Interim Results

Mid Wynd Inter Inv Trust PLC 06 March 2007 MID WYND INTERNATIONAL INVESTMENT TRUST PLC Results for the six months to 31 December 2006 In the six months to 31 December 2006, Mid Wynd's net asset value rose by 4.1% which compares with a rise in the Company's comparative index (FTSE World Index in sterling terms) of 6.7%. • Relative performance was hindered by stock-selection; particularly in North America and Europe ex. UK, and also the bias towards Japanese smaller companies which under-performed their larger peers. • Healthily increasing dividends have been supplemented by income from the Company's Ford and Bay Haven bonds. Earnings for the half year rose 34.6%; the full year outcome is expected to exceed last year's earnings. • The Board has decided to increase the interim dividend to 4.50 pence (31 December 2005 - 3.90 pence). • Allied to ongoing favourable business conditions, structural business strengths will increasingly play a strong role in profits growth and high quality companies should continue to flourish. The objective of Mid Wynd International Investment Trust PLC is to achieve capital and income growth by investing on a worldwide basis. The Company has total assets of £48.4m (before deduction of the bank loan of £1.5m) as at 31 December 2006. Mid Wynd is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £48 billion under management and advice as at 5 March 2007. 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 stockmarkets in which the Company invests and by the supply and demand for the Company's shares. You can find up to date performance information about Mid Wynd on the Baillie Gifford website at www.bailliegifford.com. 5 March 2007 - ends - For further information please contact: Michael MacPhee, Manager Mid Wynd International Investment Trust PLC 0131 275 2000 Mike Lord, Director Broadgate Marketing 020 7726 6111 MID WYND INTERNATIONAL INVESTMENT TRUST PLC Interim Report This year's interim report reads much as last year's - there has been a healthy progression in profits, dividends and share prices. The main distinguishing feature, unfortunately, is that your Company's net asset value has this time fallen short of the continuing rise in the FTSE World Index. Mid Wynd's NAV rose 4.1% against the index's climb of 6.7% (in sterling terms), with a total return of 5.4% comparing to the index's 7.7%. Stock-picking, after a favourable run of some years, has lately endured a more difficult period. Takeovers and acquisitions have played an increasing role in markets and Mid Wynd, to the extent affected, has tended to be more involved with those doing the taking over than those being acquired. We have also suffered somewhat in Japan from a strong bias to smaller companies there and one or two individual mishaps. It is your Manager's belief that in the coming period, structural business strengths will play at least as strong a role in profits growth as any continuation of favourable business conditions. We currently enjoy an unusually benign conjunction of global economic strength and muted inflationary pressure. It no longer appears apposite to regard levels of employment on a local basis - wages are being set according to more global parameters. Yet, western consumers are thriving for now on a diet of rising asset prices and cheaply manufactured imports. Interest rates may have peaked in America and the underlying resilience of the Japanese economy may be open to question, but growing momentum in the developing world together with long awaited signs of improved domestic circumstances in continental Europe should offset any significant damage. Rarely can one have surveyed a business landscape in which returns on capital persisted for so long at levels far beyond the cost of that capital. Yet corporations, fresh from the scars of over-investment at the turn of the millennium, have so far resisted any temptation to invest unwisely again. An investment boom in areas such as energy and resources is more a consequence of prior long term neglect. Borrowing has mainly revolved around acquisitions, in particular private equity buyers removing companies from public markets. Much of the portfolio remains unchanged, and turnover has been fairly low. Moody's, Canon, Atlas Copco, Kone, Altria, Banco Itau and Essilor continue to represent the backbone of your portfolio and our approach to investing. Otherwise of note, Golden West has been taken over and left the portfolio and the MAC Japan fund is in the process of being wound up and paid out to shareholders. The revenue account has again prospered on the back of healthily increasing dividends, supplemented by income from our Ford bond and the recently added Bay Haven bond. Both of these latter instruments mature in the not too distant future, and therefore the Company intends to exhibit some prudence in setting dividends albeit within the bounds of what is nonetheless a healthy picture. Earnings for the half year rose 34.6%; the full year outcome is expected to exceed last year's earnings. The Board has decided upon an increased interim dividend of 4.50 pence (31 December 2005 - 3.90p) payable on 10 April to shareholders on the register on 16 March. This reflects both healthy underlying revenue progress and a desire to balance payments