Chairman's statement

The unaudited results of the company for the half year ended 31 August 2009 are attached.  The company carried on the normal business of an Investment Trust as defined by Section 266 of the Companies Act 1985, and the company is approved by the Inland Revenue as an Investment Trust for the purpose of Section 842 of the Income and Corporation Taxes Act 1988.

The results show that the net asset value per share of the company rose by 17.1% compared with a rise of    30.6% in the FT Actuaries All Share Index for the six month period to 31 August 2009.  The results also disclose a return on revenue of £609,000 which represents a decrease of 15.9% compared to the first half of last year.

The directors are fully aware of the underperformance relative to the All Share benchmark over the first six months which has come about from a relatively defensively positioned portfolio in a rising market in cyclical sectors. We have been in constant discussion with our investment managers over this period and although the capital position has underperformed, the income stream is running in line with expectations. The net asset value has risen 17.1% which is positive in light of the turbulence of last year. So far in the current half the net asset value has continued to increase but we still maintain a defensive stance.  

The directors anticipate being able to declare an increase in the total dividend for the current year and accordingly have declared an interim dividend of 3.90p per share for the year ended 28 February 2010 (2009:  3.85p ).  This will be paid to shareholders on the register at the close of business on 30 October 2009 (ex dividend date  28th October 2009) and dividend warrants will be posted on 25 November 2009. 

The principal risks facing the company relate to the company's investment activities.  The major risk is market price risk.  Details of this risk and the policies adopted are unchanged from those set out in note 11 of the 2009 Annual report and accounts. 

ON BEHALF OF THE BOARD

P T Furlong
Chairman

15th October 2009

A copy of this statement is available at the company's registered office at Port of Liverpool Building, Pier Head, Liverpool, L3 1NW and via its website: www.albanyinvestmenttrust.com

Enquiries

Albany Investment Trust PLC        Tel. 0151 236 6666 

Tom Evans 

Summarised statement of total return (Incorporating the revenue account)

Balance sheet

To the best of the directors' knowledge:

the half yearly financial report which has been prepared in accordance with the applicable set of accounting standards gives a true and fair view of the assets, liabilities, financial position and profit of the company

the half yearly financial report includes a fair view of the development and performance of the business and the position of the company together with a description of the principal risks and uncertainties that it faces

The half yearly financial report was approved by the Board of directors on 15th October 2009 and was signed on its behalf by

P T Furlong,

Chairman

Summarised cash flow statement

Notes to the half yearly financial report

1    Basis of preparation

The half yearly financial information has been prepared under the historical cost convention, except for the measurement at fair value of investments. The financial information has been prepared in accordance with applicable accounting standards and with pronouncements on interim reporting issued by the Accounting Standards Board.

The principal accounting policies of the company have remained unchanged from those set out in the company's 2009 annual report and financial statements.

2    Income

3    Return per ordinary shares

Basic revenue return per ordinary share is based on the revenue return on ordinary activities after taxation of £609,000 (2008: £724,000) and on 10,023,750 ordinary shares.

Basic capital return per ordinary share is based on the capital gain on ordinary activities after taxation of £4,099,000 (2008: capital loss £2,634,000) and on 10,023,750 ordinary shares.

4    Reserves

Return on capital

5    Net asset value per share

Basis net asset value per ordinary share is based on net assets and on 10,023,750 ordinary shares.

6    Analysis of changes in net debt during the period

7    Reconciliation of net total return on ordinary activities before taxation to net cash inflow from operating activities

8    Related party transactions

The directors have delegated day-to-day investment decisions to Rathbone Investment Management Limited (RIM). R A Morris is a former director of Rathbones PLC. Fees of £97,314 (2008: £122,603) were payable to RIM during the period.

9    Publication of non-statutory accounts

The financial information set out in this half yearly financial report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The figures for the year ended 28 February 2009 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditors report on those financial statements was unqualified and did not contain a statement under Section 237(2) of the Companies Act 1985.

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