Final Results

RNS Number : 2141T

Edinburgh Worldwide Inv Trust PLC

02 December 2011

 



Press Release

Edinburgh Worldwide Investment Trust plc

Results for the year to 31 October 2011

Over the year the Company's net asset value per share declined by 2.5% and the share price declined by 4.0%. For comparison the MSCI All Countries World Index (in sterling terms) was down by 2.7%.

Baillie Gifford & Co has been managing Edinburgh Worldwide for eight years and over that period, in total return terms, the share price has risen by 121.9%, net asset value per share by 102.0% and the Comparative Index by 71.0%.

¾  The past year has been marked by continued market turbulence, largely as a result of European market travails. Markets were also unsettled at times by US brinksmanship over funding for its budget deficit, questions over Chinese economic growth and the tragedy that befell Japan. During the period 12 new holdings were bought funded by 11 complete sales.

¾  Despite the macro picture, at the company level the last year has been marked by strong corporate results from, for example, Amazon, eBay, Google, Hermes and Novozymes. Many of the companies exposed to technology, luxury goods and consumption in developing nations appear well placed to continue growing.

¾  The net revenue return for the year was 2.51p (2010: 1.86p) up 34.9%, mainly due to a higher level of dividend payments from underlying holdings. An unchanged final dividend of 1.50p is being recommended to give a total for the year of 2.00p (2010: 2.00p).

¾  The Board and Managers remain excited by the prospects of the businesses in which the Company invests and believe that markets will reward companies for strong operational performance over the long term.

Past performance is not a guide to future performance.

Edinburgh Worldwide aims to achieve long term capital growth by investing in listed companies throughout the world. The Trust has total assets of £179.6 million (before deduction of loans of £30.0 million) as at 31 October 2011.

Edinburgh Worldwide is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £71 billion under management and advice as at 1 December 2011.

The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stockmarkets in which the Company invests and by the supply and demand for the Company's shares. Investment in investment trusts should be regarded as medium to long-term. You can find up to date performance information about Edinburgh Worldwide on the Edinburgh Worldwide page of the Managers' website at http://www.edinburghworldwide.co.uk

1 December 2011

For further information please contact:

Mark Urquhart, Manager, Edinburgh Worldwide Investment Trust plc

Tel: [phone]

Anzelm Cydzik, Baillie Gifford & Co

Tel: [phone]

Roland Cross, Director, Broadgate Mainland Marketing

Tel: [phone] or 07831 401309

Chairman's Statement

Investment Background and Outlook

The past year has been marked by continued market turbulence, largely as a result of European market travails, notably the ongoing saga surrounding European sovereign debt and its concomitant impact on many European banks and beyond, the state of the Euro and consequently European and global trade.  Markets were also unsettled in the period by US brinksmanship over funding for its budget deficit while the question of whether China has a 'hard' or 'soft' landing economically was a further unsettling factor.  Thrown into the mix, the tragedy that befell Japan in March had a knock-on effect on business supply chains globally.

Whilst not wishing to play down the importance of these issues for others, there appears to be a notable disconnect between market gyrations and the reality of results being reported by many companies across the globe.  The Managers have spent much time debating the respective merits of individual companies within the current economic climate since it has been so-called emerging markets that have been weakest of all despite being furthest away from the epicentres of many of the issues.  The conclusions remain as before; the shift in economic wealth and influence from the more mature to the so-called developing nations and companies remains unabated.  Operationally, if not necessarily in share price terms, many companies, not just those listed in the Far East, are performing very well, particularly those involved in new transformational technologies or those exposed to the growing wealth of Asian consumers.  Being able to identify the companies best placed to take advantage of such themes is the key focus of the Managers.  An overview provided by the Managers follows while on page 10 of the Annual Report there is a portfolio review which examines some of our individual holdings in more detail.

Performance

In the year to 31 October 2011 net asset value per share decreased by 2.5% and the share price fell 4.0%.  The MSCI All Countries World Index (in sterling terms) fell 2.7% during this period.  The Company's discount ended the year at 13.2% having started it at 11.9%.

