Manchester&lon. Regulatory News (MNL)

Manchester and London Investment Trust plc ("MLIT" or the "Company")

ANNOUNCEMENT OF THE UNAUDITED INTERIM GROUP RESULTS

For the six months ended 31 January 2013

The Directors announce the unaudited interim Company results for the sixmonths ended 31 January 2013. The key highlights for the period were:

- The Net Asset Value per share has increased by 18.4 per cent to 398.1p, an

over performance of 6.1 per cent on the performance of our benchmark index;

- The Directors have declared an interim dividend of 5.5p per share to be paid

on 29 April 2013, to all shareholders on the Register at the close of business

on 12 April 2013. Chairman's Statement Performance The market saw an above average increase during the period with arise in the FTSE Allâ€Share of 12.3 per cent. The Company's net assets pershare increased by 18.4 per cent over the half year period, an outperformancerelative to our benchmark of 6.1 per cent. Whilst this seems a reasonableperformance, we would remind you that our FY 2012 performance was verydisappointing so we still have a long road back to recover our FY 2012relative losses.

Dividend

The Board has declared an interim dividend of 5.5p per sharepayable on 29 April 2013, which is an increase on the interim dividend for theyear ended 31 July 2012 of 5.8 per cent. We are aware of how importantdividends are to our shareholders.

Outlook and Strategy

Most commentators would agree that the market has been artificially inflatedby global quantitative easing ("QE") so the questions one has to ask oneselfnow are:

1. Does the Federal Reserve ignore potential M3 growth of ~7 percent and continue with QE, which must surely lead to inflation?

2. If the Federal Reserve does continue with QE, where is thetipping point when the demand from the Federal Reserve is outweighed by theextra supply from bond investors fearful of financial repression?

3. What are the implications of a sell down out of debt and are weall so sure that is definitely good for equities?

4. If QE has artificially lifted asset prices are we all so certainthat when it stops asset prices will not drop back, even if the global economyis recovering by then?

In response, the market bulls promote the following:

1. The European situation is now largely solved. Sadly, we verymuch doubt that this is the case. The base case economic forecasts for Europeare woeful, the economies of even some of the core countries require materialsupply side restructuring and the electorate are now tired of "austerity". Itappears that Europe (exc. Northern Europe) does not want to face reality so weare concerned that matters will have to get worse before they get better. Inreality, unless Germany sanctions a transfer union then the single currencysystem of a collective of divergent European economies is unlikely to work.

2. The Chinese, Koreans and all Middle Eastern governments willcontinue to act rationally. I suggest a re-read of the beautiful fable of theFrog and the Scorpion by Aesop to provide our views on this premise.

3. The liquidity, provided by the global central bank's monetary printing willoutweigh the ongoing deleveraging cycle, will be continued in the face ofinflation and, even if it were to be stabilised, would have little detrimentaleffect on asset markets. Naturally, when within unchartered waters we are uncertain as tothe future outlook but we do believe that the quantum of such risks warrantssome caution. In conclusion, in the short term, we believe that markets mayhave got ahead of themselves so we are treading somewhat more cautiously forthe time being. In the more medium term, we do believe that globally we aremoving further towards the end of the crisis and hence investment in liquidglobal companies with attractive cash generation and growth prospects that canbenefit from such an environment should be rewarded. P H A Stanley, Chairman. March 2013. Manager's Report Manager's Review Performance over period

We have outperformed but we still have a long way to claw back fromwhence we fell, especially relatively.

The following positions went well for us:

1. I can assure you that our concentrated exposure to PZ Cussonsplc ("PZC") is an issue of constant debate with shareholders and the board. Webelieve that the next few years will see a geographical land grab by themajors as further inaccessible or previously unattractive markets open up.Sadly, we are concerned that without increased executive appointments PZC maywell miss this opportunity that is surely theirs for the taking. However, postthis stage, we would expect a round of consolidation which will see a numberof the smaller and more medium sized operators gobbled up by a dozen or soglobal gorillas. We actually sold a small part of our holding in PZC when thestock entered a "zone of fair & full valuation." Let me assure you, should PZCenter the "zone of overvaluation" the stock will be disposed of completely. 2. Our overweight positioning in the Mining sector was kinder to usfor this period with each of Vedanta Resources plc, Xstrata plc, Glencore plcand Rio Tinto plc generating returns of over 20 per cent. Xstrata plc was thebest performing share in the portfolio over the period with a return of 39.5per cent. We are hopeful that the deal with Glencore plc will proceed and wewill then be very happy to be a material (to us) holder of Glenore plc.

