Final Results

Merchants Trust PLC 20 March 2001 For immediate release 19th March 2001 THE MERCHANTS TRUST PLC ANNOUNCEMENT OF PRELIMINARY RESULTS For the year ended 31st January 2001 Highlights * Net asset value 463.5p per share at 31st January 2001, up 21.5% over the last year, giving a total return of 25.8%. * Net dividends totalling 16.4p per share, an increase of 2.5%. This represents the nineteenth consecutive annual increase. * Earnings per share of 16.35p, down 8.8%, including 1.21p per share from special dividends. * Ordinary shares yield 4.3% at 3.83p, compared with 2.5% on the FTSE 100 at 19th March 2001. Net Asset Value The net asset value per Ordinary Share at 31st January 2001 was 463.5p compared with 381.4p at 31st January 2000, an increase of 21.5%. This compares with an increase of 0.5% recorded by the FTSE 100 Index. The FTSE 350 High Yield Index rose 24.6% over the latest financial year. The Trust's emphasis on established blue chip companies has led to significant out-performance when compared with the broader market indices. Ordinary Dividend The Board is recommending a final dividend of 4.10p per share, payable on 17th May 2001 to holders of record at the close of business on 20th April 2001. This gives a total of 16.40p for the year ended 31st January 2001, an increase of 2.5% when compared with the total distribution of 16.00p paid during the previous year. Page 2 Annual General Meeting The Annual General Meeting of the Company will be held at 20 Fenchurch Street, London, EC3P 3DB on Monday 14th May 2001 at 12.30pm. 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 2001 were approved for immediate release as undernoted: 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 21,218,618 - 21,218,618 investments 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 20,076,737 89,474,987 109,551,724 costs and taxation Finance costs of borrowings (3,134,815) (5,723,936) (8,858,751) Return on ordinary 16,941,922 83,751,051 100,692,973 activities before taxation Taxation (184,352) 184,352 - Return on ordinary 16,757,570 83,935,403 100,692,973 activities after taxation for the financial year Dividends on preference (42,997) - (42,997) stock Return attributable to 16,714,573 83,935,403 100,649,976 Ordinary Shareholders Dividends on Ordinary Shares (16,769,646) - (16,769,646) (see below) Transfer to (from) reserves (55,073) 83,935,403 83,880,330 Return per Ordinary Share 16.35p 82.09p 98.44p (Note 1) 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 proposed payable 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 (112,082,455) year 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 4 RESULTS STATEMENT OF TOTAL RETURN for the year ended 31st January 2000 2000 (£) (£) (£) Revenue Capital Total (Note 3) Net losses on investments - (30,408,125) (30,408,125) Exchange rate differences - (743) (743) Income from fixed asset 22,355,982 - 22,355,982 investments 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 21,258,812 (31,856,393) (10,597,581) costs and taxation Finance costs of borrowings (2,650,058) (4,877,533) (7,527,591) Return on ordinary 18,608,754 (36,733,926) (18,125,172) activities before taxation Taxation (221,150) 220,411 (739) Return on ordinary 18,387,604 (36,513,515) (18,125,911) activities after taxation for the financial year Dividends on preference (42,997) - (42,997) stock Return attributable to 18,344,607 (36,513,515) (18,168,908) Ordinary Shareholders Dividends on Ordinary (16,372,630) - (16,372,630) Shares (see below) Transfer to (from) reserves 1,971,977 (36,513,515) (34,541,538) Return per Ordinary Share 17.93p (35.68p) (17.75p) (Note 1) Dividends on Ordinary Shares: 2000 (£) First Interim 3.95p 4,041,993 Second Interim 3.95p 4,041,993 Third Interim 4.05p 4,144,322 Final 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 (112,234,418) year Total Net Assets 391,495,283 Called up Share Capital : Ordinary 25,582,234 : Preference 1,178,000 Share Premium Account 39,809 Capital Reserves : Realised 347,584,119 : Unrealised 6,822,647 Revenue Reserve 10,288,474 391,495,283 Net asset value per Ordinary Share (Note 2) 381.4p Page 5 CASH FLOW STATEMENT For the years ended 31st January 2001 and 2000 2001 (£) 2001 (£) 2000 (£) Net cash inflow from 17,748,009 20,942,289 operating activities Servicing of Finance Interest paid (8,850,396)) (7,340,354) Preference dividends paid (42,997) (42,997) Net cash outflow on (8,893,393) (7,383,351) servicing of finance Taxation UK income tax repaid 865,492 47,545 Advance corporation - 142,667 recovered Net tax repaid 865,492 190,212 Investing Activities Payments to acquire fixed (334,875,548) (444,356,135) asset investments Proceeds on disposal of 340,271,533 412,048,368 fixed asset investments Net cash inflow (outflow) 5,395,985 (32,307,767) from financial investment Equity dividends paid (16,677,567) (16,362,397) Net cash outflow before (1,561,474) (34,921,014) financing Financing Increase (Decrease) in 1,488,189 (497,256) short term loan Issue of Secured Bonds - 28,942,800 Purchase of Ordinary (468,880) - Shares for cancellation Net cash inflow from 1,019,309 28,445,544 financing Decrease in cash (542,165) (6,475,470) 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 102,250,726 shares (2000 - 102,328,936). Note 2 The net asset value is based on 102,203,936 Ordinary Shares in issue at the year end (2000 - 102,328,936). 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 2001 or 31st January 2000. The financial information for the year ended 31st January 2000 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 2001 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 Simon White or Nigel Lanning Tel: 020 7475 2700 or Lansons Communications Amy Fisher Tel: 020 7490 8828

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