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Murray Inc Trust PLC (MUT)

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Wednesday 14 February, 2007

Murray Inc Trust PLC

Interim Results

Murray Income Trust PLC
14 February 2007

Murray Income Trust PLC
Results for the six months ended 31 December 2006


The Directors of Murray Income Trust PLC report the unaudited interim results
for the six months ended 31 December 2006.



Key Facts



•         Murray Income's Net Asset Value total return for the six months to 31
          December 2006 was 11.4%.

•         Shareholder total return for the period was 12.5%.

•         Second and third interim dividends of 5p each will be paid on 15 April
          2007 and 13 July 2007 respectively.




Performance



The UK equity market performed well over the six-month period to 31 December
2006, with a Net Asset Value total return for the Company of 11.4%.  This
compares favourably against the benchmark, the FTSE All-Share Index, which rose
by 10.0%.



Background



The market recovered strongly from the setback during May, helped by robust
corporate earnings, further merger and acquisition activity and a supportive
global economic backdrop.  In addition, the geopolitical environment was
generally more benign, helping to explain a fall in oil prices and easing US
inflation expectations.



UK macroeconomic newsflow reflected a robust environment, with GDP growth at the
end of the period running on a year-on-year basis at 2.9%.  Consumer spending,
although volatile, has maintained an upward path, and business investment has
exceeded expectations, helped in part by the growth of the world economy and the
prospect for increased exports.



The Monetary Policy Committee of the Bank of England unexpectedly raised
interest rates in August by 0.25% to 4.75%, and again in November, to 5.0%.
Particular concern was cited over the uncertainty of assessing spare capacity in
the economy, and the impact of the strong migration trends over the past year,
at a time when inflation was running above target levels.  CPI inflation has
risen from 2.2% in July to 3.0% in December, though the reduction in energy
prices should help to ameliorate inflationary pressures going forward.



An interesting feature of the market has been the continued outperformance of
the more domestically-oriented Mid Cap and Small Cap Indices, despite the rise
in interest rates.  This can largely be attributed to the continued high level
of merger and acquisition activity that has been centred lower down the market
capitalisation scale.  However, the lower reaches of the FTSE 100 have not been
immune, with the Company itself benefiting from bids for Scottish Power and
Gallaher from Iberdrola and Japan Tobacco respectively.  Broadly, the market
rotated into more defensive areas over the period, with Food Retailers,
Utilities and Telecoms outperforming.  Conversely, sectors exposed to a
potential slowdown in global growth, in particular the domestic market in the
United States, underperformed.



Activity



During the period, a number of new holdings were added to the portfolio.  We
introduced a position in Wolseley, the plumbing, heating and building materials
distributor, following share price weakness caused by concerns of the market
over the company's exposure to the United States.  Although exposed to a US
housing slowdown, costs are largely variable and the longer term prospects
remain appealing.  Similar market concerns also provided the opportunity to
acquire Tomkins, the manufacturing company, on a pleasing valuation and a yield
of over 5%.  In addition, a small holding in Venture Production, a North
Sea-focused oil production company concentrating primarily on undeveloped
discoveries, was also introduced given its low risk business model and
attractive valuation.  Finally, a new position in Premier Foods was acquired, in
view of its valuation and strong track record in brand regeneration.  Shortly
after completing the purchase, Premier Foods announced the acquisition of RHM,
providing extended scope for further cost synergies and systems' harmonisation.



A number of holdings were sold following strong performances, and where
valuations looked stretched, including shares in Persimmon and Diageo.  In
addition, the holding in BAA was sold following the recommended offer from
Ferrovial.  There were also reductions in a variety of holdings in order to
recycle capital into companies that had performed less well over the period.
Reductions in Weir, Slough Estates and Barclays provided the opportunity to add
to Friends Provident, Mothercare, EMI and AMEC.



Gearing



At the end of the interim period the Company's gearing stood at 5%, broadly
unchanged from the level at the end of the last financial year.



Treasury Shares



At the Annual General Meeting held in October 2006, Shareholders renewed the
authority for the Company to hold shares bought back by it as Treasury shares
rather than cancel them immediately. During the period, 70,000 Ordinary shares
were bought back and held in Treasury. As of 14 February 2007, the total number
of Ordinary shares bought back and held in Treasury was 1,213,500. To date, no
shares have been re-issued from Treasury.



Dividend



A first interim dividend of 5p was paid on 19 January 2007 to Shareholders on
the register at the close of business on 15 December 2006.  A second interim
dividend of 5p will be paid on 15 April 2007 to Shareholders on the register at
the close of business on 16 March 2007.  The third interim dividend of 5p will
be paid on 13 July 2007 to Shareholders on the register at the close of business
on 15 June 2007.



