Final Results

North Atlantic Smlr Co Inv Tst PLC
26 April 2001



NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC


PRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED

31 JANUARY 2001


Chairman's Statement


The financial year ended 31 January 2001 was a most satisfactory period for
the Company.  Despite difficult market conditions the fully diluted net asset
value rose by 33.95% to a new record high of 801.08p.  This compares with the
increases in sterling adjusted Standard and Poors Composite Index and Russell
2000 of 8.4% and 13.3% respectively.


Income for the period showed a profit of £221,000 (2000: £52,000).


In line with long-term policy your Directors are not recommending a dividend.



All aspects of the portfolio performed well during the period under review.



The outstanding success of the year was obviously the reverse takeover of
Redbus Interhouse by Horace Small.  This transaction, which was negotiated by
our Chief Executive, Christopher Mills, led to an uplift in the net asset
value of nearly £12 million over the period.



Other individual successes in our quoted investments during the year were
realised by the takeovers of Hazlewood Foods, Allied Textiles and CPL Aromas.



In general, an improved environment for industrial companies and the market's
re-appraisal of value stocks helped us while Mississippi Valley Bancshares,
Dowding and Mills, Primary Health Properties and Denison International all
performed well.



Finally, it is pleasing to report that our significant investment in American
Opportunity Trust PLC performed extremely well during the year with the net
asset value rising by 37.85%.



Taken as a whole the unquoted portfolio also performed well.  Disappointments
with Critical Care and Whitworths were more than offset by the successful
public offerings of Claims Direct (sold at a 200% profit) and W H Energy
Services.  WH in particular has been an outstanding investment.  At the year
end our shares were valued at £6.7 million, against our original cost of £
130,000.  Despite this your Manager does not consider WH overvalued.  The
share price has risen further in the current year.  Other than Claims Direct,
two new investments were introduced into the unquoted investment portfolio
during the year: GEI and Executive Air Support.



The derivative portfolio has continued to perform well with good results being
made both in the United Kingdom and United States with no significant losses.



The United States economy is unquestionably showing signs of a slowdown and
possibly a recession.  The decline in the stock market, particularly in the
Technology, Media and Telecom sector, an unsustainably low savings rate and
declining consumer confidence suggests that there is unlikely to be a quick
rebound in economic activity.  Although the Federal Reserve has cut interest
rates three times in the past four months, there is evidence of rising United
States inflation, raising the real possibility that the economy could enter a
period of stagflation.



Our strategy for the current year can be outlined as follows:



Quoted Investments

It is intended that the Company will focus heavily on companies where specific
corporate action rather than general market activity will drive the share
price .



Unquoted Investments

New investments will be made on a very selective basis and may to some extent
consist of corporate break-ups related to our quoted portfolio.  As in 2000 we
will continue to strive for successful realizations.  It is possible that the
proportion of the overall portfolio committed to unquoted investments will
continue to fall in the current year.



United States Bonds

Your Manager believes that there is a significant opportunity in high yielding
United States Corporate Bonds which currently have yields of between 13 and
18% to maturity.  The Company plans to invest some £16 million (circa 9% of
net assets) in a broadly based portfolio of these bonds and to this end the
Manager has selected a highly experienced team in the United States to
sub-advise on this part of the portfolio.  The currency risk will be hedged by
financing this portfolio with US bank borrowing which has already been put in
place.



Derivatives

Exposure to this part of the portfolio has declined over the year,
nevertheless, this may change as new opportunities are found.



Cash

Apart from the Company's intended commitment of £16 million to United States
Bonds, cash and short dated Government Securities amounted to some £51.3
million at the year end of which £26.5 million was needed to support the
derivatives portfolio.  Long Term Debt at the end of January amounted to £26.3
million.



Given current adverse market conditions it is most unlikely that the net asset
value will continue to grow as rapidly as it has done over the past two years.
  Nevertheless, I am confident that as long as there is no major collapse in
world markets nor a significant weakening of the United States dollar the
outcome for the current year will be satisfactory.



Directors

Mr Robert Power retired from the Board as a Director on 26 April 2001 and I,
on behalf of the Board, thank him for his loyal service to the Company since
1984 and wish him well.



The Board are pleased to welcome Kristian Siem to the Board.



