Half Yearly Report Announceme

RNS Number : 9074I

Aberdeen Asian Smaller Co's Inv Tst

22 March 2010

 



ABERDEEN ASIAN SMALLER COMPANIES INVESTMENT TRUST PLC

ANNOUNCEMENT OF UNAUDITED HALF YEARLY RESULTS

for the six months ended 31 January 2010

INTERIM BOARD REPORT

I am pleased to report that the Company's fully diluted net asset value per share ("NAV") for the six months ended 31 January 2010 rose by 23.0%, outperforming both the MSCI Asia Pacific ex Japan Index and the MSCI Asia Pacific ex Japan Small Cap Index, which gained 11.3% and 17.4% respectively. During the six months, the share price rose by 26.5%.

During the period under review, improving economic data and low interest rates benefited Asian stock markets. However, early 2010 saw a correction caused by both fears of monetary tightening in China and the well published debt problems of Dubai. Against this background, it is interesting to note that small cap companies significantly outperformed large-caps by over 6%.

Overview

Asia remains a compelling long-term investment case, with the global crisis accentuating its relative strengths over the developed world. The region's strong fiscal position, well-capitalised banks and ample cushion of foreign-exchange reserves stand in sharp contrast to the West's mounting public deficits and overleveraged consumers. These superior fundamentals should continue to reinforce Asia's long-term attractiveness for investors.

Growth remained steady throughout the region, with China, India, Indonesia and the Philippines all posting positive upward movement in GDP throughout the global economic crisis. It is not surprising, therefore, that Asian countries have been early movers in tightening monetary policy, most notably Australia, where interest rates have been raised three times.

The companies in which we invest are, generally, conservatively managed. The painful experiences gained during the financial crisis of 1997, meant that many entered this recession with strong balance sheets. As I have reiterated in many statements, Hugh Young and his team at Aberdeen consider this to be a cornerstone of their investment philosophy to which good management and sound business prospects must be added.

In the area of smaller companies; they favour long term investments in simple, transparent and sustainable businesses, as opposed to those that are in speculative, volatile or cyclical companies. Given the increasing disposable incomes of Asia's growing middle class, they look for companies geared to domestic demand of which Malaysia's Aeon, Hong Kong's Cafe de Coral and Jollibee Foods of the Philippines are good examples. Locally-listed subsidiaries of multinationals offer good investment opportunities as they tend to share their parent's pedigree of professional management and established marketing expertise. Chevron Lubricants Lanka, Castrol India and Holcim Indonesia all feature in the portfolio.

This methodology has served us well over the last 14 years. Since inception, the undiluted net asset value total return is 486.5%, compared with the MSCI Asia Pacific ex Japan Index's gain of 115.3%.

Share Capital and Gearing

During the period, the Company's Ordinary shares continued to trade at a discount to NAV although this narrowed from 15.6% to 12.9%. Between 1 August 2009 and today's date 292,069 Ordinary shares have been purchased into Treasury, at discounts in excess of 13%. In December 2009, 442,698 Warrants were exercised resulting in the issue of 442,698 new Ordinary shares. Your Board will continue to monitor the Company's discount and to purchase shares and Warrants when it is deemed beneficial to do so in order to improve NAV and to manage the level of the discount to NAV.

Portfolio

The stock markets of both India and Indonesia showed good growth and the performance of our portfolio in these countries was the greatest contributor to relative return in this period. The portfolio is overweight in both markets. In India, the paint company Kansai Nerolac Paints and the lubricant manufacturer Castrol India were boosted by buoyant car sales, while gas distributor Gujarat Gas rose as a consequence of the Government's plans to expand the country's infrastructure. In Indonesia, Multi Bintang jumped 88% in local currency terms, after Asia Pacific Breweries took a majority stake in the company. This led to a full bid. Bank OCBC NISP's share price was underpinned by strong loan demand from small and medium enterprises.

Our holdings in Singapore also had a positive effect on the performance of the portfolio.  Notable outperformers were CDL Hospitality Trust and Bukit Sembawang Estates, which benefited from optimism in the property market. The opening of the two integrated resorts later this year is expected to boost tourism and occupancy rates. Bukit Sembawang recovered previous losses, as it addressed balance sheet issues following a rights issue which we supported.

