Final Results

Scottish Mortgage & Trust PLC
26 April 2002



                      THE SCOTTISH MORTGAGE AND TRUST PLC

                     Results for the year to 31 March 2002



After an improved second half, Scottish Mortgage's final results showed a
performance almost exactly in line with the benchmark index of 50% FTSE
All-Share Index and 50% FTSE World Ex. UK Index (in sterling terms). Net asset
value fell by 5.3% compared to a 5.2% decline in the index. In the second half,
the Trust outperformed its index by 3.6%. The total dividend has been increased
by 4.2% representing the 20th consecutive annual increase in real terms.


  • During the year markets were dominated by political shocks, global
    economic weakness and corporate earnings disappointments. Market conditions
    during the year were difficult as the world economy was already under strain
    at the start of the period. Overall American operating earnings fell by 20%
    during the year which is more than in any 12 month period since the 1930s.
    However, monetary stimulus and increased government expenditure revived the
    US economy and prevented a full recession. The UK economy was resilient and
    corporate profits were flat.


  • Improved second half performance. In the second half, the net asset value
    rose by 14.9% against a gain of 11.3% in the benchmark index. Performance in
    the key UK market was good throughout the year helped by being underweight
    in telecommunications stocks and heavily exposed to defensive growth areas
    such as beverage and tobacco stocks. Good US stock selection was based on
    exposure to housing related financial stocks and a light weighting in the
    troubled parts of technology and communications markets.


  • Dividend and Earnings. A proposed final dividend of 4.25p gives a total of
    6.25p for the year representing a 4.2% rise. Earnings per share were almost
    unchanged at 7.56p compared with 7.57p in the previous year. The 2000/1
    figure would have been 8.44p if there had not been a deferred tax write-off
    charge of £2.9m. The 10.4% fall from this underlying figure reflects a
    decline in fixed income earnings.


  • Improving outlook. It is unclear how vigorous the international economic
    recovery will be and there is a volatile and dangerous political situation
    in the Middle East. However, it is hoped that after two consecutive years of
    declining markets, the picture will be more encouraging in twelve months
    time. Being of a high quality, diversified and flexible, the portfolio
    should benefit from any improvement in conditions.


The Scottish Mortgage and Trust PLC aims to maximise total return to
shareholders at the same time as generating real dividend growth through
investment in UK and international markets. The trust has total assets of £1.5
billion. An ISA and Share Plan are available.

Scottish Mortgage is managed by Baillie Gifford & Co., the leading Edinburgh
based fund management group with around £22 billion under management and advice.



26 April 2002.

                                    - ends -

For further information please contact:

James Anderson, Manager,

The Scottish Mortgage and Trust PLC 0131 222 4000

Mike Lord, Director,

Broadgate Marketing 020 7726 6111



Baillie Gifford & Co. is regulated by the FSA.




                      THE SCOTTISH MORTGAGE AND TRUST PLC

The following is the unaudited preliminary statement for the year to 31 March
2002 which was approved by the Board on 25 April 2002. The Board of The Scottish
Mortgage and Trust PLC is recommending to the Annual General Meeting of the
Company to be held on 4 July 2002 the payment of a final dividend of 4.25p
(4.10p net last year) per ordinary share making 6.25p net (6.00p net last year)
for the year ended 31 March 2002.



                           STATEMENT OF TOTAL RETURN

               (unaudited and incorporating the revenue account*)



                                              For the year ended                          For the year ended
                                                31 March 2002                               31 March 2001

                                       Revenue      Capital          Total         Revenue      Capital         Total
                                         £'000        £'000          £'000           £'000        £'000         £'000

Losses on investments                        -      (89,951)       (89,951)              -     (401,816)      (401,816)

Currency gains/(losses)                      -        3,447          3,447               -       (8,477)        (8,477)

Income (note 2)                         36,377            -         36,377          44,075            -         44,075

Investment management fee               (2,695)      (2,695)        (5,390)         (3,408)      (3,408)        (6,816)

Other administrative expenses           (1,103)           -         (1,103)         (1,811)           -         (1,811)

Net return before finance costs
and taxation                            32,579      (89,199)       (56,620)         38,856     (413,701)      (374,845)
                                        
Finance costs of borrowings             (7,396)      (7,393)       (14,789)         (9,661)      (9,661)       (19,322)

Return on ordinary activities                                                   
before taxation                         25,183      (96,592)       (71,409)         29,195     (423,362)      (394,167)
                                        
Tax on ordinary activities                (970)           -           (970)       (3,983)++           -       (3,983)++

Return on ordinary activities
after taxation                          24,213      (96,592)       (72,379)         25,212     (423,362)      (398,150)

Dividends in respect of equity
shares                                 (19,453)           -        (19,453)        (19,679)           -        (19,679)

Transfer to/(from) reserves              4,760      (96,592)       (91,832)          5,533     (423,362)      (417,829)

Return per ordinary share                 7.56p     (30.17p)       (22.61p)           7.57p    (127.14p)      (119.57p)
(note 3)

Dividend per ordinary share               6.25p                                       6.00p
(note 4)



* 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.

++Inclusive of £2,879,000 deferred tax balance written off.




