Correction : Final Results

The issuer wishes to advise that the Annual Financial Results announcement released at 1423 today contained an incorrect record date in respect of the final dividend. This should have read 17 June 2011. The Edinburgh Investment Trust plc Annual Financial Report Announcement for the Year Ended 31 March 2011 FINANCIAL INFORMATION AND PERFORMANCE STATISTICS (1) Source: Thomson Reuters Datastream At At 31 MARCH 31 MARCH % 2011 2010 change Capital Return Net asset value (`NAV') per share:   - debt at par 456.66p 422.41p +8.1   - debt at market value 434.02p 398.92p +8.8 FTSE All-Share Index(1) 3067.73 2910.19 +5.4 Share price(1) 444.00p 396.30p +12.0 (Premium)/discount:   - debt at par 2.8% 6.2%   - debt at market value (2.3%) 0.7% Gearing:  - actual gearing 22.4% 24.1%  - potential gearing 22.4% 24.2% % FOR THE YEAR TO 31 MARCH 2011 2010 change Revenue Return Revenue return per share:   - excluding VAT recovered on management fees and interest 20.81p 19.82p +5.0%   - VAT and interest recovered on management 2.19p - fees   - basic return 23.00p 19.82p +16.0% Retail Price Index(1) 5.3% 4.4% Dividends:   - first interim 4.75p 4.75p   - first special 0.93p -   - second interim 4.75p 4.75p   - third interim 4.75p 4.75p   - second special 1.26p -   - final proposed 6.55p 6.35p   - total dividend 22.99p 20.60p +11.6%   - total dividend excluding special dividends 20.80p 20.60p +1.0% arising from repayment of VAT on management fees and related interest 2011 2010 % % CHANGE CHANGE Total Return (capital growth with income reinvested) NAV per share:   - debt at par +12.3 +38.0   - debt at market value +13.3 +46.0 FTSE All-Share Index(1) +8.7 +52.3 Share price(1) +16.5 +45.7 Total Expense Ratio 0.7% 0.7% CHAIRMAN'S STATEMENT Introduction When Neil Woodford took responsibility for the Company's portfolio in September 2008 he and his colleagues had concern that global economic recovery would not be as straightforward and consistent as market consensus was at that time implying. These considerations led to the construction of a defensive portfolio which was designed to be resilient in the face of a turbulent economic environment yet to have the potential for substantial long term growth by offering fundamental value. This investment approach has remained unchanged. The UK Equity Market As described in the Manager's Report the UK Equity market made little progress during most of the year to 31 March 2011 as the generally positive attitude held by investors at the start of the year was dented by fiscal and economic pressures on sovereign states and by more specific difficulties in parts of the corporate sector. The end of the period was however marked by a short period of positive sentiment and the FTSE All-Share Index (`the Index'), the Company's capital benchmark, rose over the year as a whole by 5.4%. Company Performance Investment Returns: The defensive nature of the Company's portfolio has been helpful in the uncertain environment and the Net Asset Value (`NAV') has increased by 8.8% with debt at market value - the increase with debt at par value was 8.1%. This result benefited to the extent of 1.8% from the early payment of a dividend in 2010 and from VAT repayments in 2011, but is felt by the Board to have exceeded the 5.4% growth of the benchmark Index by a satisfactory margin. Dividend income from the Company's portfolio increased by 6.5%, and the NAV Total Return (which is a measure of both income and capital growth) increased, with debt at market value, by 13.3% - substantially ahead of the Index equivalent, 8.7%. Shareholders' Returns: The Company continues to meet demand from investors and its share price rose by 12.0 % - more than twice the rate of growth in the Index - in the year to 31 March 2011. Shareholders' Total Return (dividends and share price increase) was 16.5% - the Index comparison was 8.7%. VAT Shareholders will recall my reporting at the interim stage that the Company had received repayment of VAT from HMRC in respect of the period 1990-96, together with an additional amount due for a subsequent period. The Board determined at that time that all receipts of this nature by the Company's Revenue Account should be given immediately to shareholders and a special dividend of 0.93 pence per share was paid in November, this was in addition to the first interim dividend normally paid at this time. My interim report also anticipated further payment from HMRC in respect of the interest due on the repayments which had been made. I am pleased to say that this interest payment, £2.46m. which accrues to the Company's Revenue account, was received shortly before the year end, and was paid to shareholders as a second special dividend of 1.26 pence per share on 20 May 2011. There remains some possibility that on-going litigation and other claims could lead to further repayments