Final Results

RNS Number : 4385Z

Lowland Investment Co PLC

11 December 2014

 



LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

This announcement contains regulated information

Performance Highlights	30 September 2014	Change since 30 September 2013
Net Asset Value Total Return per share(1)	1,345.6p	+5.7%
Net Revenue Return per share	39.4p	+7.4%
Share price	1,355.0p	+4.9%
Dividend for the year	37.0p	+8.8%
FTSE All-Share Index Total Return	5,417.9	+6.1%
	30 September 2014	30 September 2013
Dividend Yield (2)	2.6%	2.4%
Gearing	13.3%	13.9%
Premium(3)	0.7%	1.4%
Ongoing charge     - excluding the performance fee	0.56%	0.57%
- including the performance fee	0.85%	0.87%

⁽¹⁾   Net asset value total return (including dividends reinvested).

⁽²⁾   Based on the share price at the year end.

⁽³⁾   Calculated using year end audited NAVs including current year revenue.

Sources: Morningstar for the AIC, Henderson, Datastream.

MANAGEMENT REPORT

Commenting on the results Chairman, Peter Troughton, said:

Performance

During the year the Net Asset Value ("NAV") on a total return basis rose 5.7%, while the FTSE All-Share Index Total Return rose 6.1%.  The share price total return was 4.9%, with the shares trading at a small premium to NAV similar to the last year end. The shares in medium and smaller-sized companies underperformed after several years of strong performance. Similarly the industrial holdings which have added considerable value in recent years were weaker as concerns about the strength of the global economy surfaced.

Overall the operating performance of the companies held have been satisfactory, and they have delivered good dividend increases. Our underlying confidence in the inherent strengths of these companies persuaded us to retain a reasonable level of gearing. Borrowing was 13.3% at the year end.

Total Return Performance Comparison

To 30 September 2014	3 years %	5 years %	10 years %
Net Asset Value(1)	81.8	140.5	206.7
Share price(1)	95.0	162.7	220.1
AIC UK Equity Income Sector NAV(2)	64.2	91.9	148.1
FTSE All-Share Index(3)	47.9	59.1	120.2

   Source:

(1)     Morningstar for the AIC.  Using cum income fair value net asset value for three and five years and capital net asset value plus income reinvested for 10 years.

(2)     Morningstar for the AIC. The performance of the AIC UK Equity Income Sector (size weighted average).

(3)     Morningstar for the AIC (gross income reinvested).

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Dividends

The total dividend for the year, subject to shareholder approval will be 37p, which compares with 34p last year: an increase of 8.8%. The earnings per share for the year are 39.4p per share, compared to 36.7p per share last year. This means £644,000 will be transferred to the revenue reserve. The revenue reserve exists to smooth the long term dividend growth. The dividend growth over the last ten years has been increased on average at more than 7.5% p.a., which means it has slightly more than doubled in the period.

Ongoing Charges and Fees

A performance fee of £1.073m (wholly charged to capital) was paid in respect of the year to 30 September 2014. This was the result of the NAV's growth of 82.3% over the last three years compared with the FTSE All-Share rise of 47.9%. How the performance fee is calculated is shown in the Annual Report. This fee, and the basic management fee of 0.5% of net assets, is capped at a total of 0.75% of net chargeable assets. The cap has reduced the performance fee by £19.2m, since the performance fee and cap were introduced in 1 October 2010. Total ongoing charges, the management fee and other non-interest expenses as a percentage of shareholders' funds were 0.56% (2013: 0.57%) excluding the performance fee and 0.85% (2013: 0.87%) including the performance fee.

Investment Review

This year, our bias to smaller companies and industrials has detracted from performance, after five years of contributing considerably to our results.  During the year we examined the attribution of performance over the long term and this confirmed that it has been the smaller company holdings that have added most value. However, they have often been more volatile in their return profile. It has always been important to blend large, medium and small companies to provide diversification to reduce the volatility of returns. 

The Lowland Board believe that the Fund Manager's main focus has to be on the individual stock rather than working to a tightly prescribed weighting in different sectors or size of company. For instance the Fund Manager has increased exposure to AIM stocks and they now account for 12.8% of the portfolio. The AIM Index fell in the year under review by 10.1%, but it has been individual stocks, quoted on AIM, such as Velocys and Scapa that have been among the most important contributors to the portfolio during the year. This flexible approach allows the Fund Manager broad scope to find the best value across the equity market.

