Final Results

Mercury Grosvenor Trust PLC
26 February 2002

                                                                26 February 2002



                          MERCURY GROSVENOR TRUST plc


           Preliminary announcement of results in respect of the year
                             ended 31 December 2001



HIGHLIGHTS


-  Net assets per share fell by 7.5% from 411.0p to 380.3p, compared with falls
   of 15.4% in the FTSE All-Share Index and of 17.0% in the FTSE SmallCap Index 
   (capital only).

-  Total additional investments of £22.7 million (£18.9 million to new 
   investments and £3.8 million to follow-on investments). (2000: £13.0 million).

-  Realisations totalled £19.5 million (2000: £24.6 million).

-  Profit before taxation of £3.1 million (2000: £6.5 million).

-  Earnings per share of 9.61p (2000: 17.89p).

-  Dividend of 8.00p per share (2000: 14.50p).


David Bucks, the Chairman, comments:

'The Company achieved a solid performance in the context of a difficult year for
both equity values and the world economy.

'The Board is recommending a final dividend for the year ended 31 December 2001
of 8.00p per share (2000: 14.50p). The reduction in dividend reflects a
corresponding reduction in revenue for the year, compared with 2000, resulting
both from lower rates of interest on uninvested cash and from net provisions
taken on previously accrued interest on loan stocks of companies in the
portfolio.

'None of the Company's ordinary shares was bought back during the year. At the
forthcoming Annual General Meeting the Directors will again be seeking a renewal
of the power to purchase shares in the market for cancellation.

'Uncertainties, both in the general economic outlook and in the performance of
major stock markets, are likely to persist to a greater or lesser degree during
the current year; however these uncertainties should also generate investment
opportunities.  The Company remains liquid and, at the year end, had cash
resources of £18.9 million plus £25.0 million in unused borrowing facilities.
It therefore continues to be in a good position to take advantage of those
investment opportunities as they arise.'


Commenting on the outlook for the Company,  Ian Armitage, Chief Executive of
HgCapital, the Investment Manager, notes:

'The past year has been a sobering time for all investors.  The wild optimism
that was a feature of public markets in 1999 and early 2000 has been tempered by
a cold dose of reality in 2001.  This change of sentiment was, in our opinion,
predictable and welcome.

'A bear market and a depressed economy represent fertile ground for our form of
very active private equity investing.  We expect a wave of consolidation and
rationalisation across Europe in which LBOs will play a significant role.
Further, a focus on increasing productivity and cutting costs will lead managers
to restructure their operations by applying more technology and/or concentrating
on core competencies and outsourcing other activities.  Our investment strategy,
which is focused on sectors and companies that are experiencing long-term growth
and on companies where significant operational improvement can be unlocked, is
well-placed to take advantage of the current environment'.


For further information please contact:

Ian Armitage - Chief Executive, HgCapital
Tel:  [phone]


Nigel Webb - Corporate Communications, Merrill Lynch Investment Managers
Tel:  [phone]


Fergus Wylie - Cubitt Consulting
Tel:  [phone]




REVENUE STATEMENT
for the year ended 31 December 2001
                                                                            Year ended            Year ended
                                                                      31 December 2001      31 December 2000
                                                                                 £'000                 £'000
                                                                              (audited)            (audited)
                                                                 Note

Income                                                             4              3,893                7,332
              

Expenses:
Investment management fee                                          6              (449)                (453)
Other expenses                                                                    (329)                (368)

Net return before finance costs and taxation                                      3,115                6,511
Interest payable and similar charges                                               (22)                 (32)

Revenue on ordinary activities before taxation                                    3,093                6,479
Taxation on ordinary activities                                                   (673)              (1,856)

Return on ordinary activities after taxation                                      2,420                4,623
Dividend                                                                        (2,015)              (3,652)


Transfer to reserves                                                                405                  971

Earnings per ordinary share:
- calculated on weighted average shares                                           9.61p               17.89p
- calculated on actual shares                                                     9.61p               18.35p

Dividend per ordinary share                                        5              8.00p               14.50p
  





TOTAL RETURN PER ORDINARY SHARE - calculated on weighted average shares
for the year ended 31 December 2001

                                                                            Year ended           Year ended
                                                                           31 December          31 December
                                                                                  2001                 2000
                                                                             (audited)            (audited)

Earnings                                                                         9.61p               17.89p
Capital return                                                                  (32.28p)             59.07p
Total return per ordinary share                                                 (22.67p)             76.96p



BALANCE SHEET
as at 31 December 2001
                                                                     31 December 2001      31 December 2000
                                                                                £'000                 £'000
                                                                            (audited)             (audited)  
Fixed assets
Investments
- Listed                                                                       14,238                16,452
- Unlisted at directors' valuation                                             60,970                62,672
                                                                               75,208                79,124

Current assets
Debtors                                                                         4,371                 4,555
Government securities                                                          18,548                15,508
Cash                                                                              313                 9,039
                                                                               23,232                29,102

Creditors - amounts falling due within one year                                 2,645                 4,705
Net current assets                                                             20,587                24,397
Net assets                                                                     95,795               103,521

Capital and reserves
Share capital                                                                   6,296                 6,296
Share premium                                                                  14,123                14,123
Capital redemption reserve                                                      1,248                 1,248
Capital reserve - realised                                                     68,723                63,914
Capital reserve - unrealised                                                    2,388                15,328
Revenue reserve                                                                 3,017                 2,612
Total equity shareholders' funds                                               95,795               103,521


Net asset value per ordinary share                                             380.3p                411.0p




CASH FLOW STATEMENT
for the year ended 31 December 2001
                                                                             Year ended           Year ended
                                                                       31 December 2001          31 December
                                                                                  £'000                 2000
                                                                              (audited)                £'000
                                                                                                   (audited)