3. Jardine Matheson Holdings Ltd returned 23.5 per cent in theperiod and remains our favoured method of exposure to the growth of the Asianconsumer.

Sadly, there are always investment decisions that go less well andthe most material of which during the period are as follows:

1. As markets rose, we decided to start to relay a number of marketshorts via short position predominantly on the S&P 500 future. We do believethat the S&P is one of the more expensively valued global indices and hence,coupled with its liquidity and tight spreads, it is attractive as a tool forshorting. We also maintain that laying on shorts when the market is relativelyhigh to its 52 week averages is sensible and we have often used it to maintainour net aggregate long to net asset levels within a band of 80 per cent to 120per cent. Sadly, with hindsight, it appears that we may have been too earlywith our concerns that the market had travelled too far as we started layingon shorts at the 1280 level and the market is now some 21.1 per cent abovethis. We do now fear that central bankers have decided to throw caution to thewind and print until their problems disappear in a tsunami of debt repression.Optically, our loss from these positions placed on in this period would haveadded an extra 3.4 per cent to our performance had we not placed thesepositions. However, that is too simplistic a way to review these positions assome were equal weight counters against other long positions that have, acrossthe portfolio, performed well. It is important to note that our position ofnet longs to net assets only dropped below 100 per cent in December 2012 whenthe S&P was only 10 per cent below what it is now. 2. The two stocks that performed notably poorly for us in theperiod were BG Group plc ("BG") which was down 11.3 per cent and HMS HydraulicMachines & Systems Group plc ("HMS") which was down 4.6 per cent. We believethat BG is materially undervalued in respect of its net asset value and ifthis remains the case we could see a major making a move for the stock. HMShas been a disappointment again as concerns regarding its order log grow dailyand the company has this time elected not to buy back its own shares as theyweaken. Current positioning The portfolio has remained largely unchanged over the period andsince the period end, and we would expect it to remain so over the nexthalfâ€year period. We are not enamoured with the churning of portfolios whenthere is no medium term requirement to do so. Our preference is to adjust ourgearing to the market by utilising index based contracts for difference whichdo not incur stamp duty. During the period we disposed of Schroders plc, Blackrock GreaterEurope Investment Trust plc and Aberdeen Asset Management plc. Post the periodend we also disposed of Sportingbet plc which received a takeover offer and weanticipate selling down our remaining holding in Valiant Petroleum Plc whichhas also received an approach.

Investors will know that we tend to invest using four strategiesand, at the period end, the portfolio had the following weightings to eachstrategy:

Affordable Growth:85.5 per cent;

Value:

0.9 per cent (represented by Lloyds Banking Group plc);

Event Driven:8.1 per cent (represented by Xstrata plc, Valiant Petroleum plc and Sportingbet plc); and

Special Situations:5.5 per cent (represented by BP plc and Northern Petroleum plc).

Gearing

By the interim period end, the portfolio's net long over net assetposition had been reduced to a level of 80.0 per cent.

Post the period end, we have been hedging our market exposurefurther on the basis that we are concerned that the market may be somewhatover buoyant on a short term basis due to the reasons detailed at thecommencement of this section.

In conclusion, we remain focused on investing in equities which areliquid and are participating in global growth via investment in cashgenerative enterprises. We prefer companies with short working capital cycles,strong market positions with an understandable business model, openinformation flow, long development cycles and attractive returns on capital.