Share Issuance

The Board will only issue shares if there is unfulfilled strong demand; during the year we issued 325,000 new shares at an average premium to NAV of 4.4%. No shares were bought back.

.

Board

On 14 July 2014 Duncan Budge was appointed to the Board. He brings to the Board valuable experience from his extensive career in the investment trust sector gained whilst at RIT Capital Partners plc.

Regulatory & Alternative Investment Fund Managers Directive ("AIFMD")

In accordance with the AIFMD, the Company has appointed Henderson Investment Funds Limited to act as its Alternative Investment Fund Manager. HSBC Bank plc has been appointed as the Company's Custodian and Depositary. Further details are contained in the Annual Report. The work associated with the implementation of the AIFMD was completed in due time with the support of Henderson. This work, of course, has been necessary, but it has taken up a considerable amount of time during Board meetings over the past year.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Annual General Meeting

The Annual General Meeting will be held at the offices of Henderson on 20 January 2015 at 12.30 pm. Full details of the business to be conducted at the meeting are set out in the Notice of Meeting which will be sent to shareholders with the Annual Report. As usual our Fund Manager, James Henderson, will be making a presentation and all shareholders are most welcome to attend.

Outlook

Dividend growth has lagged capital growth over the last five years and therefore the dividend yield has fallen. The Board believes that strong dividend growth over time is an important objective.  The Fund Manager believes this is achievable without compromising capital growth.  The Board takes the positive view that the potential total return from equities over the medium term is attractive.

Principal Risks and Uncertainties

The Board, with the assistance of the Manager, has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate these risks as far as possible. The Board's policy on risk management has not changed from last year. These key risks fall broadly under the following categories:

·     Investment and Strategy

An inappropriate investment strategy or poor execution, for example, in terms of asset allocation or level of gearing, may result in underperformance against the Company's benchmark index and the companies in its peer group, and also in the Company's shares trading on a wider discount. The Board manages these risks by ensuring a diversification of investments and a regular review of the extent of borrowings. Henderson operates in accordance with investment limits and restrictions and policy determined by the Board, which includes limits on the extent to which borrowings may be employed. The Board reviews the limits and restrictions on a regular basis and Henderson confirms adherence to them every month. Henderson provides the Board with management information, including performance data and reports and shareholder analyses. The Directors monitor the implementation and results of the investment process with the Fund Manager at each Board meeting and monitor risk factors in respect of the portfolio. Investment strategy is reviewed at each meeting.

·     Market

Market risk arises from uncertainty about the future prices of the Company's investments. This is commented on in note 14.1 in the Annual Report.

·     Accounting, legal and regulatory risk

In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010. A breach of Section 1158 could result in the Company losing investment trust status and, as a consequence, realised gains in the Company's portfolio would be subject to Corporation Tax. Compliance with the requirements of Section 1158 are monitored by Henderson and the results are reported at each Board meeting. The Company must comply with the provisions of the Companies Act and, since its shares are listed on the London Stock Exchange, the UKLA's Listing and Disclosure and Transparency Rules ("UKLA Rules"). A breach of the Companies Act could result in the Company and/or the directors being fined or the subject of criminal proceedings. A breach of the UKLA Rules could result in the suspension of the Company's shares; which in turn would breach Section 1158. The Board relies on its Company Secretary and advisers to ensure adherence to the Companies Act and the UKLA Rules.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

·     Operational

Disruption to, or the failure of, Henderson's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting or monitoring of the Company's financial position.  Henderson contracts some of the operational functions (principally those relating to trade processing, investment administration and accounting), to BNP Paribas Securities Services.  Details of how the Board monitors the services provided by Henderson and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal controls section in the Annual Report.

·     Financial

The financial risks faced by the Company include market price risk, interest rate risk, liquidity risk, currency risk and credit and counterparty risk. Details of these risks and how they are managed

are disclosed in note 14 in the Annual Report.

