Annual Financial Report

RNS Number : 2380N

Mid Wynd Inter Inv Trust PLC

30 August 2011

 



MID WYND INTERNATIONAL INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT

Copies of the Annual Report and Financial Statements for the year ended 30 June 2011 have been submitted electronically to the National Storage Mechanism and will shortly be available for inspection at http://www.hemscott.com/nsm.do

The Annual Report and Financial Statements for the year ended 30 June 2011 including the Notice of Annual General Meeting is also available on Mid Wynd's page of the Baillie Gifford website at:

www.midwynd.co.uk

The unedited full text of those parts of the Annual Report and Financial Statements for the year ended 30 June 2011 which require to be published by DTR 4.1 is set out on the following pages.

Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.

Baillie Gifford & Co

Company Secretaries

30 August 2011

CHAIRMAN'S STATEMENT

Performance

In the year to 30 June 2011, net asset value rose by 24.7% to 1,257.2p per share, the share price increased 35.8% to 1,270.0p and the FTSE World Index rose by 19.2% in sterling terms. Overall, the year has been a creditable one despite a fairly persistent headwind from inflationary pressures in developing economies and a steady stream of interest rate hikes in these countries in consequence. Western recovery limps along at an unusually subdued pace, especially subdued in the context of the uniquely aggressive monetary stimulus that preceded and has accompanied it. There are oases of hope within this otherwise parched Western desert. German export led growth has been notable, for example, assisted by a currency weakened by the problems of the periphery. The Greek tragedy is ongoing with no real catharsis in sight but equally little sign that those at the centre of the EU project are prepared to let this problem run entirely out of control. For the moment, Greece and fellow olive belt countries serve to prevent undue Euro strength. More broadly, if the West is weakening its currencies and exporting its way out of trouble so far as it can, it may be that developing economies are changing their strategy too. Their 'new normal' is domestic investment, real wage growth, productivity improvements, credit growth and consumption. It is not yet clear, however, that tolerating currency strength is as much part of their new regimen as enforcing currency weakness was of their old one. So, it is not yet clear either that the long-awaited rebalancing of the global economy can happen without major speed bumps.

Earnings and Dividend

We had expected earnings to fall this year, but in the event the Company generated a revenue return of 17.16p per share for the year to 30 June 2011 compared with 16.85p per share for the previous year. Marine Harvest was again a notable contributor, together with Letshego and Ryanair, against a general background of positive dividend news across the portfolio. Several higher yielding additions to the equity portfolio during the year offset the fall in bond income and benefited the Company's revenue position.

A final dividend of 10p will be recommended, taking the full year total to 16.5p, an increase of 6.5% on last year. For next year, we anticipate revenue earnings broadly in line with the current year. Our accumulated revenue reserve stands at 20p per share which provides flexibility to maintain or increase dividends should a shortfall occur in future years.

Discount and share buybacks/ issuance

The Company's shares have traded at a premium for some months now and, to satisfy demand, 310,000 new shares have been issued (from within the Company's block listing facility) raising £3,875,000. The new shares have been issued at small premia to NAV, thereby enhancing NAV by 0.15%. In addition to ongoing authority to buy back shares, the Company is now in a position to hold any shares bought back in Treasury for reissue or cancellation at a later date. Over time this ought to assist in improving liquidity and enabling today's narrower bid-offer spread to persist or improve further, as might the proposed five for one share split outlined below.

CHAIRMAN'S STATEMENT (Ctd)

Sub-division

Mid Wynd's shares have been trading at a share price above £10 since early September 2010 and the Board is aware that having a share price of this magnitude means that savers who make small monthly share purchases through the Baillie Gifford Share Plan may find that a considerable proportion of their monthly payment remains uninvested. Participants in the Dividend Reinvestment Plan are similarly affected. The Board has decided it would be appropriate to sub-divide each of the existing shares of 25p nominal value into five shares of 5p nominal value. Such a sub-division requires shareholder approval and this will be dealt with by Resolution 13set out in the Notice of Annual General Meeting in the Annual Report.

Outlook

What looked bad last year looks much the same this year. What looked good structurally mainly still looks good. What has changed may be simplified as follows: corporate margins have risen further still and share prices have risen to reflect that. Real standards of living are a bit lower in the West and a bit higher elsewhere. Inflation is an increasing problem in most places and commodity prices have been very strong as old world currencies have been weak. Quantitative easing has had a remarkable effect on asset prices and rather little on economic activity other than those in the developing world to which much of the newly created money has fled. Quantitative easing has been an extraordinary experiment. Money has so far gone where it is least needed. This has cauterised the wound but done nothing to cure the infection.

On the bright side, corporations have rarely if ever done so well. Margins and returns on capital are at or near record highs. Western workforces are exposed to the full force of global competition and lack bargaining power. Balance sheet deleveraging has been dramatic and dividend expectations have risen repeatedly. By contrast, government finances are still in a sorry state. We expressed the view last year that sovereign bond yields seemed to us lower than was consonant with the short and long term fiscal health of the issuers. This view, which we continue to hold, led us to reduce bond holdings radically. While there are a few notable instances of differentiation within the Eurozone, the main sovereign yields have not much changed over the year. Short interest rates in the West are still at very low levels and increasingly negative in real terms while budget deficits remain ugly and are mostly growing uglier.

Debasing one's currency, inducing higher inflation, describing it as temporary and running negative real interest rates has been the first line response. Austerity, as we argued last year, is much disliked and too much is usually self-defeating. Greece is in the process of confirming this contention. No new structural solution for Western economies has been found over the past year, and the potential for some sort of market led upheaval has increased in the meantime.

Upheaval, though, remains a secondary prospect to the more likely 'extend and pretend' outcome of muddling through and hoping that 'something will turn up'. Like Mr Micawber, affected Western governments appear to have wound up in a modern form of debtors' prison. Micawber eventually makes a successful fresh start by emigrating to Australia, a leading developing economy of its day. As we have noted before, our portfolio has largely done likewise. While we hold a lot of British shares, for example, only a tiny proportion can be said to be exposed to the UK domestic economy.