The volatility of markets does, and will continue to, have an impact on the Company's short term performance. However, the concentrated nature of the portfolio, which is unconstrained by any requirement to match an index, combined with the Board's belief that the Managers are capable of investing in appropriate investments globally, should result in good returns for the long term shareholder.  The portfolio comprises holdings that are believed to have long term attractions, over at least five years, and typically will be geared to maximise the potential returns.  Over the eight years that Baillie Gifford & Co has been managing the Company's assets, in total return terms, net asset value per share has increased by 102.0%, the share price by 121.9% and the MSCI All Countries World Index by 71.0%.

Borrowings

Equity gearing was maintained throughout the year and was 14% at the year end.  During the period the Company repaid its £30m rolling multi currency facility with Lloyds and replaced it with a three year fixed rate multi currency loan from National Australia Bank.

Earnings and Dividend

The net revenue return per share for the year was 2.51p (2010: 1.86p), up 34.9%.  The Company's objective is one of capital growth.  Any income received from the underlying holdings is subsidiary to this objective.    The increase in revenue return over the past year is due to a higher level of dividends received from the Company's underlying holdings.  An unchanged final dividend of 1.50p is being recommended, making the total for the year 2.00p.

The Company's registrars operate a Dividend Reinvestment Plan which can be used to buy additional shares.

Investment Policy

Since the year end your Board has announced a minor adjustment to the Company's Investment Policy to allow investment in unlisted equity investments. The intention is not to invest in small start-up investments at an early stage but more mature companies planning to undertake an IPO in the foreseeable future and which are believed to have above average prospects for growth. It is not anticipated that such investments will be made regularly and on acquisition the aggregate holdings in unlisted equity investments shall not exceed 1% of total assets.

The Board

I am pleased to report that Mr Henry Strutt was appointed to the Board on 1 November 2011. Henry, a qualified Chartered Accountant, spent over twenty years with the Robert Fleming Group, seventeen of which were in the Far East. Mr Jake Leslie Melville will retire from the Board on 31 December 2011. The Board has appreciated his contribution to discussions and wishes him every success.

It is with great sadness that I report the death during the summer of David Coltman, the Company's former Chairman.  Having been appointed in 1998, David proved to be an excellent Chairman, demonstrating thoughtful and astute decision making.  He oversaw the reconstruction of Dunedin Worldwide Investment Trust in 1998, from which the Company was the successor vehicle, and oversaw the appointment of Baillie Gifford as Investment Manager.  I think shareholders were fortunate to have had David as Chairman and he will be missed.

Annual General Meeting

The Annual General Meeting of the Company will be held at Baillie Gifford's offices in Edinburgh at 12 noon on Thursday 2 February 2012.  The Company will again seek to renew its share buyback and treasury share powers.  

Mark Urquhart, the Partner at Baillie Gifford who manages your portfolio, will make a presentation and answer any questions.  Your Board will also be available to respond to any questions that you may wish to put to it.  I hope that you will be able to attend.

David HL Reid

Chairman

Past performance is not a guide to future performance.

Managers' Overview

We reiterate every year that our objective in managing Edinburgh Worldwide is to run a concentrated portfolio of companies with good growth prospects for the long term. It seems increasingly to us that markets want to do precisely the opposite - every fragment of news or piece of information is exaggerated and turned into a cause of numerous effects. In stockmarket terms such myopia is exacerbated by the number of machines engaged in high frequency trading where the average holding period is reported to be 30 milliseconds (or one-tenth of an average blink). More than ever, we feel that trying to extricate ourselves from the prevailing herd and think long and hard about the next five and ten years should be a profitable way to invest.

In the eight and a bit years since Baillie Gifford were appointed managers of the Trust, there have been financial crises in places as far flung as Dubai, Iceland and Greece whilst almost every economy felt at least a ripple from the collapse of the credit boom. Also during these eight years Amazon has increased its turnover tenfold; Apple has revolutionised three markets with the iPod, iPhone and iPad; Chinese retail sales have more than doubled and Facebook has become the company with the most users worldwide - currently 800m and counting. It remains our firm belief that by investing in companies with opportunities created by such monumental change that we can add long term value to the portfolio and we will continue to seek to be judged over five years plus time periods.

