Interim Results

Murray International Trust PLC 08 August 2006 MURRAY INTERNATIONAL TRUST PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006 The Directors of Murray International Trust PLC report the unaudited results of the company for the six months ended 30 June 2006. â€¢ Net Asset Value Total Return, with net income reinvested, for the six months ended 30 June 2006 was 2.5% compared with a return of 1.2% on the composite benchmark. â€¢ The Board intends to recommend a final dividend of not less than 6.65p in respect of the year ending 31 December 2006, payable in May 2007. â€¢ The discount at which the shares traded to their Net Asset Value contracted slightly during the six months from 5.9% at 31 December 2005 to 5.5% at 30 June 2006. â€¢ Equity asset allocation remains overweight in high-growth Asian and Emerging Markets and underweight in developed markets such as the UK and United States. Background Financial markets struggled to make much progress over the past six months. The optimism that led to steady upward progression through the early part of the year dissipated during the second quarter as investors became increasingly concerned about the future path of interest rates and corporate earnings. As usual, across the global spectrum, the response of equity markets to rising risk aversion was not uniform in magnitude. Over the whole period in sterling terms, the most notable returns came from Continental Europe, the UK and Brazil, up 6.3%, 5.9% and 11.5% respectively. Conversely, currency weakness in the US dollar and the Yen against Sterling compounded negative returns from the United States and Japan, down 4.6% and 5.3% respectively. Asia ex Japan in aggregate was virtually flat over the period, although this masked some divergent returns at the individual country level. Performance The Net Asset Value total return, with net income reinvested for the six months to 30 June 2006 was 2.5% compared with a return of 1.2% on the composite benchmark (40% of the FTSE World-UK and 60% of the FTSE World ex UK Indices). Asset allocation towards equities was positive for the period. The negative effect of being overweight in Japan was completely offset by the positive impact of being underweight in the USA. Relative asset allocations towards the UK and Europe had virtually no overall impact. The aggregate impact of being overweight in Asia was marginally negative, the strength of developed Asian markets such as Hong Kong and Singapore being offset by weakness in emerging Asian markets such as India, Korea and Taiwan. Not for the first time in recent years, it was the overweight exposure to Latin America that accounted for the majority of relative outperformance. Dividends At last year's Annual General Meeting shareholders approved three interim dividends of 3.80p per share in respect of the year ending 31 December 2006, payable on 14 August and 15 November 2006, and 14 February 2007. As indicated at the year end, the Board intends to recommend that the final dividend in respect of the year ending 31 December 2006, payable in May 2007, will not be less than 6.65p. Outlook The virtually flat six month return from global equity markets contradicts the general perception that the period was characterised by an overall 'stock market correction'. What was deflated, and encouragingly so, was a degree of complacency that had been building up in equity markets over the past eighteen months. Economic policies, required to resolve some of the long-standing imbalances prevalent in the United States and the UK, are unlikely to be pleasant but expectations should adjust accordingly, hopefully without too much pain to respective equity markets. Once markets have fully digested the currently prevailing negative economic and geo-political sentiment and extended their outlook into next year, the gloom should lift. Elsewhere in the World, the outlook still looks bright. Countries that have been financing the United States twin deficits, such as Japan, India, China and