Final Results

RNS Number : 3061V

Lowland Investment Co PLC

11 December 2013

 



Page 1 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

This announcement contains regulated information

Key Data Per ordinary share		30 September 2013		30 September 2012	Change %
Net asset value #		1,306.9p		1,008.4p	+29.6
Share price#		1,325.0p		991.5p	+33.6
Net revenue return		36.7p		31.1p	+18.0
Total return		330.1p		229.9p
Total dividend		34.0p		30.5p	+11.5
Gearing*		13.9%		13.8%
Premium/(discount)		1.4%		(1.7%)
Ongoing charges**     - excluding the performance fee		0.57%		0.62%
- including the performance fee		0.87%		0.89%

^#  Excluding reinvested income.

* Defined as investments as a percentage of equity shareholders' funds minus 100.

**Defined as total expenses incurred by the Company expressed as an average of

   shareholders' funds over the year calculated on a daily basis.

Total return performance To 30 September 2013	1 year %	5 years %	10 years %
Net asset value(1)	33.3	134.9	240.6
Share price(1)	37.5	159.4	247.3
Peer group net asset value(2)	26.4	90.7	171.3
FTSE All-Share Index(3)	18.9	66.2	140.2

  Source:

(1)     Morningstar for the AIC.  Using cum income fair value net asset value for one 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 Income & Growth Sector (size weighted average).

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

Page 2 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

MANAGEMENT REPORT

Commenting on the results Chairman, Peter Troughton, said:

Performance for the year to 30 September 2013

I am pleased to report that your Company had a satisfactory year with the net asset value ('NAV') on a total return basis rising 33.3%, while the FTSE All-Share Index return was 18.9%. The share price total return was 37.5% over the year with the Company moving to a small premium to net asset value. The long-term record is illustrated in the Annual Report and Financial Statements. The analysis of the main individual stock contributors is also shown in the Annual Report and Financial Statements. A reasonable level of gearing at around 14% also contributed to the outperformance.

The weighting in Lowland's portfolio is significantly different to the make-up of the weighting of individual sectors and stocks in the benchmark index. It is this attribute that makes outperformance possible. We believe that over the medium term this will continue to add value.  It can lead to underperformance at times, if some of the favoured stocks and sectors fall out of favour with investors.

Dividend

The total dividend for the year will, subject to shareholder approval, be 34.0p which compares with 30.5p last year, an increase of 11.5%. Lowland's long-term dividend record is covered later in the report and the first fifty years of the Company's life is discussed in the separate document which accompanies these financial statements.

Ongoing charges and Fees

A performance fee of £938,000 (wholly charged to capital) was paid in respect of the year to 30 September 2013. This fee, and the basic management fee of 0.5% of net assets, are together capped at a total of 0.75% of net chargeable assets.  Ongoing charges, which are the management fee and other non-interest expenses as a percentage of shareholders' funds were 0.57% (2012: 0.62%) excluding the performance fee and 0.87% (2012: 0.89%) including the performance fee.

Investment Review

The equity market was supported as much by central bank policies as by investors' response to improving corporate earnings. Quantitative easing continued to encourage investors to increase their exposure to riskier assets in their search for capital growth and income; equities in particular

benefited from the high level of corporate profitability and impressive cash generation - applicable to many of the companies we have held in our portfolio. Cash generation is benefiting shareholders through dividend increases and special dividends. More fundamentally, it suggests that companies are well placed to deal with possible economic volatility. 

Board Activity

The level of investment activity has been relatively low during the year as the Portfolio Manager believes it is wise to retain exposure to strong growth companies in the portfolio. This does not mean however that we are not continually looking at fresh ideas. We have examined capitalising management charges, buying market downside protection and fixing borrowings. We have decided in all these areas that on balance they will not add sufficient value at present but we will keep them under review. We need to be convinced to move away from a plain and simple structure where an expense is a revenue item, where the best downside protection is to raise cash and where flexibility with our borrowings is better than having them fixed. We have issued 475,000 shares at a premium which very marginally enhances net asset value. We have done it to provide some liquidity, and we will keep further selective issuance under review, subject to their being no detriment in terms of total return to existing shareholders.

