Final Results

Murray International Trust PLC 28 February 2007 MURRAY INTERNATIONAL TRUST PLC Preliminary Announcement of Results for the Year to 31 December 2006 Highlights • Net Asset Value total return of 13.8% significantly ahead of benchmark return of 9.2% • Share Price total return of 13.3% • Proposed increase in 2006 final dividend to 7.6p per share making a total of 19.0p for the year, a rise of 9.8% The Directors announce the preliminary results of Murray International Trust PLC for the year ended 31 December 2006. Background 2006 proved to be another eventful year for global financial markets. The predominant economic influences were rising interest rates in the United States and the continuation of debt financed growth. At times economic trends confused equity markets with oscillating periods of strength and weakness reflecting mixed signals of underlying growth and inflation. Stubbornly high oil prices negatively impacted overall spending power as fuel costs and utility bills rose sharply. Eventually such cost increases put upward pressure on inflation, causing interest rates to move higher. Despite the mood of caution, equity markets recorded above average gains, spurred on by strong corporate profit growth and record levels of merger and acquisition activity. The net result was the fourth consecutive year of double digit returns for most global equity markets in sterling terms. Given the difficult macro-economic backdrop that prevailed these were creditable financial returns. Performance The total return on Net Asset Value was 13.8%, comfortably ahead of the return on the benchmark index of 9.2%, whilst the share price total return of 13.3% reflected a slight increase over the year in the level of discount at which the shares trade in the stock market. In this year's Annual Report the Investment Manager's Report contains an attribution analysis which provides detailed analysis of all factors affecting net asset performance. The key positive influences were significant overweight positions in Asia ex Japan and Latin America. The large underweighting in the United States contributed positively to relative out-performance, whilst strong stock selection in Emerging Markets enhanced capital returns. Dividends I am pleased to report that revenue generation from the Company's portfolio has remained strong over the year and your Board is recommending a final dividend of 7.6p which, subject to the approval of shareholders at the Annual General Meeting, will be paid on 18 May 2007 to shareholders on the register on 20 April 2007. Taking into account the three interim dividends of 3.8p, the total dividend for the year will amount to 19.0p - an increase of 9.8%. B Ordinary shares will receive a capitalisation in B Ordinary shares on 18 May 2007 amounting to 1.15043 Ordinary shares for every hundred shares held at the close of business on 20 April 2007, which is equivalent in Net Asset Value to the recommended final dividend for the year just ended. Following the changes agreed at last year's AGM, with effect from 31 December 2006, the Board will announce its interim dividends quarterly (expected to be in April, July and October). At the same time that each interim dividend is declared, there will be a bonus issue of B Ordinary shares calculated by reference to the net asset value of the B Ordinary shares in accordance with the Articles of Association of the Company. Investment Trusts as a Savings Vehicle As we enter our centenary year (the Trust was founded in December 1907 as the Scottish Western Investment Company) it is interesting to reflect on how well the Investment Trust sector has served its shareholders over the years. Despite a number of difficult periods for the economy and stock market the resilience of the traditional Investment Trust structure has enabled the sector to fulfil its role of providing good professional management at a cost considerably less than that charged by other commingled vehicles. The closed end nature of an Investment Trust means that the Manager does not have to be concerned with flows of money into and out of the Trust which might distort policy. Gearing in the capital structure is also a significant plus factor in rising markets although Boards have to be alert to the adverse affect of gearing in falling markets and manage the gearing accordingly. The