Interim Results

Scottish Mortgage Inv Tst PLC
31 October 2003





                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                Results for the six months to 30 September 2003



In rallying equity markets, Scottish Mortgage outperformed its benchmark index
by 3.7 percentage points at the interim stage.  Net asset value per share rose
by 20.2% compared to a 16.5% gain in its benchmark index (50% FTSE All-Share
Index and 50% FTSE World Ex. UK Index in sterling terms).


•    Low valuations and improving corporate earnings overcame lingering political and economic anxieties. The
     good relative performance was accounted for by the beneficial impact of gearing and helpful geographic
     asset allocation.  The exposure to economically sensitive stocks was increased with emphasis on those able
     to benefit from rapid economic growth in China, India and other Emerging Markets.


•    The interim dividend has been increased by 4.8% to 2.20p. A second interim dividend will be declared to
     enable PEP and ISA holders to make a final reclaim of tax before the advantage is abolished in April. The
     Board has indicated that the total for the year is likely to rise in line with the increase in the first
     interim payment.


•    The Managers have successfully capitalised on improving market conditions and they are cautiously
     optimistic about the outlook for the remainder of the year. There has been a vigorous recovery in
     corporate earnings in many sectors of the global economy while survey evidence suggests that this trend
     will continue in 2004.





Scottish Mortgage Investment Trust PLC 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 £1.2
billion.



Scottish Mortgage is managed by Baillie Gifford & Co., the leading Edinburgh
based fund management group with over £25 billion under management and advice.



30th October 2003

                                    - ends -



For further information please contact:



James Anderson, Manager,
Scottish Mortgage Investment Trust PLC           07730 412007

Mike Lord, Director,
Broadgate Marketing                              020 7726 6111



Baillie Gifford & Co. is authorised and regulated by the Financial Services
Authority.



                   SCOTTISH MORTGAGE INVESTMENT TRUST PLC


                                 Interim Report


The following is the interim statement for the six months ended 30 September
2003 which has been neither reviewed nor audited by the auditors.  This
statement is being printed and will be sent to all shareholders on 10 November
2003.  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.



                   SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                           STATEMENT OF TOTAL RETURN
               (unaudited and incorporating the revenue account*)


                             for the six months ended         for the six months ended             for the year ended
                                 30 September 2003                30 September 2002                   31 March 2003
                          Revenue  Capital     Total   Revenue    Capital      Total    Revenue     Capital      Total
                           £'000     £'000     £'000     £'000      £'000      £'000      £'000       £'000       £'000

Realised losses on            -    (17,187)  (17,187)        -    (78,929)   (78,929)         -    (100,702)   (100,702)
investments
Unrealised gains/(losses)     -    188,267   188,267         -   (322,065)  (322,065)         -    (320,361)   (320,361)
on investments
Currency gains/(losses)       -        592       592         -       (452)      (452)         -        (701)       (701)

Income (note 4)           16,969         -    16,969    17,381          -     17,381     33,909           -      33,909
Investment management fee (1,071)   (1,071)   (2,142)   (1,072)    (1,072)    (2,144)    (2,053)     (2,053)     (4,106)
Other administrative        (628)        -      (628)     (590)         -       (590)    (1,185)          -      (1,185)
expenses

Net return before finance
costs and taxation         15,270   170,601   185,871   15,719   (402,518)  (386,799)    30,671    (423,817)   (393,146)
Finance costs of           (3,590)   (3,604)   (7,194)  (3,560)    (3,560)    (7,120)    (7,119)     (7,119)    (14,238)
borrowings

Return on ordinary
activities before    
taxation                   11,680   166,997   178,677   12,159   (406,078)  (393,919)    23,552    (430,936)   (407,384)
Tax on ordinary              (535)        -      (535)    (570)         -       (570)      (955)          -        (955)
activities

Return on ordinary
activities after taxation   11,145  166,997   178,142   11,589   (406,078)  (394,489)    22,597    (430,936)   (408,339)
Dividends in respect of
equity shares               (6,509)       -    (6,509)  (6,327)         -     (6,327)   (19,730)          -     (19,730)
Transfer to/(from)           4,636  166,997   171,633    5,262   (406,078)  (400,816)     2,867    (430,936)   (428,069)
reserves
Return per ordinary share
(note 5)                     3.75p   56.15p    59.90p    3.77p  (132.25p)  (128.48p)      7.43p   (141.69p)   (134.26p)
Dividend per ordinary
share (note 6)               2.20p                       2.10p                            6.60p

*  The revenue column of this statement is the profit and loss account of the
Company.