                      THE SCOTTISH MORTGAGE AND TRUST PLC

                            SUMMARISED BALANCE SHEET

                                at 31 March 2002

                                  (unaudited)

                                                                                                           
                                                                              31 March 2002                31 March 2001
                                                                                      £'000                        £'000

NET ASSETS                                                                       1,493,041                    1,633,893

Fixed asset investments

Net liquid assets                                                                   16,846                       26,289

Total assets (before deduction of loans and debentures)                          1,509,887                    1,660,182

Loans and debentures (note 5)                                                     (206,899)                    (195,893)

                                                                                 1,302,988                    1,464,289

CAPITAL AND RESERVES

Called-up share capital                                                             77,296                       82,179

Capital reserves                                                                 1,177,670                    1,338,848

Revenue reserve                                                                     48,022                       43,262

Equity shareholders' funds                                                       1,302,988                    1,464,289


NET ASSET VALUE PER ORDINARY SHARE
(after deduction of prior charges at par)                                            423.6p                       447.5p

Ordinary shares in issue (note 6)                                               309,184,688                  328,717,888




                             DISTRIBUTION OF ASSETS

                                at 31 March 2002

                                  (unaudited)

                                                                     31 March 2002                 31 March 2001
                                                                           %                             %

Equities:      United Kingdom                                            45.9                            40.9

               Continental Europe                                        12.7                            18.1

               North America                                             24.2                            18.9

               Japan                                                      4.4                             7.5

               Asia Pacific                                               4.1                             4.5

               Other Emerging Markets                                     2.6                             2.6

Total equities                                                           93.9                            92.5

United Kingdom bonds                                                      2.8                             1.8

European bonds                                                            2.2                             2.2

North American bonds                                                        -                             0.6

Argentine bonds                                                             -                             1.3

Net liquid assets                                                         1.1                             1.6

Total assets (before deduction of loans and debentures)                 100.0                           100.0





                      THE SCOTTISH MORTGAGE AND TRUST PLC


                         SUMMARISED CASH FLOW STATEMENT

                                  (unaudited)
                                                                   For the year ended            For the year ended
                                                                     31 March 2002                 31 March 2001

                                                                   £'000          £'000             £'000         £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES                                        29,925                          33,018

NET CASH OUTFLOW FROM SERVICING OF FINANCE                                      (15,012)                        (17,811)


TOTAL TAX PAID                                                                   (1,032)                         (3,541)


FINANCIAL INVESTMENT

Acquisitions of investments                                      (495,639)                        (856,742)

Disposals of investments                                          539,802                        1,015,473

Realised currency (loss)/gain                                        (552)                           1,616

NET CASH INFLOW FROM FINANCIAL INVESTMENT                                        43,611                         160,347

EQUITY DIVIDENDS PAID                                                           (19,791)                        (19,242)

NET CASH INFLOW BEFORE FINANCING                                                 37,701                         152,771

FINANCING

Shares purchased for cancellation                                 (67,249)                         (45,466)

Loans repaid                                                      (79,350)                        (259,519)

Loans drawn down                                                   94,423                          176,969

Realised currency loss on multi-currency loans                        (26)                         (10,626)

NET CASH OUTFLOW FROM FINANCING                                                 (52,202)                       (138,642)

(DECREASE)/INCREASE IN CASH                                                     (14,501)                         14,129

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

(Decrease)/increase in cash in the period                                       (14,501)                         14,129

(Increase)/decrease in bank loans                                               (15,047)                         93,176

Exchange movement                                                                 3,999                         (10,093)

Other non-cash changes                                                               42                              34

MOVEMENT IN NET DEBT IN THE PERIOD                                              (25,507)                         97,246

NET DEBT AT 1 APRIL                                                            (163,113)                       (260,359)

NET DEBT AT 31 MARCH                                                           (188,620)                       (163,113)




                      THE SCOTTISH MORTGAGE AND TRUST PLC

                                     NOTES

1.     The financial statements for the year to 31 March 2002 have been prepared on the basis of the accounting policies
       set out in the Company's financial statements as at 31 March 2001.

                                                                           31 March 2002                   31 March 2001
                                                                                   £'000                           £'000
2.     Income
       Income from investments and interest receivable                            36,368                          44,039
       Other income                                                                    9                              36

3.     Return per ordinary share
       Revenue return                                                             24,213                          25,212
       Capital return                                                           (96,592)                       (423,362)


       Return per ordinary share is based on the above returns and on 320,181,479 (2001 - 332,981,965) ordinary shares,
       being the weighted average number of ordinary shares in issue during the year.

4.     The total cost of the dividend for the year is £19,453,000 (2001 - £19,679,000). If approved the final dividend
       will be paid on 10 July 2002 to all shareholders on the register at the close of business on 14 June 2002.

5.     Loans and debentures include Y5,900 million drawn down under a multi-currency loan facility and Y4,400 million
       under a short term yen loan facility (2001 - €70 million under a short term multi-currency facility).


       Net asset value per share (with debenture stocks at market value) was 409.4p (2001 - 430.9p). The market value of
       debenture stocks at 31 March 2002 was £189,398,000 (2001- £200,048,000).

6.     At the Annual General Meeting on 5 July 2001 the Company renewed its authority to purchase shares in the market,
       in respect of 48,499,079 ordinary shares (equivalent to 14.99% of its issued share capital at that date). In the
       year to 31 March 2002 a total of 19,533,200 (2001 - 10,003,112) ordinary shares with a nominal value of
       £4,883,000 were bought back at a total cost of £69,469,000 (2001 - £45,466,000). At 31 March 2002 the Company had
       authority to buy back a further 34,140,879 ordinary shares.

7.     The financial information set out above does not constitute the Company's statutory accounts for the year ended
       31 March 2002. The financial information for 2001 is derived from the statutory accounts for 2001 which have been
       delivered to the Registrar of Companies. The Auditors have reported on the 2001 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 2002 are unaudited, however it is expected that the Auditors will issue an unqualified opinion. The
       statutory accounts for 2002 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.




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