Investment Co. Regulatory News (INV)

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.

Consolidated Statement of Comprehensive Income

For twelve months ended 31 March 2013

Consolidated Statement of Changes in Equity

For twelve months ended 31 March 2013

Consolidated Balance Sheet

At 31 March 2013

Company Number: 4205

Consolidated Cash Flow Statement

For the twelve months ended 31 March 2013

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

5 Return per ordinary share

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

8 Movement in Net Asset Value

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.