Final Results

RNS Number : 8987R

Scottish Mortgage Inv Tst PLC

08 May 2009

 



 SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Scottish Mortgage announces final results for the year to 31 March 2009

Scottish Mortgage 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.

• During the 12 months to 31 March 2009 and in the context of a period of severe market dislocation, Scottish Mortgage's net asset value and share price fell by 41% against a decline of 23% for the FTSE All World Index.

• The pace and force of market events saw the Trust's share price almost halve between September and November 2008. The extent of the fall was exacerbated by gearing.

• Over five years to 31 March 2009, Scottish Mortgage's share price total return (including dividends) was 27% compared to 16% in the FTSE All World Index.

• During the last six months to 30 April 2009, Scottish Mortgage's share price has recovered strongly, increasing by 25% against a gain of 5% in the FTSE All World Index. 

• The Trust increased its underlying dividend by 4.9% year-on-year maintaining a real increase ahead of inflation (RPI was minus 0.4%) for the 27th year in succession. In addition there was a non-recurring element in the dividend of 1.5p per share representing the repayment of past years' recovered VAT.  

• The continued growth and increasing importance of non Western economies, especially China, represent a major opportunity for investors today.

2009 is the Centenary of Scottish Mortgage and the Chairman, Sir Donald MacKay, said:

'During the autumn of 2008 many stocks within Scottish Mortgage's portfolio were sold off indiscriminately by markets as they were gripped by fear and panic. Since then the Trust has carefully reviewed its holdings and has concluded that many companies now enjoy strengthened relative positions and will survive this severe shock in some cases ending up in positions of market dominance'

'The continued growth and increasing importance of non-Western economies, especially China, represent a major opportunity for shareholders. More generally the identification and assessment of companies from around the world that are capable of returning long term earnings growth remain the Trust's strategic priority. In short, this strategy which has informed the Trust's investment policy over the past five years is expected to serve us well in the future.'

8 May 2009

For further information please contact:

James Budden, Baillie Gifford & Co      07780 704404 or 0131 275 2816

Roland Cross, Broadgate                      07831 401309 or 0207 776 0512 

Scottish Mortgage is managed by Baillie Gifford & Co, the Edinburgh based fund management group with over £45 billion under management and advice as at 7 May 2009.

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 £1,398 million (before deduction of debentures, long and short term borrowings of £318 million).

Past performance is not a guide to 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. You can find up to date performance information about Scottish Mortgage on the Baillie Gifford website at www.scottishmortgageit.com.

- ends -

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Chairman's Statement

This has been a very difficult year for equity markets and Scottish Mortgage: net asset value per share and the share price both fell by 41% while the FTSE All World Index fell by 23% in sterling terms over the period. However, earnings were higher and the dividend has been increased. The pace and force of market events was extraordinary even in the context of Scottish Mortgage's hundred year history. The identification and assessment of companies from around the world that are capable of returning long term earnings growth is the strategic priority especially during periods of turbulent markets and economic crisis.  

A year ago it was evident that confidence within the Western financial system was failing in an alarming way but the crisis that followed was of an unexpected magnitude and historic in scale. Confidence in financial markets evaporated in a brutal fashion after the collapse of Lehman Brothers in September. The consequent dramatic and destructive impact on the real economy was global and not limited to the areas of operation of the mainly Western banks and institutions that had failed.  

While our portfolio had only a modest level of investment in Western financial companies, the large holdings which gave exposure to the long term trend of global growth suffered dramatic falls in value in the months between September and November. This, and the way in which many other holdings in the portfolio were marked down in an often apparently indiscriminate way, explains the fall in net asset value over the year. The extent of the fall was exacerbated by the level of gearing. 