of VAT at some future date. Given the uncertainty surrounding this matter, the Company has taken no account of any possible outcome. Company Dividend The Board is recommending a final dividend of 6.55 pence per share which if approved at the Annual General Meeting will be paid on 29July 2011 to shareholders on the Company's register on 17 June 2011. If this payment is approved the total dividend payable in respect of the year to 31 March 2011 will be 22.99 pence per share, of which 2.19 pence per share represent the repayments of VAT and related interest. Payments excluding the special dividends total 20.8 pence per share, 1% higher than the total dividend paid in respect of the previous year. Although this year's increase in the core dividend is below the 5.3% increase in the Retail Price Index in the comparable period the Company continues, on the basis of its five-year performance, to meet its long term objective of providing income growth which exceeds the rate of inflation. Including the special dividends, total payments in respect of this year will be 11.6% higher than in the previous one. Investment Policy - Overseas Securities Prior to 2009 the Company's policy was to restrict investment to companies quoted on a recognised stock exchange within the UK. At the Annual General Meeting in that year shareholders approved a change to permit investment of up to 15% of the value of the investment portfolio, measured at the time of acquisition, in securities listed on overseas exchanges. A number of such investments have been made in the subsequent two years, they have performed well, and the manager has no flexibility to add to these holdings or to purchase others which he believes to be attractive. The Board believes it is in the Company's interest to increase the overseas limit from 15% to 20% and will propose an appropriate resolution, which shareholders are recommended to endorse, at the Annual General Meeting. The Board I am pleased to be able to inform you that Gordon McQueen has today been appointed to the Board. Mr McQueen spent the bulk of his career with the Bank of Scotland where he was latterly Finance Director, retiring in 2003 as an Executive Director of HBOS plc. He currently serves as a director of a number of companies in the investment trust and property sectors, and will become Chairman of the Audit Committee after the Annual General Meeting when Jim Pettigrew will, as already announced, succeed me as Company Chairman. Outlook The Board and Manager continue to believe that equity markets generally have been too ready to forget the difficulties of the past few years, and to assume smooth progress to a world of future stability and growth. Recent disappointing projections for the domestic economy, and the remaining instability in a number of --- Euro economies suggest that such progress cannot be taken for granted, and give us no compelling grounds to change our defensive posture. The Company's investment portfolio is not, by historic standards, highly rated. Although concentrated in a small number of sector and hence not without risk, our underlying investments are achieving relative growth in earnings and dividends, and give us confidence that they will continue to demonstrate resilience in a weak environment, with every prospect of continuing strength when conditions improve. Having worked with The Edinburgh Investment Trust since the early 1970s, initially as a supplier of professional services, it has been for me a privilege to serve as a Director then Chairman of the Company. I am very confident that the Company under Jim Pettigrew's leadership, and with the able management of Neil Woodford and his team, will further enhance its strong position as an effective vehicle for the accumulation and retention of individual wealth. Scott Dobbie Chairman 31 May 2011INVESTMENT MANAGER'S REPORT Market Review After the very strong rise seen in the previous 12 months, the UK stock market marked time for much of the year to 31 March 2011. The first half of the period saw the positive impact of mostly upbeat corporate earnings largely ignored by investors, who focused instead on signs of slowing economic growth domestically and fretted over sovereign debt worries in the peripheral eurozone. This was further compounded as the full implications of the BP oil spillage in the Gulf of Mexico began to unfold. However, as 2010 drew to a close the market made straight forward progress, spurred on by improving economic data and further monetary and fiscal stimulus in the US. 2011 then started more quietly for UK equities, with occasional bouts of optimism negated by events on the international stage, including concerns over political unrest in the Middle East, a spiralling oil price and the impact of the earthquake in Japan. Inflation remained high over the period and well above the 2% target the