Final Results

Merrill Lynch UK Inv Tst PLC
11 November 2002


                                                                11 November 2002


                     MERRILL LYNCH UK INVESTMENT TRUST plc


                      PRELIMINARY ANNOUNCEMENT OF RESULTS
                 in respect of the year ended 30 September 2002


•      The directors propose a final dividend of 17.0p (net) per ordinary share (2001: 20.0p), making a total
       ordinary dividend payment for the year of 25.5p (net) per ordinary share (2001: 30.0p).

•      Net Asset Value per share ('NAV') has fallen by 26.2% (with net income reinvested) to 585.59p, compared
       with a 20.8% fall in the FTSE All-Share Index.

•      The effective level of gearing was reduced from 26.8% at the beginning of the year to around 15% from
       June 2002.  Nevertheless, performance was affected by the high level of long term borrowing; 3.9% of the
       5.4% under-performance was attributable to gearing.

•      Share price down 34.5% to 455.00p (with net income reinvested).




Contacts:          Ian Barby
                   Managing Director, Investment Trusts              020 7743 5224


                   Nigel Webb, Public Relations
                   Merrill Lynch Investment Managers                 020 7743 5938


                   William Clutterbuck
                   The Maitland Consultancy                          020 7379 5151




The Chairman, Mr Richard Oldfield, commented:



'The unreliability of most forecasts has been well illustrated in the last two
years: no-one, neither optimist nor pessimist, could have predicted that the US
economy would have a recession in the first nine months of 2001 and then, after
a calamitous terrorist event, show growth thereafter.  We are therefore
reluctant to try to make forecasts.  There are certainly many dark clouds,
economic and political.  But markets often do a very good job of discounting
such difficulties.  It is a truism that the point at which a bear market ends is
the moment of maximum gloom.  We cannot safely say that we have reached that
point, but the level of valuations of many UK companies - low price-earnings
ratios and dividend yields higher than bond or cash yields - is attractive and
increases the probability of satisfactory returns in the future.



'The last two years have been very bad for our shareholders.  Nothing is
certain, but our feeling is that the Company will do much better for
shareholders, in terms both of rising net asset value and a narrowing of the
share price discount to that net asset value, over the next two or three years.'



Commenting on the outlook, Merrill Lynch Investment Managers Limited, noted:



'The UK market offers good value in some areas, both relative to historic
measures and to other asset classes such as bonds. Meanwhile the UK economy
continues to be supported by low interest rates and unemployment as well as
strong consumer confidence. However the outlook for the global economy remains
uncertain, with recent data suggesting continuing weakness. This is likely to
continue to put pressure on corporate earnings, while concerns over the
potential for war in the Middle East and further corporate scandals are still
likely to affect investors' risk appetites. This would suggest that defensive
shares may continue to perform well over the next year. The fund will continue
to follow the approach of looking for investment opportunities amongst high
quality companies, with good cash generation characteristics, strong management
and a high degree of earnings visibility.'







CONSOLIDATED REVENUE ACCOUNT
for the year ended 30 September 2002


                                                                       Year ended                   Year ended
                                                                     30 September                 30 September
                                                                             2002                         2001
                                                                            £'000                        £'000
                                                                        (audited)                    (audited)

Income (Note 4)                                                             3,786                        4,043
Investment management fees (Note 5)                                         (179)                        (233)
Operating expenses                                                          (187)                        (246)

Net return before finance costs and taxation                                3,420                        3,564


Finance costs                                                               (761)                        (761)

Return from ordinary activities
  before taxation                                                           2,659                        2,803

Taxation on ordinary activities                                                 -                         (65)

Return on ordinary activities after taxation                                2,659                        2,738

Dividends in respect of non-equity shares                                    (12)                         (12)


Revenue attributable to equity shareholders                                 2,647                        2,726


Dividends in respect of equity shares (Note 3)                            (3,420)                      (4,228)

Transfer from reserve                                                       (773)                      (1,502)






TOTAL RETURN PER ORDINARY SHARE
for the year ended 30 September 2002


                                                    2002             2002              2001                2001
                                                (audited         (audited          (audited            (audited
                                               weighted)          actual)         weighted)             actual)

Earnings per ordinary share                       19.39p           19.80p            19.33p              19.34p
Capital return per share                       (229.42p)        (234.28p)         (368.54p)           (368.76p)

Total Return per ordinary share                (210.03p)        (214.48p)         (349.21p)           (349.42p)
                                              

Dividends per ordinary share                      25.50p           25.50p            30.00p              30.00p






SUMMARISED CONSOLIDATED BALANCE SHEET
as at 30 September 2002


                                                                  30 September               30 September
                                                                          2002                       2001
                                                                         £'000                      £'000
                                                                     (audited)                  (audited)
Fixed assets
Listed investments at market valuation                                  90,486                    148,573
Unlisted investments at directors' valuation                                83                         89

                                                                        90,569                    148,662

Current assets
Debtors                                                                    526                      5,248
Cash and cash funds                                                     30,230                      7,905

                                                                        30,756                     13,153

Creditors: amounts falling due within one
  year                                                                 (3,249)                    (6,282)

Net current assets                                                      27,507                      6,871

Total assets less current liabilities                                  118,076                    155,533

