Final Results
Mid Wynd Inter Inv Trust PLC
08 August 2006
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
Results for the year to 30 June 2006
Over the year to 30 June 2006, the Company's net asset value outperformed the
comparative index (FTSE World Index in sterling terms) by 4.6 percentage points.
Net asset value per share rose by 16.9%, while the comparative index rose by
12.3%. Over the second half of the year, the Company outperformed its
comparative index in relative terms by 1.4 percentage points. Over this period,
the Company's net asset value and comparative index declined by 1.0% and 2.4%
respectively.
• This seventh consecutive year of outperformance benefited from favourable
asset allocation, in particular being underweight North America and
overweight Europe ex. UK and the UK. This was supplemented by good
stockpicking in North America, Emerging Markets and Asia Pacific ex Japan.
• The proceeds from reductions in North America, Emerging Markets and the
cash weighting funded increases in all other geographic regions, in
particular Continental Europe, the UK and Japan.
• An increased final dividend of 6.60p is being proposed giving 10.50p for
the year, an increase of 11.7%. Over the year, earnings per share increased
18.9% predominantly owing to the ongoing high level of dividend increases
from the portfolio's holdings. It is not expected that such high dividend
growth can be sustained.
• The Company's potential gearing of 104% in the form of dollar borrowings
remains at the same level as last year. The Company's cash weighting has
declined from 8.3% to 3.4% as at the year end.
• The Board and Managers remain optimistic that they will continue to find
high quality companies that are run for the benefit of their shareholders.
Past performance is no guarantee of future performance. The value of an
investment and any income from it is not guaranteed and may go down as well as
up and investors may not get back the amount invested. This is because the share
price is determined by the changing conditions in the relevant stock markets in
which the Company invests and by the supply and demand for the Company's shares.
Investment in investment trusts should be regarded as medium to long-term. You
can find up to date performance information about Mid Wynd on the Baillie
Gifford website at www.bailliegifford.com.
The objective of Mid Wynd International Investment Trust PLC is to achieve
capital and income growth by investing on a worldwide basis. The Trust has total
assets of £46.7m (before deduction of bank loan of £1.6m).
Mid Wynd is managed by Baillie Gifford & Co, the Edinburgh based fund management
group with around £44 billion under management and advice at 7 August 2006.
7 August 2006
- ends
For further information please contact:
Michael MacPhee, Manager
Mid Wynd International Investment Trust PLC 0131 275 2000
Mike Lord, Director
Broadgate 020 7726 6111
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
The following is the unaudited preliminary statement for the year to 30 June
2006 which was approved by the Board on 7 August 2006. The Directors of Mid
Wynd International Investment Trust PLC are recommending to the Annual General
Meeting of the Company to be held on 2 October 2006 the payment of a final
dividend of 6.60p net (5.70p net last year) per ordinary share, making a total
of 10.50p net (9.40p net last year) per ordinary share for the year ended 30
June 2006.
INCOME STATEMENT
(unaudited*)
For the year ended For the year ended
30 June 2006 30 June 2005
Revenue Capital Total Revenue Capital Total
Restated+ Restated+
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 6,459 6,459 - 5,086 5,086
Currency gains/(losses) - 79 79 - (147) (147)
Income 996 - 996 833 - 833
Investment management fee (124) (124) (248) (97) (97) (194)
Other administrative expenses (144) - (144) (131) - (131)
Net return before finance costs
and taxation 728 6,414 7,142 605 4,842 5,447
Finance costs of borrowings (26) (26) (52) (25) (25) (50)
Return on ordinary activities
before taxation 702 6,388 7,090 580 4,817 5,397
Tax on ordinary activities (138) 46 (92) (105) 37 (68)
Return on ordinary activities
after taxation 564 6,434 6,998 475 4,854 5,329
Return per ordinary share 11.21p 127.97p 139.18p 9.43p 96.54p 105.97p
* The total column of the Income Statement is the profit and loss account of the
Company.
+ Various changes in accounting policies, as described in note 1, have had the
cumulative effect of increasing
reported net assets for the year ended 30 June 2005 by £249,000.
All revenue and capital items in the above statement derive from continuing
operations.
A Statement of Total Recognised Gains and Losses is not required as all gains
and losses of the Company have been reflected in the above statement.