CHAIRMAN'S STATEMENT (Ctd)

Overshadowed by the ongoing saga of excess leverage, governmental dysfunction and rising sovereign risk, the pace of change on the ground in the world of business is accelerating and the creative elements of creative destruction are cause both for optimism and for investment enthusiasm. We inhabit a world full of new consumers, new technologies and new types of businesses imbued with the potential to evolve rapidly and innovate profitably. Rapid capital-light growth is frequently proving possible. Our portfolio strives to capture as much of this opportunity as it can.

Taking both positive and negative elements into account, we have opted to remain fairly fully invested but have recently taken out some insurance against the possibility that sovereign distress becomes and remains the main story. It is plausible to envisage major bond markets selling off and adverse short term consequences for most investments. With volatility at the time very low, and insurance consequently reasonably priced, we sold index futures equivalent to a fifth of the value of gross assets and capped related potential liabilities by purchasing out of the money call options to an equivalent gross value.

This markedly reduces net exposure to equities. It is an alternative to simply increasing the level of cash we hold relative to equities, as doing that would have various unintended consequences. First, cash is no panacea, with real interest rates negative in most places. Secondly, we wish to address a lowish yet significant probability; our central case remains that a forward-looking equity portfolio is as attractive or is a more attractive long term proposition than alternatives. Third, even if we are right to be concerned, timing our concern appropriately is nearly impossible - the insurance has been taken out to last until December next year.

In summary, macro-economic uncertainty is high as structural Western funding concerns are neither going away nor being adequately addressed. Corporate winners, however, are thriving as rarely before and major structural changes in the corporate landscape are underway. Online retailers are winning market share from high streets and malls. The developing world is building and exploiting infrastructure. Rising living standards there are leading to growth in consumption and changes in the nature of demand. Productivity enhancing technologies and capital spending are providing great leaps forward in many industries. Healthcare is throwing up innovation that looks likely to transform human lives over coming decades. We have set ourselves to cater for the main elements of this outlook in trying to both preserve shareholders' capital and make worthwhile returns on it as opportunity allows.

Annual General Meeting and Board Changes

The Company's Annual General Meeting will be held at noon on Monday 10 October 2011, at the offices of Baillie Gifford & Co, as outlined in the Notice of Meeting at the end of the Annual Report. To celebrate thirty years since its listing on the London Stock Exchange, the Company will offer its shareholders a buffet lunch following the meeting. This will be my last AGM as Chairman, having served as your Chairman since 1989. I look forward to seeing you there, and would encourage you to indicate your intention to attend by marking your Proxy Forms or Forms of Direction as appropriate.

CHAIRMAN'S STATEMENT (Ctd)

You will note that the Notice of Meeting includes two Resolutions which relate to Directors' fees. The first, number 2, is to approve the Directors' Remuneration Report, which appears on page 28 of the Annual Report and notifies you of an increase in the level of fees to take effect from 1 July 2011. The second, number 12, is to authorise an increase in the overall limit on Directors' fees to £125,000 per annum. Although the current level of fees is within the agreed limit the increase provides flexibility for the appointment of a fifth Director and an increase in fee levels in future years.

I am sorry to finish on a sad note, but I would like to express regret at the death earlier this year of Bruce Johnston. Bruce was well known to many of the Company's shareholders and played an important role in the flotation of Mid Wynd's shares on the Stock Exchange in 1981 as well as giving valuable service as a Director from 1989 to 2005.

Patrick MS Barron

19 August 2011

MANAGERS' PORTFOLIO REVIEW

The portfolio

Bonds remain at the same low level of 6% of assets they had reached this time last year. The main elements of this are: a large holding in Athena Debt Opportunities fund, the net asset value of which has appreciated by some 47% over the past year, a new holding in Brazilian 2045 index linked local currency bonds which offers a high real return and a reduced holding in CQS Rig Finance Fund. This latter has recovered more than tenfold from its nadir around the financial crisis when it had too much leverage. Scope for further appreciation from here exists but the appealing degree of free optionality has evaporated.

Ten Largest holdings

Level E Maya Fund

You will find in last year's report a fuller description of the fund and associated option. The fund endured some months of teething troubles before securing best access to the data feeds it requires to function to its full potential. Since solving these early problems last November, progress and returns have been encouraging, broadly yielding very low volatility, low correlation with equities and only a couple of small monthly drawdowns, with net returns over the period well ahead of cash. Some new money has come into the fund which should gradually enable the group to deploy greater resources to improving and evolving the approach. Our shareholding in the fund remains as it was. Our option (held at its book cost of zero) over the business of Level E itself is not contingent upon continuing to hold shares in the fund, extends for approximately another 4 years and is at a fixed price for a fixed percentage.

Odontoprev

Our Brazilian dental plan company is in the midst of another move to consolidate its leadership of an attractive and immature market. Quality of service, high average length of tenure of customers, innovative technology to drive down costs and free cash flow generation despite rapid growth rates mark this company out as a highly attractive long term proposition. Pricing power and capital allocation should provide continuing and so far un-forecasted improvement in earnings.

Ocean Wilsons

All major elements of Wilson Sons' Brazilian marine related businesses are operating smoothly and profitably at present, with excellent opportunity to reinvest profits at attractive prospective returns. Towage, port terminals and platform supply vessels all have strong competitive positions in areas where demand looks likely to strengthen further over coming years. The Ocean Wilsons holding company discount has narrowed significantly over the year yet the shares remain highly interesting even if not quite as undervalued as in the past.

MANAGERS' PORTFOLIO REVIEW (Ctd)

ASOS

The earnings and cash generative power of a successful internet based retail operation has been amply demonstrated by ASOS over the past year. Despite an unwelcoming domestic retail environment, structural advantages and cultural shifts in consumption habits seem likely to provide further market share gains at home together with increasingly profitable and rapid expansion abroad.

Kone

Our long held and much admired Finnish elevator business has had another strong year with little change to the underlying strength of the fundamental drivers of high returns, reasonable growth, gradually rising margins and steadily expanding cash generation. The world continues to urbanise and denser populations live, on average, a good deal further above ground level than before. In addition to this tailwind for new installation, maintenance services, driven by the need for security, reliability and speed, remain an attractive business. Alignment of management and capital allocation are supporting attractions here as they are for Schindler, which also remains a significant holding in the same industry.

