Interim Management Statement

RNS Number : 4116M

Lowland Investment Co PLC

28 January 2009

 



LOWLAND INVESTMENT COMPANY PLC

HENDERSON GLOBAL INVESTORS

28 JANUARY 2009

LOWLAND INVESTMENT COMPANY PLC

Interim Management Statement
Review of the period from 30 September 2008 to 31 December 2008

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

Portfolio: It has been a very poor period for the equity market and for Lowland's portfolio. The collapse of Lehman Brothers in September undermined investor confidence.  Share prices have fallen as a result of growing concerns about the global financial system and the onset of a global recession.  The poor sentiment has particularly hurt smaller company share prices. This has been where Lowland's portfolio has had its worst losses. However, the portfolio has a mix of large, medium and small companies and is well diversified by activity. They are expected for the most part to be able to cope with the harsh economic climate and on this basis their current share prices undervalue their medium-term prospects.

Despite dividend cuts prevalent in the UK market, it is currently expected that Lowland, 

with its significant revenue reserves, will at least maintain its dividend. 

Gearing: At the end of the quarter the Company's gearing was 15.8 % (at 30 September 2008: 15.8%).

Dividends: Following shareholder approval, a final dividend of 16.50p (2007: 14.50p) per ordinary share, in respect of the year ending 30 September 2008 was paid on 22 December 2008 to holders that were on the Register of Members on 21 November 2008. The ex-dividend date was 19 November 2008.

Share Capital: During the period 30 September 2008 to 31 December 2008 there was no change in the issued share capital of the Company. 

Directors: Mr Karl Sternberg joined the Board as a non-executive director on 1 January 2009. 

- MORE -

  PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (excluding current financial year revenue items)

(Source: Henderson/Fact Sheet)	at 31 December 2008	at 30 September 2008
Ordinary share price	440.0p	625.0p
(Discount)/Premium	-7.7%	-7.4%
Gross total assets	£147m	£212m
Net asset value (cum income)	476.9p	674.6p
Net asset value (ex income)	476.9p	652.3p
Portfolio Gearing	15.8%	15.8%
Yield	6.02%	3.92%
Total Expense Ratio	0.74%	0.72%

Performance at 31 December 2008 (total return % change)

(Source: Henderson)	6 months	1 year	3 years	5 years
Net asset value	-34.1	-48.0	-36.2	3.1
Share price	-35.5	-49.6	-42.9	-4.4
Benchmark*	-21.1	-29.9	-13.8	18.6
* The benchmark is the FTSE All-Share Index.

THE PORTFOLIO (Source: Henderson/Fact Sheet)

       Top 10 Investments at 31 December 2008      Top 10 Investments at 30 September 2008

	% of Total  Assets			% of Total  Assets
BP	6.1		BP	4.3
Royal Dutch Shell	4.7		Senior	4.1
GlaxoSmithKline	4.3		HSBC	3.9
AVIVA	2.9		Royal Dutch Shell	3.1
Senior	2.8		GlaxoSmithKline	2.9
Vodafone	2.7		RBS	2.8
Novae	2.2		AVIVA	2.6
Anglo American	2.1		Astrazeneca	2.4
Hiscox	2.1		Barclays	2.3
Meggitt	2.1		Hiscox	1.9
	------			------
Top 10 =	32.0%		Top 10 =	30.3%

Sector Breakdown	% at 31 December 2008	% at 30 September 2008
Financials	27.0	32.5
Industrials	23.7	23.7
Oil & Gas	10.9	7.8
Consumer Goods	10.3	8.2
Basic Materials	9.7	6.0
Consumer Services	7.3	7.5
Health Care	5.1	6.1
Telecommunications	4.3	3.2
Utilities	0.7	2.5
Cash & Fixed Interest	1.0	2.5
	---------	---------
Total	100.0	100.0
	=====	=====

• MORE -

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]

- ENDS -

 

END

 

 

IMSILFSRLIITFIA