                                                                                                                                            Page 3 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Regulatory

The Board has noted that the Alternative Investment Fund Managers Directive has been written into UK legislation with effect from 22 July 2013. There is a transition period within which the Company must comply with the provisions of this Directive, which include either acting as an Alternative Investment Fund Manager ('AIFM') or appointing an external party to be the AIFM and appointing a depositary, by 22 July 2014. The Board has agreed in principle that its Manager will be appointed as AIFM and will take the necessary actions to ensure that all documentation and processes to enable the Company to comply with these regulations are in place within the transition period.

Annual General Meeting

The Annual General Meeting will be held at the offices of Henderson Global Investors, 201 Bishopsgate, London on 22 January 2014 at 12.30 pm. Full details of the business to be conducted at the meeting are set out in the Notice of Meeting which has been sent to shareholders with this report. As usual our Portfolio Manager, James Henderson, will be making a presentation and all shareholders are most welcome to attend.

Outlook

There are companies quoted on the UK stock market that offer exciting potential for capital growth and with a capacity to grow dividends. It is the job of the Portfolio Manager to select them in line with our objectives. This is best achieved with a straightforward approach of focusing on what the companies are doing and what their managements are saying. It may become more difficult to find attractively priced investments as the bull market matures and adjusts at some point to the unwinding of quantitative easing. The Board will work to ensure the Portfolio Manager remains focused and when he cannot find appropriate opportunities, we will reduce our exposure to equities.

Principal Risks and Uncertainties

With the assistance of the Manager, the Board has drawn up a Risk Map, which identifies the key risks to the Company. These key risks fall broadly under the following categories:

● Investment and Strategy

An inappropriate investment strategy, 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. The Manager 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 the Manager confirms adherence to them every month. The Manager 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 Portfolio 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.

● Accounting, legal and regulatory

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 the Manager and the results are reported at each Board meeting.

                                                                                                                                            Page 4 of 14

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

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 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.

● Operational

Disruption to, or the failure of, the Manager's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting or monitoring of the Company's financial position. The Manager contracts some of the operational functions (principally those relating to trade processing, investment administration and accounting), to BNP Paribas Securities Services UK Limited.

Details of how the Board monitors the services provided by the Manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the Annual Report and Financial Statements.

● 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 the Annual Report and Financial Statements.

Related Party Transactions

Other than the relationship between the Company and its directors, the provision of services by Henderson Global Investors Limited ('Henderson' or the 'Manager') is the only related party arrangement currently in place. Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with this related party affecting the financial position or performance of the Company during the year under review.

Statement of Directors' Responsibilities under DTR 4.1.12

Each of the directors confirms that, to the best of their knowledge:

• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

• the Strategic Report in the Annual Report and Financial Statements includes 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.

For and on behalf of the Board

Peter Troughton

Chairman

11 December 2013

Page 5 of 14

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Audited Income Statement

for the year ended 30 September 2013

	Year ended 30 September 2013			Year ended 30 September 2012
	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	-	78,491	78,491	-	53,157	53,157
Income from investments (note 2)	12,342	-	12,342	10,677	-	10,677
Other interest receivable and similar income (note 3)	115	-	115	97	-	97
	---------	---------	---------	---------	---------	---------
Gross revenue and capital gains	12,457	78,491	90,948	10,774	53,157	63,931
Management fee	(1,362)	-	(1,362)	(1,173)	-	(1,173)
Performance fee	-	(938)	(938)	-	(646)	(646)
Other administrative expenses	(472)	-	(472)	(402)	-	(402)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities before finance charges and taxation	10,623	77,553	88,176	9,199	52,511	61,710
Finance charges	(875)	-	(875)	(911)	-	(911)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities before taxation	9,748	77,553	87,301	8,288	52,511	60,799
Taxation on net return on ordinary activities	(38)	-	(38)	(62)	-	(62)
	---------	---------	---------	---------	---------	---------
Net return on ordinary activities after taxation	9,710	77,553	87,263	8,226	52,511	60,737
	=====	=====	=====	=====	=====	=====
Return per ordinary share - basic and diluted (note 4)	36.7p	293.4p	330.1p	31.1p	198.8p	229.9p
	=====	=====	=====	=====	=====	=====