Athena Debt Opportunities Fund

The distressed prices that prevailed in the world of securitised, collateralised real estate related debt have improved markedly over the past year. The favourable terms attaching to senior tranches have provided additional cash flows as envisaged, some of which have been re-invested within the fund. Net asset value has risen accordingly. Given the narrower spreads that now prevail here, and the continuing illiquidity and opacity of this asset class, we will reduce exposure to the fund at its next redemption date.

YOOX

Yoox.com is a mid size Italian online luxury fashion retailer that is rapidly becoming the first port of call for regular fashion shoppers across an expanding range of geographies. The group provides both dedicated sites to key individual brands, ensuring brand and product integrity, up to the minute information and quality of service to the end consumer, and also offers a multi-brand website that allows effective comparative shopping. This is a fairly young company that is re-investing substantially in future growth, so the price/earnings ratio appears high. On a price to sales basis, however, valuation remains moderate for something with this potential.

IP Group

This is a fairly recent purchase of a group with unique access to and participation in the commercialisable intellectual property output of many of the UK's best universities. The company holds stakes in a range of mature or maturing venture capital science based businesses, some listed and some on their way to becoming listed. We believe that the current share price stands at a significant discount to the underlying realisable value of the holdings and participated in a fund-raising to allow the group to make late stage follow on investments in a few key businesses.

MANAGERS' PORTFOLIO REVIEW (Ctd)

Seadrill

Seadrill's industry-leading modern deepwater drilling fleet faces rosy prospects in coming years should the oil price remain anywhere close to present levels. The company, in addition to operating its existing assets very effectively, has been creatively proactive in securing further capacity across relevant segments. We have also enjoyed a high and rising stream of dividends.

Dragon Oil

This Turkmen oil company has seen strong news flows and share price performance around flow rates and thereby prospective and actual production levels at most of its key producing assets. We continue to believe that these favourable trends have much further to run and that estimates do not yet envisage such an outcome.

Transactions

Thematically, the bias to developing world demand remains a major influence on the portfolio. An aversion to developed world banks is a further long standing feature. A preference for smaller energy companies and related oil services businesses over oil majors has been and remains worthy of comment. A growing exposure to internet related businesses (ASOS, Digital Garage, So-Net, Start Today, M3, YOOX, Naspers, MercadoLibre, Ctrip.com for example) is coming through. This reflects a combination of the success of existing holdings in this area and the discovery of appealing new ones.

Overall, the portfolio is far more idiosyncratic than thematic, however, and nearly entirely divorced from the 20/20 hindsight captured by global indices. Hsu Fu Chi International is a new name this year, a Taiwanese owned, Singapore listed Chinese purveyor of confectionery. There are takeover talks with Nestle and an as yet inadequate offer. We have returned to ownership of Falkland Oil and Gas, a position sold early in our fiscal year at prices above £2 a share and just prior to drilling the Toroa prospect. Following its failure, the company has come back for more money to finance what we have always considered to be the more interesting Loligo prospect. Catco C shares are a new holding. After successful forays into catastrophe bonds following past natural disasters, we wanted to find a way to benefit from a strong rate cycle following the earthquake and tsunami in Japan earlier this year. This is a participation in new policies written under today's more favourable conditions. Research in Motion, maker of Blackberries, has been a contrarian purchase lately. The shares have had a torrid time on the presumption that the iPhone will destroy the franchise, yet we see ongoing rapid growth in Asia and other developing markets where reliability and cost are winning qualities.

Craneware is an Edinburgh based company that dominates the US hospital billing software market. Chariot Oil and Gas has vast prospective oil licence areas off the coast of Namibia on which we anticipate partnership announcements with major oil companies. Doric Nimrod Air One is a company created to own the equity in an Airbus A380. The primary attractions of this investment are the excellent counterparty in Emirates Airlines, the terms of the 12 year contract and the very low long term fixed rate of interest available on the debt financed portion. We anticipate that in addition to a healthy annual dividend yield there ought to be material upside in due course relating to the residual value of the plane at the end of the contract once all associated debts have been paid off.

MANAGERS' PORTFOLIO REVIEW (Ctd)

Letshego is a micro lender based in Botswana and operating across a range of mostly southern African countries. Customers are nearly all public employees and repayments are drawn directly from pay cheques. Nanoco is a spin out from Manchester University engaged in the commercial production of non-cadmium based quantum dots. These are a uniquely versatile type of semiconductor which can be grown in crystalline form to produce various different colours of highly energy efficient LED lighting. Exploitation of this technology is at an early stage, but richer colour effects in TVs using far less power is an obvious starting point. Low cost and optimally efficient solar energy conversion could well turn out to be another as yet untapped opportunity.

Sales over the course of the year included Anheuser Busch Inbev, McDonalds, Fairfax Financial Holdings, Getinge, Polaris Minerals, most but not quite all of Bahamas Petroleum, Gushan Environmental Energy, Juridica Investments and OSX. Reasons ranged from a growing inability to distinguish our views on these holdings from those of the market to disappointment or rising fear of disappointment.

In early July, the Company acquired synthetic put options over the S&P 500 Index, the FTSE 100 Index and the Eurostoxx 50 Index. This represents reasonably priced insurance over one fifth of the portfolio against the chance that markets experience a substantial setback. Whilst this is by no means a central contention, this strategy avoids the need for any radical alterations of the underlying portfolio.

Turnover was 35% for the portfolio as a whole. This comprised a spectrum - low, as one might expect, from that segment of the portfolio where the inefficiency we are attempting to exploit is the increasing short term-ism of the markets; and higher from that category of mostly small holdings where the hypothesis is the exploitation of volatility or the belief that uncertainty or event driven stocks are frequently mispriced to reflect the discomfort they typically cause their holders. Falkland Oil and Gas might be a good example of the latter.

