Final Results

Mid Wynd Inter Inv Trust PLC 07 August 2007 MID WYND INTERNATIONAL INVESTMENT TRUST PLC Results for the year to 30 June 2007 Net asset value (NAV) per share (after deducting borrowings at fair value) rose by 11.5% while the FTSE World Index in sterling terms gained 13.1%. Over five years, NAV has increased by 57.9% and the FTSE World Index by 39.1% in sterling terms. • An increased final dividend of 7.50p is being proposed giving 12.00p for the year, an increase of 14.3%. Over the year, earnings per share increased by 15.3% predominantly owing to the increased exposure to bonds. • Over the year, the Company's share price rose by 11.9%. • Asset allocation contributed to performance, notably over-exposure to Europe and under-exposure to North America. • The Company's gearing of 105% is up marginally on last year (104%) and is now in the form of Yen rather than USD borrowings. The cash weighting has declined from 3.4% to 0.2% as at the year end. • Equity valuations at present do not appear excessive and the Board and Managers are of the opinion that high quality and competitive companies should continue to produce good returns over the long term. Past performance is no guarantee of future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stock markets in which the Company invests and by the supply and demand for the Company's shares. Investment in investment trusts should be regarded as medium to long-term. You can find up to date performance information about Mid Wynd on the Baillie Gifford website at www.bailliegifford.com. Mid Wynd is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £51 billion under management and advice at 6 August 2007. 6 August 2007 - ends For further information please contact: Michael MacPhee, Manager Mid Wynd International Investment Trust PLC 0131 275 2000 Mike Lord, Director Broadgate 020 7726 6111 Mid Wynd International Investment Trust PLC Chairman's Statement In the year to 30 June 2007, net asset value (NAV) per share (after deducting borrowings at fair value) increased by 11.5% and the share price by 11.9%. Again the shares reached a new high point during the year, this time in June. After seven consecutive years of outperforming the FTSE World Index, there was a small lag in relative performance this year as the index rose by 13.1% in sterling terms. Over five years, NAV per share has increased by 57.9% and the FTSE World Index by 39.1% in sterling terms. Capital Account Stockmarkets around the world were strong again this year although, as one might expect after some years of plenty, there were periods of market uncertainty. Share prices around the world fell sharply in February 2007 in response to a modest correction in Chinese shares' otherwise stratospheric recent performance. Prices subsequently recovered. The background for business has remained exceptional. While interest rates rose in many countries, credit remains cheap by historic standards. Inflation does not yet appear to be a major concern and demand, which has been driven to a large extent by the rapid growth of developing markets, has benefited many companies in developed markets too. A feature of the period has been the continued high price of oil and commodities. The strongest markets in sterling terms were Europe, Asia Pacific and Emerging Markets which all rose by over 25% in sterling terms (with net income reinvested). The only region to decline in sterling terms was Japan which fell by 2.2%. Asset allocation was a contributor to performance during the period, notably having more than the index in Europe and less than the index in North America. Stock selection was, however, less successful over one year but this is something that I would urge investors to judge in a longer term context. In retrospect, the Company took a too cautious stance towards the use of borrowings to invest in equities and could be accused of over-conservativism during the period. However, given historically high levels of corporate profitability, the possibility of inflation pushing interest rates up further and the danger that an abundance of cheap credit has fostered injudicious financing, the Board feels the current policy accurately reflects the balance of risk and reward. Revenue Account Earnings per share were 15.3% higher at 12.93p (11.21p in 2006) largely as a result of the purchase of rather unusual and high yielding fixed interest investments. Some of the fixed interest holdings are relatively short dated and this high level of income may not be replaced in future years. Administrative expenses were contained at roughly last year's level and it is gratifying to see a fall in the Total Expense Ratio from 0.70% to 0.62%. A final dividend of 7.50p is recommended which will make a total of 12.00p for the year, an increase of 14.3% over last year's total of 10.50p. The increase is greater than had been expected owing to the positive fixed interest contribution. It is likely that the rate of dividend growth will revert to a more moderate pattern next year. VAT During the year the legality of raising VAT on Managers' fees was challenged at the European Court of