Final Results

Lowland Investment Co PLC 8 November 2000 LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 Financial Highlights Unaudited Year ended Year ended 30 September Change 30 September 1999 2000 Earnings per ordinary share 14.79p 13.86p +6.71% Net dividends per ordinary share: Interim paid 5.50p 5.00p +10.00% Final recommended 8.50p 8.00p +6.25% ------ ------ ------ Total 14.00p 13.00p +7.69% Net asset value per ordinary share 486.54p 465.80p +4.45% Extracts from the Chairman's Statement Review During the year the Company's net asset value (NAV) per share rose from 465.80p to 486.54p, an increase of 4.45%. This compares with a rise in the FTSE All-Share Index of 7.19%. After a difficult first six months, the NAV in the second half rose 9.44% while the All-Share Index fell 2.61%. The UK economy grew reasonably strongly and inflation remained subdued. Many companies with sound prospects had been neglected whilst the focus was on the Technology, Media and Telecom (TMT) shares. The recent correction in the TMT area was overdue and sentiment moved back towards other sectors. In addition there was an increase in takeover activity reflecting the low valuations of long established companies. Dividend An increasing number of companies in the FTSE All-Share Index are paying low or no dividends. However, I am pleased to be able to report a further good increase in Lowland's earnings and dividend. Earnings per share for the year were 14.79p, an increase of 6.71% over last year's 13.86p. The recommended final dividend is 8.50p which brings the total for the year to 14.00p per ordinary share, compared with 13.00p last year, an increase of 7.7%. Dividends have been increased in each and every year since 1967 and the Board hope to be able to increase the dividend again next year. The yield on the shares on 29 September 2000 was 3.5% which compares with the yield on the All-Share Index of 2.1%. -MORE- - 2 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 Share Buy Backs During the year 1,545,000 shares have been bought in at an average consideration of 373p. The purchases were made at an average discount of around 16.9% so the purchases have enhanced the NAV by about 1.2%. A resolution to renew the authority will be proposed at the forthcoming Annual General Meeting (AGM). Articles of Association A resolution is being tabled at the AGM to update the Articles of Association to enable Lowland to reapply for Investment Company status. A summary of the changes can be found in the annual report and accounts which will be published shortly. The Board During the year John Morrell and Richard Smith retired from the Board. Both have made a major contribution to Lowland's results over very many years and deserve our thanks. I am delighted that Rupert Barclay and John Hancox have joined the Board. Shareholders are being asked to approve their appointment at the forthcoming AGM. Outlook Looking ahead, most commentators expect continued growth in the UK and overseas. There is, though, a possibility that the price rises in oil and other commodities may cause inflation and interest rates to rise leading to a reduction in corporate profits. Companies with high price earnings ratios and low yields may suffer a setback. However, the Lowland portfolio is well positioned to benefit from further growth in both capital and income together with further value recognition. Ian M Trotter Chairman 7 November 2000 -MORE- - 3 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 1999 Statement of Total Return (incorporating the revenue account) for the year ended 30 September 2000 Unaudited Audited Year ended 30 September Year ended 30 September 2000 1999 (restated)* Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from - 2,425 2,425 - 19,987 19,987 investments Income from fixed asset 5,715 - 5,715 5,063 - 5,063 investments Other interest receivable 119 - 119 95 - 95 and similar income ------- ------- ------ ------ ------- ------- Gross revenue and capital 5,834 2,425 8,259 5,158 19,987 25,145 gains Management fee (688) - (688) (642) - (642) Other administrative (249) - (249) (190) - (190) expenses ------- ------- ------ ------ ------- ------- Net return on ordinary activities 4,897 2,425 7,322 4,326 19,987 24,313 before interest payable and taxation Interest payable (1,859) - (1,859) (1,121) - (1,121) ------- ------- ------- ------- ------- ------- Net return on ordinary activities 3,038 2,425 5,463 3,205 19,987 23,192 before taxation Taxation on net return on ordinary - - - (13) - (13) Activities ------- ------- ------- ------- ------- ------- Net return on ordinary activities after taxation 3,038 2,425 5,463 3,192 19,987 23,179 Dividends - ordinary shares Interim paid - 5.50p (1,101) - (1,101) (1,146) - (1,146) (1999 : 5.00p) Final proposed - 8.50p (1,685) - (1,685) (1,709) - (1,709) (1999 : 8.00p) ------- ------- ------- ------- ------- ------- (2,786) - (2,786) (2,855) - (2,855) ------- ------- ------- ------- ------- ------- Transfer to reserves 252 2,425 2,677 337 19,987 20,324 ====== ====== ===== ====== ====== ====== Return per ordinary share 14.79p 11.80p 26.59p 13.86p 86.82p 100.68p ====== ====== ===== ====== ====== ====== The revenue columns of this statement represent the revenue accounts of the Company. * Restated for changes in accounting policies ( see note 5) -MORE- - 4 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 Balance Sheet at 30 September 2000 Unaudited Audited 2000 1999 £'000 £'000 Fixed Asset Investments - Listed in United Kingdom 115,292 119,183 - Listed overseas 4,423 3,533 - Unquoted at directors' valuation 1,034 1,033 ---------- ---------- 120,749 123,749 ---------- ---------- Current Assets Debtors 978 933 Cash at bank 152 416 ---------- ---------- 1,130 1,349 Creditors: amounts falling due within one year (19,446) (19,578) ---------- ---------- Net