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

THIRTY LARGEST HOLDINGS at 30 June 2011
Name	Region		Business		2011			2010
					Value £'000	% of total assets		Value £'000
Level E Maya Fund		United Kingdom		Artificial intelligence based algorithmic trading	2,454	3.4	2,473
Odontoprev		Emerging Markets		Dental health services - Brazil	2,286	3.2	941
Ocean Wilsons		United Kingdom		Tugboats, platform supply vessels and container handling - Brazil	1,755	2.4	1,145
ASOS		United Kingdom		Online fashion retailer	1,710	2.4	774
Kone		Continental Europe		Elevators	1,704	2.4	1,167
Athena Debt Opportunities Fund		Fixed Interest		Distressed debt	1,622	2.3	1,303
YOOX		Continental Europe		Online fashion retailer	1,399	1.9	-
IP Group		United Kingdom		Commercialisation of intellectual property	1,254	1.7	-
Seadrill		Continental Europe		Deep water oil rigs	1,247	1.7	826
Dragon Oil		Emerging Markets		Oil and gas exploration and production - Turkmenistan	1,126	1.6	570
Santos Brasil Participacoes		Emerging Markets		Container handling and logistics services - Brazil	1,064	1.5	525
Schindler		Continental Europe		Elevators	1,061	1.5	796
China Merchants Bank		Emerging Markets		Bank - China	1,056	1.5	1,137
Cetip		Emerging Markets		Investment services - Brazil	1,026	1.4	558
Reinet Investments SCA		Continental Europe		Investment holding company	993	1.4	835
Brazil CPI Linked 15/05/2045		Fixed Interest		Brazilian inflation-linked bond	939	1.3	-
So-Net Entertainment		Asia Pacific including Japan		Internet services - Asia	916	1.3	-
Better Capital		United Kingdom		Fund investing in distressed businesses	885	1.2	810
Novozymes		Continental Europe		Enzyme producer	878	1.2	622
Naspers		Emerging Markets		Media company - South Africa and China	875	1.2	563
Digital Garage		Asia Pacific including Japan		Internet business incubator - Japan	856	1.2	-
Edenred		Continental Europe		Prepaid service vouchers	856	1.2	-
Kenmare Resources		Emerging Markets		Natural resource mining - Mozambique	813	1.1	206
Healthspring		North America		Medicare	790	1.1	665
Chunghwa Telecom		Emerging Markets		Fixed line, mobile, broadband and internet services - Taiwan	753	1.0	-
Start Today		Asia Pacific including Japan		Online fashion retailer - Japan	731	1.0	-
The Biotech Growth Trust		United Kingdom		Biotechnology investment trust	723	1.0	600
Burford Capital		United Kingdom		Fund of lawsuits	714	1.0	370
Verizon Communications		North America		Broadband and telecommunications	709	1.0	-
Nanoco		United Kingdom		Quantum dot manufacture, second generation LEDs	705	1.0	-
					33,900	47.1	16,886

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

DISTRIBUTION OF ASSETS

			30 June 2011 %		30 June 2010 %
Equities:	United Kingdom		24.3		20.8
	Continental Europe		20.3		19.7
	North America		14.6		18.5
	Asia Pacific including Japan		7.8		6.3
	Emerging Markets		25.0		28.5
Total Equities			92.0		93.8
Fixed interest			6.0		4.7
Net liquid assets			2.0		1.5
Total assets (before deduction of bank loans)			100.0		100.0

RELATED PARTY TRANSACTIONS

The Directors' fees for the year are detailed in the Directors' Remuneration Report. No Director has a contract of service with the Company. During the year no Director was interested in any contract or other matter requiring disclosure under section 412 of the Companies Act 2006. Baillie Gifford & Co are employed by the Company as Managers and Secretaries under a management agreement which is terminable on not less than one year's notice, or on shorter notice in certain circumstances. The fee in respect of each quarter is 0.125% of the net assets of the Company attributable to its shareholders on the last day of that quarter. The management fee is levied on all assets, including holdings in collective investment schemes (OEICs) managed by Baillie Gifford & Co, however, the OEICs' share classes held by the Company do not incur management fees.  The details of the management fee are as follows:

	2011 £'000		2010 £'000
Investment management fee	318		252
	318		252

PRINCIPAL RISKS AND UNCERTAINTIES

As an Investment Trust, the Company invests in equities and makes other investments so as to achieve its investment objective of achieving capital and income growth by investing on a worldwide basis. In pursuing its investment objective, the Company is exposed to various types of risk that are associated with the financial instruments and markets in which it invests.

These risks are categorised here as market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. The Board monitors closely the Company's exposures to these risks but does so in order to reduce the likelihood of a permanent loss of capital rather than to minimise the short term volatility.

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

The Company may enter into derivatives transactions as explained in the Investment Policy on page 20 of the Annual Report. In the period under review the Company purchased equity index options. Details of derivative financial instruments open at the balance sheet date are shown below.

The risk management policies and procedures outlined in this note have not changed substantially from the previous accounting period.

Market Risk

The fair value or future cash flows of a financial instrument or other investment held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - currency risk, interest rate risk and other price risk. The Board of Directors reviews and agrees policies for managing these risks and the Company's Investment Managers both assess the exposure to market risk when making individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis.

(i) Currency Risk

Certain of the Company's assets, liabilities and income are denominated in currencies other than sterling (the Company's functional currency and that in which it reports its results). Consequently, movements in exchange rates may affect the sterling value of those items.

The Investment Managers monitor the Company's exposure to foreign currencies and report to the Board on a regular basis. The Investment Managers assess the risk to the Company of the foreign currency exposure by considering the effect on the Company's net asset value and income of a movement in the rates of exchange to which the Company's assets, liabilities, income and expenses are exposed. However, the country in which a company is listed is not necessarily where it earns its profits. The movement in exchange rates on overseas earnings may have a more significant impact upon a company's valuation than a simple translation of the currency in which the company is quoted.

Foreign currency borrowings can limit the Company's exposure to anticipated future changes in exchange rates which might otherwise adversely affect the value of the portfolio of investments.

Exposure to currency risk through asset allocation, which is calculated by reference to the currency in which the asset or liability is quoted, is shown below. The exposure of the Company's OEIC investments managed by Baillie Gifford & Co has been included in the analysis as sterling, being their currency of quotation. The main changes to net currency exposure during the year are as follows: exposure to the US dollar increased, reflecting increases in the value of US holdings; exposure to the Japanese yen increased following purchases of Japanese equities; exposure to the Brazilian real increased through the purchase of a Brazilian bond. Explanations of the changes in asset allocation can be found in the Chairman's Statement and Managers' Portfolio Review.

