Interim Management Statement

RNS Number : 2871Y

Lowland Investment Co PLC

22 January 2014

 



LOWLAND INVESTMENT COMPANY PLC

HENDERSON GLOBAL INVESTORS

22 January 2014

LOWLAND INVESTMENT COMPANY PLC

Interim Management Statement
Review of the period from 30 September 2013 to 31 December 2013

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

Portfolio:  The UK economy continues its recovery and this is helping companies to produce strong earnings growth.  The level of UK corporate debt has fallen further and dividend cover is high.  This means we will keep with our reasonable level of gearing.

Net Gearing: At the end of the quarter the Company's net gearing was 12.7% (at 31 September 2013: 13.9%).

Dividends: A third interim dividend of 8.50p per ordinary share in respect of the year ended 30 September 2013 was paid on 31 October 2013 to shareholders on the register of members at the close of business on 11 October 2013. 

Share Capital: During the period 30 September 2013 to 31 December 2013 325,000 shares were issued at a premium.  The total issued share capital of the Company is now 26,892,427.

Ongoing Expenses: Theongoing expenses of the Company as at the 31 December 2013 excluding the accrued performance fee was 0.57% (30 September 2013: 0.57%) and including the accrued performance fee was 0.87% (30 September 2013: 0.87%) 

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 & 2013 Annual Report)	at 31 December  2013	at 30 September  2013
Ordinary share price	1,456.0p	1,325.0p
Premium	4.91%	1.4%
Gross total assets	£423m	£347m
Net asset value (cum income)	1,387.86p	1,306.95p
Net asset value (ex income)	1,373.29p	1,286.73p
Portfolio Gearing (net)	12.7%	13.9%
Yield	2.3%	2.4%

Performance at 31 December 2013 (total return % change)

	6 months	1 year	3 years	5 years	10 years
Net asset value #	19.2	36.1	73.7	244.2	248.5
Share price	23.9	48.7	92.7	291.4	274.5
Benchmark  (FTSE All-Share Index)	11.4	20.8	31.0	95.2	131.6
# 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 & 2013 Annual Report)

Top 10 Investments at 31 December 2013                         Top 10 Investments at 30 September 2013

	% of Total Assets			% of Total  Assets
Senior	4.1		Senior		3.9
Royal Dutch Shell	3.4		Carclo		3.4
Carclo	2.4		Royal Dutch Shell		3.1
Hiscox	2.2		Phoenix		2.2
FBD	2.1		Hiscox		2.2
GlaxoSmithKline	2.1		International Personal Finance		2.2
Interserve	2.1		FBD		2.2
GKN	2.0		GlaxoSmithKline		2.1
Phoenix Group	2.0		Interserve		2.1
BP	2.0		GKN		2.0
	------------				---------
Top 10 =	24.4		Top 10 =		25.4
	=====				=====

Sector Breakdown	% at 31 December 2013			% at 30 September 2013
Industrials	27.5		Industrials		27.9
Financials	24.4		Financials		24.8
Basic Materials	12.8		Basic Materials		14.1
Consumer Services	9.0		Consumer Services		8.5
Oil & Gas	8.2		Consumer Goods		7.4
Consumer Goods	7.8		Oil & Gas		7.4
Health Care	4.5		Health Care		4.1
Fixed Interest	2.7		Utilities		2.6
Telecommunications	1.6		Telecommunications		1.5
Technology	1.5		Technology		1.5
Fixed Interest	-		Fixed Interest		0.2
	---------				---------
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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