Final Results

RNS Number : 9405F

Scottish Oriental Smlr Co Tst PLC

15 October 2008

THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

Preliminary Results for the year ended 31 August 2008

(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 31 August 2008.

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

A final dividend of 5.0p, an increase of 8.7% on the Trust's final dividend of 4.6p for 2007.
Net asset value per ordinary share declined by 9.3% from 344.67p to 312.78p
This compares with a decline of 8.8% in the benchmark index - the MSCI AC Asia (ex Japan) Index.
The Nomura Asia Small Cap Index declined 22.7% and the FTSE All-Share Index declined 8.7% respectively over the same period.
The share price declined by 16.6% from 314.00p to 262.00p

Comment on Results

Scottish Oriental's performance was disappointing both in absolute terms and relative to its benchmark. This was attributed to the underperformance of smaller companies as seen from the larger decline in the Nomura Asia Small Cap Index. Two of the Trust's holdings, Datacraft Asia and Unisteel Technology have received bids. It is likely that the cash proceeds will be received over the next few months.

Performance for the year ended 31 August 2008

Net Asset Value	-9.3%	MSCI AC Asia (ex Japan)	-8.8%
		Index (£) *

Share Price	-16.6%	Nomura Asia Small Cap	-22.7%
		Index (£) *

		FTSE All-Share Index (£) *	-8.7%

Performance for the period 31st August 1998 to 31st August 2008

Net Asset Value	477.1%	MSCI AC Asia (ex Japan)	272.1%
		Index (£)*
		FTSE All-Share Index (£)*	59.0%

* Total return (capital return with dividends reinvested)

Dividend

A final dividend of 5p net (2007 4.6p) is recommended to be paid on 28 January 2009 to shareholders registered on 19 December 2008.

Retirement of Director

Stanley Rowan will retire from the Board on 31st October 2008.

Income Statement for the year ended 31 August 2008

2008 2007

	Revenue* £'000	Capital £'000	Total £'000	Revenue* £'000	Capital £'000	Total £'000

(Losses)/Gains on investments	-	(10,366)	(10,366)	-	26,257	26,257
Income from investments	3,480	-	3,480	3,187	-	3,187
Other income	163	-	163	192	-	192
Investment management fee	(512)	-	(512)	(481)	-	(481)
Currency gains/(losses)	-	111	111	-	(226)	(226)
Other administrative expenses	(310)	-	(310)	(308)	-	(308)

Net return before finance costs and taxation	2,821	(10,255)	(7,434)	2,590	26,031	28,621
Finance costs of borrowing	-	-	-	(1)	-	(1)

Return on ordinary activities before taxation	2,821	(10,255)	(7,434)	2,589	26,031	28,620
Tax on ordinary activities	(813)	-	(813)	(777)	-	(777)

Return attributable to equity shareholders	2,008	(10,255)	(8,247)	1,812	26,031	27,843

Return per ordinary share	6.64p	(33.94)p	(27.30)p	6.35p	91.19p	97.54p
Fully diluted return per ordinary share (in accordance with FRS 22)	6.64p	(33.94)p	(27.30)p	6.11p	87.80p	93.91p

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

All revenue and capital items derive from continuing operations.

A Statement of Total Recognised Gains or Losses has not been prepared as any gains or losses are

recognised in the Income Statement.

Summary Balance Sheet as at 31 August 2008

	2008			2007
	£'000	£'000	£'000		£'000

Total investments		91,574			95,492
Current Assets:
Debtors	611		2,351
Cash and deposits	2,865		6,877
	3,476		9,228
Current Liabilities (due within one year)
Creditors	(429)		(469)
	(429)		(469)
Net current assets		3,047			8,759
		94,621			104,251

Provision for liabilities and charges
Deferred tax		(120)			(113)
Equity shareholders' funds		94,501			104,138

Capital and reserves
Ordinary share capital		7,554			7,554
Share premium account		21,337			21,337
Warrant reserve
exercised		1,319			1,319
Capital Reserves
realised		58,495			44,151
unrealised		1,676			26,275
Revenue Reserve		4,120			3,502
		94,501			104,138

Net asset value per share		312.78p			344.67p


Reconciliation of Movements in Shareholders’ Funds
For the year ended 31 August 2008

	Share Capital	Share premium account	Warrant Reserve Exercised	Capital Reserve Realised	Capital Reserve Unrealised	Revenue Reserve	Total
	£000	£000	£000	£000	£000	£000	£000
Balance at 31 August 2007	7,554	21,337	1,319	44,151	26,275	3,502	104,138
Realised gains on investments	-	-	-	14,233	-	-	14,233
Currency gain	-	-	-	111	-	-	111
Unrealised depreciation on investments in the year	-	-	-	-	(24,599)	-	(24,599)
Income retained in the year	-	-	-	-	-	2,008	2,008
Dividend paid in the year	-	-	-	-	0	(1,390)	(1,390)
Balance at 31 August 2008	7,554	21,337	1,319	58,495	1,676	4,120	94,501


Reconciliation of Movements in Shareholders’ Funds
For the year ended 31 August 2007

	Share Capital	Share premium account	Warrant Reserve Unexercised	Warrant Reserve Exercised	Capital Reserve Realised	Capital Reserve Unrealised	Revenue Reserve	Total
	£000	£000	£000	£000	£000	£000	£000	£000
Balance at 31 August 2006	6,559	18,354	1,105	214	32,610	11,785	2,634	73,261
Realised gains on investments	-	-	-	-	11,767	-	-	11,767
Currency loss	-	-	-	-	(226)	-	-	(226)
Warrants exercised	995	2,983	(1,105)	1,105	-	-	-	3,978
Unrealised appreciation on investments in the year	-	-	-	-	-	14,490	-	14,490
Income retained in the year	-	-	-	-	-	-	1,812	1,812
Dividend paid in the year	-	-	-	-	-	-	(944)	(944)
Balance at 31 August 2007	7,554	21,337	-	1,319	44,151	26,275	3,502	104,138

Summary Cash Flow Statement for the year ended 31 August 2008

	2008 £'000	2007 £'000

Net cash inflow from operating activities	2,767	2,455
Interest paid on borrowings	-	(1)
Taxation	(856)	(837)
Net cash outflow from capital expenditure and financial investment	(4,533)	(2,599)
Equity dividend paid	(1,390)	(944)
Financing	-	3,978
(Decrease)/increase in cash	(4,012)	2,052

(a) Reconciliation of total income to net cash inflow from operating activities

	2008 £'000	2007 £'000

Income	3,643	3,379
Administration expenses	(823)	(789)
Decrease/(increase) in debtors	24	(10)
Increase in dividends accounted for but not yet received	(60)	(151)
(Decrease)/increase in creditors	(17)	26
Net cash inflow from operating activities	2,767	2,455

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

At the start of the Year

£'000

Cash

Flows

£'000

At the end of the Year

£'000

Cash

6,877

(4,012)

2,865

Summary Data at 31 August 2008

Shares in issue	30,213,650	Shareholders' Funds	£94.50m
		Market Capitalisation	£79.16m

Net Asset Value per share	312.78p	Share Price Discount to Net Asset Value	16.2%

Share Price	262.00p

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 2008 and 2007 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 2007 have been filed with the Registrar of Companies and those for 2008 will be delivered in due course.

(2) The terms of the Preliminary Announcement were approved by the Board on 15 October 2008.

(3) 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.