Final Results
Scottish Mortgage Inv Tst PLC
02 May 2008
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
Results for the year to 31 March 2008
Scottish Mortgage produced positive returns during the year in contrast to a
fall in the FTSE All World Index. The longer term five year record is
outstanding in absolute terms and when compared to the benchmark index. In
current market conditions, the Managers continue to identify promising long term
investment opportunities around the world.
• One year performance. Over the year net asset value per share increased by
7.3% compared to a 3.7% fall in the benchmark index, the FTSE ALL World
Index, expressed in sterling; an outperformance of 11 percentage points. The
share price rose by 10.7% with the discount narrowing over the period from
10.7% to 7.9%.
• Five Year Performance. Five years ago a number of changes to the way the
portfolio is managed were initiated. This includes the gradual reduction of
the number of investments and the wholehearted adoption of an integrated global
approach where close attention is paid to individual companies but index
weightings and regional allocations are ignored when constructing the portfolio.
The Managers take a long term view and are primarily assessed over a five
year period. Past performance is not an indicator of future performance.
Five Year Total Return Performance (capital and reinvested dividends)
Scottish Mortgage - Share Price 184%
Scottish Mortgage - Net Asset Value 156%
FTSE All World Index in sterling 83%
AIC Global Growth Sector Average - Share Price 136%
AIC Global Growth Sector Average - Net Asset Value 111%
Over the five year period, shifting the centre of gravity of the portfolio
away from UK listed companies towards overseas listed ones was beneficial.
Conviction in selecting investments has been expressed and advantage taken of
market volatility to increase holdings at times of share price weakness. A
further important contributor to performance is the low cost base. Scottish
Mortgage has a total expense ratio of 0.51%.
• Dividend. A total dividend of 10.3p is recommended. This is an 8.4% increase
on last year, compared with a 3.8% increase in the Retail Price Index.
Scottish Mortgage has a 26 year record of dividend increases in excess of
inflation. Earnings per share were unchanged at 9.8p.
• Outlook. The Chairman, Sir Donald MacKay, commented that the growth of many
large and rapidly developing economies including China and India remains
prodigious and that the resultant transformation of economies around the
world is likely to dominate markets for some time to come. On a global basis,
the Managers are finding no shortage of new investment ideas and, in many
cases, their enthusiasm for existing holdings is strengthening not diminishing.
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
Scottish Mortgage Investment Trust PLC is a low cost investment trust that aims
to maximise total return over the long term from a focused and actively managed
portfolio of equities. It invests globally, looking for strong businesses with
above-average returns. The Trust has total assets of £2,276 million (before
deduction of debentures, long and short term borrowings of £440 million).
Scottish Mortgage is managed by Baillie Gifford & Co, the Edinburgh based fund
management group with over £54 billion under management and advice as at 1 May
2008.
Scottish Mortgage Investment Trust PLC - Your low cost choice for global
investment.
2 May 2008
- ends -
For further information please contact:
Robert O'Riordan, 0131 275 3181
Baillie Gifford & Co 07730 412007
Roland Cross, Director
Broadgate Marketing 020 7726 6111
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
Chairman's Statement
Over the year net asset value increased by 7.3% and the share price by 10.7%;
this is in sharp contrast to the FTSE All World Index, which fell by 3.7% (all
in sterling terms). This means we outperformed our benchmark by 11 percentage
points. The longer term performance record is also extremely good, most notably
over the past five years. It was at the start of this period that changes to the
way the portfolio is managed were initiated. This includes the gradual reduction
of the number of investments and the wholehearted adoption of an integrated
global approach where close attention is paid to individual companies but index
weightings are ignored when constructing the portfolio and regional allocations
are the outcome of global stock selection.
Long term performance
Given the long term investment approach, performance over more than one year
provides a better measure of progress. The Managers are primarily assessed over
a five year period and this table gives absolute and relative figures.
Scottish Mortgage Five Year Performance to 31/3/2008
Total Return (capital and reinvested dividends)
Scottish Mortgage - Share Price 184%
Scottish Mortgage - Net Asset Value 156%
FTSE All World Index in sterling 83%
AIC Global Growth Sector Average - Share Price 136%
AIC Global Growth Sector Average - Net Asset Value 111%
It should be remembered that past performance is not an indicator of future
performance. Conditions do, and will, change.
