To: Stock Exchange For immediate release:
29 October 2003
Securities Trust of Scotland plc
Interim results for the period to 30 September 2003
Chairman's statement
It's very pleasant to be able to report an increase in the company's net
asset value for the first time since 2000. The Company's net asset value
per ordinary share rose by 17.5% in total return terms; the benchmark
FTSE All-Share index rose by 19.0%. As you are aware, only 85% of the
company's assets are in equities, with the balance in bonds or cash.
Because our equity portfolio needs to produce a certain level of income,
the market's rotation into low-yielding high return stocks has been hard
to replicate. As a result, the equities have tended to lag the recovery.
However, our decision to maintain a 20% geared exposure to equities has
more than compensated. Although our bond content has outperformed the FT
Government All Stocks Index, bonds have lagged equities significantly as
yields have risen globally. The share price total return, which
incorporates net dividends as well as the movement in the share price,
rose by 20.9% - nearly 2% ahead of the benchmark. This was due partly to
the narrowing of the discount from 12.1% to 11.7%.
The board has declared a maintained interim dividend of 1.27p per share,
payable on 19 December 2003 to shareholders on the register on 28
November 2003. Any increase in the full-year dividend will be made with
the final dividend payment.
While investor confidence has improved in response to the significant
monetary and fiscal stimuli of the last two years, markets will struggle
to maintain the level of momentum that has been built up over the
summer.
- ends -
For further information, please contact:
Tom Maxwell or Michael Woodward
Martin Currie Investment Management Ltd 0131 229 5252
tmaxwell@martincurrie.com / mwoodward@martincurrie.com
SECURITIES TRUST OF SCOTLAND plc
Statement of total return (incorporating the revenue account) for the
six months ended 30 September 2003
Unaudited
Revenue Capital Total
�'000 �'000 �'000
Gains on investments - realised - 16,192 16,192
- unrealised - 26,576 26,576
Currency losses - (113) (113)
Income - franked 8,803 - 8,803
- unfranked 1,043 - 1,043
Investment management fee (309) (720) (1,029)
Other expenses (300) (14) (314)
________ _______ ________
Net return before finance costs and
taxation 9,237 41,921 51,158
Interest payable and similar charges (1,470) (3,430) (4,900)
________ _______ ________
Return on ordinary activities before
taxation 7,767 38,491 46,258
Taxation on ordinary activities (74) - (74)
________ _______ ________
Return on ordinary activities after
taxation 7,693 38,491 46,184
Dividends in respect of equity
shares: 1.27p per share (3,963) - (3,963)
________ _______ ________
Transfer to reserves 3,730 38,491 42,221
Returns per ordinary share 2.47p 12.33p 14.80p
________ _______ ________
The revenue columns of this statement are the profit and loss account 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.
The directors have declared an interim dividend on the ordinary share of
the company for the year ending 31 March 2004 of 1.27p per share (2003:
1.27p), with an ex dividend date of 26 November 2003 to be paid on 19
December 2003 to shareholders on the register on 28 November 2003.