Justice. The court ruled that investment trust management fees should be exempt from VAT and this should have a positive impact on the revenue account in future years. The Company should also benefit from a recovery of VAT suffered in prior years but this is likely to be a modest amount when viewed against the scale of the Company's overall assets and revenues. Discount Over the year the discount narrowed only slightly to 15.7% though it remains one of the widest in the overseas sector. This despite a good long term performance record. Consequently, this year the Board is requesting shareholder permission to buy back its own shares. While the Board is aware that liquidity in the Company's shares is not abundant, buying back shares enhances net asset value and judicious purchases help to correct imbalances between supply and demand. The Board has come to the conclusion that for your Company, the use of buybacks, in certain circumstances, may be in the best long term interests of shareholders. Any shares bought back will be cancelled. Directors' Fees The Board is also seeking approval for an increase in the fee payable to each Director from £10,000 to £12,000 per annum and that the Chairman's additional fee be increased from £3,500 to £4,500. The fees were last increased in 2005. The increases take into account both the levels of fees paid by comparable trusts, which are generally higher, and the increased duties and responsibilities of Directors. It is important that a high calibre of Director is retained by the Company. Outlook Continued global economic growth driven to a large extent by developing economies is expected to remain robust. Investment opportunities may be enhanced by the present difficulties in credit markets, and we expect the Managers to be able to identify attractive long term investment ideas over the coming year. Valuations do not appear excessive owing to the increased level of profits, though profits may be extended in some sectors. The Board's ability to forecast the future should, as with all forecasts, be viewed with caution: unexpected events occur. As around one third of the world's population, based in newly industrialising countries, strives with increasing success to better its circumstances, the past may offer little guide to the future. Past performance is no guarantee of future performance MID WYND INTERNATIONAL INVESTMENT TRUST PLC The following is the unaudited preliminary statement for the year to 30 June 2007 which was approved by the Board on 6 August 2007. The Directors of Mid Wynd International Investment Trust PLC are recommending to the Annual General Meeting of the Company to be held on 1 October 2007 the payment of a final dividend of 7.50p net (6.60p net last year) per ordinary share, making a total of 12.00p net (10.50p net last year) per ordinary share for the year ended 30 June 2007. INCOME STATEMENT (unaudited) For the year ended For the year ended 30 June 2007 30 June 2006 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 4,959 4,959 - 6,459 6,459 Currency gains - 175 175 - 79 79 Income (note 2) 1,113 - 1,113 996 - 996 Investment management fee (131) (131) (262) (124) (124) (248) Other administrative expenses (139) - (139) (144) - (144) Net return before finance costs and taxation 843 5,003 5,846 728 6,414 7,142 Finance costs of borrowings (24) (24) (48) (26) (26) (52) Net return on ordinary activities before taxation 819 4,979 5,798 702 6,388 7,090 Tax on ordinary activities (170) 48 (122) (138) 46 (92) Net return on ordinary activities after taxation 649 5,027 5,676 564 6,434 6,998 Net return per ordinary share 12.93p 99.98p 112.91p 11.21p 127.97p 139.18p Dividends paid and proposed per ordinary share (note 4) 12.00p 10.50p 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. 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 SUMMARISED BALANCE SHEET at 30 June 2007 (unaudited) 30 June 2007 30 June 2006 £'000 £'000 Fixed asset investments 52,480 45,103 Current Assets Debtors 675 191 Cash at bank 142 2,095 817 2,286 Creditors Amounts falling due within one year (note5) (703) (2,336) Net current assets/(liabilities) 114 (50) Total assets less current liabilities 52,594 45,053 Creditors Amounts falling due after more than one year (note 5) (2,422) - Provisions for liabilities and charges Deferred taxation (4) (3) Total net assets 50,168 45,050 Capital and reserves Called-up share capital 1,257 1,257 Share premium 20 20 Capital reserve - realised 36,890 31,943 Capital reserve - unrealised 10,918 10,838 Revenue reserve 1,083 992 Equity shareholders' funds 50,168 45,050 Net asset value per ordinary share (after deducting borrowings at fair value) 998.9p 896.0p Net asset value per ordinary share (after deducting borrowings at par) 997.8p 896.0p DISTRIBUTION OF ASSETS at 30 June 2007 (unaudited) 30 June 2007 30 June 2006 % % Equities: United Kingdom 17.3 17.1 Continental Europe 29.7 27.0 North America 25.5 25.7 Japan 8.9 11.6 Asia Pacific 6.5 7.7 Emerging Markets 6.5 4.4 Total Equities 94.4 93.5 Fixed interest 5.4 3.1 Net liquid assets 0.2 3.4 Total assets (before deduction of bank loan) 100.0 100.0 MID WYND