Final Results

Merchants Trust PLC
21 March 2000


                 ANNOUNCEMENT OF PRELIMINARY RESULTS
                 For the year ended 31st January 2000

Highlights

*       Net dividends totalling 16.0p per share, an underlying increase of
        6.7%, adjusting for the FID enhancement paid in 1998/9.

*       Earnings per share of 17.93p per share, up 17.9%.  This includes 1.31p
        per share from special dividends.  The underlying earnings have also
        been increased due to the timing of dividend receipts.

*       Ordinary shares yield 4.80% at 3.33p, compared with 1.96% on the FTSE
        100 at 20th March 2000.

*       Net asset value 405.1p per share at 17th March 2000, up 6.2% year to
        date.

*       £29m raised through 5.875% Secured Bonds 2029 on 20th December 1999.

Ordinary Dividend

The Board is recommending a final dividend of 4.05p per share, payable on 18th
May 2000 to holders of record at the close of business on 14th April 2000. 
This gives a total of 16.00p for the year ended 31st January 2000, an
underlying increase of 6.7% when compared with the total distribution of
15.00p, excluding the enhancement relating to the FID, paid during the
previous year.

Net Asset Value

The net asset value per Ordinary Share at 31st January 2000 was 381.4p
compared with 415.2p at 31st January 1999, a decrease of 8.1%.  This compares
with an increase of 1.8% recorded by the FTSE 350 Higher Yield Index.  The
shortfall against the Higher Yield Index represents the relative
out-performance of smaller companies within this universe.  Over the last
financial year the FTSE 100 Index rose by 6.3%.

Annual General Meeting

The Annual General Meeting of the Company will be held at 20 Fenchurch Street,
London, EC3P 3DB on Monday 8th May 2000 at 12.30pm.

Share Buy Backs

The Board has decided to recommend to shareholders that the Company take
powers to buy back its Ordinary Shares.  Full details will be sent to
shareholders in the forthcoming Annual Report and Accounts.

                                                 By Order of the Board
10 Fenchurch Street                              N J Schrager von Altishofen
London EC3M 3LB                                  Joint Company Secretary


Unaudited preliminary results for the year ended 31st January 2000 were
approved for immediate release as undernoted:


RESULTS
STATEMENT OF TOTAL RETURN *
for the year ended 31st January 2000
                                                   2000
                                       ---------------------------------------
     
                                       (£)           (£)           (£)
                                       Revenue       Capital       Total
                     
Net losses on investments                  -         (30,408,125)  30,408,125)
Exchange rate differences                  -                (743)        (743)
Income from fixed asset investments     22,355,982       -         22,355,982
Other income                               234,070       -            234,070
Investment management fee                 (779,436)   (1,447,525)  (2,226,961)
Other expenses                            (551,804)      -           (551,804)
                                       ---------------------------------------
Net return before finance costs
 and taxation                           21,258,812   (31,856,393) (10,597,581)
                     
Finance costs of borrowings             (2,650,058)   (4,877,533)  (7,527,591)
                                       ---------------------------------------
                     
Return on ordinary activities
 before taxation                        18,608,754   (36,733,926) (18,125,172)
                     
Taxation                                  (221,150)      220,411         (739)
                                       ---------------------------------------
                     
Return on ordinary activities after
 taxation for the financial year        18,387,604   (36,513,515) (18,125,911)
                     
Dividends on preference stock              (42,997)      -            (42,997)
                                       ---------------------------------------
                     
Return attributable to Ordinary
 Shareholders                           18,344,607   (36,513,515) (18,168,908)
                     
Dividends on Ordinary Shares
 (see below)                           (16,372,630)      -        (16,372,630)
                                       ---------------------------------------
                     
Transfer to (from) reserves              1,971,977   (36,513,515) (34,541,538)
                                       ---------------------------------------
                     
Return per Ordinary Share                   17.93p       (35.68p)     (17.75p)

* The revenue column of this statement is the profit and loss account of the  
  Company.

Dividends on Ordinary Shares:                                     2000 (£)
First Interim paid                                   3.95p       4,041,993
Second Interim paid                                  3.95p       4,041,993
Third Interim paid                                   4.05p       4,144,322
Final proposed payable 18th May 2000                 4.05p       4,144,322
                                                    ----------------------
                                                    16.00p      16,372,630
                                                    ======================
       
NET ASSET STATEMENT as at 31st January 2000                       2000 (£)
Fixed Asset Investments                                        508,246,237
Net Current Liabilities                                         (4,516,536)
                                                              -------------
                                                               503,729,701
Less: Creditors - amounts falling due after
 more than one year                                           (112,234,418)
Preference stock at par                                         (1,178,000)
                                                              -------------
Net assets attributable to Ordinary Shareholders               390,317,283
                                                              =============
Net asset value per Ordinary Share                                   381.4p

The net asset value is based on 102,328,936 Ordinary Shares in issue.



