TIDMLWI
RNS Number : 1673Z
Lowland Investment Co PLC
24 May 2016
LOWLAND INVESTMENT COMPANY PLC
Unaudited Results for the Half Year Ended 31 March 2016
This announcement contains regulated information
Key Data for the six months to 31 March 2016
Net Asset Value
Total Return +3.8%
-------------------- ------
Benchmark Total
Return +3.5%
-------------------- ------
Growth in Dividend +10%
-------------------- ------
Dividend 22.0p
-------------------- ------
Financial Highlights
Half Year Half Year Year Ended
Ended Ended 30 Sept
31 Mar 2016 31 Mar 2015 2015
-------------------------- ------------- ------------- -----------
NAV Per Ordinary Share 1,333p 1,401p 1,318p
-------------------------- ------------- ------------- -----------
Share Price 1,290p 1,295p 1,287p
-------------------------- ------------- ------------- -----------
Market Capitalisation GBP349m GBP348m GBP346m
-------------------------- ------------- ------------- -----------
Dividend Per Share 22.0p 20.0p 41.0p
-------------------------- ------------- ------------- -----------
Ongoing Charge Including
Performance Fee 0.7% 0.8% 0.9%
-------------------------- ------------- ------------- -----------
Ongoing Charge Excluding
Performance Fee 0.6% 0.6% 0.6%
-------------------------- ------------- ------------- -----------
Dividend Yield(1) 3.3% 2.9% 3.2%
-------------------------- ------------- ------------- -----------
Gearing 16.7% 15.3% 16.8%
-------------------------- ------------- ------------- -----------
(1) Based on dividends paid in respect of the previous twelve
months
Total Return Performance (including dividends reinvested and
excluding transaction costs)
6 months 1 year 3 years 5 years 10 years
% % % % %
---------------- --------- ------- -------- -------- ---------
Net Asset
Value +3.8 -1.9 +22.5 +73.0 +104.3
---------------- --------- ------- -------- -------- ---------
Benchmark(1) +3.5 -3.9 +11.4 +31.9 +58.3
---------------- --------- ------- -------- -------- ---------
Share Price(2) +1.9 +2.7 +20.6 +81.9 +102.4
---------------- --------- ------- -------- -------- ---------
(1) FTSE All Share Index
(2) Using Mid-Market Price
Sources: Morningstar, Funddata, Datastream and Henderson.
Historical Record
Year to 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 As at
September 31 Mar 2016
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
Net Assets(1)
(GBPm) 222 276 178 174 204 214 266 347 362 355 360
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
Per Ordinary Share
----------------------------------------------------------------------------------------------------------------------
Net Asset Value 916p 1,044p 675p 657p 770p 811p 1,008p 1,307p 1,346p 1,318p 1,333p
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
Share Price 896p 1,091p 625p 610p 700p 763p 992p 1,325p 1,355p 1,287p 1,290p
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
Net Revenue 20.8p 27.9p 33.0p 22.7p 22.5p 28.8p 31.1p 36.7p 39.4p 46.4p 13.7p
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
Net
Dividends Paid 20.8p 23.5p 26.5p 26.5p 27.0p 28.0p 30.5p 34.0p 37.0p 41.0p 22.0p(2)
------------------ ------ ------- ------ ------ ------ ------ ------- ------- ------- ------- -------------
(1) Attributable to Ordinary Shares
(2) First Interim Dividend of 11.0p per Ordinary Share paid on
29 April 2016 and the Second Interim Dividend of 11.0p per Ordinary
Share that will be paid on 29 July 2016
Interim Management Report
Chairman's Statement
Review
Over the six months under review Lowland's total return and that
of our benchmark, the FTSE All Share Index (the 'Index'), were both
virtually unchanged with Lowland up 3.8% and the Index up 3.5%.
Over the longer term Lowland has outperformed the Index
handsomely.
Although in capital terms there has been little progress, it has
been a period of volatility. Some investors have worried that the
global economy may be slowing; others are worried that US interest
rates need to rise to counter the build-up of inflationary
pressures. They cannot both be right.
Meanwhile the companies we hold in the portfolio have made good
progress overall, as evidenced by their levels of cash
generation.