In Sri Lanka, the Chevron Lubricants Lanka share price rose in line with the local market, on hopes that the end of the 25-year long civil war would usher in a new era of stability. This was underpinned by strong third-quarter profits results.

In contrast, Hong Kong retailers Aeon Stores and Giordano disappointed, as interest rotated to cyclical stocks. Our Malaysian holdings also lagged. Pos Malaysia faced eroding mail volumes and rising fixed costs, leading it to instigate a 3-year restructuring plan to restore profitability. United Malacca's share price fell but we continue to like the company for its strong cashflow and high dividend payout. 

Your Manager voted against BAT's proposed merger of subsidiaries BAT Indonesia and Bentoel, and in the process received cash for the portfolio's holding in the former. The holdings in CDL Hospitality Trust, Godrej Consumer Goods and Holcim Indonesia were pared on run-ups in their share prices. Against this, we added to Aventis Pharma and Giordano, on relative price weakness.

Outlook

Economic recovery appears to be underway, helped by government and central bank intervention worldwide. But there may be a cost to this stimulus, particularly in China where concerns are growing that loose monetary policy is creating new asset-price bubbles. A gradual currency revaluation would help suppress rising prices, but China is likely to resist outside pressure to address the perceived undervaluation. If China continues to resist currency appreciation, so too, most likely, will the rest of Asia.

As we have previously said, it is your Board's view and that of the Manager that the long-term outlook for Asia is exciting. The fundamental strength of the major economies of the region combined with the growth emanating from China is leading it out of the effects of the global downturn in advance of the West. The demand from the Asian consumer will continue to grow as a percentage of world demand; at the moment, it accounts for less than a third of that in the US and Europe combined. In China, where there is still a low penetration of consumer durables, increasing availability of bank credit will help drive rapid real economic growth; in 2009, the country overtook the US as the world's largest car market. The domestically-driven economies of India and Indonesia look set for continued growth, despite the sluggish pace of much-needed infrastructure investment.

Ultimately, your Manager believes that the best investment philosophy for a long term shareholder is to invest in well-run and well-founded companies, particularly those boasting healthy dividend payouts.  Your portfolio is home to some of these excellent, growing businesses.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into six broad categories: (i) Ordinary share market risk, (ii) Dividends, (iii) Borrowings, (iv) Market risk, (v) Foreign exchange risk, and (vi) Taxation and exchange controls. Information on each of these areas is given in the Directors' Report within the Annual Report and Accounts for the year ended 31 July 2009.  The principal risks and uncertainties have not changed in the period from 31 July 2009 to 19 March 2010.

Directors' Responsibility Statement

The Directors are responsible for preparing this half-yearly financial report in accordance with applicable law and regulations.  The Directors confirm that to the best of their knowledge:

· the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement "Half Yearly Financial Reports";

· the Interim Board Report (constituting the interim management report) includes a fair review of the information  required by rule 4.2.7R of the UK Listing Authority Disclosure and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could so do).

For and on behalf of the Board of Aberdeen Asian Smaller Companies Investment Trust PLC

Nigel Cayzer

Chairman

19 March 2010

Aberdeen Asian Smaller Companies Investment Trust PLC

Income Statement (unaudited)

	Six months ended			Six months ended
	31 January 2010			31 January 2009
	(unaudited)			(unaudited)
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	-	29,958	29,958	-	(10,682)	(10,682)
Income (note 3)	2,070	-	2,070	1,768	-	1,768
Foreign exchange losses	-	(266)	(266)	-	(2,680)	(2,680)
Investment management fees	(730)	-	(730)	(764)	-	(764)
Administrative expenses	(350)	-	(350)	(315)	-	(315)
	_______	_______	_______	_______	_______	_______
Net return on ordinary activities before finance costs and taxation	990	29,692	30,682	689	(13,362)	(12,673)
Finance costs	(29)	-	(29)	(128)	-	(128)
	_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation	961	29,692	30,653	561	(13,362)	(12,801)
Taxation	(144)	-	(144)	(161)	-	(161)
	_______	_______	_______	_______	_______	_______
Net return on ordinary activities after taxation	817	29,692	30,509	400	(13,362)	(12,962)
	_______	_______	_______	_______	_______	_______
Return per share (pence):
Basic	2.61	95.02	97.63	1.28	(42.76)	(41.48)
	_______	_______	_______	_______	_______	_______
Diluted	2.39	86.78	89.17	1.18	(39.51)	(38.33)
	_______	_______	_______	_______	_______	_______

The total column of this statement represents the profit and loss account of the Company.

