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Henderson Smllr Cos (HSL)

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Monday 15 July, 2002

Henderson Smllr Cos

Final Results

Henderson Smaller Cos Inv Tst PLC
15 July 2002


15 July 2002

              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited Preliminary Group Results for the year ended 31 May 2002


The Chairman's Statement:

Last year we reported stockmarket volatility, and warned of more to come. Our
cautious outlook turned out to be correct, as the downturn in technology stocks
accelerated, and action was taken to rebalance the portfolio. In spite of these
warnings, it gives me no satisfaction to report a 45% drop in net asset value.

Our valuations are now considerably lower. Conditions have not, however, changed
to the extent that this causes us to alter our philosophy - which is the
commitment to growth. The fundamentals of our approach have been reviewed, and
we have adjusted the portfolio to suit difficult times.

Dividend The growth companies we invest in tend to retain the bulk of their
earnings. Capital growth, not income, is our priority. In general we expect to
pay only nominal dividends, and propose for this year once again a single and
final dividend of 0.5p, paid out of reserves.

Share buy-backs We continue to monitor our discount. During the year we
purchased 26.1 million shares for cancellation at a favourable discount,
representing 16.1% of those in issue on 31 May 2001. These buy-backs enhanced
net asset value by £9.9 million. Since the year end we have bought back a
further 2.4 million shares, and our buy-back authority was renewed at the EGM on
26 June 2002.

Prospects A great deal of bad news is out, and the prevailing gloom is already
discounted in our share price. While the short term is painful for us all, I can
only restate our continued confidence in the strategy. We will be monitoring
performance very closely.



P H G Cadbury
Chairman
12 July 2002


                                     - 2 -

              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited Preliminary Group Results for the year ended 31 May 2002


Group Statement of Total Return (incorporating the consolidated revenue account)

                                    Year ended 31 May 2002                             Year ended 31 May 2001 
                                                                                                                       
                         Revenue          Capital            Total          Revenue          Capital            Total 
                           £'000            £'000            £'000            £'000            £'000            £'000 

  Total capital                -        (240,230)        (240,230)                -        (162,352)        (162,352) 
  losses from                                                                                                         
  investments                                                                                                         
  Income from              4,592                -            4,592            4,506                -            4,506 
  fixed asset                                                                                                         
  investments                                                                                                         
  Other                      111                -              111              926                -              926 
  interest                                                                                                            
  receivable                                                                                                          
  and similar                                                                                                         
  income                                                                                                              
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Gross revenue            4,703        (240,230)        (235,527)            5,432        (162,352)        (156,920) 
  and capital                                                                                                         
  losses                                                                                                              
  Management             (2,734)                -          (2,734)          (3,022)                -          (3,022) 
  fee                                                                                                                 
  Other                    (352)                -            (352)            (344)                -            (344) 
  administrative                                                                                                      
  expenses                                                                                                            
  Irrecoverable            (416)                -            (416)            (512)                -            (512) 
  VAT                                                                                                                 
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Net                                                                                                                 
  return/(loss)                                                                                                       
  on ordinary                                                                                                         
  activities                                                                                                          
  before                   1,201        (240,230)        (239,029)            1,554        (162,352)        (160,798) 
  interest                                                                                                            
  payable and                                                                                                         
  taxation                                                                                                            
  Interest               (2,381)                -          (2,381)          (2,123)                -          (2,123) 
  payable                                                                                                             
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Net loss on                                                                                                         
  ordinary                                                                                                            
  activities                                                                                                          
  before                 (1,180)        (240,230)        (241,410)            (569)        (162,352)        (162,921) 
  taxation                                                                                                            
  Taxation on                (1)                -              (1)                -                -                - 
  net return on                                                                                                       
  ordinary                                                                                                            
  activities                                                                                                          
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Net loss on                                                                                                         
  ordinary                                                                                                            
  activities                                                                                                          
  after                  (1,181)        (240,230)        (241,411)            (569)        (162,352)        (162,921) 
  taxation                                                                                                            
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Dividends -                                                                                                         
  ordinary                                                                                                            
  shares                                                                                                              
  Final: 0.50p             (654)                -            (654)            (810)                -            (810) 
  (2001: 0.50p)                                                                                                       
                   -------------    -------------    -------------    -------------    -------------    ------------- 
  Transfer from          (1,835)        (240,230)        (242,065)          (1,379)        (162,352)        (163,731) 
  reserves                                                                                                            
                         =======          =======          =======          =======          =======          ======= 
  Loss per               (0.77)p        (157.34)p        (158.11)p          (0.34)p         (95.91)p         (96.25)p 
  ordinary                                                                                                            
  share                                                                                                               
                         =======          =======          =======          =======          =======          ======= 



