Final Results

Manchester & London Inv Tst PLC
1 October 2001


ANNOUNCEMENT OF THE AUDITED GROUP RESULTS

The Directors Announce the Audited Figures 
For the year ended 31st July 2001

Consolidated Statement of Total Return (incorporating the revenue account)
                                        
                                     2001                     2000
                            Revenue   Capital  Total   Revenue   Capital   Total
                            £'000     £'000    £'000   £'000     £'000     £'000

Losses on investments            -   (4,299)  (4,299)        -     (132)   (132)
Negative goodwill realised       -      339      339         -        -       -
Income (note 1)                801        -      801       442        -     442 
Investment management fee      (61)    (113)    (174)      (55)    (101)   (156)
Other expenses                (201)       -     (201)     (133)       -    (133)

Net return before finance 
costs                          539   (4,073)  (3,534)      254     (233)     21

Interest payable and similar 
 charges                       (10)     (19)     (29)      (11)     (20)    (31)

Return on ordinary activities  529   (4,092)  (3,563)      243     (253)    (10)

Dividends in respect of 
 non-equity shares             (57)       -      (57)      (57)       -     (57)

Return attributable to 
equity shareholders            472   (4,092)  (3,620)      186     (253)    (67)

Dividends in respect of 
 equity shares                (187)       -     (187)     (150)       -    (150)

Transfer to (from) reserves    285   (4,092)  (3,807)       36     (253)   (217)
                                
Return per ordinary share 
(pence) 

Basic                          6.29  (54.56)  (48.27)     2.48    (3.37)  (0.89)

Fully diluted                  5.05  (39.05)  (34.00)     2.32    (2.41)  (0.09)

All revenue and capital items in the above statement derive from continuing 
operations.

Non-equity dividends
  Dividends per preference share accrue at the rate of 7.6% p.a. 

Equity dividends
  Interim dividend paid per each 25p ordinary share 0.6p   (2000 - 0.5p) 
  Final dividend proposed per each 25p ordinary share 1.9p (2000 - 1.50p)

The ordinary dividend is payable on 27th November 2001 to shareholders on the 
Register at the close of business on 12th October 2001.

                                  - 1 -


Consolidated Balance Sheet
As at 31st July 2001
                                                 2001               2000
                                           £'000      £'000   £'000      £'000

Fixed Assets  
  Investments                                        19,261             26,480

Current Assets
  Debtors                                    865                120
  Cash and short term deposits             9,931              1,750
                                          10,796              1,870

Creditors
Amounts falling due within one year         (532)              (431)

Net Current Assets                                   10,264              1,439

Total assets less current liabilities                29,525             27,919

Creditors
Amounts falling due after more than one year         (5,413)                 -

Net Assets                                           24,112             27,919

Capital and Reserves
Called-up Share Capital                               2,619              2,619 
Other reserves
  Capital reserve - realised                         16,313             19,535
  Capital reserve - unrealised                        2,828              3,698
  Goodwill reserve                                      (79)               (79)
Revenue reserve                                       2,431              2,146

Total shareholders' funds                            24,112             27,919

Equity interests - Ordinary shares                   23,368             27,175
Non-equity interests - Preference shares                744                744
                                                     24,112             27,919
Net Asset Value per share 
Ordinary shares - basic                               311.6p             362.3p

Ordinary shares - fully diluted                       230.1p             266.5p

                                  - 2 -

Consolidated Cashflow Statement
For the year ended 31st July 2001

                                                 2001               2000
                                           £'000      £'000   £'000      £'000
Operating activities
Net dividends and interests received from
investments                                  878                388
Other income                                 100                 59
Investment management fees paid             (173)              (140)
Other cash payments                           56               (160)

Net cash inflow from operating activities               861                147

Servicing of finance
Interest paid                                (30)                (44)
Preference dividend paid                     (57)                (57)

Net cash outflow from servicing of finance              (87)              (101)

Taxation
UK taxes repaid                                           -                261

Financial investment
Purchase of investments                   (9,401)             (6,037)
Sale of investments                       23,772              10,117

Net cash inflow from financial investment            14,371              4,080

Acquisitions and disposals
Acquisition of Galleon Securities Limited 
Costs of acquisition                        (258)
Net overdraft acquired with subsidiary      (481)                  -
Repayment of loan from holding company    (5,830)                  -

Net cash outflow from acquisitions and disposals     (6,569)                 -

Equity dividends paid                                  (157)              (113)

Increase in cash                                      8,419             4,274

Reconciliation of net cash flow to 
 movement in net funds (debt)
Increase in cash in year                              8,419             4,274
Net funds (debt) at beginning of year                 1,512            (2,762)

Net funds at end of year                              9,931             1,512

                                  - 3- 

Statutory Consolidated Profit and Loss Account
For the year ended 31st July 2001
                                                        2001             2000
                                          Note         £'000            £'000

(Loss) profit on disposal of investments              (3,429)           1,064
Negative goodwill realised                               339                -
Income                                      1            801              442
Management fee                                          (174)            (156)
Other expenses                                          (201)            (133)

(Loss) profit before interest and taxation            (2,664)           1,217

Interest payable and similar charges                     (29)             (31)

(Loss) profit on ordinary activities before taxation  (2,693)           1,186

Taxation on ordinary activities                            -                -

(Loss) profit on ordinary activities after taxation   (2,693)           1,186

Dividend in respect of non-equity shares                 (57)             (57)

Return attributable to equity shareholders            (2,750)           1,129

Dividend in respect of equity shares                    (187)            (150)

Retained (loss) profit                                (2,937)             979

Transfer (from) to capital reserve                    (3,222)             943

Amount transferred to revenue reserve                    285               36

Earnings per share
    - Basic                                           (36.67p)          15.05p
    - Fully diluted                                   (25.70p)          11.32p

All items in the above statement arise from continuing operations and are 
disclosed on an unmodified historical cost basis.

Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31st July 2001
                                                        2001             2000
                                                       £'000            £'000

(Loss) profit for the financial period                (2,693)           1,186
Movement on unrealised revaluation of investments       (870)          (1,196)

Total gains and losses recognised in the period       (3,563)             (10)

                                  - 4 -

Note 1
                                                        2001             2000
                                                       £'000            £'000
Income

Income from investments            
UK dividends                                             611              377
Interest on loan notes                                    74                -
                                                         685              377
 
Other income
Deposit interest                                          93               65
Other income                                              23                -   
                                                         116               65
Total income                                             801              442

The above financial information does not constitute statutory financial 
statements as defined in Section 240 of the Companies Act 1985.  The comparative
financial information is based on the statutory financial statements for the 
year ended 31st July 2000.

Those financial statements, upon which the auditor issued an unqualified 
opinion, have been delivered to the Registrar of Companies. Statutory financial 
statements for the year ended 31st July 2001 will be delivered to the Registrar.

Note 2 

Changes in the presentation of the Financial Statements

As a result of the loss of investment trust status, as described in the 
Chairman's Statement on Page 6, the financial statements have been drawn up to 
include a statutory profit and loss account and a statement of total recognised 
gains and losses in accordance with Schedule 4 of the Companies Act 1985. These 
statements differ from the Statement of Total Return in that gains and losses on
investments include only those gains and losses arising from investments sold 
during the period, and unrealised gains and losses are not included in the 
statutory profit and loss account but are included in the statement of total 
recognised gains and losses. The total of these additional statements 
incorporates all the information normally included in the Statement of Total 
Return. A Statement of Total Return, prepared in accordance with the Investment 
Trust Statement of Recommended Practice, has also been included in the financial
statements for the purposes of comparison.

There has been no change to the balance sheet arising from this change of 
presentation.
                                  - 5 -


CHAIRMAN'S STATEMENT

During the second half of the year under review, the net asset value improved by
10.4% to 230.1p, reflecting our increased confidence in the performance 
prospects of our Portfolio expressed in the Interim Statement.  This result 
compares with a fall of 12.1% in the FTSE All Share Index during the six months 
ended 31st July 2001. Over the year as a whole the net asset value fell from 
266.5p to 230.1p, a fall of 13.66%, which compares with a fall of 13.01% in the 
FTSE All Share Index.

In August 2000 the Company breached Section 842 of the Income and Corporation 
Taxes Act 1988 by virtue of acquiring Galleon Securities Ltd. (GS). We completed
the acquisition of all the GS assets and have successfully integrated these into
our Portfolio, which has also been structured so as to enable the Company to 
regain Investment Trust Status for the current year. In preparation for our 
return to status, we reduced our holding in BAE to 1.2m shares which, together 
with other sales (including most of our holding in Pearson) resulted in cash 
balances of £10.7m (representing 44.34% of our net assets) at 31st July 2001.

I also commented in my Interim Statement to shareholders that, whilst we still 
believed the market was in a 'bear' phase, monetary policy was likely to be 
sufficiently benign to at least alleviate the extent of the decline in business 
confidence and fears of developing recession. Under these circumstances, we were
content to hold a substantial percentage of the net assets in cash balances, as 
we fell the downward trend in markets could be protracted. We certainly did not 
anticipate the 11th September terrorist attack on America which has now thrown 
world stock markets into turmoil. It is too early fully to assess the likely 
consequences, both commercial and military, and we may be entering into an era 
of prolonged uncertainty which will continue to impact adversely against share 
prices. Until now, the deteriorating economic conditions were substantially 
mitigated by strong consumer spending, but it will be surprising if the spate of
redundancies does not have a major effect on confidence (both in the US and UK),
thereby almost certainly tipping both economics into recession. We are fortunate
to have substantial cash balances, together with a Portfolio which, to date, has
not been too adversely affected. We are therefore in a position to take 
advantage of any outstanding buying opportunities which may present themselves 
in the future.

The discount at which GS was purchased contributed £0.34m to the net assets of 
the Company, and the terms of the acquisition were on a zero cost of financing 
the purchase of assets valued at £6.0m.  The financing terms therefore created a
healthy increase in income available for dividend, but the Board are also 
mindful that the loan of £5.4m is repayable in August 2002. Taking account of 
the current uncertainties and the likelihood that greater emphasis in the 
foreseeable future will he placed on income generation, the Directors feel able 
to recommend a Final Dividend of 1.9p (1.5p) making a total of 2.5p (2p) for the
year. The Final Dividend will be paid on 27th November 2001 to shareholders on 
the Register as at 12th October 2001.

This year our Annual General Meeting is to be held in the Goldstone Room, The 
Museum of Science and Industry, Liverpool Road, Castlefield, Manchester M3 4FP, 
at 12.45pm on Thursday, 15th November 2001, after which the results of the draw 
for Wimbledon tickets will be announced.

P.H.A. Stanley FCA 
Chairman
                                  - 6 -