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 year stated above and their historical cost equivalents.

Page 6 of 14

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Reconciliation of Movements in Shareholders' Funds

for the years ended 30 September 2013 and 30 September 2012

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
	=====	=====	=====	======	=====	======
Year ended 30 September 2012	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 2011	6,604	53,561	1,007	145,400	7,679	214,251
Net return on ordinary activities after taxation	-	-	-	52,511	8,226	60,737
Second interim dividend (17.5p) for the year ended 30 September 2011 paid 21 December 2011	-	-	-	-	(4,624)	(4,624)
First interim dividend (15.0p) for the year ended 30 September 2012 paid 19 June 2012	-	-	-	-	(3,963)	(3,963)
	----------	----------	----------	-----------	----------	------------
At 30 September 2012	6,604	53,561	1,007	197,911	7,318	266,401
	=====	=====	=====	======	=====	======

Page 7 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Audited Balance Sheet

at 30 September 2013

	2013 £'000	2012 £'000
Investments held at fair value through profit or loss
Listed at market value in the United Kingdom	335,913	270,813
Quoted at market value on AIM	36,523	19,844
Listed at market value overseas	22,140	11,572
Unquoted	846	914
	-----------	-----------
	395,422	303,143
	-----------	-----------
Current assets
Debtors	1,725	1,900
Cash at bank	1,310	2,177
	-----------	-----------
	3,035	4,077
Creditors: amounts falling due within one year	(51,255)	(40,819)
	-----------	-----------
Net current liabilities	(48,220)	(36,742)
	-----------	-----------
Net assets	347,202	266,401
	=======	=======
Capital and reserves
Called up share capital	6,642	6,604
Share premium account	55,514	53,561
Capital redemption reserve	1,007	1,007
Other capital reserves	275,464	197,911
Revenue reserve	8,575	7,318
	-----------	-----------
Total Shareholders' funds	347,202	266,401
	=======	=======
Net asset value per ordinary share - basic and diluted (note 7)	1,306.9p	1,008.4p
	=======	=======

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

Page 8 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Audited Cash Flow Statement

for the year ended 30 September 2013

	2013 £'000	2013 £'000	2012 £'000	2012 £'000
Net cash inflow from operating activities		10,199		8,133
Servicing of finance
Interest paid	(941)		(903)
	----------		----------
Net cash outflow from servicing of finance		(941)		(903)
Taxation
Tax recovered	26		29
	----------		----------
Net tax recovered		26		29
Financial investment
Purchases of investments	(53,646)		(38,088)
Sales of investments	38,463		35,532
	-----------		-----------
Net cash outflow from financial investment		(15,183)		(2,556)
Equity dividends paid		(8,453)		(8,587)
		----------		----------
Net cash outflow before financing activities		(14,352)		(3,884)
Financing
Proceeds from issue of ordinary shares	1,991		-
Loans drawn down	11,485		4,759
	----------		----------
		13,476		4,759
		----------		----------
(Decrease)/increase in cash		(876)		875
		======		======
Reconciliation of net cash flow to movement in net debt		2013 £'000		2012 £'000
(Decrease)/increase in cash as above		(876)		875
Net cash inflow from movement in loans		(11,485)		(4,759)
Exchange movements		9		5
		----------		---------
Movement in net debt		(12,352)		(3,879)
Net debt at 1 October		(36,082)		(32,203)
		----------		----------
Net debt at 30 September		(48,434)		(36,082)
		=======		=======

Page 9 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Notes to the Accounts:

1.

