Final Results

Scottish Oriental Smlr Co Tst PLC
16 October 2003


               THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

             Preliminary Results for the year ended 31 August 2003
                     (Extracted from the Audited Accounts)


The Board of The Scottish Oriental Smaller Companies Trust PLC is pleased to
announce the results for the year ended 31August 2003.

These results are presented in a format which summarises the information which
will be given in the forthcoming Annual Report.


Financial Highlights


• Fully diluted net asset value per ordinary share rose by 22.6% from
  133.77p to 163.94p and undiluted net asset value rose by 26.2% from 138.56p to
  174.91p.

• This compares with a rise of 12.8% in the benchmark index - the MSCI
  AC Asia Free (ex Japan) Index.

• The Nomura Asia Small Cap Index and the FTSE All-Share Index rose
  17.5% and 0.9% respectively over the same period.

• Share price rose by 26.1% from 123.75p to 156.00p.

• Warrant price rose by 36.4% from 49.50p to 67.50p.

• A final dividend of 1.50p net is recommended to be paid on 23 January
  2004 to shareholders registered on 19 December 2003.



Statement of Total Return for the year ended 31 August 2003

                                   2003                          2002

                      Income*   Capital    Total   Income*    Capital    Total
                        £'000     £'000    £'000      £'000     £'000    £'000

Gains on                    -     9,172    9,172          -     6,923    6,923
investments
Income from             1,245         -    1,245      1,132         -    1,132
investments
Other income               69         -       69         79         -       79
Investment management    (362)        -     (362)      (351)        -     (351)
fees
Currency (losses) /         -       (18)     (18)         -       103      103
gains
Other administrative     (229)        -     (229)      (205)        -     (205)
expenses               --------  --------  -------  ---------   -------  -------

Net return before
finance costs and
taxation                  723     9,154    9,877        655     7,026    7,681
Finance costs of          (42)      (12)     (54)       (49)        -      (49)
borrowing              --------  --------  -------  ---------   -------  -------

Return on ordinary
activities before
taxation                  681     9,142    9,823        606     7,026    7,632
Tax on ordinary          (185)        2     (183)      (161)        -     (161)
activities             --------  --------  -------  ---------   -------  -------

Return attributable       496     9,144    9,640        445     7,026    7,471
to equity
shareholders
Ordinary dividends on    (382)        -     (382)      (382)        -     (382)
equity shares          --------  --------  -------  ---------   -------  -------

Transfer to reserves**    114     9,144    9,258         63     7,026    7,089
                       --------  --------  -------  ---------   -------  -------

Basic Return per         1.95p    35.90p   37.85p      1.75p    27.59p   29.34p
ordinary share
Fully diluted return     1.90p    35.05p   36.95p      1.72p    27.10p   28.82p
per ordinary share
(in accordance with
FRS 14)


* The income column of this statement is the Profit and Loss Account of the
Company.

All income and capital items derive from continuing operations.

** after dividend proposed for 2003 - £382,036 (2002: £381,994)



Summary Balance Sheet as at 31 August 2003
                                                            2003              2002

                                          £'000       £'000      £'000       £'000

Total investments                                    44,393                 36,947
Current Assets:
Debtors                                     181                    261
Cash and deposits                         4,271                  1,428
                                         --------               --------
                                          4,452                  1,689
Current Liabilities (due within one
year)
Creditors                                  (244)                (2,906)
Dividend payable                           (382)                  (382)
                                         --------               --------
                                           (626)                (3,288)
Net current assets / (liabilities)                    3,826                 (1,599)
                                                     --------               --------
                                                     48,219                 35,348
Creditors (due after one year)
Foreign currency loan                                (3,631)                     -
Provision for liabilities and
charges
Deferred tax                                            (41)                   (62)
                                                     --------               --------
Shareholders' funds                                  44,547                 35,286
                                                     ========               ========

Capital and reserves                                 44,547                 35,286
                                                     ========               ========

Net asset value per share -                          174.91p                138.56p
undiluted
Net asset value per share - fully                    163.94p                133.77p
diluted





Summary Cash Flow Statement for the year ended 31 August 2003

                                                              2003        2002
                                                             £'000       £'000

Net cash inflow from operating activities                      819         615
Interest paid on borrowings                                    (42)        (50)
Taxation                                                      (155)       (204)
Net cash inflow / (outflow) from capital expenditure and     1,700      (1,945)
financial investment
Equity dividend paid                                          (382)       (461)
Financing                                                      903           -
                                                          ----------  ----------
Increase  / (decrease) in cash                               2,843      (2,045)
                                                          ==========  ==========


(a) Reconciliation of Total Income to Net cash inflow from operating activities

                                                           2003           2002
                                                          £'000          £'000

Income                                                    1,314          1,211
Administration expenses                                    (591)          (556)
Decrease / (increase) in debtors                             81            (57)
Increase in creditors                                        15             17
                                                       ----------     ----------
Net cash inflow from operating activities                   819            615
                                                       ==========     ==========


(b) Analysis of changes in cash and net debt during the year

                   At the start of       Cash        Currency     At the end of 
                          the year      Flows       Movements          the year
                             £'000      £'000           £'000             £'000
                                        
Cash                         1,428      2,843              -             4,271
Foreign Currency            (2,726)      (900)            (5)           (3,631)
Loan                      ----------  ---------      ---------        ----------
Net debt                    (1,298)     1,943             (5)              640
                          ==========  =========      =========        ==========



BOARD STATEMENT

Investment Performance

Scottish Oriental performed exceptionally well in both absolute and relative
terms over the period. Although helped by a further re-rating of smaller
companies as a whole, careful stock selection and geographical positioning
contributed significantly to reported results. The Trust's investments in India,
Sri Lanka and Thailand did particularly well.

