Interim Results

Mid Wynd Inter Inv Trust PLC 08 February 2005 MID WYND INTERNATIONAL INVESTMENT TRUST PLC Results for the six months to 31 December 2004 In the six months to 31 December 2004, the Company has outperformed its comparative index (FTSE World Index in sterling terms). Mid Wynd's net asset value rose by 6.5% which compares with a rise in the comparative index of 4.7%. • Good stock-picking in America coupled with strong asset allocation helped relative performance. • The loss of revenue previously generated from Mid Wynd's large bond portfolio has been offset by significant dividend growth. • The Board has decided to maintain the interim dividend of 3.70p. • The global economic outlook remains uncertain. Consequently, asset allocation remains defensive with the Company holding approximately 7% net cash. The objective of Mid Wynd International Investment Trust PLC is to achieve capital and income growth by investing on a worldwide basis. The Company has total assets of £37.1m (before deduction of the bank loan of £1.6m). Mid Wynd is managed by Baillie Gifford & Co., the Edinburgh based fund management group with around £33 billion under management and advice. 7 February 2005 - ends - For further information please contact: Michael MacPhee, Manager Mid Wynd International Investment Trust PLC 0131 275 2000 Mike Lord, Director Broadgate Marketing 020 7726 6111 MID WYND INTERNATIONAL INVESTMENT TRUST PLC Interim Report During the first half of the Company's financial year net asset value rose 6.5% compared to a 4.7% rise in the FTSE World Index. Total return was 7.8% against 5.6% for the Index. Within this picture, rising corporate profits, though at a slowing pace, were offset by higher oil prices, a weak dollar and prospects of higher interest rates. American economic growth remained robust in contrast to more subdued performance in Europe and Japan. Equity markets moved briskly higher following the re-election of President Bush in November, but are presently lacking in fresh impetus. Portfolio turnover has fallen from last year's high level. Cash has accumulated as a result of modest net sales across all geographic regions. In particular, we reduced Japanese investments early in the period following last year's dramatic rise in many of our smaller capitalisation biased holdings there. This has been successful as Japanese markets have languished since our sales and the stocks we sold have fallen in price. Asia Pacific in general and emerging markets in particular have remained a fertile source of returns, and stock-picking in America deserves special mention. Our European holdings detracted from performance though European markets were strong over the period and asset allocation there, as elsewhere, was helpful. Overall, our large exposure to tobacco has proved beneficial, with strong performance from Altria, Imperial Tobacco and Altadis. Healthcare has been a more challenging area - continuing dismal performance by pharmaceutical companies in general was offset by reasonable stock-picking in the sector. Wellpoint, our American health insurance business, has enjoyed a strong surge in share price following its merger with a competitor. The bad news in Europe has come from ABB (electrical equipment), where margin progression has been at best deferred, and L'Oreal, the global cosmetics business. Sales have struggled to live up to long term trends for some time now and the shares have been derated. By contrast, Essilor, our ophthalmic lens company, Atlas Copco, the Swedish engineer and Vivendi, in media and telecoms, performed well. Our Irish holdings, CRH (building materials), Allied Irish Banks and Jury's Doyle hotels, also all produced good appreciation. Latin American holdings again did well - while the share price of Petrobras rose, it remains a cheap oil company in global terms and telecoms in the region have served us well. This has unfortunately been less true of Vimpelcom, our Russian mobile company, which has suffered from political interference. Asset allocation is rather defensive, with some 7% of net cash in the portfolio - the outlook appears not altogether benign. Company profit margins are fat relative to history though dividend growth has picked up significantly. More clearly than ever, though, American economic policy is running into a cul de sac. Very low interest rates have allowed Americans to live beyond their means in a manner which we have commented upon before and that has supported global activity but driven imbalances in trade, financial and fiscal systems to extreme levels. Asset price appreciation has underpinned current consumption. Stimulus needs to come from elsewhere