Final Results

Scottish Mortgage & Trust PLC
27 April 2001



                     THE SCOTTISH MORTGAGE AND TRUST PLC

                    Results for the year to 31 March 2001

                                27 April 2001



  * Difficult year for stock markets globally. NAV fell 21.5% to 447.5p. 2nd
    half performance in line with benchmark following poor 1st half.

  * Proposed final dividend of 4.10p making a total dividend of 6.00p up
    6.2%. This is the 19th consecutive real increase in the Company's
    dividend.

  * Valuations more attractive than a year ago. Ratings are now becoming
    appealing to long term investors in most markets. This includes America
    where there has been net investment of £80m during the year.

  * Investment outlook should benefit from monetary and fiscal easing taking
    place globally. This should revive the international economy and should be
    particularly beneficial for a Company such as Scottish Mortgage that
    offers flexibility and global diversification.

  * Shareholders will be asked to renew buy-back facility. In the last year
    a further 10 million shares were brought back at a cost of £45 million
    enhancing NAV by 0.5%. At the AGM on 5th July shareholders will be asked
    to renew the authority to repurchase up to 15% of the capital.

The Scottish Mortgage and Trust PLC (Scottish Mortgage) aims to maximise total
return to shareholders at the same time as generating real dividend growth
through investment in UK and international markets. The trust has total assets
of £1.7 billion. An ISA, PEP Transfer and Share Plan are available.

Scottish Mortgage is managed by Baillie Gifford & Co., the leading Edinburgh
based fund management group with around £21 billion under management and
advice.

                                   - ends -

For further information please contact:

James Anderson, Manager,

The Scottish Mortgage and Trust PLC               0131 222 4000

Mike Lord, Director,

Broadgate Marketing                              020 7726 6111

Baillie Gifford & Co. is regulated by IMRO.



                     THE SCOTTISH MORTGAGE AND TRUST PLC

                          STATEMENT OF TOTAL RETURN

              (unaudited and incorporating the revenue account*)


The following is the unaudited preliminary statement for the year to 31 March
2001 which was approved by the Board on 26 April 2001. The Directors of The
Scottish Mortgage and Trust PLC are recommending to the Annual General Meeting
of the Company to be held on 5 July 2001 the payment of a final dividend of
4.10p net (3.85p net last year) per ordinary share making 6.00p net (5.65p net
last year) for the year ended 31 March 2001.


                         for the year ended             for the year ended

                            31 March 2001            31 March 2000 (restated +)
                                                                 
                    Revenue   Capital    Total       Revenue   Capital  Total
                    £'000     £'000      £'000       £'000     £'000    £'000

(Losses)/gains on    -       (401,816) (401,816)       -       388,150  388,150
investments
Currency losses      -       (8,477)   (8,477)         -       (948)   (948)
Income (note 2)      44,075  -         44,075          44,100  -       44,100
Investment 
management fee      (3,408)  (3,408)  (6,816)         (3,525) (3,525)  (7,050)
Other 
administrative      (1,811)  -        (1,811)         (1,861)  -       (1,861)
expenses
Net return 
before finance      38,856  (413,701) (374,845)       38,714  383,677  422,391
costs and taxation
Finance costs of 
borrowings          (9,661) (9,661)   (19,322)        (9,658) (9,658)  (19,316)
Return on 
ordinary            29,195  (423,362) (394,167)       29,056  374,019  403,075
activities 
before taxation
Tax on ordinary 
activities          (3,983)++  -      (3,983)++      (1,249)  -       (1,249)
Return on ordinary  25,212  (423,362) (398,150)      27,807   374,019 401,826
activities after
 taxation
Dividends in respect of  
equity shares       (19,679) -        (19,679)       (19,443) -       (19,443)
Transfer to/(from) 
reserves            5,533   (423,362) (417,829)      8,364    374,019 382,383
Return per ordinary
share  (note 3)     7.57p   (127.14p) (119.57p)      7.82p    105.27p 113.09p
Dividend per 
ordinary share      6.00p                            5.65p
(note 4)                                          


* 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.

+ Restated for changes in accounting policy (see note 1).

++ Inclusive of £2,879,000 deferred tax balance written off.


                     THE SCOTTISH MORTGAGE AND TRUST PLC

                           SUMMARISED BALANCE SHEET

                               at 31 March 2001

                                 (unaudited)

                                                                 31 March 2000
                                                   31 March      (restated+)
                                                       2001
                                                      £'000           £'000
NET ASSETS
Fixed asset investments                           1,633,893       2,196,257
Net liquid assets                                    26,289       10,337
Total assets (before deduction of loans           1,660,182       2,206,594
and debentures)                                                   
Loans and debentures (note 5)                     (195,893)       (279,010)
                                                  1,464,289       1,927,584
CAPITAL AND RESERVES
Called-up share capital                              82,179       84,680
Capital reserves                                  1,338,848       1,805,175
Revenue reserve                                      43,262       37,729
EQUITY SHAREHOLDERS' FUNDS                        1,464,289       1,927,584

NET ASSET VALUE PER ORDINARY SHARE
(after deducting prior charges at par)               447.5p       570.2p
Ordinary shares in issue (note 6)                328,717,888      338,721,000

+ Restated for changes in accounting
policy (see note 1).


