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Henderson Smllr Cos (HSL)

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Monday 26 January, 2004

Henderson Smllr Cos

Interim Results

Henderson Smaller Cos Inv Tst PLC
26 January 2004


        HENDERSON GLOBAL INVESTORS
        THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
        26 January 2004


                  THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

           Unaudited interim results for the half year ended 30 November 2003


        Highlights

        Strong performance:

  • Net asset value per share up 28%
  • Benchmark index up 23%


        The Chairman's Statement:

        When I reported to you last July, in the annual report for the year
        ended 31 May 2003, I expressed confidence that we would perform well in
        the year ahead. In the interim period to 30 November 2003 our net asset
        value per share rose by 28% to 156p, compared with an increase in the
        benchmark index, on a total return basis, of 23%. This performance
        suggests that our confidence in the Trust's new management team has been
        well placed. It has been most encouraging to see the Company's name
        feature strongly in recent performance tables.

        Our portfolio, with its bias towards economically sensitive sectors such
        as Media, Electronics, Support Services and Software and Computer
        Services, has benefited from the global economic recovery. To fund
        additional investment in these sectors our managers have exercised
        strong selling disciplines. Increased bid activity and some revival in
        the new issues market have provided opportunities to take profits and to
        reinvest in new businesses. Nevertheless, the structure of the portfolio
        remains largely as outlined in some detail in the annual report.

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                                      - 2 -

                  THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

           Unaudited interim results for the half year ended 30 November 2003

        Chairman's Statement cont/d...

          Our debenture stock is expensive to service but the gearing which it
            provides has helped us to make the most of the rising market. In
          addition, we have made some use of our short-term borrowing facility
        during the period and, subject to regular review by the board, expect to
                                   continue to do so.

        The revenue account has strengthened, reflecting in part the emphasis
        that our fund managers place on investment income. However, capital
        growth remains our priority. We shall maintain the discipline of
        allocating all our costs, including interest payable, against revenue.

        After three years of negative returns, share prices rose in 2003 with
        smaller companies performing much more strongly than the market as a
        whole. That outperformance is unlikely to continue to so marked an
        extent. We remain confident, however, that the active management of our
        portfolio will provide additional value for shareholders as we approach
        the continuation vote scheduled for September 2004.

        J Dudley Fishburn
        Chairman
        23 January 2004

                                    - MORE
                                     - 3 -


              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

         Unaudited interim results for the half year ended 30 November 2003

Group Statement of Total Return (incorporating the revenue account)+
for the half year ended 30 November 2003

                       Half year ended                     Half year ended                      Year ended            
                      30 November 2003                    30 November 2002                 31 May 2003 (audited)      
                 Revenue     Capital      Total      Revenue     Capital      Total     Revenue     Capital    Total  
                   £'000       £'000      £'000        £'000       £'000      £'000       £'000       £'000      £'000
  Total                                                                                                               
  capital                                                                                                             
  gains/(losses)                                                                                                        
  from                                                                                                            
  Investments          -      39,552     39,552           -   (100,987)   (100,987)          -    (85,899)    (85,899)
                                                                                                                      
  Income           1,956           -      1,956       1,869           -      1,869       4,042           -       4,042
  from fixed                                                                                                          
  asset                                                                                                               
  investments                                                                                                         

  Other                                                                                                               
  interest                                                                                                            
  receivable                                                                                                          
  and similar                                                                                                         
  Income              87           -         87          20           -         20          98           -          98
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
                                                                                                                    
  Gross            2,043      39,552     41,595       1,889   (100,987)   (99,098)       4,140     (85,899)   (81,759)
  revenue                                                                                                             
  and                                                                                                                 
  capital                                                                                                             
  gains/(losses)                                                                                                        
  Management       (343)           -      (343)        (796)           -      (796)     (1,078)           -    (1,078)
  fee                                                                                                                 

  Other            (173)           -      (173)       (221)           -      (221)       (408)           -       (408)
  administrative                                                                                                        
  expenses                                                                                                            

  Irrecoverable     (77)           -       (77)       (145)           -       (145)      (202)           -       (202)
  VAT                                                                                                              
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
                                                                                                                   
  Net                                                                                                                 
  return/(loss)
  on ordinary                                                                                                           
  activities                                                                                                          
  before                                                                                                              
  interest                                                                                                            
  payable                                                                                                             
  and              1,450      39,552     41,002         727   (100,987)   (100,260)      2,452    (85,899)    (83,447)
  taxation                                                                                                            

  Interest       (1,069)           -    (1,069)     (1,145)           -    (1,145)     (2,208)           -     (2,208)
  payable                                                                                                             
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------

  Net                                                                                                                 
  return/(loss) 
  on ordinary                                                                                                           
  activities         381      39,552     39,933        (418)   (100,987)  (101,405)         244    (85,899)   (85,655)
  before                                                                                                              
  taxation                                                                                                            

