ISRAS Investment Company Ltd.

Quarterly Report • May 8, 2013

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RNS Number : 1714E

Investment Company PLC

08 May 2013

FOUNDED 1868 REGISTERED No. 4205 ENGLAND AND WALES		THE INVESTMENT COMPANY PLC UNAUDITED SECOND INTERIM REPORT For the twelve month period ended 31 March 2013

Chairman's Statement

Your Directors have decided to extend the 2012/2013 trading period from twelve months to fifteen months ending on 30th June, 2013. Consequently, in accordance with the London Stock Exchange Listing Agreement we are today issuing an Unaudited Second Interim Report for the twelve months period ending 31st March, 2013.

At the same time we are issuing a document setting out your Board's proposals for the future of the Company. Full details have been announced on the Regulatory News Service of the London Stock Exchange this morning. In consequence of these proposals your Board does not intend to declare any further dividend on the Ordinary Shares in respect of the nine month period to 30th June, 2013.

It is anticipated that a full Prospectus document will be issued and sent to all shareholders calling a General Meeting before the end of June.

The  unaudited  net  asset value per ordinary share at 31st March, 2013 was 390.08p and at 30th April, 2013 was 400.69p. This compares with 315.96p at 31st March, 2012.

Sir David Thomson Bt. Chairman 8 May 2013	Registered office: 3rd Floor, Salisbury House London Wall London EC2M 5QS

Consolidated Statement of Comprehensive Income

For twelve months ended 31 March 2013

	Notes	12 months to 31 March 2013 (unaudited)			Year to 31 March 2012 (audited)
		Revenue	Capital	Total	Revenue	Capital	Total
		£	£	£	£	£	£
Total income		922,784	-	922,784	1,363,009	-	1,363,009
Administrative expenses		(425,171)	-	(425,171)	(433,590)	-	(433,590)
Loan note interest		(53,583)	-	(53,583)	(71,991)	-	(71,991)
Other finance costs		(349,636)	-	(349,636)	(349,636)	-	(349,636)
Other interest payable		(2,195)	-	(2,195)	(5,454)	-	(5,454)
Realised gains on investments		-	220,111	220,111	-	26,097	26,097
Movement in impairment provisions		-	26,676	26,676	-	(270,261)	(270,261)
Net return before taxation		92,199	246,787	338,986	502,338	(244,164)	258,174
Taxation		-	-	-	-	-	-
Net return after taxation		92,199	246,787	338,986	502,338	(244,164)	258,174
Other comprehensive income/expense
Movement in unrealised appreciation of investments:
Recognised in equity		-	1,222,379	1,222,379	-	7,801	7,801
Recognised in profit or loss		-	(15,330)	(15,330)	-	(146,627)	(146,627)
Total comprehensive income for the period attributable to equity shareholders		92,199	1,453,836	1,546,035	502,338	(382,990)	119,348
Return per 50p Ordinary Share
From net return after taxation		2.26p	13.22p	15.48p	24.23p	(13.08)p	11.15p
From movement in unrealised appreciation of investments:		-	64.64p	64.64p	-	(7.43)p	(7.43)p
Total: Basic and diluted	5	2.26p	77.86p	80.12p	24.23p	(20.51)p	3.72p
Net asset value per 50p Ordinary Share				390.08p			315.96p
All the Company's operations are continuing.

Consolidated Statement of Changes in Equity

For twelve months ended 31 March 2013

		Issued Capital	Share Premium	Own Shares Held	Capital Redemption Reserve	Revaluation Reserve	Capital Reserve	Revenue Account	Total
		£	£	£	£	£	£	£	£
Balance at 1 April 2012		1,808,728	1,019,246	(2,919,861)	685,250	2,313,745	4,806,064	684,449	8,397,621
Buy in of own shares		-	-	-	-	-	-	-	-
Movement in unrealised appreciation of investments
- recognised in equity		-	-	-	-	1,222,379	-	-	1,222,379
- recognised in profit or loss		-	-	-	-	(15,330)	-	-	(15,330)
Net increase in net assets from operations		-	-	-	-	-	246,787	92,199	338,986
Ordinary dividends paid		-	-	-	-	-	-	(112,043)	(112,043)
Participating element of preference dividends paid		-	-	-	-	-	-	(49,948)	(49,948)
Balance at 31 March 2013		1,808,728	1,019,246	(2,919,861)	685,250	3,520,794	5,052,851	614,657	9,781,665
Balance at 1 April 2011		1,808,728	1,019,246	(2,919,861)	685,250	2,452,571	5,050,228	344,102	8,440,264
Movement in unrealised appreciation of investments
- recognised in equity		-	-	-	-	7,801	-	-	7,801
- recognised in profit or loss		-	-	-	-	(146,627)	-	-	(146,627)
Net increase in net assets from operations		-	-	-	-	-	(244,164)	502,338	258,174
Ordinary dividends paid		-	-	-	-	-	-	(112,043)	(112,043)
Participating element of preference dividends paid		-	-	-	-	-	-	(49,948)	(49,948)
Balance at 31 March 2012		1,808,728	1,019,246	(2,919,861)	685,250	2,313,745	4,806,064	684,449	8,397,621