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

At 30 June 2011	Investments £'000		Cash and deposits £'000		Bank loans £'000		Other debtors and creditors* £'000		Net exposure £'000
US dollar	13,591		(19)		-		(15)		13,557
Euro	8,588		(27)		(1,192)		25		7,394
Norwegian krona	2,185		-		-		-		2,185
Swiss franc	2,527		346		-		-		2,873
Japanese yen	3,894		-		(2,314)		6		1,586
Brazilian real	7,159		1,008		-		14		8,181
Hong Kong dollar	2,426		-		-		-		2,426
South African rand	1,293		-		-		-		1,293
Other overseas currencies	7,374		-		-		79		7,453
Total exposure to currency risk	49,037		1,308		(3,506)		109		46,948
Sterling	21,323		51		(2,000)		(33)		19,341
	70,360		1,359		(5,506)		76		66,289

*  Includes net non-monetary assets of £11,000.

At 30 June 2010	Investments £'000		Cash and deposits £'000		Bank loans £'000		Other debtors and creditors* £'000		Net exposure £'000
US dollar	12,664		(651)		-		36		12,049
Euro	5,127		51		(1,081)		201		4,298
Norwegian krona	1,907		-		-		-		1,907
Swiss franc	2,129		193		-		-		2,322
Japanese yen	833		479		(2,266)		72		(882)
Brazilian real	4,683		2		-		-		4,685
Hong Kong dollar	2,772		-		-		-		2,772
South African rand	1,254		-		-		-		1,254
Other overseas currencies	7,101		246		-		(68)		7,279
Total exposure to currency risk	38,470		320		(3,347)		241		35,684
Sterling	16,116		82		(2,000)		180		14,378
	54,586		402		(5,347)		421		50,062

* Includes net non-monetary assets of £8,000.

Currency Risk Sensitivity

At 30 June 2011, if sterling had strengthened by 5% in relation to all currencies, with all other variables held constant, total net assets and total return on ordinary activities would have decreased by the amounts shown below. A 5% weakening of sterling against all currencies, with all other variables held constant, would have had an equal but opposite effect on the financial statement amounts. The analysis is performed on the same basis for 2010.

	2011 £'000		2010 £'000
US dollar	678		602
Euro	370		215
Norwegian krona	109		95
Swiss franc	144		116
Japanese yen	79		(44)
Brazilian real	409		234
Hong Kong dollar	121		139
South African rand	65		63
Other overseas currencies	372		364
	2,347		1,784

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

(ii) Interest Rate Risk

Interest rate movements may affect directly:

• the fair value of the investments in fixed interest rate securities;

• the level of income receivable on cash deposits;

• the fair value of the Company's fixed-rate borrowings; and

• the interest payable on any variable rate borrowings which the Company may take out.

Interest rate movements may also impact upon the market value of the Company's investments outwith fixed income securities. The effect of interest rate movements upon the earnings of a company may have a significant impact upon the valuation of that company's equity. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions and when entering borrowing agreements. The Board reviews on a regular basis the amount of investments in cash and fixed income securities and the income receivable on cash deposits, floating rate notes and other similar investments. The Company finances part of its activities through borrowings at approved levels. The amount of such borrowings and the approved levels are monitored and reviewed regularly by the Board. Movements in interest rates, to the extent that they affect the market value of the Company's fixed rate borrowings, may also affect the amount by which the Company's share price is at a discount or a premium to the net asset value.

The interest rate risk profile of the Company's financial assets and liabilities at 30 June is shown below. The main change to the interest rate risk profile of the Company's financial assets during the year has been the purchase of the Brazilian inflation-linked bond.

Financial assets	2011			2010
	Fair value £'000	Weighted average interest rate	Weighted average period until maturity	Fair value £'000	Weighted average interest rate	Weighted average period until maturity
Fixed rate:
US dollar bonds	180	4.3%	2 years	139	4.3%	3 years
Euro bonds	23	5.0%	4 years	97	5.0%	5 years
Floating rate:
UK bonds (interest rate linked to LIBOR)	678	2.0%	1 year	335	2.0%	1 year
US dollar bonds (interest rate linked to US LIBOR)	-	-	-	143	1.0%	40 years
Euro bonds (interest rate linked to Euro LIBOR)	278	9.5%	4 years	112	8.6%	5 years
Brazilian bond (interest rate linked to Brazilian CPI)	939	12.1%	34 years	-	-	-
Fixed interest collective investment schemes:
CQS Rig Finance Fund	441	-	n/a	563	-	n/a
Athena Debt Opportunities Fund	1,622	0.6%	26 years	1,303	2.9%	27 years
K1 Life Settlements 0%	201	-	n/a	-	-	-

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

The cash deposits generally comprise call deposits or short term money market deposits with original maturities of less than three months, which are repayable on demand. The benchmark rate which determines the interest payments received on cash balances is the bank base rate.

Financial Liabilities

The interest rate risk profile of the Company's bank loans and the maturity profile of the undiscounted future cash flows in respect of the Company's contractual financial liabilities at 30 June are shown below.

Interest Rate Risk Profile	2011 £'000	2010 £'000
Fixed rate - Yen denominated	2,314	2,266
Floating rate - Euro denominated	1,192	1,081
Floating rate - Sterling denominated	2,000	2,000
	5,506	5,347

Maturity Profile	2011 Within 1 year £'000	2011 Between 1 and 5 years £'000	2011 More than 5 years £'000	2010 Within 1 year £'000	2010 Between 1 and 5 years £'000	2010 More than 5 years £'000
Repayment of loans	5,506	-	-	2,000	3,347	-
Interest on loans	57	-	-	62	39	-
	5,563	-	-	2,062	3,386	-

Interest Rate Risk Sensitivity

An increase of 100 basis points in bond yields as at 30 June 2011 would have decreased total net assets and total return on ordinary activities by £145,000 (2010 - £7,000). A decrease of 100 basis points would have had an equal but opposite effect.

An increase of 100 basis points in bond yields as at 30 June 2011 would have decreased the net asset value per share (with borrowings at fair value) by 2.76p (2010 - 0.15p). A decrease of 100 basis points would have had an equal but opposite effect.