                                                  DISTRIBUTION OF ASSETS

                                                     at 31 March 2001

                                                       (unaudited)

                                            31 March 2001        31 March 2000

                                                  %                    %
Equities:             United Kingdom        40.9                 43.1
                      Continental Europe    18.1                 22.5
                      North America         18.9                 12.9
                      Latin America         2.4                  1.7
                      Japan                 7.5                  6.8
                      Asia Pacific          4.7                  5.3
Total equities                              92.5                 92.3
United Kingdom bonds                        1.8                  1.2
European bonds                              2.2                  1.7
North American bonds                        0.6                  0.5
Argentine bonds                             1.3                  3.8
Net liquid assets                           1.6                  0.5
Total assets (before loans and debentures)  100.0                100.0


                     THE SCOTTISH MORTGAGE AND TRUST PLC
                        SUMMARISED CASH FLOW STATEMENT

                                  (unaudited)
                                          for the year ended for the year ended

                                            31 March 2001      31 March 2000
                                          £'000   £'000         £'000   £'000

NET CASH INFLOW FROM OPERATING ACTIVITIES         33,018                37,318
NET CASH OUTFLOW FROM SERVICING OF                (17,811)              (15,059)
FINANCE

TOTAL TAX PAID                                    (3,541)               (3,955)

FINANCIAL INVESTMENT                      (856,742)             (866,787)

Acquisitions of investments               1,015,473             917,294

Disposals of investments                  1,616                 (1,305)

Realised currency profit/(loss)
NET CASH INFLOW FROM FINANCIAL INVESTMENT                               49,202

                                                  160,347

EQUITY DIVIDENDS PAID                             (19,241)              (12,715)

NET CASH INFLOW BEFORE FINANCING                  152,772               54,791

FINANCING                                 (45,466)              (100,700)

Shares purchased for cancellation         (259,519)             (365,000)

Loans repaid                              176,968               421,967

Loans drawn down                          (10,626)               -

Realised currency loss on multi-currency
loans
NET CASH OUTFLOW FROM FINANCING                   (138,643)            (43,733)

INCREASE IN CASH                                  14,129               11,058

RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT

Increase in cash in the period            14,129                11,058
Decrease/(increase) in bank loans         93,176                (56,967)
Exchange movement                         (10,093)              357
Other non-cash changes                    34                    27

MOVEMENT IN NET DEBT IN THE PERIOD                97,246               (45,525)

NET DEBT AT 1 APRIL                               (260,359)            (214,834)

NET DEBT AT 31 MARCH                              (163,113)            (260,359)



                     THE SCOTTISH MORTGAGE AND TRUST PLC

                                    NOTES


 1. The financial statements for the year to 31 March 2001 have been prepared
    on the basis of the accounting policies set out in the Company's financial
    statements at 31 March 2000, with the exception of a change in the policy
    for accounting for expenses connected with the maintenance or enhancement
    of the value of investments. In this respect, 50% of management fees,
    including related VAT, and finance costs are allocated to realised capital
    reserves in accordance with the Company's objective of combining capital
    and income growth. The Board considers this treatment more appropriately
    reflects the expected long-term split of returns. Previously all
    management fees, and related VAT, and finance costs were charged 100% to
    revenue. The effect of the change in accounting policy is to increase
    revenue return, and to decrease capital return, attributable to equity
    shareholders by £13,069,000 (2000 - £13,183,000). The total return figures
    have been restated and there has been a transfer between capital and
    revenue reserves at 1 April 2000 to take account of the change. There is
    no impact on overall total return recognised in either period.



                                                 31 March 2001     31 March 2000
                                                      
                                                         £'000        (restated)
                                                            
                                                                           £'000
    * Income                                                            

        Income from investments and interest            44,039            44,100
        receivable

    Other income 
                                                            36               Nil
    * Return per ordinary share

        Revenue return                                  25,212            27,807

        Capital return                               (423,362)           374,019


    Return per ordinary share is based on the above totals of revenue and
    capital and on 332,981,965 (2000 - 355,302,538) ordinary shares, being the
    weighted average number of ordinary shares in issue during the year.


 2. The total cost of the dividend for the year is £19,679,000 (2000 - £
    19,443,000). If approved the final dividend will be paid on 11 July 2001
    to all shareholders on the register at the close of business on 15 June
    2001.


 3. Loans and debentures include Euro70 million drawn down under short term
    multi-currency loan facilities (2000 - US$135 million and Euro70 million).


    Net asset value per share (with debenture stocks at market value) was
    430.9p (2000 - 549.2p). The market value of debenture stocks at 31 March
    2001 was £200,048,000 (2000 - £216,836,000).

 4. At the Annual General Meeting on 29 June 2000 the Company renewed its
    authority to purchase shares in the market, in respect of 50,265,422
    ordinary shares (equivalent to 14.99% of its issued share capital at that
    date). In the year to 31 March 2001 a total of 10,003,112 (2000 -
    21,999,000) ordinary shares with a nominal value of £2,500,778 were bought
    back at a total cost of £45,466,000 (2000 - £100,700,000). At 31 March
    2001 the Company had authority to buy back a further 43,656,943 ordinary
    shares.


 5. The financial information set out above does not constitute the Company's
    statutory accounts for the year ended 31 March 2001. The financial
    information for 2000 is derived from the statutory accounts for 2000 which
    have been delivered to the Registrar of Companies. The Auditors have
    reported on the 2000 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 2001 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.