Interim Results

Merchants Trust PLC
15 September 2003





For immediate release                            15 September 2003



                            THE MERCHANTS TRUST PLC


                   Announcement of Unaudited Interim Results

                     For the six months ended 31 July 2003



Highlights



•         Net Asset Value of 335.0p per share, up 25.1% compared with 16.5 %
          rise in the FTSE 100 Index.

•         Underlying rise in the Trust's total assets was 17.9%.

•         Earnings per ordinary share of 10.17p, up 1.0%.

•         Dividends per share for first six months unchanged at 8.6p.

•         Historic dividend yield of 5.2% net at 329.5p per share.



Interim Results



Earnings per share



In the first six months of the current year, earnings have risen by 1.0% to
10.17p per share. As in 2002/3, dividend receipts are expected to be weighted
towards the first half of the current financial year.



Interim Dividends



The Board is recommending a second quarterly dividend of 4.3p per share, payable
on 12 November 2003 to shareholders on the register at close of business on 10
October 2003. The total distribution for the first half of 2003/4 is 8.6p net,
unchanged when compared with the same period last year.



Net Asset Value



The net asset value per ordinary share was 335.0p at 31 July 2003.  This
represents an increase of 25.1% when compared with the equivalent figure at 31
January 2003 - the end of the last financial year. Before taking account of the
impact of the Trust's borrowings, the underlying rise in the Trust's total
assets was 17.9%. Over the same period the FTSE 100 Index rose by 16.5%, whilst
the FTSE Higher Yield Index rose by 20.4 %.



Share Buy Backs



The Trust renewed its powers to buy back its ordinary shares at the last Annual
General Meeting.


                                     - 2 -



Prospects



After a weak start to the Trust's first half, equity markets have since recorded
a significant recovery.  Confidence has been re-built as a result of Central
Banks' easier monetary policies, as well as better than expected company results
and a revival of corporate activity. The Directors remain cautiously optimistic
and believe there should be good investment opportunities in the coming months.




By Order of the Board

K J Salt

Secretary



155 Bishopsgate

London EC2M 3AD






                                     - 3 -

THE MERCHANTS TRUST PLC



Summary of Unaudited Results



Statement of Total Return

For the six months ended 31 July 2003


                                                                              2003
                                                              £'000s         £'000s            £'000s
                                                             Revenue        Capital             Total

                                                            (Note 2)

Net gains on investments                                           -         70,885            70,885
Income from fixed asset investments                           12,612              -            12,612
Other income                                                      89              -                89
Investment management fee                                      (320)          (594)             (914)
Other expenses                                                 (288)              -             (288)
Net return before finance costs and taxation                  12,093         70,291            82,384

Finance costs of borrowings                                  (1,683)        (3,124)           (4,807)
Return before taxation                                        10,410         67,167            77,577

Taxation
UK corporation tax                                                 -              -                 -

Return after taxation                                         10,410         67,167            77,577
Dividends on Preference Stock                                   (21)              -              (21)
Return attributable to Ordinary Shareholders                  10,389         67,167            77,556

Dividends on Ordinary Shares:
First Interim                        4.3p                    (4,390)              -           (4,390)
Second Interim                       4.3p                    (4,391)              -           (4,391)
                                     8.6p                    (8,781)              -           (8,781)

Transfer to (from) Reserves                                    1,608         67,167            68,775

Return per Ordinary Share (Note 1)                            10.17p         65.78p            75.95p

                                                                                                 2003
NET ASSET STATEMENT as at 31 July 2003                                                         £'000s
Fixed asset investments                                                                       463,437
Net current liabilities                                                                       (7,969)
                                                                                              456,068
Less: Creditors - amounts falling due after more than one year                              (112,107)
Total Net Assets                                                                              343,361

Called up Share Capital                : Ordinary                                              25,526
                                       : Preference                                             1,178
Share Premium Account                                                                              40
Capital Redemption Reserve                                                                         56
Capital Reserves                       : Realised                                             336,494
                                       : Unrealised                                          (31,735)
Revenue Reserve                                                                                11,802
Shareholders' Funds                                                                           343,361

Net asset value per Ordinary Share                                                             335.0p


The net asset value is based on 102,103,936 Shares in issue at 31 July 2003.




