Final Results

To: Stock Exchange                            For immediate
                                              release:
                                              25 April 2006


                        SECURITIES TRUST OF SCOTLAND plc
  Results for the period from 15 April 2005 (date of incorporation) to 31 March
                                      2006



Chairman's statement


Introduction

It is now just over a year since your company was incorporated - on 15 April
2005 - as part of the reconstruction proposals offered to shareholders of its
then-namesake, following its successful defence of the hostile takeover bid
mounted by Perpetual Income and Growth Investment Trust. The `old' company is
now in liquidation and, following shareholder approval and elections, the `new'
Securities Trust of Scotland listed on the Stock Exchange on 28 June 2005, with
initial assets representing the formula asset value of the `old' company as at
24 June. Hence, although this report technically refers to the period since
incorporation, my comments - and those of the manager - relate to an investment
period of just over nine months.

Performance

In this period, the company's net asset value (NAV) per share total return has
been 25.7%, compared with the 22.7% outcome from the benchmark FTSE All-Share
index. This excellent debut - in both absolute and relative terms - reflects a
remarkably benign stockmarket performance where, despite a sluggish domestic
economy, UK equities have benefited from both their international exposure and a
low interest rate environment to generate robust earnings and, particularly
important in our case, strong dividend growth. With a portfolio of, typically,
just 50 to 60 companies, performance inevitably relies heavily on the manager's
stock-picking abilities. I would like to congratulate Martin Currie on an
excellent maiden innings.

In addition to equity exposure, the company's policy allows for investment of up
to 10.0% of its assets in fixed interest securities. Initially, we operated at
quite close to this limit, given the need to generate revenue to pay dividends.
However, such has been the strength of dividend growth from UK equities over the
period that, by 31 March 2006, fixed interest exposure was down to just 3.5% of
total assets. That said, any exposure to fixed interest has been a drag on
performance: the FTSE Government All Stocks index produced a total return of
2.6% over the investment period.

The company also has the power to utilise borrowings, up to a limit of 15% of
net assets, to gear returns. A revolving credit facility has been in place
throughout the period but, for much of that time, did little more than finance
the fixed interest portfolio. Although this benefited the company's revenues, it
was less helpful for relative capital returns, given the significant
outperformance of equities over bonds. At 31 March 2006, gearing stood at 7.1%
of net assets and effective equity exposure was 6.7%.

Discount management

For all that the company has delivered strong NAV per share performance, the
board is conscious that the ultimate measure of investor return is the share
price. Over the period, this has recorded a capital gain of 24.2%, compared with
19.8% for the index. Hence the discount has narrowed from 8.6% on 28 June 2005 -
the first day of trading - to 7.4% on 31 March 2006.

The Board has adopted a discount management policy to seek to stabilise - and,
ultimately, minimise - the discount at which the company's shares trade to their
NAV. This policy involves a combination of ad hoc share buybacks and a specific
measurement period of twelve weeks prior to the company's year-end of 31 March
when, if the discount averages more than 7.5%, shareholders will be offered the
opportunity to redeem their shares, at NAV less applicable costs. In the first
measurement period, the average discount was 7.4% and the company bought back
4,261,967 shares. Earlier in the financial period, a further 1,749,164 shares
had been repurchased, to make a total of 6,011,131, or 5.6% of those originally
issued.

Revenue

The company's investment objective deliberately prioritises rising income in
recognition of shareholders' desire for a high dividend yield - relative to that
of the stockmarket - and growth in that dividend. Revenue return in the first
period has been 3.19p per share, somewhat ahead of the outcome anticipated at
the time of the company's listing. Hence, having declared a first interim
dividend of 1.00p per share, paid on 31 March, the directors now announce a
second payment of 1.85p per share, payable on 30 June to shareholders on the
register on 9 June. This totals 2.85p per share, some 5.6% ahead of the 2.70p
per share that the Board had expressed as its minimum intent at the time of the
company's launch. Adding these payments to the 2.00p per share paid by the `old'
company on reconstruction, shareholders who remained with Securities Trust of
Scotland will have received dividends totalling 4.85p per share in respect of
the period to 31 March 2006, an increase of 3.2% on the 4.70p per share paid by
the `old' company in its last financial period.

The company will pay quarterly dividends in future - normally in September,
December, March and June - and it is the directors' current intention - albeit
this is not a forecast - to pay dividends totalling at least 4.85p per share in
respect of the year to 31 March 2007.

Outlook

Shareholders have benefited from the rise in UK share prices since flotation of
the company.  Looking forward, the continued rise in profits and dividends
expected from the corporate sector should again produce a positive return for
shareholders, albeit at a slower pace than in recent months.

Manager's report


The period under review - from the company's flotation in June 2005 through to
the end of March - has been characterised by the extremely strong performance of
the UK stockmarket. The FTSE All-Share index delivered a total return of 22.7%
over the period, a return far in excess of its long-term trend. The return of
25.7% delivered by the portfolio over the same timeframe exceeded even this
handsome gain. This performance was produced despite the apparent handicap that
holding equities with a higher than average yield (and a weighting in fixed
interest investments of around 10%) might be thought to have imposed.

