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Murray Intnl Trust (MYI)

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Tuesday 08 August, 2006

Murray Intnl Trust

Interim Results

Murray International Trust PLC
08 August 2006

MURRAY INTERNATIONAL TRUST PLC


INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006



The Directors of Murray International Trust PLC report the unaudited results of
the company for the six months ended 30 June 2006.


•  Net Asset Value Total Return, with net income reinvested, for the 
   six months ended 30 June 2006 was 2.5% compared with a return of 1.2% on the
   composite benchmark.

•  The Board intends to recommend a final dividend of not less than
   6.65p in respect of the year ending 31 December 2006, payable in May 2007.

•  The discount at which the shares traded to their Net Asset Value contracted 
   slightly during the six months from 5.9% at 31 December 2005 to 5.5%
   at 30 June 2006.

•  Equity asset allocation remains overweight in high-growth Asian and
   Emerging Markets and underweight in developed markets such as the UK and 
   United States.


Background

Financial markets struggled to make much progress over the past six months.  The
optimism that led to steady upward progression through the early part of the
year dissipated during the second quarter as investors became increasingly
concerned about the future path of interest rates and corporate earnings.  As
usual, across the global spectrum, the response of equity markets to rising risk
aversion was not uniform in magnitude.  Over the whole period in sterling terms,
the most notable returns came from Continental Europe, the UK and Brazil, up
6.3%, 5.9% and 11.5% respectively.  Conversely, currency weakness in the US
dollar and the Yen against Sterling compounded negative returns from the United
States and Japan, down 4.6% and 5.3% respectively.  Asia ex Japan in aggregate
was virtually flat over the period, although this masked some divergent returns
at the individual country level.



Performance

The Net Asset Value total return, with net income reinvested for the six months
to 30 June 2006 was 2.5% compared with a return of 1.2% on the composite
benchmark (40% of the FTSE World-UK and 60% of the FTSE World ex UK Indices).



Asset allocation towards equities was positive for the period.  The negative
effect of being overweight in Japan was completely offset by the positive impact
of being underweight in the USA.  Relative asset allocations towards the UK and
Europe had virtually no overall impact.  The aggregate impact of being
overweight in Asia was marginally negative, the strength of developed Asian
markets such as Hong Kong and Singapore being offset by weakness in emerging
Asian markets such as India, Korea and Taiwan.  Not for the first time in recent
years, it was the overweight exposure to Latin America that accounted for the
majority of relative outperformance.



Dividends

At last year's Annual General Meeting shareholders approved three interim
dividends of 3.80p per share in respect of the year ending 31 December 2006,
payable on 14 August and 15 November 2006, and 14 February 2007.  As indicated
at the year end, the Board intends to recommend that the final dividend in
respect of the year ending 31 December 2006, payable in May 2007, will not be
less than 6.65p.



Outlook

The virtually flat six month return from global equity markets contradicts the
general perception that the period was characterised by an overall 'stock market
correction'.  What was deflated, and encouragingly so, was a degree of
complacency that had been building up in equity markets over the past eighteen
months.



Economic policies, required to resolve some of the long-standing imbalances
prevalent in the United States and the UK, are unlikely to be pleasant but
expectations should adjust accordingly, hopefully without too much pain to
respective equity markets.  Once markets have fully digested the currently
prevailing negative economic and geo-political sentiment and extended their
outlook into next year, the gloom should lift.  Elsewhere in the World, the
outlook still looks bright.  Countries that have been financing the United
States twin deficits, such as Japan, India, China and Brazil, remain in a
structurally strong position which will enable constant pro-growth domestic
economic policies to provide the platform for solid earnings and dividend growth
at the corporate level.  These are the types of opportunity that will continue
to be capitalised on by your Company through investment in high quality
companies where valuations relative to growth prospects are the most attractive.