Outside the three month period described, market conditions were relatively normal and this was reflected in less volatile and better absolute and relative performance during those months. However, markets gripped by fear and panic do not take into account a sensible, considered and rational long term view. Although the short term consequences may sometimes prove painful, the Board supports the Managers in a strategy that sticks to a long term view and focuses on the prospects of individual companies. The portfolio does not attempt to match the index and there will be periods of marked underperformance as well as outperformance as was the case during part of last year. As of 31 March 2009, the five year share price total return (capital and dividends) was 27% and the net asset value total return, 12%. By way of comparison, the FTSE All World Index total return over the same period has been 16%. While a period of high volatility will be natural in the aftermath of a shock such as the recent one, an improvement in the long term trend and an eventual return to economic normality can be expected. It is interesting to note that over six months to the end of April 2009 the share price rose by 82p, a 25% increase (over the same short period the benchmark index rose 5%). 

The Managers carefully reviewed the portfolio in the second half of the financial year in light of the rapid change in markets and the Board then made a strategic assessment of the impact of events. These are continuing processes but the broad conclusion to date is that the overall strategy to invest in equities for the long term on a global basis is appropriate given the increasingly global nature of economic activity and trade. A central strategic thesis that countries outside of the Western economic block will become increasingly, and possibly rapidly, influential appears strengthened not diminished. The drop in economic activity will obviously affect company earnings, especially this year, but the deterioration in operating conditions is not universal. While there are some companies in the portfolio where operating conditions have deteriorated significantly, a large number of the holdings continue to operate effectively and in many cases enjoy strengthened relative positions. Also, many financially sound companies are now trading on historically attractive valuations; those that survive this severe shock are likely to enjoy dominant positions for some years to come. The task of the Managers is to identify such companies.  

Gearing

As markets fell great care was taken to manage the level of gearing. This was achieved by not renewing some borrowing facilities when they expired and also by the early repayment of other bank borrowings. While it is painful to sell investments in such conditions, it was important to ensure in those highly unpredictable markets that gearing was not allowed to rise beyond agreed levels. At the financial year end, total assets were £1,398m and borrowings were £318m. Investments in equities totalled £1,283m. Gearing magnifies gains in rising markets and, conversely, losses in falling markets. Gearing and the associated strategic issues are discussed by the Board and Managers on a regular basis.

Earnings and Dividend

Earnings per share were 12.7p (9.8p in the previous year) and included an element of past years' recovered VAT and associated interest of 1.5p per share. Excluding the VAT repayment, underlying earnings were therefore 14% higher which is a noteworthy achievement in the context of wider markets and one which provides confidence in the underlying investments.  

A final dividend of 5.5p is proposed which will give a total of 12.3p for the year, an increase of 19% on the previous year's total of 10.3p. Stripping out the non-recurring VAT repayment, the underlying rate of dividend increase is 4.9% and well ahead of the 0.4% decrease in the Retail Price Index over the same period.  

The Board is firmly committed to returning an increasing dividend to shareholders and in the event of a temporary shortfall in earnings, the revenue reserve is available for this very purpose. Revenue reserves stand at 21p per share of which over 6.5p has been accumulated since 2000. 

The Centenary AGM

This year's AGM will be the Company's 100th and will be held in The Merchants' Hall, 22 Hanover Street, Edinburgh on Thursday 25 June 2009 at 4pm. At the meeting, the Managers will give a short presentation on the investments after which refreshments will be served. I hope that you will consider attending. Although the year just past has been extremely difficult, the Board and Managers are conscious that a 100 year record is significant as it underlines the enduring aims and encouraging resilience of the Trust's business. I am happy to report that a history of Scottish Mortgage has been commissioned and will be sent to all shareholders this year. 

The Board

During the year two new Directors of a very high calibre with diverse and extremely relevant experience were welcomed to the Board: Professor John Kay and Fiona McBain. Geoff Ball who joined the Board in 1983 will retire on the day of the AGM. The Company has been fortunate in its association with Mr Ball and as the current Chairman I would like to thank Geoff for his single-hearted commitment and outstandingly helpful contribution to Scottish Mortgage over the past twenty five years. 

