Final Results

Merchants Trust PLC
07 March 2005

For Immediate Release                   7 March 2005


                            THE MERCHANTS TRUST PLC

                      ANNOUNCEMENT OF PRELIMINARY RESULTS
                       For the year ended 31 January 2005

Highlights

•         The Net Asset Value total return recorded by the Trust's shares was
+21.3%, compared with +14.3% by the FTSE 100 index.

•         The Net Asset Value per share rose by 16.2% compared with a rise of
10.5% in the FTSE 100 Index. Before the impact of gearing and costs, the capital
return on the Company's portfolio was 14.0%.

•         Net dividends totalled 18.00p per share in 2004/05, an increase of
2.3%. This is the twenty-third consecutive annual increase.

•         Ordinary shares yield 4.7% at 381.0p, compared with 3.1% on the FTSE
100 Index at the close of business on 7 March 2005.

Net Asset Value

The  Net Asset Value per ordinary share at 31 January 2005 was 406.8p compared
with 350.1p at 31 January 2004, an increase of 16.2%.  This compares with an
increase of 10. 5% recorded by the FTSE 100 Index and one of 15.3% recorded by
the FTSE 350 Higher Yield Index.  Before allowance is made for the impact of
borrowings and costs, the capital return on the Company's portfolio was 14.0%.

Ordinary Dividend

The Board has declared a final dividend of 4.5p per share, payable on 11 May
2005 to holders of record at the close of business on 15 April 2005.  This gives
a total of 18.00p for the year ended 31 January 2005, an increase of 2.3% when
compared with the total distribution of 17.60p paid during the previous year.
The Trust has now recorded an unbroken record of dividend increases over the
last twenty-three years.

Total Return and Earnings

The Net Asset Value total return, including capital and income, recorded by the
Trust's shares in the last financial year was +21.3%.  The equivalent return
recorded by the FTSE 100 index was +14.3%.  Net earnings per share rose from
17.34p to 17.58p or by 1.4%.

                                     Page 2

Prospects

The UK equity returns seen in the last year suggest that valuations are, in
isolation, less attractive than twelve months ago.  However most financial
assets have recorded an appreciation in values, not least because there has been
a further fall in bond yields as investors have sought long term security of
returns.  This augurs well for higher yielding shares, whose attractions are
re-inforced by the recent strength of dividend payments.  This may be expected
to sustain investors' interest in the higher yielding sector of the UK share
market.

Annual General Meeting

The Annual General Meeting of the Company will be held at 20 Moorgate, London
EC2R 6DA on Tuesday 10 May 2005 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
P W I Ingram
Deputy Secretary

155 Bishopsgate
London EC2M 3AD


                                     Page 3

Unaudited preliminary results for the year ended 31 January 2005 were approved
for immediate release as undernoted:


RESULTS
STATEMENT OF TOTAL RETURN
for the year ended 31 January 2005
                                                                           2005
                                                            (£000s)         (£000s)         (£000s)
                                                            Revenue         Capital          Total
                                                           (Note 3)
Net gains on investments                                              -          65,860           65,860
Income                                                           22,675               -           22,675
Investment management fee                                         (722)         (1,342)          (2,064)
Other expenses                                                    (594)               -            (594)

Net return before finance costs and taxation                     21,359          64,518           85,877

Finance costs of borrowings                                     (3,365)         (6,210)          (9,575)

Return on ordinary activities before taxation                    17,994          58,308           76,302

Taxation                                                              -               -                -

Return on ordinary activities after taxation for the             17,994          58,308           76,302
financial year

Dividends on Preference Stock                                      (43)               -             (43)

Return attributable to Ordinary Shareholders                     17,951          58,308           76,259

Dividends on Ordinary Shares (see below)                       (18,380)               -         (18,380)

Transfer (from) to reserves                                       (429)          58,308           57,879

Return per Ordinary Share (Note 1)                               17.58p          57.11p           74.69p


                          Dividends on Ordinary Shares:                                   2005 (£000s)
                          First Interim paid                     4.50p                           4,595
                          Second Interim paid                    4.50p                           4,595
                          Third Interim payable                  4.50p                           4,595
                          Final payable 11 May 2005              4.50p                           4,595
                                                                18.00p                          18,380