Consolidated Balance Sheet

At 31 March 2013

		31 March 2013 (Unaudited) £	31 March 2012 (Audited) £
Investments Investments at cost		12,408,510	13,073,264
Unrealised appreciation/(diminution)		377,109	(856,618)
Portfolio investments at market value		12,785,619	12,216,646
Current assets
Trade and other receivables		191,464	214,896
Investments		129,136	182,857
Cash and bank balances		294,918	284,517
		615,518	682,270
Current liabilities
Bank overdraft		-	500,000
Preference dividends payable		174,818	174,818
Trade and other payables		215,851	231,974
5% loan notes maturing 2014		365,700	365,700
		756,369	1,272,492
Net current (liabilities)		(140,851)	(590,222)
Non-current liabilities
5% loan notes maturing 2015		(365,700)	(731,400)
Participating preference shares		(2,497,403)	(2,497,403)
Net assets		9,781,665	8,397,621
Capital and reserves
Issued capital		1,808,728	1,808,728
Share premium		1,019,246	1,019,246
Own shares held		(2,919,861)	(2,919,861)
Capital redemption reserve		685,250	685,250
Revaluation reserve		3,520,794	2,313,745
Capital reserve		5,052,851	4,806,064
Revenue reserves		614,657	684,449
Shareholders' funds		9,781,665	8,397,621
Net Asset Value per 50p Ordinary share		390.08p	315.96p

Company Number:  4205

Consolidated Cash Flow Statement

For the twelve months ended 31 March 2013

	Notes	12 months to 31 March 2013 (unaudited)	Year to 31 March 2012 (audited)
		£	£
Cash flows from operating activities
Cash received from investments		297,469	417,926
Interest received		616,680	558,386
Sundry income		468	-
Cash paid to and on behalf of employees		(210,495)	(150,175)
Other cash payments		(222,207)	(251,852)
Net cash inflow from operating activities		481,915	574,285
Cash flows from financing activities
Bank interest paid		(2,195)	(5,454)
Loan note interest paid		(53,583)	(71,991)
Loan notes redeemed		(365,700)	(365,702)
Fixed element of dividends paid on preference shares		(349,636)	(349,636)
Participating element of dividends paid on preference shares		(49,948)	(49,948)
Dividends paid on ordinary shares		(105,706)	(109,962)
Net cash outflow from financing activities		(926,768)	(952,693)
Cash flows from investing activities
Purchase of investments		(353,256)	(1,278,605)
Sale of investments		1,308,510	1,243,114
Net cash inflow/(outflow) from investing activities		955,254	(35,491)
Net increase/(decrease) in cash and cash equivalents	7	510,401	(413,899)

Notes to the Interim Report

1           Financial information

The Investment Company plc is a limited company incorporated in Great Britain and registered in England and Wales, company number 4205. The address of its registered office and principal place of business is 3rd Floor, Salisbury House, London Wall, London EC2M 5QS.

The financial information contained in this second interim financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the twelve months ended 31 March 2013 has been neither audited nor reviewed by the auditors.

The figures and financial information for the year ended 31 March 2012 are extracted from the latest published audited financial statements of the Company and do not constitute the statutory accounts for that year. The audited financial statements for the year ended 31 March 2012 have been filed with the Registrar of Companies. The report of the independent auditors on those accounts contained no qualification or statement under section 498(2) or section 498(3) of the Companies Act 2006.

Except as described below, the Group has applied consistent accounting policies in preparing the interim financial statements for the twelve months ended 31 March 2013 and the financial statements for the period ended 31 March 2012.