(iii) Other Price Risk

Changes in market prices other than those arising from interest rate risk or currency risk may also affect the value of the Company's net assets. The Board manages the market price risks inherent in the investment portfolio by ensuring full and timely access to relevant information from the Investment Managers. The Board meets regularly and at each meeting reviews investment performance, the investment portfolio and the rationale for the current investment positioning to ensure consistency with the Company's objectives and investment policies. The portfolio does not seek to reproduce the index, investments are selected based upon the merit of individual companies and therefore performance may well diverge from the short term fluctuations of the comparative index.

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

Other Price Risk Sensitivity

Fixed asset investments are valued at bid prices which equate to their fair value. A full list of the Company's investments is given on pages 16 to 19 of the Annual Report. In addition, a geographical analysis of the portfolio (shown above), an analysis of the portfolio by broad industrial or commercial sector and a list of the 30 largest investments by their aggregate market value (shown above) is given on pages 12 and 11 of the Annual Report Details of derivative financial instruments open at the balance sheet date are shown below. 99.5% (2010 - 103.9%) of the Company's net assets are invested in equities. The sensitivity of the Company's equity investments to general movements in equity markets has been adjusted by the use of the equity derivative instruments detailed below, with the purchase of equity index call options increasing it. Further details of the impact of these instruments on the portfolio are set out in the Managers' Portfolio Review on page 15 of the Annual Report. After taking into account the impact of the equity index options open at the balance sheet date, a 3% increase in quoted equity valuations at 30 June 2011 would have increased total assets and total return on ordinary activities by £2,016,000 (2010 - £1,560,000). A decrease of 3% would have had an equal but opposite effect.

Liquidity Risk

This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is not significant as the majority of the Company's assets are investments in quoted securities that are readily realisable. The Board monitors the exposure to any one holding. The Company has the power to take out borrowings, which give it access to additional funding when required. The Company's borrowing facilities are detailed below and the maturity profile of its borrowings is set out above.

			2011 £'000	2010 £'000
Short term loan facility			2,000	2,000
Bank loan			3,506	3,347
			5,506	5,347

A £2 million loan facility has been arranged with Lloyds TSB Scotland plc, expiring on 27 August 2011. A US$5 million loan facility has been arranged with Lloyds TSB Scotland plc, expiring on 27 February 2012. At 30 June 2011 drawings were ¥300 million at an interest rate of 1.905% per annum (2010 - ¥300 million at 1.905%); €1.32 million at an interest rate of 1.7913% per annum (2010 - €1.32 million at 0.8483%); £2 million at an interest rate of 2.3048% per annum (2010 - £2 million at 2.1724%).

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

Credit Risk

This is the risk that a failure of a counterparty to a transaction to discharge its obligations under that transaction could result in the Company suffering a loss. This risk is managed as follows:

·    Where the Investment Managers make an investment in a bond or other security with credit risk, that credit risk is assessed and then compared to the prospective investment return of the security in question.

·    The Board regularly receives information from the Investment Managers on the credit ratings of those bonds and other securities in which the Company has invested.

·    The Company's listed investments are held on its behalf by The Bank of New York Mellon, the Company's custodian. Bankruptcy or insolvency of the custodian may cause the Company's rights with respect to securities held by the custodian to be delayed. The Investment Managers monitor the Company's risk by reviewing the custodian's internal control reports and reporting their findings to the Board.

·    Investment transactions are carried out with a large number of brokers whose creditworthiness is reviewed by the Investment Managers. Transactions are ordinarily undertaken on a delivery versus payment basis whereby the Company's custodian bank ensures that the counterparty to any transaction entered into by the Company has delivered on its obligations before any transfer of cash or securities away from the Company is completed.

·    Transactions involving derivatives, and other arrangements wherein the creditworthiness of the entity acting as broker or counterparty to the transaction is likely to be of sustained interest, are subject to rigorous assessment by the Investment Managers of the creditworthiness of that counterparty.

·    Cash is only held at banks that are regularly reviewed by the Managers.

Credit Risk Exposure

The exposure to credit risk at 30 June was:

	2011 £'000	2010 £'000
Fixed interest investments	4,362	2,692
Cash and deposits	1,359	402
Debtors and prepayments	238	1,378
	5,959	4,472

None of the Company's financial assets are past due or impaired.

Fair Value of Financial Assets and Financial Liabilities

The Directors are of the opinion that the financial assets and liabilities of the Company are stated at fair value in the balance sheet with the exception of long term borrowings which are stated in accordance with FRS 26. Short term borrowings have a fair value equal to par.

	2011	2011		2010	2010
	Book £'000	Fair £'000		Book £'000	Fair £'000
Fixed rate yen loan	-	-		2,266	2,294
Floating rate euro loan	-	-		1,081	1,081
Total long term borrowings	-	-		3,347	3,375

 

PRINCIPAL RISKS AND UNCERTAINTIES (Ctd)

Gains and Losses on Purchased Options

The following purchased options were in position at 30 June 2011 (2010 - nil):

	Number of	Strike	Expiration	Premium paid	Fair value
	contracts	price	date	£'000	£'000
Nikkei 225 call	100	11,000	09/12/11	353	73
				353	73

The potential exposure to Japanese equities arising from the Nikkei 225 call options was £1,257,000 at 30 June 2011.

Gains and losses on hedges

At 30 June 2011 there were no unrecognised gains/losses on hedges (2010 - nil).

Currency gains/losses are taken to the capital reserve and are not reflected in the revenue account unless they are of a revenue nature.

Capital Management

The capital of the Company is its share capital and reserves as set out in notes 13 and 14 in the Annual Report together with its borrowings (see notes 11 and 12 in the Annual Report). The objective of the Company is to achieve capital and income growth by investing on a worldwide basis. The Company's investment policy is set out on page 20. In pursuit of the Company's objective, the Board has a responsibility for ensuring the Company's ability to continue as a going concern and details of the related risks and how they are managed are set out above. The Company has the ability to issue and buy back its shares and changes to the share capital during the year are set out in notes 14 and 15 in the Annual Report. The Company does not have any externally imposed capital requirements other than the covenants on its loans which are: (i) Total borrowings shall not exceed 25% of the Company's investment portfolio; and (ii) The Company's minimum net asset value shall be £30 million.