Outlook

There is no denying that the outlook is uncertain, even more so than in an average year. As ever, within a wide range, many different outcomes are possible.  

Ironically, the crisis can yield opportunities: the financial impact has been highly destructive but it may yield a simpler, and healthier, structural model for banking and finance. Above all, the continued growth and increasing importance, and even dominance, of non-Western economies, especially China, represent a major opportunity for shareholders today. By historic coincidence, this echoes the prospect facing initial Scottish Mortgage subscribers in 1909; then it was the expansion of America that was to fuel an ensuing span of long term economic growth and technological advancement. Today, after the passage of 100 years, it is still the identification and subsequent performance of individual companies and the success of their management, or otherwise, that will dictate long term shareholder returns. 

Sir Donald MacKay

Chairman

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

The following is the unaudited preliminary statement for the year to 31 March 2009 which was approved by the Board on 7 May 2009. The Board of Scottish Mortgage Investment Trust PLC is recommending to the Annual General Meeting of the Company to be held on 25 June 2009 the payment of a final dividend of 5.50p (5.30p last year) per ordinary share making 12.30p (10.30p last year) for the year ended 31 March 2009. Both the revenue earnings and the dividend for the year ended 31 March 2009 include a non-recurring 1.50p per share from the reimbursement of previous years' VAT and associated interest thereon. 

INCOME STATEMENT

(unaudited)

	For the year ended 31 March 2009				For the year ended 31 March 2008
	Revenue £'000	Capital £'000	Total £'000		Revenue £'000	Capital £'000	Total  £'000
(Losses)/gains on investments	-	(691,354)	(691,354)		-	159,406	159,406
Currency losses	-	(50,819)	(50,819)		-	(36,613)	(36,613)
Income (note 2)	57,470	-	57,470		49,575	-	49,575
Investment management fee	(2,821)	(2,821)	(5,642)		(3,875)	(3,875)	(7,750)
Recovered VAT (note 3)	3,850	1,816	5,666		-	-	-
Other administrative expenses	(1,885)	-	(1,885)		(2,068)	-	(2,068)
Net return before finance costs and taxation	56,614	(743,178)	(686,564)		43,632	118,918	162,550
Finance costs of borrowings	(10,786)	(11,548)	(22,334)		(10,025)	(10,025)	(20,050)
Net return on ordinary activities before taxation	45,828	(754,726)	(708,898)		33,607	108,893	142,500
Tax on ordinary activities	(11,257)	7,860	(3,397)		(6,564)	3,908	(2,656)
Net return on ordinary activities after taxation	34,571	(746,866)	(712,295)		27,043	112,801	139,844
Net return per ordinary share (note 4)	12.67p	(273.74p)	(261.07p)		9.79p	40.82p	50.61p

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. No operations were acquired or discontinued during the year.

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  2009	At 31 March 2008
	£'000	£'000
FIXED ASSETS
Investments held at fair value through profit or loss	1,361,987	2,259,474
CURRENT ASSETS
Debtors	9,073	20,026
Cash and short term deposits	35,774	13,030
	44,847	33,056
CREDITORS
Amounts falling due within one year (note 6)	(77,631)	(126,435)
NET CURRENT LIABILITIES	(32,784)	(93,379)
TOTAL ASSETS LESS CURRENT LIABILITIES	1,329,203	2,166,095
CREDITORS
Amounts falling due after more than one year (note 6)	(248,866)	(329,651)
	1,080,337	1,836,444
CAPITAL AND RESERVES
Called-up share capital	71,086	68,497
Capital redemption reserve	19,094	21,683
Capital reserve - realised	974,657	1,712,759
Capital reserve - unrealised	(55,955)	(36,430)
Revenue reserve	71,455	69,935
EQUITY SHAREHOLDERS' FUNDS	1,080,337	1,836,444