Income Statement
                                                                                Six months ended
                                                                                  30 June 2006
                                                                                   (unaudited)
                                                                        Revenue           Capital        Total
                                                                          £'000             £'000        £'000
Gains on investments                                                          -             6,124        6,124

Income from investments                                                  13,794                 -       13,794
Other income                                                                 35                 -           35
Investment management fees                                                (437)           (1,020)      (1,457)
Performance fees                                                              -             (477)        (477)
Other expenses                                                            (617)                 -        (617)
Currency losses                                                               -           (1,884)      (1,884)
                                                                        _______           _______      _______
Net return before finance costs and taxation                             12,775             2,743       15,518

Finance costs of borrowing                                                (311)             (726)      (1,037)
                                                                        _______           _______      _______
Return on ordinary activities before tax                                 12,464             2,017       14,481

Tax on ordinary activities                                              (2,473)             1,567        (906)
                                                                        _______           _______      _______
Return attributable to equity Shareholders                                9,991             3,584       13,575
                                                                        _______           _______      _______

Return per Ordinary share (pence)                                          11.5               4.1         15.6
Return per Ordinary share assuming full                                 _______           _______      _______
conversion of the B Ordinary shares (pence)                                11.4               4.1         15.5
                                                                        _______           _______      _______


The total column of the statement represents the profit and loss 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.

The Company has no other gains or losses other than those recognised in the
Income Statement above.


Ordinary dividends on equity shares (£'000)                              15,623                 -        15,623
                                                                        _______           _______       _______







Income Statement
                                                                                Six months
                                                                            ended 30 June 2005
                                                                               (unaudited)
                                                                    Revenue            Capital         Total
                                                                      £'000              £'000         £'000
                                                                                         
Gains on investments                                                      -             33,024        33,024

Income from investments                                              12,170                  -        12,170
Other income                                                             63                  -            63
Investment management fees                                            (374)              (872)       (1,246)
Performance fees                                                          -              (562)         (562)
Other expenses                                                        (513)                  -         (513)
Currency losses                                                           -            (1,999)       (1,999)
                                                                    _______            _______       _______
Net return before finance costs and taxation                         11,346             29,591        40,937

Finance costs of borrowing                                            (375)              (875)       (1,250)
                                                                    _______            _______       _______
Return on ordinary activities before tax                             10,971             28,716        39,687

Tax on ordinary activities                                          (2,278)              1,563         (715)
                                                                    _______            _______       _______
Return attributable to equity Shareholders                            8,693             30,279        38,972
                                                                    _______            _______       _______

Return per Ordinary share (pence)                                      10.0               35.0          45.0
                                                                    _______            _______       _______
Return per Ordinary share assuming full
conversion of the B Ordinary shares (pence)                             9.9               34.6          44.5
                                                                    _______            _______       _______


The total column of the statement represents the profit and loss 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.

The Company has no other gains or losses other than those recognised in the
Income Statement above.


Ordinary dividends on equity shares (£'000)                         14,364                   -        14,364
                                                                   _______             _______       _______







Income Statement                                                                   Year ended
                                                                                31 December 2005    
                                                                                     (audited)
                                                                     Revenue           Capital        Total
                                                                      £'000              £'000        £'000  
                                                                                        
Gains on investments                                                       -           116,018      116,018

Income from investments                                               21,792                 -       21,792
Other income                                                             130                 -          130
Investment management fees                                             (771)           (1,798)      (2,569)
Performance fees                                                           -           (2,374)      (2,374)
Other expenses                                                       (1,097)                 -      (1,097)
Currency losses                                                            -           (3,562)      (3,562)
                                                                     _______           _______      _______
Net return before finance costs and taxation                          20,054           108,284      128,338

Finance costs of borrowing                                             (744)           (1,735)      (2,479)
                                                                     _______           _______      _______
Return on ordinary activities before tax                              19,310           106,549      125,859

Tax on ordinary activities                                           (4,035)             2,844      (1,191)
                                                                     _______           _______      _______
Return attributable to equity Shareholders                            15,275           109,393      124,668
                                                                     _______           _______      _______

Return per Ordinary share (pence)                                       17.7             126.4        144.1
                                                                     _______           _______      _______
Return per Ordinary share assuming full
conversion of the B Ordinary shares (pence)                             17.4             124.8        142.2
                                                                     _______           _______      _______


The total column of the statement represents the profit and loss 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.

