Interim Results

Manchester & London Inv Tst PLC
12 March 2001


Manchester & London Investment Trust plc

Announcement of the interim group results

The Directors announce the unaudited interim figures
For the six months ended 31st January 2001 


Consolidated Statement of Total Return (incorporating the revenue account)
For the six months ended 31st January 2001        (unaudited)

                                Six months ended          Six months ended
                                31st January 2001         31st January 2000
                           Revenue  Capital    Total  Revenue  Capital    Total
                             £'000    £'000    £'000    £'000    £'000    £'000

(Loss)/profit on sale of 
  investments                    -    (190)    (190)        -      107      107
(Decrease) in unrealised 
  appreciation                   -  (6,223)  (6,223)        -  (3,028)  (3,028)
Negative goodwill realised              307      307        -        -        -
Investment income              318        -      318      257        -      257
Investment management fee     (31)     (57)     (88)     (27)     (51)     (78)
Other expenses               (114)        -    (114)     (62)        -     (62)

Net return before finance 
  costs                        173  (6,163)  (5,990)      168   (2,972) (2,804)

Interest payable and similar 
  charges                      (4)      (8)     (12)       (4)      (6)    (10)

Return on ordinary activities  169  (6,171)  (6,002)       164  (2,978) (2,814)

Dividends in respect of 
  non-equity shares
  - preference shares         (28)     (28)     (28)      (28)        -    (28)

Return attributable to 
  equity shareholders          141  (6,171)  (6,030)       136  (2,978) (2,842)

Dividends in respect of 
  equity shares               (45)        -     (45)      (38)        -    (38)

Transfer to (from) reserves     96  (6,171)  (6,075)        98  (2,978) (2,880)

Return per ordinary 
  share (pence)
Basic                         1.88  (82.28)  (80.40)      1.81  (39.71) (37.90)


Fully diluted                 1.61  (58.90)  (57.29)      1.57  (28.42) (26.85)


The revenue column of this statement is the consolidated profit and loss account
of the group. 

All revenue and capital items in the above statement derive from continuing
operations.

The statement for the period ended 31st January 2001 is unaudited and is not the
Company's statutory statement. 

Dividends per preference share accrue at the rate of 7.6% p.a.

Interim dividend proposed per 25p ordinary share 0.6p (2000: 0.5p)

The ordinary interim dividend is payable on 17th May 2001 to shareholders on the
Register at the close of business on 23rd March 2001.



Consolidated Balance Sheet
At 31st January 2001   (unaudited)

                             As at 31st January 2001   As at 31st January 2000
                                   £'000       £'000         £'000       £'000
Fixed Assets
Investments                                   29,080                    26,285

Current Assets
   Debtors                            88                       451
   Cash at bank                        3                        17
                                      91                       468
Creditors
Amounts falling due within 
  one year                       (1,914)                   (1,497)

Net Current Liabilities                      (1,823)                   (1,029)

Total assets less current 
  liabilities                                 27,257                    25,256

Creditors
Amounts falling due after more 
  than one year                              (5,413)                         -

Net Assets                                    21,844                    25,256  
 

Capital and Reserves

Called-up Share Capital                        2,619                     2,619
Capital reserves                              16,983                    20,428
Revenue reserve                                2,242                     2,209

Total shareholders' funds                     21,844                    25,256

Equity interests 
  - Ordinary shares                           21,100                    24,512
Non-equity interests 
  - Preference shares                            744                       744
                                              21,844                    25,256

Net Asset Value per share

Ordinary shares - basic                       281.3p                    326.8p

Ordinary shares - fully diluted               208.5p                    241.0p


Notes:

The accounts at 31st January are unaudited and are not the Company's statutory
accounts.  The information for the period ended 31st January 2000 does not
constitute statutory accounts but has been extracted from the latest published 
audited accounts which have been filed with the Registrar of Companies. The 
report of the auditors on those accounts contained no qualification or statement
under Section 237(2) or (3) of the Companies Act 1985.


Consolidated Cash Flow Statement

For the six months ended 31st January 2001   (unaudited)

                                      Six months ended      Six months ended
                                     31st January 2001     31st January 2000
                                     £'000       £'000     £'000       £'000

Operating activities

Net dividends and interest 
  received from investments            265                   286
Deposit interest received               59                     -
Other income                            23                     -
Investment management fees paid       (94)                   (69)
Other cash payments                   (50)                   (91)

Net cash inflow operating activities             203                     126


Servicing of finance

Interest paid                          (8)                   (21)
Preference dividend paid              (28)                   (28)

Net cash outflow from servicing 
  of finance                                     (36)                   (49)


Taxation
                                     
UK taxes recovered                                  -                    261


Financial investment

Purchase of investments            (8,135)                  (5,494)
Sale of investments - including 
redemption of Toronto - Dominion
Bank loan notes acquired with the 
purchase of Galleon Securities
Limited                             11,298                  7,037

Net cash inflow from financial 
  investment                                    3,163                  1,543


Acquisition of subsidiary undertaking

Purchase of Galleon Securities Limited 
- repayment of indebtedness to
Manchester & Metropolitan investment 
Limited and acquisition costs       (5,997)                      -
Overdraft acquired with subsidiary    (480)                      -
                                                           (6,477)          -

Equity dividend paid                                         (112)       (75)