Dividend
Lowland's earnings per share in the six months under review was
13.7p which compares with 15.3p last year. The fall is the result
of lower special dividend income being received in the period. The
earnings per share excluding special dividends was 12.6p versus
12.1p. The Company paid a first interim dividend of 11.0p at the
end of April, and now declares a second interim of the same amount,
payable at the end of July. Interim dividends in respect of the
first half therefore amount to 22.0p, an increase of 10% over the
corresponding period last year. Barring unforeseen circumstances,
the Board's intention is to pay a total dividend for this year of
45.0p up from 41.0p last year, an increase of 9.8%. The dividend
has more than doubled over the last ten years.
Portfolio Activity
During the period, the Fund Manager made a number of purchases
in a diverse selection of companies. These include Legal &
General, Headlam and Ibstock. What these companies have in common
is excellence in their operational fields and reasonable
valuations. We would expect them to be increasing their dividends
from a starting yield that is higher than Lowland's cost of
borrowings, which immediately enhances the revenue account.
We have also purchased shares in certain companies which do not
currently pay dividends such as Standard Chartered. We believe that
radical management action by these companies will, over time,
result in a profits recovery and a return to the dividend list.
These companies have a very attractive potential dividend yield at
the price we have paid. We also increased our holding in Shell, as
it is likely, given the capacity cutbacks that the oil price will
rise at some stage. The reduction in the Shell's cost base,
combined with a higher oil price, will lead to a degree of margin
improvement that may pleasantly surprise investors.
These purchases were financed by reducing holdings in Hill &
Smith and Provident Financial, where the latter's valuation after
the share price appreciation more closely reflects the value of the
business. The takeover for cash of Amlin by Mitsui resulted in the
largest individual disposal during the period.
Investment Management Agreement
The Company has agreed a change to the terms of the Investment
Management Agreement with Henderson Investment Funds Limited, in
terms of which no performance fee will be paid if there has been a
decline in the Company's net asset value over the three year period
over which performance is measured. Previously performance fees
would have been paid if the Company outperformed its benchmark,
even if the net asset value declined in absolute terms. The change
reflects investors' concerns at performance fees being paid in
periods of absolute decline in net asset value.
Board Succession
In agreement with the Nominations Committee of the Board I have
decided to retire at the Annual General Meeting in January 2017. I
am delighted to report that the Board has approved the appointment
of Mr Robbie Robertson, as my successor. We have begun a process to
appoint another non-executive to the Board, with a view to the
appointee succeeding Mr Robertson as Chair of the Audit
Committee.
Outlook
The economy is growing at reasonable pace. The US economy is
expected to maintain its growth rate and Europe appears to be
returning to modest growth after stimulation by the European
Central Bank. This is a decent background for equity investment.
Growth is good, but subdued enough to delay interest rate
rises.
The benefits of the fall in the oil price to the headline annual
inflation rate will soon diminish. At the time of writing, the
uncertainties surrounding the Brexit vote are also a concern. We
are conscious that much of British industry is experiencing
challenging conditions but overall we remain comfortable with our
overweight positions in the Industrials sector. The UK companies we
hold in the portfolio are growing as a result of the
competitiveness of their products.
Good profit growth is leading to cash generation and pleasing
dividend progression. We retain a reasonable level of gearing,
which at the period end was 16.7%.
Peter Troughton CBE
Chairman
24 May 2016
Performance as at 31 March 2016
The tables below show the top five contributors to and the
bottom five detractors from the Company's total return
performance.
Top 5 Contributors to Total Return Performance
Company Sector Contribution %
------------------------- ------------------------ ---------------
Glencore Mining +0.8
Irish Continental Group Travel & Leisure +0.5
Anglo American Mining +0.5
RPC General Industrials +0.5
Hill & Smith Industrial Engineering +0.4
Bottom 5 Detractors to Total Return Performance
Company Sector Contribution %
---------------------- ------------------------ ---------------
Renold Industrial Engineering -1.0
Velocys Chemicals -0.4
St Modwen Properties Real Estate -0.4
Standard Chartered Banks -0.3
Interserve Support Services -0.3
% as at 31 March % as at 30 September
2016 2015
Sector Analysis Company Benchmark Company Benchmark
-------------------- --------- ---------- ---------- -----------
Industrials 26.4 10.7 28.4 10.1
Financials 25.3 23.9 27.0 26.3
Basic Materials 14.0 5.0 13.6 4.9
Consumer Services 11.3 12.9 10.3 12.9
Oil & Gas 7.4 10.6 5.8 10.4
Consumer Goods 5.2 17.6 5.5 16.3
Health Care 4.4 8.5 3.9 8.5
Utilities 2.4 4.0 2.4 3.9
Telecommunications 2.4 5.2 2.3 5.1
Technology 1.2 1.6 0.8 1.6
-------- -------- -------- --------
Total 100.0 100.0 100.0 100.0
===== ===== ===== =====
Related Party Transactions
During the first six months of the current financial year, no
transactions with related parties have taken place which has
materially affected the financial position or performance of the
Company during the period. Details of related party transactions
are contained in the Annual Report for the year ended 30 September
2015.
