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Cairngorm B.S.InvTst (BPFU)

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Thursday 05 July, 2001

Cairngorm B.S.InvTst

Final Results

Cairngorm B.S. Inv Tst PLC
5 July 2001


                                Report & Accounts
                       for the year ended 31 March 2001 

Cairngorm No. l          Building Societies Investment Trust plc
                         Registered Number 162796) 
     
Cairngorm No. 2          Building Societies Investment Trust plc 
                         (Registered Number 162797) 
     
Cairngorm No. 3          Building Societies Investment Trust plc 
                         (Registered Number 162798) 
     
Cairngorm No. 4          Building Societies Investment Trust plc 
                         (Registered Number 162799) 
     
Cairngorm No. 5          Building Societies Investment Trust plc 
                         (Registered Number 162800) 
     
Cairngorm No. 6          Building Societies Investment Trust plc 
                         (Registered Number 162801) 

Cairngorm No. 7          Building Societies Investment Trust plc 
                         (Registered Number 162802) 
     
Cairngorm No. 8          Building Societies Investment Trust plc 
                         (Registered Number 162803) 
     
Cairngorm No. 9          Building Societies Investment Trust plc 
                         (Registered Number 162804) 
     
Cairngorm No. 10         Building Societies Investment Trust plc
                         (Registered Number 162805) 


Each of the above named investment trusts is a separate limited company
registered in Scotland, but otherwise they are to all intents and purposes
identical. Unless otherwise stated, the information contained in this Report
and Accounts (including the Notes on the Accounts) applies equally to each of
the ten Cairngorm Building Societies Investment Trusts (the 'Trusts') and
reference to the 'Company' shall be deemed to be a reference to each of them. 



                                   Financial Highlights   

                                                                              
                                  Year ended 31        Year ended 31   Change 
                                    March 2001           March 2000       (%) 
                                     (pence per           (pence per          
                               ordinary share)      ordinary share)  
         
  Net asset value                       139.43               128.27      8.70 

  Dividends - Interim                     1.50                 1.40           
  paid                                             


  Final proposed                          2.80                 3.20             
                        

  Total                                   4.30                 4.60    (6.52) 

  Earnings                                3.87                 4.93           

  Capital (loss)/gain                    10.28              (27.78)           

  Total return                           14.15              (22.85)           


                                        Dividends

An interim dividend of 1.5p net (2000 1.4p) per ordinary share was paid on 22
December 2000. A final dividend of 2.8p net (2000 3.2p) per ordinary share
has been proposed, payable on 10 August 2001 to shareholders on the register
on 20 July 2001. The Trust's shares will be quoted ex dividend on 18 July
2001. 



                                 Chairman's Statement
Results 

It is very pleasing for me to be able to report a good year for the trust.
Net asset value has grown from 128.27 pence per share to 139.43 pence per
share - an 8.7 per cent increase over the year to March 31. Our share price
has gained considerably with a 37.6 per cent increase in the period. Further
increases after the year-end saw the share price increase by a further 6
percent to the end of May. A more detailed analysis of performance is given
in the Investment manager's report. 

The Board continued to implement its policy of increasing the equity element
of the portfolio. At the start of the year 31% was invested in equities, by
the end of the year this was 42%. The equity holdings over the last year
have, in general, shown superior capital growth when compared to the holdings
in fixed interest but have yielded lower income. As a consequence the
directors are recommending a final dividend of 2.8 pence which will make the
total for 2001 4.3 pence (2000 4.6 pence). The Board has decided in future to
allocate 50% of management fees and interest paid to capital, to reflect the
Board's expectation of returns from the Company's investments over the long
term. This will allow the Board to pay a higher dividend in the future than
would otherwise have been the case. Some further increase in equity exposure
could be made without impairment to the dividend. It must be emphasised that
the move into equities is intended to enhance the total return for
shareholders over the medium term. 

Shareholder services 

Our Investment Manager, Blue Planet Investment Management, has introduced a
series of shareholder services, which I would commend to you. These include a
new low cost dealing facility to enable shareholders to buy and sell shares
and the new Blue Planet ISA facility which allows shareholders to take
advantage of the tax breaks offered by Individual Savings Accounts.  

Name Change 

During the last year our investment manager changed its name to Blue Planet
Investment Management Limited. This was to allow better brand awareness in
connection with an increased marketing effort in Europe where a new family of
OEICs is being launched. The Manager also intend to launch a new Life
Sciences Investment Trust using this brand.  

As the fund should benefit from improved brand awareness, the Directors feel
that it is appropriate to change the name of your fund to Blue Planet
Financials Growth and Income Investment Trust plc and a resolution to that
effect will be put to the Annual General Meeting. The Directors recommend
that you vote in favour of this resolution.  