Statement of Directors' Responsibilities under DTR 4.1.12

Each of the Directors, confirms that, to the best of his knowledge:

•     the Company's financial statements, which have been prepared in accordance with UK Accounting Standards on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

•     the Strategic Report and financial statements include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

Signed for and on behalf of the Board

Peter Troughton

Chairman

10 December 2014

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Audited Income Statement

	Year ended 30 September 2014			Year ended 30 September 2013
	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains on investments held at fair value through profit or loss	-	10,172	10,172	-	78,491	78,491
Income from investments	13,495	-	13,495	12,342	-	12,342
Other interest receivable and similar income	173	-	173	115	-	115
	---------	---------	---------	---------	---------	---------
Gross revenue and capital gains	13,668	10,172	23,840	12,457	78,491	90,948
Management fee	(1,668)	-	(1,668)	(1,362)	-	(1,362)
Performance fee	-	(1,073)	(1,073)	-	(938)	(938)
Other administrative expenses	(513)	-	(513)	(472)	-	(472)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities before finance charges and taxation	11,487	9,099	20,586	10,623	77,553	88,176
Finance charges	(845)	-	(845)	(875)	-	(875)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities before taxation	10,642	9,099	19,741	9,748	77,553	87,301
Taxation on net return on ordinary activities	(49)	-	(49)	(38)	-	(38)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities after taxation	10,593	9,099	19,692	9,710	77,553	87,263
	=====	=====	=====	=====	=====	=====
Return per ordinary share - basic and diluted (note 4)	39.4p	33.9p	73.3p	36.7p	293.4p	330.1p
	=====	=====	=====	=====	=====	=====

The total columns of this statement represent the Profit and Loss Account of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations. The Company had no recognised gains or losses other than those disclosed in the Income Statement. There is no material difference between the net return on ordinary activities before taxation and the net return for the financial years stated above and their historical cost equivalents.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Reconciliation of Movements in Shareholders' Funds

Year ended 30 September 2014	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 1 October 2013	6,642	55,514	1,007	275,464	8,575	347,202
Net return on ordinary   activities after taxation	-	-	-	9,099	10,593	19,692
Share issue proceeds	81	4,409	-	-	-	4,490
Third interim dividend (8.5p) for the year ended 30 September 2013 paid 31 October 2013	-	-	-	-	(2,268)	(2,268)
Final dividend (9.0p) for the year ended 30 September 2013 paid 31 January 2014	-	-	-	-	(2,420)	(2,420)
First interim dividend (9.0p) for the year ended 30 September 2014 paid 30 April 2014	-	-	-	-	(2,420)	(2,420)
Second interim dividend (9.0p) for the year ended 30 September 2014 paid 31 July 2014	-	-	-	-	(2,420)	(2,420)
	---------	----------	----------	------------	----------	------------
At 30 September 2014	6,723	59,923	1,007	284,563	9,640	361,856
	=====	=====	=====	======	=====	======
Year ended 30 September 2013	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 1 October 2012	6,604	53,561	1,007	197,911	7,318	266,401
Net return on ordinary activities after taxation	-	-	-	77,553	9,710	87,263
Share issue proceeds	38	1,953	-	-	-	1,991
Second interim dividend (7.5p) for the year ended 30 September 2012 paid 31 October 2012	-	-	-	-	(1,981)	(1,981)
Final dividend (8.0p) for the year ended 30 September 2012 paid 31 January 2013	-	-	-	-	(2,113)	(2,113)
First interim dividend (8.0p) for the year ended 30 September 2013 paid 30 April 2013	-	-	-	-	(2,113)	(2,113)
Second interim dividend (8.5p) for the year ended 30 September 2013 paid 31 July 2013	-	-	-	-	(2,246)	(2,246)
	----------	----------	----------	-----------	----------	------------
At 30 September 2013	6,642	55,514	1,007	275,464	8,575	347,202
	=====	=====	=====	======	=====	======

