JANUS HENDERSON FUND MANAGEMENT UK LIMITED

LOWLAND INVESTMENT COMPANY PLC

Legal Entity Identifier: 2138008RHG5363FEHV19

LOWLAND INVESTMENT COMPANY PLC

          UNAUDITED RESULTS FOR THE HALF YEAR ENDED 31 MARCH 2026

This announcement contains regulated information.

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.

INVESTMENT POLICY

Asset Allocation

The Company invests in a combination of large, medium and smaller companies listed predominantly in the UK.  We are not constrained by the weightings of any index; we limit risk by running a diversified portfolio, which is constructed on a bottom-up, stock-picking basis.  In normal circumstances up to half the portfolio is invested in FTSE 100 companies; the remainder is divided between small and medium-sized companies. The Manager may also invest a maximum of 15% in other listed trusts.

Dividend

The Company aims to pay a progressive dividend, with each quarterly dividend equal to or greater than its previous equivalent.

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 not exceed 20% of the portfolio valuation. Borrowing will be a mixture of short and long-dated debt, depending on relative attractiveness of rates.

KEY DATA FOR THE SIX MONTHS ENDED 31 MARCH

Financial highlights

 ¹ Net asset value ("NAV") per share total return (including dividends reinvested) with debt at fair value

² FTSE All-Share Index (including dividends reinvested)

³ Using mid-market closing price

⁴ Based on dividends paid and declared in respect of the previous twelve-month period

Sources: Morningstar Direct, Janus Henderson, Factset

PERFORMANCE

Total return performance to 31 March 2026

http://www.rns-pdf.londonstockexchange.com/rns/0540E_1-2026-5-12.pdf

Historical performance - year to 30 September

 ¹  NAV per share total return (including dividends reinvested) with debt at fair value (except 25 years, which is debt at par)

² Using mid-market closing price

³ Attributable to ordinary shares

⁴ NAV with debt par at value

⁵ Net revenue and net dividends paid are for the six-month period ended 31 March 2026

⁶ First interim dividend of 1.70p per ordinary share paid on 30 April 2026 and second interim dividend of 1.725p per ordinary share that will be paid on 31 July 2026

* Figures for 2016 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

Sources: Morningstar Direct, Janus Henderson and Factset

INTERIM MANAGEMENT REPORT

CHAIR'S STATEMENT

Overview

Over the six months to 31 March 2026 Lowland's absolute total return on NAV was a pleasing +7.1%, while the share price total return was +6.8%. As tends to be the case in times of significant geopolitical upheaval, investors were more cautious about smaller companies, which largely accounts for Lowland's modest underperformance when compared to its primary benchmark, the FTSE All-Share Index (+8.9%). However, continuing the trend of previous periods, this weakness in smaller companies was at least partly mitigated by takeover activity, with a further two approaches for portfolio companies in the last six months, which contributed to Lowland's outperformance of the smaller companies benchmark (see Fund Managers' Report for more detail).

Towards the end of the six months, the Iran War led to sharp falls in equity markets globally. At a portfolio level this was positive for oil companies, which are well represented in both the UK market and in Lowland, but more generally the rising price of oil has had a knock-on effect on inflation and hence interest rate expectations, with analysts now predicting that rates will rise, rather than fall, over the coming months. This in turn has impacted the more cyclical companies in the portfolio such as housebuilders. Against a volatile and uncertain backdrop your Fund Managers continue to focus on the quality, resilience and valuation of the portfolio companies.

Dividends

Lowland earnings per share during the period were 2.64p, compared to 2.06p the previous year - while Lowland's earnings are growing, the magnitude of the increase is due mainly to the timing of dividend payments. A second interim dividend of 1.725p per share has been declared, an increase of 4.5% on last year's payment of 1.65p per share. We expect to maintain our quarterly progressive dividend policy, so that the last two dividends in respect of the current year should be at least at this rate. On a 12-month historic run rate, this gives a dividend of 6.775p per share, representing a 4.3% dividend yield for shareholders.

