Final Results

Murray Income Trust PLC 20 September 2007 MURRAY INCOME TRUST PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2007 The Directors of Murray Income Trust PLC announce the unaudited preliminary results for the year ended 30 June 2007. Key Facts • Net Asset Value total return for the year ended 30 June 2007 of 18.2% • Proposed final dividend of 9.25p per Ordinary share for the year ended 30 June 2007, an increase of 23.3% on the previous year, making a total for the year of 24.25p, an overall increase of 12.3% • Proposed interim dividends of 5.25p per Ordinary share for the year ending 30 June 2008, an increase of 5.0%. Performance The year to June 2007 was the fourth year in succession of very high returns for the Company. The NAV total return for the year was 18.2% compared with a return of 18.4% for the FTSE-All Share Index. The bulk of this return has been generated by improved corporate profitability rather than by an improvement in the valuation of the market which stands on a P/E of 12 at the time of writing, admittedly after a sell-off in August from which there has so far been only a partial recovery. Over the last year UK equities have performed significantly better than bonds and property. Besides profitability, equity withdrawal has been a major factor. Over the year £65.1 billion of equity was taken out of the market by a combination of merger and acquisition activity, both from corporate buyers and private equity, and share buybacks. This activity more than compensated for the continued pressure on pension funds to allocate assets away from equities. Dividends Dividend growth has continued to be strong. The Company's portfolio has benefited from this and the Directors are now proposing a final dividend payment of 9.25 pence payable on 31 October 2007 to Shareholders on the register on 28 September 2007, making total dividends for the year of 24.25 pence. This represents an increase of 12.3%, the twenty-second consecutive year in which the dividendhas increased. Dividend growth remains strong in the current year and the Directors have therefore decided to increase the rate at which interim dividends will be paid to 5.25 pence. The rate of the final dividend will be decided when the results for the year are known. However, the Directors expect total dividends for next year to be at least equal to those paid for this year. VAT on management fees It now seems more likely, following the European Court of Justice ruling in the case brought by JPMorgan Claverhouse Investment Trust against HMRC, that we may be able to recover part of the VAT paid on management fees. Appropriate steps have been taken to protect the Company's position in this respect. Outlook From the analysis of the companies in the portfolio, and generally the quoted company sector in the UK, prospects for the current year look reasonable. Profits are expected to continue to rise, as are dividends and the valuation of the portfolio and market look fair. However, the current year looks more difficult than its predecessors. In the UK growth in government expenditure and consumer expenditure are both likely to be more muted than in the recent past. Although economic growth has helped government finances they are more stretched than for a long time. Personal debt levels have continued to rise and are likely to put pressure on consumption, particularly because there is much less support from house price inflation, while more generalised inflation is not sufficient to make much impact on the real value of debt. Internationally, the long-simmering problem of US sub-prime mortgage lending and derivative structures based on it has now had a real impact on the financial markets by causing the loss of a significant amount of equity in banks and other lenders such as hedge funds. In the short run, the debt market for buyout finance has also frozen as credit gets re-priced. Central banks have achieved their objective of tightening credit and controlling inflation, but in an inadvertent and messy way whose denouement is still unclear. However, it is reasonable to expect that there will be tighter credit conditions and some slowdown in growth compared to what might otherwise have been achieved. On the other hand inflation is under better control with positive implications for official short-term interest rates. It is difficult to know what these contrary indicators will mean for portfolio performance. The most likely outcome still seems to be for a small positive return of which income and growth in income will form a bigger