Interim Management Statement

Merchants Trust PLC
13 November 2007

The Merchants Trust PLC


Interim Management Statement


For the quarter ended 31 October 2007


This interim management statement relates to the quarter from 1 August 2007 to
31 October 2007 and contains information for that period unless otherwise
stated. This statement is produced to provide information in accordance with the
UK Listing Authority's Disclosure and Transparency Rules.


Investment objective

The objective of The Merchants Trust is to provide an above average level of
income and income growth together with long term growth of capital through a
policy of investing mainly in higher yielding UK FTSE 100 companies.


Portfolio

Top ten holdings at 31 October 2007 and percentage of total gross assets

                                                                                   £                  %
BP                                                                        57,454,000               7.84
Royal Dutch Shell                                                         55,386,300               7.55
HSBC Holdings                                                             54,653,750               7.45
Vodafone                                                                  54,197,771               7.39
GlaxoSmithKline                                                           53,487,880               7.30
Royal Bank of Scotland Group                                              35,397,600               4.83
HBOS                                                                      22,497,210               3.07
Anglo American                                                            22,316,476               3.04
Reed Elsevier                                                             18,997,000               2.59
Aviva                                                                     18,056,450               2.46




Material events and transactions



The second quarterly dividend of 5.4p per share was declared on 18 September and
will be paid on 15 November to shareholders on the register on 19 October  2007.



There were no changes to the Company's share capital over the period.





Financial Performance to 31 October 2007


                                                   % change
                                  3m           6m          1yr          3yrs          5yrs        10yrs
Share price                     2.52        -2.43           4.71        74.45         101.31       148.30
Net Asset Value                 4.90         2.14          10.93        75.74         126.30       149.42
Benchmark*                     6.78          5.98          13.53        60.95          97.52        86.61



Source: Datastream

Total return with net dividends reinvested and net of fees.

* FTSE 100 Total Return




Financial position at 31 October and 9 November 2007


                                            31 October                            9 November
Total gross assets                         £733,161,179                          £685,080,568
Net assets                                 £598,200,921                          £549,586,484
Share price                                   506.0p                                457.5p
Net asset value1                              579.2p                                532.1p
Net asset value2                              536.5p                                509.8p
Discount3                                     -12.6%                                -14.0%
Gearing4                                       18.2%                                22.5%
Historic Dividend Yield                        4.1%                                  4.6%



1 Debt at book value

2Debt at market value

 Net asset values are calculated and announced weekly.

3 The discount is the difference between the share price and the NAV (debt at
book value) per share expressed as a percentage of the NAV per share.

4 Actual gearing - net of cash.





Company Information


Launch date                            1889
EPIC                                   MRCH
Year end                               31 January
Report and Accounts                    Final posted April, half-yearly posted September
AGM                                    May
Dividends                              February, May, August and November
Price Information                      Financial Times, The Daily Telegraph,  www.allianzgi.co.uk





Investor information



Further up to date information, including Net Asset Values and share prices, and
the latest available factsheets and portfolio information, is provided on the
Manager's website, which can be accessed via  www.merchantstrust.co.uk  or
www.allianzgi.co.uk .  Investor services can be contacted on 020 7065 1407 and
information can also be obtained from the Manager's helpline on 0800 317 573.







By order of the Board.
The Merchants Trust PLC


155 Bishopsgate
London EC2M 3AD


13 November  2007


                      This information is provided by RNS
            The company news service from the London Stock Exchange