Net cash flow from operating activities                                           2,043                3,517

Returns on investments and servicing of finance
Interest received                                                                   104                   51

Taxation                                                                          (493)                (163)

Capital expenditure and financial investment
Cost of purchase of fixed asset investments                                    (22,696)             (13,008)
Proceeds from the sale of fixed asset investments                                19,470               24,645

Net cash (outflow)/inflow for capital expenditure and
  financial investment                                                          (3,226)               11,637

Equity dividends paid                                                           (3,652)              (2,075)

Financing
Purchase of ordinary shares                                                           -              (2,575)
Net cash outflow from financing                                                       -              (2,575)

Net cash (outflow)/inflow before management of
  liquid resources                                                              (5,224)               10,392

Management of liquid resources
Purchase of Government securities                                              (50,687)             (48,994)
Sale/redemption of Government securities                                         47,185               47,478

Net cash outflow from management of liquid
  resources                                                                     (3,502)              (1,516)

(Decrease)/increase in cash                                                     (8,726)                8,876






RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW
FROM OPERATING ACTIVITIES
                                                                         Year ended            Year ended
                                                                   31 December 2001      31 December 2000
                                                                              £'000                 £'000
                                                                          (audited)             (audited)


Net return before finance costs and taxation                                  3,115                 6,511

Investment management fee and finance costs capitalised                     (1,412)               (1,455)

Interest receivable                                                           (104)                  (51)

Decrease/(increase) in accrued income                                           687               (1,198)

(Decrease)/increase in creditors                                               (67)                   188

Effective yield adjustment                                                      462                   371

Tax on investment income included within gross income                         (638)                 (849)

Net cash flow from operating activities                                       2,043                 3,517




GEARING


The Company had nil gearing at 31 December 2001 (2000: nil).



NOTES ON THE PRELIMINARY RESULTS


1.   Principal activity

     The principal activity of the Company is that of an investment trust within 
     the meaning of section 842 of the Income and Corporation Taxes Act 1988.


2.   Basis of preparation

     The preliminary financial statements have been prepared on the basis of the 
     accounting policies set out in the Company's financial statements as at 
     31 December 2001.


3.   Taxation

     Deferred taxation is provided using the liability method on all timing 
     differences to the extent that they are expected to reverse in the future
     without being replaced, calculated at the rate at which it is anticipated 
     the timing differences will reverse.


4.     Income                                                                     2001                  2000
                                                                                 £'000                 £'000

       Income from investments
       Franked investment income                                                   205                    19
       UK unfranked investment income                                            2,622                 5,570
       Stock dividends                                                               -                    22
       Overseas dividends                                                            6                    43
                                                                                 2,833                 5,654

       Other income
       Gilt interest                                                               954                 1,534
       Deposit interest                                                            104                    51
       Other fees                                                                    2                    93
                                                                                 1,060                 1,678
       Total income                                                              3,893                 7,332


       Total income comprises:
       Dividends                                                                   211                    84
       Interest                                                                  3,680                 7,155
       Other fees                                                                    2                    93
                                                                                 3,893                 7,332


       Income from investments
       UK listed                                                                   205                    19
       Overseas                                                                      6                    43
       Unlisted                                                                  2,622                 5,592
                                                                                 2,833                 5,654

5.   Dividend

     The directors have declared a final dividend of 8.00p per share 
     (2000: 14.50p). The dividend will be paid on 23 April 2002 to shareholders 
     on the register of members at the close of business on 8 March 2002. 
     The shares will be quoted ex-dividend on 6 March 2002.


6.   Investment management fee

                                            Year ended 31 December                 Year ended 31 December
                                                              2001                                   2000
                                                             £'000                                  £'000
                                                         (audited)                              (audited)

                                       Revenue    Capital    Total            Revenue    Capital    Total

Investment management fee                  382      1,146    1,528                386      1,158    1,544

Irrecoverable VAT thereon                   67        200      267                 67        201      268

                                           449      1,346    1,795                453      1,359    1,812




Investment management fees are charged 25% to the revenue account and 75% to
capital reserve.


7.   Ordinary shares

                                                                31 December 2001      31 December 2000

The weighted number of ordinary shares in issue during each
period, on which the return per ordinary share was calculated,
was:                                                                  25,186,755            25,837,319

The number of ordinary shares in issue at the end of the period
was:                                                                  25,186,755            25,186,755

Share price                                                               294.0p                356.5p


8.   Publication of non-statutory accounts

     The financial information contained in this preliminary statement does not 
     constitute statutory accounts as defined in section 240 of the Companies 
     Act 1985.


9.   The figures set out above have been reported upon by the auditors. The 
     comparative figures are derived from the audited financial statements of 
     Mercury Grosvenor Trust plc for the year ended 31 December 2000. The 
     reports of the auditors for the years ended 31 December 2000 and 2001 
     contain no qualification or statement under section 237(2) or (3) of the
     Companies Act 1985.


10.  The full annual report and financial statements for the year ended 
     31 December 2001 will be filed with the Registrar of Companies after the 
     Annual General Meeting.


11.  The Annual General Meeting of the Company will be held at the offices of 
     HgCapital, Third Floor, Minerva House, 3-5 Montague Close, London SE1 9DH 
     on Thursday 11 April 2002 at 12.00 noon.


12.  Copies of the annual report will be sent to members shortly and will be
     available from the registered office, c/o The Company Secretary, Mercury 
     Grosvenor Trust plc, 33 King William Street, London EC4R 9AS. This report 
     will also be available on the Merrill Lynch Investment Managers' website 
     at www.mlim.co.uk/its





26 February 2002
33 King William Street
London EC4R 9AS



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