For enquiries:

Manchester and London Investment Trust plc

Peter Thomas Company Secretary Tel: 0161 228 2389

Midas Investment Management Limited

Mark Sheppard Tel: 0161 228 1709 Trust Performance At At 31 January 31 July Percentage 2013 2012 ChangeNet assets attributable to EquityShareholders(£'000) 89,411 75,515

18.4

Net asset value per Ordinary Share (p) 398.1 336.3 18.4FTSE All-Share Index

3,287.4 2,927.3

12.3

Interim Dividend declared per ordinaryshare 5.5p 5.2p 5.8 Ex-dividend date 10 April 2013Record date 12 April 2013Payment date 29 April 2013

The price and net asset value is published in the Investment Companies Sector of the Financial Times.

Investment Portfolio As at 31 January 2013 Company Sector Value £'000 % of AssetsPZ Cussons plc Personal Goods 17,536 19.6Weir Group plc Industrial Engineering 8,702 9.7Smith and Nephew plc Medical Technology 8,471 9.5Xstrata plc Mining 8,312 9.3Standard Chartered plc Banks 7,059 7.9Rio Tinto plc Mining 6,649 7.4Syngenta International AG Agrisciences 6,484 7.3Diageo plc Beverages 6,320 7.1BG Group plc Oil & Gas Producers 6,049 6.8BP plc Oil & Gas Producers 5,706 6.4Unilever plc Food Producers & Processors 5,212 5.8 Jardine Matheson Holdings Ltd General Industrials 4,926 5.5Burberry Group plc Personal Goods 4,501 5.0Smiths Group plc General Industrials 3,080 3.4 Echo Entertainment Group Ltd Travel & Leisure 2,845 3.2Afren plc Oil & Gas Producers 2,696 3.0Vedanta Resources plc Mining 2,412 2.7HMS Group plc Industrial Engineering 2,106 2.4Trinity Exploration and Oil & Gas Producers 1,540 1.7Production plc Millennium & Copthorne Hotels Travel & Leisure 1,526 1.7plcValiant Petroleum plc Oil & Gas Producers 1,262 1.4Lloyds Banking Group plc Banks 1,111 1.2 Glencore International plc Mining 846 1.0Northern Petroleum plc Oil & Gas Producers 812 0.9Walter Energy Inc Mining 642 0.7Sportingbet plc Travel & Leisure 450 0.5Heritage Oil plc Oil & Gas Producers 333 0.4Sundance Resources Ltd Mining 135 0.2Joy Global Inc Mining 79 0.1SVM Global Fund plc Equity Investment Instruments 12 0.0New Britain Palm Oil Ltd Food Producers & Processors 6 0.0Listed Investments 117,820 131.8Other Investments 126 0.1 Cash and Net Current Assets (28,535) (31.9)Net Assets 89,411 100.0 Investment Objective

The investment objective of the Company is to achieve capital appreciationtogether with a reasonable level of income.

Investment Policy

Asset allocation and risk diversification

The Company's investment objective is sought to be achieved througha policy of actively investing in a diversified portfolio, comprising UK andoverseas equities and fixed interest securities. The Company seeks to investin companies whose shares are admitted to trading on a regulated market.However, it may invest in a small number of equities and fixed interestsecurities of companies whose capital is not admitted to trading on aregulated market. Investment in overseas equities is utilised by the Companyto increase the risk diversification of the Company's portfolio and to reducedependence on the UK economy in addressing the growth and income elements ofthe Company's investment objective. There are no maximum exposure limits toany one particular classification of equity or fixed interest security. TheCompany's investments are not limited to any one industry sector and itscurrent investment portfolio is spread across a range of sectors. The Companyhas no specific criteria regarding market capitalisation or credit ratings inrespect of investee companies. The Company intends to maintain a relatively focused portfolio,seeking capital growth by investing in approximately 20 to 40 securities. TheCompany will not invest more than 15 per cent of the gross assets of theCompany at the time of investment in any one security. However, the Companymay invest up to 50 per cent of the gross assets of the Company at the time ofinvestment in an investment company subject always to other restrictions setout in this investment policy and the Listing Rules. Exposure to investments may also be achieved through the use ofspecialist collective investment schemes and products, such as otherinvestment trusts or exchange traded funds, where specialised managementskills are necessary or where it would be uneconomic for the Company to investdirectly. However, the Company will not invest more than 10 per cent, inaggregate, of the value of its gross assets at the time of investment in otherlisted investment trusts or listed investment companies, provided that thisrestriction does not apply to investment in investment trusts or investmentcompanies which themselves have stated investment policies to invest no morethan 15 per cent of their gross assets in other listed investment trusts orlisted investment companies.