ISA 

Shareholders may already be familiar with the tax advantages of ISAs. As a
service to shareholders who would like to take advantage of these
opportunities, Blue Planet has launched a series of ISA products. 

Low Cost Dealing Service 

In addition to our Savings Plan, which permits investors to buy shares
commission free, Blue Planet Investment Management have put together a low
cost dealing facility in conjunction with Stocktrade.  

Authority to purchase shares 

Purchasing their own shares is a method employed by some investment trusts to
help reduce discounts of share prices to underlying net asset values. Share
buy back powers have been used during the period. A total of 45,000 ordinary
shares were purchased for cancellation during the year. This utilised the
'buy back' powers conferred by last year's AGM. These purchases have been
beneficial to the share price and the net asset value per share.  
A resolution will be submitted at the Annual General Meeting that would
permit the Directors to make share repurchases where appropriate. The
Directors recommend that the authority for Share buy backs be renewed. 

Directors 

There were no changes in the composition of the Board in the year under
review.  
 

Outlook 

The trend of interest rates worldwide would appear to be downward. This may
last for some months, as the uncertainties of the impact of a slowdown in US
economic growth are felt worldwide. 

Your investment trust should benefit from the defensive nature of its
portfolio and we look forward to opportunities to further reduce the bond
exposure in favour of equities which should be the long-term benefit of the
net asset value of the Fund. 

Our investment managers have been instrumental in improving perceptions of
the trust. The share price has grown at a faster rate than the net asset
value over the last year. Nevertheless the share price still stands at an
attractive discount to net asset value of 22% at the end of May. With such an
encouraging outlook, I remain confident that the trust will see further
progress in the coming year. 

Finally, thank you for your continuing support and I look forward to
welcoming you to the AGM. 
 
 
 
 
 
Philip Court 
Chairman. 
4 July 2001 

                          Statement of Total Return
                     (incorporating the revenue account)  
                       for the year ended 31 March 2001 

                                                                              
                                         2001                            2000 
                  Revenue   Capital     Total   Revenue    Capital      Total 
                      (£)       (£)       (£)       (£)        (£)        (£) 
  Capital                                                                     
  gains/(losses)                                                              
  on                                                                          
  investments                                                                 

  Net realised          -    55,968    55,968         -   153,984    153,984  
  gains                                                                       

  Movement in                                                                 
  unrealised                                                                  
  gains/(losses)                                                              
  on                    -   105,308   105,308         -   (537,443)  (537,443)
  investments                                                                 

  Net capital           -   161,276   161,276        -    (383,459)  (383,459)
  gains/(losses)                                                              
  on                                                                          
  investments                                                                 

  Income from     144,897         -   144,897    181,398         -   181,398  
  investments                                                                 

  Other             7,579         -     7,579    2,815           -     2,815  
  interest                                                                    
  receivable                                                                  

  Gross revenue   152,476   161,276   313,752    184,213  (383,459)  (199,246)
  and capital                                                                 
  gains/(losses)                                                              
                                                                              
  Administrative  (49,034)  (7,836)   (56,870)  (47,904)  (7,619)     (55,523)
  expenses                                                                    

  Net return                                                                  
  before                                                                      
  interest                                                                    
  payable                                                                     
  and taxation    103,442   153,440   256,882    136,309  (391,078)  (254,769)
                                                                              
  Interest        (36,249)  (12,083)  (48,332)  (45,229)   (15,076)   (60,305)
  payable                                                                     

  Return on                                                                   
  ordinary                                                                    
  activities                                                                  
  before                                                                      
  taxation         67,193   141,357   208,550    91,080   (406,154)  (315,074)
                                                                              
  Taxation on     (12,039)    5,259   (6,780)   (20,126)     6,205    (13,921)
  return on                                                                   
  ordinary                                                                    
  activities                                                                  

  Return on                                                                   
  ordinary                                                                    
  activities                                                                  
  after                                                                       
  taxation         55,154   146,616   201,770    70,954   (399,949)  (328,995)
                                                                              
  Dividends                                                                   
  declared                                                                    

  Interim         (21,394)        -   (21,394)  (20,174)         -    (20,174)
  dividend of                                                                 
  1.5p paid                                                                   
  (2000 - 1.4p)                                                               

  Final           (39,096)        -   (39,096)  (46,113)         -    (46,113)
  dividend of                                                                 
  2.8p proposed                                                               
  (2000 - 3.2p)                                                               
                  (60,490)        -   (60,490)  (66,287)        -     (66,287)
                                                                              

