RNS Number:1443S
Investment Company PLC
17 November 2003
THE INVESTMENT COMPANY PLC
FOUNDED
1868
REGISTERED No. 4205
ENGLAND AND WALES
UNAUDITED INTERIM REPORT
For the period 1st April 2003 to 30th September 2003
CHAIRMAN'S STATEMENT
The directors have declared an interim dividend of 3p per share payable on 19 December 2003 to shareholders on the
register at 28 November 2003. This compares with an interim dividend of 4p paid last year. The ordinary shares will be
marked ex-dividend on 26 November 2003.
The total income for the half-year amounted to #472,003 compared with #594,583 in the equivalent six months last year.
Income has been severely affected by the very late decision of the directors of Whitnash plc to pass the dividend due
on that company's preference shares on 30th September 2003. At six seconds past six o'clock in the evening of Friday,
26th September, the company announced that it would not be paying the dividend although the shares had been quoted
ex-dividend on 27th August 2003. As shareholders will be aware from the Report & Accounts at 31st March 2003, Whitnash
was the company's largest investment representing 7.82% of the total portfolio. The dividends on these holdings
represented 9.36% of the total income in the year to March 2003.
The excuse given by the directors of Whitnash for the decision not to pay the dividend already declared ex-dividend was
described as follows:
"As the current assets of Whitnash plc mainly relate to receivables from group companies and all the income of Whitnash
plc is generated from group companies its prospects depend upon the performance of Automotive Products Group Limited
and its subsidiaries."
"The accounts of Automotive Products Group Limited for the year ended 31 December 2002 will soon be filed at Companies
House. These show that at 31 December 2002 Automotive Products Group Limited had a pension fund deficit of #26.2
million calculated in accordance with FRS17. Following changes to pension legislation announced in June 2003, this
pension fund deficit of Automotive Products Group Limited could increase further in value. These factors impact on the
recoverability of amounts owed to Whitnash and thus Whitnash's ability to pay dividends. Therefore the directors have
decided to defer the half year preferential dividends payable on 30 September 2003."
The directors of Whitnash have stated that the position will be reviewed again after the end of the financial year
which is 31 December 2003 and we await further developments. However it is clear that TIC will be unable to maintain
its ordinary dividend this year which will automatically diminish the participating element of the dividend on the
preference shares. Nevertheless your company has revenue reserves and the dividends on Whitnash are cumulative.
Consequently the directors have decided to reduce the interim dividend from 4p to 3p and will decide the amount of the
final dividend when the results for the full year are known and when the prospects for the resumption of dividends from
Whitnash can be assessed.
The net asset value per 50p ordinary share at 30 September of 199.44p ex-dividend compares with 197.03p ex-dividend at
31 March 2003. The fall in value of the Whitnash holding in the last two days of the period under review almost
eliminated the good work achieved earlier in the period in Bulmers and by the recovery of our holdings in zero dividend
preference shares as mentioned in my statement in June. Nevertheless your directors expect TIC to weather this storm as
it has other similar ones in the past.
This Statement is being sent to all shareholders and is available to the public at the Company's registered office.
