Final Results
Mid Wynd Inter Inv Trust PLC
13 August 2002
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
Results for the year to 30 June 2002
13 August 2002
Salient points
• Outperformance in declining markets: NAV per share fell by 8.8% in the
first half, and by 7.1% in the second; an overall fall of 15.2%. This is
against falls in the World Index of 10.5% and 13.4% for the first and second
halves respectively; an overall fall of 22.5%. It will be seen therefore
that our relative performance grew stronger as the year progressed. This
strong outperformance has been delivered by following a cautious strategy
with significant and rising exposure to fixed income and positive stock
selection in the US, Europe and UK.
• Earnings per share 10.18p up 5.6%: The Company's increased exposure to
fixed interest has delivered a higher than predicted income. However
earnings per share could dip significantly when the Company switches to
equities at some future point.
• Final dividend 5.30p per share and 8.90p for the year an increase 4.7%:
The Board has recommended only a modest increase in the final dividend as
earnings are expected to fall as the Company increases its exposure to
equities.
• Market outlook: In the worst year for stockmarkets since the 1970s it is
difficult to comment sensibly on the prospects for the year ahead. Market
falls have, however, produced opportunities to buy shares in well-managed,
well-financed businesses on attractive ratings. Although there may be
further falls in the short term, the Board believes that investing in these
businesses at current levels will prove to be very rewarding.
The objective of Mid Wynd International Investment Trust PLC is to achieve
capital and income growth by investing on a worldwide basis. The trust has total
assets of £34m.
Mid Wynd is managed by Baillie Gifford & Co., the leading Edinburgh based fund
management group with £20 billion under management and advice
- ends -
For further information please contact:
Michael MacPhee, Manager
Mid Wynd International Investment Trust PLC 0131 222 4000
Mike Lord, Director
Broadgate 020 7726 6111
Baillie Gifford & Co. is regulated by the Financial Services Authority.
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
The following is the unaudited preliminary statement for the year to 30 June
2002 which was approved by the Board on 12 August 2002. The Directors of Mid
Wynd International Investment Trust PLC are recommending to the Annual General
Meeting of the Company to be held on 14 October 2002 the payment of a final
dividend of 5.30p net (5.10p net last year) per ordinary share, making a total
of 8.90p net (8.50p net last year) per ordinary share for the year ended 30 June
2002.
STATEMENT OF TOTAL RETURN
(unaudited and incorporating the revenue account*)
For the year ended For the year ended
30 June 2002 30 June 2001
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (5,799) (5,799) - (1,467) (1,467)
Currency gains - 88 88 - 83 83
Income (note 2) 858 - 858 849 - 849
Investment management fee (88) (88) (176) (105) (105) (210)
Other administrative expenses (122) - (122) (130) - (130)
Net return before finance costs
and taxation 648 (5,799) (5,151) 614 (1,489) (875)
Finance costs of borrowings (7) (7) (14) (11) (11) (22)
Return on ordinary activities
before taxation 641 (5,806) (5,165) 603 (1,500) (897)
Tax on ordinary activities (129) 29 (100) (119) 35 (84)
Return on ordinary activities
after taxation 512 (5,777) (5,265) 484 (1,465) (981)
Dividends in respect of equity (448) - (448) (427) - (427)
shares
Transfer to/(from) reserves 64 (5,777) (5,713) 57 (1,465) (1,408)
Return per ordinary share 10.18p (114.91p) (104.73p) 9.64p (29.13p) (19.49p)
(note 3)
Dividend per ordinary share (note 4) 8.90p 8.50p
* The revenue column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
SUMMARISED BALANCE SHEET
at 30 June 2002
(unaudited)
30 June 2002 30 June 2001
£'000 £'000
Net assets
Fixed asset investments 33,167 38,362
Net liquid assets 504 1,100
Total assets (before deduction of bank loan) 33,671 39,462
Bank loan (note 5) (1,861) (1,939)
31,810 37,523
Capital and reserves
Called-up share capital 1,257 1,257
Capital reserves 29,944 35,721
Revenue reserve 609 545
Equity shareholders' funds 31,810 37,523
Net asset value per ordinary share 632.7p 746.3p
Ordinary shares in issue 5,027,766 5,027,766
DISTRIBUTION OF ASSETS
at 30 June 2002
(unaudited)
30 June 2002 30 June 2001
% %
Equities: United Kingdom
16.4 16.1
Continental Europe 19.2 20.1
North America 28.0 35.0
Japan 9.4 9.0
Asia Pacific 3.2 3.1
Other Emerging Markets 2.2 3.1
78.4 86.4
Bonds: United Kingdom 5.7 3.9
Continental Europe 8.9 0.4
North America 5.5 6.5
Net liquid assets 1.5 2.8
Total assets (before deduction of bank loan) 100.0 100.0
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
SUMMARISED CASH FLOW STATEMENT
(unaudited)
For the year ended For the year ended
30 June 2002 30 June 2001
£'000 £'000 £'000 £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES 381 475
NET CASH OUTFLOW FROM SERVICING OF FINANCE (12) (31)
TOTAL TAX PAID (1) -
FINANCIAL INVESTMENT
Acquisitions of investments (14,716) (20,714)
Disposals of investments 14,204 18,249
Realised currency profit/(loss) 10 (87)
NET CASH OUTFLOW FROM FINANCIAL INVESTMENT (502) (2,552)
EQUITY DIVIDENDS PAID (437) (422)
NET CASH OUTFLOW BEFORE FINANCING (571) (2,530)
FINANCING
Bank loan drawn down - 1,997
Bank loan repaid - (1,476)
Realised currency loss on bank loan - (285)
NET CASH INFLOW FROM FINANCING - 236
DECREASE IN CASH (571) (2,294)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the period (571) (2,294)
Cash used to repay bank loan - (236)
Exchange movement 78 170
MOVEMENT IN NET DEBT IN THE PERIOD (493) (2,360)
NET (DEBT)/FUNDS AT 1 JULY (661) 1,699
NET DEBT AT 30 JUNE (1,154) (661)
MID WYND INTERNATIONAL INVESTMENT TRUST PLC
NOTES
1. The financial statements for the year to 30 June 2002 have been prepared on
the basis of the accounting policies set out in the Company's financial
statements at 30 June 2001.
30 June 2002 30 June 2001
£'000 £'000
2. Income
Income from investments and interest receivable 857 849
Other income 1 Nil
3. Return per ordinary share
Revenue return 512 484
Capital return (5,777) (1,465)
Return per ordinary share is based on the above totals for revenue and
capital and on 5,027,766 ordinary shares, being the number of ordinary
shares in issue throughout each year.
4. The total cost of the dividend for the year is £448,000 (2001 - £427,000).
If approved the final dividend will be paid on 16 October 2002 to all
shareholders on the register at the close of business on 27 September 2002.
5. Loans include Y340 million drawn down under a multi-currency loan facility
which is repayable on 5 February 2003 (2001 - Y340 million).
6. The financial information set out above does not constitute the Company's
statutory accounts for the year ended 30 June 2002. The financial
information for 2001 is derived from the statutory accounts for 2001, which
have been delivered to the Registrar of Companies. The Auditors have
reported on the 2001 accounts, their report was unqualified and did not
contain a statement under section 237(2) or (3) of the Companies Act 1985.
The statutory accounts for 2002 will be finalised on the basis of the
financial information presented in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's Annual
General Meeting.
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