Interim Results - 6 Months to 31 January 2000

Manchester & London Inv Tst PLC
22 February 2000



ANNOUNCEMENT OF THE INTERIM GROUP RESULTS

The Directors Announce the Unaudited Interim Figures
For the six months ended 31st January 2000

Consolidated Statement of Total Return (incorporating the revenue account)
For the six months ended 31st January 2000

                               Six months ended         Six months ended
                               31st January 2000       31st January 1999 
                                                           (Restated)

                            Revenue Capital   Total  Revenue  Capital   Total
                              £'000   £'000   £'000    £'000    £'000   £'000

Loss on investments               -  (2,921) (2,921)       -  (5,612)  (5,612)

Income                          257       -     257      372       -      372
Investment management fee       (27)    (51)    (78)     (36)    (66)    (102)
Other expenses                  (62)      -     (62)    (109)      -     (109)

Net return before finance costs
and taxation                    168   (2,972) (2,804)    227   (5,678) (5,451)

Interest payable and similar
 charges                         (4)      (6)    (10)   (210)     (98)   (308)

Return on ordinary activities
before taxation                 164   (2,978) (2,814)     17   (5,776) (5,759)

Taxation on ordinary activities   -        -       -       -        -       -  

Return on ordinary activities
after taxation for the financial
period                          164   (2,978) (2,814)     17   (5,776) (5,759)

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

Return attributable to
equity shareholders             136   (2,978) (2,842)    (11)  (5,776) (5,787)

Dividends in respect of equity
shares                          (38)       -     (38)    (37)       -     (37)

Transfer to (from) reserves      98   (2,978) (2,880)    (48)  (5,776) (5,824)

Return per ordinary share (pence)
Basic                          1.81   (39.71) (37.90)  (0.15)  (77.01) (77.16)

Fully diluted                  1.57   (28.42) (26.85)   0.16   (55.12) (54.96)


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. 

Dividends received are now shown net of income tax credits. The relevant figures
for the previous period have been restated on the same basis. 

The statement for the period ended 31st January 2000 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 0.5p (1999: 0.5p)

The ordinary interim dividend is payable on 4th May 2000 to shareholders on the
Register at the close of business on 10th March 2000.


Summarised Consolidated Balance Sheet
At 31st January 2000                             As at             As at
                                           31st January 2000  31st January 1999
                                                 £'000             £'000

Investments                                     26,285            34,728

Net current liabilities                         (1,029)           (2,560)

Net Assets                                      25,256            32,168

Non equity interests - Preference shares          (744)             (744)

Equity Interests - Ordinary shares              24,512            31,424

Net Asset value per share

Ordinary shares basic                           326.83 p        418.99 p

Ordinary shares fully diluted                   241.05 p        307.01 p


Notes :

The accounts at 31st January are unaudited and are not the Company's statutory
accounts.  The information for the period ended 31st January 1999 does
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.


CHAIRMAN'S COMMENTS

The Directors have declared an unchanged interim dividend of 0.5p per ordinary
share payable on 4th May 2000 to shareholders on the register as at 10th March
2000.  The Directors expect to at least maintain a final dividend of lp to make
a total unchanged dividend for the current financial year of not less than  1.5p
(1999 1.5p).

During the half year to 31st January 2000 the UK stock market has continued to
diverge as the flow of investment funds has become concentrated almost entirely
upon the technology, media and telecom sectors.  As a result almost all the
other sectors which make up the constitution of the FTSE 100 Index have suffered
and accordingly our net asset value has declined from 268.5p to 241p at 31st
January 2000.  The decline results from a further fall in the value of our
holding of warrants in Bae Systems (formerly British Aerospace) and the
shareholding in Andrews Sykes.

A combination of weighting and the internet are creating the divergent trends
which are distorting the FTSE 100 Index.  In particular, tracker funds which are
obliged to maintain shareholding levels at a percentage of the Index
constituents have, therefore become sellers of shares in large sections of
services and industry, thus creating a bear market in the shares of companies
which continue to trade satisfactorily.  The other side of the coin is the
opposite effect upon investments in the technology, media and telecom sectors
which are relying on very substantial and prolonged earnings growth in the
future.

The cash balance of £3m, which was held in August 1999 (resulting principally
from the sale of our holding in Powerscreen) has been substantially invested in
Pearson plc which is one of the leading media companies and I am pleased to
report that there has been an appreciation of 42% in our holdings since
purchase.  Such is the pace of consolidation in this sector that there seems to
be further potential.  We have also purchased a holding of 1 million shares in
Transport Development Group plc which is considered to be a much under valued
stock in the transport industry where new management will hopefully, make a
significant impact and bring about a re-rating.
                  
15th November 2000 is the last date on which we will be able to exercise our
warrants in Bae Systems.  The size of our holding will necessitate a reduction
in order not to breach the 15% limit imposed by Section 842 of the Income &
Corporation Taxes Act 1988, but in any event this holding is under constant
review.  It is disappointing that our original investment in Bae Systems has
proved to be so volatile.  Between 1994 and 1998 the company's sustained
recovery created a considerable increase in the value of our portfolio but, 
with the benefit of hindsight, the expensive Marconi acquisition has depressed
the share price in the last 12 months.  We will in due course decide whether to
retain a holding of allowable size.

Market divergence, referred to earlier in this statement has contributed to a
further erosion of the Andrews Sykes price which is our second largest holding.
We are disappointed that the management of this company, having engineered an
impressive profit recovery during the last few years, has since failed to pursue
a policy of maximising shareholder value.  Whilst we will retain our investment
for the time being, we are unlikely to remain long term holders.  In the
meantime, however, we remain confident that debt repayment from a strong cash
flow will accelerate earnings growth during the current year which may create
circumstances which will enable us to move funds to new investments.

It is difficult to forecast when there will be a reversal of the current trends
in the market, but we do not believe that the concept of value investing will be
for ever out of fashion.


Carlisle of Bucklow
Chairman