Interim Results

Mercury Grosvenor Trust PLC
13 August 2002


                                            13 August 2002


                          MERCURY GROSVENOR TRUST plc

             Interim Results for the six months ended 30 June 2002


-     The net asset value per share dropped 4.2% in the six months to 30 June 2002 from 380.3p to 364.4p.  The
      FTSE All-Share Index fell by 8.9% and the FTSE SmallCap Index by 10.4% in the same period.

-     Earnings per share of 4.2p compared with 6.9p for the corresponding period last year.

-     Follow-on funding amounted to £3.2 million.

-     Since the period-end, the Company has invested £3.7 million in the management buy-in of Castlebeck, a
      care homes business.

-     Realisations yielded £18.1 million.

-     Gilt and cash balances amounted to £33.2 million at 30 June 2002.




The Chairman, David Bucks, comments:


'Equity markets have seen continuing volatility during the period under review. After a time of positive economic news
during the first quarter in 2002, a more mixed picture has developed culminating in the decline in investor confidence
in corporate accounting and governance following irregularities exposed in a number of major world-wide companies.
Market uncertainty is likely to continue for, and possibly beyond, the balance of the second half year.


'During the six months to 30 June 2002, the net asset value per share fell by 4.2% from 380.3p to 364.4p.  This
performance compares with a fall in the FTSE All-Share Index of 8.9% and a decrease of 10.4% in the FTSE SmallCap
Index, both in capital-only terms.


'Earnings per share were 4.2p, compared with 6.9p in the same period of 2001, last year's higher figure being due to
the receipt, on listing of Patientline, of interest on its loan stock, a non-recurring item.


'The Company committed £3.2 million to new and follow-on investments and realisations yielded £18.1 million in the half
year.  Gilt and cash balances amounted to £33.2 million at
30 June 2002.  These reflect the Manager's current cautious attitude to the pricing of new investments, which the Board
fully supports.


'I referred in my last Statement to possible changes to the management contract.  Discussions with HgCapital to that
end are continuing.'






Commenting on the outlook for the Company, Ian Armitage of HgCapital, the Fund

Manager, notes:


'The volatility of the capital markets during 2001 has continued into 2002, compounded by weak earnings prospects and
recent corporate governance and accounting scandals.  The impact of these scandals on the business environment will be
equally profound.  As a consequence, our ability to realise investments has been restricted as markets contract and
potential acquirers divert their attention to running their core business activities. Notwithstanding these challenges,
we have had a notable success with the sale of PII Group to GE Power Systems, which yielded a fourfold return.


'Whilst we have generated a healthy increase in the flow of investment opportunities, we did not make any new
investments in unquoted companies.  This can be attributed to our reluctance to agree prices with vendors that we
believed did not reflect current market conditions and prospects for the companies concerned.  Indeed, in the first
half of the year, we withdrew from two sizeable buy-out transactions following completion of our due diligence
exercises.  We will stay patient and restrained in our negotiations.  Our expectation remains that vendors will
eventually adjust their views on the valuations of companies.  The pressure to change will come from unreceptive stock
markets, dissatisfied investors and tighter credit conditions.


'The trading environment for some of the companies within the portfolio will continue to be tough, but increases in
Government spending and a weaker pound should directly benefit others.  In particular, the 2002 Budget announcement of
the biggest-ever sustained growth in NHS expenditure will eventually provide significant opportunities for private
sector healthcare suppliers, including several companies within the portfolio.  However, we do not believe that the
effect will be instant or entirely predictable.


'Against this background, we have taken a prudent view with regard to the valuation of a number of investments within
the portfolio.  Those companies that have been adversely affected have tended to suffer from customers postponing
buying decisions, a phenomenon that is particularly acute in the technology sector.  In the short term, we do not
expect the economic environment to improve and the focus of our efforts is to exploit the turbulence and uncertainty
that exists by finding investments that offer good long-term value.'