Brazil, remain in a structurally strong position which will enable constant pro-growth domestic economic policies to provide the platform for solid earnings and dividend growth at the corporate level. These are the types of opportunity that will continue to be capitalised on by your Company through investment in high quality companies where valuations relative to growth prospects are the most attractive. Income Statement Six months ended 30 June 2006 (unaudited) Revenue Capital Total Â£'000 Â£'000 Â£'000 Gains on investments - 6,124 6,124 Income from investments 13,794 - 13,794 Other income 35 - 35 Investment management fees (437) (1,020) (1,457) Performance fees - (477) (477) Other expenses (617) - (617) Currency losses - (1,884) (1,884) _______ _______ _______ Net return before finance costs and taxation 12,775 2,743 15,518 Finance costs of borrowing (311) (726) (1,037) _______ _______ _______ Return on ordinary activities before tax 12,464 2,017 14,481 Tax on ordinary activities (2,473) 1,567 (906) _______ _______ _______ Return attributable to equity Shareholders 9,991 3,584 13,575 _______ _______ _______ Return per Ordinary share (pence) 11.5 4.1 15.6 Return per Ordinary share assuming full _______ _______ _______ conversion of the B Ordinary shares (pence) 11.4 4.1 15.5 _______ _______ _______ The total column of the statement represents the profit and loss 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. The Company has no other gains or losses other than those recognised in the Income Statement above. Ordinary dividends on equity shares (Â£'000) 15,623 - 15,623 _______ _______ _______ Income Statement Six months ended 30 June 2005 (unaudited) Revenue Capital Total Â£'000 Â£'000 Â£'000 Gains on investments - 33,024 33,024 Income from investments 12,170 - 12,170 Other income 63 - 63 Investment management fees (374) (872) (1,246) Performance fees - (562) (562) Other expenses (513) - (513) Currency losses - (1,999) (1,999) _______ _______ _______ Net return before finance costs and taxation 11,346 29,591 40,937 Finance costs of borrowing (375) (875) (1,250) _______ _______ _______ Return on ordinary activities before tax 10,971 28,716 39,687 Tax on ordinary activities (2,278) 1,563 (715) _______ _______ _______ Return attributable to equity Shareholders 8,693 30,279 38,972 _______ _______ _______ Return per Ordinary share (pence) 10.0 35.0 45.0 _______ _______ _______ Return per Ordinary share assuming full conversion of the B Ordinary shares (pence) 9.9 34.6 44.5 _______ _______ _______ The total column of the statement represents the profit and loss 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. The Company has no other gains or losses other than those recognised in the Income Statement above. Ordinary dividends on equity shares (Â£'000) 14,364 - 14,364 _______ _______ _______ Income Statement Year ended 31 December 2005 (audited) Revenue Capital Total Â£'000 Â£'000 Â£'000 Gains on investments - 116,018 116,018 Income from investments 21,792 - 21,792 Other income 130 - 130 Investment management fees (771) (1,798) (2,569) Performance fees - (2,374) (2,374) Other expenses (1,097) - (1,097) Currency losses - (3,562) (3,562) _______ _______ _______ Net return before finance costs and taxation 20,054 108,284 128,338 Finance costs of borrowing (744) (1,735) (2,479) _______ _______ _______ Return on ordinary activities before tax 19,310 106,549 125,859 Tax on ordinary activities (4,035) 2,844 (1,191) _______ _______ _______ Return attributable to equity Shareholders 15,275 109,393 124,668 _______ _______ _______ Return per Ordinary share (pence) 17.7 126.4 144.1 _______ _______ _______ Return per Ordinary share assuming full conversion of the B Ordinary shares (pence) 17.4 124.8 142.2 _______ _______ _______ The total column of the statement represents the profit and loss 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. The Company has no other gains or losses other than those recognised in the Income Statement above. Ordinary dividends on