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the
Company's business can be divided into various areas:
-- Investment and Strategy;
-- Market;
-- Financial;
-- Gearing;
-- Operational; and
-- Accounting, Legal and Regulatory.
Information on these risks is given in the Annual Report for the
year ended 30 September 2015. In the view of the Board these
principal risks and uncertainties are as applicable to the
remaining six months of the financial year as they were to the six
months under review.
Statement of Directors' Responsibilities
The Directors confirm that, to the best of their knowledge:
(a) the set of financial statements for the half year to 31
March 2016 has been prepared in accordance with "FRS 104 Interim
Financial Reporting";
(b) the Interim Management Report includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.7R
(indication of important events during the first six months and
description of principal risks and uncertainties for the remaining
six months of the year); and
(c) the Interim Management Report includes a fair review of the
information required by the Disclosure and Transparency Rule 4.2.8R
(disclosure of related party transactions and changes therein).
For and on behalf of the Board
Peter Troughton CBE
Chairman
24 May 2016
Condensed Income Statement
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year-ended
31 March 2016 31 March 2015 30 September 2015
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- ----------
Gains/(losses)
on investments
held at fair
value through
profit or loss - 6,086 6,086 - 16,831 16,831 - (8,387) (8,387)
Income from
investments 5,274 - 5,274 5,667 - 5,667 15,542 - 15,542
Other interest
receivable and
similar income 58 - 58 31 - 31 105 - 105
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Gross revenue
and capital
gains/
(losses) 5,332 6,086 11,418 5,698 16,831 22,529 15,647 (8,387) 7,260
Management fee
and
performance
fee (note 2) (899) (253) (1,152) (913) (928) (1,841) (1,819) (908) (2,727)
Other
administrative
expenses (note
2) (240) - (240) (272) - (272) (484) - (484)
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Net
return/(loss)
on ordinary
activities
before finance
charges and
taxation 4,193 5,833 10,026 4,513 15,903 20,416 13,344 (9,295) 4,049
Finance charges (439) - (439) (386) - (386) (806) - (806)
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Net
return/(loss)
on ordinary
activities
before
taxation 3,754 5,833 9,587 4,127 15,903 20,030 12,538 (9,295) 3,243
Taxation on net
return on
ordinary
activities (51) - (51) (24) - (24) (48) - (48)
--------- -------- --------- --------- -------- --------- --------- --------- ---------
Net
return/(loss)
on ordinary
activities
after taxation 3,703 5,833 9,536 4,103 15,903 20,006 12,490 (9,295) 3,195
====== ====== ====== ====== ====== ====== ===== ====== =====
Return/(loss)
per ordinary
share - basic
and diluted
(note 4) 13.7p 21.7p 35.4p 15.3p 59.1p 74.4p 46.4p (34.6)p 11.8p
====== ====== ====== ====== ====== ====== ===== ====== ======
The total columns of this statement represent the Income
Statement of the Company, prepared in accordance with FRS 104. The
revenue and capital columns are supplementary to this and are
published under guidance from the Association of Investment
Companies.
The Company has no recognised gains or losses other than those
disclosed in the Income Statement and Statement of Changes in
Equity.
All items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the
period.
The accompanying notes are an integral part of the condensed
financial statements.