Investments

At 30 June 2011	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Securities
Listed equities	63,318	2,454	-	65,772
Listed equity index options	73	-	-	73
Listed convertible securities	203	-	-	203
Listed debt securities	1,380	-	2,101	3,481
Unlisted equities	-	-	153	153
Unlisted debt securities	-	-	678	678
Total financial asset investments	64,974	2,454	2,932	70,360

At 30 June 2010	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Securities
Listed equities	49,518	2,473	-	51,991
Listed convertible securities	139	-	-	139
Listed debt securities	563	-	1,558	2,121
Unlisted debt securities	-	-	335	335
Total financial asset investments	50,220	2,473	1,893	54,586

Investments in securities are financial assets designated at fair value through profit or loss on initial recognition. In accordance with Financial Reporting Standard 29 'Financial Instruments: Disclosures', the above table provides an analysis of these investments based on the fair value hierarchy described below which reflects the reliability and significance of the information used to measure their fair value.

Fair Value Hierarchy

The fair value hierarchy used to analyse the fair values of financial assets is described below. The levels are determined by the lowest (that is the least reliable or least independently observable) level of input that is significant to the fair value measurement for the individual investment in its entirety as follows:

Level 1 - investments with quoted prices in an active market;

Level 2 - investments whose fair value is based directly on observable current market prices or is indirectly being derived from market prices; and

Level 3 - investments whose fair value is determined using a valuation technique based on assumptions that are not supported by observable current market prices or are not based on observable market data.

Other Risks

Other risks faced by the Company include the following:

Regulatory Risk - failure to comply with applicable legal and regulatory requirements could lead to suspension of the Company's Stock Exchange Listing, financial penalties or a qualified audit report. Breach of section 1158 of the Corporation Tax Act 2010 could lead to the Company being subject to tax on capital gains. The Managers monitor investment movements and the level of forecast income and expenditure to ensure the provisions of section 1158 are not breached. Baillie Gifford's heads of Business Risk & Internal Audit and Regulatory Risk provide regular reports to the Audit Committee on Baillie Gifford's monitoring programmes.

Major regulatory change could impose unnecessary compliance burdens on the Company or threaten the viability of the investment company structure. In such circumstances representation is made to ensure that the special circumstances of investment trusts are recognised.

Operational/Financial Risk - failure of the Managers' accounting systems or those of other third party service providers could lead to an inability to provide accurate reporting and monitoring or a misappropriation of assets. The Managers have a comprehensive business continuity plan which facilitates continued operation of the business in the event of a service disruption or major disaster. The Board reviews the Managers' Report on Internal Controls and the reports by other key third party providers are reviewed by the Managers on behalf of the Board.

Premium/Discount Volatility - the premium/discount at which the Company's shares trade can change. The Board monitors the level of premium/discount and the Company has authority to issue or buy back its own shares.

Gearing Risk - the Company may borrow money for investment purposes. If the investments fall in value, any borrowings will magnify the extent of this loss. If borrowing facilities are not renewed, the Company may have to sell investments to repay borrowings. All borrowings require the prior approval of the Board and gearing levels are discussed by the Board and Managers at every meeting. The majority of the Company's investments are in listed securities that are readily realisable.

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements respectively; and

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors have delegated responsibility to the Managers for the maintenance and integrity of the Company's page of the Managers' website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the Directors, whose names and functions are listed within the Directors and Management section of the Annual Report confirm that, to the best of their knowledge:

•     the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and loss of the Company; and

•     the Directors' Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

By order of the Board

Richard R J Burns

19 August 2011

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

INCOME STATEMENT

	For the year ended 30 June 2011				For the year ended 30 June 2010
	Revenue £'000	Capital £'000	Total £'000		Revenue £'000	Capital £'000	Total £'000
Gains on investments	-	12,589	12,589		-	11,977	11,977
Currency losses	-	(117)	(117)		-	(293)	(293)
Income (note 2)	1,338	-	1,338		1,263	-	1,263
Investment management fee	(159)	(159)	(318)		(126)	(126)	(252)
Other administrative expenses	(186)	-	(186)		(168)	-	(168)
Net return before finance costs and taxation	993	12,313	13,306		969	11,558	12,527
Finance costs of borrowings	(54)	(54)	(108)		(45)	(45)	(90)
Net return on ordinary activities before taxation	939	12,259	13,198		924	11,513	12,437
Tax on ordinary activities	(63)	-	(63)		(77)	7	(70)
Net return on ordinary activities after taxation	876	12,259	13,135		847	11,520	12,367
Net return per ordinary share (note 3)	17.16p	239.99p	257.15p		16.85p	229.23p	246.08p
Dividends paid and proposed per ordinary share (note 4)	16.50p				15.50p

The total column of the Income Statement is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

BALANCE SHEET

30 June 2011 £'000		30 June 2010 £'000
Fixed Assets
Investments held at fair value through profit or loss	70,360		54,586
Current Assets
Debtors	238		1,378
Cash and deposits	1,359		402
	1,597		1,780
Creditors Amounts falling due within one year (note 5)	(5,668)		(2,957)
Net current assets	(4,071)		(1,177)
Total assets less current liabilities	66,289		53,409
Creditors Amounts falling due after more than one year (note 5)	-		(3,347)
Total net assets	66,289		50,062
Capital and reserves
Called-up share capital	1,318		1,241
Capital redemption reserve	16		16
Share premium	3,818		20
Capital reserve	59,554		47,295
Revenue reserve	1,583		1,490
Shareholders' funds	66,289		50,062
Net asset value per ordinary share (after deducting borrowings at fair value)	1,257.2p		1,008.2p
Net asset value per ordinary share (after deducting borrowings at par)	1,257.2p		1,008.7p

 

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

 

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 30 June 2011

	Share capital £'000	Capital redemption reserve £'000	Share premium £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 July 2010	1,241	16	20	47,295	1,490	50,062
Net return on ordinary activities after taxation	-	-	-	12,259	876	13,135
Shares issued	77	-	3,798	-	-	3,875
Dividends paid during the year (note 4)	-	-	-	-	(783)	(783)
Shareholders' funds at 30 June 2011	1,318	16	3,818	59,554	1,583	66,289

For the year ended 30 June 2010

	Share capital £'000	Capital redemption reserve £'000	Share premium £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 July 2009	1,257	-	20	36,391	1,397	39,065
Net return on ordinary activities after taxation	-	-	-	11,520	847	12,367
Shares purchased for cancellation	(16)	16	-	(616)	-	(616)
Dividends paid during the year (note 4)	-	-	-	-	(754)	(754)
Shareholders' funds at 30 June 2010	1,241	16	20	47,295	1,490	50,062

 

*Capital reserve balance as at 30 June 2011 included an investment holding gain of £16,251,000 (30 June 2010: gain of £8,682,000).

