Interim Management Statement

RNS Number : 0183N

Lowland Investment Co PLC

22 July 2014

 



LOWLAND INVESTMENT COMPANY PLC

HENDERSON INVESTMENT FUNDS LTD

22 July 2014

LOWLAND INVESTMENT COMPANY PLC

Interim Management Statement
Review of the period from 1 April 2014 to 30 June 2014

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

Portfolio:  It has been a quiet period in the stock market with regard to share price movement. The level of UK corporate debt has fallen further and dividend cover is high.  We retain a reasonable level of gearing as valuations remain undemanding.

Net Gearing: At the end of the quarter the Company's net gearing was 11.6% (at 31 March 2014: 12.9%).

Dividends: A second interim dividend of 9.0p per ordinary share will be paid on 31 July 2014 to shareholders on the register of members at the close of business on 4 July 2014.

Share Capital: During the period 1 April 2014 to 30 June 2014 there was no change in the issued share capital of the Company. 

Ongoing Expenses: Theongoing expenses ratio of the Company as at the 30 June 2014 excluding the accrued performance fee was 0.56% (30 June 2013: 0.45%) and including the accrued performance fee was 0.86% (30 June 2013: 0.78%) 

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  2014	at 31 March  2014
Ordinary share price	1,425.5p	1,425.0p
Premium/(Discount)	2.1%	1.6%
Gross total assets	£420m	£426m
Net asset value (cum income)	1,396.24p	1,401.79p
Net asset value (ex income)	1,376.45p	1,388.76p
Portfolio Gearing (net)	11.6%	12.9%
Yield	2.5%	2.4%

Performance at 30 June 2014 (total return % change)

	6 months	1 year	3 years	5 years	10 years
Net asset value #	1.9	21.5	57.9	231.1	216.3
Share price	-0.9	22.8	69.7	245.4	244.3
Benchmark  (FTSE All-Share Index)	1.6	13.1	29.2	96.7	128.8
# the net asset values for the 10 year period is on a total return basis whereas for shorter periods it is on a fair value cum income basis.   (Source: AIC/ Datastream / Morningstar Funddata)

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments at 30 June 2014                         Top 10 Investments at 31 March 2014

	% of Total Assets			% of Total  Assets
Royal Dutch Shell	3.8		Senior		3.9
Senior	3.6		Royal Dutch Shell		3.4
BP	2.6		BP		2.4
Velocys	2.6		Hiscox		2.3
Hiscox	2.4		GKN		2.1
GlaxoSmithKline	2.1		GlaxoSmithKline		2.1
Provident Financial	2.0		Rio Tinto		2.0
GKN	2.0		Amlin		1.9
International Personal Finance	2.0		AstraZeneca		1.8
Rio Tinto	1.9		Phoenix		1.8
	------------				---------
Top 10 =	25.0		Top 10 =		23.7
	=====				=====

Sector Breakdown	% at 30 June 2014			% at 31 March 2014
Industrials	25.5		Industrials		26.4
Financials	23.7		Financials		23.0
Basic Materials	13.4		Basic Materials		12.7
Consumer Services	9.5		Consumer Services		9.3
Oil & Gas	9.4		Oil & Gas		8.8
Consumer Goods	8.7		Consumer Goods		8.7
Health Care	3.8		Health Care		5.2
Utilities	2.6		Utilities		2.6
Telecommunications	1.8		Technology		1.6
Technology	1.6		Telecommunications		1.7
Fixed Interest	-		Fixed Interest		-
	--------				---------
Total	100.0		Total		100.0
	=====				=====

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 Investment Funds Ltd. 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                                                   Director and 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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