discount to underlying assets at which the shares trade does fluctuate but the ability to buy back shares now available allows Boards to influence the discount to a greater extent than before and also, if used, enhances the asset value for those remaining shareholders whenever the purchases are made below asset value. In this year's Annual Report we have included a graph comparing the performance of the Investment Trust sector as a whole against the Unit Trust sector for the last five years. In this graph the Investment Trust sector shows up well. Against this background, it is surprising that the Investment Trust sector has received so much less attention from investors and financial advisers than Unit Trusts. In my view, the Investment Trust sector should be the preferred vehicle for anyone considering long term diversified investment opportunities. Centenary Year To celebrate the Trust's centenary year your Board has commissioned a booklet on the Trust and its history. It will be professionally written with the cost being met from the marketing budget. We will distribute copies to all current shareholders when one of the regular mailings is made. Circular Accompanying the Annual Report and Accounts shareholders will receive a circular which incorporates the Notice of Annual General Meeting and the resolutions to be proposed. In addition to the usual business and in common with a number of other companies, the Directors are proposing to amend the Articles of Association of the Company to reflect recent changes to the Companies Acts widening the permitted scope of an indemnity which may be granted by a company to its directors and officers. This proposed widening of the indemnity powers given to Directors reflects the more litigious nature of society and the need for directors of companies to receive limited protection in respect of the role which they perform. The new Companies Act 2006 also allows the Trust to deal directly with shareholders by electronic means. In particular the changes will enable the Trust to make greater use of electronic mail and websites when communicating Company information, including distributing annual reports and accounts and sending out notices of meeting. Your Board is keen to encourage the use of electronic communications but the Company currently only intends to use electronic means where shareholders have positively elected to receive communications in such manner. The Board will be proposing special resolutions to facilitate electronic communications and to approve the amendment to the Articles dealing with Directors' indemnities. Further details of the proposed changes can be found in the circular to shareholders accompanying the Annual Report. Outlook Looking forward, it is not difficult to construct a pessimistic case for Global Equity markets given the economic uncertainty that currently prevails and the recent long run of good market performance. We are cautious about the prospect for growth in North America and Europe and feel that high inflation might bring additional difficulties. Both the US and UK markets face tough challenges, but rapidly improving economic fundamentals in Asia and Emerging markets, areas where we are very well represented, can go a long way to picking up the slack in the global growth. At the corporate level, the emergence of high quality, global growth companies located increasingly in developing markets provides plenty of opportunity for broad-based international investment. John Trott Chairman 27 February 2007 Murray International Trust PLC Income Statement For the year ended 31 December 2006 Year ended Year ended 31 December 2006 31 December 2005 (unaudited) (audited) Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 61,182 61,182 - 116,018 116,018 Income 24,566 - 24,566 21,922 - 21,922 Investment management fees (910) (2,124) (3,034) (771) (1,798) (2,569) Performance fees - (2,565) (2,565) - (2,374) (2,374) Currency losses - (4,087) (4,087) - (3,562) (3,562) Other expenses (1,313) - (1,313) (1,097) - (1,097) _________ _________ _________ _________ _________ _________ Net return before finance costs and 22,343 52,406 74,749 20,054 108,284 128,338 taxation Finance costs of borrowing (610) (1,424) (2,034) (744) (1,735) (2,479) _________ _________ _________ _________ _________ _________ Return on ordinary activities before