As in previous years, the earnings generated within the portfolio tend to be quite heavily weighted to the second half, so we will need to wait until the year end to see the final outcome of the earnings increase.

Gearing

Gearing rose during the period, reaching 13.5% as at the end of March compared to 11.5% at the last financial year end. Gearing has been beneficial for the Company's returns over the long run, and was modestly beneficial in the first half (as shown in the waterfall graph in the Fund Managers' report). The Board believes that the ability to use gearing is an important distinguishing factor for investment companies such as Lowland.

Share price and discount

No shares were bought back or issued during the period. The relatively modest move in the discount from the start (-10.7%) to the end (-10.2%) of the period masks a wider range over the six months, with the discount varying from just over 5% to just under 11% at its widest.

Outlook

The war in the Middle East, with the rise in the oil price and consequent rise in inflation, has added a further layer of uncertainty to an already subdued domestic economic backdrop. It is times such as these that remind us of the importance of investing in a diverse group of companies, with strong management teams, across a range of different sectors. In addition, a margin of defensiveness is provided by extremely low starting valuations.

Since the end of the half year, in the period to 11 May 2026, the NAV has increased by 6.3% and the share price by 7.4%, largely following the newsflow around the progress of the war. This compares favourably to a 2.1% rise in the FTSE All-Share Index.

Helena Vinnicombe

Chair

12 May 2026

EQUITY ALLOCATION

 ¹FTSE All-Share Index

Source: Factset, Janus Henderson

FUND MANAGERS' REPORT

Performance review

The six months ended 31 March 2026 was a good absolute performance period for Lowland, with a net asset value total return of 7.1%. However, in a UK market where outperformance was predominantly driven by a small number of the largest companies, Lowland underperformed its FTSE All-Share benchmark, which returned 8.9%. The Deutsche Numis Smaller Companies Plus AIM (excluding investment companies) Index fell 5.1% over the same period, demonstrating the degree to which smaller companies underperformed.

The chart below illustrates that, whilst stock selection was positive, holding more than the benchmark in smaller companies more than offset this.

http://www.rns-pdf.londonstockexchange.com/rns/0540E_2-2026-5-12.pdf

Ten largest absolute contributors to performance during the six months to 31 March 2026:

Source: Bloomberg, Janus Henderson

It is notable that seven of the top ten best performers are FTSE 100 companies, with the exceptions being North Sea oil & gas producer Serica Energy (which is a beneficiary of the recent rise in energy prices), aerospace components supplier Senior (which has a recommended takeover offer from Blackstone), and Irish insurer FBD (which continued to steadily grow premiums written in its core Irish market, while paying an attractive dividend yield).

Ten largest absolute detractors from performance during the six months to 31 March 2026:

Source: Bloomberg, Janus Henderson

In a backdrop where UK economic growth stalled in the second half of 2025, much of what ties the weakest performers together was subdued domestic economic activity, particularly ahead of the November Budget (which fell at an unfortunate time for retailers such as Dunelm and Card Factory in the run up to peak Christmas trading). Elsewhere, some share prices were impacted by the debate around artificial intelligence ('AI') and whether it could mean higher levels of competition or margin pressure in certain industries. Lowland holds little in the industries that are currently seen as most likely to be negatively impacted (for example, software or data services). It was not, however, entirely immune - Eleco, which is a software provider for the construction industry, saw its shares de-rate, as did professional services firm FRP Advisory. These businesses are yet to see any impact on trading as a result of AI, and both are highly specialist in what they are producing which will, we expect, provide a degree of insulation.