part. MURRAY INCOME TRUST PLC INCOME STATEMENT Year ended 30 June 2007 Year ended 30 June 2006 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 67,500 67,500 - 63,643 63,643 Income 19,251 - 19,251 17,237 - 17,237 Investment management fees (1,532) (1,532) (3,064) (1,402) (1,402) (2,804) Administrative expenses (860) - (860) (804) - (804) ________ _______ ________ _______ _______ _______ Net return before finance 16,859 65,968 82,827 15,031 62,241 77,272 costs and taxation Finance costs of borrowing (765) (765) (1,530) (606) (606) (1,212) ________ _______ ________ _______ _______ _______ Return on ordinary activities 16,094 65,203 81,297 14,425 61,635 76,060 before and after taxation ________ _______ ________ _______ _______ _______ Return per Ordinary share 24.7 100.0 124.7 21.8 93.1 114.9 (pence): ________ _______ ________ _______ _______ _______ The total column of this statement represents the profit and loss of the Company. The Company had no recognised gains or losses other than those recognised in the Income Statement. No operations were acquired or discontinued in the year. All revenue and capital items in the above statement derive from continuing operations. The accompanying notes are an integral part of the financial statements. Dividends Ordinary dividends on equity 15,792 - 15,792 14,207 - 14,207 shares (£'000): ________ _______ _______ _______ _______ _______ The above dividend information does not form part of the Income Statement. MURRAY INCOME TRUST PLC Balance Sheet As at As at 30 June 2007 30 June 2006 (restated) £'000 £'000 Non-current assets Investments at fair value through profit or 543,269 480,711 loss __________ __________ Current assets Debtors and prepayments 8,292 1,862 Cash and short term deposits 2,073 100 __________ __________ 10,365 1,962 __________ __________ Creditors: amounts falling due within one (1,017) (959) year __________ __________ Net current assets 9,348 1,003 __________ __________ Total assets less current liabilities 552,617 481,714 Creditors: amounts falling due after more than one year Bank loans (30,000) (25,000) __________ __________ Net assets 522,617 456,714 __________ __________ Share capital and reserves Called-up share capital 16,570 16,604 Share premium account 7,955 7,955 Treasury share reserve (8,250) (7,332) Capital reserve 5,031 4,997 Capital reserve - realised 328,891 291,362 Capital reserve - unrealised 149,536 121,862 Revenue reserve 22,884 21,266 __________ __________ Equity Shareholders' funds 522,617 456,714 __________ __________ Net asset value per Ordinary share (pence): 802.3 699.7 __________ __________ MURRAY INCOME TRUST PLC Reconciliation of Movements in Shareholders' funds For the year ended 30 June 2007 Share Treasury Capital Capital Capital Share premium share redemption reserve Reserve Revenue capital account reserve reserve realised Unrealisd reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 June 16,318 7,955 - 5,283 284,030 121,862 21,266 456,714 2006 as previously stated Prior year 286 - (7,332) (286) 7,332 - - - adjustment (see note 1) ______ ______ ________ _________ _________ ________ ________ ______ Balance at 30 June 16,604 7,955 (7,332) 4,997 291,362 121,862 21,266 456,714 2006 (restated) Repurchase of own (34) - (918) 34 - - (918) shares Return on ordinary - - - - 37,529 27,674 16,094 81,297 activities after taxation Dividends on - - - - - - (14,476) (14,476) Ordinary shares (see note 6) ______ ________ _________ _________ ________ ________ ______ ______ Balance at 30 June 16,570 7,955 (8,250) 5,031 328,891 149,536 22,884 522,617 2007 ______ ________ _________ _________ ________ ________ ______ ______ For the year ended 30 June 2006 Share Treasury Capital Capital Capital Share premium share redemption reserve reserve Revenue capital account reserve reserve realised unrealised Reserve Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 June 16,765 7,955 - 4,836 262,455 92,721 19,869 404,601 2005 (restated) Repurchase of own (161) - (7,332) 161 (3,587) - - (10,919) shares Return on ordinary - - - - 32,494 29,141 14,425 76,060 activities after taxation Dividends on - - - - - - (13,028) (13,028) Ordinary shares (see note 6) ______ ________ _________ _________ ________ ________ ______ ______ Balance at 30 June 16,604 7,955 (7,332) 4,997 291,362 121,862 21,266 456,714 2006 ______ ________ _________ _________ ________ ________ ______ ______ The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. MURRAY INCOME TRUST PLC Cash Flow Statement Year ended Year ended 30 June 2007 30 June 2006 £'000 £'000 Net return