Condensed Statement of Changes in Equity
(Unaudited)
Half-year ended 31 March 2016
Called Share Capital Other
up share premium redemption capital Revenue
capital account reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2015 6,723 59,923 1,007 275,268 11,642 354,563
Net return on ordinary
activities after
taxation - - - 5,833 3,703 9,536
Third interim dividend
(10.0p) for
the year ended 30
September 2015 - - - - (2,689) (2,689)
Final dividend (11.0p)
for
the year ended 30
September 2015 - - - - (2,972) (2,972)
Issue of new ordinary
shares 32 1,693 - - - 1,725
------------ ------------ ----------- ----------- ----------- -----------
At 31 March 2016 6,755 61,616 1,007 281,101 9,684 360,163
======= ======= ======= ====== ======= =======
(Unaudited)
Half-year ended 31 March 2015
Called Share Capital Other
up share premium redemption capital Revenue
capital account reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2014 6,723 59,923 1,007 284,563 9,640 361,856
Net return on ordinary
activities after
taxation - - - 15,903 4,103 20,006
Third interim dividend
(9.0p) for
the year ended 30
September 2014 - - - - (2,420) (2,420)
Final dividend (10.0p)
for
the year ended 30
September 2014 - - - - (2,689) (2,689)
------------ ------------ ----------- ----------- ----------- -----------
At 31 March 2015 6,723 59,923 1,007 300,466 8,634 376,753
======= ======= ======= ======= ======= =======
(Audited)
Year-ended 30 September 2015
Called Share Capital Other
up share premium redemption capital Revenue
capital account reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 October 2014 6,723 59,923 1,007 284,563 9,640 361,856
Net return on ordinary
activities after
taxation - - - (9,295) 12,490 3,195
Third interim dividend
(9.0p) for
the year ended 30
September 2014 - - - - (2,421) (2,421)
Final dividend (10.0p)
for
the year ended 30
September 2014 - - - - (2,689) (2,689)
First interim dividend
(10.0p) for the
year ended 30 September
2015 - - - - (2,689) (2,689)
Second interim dividend
(10.0p) for the
year ended 30 September
2015 - - - - (2,689) (2,689)
----------- ----------- ----------- ----------- ------------ -----------
At 30 September
2015 6,723 59,923 1,007 275,268 11,642 354,563
====== ====== ====== ====== ====== ======
The accompanying notes form an integral part of these financial
statements.
Condensed Statement of Financial Position
(Unaudited) (Unaudited) (Audited)
Half-year Half-year Year-ended
ended ended 30 September
31 March 31 March 2015
2016 2015 GBP'000
GBP'000 GBP'000
Fixed assets
Investments held at fair
value through profit or
loss (note 5) 420,312 434,480 414,132
----------- ----------- -----------
Current assets
Debtors 2,430 2,779 3,589
Cash at bank 1,432 1,286 669
----------- ----------- -----------
3,862 4,065 4,258
Creditors: amounts falling
due within one year (64,011) (61,792) (63,827)
----------- ----------- -----------
Net current liabilities (60,149) (57,727) (59,569)
----------- ----------- -----------
Net assets 360,163 376,753 354,563
====== ====== =======
Capital and reserves
Called up share capital 6,755 6,723 6,723
Share premium account 61,616 59,923 59,923
Capital redemption reserve 1,007 1,007 1,007
Other capital reserves 281,101 300,466 275,268
Revenue reserve 9,684 8,634 11,642
----------- ----------- -----------
Total shareholders' funds 360,163 376,753 354,563
====== ====== =======
Net asset value per ordinary
share - basic and diluted
(note 7) 1,333.0p 1,401.0p 1,318.4p
======= ======= =======
The accompanying notes form an integral part of these financial
statements.
Condensed Statement of Cash Flows
(Unaudited
(Unaudited) and restated*) (Audited
Half-year Half-year and restated*)
ended ended Year-ended
31 March 31 March 30 September
2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ---------------- ----------------
Cash flows from operating
activities
Net return on ordinary
activities before taxation 9,587 20,030 3,243
Add back: finance costs 439 386 806
(Less)/add: (gains)/losses
on investments held at
fair value through profit
or loss (6,086) (16,831) 8,387
Withholding tax on dividends
deducted at source (55) (24) (44)
Decrease/(increase) in
debtors (228) (710) 99
(Decrease)/increase in
creditors (99) 380 (160)
------------ ---------------- ----------------
Net cash inflow from operating
activities 3,558 3,231 12,331
Cash flows from investing
activities
Purchase of investments (29,701) (31,217) (68,100)
Sale of investments 30,992 23,247 53,569
------------ ---------------- ----------------
Net cash inflow/ (outflow)
from investing activities 1,291 (7,970) (14,531)
Cash flows from financing
activities
Equity dividends paid (net
of refund of unclaimed
distributions and reclaimed
distributions) (5,661) (5,109) (10,488)
Proceeds from issue of
ordinary shares 1,725 - -
Net loans drawn down 270 9,794 12,408
Interest paid (430) (431) (809)
------------ ---------------- ----------------
Net cash (outflow)/inflow
from financing activities (4,096) 4,254 1,111
Net increase/(decrease)
in cash and cash equivalent 753 (485) (1,089)
Cash and cash equivalents
at start of year 669 1,756 1,756
Effect of foreign exchange
rates 10 15 2
------------ ---------------- ----------------
Cash and cash equivalents
at end of year 1,432 1,286 669
------------ ---------------- ----------------
Comprising:
Cash at bank 1,432 1,286 669
--------- --------- ------
1,432 1,286 669
===== ==== ===
*See Note 1
The accompanying notes are an integral part of the financial
statements.