RESULTS
STATEMENT OF TOTAL RETURN *
for the year ended 31st January 1999
                                                     1999      
                                       ---------------------------------------
                                       (£)           (£)          (£)
                                       Revenue       Capital      Total
                     
Net gains on investments                   -         10,158,327   10,158,327
Exchange rate differences                  -                243          243
Income from fixed asset investments     19,632,710      -         19,632,710
Other income                               486,332      -            486,332
Investment management fee                 (763,048)  (1,417,089)  (2,180,137)
Other expenses                            (426,891)     -           (426,891)
                                       ---------------------------------------
                     
Net return before finance costs
 and taxation                           18,929,103    8,741,481   27,670,584
                     
Finance costs of borrowings             (2,385,058)  (4,428,201)  (6,813,259)
                                       ---------------------------------------
                     
Return on ordinary activities
 before taxation                        16,544,045    4,313,280   20,857,325
                     
Taxation                                  (934,134)     605,508     (328,626)
                                       ---------------------------------------
                     
Return on ordinary activities after
 taxation for the financial year        15,609,911    4,918,788   20,528,699
Dividends on preference stock              (42,997)     -            (42,997)
                                       ---------------------------------------
                     
Return attributable to Ordinary
 Shareholders                           15,566,914    4,918,788   20,485,702
                     
Dividends on Ordinary Shares
 (see below)                           (15,953,081)      -       (15,953,081)
                                       ---------------------------------------
                     
Transfer (from) to reserves               (386,167)   4,918,788    4,532,621
                                       ---------------------------------------
                     
Return per Ordinary Share                    15.21p       4.81p       20.02p

* The revenue column of this statement is the profit and loss account of the  
  Company.

Dividends on Ordinary Shares:                                      1999 (£)
First Interim paid 21st August 1998                  3.75p         3,837,335
Second Interim paid 18th November 1998               3.75p         3,837,335
Third Interim paid 22nd February 1999       
       Ordinary Dividend                             1.36p         1,391,674
       Foreign Income Dividend                       2.98p         3,049,402
Final paid 19th May 1999                             3.75p         3,837,335
                                                    ------------------------
                                                    15.59p        15,953,081
                                                    ========================
     
NET ASSET STATEMENT as at 31st January 1999                       1999 (£)
Fixed Asset Investments                                           508,503,479
Net Current Assets                                                    685,649
                                                                  ------------
                                                                  509,189,128
Less: Creditors - amounts falling due after
 more than one year                                               (83,152,307)
Preference stock at par                                            (1,178,000)
                                                                  ------------
Net assets attributable to Ordinary Shareholders                  424,858,821
                                                                  ============
Net asset value per Ordinary Share                                     415.2p

The net asset value is based on 102,328,936 Ordinary Shares in issue.


CASH FLOW STATEMENT
For the years ended 31st January 2000 and 1999

                                       2000 (£)      2000 (£)      1999 (£)
                     
Net cash inflow from operating
 activities                                           20,942,289    16,382,464
                     
Servicing of Finance                     
Interest paid                            (7,340,354)               
(6,625,303)
Preference dividends paid                   (42,997)                  (21,498)
                                       -------------
Net cash outflow on servicing of
 finance                                              (7,383,351)  (6,646,801)
                     
Taxation                     
UK income tax repaid                         47,545                   335,116
Advance corporation recovered (paid)        142,667                  (241,282)
                                       -------------
Net tax repaid                                           190,212        93,834
                     
Investing Activities                     
Payments to acquire fixed asset
 investments                           (444,356,135)             (243,493,665)
Proceeds on disposal of fixed asset
 investments                            412,048,368               235,532,762
                                       -------------     
Net cash outflow from financial
 investment                                          (32,307,767)  (7,960,903)
                     
Equity dividends paid                                (16,362,397) (15,093,518)
                                      
                                                     -------------------------
Net cash outflow before financing                    (34,921,014) (13,224,924)
                     
Financing                     
(Decrease) increase in short         
 term loan                                 (497,256)                  497,256
Issue of Secured Bonds                   28,942,800                   -
Increase in Fintrust loan                   -                      12,000,000
Premium received thereon                    -                       5,286,564
                                       -------------     
                     
Net cash inflow from financing                        28,445,544   17,783,820
                                                      ------------------------
                     
(Decrease) increase in cash                           (6,475,470)   4,558,896
                                                      ------------------------
                          
The statutory accounts for the year ended 31st January 1999 received an
unqualified audit report and have been delivered to the Registrar of
Companies.

The Company is adopting early compliance with Financial Reporting Standard 16
'Current Taxation' and is accounting for dividends from UK equity investments
net of the associated tax credit.  Comparative figures have been restated
accordingly.

For further information, please contact:

Dresdner RCM Global Investors (UK) Ltd
Simon White or Nigel Lanning
Tel: [phone]

or

Lansons Communications
Amy Fisher
Tel: [phone]