   All revenue and capital items in this statement derive from continuing
operations.



                     SCOTTISH MORTGAGE INVESTMENT TRUST PLC
 
                           SUMMARISED BALANCE SHEET
                              at 30 September 2003
                                  (unaudited)




                                                                30 September      30 September        31 March
                                                                        2003              2002            2003
                                                                       £'000             £'000           £'000
NET ASSETS

Fixed asset investments                                            1,242,205         1,043,455       1,050,748
Net liquid assets                                                      3,395            48,377             797
Total assets (before deduction of loans and debentures)            1,245,600         1,091,832       1,051,545
Loans and debentures (note 2)                                       (231,426)         (206,098)       (207,225)
                                                                   1,014,174           885,734         844,320


CAPITAL AND RESERVES
Called-up share capital                                               74,326            75,904          74,501
Capital reserves                                                     884,323           756,546         718,930
Revenue reserve                                                       55,525            53,284          50,889
EQUITY SHAREHOLDERS' FUNDS                                         1,014,174           885,734         844,320


NET ASSET VALUE PER ORDINARY SHARE
(after deducting prior charges at par)                                 343.3p            293.9p          285.5p
Ordinary shares in issue (note 3)                                 297,305,115       303,615,115     298,005,115



                              DISTRIBUTION OF ASSETS

                                at 30 September 2003
                                    (unaudited)



                                                 30 September     30 September           31 March 
                                                         2003             2002               2003
                                                            %                %                  %


Equities:   United Kingdom                               44.1             46.3               44.8
            Continental Europe                           9.2              7.7                8.8
            North America                                22.1             21.9               24.0
            Japan                                        5.8              6.4                4.5
            Asia Pacific                                 6.4              3.9                5.0
            Other Emerging Markets                       4.8              2.2                3.8

Total equities                                           92.4             88.4               90.9
United Kingdom bonds                                     5.4              3.9                6.3
European bonds                                           1.7              3.3                2.4
North American bond                                      0.2              -                  0.3
Net liquid assets                                        0.3              4.4                0.1

Total assets (before deduction of loans and debentures)  100.0            100.0              100.0




                      SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                         SUMMARISED CASH FLOW STATEMENT
                                (unaudited)


                                                   Six months to   Six months to     Year to
                                                    30 September    30 September    31 March
                                                            2003            2002        2003

                                                           £'000          £'000        £'000
NET CASH INFLOW FROM OPERATING ACTIVITIES                 17,475          17,774      27,837

NET CASH OUTFLOW FROM SERVICING OF FINANCE                (7,158)         (7,146)    (14,287)

TOTAL TAX PAID                                              (594)           (746)     (1,009)

FINANCIAL INVESTMENT
Acquisitions of investments                             (290,345)       (111,182)   (347,442)
Disposals of investments                                 270,930         171,099     371,734
Realised currency loss                                        (8)         (1,227)       (323)

NET CASH (OUTFLOW)/INFLOW FROM FINANCIAL                 (19,423)         58,690      23,969
INVESTMENT

EQUITY DIVIDENDS PAID                                    (13,379)        (13,091)    (19,460)

NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING               (23,079)         55,481      17,050

FINANCING
Shares purchased for cancellation                         (3,184)        (17,039)    (31,414)
Loans repaid                                             (24,068)              -           -
Loans drawn down                                          47,037               -           -
Realised currency profit on multi-currency loans           1,862               -           -

NET CASH INFLOW/(OUTFLOW) FROM FINANCING                  21,647         (17,039)    (31,414)

(DECREASE)/INCREASE IN CASH                               (1,432)         38,442     (14,364)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
DEBT

(Decrease)/increase in cash in the period                 (1,432)         38,442     (14,364)
(Increase) in bank loans                                 (24,831)              -           -
Exchange movement                                            600             775        (378)
Other non-cash changes                                        31              26          52

MOVEMENT IN NET DEBT IN THE PERIOD                       (25,632)         39,243     (14,690)