The revenue columns of this statement represent the consolidated revenue
accounts of the Group


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                                     - 3 -

              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited Preliminary Group Results for the year ended 31 May 2002


Balance Sheets                                                   Group         Group          Company       Company
                                                                  2002          2001             2002          2001
                                                                 £'000         £'000            £'000         £'000
Fixed asset investments
United Kingdom listed investments at market value              255,208       518,103          255,208       518,103
AIM investments at market value                                 16,248        30,036           16,248        30,036
Unquoted investments at directors' valuation                     1,907         2,250            1,907         2,250
Subsidiary undertaking                                               -             -            2,272         3,960
                                                         ------------- -------------    ------------- -------------
                                                               273,363       550,389          275,635       554,349
                                                         ------------- -------------    ------------- -------------
Current assets
Debtors                                                          1,815         1,370            1,815         2,066
Cash at bank and short term deposits                                40        16,876               38        15,785
                                                         ------------- -------------    ------------- -------------
                                                                 1,855        18,246            1,853        17,851
Creditors: amounts falling due within one year                 (8,935)      (15,434)         (11,205)      (18,999)
                                                         ------------- -------------    ------------- -------------
Net current (liabilities)/assets                               (7,080)         2,812          (9,352)       (1,148)
                                                         ------------- -------------    ------------- -------------
Total assets less current liabilities                          266,283       553,201          266,283       553,201

Creditors: amounts falling due after more than one year       (20,000)      (20,000)         (20,000)      (20,000)
                                                         ------------- -------------    ------------- -------------
Total net assets                                               246,283       533,201          246,283       533,201
                                                              ========      ========         ========      ========
Capital and reserves
Called-up share capital                                         34,004        40,531           34,004        40,531
Other capital reserves                                         208,472       487,028          210,744       490,988
Revenue reserve                                                  3,807         5,642            1,535         1,682
                                                         ------------- -------------    ------------- -------------
Shareholders' funds (including non-equity
interests of £9,000; 2001: £9,000)                             246,283       533,201          246,283       533,201
                                                              ========      ========         ========      ========

Net asset value per ordinary share                              181.1p        328.9p           181.1p        328.9p
                                                              ========      ========         ========      ========


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                                     - 4 -

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited Preliminary Group Results for the year ended 31 May 2002


Group Cash Flow Statement                                           2002          2002          2001            2001
                                                                   £'000         £'000         £'000           £'000

Net cash inflow from operating activities                                        1,282                         1,284

Servicing of finance
Debenture interest paid                                          (2,100)                     (3,150)
Bank overdraft and loan interest paid                              (261)                        (23)
                                                           -------------               -------------
Net cash outflow from servicing of finance                                     (2,361)                       (3,173)

Taxation
UK tax recovered                                                       -                          10
Overseas tax recovered                                                 -                          33
                                                           -------------               -------------
Net tax recovered                                                                    -                            43

Financial investment
Purchases of investments                                       (115,920)                   (117,448)
Sales of investments                                             137,809                     129,405
                                                           -------------               -------------
Net cash inflow from financial investment                                       21,889                        11,957

Equity dividends paid                                                            (784)                         (852)

Management of liquid resources
Cash withdrawn from deposit                                                     10,000                        10,000