The Company has no other gains or losses other than those recognised in the
Income Statement above.


Ordinary dividends on equity shares (£'000)                           14,357                  -        14,357
                                                                     _______            _______       _______





Balance Sheet
                                                                    As at             As at                As at
                                                             30 June 2006      30 June 2005     31 December 2005
                                                              (unaudited)       (unaudited)            (audited)
                                                                    £'000             £'000                £'000
Fixed assets
Investments at fair value through profit or loss                  609,231           541,867              603,103
Current assets
Debtors                                                             4,637             4,593                4,270
Cash and short-term deposits                                          998             5,200                6,816
                                                                  _______           _______              _______
                                                                    5,635             9,793               11,086
                                                                  _______           _______              _______
Creditors: amounts falling due within one year
Bank loans                                                              -           (8,056)              (7,896)
Other creditors                                                  (11,821)          (27,921)              (5,007)
                                                                  _______           _______              _______
                                                                 (11,821)          (35,977)             (12,903)
                                                                  _______           _______              _______
Net current liabilities                                           (6,186)          (26,184)              (1,817)
                                                                  _______           _______              _______
Total assets less current liabilities                             603,045           515,683              601,286
Creditors: amounts falling due after more than one year
Bank loans                                                       (79,423)          (76,385)             (74,907)
Other creditors                                                   (2,037)           (1,369)              (2,746)
                                                                  _______           _______              _______
                                                                 (81,460)          (77,754)             (77,653)
                                                                  _______           _______              _______
Net assets                                                        521,585           437,929              523,633
                                                                  _______           _______              _______

Capital and reserves
Equity Shareholders' interests:
Called-up share capital                                            21,919            21,911               21,911
Share premium account                                                  23                23                   23
Capital redemption reserve                                          8,230             8,230                8,230
Capital reserve - realised                                        299,758           286,072              286,597
Capital reserve - unrealised                                      165,142            96,137              174,727
Revenue reserve                                                    26,513            25,556               32,145
                                                                  _______           _______              _______
Equity Shareholders' funds                                        521,585           437,929              523,633
                                                                  _______           _______              _______
Net Asset Value per Ordinary and 'B' Ordinary share                 594.9             499.7                597.5
(pence)                                                           _______           _______              _______




Reconciliation of Movements in Shareholders' Funds
As at 30 June 2006


Six months ended 30 June 2006
(unaudited)
                                                   Share      Capital    Capital      Capital
                                        Share    premium   redemption  reserve -    reserve -   Revenue
                                      capital    account      reserve   realised   unrealised   reserve     Total
                                        £'000      £'000        £'000      £'000        £'000     £'000     £'000
Balance at 31 December 2005            21,911         23        8,230    286,597      174,727    32,145   523,633
Return on ordinary activities after         -          -            -     13,169      (9,585)     9,991    13,575
taxation
Dividends on Ordinary shares                -          -            -          -            -  (15,623)  (15,623)
Issue of new shares                         8          -            -        (8)            -         -         -
                                      _______    _______      _______    _______      _______   _______    ______
Balance at 30 June 2006                21,919         23        8,230    299,758      165,142    26,513   521,585
                                      _______    _______      _______    _______      _______   _______    ______
Six months ended 30 June 2005
(unaudited)
                                                   Share      Capital    Capital      Capital
                                        Share    premium   redemption  reserve -    reserve -   Revenue
                                      capital    account      reserve   realised   unrealised   reserve     Total
                                        £'000      £'000        £'000      £'000        £'000     £'000     £'000
Balance at 31 December 2004            21,901         23        8,230    284,112       67,829    31,227   413,322
Return on ordinary activities after         -          -            -      1,970       28,308     8,693    38,971
taxation
Dividends on Ordinary shares                -          -            -          -            -  (14,364)  (14,364)
Issue of new shares                        10          -            -       (10)            -         -         -
                                      _______    _______      _______    _______      _______   _______    ______
Balance at 30 June 2005                21,911         23        8,230    286,072       96,137    25,556   437,929
                                      _______    _______      _______    _______      _______   _______    ______
Year ended 31 December 2005
(audited)
                                                   Share      Capital    Capital      Capital
                                        Share    premium   redemption  reserve -    reserve -   Revenue
                                      capital    account      reserve   realised   unrealised   reserve     Total
                                        £'000      £'000        £'000      £'000        £'000     £'000     £'000
Balance at 31 December 2004            21,901         23        8,230    284,112       67,829    31,227   413,322
Return on ordinary activities after         -          -            -      2,495      106,898    15,275   124,668
taxation
Dividends on Ordinary shares                -          -            -          -            -  (14,357)  (14,357)
Issue of new shares                        10          -            -       (10)            -         -         -
                                      _______    _______      _______    _______      _______   _______    ______
Balance at 31 December 2005            21,911         23        8,230    286,597      174,727    32,145   523,633
                                      _______    _______      _______    _______      _______   _______    ______



