The Investment Company plc
Half Year Report Announcement (Unaudited) for the six months ended 31 December 2020
Summary of Results
|
|
At 31 December 2020 (unaudited) |
At 30 June 2020 (audited) |
Change % |
|
Equity shareholders' funds (£) |
15,386,197 |
15,037,057 |
2.32 |
|
Number of ordinary shares in issue |
4,772,049 |
4,772,049 |
– |
|
Net asset value per ordinary share |
322.42p |
315.11p |
2.32 |
|
Ordinary share price (mid) |
295.00p |
276.00p |
6.88 |
|
Discount to NAV |
8.50% |
12.41% |
3.91 |
|
|
|
|
|
|
|
6 months to 31 December 2020 (unaudited) |
12 months to 30 June 2020 (audited) |
|
|
Total return per ordinary share * |
9.31p |
(20.92)p |
|
|
Dividends paid per ordinary share |
2.00p |
12.25 p |
|
|
|
|
|
|
* The total return per ordinary share is based on total income after taxation as detailed in the Condensed consolidated income statement and in note 3.
Investment Objective
At the Annual General Meeting on 4 November 2020, shareholders voted to amend the Company's Investment Objective and Policy to that shown below.
The Company's investment objective is to protect the purchasing power of its capital in real terms, and to participate in enduring economic activities which lend themselves to genuine capital accumulation and wealth creation.
Investment Policy
The Company will seek to acquire and hold, with no predetermined investment time horizon, a collection of assets which, in the Directors' judgement, are well-suited to the avoidance of a permanent loss of capital. These assets will be comprised of minority participations in the equity, debt or convertible securities of quoted businesses which the Directors believe are led by responsible and like-minded managers and suitable for the long-term compounding of earnings. In addition, to protect its capital as well as to maintain liquidity for future investments, the Company will keep reserves in (a) liquid debt instruments such as cash in banks or securities issued by governments and/or (b) liquid, non-debt, tangible assets such as gold bullion, whether held indirectly or in physical form.
The Company has no predetermined maximum or minimum levels of exposure to asset classes, currencies or geographies, and has the ability to invest globally. These exposures will be monitored by the Board in order to ensure an adequate spreading of risks. No holding in an individual company or debt instrument will represent more than 15 per cent. by value of the Company's total assets at the time of acquisition (such restriction does not, however, apply to gold bullion or cash balances). The Company's holdings of gold bullion may be as high as 35 per cent. of total assets at the time of investment.
Given the Company's investment objective, asset mix and time horizon, the portfolio will not seek to track any benchmark or index. The Company will not invest more than 10 per cent. of its total assets in other listed closed-ended investment funds. The Company will not use derivative instruments for speculative purposes, nor will it use currency hedges to manage returns in any currency.
The Company's gearing will not exceed 20 per cent. of net assets at the time of drawdown.
No material change will be made to the investment policy without the approval of shareholders by ordinary resolution.