Bank of England has been set by the government. This raised concerns that interest rates might be increased sooner rather than later; these were assuaged by the minutes from the Bank of England's March meeting which showed no new support for an increase despite the Bank warning that inflation was likely to remain above its target for the remainder of the year. Portfolio Strategy and Review The Company's net asset value, including reinvested dividends, rose by 12.3% during the period, compared to a rise of 8.7% (total return) for the FTSE All-Share index. The portfolio has significant exposure to the pharmaceuticals and telecommunications sectors; two sectors which are both perceived as defensive, but which provided a very different impact on the Company's performance over the year. The most significant positive contribution over the year came from the holding in BT Group, with the company confirming both its ability to produce double digit growth in earnings and an improving free cash flow outlook. Another telecoms holding, Vodafone, also provided a positive impact; the price agreed by AT&T for T Mobile, which it purchased from Deutsche Telekom, highlighted the undervaluation of the mobile telecoms sector. Investments in the pharmaceuticals sector, on the other hand, impacted negatively on performance, despite some improving news on patent disputes, drug disputes and litigation in the USA. The Manager believes the market to be focusing only on the challenges facing the sector, which are well known and well rehearsed, and not on the opportunities the sector offers. These come in both the emerging world, where there is major under provision of drugs, and in the developed world, where ageing demographics are driving increased demand for drugs. The Manager also regards the sector as outstanding value based solely on the patent lives of the drugs the companies already have on the market, with current share prices discounting no expectation of further innovation or new drugs being approved. The Manager further increased the portfolio's exposure to the pharmaceutical sector, adding to holdings in GlaxoSmithKline and AstraZeneca. This reflects the degree of conviction that he has about the undervaluation of this sector. The Company's portfolio benefited from a strong performance from oil and gas business, BG Group; good full year results were accompanied by news of further oil field discoveries while the company is a likely beneficiary of an increasingly positive outlook for gas demand. The tobacco sector also continued to generate positive returns for the Company, with the holdings in both Reynolds American and British American Tobacco particularly benefiting performance. The Manager continued to build the portfolio's position in supermarket group Wm. Morrison, believing that the company can generate strong and stable earnings growth even against a tough economic backdrop. This was confirmed during the final quarter of the period, when the company beat stock market expectations with its full year results and further pleased the market with the announcement of a £1bn share buy back and a commitment to double digit growth in its dividend over the next three years. A new investment was made in business services company Rentokil Initial, where the Manager sees a significant restructuring opportunity The Company reduced its exposure to the utilities sector over the 12 months, disposing of holdings in National Grid, Severn Trent, United Utilities and Northumbrian Water. The Manager is concerned that a more onerous UK regulatory outlook will hamper these companies' ability to generate adequate returns on equity, while also seeing more attractive investment opportunities elsewhere. Outlook The Manager expects recent concerns about the underlying strength of the UK economy to remain a feature throughout 2011, and continues to expect anaemic growth through late 2011 and beyond. The full extent of public spending cuts have yet to be felt; the squeeze on household incomes will continue; and although many companies are taking advantage of the strength of overseas markets, it is doubtful this can fully compensate for weaknesses in other areas of the economy. But while these economic headwinds have been increasing in strength, those companies which the Manager believes are best placed to handle such turbulence are the very ones whose share prices have been left behind in the stock market rally of the past two years. The market has been geared into expecting an economic recovery and has been bidding up the share prices of companies that are focused on such an economic recovery, and to a large extent has been ignoring companies that fall outside of that sphere. There are always valuation anomalies in the stock market and the Manager's job is to try and exploit those, by exposing portfolios to undervalued stocks. The