Interim Results

Merrill Lynch UK Inv Tst PLC
29 April 2002




                                                                   29 April 2002



                     MERRILL LYNCH UK INVESTMENT TRUST plc

                                INTERIM RESULTS FOR THE SIX MONTHS ENDED

                                 31 MARCH 2002




•          Increase in NAV per share with net income reinvested of 10.7% over the six months ended 31 March
           2002.

•          Increase in share price of 10.1% over the six months ended 31 March 2002 (with net income
           reinvested).

•          Interim dividend of 8.50p declared (2001: 10.00p).

•          Appointment of William Kendall as an additional director of the Company.




The Chairman, Richard Oldfield, comments:



'The six months under review have seen an improvement in equity markets. As a
result the Company's net asset value per share ('NAV') increased 10.7% from the
Company's year end on 30 September 2001, matching the 10.7% increase in the FTSE
All-Share Index (both with net income reinvested).



'Although the discount to NAV at which the Company's shares trade has recently
remained fairly constant, at around 15%, it showed signs of widening early this
year when a large tranche of shares came onto the market.  We acted to limit any
increase in discount, and bought back 339,763 shares for cancellation in mid
February.



'Group earnings per share were 8.56p, compared with 4.27p for the same period
last year.  Last year's comparable earnings figure reflected the impact of
unrealised losses in the Company's trading subsidiary.  Whilst there are no such
losses this year, the level of underlying earnings has decreased from 11.02p to
8.56p in line with the generally declining yield of the UK stock market.



'In line with the decline in income available from stock market dividends, and
the consequent abovementioned decrease in the Company's earnings, the Board has
declared an interim dividend of 8.50p, a reduction of 1.50p from the same period
last year.  The current outlook would indicate a comparable percentage reduction
in the final dividend.



'In the last six months, the Company's gearing was reduced to 17.1%, as a result
of the manager maintaining an increased cash position to offset long term
borrowing, and the beneficial effect of a higher market.  The Board monitors
closely the level of gearing it considers appropriate.




'William Kendall has agreed to join the Board with effect from today.  Mr
Kendall is the Chief Executive of Whole Earth Limited, an organic food brand and
distributor, a director of Adnams plc, a founder director of Nemadi Advisors
Limited, which advises on investments in the smaller companies sector and was
previously Chief Executive of The New Covent Garden Soup Company Limited.  We
look forward to benefiting from the broad business experience he brings to the
Board.'





Commenting upon the outlook for the Company, Luke Chappell of

Merrill Lynch Investment Managers Limited noted:





'UK shares (as represented by the FTSE All-Share Index) rose by 10.7% over the
six month period to 31 March 2002.  During the fourth quarter of 2001, investor
sentiment improved significantly, causing shares to rally from the extreme lows
reached in September in the aftermath of the terrorist attacks on the US.



'Our confidence in the prospect of global economic recovery has further
increased.  In the US, sentiment has recovered strongly in the manufacturing and
service sectors, while new orders have rebounded sharply from their September
lows.  The UK economy remains stable; real economic growth in 2001 experienced a
mild decline, barely below its long run trend, supported by buoyant consumer
spending and a more expansionary fiscal policy.  We expect a similar growth rate
for 2002.  Consumer spending may slow a little but should be supported by
historically low unemployment and interest rates.'






For further information, please contact:

Ian Barby                                                 020 7743 5224
Nigel Webb                                                020 7743 5938
Merrill Lynch Investment Managers Limited
or
William Clutterbuck                                       020 7379 5151
The Maitland Consultancy







CONSOLIDATED REVENUE STATEMENT

for the six months ended 31 March 2002


                                                  Six months ended    Six months ended           Year ended
                                                     31 March 2002       31 March 2001    30 September 2001
                                                             £'000               £'000                £'000
                                                       (unaudited)         (unaudited)            (audited)

Income (Note 3)                                              1,816               1,295                4,043
Investment management fees (Note 4)                          (120)               (138)                (233)
Other expenses                                                (77)               (121)                (246)

Net return before finance costs and
taxation                                                     1,619               1,036                3,564
Finance costs                                                (379)               (379)                (761)
Return on ordinary activities before
taxation                                                     1,240                 657                2,803
Taxation on ordinary activities                               (45)                (48)                 (65)

Return on ordinary activities after
taxation                                                     1,195                 609                2,738
Dividends in respect of non-equity shares                      (6)                 (6)                 (12)

Return attributable to equity
shareholders                                                 1,189                 603                2,726
Dividends in respect of equity shares
(Note 5)                                                   (1,147)             (1,409)              (4,228)

Transfer to/(from) reserves                                     42               (806)              (1,502)






TOTAL RETURN PER ORDINARY SHARE


                                                  Six months ended      Six months ended           Year ended
                                                     31 March 2002         31 March 2001    30 September 2001
                                                       (unaudited)           (unaudited)            (audited)

Earnings per share                                           8.56p                 4.27p               19.33p
Capital return per ordinary share                           76.86p             (154.29p)            (368.54p)

Total return per ordinary share                             85.42p             (150.02p)            (349.21p)

Dividend per ordinary share                                  8.50p                10.00p               30.00p








CONSOLIDATED BALANCE SHEET

as at 31 March 2002


                                                     31 March 2002       31 March 2001     30 September 2001
                                                             £'000               £'000                 £'000
                                                       (unaudited)         (unaudited)             (audited)
Fixed assets
Listed investments at market valuation                     144,304             184,729               148,573
Unlisted investments at directors' valuation                   101                 108                    89

                                                           144,405             184,837               148,662

Current assets
Investments of subsidiary undertaking                            -               2,432                     -
Debtors                                                      1,476               3,203                 5,248
Cash                                                        18,189                 723                 7,905