Notes to the Financial Statements
The half-year financial statements cover the period from 1
October 2015 to 31 March 2016 and have not been audited or reviewed
by the Company's auditor.
1. Accounting policies - basis of preparation
The condensed set of financial statements has
been prepared in accordance with FRS 104, Interim
Financial Reporting, issued in March 2015, the
revised reporting standard for half-year reporting
that was issued following the introduction of
FRS 102, the Financial Reporting Standard applicable
in the UK and Republic of Ireland, which is effective
for periods commencing on or after 1 January
2015. The Statement of Recommended Practice for
"Financial Statements of Investment Trust Companies
and Venture Capital Trusts", in accordance with
which the Company's financial statements are
also prepared, was reissued by the Association
of Investment Companies in November 2014 to comply
with the revised reporting standards. The Company
has early adopted the amendments to FRS 102 in
respect to fair value hierarchy disclosures as
published in March 2016.
Following the application of the revised reporting
standards, there have been no significant changes
to the accounting policies set out in the Company's
Annual Report for the year ended 30 September
2015.
The condensed financial statements for the year
ended 30 September 2015 and the six months ended
31 March 2015 have been restated where necessary
to comply with the new standards and disclosure
requirements.
There has been no impact on the Company's Income
Statement, Statement of Financial Position (previously
called the Balance Sheet) or Statement of Changes
in Equity (previously called the Reconciliation
of Movements in Shareholders' Funds) for periods
previously reported. The Cash Flow Statement
previously reported has been restated to comply
with the new disclosure requirements of the revised
reporting standard. The condensed set of financial
statements has been neither audited nor reviewed
by the Company's auditors.
2. Expenses
All expenses with the exception of the performance
fee are charged wholly to revenue. Expenses which
are incidental to the purchase or sale of an
investment are included in the cost or deducted
from the proceeds of sale of the investment.
A provision of GBP253,000 (31 March 2015: GBP928,000;
30 September 2015: actual GBP908,000) has been
made for a performance fee based on the Company's
performance relative to the FTSE All-Share Index
(the benchmark) over the thirty months to 31
March 2016. The actual performance fee payable
will be calculated based on the actual relative
performance for the thirty-six months to 30 September
2016 and will be equal to 15% of any outperformance
(on a total return basis) of the FTSE All-Share
Index by more than 10% (the "hurdle rate"). The
total of the management and performance fees
are capped at 0.75% of average net chargeable
assets for the year. The provision, which is
the maximum that could be charged under the cap
arrangements, has been charged to the capital
return column of the income statement whereas
the management fee is charged to the revenue
return column.
3. Management and performance fees
The Company has agreed a change to the terms
of the Investment Management Agreement with Henderson
Investment Funds Limited with effect from 24
May 2016 in terms of which no performance fee
will be paid if there has been a decline in the
Company's net asset value over the three year
period over which performance is measured.
4. Return per ordinary share - basic and diluted
(Unaudited) (Unaudited)
Half year Half year (Audited)
ended ended Year ended
31 March 31 March 30 September
2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------- -------------- ------------- ----------------
The return per ordinary
share is based on
the following figures:
Net revenue return 3,703 4,103 12,490
Net capital return/(loss) 5,833 15,903 (9,295)
---------- ---------- ----------
Net total return 9,536 20,006 3,195
====== ====== ======
Weighted average
number of ordinary
shares in issue for
each period 26,965,491 26,892,427 26,892,427
Revenue return per
ordinary share 13.7p 15.3p 46.4p
Capital return per
ordinary share 21.7p 59.1p (34.6)p
---------- ---------- ----------
Total return per
ordinary share 35.4p 74.4p 11.8p
====== ====== ======
The Company does not have any dilutive securities;
therefore basic and diluted returns per share
are the same.