NET ASSET STATEMENT as at 31 January 2005                                                 2005 (£000s)
Fixed Asset Investments                                                                        535,095
Net Current Liabilities                                                                        (6,454)
                                                                                               528,641
Less: Creditors - amounts falling due after more than one year                               (112,141)
Total Net Assets                                                                               416,500

Called up Share Capital                : Ordinary                                               25,526
                                       : Preference                                              1,178
Share Premium Account                                                                               40
Capital Redemption Reserve                                                                          56
Capital Reserves             : Realised                                                        322,240
                             : Unrealised                                                       57,963
Revenue Reserve                                                                                  9,497
                                                                                               416,500
Net asset value per Ordinary Share (Note 2)                                                     406.8p




                                     Page 4



RESULTS
STATEMENT OF TOTAL RETURN
for the year ended 31 January 2004

                                                                           2004
                                                            (£000s)         (£000s)         (£000s)
                                                            Revenue         Capital          Total
                                                           (Note 3)
Net gains on investments                                              -          91,703           91,703
Income                                                           22,247               -           22,247
Investment management fee                                         (663)         (1,230)          (1,893)
Other expenses                                                    (502)               -            (502)

Net return before finance costs and taxation                     21,082          90,473          111,555

Finance costs of borrowings                                     (3,332)         (6,169)          (9,501)

Return on ordinary activities before taxation                    17,750          84,304          102,054

Taxation                                                            (5)               -              (5)

Return on ordinary activities after taxation for the             17,745          84,304          102,049
financial year

Dividends on Preference Stock                                      (43)               -             (43)

Return attributable to Ordinary Shareholders                     17,702          84,304          102,006

Dividends on Ordinary Shares (see below)                       (17,971)               -         (17,971)

Transfer (from) to reserves                                       (269)          84,304           84,035

Return per Ordinary Share (Note 1)                               17.34p          82.57p           99.91p


                          Dividends on Ordinary Shares:                                   2004 (£000s)
                          First Interim paid                     4.30p                           4,390

                          Second Interim paid                    4.30p                           4,391

                          Third Interim payable                  4.50p                           4,595

                          Fourth interim payable 2 April 2004    4.50p                           4,595

                                                                17.60p                          17,971

NET ASSET STATEMENT as at 31 January 2004                                                 2004 (£000s)
Fixed Asset Investments                                                                        473,912
Net Current Liabilities                                                                        (3,175)
                                                                                               470,737
Less: Creditors - amounts falling due after more than one year                               (112,117)
Total Net Assets                                                                               358,620

Called up Share Capital                : Ordinary                                               25,526
                                       : Preference                                              1,178
Share Premium Account                                                                               40
Capital Redemption Reserve                                                                          56
Capital Reserves             : Realised                                                        331,129
                             : Unrealised                                                      (9,234)
Revenue Reserve                                                                                  9,925
                                                                                               358,620

Net asset value per Ordinary Share (Note 2)                                                     350.1p


                                     Page 5


CASH FLOW STATEMENT
For the years ended 31 January 2005 and 2004

                                                          2005 (£000s)     2005 (£000s)         2004 (£000s)

Net cash inflow from operating activities                                        22,381               20,141

Servicing of Finance
Interest paid                                                  (9,543)                               (9,460)
Preference dividends paid                                         (43)                                  (21)

Net cash outflow on servicing of finance                                        (9,586)              (9,481)

Investing Activities
Payments to acquire fixed asset investments                  (142,790)                             (148,695)
Proceeds on disposal of fixed asset investments                145,334                               158,188

Net cash inflow from investing activities                                         2,544                9,493

Equity dividends paid                                                          (18,379)             (17,562)

Net cash (outflow) inflow before financing                                      (3,040)                2,591

Financing

Decrease in short term loan                                                           -                (224)

(Decrease) increase in cash                                                     (3,040)                2,367



                                     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 102,103,936 shares (2004 -
102,103,936).

Note 2

The net asset value is based on 102,103,936 Ordinary Shares in issue at the
year-end (2004 - 102,103,936).

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 31 January 2005 or 31 January
2004.  The financial information for the year ended 31 January 2004 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 31 January 2005 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:

RCM (UK) Ltd
Simon White/Nigel Lanning
Tel: [phone]


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