Interim Results

Murray International Trust PLC
26 July 2001


MURRAY INTERNATIONAL TRUST PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2001

The Directors of Murray International Trust PLC report the unaudited results
of the company for the six months ended 30 June 2001.

KEY POINTS

  * Net Asset Value Total Return of -7.4% compared with a total return of
    -5.6% from the benchmark index.
  * Share Price Total Return of -7.1%.
  * Total forecast dividend for the year of 16.3p per share.
  * Share buybacks enhanced Net Asset Value by 1.59%.

BACKGROUND

After an initial rise in January, global markets suffered a severe setback
thereafter, particularly in the first quarter of the year when the S&P500 had
its worst quarter for nearly thirty years and the technology heavy NASDAQ
declined over 25%, its worst ever quarterly fall apart from the 1987 crash.
This was due to a spate of profits warnings from the technology sectors
experiencing an unexpected collapse in demand and also to a growing
realisation that expectations of a 'V' shaped recovery in the US and global
economy were at best premature and more probably unduly optimistic. Market
returns for the half year were negative, despite an aggressive programme of
monetary easing by the US Federal Reserve, and had rather a familiar look with
the US relatively strong and Europe and the UK relatively weak but this
outcome was much affected by movements in currencies with the dollar strong
against both the yen and the Euro in particular so that in sterling terms
North American markets returned -2.0%, Japan -2.3%, Europe -13.6% and the UK
-7.7%. Yields on government bond markets rose slightly over the period as
markets feared inflationary consequences from the Fed's aggressive monetary
easing but total returns stayed in positive territory. Non-investment grade
bonds suffered from global economy worries, telecom sector concerns and rising
spreads in some emerging market debt. Murray International's bond portfolio is
almost wholly concentrated in investment grade names.

PERFORMANCE

The net asset value total return, with net income re-invested for the six
months to 30 June 2001, was -7.4% and the share price total return with net
dividends re-invested was -7.1% compared with a return of -5.6% on the
composite benchmark (40% of the FTSE World-UK and 60% of the FTSE World ex-UK
indices).

Despite being substantially underweight in the US stock market, where a strong
dollar helped to limit the index loss to -1.6%, asset allocation was slightly
positive overall as this was more than offset by overweight positions in
Japan, Asia/Pacific and particularly Latin America where returns were
substantially above the composite benchmark. Stock selection was therefore
negative in both the USA and, to a lesser extent, in Japan. In particular the
US portfolio suffered from a higher than index exposure to technology sectors
until it was rebalanced in late March.



SHARE BUYBACKS

During the half year the company bought back 13,915,000 of its shares at an
average price of 509.47p (an aggregate of £70.9m) and this contributed 1.59%
per share to net asset value as at 30 June 2001.


ACTIVITY

There were two main influences on portfolio activity during the period. The
first derived from the scale of the share buy back referred to above, which
necessitated disinvestment from all the main geographic regions.

The second influence was the sudden downturn in leading indicators for the
European economy, which prompted the decision to eliminate exposure to the
emerging European market area for the time being.

In the current environment the general thrust of the portfolio is towards
relative security of earnings and to avoid undue exposure to technology stocks
given the lessons of history in this regard.

DIVIDENDS

For the current year the board has already declared that three interim
dividends of 3.45p per share be paid on 17 August and 16 November 2001 and 18
February 2002. The Board intends to recommend a final dividend in respect of
the year ended 31 December 2001, payable in May 2002, of 5.95p per share,
making a total distribution for the year of 16.3p (2000 - 15.9p), an increase
of 2.5% on the previous year.

Shareholders will have noted the increasing tendency of UK companies to engage
in share buy-backs rather than to increase dividends. For an income orientated
investment trust, with a substantial UK weighting, this is a concern, and the
Board is monitoring this development closely.


OUTLOOK

Prospects for growth in the global economy have deteriorated sharply over the
last six months. In large measure the sudden slowdown in the US economy is due
to structural overcapacity arising from eighteen months of a capital spending
frenzy. This has caused retrenchment and consequent inventory adjustments,
which have had repercussions on both Asia (including Japan) and Europe. So
far, whilst survey expectations of consumer confidence in the US have fallen,
actual spending patterns have held up well and this will be key to growth
prospects going forward. Given that capital spending cycles are by their
nature fairly lengthy affairs (historically three to six years) the response
to interest rate changes is unusually reliant on the consumer and may thus be
rather more muted than the general expectation.