Chairman

26 April 2001



CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account) for the year ended 31 January
                                                              Restated **
                                Revenue Capital  Total  Revenue Capital  Total

                                  2001    2001    2001    2000    2000    2000
                                 £'000   £'000   £'000   £'000   £'000   £'000

Gains on investments                 -  42,922  42,922       -  19,148  19,148
Exchange differences on capital      -     317     317       -    (366)   (366)
items
Premium paid on repurchase of        -       -       -       -  (9,870) (9,870)
CULS
Dividends and interest           4,337       -   4,337   3,436       -   3,436
Other income                      (285)      -    (285)   (321)      -    (321)
Investment management fee       (1,729)      -  (1,729)   (876)      -    (876)
Other expenses                  (1,129)       - (1,129) (1,113)      -  (1,113)

Net return before
finance costs and taxation       1,194  43,239  44,433   1,126   8,912  10,038

Interest payable and similar      (885)      -    (885) (1,014)      -  (1,014)
charges


Return on ordinary activities
before taxation                    309  43,239  43,548     112   8,912   9,024

Taxation on ordinary activities   (88)       -     (88)    (60)      -     (60)


Return on ordinary activities
after taxation                     221  43,239  43,460      52   8,912   8,964

Dividend in respect of equity        -       -       -       -       -       -
shares


Transfer to reserves               221  43,239  43,460      52   8,912   8,964


Return per Ordinary share:       pence   Pence   Pence   pence   pence   pence
Basic                             2.01  393.07  395.08    0.48   82.74   83.22
Diluted                           1.28  206.71  207.99    0.48   41.66   42.14


* The revenue column of this statement is the consolidated revenue account of
the Group.

** The accounts have been prepared using accounting standards and policies
adopted at the previous year end, with the exception of income and taxation,
which have been calculated in accordance with Financial Reporting Standard No.
16: Current Tax. The comparative figures have been restated to reflect this
change.


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


CONSOLIDATED BALANCE SHEET

as at 31 January


                                                             2001        2000
                                                            £'000       £'000

Fixed Assets
Investments                                               189,009     135,595

Current assets
Stock of investments                                          303         209
Debtors                                                     5,029       3,194
Cash at bank                                               11,896       1,160


                                                           17,228       4,563

Creditors: amounts falling due within one year
Bank loans and overdrafts                                   2,837       1,410
Other creditors and accruals                                9,039       3,652


                                                           11,876       5,062

Net current assets/(liabilities)                            5,352        (499)

Total assets less current liabilities                     194,361     135,096

Creditors: amounts falling due after
more than one year
Bank loans                                                 25,847      10,043
Debenture loan - Convertible Unsecured
Loan Stock 2013                                               468         486

                                                          168,046     124,567

Capital and reserves
Called up share capital                                       557         539
Share premium account                                         629         629
Capital reserve - realised                                134,527     100,399
Capital reserve - unrealised                               31,707      22,596
Revenue reserve                                               615         394

Equity shareholders' funds                                168,035     124,557
Minority interests                                             11          10

                                                          168,046     124,567


Net asset value per Ordinary share:                         Pence       pence
Basic                                                       1,509       1,156
Fully diluted                                                 801         598




CONSOLIDATED STATEMENT OF CASHFLOWS
for the year ended 31 January
                                                              2001        2000
                                                             £'000       £'000

Net cash inflow from operating activities                      698       1,350

Servicing of finance
Interest paid                                                 (884)     (1,023)

Net cash outflow from servicing of finance                    (884)     (1,023)

Taxation
Income tax paid                                                 (9)        (18)
Tax recovered                                                    7           -


Tax paid                                                        (2)        (18)

Capital expenditure and financial investments
Purchase of fixed asset investments                       (148,199)    (70,172)
Proceeds from sale of fixed asset investments
(including option premiums)                                141,378      80,020


Net cash (outflow)/inflow from capital
expenditure and financial investments                       (6,821)      9,848

Net cash (outflow)/inflow before financing                  (7,009)     10,157

Financing
Repurchase of Loan Stock ('CULS') for cancellation               -        (120)
Premiums paid on repurchase of CULS                              -      (9,870)
Repayment of fixed term borrowings                          (4,043)     (8,750)
Drawdown of fixed term borrowings                           20,989      10,232



Net cash inflow/(outflow) from financing                    16,946      (8,508)

Increase in cash                                             9,937       1,649




Notes:


The above results for the year to 31 January 2001 are audited.


The Directors do not recommend the payment of a final dividend for the year
(2000: nil).


The statutory accounts for the year ended 31 January 2001 will be finalised on
the basis of the financial information presented by the Directors in this
preliminary announcement, and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting to be held on 11 June 2001 at
10 am at the offices of the Manager and Company Secretary, J O Hambro Capital
Management Limited.  Copies will be posted to shareholders and those
individuals on the Company's mailing list as soon as practicable after
printing and will also be available on request from the Company Secretary, J O
Hambro Capital Management Limited, at Ground Floor, Ryder Court, 14 Ryder
Street, London SW1Y 6QB.


The financial information set out above does not constitute the Company's
statutory financial statements for the year ended 31 January 2001.


The above results for the year ended 31 January 2000 are an abridged version
of the Company's full accounts which received an audit report that was
unqualified and did not contain statements under section 237(2) or (3) of the
Companies Act 1985 and which have been filed with the Registrar of Companies.