NET ASSET VALUE PER ORDINARY SHARE	383.8p	651.4p
(After deducting borrowings at fair value) (note 7)
NET ASSET VALUE PER ORDINARY SHARE	399.3p	672.5p
(After deducting borrowings at par)
ORDINARY SHARES (note 8)	272,089,897	273,989,897

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited)

For the year ended 31 March 2009

	Share capital £'000	Capital redemption reserve £'000	Capital reserve - realised £'000	Capital reserve - unrealised £'000	Revenue reserve £'000	Total shareholders' funds £'000
Shareholders' funds at  1 April 2008	68,497	21,683	1,712,759	(36,430)	69,935	1,836,444
Adjustment to reserves*	2,589	(2,589)	-	-	-	-
Net return on ordinary activities after taxation	-	-	(727,341)	(19,525)	34,571	(712,295)
Shares bought back †	-	-	(10,761)	-	-	(10,761)
Dividends paid during the year#	-	-	-	-	(33,051)	(33,051)
Shareholders' funds at 31 March 2009	71,086	19,094	974,657	(55,955)	71,455	1,080,337

For the year ended 31 March 2008

	Share capital £'000	Capital redemption reserve £'000	Capital reserve - realised £'000	Capital reserve - unrealised £'000	Revenue reserve £'000	Total shareholders' funds £'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

*    The adjustment to the share capital and capital redemption reserve is to reflect that when shares have been bought back in prior years and held in treasury they should not have been treated as cancelled.

**    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.

†  See note 8

#  See note 5

 SCOTTISH MORTGAGE INVESTMENT TRUST PLC

SUMMARISED CASH FLOW STATEMENT (unaudited)
	For the year ended 31 March 2009		For the year ended 31 March 2008
	£'000	£'000	£'000	£'000
Net cash inflow from operating Activities		56,685		36,358
NET CASH OUTFLOW FROM SERVICING OF FINANCE		(21,862)		(18,708)
TAXATION
Income tax paid	(19)		(10)
Overseas tax incurred	(3,381)		(2,560)
TOTAL TAX PAID		(3,400)		(2,570)
FINANCIAL INVESTMENT
Acquisitions of investments	(387,778)		(783,355)
Disposals of investments	595,292		707,926
Realised currency profit/(loss)	5,131		(1,051)
Net cash INFLOW/(outflow) from financial investment		212,645		(76,480)
EQUITY DIVIDENDS PAID (note 5)		(33,051)		(27,726)
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING		211,017		(89,126)
FINANCING
Shares bought back	(10,761)		(45,539)
Bank loans repaid	(227,492)		(72,480)
Bank loans drawn down	49,980		201,010
NET CASH (OUTFLOW)/INFLOW FROM FINANCING		(188,273)		82,991
INCREASE/(DECREASE) IN CASH		22,744		(6,135)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Increase/(decrease) in cash in the period		22,744		(6,135)
Decrease/(increase) in bank loans		177,512		(128,530)
Exchange movement on bank loans		(55,951)		(35,562)
Other non-cash changes		133		115
MOVEMENT IN NET DEBT IN THE YEAR		144,438		(170,112)
NET DEBT AT 1 APRIL		(426,597)		(256,485)
NET DEBT AT 31 MARCH		(282,159)		(426,597)
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		(686,564)		162,550
Losses/(gains) on investments - securities		691,354		(159,406)
Currency losses		50,820		36,613
Amortisation of fixed income book cost		(103)		43
Decrease in accrued income		1,058		635
(Increase) in debtors		(491)		(113)
Increase /(decrease) in creditors		611		(3,964)
NET CASH INFLOW FROM OPERATING ACTIVITIES		56,685		36,358

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

DISTRIBUTION OF ASSETS

 (unaudited)