more evenly between interim and final dividends. By order of the Board Baillie Gifford & Co 5 March 2007 The following is an interim statement for the six months ended 31 December 2006 which has been neither reviewed nor audited by the auditors. This statement is being printed and will be sent to all shareholders on 12 March 2007. Copies will be available for inspection at the Registered Office of the Company or may be obtained on request from the Managers and Secretaries after that date. MID WYND INTERNATIONAL INVESTMENT TRUST PLC INCOME STATEMENT (unaudited*) For the six months ended For the six months ended For the year ended 31 December 2006 31 December 2005 30 June 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Realised gains on investments - 3,531 3,531 - 1,214 1,214 - 4,137 4,137 Unrealised (losses)/ gains on investments - (1,523) (1,523) - 6,018 6,018 - 2,322 2,322 Currency gains/ (losses) (note 3) - 68 68 - (57) (57) - 79 79 Income (note 4) 355 - 355 312 - 312 996 - 996 Investment management fee (63) (63) (126) (60) (60) (120) (124) (124) (248) Other administrative expenses (75) - (75) (84) - (84) (144) - (144) Net return before finance costs and taxation 217 2,013 2,230 168 7,115 7,283 728 6,414 7,142 Finance costs of borrowings (12) (12) (24) (13) (13) (26) (26) (26) (52) Return on ordinary activities before taxation 205 2,001 2,206 155 7,102 7,257 702 6,388 7,090 Tax on ordinary activities (21) - (21) (18) - (18) (138) 46 (92) Return on ordinary activities after taxation 184 2,001 2,185 137 7,102 7,239 564 6,434 6,998 Return per ordinary share (note 5) 3.66p 39.81p 43.47p 2.72p 141.26p 143.98p 11.21p 127.97p 139.18p Note: Dividends paid and 3.90p 10.50p proposed per ordinary share (note 6) 4.50p * The total 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. 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 31 December 2006 (unaudited) 31 December 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 FIXED ASSETS Investments held at fair value 47,907 44,951 45,103 CURRENT ASSETS Debtors 136 154 191 Cash and short term deposits 515 2,240 2,095 651 2,394 2,286 CREDITORS Amounts falling due within one year++ (116) (105) (714) NET CURRENT ASSETS 535 2,289 1,572 TOTAL ASSETS (before deduction of loans and 48,442 47,240 46,675 provisions) Bank loans (note 7) (1,533) (1,747) (1,622) PROVISIONS FOR LIABILITIES AND CHARGES Deferred taxation (6) (6) (3) 46,903 45,487 45,050 CAPITAL AND RESERVES Called-up share capital 1,257 1,257 1,257 Share premium 20 20 20 Capital reserve - realised 35,378 29,041 31,943 Capital reserve - unrealised 9,404 14,408 10,838 Revenue reserve 844 761 992 EQUITY SHAREHOLDERS' FUNDS 46,903 45,487 45,050 NET ASSET VALUE PER ORDINARY SHARE 932.9p 904.7p 896.0p Ordinary shares in issue 5,027,766 5,027,766 5,027,766 ++ Excluding bank loans MID WYND INTERNATIONAL INVESTMENT TRUST PLC SUMMARISED CASH FLOW STATEMENT (unaudited) Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 NET CASH INFLOW FROM OPERATING ACTIVITIES (note 8) 174 135 525 NET CASH OUTFLOW FROM SERVICING OF FINANCE (24) (25) (52) TOTAL TAX PAID - - (10) NET CASH OUTFLOW FROM FINANCIAL INVESTMENT (1,398) (770) (1,072) EQUITY DIVIDENDS PAID (332) (287) (483) NET CASH OUTFLOW BEFORE USE OF LIQUID RESOURCES & FINANCING (1,580) (947) (1,092) Decrease in short term deposits - 950 950 (DECREASE)/INCREASE IN CASH (1,580) 3 (142) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/FUNDS (Decrease)/increase in cash in the period (1,580) 3 (142) Decrease in short term deposits - (950) (950) Exchange movement on bank loans 89 (73) 52 MOVEMENT IN NET (DEBT)/FUNDS IN THE PERIOD (1,491) (1,020) (1,040) NET FUNDS AT START OF THE PERIOD 473 1,513 1,513 NET (DEBT)/FUNDS AT END OF THE PERIOD (1,018) 493 473 MID WYND INTERNATIONAL INVESTMENT TRUST PLC RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (unaudited) For the six months ended 31 December 2006 Capital Capital Total reserve - reserve - shareholders' Share Share realised unrealised Revenue funds capital premium reserve £'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 - - 3,435 (1,434) 184 2,185 Dividends paid during the period# - - - - (332) (332) Shareholders' funds at 31 December 2006 1,257 20 35,378 9,404 844 46,903 For the six months ended 31 December 2005 Capital Capital Total reserve - reserve - shareholders' Share Share realised unrealised Revenue funds capital premium reserve £'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 - - 1,158 5,944 137 7,239 Dividends paid during the period# - - - - (287) (287) Shareholders' funds at 31 December 2005 1,257 20 29,041 14,408 761 45,487 For the year ended 30 June 2006 Capital Capital Total reserve - reserve - shareholders' Share Share realised unrealised Revenue funds capital premium reserve £'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 # See note 6. MID WYND INTERNATIONAL INVESTMENT TRUST PLC THIRTY LARGEST EQUITY HOLDINGS at 31 December 2006 Name Region Business Market % of value total £'000 assets Baillie Gifford Developed Asia Pacific Investment Fund 2,984 6.2 Asia Pacific Fund Danske Bank Continental Europe Retail Banking 905 1.9 Moody's North America Bond Rating Agency 819 1.7 Altria North America Tobacco and food 815 1.7 Atlas Copco Continental Europe Engineering 772 1.6 Kone Continental