Final Results

North Atlantic Smlr Co Inv Tst PLC
23 April 2002


NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 JANUARY 2002



Chairman's Statement

The financial year ended 31 January 2002 was a difficult one for your Company.
In the early part of the year the portfolio suffered from the extreme weakness
of the Company's modest exposure to the technology, media and telecom sectors
following the end of the 'dot com' boom. The tragic events of 11 September
further adversely affected stock market valuations, although confidence had
improved somewhat by the Company's year end.

The fully diluted net asset value of the Company declined by 13.1% over the year
to 696p per Ordinary Share. This compares to a decline (Sterling adjusted) in
the Standard & Poor's Composite Index of 14.5%.

The revenue account showed a loss for the year after taxation of £519,000 (2001:
profit £221,000). As in previous years and in line with the Company's long-term
policy, your directors are not recommending a dividend.

As previously reported, good profits were obtained in the first half of the year
on disposals of the Company's investments in European Motors, Premier Asset
Management, Hardy Underwriting and Wellington. Alexander Russell was taken over
at a useful premium to our original cost. In line with other companies in the
sector, the performance of PNC Telecom was disappointing.

In the USA, Gentek was sold at a price below cost, whilst poor performances from
Worldport, Change Technologies and, in particular, Lesco reduced the value of
the portfolio. These declines were offset to some extent by the relatively good
performance of our investments in the banking industry.

The underlying operating results of the companies in the unquoted section of the
portfolio were generally good, although the investment in Enterworks was written
off and the valuation of Messagelink substantially reduced. In the light of
price weaknesses of comparable listed companies the valuations of AllianceOne
and LKQ were reduced. Operating problems at Isle of Wight Cable necessitated a
write down in carrying value.

More positively, Sterling Construction was sold at an uplift over the January
2001 valuation whilst the recent round of financing of GEI allowed us to
significantly increase its carrying value.

I mentioned in my interim report the Company's involvement in investment grade
high yield bonds. The market for this type of investment has changed
significantly since we commenced this activity, with prices declining
significantly.  We have therefore sold the majority of these investments in the
portfolio at a small loss, although reinvestment may occur once we feel the
market has stabilised.

The derivative portfolio continues to run off and now amounts to only £5.7m of
exposure.

Stock markets have recovered from the post 11 September collapse, aided by cuts
in US and UK interest rates. However corporate earnings growth remains under
pressure and events such as Enron and the bankruptcy or near collapse of telecom
and media companies has adversely affected market sentiment. Against this
somewhat negative background, we have substantial cash reserves and a portfolio,
being heavily concentrated on event-driven situations, which we believe is well
positioned to flourish in the present market environment.

Finally, as stated in my interim report, we are saddened to report the death
during the year of Douglas Nation. At the time of his death Douglas was the
longest serving non-executive director on the Board. We miss his friendship and
wise counsel.


Enrique Foster Gittes
Chairman
23 April 2002




CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account) for the year ended 31 January

                                              Revenue      Capital        Total     Revenue     Capital       Total
                                                 2002         2002         2002        2001        2001        2001
                                                £'000        £'000        £'000       £'000       £'000       £'000

(Losses)/gains on investments                       -      (21,375)     (21,375)          -      42,922      42,922
Exchange differences on capital items               -         (644)        (644)          -         317         317
Dividends and interest                          5,452            -        5,452       4,337           -       4,337
Other income                                     (413)           -         (413)       (285)          -        (285)
Investment management fee                      (2,880)           -       (2,880)     (2,336)          -      (2,336)
Other expenses                                   (538)            -        (538)       (522)          -        (522)

Net return before
finance costs and taxation                      1,621      (22,019)     (20,398)      1,194      43,239      44,433

Interest payable and similar charges           (2,065)           -       (2,065)       (885)          -        (885)


Return on ordinary activities
before taxation                                  (444)     (22,019)     (22,463)        309      43,239      43,548

Taxation on ordinary activities                   (75)           -          (75)        (88)          -         (88)