Investments held at fair value through profit
5. of loss
The table below analyses fair value measurements
for investments held at fair value through profit
or loss. These fair value measurements are categorised
into different levels in the fair value hierarchy
based on the valuation techniques used and are
defined as follows under FRS 102:
Level 1: valued using quoted prices in active
markets for identical assets
Level 2: valued by reference to valuation techniques
using observable inputs other than quoted prices
included in Level 1
Level 3: valued by reference to valuation techniques
using inputs that are not based on observable
market date
Investments held at fair Level Level Level Total
value through profit or 1 2 3 GBP'000
loss at 31 March 2016 GBP'000 GBP'000 GBP'000
(unaudited)
-------------------------- --------- --------- --------- ---------
Investments 418,133 - 2,179 420,312
Investments held at fair Level Level Level Total
value through profit or 1 2 3 GBP'000
loss at 31 March 2015 GBP'000 GBP'000 GBP'000
(unaudited)
-------------------------- --------- --------- --------- ---------
Investments 433,634 - 846 434,480
Investments held at fair Level Level Level Total
value through profit or 1 2 3 GBP'000
loss at 30 September 2015 GBP'000 GBP'000 GBP'000
(audited)
---------------------------- --------- --------- --------- ---------
Investments 411,953 - 2,179 414,132
The investments were previously reported as Level
1 or Level 3 investments under the FRS 29 fair
value hierarchy and those same investments continue
to be classified as Level 1 or Level 3 investments
following the adoption of FRS 102 and the amendments
to the fair value hierarchy issued in March 2016.
There have been no transfers between levels of
the fair value hierarchy during the period.
The valuation techniques used by the Company
are explained in the accounting policies note
in the Company's Annual Report for the year ended
30 September 2015 and are equally applicable
under both FRS 29 and FRS 102.
Transaction costs
Purchase transaction costs for the half year
ended 31 March 2016 were GBP139,000 (half year
ended 31 March 2015: GBP156,000; year ended 30
September 2015: GBP336,000). Sale transaction
costs for the half year ended 31 March 2016 were
GBP28,000 (half year ended 31 March 2015: GBP19,000;
year ended 30 September 2015: GBP43,000). These
6 comprise mainly stamp duty and commission.
Net asset value per ordinary share - basic and
7. diluted
The net asset value per ordinary share is based
on the net assets attributable to the ordinary
shares of GBP360,163,000 (31 March 2015: GBP376,753,000;
30 September 2015: GBP354,563,000) and on 27,018,565
ordinary shares (31 March 2015: 26,892,427; 30
September 2015: 26,892,427) being the number
of ordinary shares in issue at the end of each
period.
8. Dividend
On 29 April 2016, a first interim dividend of
11.0p per Ordinary Share was paid in respect
of the year ended 30 September 2016. A second
interim dividend of 11.0p per Ordinary Share
has been declared and will be paid on 29 July
2016 to shareholders on the register of members
at the close of business on 1 July 2016. The
ex-dividend date is 30 June 2016. Based on the
number of shares in issue on 24 May 2016 of 27,018,565,
the cost of the dividend will be GBP2,972,000.
9. Going concern
Having reassessed the principal risks and uncertainties
the Directors believe that it is appropriate
to adopt the going concern basis in preparing
the financial statements.
10. Comparative Information
The financial information contained in this half-year
report does not constitute statutory accounts
as defined in section 434 of the Companies Act
2006. The figures and financial information for
the year ended 30 September 2015 are extracted
from the latest published accounts, restated
where necessary to comply with FRS 102 and FRS
104 as explained in note 1, and do not constitute
the statutory accounts for that year. Those accounts
have been delivered to the Registrar of Companies
and included the report of the independent auditors,
which was unqualified and did not include a statement
under either section 498(2) or 498(3) of the
Companies Act 2006.
11. Manager
Henderson Investment Funds Limited ('HIFL') is
appointed to act as the Company's Alternative
Investment Fund Manager. HIFL delegates investment
management services to Henderson Global Investors
Limited. References to Henderson within these
results refer to the services provided by both
entities.
12. General information
Company Objective
The Company aims to give shareholders a higher
than average return with growth of both capital
and income over the medium to long term, through
a broad spread of predominantly UK Companies.
The Company measures its performance against
the FTSE All-Share Index Total Return.
Company Status
The Company is a UK domiciled investment trust
company.
The London Stock Exchange Daily Official List
SEDOL number is 0536806 and ISIN number is GB0005368062.