The good performance over the past five years can be attributed to a number of
factors.
• The Managers' early recognition of the changing shape of global economic
and trade patterns, in particular the increasing relative importance of
emerging markets. Shifting the centre of gravity of the portfolio away from
UK listed companies towards those listed overseas has proved highly
beneficial to date.
• Good individual investment decisions were made. When the number of
holdings was reduced a high level of conviction was expressed in determining
the shape of the portfolio. Notably, profits have been run and not taken
too early, especially amongst many of the larger holdings.
• Market volatility was exploited. New and additional holdings have been
acquired in attractive companies at times when share prices have been
marked down through market nervousness.
Individual investments drive performance. This year a commentary on some of the
larger holdings is given in the Managers' Report. When purchased some were
controversial ideas but the Board encourages the Managers to find such
situations and to act decisively on their judgements. This is how our
performance has been achieved. With over 70 holdings the portfolio is suitably
diversified and performance is not dependent on any one company, sector or
region.
A further important contributor to performance is the low cost base. Scottish
Mortgage's total expense ratio for the past year was 0.51%. Lower costs mean
higher returns for shareholders, particularly when compounded over long periods.
Conversely, high management levies eat into capital and jeopardise future
returns. The Board and Managers remain determined that Scottish Mortgage's cost
advantage be maintained for the benefit of all shareholders.
Dividend and Earnings
The overall level of earnings per share was unchanged at 9.8p. Paying growing
dividends to shareholders is important and the Board has recommended a final
dividend of 5.3p which, if approved, will bring the total for the year to 10.3p,
an 8.4% increase on last year. The inflation rate over the period as measured
by the Retail Price Index was 3.8%. As the dividend payment exceeds earnings
this year, the balance will be met from the substantial revenue reserve. The
fall in earnings was anticipated and a revenue reserve has been built up over
time and exists precisely for this purpose. After the dividend payment, the
revenue reserve will stand at 20p per share. Over time we think it probable that
the growth in earnings from the portfolio will exceed the UK inflation rate and
that earnings will rise back to the level of the dividend.
Borrowings
Over the year the net borrowings increased as opportunities were taken in
volatile markets to borrow in order to increase holdings or take new ones.
Borrowings are a mixture of bank loans, drawn in different currencies where
there are underlying investments, and the listed sterling debentures. Potential
gearing with the debentures valued at par is currently 124% of shareholders'
funds. After cash and the fixed interest holdings are offset, equity gearing
stands at 118%. In the coming year, the Managers are likely to continue to
maintain, or even increase gearing levels, as opportunities are identified.
Discount, buybacks and marketing
During the period the discount (measured with debt at market value) narrowed
both in absolute terms, from 10.7% to 7.9%, and also relative to the AIC Global
Growth Sector. Narrowing the discount over time and reducing volatility remain
important aims. Share buybacks during the year totalled 7.5m shares or 2.7% of
issued share capital at the start of the period. Against the general trend,
there was a net positive investment flow into the various Baillie Gifford run
plans and a number of new shareholders, including some institutional ones,
joined the main register. Scottish Mortgage won two awards during the year: the
What Investment 'Generalist Investment Trust of the Year' award and the
Investment Trust Magazine 'Best Global Trust' award.
The Managers undertook a number of initiatives to ensure effective communication
with shareholders including improving the website so that shares can be bought
on-line and enabling holders within the Baillie Gifford plans to view valuations
on-line. If you hold shares in your own name, as opposed to in a nominee name,
you will also be able to benefit from a dividend re-investment plan which the
Company's registrars are introducing. It will allow you to re-invest your
dividend directly into Scottish Mortgage shares. The marketing initiatives will
be continued vigorously in the coming year.
Electronic Communications
One resolution that you are being asked to vote on at the AGM is to enable the
Company to extend the use of electronic communications to shareholders.
Disseminating reports electronically saves consumption of resources and reduces
cost. If this resolution is approved, shareholders will still be able to elect
to receive written communications through the post if they prefer. This
initiative is one of a number that the Board and the Managers are taking to
modernise and improve communications with shareholders and potential
shareholders. I encourage you to visit the Scottish Mortgage pages of the
Managers' website: www.bailliegifford.com.
