Interim Results

Edinburgh Worldwide Investment Trust PLC 31 May 2000 Interim Results for the six months to 30 April 2000 - EWIT outperforms MSCI World Index by 6.7% - The investment objective of the company is to achieve long-term capital growth in excess of the capital return (in sterling terms) of the Morgan Stanley Capital International World Index by investing in stockmarkets throughout the world. EWIT outperformed its benchmark by 6.7%: net asset value per share increased by 18.9% to 322.0p, substantially beating the MSCI World Index which rose by 12.2% in sterling terms The share price increased by 12.9% to 249.0p Interim dividend of 0.5p per share payable to shareholders on 7 July 2000 Looking ahead, favoured areas remain Asia and the UK For further information, please contact:- Iain Beattie Director,Edinburgh Fund Managers plc 0131 313 1000 CHAIRMAN'S STATEMENT I am pleased to report that the excellent performance recorded last year has continued into the current financial year. For the six months to 30 April 2000, the net asset value per share increased by 18.9% to 322.0p and this compares with the MSCI World Index which rose by 12.2% in sterling terms over the same period. The share price rose by 16.2% to 249p and represented a discount of 22.9% to net asset value at 30 April 2000. Portfolio During the six months, there were no major changes to the geographic distribution of the portfolio. Exposure to the United States was reduced slightly from 50.7% to 47.0% in favour of Japan where the weighting rose from 11.3% to 13.2%. The portfolio's exposure to the other geographic areas was broadly unchanged with the UK representing 10.2% of the equity portfolio while Europe, the Pacific Basin and Latin America accounted for 22.1%, 5.6% and 0.9% respectively. In relation to the benchmark index, the portfolio is overweight in the Pacific Basin, underweight in the USA and has a neutral weighting in the other areas. The level of gearing was maintained at around 10% during the period. During March and April, the sector allocation of the portfolio was altered as the manager realised profits from the technology and telecommunication sectors. These two areas, plus the media sector, had been the main drivers of global equity markets until the early part of this year. The sale proceeds were re-invested in defensive stocks in the pharmaceutical, financial and utilities sectors. In a continuation from last year, the out-performance of the net asset value was attributable largely to excellent stock selection with all the geographic segments of the portfolio, except Europe, producing returns ahead of the relevant index. The strongest market returns were however seen in Europe, particularly those countries with a high exposure to technology stocks, and Finland and Sweden rose by 90% and 60% respectively. The Japanese and Pacific Basin markets rose by around 8% while in the UK, the FTSE All-Share Index rose by only 4%.The impact of technology was most apparent in the returns from the United States where the broadly based S&P 500 Index rose by 11.7% while the technology dominated NASDAQ Composite Index rose by 36.5% (all figures in sterling terms). Revenue The revenue return for the period amounted to 0.80p per share (1999: 1.48p) with the reduction from the previous year being attributable to a fall in interest receivable resulting from lower cash balances. The directors have declared an interim dividend of 0.50p per share, unchanged from last year. The interim dividend will be paid on 7 July 2000 to shareholders on the register on 16 June 2000. Outlook Early signs are emerging that economic activity will slow down later this year and this suggests that the end of the current period of rising interest rates is in sight. Provided central bankers do not indulge in monetary overkill, a background of stable economic growth, low inflation and growing corporate profits should be rewarding for investors in global equities. In the near term, the recent volatility of equity markets may continue until the outlook for interest rates becomes clearer. Technology stocks have fallen sharply recently and have impacted negatively on returns. The company's exposure to this sector is focused on network builders and business service providers rather than Internet retailing and I am confident that this strategy will add significant value in the future. David Coltman Chairman 31 May 2000 STATEMENT OF TOTAL RETURN for the period ended 30 April 2000(unaudited) Revenue Capital Total £000 £000 £000 Realised gains on investments - 11,661 11,661 Unrealised gains on investments - 15,069 15,069 Foreign exchange losses - (397) (397) Investment income 679 - 