tax 21,733 50,982 72,715 19,310 106,549 125,859 Tax on ordinary activities (4,603) 3,147 (1,456) (4,035) 2,844 (1,191) _________ _________ _________ _________ _________ _________ Return attributable to equity 17,130 54,129 71,259 15,275 109,393 124,668 Shareholders _________ _________ _________ _________ _________ _________ Return per Ordinary share (pence) 19.8 62.5 82.3 17.7 126.4 144.1 _________ _________ _________ _________ _________ _________ Return per Ordinary share assuming full 19.5 61.8 81.3 17.4 124.8 142.2 conversion of the B Ordinary shares (pence) _________ _________ _________ _________ _________ _________ The total column of this statement represents the profit and loss account of the Company. A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. Ordinary dividends on equity shares 15,623 - 15,623 14,357 - 14,357 (£'000) _________ _________ _________ _________ _________ _________ Balance Sheet As at 31 December 2006 As at As at 31 December 2006 31 December 2005 (unaudited) (audited) £'000 £'000 £'000 £'000 Non-current assets Investments listed at fair value through 655,634 603,103 profit or loss Current assets Debtors 3,694 4,270 Cash and short term deposits 3,870 6,816 __________ __________ 7,564 11,086 __________ __________ Creditors: amounts falling due within one year Bank loans - (7,896) Other creditors (8,167) (5,007) __________ __________ (8,167) (12,903) __________ __________ Net current liabilities (603) (1,817) __________ __________ Total assets less current liabilities 655,031 601,286 Creditors: amounts falling due after more than one year Loans (72,159) (74,907) Other creditors (3,604) (2,746) __________ __________ (75,763) (77,653) __________ __________ Net assets 579,268 523,633 __________ __________ Capital and reserves Equity Shareholders' interests: Called-up share capital 21,919 21,911 Share premium account 22 23 Capital redemption reserve 8,230 8,230 Capital reserve - realised 298,874 286,597 Capital reserve - unrealised 216,571 174,727 Revenue reserve 33,652 32,145 __________ __________ Equity Shareholders' funds 579,268 523,633 __________ __________ Net Asset Value per Ordinary and B Ordinary 660.7 597.5 share (pence) __________ __________ Reconciliation of Movements in Shareholders' Funds For the year ended 31 December 2006 For the year ended 31 December 2006 (unaudited) Share Capital Capital Capital Share premium redemption reserve reserve Revenue capital account reserve realised unrealised reserve* Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 21,911 23 8,230 286,597 174,727 32,145 523,633 December 2005 Return on ordinary - - - 12,285 41,844 17,130 71,259 activities after taxation Dividends paid - - - - - (15,623) (15,623) Issue of new shares 8 (1) - (8) - - (1) ______ _______ ________ ________ ________ ________ ________ Balance at 31 21,919 22 8,230 298,874 216,571 33,652 579,268 December 2006 ______ _______ ________ ________ ________ ________ ________ For the year ended 31 December 2005 (audited) Share Capital Capital Capital Share premium redemption reserve reserve Revenue capital account reserve realised unrealised reserve* Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 21,901 23 8,230 284,112 67,829 31,227 413,322 December 2004 Return on ordinary - - - 2,495 106,898 15,275 24,668 activities after taxation Dividends paid - - - - - (14,357) (14,357) Issue of new shares 10 - - (10) - - - ________ ________ ________ ________ ________ ________ _______ Balance at 31 21,911 23 8,230 286,597 174,727 32,145 523,633 December 2005 ________ ________ ________ ________ ________ ________ _______ * The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. Cash Flow Statement For the year ended 31 December 2006 Year ended Year ended 31 December 2006 31 December 2005 (unaudited) (audited) £'000 £'000 £'000 £'000 Net cash inflow from operating activities 17,879 17,326 Returns on investments and servicing of finance Interest paid (2,233) (2,421) _________ _________ Net cash outflow from servicing of finance (2,233) (2,421) Financial investment Purchases of investments (100,174) (105,819) Movement in futures - (15,501) Sales of investments 108,267 126,614 _________ _________ Net cash inflow from financial investment 8,093 5,294 Equity dividends paid (15,404) (14,268) _________ _________ Net cash inflow before financing 8,335 5,931 Financing Expense of share issue (1) - Loans repaid (7,708) - Loans drawn down 7,708 - _________ _________ Net cash outflow from financing (1) - _________ _________ Increase in cash 8,334 5,931 _________ _________ Notes: 1. No changes to the accounting policies of the Company have been made in the year to 31 December 2006. 