AGM
The AGM will be held on Thursday 26 June 2008 in Edinburgh. I hope you will be
able to come and meet the Board. The Manager will give a presentation on the
investments.
VAT
HM Revenue and Customs have accepted a European Court of Justice ruling that
investment trust management fees should be exempt from VAT. As a result there
will be a recovery of VAT that has already been paid in previous years. The
Managers are discussing with HMRC the extent and date of the repayment. As the
amount is still uncertain and, in the context of the size of the Trust, it will
not be material, the contingent asset has not been recognised in this set of
accounts.
Outlook
The growth of many large and rapidly developing economies including China and
India remains prodigious. The resultant transformation of economies around the
world is likely to dominate markets for some time to come. The speed, scale and
impact of this transformation has been greater than many expected. The financial
crisis in Western markets is, in part, a consequence of abundant availability of
capital from these new sources. After a period of exuberant lending and
investment, credit has now dried up and trust between Western financial
institutions evaporated. The US Federal Reserve Bank took swift and decisive
action to address the unusual position by cutting interest rates and by being
willing to provide central credit support to financial institutions.
Many companies around the world which have less, or little, direct exposure to
the financial storm, continue to report favourable trading conditions. Strong
demand from rapidly growing economies for a number of resources, primary
materials and equipment looks likely to persist and prices may remain high.
On a global basis the Managers are finding no shortage of new investment ideas.
Indeed, in many cases, their enthusiasm for the existing holdings is
strengthening not diminishing.
Sir Donald MacKay
Chairman
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
The following is the unaudited preliminary statement for the year to 31 March
2008 which was approved by the Board on 1 May 2008. The Board of Scottish
Mortgage Investment Trust PLC is recommending to the Annual General Meeting of
the Company to be held on 26 June 2008 the payment of a final dividend of 5.30p
(5.00p last year) per ordinary share making 10.30p (9.50p last year) for the
year ended 31 March 2008.
INCOME STATEMENT
(unaudited)
For the year ended For the year ended
31 March 2008 31 March 2007
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 159,406 159,406 - 53,001 53,001
Currency (losses)/gains - (36,613) (36,613) - 5,083 5,083
Income (note 2) 49,575 - 49,575 45,522 - 45,522
Investment management fee (3,875) (3,875) (7,750) (3,462) (3,462) (6,924)
Other administrative expenses (2,068) - (2,068) (1,731) - (1,731)
Net return before finance costs
and taxation 43,632 118,918 162,550 40,329 54,622 94,951
Finance costs of borrowings (10,025) (10,025) (20,050) (8,452) (8,452) (16,904)
Net return on ordinary
activities before taxation 33,607 108,893 142,500 31,877 46,170 78,047
Tax on ordinary activities (6,564) 3,908 (2,656) (4,060) 2,650 (1,410)
Net return on ordinary
activities after taxation 27,043 112,801 139,844 27,817 48,820 76,637
Net return per ordinary share
(note 3) 9.79p 40.82p 50.61p 9.80p 17.19p 26.99p
The total 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.
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.