The Company intends to be fully invested whenever possible.However, during periods in which changes in economic conditions or otherfactors so warrant, the Investment Manager may reduce the Company's exposureto one or more asset classes and increase the Company's position in cashand/or money market instruments.

The Company may invest in derivatives, money market instruments and currencyinstruments including contracts for differences, futures, forwards andoptions. These investments may be used for hedging positions against movementsin, for example, equity markets, currencies and interest rates. In addition,these instruments will only be used for efficient portfolio managementpurposes. For the avoidance of doubt, the use of such instruments to engage intrading transactions is strictly against the Company's investment policy. TheCompany would not maintain derivative positions should the total underlyingexposure of these positions exceed one times the adjusted total capital andreserves.

Gearing

The Company may borrow to gear the Company's returns when the InvestmentManager believes it is in Shareholders' interests to do so. The Company'sinvestment policy and the Articles permit the Company to incur borrowing up toa sum equal to two times the adjusted total of capital and reserves. Anychange to the Company's borrowing policy will only be made with the approvalof Shareholders by special resolution.

Benchmark Index

Performance is measured against the FTSE All-Share Index. TheCompany sources index and price data from FactSet Europe Limited.

Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2013

(Unaudited) (Unaudited) (Audited) Six months ended Six months ended Year ended 31 January 2013 31 January 2012 31 July 2012 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Gains/(losses)oninvestmentsat fair value - 14,354 14,354 - (13,331) (13,331) - (22,488) (22,488) Trading income 572 - 572 - - - 934 - 934 Investmentincome 1,254 - 1,254 1,085 - 1,085 2,690 - 2,690 Gross return 1,826 14,354 16,180 1,085 (13,331) (12,246) 3,624 (22,488) (18,864) Expenses Management fee (75) (140) (215) (76) (141) (217) (145) (268) (413)Transactioncosts (9) (36) (45) - (31) (31) (8) (43) (51)Other expenses (107) (4) (111) (124) - (124) (250) - (250)Total expenses (191) (180) (371) (200) (172) (372) (403) (311) (714) Finance costs - (161) (161) (1) (184) (185) - (367) (367) Profit/(loss)beforetax 1,635 14,013 15,648 884 (13,687) (12,803) 3,221 (23,166) (19,945) Taxation - - - - - - - - - Profit/(loss)attributableto equityshareholders 1,635 14,013 15,648 884 (13,687) (12,803) 3,221 (23,166) (19,945) Earnings/(loss)pershare (p) 7.28 62.40 69.68 3.94 (60.95) (57.01) 14.34 (103.15) (88.81)

The total column of this statement represents the Group's Statement ofComprehensive Income, prepared in accordance with IFRS. The supplementaryrevenue and capital return columns are both prepared under guidance publishedby the Association of Investment Companies.

All items in the above statement are derived from continuing operations.

Consolidated Statement of Changes in Equity

For the six months ended 31 January 2013

Unaudited Six months ended 31 January 2013 Capital Capital Share Share Other Reserve Reserve Retained Capital Premium Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000Balance at 1 August 2012 5,614 35,132 (79) 8,146 22,916 3,786 75,515Profit for the period - - - - - 15,648 15,648Transfer of capital profits - - - 13,444 569 (14,013) -Ordinary dividend paid - - - - - (1,752) (1,752) 5,614 35,132 (79) 21,590 23,485 3,669 89,411 Unaudited Six months ended 31 January 2012 Capital Capital Share Share Other Reserve Reserve Retained Capital Premium Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000Balance at 1 August 2011 5,614 35,132 (79) 27,171 27,057 3,372 98,267Loss for the period - - - - - (12,803) (12,803)Transfer of capital losses - - - (9,984) (3,703) 13,687 -Ordinary dividend paid - - - - - (1,639) (1,639) 5,614 35,132 (79) 17,187 23,354 2,617 83,825 Audited Year ended 31 July 2012 Capital Capital Share Share Other Reserve Reserve Retained Capital Premium Reserves Unrealised Realised Earnings Total £'000 £'000 £'000 £'000 £'000 £'000 £'000Balance at 1 August2011 5,614 35,132 (79) 27,171 27,057 3,372 98,267Loss for the period - - - - - (19,945) (19,945)Transfer of capitallosses - - - (19,025) (4,141) 23,166 -Ordinary dividend paid - - - - - (2,807) (2,807) 5,614 35,132 (79) 8,146 22,916 3,786 75,515

