Interim Management Statement

RNS Number : 9896H

Lowland Investment Co PLC

18 July 2012

 



LOWLAND INVESTMENT COMPANY PLC

HENDERSON GLOBAL INVESTORS

18 July 2012

LOWLAND INVESTMENT COMPANY PLC

Interim Management Statement
Review of the period from 1 April 2012 to 30 June 2012

The Directors of Lowland Investment Company plc hereby announce the following:

Portfolio:  The equity market has been volatile, reflecting the vicissitudes of the Eurozone problems.  However, away from the macro economic debate companies in aggregate have been performing soundly with good cash generation leading to falling corporate debt.  The earnings and dividend growth in the stocks held have been at the top end of expectations.  This leaves the valuation on their equity at an undemanding level.

This is a good backdrop for equity investors and we will be making use of weakness inspired by the macroeconomic concerns to increase holdings in strong companies.

Net Gearing: At the end of the quarter the Company's net gearing was 15.4% (at 31 March 2012: 15.0%).

Dividends: An interim dividend of 15.0p per ordinary share was paid on 19 June 2012 to shareholders on the register of members at the close of business on 1 June 2012. The Company has introduced quarterly dividend payments, therefore the next dividend payment will be paid at the end of October 2012.    

Share Capital: During the period 1 April 2012 to 30 June 2012 there was no change in the issued share capital of the Company.

Total Expense Ratio: The Total Expense Ratio of the Company as at the 31 June 2012  excluding the accrued performance fee was 0.52% (2011:0.44%) and including the accrued performance fee was 0.79%  (2011:0.76%) 

The directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.  

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (excluding current financial year revenue items)

(Source: Henderson/Fact Sheet)	at 30 June  2012	at 31 March  2012
Ordinary share price	872.0p	901.0p
Discount	-6.1%	-6.0%
Gross total assets	£284m	£291m
Net asset value (cum income)	928.65p	958.3p
Net asset value (ex income)	921.21p	949.4p
Portfolio Gearing (net)	15.4%	15.0%
Yield	3.44%	3.11%

Performance at 30 June 2012 (total return % change)

	6 months	1 year	3 years	5 years	10 years
Net asset value #	12.9%	0.2%	110.7%	5.3%	144.3%
Share price	14.1%	-0.9%	102.3%	-1.2%	141.6%
Benchmark  (FTSE All-Share Index)	3.3%	-3.1%	47.4%	2.0%	80.9%
# the net asset values for the  5 & 10 year periods are on a total return basis whereas the earlier periods are on a fair value cum income basis.   (Source: AIC/ Datastream / Morningstar Funddata)

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 June 2012                         Top 10 Investments at 31 March 2012

	% of Total Assets			% of Total  Assets
Carclo	6.3		Senior	5.3
Senior	5.1		Carclo	5.1
Royal Dutch Shell	3.7		Royal Dutch Shell	3.6
GlaxoSmithKline	2.8		GlaxoSmithKline	2.7
Hiscox	2.7		Hiscox	2.4
Interserve	2.3		D S Smith	2.3
BP	1.9		Interserve	2.1
Hill & Smith	1.8		BP	2.1
Amlin	1.7		Vodafone	2.0
Smith (DS)	1.7		Canfor Pulp	1.9
	------------			---------
Top 10 =	30.0		Top 10 =	29.5
	=====			=====

Sector Breakdown	% at 30 June 2012			% at 31 March 2012
Industrials	31.2		Industrials	32.2
Financials	22.3		Financials	22.6
Basic Materials	14.8		Basic Materials	13.0
Consumer Goods	7.9		Oil & Gas	8.0
Oil & Gas	7.6		Consumer Goods	7.6
Consumer Services	6.8		Consumer Services	6.4
Health Care	4.0		Health Care	3.7
Utilities	2.5		Utilities	2.6
Telecommunications	1.8		Telecommunications	2.6
Fixed Interest	1.1		Technology	0.1
			Fixed Interest	1.2
	---------			---------
Total	100%		Total	100%
	=====			=====

Lowland Investment Company plc aims to give shareholders a higher than average return with growth of both capital and income over the medium to long term.

The Company's policy is to invest in a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies and the balance from small and medium sized companies.

The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date NAV and share price information, can be found on the Manager's website at www.itshenderson.com or www.lowlandinvestment.com.

For further information, please contact:

James Henderson                                                         James de Sausmarez

Portfolio Manager                                                         Head of Investment Trusts

Lowland Investment Company plc                                Henderson Global Investors

Telephone: [phone]                                           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 -

 

END

 

 

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