INTERNATIONAL INVESTMENT TRUST PLC SUMMARISED CASH FLOW STATEMENT (unaudited) For the For the year ended year ended 30 June 2007 30 June 2006 £'000 £'000 Net cash inflow from operating activities 626 525 Net cash outflow from servicing of finance (59) (52) Total tax paid (24) (10) Net cash outflow from financial investment (2,940) (1,072) Equity dividends paid (558) (483) NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES AND FINANCING (2,955) (1,092) Net cash inflow from use of liquid resources - 950 Net cash inflow from financing 1,002 - DECREASE IN CASH (1,953) (142) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/FUNDS Decrease in cash in the period (1,953) (142) Decrease in short term deposits - (950) Increase in bank loans (1,002) - Exchange movement on bank loans 202 52 MOVEMENT IN NET (DEBT)/ FUNDS IN THE YEAR (2,753) (1,040) NET FUNDS AT 1 JULY 473 1,513 NET (DEBT)/FUNDS AT 30 JUNE (2,280) 473 RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES Net return on ordinary activities before finance costs and taxation 5,846 7,142 Gains on investments (4,959) (6,459) Currency gains (175) (79) Amortisation of fixed interest book cost (44) (12) Decrease in accrued income 35 2 Increase in debtors (6) (12) Increase in creditors 12 6 Overseas tax suffered (71) (54) Income tax suffered (12) (9) NET CASH INFLOW FROM OPERATING ACTIVITIES 626 525 MID WYND INTERNATIONAL INVESTMENT TRUST PLC RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (unaudited) For the year ended 30 June 2007 Capital Capital Total Share Share reserve reserve - Revenue shareholders' capital premium - realised unrealised reserve funds £'000 £'000 £'000 £'000 £'000 £'000 Shareholders' funds at 1 July 2006 1,257 20 31,943 10,838 992 45,050 Return on ordinary activities after taxation - - 4,947 80 649 5,676 Dividends paid during the year - - - - (558) (558) Shareholders' funds at 30 June 2007 1,257 20 36,890 10,918 1,083 50,168 For the year ended 30 June 2006 Capital Capital Total Share Share reserve reserve - Revenue shareholders' capital premium - realised unrealised reserve funds £'000 £'000 £'000 £'000 £'000 £'000 Shareholders' funds at 1 July 2005 1,257 20 27,883 8,464 911 38,535 Return on ordinary activities after taxation - - 4,060 2,374 564 6,998 Dividends paid during the year - - - - (483) (483) Shareholders' funds at 30 June 2006 1,257 20 31,943 10,838 992 45,050 MID WYND INTERNATIONAL INVESTMENT TRUST PLC NOTES (unaudited) 1. The financial statements for the year to 30 June 2007 have been prepared on the basis of the same accounting policies as those set out in the Company's Annual Financial Statements at 30 June 2006. 30 June 2007 30 June 2006 £'000 £'000 2. Income Income from investments and interest receivable 1,105 991 Other income 8 5 3. Return per ordinary share Revenue return 12.93p 11.21p Capital return 99.98p 127.97p Revenue return per ordinary share is based on the net revenue on ordinary activities after taxation of £649,000 (2006 - £564,000) and on 5,027,766 ordinary shares, being the number of ordinary shares in issue throughout each year. Capital return per ordinary share is based on the net capital gain for the financial year of £5,027,000 (2006 - net capital gain of £6,434,000) and on 5,027,766 ordinary shares, being the number of ordinary shares in issue throughout each year. There are no dilutive or potentially dilutive shares in issue. 2007 2006 2007 2006 £'000 £'000 4. Ordinary Dividends Amounts recognised as distributions in the period: Previous year's final (paid 6 October 2006) 6.60p 5.70p 332 287 Interim (paid 10 April 2007) 4.50p 3.90p 226 196 11.10p 9.60p 558 483 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 842 of the Income and Corporation Taxes Act 1988 are considered. The revenue available for distribution by way of dividend for the year is £649,000 (2006 - £564,000). 2007 2006 2007 2006 £'000 £'000 Dividends paid and proposed in the period: Interim dividend per ordinary share (paid 10 April 2007) 4.50p 3.90p 226 196 Proposed final dividend per ordinary share (payable 5 October 2007) 7.50p 6.60p 377 332 12.00p 10.50p 603 528 If approved the final dividend will be paid on 5 October 2007 to all shareholders on the register at the close of business on 21 September 2007. 5. Creditors include a bank loan of Y600 million which is repayable on 27 February 2012 (2006 - US$3 million). 6. The Report and Accounts will be available on the Managers' website www.bailliegifford.com on or around 30 August 2007. 7. The financial information set out above does not constitute the Company's statutory accounts for the year ended 30 June 2007. The financial information for 2006 is derived from the statutory accounts for 2006 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2006 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 2007 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. None of the views expressed in this document should be construed as advice to buy or sell a particular investment. This information is provided by RNS The company news service from the London Stock Exchange

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