On most historic relationships global markets in aggregate are around fair
value but we have returned to a position where the US is somewhat overvalued,
with Europe and the UK some 10% undervalued whilst Japan is priced for
deflation. Against this there is the clear risk that corporate profits
forecasts for 2002 will be too high, as they were this year, and portfolio
emphasis will continue to seek relative security of earnings.


By order of the Board

Murray Johnstone Limited, Secretary


26 July 2001





MURRAY INTERNATIONAL TRUST PLC
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the six months ended 30 June 2001 (unaudited)

                            Six months to 30 June   Six months to 30 June 2000
                                    2001
                           Revenue Capital   Total   Revenue   Capital    Total
                             £'000   £'000   £'000     £'000     £'000    £'000

(Losses) gains on sales          - (40,173) (40,173)       -    34,702   34,702
Unrealised (losses) gains        - (16,227) (16,227)       -     9,084    9,084
Losses on investments            - (56,400) (56,400)       -    43,786   43,786

Income
   Income from investments  10,520       -  10,520    11,642         -   11,642
   Other income                154       -     154       339         -      339
Management fees              (696) (1,623) (2,319)     (714)   (1,665)  (2,379)
Currency gains (losses)          -   6,245   6,245         -   (2,226)  (2,226)
Other expenses               (722)       -   (722)     (717)       (8)    (725)

Net return before finance    9,256 (51,778)(42,522)   10,550    39,887   50,437
costs and taxation

Finance costs of borrowing   (747) (1,742) (2,489)   (1,238)   (2,890)  (4,128)

Return on ordinary           8,509 (53,520)(45,011)    9,312    36,997   46,309
activities before tax

Tax on ordinary activities (1,125)     746   (379)     (995)       596    (399)

Return attributable to       7,384 (52,774)(45,390)    8,317    37,593   45,910
equity shareholders

Ordinary dividends on      (9,666)       - (9,666)  (10,724)         - (10,724)
equity shares

Transfer to (from)         (2,282) (52,774)(55,056)  (2,407)    37,593   35,186
reserves

Return per ordinary share     8.1p (58.1p) (50.0p)      7.8p     35.1p    42.9p

Return per ordinary share     8.0p (57.3p) (49.3p)      7.7p     34.7p    42.4p
assuming full conversion
of the B ordinary shares



MURRAY INTERNATIONAL TRUST PLC
STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT)
for the six months ended 30 June 2001
(unaudited)
                                             Year ended 31 December 2000
                                         Revenue        Capital          Total
                                           £'000          £'000          £'000

(Losses) gains on sales                        -      (128,806)      (128,806)
Unrealised (losses) gains                      -      (132,544)      (132,544)

Losses on investments                          -        (3,738)        (3,738)

Income
    Income from investments               20,357              -         20,357
    Other income                             818              -            818
Management fees                          (1,455)        (3,397)        (4,852)
Currency gains (losses)                        -        (3,582)        (3,582)
Other expenses                           (1,587)            (9)        (1,596)

Net return before finance costs and       18,133       (10,726)          7,407
taxation

Finance costs of borrowing               (2,118)        (4,941)        (7,059)

Return on ordinary activities before      16,015       (15,667)            348
tax

Tax on ordinary activities               (1,710)          1,157          (553)

Return attributable to equity             14,305       (14,510)          (205)
shareholders

Ordinary dividends on equity shares     (15,228)              -       (15,228)

Transfer to (from) reserves                (923)       (14,510)       (15,433)

Return per ordinary share                  13.5p        (13.7p)         (0.2p)

Return per ordinary share                  13.3p        (13.5p)         (0.2p)
assuming full conversion of the
B ordinary shares


Notes

1. The revenue column of this statement is the profit and loss account of the
company.


2. The results for the year to 31 December 2000 are abridged from the full
accounts for that year, which received an unqualified report from the auditors
and have been filed with the Registrar of Companies.