equity shares (Â£'000) 14,357 - 14,357 _______ _______ _______ Balance Sheet As at As at As at 30 June 2006 30 June 2005 31 December 2005 (unaudited) (unaudited) (audited) Â£'000 Â£'000 Â£'000 Fixed assets Investments at fair value through profit or loss 609,231 541,867 603,103 Current assets Debtors 4,637 4,593 4,270 Cash and short-term deposits 998 5,200 6,816 _______ _______ _______ 5,635 9,793 11,086 _______ _______ _______ Creditors: amounts falling due within one year Bank loans - (8,056) (7,896) Other creditors (11,821) (27,921) (5,007) _______ _______ _______ (11,821) (35,977) (12,903) _______ _______ _______ Net current liabilities (6,186) (26,184) (1,817) _______ _______ _______ Total assets less current liabilities 603,045 515,683 601,286 Creditors: amounts falling due after more than one year Bank loans (79,423) (76,385) (74,907) Other creditors (2,037) (1,369) (2,746) _______ _______ _______ (81,460) (77,754) (77,653) _______ _______ _______ Net assets 521,585 437,929 523,633 _______ _______ _______ Capital and reserves Equity Shareholders' interests: Called-up share capital 21,919 21,911 21,911 Share premium account 23 23 23 Capital redemption reserve 8,230 8,230 8,230 Capital reserve - realised 299,758 286,072 286,597 Capital reserve - unrealised 165,142 96,137 174,727 Revenue reserve 26,513 25,556 32,145 _______ _______ _______ Equity Shareholders' funds 521,585 437,929 523,633 _______ _______ _______ Net Asset Value per Ordinary and 'B' Ordinary share 594.9 499.7 597.5 (pence) _______ _______ _______ Reconciliation of Movements in Shareholders' Funds As at 30 June 2006 Six months ended 30 June 2006 (unaudited) Share Capital Capital Capital Share premium redemption reserve - reserve - Revenue capital account reserve realised unrealised reserve Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Balance at 31 December 2005 21,911 23 8,230 286,597 174,727 32,145 523,633 Return on ordinary activities after - - - 13,169 (9,585) 9,991 13,575 taxation Dividends on Ordinary shares - - - - - (15,623) (15,623) Issue of new shares 8 - - (8) - - - _______ _______ _______ _______ _______ _______ ______ Balance at 30 June 2006 21,919 23 8,230 299,758 165,142 26,513 521,585 _______ _______ _______ _______ _______ _______ ______ Six months ended 30 June 2005 (unaudited) Share Capital Capital Capital Share premium redemption reserve - reserve - Revenue capital account reserve realised unrealised reserve Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Balance at 31 December 2004 21,901 23 8,230 284,112 67,829 31,227 413,322 Return on ordinary activities after - - - 1,970 28,308 8,693 38,971 taxation Dividends on Ordinary shares - - - - - (14,364) (14,364) Issue of new shares 10 - - (10) - - - _______ _______ _______ _______ _______ _______ ______ Balance at 30 June 2005 21,911 23 8,230 286,072 96,137 25,556 437,929 _______ _______ _______ _______ _______ _______ ______ Year ended 31 December 2005 (audited) Share Capital Capital Capital Share premium redemption reserve - reserve - Revenue capital account reserve realised unrealised reserve Total Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Â£'000 Balance at 31 December 2004 21,901 23 8,230 284,112 67,829 31,227 413,322 Return on ordinary activities after - - - 2,495 106,898 15,275 124,668 taxation Dividends on Ordinary shares - - - - - (14,357) (14,357) Issue of new shares 10 - - (10) - - - _______ _______ _______ _______ _______ _______ ______ Balance at 31 December 2005 21,911 23 8,230 286,597 174,727 32,145 523,633 _______ _______ _______ _______ _______ _______ ______ Cash Flow Statement Six months ended Six months ended Year ended 30 June 2006 30 June 2005 31 December 2005 (unaudited) (unaudited) (audited) Â£'000 Â£'000 Â£'000 Net return before finance costs and taxation 15,518 40,937 128,338 Adjustments for: Realised gains on investments (17,470) (4,716) (5,822) Unrealised losses/ (gains) on investments 11,346 (28,308) (110,196) Amortisation of fixed interest securities 265 335 612 Overseas tax