For further information please contact:



Ian Armitage - Chief Executive, HgCapital

Tel: [phone]



Nigel Webb - Corporate Communications, Merrill Lynch Investment Managers

Tel: [phone]



Trevor Phillips - Holborn Public Relations

Tel: [phone]




REVENUE STATEMENT

for the six months ended 30 June 2002


                                                           Six months          Six months                 Year
                                                                ended               ended                ended
                                                              30 June             30 June          31 December
                                                                 2002                2001                 2001
                                                                £'000               £'000                £'000
                                                 Note     (unaudited)         (unaudited)            (audited)

Income                                              5           1,852               2,885                3,893
Investment management fee                           6            (206)               (233)                (449)
Other expenses                                      7            (174)               (162)                (329)

Net return before finance costs and taxation                    1,472               2,490                3,115

Interest payable and similar charges                              (11)                (11)                 (22)

Return on ordinary activities before taxation                   1,461               2,479                3,093

Taxation on ordinary activities                                  (398)               (741)                (673)

Return on ordinary activities after taxation                    1,063               1,738                2,420

Dividend in respect of equity shares                3               -                   -               (2,015)

Transfer to reserves                                            1,063               1,738                  405


Return per ordinary share

Calculated on weighted average shares                           4.22p               6.90p                9.61p
Calculated on actual shares                                     4.22p               6.90p                9.61p

Dividend per ordinary share                                         -                   -                8.00p





STATEMENT OF TOTAL RETURN PER ORDINARY SHARE


                                                             Six months         Six months                  Year
                                                                  ended              ended                 ended
                                                                30 June            30 June           31 December
                                                                   2002               2001                  2001
                                                            (unaudited)        (unaudited)             (audited)

Earnings per ordinary share                                      4.22p               6.90p                 9.61p
Capital return per ordinary share                              (20.20p)             (7.67p)              (32.28p)

Total return per ordinary share                                (15.98p)             (0.77p)              (22.67p)





BALANCE SHEET
as at 30 June 2002


                                                                 30 June             30 June        31 December
                                                                    2002                2001               2001
                                                                   £'000               £'000              £'000
                                                             (unaudited)         (unaudited)          (audited)

Fixed assets
Investments at valuation                                          55,603              72,621             75,208

Current assets
Debtors                                                            3,531               4,616              4,371
Government securities                                             33,135              25,090             18,548
Cash                                                                 108               1,905                313

                                                                  36,774              31,611             23,232

Creditors - amounts falling due within one year                     (607)               (904)            (2,645)

Net current assets                                                36,167              30,707             20,587

Net assets                                                        91,770             103,328             95,795

Capital and reserves
Called up share capital                                            6,296               6,296              6,296
Share premium account                                             14,123              14,123             14,123
Capital reserves
  Capital redemption reserve                                       1,248               1,248              1,248
  Capital reserve - realised                                      80,599              68,769             68,723
  Capital reserve - unrealised                                   (14,576)              8,542              2,388
Revenue reserve                                                    4,080               4,350              3,017

Total equity shareholders' funds                                  91,770             103,328             95,795

Net asset value per ordinary share                                364.4p              410.2p             380.3p





CASH FLOW STATEMENT

for the six months to 30 June 2002


                                                            Six months          Six months                  Year
                                                                 ended               ended                 ended
                                                               30 June             30 June           31 December
                                                                  2002                2001                  2001
                                                                 £'000               £'000                 £'000
                                                           (unaudited)         (unaudited)             (audited)

Net cash flow from operating activities                          1,821               1,557                 2,043

Returns on investment and servicing of finance                       9                  93                   104

Taxation received/(paid)                                            82                (186)                 (493)

Capital expenditure and financial investment
  Purchase of fixed asset investments                           (3,212)            (10,900)              (22,696)
  Proceeds from the sale of fixed asset investments             18,069              15,715                19,470

Equity dividends paid                                           (2,015)             (3,652)               (3,652)

Financing                                                      (14,959)             (9,761)               (3,502)

Decrease in cash                                                  (205)             (7,134)               (8,726)





Reconciliation of net return before finance costs and taxation to net cash flow from operating activities


                                                            Six months          Six months                  Year
                                                                 ended               ended                 ended
                                                               30 June             30 June           31 December
                                                                  2002                2001                  2001
                                                                 £'000               £'000                 £'000
                                                           (unaudited)         (unaudited)             (audited)

Net return before finance costs and taxation                     1,472               2,490                 3,115