MURRAY INTERNATIONAL TRUST PLC
BALANCE SHEET
as at 30 June 2001 (unaudited)
                                                 30 June  30 June   31 December
                                                    2001     2000          2000
                                                   £'000    £'000         £'000
Fixed assets
Investments                                      597,055  821,109       720,777

Current assets
Debtors                                            5,919   10,791         8,343
Cash and short term deposits                      10,590   17,376        10,075

                                                  16,509   28,167        18,418
Creditors
Amounts falling due within one year               11,273   30,678        29,983

Net current assets (liabilities)                   5,236  (2,511)      (11,565)

Total assets less current liabilities            602,291  818,598       709,212

Creditors
Amounts falling due after more than one year     127,406  154,322       108,049

                                                 474,885  664,276       601,163
Capital and reserves
Equity shareholders interest:
Ordinary called up share capital                  22,760   26,734        26,225
Share premium account                                 23       23            23
Capital redemption reserve                         7,335    4,823         3,863
Capital reserve - realised                       404,868  413,186       499,555
Capital reserve - unrealised                       8,507  187,321        37,824
Revenue reserve                                   31,392   32,189        33,673

                                                 474,885  664,276       601,163

                                                 474,885  664,276       601,163
Net asset value per ordinary and
'B' ordinary share                                521.6p   621.2p        573.1p




MURRAY INTERNATIONAL TRUST PLC
CASH FLOW STATEMENT
for the six months ended 30 June 2001

                                          Six months   Six months    Year ended
                                                  to           to
                                        30 June 2001 30 June 2000   31 December
                                                                           2000
                                               £'000        £'000         £'000
Operating activities
 Investment income received                   10,219       10,816        20,099
 Deposit interest received                       138          341           824
 Placing commission                                -            5             -
 Underwriting commission received                  -            4             8
 Investment management fees paid             (1,584)      (2,356)       (4,403)
 Secretarial fees paid                          (33)         (50)         (100)
 Cash paid to and on behalf of                  (33)         (28)          (54)
 directors
 Other cash payments                           (332)        (707)       (1,961)
Net cash inflow from operating                 8,375        8,025        14,413
activities

Returns on investment and servicing of
finance
 Interest paid                               (2,608)      (3,461)       (7,138)

Net cash outflow from returns on             (2,608)      (3,461)       (7,138)
investment and servicing of finance

Financial investment
 Purchase of investments                   (229,221)    (269,809)     (450,464)
 Sale of investments                         297,048      281,761       507,624
 Purchase of currency option                 (6,398)            -         4,374
Net cash inflow from financial                61,429       11,952        61,534
investment

Equity dividends paid                        (8,593)      (9,305)      (16,506)

Net cash inflow before use of liquid
resources and financing                       58,603        7,211        52,303

Financing
 Issue of shares                                   -     (23,735)             -
 Loans received                               22,000       59,380     (126,026)
 Loans repaid                               (10,000)     (55,149)        89,157
 Repurchase of ordinary shares              (71,221)            -      (35,806)
Net cash outflow from financing             (59,221)     (19,504)      (72,675)

Decrease in cash                               (618)     (12,293)      (20,372)




MURRAY INTERNATIONAL TRUST PLC

                                                6 months to          Year to
                                          30/6/01      30/6/00       31/12/00

Equity shareholders' interest*         £474,885,000  £664,276,000  £601,163,000
                                                 
Net asset value per ordinary share
 and 'B' ordinary share                       521.6p       621.2p        573.1p


* The reduction in Equity Shareholders interests includes the effect of the
share buybacks undertaken during the relevant periods.