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Audited Balance Sheet

at 30 September

	2014 £'000	2013 £'000
Investments held at fair value through profit or loss
Listed at market value in the United Kingdom	334,223	335,913
Quoted at market value on AIM	52,380	36,523
Listed at market value overseas	22,604	22,140
Unquoted	846	846
	-----------	-----------
	410,053	395,422
	-----------	-----------
Current assets
Debtors	1,839	1,725
Cash at bank	1,756	1,310
	-----------	-----------
	3,595	3,035
Creditors: amounts falling due within one year	(51,792)	(51,255)
	-----------	-----------
Net current liabilities	(48,197)	(48,220)
	-----------	-----------
Net assets	361,856	347,202
	=======	=======
Capital and reserves
Called up share capital	6,723	6,642
Share premium account	59,923	55,514
Capital redemption reserve	1,007	1,007
Other capital reserves	284,563	275,464
Revenue reserve	9,640	8,575
	-----------	-----------
Total Shareholders' funds	361,856	347,202
	=======	=======
Net asset value per ordinary share - basic and diluted (note 7)	1,345.6p	1,306.9p
	=======	=======

The Company does not have any dilutive securities; therefore the basic and diluted returns per share are the same.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Audited Cash Flow Statement

for the year ended 30 September

	2014 £'000	2014 £'000	2013 £'000	2013 £'000
Net cash inflow from operating activities		10,368		10,199
Servicing of finance
Interest paid	(821)		(941)
	----------		----------
Net cash outflow from servicing of finance		(821)		(941)
Taxation
Tax recovered	23		26
	----------		----------
Net tax recovered		23		26
Financial investment
Purchases of investments	(50,392)		(53,646)
Sales of investments	46,154		38,463
	-----------		-----------
Net cash outflow from financial investment		(4,238)		(15,183)
Equity dividends paid		(9,528)		(8,453)
		----------		----------
Net cash outflow before financing activities		(4,196)		(14,352)
Financing
Proceeds from issue of ordinary shares	4,490		1,991
Net loans drawn down	163		11,485
	----------		----------
		4,653		13,476
		----------		----------
Increase/(decrease) in cash		457		(876)
		======		======
Reconciliation of net cash flow to movement in net debt for the year ended 30 September		2014 £'000		2013 £'000
Increase/(decrease) in cash as above		457		(876)
Net cash inflow from movement in loans		(163)		(11,485)
Exchange movements		(11)		9
		----------		---------
Movement in net debt		283		(12,352)
Net debt at 1 October		(48,434)		(36,082)
		----------		----------
Net debt at 30 September		(48,151)		(48,434)
		=======		=======

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Notes to the Financial Statements:

1.

Accounting policies

The financial statements have been prepared on a going concern basis and under the historical cost basis of accounting, modified to include the revaluation of investments at fair value. The financial statements have been prepared in accordance with the Companies Act 2006 and United Kingdom Generally Accepted Accounting Practice and with the Statement of Recommended Practice ('the SORP') for investment trusts issued by the Association of Investment Companies ('the AIC') in January 2009. The Company's operations are of a continuing nature. The Company's accounting policies are consistent with the prior year.

2.	Income from investments	2014 £'000	2013 £'000
	UK dividends:
	Listed investments	10,633	9,707
	Unlisted	40	35
		---------	--------
	UK dividends	10,673	9,742
		---------	--------
	Non UK dividends:
	Overseas dividend income	2,618	2,288
	Property income dividends	204	200
	Interest income	-	112
		---------	---------
	Non UK dividends	2,822	2,600
		---------	---------
		13,495	12,342
		=====	=====

3.	Other interest receivable and similar income	2014 £'000	2013 £'000
	Stock lending commission	80	81
	Income from underwriting	93	34
		---------	---------
		173	115
		=====	=====

At 30 September 2014 the total value of securities on loan by the Company for stock lending purposes was £4,920,000 (2013: £29,012,000). The maximum aggregate value of securities on loan at any time during the year ended 30 September 2014 was £42,756,000 (2013: £54,723,000). The Company's agent holds collateral comprising FTSE 100 stocks and a French government bond with a collateral value of £5,984,000 (2013: £31,142,000) amounting to a minimum of 122% (2013: minimum 107%) of the market value of any securities on loan. Stock lending commission has been shown net of brokerage fees of £34,000 (2013: £35,000).