Cash Flow Statement                                                                                   
                                                       Six months ended  Six months ended           Year ended          
                                                           30 June 2006      30 June 2005     31 December 2005
                                                            (unaudited)       (unaudited)            (audited)
                                                                  £'000             £'000                £'000

Net return before finance costs and taxation                     15,518            40,937              128,338
Adjustments for:
Realised gains on investments                                  (17,470)           (4,716)              (5,822)
Unrealised losses/ (gains) on investments                        11,346          (28,308)            (110,196)
Amortisation of fixed interest securities                           265               335                  612
Overseas tax suffered                                           (1,048)             (847)              (1,291)
(Increase)/decrease in accrued income                           (1,252)             (798)                  170
Decrease/(increase) in other debtors                                 28              (62)                   20
(Increase)/decrease in other creditors                            (557)              (15)                1,933
Effect of foreign exchange losses                                 1,884             1,999                3,562
                                                          _____________     _____________        _____________
Net cash inflow from operating activities                         8,714             8,525               17,326
Returns on investment and servicing of finance
Interest paid                                                   (1,170)           (1,212)              (2,421)
                                                          _____________     _____________        _____________
Net cash outflow from servicing of finance                      (1,170)           (1,212)              (2,421)
Financial investment
Purchases of investments                                       (54,612)          (59,850)            (105,819)
Movement in futures                                                   -             1,238             (15,501)
Sales of investments                                             54,343            58,905              126,614
                                                          _____________     _____________        _____________
Net cash (outflow)/inflow from financial investment               (269)               293                5,294
Equity dividends paid                                           (8,826)           (8,121)             (14,268)
                                                          _____________     _____________        _____________
Net cash (outflow)/inflow before financing                      (1,551)             (515)                5,931
Financing
Loans repaid                                                      7,707                 -                    -
Loans received                                                  (7,707)                 -                    -
                                                          _____________     _____________        _____________
Net cash flow from financing                                          -                 -                    -
                                                          _____________     _____________        _____________
(Decrease)/increase in cash                                     (1,551)             (515)                5,931
                                                          _____________     _____________        _____________
Analysis of changes in cash during the period
Opening balance                                                   6,816             9,591                9,591
(Decrease)/increase in cash above                               (1,551)             (515)                5,931
Currency differences                                            (4,267)           (3,876)              (8,706)
                                                          _____________     _____________        _____________
Closing balances                                                    998             5,200                6,816
                                                          _____________     _____________        _____________


MURRAY INTERNATIONAL TRUST PLC
Six months ended 30 June 2006
Supplementary Information



Note 1. Transaction Costs

During the six months ended 30 June 2006 expenses were incurred in acquiring or
disposing of investments classified as fair value through profit or loss. These
have been expensed through capital and are included within gains on investments
in the income statement. The total costs were as follows:


                                                         Six months          Six months                  Year
                                                              ended               ended                 ended
                                                       30 June 2006        30 June 2005      31 December 2005
                                                              £'000               £'000                 £'000
Purchases                                                        80                 139                   293
Sales                                                            95                  85                   212
                                                         __________          __________            __________
                                                                175                 224                   505
                                                      _____________       _____________         _____________



