Final Results

Merchants Trust PLC
11 March 2002


For Immediate Release     11th March 2002



                            THE MERCHANTS TRUST PLC

                      ANNOUNCEMENT OF PRELIMINARY RESULTS

                      For the year ended 31st January 2002


Highlights

  • Earnings per share of 16.70p, up 2.1%, including 0.21p per share from
    special dividends. Underlying growth was 8.9%.

  • Net dividends totalled 16.80p per share in 2001/02, an increase of 2.4%.
    This is the twentieth consecutive annual increase.


  • The net asset value per share shows a 7% out-performance when compared
    with the FTSE 100 Index.


  • Ordinary shares yield 4.06% at 414p, compared with 2.65% on the FTSE 100
    at 8th March 2001.

Net Asset Value

The Net Asset Value per Ordinary Share at 31st January 2002 was 412.3p compared
with 463.5p at 31st January 2001, a fall of 11%. This compares with a fall of
18.0% recorded by the FTSE 100 index. The Trust's emphasis on established blue
chip companies has led to this significant out-performance. The FTSE 350 High
Yield Index fell by 6.0% over the same year.

Ordinary Dividend

The Board is recommending a final dividend of 4.20p per share, payable on 14th
May 2002 to holders of record at the close of business on 12th April 2002. *
This gives a total of 16.80p for the year ended 31st January 2002, an increase
of 2.4% when compared with the total distribution of 16.40p paid during the
previous year. The Trust has now recorded an unbroken record of dividend
increases over the last twenty years.


        *     (A payment date of 10th May 2002 had been indicated in last year's
        interim report, but this has been moved to allow for shareholder
        approval at the Annual General Meeting which has now been set for 13th
        May 2002).

Earnings

Net earnings per share rose from 16.35p to 16.70p, or by 2.1%. If the impact of
special dividend receipts in both years is ignored, the underlying rate of
increase is 8.9%


                                     Page 2

Prospects

Forecasts for UK economic activity in 2002 suggest a continuation of the recent
steady trend of growth. Overseas, leading indicators in the US, Europe and the
Far East, but not in Japan, are suggesting that the worst has now been seen for
this economic cycle. Whilst this suggests that in general easier monetary
policies have been successfully implemented, there is considerable doubt as to
how rapid any recovery may be. Nevertheless the likelihood is that in 2002 there
should be a recovery in company earnings and that inflation should remain
subdued. UK quoted companies in the main are modestly rated by comparison with
their equivalents overseas and, thus, there are likely to continue to be useful
opportunities to purchase good quality higher yielding shares in the coming
months.


Annual General Meeting


The Annual General Meeting of the Company will be held at 20 Fenchurch Street,
London, EC3P 3DB on Monday 13th May 2002 at 12.00 noon.


Share Buy Backs


The Board has decided to recommend to shareholders that the Company takes
renewed 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     K J Salt

London EC3M 3LB     Deputy Company Secretary


                                     Page 3

Unaudited preliminary results for the year ended 31st January 2002 were approved
for immediate release as undernoted:

RESULTS

STATEMENT OF TOTAL RETURN

for the year ended 31st January 2002
                                                                              2002
                                                             (£)              (£)                 (£)
                                                           Revenue          Capital              Total
                                                          (Note 3)
Net losses on investments                                            -       (45,049,190)        (45,049,190)
Exchange rate differences                                            -           (47,836)            (47,836)
Income                                                      21,595,671                  -          21,595,671
Investment management fee                                    (805,463)        (1,495,860)         (2,301,323)
Administration expenses                                      (588,430)                  -           (588,430)

Net return before finance costs and taxation                20,201,778       (46,592,886)        (26,391,108)

Finance costs of borrowings                                (3,068,058)        (5,682,815)         (8,750,873)

Return on ordinary activities before taxation               17,133,720       (52,275,701)        (35,141,981)

Taxation                                                      (39,079)             39,079                   -

Return on ordinary activities after taxation for the        17,094,641       (52,236,622)        (35,141,981)
financial year

Dividends on preference stock                                 (42,997)                  -            (42,997)

Return attributable to Ordinary Shareholders                17,051,644       (52,236,622)        (35,184,978)

Dividends on Ordinary Shares (see below)                  (17,155,611)                  -        (17,155,611)

Transfer from reserves                                       (103,967)       (52,236,622)        (52,340,589)

Return per Ordinary Share (Note 1)                              16.70p          (51.15)p             (34.45)p

Dividends on Ordinary Shares:                                                             2002 (£)
First Interim paid                                       4.20p                           4,290,465
Second Interim paid                                      4.20p                           4,290,465
Third Interim paid                                       4.20p                           4,288,365
Final proposed payable 14th May 2002                     4.20p                           4,288,365
Prior year over accrual                                                                    (2,049)
                                                        16.80p                          17,155,611

NET ASSET STATEMENT as at 31st January 2002                                               2002 (£)
Fixed Asset Investments                                                                546,771,665
Net Current Liabilities                                                               (12,523,567)

Less: Creditors - amounts falling due after more than one year                       (112,087,474)
Total Net Assets                                                                       422,160,624

