Lowland Investment : Half Year Update 2023

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%

1. NAV ('Net Asset Value') with debt at par value
2. Using mid-market closing price
3. 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

1. Using mid-market closing price
2. 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

• 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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