In this long term context, the last twelve months have felt like a good test of our resolve as the machinations of the financial crisis have become more complicated and wider spread. Many millions of column inches have already been spent trying to decipher the almost daily cacophony of noise surrounding macro events and we do not seek to add to them here as we much prefer to concentrate on those companies which are seeing strong growth and revolutionising the way we live our daily lives.

We see nothing in the last year which shifts our core belief as stated in last year's annual report and which is worth restating:

"That the next few years will see some very different macroeconomic outcomes as those

economies most exposed to the debt crisis pay for their folly which accelerates many of the

tectonic shifts already underway in the global economy.  This is not meant to be dismissive of

the problems which many indebted nations face but is an attempt to place them in a balanced

global context. Running a global portfolio affords us the great luxury of navigating around

those countries and companies with the largest problems."

At the company level the last year has been marked by some very strong corporate results - Amazon is growing at its fastest rate in a decade and putting more and more bricks and mortar retailers out of business;  Hermes has had its strongest figures in its 170-year history of selling leather goods; Novozymes continues to find more uses for its enzymes and eBay and Google are seeing astonishing growth in their mobile revenues as the smartphone revolution carries on regardless of the macroeconomy.

Notable new holdings purchased during the year include Salesforce.com, which we believe is the dominant force in the move to cloud computing; Illumina - a leader in the nascent and fast-growing world of gene sequencing; BMW which is replicating its European profitability in global markets and iRobot which makes robotic devices spanning from the battlefield to the home.

Of course, we will make investment mistakes - alternative energy has been a painful area of investment for us as Chinese price competition has trumped any notion of competitive advantage and our thesis in buying Banco Santander as a strong survivor in banking has proven incorrect - there has been little to no exit and tougher regulation has effected all players. Other sales included exiting our position in Petrobras where we think the changes in government stance are good for Brazil but bad for minority shareholders, and Autonomy, where shortly after purchase the shares were bid for by Hewlett Packard at a much higher price.

The number of equity holdings stood at 40 at the year end, which compares to 39 at October 2010,  and portfolio turnover was 27.2%. We would again reiterate that we pay no heed to country or sector weights in constructing the portfolio - it is composed purely of companies where we are genuinely enthusiastic about their growth prospects for the next decade.

We remain excited by the prospects of the businesses that we own and believe that patient investors will be rewarded for strong operational performance over the long term. It remains our strong belief that, by trying to separate the long term value of businesses from the inevitable short term noise of events, we can create a portfolio which rewards our shareholders with outperformance over long term periods of measurement.

Mark A Urquhart

Baillie Gifford & Co

Past performance is not a guide to future performance.

Income statement

The following is the unaudited preliminary statement for the year to 31 October 2011 which was approved by the Board on 1 December 2011. The Board of Edinburgh Worldwide Investment Trust plc is recommending to the Annual General Meeting of the Company to be held on 2 February 2012 the payment of a final dividend of 1.50p, making a total of 2.00p per ordinary share (2.00p last year) for the year ended 31 October 2011.

	For the year ended 31 October 2011 (unaudited)			For the year ended 31 October 2010 (audited)
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
(Losses)/gains on investments	-	(855)	(855)	-	29,831	29,831
Currency losses	-	(1,344)	(1,344)	-	(1,122)	(1,122)
Income (note 2)	2,412	-	2,412	1,931	-	1,931
Investment management fee	(283)	(850)	(1,133)	(250)	(784)	(1,034)
VAT recovered (note 3)	-	-	-	25	127	152
Other administrative expenses	(498)	-	(498)	(440)	-	(440)
Net return before finance costs and taxation	1,631	(3,049)	(1,418)	1,266	28,052	29,318
Finance costs of borrowings	(158)	(475)	(633)	(130)	(390)	(520)
Net return on ordinary activities before taxation	1,473	(3,524)	(2,051)	1,136	27,662	28,798
Tax on ordinary activities	(242)	-	(242)	(226)	-	(226)
Net return on ordinary activities after taxation	1,231	(3,524)	(2,293)	910	27,662	28,572
Net return per ordinary share (note 5)	2.51p	(7.19p)	(4.68p)	1.86p	56.45p	58.31p

The total 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. No operations were acquired or discontinued during the year.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

