Preliminary Results

North Atlantic Smlr Co Inv Tst PLC
12 May 2000


NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC

Preliminary Announcement of Results for the year ended 31 January 2000

Chairman's Statement

During the year under review, the Trust's fully diluted net asset value rose
by 19.8% as compared with rises in the Sterling adjusted Standard & Poors
Composite Index and Russell 2000 of 10.9% and 18.2% respectively.

The revenue account showed net revenue for the year ended 31 January 2000 of
£52,000 (1999: £70,000).  Consistent with previous practice, the Directors do
not recommend the payment of a dividend.  

Following the release of last year's results, the Trust took the opportunity
to buy back approximately £10 million of convertible loan notes at a price
which represented a discount to the fully diluted net asset value of
approximately 20%, thereby increasing the net asset value for the benefit of
all shareholders.  Despite the apparent rise in the Russell 2000 Index,
smaller companies, trading on modest price earnings ratios, which are the
backbone of the Trust's portfolio, generally performed poorly, whilst
technology stocks continued their meteoric rise.  This is best illustrated by
the fact that over 50% of the rise in the Russell 2000 was in fact accounted
for by 13 stocks.  These 13 companies have a total market value of
approximately US$100billion but have trailing twelve month losses of
approximately US$1billion in aggregate.  It is not the policy of this Trust to
invest in companies whose value is based on the expectation of profits which
may or may not materialise in the future.  

Notwithstanding the above, several of our larger quoted holdings performed
well during the year.  PNC Telecom, one of our historical unquoted holdings,
rose by over 400% over the period. CPL Aromas, Norcros and Money Controls were
all bid for.  Allied Textiles is in discussions which may lead to an offer,
whilst Horace Small rose considerably following the sale of its business and a
proposed acquisition.    In the United States, Scott Technologies performed
well following the sale of its non core subsidiaries and PS Group realised a
sizeable gain following an offer for the company.

By contrast, the regional banking sector where the Trust has significant
exposure performed poorly during the year and this was reflected in falls of
nearly 20% in the share price of both Mississippi Valley Bancshares and
Carolina First.

The unquoted portfolio as a whole achieved good results during the year. 
Santa Maria Foods, Waterbury, LKQ, AllianceOne and Message Link were all
written up following further rounds of financing.  On the other hand, it was
necessary to write down Gateway Homecare, Southern Dental, Protein Genetics
and IPT to reflect disappointing trading results.  However, in the case of
Protein Genetics and IPT trading, results have improved considerably and we
are optimistic that the write down will prove unnecessary (further details of
the unquoted portfolio will be included in the Annual Report).  

Economies remain generally strong but this is leading to inflationary concerns
which both the Federal Reserve and the Bank of England are trying to contain
through higher interest rates.  This in turn should cool the speculative
fervour which is clearly apparent in the technology sector.  Needless to say,
the technology optimists consider interest rates will have no impact.

Outlook

The current year has started extremely well principally due to good
performance of Horace Small and a recent investment in Arinco.  Consequently,
the fully diluted net asset value at 30 April had risen to 678p.

A number of the unquoted investments are expected to go public or be sold this
year and this should result in a good uplift in the unquoted portfolio
although this will to some extent be mitigated by writedowns in Whitworths and
Southern Dental.

I also anticipate that the unquoted portfolio will respond to specific events
which could improve the stock market valuation of our investments.

Finally, I would like to thank you for your continued support for the Trust
and hope that we can reward you over the coming year.

Enrique Foster Gittes
Chairman
12 May 2000


Consolidated Statement of Total Return
(incorporating the revenue account*) for the year ended 31 January 2000 

                                 Revenue Capital  Total Revenue Capital Total
                                 2000    2000     2000   1999    1999    1999
                                 £'000   £'000    £'000 £'000   £'000   £'000

Gains/(losses) on investments        -   19,148  19,148    -  (3,802) (3,802)
Premium paid on repurchase 
of CULS                              -  (9,870)  (9,870)    -       -      -
Exchange differences on 
capital items                        -    (366)   (366)     -     126    126
Dividends and interest           3,568      -    3,568  3,443       -  3,443
Other net income                  (321)     -     (321)    34       -     34
Investment management fee         (767)     -    (767)   (737)      -   (737)
Other expenses                  (1,222)     -   (1,222) (1,254)     - (1,254)
                               _______________________________________________
Net return before finance 
costs and taxation              1,258    8,912   10,170   1,486 (3,676)(2,190)
Interest payable and similar 
charges                         (1,014)      -   (1,014) (1,095)     - (1,095)
                              -----------------------------------------------
Return on ordinary activities
before taxation                    244   8,912   9,156      391 (3,676)(3,285)
Tax on ordinary activities        (192)      -    (192)   (321)     -   (321)
                                  --------------------------------------------
Return on ordinary activities
after taxation                       52  8,912   8,964       70 (3,676)(3,606)
Dividend in respect of 
equity shares                        -      -        -       -       -      -
                                _______________________  _____________________
Transfer to/(from) reserves          52  8,912   8,964       70 (3,676)(3,606)
                                ----------------------------------------------
Return per Ordinary share         
 - basic                          0.48p 82.74p  83.22p  0.66p (34.41p)(33.75)p
 - diluted                        0.48p 41.66p  42.14p  0.57p (15.92)p(15.35)p


The revenue column of this statement is the consolidated revenue account of
the Group.
All revenue and capital items in the above statement derive from continuing 
operations.


Consolidated Balance Sheet
at 31 January 2000
                                                  2000                    1999
                                                 £'000                    '000

Fixed assets                                                    

Investments                                    135,595                 130,100
            
Current assets
Stock of investments                               209                     371
Debtors                                          3,194                   3,128
Cash at bank                                     1,160                   2,981
                                                _______                _______
                                                 4,563                   6,480
                                                _______                _______

Creditors: amounts falling due within one year 

Bank loans and overdrafts                       1,410                    4,312
other creditors and accruals                    3,652                    7,143
                                                ------                 -------
                                                5,062                   11,455
                                                ------                --------
Net current liabilities                         (499)                  (4,975)
                                                -----                 --------

Total assets less current liabilities         135,096                  125,125
Creditors: amounts falling due after more 
than one year                                   
Bank loans                                      10,043                   8,919
Debenture loan -Convertible Unsecured 
Loan Stock 2013                                    486                     607
                                               ________               ________
                                               124,567                115,599
                                               --------               --------
Capital and reserves                                                   
Called up share capital                            539                    538
Share premium account                              629                    629
Capital reserve - realised                     100,399                106,453
Capital reserve - unrealised                    22,596                  7,630
Revenue reserve                                    394                    342
                                               -------                -------
Equity shareholders' funds                     124,557                115,592
Minority interests                                  10                      7
                                               _______                _______

                                               124,567                115,599
                                               _______                _______
Notes:

The above results for the year to 31 January 2000 are unaudited.

The statutory accounts for the year ended 31 January 2000 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 sent to
shareholders shortly and will also be available for collection from the
Company's registered office at 10 Park Place, London SW1A 1LP.  The Annual
General Meeting is to be held on 19 June 2000 at 12 noon at Ground Floor,
Ryder Court, 14 Ryder Street, London, SW1Y 6QB.

The above results for 31 January 1999 are an abridged version of the Company's
full accounts which received an audit report that was unqualified and did not
contain statements under s237(2) or (3) of the Companies Act 1985 and which
have been filed with the Registrar of Companies.


EN 
FR EAXSAFEDEEFE