A Statement of Total Recognised Gains and Losses has not been presented as all gains and losses are recognised in the Income Statement.

All revenue and capital items are derived from continuing operations.

No operations were acquired or discontinued during the period.

Aberdeen Asian Smaller Companies Investment Trust PLC

Income Statement (audited)

	Year ended
	31 July 2009
	(audited)
	Revenue	Capital	Total
	£'000	£'000	£'000
Gains/(losses) on investments	-	14,420	14,420
Income (note 3)	4,954	-	4,954
Foreign exchange losses	-	(1,475)	(1,475)
Investment management fees	(1,494)	-	(1,494)
Administrative expenses	(623)	-	(623)
	_______	_______	_______
Net return on ordinary activities before finance costs and taxation	2,837	12,945	15,782
Finance costs	(167)	-	(167)
	_______	_______	_______
Net return on ordinary activities before taxation	2,670	12,945	15,615
Taxation	(563)	-	(563)
	_______	_______	_______
Net return on ordinary activities after taxation	2,107	12,945	15,052
	_______	_______	_______
Return per share (pence):
Basic	6.75	41.46	48.21
	_______	_______	_______
Diluted	6.24	38.32	44.56
	_______	_______	_______

Balance Sheet

	As at	As at	As at
	31 January 2010	31 January 2009	31 July 2009
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	153,903	104,961	127,612
	_________	_________	_________
Current assets
Loans and receivables	1,010	164	374
Cash and short term deposits	3,041	1,749	2,642
	_________	_________	_________
	4,051	1,913	3,016
	_________	_________	_________
Creditors: amounts falling due within one year
Bank loan (note 10)	(6,490)	(12,463)	(8,143)
Other creditors	(469)	(439)	(522)
	_________	_________	_________
	(6,959)	(12,902)	(8,665)
	_________	_________	_________
Net current liabilities	(2,908)	(10,989)	(5,649)
	_________	_________	_________
Total assets less current liabilities	150,995	93,972	121,963
Provision for liabilities and charges	-	(23)	-
	_________	_________	_________
Net assets	150,995	93,949	121,963
	_________	_________	_________
Capital and reserves
Called-up share capital (note 11)	8,331	8,220	8,220
Capital redemption reserve	2,062	2,062	2,062
Share premium account	11,644	11,312	11,312
Special reserve	10,023	10,386	10,386
Warrant reserve	1,243	1,387	1,387
Capital reserve	114,732	58,589	84,896
Revenue reserve	2,960	1,993	3,700
	_________	_________	_________
Equity shareholders' funds	150,995	93,949	121,963
	_________	_________	_________
Net asset value per share (pence):
Basic	478.91	301.16	390.96
	_________	_________	_________
Diluted	437.93	276.96	355.95
	_________	_________	_________