P. F. Simms Registered Office:
Chairman 3rd Floor Salisbury House
London Wall
17th November 2003 London EC2M 5QS
Registered No. 4205 England
PROFIT AND LOSS ACCOUNT
For the six months ended 30th September 2003
Half-year to Half-year to Year to
30th September 30th September 31st March
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Total income 472,003 594,583 1,032,883
Expenses 157,248 153,155 326,351
Net revenue before
taxation 314,755 441,428 706,532
Taxation - - -
Net revenue after
taxation 314,755 441,428 706,532
Dividends:
Participating
preference 342,914 403,064 648,406
Ordinary 83,958 111,944 277,974
Loss for the period (112,117) (73,580) (219,848)
(Loss)/earnings per ordinary share after
preference dividend (1.01)p 1.37p 2.08p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30th September 2003
Half-year to Half-year to Year to
30th September 30th September 31st March
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Distributable profits
Net revenue after taxation 314,755 441,428 706,532
Non-distributable profits
Net profit/(loss) on disposal
of investments 146,717 (653,146) (533,218)
Writedown in value of
investments - - (1,112,399)
Movement in unrealised
appreciation of investments 32,906 66,473 137,144
179,623 (586,673) (1,508,473)
Total recognised gains/
(losses) 494,378 (145,245) (801,941)
BALANCE SHEET
At 30th September 2003
30th September 30th September 31st March
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Fixed assets
Investments at cost 13,146,439 14,257,920 13,433,242
Unrealised depreciation (292,820) (396,397) (325,726)
12,853,619 13,861,523 13,107,516
Current assets
Debtors 7,200 979,647 231,972
Cash at bank 17,823 287,690 14,081
25,023 1,267,337 246,053
Current liabilities
Bank overdraft 473,548 763,911 517,206
Dividends 426,872 515,008 413,258
Corporation tax 1,050 1,050 1,050
Other creditors 160,724 259,836 673,113
1,062,194 1,539,805 1,604,627
Net current liabilities (1,037,171) (272,468) (1,358,574)
Net assets 11,816,448 13,589,055 11,748,942
Capital and reserves
Called-up share capital 4,566,695 4,954,195 4,566,695
Revaluation reserve (292,820) (396,397) (325,726)
Capital reserve brought
forward 4,510,426 6,156,043 6,156,043
Realised profits/(losses) 146,717 (653,146) (1,645,617)
Capital reserve carried
forward 4,657,143 5,502,897 4,510,426
Capital redemption
reserve 2,439,800 2,052,300 2,439,800
Revenue account brought
forward 557,747 1,549,640 1,549,640
Net revenue for period (112,117) (73,580) (219,848)
Purchase of own shares - - (772,045)
Revenue account carried
forward 445,630 1,476,060 557,747
Total shareholders'
funds 11,816,448 13,589,055 11,748,942
Net asset value per
Participating preference
share 100.00p 100.00p 100.00p
Ordinary share 199.44p xd 235.09p xd 197.03p xd
UNAUDITED CASHFLOW STATEMENT
For the six months ended 30th September 2003
Half -year to Half-year to Year to
30th September 30th September 31st March
2003 2002 2003
Notes (unaudited) (unaudited) (audited)
# # #
Net cash inflow from
operating activities (1) 315,295 436,163 748,049
Returns on investments and
servicing of finance (260,665) (251,935) (664,215)
Taxation - (1,746) (1,746)
54,630 182,482 82,088
Capital expenditure and financial investment
Purchase of investments (1,213,752) (1,289,395) (2,101,932)
Purchase of own shares (498,841) - (273,204)
Sale of investments 1,869,536 611,415 1,883,914
156,943 (677,980) (491,222)
Equity dividends paid (164,173) (192,859) (306,127)
Increase/(decrease) in
cash (2) 47,400 (688,357) (715,261)
NOTES TO THE CASHFLOW STATEMENT
For the six months ended 30 September 2003
1. Reconciliation of operating profit to net cashflow from operations
Half -year to Half-year to Year to
30th September 30th September 31st March
2003 2002 2003
(unaudited) (unaudited) (audited)
Net revenue before taxation 314,755 441,428 706,532
Interest payable 15,322 6,592 15,808
(Increase)/decrease in debtors (5,576) (23,915) 289
(Decrease)/increase in
creditors (9,206) 12,058 25,420
315,295 436,163 748,049
2. Analysis of net debt
At 30th September At 1st April
2003 Cash flow 2003
Cash at bank 17,823 3,742 14,081
Bank overdraft (473,548) 43,658 (517,206)
(455,725) 47,400 (503,125)
NOTES TO THE INTERIM REPORT
1. Financial information
The financial information above does not constitute statutory accounts within the meaning of Section 240
of the Companies Act 1985.
The interim financial information has not been audited but has been reviewed by the Company's auditors.
2. Taxation
No tax liabilities are expected to arise from the activities in the six months to 30th September 2003.
Deferred tax has not been provided.
3. (Losses)/earnings per share
Half-year to Half-year to Year to
30th September 30th September 31st March
2003 2002 2003
(unaudited) (unaudited) (audited)
# # #
Net revenue after taxation 314,755 441,428 706,532
Participating preference
dividend (342,914) (403,064) (648,406)
Loss)/profit attributable to
ordinary shareholders (28,159) 38,364 58,126
Number of ordinary shares in
issue 2,798,584 2,798,584 2,798,584
This information is provided by RNS
The company news service from the London Stock Exchange
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