for this year's growth and candidates seem rather thin on the ground. There is, more than usually, a significant gap in prospects for companies exposed to global competition and trade versus those which are not greatly subject to currency and competitive fluctuation. In the main we prefer the latter. The revenue account, suffering at the interim stage from the continued sale of our large bond position in the first half of last year, has nonetheless benefited from healthy dividend growth, including a significant special dividend from Microsoft. This means that while earnings for the first half fell to 2.50p from 2.96p, forecasts for the year to June would tend to indicate a modest increase from last year's 8.07p. The Board has decided to maintain the interim dividend, which will be paid on 7 April 2005 to shareholders on the register on 11 March, at last year's level of 3.70p. By order of the Board Baillie Gifford & Co 7 February 2005 The following is an interim statement for the six months ended 31 December 2004 which has been neither reviewed nor audited by the auditors. This statement is being printed and will be sent to all shareholders on 14 February 2005. Copies will be available for inspection at the Registered Office of the Company or may be obtained on request from the Managers and Secretaries after that date. MID WYND INTERNATIONAL INVESTMENT TRUST PLC STATEMENT OF TOTAL RETURN (unaudited and incorporating the revenue account*) for the six months ended for the six months ended for the year ended 31 December 2004 31 December 2003 30 June 2004 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Realised (losses)/gains on investments - (394) (394) - 147 147 - 550 550 Unrealised gains on - 2,613 2,613 - 2,916 2,916 - 3,202 3,202 investments Currency gains (note 2) - 84 84 - 76 76 - 90 90 Income (note 3) 280 - 280 297 - 297 721 - 721 Investment management fee (46) (46) (92) (43) (43) (86) (88) (88) (176) Other administrative (80) - (80) (82) - (82) (133) - (133) expenses Net return before finance costs and taxation 154 2,257 2,411 172 3,096 3,268 500 3,754 4,254 Finance costs of (13) (13) (26) (6) (6) (12) (17) (17) (34) borrowings Return on ordinary activities before taxation 141 2,244 2,385 166 3,090 3,256 483 3,737 4,220 Tax on ordinary (16) - (16) (17) 9 (8) (77) 31 (46) activities Return on ordinary activities after taxation 125 2,244 2,369 149 3,099 3,248 406 3,768 4,174 Dividends in respect of equity shares (186) - (186) (186) - (186) (463) - (463) Transfer (from)/to (61) 2,244 2,183 (37) 3,099 3,062 (57) 3,768 3,711 reserves Return per ordinary share (note 4) 2.50p 44.63p 47.13p 2.96p 61.65p 64.61p 8.07p 74.93p 83.00p Dividend per ordinary share (note 5) 3.70p 3.70p 9.20p * The revenue column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. MID WYND INTERNATIONAL INVESTMENT TRUST PLC SUMMARISED BALANCE SHEET at 31 December 2004 (unaudited) 31 December 2004 31 December 2003 30 June 2004 £'000 £'000 £'000 FIXED ASSETS Investments 34,493 34,247 33,560 CURRENT ASSETS Debtors 110 147 122 Cash and short term deposits 2,829 361 1,746 2,939 508 1,868 CREDITORS Amounts falling due within one year + (285) (326) (373) NET CURRENT ASSETS 2,654 182 1,495 TOTAL ASSETS (before deduction of loans and 37,147 34,429 35,055 provisions) Bank loans (note 6) (1,562) (1,676) (1,654) PROVISIONS FOR LIABILITIES AND CHARGES Deferred taxation (3) (3) (2) 35,582 32,750 33,399 CAPITAL AND RESERVES Called-up share capital 1,257 1,257 1,257 Capital reserves 33,764 30,851 31,520 Revenue reserve 561 642 622 EQUITY SHAREHOLDERS' FUNDS 35,582 32,750 33,399 NET ASSET VALUE PER ORDINARY SHARE 707.7p 651.4p 664.3p Ordinary shares in issue 5,027,766 5,027,766 5,027,766 + Excluding bank loans MID WYND INTERNATIONAL INVESTMENT TRUST PLC SUMMARISED CASH FLOW STATEMENT (unaudited) Six months to Six months to Year to 31 December 2004 31 December 2003 30 June 2004 £'000 £'000 £'000 NET CASH INFLOW FROM OPERATING ACTIVITIES 90 266 547 (note 7) NET CASH OUTFLOW FROM SERVICING OF FINANCE (26) (11) (23) TOTAL TAX PAID - - (72) NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL 1,296 (9) 1,365 INVESTMENT EQUITY DIVIDENDS PAID (277) (277) (463) NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 1,083 (31) 1,354 Net cash outflow from bank loans - (9) (9) INCREASE/(DECREASE) IN CASH 1,083 (40) 1,345 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Increase/(decrease) in cash in the period 1,083 (40) 1,345 Net cash outflow from bank loans - 9 9 Exchange movement on bank loans 92 52 74 MOVEMENT IN NET FUNDS/(DEBT) IN THE PERIOD 1,175 21 1,428 NET FUNDS/(DEBT) AT START OF THE PERIOD 92 (1,336) (1,336) NET FUNDS/(DEBT) AT END OF THE