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Notes to the Financial Statements (continued):

4.	Return per ordinary share - basic and diluted
	The return per ordinary share is based on the net return attributable to the ordinary shares of £19,692,000 (2013: £87,263,000) and on 26,875,852 ordinary shares (2013: 26,443,043) being the weighted average number of ordinary shares in issue during the year. The return per ordinary share can be further analysed between revenue and capital, as below.
		2014 £'000	2013 £'000
	Net revenue return	10,593	9,710
	Net capital return	9,099	77,553
		---------	----------
	Net total return	19,692	87,263
		=====	=====
	Weighted average number of ordinary shares in issue during the year	26,875,852	26,433,043
	Revenue return per ordinary share	39.4p	36.7p
	Capital return per ordinary share	33.9p	293.4p
		-----------	-----------
	Total return per ordinary share	73.3p	330.1p
		======	======
	The Company does not have any dilutive securities, therefore the basic and diluted returns per share are the same.

5.	Dividends paid and payable on the ordinary shares
	Dividends on ordinary shares	Record Date	Payment Date	2014 £'000	2013 £'000
	Second interim dividend (7.5p)   for the year ended 30 September 2012	12 October 2012	31 October 2012	-	1,981
	Final dividend (8.0p) for the year ended 30 September 2012	4 January 2013	31 January 2013	-	2,113
	First interim dividend (8.0p) for the year ended 30 September 2013	5 April 2013	30 April 2013	-	2,113
	Second interim dividend (8.5p)  for the year ended 30 September 2013	5 July 2013	31 July 2013	-	2,246
	Third interim dividend (8.5p) for the year ended 30 September 2013	11 October 2013	31 October 2013	2,268	-
	Final dividend (9.0p) for the year ended 30 September 2013	10 January 2014	31 January 2014	2,420	-
	First interim dividend (9.0p)  for the year ended 30 September 2014	4 April 2014	30 April 2014	2,420	-
	Second interim dividend (9.0p) for the year ended 30 September 2014	4 July 2014	31 July 2014	2,420	-
				---------	---------
				9,528	8,453
				=====	=====

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Notes to the Financial Statements (continued):

The third interim dividend and the final dividend for the year ended 30 September 2014 have not been included as a liability in these financial statements.  The total dividends payable in respect of the financial year, which form the basis of the retention test under Section 1158 of the Corporation Tax Act 2010, are set out below.
			2014 £'000
	Revenue available for distribution by way of dividend for the year		10,593
	First interim dividend (9.0p) for the year ended 30 September 2014		(2,420)
	Second interim dividend (9.0p) for the year ended 30 September 2014		(2,420)
	Third interim dividend (9.0p) for the year ended 30 September 2014		(2,420)
	Final dividend (10.0p) for the year ended 30 September 2014 (based on 26,892,427 ordinary shares in issue at 10 December 2014)		(2,689)
			----------
	Revenue Surplus		664
			=====
		For section 1158 purposes the Company's undistributed revenue represents 4.8% of the income from investments.

6.	Called up share capital
		Number of shares entitled to dividend	Total number of shares	Nominal value of shares £'000
	At 30 September 2013	26,567,427	26,567,427	6,642
	New shares allotted in the year	325,000	325,000	81
	At 30 September 2014	26,892,427	26,892,427	6,723
During the year, the Company issued 325,000 ordinary shares for total proceeds of £4,490,000 (2013: £1,991,000).

7.	Net asset value per ordinary share
	The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £361,856,000 (2013: £347,202,000) and on 26,892,427 (2013: 26,567,427) shares in issue on 30 September 2014. The movements during the year of the assets attributable to the ordinary shares were as follows:

		2014 £'000	2013 £'000
	Total net assets at 1 October	347,202	266,401
	Total net return on ordinary activities after taxation	19,692	87,263
	Share issue proceeds	4,490	1,991
	Net dividends paid in the year: Ordinary shares	(9,528)	(8,453)
		----------	----------
	Net assets attributable to the ordinary shares at 30 September	361,856	347,202
		======	======

8.

Going Concern Statement

The Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the Company consist mainly of securities which are readily realisable and, accordingly, it has adequate financial resources to continue in operational existence for the foreseeable future. In reviewing the position as at the date of the Annual Report, the Board has considered the 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', published by the Financial Reporting Council.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Notes to the Financial Statements (continued):

9.