		At 31 March 2009 %			At 31 March 2008 %
Equities:	United Kingdom	9.0			11.0
	Continental Europe	23.6			28.5
	North America	28.1			24.4
	Japan	5.7			3.9
	Asia Pacific	11.0			8.8
	Emerging Markets	14.4			18.8
Total equities		91.8			95.4
Sterling denominated bonds		0.3			0.8
Euro denominated bonds		0.2			0.2
US$ denominated bonds		-			0.1
Brazilian real denominated bonds		5.1			2.8
Net liquid assets		2.6			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 2009 (unaudited)
Name	Business	Fair value 31 March 2009 £'000	% of total assets	Performance †		Contribution to absolute performance %	Fair  value 31 March 2008 £'000
				Absolute %	Relative %
Petrobras	Oil producer	87,056	6.2	(16.9)	4.4	(0.4)	96,399
Amazon.com	Online retailer	62,512	4.5	42.6	79.1	3.2	61,714
Atlas Copco	Engineering	60,044	4.3	(37.8)	(21.9)	(1.0)	99,392
Nintendo	Games consoles and    software	49,315	3.5	(19.8)	0.7	(0.8)	15,589
China Mobile	Mobile telecommunications	47,424	3.4	(17.1)	4.1	0.1	46,371
Google	Online search engine	44,751	3.2	9.1	37.0	0.2	14,958
CVRD (or Vale)	Iron ore and nickel mining	41,632	3.0	(44.6)	(30.4)	(1.0)	101,078
Sandvik	Engineering	37,111	2.7	(52.8)	(40.7)	(2.3)	81,970
Banco Santander	Banking	34,179	2.4	(46.8)	(33.2)	(2.2)	11,913
Gazprom	Gas production and    distribution	32,089	2.3	(59.7)	(49.4)	(2.9)	85,750
Porsche	Automobiles	31,918	2.3	(62.6)	(53.0)	(2.9)	90,222
Walgreen	Pharmacy chain	31,826	2.3	(4.8)	19.6	0.2	24,116
Vestas   Windsystems	Wind power	31,423	2.3	(44.6)	(30.4)	(2.6)	77,204
Schlumberger	Oil services	28,276	2.0	(34.3)	(17.5)	(1.3)	43,723
Progressive Ohio	Property and casualty    insurance	27,640	2.0	15.6	45.2	0.2	16,969
Berkshire    Hathaway	Insurance	27,523	2.0	(12.6)	9.8	(0.4)	31,437
Deere	Farm machinery	27,478	2.0	(42.3)	(27.5)	(0.6)	44,777
First Solar	Solar energy technology	25,693	1.8	(20.6)	(0.2)	(0.1)	26,061
Canon	Printers, copiers and cameras	24,990	1.8	(12.8)	9.5	(0.8)	52,407
Taiwan    Semiconductor     Manufacturing	Semiconductor     manufacturer	22,523	1.6	25.7	57.8	0.7	22,746
Standard    Chartered	Banking	20,617	1.5	(38.7)	(23.0)	(0.6)	44,238
Brown-Forman	Wine and spirits producer	20,254	1.4	3.6	30.1	(0.1)	19,949
BASF	Chemicals	18,777	1.3	(35.6)	(19.1)	(0.4)	22,994
PPR	Luxury goods producer and    retailer	18,132	1.3	(38.3)	(22.5)	(0.2)	17,283
ABB	Electronic and electrical equipment	18,094	1.3	(27.5)	(8.9)	(0.2)	12,976
Reed Elsevier	Publisher	17,171	1.2	(19.5)	1.1	(0.3)	31,629
SAP	Business software	16,876	1.2	(0.3)	25.2	(0.1)	17,138
Kroger	Food retailer	15,943	1.1	0.5*	1.6*	-	-
UBS	Banking	15,402	1.1	(49.6)	(36.8)	(1.6)	27,449
Novozymes	Enzyme manufacturer	14,992	1.1	7.4	34.9	0.1	10,856
		951,661	68.1				1,249,308

†  Absolute and relative performance has been calculated on a total return basis over the period 1 April 2008 to
  31 March 2009. 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 not a guide to future performance.