Consolidated Statement of Financial Position

As at 31 January 2013 (Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2013 2012 2012 £'000 £'000 £'000 Non-current AssetsInvestments held at fair value throughprofit and loss 91,059 86,511

79,966

Derivative financial instruments - longs 26,887 21,407 23,443 Total 117,946 107,918 103,409 Current AssetsTrade and other receivables 29 18 81Derivative financial instruments - 46,257 28,618 34,637shortsCash and cash equivalents 11,305 8,365 11,432 57,591 37,001 46,150Gross Assets 175,537 144,919 149,559Current LiabilitiesBorrowings (6,631) (8,920) (9,899)Trade and other payables (1,712) (161) (176)Provisions for other liabilities and (1,770) -

(1,876)

charges

Derivative financial instruments (76,013) (52,013) (62,093) (86,126) (61,094) (74,044)Net Assets 89,411 83,825 75,515 Equity attributable to equity holdersOrdinary share capital 5,614 5,614 5,614Share premium 35,132 35,132 35,132Capital reserve - realised 23,485 23,354 22,916Capital reserve - unrealised 21,590 17,187 8,146Goodwill reserve (79) (79) (79)Retained earnings 3,669 2,617 3,786Total equity shareholders' funds 89,411 83,825

75,515

Net asset value per share (p) 398.1 373.3

336.3

Consolidated Statement of Cash Flows

For the six months ended 31 January 2013

(Unaudited) (Unaudited) (Audited) 31 January 31 January 31 July 2013 2012 2012 £'000 £'000 £'000Cash flow from operating activitiesProfit/(Loss) after tax 15,648 (12,803) (19,945)(Gains)/Losses on investments (13,787) 12,472 17,288Decrease in receivables 52 185 122 Increase/(Decrease) in payables 1,430 (62)

1,829

(Increase)/Decrease in derivativefinancial instruments (1,144) 1,346

3,371

Net cash generated from operating 2,199 1,138

2,665

activities

Cash flow from investing activitiesPurchase of investments (6,679) (6,005)

(6,759)

Sale of investments 9,373 9,220

11,703

Net cash generated from investing activities 2,694 3,215

4,944

Cash flow from financing activitiesEquity dividends paid (1,752) (1,639)

(2,807)

Repaid to loan facility (3,268) (1,948)

(969)

Net cash used in financing activities (5,020) (3,587)

(3,776)

Net (decrease)/increase in cash and cashequivalents (127) 766

3,833

Cash and cash equivalents at thebeginning of the period 11,432 7,599

7,599

Cash and cash equivalents at the end ofthe period 11,305 8,365 11,432 Notes to the Group Results 1. Accounting policies

The interim report has been prepared in accordance withInternational Financial Reporting Standards (IFRS). The accounting policiesare consistent with the preceding annual accounts.

The results are based on unaudited Group consolidated accountsprepared under the historical cost basis except where IFRS require analternative treatment.

2. Comparative information

The financial information contained in this interim report does notconstitute statutory accounts and, in addition, those relating to the sixmonth periods to 31 January 2012 and 31 January 2013 have not been audited.

The financial information for the year ended 31 July 2012 has beenextracted from the latest published audited accounts which have been filedwith the Registrar of Companies and prepared under IFRS. The report of theauditors on those accounts contained no qualification or statement under theprovisions of the Companies Act 2006.