  Transfer        (5,336)   146,616   141,280     4,667   (399,949)  (395,282)
  to/(from)                                                                   
  reserves                                                                    

  Return per        3.87p    10.28p    14.15p    4.93p     (27.78)p   (22.85)p
  ordinary                                                                    
  share - basic                                                               

  - diluted         3.87p    10.28p    14.15p    4.93p     (27.78)p   (22.85)p
   

                                                                           
                                   Balance Sheet
                                  at 31 March 2001 
                                         
                                                                               
                                               2001                      2000 
                                   (£)          (£)          (£)          (£) 
  Fixed assets                                                                

  Equity investments                      1,091,954                   772,461 

  Non - equity                            1,489,228                 1,737,623 
  investments                                                                 
                                          2,581,182                 2,510,084 

  Current assets                                                              

  Debtors                       49,167                    58,617              

  Cash at bank                 125,882                    94,942              

                               175,049                   153,559              

  Creditors: amounts         (809,354)                 (815,186)              
  falling due within one                                                      
  year                                                                        

  Net current liabilities                 (634,305)                 (661,627) 

  Net assets                              1,946,877                 1,848,457 

  Capital and reserves                                                        

  Called-up share capital                   139,628                   144,102 

  Share premium account                   1,166,787                 1,166,491 

  Other reserves                                                              

  Capital reserve -                         140,455                   142,267 
  realised                                                                    

  Capital reserve -                         411,906                   306,598 
  unrealised                                                                  

  Capital redemption                          4,500                         - 
  reserve                                                                     

  Warrant reserve                            63,784                    63,846 

  Revenue reserve                            19,817                    25,153 

  Ordinary shareholders'                  1,946,877                 1,848,457 
  funds                                                                       

  Net asset value per                       139.43p                   128.27p 
  ordinary share - basic                                                      

  Net asset value per                       133.08p                   123.84p 
  ordinary share -                                                            
  diluted                                                                     
                                         
                                         
  
 

                                  Cash Flow Statement
                              for the year ended 31 March 2001 
                                    

                                                                              
                                               2001                      2000 
                                    (£)         (£)          (£)          (£) 

  Operating activities                                                        

  Cash received from                        131,273                   158,629 
  investments                                                                 

  Interest received                           7,579                     3,261 

  Investment management                    (30,662)                  (34,538) 
  and secretarial fees                                                        
  paid                                                                        

  Cash paid to and on                       (2,700)                   (2,700) 
  behalf of Directors                                                         

  Other cash payments                      (24,252)                  (18,039) 

  Net cash inflow from                       81,238                   106,613 
  operating activities                                                        

  Servicing of finance                                                        

  Interest paid                            (46,313)                  (59,451) 

  Taxation                                                                    

  Tax recovered                              16,204                    32,900 

  Capital expenditure and                                                     
  financial investment                                                        

  Purchase of investments     (214,554)                (319,317)              

  Sale of investments           304,732                  592,262              

  Net cash inflow from                       90,178                   272,945 
  capital expenditure and                                                     
  financial investment                                                        

  Equity dividends paid                    (67,507)                  (66,183) 

  Financing                                                                   

  Purchase of own shares       (43,120)                        -              
  for cancellation                                                            

  Proceeds from share               260                    3,230              
  issue                                                                       

  Borrowings repaid                   -                (250,000)              

  Net cash outflow from                    (42,860)                 (246,770) 
  financing                                                                   

  Increase in cash                           30,940                    40,054 
                                              
NOTES: 
                                    
1     The financial information set out in the announcement does not
constitute the company's statutory accounts for the years ended 31 March 2001
or 2000. The financial information for the year ended 31 March 2000 is
derived from the statutory accounts for that year which have been delivered
to the Registrar of Companies. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under s237(2) or (3)
Companies Act 1985. The statutory accounts for the year ended 31 March 2001
will be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the company's annual general meeting. 

2.     Return per ordinary share 
                                   
                                                     2001          2000 

The return per ordinary share is based 
upon the following figures: 

Revenue return                                    £55,154       £70,954 

Capital return                                   £146,616     (£399,949) 

Weighted average of ordinary shares 
in issue during year 
- basic                                         1,426,399     1,439,943 

Weighted average of ordinary shares 
in issue during year 
- diluted                                       1,426,399     1,439,943 

The difference between the basic and diluted number of ordinary shares is
derived from the total number of warrants in issue multiplied by a factor
based on the average price of the ordinary shares in the year and the
exercise price of the warrants, as required by FRS 14. No dilution occurred
in the current or prior year as the warrant exercise price exceeded the
average market price of one share during the year.