Investment management fee and finance costs
  capitalised                                                     (651)               (731)               (1,412)
  

Interest receivable                                                 (9)                (93)                 (104)

Decrease in accrued income                                       1,027                 214                   687

(Decrease)/increase in creditors                                   (24)                  6                   (67)

Effective yield adjustment                                         486                 174                   462

Tax on investment income included within gross
  income                                                          (480)
                                                                                      (503)                 (638)

Net cash flow from operating activities                          1,821               1,557                 2,043





NOTES TO THE INTERIM ANNOUNCEMENT


1.     Principal activity


       The principal activity of the Company is that of an investment company within the meaning of section
       266 of the Companies Act 1985.


2.     Basis of preparation


       The interim financial statements have been prepared on the basis of the accounting policies set out in
       the Company's financial statements at 31 December 2001.  Income and operating expenses have been
       recognised in accordance with the same principles used in the preparation of the annual financial
       statements. The taxation charge has been calculated by applying an estimate of the annual effective tax
       rate to the profit for the period.


3.     Dividend


       It is intended that dividends will be declared and paid annually in respect of each accounting period.
       A dividend of 8.00p per share, declared as a final dividend, was paid on 23 April 2002 in respect of
       the year ended 31 December 2001.


4.     Issued share capital


       There were 25,186,755 ordinary shares in issue for the six months to 30 June 2002
       (31 December 2001: 25,186,755).


5.      Income


                                                            Six months          Six months                Year
                                                                 ended               ended               ended
                                                               30 June             30 June         31 December
                                                                  2002                2001                2001
                                                                 £'000               £'000               £'000
                                                           (unaudited)         (unaudited)           (audited)

  Income from investments:
  UK dividends                                                     128                  10                 205
  UK unfranked investment income                                 1,235               2,355               2,622
  Overseas dividends                                                14                   -                   6

                                                                 1,377               2,365               2,833

  Other income:
  Gilt interest                                                    465                 426                 954
  Deposit interest                                                   9                  93                 104
  Other fees                                                         1                   1                   2

                                                                   475                 520               1,060

  Total income                                                   1,852               2,885               3,893



6.     Investment management fee


                                              Revenue                                 Capital

                               Six months   Six months        Year        Six months  Six months        Year
                                    ended        ended       ended             ended       ended       ended
                                 30.06.02     30.06.01    31.12.01          30.06.02    30.06.01    31.12.01
                                    £'000        £'000       £'000             £'000       £'000       £'000
                              (unaudited)  (unaudited)   (audited)       (unaudited) (unaudited)   (audited)

Investment   management
fee                                   175          198         382            526           594       1,146
Irrecoverable VAT
thereon                                31           35          67             93           105         200

                                      206          233         449            619           699       1,346





7.     Other expenses


                                                              Six months           Six months                Year
                                                                   ended                ended               ended
                                                                 30 June              30 June         31 December
                                                                    2002                 2001                2001
                                                                   £'000                £'000               £'000
                                                             (unaudited)          (unaudited)           (audited)

Custodian and administration fees                                     60                   63                 126
Other administration costs                                           114                   99                 203

                                                                     174                  162                 329



8.     Capital commitments


       As at 30 June 2002 the Company was committed to further investments of £5,349,000
       (31 December 2001: £6,262,000).


9.     Publication of non-statutory accounts


       The financial information contained in this interim report does not constitute statutory accounts as
       defined in section 240 of the Companies Act 1985.  The financial information for the six months
       ended 30 June 2001 and 2002 has not been audited.



       The information for the year ended 31 December 2001 has been extracted from the latest published
       audited financial statements, which have been filed with the Registrar of Companies.  The report of
       the auditors on those accounts contained no qualification or statement under sections 237(2) or (3)
       of the Companies Act 1985.


10.    Annual results


       The Board expects to announce the results for the year ending 31 December 2002 at the end of
       February 2003; copies of the preliminary announcement can be obtained from the Secretary on 020 7743
       3000.  The annual report should be available by mid-March 2003, with the Annual General Meeting
       being held in mid-April 2003.



33 King William Street

London

EC4R 9AS



13 August 2002



KR/ms/grosvenor/interim/intann-jun  2002




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