The strong returns generated by the stockmarket recently have stood in contrast
to the more subdued performance of the UK economy, which grew at a below-trend
rate during 2005. A sharp fall in turnover in the housing market in the spring
of 2005 was a significant factor here, prompting a slowdown in consumer
spending. In consequence, shares in retail stocks have underperformed the
market, although shares in housebuilders did much better - Persimmon (one of the
portfolio's holdings) was able to increase its full year dividend by 13%.
However, the slowdown in the housing market was not the only factor at play -
higher taxes and the impact of an increase in energy prices also constrained
consumer expenditure. Many companies in the retail sector performed poorly in
this environment, but this weakness gave the managers the opportunity to
purchase a holding in Next at an attractive price. Short-term interest rates in
the UK remained relatively stable over the period, with only one change being
made by the Bank of England - a reduction to 4.5% last August.

The divergence between the performance of the UK economy and that of its
stockmarket is less surprising than it might initially seem. UK-listed companies
only derive approximately 35% of their profits (and falling) in this country.
Instead, UK companies are far more exposed to the fortunes of the global
economy.

The rise in share prices over the period reflected not just the strength of
profits growth, but also the translation of these profits into increased
dividend payments. The latter is particularly important for this portfolio, with
its emphasis on companies with the potential for producing strong dividend
growth. Future dividend growth is a key element that the managers look for when
they are assessing whether to buy a holding for the portfolio, in order that the
company is not forced to invest in very high yielding stocks with little
potential for growth in either earnings or dividends.

The managers believe that the aerospace industry continues to offer good
prospects for increased output and profitability. We increased the weighting in
BAE Systems, and the company subsequently announced that it is likely to
announce significant export contracts. Another new holding here was Smiths
Group, which manufactures aerospace electronics, medical systems and sealing
systems. It is also an important supplier of detection equipment to airports.

Consensus estimates are for dividends from the UK stockmarket to grow at over 7%
per annum for the next two years, above the long-term trend rate and reflecting
the strong profitability of the corporate sector.  Many companies within the
portfolio have produced dividend growth well in excess of this rate. The largest
active position within the portfolio is in Scottish and Southern Energy, where
the portfolio position is more than 3% above its FTSE All-Share weighting.
Despite being classified as a utility, it has consistently produced strong
earnings and dividend growth. Similarly, Royal Bank of Scotland increased its
2005 dividend by 25%. The managers have increased the portfolio's weighting in
this stock.

The higher than expected revenue being received from equities is one of the
reasons the managers were able to reduce the portfolio's weighting in fixed
interest investments to below 5%. This was accomplished by selling the majority
of the preference shares that it formerly held. These investments had performed
well in tandem with falling yields on long-dated gilts.

Stocks sold from the portfolio included Electrocomponents and Davis Service
Group, where prospects for dividend growth were limited. The portfolio's
overweight position in the tobacco sector has been reduced through a partial
sale of the holding in Imperial Tobacco, which reflected the slowing growth in
its European businesses. The holding in Lloyds TSB has also been significantly
reduced. Although it still offers a very high yield, the dividend is not growing
and the shares trade on a high rating relative to their peers.

Bids, both rumoured and actual, have been a particularly notable feature of the
UK stockmarket. The portfolio benefited from this bout of M&A activity as its
holdings in Exel, BOC,O2, and Hilton Group all became the subjects of takeovers.
There is a ready supply of finance for takeovers from both the banks and the
bond markets. The increase in stockmarket valuations is, however, beginning to
make it more difficult for private equity funds to complete deals and an
increasing number of companies are now rejecting their approaches.


The very strong returns from the FTSE All-Share Index over the last year have
exceeded growth in profits, and therefore equities are now trading on a higher
valuation than they were at the start of the period. Yet a prospective multiple
of 13x 2006 earnings continues to offer reasonable value. One notable feature of
the UK market has been the continuing outperformance of smaller companies and
the underperformance of some of its largest constituents. This means that some
of the largest companies in sectors such as banks, oil and gas and
telecommunications now trade on lower ratings than the market average and offer
good value to investors. The prospects for economic growth, both in this country
and the rest of the world, are good and it is likely that there will be more
takeover bids in the coming months. However, although share prices continue to
be supported by profit and dividend growth, it is unlikely that returns over the
next twelve months will match those earned over the period just ended.