Return on ordinary activities
after taxation                                   (519)     (22,019)     (22,538)        221      43,239      43,460

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


Transfer (from)/to reserves                      (519)     (22,019)     (22,538)        221      43,239      43,460


Return per Ordinary share:                      pence        pence        pence       pence       pence       pence
Basic                                           (4.54)     (192.64)     (197.18)       2.01      393.07      395.08
Diluted**                                       (2.26)  (105.14)      (107.40)         1.28      206.71      207.99




* The revenue column of this statement is the consolidated profit and loss
account of the Group.
**Although Financial Reporting Standard No.14: Earnings Per Share states that
Returns per share which are not diluted are not disclosed, they have been shown
here for information for the year ended 31 January 2002.
All revenue and capital items in the above statement derive from continuing
operations.



CONSOLIDATED BALANCE SHEET
as at 31 January
                                                                                2002                   2001
                                                                               £'000                  £'000

Fixed Assets
Investments                                                                  167,677                189,009

Current assets
Investments held in subsidiary undertakings                                      183                    303
Debtors                                                                        2,738                  5,029
Cash at bank                                                                   8,416                 11,896


                                                                              11,337                 17,228

Creditors: amounts falling due within one year
Bank loans and overdrafts                                                      3,600                  2,837
Other creditors and accruals                                                   4,020                  9,039


                                                                               7,620                 11,876

Net current assets                                                             3,717                  5,352

Total assets less current liabilities                                        171,394                194,361

Creditors: amounts falling due after
more than one year
Bank loans                                                                    25,429                 25,847
Debenture loan - Convertible Unsecured
Loan Stock 2013                                                                  444                    468

                                                                             145,521                168,046

Capital and reserves
Called up share capital                                                          581                    557
Share premium account                                                            629                    629
Capital reserve - realised                                                   134,725                134,527
Capital reserve - unrealised                                                   9,490                 31,707
Revenue reserve                                                                   96                    615

Equity shareholders' funds                                                   145,521                168,035
Minority interests                                                                 -                     11

                                                                             145,521                168,046


Net asset value per Ordinary share:                                            pence                  pence
Basic                                                                          1,253                  1,509
Fully diluted                                                                    696                    801






CONSOLIDATED STATEMENT OF CASHFLOWS
for the year ended 31 January
                                                                              2002                  2001
                                                                             £'000                 £'000

Net cash inflow from operating activities                                    1,036                   734

Servicing of finance
Interest paid                                                               (2,037)                 (884)
Expenses of bank loan                                                           (6)                  (36)

Net cash outflow from servicing of finance                                  (2,043)                 (920)

Taxation
Income tax paid                                                                 (9)                   (9)
Tax recovered                                                                    5                     7


Tax paid                                                                        (4)                   (2)

Investing activities
Purchases of fixed asset investments                                      (218,250)             (148,199)
Proceeds from sale of fixed asset investments
(including option premiums)                                                216,159               141,378


Net cash outflow from investing activities                                  (2,091)               (6,821)

Net cash outflow before financing                                           (3,102)               (7,009)

Financing
Repayment of fixed term borrowings                                          (6,000)               (4,043)
Drawdown of fixed term borrowings                                            6,000                20,989



Net cash inflow from financing                                                   -                16,946

(Decrease)/increase in cash                                                 (3,102)                9,937




Notes:

The above results for the year to 31 January 2002 are audited.

The Directors do not recommend the payment of a final dividend for the year
(2001: nil).

The statutory accounts for the year ended 31 January 2002 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. 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, Ground Floor, Ryder
Court, 14 Ryder Street, London SW1Y 6QB.   The Annual General Meeting will be
held on Monday 17 June 2002 at 3pm at the offices of the Manager and Company
Secretary, J O Hambro Capital Management Limited, 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 2002.

The above results for the year ended 31 January 2001 are an abridged version of
the Company's full accounts which received an audit report that was unqualified
and did not contain any statements under section 237(2) or (3) Companies Act
1985. The accounts for the year ended 31 January 2001 have been filed with the
Registrar of Companies.


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