Financing
Purchase of ordinary shares                                     (44,863)                    (25,038)
Drawdown of loans                                                  8,000                           -
                                                           -------------               -------------
                                                                              (36,863)                      (25,038)
                                                                         -------------                 -------------
Decrease in cash                                                               (6,837)                       (5,779)
                                                                              ========                      ========
Reconciliation of net cash flow to movements in net (debt)/funds
Decrease in cash as above                                                      (6,837)                       (5,779)
Cash inflow from management of liquid resources                               (10,000)                      (10,000)
Cash inflow from debt financing                                                (8,000)                             -
                                                                         -------------                 -------------
Change in net debt resulting from cash flows                                  (24,837)                      (15,779)
Exchange movements                                                                   1                             1
                                                                         -------------                 -------------
Movement in net debt in the year                                              (24,836)                      (15,778)
Net (debt)/funds as at 1 June                                                  (3,124)                        12,654
                                                                         -------------                 -------------
Net debt at 31 May                                                            (27,960)                       (3,124)
                                                                              ========                      ========



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                                     - 5 -



              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited Preliminary Group Results for the year ended 31 May 2002

Notes:


        1.     Loss per ordinary share

        The revenue loss per ordinary share is based on the losses
        attributable to the ordinary shares of £1,181,000 (2001: £569,000) and
        on the weighted average number of ordinary shares in issue during the
        year of 152,680,943 (2001: 169,276,109).

        The capital loss per ordinary share is based on the net capital losses
        for the year of £240,230,000 (2001: £162,352,000) and on the weighted
        average number of ordinary shares in issue during the year of
        152,680,943 (2001: 169,276,109).

        2.      Issued Share Capital


        There were 135,980,999 shares of 25p in issue at 31 May 2002 (31 May
        2001: 162,089,094).

        3.     Dividend

             The recommended final dividend of 0.5p per ordinary share, subject
        to approval at the Annual General Meeting, will be paid on 1 October
        2002 to shareholders on the register at the close of business on 6
        September 2002.

        The final dividend accrued in respect of the year ended 31 May 2002, at
        0.5p per ordinary share, amounts to £680,000. The buy-backs of the
        Company's ordinary shares, after 31 May 2001 but before the record date
        of the final dividend for the year ended on that date, resulted in a
        write-back of £26,000 for dividends accrued in respect of the year ended
        31 May 2001 but not in the event payable. The £654,000 shown is the sum
        of these two figures.

        4.     Basis of consolidation

             The Group accounts consolidate the accounts of the Company and of
        its wholly owned subsidiary undertaking, Henderson Smaller Companies
        Finance Limited.

        5.     2002 Accounts


             The preliminary figures for the year ended 31 May 2002 are an
        extract from the Group's accounts for that year. These accounts have not
        yet been delivered to the Registrar of Companies, nor have the auditors
        yet reported on them.

        6.     2001 Accounts

             The figures and financial information for the year ended 31 May
        2001 are an extract of the latest published accounts and do not
        constitute the statutory accounts for that year. These accounts have
        been delivered to the Registrar of Companies and included the report of
        the auditors which was unqualified and did not contain a statement under
        either section 237(2) or section 237(3) of the Companies Act 1985.



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                                     - 6 -

              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC


           Unaudited Preliminary Group Results for the year ended 31 May 2002

        7.     Annual General Meeting

             The full annual report and accounts will be posted to shareholders
        in late August 2002 and copies will be available thereafter from the
        Secretary at the Company's Registered Office, 4 Broadgate, London EC2M
        2DA. The Annual General Meeting will be held on Friday 27 September 2002
        at 2.00 pm.


                                    - ENDS -



   For further information please contact :

   John Alexander           or     Mark Vickery

   The Henderson Smaller Companies Investment Trust plc   Henderson Press Office

   Telephone:      020 7818 4340               Telephone: 020 7818 4222

   Andrew Stack

   The Henderson Smaller Companies Investment Trust plc

   Telephone: 020 7818 4351

   Stephen Westwood

   Head of Investment Trusts

   Henderson Global Investors

   020 7818 5517



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