The Investment Company cuts its dividend

In its interim results statement, The Investment Company reported a small fall in its net asset value over the second half of 2014 of 1.6% to 388p. The company was making distributions equivalent to 6% of its asset value each year. The Board has decided that this isn’t sustainable in the current market environment and so, in respect of the year to 30 June 2015, they will pay dividends totalling 23.6p and, for the year to 30 June 2016, hey will pay a reduced total dividend of 20.72p.

Within the portfolio, the share prices of Gable Holdings, an insurance underwriter, and Esure, a motor insurance company, both fell back in the six month period. In addition, Bagir Group, a company that produces suits and
jackets, and DX Group, a distribution business, also underperformed.  In contrast, there was strong performance from Seeing Machines, as it announced several new partners for their technology, and the holding was sold at these
elevated levels. Shoe Zone also performed well, and Friends Life agreed to be acquired by Aviva at a significant premium.

INV : The Investment Company cuts its dividend

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