The performance of Asian stockmarkets over this period has been strong but
volatile. The key issues affecting the stockmarkets' performance have been the
perceived outlook for the US economy, the war in Iraq and concerns over North
Korea's stated intention to develop nuclear weapons. The outbreak of the SARS
virus between March and June dealt a hard, albeit short-lived, blow to the
Region, particularly Hong Kong and Singapore, but markets subsequently
experienced a strong rebound.  Smaller companies generally outperformed their
larger counterparts, owing to inexpensive valuations and superior earnings
growth.

Scottish Oriental's fully diluted net asset value rose 22.6 per cent to 163.94p
and the undiluted net asset value rose 26.2 per cent to 174.91p over the
twelve-month period.  This compares with sterling-adjusted increases of 12.8 per
cent in the MSCI AC Asia Free (ex Japan) Index (the Trust's benchmark) and 17.5
per cent in the Nomura Asia Small Cap Index respectively.  The FT-SE All-Share
Index rose 0.9 per cent in the year ending 31 August 2003.

Smaller companies have recently outperformed larger companies, but in some cases
their shares are not always readily tradeable, particularly if large volumes are
involved.

Gearing

Scottish Oriental renewed its Yen borrowing facility in February 2003. The total
borrowing increased to 670 million Yen (£3.6m) from 500 million Yen (£2.7m),
which represents approximately 8.1 per cent of net assets at 31 August 2003
(2002: 7.7 per cent). The interest rate on the borrowing is 1.04 per cent and
the facility matures on 28 February 2007. This borrowing continues to give the
Trust flexibility to enhance long term returns.


Performance for the year ended 31 August 2003

Net Asset Value - fully           +22.6%  MSCI AC Asia Free (ex Japan)   +12.8%
                  diluted
                - undiluted       +26.2%  Index (£)
                                          Nomura Asia Small Cap          +17.5%
Share Price                       +26.1%  Index (£)
Warrant Price                     +36.4%  FTSE All-Share Index (£)        +0.9%



Summary Data at 31 August 2003

Shares in issue                 25,469,050   Shareholders' Funds        £44.55m
Warrants in issue                4,744,600   Market Capitalisation      £39.73m

Net Asset Value per share           163.94p  Share Price Discount to
               - fully diluted               Net Asset
               - undiluted          174.91p  Value  - fully diluted        4.8%
                                                    - undiluted           10.8%
Share Price                         156.00p
Warrant Price                        67.50p



Outlook

Susie Rippingall, Portfolio Manager, Scottish Oriental Smaller Companies Trust
said, 'The prospects for Asian stockmarkets remain positive, although the key to
absolute returns in the short term may depend more on trends in the global
economy than on local influences.  Exports are expected to remain robust as the
developed world continues to outsource much of its manufacturing and a few
service industries to Asia.  The high savings and low interest rates generally
prevailing, provide a compelling background for both domestic consumption growth
and increasing retail participation in local stockmarkets.

'There are some underlying financial and structural issues in Asia which we will
be monitoring closely. Progress in restructuring some countries' banking and
financial sectors has been slow.  The long term sustainability of some
countries' fixed exchange rates remains questionable.  Over-investment in fixed
assets by the public sector and state-owned enterprises in China needs to be
monitored closely.  However, for selected companies and industries, the outlook
is encouraging.

'Despite their recent outperformance, Asian smaller companies continue to trade
at discounts to their larger counterparts.

'Scottish Oriental's investment philosophy is well suited for the current
stockmarket volatility, given its focus on well-managed, financially sound
companies.'

Dividend

A final dividend of 1.50p net (2002: 1.50p net) for the year ended 31 August
2003 is recommended to be paid on 23 January 2004 to shareholders registered on
19 December 2003. As Scottish Oriental's objective is to achieve long-term
capital growth, the Board deems it desirable to retain the most cautious
dividend policy commensurate with maintaining investment trust status.


Notes:

(1) The financial information contained within this Preliminary Announcement
does not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985. The results for the years ended 31st August 2003 and 2002
are an abridged version of the statutory accounts for those years, which
received unqualified audit reports and did not contain statements under sections
237(2) or (3) of the Companies Act 1985. Statutory accounts for 2002 have been
filed with the registrar of Companies and those for 2003 will be delivered in
due course.

(2) The accounting policies applied in preparing these accounts are consistent
with those applied in the latest published annual accounts.

(3) The terms of the Preliminary Announcement were approved by the Board on 16
October 2003.

(4) Copies of the Annual Report will be posted to shareholders shortly and
further copies may be obtained from the registered office at 23 St Andrew
Square, Edinburgh, EH2 1BB.


Enquiries:       Lauren Stewart, Media Relations Manager,
                 First State Investments, Ph: 44 (0) 207 332 6542

                 Susie Rippingall, Portfolio Manager,
                 First State Investments, Ph: 44 (0) 131 473 2528


16 October 2003


                      This information is provided by RNS
            The company news service from the London Stock Exchange