                                     - 4 -

THE MERCHANTS TRUST PLC



Summary of Unaudited Results



Statement of Total Return

For the six months ended 31 July 2002


                                                                           2002
                                                              £'000s         £'000s            £'000s
                                                             Revenue        Capital             Total

                                                            (Note 2)

Net losses on investments                                          -       (69,698)          (69,698)
Income from fixed asset investments                           12,470              -            12,470
Other income                                                     112              -               112
Investment management fee                                      (377)          (700)           (1,077)
Other expenses                                                 (293)              -             (293)
Net return before finance costs and taxation                  11,912       (70,398)          (58,486)

Finance costs of borrowings                                  (1,608)        (2,976)           (4,584)
Return before taxation                                        10,304       (73,374)          (63,070)

Taxation
UK corporation tax                                                 -              -                 -

Return after taxation                                         10,304       (73,374)          (63,070)
Dividends on Preference Stock                                   (21)              -              (21)
Return attributable to Ordinary Shareholders                  10,283       (73,374)          (63,091)

Dividends on Ordinary Shares:
First Interim                        4.3p                    (4,390)              -           (4,390)
Second Interim                       4.3p                    (4,391)              -           (4,391)

                                     8.6p                    (8,781)              -           (8,781)

Transfer to (from) Reserves                                    1,502       (73,374)          (71,872)

Return per Ordinary Share (Note 1)                            10.07p       (71.86)p          (61.79)p

                                                                                                 2002
NET ASSET STATEMENT as at 31 July 2002                                                         £'000s
Fixed asset investments                                                                       463,778
Net current liabilities                                                                       (1,397)
                                                                                              462,381
Less: Creditors - amounts falling due after more than one year                              (112,093)
Total Net Assets                                                                              350,288

Called up Share Capital                : Ordinary                                              25,526
                                       : Preference                                             1,178
Share Premium Account                                                                              40
Capital Redemption Reserve                                                                         56
Capital Reserves                       : Realised                                             373,772
                                       : Unrealised                                          (61,915)
Revenue Reserve                                                                                11,631
Shareholders' Funds                                                                           350,288

Net asset value per Ordinary Share                                                             341.9p


The net asset value is based on 102,103,936 Shares in issue at 31 July 2002.




                                     - 5 -

THE MERCHANTS TRUST PLC





STATEMENT OF TOTAL RETURN

for the year ended 31 January 2003
                                                                         2003
                                                             £'000s          £'000s            £'000s
                                                            Revenue         Capital             Total
                                                           (Note 2)
Net losses on investments                                         -       (140,363)         (140,363)
Income from fixed asset investments                          21,839               -            21,839
Other income                                                    262               -               262
Investment management fee                                     (684)         (1,271)           (1,955)
Other expenses                                                (508)               -             (508)

Net return before finance costs and taxation                 20,909       (141,634)         (120,725)

Finance costs of borrowings                                 (3,240)         (6,006)           (9,246)

Return on ordinary activities before taxation                17,669       (147,640)         (129,971)

Taxation
UK corporation tax                                                -               -                 -

Return on ordinary activities after taxation for the         17,669       (147,640)         (129,971)
financial year

Dividends on preference stock                                  (43)               -              (43)

Return attributable to Ordinary Shareholders                 17,626       (147,640)         (130,014)

Dividends on Ordinary Shares:
First Interim                          4.3p                 (4,390)               -          (4,390)
Second Interim                         4.3p                 (4,390)               -          (4,390)
Third Interim                          4.3p                 (4,391)               -          (4,391)
Final                                  4.3p                 (4,391)               -          (4,391)
                                      17.2p                (17,562)               -         (17,562)

Transfer from reserves                                           64       (147,640)         (147,576)

Return per Ordinary Share (Note 1)                           17.26p       (144.60)p         (127.34)p

                                                                                                 2003
NET ASSET STATEMENT as at 31 January 2003                                                      £'000s
Fixed asset investments                                                                       391,704
Net current liabilities                                                                       (5,020)
                                                                                              386,684
Less: Creditors - amounts falling due after more than one year                              (112,099)
Total Net Assets                                                                              274,585

Called up Share Capital                : Ordinary                                              25,526
                                       : Preference                                             1,178
Share Premium Account                                                                              40
Capital Redemption Reserve                                                                         56
Capital Reserves                       : Realised                                             353,215
                                       : Unrealised                                         (115,624)
Revenue Reserve                                                                                10,194
Shareholders' Funds                                                                           274,585

Net asset value per Ordinary Share                                                             267.8p



The net asset value is based on 102,103,936 Shares in issue at 31 January 2003.