extent to which fundamental value diverges from the stock price flexes over time; he does not always see the same scale of valuation opportunity in the stock market. During the technology bubble the disparity between price and fundamental value was stretched astronomically in both directions, and the Manager sees an opportunity of that scale again now in the stock market - a "once in a decade opportunity". This has presented the Manager an opportunity to invest in high quality businesses at what he believes are very attractive levels, leaving the Company well positioned to achieve its investment goals over the medium to long-term. Neil Woodford Investment Manager 31 May 2011 INVESTMENTS IN ORDER OF VALUATION AT 31 MARCH 2011 UK listed and ordinary shares unless stated otherwise AIM Alternative Investment Market MARKET VALUE % OF investment sector £'000 PORTFOLIO GlaxoSmithKline Pharmaceuticals & 100,291 9.2 Biotechnology AstraZeneca Pharmaceuticals & 100,012 9.2 Biotechnology British American Tobacco 76,577 7.1 Tobacco BT Fixed Line 65,814 6.0 Telecommunications Vodafone Mobile Telecommunications 65,352 6.0 BG Oil & Gas Producers 64,005 5.9 Reynolds American - US Tobacco 63,919 5.9 common stock Imperial Tobacco Tobacco 51,222 4.7 Altria - US common Tobacco 39,284 3.6 stock Tesco Food & Drug Retailers 38,575 3.6 Ten Top Holdings 665,051 61.2 Roche - Swiss common Pharmaceuticals & 37,608 3.5 stock Biotechnology Reckitt Benckiser Household Goods 36,035 3.3 BAE Systems Aerospace & Defence 35,567 3.3 Capita Support Services 32,296 3.0 Rolls Royce Aerospace & Defence 27,308 2.5 Centrica Gas & Water 27,216 2.5 Multiutilities Scottish & Southern Electricity 25,059 2.3 Energy Novartis - Swiss common Pharmaceuticals & 21,183 1.9 stock Biotechnology Morrison (W) Food & Drug Retailers 20,604 1.9 Supermarkets Tate & Lyle Food Producers 18,445 1.7 Twenty Top Holdings 946,372 87.1 Drax Electricity 16,447 1.5 International Power Electricity 14,394 1.3 Provident Financial General Financial 13,401 1.2 Amlin Non-life Insurance 12,642 1.2 Raven RussiaAIM - Real Estate 5,548 preference - ordinary 4,229 - warrants 1,272 11,049 1.0 Pennon Gas & Water 11,022 1.0 Multiutilities Hiscox Non-life Insurance 10,495 1.0 Homeserve Support Services 8,813 0.8 Catlin Non-life Insurance 7,881 0.7 BTG Pharmaceuticals & 7,400 0.7 Biotechnology Thirty Top Holdings 1,059,916 97.5 Rentokil Initial Support Services 6,384 0.6 Barclays Bank - Nuclear Power Notes   28 February 2019(1) Electricity 5,134 0.5 Burford CapitalAIM Equity Investment 4,848 0.4 Instruments Paypoint Support Services 3,702 0.4 Stobart Industrial Transportation 3,610 0.3 ProximagenAIM Pharmaceuticals & 2,556 0.2 Biotechnology Yell Media 1,514 0.1 Helphire Financial Services 352 - EurovestechAIM Financial Services 336 - ENI Lasmo Oil & Gas Producers 126 - Total (40) Holdings 1,088,478 100.0 (1) Contingent Value Rights (`CVRs') referred to as Nuclear Power Notes (`NPNs') were offered by EDF as a partial alternative to its cash bid for British Energy (`BE'). The NPNs were issued by Barclays Bank. The CVRs participate in BE's existing business. Related Party Transactions Invesco Asset Management Limited (`IAML'), a wholly owned subsidiary of Invesco Limited, is Manager, Company Secretary and Administrator to the Company. Details of management fees payable to IAML, together with details of Directors' interests, are disclosed in the Report of the Directors. There are no other related party transactions. Principal Risks and Uncertainties The Company's key long-term investment objectives are an increase in the capital net asset value per share by more than the growth in the FTSE All-Share Index (the `benchmark' or `index') and growth in dividends by more than inflation, currently measured using the RPI. The principal risks and uncertainties of the Company are an integral consideration when assessing the operations in place to monitor these objectives, including the performance of the portfolio, share price and dividends. The Board is ultimately responsible for the risk control systems but the day to day operation and monitoring is delegated to the Manager. Market Risk The uncertainty over future equity market price movements is an inherent part of the rationale for the Company's existence. The Company's assets principally consist of quoted securities. The prices of these securities and the income derived from them are influenced by many factors such as general economic conditions, interest rates, inflation, political events, and government policies as well as by supply and demand reflecting investor sentiment. Such factors are outside the control of the Board and Manager and may give rise to high levels of volatility in the prices of investments held by the Company. The asset value and price of the Company's shares and its earnings and dividends may consequently also experience