Reconciliation of Movements in Shareholders' Funds

Six months ended 31 January 2010 (unaudited)
		Capital	Share
	Share	redemption	premium	Special	Warrant	Capital	Revenue
	capital	reserve	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2009	8,220	2,062	11,312	10,386	1,387	84,896	3,700	121,963
Net return on ordinary activities after taxation	-	-	-	-	-	29,692	817	30,509
Dividends paid (note 2)	-	-	-	-	-	-	(1,557)	(1,557)
Purchase of own shares (note 11)	-	-	-	(363)	-	-	-	(363)
Exercise of Warrants (note 11)	111	-	332	-	(144)	144	-	443
	______	______	______	______	______	______	______	______
Balance at 31 January 2010	8,331	2,062	11,644	10,023	1,243	114,732	2,960	150,995
	______	______	______	______	______	______	______	______
Six months ended 31 January 2009 (unaudited)
		Capital	Share
	Share	redemption	premium	Special	Warrant	Capital	Revenue
	capital	reserve	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2008	8,163	2,062	11,140	11,975	1,461	71,877	3,151	109,829
Net return on ordinary activities after taxation	-	-	-	-	-	(13,362)	400	(12,962)
Dividends paid (note 2)	-	-	-	-	-	-	(1,558)	(1,558)
Purchase of own shares (note 11)	-	-	-	(1,589)	-	-	-	(1,589)
Exercise of Warrants (note 11)	57	-	172	-	(74)	74	-	229
	______	______	______	______	______	______	______	______
Balance at 31 January 2009	8,220	2,062	11,312	10,386	1,387	58,589	1,993	93,949
	______	______	______	______	______	______	______	______
Year ended 31 July 2009 (audited)
		Capital	Share
	Share	redemption	premium	Special	Warrant	Capital	Revenue
	capital	reserve	account	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 July 2008	8,163	2,062	11,140	11,975	1,461	71,877	3,151	109,829
Net return on ordinary activities after taxation	-	-	-	-	-	12,945	2,107	15,052
Dividends paid (note 2)	-	-	-	-	-	-	(1,558)	(1,558)
Purchase of own shares (note 11)	-	-	-	(1,589)	-	-	-	(1,589)
Exercise of Warrants (note 11)	57	-	172	-	(74)	74	-	229
	______	______	______	______	______	______	______	______
Balance at 31 July 2009	8,220	2,062	11,312	10,386	1,387	84,896	3,700	121,963
	______	______	______	______	______	______	______	______

Cash Flow Statement

	Six months ended	Six months ended	Year ended
	31 January 2010	31 January 2009	31 July 2009
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Net total return before finance costs and taxation	30,682	(12,673)	15,782
Adjustments for:
(Gains)/losses on investments	(29,958)	10,682	(14,420)
Effect of foreign exchange rate movements	266	2,680	1,475
Decrease/(increase) in accrued income	201	43	(185)
(Increase)/decrease in other debtors	(55)	(12)	5
Increase (decrease) in other creditors	30	(9)	(4)
Overseas withholding tax suffered	(144)	(72)	(255)
Stock dividend included in investment income	(37)	(15)	(15)
	___________	___________	___________
Net cash inflow from operating activities	985	624	2,383
Net cash outflow from servicing of finance	(29)	(130)	(173)
Net tax paid	(177)	(499)	(658)
Net cash inflow/(outflow) from financial investment	3,016	(2,325)	126
Equity dividends paid (note 2)	(1,557)	(1,558)	(1,558)
	___________	___________	___________
Net cash inflow/(outflow) before financing	2,238	(3,888)	120
Financing
Purchase of own shares	(363)	(1,589)	(1,589)
Exercise of Warrants	443	229	229
Buyback of Warrants	-	-	-
(Repayment)/drawdown of loan	(1,903)	8,065	2,069
	___________	___________	___________
Net cash (outflow)/inflow from financing activities	(1,823)	6,705	709
	___________	___________	___________
Increase in cash	415	2,817	829
	___________	___________	___________
Reconciliation of net cash flow to movements in net debt
Increase in cash	415	2,817	829
Effect of foreign exchange rate movements	(266)	(2,680)	(1,475)
(Repayment)/drawdown of loan	1,903	(8,065)	(2,069)
	___________	___________	___________
Movement in net funds/(debt) in the period	2,052	(7,928)	(2,715)
Net debt at start of period	(5,501)	(2,786)	(2,786)
	___________	___________	___________
Net debt at end of period	(3,449)	(10,714)	(5,501)
	___________	___________	___________
Represented by:
Cash	3,041	1,749	2,642
Debt due within one year	(6,490)	(12,463)	(8,143)
	___________	___________	___________
	(3,449)	(10,714)	(5,501)
	___________	___________	___________

Notes to the Financial Statements

1.	Accounting policies
	(a)	Basis of Accounting
		The accounts have been prepared in accordance with applicable UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice), with pronouncements on half yearly reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009.  The adoption of the January 2009 SORP has no effect on the financial statements of the Company, other than the requirement separately to disclose capital reserves that relate to the revaluation of investments held at the reporting date. These are disclosed in note 7. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis.
		The same accounting policies used for the year ended 31 July 2009 have been applied.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.