   SCOTTISH MORTGAGE INVESTMENT TRUST PLC

NOTES

1.	The financial statements for the year to 31 March 2009 have been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 31 March 2008. 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.
								2009											2008
								£'000											£'000
2.	Income
	Income from investments and interest receivable							56,890											49,505
	Other income							580											70
								57,470											49,575
3.	Recovered VAT
	In 2007 the European Court of Justice ruled that investment trust management fees should be exempt from VAT. Since then HMRC has accepted the Managers' repayment claims for the periods from 1990 to 1996 and from 2000 to 2007. During the period the Company received a reimbursement of £5,666,000 which has been allocated to revenue and capital in the manner in which it had originally been charged, plus £1,910,000 of interest thereon.
							2009 £'000									2008 £'000
4.	Net return per ordinary share
	Revenue return						34,571									27,043
	Capital return						(746,866)									112,801
	Total return						(712,295)									139,844
	Weighted average number of ordinary shares						272,833,733									276,364,832
	Net return per ordinary share figures are based on the above totals of revenue and capital and the weighted average number of ordinary shares during each period. There are no dilutive or potentially dilutive shares.
		2009				2008					2009 £'000							2008 £'000
5.	Ordinary Dividends
	Amounts recognised as distributions in the period:
	Previous year's final (paid 2 July 2008)	5.30p				5.00p					14,521							13,984
	Interim (paid 28 November 2008)	6.80p				5.00p					18,530							13,742
		12.10p				10.00p					33,051							27,726
	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 £34,571,000 (2008- £27,043,000).

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

NOTES (Ctd)

		2009			2008					2009 £'000						2008 £'000
5.	Ordinary Dividends (Ctd)
	Dividends paid and proposed in the period:
	Interim dividend per ordinary share (paid 28 November 2008)	6.80p			5.00p					18,530						13,742
	Proposed final dividend per ordinary share (payable 1 July 2009)	5.50p			5.30p					14,965						14,521
	Adjustment to the previous year's final dividend re shares bought back									-						(89)
		12.30p			10.30p					33,495						28,174
	† The interim dividend includes a non-recurring 1.5p per share.
	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 1 July 2009 to all shareholders on the register at the close of business on 5 June 2009. The ex-dividend date is 3 June 2009.
6.	The bank loans falling due within one year comprise US$99 million (2008 - ¥8,230 million, CHF35.5 million and US$100 million).  The bank loans falling due in more than one year comprise ¥8,500 million and CHF60.5 million drawn down under a facility which is repayable June 2010 (2008 - €73 million, ¥8,500 million, US$30 million and CHF121 million repayable June 2009 and June 2010).  During the year bank loans of ¥8,230 million, CHF 35.5million, CHF 60.5million, US$100 million, US$30 million and €73 million were repaid and a bank loan of US$99 million drawn down.
7.	The fair value of borrowings at 31 March 2009 was £353,959,000 (2008 - £491,372,000). Net asset value per share (after deducting borrowings at fair value) was 383.8p (2008 - 651.4p).
								2009 Number									2008   Number
8.	Share capital: Ordinary shares of 25p each
	Allotted, called-up and fully paid					272,089,897									273,989,897
	Treasury shares					12,256,279									10,356,279
	Total					284,346,176									284,346,176
	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 2009 a total of 1,900,000 (2008 - 7,471,279) ordinary shares with a nominal value of £475,000 (2008 - £1,868,000) were bought back at a total cost of £10,761,000 (2008 - £45,539,000) and held in treasury. At 31 March 2009 the Company had authority to buy back a further 40,021,185 ordinary shares.

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

NOTES (Ctd)

9.	The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 March 2009. The financial information for 2008 is derived from the statutory accounts for 2008 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2008 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 2009 are unaudited, however it is expected that the Auditors will issue an unqualified opinion. The statutory accounts for 2009 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.
10.	The Report and Accounts will be available on the Managers' website www.scottishmortgageit.com on or around 22 May 2009.
11.	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

 

END

 

 

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