(Decrease) increase in cash                                (3,259)      1,806


Reconciliation of net cash flow 
to movement in net debt

(Decrease) increase in cash in period                      (3,259)      1,806
Non cash loan transaction - loan note 
issued on acquisition of Galleon
Securities Limited                                         (5,413)           -
Net funds (debt) at beginning of 
the period                                                  1,512      (2,762)

Net debt at end of the period                             (7,160)        (956)



Manchester & London Investment Trust plc 
Major Holdings

At 31st January 2001

                                     Market Value £'000       % of Portfolio

BAE SYSTEMS Ordinary 2.5p                 12,065                  41.49
Pearson Ordinary 25p                       4,147                  14.26
TDG Ordinary lp                            4,041                  13.90
Andrews Sykes Group Ordinary 20p           4,035                  13.88
AEA Technology Ordinary 10p                2,592                   8.91
Paterson Zochonis Ordinary and 
  'A' Ordinary l0p                         1,143                   3.93
                                                                
Largest 6 Holdings                        28,023                  96.37



Manchester & London Investment Trust plc

CHAIRMAN'S STATEMENT

The main feature of both UK and US stock markets during the six months ended
31st January 2001 was the continued retreat in the prices of TMT stocks, and  
growing uncertainty over corporate profitability.  Apart from an investment in 
Pearson, we have not been affected by the decline in TMT stocks, many of which
have suffered falls of over 50%. Whilst Pearson has not been immune to the
trend, our investment is still showing a profit over cost and the company
remains an undisputed leader in the media and the educational industries which
we continue to believe has sound long term prospects.

The value of the portfolio continued to be adversely affected during the period 
under review, mainly because of uncertainties surrounding our main holdings.  
The BAE SYSTEMS share price remained relatively weak on uncertainty about the 
integration of the Marconi Electronic Systems acquisition, Pearson was
undermined by the general malaise in the TMT sector, Andrews Sykes continued to
be depressed by the irrational decision of the board to discontinue the payment
of dividends and substitute a share buy back operation, AEA Technology suffered
from a profits warning and TDG drifted downwards from our initial purchase price
awaiting positive news from the new management team. In the meantime, however,
our revenue has increased compared with last year, and your Board feels
sufficiently confident to increase the interim dividend to 0.6p and expect to at
least maintain the final dividend of 1.5p.  The interim dividend will be paid on
17th May 2001 to shareholders on the Register as at 23rd March 2001.

I think it is appropriate for me to elaborate on events since 31st January in  
view of the subsequent movement in share prices affecting the aforementioned 
stocks.  Whilst the overall net asset value has been substantially  maintained,
there have been some material share price changes (within the portfolio) which I
feel warrant some comment.

BAE SYSTEMS, where we still held 4m shares at 31st January as a result of
converting our holding of warrants (which expired in November 2000) suffered
from a profits warning issued in January prior to the 2000 year end results.
This unexpected setback resulted from a gap in the substantial order book 
(£41bn), but the consensus opinion seems to reflect a growing belief that the 
24 month decline in the share price (from its peak of 540p) may now have 
reversed itself. Whilst we intend to reduce our overweight holding, it may pay
to exercise continued patience.

AEA Technology is a major disappointment within the portfolio, having recently 
issued a second profits warning which raises serious doubts about the management
capabilities.  The best assets within the group are its railway services and
nuclear environment companies but, in the absence of an opportunistic bid, 
there seems to be little prospect of a worthwhile recovery.  We believe the
problems affecting AEA Technology are principally managerial as opposed to
deteriorating market conditions and, for this reason, we are unlikely to retain
this holding although we are awaiting the full year results.

The price of Andrews Sykes has improved by 15% (to 78p) reflecting the fact 
that the company has raised the price it is prepared to pay in order to
implement its share buyback programme.  We continue to press the board to
maximise shareholder value by seeking a buyer for the company and we are
slightly more optimistic that our view will prevail as other hire service   
companies are succumbing to consolidation pressures within the sector.

We have increased our holding in TDG to a level close to the maximum allowable 
for regaining Investment Trust status, which we intend to achieve next year. 
The transport business is polarising between carriers and information
technology-led contract logistics operators of supply chain management. The
transformation of TDG is now well under way and we believe that in three year's
time the company will be one of the leading European contract logistics
companies.

The £6m acquisition of Galleon Securities Limited was completed in August 2000 
for a consideration of £5.4m (a discount of 10%) funded by the issue of an 
interest free unsecured loan note repayable in August 2002.  As previously 
explained to shareholders, in order to facilitate the acquisition of Galleon
Securities Limited, we entered a period in which the Company will not qualify 
for investment Trust status. I wish to emphasise that this decision will not
adversely affect the interests of shareholders whilst unused tax losses are
available.

Whilst the UK and US stock markets are undoubtedly in a 'bear' phase, we do not
believe that the consequences will be cataclysmic although they could be
protracted.  There is no doubt that whilst many investors (both individual
and institutional) have suffered severe losses on TMT stocks, there is unlikely 
to be a historic style liquidity crisis; monetary policy is now much more
sophisticated and is likely to pre-empt such disasters.  The problems ahead are
more likely to be a continuation of intense pressure on profit margins,
accompanied by volatility in the major currencies, particularly the dollar which
could weaken sharply in order to correct the huge US trade deficit.

Despite the current uncertainties, which may well continue to depress investor
confidence for some time yet, we feel slightly more confident about the
prospects for our portfolio, although we have not yet achieved our objective of
re-balancing the asset into a hard core of selected equities.

P.H.A. Stanley F.C.A.
Chairman                                                  12th March 2001