                                    - ends -

For further information, please contact:

Mike Woodward / Ross Watson   0131 229 5252
Martin Currie Investment
Management Ltd

[e-mail] /
[e-mail]

                        SECURITIES TRUST OF SCOTLAND plc

                            INCOME STATEMENT FOR THE
       PERIOD FROM 15 APRIL 2005 (DATE OF INCORPORATION) TO 31 MARCH 2006


                                                      Unaudited

                                             Revenue    Capital      Total
                                                £000       £000       £000

Net gains on    - realised                         -      6,110      6,110
investments
                - unrealised                       -     20,476     20,476
Currency gains                                     -          6          6
Income          - franked                      3,915        639      4,554
                - unfranked                      223          -        223
Investment management fee                      (158)      (293)      (451)
Other expenses                                 (416)          -      (416)
                                             _______    _______    _______
Net return before finance costs and            3,564     26,938     30,502
taxation

Finance costs   - debt                         (166)      (308)      (474)
                - shareholders' funds        (1,031)          -    (1,031)
                                             _______    _______    _______
Return on ordinary activities before           2,367     26,630     28,997
taxation

Taxation on ordinary activities                    -          -          -
                                             _______    _______    _______
Return attributable to shareholders            2,367     26,630     28,997
                                             _______    _______    _______





Return per ordinary redeemable share           3.19p     25.03p     28.22p


The total column of this statement is the profit and loss account of the
company.
The revenue and capital items are presented in accordance with the AITC SORP.
All revenue and capital items in the above statement derive from continuing
operations.

 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.

The board announces a second interim dividend of 1.85p per share.  The dividend
will be paid on 30 June 2006 to shareholders on the register on 9 June 2006.
This is in addition to the 1.00p interim dividend already paid during the
period.

The financial information contained within this preliminary announcement does
not constitute the company's statutory financial statements as defined in
section 240 of the Companies Act 1985 for the period ended 31 March 2006, but is
derived from those financial statements.  Statutory financial statements for
2006 will be delivered to the Registrar of Companies following the company's
annual general meeting.

The terms of the preliminary announcement were approved by the board on 24 April
2006.

                        SECURITIES TRUST OF SCOTLAND plc

                                  BALANCE SHEET


                                   As at 31 March 2006
                                       (Unaudited)

Fixed assets                            £000       £000
Investments
Listed on the Stock Exchanges in                149,575
the UK

Current assets
Debtors                                4,408
Cash at bank                           3,359
                                     _______
                                       7,767
Creditors
Amounts falling due within one      (15,916)
year
                                     _______
Net current liabilities                         (8,149)

                                                _______
Shareholders' funds                             141,426
(prior to shareholders'
redemption liability)

Creditors
Distributable capital and                     (139,059)
reserves attributable to
shareholders on redemption
                                                _______
                                                  2,367
                                                _______


Undistributable capital and
reserves
Revenue reserve                                   2,367
                                                _______


Net asset value per ordinary                    138.48p
share
(prior to shareholders'
redemption liability)

AITC net asset value per ordinary               135.55p
share








                        SECURITIES TRUST OF SCOTLAND plc

                             STATEMENT OF CASH FLOW


                                            Period from 15
                                              April 2005
                                               (date of
                                           incorporation) to
                                             31 March 2006
                                              (Unaudited)
                                               £000      £000

Operating activities
Net dividends and interest received from      3,749
investments
Interest received from deposits                  55
Investment management fee                     (299)
Cash paid to and on behalf of directors        (58)
Bank charges                                    (4)
Other cash payments                           (193)
                                            _______
Net cash inflow from operating                          3,250
activities

Servicing of finance
Finance  - debt                               (435)
costs
         - equity                           (1,031)
                                            _______
Net cash outflow from servicing of                    (1,466)
finance

Capital expenditure and financial
investment
Payments to acquire investments           (159,189)
Receipts from disposal of investments        38,335
                                            _______
Net cash outflow from investing                      (120,854
activities                                                  )

                                                      _______

Net cash outflow before use of liquid                (119,070
resources and financing                                     )

Financing
Issue of ordinary share capital             119,518
Repurchase of ordinary share capital        (7,089)
Movement in short-term borrowings            10,000
                                            _______
Net cash inflow from financing                        122,429

                                                      _______
Increase in cash for the period                         3,359
                                                      _______






Note

New accounting standards

The financial statements have been prepared in accordance with UK Generally
Accepted Accounting Practice (UK GAAP) and have included the early adoption of
the Statement of Recommended Practice for Financial Statements of Investment
Trust Companies, issued in 2005.  The statements have incorporated the
requirements of FRS 21 "Events after the Balance Sheet Date", FRS 25 "Financial
Instruments: Disclosure and Presentation", FRS 26 "Financial Instruments:
Measurement".  The impact of these new standards on the financial statements is
detailed below:


  Under previous UK GAAP, dividends were reported in the
  financial period to which they related.  FRS21 requires
  that they are accounted as a liability in the period in
  which they are approved.

  Under FRS 25, the ordinary share capital of the company
  is classified as a liability rather than equity.  This
  classification arises from the company's prospectus,
  which allows shareholders to redeem their shares if the
  average discount exceeds 7.5% over the twelve week
  period before the financial year end.   Accordingly, a
  long-term liability for net assets attributable to
  shareholders on redemption has been recognised.

  In relation to FRS26, the company's investments are
  classified as "financial assets at fair value through
  profit or loss" and are therefore valued at bid price.
  Under previous UK GAAP, investments were valued at
  middle market price.



Under previous UK GAAP the revenue column of the Statement of Total Return was
deemed to be the profit and loss account of the company.  An Income Statement is
now disclosed.  The total column of this statement is now regarded as the profit
and loss account of the company.