Balance sheet

	At 31 October 2011 (unaudited) £'000	At 31 October 2010 (audited) £'000
Fixed assets
Investments held at fair value through profit or loss	170,715	173,763
Current assets
Debtors	209	314
Cash and short term deposits	9,122	4,053
	9,331	4,367
Creditors
Amounts falling due within one year (note 6)	(425)	(25,217)
Net current assets/(liabilities)	8,906	(20,850)
Total assets less current liabilities	179,621	152,913
Creditors
Amounts falling due after more than one year (note 6)	(29,981)	-
Total net assets	149,640	152,913
Capital and reserves
Called-up share capital	2,450	2,450
Share premium	82,180	82,180
Special reserve	35,220	35,220
Capital reserve	27,260	30,784
Revenue reserve	2,530	2,279
Shareholders' funds	149,640	152,913
Net asset value per ordinary share (after deducting borrowings at fair value)	304.24p	312.04p
Net asset value per ordinary share (after deducting borrowings at par)	305.36p	312.04p
Ordinary shares in issue	49,004,319	49,004,319

Distribution of assets (unaudited)

		At 31 October 2011 %				At 31 October 2010 %
Equities:	USA	39.7			33.3
	China	17.2			15.3
	France	10.0			8.4
	Sweden	5.3			7.9
	Brazil	4.4			12.2
	Denmark	3.5			3.5
	Switzerland	3.4			3.9
	Spain	3.3			3.8
	India	2.0			2.3
	Russia	2.0			1.9
	Germany	1.5			-
	Turkey	1.4			1.8
	Israel	1.3			1.6
	Japan	-			1.9
Total equities		95.0			97.8
Net liquid assets		5.0			2.2
Total assets (before deduction of loan)		100.0			100.0

Reconciliation of movements in shareholders' funds

For the year ended 31 October 2011 (unaudited)

	Called-up share capital £'000	Share premium £'000	Special Reserve £'000	Capital reserve £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2010	2,450	82,180	35,220	30,784	2,279	152,913
Net return on ordinary activities after taxation	-	-	-	(3,524)	1,231	(2,293)
Dividends paid during the year (note 4)	-	-	-	-	(980)	(980)
Shareholders' funds at 31 October 2011	2,450	82,180	35,220	27,260	2,530	149,640

For the year ended 31 October 2010 (audited)

	Called-up share capital £'000	Share premium £'000	Special Reserve £'000	Capital reserve £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2009	2,450	82,180	35,220	3,122	2,839	125,811
Net return on ordinary activities after taxation	-	-	-	27,662	910	28,572
Dividends paid during the year (note 4)	-	-	-	-	(1,470)	(1,470)
Shareholders' funds at 31 October 2010	2,450	82,180	35,220	30,784	2,279	152,913

Condensed cash flow statement

	For the year ended 31 October 2011 (unaudited)		For the year ended 31 October 2010 (audited)
	£'000	£'000	£'000	£'000
Net cash inflow from operating activities (note 9)		864		716
Servicing of finance
Interest paid	(589)		(547)
Net cash outflow from servicing of finance		(589)		(547)
Taxation
Overseas tax incurred	(253)		(238)
Total tax paid		(253)		(238)
Financial investment
Acquisitions of investments	(44,650)		(32,507)
Disposals of investments	46,843		32,877
Realised currency (loss)/gain	(23)		157
Net cash inflow from financial investment		2,170		527
Equity dividends paid (note 4)		(980)		(1,470)
Financing
Bank loans repaid	(235,952)		(292,651)
Bank loans drawn down	239,809		292,674
Net cash inflow from financing		3,857		23
Increase/(decrease) in cash		5,069		(989)
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash in the period		5,069		(989)
Net cash inflow from bank loans		(3,857)		(23)
Exchange movement on bank loans		(1,321)		(1,279)
Movement in net debt in the year		(109)		(2,291)
Net debt at 1 November		(20,750)		(18,459)
Net debt at 31 October		(20,859)		(20,750)

Portfolio and equity performance at 31 October 2011 (unaudited)