volatility and may decline. Investment Performance Risk The Board sets performance objectives and it delegates the investment management process to the Manager. The achievement of the Company's performance objectives relative to the market requires active management of the portfolio of assets and securities. The Manager's approach is to construct a portfolio which is compatible with the Manager's view of future trends in the UK and global economies. The Manager is a long term investor, prepared to take substantial positions in securities and sectors which may well be out of fashion, but which the Manager believes will have potential for material increases in earnings and, in due course, dividends and share prices. Strategy, asset allocation and stock selection decisions by the Manager can lead to underperformance of the benchmark index and/or income targets. The Manager's style may result in a concentrated portfolio with significant overweight or underweight positions in individual stocks or sectors compared to the index and consequently the Company's performance may deviate significantly, possibly for extended periods, from that of the benchmark index. However the Board and Manager believe that the investment process and policy outlined above should, over the long term, meet the Company's objectives of capital growth in excess of the benchmark index and real dividend growth. Investment selection is delegated to the Manager. The Manager manages the portfolio and the Board does not specify asset allocations. Information on the Company's performance against the benchmark and peer group is provided to the Board on a quarterly basis. The Board uses this to review the performance of the Company, taking into account how performance relates to the Company's objectives. The Manager is responsible for monitoring the portfolio selected and seeks to ensure that individual stocks meet an acceptable risk-reward profile. Gearing Risk The Company has the ability to invest up to £200 million from its Debenture Stocks in the equity market. The principal gearing risk is that the level of gearing may have an adverse impact on performance. Secondary risks relate to whether the cost of gearing is too high and whether the length of gearing is appropriate. The Manager has full discretion over the amount of cash from the Company's Debenture Stocks to be invested in the equity market whilst the issuance, repurchase or restructuring of debt are for the Board to decide. Information related to gearing is provided to the Directors as part of the Board papers. The Board regularly reviews the level of gearing. Additionally, the Board keeps under review the cost of buying back debt. Income/Dividend Risk The Company is subject to the risk that income generation from its investments fails to reach the level of income required to meet its objectives. The Board monitors this risk through the review of detailed income forecasts and comparison against budget. These are contained within the Board papers. The Board considers the level of income at each meeting. Share Price Risk There is a risk that the Company's prospects and NAV may not be fully reflected in the share price from time to time. The share price is monitored on a daily basis. The Board is empowered to repurchase shares within agreed parameters. The discount at which the shares trade to NAV can be influenced by share repurchases. The Company has not repurchased shares in the last year. Control Systems Risk The Board delegates a number of specific risk control activities to the Manager including: • best practice standards in fund management operations; • financial controls; • meeting regulatory requirements; • the management of the relationship with the Custodian in respect of the custody and security of the Company's assets; and • the management of the relationship with the Registrar. Consequently in respect of these activities the Company is dependent on the Manager's control systems and those of its Custodian and Registrars, both of which are monitored by the Manager in the context of safeguarding the Company's assets and interests. There is a risk that the Manager fails to ensure that these controls are performed in a satisfactory manner. A risk-based programme of internal audits is carried out by the Manager regularly to test the controls environment. An internal controls report providing an assessment of these risks is prepared by the Manager and considered by the Audit Committee, and is formally reported to and considered by the Board. Reliance on Third Party Providers The Company's most significant contract is with the Manager, to whom responsibility both for the management of the Company's portfolio and for the provision of company secretarial and administrative services are delegated. The Company also has contractual arrangements with third parties to act as