2. A summary of the investment changes during the year and a list of the twenty largest investments at 31 December 2006 are attached. 3. The issued share capital at 31 December 2006 was 86,583,992 Ordinary shares of 25p each and 1,092,806 B Ordinary shares of 25p each. 4 Returns per share have been based on the following weighted average number of Ordinary shares in issue during each year. Weighted average number of Ordinary shares 86,570,172 Weighted average number of B Ordinary shares 1,093,746 5. The net asset value per Ordinary and B Ordinary share has been calculated after deducting prior charges at nominal values. 6. The next date for conversion of the B Ordinary shares to Ordinary shares is 30 June 2007. The last date for receipt of certificates with the conversion notice signed on the reverse is 23 June 2007. 7. If approved: (1) the proposed final dividend of 7.60p per share will be paid on 18 May 2007 to holders of Ordinary shares on the register at the close of business on 20 April 2007; and (2) definitive certificates in respect of the B Ordinary capitalisation issue will be posted on 18 May 2007 to B Ordinary Shareholders on the register at the close of business on 20 April 2007. 8. The financial information contained within this Preliminary Announcement does not constitute the Company's statutory financial statements as defined in Section 240 of the Companies Act 1985. The statutory financial statements for the year ended 31 December 2005 have been delivered to the Registrar of Companies and contained an audit report which was unqualified and did not constitute statements under Sections 237(2) or (3) of the Companies Act 1985. The annual results will be circulated to Shareholders in the form of an Annual Report, copies of which will be available at the Company's registered office, 123 St Vincent Street, Glasgow. 9. The Annual General Meeting will be held on 26 April 2007 at The Glasgow Royal Concert Hall, Glasgow. ABERDEEN ASSET MANAGEMENT PLC SECRETARY 27 February 2007 MURRAY INTERNATIONAL TRUST PLC SUMMARY OF INVESTMENT CHANGES Valuation Appreciation/ Valuation 31 December 2005 Transactions (depreciation) 31 December 2006 £'000 % £'000 £'000 £'000 % Equities United Kingdom 150,828 24.8 (24,555) 24,936 151,209 23.1 North America 47,782 7.8 (1,743) 220 46,259 7.0 Europe ex UK 97,932 16.1 (10,877) 13,995 101,050 15.4 Japan 72,010 11.8 13,868 (7,995) 77,883 11.9 Asia Pacific ex Japan 89,325 14.7 19,442 8,958 117,725 18.0 Emerging Europe, Middle 59,927 9.8 (10,384) 24,330 73,873 11.3 East and Latin America 517,804 85.0 (14,249) 64,444 567,999 86.7 Fixed income United Kingdom 56,998 9.4 2,267 (1,753) 57,512 8.8 North America 9,521 1.6 2,938 (842) 11,617 1.8 Latin America 4,577 0.7 2,149 (538) 6,188 0.9 Europe ex UK 8,755 1.4 (3,915) (75) 4,765 0.7 Asia Pacific ex Japan 5,448 0.9 2,159 (54) 7,553 1.2 85,299 14.0 5,598 (3,262) 87,635 13.4 Other net current assets / 6,079 1.0 8,049 (14,731) (603) (0.1) (liabilities) Total assets 609,182 100.0 (602) 46,451 655,031 100.0 Summary of Net Assets Valuation 31 December 2006 £'000 % Equities 567,999 98.1 Fixed income 87,635 15.1 Other net assets (603) (0.1) Prior charges (72,159) (12.5) Other long term creditors (3,604) (0.6) _______ ________ Equity Shareholders' funds 579,268 100.0 _______ ________ Twenty Largest Investments As at 31 December 2006 Valuation Total Security £'000 assets % Atrium Underwriting 23,027 3.5 Petrobras ADR 22,003 3.4 Resolution 20,528 3.1 Tenaris ADR 20,348 3.1 British American Tobacco 12,585 1.9 GlaxoSmithKline 12,029 1.8 Petrochina 9,412 1.4 Aeropuertos del Sureste ADS 8,664 1.3 Orix Corporation 8,260 1.3 China Mobile 7,964 1.2 Vodafone Group 7,924 1.2 BT Group 7,236 1.1 ICICI Bank 7,184 1.1 Consorcio 6,937 1.1 Deutsche Postbank 6,889 1.1 Aviva (UK) 6,888 1.1 AstraZeneca 6,860 1.1 Souza Cruz 6,830 1.0 Scottish Power 6,801 1.0 Weir Group 6,675 1.0 Top twenty investments 215,044 32.8 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Murray International Trust (MYI)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today