issue                      2,798,584       2,798,584     2,798,584

TEN LARGEST INVESTMENTS
At 30th September 2004                                               Market or  
                                                     %               Directors  % of total
1.  Stock                              Number    Issue        Book   valuation   portfolio

    Whitbread Hotel Co (fmly
    Swallow/Vaux)
    41/2% 'A' cum pref £1             356,640   30.03%     188,136     276,396
    61/2% 'A' cum pref £1             496,037   33.07%     414,427     493,557
    7% cum pref £1                     86,738   22.35%      63,920      91,509
                                                           666,483     861,462       7.32%
2.  Delta
    41/2% 2nd cum pref £1             767,042   39.54%     462,591     563,776
    6% 1st cum pref £1                223,444   25.80%     177,917     191,045
                                                           640,508     754,821       6.41%
3.  Royal & Sun Alliance Insurance
    Group
    7.375% cum irrd pref              750,000    0.60%     667,172     714,375       6.07%

4.  REA Holdings
    9% cum pref £1                    603,949   10.59%     495,154     637,166       5.41%

5.  Fishguard & Rosslare Railways
    and Harbour Co                    775,999   62.70%     433,040     484,999       4.12%
    31/2% gtd preference stock

6.  Right Mgnt Consultants (fmly
    Coutts)
    5p cnv pref £1 +(S)               310,000    6.20%     187,477     279,000
    8p cnv pref £1 +(S)               195,000    5.20%     195,840     195,000
                                                           383,317     474,000       4.03%
7.  Coats (fmly Coats Viyella)
    4.9% cum pref £1                  693,719    4.75%     482,588     447,449       3.80%

8.  Equitable Life Finance
    8% sub gtd bonds 2049             500,000    0.14%     303,250     440,000       3.74%

9.  Peninsular & Oriental Steam
    Navigation Company                514,151   15.38%     359,402     389,197       3.31%
    5% cum pfd stock (S)

10. John Cotton Group                 290,000   38.67%     246,931     362,500       3.08%
    131/4% cum pref £1 +
                                                         4,677,844   5,565,969      47.28%

(S) Issues with unrestricted voting rights
+   Unlisted investments at Directors' valuation

The Company has a total of 85 holdings in 72 companies.


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