suffered (1,048) (847) (1,291) (Increase)/decrease in accrued income (1,252) (798) 170 Decrease/(increase) in other debtors 28 (62) 20 (Increase)/decrease in other creditors (557) (15) 1,933 Effect of foreign exchange losses 1,884 1,999 3,562 _____________ _____________ _____________ Net cash inflow from operating activities 8,714 8,525 17,326 Returns on investment and servicing of finance Interest paid (1,170) (1,212) (2,421) _____________ _____________ _____________ Net cash outflow from servicing of finance (1,170) (1,212) (2,421) Financial investment Purchases of investments (54,612) (59,850) (105,819) Movement in futures - 1,238 (15,501) Sales of investments 54,343 58,905 126,614 _____________ _____________ _____________ Net cash (outflow)/inflow from financial investment (269) 293 5,294 Equity dividends paid (8,826) (8,121) (14,268) _____________ _____________ _____________ Net cash (outflow)/inflow before financing (1,551) (515) 5,931 Financing Loans repaid 7,707 - - Loans received (7,707) - - _____________ _____________ _____________ Net cash flow from financing - - - _____________ _____________ _____________ (Decrease)/increase in cash (1,551) (515) 5,931 _____________ _____________ _____________ Analysis of changes in cash during the period Opening balance 6,816 9,591 9,591 (Decrease)/increase in cash above (1,551) (515) 5,931 Currency differences (4,267) (3,876) (8,706) _____________ _____________ _____________ Closing balances 998 5,200 6,816 _____________ _____________ _____________ MURRAY INTERNATIONAL TRUST PLC Six months ended 30 June 2006 Supplementary Information Note 1. Transaction Costs During the six months ended 30 June 2006 expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the income statement. The total costs were as follows: Six months Six months Year ended ended ended 30 June 2006 30 June 2005 31 December 2005 Â£'000 Â£'000 Â£'000 Purchases 80 139 293 Sales 95 85 212 __________ __________ __________ 175 224 505 _____________ _____________ _____________ Note 2. Ordinary dividends on equity shares Six months Six months Year ended ended ended 30 June 2006 30 June 2005 31 December 2005 Â£'000 Â£'000 Â£'000 2005 final dividend of 6.65p (2004 - 5.95p) 5,756 5,147 5,147 First interim of 3.80p (2005 - 3.55p) 3,289 3,072 3,070 Second interim of 3.80p (2005 - 3.55p) 3,289 3,072 3,070 Third interim of 3.80p (2005 - 3.55p) 3,289 3,073 3,070 __________ __________ __________ 15,623 14,364 14,357 _____________ _____________ _____________ Note 3. Returns per share Six months Six months Year ended ended ended 30 June 30 June 31 December 2006 2005 2005 Â£'000 Â£'000 Â£'000 The returns per share have been based on the following figures: Revenue return Â£9,991 Â£8,693 Â£15,275 Capital return Â£3,584 Â£30,279 Â£109,393 __________ __________ __________ Total return Â£13,575 Â£38,972 Â£124,668 ____________ ____________ _____________ Weighted average number of Ordinary shares 86,556,277 86,491,961 86,524,129 Weighted average number of B Ordinary shares 1,094,729 1,120,893 1,104,278 Note 4. Diluted net asset value The diluted net asset value per share at the period end has been calculated in accordance with the Articles of Association using the following net asset value attributable and the total number of Ordinary shares (including conversion of the B Ordinary shares). As at As at As at 30 June 30 June 31 December 2006 2005 2005 Â£'000 Â£'000 Â£'000 Attributable net assets 521,585 437,929 523,633 __________ __________ __________ Number of shares in issue: Ordinary shares 86,583,992 86,556,123 86,556,123 B Ordinary shares 1,092,806 1,087,799 1,087,799 __________ __________ __________ 87,676,798 87,643,922 87,643,922 __________ __________ __________ Note 5 The financial information above comprises non-statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 31 December 2005 has been abridged from published accounts that have been delivered to the Registrar of Companies and on which the report of the Auditors was unqualified. The interim accounts have been