Accounting policies

The financial statements have been prepared on a going concern basis and under the historical cost basis of accounting, as 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	2013 £'000	2012 £'000
	UK dividends:
	Listed investments	9,707	8,967
	Unlisted	35	44
		---------	--------
		9,742	9,011
		---------	--------
	Non UK dividends:
	Overseas dividend income	2,288	1,335
	Property income dividends	200	131
	Interest income	112	200
		---------	---------
	Non UK dividends	2,600	1,666
		---------	---------
		12,342	10,677
		=====	=====

3.	Other interest receivable and similar income	2013 £'000	2012 £'000
	Stock lending commission	81	47
	Income from underwriting	34	50
		---------	---------
		115	97
		=====	=====
	At 30 September 2013 the total value of securities on loan by the Company for stock lending purposes was £29,012,000 (2012:  £16,188,000).  The maximum aggregate value of securities on loan at any time during the year ended 30 September 2013 was £54,723,000 (2012:  £23,500,000).  The Company's agent holds collateral comprising FTSE 100 stocks with a collateral value of £31,142,000 (2012: £17,157,000) amounting to a minimum of 107% (2012: minimum 105%) of the market value of any securities on loan.  Stock lending commission has been shown net of brokerage fees of £35,000 (2012: £20,000).

Page 10 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Notes to the Accounts (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 £87,263,000 (2012: £60,737,000) and on 26,443,043 ordinary shares (2012: 26,417,427) 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.
		2013 £'000	2012 £'000
	Net revenue return	9,710	8,226
	Net capital return	77,553	52,511
		---------	----------
	Net total return	87,263	60,737
		=====	=====
	Weighted average number of ordinary shares in issue during the year	26,433,043	26,417,427
	Revenue return per ordinary share	36.7p	31.1p
	Capital return per ordinary share	293.4p	198.8p
		-----------	-----------
	Total return per ordinary share	330.1p	229.9p
		======	======
	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	2013 £'000	2012 £'000
	Second interim dividend (17.5p)   for the year ended 30 September 2011	2 December 2011	21 December 2011	-	4,624
	First interim dividend (15.0p)    for the year ended 30 September 2012	1 June 2012	19 June 2012	-	3,963
	Second interim dividend (7.5p)    for the year ended 30 September 2012	12 October 2012	31 October 2012	1,981	-
	Final interim 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	-
				---------	---------
				8,453	8,587
				=====	=====
	The third interim dividend and the final dividend for the year ended 30 September 2013 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 one of the retention tests under Section 1158 of the Corporation Tax Act 2010, are set out below.
				2013 £'000
	Revenue available for distribution by way of dividend for the year			9,710
	First interim dividend (8.0p) for the year ended 30 September 2013			(2,113)
	Second interim dividend (8.5p) for the year ended 30 September 2013			(2,246)
	Third interim dividend (8.5p) for the year ended 30 September 2013			(2,267)
	Final dividend (9.0p) for the year ended 30 September 2013 (based on 26,892,427 ordinary shares in issue at 11 December 2013)			(2,420)
				----------
	Revenue Surplus			664
				=====
	For section 1158 purposes the Company's undistributed revenue represents 5.4% of the income from investments.

