Lowland Investment Company plc
Update for the Half-Year Ended 31 March 2023
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This update contains material extracted from the unaudited half-year results of the Company for the six months ended 31 March 2023. The unabridged results for the half-year are available on the Company's website: www.lowlandinvestment.com
Investment 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 by investing in a broad spread of predominantly UK companies. The Company measures its performance against the FTSE All-Share Index Total Return.
Investment Policy
Asset Allocation
The Company will invest in a combination of large, medium and smaller companies listed in the UK. We are not constrained by the weightings of any index; we focus instead on controlling absolute risk by diversifying on the basis of underlying company characteristics such as size, industry, economic sensitivity, clients and management. In normal circumstances up to half the portfolio will be invested in FTSE 100 companies; the remainder will be divided between small and medium-sized companies. On occasions the Manager will buy shares listed overseas. The Manager may also invest a maximum of 15% in other listed trusts.
Dividend
The Company aims to provide shareholders with better-than-average dividend growth.
Gearing
The Board believes that debt in a closed-end fund is a valuable source of long-term outperformance, and therefore the Company will usually be geared. At the point of drawing down debt, gearing will never exceed 29.99% of the portfolio valuation. Borrowing will be a mixture of short and long-dated debt, depending on relative attractiveness of rates.
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Key Data for the six months ended 31 March 2023
Net Asset Value Total Return | Benchmark Total Return |
16.1% | 12.3% |
Dividend
3.05p
Financial Highlights
Half-year ended | Half-year ended | Year ended | |
31 Mar 2023 | 31 Mar 2022 | 30 Sept 2022 | |
NAV per ordinary share1 | 131.9p | 141.1p | 115.9p |
Share price2 | 124.3p | 133.0p | 104.5p |
Market capitalisation | £336m | £359m | £282m |
Dividend per share | 3.05p | 3.05p | 6.10p |
Ongoing charge | 0.7% | 0.6% | 0.6% |
Dividend yield3 | 4.9% | 4.5% | 5.8% |
Gearing | 14.1% | 13.1% | 12.5% |
Discount | 5.8% | 5.7% | 11.5% |
- NAV ('Net Asset Value') with debt at par value
- Using mid-market closing price
- Based on dividends paid and declared in respect of the previous twelve month period
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Historical Performance
Total Return Performance (including dividends reinvested and excluding transaction costs)
200 | Lowland NAV | |||||||||
Lowland Share Price | ||||||||||
FTSE All-Share | ||||||||||
150 | ||||||||||
% Growth | ||||||||||
100 | ||||||||||
50 | ||||||||||
Mar 13 | Mar 14 | Mar 15 | Mar 16 | Mar 17 | Mar 18 | Mar 19 | Mar 20 | Mar 21 | Mar 22 | Mar 23 |
Rebased to 100 at 31 March 2013
Sources: Morningstar Direct, Funddata, Renitiv Datastream and Janus Henderson
6 months | 1 year | 3 years | 5 years | 10 years | 25 years | |
% | % | % | % | % | % | |
Net asset value | 16.1 | -0.4 | 61.2 | 8.1 | 63.9 | 576.7 |
Share price1 | 21.9 | -1.5 | 63.8 | 7.7 | 60.0 | 659.9 |
Benchmark2 | 12.3 | 2.9 | 47.4 | 27.9 | 75.9 | 244.6 |
- Using mid-market closing price
- FTSE All-Share Index
Sources: Morningstar Direct, Funddata, Renitiv Datastream and Janus Henderson.
Historical Record | As at | ||||||||||
31 Mar | |||||||||||
Year to 30 Sept | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 20231 |
Net assets2 (£m) | 347 | 362 | 355 | 387 | 440 | 439 | 386 | 279 | 394 | 313 | 356 |
Per ordinary share | |||||||||||
NAV3* | 130.7p | 134.6p | 131.8p | 143.2p | 162.8p | 162.5p | 142.8p | 103.1p | 145.9p | 115.9p | 131.9p |
Share price* | 132.5p | 135.5p | 128.7p | 133.7p | 150.4p | 151.5p | 128.0p | 91.4p | 131.5p | 104.5p | 124.3p |
Net revenue* | 3.67p | 3.94p | 4.64p | 4.77p | 4.91p | 5.86p | 6.80p | 3.38p | 4.27p | 6.10p | 2.13p |
Net dividends paid* | 3.40p | 3.70p | 4.10p | 4.50p | 4.90p | 5.40p | 5.95p | 6.00p | 6.025p | 6.10p | 3.05p4 |
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Net revenue and net dividends paid are for the six month period ended 31 March 2023
2 Attributable to ordinary shares
3 NAV with debt at par value
4 First interim dividend of 1.525p per ordinary share paid on 28 April 2023 and second interim dividend of 1.525p per ordinary share that will be paid on 31 July 2023
* Figures for 2013 to 2021 have been restated due to the sub-division of each ordinary share of 25p into ten ordinary shares of 2.5p each on 7 February 2022
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Lowland Investment Company plc published this content on 31 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2023 09:31:42 UTC.