		Six months ended	Six months ended	Year ended
		31 January 2010	31 January 2009	31 July 2009
2.	Dividends	£'000	£'000	£'000
	Final dividend for 2009 - 5.00p (2008 - 4.00p)	1,557	1,246	1,246
	Special dividend for 2009 - Nil (2008 - 1.00p)	-	312	312
		___________	___________	___________
		1,557	1,558	1,558
		___________	___________	___________

		Six months ended	Six months ended	Year ended
		31 January 2010	31 January 2009	31 July 2009
3.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	11	10	36
	Overseas dividends	1,996	1,732	4,886
	Stock dividends	37	15	15
	Fixed interest	10	-	3
		___________	___________	___________
		2,054	1,757	4,940
		___________	___________	___________
	Other income
	Deposit interest	6	11	15
	Interest on tax refunded	-	-	(27)
	Underwriting commission	10	-	26
		___________	___________	___________
		16	11	14
		___________	___________	___________
	Total income	2,070	1,768	4,954
		___________	___________	___________

4.	The taxation charge for the period has been calculated at an expected effective annual tax rate of 28%.

		Six months ended	Six months ended	Year ended
		31 January 2010	31 January 2009	31 July 2009
5.	Return per Ordinary share	p	p	p
	Basic
	Revenue return	2.61	1.28	6.75
	Capital return	95.02	(42.76)	41.46
		___________	___________	___________
	Total return	97.63	(41.48)	48.21
		___________	___________	___________
	The figures above are based on the following:
		£'000	£'000	£'000
	Revenue return	817	400	2,107
	Capital return	29,692	(13,362)	12,945
		___________	___________	___________
	Total return	30,509	(12,962)	15,052
		___________	___________	___________
	Weighted average number of shares in issue{A}	31,249,190	31,250,716	31,223,576
	Diluted	p	p	p
	Revenue return	2.39	1.18	6.24
	Capital return	86.78	(39.51)	38.32
		___________	___________	___________
	Total return	89.17	(38.33)	44.56
		___________	___________	___________
	Number of dilutive shares{A}	2,963,641	2,566,179	2,560,696
	Diluted shares in issue{A}	34,212,831	33,816,895	33,784,272
	{A}Calculated excluding shares held in treasury
	The calculation of the diluted total, revenue and capital returns per Ordinary share are carried out in accordance with Financial Reporting Standard No. 22, "Earnings per Share".  For the purposes of calculating diluted total, revenue and capital returns per Ordinary share, the number of Ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Warrants by reference to the average share price of the Ordinary shares during the period.

		Six months ended	Six months ended	Year ended
		31 January 2010	31 January 2009	31 July 2009
5.	Return per Ordinary share	p	p	p
	Basic
	Revenue return	2.61	1.28	6.75
	Capital return	95.02	(42.76)	41.46
		___________	___________	___________
	Total return	97.63	(41.48)	48.21
		___________	___________	___________
	The figures above are based on the following:
		£'000	£'000	£'000
	Revenue return	817	400	2,107
	Capital return	29,692	(13,362)	12,945
		___________	___________	___________
	Total return	30,509	(12,962)	15,052
		___________	___________	___________
	Weighted average number of shares in issue{A}	31,249,190	31,250,716	31,223,576
	Diluted	p	p	p
	Revenue return	2.39	1.18	6.24
	Capital return	86.78	(39.51)	38.32
		___________	___________	___________
	Total return	89.17	(38.33)	44.56
		___________	___________	___________
	Number of dilutive shares{A}	2,963,641	2,566,179	2,560,696
	Diluted shares in issue{A}	34,212,831	33,816,895	33,784,272
	{A}Calculated excluding shares held in treasury
	The calculation of the diluted total, revenue and capital returns per Ordinary share are carried out in accordance with Financial Reporting Standard No. 22, "Earnings per Share".  For the purposes of calculating diluted total, revenue and capital returns per Ordinary share, the number of Ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Warrants by reference to the average share price of the Ordinary shares during the period.