3. Significant accounting policies

Investments held at fair value through profit or loss are initiallyrecognised at fair value. As the entity's business is investing in financialassets with a view to profiting from their total return in the form ofinterest, dividends, or increases in fair value, listed equities and fixedincome securities are designated as at fair value through profit or loss oninitial recognition. The entity manages and evaluates the performance of theseinvestments on a fair value basis in accordance with its investment strategy,and information about the group is provided internally on this basis to theentity's key management personnel. After initial recognition, investments which are classified as fairvalue through profit and loss are measured at fair value. Gains or losses oninvestments designated as fair value through profit or loss are included innet profit or loss as a capital item, and material transaction costs onacquisition and disposal of investments are expensed and included in thecapital column of the income statement. For investments that are activelytraded in organised financial markets, fair value is determined by referenceto the Stock Exchange quoted market bid prices or last traded prices,depending upon the convention of the exchange on which the investment isquoted, at the close of business at the end of the reporting period.

In respect of unquoted investments, or where the market for afinancial investment is not active, fair value is established by using anappropriate valuation technique. Where a reliable fair value cannot beestimated for such unquoted equity instruments, they are carried at cost,subject to any provision for impairment.

All purchases and sales of investments are recognised on the tradedate i.e. the date that the group commits to purchase or sell an asset.

Dividend income from investments is recognised as income when theshareholders' rights to receive payment has been established, normally theex-dividend date. When special dividends are received, the underlyingcircumstances are reviewed on a case by case basis in determining whether theamount is capital, or income, or a mixture of both, in nature. Amountsrecognised as income will form part of the company's distribution.

4. Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company's businessfall into the following categories: financial risk; strategic risk; andaccounting, legal and regulatory risk. A detailed explanation of the risks anduncertainties in each of these categories can be found in the Company'spublished Annual Report and Accounts for the year ended 31 July 2012.

5. Directors' Responsibilities

The Directors (P H A Stanley, B S Sheppard and D Harris) are of the opinionthat it is appropriate to continue to adopt the going concern basis inaccordance with the FRCs "Going Concern and Liquidity Risk: Guidance forDirectors of UK Companies 2009" in the preparation of the accounts as theassets of the Company consist predominantly of securities that are readilyrealisable and, accordingly, the Company has adequate financial resources tocontinue in operational existence for the foreseeable future.

The Directors confirm that, to the best of their knowledge, this set ofcondensed financial statements has been prepared in accordance with IAS 34"Interim Financial Reporting".

Where presentational guidance, set out in the Statement ofRecommended Practice ("SORP") for investment trusts revised by the Associationof Investment Companies ("AIC"), is consistent with the requirements of IFRS,the Directors have sought to prepare the financial statements on a basiscompliant with the recommendations of the SORP.

The Interim Management Report, in the form of the Chairman's Statement andInvestment Manager's Review, includes a fair review of the informationrequired by DTR 4.2.7 and 4.2.8 of the FSA's Disclosure and TransparencyRules.

6. Related Party

Midas Investment Management Limited (`Midas'), a company controlled by Mr. M.Sheppard, acts as Investment Manager to the Company. Details of the feearrangements are given in note 7. Mr. M. Sheppard is also a director of theparent company of Manchester and London Investment Trust plc.

7. Related Party Transactions

The management fee charged by Midas is payable quarterly in arrearsand is equal to 0.5 per cent of the Net Asset Value of the Group on anannualised basis.

Investment management fees are allocated 35 per cent to revenue and65 per cent to capital.

Additional fees charged by Midas include a monthly financialadvisory fee and commissions on the purchase and sale of investments.

There are no other related party transactions.

This Half Yearly Report was approved by the Board on 15 March 2013.

In accordance with DTR 4.2.9(2) of the UK Disclosure and Transparency Rules(DTRs), it is confirmed that this publication has not been audited by auditorspursuant to the Auditing Practices Board (APB) guidance on Review of InterimFinancial Information, but has been reviewed by the auditors pursuant to theAPB's guidance on Review of Interim Financial Information. Copies of the Half-Yearly Financial Report for the six months ended 31 January2013 will be available from the Company's registered office at 2nd Floor,Arthur House, Chorlton Street, Manchester, M1 3FH, as well as on the Company'swebsite at www.manchesterandlondon.co.uk.