before finance costs and taxation 82,827 77,272 Adjustments for: Gains on investments (67,500) (63,643) Increase in accrued income (1,065) (405) Increase in prepayments (6) (2) (Decrease)/increase in accruals (117) 278 __________ __________ Net cash inflow from operatingactivities 14,139 13,500 Servicing of finance Interest paid (1,525) (1,218) __________ __________ Net cash outflow from servicing of finance (1,525) (1,218) Financial investment Purchases of investments (96,057) (95,275) Sales of investments 95,810 95,744 __________ __________ Net cash (outflow)/inflow from financial investment (247) 469 Equity dividends paid (14,476) (13,028) Management of liquid resources Cash (placed)/drawn on short term deposit (1,600) 310 __________ __________ Net cash (outflow)/inflow before financing (3,709) 33 Financing Drawdown of loans 5,000 9,000 Purchase of own shares (918) (11,323) __________ __________ Net cash inflow/(outflow) from financing 4,082 (2,323) __________ __________ Increase/(decrease) in cash 373 (2,290) __________ __________ MURRAY INCOME TRUST PLC YEAR ENDED 30 JUNE 2006 1. Accounting policies (a) Basis of accounting The financial statements have been prepared on a going concern basis and in accordance with applicable UK Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (December 2005). They have also been prepared on the assumption that approval as an investment trust will be granted. The Treasury Share Reserve was created in accordance with FRS 25: 'Financial Instruments-Disclosure and Presentation' and the Companies Act 1985.. The cost of any share bought back to be held in Treasury or subsequent resale from Treasury is deducted from or added to the Treasury Share Reserve. The financial statements for 2006 have been restated to disclose separately the Treasury Share Reserve along with a number of related adjustments, none of which affects the net assets of the Company. (b) Income Dividends receivable on equity shares (other than special dividends) are treated as revenue for the year on an ex-dividend basis.Where no ex-dividend date is available dividends receivable on or before the year end are treated as revenue for the year. Provision is made for any dividends not expected to be received. Special dividends are credited to capital or revenue, according to the circumstances. The fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield on the debt securities and shares. Interest receivable from cash and short-term deposits and interest payable is accrued to the end of the year. (c) Expenses All expenses are accounted for on an accruals basis.All expenses are charged through the revenue column of the Income Statement except as follows: transaction costs on the acquisition or disposal of investments are recognised as a capital item in the Income Statement. expenses are charged to realised capital reserves where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect the investment management fee has been allocated 50% to revenue and 50% to realised capital reserves to reflect the Company's investment policy and prospective income and capital growth. (d) Taxation Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Balance Sheet date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted.Timing differences are differences arising between the Company's taxable profits and its results as stated in the Financial Statements which are capable of reversal in one or more subsequent periods. Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet date. Due to the Company's status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. The tax effect of different items of income/gain and expenditure/loss is allocated between capital reserves and the revenue account on the same basis as the particular item to which it relates using the Company's effective rate of tax for the year. (e) Valuation of Investments Investments have been designated upon initial recognition at fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured initially at fair value.Subsequent to initial recognition, investments are valued at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or closing prices for SETS (London Stock Exchange's electronic trading service) stocks sourced from the London Stock Exchange. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement and are ultimately recognised in the unrealised capital reserve. (f) Borrowings Monies borrowed to finance the investment objectives of the Company are stated at the amount of net proceeds immediately after issue plus cumulative finance costs less cumulative payments made in respect of the debt. The finance costs of such borrowings are allocated to years over the term of the debt at a constant rate on the carrying amount and are charged 50% to revenue and 50% to realised capital reserves to reflect the Company's investment policy and prospective income and capital growth. 