Custodian and Registrars. Failure by any service provider to carry out its obligations in accordance with the terms of its appointment could have a materially detrimental impact on the effective operation of the Company and on the ability of the Company to pursue its investment policy successfully. Such failure could also expose the Company to reputational risk. In particular, the Manager may be exposed to the risk that litigation, misconduct, operational failures, negative publicity and press speculation, whether valid or not, will harm its reputation. Any damage to the reputation of the Manager could result in potential counterparties and third parties being unwilling to deal with the Manager and by extension the Company. That could also have an adverse impact on the ability of the Company to pursue its investment policy successfully. The Board seeks to manage these risks in a number of ways. In particular the Board reviews the performance of the Manager formally at every board meeting and otherwise as appropriate. The day to-day management of the portfolio is the responsibility of the portfolio manager to whom the Board has given discretion to operate within set guidelines. Any proposed variation outside those guidelines is referred to the Board and the guidelines themselves are reviewed at every board meeting. The risk that the portfolio manager might be incapacitated or otherwise unavailable is mitigated by the fact that he works within and is supported by the wider Invesco Perpetual UK Equity team. The Board has power to replace the Manager and reviews the management contracts formally once a year. The Manager reviews the performance of all other third party providers regularly through formal and informal meetings, the results of which are reported to and reviewed by the Board. The contractual arrangements which govern relationships with third party providers, including the Registrars and the Custodian, and with the Corporate Broker are also reviewed by the Board in relation to agreed service standards on a regular basis and, more formally, on an annual basis. Other Risks The Company may be exposed to other business and strategic risks in the future, including fiscal, legal or regulatory changes, and the perceived impact of the designated Investment Manager ceasing to be involved with the Company. The instruments in which the Company's cash positions are invested are reviewed by the Board to ensure liquidity and concentration risks are adequately managed. Where an Invesco Group vehicle is utilised, it is assessed for suitability against other similar investment options. The Company is subject to laws and regulations by virtue of its status as an investment trust and is required to comply with certain regulatory requirements that are applicable to listed closed-ended investment companies. The Company is subject to the continuing obligations imposed by the UK Listing Authority on all companies whose shares are listed on the Official List. A breach of s1158-1165 CTA could lead to the Company being subject to capital gains tax on the sale of the investments in the Company's portfolio. A serious breach of other regulatory rules may lead to suspension from listing on the Stock Exchange or a qualified Audit Report. The Manager reviews compliance with s1158-1165 CTA and other financial and regulatory requirements on a daily basis. There is an ongoing process for the Board to consider these other risks. In addition, the composition of the Board is regularly reviewed to ensure the membership offers sufficient knowledge and experience to assess and anticipate these risks, as far as possible. DIRECTORS' RESPONSIBILITY STATEMENT in respect of the preparation of the annual financial report The Directors are responsible for preparing the annual financial report in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under the law the Directors have elected to prepare financial statements in accordance with applicable law and UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Under company law, the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, a Directors' Remuneration Report and a Corporate Governance Statement that comply with that law and those regulations. In so far as each of the Directors is aware: • there is no relevant audit information of which the Company's auditors are unaware; and • the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The Directors of the Company each confirm to the best of their knowledge, that: • the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and • this annual financial report includes a fair review 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. Scott Dobbie Chairman Signed on behalf of the Board of Directors 31 May 2011 INCOME STATEMENT for the year ended 31 MARCH 2011 2010 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 70,285 70,285 - 212,356 