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
BALANCE SHEET
(unaudited)
At 31 March At 31 March
2008 2007
£'000 £'000
FIXED ASSETS
Investments held at fair value through profit or loss 2,259,474 2,031,907
CURRENT ASSETS
Debtors 20,026 25,037
Cash and short term deposits 13,030 19,165
33,056 44,202
CREDITORS
Amounts falling due within one year (note 5) (126,435) (104,749)
NET CURRENT LIABILITIES (93,379) (60,547)
TOTAL ASSETS LESS CURRENT LIABILITIES 2,166,095 1,971,360
CREDITORS
Amounts falling due after more than one year (note 5) (329,651) (201,495)
1,836,444 1,769,865
CAPITAL AND RESERVES
Called-up share capital 68,497 70,365
Capital redemption reserve 21,683 19,815
Capital reserve - realised 1,712,759 1,067,888
Capital reserve - unrealised (36,430) 541,179
Revenue reserve 69,935 70,618
EQUITY SHAREHOLDERS' FUNDS 1,836,444 1,769,865
NET ASSET VALUE PER ORDINARY SHARE 651.4p 607.1p
(After deducting borrowings at fair value) (note 6)
NET ASSET VALUE PER ORDINARY SHARE 672.5p 631.0p
(After deducting borrowings at par)
ORDINARY SHARES IN ISSUE (note 7) 273,989,897 281,461,176
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(unaudited)
For the year ended 31 March 2008
Capital Capital Capital Revenue Total
Share redemption reserve - reserve - reserve shareholders'
capital reserve realised unrealised funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at
1 April 2007 70,365 19,815 1,067,888 541,179 70,618 1,769,865
Transfer between reserves*
- - 535,237 (535,237) - -
Net return on ordinary
activities after taxation - - 155,173 (42,372) 27,043 139,844
Shares bought back + (1,868) 1,868 (45,539) - - (45,539)
Dividends paid during the
year# - - - - (27,726) (27,726)
Shareholders' funds at 31
March 2008 68,497 21,683 1,712,759 (36,430) 69,935 1,836,444
*With effect from 1 April 2007, changes in fair value of investments which are
readily convertible to cash, without accepting adverse terms, at the balance
sheet date are included in realised, rather than unrealised, capital reserves.
The balances on both reserves at 1 April 2007 have been amended by a reserve
transfer to reflect this change.
For the year ended 31 March 2007
Capital Capital Capital Revenue Total
Share redemption reserve - reserve - reserve shareholders'
capital reserve realised unrealised funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at
1 April 2006 72,019 18,161 892,063 702,315 68,795 1,753,353
Net return on ordinary
activities after taxation - - 209,956 (161,136) 27,817 76,637
Shares bought back + (1,654) 1,654 (34,131) - - (34,131)
Dividends paid during the
year# - - - - (25,994) (25,994)
Shareholders' funds at 31
March 2007 70,365 19,815 1,067,888 541,179 70,618 1,769,865
+ See note 7
# See note 4
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
SUMMARISED CASH FLOW STATEMENT
(unaudited)
For the year ended For the year ended
31 March 2008 31 March 2007
£'000 £'000 £'000 £'000
Net cash inflow from operating Activities 36,358 40,741
NET CASH OUTFLOW FROM SERVICING OF FINANCE (18,708) (16,570)
TAXATION
Income tax paid (10) (15)
Overseas tax incurred (2,560) (1,407)
TOTAL TAX PAID (2,570) (1,422)
FINANCIAL INVESTMENT
Acquisitions of investments (783,355) (688,970)
Disposals of investments 707,926 673,837
Realised currency loss (1,051) (2,293)
Net cash outflow from financial investment (76,480) (17,426)
EQUITY DIVIDENDS PAID (note 4) (27,726) (25,994)
NET CASH OUTFLOW BEFORE FINANCING (89,126)
(20,671)
FINANCING
Shares bought back (45,539) (34,131)
Bank loans repaid (72,480) (99,145)
Bank loans drawn down 201,010 150,462
NET CASH INFLOW FROM FINANCING 82,991 17,186
DECREASE IN CASH (6,135) (3,485)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the period (6,135) (3,485)
Increase in bank loans (128,530) (51,317)
Exchange movement on bank loans (35,562) 7,376
Other non-cash changes 115 100
MOVEMENT IN NET DEBT IN THE YEAR (170,112) (47,326)