Name	Business	Fair value £'000	% of total assets	Performance†		Fair value 2010 £'000
				Absolute %	Relative %
Amazon	Online retailer	12,685	7.1	28.3	28.3	12,188
Apple	Computing and media equipment	9,680	5.4	33.3	33.3	7,264
Baidu	Chinese online search engine	9,491	5.3	26.2	26.2	10,383
eBay	Internet auction and payments	7,340	4.1	5.8	5.8	6,944
Whole Foods Market	Organic food stores	6,717	3.7	80.7	80.8	3,736
Hermès	Luxury goods	6,320	3.5	61.1	61.1	2,613
PPR	Luxury brand conglomerate	6,319	3.5	0.0	0.0	6,155
Atlas Copco	Industrial compressors and mining equipment	6,306	3.5	10.4	10.4	8,921
Novozymes	Enzyme manufacturer	6,296	3.5	13.3	13.3	4,803
Vale (CVRD)	Mining	6,113	3.4	(13.4)	(13.4)	8,329
Tencent	Chinese social network	6,018	3.3	2.2	2.2	4,783
Intuitive Surgical	Robotic surgery	5,913	3.3	63.0	63.0	3,026
Inditex	Fashion retail	5,859	3.3	11.4	11.4	2,190
Google	Web-based search engine	5,706	3.2	(4.2)	(4.2)	5,965
Salesforce.com	Software	4,767	2.7	3.9*	12.4*	-
Deere	Farm and construction machinery	4,690	2.6	(0.5)	(0.5)	5,595
New Oriental Education and    Technology	English-language schools	4,475	2.5	9.4	9.4	4,086
ABB	Power systems and automation	3,669	2.0	(5.9)	(5.8)	3,998
Gazprom	Gas exploration and production	3,646	2.0	7.1	7.1	3,457
Housing Development     Finance Corporation	Indian mortgage provider	3,620	2.0	(8.2)	(8.2)	3,999
Sandvik	Tools and mining equipment	3,308	1.8	(5.9)	(5.9)	5,079
L'Oréal	Personal care	3,116	1.7	(4.3)	(4.2)	3,315
FLIR Systems	Infrared sensors	2,967	1.7	(5.9)	(5.9)	3,165
iRobot	Robots for domestic and military use	2,939	1.6	53.6*	60.0*	-
BMW	Premium car manufacturer	2,698	1.5	(1.0)*	(6.1)*	-
Garanti Bankasi	Turkish bank	2,543	1.4	(42.8)	(42.8)	3,245
Ctrip.com	Travel agent - China	2,535	1.4	(23.5)*	(20.3)*	-
Hengdeli Holdings	Chinese watch retailer	2,482	1.4	(13.9)*	(5.5)*	-
Straumann	Dental implants	2,476	1.4	(14.5)	(14.5)	2,948
CFAO	African distribution	2,315	1.3	(10.4)	(10.4)	2,650
Teva Pharmaceuticals	Generic drugs manufacturer	2,285	1.3	(20.8)	(20.7)	2,930
First Solar	Designs and manufactures solar modules	2,203	1.2	(64.1)	(64.1)	4,236
Illumina	Biotechnology equipment	2,129	1.2	(56.9)*	(53.5)*	-
Seattle Genetics	Biotech cancer drugs	1,847	1.0	2.6*	0.8*	-
Belle International	Footwear - China	1,797	1.0	(1.3)*	5.6*	-
ALL America Latina     Logistica	Brazilian railways	1,777	1.0	(47.6)	(47.5)	2,605
3SBio	Chinese generic drugs	1,632	0.9	(35.2)*	(30.3)*	-
MIPS Technologies	Mobile phone chips	1,568	0.9	(20.8)*	(13.1)*	-
Noah Holdings	Chinese wealth manager	1,387	0.8	(29.0)*	(23.6)*	-
Vanceinfo	Chinese IT outsourcing	1,081	0.6	(68.4)	(68.4)	3,398
Total equities		170,715	95.0
Net liquid assets		8,906	5.0
Total assets		179,621	100.0

†      Absolute and relative performance has been calculated on a total return basis over the period 1 November 2010 to 31 October 2011. For investments held for part of the year the return is for the period they were held.

Absolute performance is in sterling terms; relative performance is against MSCI All Countries World Index (in sterling terms).

* Figures relate to part-period returns.

Source: Baillie Gifford & Co/StatPro.