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
SUMMARISED BALANCE SHEET
at 30 June 2006
(unaudited)
30 June 2006 30 June 2005
Restated+
£'000 £'000 £'000 £'000
Fixed asset investments 45,103 36,886
Current Assets
Debtors 191 231
Time deposits - 950
Cash and short term deposits 2,095 2,237
2,286 3,418
Creditors
Amounts falling due within one year (note5) (2,336) (93)
Net Current (Liabilities)/Assets (50) 3,325
Creditors
Amounts falling due after more than one year (note 5) - (1,674)
Provisions for liabilities and charges
Deferred taxation (3) (2)
45,050 38,535
Capital and reserves
Called-up share capital 1,257 1,257
Capital reserves 42,801 36,367
Revenue reserve 992 911
Equity shareholders' funds 45,050 38,535
Net asset value per ordinary share 896.0p 766.4p
Ordinary shares in issue 5,027,766 5,027,766
DISTRIBUTION OF ASSETS
at 30 June 2006
(unaudited)
30 June 2006 30 June 2005
Restated+
% %
Equities: United Kingdom 17.1 15.8
Continental Europe 27.0 23.7
North America 25.7 28.9
Japan 11.6 9.0
Asia Pacific 8.2 7.2
Emerging Markets 3.9 3.4
Total Equities 93.5 88.0
Overseas bonds 3.1 3.7
Net liquid assets 3.4 8.3
Total assets (before deduction of bank loan) 100.0 100.0
+ See note 1
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
SUMMARISED CASH FLOW STATEMENT
(unaudited)
For the For the
year ended year ended
30 June 2006 30 June 2005
£'000 £'000
Net cash inflow from operating activities 525 379
Net cash outflow from servicing of finance (52) (51)
Total tax paid (10) (5)
Net cash (outflow)/inflow from financial investment (1,072) 1,581
Equity dividends paid (483) (463)
NET CASH (OUTFLOW)/INFLOW BEFORE USE OF LIQUID RESOURCES AND
FINANCING (1,092) 1,441
Net cash inflow/(outflow) from use of liquid resources 950 (950)
(DECREASE)/INCREASE IN CASH (142) 491
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
(Decrease)/increase in cash in the period (142)
Exchange movement on bank loans 52 (20)
(Decrease)/increase in short term deposits (950) 950
MOVEMENT IN NET FUNDS IN THE YEAR (1,040) 1,421
NET FUNDS AT 1 JULY 1,513 92
NET FUNDS AT 30 JUNE 473 1,513
RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO
NET CASH INFLOW FROM OPERATING ACTIVITIES
Net return on ordinary activities before finance costs
and taxation 7,142 5,447
Gains on investments (6,459) (5,086)
Currency (gains)/losses (79) 147
Amortisation of fixed interest book cost (12) -
Increase in accrued income (7) (79)
(Increase)/decrease in debtors (12) 7
Increase/(decrease) in creditors 6 (9)
Overseas tax suffered (54) (48)
NET CASH INFLOW FROM OPERATING ACTIVITIES 525 379
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(unaudited)
For the year ended 30 June 2006
Share Share Capital Capital Revenue Total
capital premium reserve - reserve - reserve shareholders'
realised unrealised funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at
1 July 2005 as
previously reported 1,257 20 27,883 8,502 624 38,286
Prior year adjustments:
Revaluation of
investments at bid
prices - - - (38) - (38)
Reversal of provision of
final dividend - - - - 287 287
Shareholders' funds at
1 July 2005 as restated 1,257 20 27,883 8,464 911 38,535
Return on ordinary
activities after
taxation - - 4,060 2,374 564 6,998
Dividends paid during
the year - - - - (483) (483)
Shareholders' funds at
30 June 2006 1,257 20 31,943 10,838 992 45,050
For the year ended 30 June 2005
Share Share Capital Capital Revenue Total
capital premium reserve - reserve - reserve shareholders'
realised unrealised funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at
1 July 2004 as previously
reported 1,257 20 27,478 4,022 622 33,399
Prior year adjustments:
Revaluation of
investments at bid prices - - - (7) - (7)
Reversal of provision of
final dividend - - - - 277 277
Shareholders' funds at
1 July 2004 as restated 1,257 20 27,478 4,015 899 33,669
Return on ordinary
activities after taxation - - 405 4,449 475 5,329
Dividends paid during the
year - - - - (463) (463)
Shareholders' funds at 30
June 2005 1,257 20 27,883 8,464 911 38,535
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
NOTES
1. A number of new UK Financial Reporting Standards have been introduced
which the Company must comply with this year. These standards are part
of the UK convergence programme with International Accounting Standards
and as such have required most UK listed companies to restate prior year
figures to reflect the new accounting treatment. These financial
statements have been prepared on the basis of the accounting policies set
out in the Company's Annual Financial Statements at 30 June 2005 except
as detailed below:
• Investments have been valued at fair value through profit or loss in
accordance with FRS 26 'Financial Instruments: Measurement'. The
effect is to move from a mid price to a bid price basis of valuation,
resulting in a reduction in the value of investments and unrealised
capital reserves of £26,000 (2005 - £38,000);
• In compliance with FRS 21 'Events after the Balance Sheet Date',
dividends declared after the period end are no longer treated as a
liability at the period end. The effect is to reduce creditors and
increase revenue reserves by £332,000 (2005 - £287,000).