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 2002
Unaudited
Revenue Capital Total
�'000 �'000 �'000
Losses on investments - realised - (19,165) (19,165)
- unrealised - (109,528) (109,5258)
Currency losses - - -
Income - franked 8,667 - 8,667
- unfranked 664 - 664
Investment management fee (361) (842) (1,203)
Other expenses (292) (14) (306)
_______ _______ _______
Net return before finance costs and
taxation 8,678 (129,549) (120,871)
Interest payable and similar charges (1,470) (3,430) (4,900)
_______ _______ _______
Return on ordinary activities before
taxation 7,208 (132,979) (125,771)
Taxation on ordinary activities (68) 68 -
_______ _______ _______
Return on ordinary activities after
taxation 7,140 (132,911) (125,771)
Dividends in respect of equity
shares: 1.27 p per share (3,963) - (3,963)
_______ _______ _______
Transfer to/(from) reserves 3,177 (132,911) (129,734)
_______ _______ _______
Returns per ordinary share 2.29p (42.60p) (40.31p)
_______ _______ _______
The revenue columns of this statement are the profit and loss account 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 2003
Audited
Revenue Capital Total
�'000 �'000 �'000
Losses on investments- realised - (26,003) (26,003)
- unrealised - (110,737) (110,737)
Currency losses - - -
Income - franked 16,864 - 16,864
- unfranked 1,371 - 1,371
Investment management fee (692) (1,615) (2,307)
Other expenses (661) (46) (707)
_______ _______ _______
Net return before finance costs and
taxation 16,882 (138,401) (121,519)
Interest payable and similar charges (2,937) (6,853) (9,790)
_______ _______ _______
Return on ordinary activities before
taxation 13,945 (145,254) (131,309)
Taxation on ordinary activities - - -
_______ _______ _______
Return on ordinary activities after
taxation 13,945 (145,254) (131,309)
Dividends in respect of equity
shares: 4.52p per share (14,103) - (14,103)
_______ _______ _______
Transfer from reserves (158) (145,254) (145,412)
_______ _______ _______
Returns per ordinary share 4.47p (46.55p) (42.08p)
_______ _______ _______
The revenue columns of this statement are the profit and loss account 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
Unaudited Unaudited Audited
As at As at As at
30 September 2003 30 September 2002 31 March 2003
�000 �000 �000 �000 �000 �000
Investments at market value 419,876 378,603 364,551
Current assets
Debtors 3,212 12,989 6,195
Cash at bank 12,343 17,231 28,358
_______ _______ _______
15,555 30,220 34,850
Creditors
Amounts falling due
within one year (5,732) (5,707) (11,943)
_______ _______ _______
Net current assets 9,823 24,513 22,907
_______ _______ _______
Total assets less
current liabilities 429,699 403,116 387,458
Creditors
Amounts falling due
after one year (123,902) (123,862) (123,882)
_______ _______ _______
Net assets 305,797 279,254 263,576
_______ _______ _______
Capital and reserves
Called up ordinary capital 78,006 78,006 78,006
Capital redemption reserve 2,074 2,074 2,074
Capital reserve 214,022 187,874 175,531
Revenue reserve 11,695 11,300 7,965
_______ _______ _______
Total shareholders' funds 305,797 279,254 263,576
_______ _______ _______
Net asset value per share 98.00p 89.50p 84.47p
SECURITIES TRUST OF SCOTLAND plc
STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
30 September 2003 30 September 2002 31 March 2003
�000 �000 �000 �000 �000 �000
Operating activities
Net dividends and interest received from
investments 11,038 10,685 17,493
Interest received from deposits 479 438 858
Investment management fee (1,029) (1,203) (2,307)
Cash paid to and on behalf of directors (39) (41) (83)
Bank charges paid (9) (20) (30)
Other cash payments (306) (283) (575)
_______ _______ _______
Net cash inflow from operating activities 10,1347 9,576 15,356
Servicing of finance
Interest paid (4,910) (4,899) (9,779)
_______ _______ _______
Net cash outflow from servicing of finance (4,910) (4,899) (9,779)
Taxation
Taxation paid (74) - -
Taxation recovered 22 62 43
_______ _______ _______
Net cash (outflow) / inflow from taxation (52) 62 43
Capital expenditure and
financial investment
Payments to acquire investments (74,380) (22,735) (44,225)
Receipts from disposal of investments 63,446 23,874 59,573
Exchange losses (113) - -
_______ _______ _______
Net cash (outflow) / inflow from capital
expenditure and financial investment (11,047) 1,139 15,348
Equity dividends paid (10,140) (9,892) (13,855)
_______ _______ _______
(Decrease)/increase in cash for the year (16,015) (4,014) 7,113
_______ _______ _______