Creditors: amounts falling due after one
  year                                                                (39,540)                   (39,518)

Net assets                                                              78,536                    116,015

Capital and reserves
Called-up share capital                                                  6,935                      7,297
Share premium                                                            1,258                      1,258
Other capital reserves                                                  66,961                    103,305
Revenue reserve                                                          3,382                      4,155

Total shareholders' funds                                               78,536                    116,015

Total shareholders' funds are
  attributable to:
Equity shareholders                                                     78,286                    115,765
Non-equity shareholders                                                    250                        250

                                                                        78,536                    116,015

Net asset value per ordinary share                                     585.59p                    821.40p







CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 September 2002


                                                                     Year ended                  Year ended
                                                                   30 September                30 September
                                                                           2002                        2001
                                                                          £'000                       £'000
                                                                      (audited)                   (audited)

Net cash flow from operating activities                                   2,946                       2,928
Net cash outflow from servicing of finance                              (2,985)                     (3,034)
Purchase of fixed asset investments                                    (83,602)                   (258,371)
Proceeds from the sale of fixed asset
  investments                                                           115,318                     265,990
Equity dividends paid                                                   (3,966)                     (4,228)
Purchase of ordinary shares                                             (5,386)                       (871)

Increase in cash                                                         22,325                       2,414








RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW
FROM OPERATING ACTIVITIES


                                                                    30 September               30 September
                                                                            2002                       2001
                                                                           £'000                      £'000
                                                                       (audited)                  (audited)

Net return before finance costs and taxation                               3,420                      3,564
Investment management and performance
  fees capitalised                                                         (534)                      (690)
Net purchases of investments by subsidiary
  undertaking                                                                  -                      (248)
Decrease in accrued income                                                   154                        377
Decrease in creditors                                                       (94)                      (446)
Tax on investment income included within
  gross income                                                                 -                       (17)
Loss on investment dealing by
  subsidiary undertaking                                                       -                        388
Net cash flow from operating activities                                    2,946                      2,928





Notes

1.     Principal activity

       The principal activity of the Company is that of an investment trust within the meaning of section
       842 of the Income and Corporation Taxes Act 1988.

2.     Basis of preparation

       The preliminary financial statements have been prepared under the historical cost convention,
       modified to include the revaluation of investments, and are in accordance with section 230 of, and
       schedule 4 to, the Companies Act 1985 and with applicable accounting standards and the Statement of
       Recommended Practice 'Financial Statements of Investment Trust Companies' ('SORP'), except for the
       treatment of the management fee, as detailed in the Annual Report.

3.     Dividend

       The preliminary results were approved by the Board on 11 November 2002. The Directors will
       recommend to shareholders at the Annual General Meeting to be held on 16 December 2002 a final
       dividend of 17.0p (2001: 20.0p) per ordinary share to be paid on 20 December 2002 to ordinary
       shareholders on the register of members at the close of business on

       22 November 2002.  The final dividend cost has been based on the number of shares in issue on 8
       November 2002.

4.     Income
                                                                               2002                   2001

                                                                              £'000                  £'000
       Income from investments:
       Dividends:
       - UK listed                                                            3,103                  4,103
       - Overseas listed                                                          2                     73
       Interest bearing:
       - UK listed                                                                9                     69
                                                                              3,114                  4,245

       Interest receivable and other income:
       Deposit and cash fund interest                                           672                    186
       Loss on investment dealing by
          subsidiary undertaking                                                  -                  (388)
                                                                                672                  (202)
       Total income                                                           3,786                  4,043




5.   Investment management fee

                                       Revenue                 Capital                  Total
                                      2002        2001        2002        2001        2002        2001
                                     £'000       £'000       £'000       £'000       £'000       £'000

Investment
  management fee                       151         198         452         595         603         793
Performance related
  fee on unlisted
  portfolio                              1           -           3         (9)           4         (9)
Total irrecoverable
  VAT  thereon                          27          35          79         104         106         139

                                       179         233         534         690         713         923


6.    Gearing ratios as a percentage of the equity shareholders' funds

                                                                                     30 September 2002

      Total borrowings                                                                           50.0%
      Net borrowings (i.e. effective gearing)                                                    14.6%


7.     Publication of non-statutory accounts

       The financial information contained in this announcement does not constitute statutory accounts within
       the meaning of section 240 of the Companies Act 1985.  The annual report and financial statements for
       the year ended 30 September 2002 will be filed with the Registrar of Companies in due course.

       The figures set out above have been reported upon with no qualification by the auditors.  The
       comparative figures are extracts from the audited financial statements of Merrill Lynch UK Investment
       Trust plc for the year ended 30 September 2001, which have been filed with the Registrar of Companies.
       The report of the auditors on those accounts contained no qualification or statement under section 237
       of the Companies Act.

8.     Copies of the annual report will be sent to members shortly and will be available from the registered
       office, c/o the Company Secretary, Merrill Lynch UK Investment Trust plc, 33 King William Street,
       London EC4R 9AS.  This report will also be available on the Merrill Lynch Investment Managers website
       at www.mlim.co.uk/its

9.     The Annual General Meeting of the Company will be held at 33 King William Street, London EC4 on
       Monday, 16 December 2002 at 11.00am.

33 King William Street
London EC4R 9AS


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