Outlook



UK equity market returns over the period have been strong, building on the
progress made over the last three years. Possible clouds on the horizon include
the impact of tightening monetary policy, particularly in the UK, heightened
geopolitical risk and potentially higher energy prices.  However, we remain
cautiously optimistic about the long-term outlook.



Valuations remain relatively attractive on both an absolute basis and compared
to alternative investments. Corporate earnings should remain robust and the
potential for further merger and acquisition activity should help to underpin
the market.



MURRAY INCOME TRUST PLC

INCOME STATEMENT

                                                  Six months ended
                                                  31 December 2006
                                                        (unaudited)
                                                Revenue    Capital      Total
                                   Notes          £'000      £'000      £'000
Realised gains on investments                         -     12,526     12,526
Unrealised gains on investments                       -     31,325     31,325
Investment income                                 7,448          -      7,448
Interest receivable                                  43          -         43
Investment management fees                        (741)      (741)    (1,482)
Administrative expenses                           (400)          -      (400)
Net return before finance costs                   6,350     43,110     49,460
and taxation

Finance costs                                     (345)      (345)      (690)
Revenue on ordinary activities before and         6,005     42,765     48,770
after taxation

Return per Ordinary share (pence)                   9.2       65.6       74.8

The total column of this statement represents the profit and loss
account of the Company.

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

All revenue and capital items in the above statement derive from
continuing operations.

Ordinary dividends on equity       2              7,956          -      7,956
shares






MURRAY INCOME TRUST PLC

INCOME STATEMENT

                                              Six months ended
                                              31 December 2005
                                                 (unaudited)
                                              Revenue   Capital   Total
                                                £'000     £'000     £'000
Realised gains on investments                       -    14,882    14,882
Unrealised gains on investments                     -    30,643    30,643
Investment income                               6,662         -     6,662
Interest receivable                                54         -        54
Investment management fees                      (672)     (672)   (1,344)
Administrative expenses                         (433)         -     (433)
Net return before finance costs and             5,611    44,853    50,464
taxation

Finance costs                                   (279)     (278)     (557)
Revenue on ordinary activities before and       5,332    44,575    49,907
after taxation

Return per Ordinary share (pence)                 8.0      67.1      75.1

Ordinary dividends on equity shares             6,797         -     6,797



MURRAY INCOME TRUST PLC

INCOME STATEMENT

                                                     Year ended
                                                   30 June 2006
                                                       (audited)
                                              Revenue   Capital     Total
                                                £'000     £'000     £'000
Realised gains on investments                       -    34,502    34,502
Unrealised gains on investments                     -    29,141    29,141
Investment income                              17,140         -    17,140
Interest receivable                                97         -        97
Investment management fees                    (1,402)   (1,402)   (2,804)
Administrative expenses                         (804)         -     (804)
Net return before finance costs and            15,031    62,241    77,272
taxation

Finance costs                                   (606)     (606)   (1,212)
Revenue on ordinary activities before and      14,425    61,635    76,060
after taxation

Return per Ordinary share (pence)                21.8      93.1     114.9

Ordinary dividends on equity shares            13,028         -    13,028



MURRAY INCOME TRUST PLC

BALANCE SHEET

                                             As at        As at        As at
                                       31 December  31 December      30 June
                                              2006         2005         2006
                                       (unaudited)  (unaudited)    (audited)
                              Notes          £'000        £'000        £'000
Non-current assets
Investments at fair value                  519,445      462,453      480,711
through profit or loss

Current assets
Debtors                                      1,672        1,162        1,862
Cash and short-term deposits                 1,299        3,639          100
                                             2,971        4,801        1,962

Creditors: amounts falling                   (333)        (402)        (959)
due within one year
Net current assets                           2,638        4,399        1,003
Total assets less current                  522,083      466,852      481,714
liabilities

Creditors: amounts falling
due after more than one year
Bank loan                                 (25,000)     (23,000)     (25,000)
Net assets                                 497,083      443,852      456,714

Capital and reserves
Called-up share capital                     16,300       16,593       16,318
Share premium account                        7,955        7,955        7,955
Capital redemption reserve                   5,301        5,008        5,283
Capital reserve - realised                 295,025      272,528      284,030
Capital reserve - unrealised               153,187      123,364      121,862
Revenue reserve                             19,315       18,404       21,266
Equity Shareholders' funds                 497,083      443,852      456,714

Net asset value per Ordinary  5              762.4        668.7        699.7
share (pence)



Reconciliation of Movement in Shareholders' Funds

Six months ended 31 December
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 30 June 2006   16,318   7,955      5,283   284,030     121,862   21,266  456,714
Repurchase of own shares    (18)       -         18     (445)           -             (445)
                                                                                 -
Return on ordinary             -       -          -    11,440      31,325    6,005   48,770
activities after
taxation
Dividends paid                 -       -          -         -           -  (7,956)  (7,956)
Balance at 31 December    16,300   7,955      5,301   295,025     153,187   19,315  497,083
2006