NET DEBT AT 1 APRIL (256,485) (209,159)
NET DEBT AT 31 MARCH (426,597) (256,485)
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 162,550 94,951
taxation
Gains on investments - securities (159,406) (53,001)
Currency losses/(gains) 36,613 (5,083)
Amortisation of fixed income book cost 43 (26)
Decrease/(increase) in accrued income 636 (298)
(Increase) in debtors (114) (15)
(Decrease)/increase in creditors (3,964) 4,213
NET CASH INFLOW FROM OPERATING ACTIVITIES 36,358 40,741
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
DISTRIBUTION OF ASSETS
(unaudited)
At 31 March 2008 At 31 March 2007
% %
Equities: United Kingdom 11.0 24.8
Continental Europe 28.5 16.0
North America 24.4 23.9
Japan 3.9 3.2
Asia Pacific 8.8 11.8
Emerging Markets 18.8 15.8
Total equities 95.4 95.5
Sterling denominated bonds 0.8 0.4
Euro denominated bonds 0.2 0.8
US$ denominated bonds 0.1 0.2
Brazilian real denominated bonds 2.8 2.4
Net liquid assets 0.7 0.7
Total assets (before deduction of loans and debentures) 100.0 100.0
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
THIRTY LARGEST EQUITY HOLDINGS AND EQUITY PERFORMANCE
at 31 March 2008 (unaudited)
Fair
Fair value Performance + Contribution value 31
31 March % of to absolute March
2008 total Absolute Relative performance 2007
Name Business £'000 assets % % % £'000
CVRD (or Vale) Iron ore and nickel
mining 101,078 4.4 86.0 88.7 2.9 58,188
Atlas Copco Engineering 99,392 4.4 21.8 23.5 1.0 55,919
Petrobras Oil producer 96,399 4.2 91.4 94.1 3.0 72,913
Porsche Automobiles 90,222 4.0 20.6 22.3 0.5 35,543
Gazprom Gas producer 85,750 3.8 21.1 22.8 0.5 62,715
Sandvik Engineering 81,970 3.6 2.2 3.7 0.3 55,596
Vestas
Windsystems Wind power systems 77,204 3.4 95.4 98.2 1.6 17,440
eBay Internet trading 69,684 3.1 (11.2) (9.9) (0.2) 68,697
company
Amazon.com Online retailer 61,714 2.7 76.6 79.1 1.2 26,466
EOG Resources Oil and gas producer 53,374 2.3 66.6 69.0 1.0 32,094
Canon Printers, copiers and
cameras 52,407 2.3 (13.1) (11.9) (0.3) 44,206
Norilsk Nickel Diversified mining 51,066 2.3 50.0 52.1 0.8 28,179
China Mobile Mobile
telecommunications 46,371 2.0 65.2 67.6 0.7 21,536
Deere Farm machinery 44,777 2.0 47.2 49.3 0.6 19,590
Standard
Chartered Banking 44,238 1.9 20.4 22.1 0.4 37,610
Schlumberger Oil services 43,723 1.9 25.3 27.1 0.5 35,189
Monsanto Seed and agricultural
chemicals 41,336 1.8 101.5 104.4 1.0 20,724
Unicredito Banking 35,607 1.6 (34.1)* (30.8)* (0.8) -
Italiano
Swisscom Fixed line
telecommunications 33,035 1.4 (0.8)* 6.3* - -
Reed Elsevier Publisher 31,629 1.4 8.7 10.2 0.2 34,145
Berkshire
Hathaway Insurance 31,437 1.4 21.3 23.0 0.3 25,839
Richemont Luxury goods 28,335 1.2 (0.6)* (2.0)* - -
UBS Banking 27,449 1.2 (50.1) (49.4) (1.3) 24,767
Samsung
Electronics Electronics 26,892 1.2 4.8 6.3 0.1 42,572
manufacturer
Xstrata Iron ore and nickel
mining 26,657 1.2 (7.5)* (7.0)* (0.2) -
Q-cells Solar energy 26,363 1.1 54.2 56.4 0.3 12,599
production
First Solar Solar energy 26,061 1.1 7.0* 17.1* 0.2 -
technology
Tesco Food retailer 25,143 1.1 (13.6) (12.3) (0.2) 40,911
Walgreen Pharmacy chain 24,116 1.1 (17.3) (16.1) (0.1) 21,043
Rockwell Industrial automation
Automation providers 23,076 1.0 (3.6) (2.2) - 20,732
1,506,505 66.1 915,213
+ Absolute and relative performance has been calculated on a total return basis
over the period 1 April 2007 to 31 March 2008. Absolute performance is in
sterling terms; relative performance is against the benchmark: FTSE
All World Index (in sterling terms).
* Figures relate to part-period returns where the equity has been purchased
during the period.
Source: Baillie Gifford & Co/StatPro
Past performance is no guarantee of future performance.
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
NOTES
1. The financial statements for the year to 31 March 2008 have been prepared on the basis of the accounting
policies set out in the Company's Annual Financial Statements at 31 March 2007.