Note 2. Ordinary dividends on equity shares


                                                         Six months          Six months                  Year
                                                              ended               ended                 ended
                                                       30 June 2006        30 June 2005      31 December 2005
                                                              £'000               £'000                 £'000
2005 final dividend of 6.65p (2004 - 5.95p)                   5,756               5,147                 5,147
First interim of 3.80p (2005 - 3.55p)                         3,289               3,072                 3,070
Second interim of 3.80p (2005 - 3.55p)                        3,289               3,072                 3,070
Third interim of 3.80p (2005 - 3.55p)                         3,289               3,073                 3,070
                                                         __________          __________            __________
                                                             15,623              14,364                14,357
                                                      _____________       _____________         _____________



Note 3. Returns per share


                                                                 Six months       Six months               Year 
                                                                      ended            ended              ended
                                                                    30 June          30 June        31 December
                                                                       2006             2005               2005
                                                                      £'000            £'000              £'000
The returns per share have been based on the following
figures:
Revenue return                                                       £9,991           £8,693            £15,275
Capital return                                                       £3,584          £30,279           £109,393
                                                                 __________       __________         __________
Total return                                                        £13,575          £38,972           £124,668
                                                               ____________     ____________      _____________
Weighted average number of Ordinary shares                       86,556,277       86,491,961         86,524,129
Weighted average number of B Ordinary shares                      1,094,729        1,120,893          1,104,278



Note 4.  Diluted net asset value

The diluted net asset value per share at the period end has been calculated in
accordance with the Articles of Association using the following net asset value
attributable and the total number of Ordinary shares (including conversion of
the B Ordinary shares).


                                                    As at                As at               As at
                                                  30 June              30 June         31 December
                                                     2006                 2005                2005
                                                    £'000                £'000               £'000
Attributable net assets                           521,585              437,929             523,633
                                               __________           __________          __________
Number of shares in issue:
Ordinary shares                                86,583,992           86,556,123          86,556,123
B Ordinary shares                               1,092,806            1,087,799           1,087,799
                                               __________           __________          __________
                                               87,676,798           87,643,922          87,643,922
                                               __________           __________          __________



Note 5

The financial information above comprises non-statutory accounts within the
meaning of Section 240 of the Companies Act 1985. The financial information for
the year ended 31 December 2005 has been abridged from published accounts that
have been delivered to the Registrar of Companies and on which the report of the
Auditors was unqualified. The interim accounts have been prepared using the same
accounting policies as the preceding annual accounts.



Note 6

A summary of investment changes for the six months to 30 June 2006, a summary of
net assets as at 30 June 2006 and a schedule of the twenty largest equity
investments and the ten largest fixed income investments as at 30 June 2006 are
attached.





By order of the Board
ABERDEEN ASSET MANAGEMENT PLC, SECRETARY
8 August 2006



Copies of this announcement will be printed and issued to shareholders and will
be available to the public at the registered office of the Company, 123 St
Vincent Street, Glasgow.


Summary of Investment Changes
                                             Valuation                       Appreciation/       Valuation
                                         31 December 2005    Transactions   (depreciation)     30 June 2006
                                            £'000        %          £'000            £'000      £'000          %
Equities
United Kingdom                            150,828     24.8        (7,807)            7,149    150,170       24.9
North America                              47,782      7.8        (2,131)          (2,132)     43,519        7.2
Europe & Africa                            97,932     16.1            293            2,968    101,193       16.8
Japan                                      72,010     11.8          2,820          (5,499)     69,331       11.5
Asia Pacific Ex Japan                      89,325     14.7          9,917          (6,041)     93,201       15.4
Emerging Europe, Middle East & Latin       59,927      9.8       (15,007)           13,382     58,302        9.7
America
                                          _______  _______        _______          _______    _______    _______
                                          517,804     85.0       (11,915)            9,827    515,716       85.5
                                          _______  _______        _______          _______    _______    _______
Fixed income
United Kingdom                             56,998      9.4         14,004          (1,336)     69,666       11.5
North America                               9,521      1.6          1,886          (1,127)     10,280        1.7
Europe & Africa                             8,755      1.4        (3,922)            (557)      4,276        0.7
Asia Pacific Ex Japan                       5,448      0.9           (12)            (204)      5,232        0.9
Latin America                               4,577      0.7           (37)            (479)      4,061        0.7
                                          _______  _______        _______          _______    _______    _______
                                           85,299     14.0         11,919          (3,703)     93,515       15.5
                                          _______  _______        _______          _______    _______    _______
Other net assets/(liabilities)              6,079      1.0        (7,001)          (5,264)    (6,186)      (1.0)
                                          _______  _______        _______          _______    _______    _______
Total assets                              609,182    100.0        (6,997)              860    603,045      100.0
                                          _______  _______        _______          _______    _______    _______