Activity

Purchases have been made across a diverse range of companies. It is this variety of businesses held that protects the portfolio in uncertain times. Smaller companies generally have seen greater share price weakness than large companies. Poor sentiment is driven by concerns over the economy, but this has created the chance to buy quality small companies at low valuations. Examples of this are Alumasc, a building supply company and Cohort, which provides the defence industry with electronic and surveillance technology solutions. Although larger companies generally held up better, there is a large disparity in their performance. The advances in AI are expected to disrupt many business models. This has caused share price weakness in some large companies. The problems can be exaggerated as the adoption of AI has the potential to reduce costs and improve productivity for many. An example is RELX, where the share price has fallen on concerns over what AI will do to their business. This has created an opportunity for us to buy a holding in this high-quality company at a relatively low valuation as we believe it will not be disrupted to the extent some are predicting.

Shares have also been bought in commercial property companies with high-quality portfolios. These include Segro and Hammerson as the share price discounts to their asset value appear too high. Meanwhile, the disposals in the portfolio have mainly resulted from takeovers, which have included Renold and Schroders. The cash from them has also allowed us to refresh the portfolio with some new names such as Young & Co's Brewery, the pub operator and brewer, and Mears, the maintenance service provider.

The acquired companies operate across a wide range of sectors. They do, however, have one feature in common which is they have very able management teams who we expect will deal with the challenges they face from the global and domestic economy.

Outlook

This is not the time to make conviction calls about what will happen in the global economy. It is rather to recognise how little as investors we know about what the future holds. It is from this position that we can focus on how to run the portfolio. We need companies with management teams that will adapt to the circumstances and thus continue to provide excellence in their product offerings. The valuation of the businesses need to be undemanding as, however talented management is, there will be times when it is difficult to drive a company forward. When a starting valuation is low there is less scope for investors' disappointment with the results. The portfolio diversity and strength of management teams means we believe the Company is well positioned for further capital and income growth.

James Henderson and Laura Foll

Fund Managers

12 May 2026

RELATED PARTY TRANSACTIONS

The Company's related parties are its Directors and Janus Henderson. There have been no material transactions between the Company and its Directors during the period and the only amounts paid to them were in respect of Directors' remuneration and expenses incurred on the Company's business, for which there were no outstanding amounts payable at the period end.

In relation to the provision of services by Janus Henderson, other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with Janus Henderson affecting the financial position of the Company during the year under review.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into various areas:

- Market, geopolitical, macroeconomic or environmental;

- Investment activity and strategy;

- Portfolio and market price;

- Dividend income;

- Financial;

- Gearing;

- Tax and regulatory; and

- Operational.

Information on these risks and how they are managed is given in the Annual Report for the year ended 30 September 2025. The Board has completed a thorough review of the principal risks and uncertainties facing the Company.  As a result of this review, the Board considers that the principal risks and uncertainties remain largely unchanged and that they are as applicable to the remaining six months of the financial year as they were to the six months under review.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that, to the best of their knowledge:

On behalf of the Board

Helena Vinnicombe

Chair

12 May 2026

INVESTMENT PORTFOLIO

As at 31 March 2026

¹ AIM stocks

² Unlisted investments

Source: Janus Henderson

CONDENSED INCOME STATEMENT

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue return and capital return columns are supplementary to this and are published under guidance from the Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The accompanying notes are an integral part of the condensed financial statements.

CONDENSED STATEMENT OF CHANGES IN EQUITY

The accompanying notes form an integral part of these condensed financial statements.

CONDENSED STATEMENT OF FINANCIAL POSITION

The accompanying notes form an integral part of these condensed financial statements.

CONDENSED STATEMENT OF CASH FLOWS

The accompanying notes are an integral part of these condensed financial statements.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For further information, please contact:

James Henderson and Laura Foll

Fund Managers

Lowland Investment Company plc

Tel: 020 7818 4370/6364

Dan Howe

Head of Investment Trusts

Janus Henderson Investors

Tel: 020 7818 1818

Harriet Hall

PR Director, Investment Trusts

Janus Henderson Investors

Tel: 020 7818 2919

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) are incorporated into, or form part of, this announcement.