With effect from 1 April 2007, changes in fair value of investments which are readily convertible to
cash, without accepting adverse terms, at the balance sheet date are included in realised, rather than
unrealised capital reserves. The balances on both reserves at 1 April 2007 have been amended by a reserve
transfer to reflect this change.
The Directors consider the Company's functional currency to be sterling as the Company's shareholders are
predominantly based in the UK and the Company is subject to the UK's regulatory environment.
2008 2007
£'000 £'000
2. Income
Income from investments and interest receivable 49,505 45,472
Other income 70 50
49,575 45,522
2008 2007
£'000 £'000
3. Net return per ordinary share
Revenue return 27,043 27,817
Capital return 112,801 48,820
Total return 139,844 76,637
Weighted average number of ordinary shares in issue 276,364,832 283,953,088
Net return per ordinary share figures are based on the above totals of revenue and capital and the weighted
average number of ordinary shares in issue during each period.
There are no dilutive or potentially dilutive shares in issue.
2008 2007 2008 2007
£'000 £'000
4. Ordinary Dividends
Amounts recognised as distributions in the
period:
Previous year's final (paid 4 July 2007) 5.00p 4.65p 13,984 13,222
Interim (paid 23 November 2007) 5.00p 4.50p 13,742 12,772
10.00p 9.15p 27,726 25,994
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 £27,043,000 (2007 - £27,817,000).
Dividends paid and proposed in the period:
Interim dividend per ordinary share (paid
23 November 2007) 5.00p 4.50p 13,742 12,772
Proposed final dividend per ordinary share
(payable 2 July 2008) 5.30p 5.00p 14,521 14,073
Adjustment to the previous year's final
dividend re shares bought back (89) (173)
10.30p 9.50p 28,174 26,672
SCOTTISH MORTGAGE INVESTMENT TRUST PLC
NOTES (Ctd)
4. Ordinary Dividends (ctd)
The final dividend was declared after the period end date and has therefore not been included as a liability in
the balance sheet. If approved the final dividend will be paid on 2 July 2008 to all shareholders on the register
at the close of business on 6 June 2008. The ex-dividend date is 4 June 2008.
5. The bank loans falling due within one year comprise Y8,230 million, CHF35.5 million and US$100 million (31 March
2007 - Y13,740 million and CHF35.5 million).
The bank loans falling due in more than one year comprise €73 million, Y8,500 million, US$30 million and CHF121
million drawn down under facilities which are repayable June 2009 and June 2010 (31 March 2007 - €73 million).
During the period bank loans of Y13,740 were repaid and bank loans of Y16,730 million, US$130 million and CHF121
million were drawn down.
6. The fair value of borrowings at 31 March 2008 was £491,372,000 (2007 - £336,735,000). Net asset value per share
(after deducting borrowings at fair value) was 651.4p (2007 - 607.1p).
2008 2007
Number Number
7. Share capital: Ordinary shares of 25p each
Allotted, called-up and fully paid 273,989,897 281,461,176
Treasury shares 10,356,279 2,885,000
The Company's authority permits it to hold shares bought back 'in treasury'. Such treasury shares may be
subsequently either sold for cash (at, or at a premium to, net asset value per ordinary share) or cancelled. In
the year to 31 March 2008 a total of 7,471,279 (2007 - 6,613,939) ordinary shares with a nominal value of
£1,868,000 (2007 - £1,654,000) were bought back at a total cost of £45,539,000 (2007 - £34,131,000). At 31
March 2008 the Company had authority to buy back a further 36,908,758 ordinary shares.
8. The financial information set out above does not constitute the Company's statutory accounts for the year ended
31 March 2008. The financial information for 2007 is derived from the statutory accounts for 2007 which have
been delivered to the Registrar of Companies. The Auditors have reported on the 2007 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 2008 are unaudited, however it is expected that the Auditors will issue an unqualified opinion. The
statutory accounts for 2008 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.
9. The Report and Accounts will be available on the Managers' website www.bailliegifford.com on or around 23 May
2008.
10. None of the views expressed in this document should be construed as advice to buy or sell a particular
investment.
This information is provided by RNS
The company news service from the London Stock Exchange
Monday, 20th May 2024
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