The London Stock Exchange (EPIC) Code is LWI.
The Global Intermediary Identification Number
(GIIN) is 2KBHLK.99999.SL.826.
The Legal Entity Identifier Number (LEI) is 2138008RHG5363FEHV19
Directors
The Directors of the Company are Peter Troughton
(Chairman), Duncan Budge, Kevin Carter, Robert
Robertson and Karl Sternberg.
Corporate Secretary
Henderson Secretarial Services Limited, represented
by Hannah Blackmore ACIS.
Registered Office
201 Bishopsgate, London EC2M 3AE. Registered
number 670489.
Website
Details of the Company's share price and net
asset value, together with general information
about the Company, monthly factsheets and data,
copies of announcements, reports and details
of general meetings can be found at www.lowlandinvestment.com.
13. Half Year report
The Half Year report will be available in typed
format on the Company's website or from the Company's
Registered Office, 201 Bishopsgate, London EC2M
3AE. An update extracted from the Company's Half
Year report will be posted to shareholders in
early June 2016 and will be available on the
Company's website thereafter.
Portfolio Information
as at 31 March 2016
Market
Value % of
Company Sector GBP'000 Portfolio
-------------------------- ------------------------------- --------- ------------
Royal Dutch
Shell Oil & Gas Producers 17,361 4.1
Hiscox Non-Life Insurance 12,029 2.9
Senior Aerospace & Defence 11,405 2.7
Phoenix Life Insurance 10,991 2.6
Scapa(1) Chemicals 8,600 2.1
Irish Continental(2) Travel & Leisure 8,564 2.0
HSBC Banks 8,136 1.9
BP Oil & Gas Producers 7,703 1.8
GKN Automobiles & Parts 7,336 1.8
Hill & Smith Industrial Engineering 7,237 1.7
10 Largest 99,362 23.6
----------------------------------------------------------- --------- ------------
Legal & General Life Insurance 7,056 1.7
Glencore Mining 6,956 1.7
Anglo American Mining 6,901 1.6
DS Smith General Industrials 6,120 1.5
Croda Chemicals 6,078 1.5
Standard Chartered Banks 6,043 1.4
Provident
Financial Financial Services 5,930 1.4
Rio Tinto Mining 5,866 1.4
RELX Media 5,823 1.4
Low & Bonar Construction & Materials 5,568 1.3
20 Largest 161,703 38.5
----------------------------------------------------------- --------- ------------
Novae Non-Life Insurance 5,460 1.3
Castings Industrial Engineering 5,411 1.3
RPC General Industrials 5,317 1.3
International
Personal Finance Financial Services 5,313 1.2
Pharmaceuticals &
GlaxoSmithKline Biotechnology 5,295 1.2
Elementis Chemicals 5,267 1.2
Canfor Pulp(2) Forestry & Paper 5,121 1.2
Rolls-Royce Aerospace & Defence 4,944 1.2
Marshalls Construction & Materials 4,913 1.2
Johnson Service(1) Support Services 4,908 1.2
-------------------------- ------------------------------- --------- ------------
30 Largest 213,652 50.8
----------------------------------------------------------- --------- ------------
Avon Rubber Aerospace & Defence 4,827 1.2
Household Goods &
Headlam Home Construction 4,782 1.1
Health Care Equipment
Consort Medical & Services 4,737 1.1
Convivilaity
Retail(1) Food & Drug Retailers 4,734 1.1
Vodafone Mobile Telecommunications 4,575 1.1
Carclo Chemicals 4,567 1.1
Pharmaceuticals &
4D Pharma(1) Biotechnology 4,464 1.1
Park(1) Financial Services 4,233 1.0
Clarkson Industrial Transportation 4,137 1.0
BAE Systems Aerospace & Defence 4,072 1.0
-------------------------- ------------------------------- --------- ------------
40 Largest 258,780 61.6
----------------------------------------------------------- --------- ------------
Marstons Travel & Leisure 3,990 1.0
Technology Hardware
Infineon Technologies(2) & Equipment 3,964 0.9
National Grid Gas, Water & Multiutilities 3,949 0.9
Inmarsat Mobile Telecommunications 3,938 0.9
CRH(2) Construction & Materials 3,932 0.9
Greencore(2) Food Producers 3,750 0.9
IP Group Financial Services 3,696 0.9
Interserve Support Services 3,687 0.9
Aviva Life Insurance 3,649 0.9