Related Party Transactions

The Company's current related parties are its Directors and Henderson. There have been no material transactions between the Company and its Directors during the year and the only amounts paid to them were in respect of Directors' remuneration for which there were no outstanding amounts payable at the year end. In relation to the provision of services provided by Henderson, other than the fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with Henderson, affecting the financial position of the Company during the year under review.

10.

2014 Annual Report

The figures and financial information for the year ended 30 September 2014 are extracted from the Company's annual financial statements for that period and do not constitute statutory accounts.  The Company's annual financial statements for the year to 30 September 2014 have been audited but have not yet been delivered to the Registrar of Companies.  The Auditors' Report on the 2014 annual financial statements was unqualified, did not include a reference to any matter to which the Auditors drew attention without qualifying the report, and did not contain any statements under section 498 of the Companies Act 2006.

11.

2013 Financial Information

The figures and financial information for the year ended 30 September 2013 are compiled from an extract of the published accounts for that year and do not constitute statutory accounts.  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 under sections 498(2) or 498(3) of the Companies Act 2006.

12.	Dividend
	The final dividend, if approved by the shareholders at the Annual General Meeting, of 10.0p per ordinary share will be paid on 30 January 2015 to shareholders on the register of members at the close of business on 9 January 2015. This will take the total dividends for the year to 37.0p (2013: 34.0p). The Company's shares will be traded ex-dividend on 8 January 2015.

13.	Annual Report
	The Annual Report will be posted to shareholders in December 2014 and will be available on the Company's website (www.lowlandinvestment.com) or in hard copy format from the Company's Registered Office, 201 Bishopsgate, London, EC2M 3AE.

14.	Annual General Meeting
	The Annual General Meeting will be held on Tuesday, 20 January 2015 at 12.30 pm at 201 Bishopsgate, London, EC2M 3AE.

LOWLAND INVESTMENT COMPANY PLC

Annual Report for the year ended 30 September 2014

Twenty Largest Holdings as at 30 September 2014

Rank (2014)	Rank (2013)	Company	Valuation 2013 £'000	Purchases £'000		Sales £'000	Appreciation / (depreciation) £'000	Valuation 2014 £'000
1	(3)	Royal Dutch Shell	12,273	1,153	-		1,805	15,231
2	(1)	Senior	15,278	-	(748)		(47)	14,483
3	(11)	Velocys	6,975	-	-		3,488	10,463
4	(12)	BP	6,930	3,026	-		20	9,976
5	(5)	Hiscox	8,657	1,669	-		(1,439)	8,887
6	(4)	Phoenix	8,678	-	-		(198)	8,480
7	(18)	Aviva	5,952	-	-		1,900	7,852
8	(8)	GlaxoSmithKline	8,566	-	-		(795)	7,771
9	*	Rio Tinto	1,512	6,906	-		(839)	7,579
10	(17)	Hill & Smith	6,187	-	-		1,198	7,385
11	(10)	GKN	7,832	-	-		(522)	7,310
12	(13)	Amlin	6,594	-	-		468	7,062
13	*	HSBC	4,184	3,256	-		(396)	7,044
14	(15)	Provident Financial	6,233	-	(1,051)		1,760	6,942
15	(6)	International Personal Finance	8,633	-	-		(1,730)	6,903
16	*	Scapa	4,600	-	-		2,237	6,837
17	*	Glencore	-	5,981	-		25	6,006
18	(7)	FBD	8,602	-	(3,004)		110	5,708
19	(19)	Weir	5,825	-	(660)		465	5,630
20	*	Elementis	5,273	-	-		348	5,621
			-----------	------------	-----------		------------	------------
			138,784	21,991	(5,463)		7,858	163,170
			======	======	======		======	======

At 30 September 2014 these investments totalled £163,170,000 or 39.8% of the portfolio.

* Not in the top 20 largest investments last year.

For further information please contact:
James H Henderson	James de Sausmarez
Fund Manager	Head of Investment Trusts
Lowland Investment Company plc	Henderson Global Investors Limited
Telephone: [phone]	Telephone: [phone]
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors Limited
Telephone: [phone]

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

- ENDS -

 

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