                                                            19,665               6,358                13,153

Creditors: amounts falling due within one
year                                                         2,349               4,777                 6,282

Net current assets                                          17,316               1,581                 6,871

Total assets less current liabilities                      161,721             186,418               155,533

Creditors: amounts falling due after one
year                                                        39,529              39,506                39,518

Net assets                                                 122,192             146,912               116,015

Capital and reserves
Equity interests:
Called-up share capital                                      6,747               7,047                 7,047
Share premium                                                1,258               1,258                 1,258
Capital redemption reserve                                     404                 104                   104
Capital reserve - realised                                 103,934             146,162               117,514
Capital reserve - unrealised                                 5,402            (12,760)              (14,313)
Revenue reserve                                              4,197               4,851                 4,155

                                                           121,942             146,662               115,765

Non-equity interests:
Cumulative preference shares                                   250                 250                   250

                                                           122,192             146,912               116,015

Net asset value per ordinary share                         903.69p            1040.63p               821.40p








CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 31 March 2002


                                                  Six months ended      Six months ended           Year ended
                                                     31 March 2002         31 March 2001    30 September 2001
                                                             £'000                 £'000                £'000
                                                       (unaudited)           (unaudited)            (audited)

Net cash flow from operating activities                      1,025               (2,146)                2,928

Returns on investments and servicing of
finance                                                    (1,468)                 (951)              (3,034)

Purchase of fixed asset investments                       (67,681)             (174,109)            (258,371)

Proceeds from the sale of fixed asset
  investments                                               85,764               176,128              265,990

Equity dividends paid                                      (2,819)               (2,819)              (4,228)

Purchase of ordinary shares                                (4,537)                 (871)                (871)

Increase/(decrease) in cash                                 10,284               (4,768)                2,414







RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION

TO NET CASH FLOW FROM OPERATING ACTIVITIES


                                                     31 March 2002         31 March 2001         30 September
                                                             £'000                 £'000                 2001
                                                       (unaudited)           (unaudited)                £'000
                                                                                                    (audited)

Net return before finance costs and

  taxation                                                   1,619                 1,036                3,564

Investment management and performance

  fees capitalised                                           (365)                 (415)                (690)

Net purchases of investments by

  subsidiary undertaking                                         -               (3,296)                (248)

(Increase)/decrease in accrued income                        (324)                 (405)                  377

Increase/(decrease) in creditors                                95                  (70)                (446)

Tax on investment income included within

  gross income                                                   -                     -                 (17)

Loss on investment dealing by

  subsidiary undertaking                                         -                 1,004                  388

Net cash flow from operating activities                      1,025               (2,146)                2,928







NOTES ON THE INTERIM STATEMENT




1.       Principal activity

         The principal activity of the Company remains that of an investment company within the meaning of
         section 266 of the Companies Act 1985.  The principal activity of its subsidiary undertaking is
         investment dealing.




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 30 September 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.       Income


                                                   Six months ended    Six months ended           Year ended
                                                      31 March 2002       31 March 2001    30 September 2001
                                                              £'000               £'000                £'000
                                                        (unaudited)         (unaudited)            (audited)

Income from investments:

Dividends:
  UK listed                                                   1,610               2,057                4,103
  Overseas listed                                                 2                  68                   73

Interest bearing                                                  -                  61                   69

                                                              1,612               2,186                4,245

Interest receivable and other income:
  Deposit interest                                              204                 113                  186
  Loss on investment dealing by
  subsidiary undertaking                                          -             (1,004)                (388)


                                                                204               (891)                (202)


Total                                                         1,816               1,295                4,043






4.       Investment management fees


                                                REVENUE                              CAPITAL
                                   Six months ended         Year ended  Six months ended         Year ended

                                       31 March                30 Sept      31 March                30 Sept
                                       2002      2001             2001      2002      2001             2001
                                      £'000     £'000            £'000     £'000     £'000            £'000
                                      (unaudited)            (audited)     (unaudited)            (audited)

Investment management fee               102       118              198       306       353              595
Performance fee on
  unlisted investments
                                          -         -                -         5         -              (9)
Total irrecoverable VAT
  thereon                                18        20               35        54        62              104

                                        120       138              233       365       415              690





5.    Dividend

      The Board has declared an interim dividend of 8.50p per ordinary share (2001: 10.00p), which will be paid
      on 11 June 2002 to shareholders who are on the register on 10 May 2002.  The shares will be quoted
      ex-dividend on 8 May 2002.




6.   Gearing ratios

     The ratio of borrowings to net assets were:           31 March 2002

     Total borrowings                                              32.3%
     Effective borrowings (total borrowings, less                  17.1%
     cash)




7.    Ordinary shares
                                                          31 March 2002      31 March 2001        30 September
                                                                                                          2001
                                                            (unaudited)        (unaudited)           (audited)

      The weighted average number of ordinary shares in
      issue during the period, on which

      the return per ordinary share was calculated,
      was:                                                   13,885,117         14,110,584          14,102,050

      The number of ordinary shares in issue at the end
      of each period, on which the net asset value was
      calculated, was:                                       13,493,799         14,093,562          14,093,562





8.    Publication of non-statutory accounts

      The financial information contained in this interim statement does not constitute statutory accounts as
      defined in section 240 of the Companies Act 1985.  The financial information for the six months ended 31
      March 2001 and 2002 has not been audited.

      The information for the year ended 30 September 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.




29 April 2002

33 King William Street

London EC4R 9AS


Trusts/MLUKIT/stockexchangeannouc/Interim Announcement 2002




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