Albany Investment Trust Plc

Half yearly financial report

For the period ended 31 August 2011

The unaudited results of the company for the half year ended 31^st August 2011 are attached.  The company carried on the normal business of an Investment Trust as defined by Section 833 of the Companies Act 2006 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 fell 10.4% compared to the FTSE All Share Index which fell 9.9% for the six month period to 31^st August 2011.  The results also disclose net revenue of £561,000 which represents an increase of 7.1% compared to the first half of last year.

The markets have remained turbulent over the past six months as the economic outlook continues to be uncertain. The Eurozone crisis is continuing to put pressure on economic growth prospects with many predicting a return to recession.   Against this background the NAV performance has been creditable and broadly in line with the FTSE All Share Index.  In the short term the income generated has remained steady as corporates have not significantly cut dividends to date but obviously much will depend on the likely timeframe for any positive impetus. 

We have reviewed the investment strategy with the investment manager and believe that the objective of dividend income as well as capital growth is very important to our shareholders. Therefore we will be rebalancing the portfolio over a period of time to ensure that these objectives are met.  In recognition of this we have therefore also moved our sector classification from 'Growth' to 'Income and Growth' to be more fully aligned.  Finally I would like to welcome Tom Chandos to the Board. Tom brings a wealth of experience which we believe will enhance the expertise of the Board.

The Directors announce an unchanged interim dividend of 3.90p per share for the year ended 28^th February 2012.  This will be paid to shareholders on the register on 28^th October 2011 (XD date 26^th October 2011) and dividend warrants will be posted on 26^th November 2011. 

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 2011 Annual report and accounts.

ON BEHALF OF THE BOARD

M Wolstenholme
Chairman

18^th October 2011

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

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 18^th October 2011 and was signed on its behalf by

M Wolstenholme

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 United Kingdom accounting standards (United Kingdom Generally Accepted Accounting Practice) 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 2011 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 £561,000 (2010: £524,000) and on 10,023,750 ordinary shares.

Basic capital return per ordinary share is based on the capital loss on ordinary activities after taxation of £3,429,000 (2010: capital loss £570,000) 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).   Fees of £113,925 (2010: £105,156) were payable to RIM during the period. R A Morris, a current director of Albany Investment trust is a former director of Rathbones PLC

9              Publication of non-statutory accounts

The financial information set out in this half yearly financial report does not constitute statutory accounts as defined by the Companies Act 2006.  The figures for the year ended 28 February 2011 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 the Companies Act 2006.