Called up Share Capital     : Ordinary                                                  25,525,984
               : Preference                                                              1,178,000
Share Premium Account                                                                       39,809
Capital Redemption Reserve                                                                  56,250
Capital Reserves     : Realised                                                        385,653,373
               : Unrealised                                                              (422,226)
Revenue Reserve                                                                         10,129,434
                                                                                       422,160,624

Net asset value per Ordinary Share (Note 2)                                                 412.3p


                                     Page 4

RESULTS

STATEMENT OF TOTAL RETURN

for the year ended 31st January 2001
                                                                                2001
                                                             (£)              (£)                 (£)
                                                           Revenue          Capital              Total
                                                          (Note 3)
Net gains on investments                                             -         89,852,702          89,852,702
Exchange rate differences                                            -          1,158,076           1,158,076
Income from fixed asset investments                         21,218,618                  -          21,218,618
Other income                                                   327,640                  -             327,640
Investment management fee                                    (826,964)        (1,535,791)         (2,362,755)
Other expenses                                               (642,557)                  -           (642,557)

Net return before finance costs and taxation                20,076,737         89,474,987         109,551,724

Finance costs of borrowings                                (3,134,815)        (5,723,936)         (8,858,751)

Return on ordinary activities before taxation               16,941,922         83,751,051         100,692,973

Taxation                                                     (184,352)            184,352                   -

Return on ordinary activities after taxation for the        16,757,570         83,935,403         100,692,973
financial year

Dividends on preference stock                                 (42,997)                  -            (42,997)

Return attributable to Ordinary Shareholders                16,714,573         83,935,403         100,649,976

Dividends on Ordinary Shares (see below)                  (16,769,646)                  -        (16,769,646)

Transfer (from) to reserves                                   (55,073)         83,935,403          83,880,330

Return per Ordinary Share (Note 1)                              16.35p            82.09p               98.44p

Dividends on Ordinary Shares:                                                             2001 (£)
First Interim paid                                       4.10p                           4,195,486
Second Interim paid                                      4.10p                           4,193,436
Third Interim paid                                       4.10p                           4,190,362
Final paid 18th May 2000                                 4.10p                           4,190,362
                                                        16.40p                          16,769,646

NET ASSET STATEMENT as at 31st January 2001                                               2001 (£)
Fixed Asset Investments                                                                591,210,681
Net Current Liabilities                                                                (4,221,493)
                                                                                       586,989,188
Less: Creditors - amounts falling due after more than one year                       (112,082,455)
Total Net Assets                                                                       474,906,733

Called up Share Capital     : Ordinary                                                  25,550,984
               : Preference                                                              1,178,000
Share Premium Account                                                                       39,809
Capital Redemption Reserve                                                                  31,250
Capital Reserves     : Realised                                                        384,849,145
               : Unrealised                                                             53,024,144
Revenue Reserve                                                                         10,233,401
                                                                                       474,906,733

Net asset value per Ordinary Share (Note 2)                                                 463.5p




                                     Page 5


CASH FLOW STATEMENT

For the years ended 31st January 2002 and 2001
                                                                 2002 (£)          2002 (£)           2001 (£)

Net cash inflow from operating activities                                        19,433,017         17,748,009

Servicing of Finance
Interest paid                                                 (8,745,854)                         (8,850,396))
Preference dividends paid                                        (42,997)                             (42,997)

Net cash outflow on servicing of finance                                        (8,788,851)        (8,893,393)

Taxation
UK income tax (paid) repaid                                                       (660,987)            865,492

Investing Activities
Payments to acquire fixed asset investments                 (221,291,887)                        (334,875,548)
Proceeds on disposal of fixed asset investments               227,689,157                          340,271,533

Net cash inflow from financial investment                                         6,397,270          5,395,985

Equity dividends paid                                                          (16,959,605)       (16,677,567)

Net cash outflow before financing                                                 (579,156)        (1,561,474)

Financing
(Decrease) Increase in short term loan                          (802,368)                            1,488,189
Purchase of Ordinary Shares for cancellation                    (405,520)                            (468,880)

Net cash outflow from financing                                                 (1,207,888)          1,019,309

Decrease in cash                                                               (1,787,044)           (542,165)





                                     Page 6


Note 1


The Returns per Ordinary Share have been calculated using a weighted average
number of shares in issue during the year of 102,131,744 shares (2001 -
102,250,726).


Note 2


The net asset value is based on 102,103,936 Ordinary Shares in issue at the
year-end (2001 - 102,203,936).


Note 3


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


All revenue and capital items derive from continuing operations. No operations
were acquired or discontinued in the year.


Note 4


The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31st January 2002 or 31st
January 2001. The financial information for the year ended 31st January 2001 has
been extracted from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors report on those accounts
was unqualified and did not contain a statement under either Section 237(2) or
Section 237(3) of the Companies Act 1985. The statutory accounts for the year
ended 31st January 2002 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement and will
be delivered to the Registrar of Companies following the Company's Annual
General Meeting.


For further information, please contact:

Dresdner RCM Global Investors (UK) Ltd

Tessa Murray, Head of Corporate Communications

Tel: [phone]

or

Dresdner RCM Global Investors (UK) Ltd

Simon White/Nigel Lanning

Tel: [phone]



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