7.	Capital reserve
	The capital reserve reflected in the Balance Sheet at 31 January 2010 includes gains of £62,711,000 (31 January 2009 - gains of £10,851,000; 31 July 2009 - gains £35,034,000), which relate to the revaluation of investments held at the reporting date.

8.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value though profit or loss.  These have been expensed through capital and are included within gains/(losses) on investments in the Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		31 January 2010	31 January 2009	31 July 2009
		£'000	£'000	£'000
	Purchases	9	28	33
	Sales	23	30	52
		___________	___________	___________
		32	58	85
		___________	___________	___________

9.	Related party transactions
	Mr M J Gilbert is a director of Aberdeen Asset Management PLC and its subsidiary Aberdeen Asset Management (Asia) Ltd ("AAM Asia"). Mr Gilbert is also a director of Aberdeen Asset Managers Ltd ("AAM"). AAM Asia has an agreement to provide management services to the Company and AAM has an agreement to provide both administration and marketing services to the Company.
	The management fee is payable monthly in arrears based on an annual amount of 1.2% calculated on the average net asset value of the Company over a 24 month period, valued monthly. During the period £730,000 (2009 - £764,000) of management fees earned by the Manager, with a balance of £247,000 (2009 - £252,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 100% to revenue.
	The administration fee is payable quarterly in advance and is based on a current annual amount of £73,000 (2009 - £73,000). During the period £36,000 (2009 - £36,000) of fees earned, with a balance of £18,000 (2009 - £18,000) prepaid to AAM at the period end.
	The marketing fee is based on a current annual amount of £80,000 (2009 - £103,000), payable quarterly in arrears. During the period £40,000 (2009 - £52,000) of fees earned, with a balance of £7,000 (2009 - £17,000 prepaid) being payable to AAM at the period end.

10.	Bank loan
	The Company has a multi currency credit facility with Barclays Bank which is due to expire on 4 June 2011 (the "Credit Facility"). During the six months ended 31 January 2010 the amount drawn under the Credit Facility was reduced from US$13,500,000 to US$10,400,000. The remaining balance of US$10,400,000 has been rolled over to 10 April 2010 at a rate of 0.676%.

11.	Called-up share capital
	During the six months ended 31 January 2010 the Company repurchased 110,000 Ordinary shares of 25p each (31 January 2009 - 662,210, 31 July 2009 - 662,210) at a cost of £363,000 (31 January 2009 - £1,589,000, 31 July 2009 - £1,589,000) including expenses. All of these shares were placed in treasury.
	During the six months ended 31 January 2010 an additional 442,698 (31 January 2009 - 229,063, 31 July 2009 - 229,063) Ordinary shares of 25p each were issued after 442,698 (31 January 2009 - 229,063, 31 July 2009 - 229,063) Warrants were exercised at 100p each. The total consideration received was £442,698.

12.	Half-Yearly Report
	The financial information in this report does not comprise statutory accounts within the meaning of Section 434 - 436 of the Companies Act 2006. The financial information for the year ended 31 July 2009 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified and contained no statement under Section 498 (2), (3) or (4) of the Companies Act 2006. The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.
	The auditors have reviewed the financial information for the six months ended 31 January 2010 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

13.	This Half-Yearly Financial Report was approved by the Board and authorised for issue on 19 March 2010.

Copies of the Company's Half Yearly Report for the six months ended 31 January 2010 will be posted to shareholders in early April 2010 and will be available thereafter on the Company's website: www.asian-smaller.co.uk and from the registered office, Bow Bells House, 1 Bread Street, London EC4M 9HH.

Aberdeen Asset Management PLC

Secretaries

19 March 2010

Independent Review Report to Aberdeen Asian Smaller Companies Investment Trust PLC

Introduction

We have been engaged by Aberdeen Asian Smaller Companies Investment Trust PLC ("the Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2010 which comprises the Income Statement, Balance Sheet, Reconciliation of Movements in Shareholders Funds, Cash Flow Statement and the related notes 1 to 13. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the Accounting Standards Board Statement "Half-Yearly Financial Reports".

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 January 2010 is not prepared, in all material respects, in accordance with the Accounting Standards Board Statement "Half-Yearly Financial Reports" and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLP

London

19 March 2010

 

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