679 Interest receivable 450 - 450 Other income 13 - 13 Investment management fee (199) (596) (795) Administrative expenses (175) - (175) Net return before finance costs 768 25,737 26,505 and taxation Interest payable (279) (836) (1,115) Return on ordinary activities 489 24,901 25,390 before taxation Taxation (95) 25 (70) Return attributable to equity 394 24,926 25,320 shareholders Dividend in respect of equity (245) - (245) shares 149 24,926 25,075 Return per ordinary share 0.80p 50.87p 51.67p for the period ended 30 April 1999 (unaudited - restated) Revenue Capital Total £000 £000 £000 Realised gains on investments - 3,284 3,284 Unrealised gains on investments - 29,304 29,304 Foreign exchange losses - (202) (202) Investment income 746 - 746 Interest receivable 727 - 727 Other income 12 - 12 Investment management fee (118) (354) (472) Administrative expenses (132) - (132) Net return before finance costs 1,235 32,032 33,267 and taxation Interest payable (286) (836) (1,122) Return on ordinary activities 949 31,196 32,145 before taxation Taxation (225) 149 (76) Return attributable to equity 724 31,345 32,069 shareholders Dividend in respect of equity (245) - (245) shares 479 31,345 31,824 Return per ordinary share 1.48p 63.96p 65.44p for the period ended 31 October 1999 (audited - restated) Revenue Capital Total £000 £000 £000 Realised gains on investments - 7,914 7,914 Unrealised gains on investments - 27,714 27,714 Foreign exchange losses - (12) (12) Investment income 1,703 - 1,703 Interest receivable 1,227 - 1,227 Other income 26 - 26 Investment management fee (271) (814) (1,085) Administrative expenses (303) - (303) Net return before finance costs 2,382 34,802 37,184 and taxation Interest payable (568) (1,679) (2,247) Return on ordinary activities 1,814 33,123 34,937 before taxation Taxation (443) 274 (169) Return attributable to equity 1,371 33,397 34,768 shareholders Dividend in respect of equity (1,078) - (1,078) shares 293 33,397 33,690 Return per ordinary share 2.80p 68.15p 70.95p BALANCE SHEET (unaudited) At 30 At 31 At 30 April October April 2000 1999 1999 £000 £000 £000 Fixed assets Investments 173,672 145,717 140,040 Investment property 180 180 180 173,852 145,897 140,220 Current assets 24,878 29,332 34,948 Current liabilities (1,075) (2,839) (4,880) Net current assets 23,803 26,493 30,068 Total assets less current 197,655 172,390 170,288 liabilities Creditors: falling due (39,863) (36,673) (39,437) after more than one year 157,792 132,717 130,851 Capital and reserves Called up share capital - 2,450 2,450 2,450 equity Reserves 155,342 130,267 128,401 Total equity shareholders' 157,792 132,717 130,851 funds Net asset value per 322.00p 270.83p 267.02p ordinary share CASHFLOW STATEMENT For 6 For 6 For year months months ended ended ended 31 October 30 April 30 April 1999 2000 1999 £000 £000 £000 Net cash inflow from 16 635 1,643 operating activities Net cash outflow from (1,099) (1,144) (2,277) servicing of finance Total tax paid (44) (88) (249) Net cash outflow from (433) (4,066) (7,094) financial investment Equity dividends paid (833) (122) (367) Net cash outflow before (2,393) (4,785) (8,344) financing Net cash inflow from management of liquid 6,023 (12,109) (5,842) resources Net cash outflow from - - - financing INCREASE IN CASH 3,630 (16,894) (14,186) NOTES : 1. The same accounting policies used for the year to 31 October 1999 have been applied other than for taxation. Dividends received from UK companies are now reported net of the tax credit in accordance with Financial Reporting Standard 16 Current tax'. The figures in relation to 1999 have been restated to reflect this change. 75% of the investment management fee and finance costs have been charged to capital reserves in line with the expected future split of returns over the longer term between capital and revenue. 2. The directors have declared an interim dividend of 0.5p to be paid on 7 July 2000 to shareholders on the register at the close of business on 16 June 2000. The ex-dividend date is 12 June 2000. 3. The statement of total return and the balance sheet set out above do not represent full statutory accounts in accordance with Section 240 of the Companies Act 1985. The statutory accounts for 1999 have been delivered to the Registrar of Companies and contained an unqualified auditors' report. 4. The Interim Report will be posted to shareholders on 16 June 2000 and copies will be available from the registered office. Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested. For Edinburgh Worldwide Investment Trust plc Edinburgh Fund Managers plc, Secretary David Holland Assistant Secretary

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