Summary of Net Assets

                                                                        Valuation
                                                                      30 June 2006
                                                                    £'000              %
Equities                                                          515,716           98.9
Fixed income                                                       93,515           17.9
Other net liabilities                                             (6,186)          (1.2)
Prior charges                                                    (79,423)         (15.2)
Other long term liabilities                                       (2,037)          (0.4)
                                                                _________      _________
Equity Shareholders' funds                                        521,585          100.0
                                                                _________      _________




Twenty Largest Equity Investments
As at 30 June 2006

                                                                                   Valuation        % of total
Security                                    Investment area                            £'000            assets
Atrium Underwriting                         United Kingdom                            18,338               3.0
Petrobras                                   Brazil & Argentina                        17,727               2.9
Tenaris ADR                                 Mexico                                    17,475               2.9
Resolution                                  United Kingdom                            17,147               2.8
GlaxoSmithKline                             United Kingdom                            13,523               2.2
British American Tobacco*                   United Kingdom & Malaysia                 10,397               1.7
AstraZeneca                                 United Kingdom                             8,160               1.4
Royal Dutch Shell*                          United Kingdom                             8,124               1.4
Petrochina                                  China                                      7,466               1.3
Vodafone Group                              United Kingdom                             7,376               1.2
Aeropuertos del Sureste ADS                 Mexico                                     7,256               1.2
Orix Corporation                            Japan                                      6,850               1.1
Hyundai Motor 2nd Pref                      South Korea                                6,768               1.1
PTT Exploration & Production                Thailand                                   6,759               1.1
Samsung Electronics Pref                    South Korea                                6,582               1.1
Daito Trust Construction                    Japan                                      6,555               1.1
Aviva                                       United Kingdom                             6,415               1.1
Deutsche Postbank                           Germany                                    6,223               1.0
Souza Cruz                                  Brazil                                     6,035               1.0
Reynolds American                           USA                                        5,917               1.0
                                                                                    ________          ________
Top twenty investments                                                               191,093              31.6
                                                                                    ________          ________





* Consolidates all equity holdings from same issuer




Ten Largest Fixed Income Investments
As at 30 June 2006

Security                                                Currency                Valuation       % of total
                                                        Denomination                £'000           assets
UK Treasury 7.25% 07/12/2007                            Sterling                    5,516              0.9
UK Treasury 5% 07/03/2012                               Sterling                    5,499              0.9
UK Treasury 7.5% 07/12/2006                             Sterling                    5,475              0.9
UK Treasury 5% 07/03/2008                               Sterling                    5,447              0.9
UK Treasury 4% 07/03/2009                               Sterling                    5,444              0.9
UK Treasury 6.25% 25/11/2010                            Sterling                    5,362              0.9
UK Treasury 9% Conversion 12/07/2011                    Sterling                    5,338              0.9
Pemex Project Funding Master 7.75% 29/09/2049           U.S. Dollar                 4,720              0.8
Government of Hungary 6.5% 12/08/2008                   Hungarian Forint            4,276              0.7
Government of Mexico 10.5% 14/07/2011                   Mexican Peso                4,061              0.7
                                                                                 ________         ________
Top ten investments                                                                51,138              8.5
                                                                                 ________         ________






                      This information is provided by RNS
            The company news service from the London Stock Exchange