                                     - 6 -

THE MERCHANTS TRUST PLC



Cash Flow Statement

for the six months ended 31 July 2003 and comparative periods


                                                    Six Months to 31     Six Months to 31               Year to
                                                           July 2003            July 2002       31 January 2003
                                                            (£'000s)             (£'000s)              (£'000s)


Net cash inflow from operating activities                     10,959               10,039                19,294


Servicing of Finance
Interest paid                                                (4,683)              (4,389)               (9,266)
Dividends paid on preference stock                              (21)                 (21)                  (64)
Net cash outflow on servicing of finance                     (4,705)              (4,410)               (9,330)


Taxation
UK income tax paid                                                 -                    -                    10

Financial Investment
Purchase of fixed asset investments                         (71,147)             (75,610)             (138,921)
Sale of fixed asset investments                               70,296               84,002               151,375
Net cash (outflow)/inflow from financial activities            (851)                8,392                12,454

Equity dividends paid                                        (8,780)              (8,577)              (17,358)

Net cash (outflow)/inflow before financing                   (3,377)                5,444                 5,070

Financing

(Decrease)/increase in short term loans                        (224)                1,010                 (461)
Net cash (outflow)/ inflow from financing                      (224)                1,010                 (461)

(Decrease)/increase in cash                                  (3,601)                6,454                 4,609




                                     - 7 -



THE MERCHANTS TRUST PLC

Twenty Largest Equity Holdings as at 31 July 2003


                                      Valuation          % of
                                       31.07.03         Total
                                         £'000s       Assets*      Principal Activities

BP                                       38,553          8.45      Oil and Gas
HSBC                                     36,960          8.10      Banking
GlaxoSmithkline                          26,224          5.75      Pharmaceuticals
Shell Transport & Trading                21,734          4.77      Oil and Gas
Barclays                                 19,011          4.17      Banking
Lloyds TSB                               14,152          3.10      Banking
Royal Bank of Scotland                   12,299          2.70      Banking
BT                                       11,451          2.51      Telecommunications
Alliance & Leicester                     10,746          2.36      Banking
Gallaher                                 10,349          2.27      Tobacco
Imperial Tobacco                          9,780          2.14      Tobacco
Bradford & Bingley                        8,731          1.91      Banking
Prudential                                8,127          1.78      Life assurance
Abbey National                            8,119          1.78      Banking
Wilson                                    8,103          1.78      Construction and building maintenance
Diageo                                    7,944          1.74      Beverages
Rank                                      7,632          1.67      Leisure
Slough Estates                            7,334          1.61      Real estate
Land Securities                           7,138          1.57      Real estate
Boots                                     6,747          1.48      Retailing

                                        281,135         61.65


* Total Assets include current liabilities






The Merchants Trust PLC

Portfolio Analysis as at 31 July 2003


                                                    UK               Other         Total
                                                     %                   %             %
Listed equities                                  101.6                   -         101.6
Unlisted equities
Net Current Liabilities                          (1.6)                   -         (1.6)
Total Assets                                     100.0                   -         100.0





                                     - 8 -



Note 1



The Returns per Ordinary Share have been calculated using a weighted average
number of shares in issue during the period of 102,103,936 shares.  (31 July
2003 - 102,103,936 shares; 31 January 2003 - 102,103,936 shares).



Note 2



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 period.



Note 3



The interim statement has been neither audited not reviewed by the Company's
auditors.  The interim statement has been prepared using the accounting policies
as those adopted in the annual accounts for the year ended 31 January 2003.  The
financial information for the year ended 31 January 2003 has been extracted from
the statutory accounts for that year which have been delivered to the Registrar
of Companies.  The auditor's 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 Interim Report will be sent to Shareholders shortly and made available to
the public at the Registered Office of the Company, 155 Bishopsgate, London,
EC2M 3AD.







For further information, please contact:



Allianz Dresdner Asset Management (UK) Limited
Simon White, Head of Investment Trusts
Tel: [phone]



or


Allianz Dresdner Asset Management (UK) Limited
Nigel Lanning, Fund Manager
Tel: [phone]






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