• Income from fixed interest securities has been calculated using the
effective interest rate method. The net effect of this change in the
year to 30 June 2006 is to reduce unrealised capital reserves and
increase revenue reserves by £12,000. Comparative figures have not
been restated as the effect on prior periods is immaterial.
The implementation of FRS 25 and the 2005 Statement of Recommended
Practice 'Financial Statements of Investment Trust Companies' (SORP) has
resulted in changes in the presentation of total returns. Previously
dividend distributions in respect of a year were disclosed on the
Statement of Total Return and the revenue column of that statement was
deemed to be the profit and loss account of the Company. We now present
an Income Statement which does not show the distribution in respect of
equity shares and, whilst it still shows information on capital and
revenue returns, it is the total return column which is regarded as the
profit and loss account of the Company. Dividend distributions are now
shown in the Reconciliation of Movements in Shareholders' Funds and in
the Notes to the Accounts.
The overall effect of these changes in shareholders' funds and reserves
is detailed below:
2006 2005
£'000 £'000
Effect on shareholders' funds:
Investments (26) (38)
Creditors: dividends payable 332 287
306 249
30 June 2006 30 June 2005
£'000 £'000
2. Income
Income from investments and interest receivable 991 831
Other income 5 2
3. Return per ordinary share
Revenue return 11.21p 9.43p
Capital return 127.97p 96.54p
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
NOTES (Ctd)
Revenue return per ordinary share is based on the net revenue on ordinary
activities after taxation of £564,000 (2005 - £475,000) and on 5,027,766
ordinary shares, being the number of ordinary shares in issue throughout
each year.
Capital return per ordinary share is based on the net capital gain for the
financial year of £6,434,000 (2005 - £4,854,000) and on 5,027,766 ordinary
shares, being the number of ordinary shares in issue throughout each year.
There are no dilutive or potentially dilutive shares in issue.
2006 2005 2006 2005
Restated+ Restated+
£'000 £'000
4. Ordinary Dividends
Amounts recognised as distributions in the period:
Previous year's final (paid 6 October 2005) 5.70p 5.50p 287 277
Interim (paid 7 April 2006) 3.90p 3.70p 196 186
9.60p 9.20p 483 463
We also set out below the total dividends paid and proposed in respect of
the financial year, which is the basis on which the requirements of
section 842 of the Income and Corporation Taxes Act 1988 are considered.
The revenue available for distribution by way of dividend for the year is
£564,000 (2005 - £475,000).
2006 2005 2006 2005
£'000 £'000
Dividends paid and proposed in the period:
Interim dividend per ordinary share
(paid 7 April 2006) 3.90p 3.70p 196 186
Proposed final dividend per ordinary share
(payable 6 October 2006) 6.60p 5.70p 332 287
10.50p 9.40p 528 473
If approved the final dividend will be paid on 6 October 2006 to all
shareholders on the register at the close of business on 22 September 2006.
5. Creditors include a bank loan of US$3 million which is repayable on
5 March 2007 (2005 - US$3 million).
6. The financial information set out above does not constitute the Company's
statutory accounts for the year ended 30 June 2006. The financial
information for 2005 is derived from the statutory accounts for 2005 as
restated for the changes to accounting policies as detailed in note 1
above. The statutory accounts for 2005 have been delivered to the
Registrar of Companies. The Auditors have reported on the 2005 accounts,
their report was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985. The statutory accounts for 2006
will be finalised on the basis of the financial information presented in
this preliminary announcement and will be delivered to the Registrar
of Companies following the Company's Annual General Meeting.
None of the views expressed in this document should be construed as advice
to buy or sell a particular investment.
+ See note 1
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