prepared using the same accounting policies as the preceding annual accounts. Note 6 A summary of investment changes for the six months to 30 June 2006, a summary of net assets as at 30 June 2006 and a schedule of the twenty largest equity investments and the ten largest fixed income investments as at 30 June 2006 are attached. By order of the Board ABERDEEN ASSET MANAGEMENT PLC, SECRETARY 8 August 2006 Copies of this announcement will be printed and issued to shareholders and will be available to the public at the registered office of the Company, 123 St Vincent Street, Glasgow. Summary of Investment Changes Valuation Appreciation/ Valuation 31 December 2005 Transactions (depreciation) 30 June 2006 Â£'000 % Â£'000 Â£'000 Â£'000 % Equities United Kingdom 150,828 24.8 (7,807) 7,149 150,170 24.9 North America 47,782 7.8 (2,131) (2,132) 43,519 7.2 Europe & Africa 97,932 16.1 293 2,968 101,193 16.8 Japan 72,010 11.8 2,820 (5,499) 69,331 11.5 Asia Pacific Ex Japan 89,325 14.7 9,917 (6,041) 93,201 15.4 Emerging Europe, Middle East & Latin 59,927 9.8 (15,007) 13,382 58,302 9.7 America _______ _______ _______ _______ _______ _______ 517,804 85.0 (11,915) 9,827 515,716 85.5 _______ _______ _______ _______ _______ _______ Fixed income United Kingdom 56,998 9.4 14,004 (1,336) 69,666 11.5 North America 9,521 1.6 1,886 (1,127) 10,280 1.7 Europe & Africa 8,755 1.4 (3,922) (557) 4,276 0.7 Asia Pacific Ex Japan 5,448 0.9 (12) (204) 5,232 0.9 Latin America 4,577 0.7 (37) (479) 4,061 0.7 _______ _______ _______ _______ _______ _______ 85,299 14.0 11,919 (3,703) 93,515 15.5 _______ _______ _______ _______ _______ _______ Other net assets/(liabilities) 6,079 1.0 (7,001) (5,264) (6,186) (1.0) _______ _______ _______ _______ _______ _______ Total assets 609,182 100.0 (6,997) 860 603,045 100.0 _______ _______ _______ _______ _______ _______ Summary of Net Assets Valuation 30 June 2006 Â£'000 % Equities 515,716 98.9 Fixed income 93,515 17.9 Other net liabilities (6,186) (1.2) Prior charges (79,423) (15.2) Other long term liabilities (2,037) (0.4) _________ _________ Equity Shareholders' funds 521,585 100.0 _________ _________ Twenty Largest Equity Investments As at 30 June 2006 Valuation % of total Security Investment area Â£'000 assets Atrium Underwriting United Kingdom 18,338 3.0 Petrobras Brazil & Argentina 17,727 2.9 Tenaris ADR Mexico 17,475 2.9 Resolution United Kingdom 17,147 2.8 GlaxoSmithKline United Kingdom 13,523 2.2 British American Tobacco* United Kingdom & Malaysia 10,397 1.7 AstraZeneca United Kingdom 8,160 1.4 Royal Dutch Shell* United Kingdom 8,124 1.4 Petrochina China 7,466 1.3 Vodafone Group United Kingdom 7,376 1.2 Aeropuertos del Sureste ADS Mexico 7,256 1.2 Orix Corporation Japan 6,850 1.1 Hyundai Motor 2nd Pref South Korea 6,768 1.1 PTT Exploration & Production Thailand 6,759 1.1 Samsung Electronics Pref South Korea 6,582 1.1 Daito Trust Construction Japan 6,555 1.1 Aviva United Kingdom 6,415 1.1 Deutsche Postbank Germany 6,223 1.0 Souza Cruz Brazil 6,035 1.0 Reynolds American USA 5,917 1.0 ________ ________ Top twenty investments 191,093 31.6 ________ ________ * Consolidates all equity holdings from same issuer Ten Largest Fixed Income Investments As at 30 June 2006 Security Currency Valuation % of total Denomination Â£'000 assets UK Treasury 7.25% 07/12/2007 Sterling 5,516 0.9 UK Treasury 5% 07/03/2012 Sterling 5,499 0.9 UK Treasury 7.5% 07/12/2006 Sterling 5,475 0.9 UK Treasury 5% 07/03/2008 Sterling 5,447 0.9 UK Treasury 4% 07/03/2009 Sterling 5,444 0.9 UK Treasury 6.25% 25/11/2010 Sterling 5,362 0.9 UK Treasury 9% Conversion 12/07/2011 Sterling 5,338 0.9 Pemex Project Funding Master 7.75% 29/09/2049 U.S. Dollar 4,720 0.8 Government of Hungary 6.5% 12/08/2008 Hungarian Forint 4,276 0.7 Government of Mexico 10.5% 14/07/2011 Mexican Peso 4,061 0.7 ________ ________ Top ten investments 51,138 8.5 ________ ________ This information is provided by RNS The company news service from the London Stock Exchange

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