212,356 Foreign exchange - (131) (131) - (187) (187) losses Income - note 2 52,460 - 52,460 46,958 - 46,958 Investment (1,464) (3,417) (4,881) (1,224) (2,855) (4,079) management fee - note 3 VAT recovered on 1,809 1,367 3,176 289 674 963 management fees - note 3 Other expenses (775) (1) (776) (697) (6) (703) Net return before 52,030 68,103 120,133 45,326 209,982 255,308 finance costs and taxation Finance costs (5,851) (13,655) (19,506) (5,850) (13,652) (19,502) Return on ordinary 46,179 54,448 100,627 39,476 196,330 235,806 activities before tax Tax on ordinary (1,305) - (1,305) (809) - (809) activities    Return on ordinary 44,874 54,448 99,322 38,667 196,330 234,997 activities after tax for the financial year Return per ordinary share Basic - note 4 23.0p 27.9p 50.9p 19.8p 100.6p 120.4p The total column of this statement represents the Company's profit and loss account, prepared in accordance with UK Accounting Standards. The supplementary revenue and capital columns are presented for information purposes in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies. All items in the above statement derive from continuing operations and the Company has no other gains or losses therefore no statement of recognised gains or losses is presented. No operations were acquired or discontinued in the year. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS for the year ended 31 MARCH CAPITAL SHARE SHARE REDEMPTION CAPITAL REVENUE CAPITAL PREMIUM RESERVE RESERVE RESERVE TOTAL £'000 £'000 £'000 £'000 £'000 £'000 Balance at 48,779 6,639 24,676 501,670 59,636 641,400 31 March 2009 Dividends - - - - (49,072) (49,072) paid - note 5 Net return - - - 196,330 38,667 234,997 on ordinary activities Balance at 48,779 6,639 24,676 698,000 49,231 827,325 31 March 2010 Dividends - - - - (32,741) (32,741) paid - note 5 Net return - - - 54,448 44,874 99,322 on ordinary activities Balance at 48,779 6,639 24,676 752,448 61,364 893,906 31 March 2011 BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2011 2010 £'000 £'000 Fixed assets   Investments held at fair value through 1,088,478 1,021,857 profit or loss Current assets   Debtors 7,506 7,233   Cash and cash funds 184 231 7,690 7,464 Creditors: amounts falling due within (3,439) (3,426) one year Net current assets 4,251 4,038 Total assets less current liabilities 1,092,729 1,025,895 Creditors: amounts falling due after (197,112) (196,859) more than one year Provision (1,711) (1,711) Net assets 893,906 827,325 Capital and reserves Share capital - note 6 48,779 48,779 Share premium 6,639 6,639 Capital redemption reserve 24,676 24,676 Capital reserve 752,448 698,000 Revenue reserve 61,364 49,231 Shareholders' funds 893,906 827,325 Net asset value per ordinary share Basic - note 7 456.66p 422.41p These financial statements were approved and authorised for issue by the Board of Directors on 31 May 2011. Signed on behalf of the Board of Directors. Scott Dobbie ChairmanCASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2011 2010 £'000 £'000 Cash inflow from operating activities 47,725 37,919 Servicing of finance (19,253) (19,250) Capital expenditure and financial 4,353 30,816 investment Equity dividends paid - note 5 (32,741) (49,072) Net cash inflow before management   of liquid resources and financing 84 413 Increase in cash 84 413 Reconciliation of net cash flow to movement   in net debt Increase in cash 84 413 Exchange movements (131) (187) Debenture stock non-cash movement (253) (252) Movement in net debt in the year (300) (26) Net debt at beginning of year (196,628) (196,602) Net debt at end of year (196,928) (196,628) NOTES TO THE FINANCIAL STATEMENTS 1. Principal Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied during the year and the preceding year, unless otherwise stated. (a) Basis of preparation Accounting Standards Applied The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards and with the Statement of Recommended Practice (`SORP') `Financial Statements of Investment Trust Companies and Venture Capital Trusts', issued by the Association of Investment Companies in January 2009. The financial statements are also prepared on a going concern basis. 