Page 11 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Notes to the Accounts (continued):

6.	Called up share capital	2013 £'000	2012 £'000
	Allotted and fully paid
	26,567,427 (2012:  26,417,427) ordinary shares of 25p each	6,642	6,604
		======	======
	During the year, the Company issued 150,000 ordinary shares for total proceeds of £1,991,000 (2012: nil)

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 £347,202,000 (2012: £266,401,000) and on 26,567,427 (2012: 26,417,427) shares in issue on 30 September 2013. The movements during the year of the assets attributable to the ordinary shares were as follows:

		2013 £'000	2012 £'000
	Total net assets at 1 October	266,401	214,251
	Total net return on ordinary activities after taxation	87,263	60,737
	Share issue proceeds	1,991	-
	Net dividends paid in the year: Ordinary shares	(8,453)	(8,587)
		----------	----------
	Net assets attributable to the ordinary shares at 30 September	347,202	266,401
		======	======

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 and Financial Statements, the Board has considered the 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', published by the Financial Reporting Council.

9.

2013 Annual Financial Statements

The figures and financial information for the year ended 30 September 2013 are extracted from the Company's annual financial statements for that period and do not constitute statutory accounts.  The Company's annual financial statement for the year to 30 September 2013 have been audited but have not yet been delivered to the Registrar of Companies.  The auditors' report on the 2013 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.

10.

2012 Financial Information

The figures and financial information for the year ended 30 September 2012 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.

Page 12 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Notes to the Accounts (continued):

11.	Dividend
	The final dividend, if approved by the shareholders at the Annual General Meeting, of 9.0p per ordinary share will be paid on 31 January 2014 to shareholders on the register of members at the close of business on 10 January 2014. This will take the total dividends for the year to 34.0p (2012: 30.5p). The Company's shares will be traded ex-dividend on 8 January 2014.

12.	Annual Report
	The Annual Report and Financial Statements will be posted to shareholders in December 2013 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.

13.	Annual General Meeting
	The Annual General Meeting will be held on Wednesday, 22 January 2014 at 12.30 pm at 201 Bishopsgate, London, EC2M 3AE.

 

                                                                                                                                          Page 13 of 13

LOWLAND INVESTMENT COMPANY PLC

Annual Financial Report for the year ended 30 September 2013

Notes to the Accounts (continued):

Twenty Largest Holdings as at 30 September 2013

Rank (2013)	Rank (2012)	Company	Valuation 2012 £'000	Purchases £'000		Sales £'000		Appreciation £'000		Valuation 2013 £'000
1	(2)	Senior	14,301	-	(3,467)		4,444		15,278
2	(1)	Carclo	15,554	-	(127)		(1,789)		13,638
3	(3)	Royal Dutch Shell	10,441	2,285	-		(453)		12,273
4	(15)	Phoenix	4,963	949	-		2,766		8,678
5	(4)	Hiscox	8,543	-	(1,230)		1,344		8,657
6	(13)	International Personal Finance	5,287	-	(1,374)		4,720		8,633
7	( * )	FBD	3,531	2,093	-		2,978		8,602
8	(5)	GlaxoSmithKline	7,851	-	-		715		8,566
9	(6)	Interserve	7,630	-	(2,805)		3,598		8,423
10	(10)	GKN	5,585	-	(1,041)		3,288		7,832
11	( * )	Velocys	3,740	1,250	(1,021)		3,006		6,975
12	(9)	BP	5,675	1,400	-		(145)		6,930
13	(11)	Amlin	5,557	1,004	-		33		6,594
14	(7)	DS Smith	5,992	-	(2,273)		2,617		6,336
15	(14)	Provident Financial	5,149	-	-		1,084		6,233
16	(19)	IMI	4,730	-	(1,488)		2,949		6,191
17	(8)	Hill & Smith	5,808	-	(1,053)		1,432		6,187
18	(18)	Aviva	4,781	-	-		1,171		5,952
19	(20)	Weir	4,420	-	-		1,405		5,825
20	(17)	Diageo	4,836	-	-		626		5,462
			-----------	------------	-----------		------------		------------
			134,374	8,981	(15,879)		35,789		163,265
			======	======	======		======		======

At 30 September 2013 these investments totalled £163,265,000 or 41.3% of the portfolio.

* Not in the top 20 largest investments last year.

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

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