Six months ended 31 December
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 30 June 2005   16,765   7,955      4,836   262,455      92,721   19,869  404,601
Repurchase of own shares   (172)       -        172   (3,859)           -        -  (3,859)
Return on ordinary             -       -          -    13,932      30,643    5,332   49,907
activities after
taxation
Dividends paid                 -       -          -         -           -  (6,797)  (6,797)
Balance at 31 December    16,593   7,955      5,008   272,528     123,364   18,404  443,852
2005

Year ended 30 June 2006
(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 30 June 2005   16,765   7,955      4,836   262,455      92,721   19,869  404,601
Repurchase of own shares   (447)       -        447  (10,919)           -        - (10,919)
Return on ordinary             -       -          -    32,494      29,141   14,425   76,060
activities after
taxation
Dividends paid                 -       -          -         -           - (13,028) (13,028)
Balance at 30 June 2006   16,318   7,955      5,283   284,030     121,862   21,266  456,714







MURRAY INCOME TRUST PLC

CASH FLOW STATEMENT
                                       Six months     Six months        Year
                                            ended          ended       ended
                                      31 December    31 December     30 June
                                             2006           2005        2006
                                      (unaudited)    (unaudited)   (audited)
                                            £'000          £'000       £'000
Net return before finance costs and        49,460         50,464      77,272
taxation
Adjustments for:
Realised gains on investments            (12,526)       (14,882)    (34,502)
Unrealised gains on investments          (31,325)       (30,643)    (29,141)
Decrease/(increase) in accrued                225            308       (405)
income
Increase in prepayments                      (35)           (14)         (2)
(Decrease)/increase in accruals             (297)             48         278
Net cash inflow from operating              5,502          5,281      13,500
activities

Servicing of finance
Interest paid                               (678)          (552)     (1,218)
Net cash outflow from servicing of          (678)          (552)     (1,218)
finance

Financial investment
Purchases of investments                 (37,797)       (54,024)    (95,275)
Sales of investments                       42,573         54,293      95,744
Net cash inflow from financial              4,776            269         469
investment

Equity dividends paid                     (7,956)        (6,797)    (13,028)

Management of liquid resources
Cash placed on short-term deposit               -              -         310
Net cash inflow/(outflow) before            1,644        (1,799)          33
financing

Financing
Drawdown of loans                               -          7,000       9,000
Repurchase of own shares                    (445)        (4,262)    (11,323)
Net cash (outflow)/inflow from              (445)          2,738     (2,323)
financing
Net increase/(decrease) in cash             1,199            939     (2,290)


Notes to the Financial Statements


Note 1 Accounting policies


(a) Basis of accounting

The financial statements have been prepared under the historical cost
convention, as modified to include the revaluation of investments and in
accordance with applicable UK Accounting Standards and consistent with the
Statement of Recommended Practice for 'Financial Statements of Investment Trust
Companies' (December 2005). They have also been prepared on the assumption that
approval as an investment trust will continue to be granted.


The financial statements and the net asset value per share figures have been
prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).


The interim accounts have been prepared using the same accounting policies as
the preceding annual accounts.


(b) Dividends Payable

Dividends are recognised in the period in which they are paid.



Note 2 Ordinary dividends

Ordinary dividends paid on equity shares deducted from reserves:



                               Six months ended Six months ended    Year ended
                               31 December 2006      31 December       30 June
                                                            2005          2006
                                    (unaudited)      (unaudited)     (audited)
                                          £'000            £'000         £'000
2005 third interim dividend -                 -            3,038         3,038
4.50p
2005 final dividend - 5.65p                   -            3,759         3,759
2006 first interim dividend -                 -                -         3,121
4.70p
2006 second interim dividend                  -                -         3,110
- 4.70p
2006 third interim dividend -             3,066                -             -
4.70p
2006 final dividend - 7.50p               4,890                -             -
                                          7,956            6,797        13,028





Note 3 Investment income
                               Six months ended Six months ended     Year ended
                               31 December 2006 31 December 2005        30 June
                                                                           2006
                                    (unaudited)      (unaudited)      (audited)
                                          £'000            £'000          £'000
     UK dividend income                   7,295            6,662         16,995
     Bond interest                          153                -            145
                                          7,448            6,662         17,140





Note 4 Return per share

                                  Six months ended      Six months  Year ended
                                                             ended
                                  31 December 2006     31 December     30 June
                                                              2005        2006
                                       (unaudited)     (unaudited)   (audited)
                                                 p               p           p
   Revenue return                              9.2             8.0        21.8
   Capital return                             65.6            67.1        93.1
   Total return                               74.8            75.1       114.9