2. A summary of the investment changes during the year, summary of net assets at 30 June 2007 and a list of the twenty largest investments at 30 June 2007 are attached. 3. The issued share capital at 30 June 2007 was 65,138,908 Ordinary shares of 25p each and 1,277,550 shares held in treasury of 25p each. 4 Returns per share have been based on the following weighted average number of ordinary shares in issue during each year. Weighted average number of Ordinary shares 65,194,984 5. Ordinary dividends on equity shares Year ended Year ended 30 June 2007 30 June 2006 Ordinary dividends on equity shares £'000 £'000 Third interim 2006 of 4.70p (2005 - 4.50p) 3,066 3,038 Final 2006 of 7.50p (2005 - 5.65p) 4,890 3,759 First interim of 5.00p (2006 - 4.70p) 3,260 3,121 Second interim of 5.00p (2006- 4.70p) 3,260 3,110 __________ __________ 14,476 13,028 __________ __________ 6. If approved, the proposed final dividend of 9.25p per share will be paid on 31 October 2007 to holders of Ordinary shares on the register at the close of business on 28 September 2007. In respect of the year ending 30 June 2008, three interim dividends of 5.25p per share will be paid on 18 January 2008, 18 April 2008, and 18 July 2008 to holders of Ordinary shares on the register at the close of business on 14 December 2007, 14 March 2008 and 13 June 2008 respectively. 7. The Income Statement, Balance Sheet, Reconciliation of Shareholders Movements and Cashflow statement set out above does not constitute the company's statutory financial statements as defined in Section 240 of the Companies Act 1985. The statutory financial statements for the year ended 30 June 2007 have been delivered to the Registrar of Companies and contained an audit report which was unqualified and did not constitute statements under Sections 237(2) or (3) of the Companies Act 1985. The annual results will be circulated to shareholders in the form of an Annual Report, copies of which will be available at the Company's registered office, 123 St Vincent Street, Glasgow and which will be filed with the Registrar of Companies. 8. The Annual General Meeting will be held on 30 October 2007 at the Strathclyde Suite, Glasgow Royal Concert Hall, 2 Sauchiehall Street, Glasgow, G2 3NY. By Order of the Board ABERDEEN ASSET MANAGEMENT PLC Secretary 20 September 2007 Copies of this announcement will be available to the public from the Company Secretary, Aberdeen Asset Management PLC, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD. MURRAY INCOME TRUST PLC SUMMARY OF INVESTMENT CHANGES DURING THE YEAR TO 30 JUNE 2007 Valuation 30 June 2006 Valuation (restated) Transactions Appreciation 30 June 2007 £'000 % £'000 £'000 £'000 % United Kingdom Equities 473,774 98.4 (14,443) 66,912 526,243 95.3 Fixed interest 4,497 0.9 7,498 3,671 15,666 2.8 FTSE options 2,440 0.5 2,003 (3,083) 1,360 0.2 _______ _______ _______ _______ _______ ______ Total investments 480,711 99.8 (4,942) 67,500 543,269 98.3 _______ _______ _______ _______ _______ ______ Other net assets 1,003 0.2 8,345 - 9,348 1.7 _______ _______ _______ _______ _______ ______ Total assets 481,714 100.0 3,403 67,500 552,617 100.0 _______ _______ _______ _______ _______ ______ SUMMARY OF NET ASSETS Valuation 30 June 2007 £'000 % Equities 526,243 100.7 Fixed interest 15,666 3.0 FTSE options 1,360 0.3 Other net assets 9,348 1.8 Borrowings (30,000) (5.8) __________ __________ Equity Shareholders' interest 522,617 100.0 __________ __________ MURRAY INCOME TRUST PLC Twenty Largest Investments As at 30 June 2007 Valuation Total 30 June 2007 assets Investment £'000 % Royal Dutch Shell 31,537 5.7 BP 28,492 5.2 HSBC Holdings 24,934 4.5 Royal Bank of Scotland Group 20,965 3.8 Barclays 20,052 3.6 GlaxoSmithKline 16,965 3.1 Lloyds TSB 15,012 2.7 Centrica 14,351 2.6 British American Tobacco 14,126 2.6 BT Group 14,111 2.6 Aviva 13,465 2.4 Vodafone Group 12,627 2.3 AstraZeneca 12,610 2.3 Anglo American 12,369 2.2 Rio Tinto 11,481 2.1 National Grid 10,812 2.0 Friends Provident 10,080 1.8 Land Securities Group 9,709 1.8 Unilever 9,625 1.7 GKN 9,558 1.7 Top twenty investments 312,881 56.7 END This information is provided by RNS The company news service from the London Stock Exchange

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