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

CASH FLOW STATEMENT
	For the year ended 30 June 2011			For the year ended 30 June 2010
	£'000	£'000		£'000	£'000
Net cash inflow from operating activities		828			755
Servicing of finance
Interest and breakage costs paid	(109)			(90)
Net cash outflow from servicing of finance		(109)			(90)
Taxation
Corporation tax paid	-			(154)
Total tax paid		-			(154)
Financial investment
Acquisitions of investments	(29,760)			(30,573)
Disposals of investments	27,242			28,147
Realised currency profit	42			29
Net cash outflow from financial investment		(2,476)			(2,397)
Equity dividends paid (note 4)		(783)			(754)
Net cash outflow before financing		(2,540)			(2,640)
Financing
Shares issued	3,875			-
Shares purchased for cancellation	(378)			(238)
Bank loans drawn down	-			3,137
Net cash inflow from financing		3,497			2,899
Increase in cash		957			259
Reconciliation of net cash flow to movement in net debt
Increase in cash in the year		957			259
Net cash inflow from bank loans		-			(3,137)
Exchange movement on bank loans		(159)			(322)
Movement in net debt in the year		798			(3,200)
Net debt at 1 July		(4,945)			(1,745)
Net debt at 30 June		(4,147)			(4,945)
Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
Net return before finance costs and taxation		13,306			12,527
Gains on investments		(12,589)			(11,977)
Currency losses		117			293
Amortisation of fixed interest book cost		(57)			(70)
Decrease in accrued income		86			44
Decrease in debtors		2			10
Increase in creditors		28			9
Overseas tax suffered		(65)			(58)
Income tax suffered		-			(23)
Net cash inflow from operating activities		828			755

MID WYND INTERNATIONAL INVESTMENT TRUST PLC

NOTES

1.	The financial statements for the year to 30 June 2011 have been prepared on the basis of the accounting policies set out in the Company's Annual Report and Financial Statements at 30 June 2010, which are unchanged from the prior year and have been applied consistently.
				30 June 2011 £'000					30 June 2010 £'000
2.	Income
	Income from investments and interest receivable			1,335					1,257
	Other income			3					6
				1,338					1,263
				30 June 2011 £'000					30 June 2010 £'000
3.	Net return per ordinary share
	Revenue return			17.16p					16.85p
	Capital return			239.99p					229.23p
	Total return			257.15p					246.08p
	Revenue return per ordinary share is based on the net revenue on ordinary activities after taxation of £876,000 (2010 - £847,000) and on 5,108,300 (2010 - 5,025,506) ordinary shares, being the weighted average number of ordinary shares in issue during the year. Capital return per ordinary share is based on the net capital gain for the financial year of £12,259,000 (2010 - net capital gain of £11,520,000) and on 5,108,300 (2010 - 5,025,506) ordinary shares, being the weighted average number of ordinary shares in issue during the year. There are no dilutive or potentially dilutive shares in issue.
			2011			2010		2011 £'000		2010 £'000
4.		Ordinary Dividends
		Amounts recognised as distributions in the year:
		Previous year's final (paid 7 October 2010)	9.00p			8.50p		447		427
		Interim (paid 1 April 2011)	6.50p			6.50p		336		327
			15.50p			15.00p		783		754

MID WYND INTERNATIONAL INVESTMENT TRUST PLC NOTES (Ctd)
4.	Ordinary Dividends (Ctd)
	We also set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered.  The revenue available for distribution by way of dividend for the year is £876,000 (2010 - £847,000).
		2010		2009		2010 £'000		2009 £'000
	Dividends paid and payable in respect of the year:
	Interim dividend per ordinary share (paid 1 April 2011)	6.50p		6.50p		336		327
	Proposed final dividend per ordinary share (payable 14 October 2011)	10.00p		9.00p		527		447
		16.50p		15.50p		863		774
	If approved the final dividend will be paid on 14 October 2011 to all shareholders on the register at the close of business on 9 September 2011. The ex-dividend date is 7 September 2011. The Company's Registrar offers a Dividend Reinvestment Plan and the final date for receipt of elections for this dividend is 23 September 2011.
6.	Creditors falling due within one year include a £2 million bank loan repayable on 27 August 2010 (2010 - £2 million) and bank loans of ¥300 million (2010 - ¥300 million) and €1.32 million (2010 - €1.32 million) which are repayable on 27 February 2012 and were creditors falling due after more than one year in the prior year's financial statements.
7.	In the year to 30 June 2011 the Company allotted 310,000 ordinary shares with a nominal value of £77,500 for a total consideration of £3,875,000 (2010 - bought back 65,000 ordinary shares with a nominal value of £16,250 at a total cost of £616,000). At 30 June 2011 the Company had authority to buy back 743,918 ordinary shares and to allot a further 186,276 ordinary shares without application of pre-emption rights in accordance with the authorities granted at the AGM in September 2010.
8.	The Annual Report and Financial Statements including the Notice of Annual General Meeting will be available on the Managers' website www.bailliegifford.com  on or around 30 August 2011.
9.	The financial information set out above does not constitute the Company's statutory accounts for the year ended 30 June 2011.  The financial information for 2010 is derived from the financial statements for 2010 which have been delivered to the Registrar of Companies.  The Auditors have reported on the 2010 and 2011 accounts; their reports for both years were unqualified and did not contain a statement under sections 495 to 497 of the Companies Act 2006.  The statutory accounts for 2011 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
10.	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
	Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.

- ends -

 

END

 

 

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