current liabilities (18,316) (18,229) ---------- ---------- Total assets less current liabilities 102,433 105,520 Creditors: amounts falling due after more than one year (6,000) (6,000) ---------- ---------- Total net assets 96,433 99,520 ---------- ---------- Capital and reserves Called-up share capital 4,955 5,341 Share premium 778 778 Other reserves 88,011 90,964 Revenue reserve 2,689 2,437 ---------- ---------- 96,433 99,520 ---------- ---------- Net asset value per ordinary share 486.54p 465.80p -MORE- - 5 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 Cash Flow Statement For the year ended 30 September 2000 Unaudited Audited 2000 2000 1999 1999 £'000 £'000 £'000 £'000 Net cash inflow from operating activities 4,873 4,131 Servicing of finance Interest paid (1,876) (1,104) ---------- ---------- Net cash outflow from servicing of finance (1,876) (1,104) Taxation UK tax recovered - 25 Overseas tax recovered 13 1 ---------- ---------- Net taxes recovered 13 26 Financial Investment Purchase of investments (42,572) (41,816) Sales of investments 46,369 42,862 ---------- ---------- Net Cash inflow from financial investment 3,797 1,046 Equity dividends paid (2,810) (2,918) Financing Purchase of own shares (5, 764) (8,817) Drawdown of short term loan 1,521 8,400 ----------- ---------- (4,243) (417) ---------- ------ (Decrease)/increase in cash (246) 764 ---------- ------ Reconciliation of net cash flow to movement in net debt (Decrease)/increase in cash as above (246) 764 Cash inflow from increase in debt (1,521) (8,400) Exchange movements (18) 13 --------- ------- Movement in net debt (1,785) (7,623) Net debt at 1 October (20,984) (13,361) ---------- ------ Net debt at 30 September (22,769) (20,984) ---------- ------ -MORE- - 6 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 Notes : 1. Share Buy Backs During the year the Company made authorised market purchases for cancellation of 1,545,000 ordinary shares of 25p. 2. Loss of Investment Company Status To enable share buy backs to be financed out of capital profits, the Company ceased to be an investment company within the meaning of Section 266 of the Companies Act 1985. However, it continued to conduct its affairs as an investment trust for taxation purposes under Section 842 of the Income and Corporation Taxes Act 1988. As such, the directors consider it necessary to continue to present the accounts in accordance with the SORP. Under the SORP, the financial performance of the company is presented in a statement of total return in which the revenue column is the profit and loss account of the Company. The Revenue column excludes net profit on disposals of investments of £ 8,505,000 (1999: £8,636,000) as calculated by reference to their carrying amounts at 30 September 1999. The Companies Act and/or FRS3 would ordinarily require this amount to be included in the profit and loss account. However, in the opinion of the directors, this would be misleading because it would obscure and distort both the revenue and capital performance of the Company, and would not show clearly the revenue profits emerging to be distributable by way of dividend. The directors therefore consider that these departures from the specific provisions of Schedule 4 of the Companies Act relating to the form and content of accounts for companies other than investment companies and these departures from accounting standards are necessary to give a true and fair view. The departures have no effect on total return or on the balance sheet. 3. Dividend The recommended final dividend of 8.50p net per ordinary share, subject to approval at the Annual General Meeting, is payable on 20 December 2000 to shareholders on the register of members at the close of business on 1 December 2000. The Company's shares will be quoted ex dividend on 27 November 2000. 4. Return per Ordinary Share Revenue return per ordinary share is based on the net return on ordinary activities after taxation of £3,038,000 (1999: £3,192,000) and on the weighted average 20,543,924 ordinary shares in issue during the year (1999: 23,022,097). Capital return per ordinary share is based on net capital gains of £2,425,000 (1999: £19,987,000) and on the weighted average 20,543,924 ordinary shares in issue during the year (1999: 23,022,097). -MORE- - 7 - LOWLAND INVESTMENT COMPANY PLC Unaudited Preliminary Results for the year ended 30 September 2000 5. Income Dividends receivable from equity shares are credited to the revenue account on an ex-dividend basis. Bank deposit interest is accounted for on an accruals basis. In accordance with Financial Reporting Standard 16, Current Taxation ('FRS 16') which became effective for accounting periods ending on or after 23 March 2000, franked investment income is now shown net of the related tax credits. The comparative figures for the year ended 30 September 1999 have been restated accordingly. Adoption of FRS 16 has no effect on the revenue or capital returns per ordinary share, nor on the net asset value per ordinary share. 6. 2000 Accounts The preliminary figures for the year ended 30 September 2000 are an extract from the latest accounts of the Company. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. 7. 1999 Accounts The figures and financial information for the year ended 30 September 1999 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement either under Section 237(2) or 237(3) of the Companies Act 1985. 8. Annual General Meeting The Annual General Meeting will be held on Tuesday, 19 December 2000 at 2.15pm at 3 Finsbury Avenue, London, EC2M 2PA. For further information please contact : James Henderson Henderson Investors Telephone: 020 7410 4100 Vicki Staveacre Henderson Press Office Telephone: 020 7410 4222

Companies

Lowland Investment Co (LWI)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today