Europe Elevators 723 1.5 Essilor Continental Europe Ophthalmology 713 1.5 Royal Bank of Scotland United Kingdom Banking 712 1.5 UBS Continental Europe Investment and private banking 694 1.4 Royal Dutch Shell United Kingdom Oil and gas exploration and production 693 1.4 Svenska Handelsbanken Continental Europe Retail banking 646 1.3 GBL Continental Europe Investment company 621 1.3 Microsoft North America Software and computer technology 621 1.3 GlaxoSmithKline United Kingdom Pharmaceuticals 615 1.3 Celesio Continental Europe Drug wholesaler and retailer 612 1.3 SAP Continental Europe Business software 611 1.3 Nestle Continental Europe Food products 607 1.3 Carrefour Continental Europe Food products 603 1.2 CRH Continental Europe Building materials 601 1.2 Omnicom North America Advertising agency 581 1.2 Wellpoint North America Managed care 563 1.2 Walgreen North America Pharmacy chain 549 1.1 Schlumberger North America Oil services 530 1.1 Automatic Data Processing North America Payroll processing 503 1.0 Kingfisher United Kingdom DIY retailer 488 1.0 The Hershey Company North America Confectionery 483 1.0 TSX Group North America Canadian stock exchange 476 1.0 Ultra Petroleum North America Gas exploration and production 460 0.9 Mohawk Industries North America Carpets 459 0.9 Cadbury Schweppes United Kingdom Soft drinks and confectionery 458 0.9 20,917 43.2 DISTRIBUTION OF TOTAL ASSETS at 31 December 2006 (unaudited) 31 December 2006 31 December 2005 30 June 2006 % % % Equities: United Kingdom 17.9 15.5 17.1 Continental Europe 29.5 24.1 27.0 North America 24.8 27.9 25.7 Japan 9.4 13.3 11.6 Asia Pacific 6.2 7.1 7.7 Emerging Markets 6.1 4.0 4.4 Total equities 93.9 91.9 93.5 United Kingdom Bonds 1.0 - - Overseas bonds 4.0 3.4 3.1 Net liquid assets 1.1 4.7 3.4 Total assets (before deduction of bank loans) 100.0 100.0 100.0 MID WYND INTERNATIONAL INVESTMENT TRUST PLC NOTES 1. The financial information contained within this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2006 has been extracted from the statutory accounts which have been filed with the Registrar of Companies and contain an unqualified Auditors' Report and do not contain a statement under sections 237 (2) or (3) of the Companies Act 1985. 2. The financial statements for the six months to 31 December 2006 have been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 30 June 2006. The Interim Report was approved by the Board on 5 March 2007. None of the views expressed in this document should be construed as advice to buy or sell a particular investment. Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 3. Currency gains/(losses) Realised exchange difference (21) 17 27 Movement in unrealised exchange difference on loans 89 (74) 52 68 (57) 79 4. Income Income from investments and interest receivable 351 311 991 Other income 4 1 5 5. Return per ordinary share Revenue return 184 137 564 Capital return 2,001 7,102 6,434 Return per ordinary share is based on the above totals of revenue and capital and on 5,027,766 ordinary shares, being the number of ordinary shares in issue during each period. Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 6. Dividends Amounts recognised as distributions in the period: Final dividend for the year ending 30 June 2006 of 6.60p (2005 - 5.70p), paid 6 October 2006 332 287 287 Interim dividend for the year ending 30 June 2006 of 3.90p, paid 7 April 2006 - - 196 332 287 483 Dividends paid and proposed in the period: Interim dividend for the year ending 30 June 2007 of 4.50p (2006 - 3.90p) 226 196 196 Final dividend for the year ended 30 June 2006 - - 332 226 196 528 MID WYND INTERNATIONAL INVESTMENT TRUST PLC NOTES (Ctd) The interim dividend was declared after the period end date and has therefore not been included as a liability in the balance sheet. It is payable on 10 April 2007 to shareholders on the register at the close of business on 16 March 2007. The ex dividend date is 14 March 2007. 7. A US$3 million loan facility has been arranged with ING Bank N.V., expiring on 5 March 2007. At 31 December 2006 there were outstanding drawings of US$3 million (31 December 2005 and 30 June 2006 - US$3 million). Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 8. Reconciliation of net revenue before finance costs and taxation to net cash inflow from operating activities Net return on ordinary activities before finance costs and taxation 2,230 7,283 7,142 Gains on investments (2,008) (7,232) (6,459) Currency (gains)/losses (68) 57 (79) Amortisation of fixed interest book cost (21) - (12) Decrease in accrued income 69 41 2 Increase in debtors (1) (2) (12) Increase in creditors 4 10 6 Overseas tax suffered (18) (13) (54) Income tax suffered (13) (9) (9) NET CASH INFLOW FROM OPERATING ACTIVITIES 174 135 525 9. Transaction costs incurred on the purchase and sale of investments are added to the purchase cost or deducted from the sales proceeds, as appropriate. During the period, transaction costs on purchases amounted to £8,000 (31 December 2005 - £13,000; 30 June 2006 - £32,000) and transaction costs on sales amounted to £4,000 (31 December 2005 - £6,000; 30 June 2006 - £12,000). This information is provided by RNS The company news service from the London Stock Exchange

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