2. Income 2011 2010 £'000 £'000 Income from listed investments UK dividends 39,841 38,795 Scrip dividends 689 870 Overseas dividends 9,314 5,936 UK unfranked investment income - interest - 1,190 Income from money market funds 9 7 49,853 46,798 Other income Deposit interest - 1 Interest on VAT recovered on management fees (note 3) 2,459 - Underwriting commission 148 111 Sundry income - 48 Total income 52,460 46,958 3. Investment Management Fees 2011 2010 REVENUE CAPITAL TOTAL REVENUE CAPITAL TOTAL £'000 £'000 £'000 £'000 £'000 £'000 Investment 1,464 3,417 4,881 1,224 2,855 4,079 management fee Performance fee - - - - - - 1,464 3,417 4,881 1,224 2,855 4,079 Details of the investment management agreement are disclosed on page 22 in the Report of the Directors contained in the Annual Financial Report. At 31 March 2011 investment management fees of £435,000 (2010: £387,000) were accrued. No performance fee is due or accrued for the year ended 31 March 2011 (2010: none). An amount of £3,176,000 (2010: £963,000) has been recognised in these accounts in respect of VAT recovered on management fees paid to a previous manager, Aberdeen Asset Management (`Aberdeen'). The recovered VAT has been credited £ 1,809,000 (2010: £289,000) to revenue and £1,367,000 to capital (2010: £ 674,000), in the same proportion as originally charged to the income statement. Interest recovered thereon of £2,459,000 (2010: none recovered) is credited wholly to revenue. 4. Return per Ordinary Share The basic, capital and total returns per ordinary share are based on each return on ordinary shares after tax and on 195,116,734 (2010: 195,116,734) ordinary shares, being the weighted average number of shares in issue during the year. 5. Dividends 2011 2010 pence £'000 pence £'000 Dividends paid and recognised in the year: Third interim paid in respect of - - 4.75 9,268 previous year Final paid in respect of previous 6.35 12,390 6.15 12,000 year First interim paid 4.75 9,268 4.75 9,268 Special paid 0.93 1,815 - - Second interim paid 4.75 9,268 4.75 9,268 Third interim paid - - 4.75 9,268 16.78 32,741 25.15 49,072 Dividends on shares payable in respect of the year: First interim 4.75 9,268 4.75 9,268 First special 0.93 1,815 - - Second interim 4.75 9,268 4.75 9,268 Third interim 4.75 9,268 4.75 9,268 Second special 1.26 2,458 - - Proposed final 6.55 12,780 6.35 12,390 22.99 44,857 20.60 40,194 The proposed final dividend is subject to approval by Ordinary Shareholders at the AGM. 6. Share Capital 2011 2010 NUMBER £'000 NUMBER £'000 Authorised Ordinary shares of 25p each 316,099,929 79,025 316,099,929 79,025 Allotted, called-up and fully paid Ordinary shares of 25p each 195,116,734 48,779 195,116,734 48,779 7. Net Asset Value (`NAV') per Ordinary Share (a) NAV - debt at par The shareholders' funds in the balance sheet are accounted for in accordance with accounting standards, however, this does not reflect the rights of shareholders on a return of assets under the Articles of Association. These rights are reflected in the net assets with debt at par and the corresponding NAV per share. A reconciliation between the two sets of figures follows: 2011 2010 NAV SHAREHOLDERS' NAV SHAREHOLDERS' PER SHARE FUNDS PER SHARE FUNDS PENCE £'000 PENCE £'000 Shareholders' 458.14 893,906 424.02 827,325 funds Less: Unamortised discount and expenses arising from debenture issue (1.48) (2,888) (1.61) (3,141) NAV - debt at 456.66 891,018 422.41 824,184 par (b) NAV - debt at market value The market value of the debenture stocks is determined by reference to the daily closing price. This is the Bloomberg closing price, subject to review against other data providers to ensure consistency between data providers and against the reference gilts. The net asset value per share adjusted to include the debenture stocks at market value rather than at par is as follows: 2011 2010 NAV SHAREHOLDERS' NAV SHAREHOLDERS' PER FUNDS PER SHARE FUNDS SHARE PENCE £'000 PENCE £'000 NAV - debt at par 456.66 891,018 422.41 824,184 Debt at par 102.50 200,000 102.50 200,000 Debt at market value - 111⁄2% Debenture   Stock 2014 (63.59) (124,081) (64.65) (126,136) - 73⁄4% Debenture   Stock 2022 (61.55) (120,102) (61.34) (119,690) NAV - debt at 434.02 846,835 398.92 778,358 market value The number of ordinary shares in issue at the year end was 195,116,734 (2010: 195,116,734). 8. This Annual Financial Report announcement is not the Company's statutory accounts. The statutory accounts for the year ended 31 March 2010 have been delivered to the Registrar of Companies. The statutory accounts for the year ended 31 March 2010 received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006. The statutory accounts for the financial year ended 31 March 2011 have been approved and audited but have not yet been filed. 9. The Audited Annual Financial Report will be posted to shareholders shortly. Copies may be obtained during normal business hours from the Company's registered office, Quartermile One, 15 Lauriston Place, Edinburgh EH3 9EP. A copy of the Annual Financial Report will be available from Invesco Perpetual on the following website: http://investmenttrusts.invescoperpetual.co.uk/portal/site/iptrust/ investmentrange/investmenttrusts/edinburgh 10. The Annual General Meeting of the Company will be held at 11.00 am on 22 July 2011 at the Weston Link, National Galleries of Scotland, Princes Street, Edinburgh. By order of the Board Invesco Asset Management Limited - Company Secretary 31 May 2011

Companies

Edinburgh Inv Trust (EDIN)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today