NET DEBT AT 1 APRIL                                     (203,310)       (188,620)   (188,620)

NET DEBT AT 30 SEPTEMBER/31 MARCH                       (228,942)       (149,377)   (203,310)





                        SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                           TWENTY LARGEST EQUITY HOLDINGS
                                at 30 September 2003




    Name                           Business                                          Market value  % of total
                                                                                            £'000      assets

    Vodafone Group                 Mobile telecommunication services                       57,114         4.6
    GlaxoSmithKline                Pharmaceuticals                                         44,732         3.6
    Royal Bank of Scotland         Banking                                                 35,924         2.9
*   Golden West Financial          Mortgage bank                                           31,787         2.6
    HSBC Holdings                  Banking                                                 30,693         2.5
    Barclays                       Banking                                                 28,737         2.3
    British American Tobacco       Tobacco                                                 20,526         1.6
*   Omnicom                        Advertising agency                                      18,856         1.5
    Aviva                          Life assurance                                          17,858         1.4
    Diageo                         Branded spirits                                         17,666         1.4
*   Wellpoint                      Managed care                                            17,398         1.4
    Prudential                     Life assurance                                          16,473         1.3
*   Moody's                        Bond rating agency                                      16,113         1.3
    Man Group                      Hedge fund manager                                      15,883         1.3
    Wolseley                       Builders' merchant                                      15,801         1.3
*   Altria                         Tobacco and food                                        15,633         1.3
    BP                             Integrated oil                                          15,269         1.2
*   Pfizer                         Pharmaceuticals                                         15,031         1.2
    Allied Domecq                  Branded spirits                                         14,754         1.2
    Imperial Tobacco               Tobacco                                                 13,950         1.1
                                                                                          460,198        37.0



*  primary listing outwith the UK



                 SCOTTISH MORTGAGE INVESTMENT TRUST PLC

                               NOTES




1.   The financial statements for the six months to 30 September 2003 have been prepared on the basis of the
     accounting policies set out in the Company's Annual Financial Statements at 31 March 2003.

     The Interim Report was approved by the Board on 30 October 2003.

     None of the views expressed in this document should be construed as advice to buy or sell a particular
     investment.


2.   Loans and debentures include Y5,900 million drawn down under a three year multi-currency loan facility
     and US$37.1 million and SF55 million drawn down under short term facilities  (30 September 2002 and 31
     March 2003 - Y5,900 million and Y4,400 million, drawn down under the three year and the short term
     facilities).

     Net asset value per share (after deducting prior charges at market value) was 325.3p (30 September 2002 -
     274.2p and 31 March 2003 - 268.0p).  The market value of debenture stocks at 30 September 2003 was
     £199,345,000 (30 September 2002 - £205,420,000 and 31 March 2003 - £197,936,000).


3.   On 11 February 1999 authority was first granted to the Company to buy back its ordinary shares
     (equivalent to 14.99% of its issued share capital at that date).  The authority has been renewed at each
     subsequent AGM and was last renewed at the AGM on 3 July 2003.  In the six months to 30 September 2003 a
     total of 700,000 ordinary shares with a nominal value of £175,000 were bought back at a total cost of
     £1,779,000.  At 30 September 2003 the Company had authority to buy back a further 44,566,036 ordinary
     shares.


                                                      30 September 2003   30 September 2002           31 March
                                                                                                          2003
                                                                   £'000              £'000              £'000
4.   Income

     Income from investments and interest receivable              16,874            17,252              33,727
     Other income                                                     95               129                 182


5.   Return per ordinary share

     Revenue return                                               11,145            11,589              22,597
     Capital return                                              166,997          (406,078)          (430,936)


     Return per ordinary share is based on the above totals of revenue and capital and on 297,418,776 (30
     September 2002 - 307,041,656 and 31 March 2003 - 304,134,148) ordinary shares, being the weighted average
     number of ordinary shares in issue during the period.


6.   The interim dividend will be paid on 28 November 2003 to all shareholders on the register at the close of
     business on 14 November 2003.


7.   The financial information for the year ended 31 March 2003 has been extracted from the statutory accounts
     which have been filed with the Registrar of Companies and which contain an unqualified Auditors' Report.






                      This information is provided by RNS
            The company news service from the London Stock Exchange