Centrica Gas, Water & Multiutilities 3,643 0.9
-------------------------- ------------------------------- --------- ------------
50 Largest 296,978 70.7
----------------------------------------------------------- --------- ------------
St Modwen
Properties Real Estate 3,604 0.8
Balfour Beatty Construction & Materials 3,583 0.8
Chesnara Life Insurance 3,370 0.8
Churchill Household Goods &
China(1) Home Construction 3,344 0.8
Mondi Forestry & Paper 3,340 0.8
Renold Industrial Engineering 3,326 0.8
Daily Mail
& General
Trust Media 3,308 0.8
Barclays Banks 3,300 0.8
Epwin(1) Construction & Materials 3,289 0.8
Prudential Life Insurance 3,253 0.8
-------------------------- ------------------------------- --------- ------------
60 Largest 330,695 78.7
----------------------------------------------------------- --------- ------------
Mucklow Real Estate 3,185 0.8
Shoe Zone(1) General Retailers 3,157 0.8
McColl's Retail Food & Drug Retailers 3,133 0.7
IMI Industrial Engineering 3,129 0.7
Tesco Food & Drug Retailers 3,069 0.7
Standard Life Life Insurance 2,914 0.7
Ibstock Construction & Materials 2,822 0.7
Herald Investment Equity Investment
Trust Instruments 2,796 0.7
Morgan Advanced Electronic & Electrical
Materials Equipment 2,726 0.6
H&T Group(1) Financial Services 2,592 0.6
-------------------------- ------------------------------- --------- ------------
70 Largest 360,218 85.7
----------------------------------------------------------- --------- ------------
FBD(2) Non-Life Insurance 2,557 0.6
Findel General Retailers 2,534 0.6
Weir Industrial Engineering 2,493 0.6
Segro Real Estate 2,462 0.6
Quarto Media 2,420 0.6
Pearson Media 2,406 0.6
BHP Billiton Mining 2,348 0.6
Gibson Energy(2) Oil & Gas Producers 2,252 0.5
Electronic & Electrical
TT Electronics Equipment 2,235 0.5
Stobart Industrial Transportation 2,100 0.5
-------------------------- ------------------------------- --------- ------------
80 Largest 384,025 91.4
----------------------------------------------------------- --------- ------------
Pharmaceuticals &
Horizon Discovery(1) Biotechnology 2,090 0.5
Pennon Gas, Water & Multiutilities 2,028 0.5
Revolymer(1) Chemicals 1,980 0.5
Oil Equipment Services
Cape & Distribution 1,911 0.4
Palace Capital(1) Real Estate 1,859 0.4
Somero Enterprises
(1,2) Industrial Engineering 1,850 0.4
Manx Telecom(1) Fixed Line Telecommunications 1,767 0.4
Pharmaceuticals &
AstraZeneca Biotechnology 1,717 0.4
Shanks Support Services 1,660 0.4
Carr's Group Food Producers 1,560 0.4
-------------------------- ------------------------------- --------- ------------
90 Largest 402,446 95.7
----------------------------------------------------------- --------- ------------
Carillion Support Services 1,471 0.4
Topps Tiles General Retailers 1,470 0.3
Babcock International Support Services 1,424 0.3
Oxford Sciences Pharmaceuticals &
Innovation Biotechnology 1,333 0.3
Velocys(1) Chemicals 1,302 0.3
DFS Furniture General Retailers 1,193 0.3
Wireless Media 891 0.2
Airea(1) Personal Goods 846 0.2
Software & Computer
Fidessa Services 706 0.2
Elecosoft(1) Construction & Materials 662 0.2
-------------------------- ------------------------------- --------- ------------
100 Largest 413,744 98.4
----------------------------------------------------------- --------- ------------
(1) AIM Stocks
(2) Overseas Quoted Stocks (Canada, Germany and Ireland)
For further information please contact:
James Henderson
Fund Manager, Tel: 020 7818 4370
Laura Foll
Deputy Fund Manager, Tel: 020 7818 6364
James de Sausmarez
Director and Head of Investment Trusts, Henderson Global
Investors, Tel: 020 7818 3349
Sarah Gibbons-Cook
Investor Relations and PR Manager, Henderson Global Investors,
Tel: 020 7818 3198
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKQDPNBKDPPB
(END) Dow Jones Newswires
May 24, 2016 09:56 ET (13:56 GMT)
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