The Group applies revised IAS 1 Presentation of Financial Statements, as a result of which the Company presents in the statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the statement of comprehensive income. This standard is concerned with presentation only and does not have any impact on the results or net assets of the Company.

2           Accounting policies

These financial statements have been prepared in accordance with International Accounting Standards (IAS) issued by the International Accounting Standards Board (IASB) as adopted by the EU and in accordance with the Interpretations of International Accounting Standards issued by the Standing Interpretations Committee of the IASB.

These financial statements have been prepared under the historical cost convention, except for Portfolio Investments which are stated at market value.

3           Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge:

(a) these condensed financial statements have been prepared in accordance with IAS 34;

(b) the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (an indication of important events that have occurred during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

(c) the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

4           Dividends payable

		12 months to 31 March 2013 (unaudited)	Year to 31 March 2012 (audited)
		£	£
Participating preference shares
Participating preference element		49,948	49,948
Ordinary shares
Prior year final		74,696	74,696
Current year interim		37,347	37,347
Total dividends		161,991	161,991

5           Return per ordinary share

	12 months to 31 March 2013 (unaudited)		Year to 31 March 2012 (audited)
Ordinary shares	1,867,391		1,867,391
	£	Per Share Pence	£	Per Share Pence
Revenue
Net return after taxation	92,199	4.93	502,338	26.90
Participating dividend	(49,948)	(2.67)	(49,948)	(2.67)
Capital
Net investment gains/(losses) after taxation	246,787	13.22	(244,164)	(13.08)
Net return after taxation	289,038	15.48	208,226	11.15
Movement in unrealised appreciation of investments	1,207,049	64.64	(138,826)	(7.43)
Total	1,496,087	80.12	69,400	3.72

As the Company has no options or warrants in issue, basic and diluted earnings per share are the same.

6           Preference shares

The participating preference shares entitle the holders, in priority to the payment of any dividend to the holders of all or any other shares in the capital of the company, to a fixed net cash cumulative dividend at the rate of 7p per share per annum. In addition, holders are entitled to a participating dividend at the rate of 25% of any dividends paid on the Ordinary Shares in excess of 2p per share for any year, subject to a maximum participating dividend in respect of any year of 3p net per share. On any return of capital holders are entitled to the payment of a premium of 50p per share.

7           Analysis of net debt

		At 31 March 2013 (unaudited)	Cash flow (unaudited)	At 1 April 2012 (audited)
		£	£	£
Cash and bank balances		294,918	10,401	284,517
Bank overdraft		-	500,000	(500,000)
5% loan notes maturing March 2014/2015		(731,400)	365,700	(1,097,100)
		(436,482)	876,101	(1,312,583)
Participating preference shares		(2,497,403)	-	(2,497,403)
		(2,933,885)	876,101	(3,809,986)

8           Movement in Net Asset Value

	£	p	p
NAV at 1 April 2012			315.96
Revenue in period	42,251	2.26
Realised gains on investments	220,111	11.79
Movement in impairment provisions	26,676	1.43
	246,787	13.22
			15.48
Revaluation reserve at period end	3,520,794
Revaluation reserve at start of year	2,313,745
Increase in the year in unrealised appreciation of investments above cost	1,207,049		64.64
Dividends paid to ordinary shareholders	(112,043)		(6.00)
NAV at 31 March 2013			390.08

IFRS requires diminution in value from the cost of an investment to be reflected through the Consolidated Income Statement. This does not reflect similarly any rise in value above the cost. However once provision for any diminution in value or unrealised loss (known as an Impairment Provision) has been put through the Income Statement, any subsequent recovery up to original cost does go through the Income Statement; but if the value of those investments continues to rise above cost, until that gain is realised it is confined to the Statement of Changes in Equity where it is shown in the Revaluation Reserve on the Balance Sheet.

9           Principal Risks and Uncertainties

The group's financial instruments comprise investments in fixed interest securities and prior charge investments, borrowings for investment purposes, cash balances and debtors and creditors that arise directly from its operations. Its principal risks are market price risk, interest rate risk and liquidity risk. These risks, and the way in which they are managed, are described in more detail within the Company's Annual Report and Accounts for the year ended 31 March 2012. The nature of the Company's principal risks and uncertainties has not changed materially since the date of that report.

10         Related Party Transactions

During the first twelve months of the current financial period, no new transactions with related parties have taken

Place. Details of related party transactions are contained in the Company's Annual Report for the year ended 31 March 2012.

This information is provided by RNS

The company news service from the London Stock Exchange

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