PERIOD 1,267 (1,315) 92 MID WYND INTERNATIONAL INVESTMENT TRUST PLC THIRTY LARGEST EQUITY HOLDINGS at 31 December 2004 Name Region Business Market value % of total £'000 assets Baillie Gifford Pacific Asia Pacific Investment fund 2,411 6.5 Fund Golden West Financial North America Savings and loans 1,024 2.8 Altria North America Tobacco and food 757 2.0 Imperial Tobacco United Kingdom Tobacco 714 1.9 Vodafone United Kingdom Mobile telecommunication services 706 1.9 Moody's North America Bond rating agency 706 1.9 Total Fina Elf Continental Europe Integrated oil 669 1.8 Mohawk Industries North America Carpets 570 1.5 GlaxoSmithKline United Kingdom Pharmaceuticals 560 1.5 Suncor Energy North America Oil 553 1.5 MAC Japan Active Shareholder Fund LP Japan Shareholder activist fund 485 1.3 ABB Continental Europe Electrical equipment 473 1.3 Automatic Data North America Payroll processing 462 1.2 Patterson Dental North America Dental products and supplies 452 1.2 Danske Bank Continental Europe Retail and commercial bank 429 1.2 UBS Continental Europe Investment and private banking 427 1.1 BP United Kingdom Integrated oil 419 1.1 Sanofi Aventis Continental Europe Pharmaceuticals 415 1.1 Freddie Mac North America Mortgages 397 1.1 Wyeth North America Pharmaceuticals 393 1.1 BHP Billiton Asia Pacific Mining 376 1.0 Altadis Continental Europe Tobacco 360 1.0 Wellpoint North America Healthcare insurance 359 1.0 Royal Bank of Scotland United Kingdom Banking 356 1.0 ENI Continental Europe Oil and gas 356 1.0 Barclays United Kingdom Banking 352 0.9 Omnicom North America Advertising agency 351 0.9 Essilor Continental Europe Opthalmology 339 0.9 Atlas Copco Continental Europe Engineering 338 0.9 SAP Continental Europe Business software 329 0.9 16,538 44.5 DISTRIBUTION OF ASSETS at 31 December 2004 (unaudited) 31 December 2004 31 December 2003 30 June 2004 % % % Equities: United Kingdom 16.1 16.1 15.6 Continental Europe 21.5 21.3 21.5 North America 28.6 29.6 29.7 Japan 9.9 12.2 13.1 Asia Pacific 8.2 8.6 7.6 Other Emerging Markets 3.5 3.3 3.4 Total equities 87.8 91.1 90.9 Sterling bonds - 3.8 - Overseas bonds 5.1 4.6 4.9 Net liquid assets 7.1 0.5 4.2 Total assets (before deduction of bank 100.0 100.0 100.0 loans) MID WYND INTERNATIONAL INVESTMENT TRUST PLC NOTES 1. The financial statements for the six months to 31 December 2004 have been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 30 June 2004. The Interim Report was approved by the Board on 7 February 2005. None of the views expressed in this document should be construed as advice to buy or sell a particular investment. Six months to Six months to Year to 31 December 2004 31 December 2003 30 June 2004 £'000 £'000 £'000 2. Currency gains/(losses) Realised exchange differences 10 84 298 Movement in unrealised exchange differences on loans 92 (8) (208) Unrealised loss on forward contract (18) - - 84 76 90 3. Income Income from investments and interest receivable 279 297 719 Other income 1 - 2 4. Return per ordinary share Revenue return 125 149 406 Capital return 2,244 3,099 3,768 Return per ordinary share is based on the above totals of revenue and capital and on 5,027,766 ordinary shares, being the number of ordinary shares in issue throughout each period. 5. The interim dividend will be paid on 7 April 2005 to all shareholders on the register at the close of usiness on 11 March 2005. The ex-dividend date is 9 March 2005. 6. A US$3 million loan facility has been arranged with ING Bank N.V., expiring on 5 March 2007. At 31 December 2004 there were outstanding drawings of US$3 million (31 December 2003 and 30 June 2004 - US$3 million). Six months to Six months to Year to 31 December 2004 31 December 2003 30 June 2004 £'000 £'000 £'000 7. Reconciliation of net revenue before finance costs and taxation to net cash inflow from operating activities Net revenue before finance costs and taxation 154 172 500 Decrease in accrued income 4 137 158 Decrease in other debtors 8 5 4 (Decrease)/increase in creditors (16) 7 17 Investment management fee charged to capital (46) (43) (88) Overseas tax suffered (14) (12) (41) Income tax suffered - - (3) NET CASH INFLOW FROM OPERATING ACTIVITIES 90 266 547 8. The financial information contained within this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2004 has been extracted from the statutory accounts which have been filed with the Registrar of Companies and which contain an unqualified Auditors' Report and do not contain a statement under section 237 (2) or (3) of the Companies Act 1985. This information is provided by RNS The company news service from the London Stock Exchange

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