Interim results - 6 Months to 30 September 1999

Securities Trust of Scotland PLC 16 November 1999 SECURITIES TRUST OF SCOTLAND plc Interim results for the six months to 30 September 1999 * Interim dividend increased by 2.6% to 1.20p per share * Earnings per share rose by 16.1% over the same period last year, to 2.45p * Net asset value outperformed FTSE All-Share benchmark * Portfolio changed to UK income growth Earnings per share of Securities Trust of Scotland plc, the £566 million investment trust managed by Edinburgh-based Martin Currie, increased by 16.1% over the 6 months to 30 September 1999, to 2.45p per share, helped in part by the receipt of special dividends. Underlying earnings excluding special dividends increased by 7.0%. In the six months to 30 September 1999, the company's net asset value per ordinary share fell by 0.6% to 142.1p, which compares with a fall of 2.4% in the trust's benchmark, the FTSE All-Share index. The directors have declared an interim dividend of 1.20p per share, payable on 20 December 1999. This represents an increase of 2.6% and meets the board's objective of delivering real growth in dividends. The board announces that following a review, it believes that the company's objective of achieving rising income and long term capital growth will be better served by concentrating on a purely UK portfolio. It is switching to a UK income growth portfolio and now allocates management and finance costs on a ratio of 70/30 capital to revenue. With almost half of UK plcs' earnings now coming from overseas, in the board's view the UK equity market is increasingly exposed to most regions of the world. This trend has accelerated recently with several cross-border mergers like BP Amoco, Vodafone Airtouch and AstraZeneca demonstrating that where a company has its headquarters is less and less important. Chairman David Whitaker commented: 'With the government's recent pre-budget report confirming the acceleration in underlying economic growth, both in the UK and globally, the Bank of England appear to be firmly in control with the recent pre-emptive rise in UK short term interest rates. Following the recent rally in bonds, UK equity valuations no longer look excessive. In the short term, your board believes that any correction in the stockmarket would generate an attractive buying opportunity. 'We believe that the new investment approach will result in improved total returns for shareholders, with the combination of a sustainable real growth in the dividend and the prospect of capital growth from a quality UK equity portfolio.' Tom Maxwell/Allan MacLeod Martin Currie Investment Management Ltd 0131 229 5252 tmaxwell@martincurrie.com or amacleod@martincurrie.com Fiona Harris Biddick Harris 0171 539 5757 fiona.harris@biddick-harris.co.uk SECURITIES TRUST OF SCOTLAND plc Statement of total return (incorporating the revenue account*) for the six months ended 30 September 1999 Unaudited 1999 Revenue Capital Total £'000 £'000 £'000 Gains/(losses) on investments - realised - 10,779 10,779 - unrealised - (10,296) (10,296) Currency losses - (5,013) (5,013) Income - franked 7,292 - 7,292 - unfranked 3,451 - 3,451 - FID 107 - 107 Investment management fee (312) (728) (1,040) Other expenses (400) (28) (428) ------- ------- ------- Net return before finance costs and 10,138 (5,286) 4,852 taxation Interest payable and similar charges (835) (1,949) (2,784) ------- ------- ------- Return on ordinary activities before 9,303 (7,235) 2,068 taxation Taxation on ordinary activities (1,404) 576 (828) ------- ------- ------- Return on ordinary activities after 7,899 (6,659) 1,240 taxation Dividends and other appropriations in (64) - (64) respect of non equity shares ------- ------- ------- Return attributable to equity 7,835 (6,659) 1,176 shareholders Dividends in respect of equity (3,844) - (3,844) shares: 1.20p per share ------- ------- ------- Transfer to reserves 3,991 (6,659) (2,668) ------- ------- ------- Return per ordinary share 2.45p (2.08p) 0.37p * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. Accounts are prepared on basis of management and finance costs being allocated on a ratio of 70/30 capital to revenue. The directors have declared an interim dividend on the ordinary shares of the company for the year ending 31 March 2000 of 1.20p per share (1999: 1.17p) to be paid on 20 December 1999 to shareholders on the register on 26 November 1999. The interim results will be circulated to shareholders in the form of an interim report, copies of which will be available at the company's registered office, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES. SECURITIES TRUST OF SCOTLAND plc Statement of total return (incorporating the revenue account*) for the six months ended 30 September 1998 Unaudited 1998 Revenue Capital Total £'000 £'000 £'000 Losses on investments - realised - (12,462) (12,462) - unrealised - (74,451) (74,451) Currency gains - 1,669 1,669 Income -franked 5,805 - 5,805 -unfranked 3,817 - 3,817 -FID 1,124 - 1,124 Investment management fee (471) (471) (942) Other expenses (284) - (284) ------- ------- ------- Net return before finance costs and 9,991 (85,715) (75,724) taxation Interest payable and similar charges (1,399) (1,399) (2,798) ------- ------- ------- Return on ordinary activities before 8,592 (87,114) (78,522) taxation Taxation on ordinary activities (1,788) 370 (1,418) ------- ------- ------ Return on ordinary activities after 6,804 (86,744) (79,940) taxation Dividends and other appropriations in (45) - (45) respect of non equity shares ------- ------- ------- Return attributable to equity 6,759 (86,744) (79,985) shareholders Dividends in respect of equity (3,748) - (3,748) shares: 1.17p per share ------- ------- ------- Transfer to reserves 3,011 (86,744) (83,733) ------- ------- ------- Return per ordinary share 2.11p (27.08p) (24.97p) ------- ------- ------- * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. SECURITIES TRUST OF SCOTLAND plc Statement of total return (incorporating the revenue account*) for the year ended 31 March 1999 Audited 1999 Revenue Capital Total £'000 £'000 £'000 Gains/(losses) on investments - realised - 15,408 15,408 - unrealised - (10,401) (10,401) Currency losses - (7,212) (7,212) Income -franked 12,731 - 12,731 -unfranked 6,699 - 6,699 -FID 2,120 - 2,120 Investment management fee (967) (966) (1,933) Other expenses (607) - (607) ------- ------- ------- Net return before finance costs and 19,976 (3,171) 16,805 taxation Interest payable and similar charges (2,857) (2,858) (5,715) ------- ------- ------- Return on ordinary activities before 17,119 (6,029) 11,090 taxation Taxation on ordinary activities (3,328) 820 (2,508) activities ------- ------- ------- Return on ordinary activities after 13,791 (5,209) 8,582 taxation Dividends and other appropriations in (90) - (90) respect of non equity shares ------- ------- ------- Return attributable to equity 13,701 (5,209) 8,492 shareholders Dividends in respect of equity (13,261) - (13,261) shares: 4.14p per share ------- ------- ------- Transfer to reserves 440 (5,209) (4,769) ------- ------- ------- Return per ordinary share 4.28p (1.63p) 2.65p * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. SECURITIES TRUST OF SCOTLAND plc BALANCE SHEET As at 30 September 1999 30 September 30 September 31 March 1999 1998 1999 £000 £000 £000 £000 £000 £000 Investments at market 519,714 455,770 533,365 value Current assets Debtors 6,493 5,928 15,430 Cash at bank 39,249 15,580 29,572 _____ _____ _____ 45,742 21,508 45,002 Creditors Amounts falling due (25,368) (27,288) (40,337) within one year _____ _____ _____ Net current 20,374 (5,780) 4,665 assets/(liabilities) ______ ______ ______ Total assets less current 540,088 449,990 538,030 liabilities Creditors Amounts falling due after (82,032) (68,230) (77,306) one year ______ ______ ______ Total assets attributable 458,056 381,760 460,724 to share capital ______ ______ ______ Capital and reserves Called up preference 2,843 2,843 2,843 capital Called up ordinary 80,080 80,080 80,080 capital Capital reserve 364,707 289,831 371,366 Revenue reserve 10,426 9,006 6,435 _____ _____ _____ 455,213 378,917 457,881 ______ ______ ______ Total shareholders' funds 458,056 381,760 460,724 ______ ______ ______ Net asset value per 142.1p 118.3p 142.9p ordinary share of 25p SECURITIES TRUST OF SCOTLAND plc STATEMENT OF CASH FLOW PERIOD ENDED 30 September 1999 30 September 30 September 31 March 1999 1999 1998 £000 £000 £000 £000 £000 £000 Operating activities Net dividends and interest 9,538 8,296 15,934 received from investments Interest received from 1,431 510 1,511 deposits Investment management fee (1,207) (644) (1,933) paid Cash paid to and on behalf (20) (12) (47) of directors Bank charges paid (29) (23) (46) Other cash payments (389) (230) (537) ______ ______ ______ Net cash inflow from 9,324 7,897 14,882 operating activities Servicing of finance Interest paid (2,797) (2,814) (5,927) Preference dividend paid (64) (45) (90) ______ ______ ______ Net cash outflow from (2,861) (2,859) (6,017) servicing of finance Taxation Net taxation recovered 245 1,246 479 ______ ______ ______ Net cash inflow from 245 1,246 479 taxation Capital expenditure and financial investment Payments to acquire (102,848) (72,070) (232,791) investments Receipts from disposal of 115,617 74,563 249,769 investments Exchange (losses)/gains (287) 118 313 ______ ______ ______ Net cash inflow from capital 12,482 2,611 17,291 expenditure and financial investment Equity dividends paid Dividends paid (9,513) (8,872) (12,620) ______ ______ ______ Cash outflow from equity (9,513) (8,872) (12,620) dividends _____ _____ ______ Increase in cash for the 9,677 23 14,015 period _____ _____ ______

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