Notes (unaudited)

1.	The financial statements for the year to 31 October 2011 have been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 31 October 2010, which are unchanged from the prior year and have been applied consistently. In accordance with the Financial Reporting Council's guidance on going concern and liquidity risk, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly. All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board on a regular basis. Accordingly, the financial statements have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future. The Directors consider the Company's functional currency to be sterling as the Company's shareholders are predominantly based in the UK and the Company is subject to the UK's regulatory environment.
2.	Income	2011 £'000		2010 £'000
	Income from investments	2,356		1,919
	Deposit interest	56		12
		2,412		1,931
3.	Vat recovered
	In 2007 the European Court of Justice ruled that investment trust management fees should be exempt from VAT. During the year to 31 October 2011, interest of £37,000 was received in respect of the £152,000 of VAT recovered in the year to 31 October 2010. VAT of £257,000 together with interest of £22,000 was recovered in the year to 31 October 2008. In accordance with AIC guidance, recovered VAT has been allocated between revenue and capital on the same basis as the VAT expense was originally charged.
4.	Ordinary dividends	2011	2010	2011 £'000	2010 £'000
	Amounts recognised as distribution in the period:
	Previous year's final (paid 9 February 2011)	1.50p	1.50p	735	735
	Previous year's special (paid 9 February 2010)	-	1.00p	-	490
	Interim (paid 21 July 2011)	0.50p	0.50p	245	245
		2.00p	3.00p	980	1,470
	We also set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £1,231,000 (2010 - £910,000).

Notes (unaudited) (ctd)

4.	Ordinary dividends (ctd)	2011		2010	2011 £'000		2010 £'000
	Dividends paid and payable in respect of the year:
	Interim dividend per ordinary share (paid 21 July 2011)	0.50p		0.50p	245		245
	Proposed final dividend per ordinary share (payable 8 February 2012)	1.50p		1.50p	735		735
		2.00p		2.00p	980		980
5.	Net return per ordinary share Revenue 2011 Capital Total Revenue 2010 Capital Total Net return on ordinary activities after     taxation 2.51p (7.19p) (4.68p) 1.86p 56.45p 58.31p
	Revenue return per ordinary share is based on the net return on ordinary activities after taxation of £1,231,000 (2010 - £910,000) and on 49,004,319 ordinary shares, being the weighted average number of ordinary shares in issue during each year. Capital return per ordinary share is based on the net capital loss for the financial year of £3,524,000 (2010 - gain of £27,662,000) and on 49,004,319 ordinary shares, being the weighted average number of ordinary shares in issue during each year. There are no dilutive or potentially dilutive shares in issue.
6.	The £30 million, 1 year multi-currency facility with Lloyds TSB Scotland plc was repaid on 30 September 2011. A new 3 year fixed rate facility with National Australia Bank Limited for €11.4m, US$16.35m and £10.0m was arranged, expiring on 30 September 2014.
7.	The Company incurred transaction costs on purchases of £61,000 (2010 - £23,000) and on sales of £43,000 (2010 - £27,000).
8.	At the Annual General Meeting on 3 February 2011 the Company renewed its authority to purchase shares in the market, in respect of 7,345,747 ordinary shares (equivalent to 14.99% of its issued share capital at that date). No shares were bought back during the year to 31 October 2011 or 2010. At 31 October 2011 the Company had authority to buy back 7,345,747 ordinary shares.
			2011 £'000			2010 £'000
9.	Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
	Net return before finance costs and taxation		(1,418)			29,318
	Losses/(gains) on investments		855			(29,831)
	Currency losses		1,344			1,122
	Other non-cash movements		-			(48)
	Decrease in accrued income		22			138
	Decrease/(increase) in debtors		94			(75)
	(Decrease)/increase in creditors		(33)			92
	Net cash inflow from operating activities		864			716

Notes (unaudited) (ctd)

10.	The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 October 2011. The financial information for 2010 is derived from the statutory accounts for 2010 which have been delivered to the Registrar of Companies. The Auditors have reported on the 2010 accounts, their report was unqualified and did not contain a statement under section 495 to 497 of the Companies Act 2006. The statutory accounts for 2011 are unaudited and 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.
11.	The Report and Accounts will be available on the Edinburgh Worldwide page of the Managers' website http://www.edinburghworldwide.co.uk on or around 21 December 2011.
12.	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

- ends -

 

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