   The figures are based on the following attributable assets:

                                  Six months ended      Six months  Year ended
                                                             ended
                                  31 December 2006     31 December     30 June
                                                              2005        2006
                                       (unaudited)     (unaudited)   (audited)
                                             £'000           £'000       £'000
   Revenue return                            6,005           5,332      14,425
   Capital return                           42,765          44,575      61,635
   Total return                             48,770          49,907      76,060

   Weighted average number of           65,205,621      66,468,871  66,222,372
   Ordinary shares in issue





Note 5 Net asset value per share

                                           As at          As at       As at
                                     31 December    31 December     30 June
                                            2006           2005        2006
                                     (unaudited)    (unaudited)   (audited)
    Attributable net assets              497,083        443,852     456,714
    (£'000)
    Number of Ordinary shares in      65,202,958     66,371,458  65,272,958
    issue
    NAV per Ordinary share (p)             762.4          668.7       699.7



Note 6 Transaction costs

During the period, 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 investment in the Income Statement. The
total costs were as follows:

                      Six months ended     Six months ended           Year ended
                      31 December 2006     31 December 2005         30 June 2006
                                 £'000                £'000                £'000
Purchases                          222                  346                  561
Sales                               57                   96                  138
                                   279                  442                  699





Note 7


The financial information in this report comprises non-statutory accounts within
the meaning of Section 240 of the Companies Act 1985. The financial information
for the year ended 30 June 2006 has been extracted from published accounts that
have been delivered to the Registrar of Companies and on which the report of the
auditors was unqualified under Section 235 of the Companies Act 1985.





By order of the Board


ABERDEEN ASSET MANAGEMENT PLC, SECRETARY


14 February 2007


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.






MURRAY INCOME TRUST PLC

SUMMARY OF INVESTMENT CHANGES

FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

                         Valuation               Appreciation/           Valuation
                      30 June 2006 Transactions (depreciation)    31 December 2006
                      £'000      %        £'000          £'000    £'000          %
United Kingdom
Equities            473,774   98.4      (5,117)         45,585  514,242       98.5
Fixed interest        4,497    0.9            -            421    4,918        0.9
FTSE options          2,440    0.5            -        (2,155)      285        0.1
                   ________ ______      _______         ______ ________     ______
Total               480,711   99.8      (5,117)         43,851  519,445       99.5
Investments

Other net assets      1,003    0.2        1,635              -   2 ,638        0.5
                   ________ ______      _______         ______ ________     ______
Total assets        481,714  100.0      (3,482)         43,851  522,083      100.0
                   ________ ______      _______         ______ ________     ______


SUMMARY OF NET ASSETS
As at 31 December 2006
                                                                         Valuation
                                                                  31 December 2006
                                                                  £'000          %
Equities                                                        514,242      103.4
Fixed interest                                                    4,918        1.0
FTSE options                                                        285        0.1
Other net assets                                                  2,638        0.5
Borrowings                                                     (25,000)      (5.0)
                                                               ________     ______
Equity Shareholders'                                            497,083      100.0
interest
                                                               ________     ______

SHARE CAPITAL
As at 31 December 2006

Ordinary shares of 25p each                                        65,202,958

Treasury shares of 25p each                                         1,213,500



TWENTY LARGEST INVESTMENTS

AS AT 31 DECEMBER 2006

                                                   Valuation     Total
                                                                assets
Investment              Sector                         £'000         %
Royal Dutch Shell ('B'  Oil & Gas Producers           27,101       5.2
shares)
BP                      Oil & Gas Producers           26,814       5.2
HSBC                    Banks                         25,370       4.9
Barclays                Banks                         22,922       4.4
Royal Bank of Scotland  Banks                         22,003       4.2
Group
British American        Tobacco                       16,373       3.1
Tobacco
GlaxoSmithKline         Pharmaceuticals &             16,285       3.1
                        Biotechnology
Aviva                   Life Assurance                15,988       3.1
BT                      Fixed Line                    15,219       2.9
                        Telecommunications
Centrica                Gas, Water and                14,942       2.9
                        Multi-utilities
Lloyds TSB              Banks                         14,459       2.8
Slough Estates          Real Estate                   13,118       2.5
Anglo American          Mining                        13,054       2.5
Vodafone                Mobile                        10,648       2.0
                        Telecommunications
Friends Provident       Life Insurance                10,525       2.0
Land Securities         Real Estate                   10,514       2.0
Rio Tinto               Mining                         9,785       1.9
Unilever                Food Producer                  9,513       1.8
Resolution              Life Insurance                 8,981       1.7
National Grid           Gas, Water and                 8,866       1.7
                        Multi-utilities
Top twenty investments                               312,480      59.8






END



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