Note 1

The number of 'B' ordinary shares converted into ordinary shares on 30 June
2001 was 66,036. The allotted ordinary share capital as of 30 June 2001 was:

                                                                   £000

89,807,877    Ordinary shares of 25p                               22,452
1,235,051     'B' Ordinary shares of 25p                           309




Note 2

                                                         6 months to    Year to
Dividends on ordinary shares                          30/6/01  30/6/00  31/12/00
                                                        £000     £000     £000

Interims of
                                                       3,098    3,640    3,623
- 3.45p payable 17.8.01 (2000 - 3.45p)
- 3.45p payable 16.11.01 (2000 - 3.45p)                3,098    3,640    3,578
- 3.45p payable 18.2.02 (2000 - 3.45p)                 3,098    3,640    3,152
Final dividend (2000 - 5.15p)                              -        -    5,070
Under (over) accrual of previous year's dividends
 due to share buybacks                                   372     (196)    (195)



                                                       9,666   10,724   15,228


Note 3

A summary of investment changes during the period and twenty largest equity
investments at 30 June 2001 are attached.


Note 4

The revenue column of the statement of total return is the profit and loss
account of the company.


Note 5

The results for the year ended 31 December 2000 are abridged from the full
accounts for that year, which received an unqualified report from the auditors
and have been filed with the Registrar of Companies.



By order of the Board


MURRAY JOHNSTONE LIMITED, SECRETARY


26 July 2001

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.




MURRAY INTERNATIONAL TRUST PLC
SUMMARY OF INVESTMENT CHANGES
DURING THE PERIOD

                          Valuation                   Appreciation  Valuation
                       31 December 2000 Transactions (depreciation) 30 June 2001
                          £'000       %        £'000         £'000  £'000     %
Equities
United Kingdom          254,091    35.4     (23,851)      (27,070) 203,170  33.6
Americas                132,226    18.4     (11,744)       (8,139) 112,343  18.7
Europe & Africa         111,692    15.5     (18,566)      (14,051) 79,075  13.1
Japan                    71,256     9.9      (4,397)       (3,505) 63,354  10.5
Middle East, Far East    28,777     4.0        (442)       (1,477) 26,858   4.5
& Australasia
                        598,042    83.2     (59,000)      (54,242) 484,800  80.4
Fixed income
United Kingdom           82,951    11.5      (9,979)       (3,808) 69,164  11.5
Europe & Africa          39,085     5.4        1,669         2,337 43,091   7.2
Americas                    699     0.1        (669)          (30)      -     -
                        122,735    17.0      (8,979)       (1,501) 112,255  18.7

Other net               (1,565)   (0.2)        5,669         1,132  5,336   0.9
(liabilities) assets

Total Assets            719,212   100.0     (62,310)      (54,612) 602,291 100.0


                                                                      Valuation
Summary of Net Assets                                              30 June 2001
                                                 £'000                        %

Equities                                       484,800                    102.1
Fixed Income                                   112,255                     23.6
Other Net Assets                                 5,236                      1.1
Borrowings and prior capital                 (127,406)                   (26.8)

Equity shareholders' interest                  474,885                    100.0


    MURRAY INTERNATIONAL TRUST PLC
    TWENTY LARGEST INVESTMENTS
    as at 30 June 2001
                                                Investment Valuation
                                                                           % of
    Investment                                  Area           £'000      Total
                                                                         Assets

  * BP Amoco                                    UK            22,919        3.8
    John Menzies                                UK            20,970        3.5
    GlaxoSmithKline                             UK            19,406        3.2
  * Vodafone Group                              UK            17,582        2.9
    HSBC Holdings                               UK            10,953        1.8
    Shell Transport & Trading                   UK             9,497        1.6
  * Lloyds TSB                                  UK             8,580        1.4
    Atrium Underwriting                         UK             7,909        1.3
  * Royal Bank of Scotland Group                UK             6,787        1.1
    Petrobras ADR                               Brazil         6,641        1.1
    AstraZeneca                                 UK             6,626        1.1
  * British Telecom                             UK             6,624        1.1
  * Barclays                                    UK             6,428        1.1
    Microsoft                                   USA            4,743        0.8
    Germany 6% 4/7/2007                         Germany        4,362        0.7
    Aberdeen Japan Growth                       Japan          3,989        0.7
    Philip Morris                               USA            3,988        0.7
    Diageo                                      UK             3,516        0.6
    AOL Time Warner                             USA            3,365        0.6
    Sunamerica Institutional Funding 5.375% 07/ UK             3,313        0.6
    12/2009
                                                             178,198       29.7
    * Holding comprises equity and fixed income securities.