  Taxation                                                                                                            
  on net                                                                                                              
  return on                                                                                                           
  ordinary                                                                                                            
  Activities           -           -          -            1           -          1           1           -          1
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------

  Net                                                                                                                 
  return/(loss)                                                                                                         
  on ordinary                                                                                                           
  activities         381      39,552     39,933        (417)   (100,987)  (101,404)         245    (85,899)   (85,654)
  after                                                                                                               
  taxation                                                                                                            

  Final                -           -          -          24           -         24       (561)           -       (561)
  dividend:                                                                                                           
  0.50p                                                                                                               
  (note 4)                                                                                                            
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------

  Transfer           381      39,552     39,933        (393)   (100,987)  (101,380)       (316)    (85,899)   (86,215)
  to/(from)                                                                                                           
  reserves                                                                                                            
                 =======     =======    =======     =======     =======    =======     =======     =======    ======= 
  Return/(loss)    0.33p      33.82p     34.15p     (0.33)p    (80.18)p   (80.51)p       0.20p    (69.35)p    (69.15)p
  per ordinary                                                                                                          
  share                                                                                                               
  (note 1)                                                                                                            
                 =======     =======    =======     =======     =======    =======     =======     =======    ======= 
+ The revenue columns of this statement represent the consolidated revenue 
  accounts of the Group (see note 3).

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                                          - 4 -

             THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC 
       Unaudited interim results for the half year ended 30 November 2003 

Group Balance Sheet 
at 30 November 2003

                                                                                                                 
                                                  30 November 2003    30 November 2002    31 May 2003 (audited)  
                                                             £'000               £'000                     £'000
      Fixed asset investments                                                                                    
      UK listed investments at market value                193,753             139,017                   153,434 
      AIM investments at market value                       12,187               8,657                     7,368 
      Unquoted investments at                                  572                 896                       896 
      directors' valuation                                                                                       
                                                        ----------          ----------                ---------- 
                                                           206,512             148,570                   161,698 
                                                        ----------          ----------                ---------- 
      Current assets                                                                                             
      Debtors                                                  603               6,103                     1,571 
      Cash at bank and short term deposits                     269               2,465                     2,719 
                                                        ----------          ----------                ---------- 
                                                               872               8,568                     4,290 
      Creditors : amounts falling due within                                                                     
      one year                                             (4,961)             (5,397)                   (3,498) 
                                                        ----------          ----------                ---------- 
      Net current (liabilities)/assets                     (4,089)               3,171                       792 
                                                        ----------          ----------                ---------- 
      
      Total assets less current liabilities                202,423             151,741                   162,490 
      Creditors: amounts falling due after                                                                       
      more than one year                                  (20,000)            (20,000)                  (20,000) 
                                                        ----------          ----------                ---------- 

      Total net assets                                     182,423             131,741                   142,490 
                                                        ----------          ----------                ---------- 
      Capital and reserves                                                                                       
      Called-up share capital                               29,248              30,635                    29,248 
      Other capital reserves                               149,303              97,692                   109,751 
      Revenue reserve                                        3,872               3,414                     3,491 
                                                        ----------          ----------                ---------- 

      Shareholders' funds (including non-                                                                        
      equity interests of £9,000;                                                                                
      2002: £9,000)                                        182,423             131,741                   142,490 
                                                            ======              ======                    ====== 
      Net asset value per ordinary share                    156.0p              107.5p                    121.8p 
                                                            ======              ======                    ====== 

                              - MORE -
                               - 5 -


               THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC 
          Unaudited interim results for the half year ended 30 November 2003 

Group Cash Flow Statement 
for the half year ended 30 November 2003
                                                                                       Half year ended     Year ended 
                                                                   Half year ended    30 November 2002    31 May 2003 
                                                                  30 November 2003               £'000      (audited) 
                                                                             £'000                              £'000 

  Net cash inflow from operating activities                                  1,918               1,691          2,797 
  Net cash outflow from servicing of finance                               (1,051)               (101)        (1,161) 
  Net tax recovered                                                              -                   1              5 
  Net cash (outflow)/inflow from                                                                                      
  financial investment                                                     (5,332)              22,631         27,253 
  Equity dividends paid                                                      (585)               (656)          (656) 
  Management of liquid resources                                                 -                   -              - 
                                                                        ----------          ----------     ---------- 

  Net cash (outflow)/inflow before financing                               (5,050)              23,566         28,238 
  Net cash inflow/(outflow) from financing                                   2,600            (21,143)       (25,560) 
                                                                        ----------          ----------     ---------- 

  (Decrease)/increase in cash                                              (2,450)               2,423          2,678 
                                                                            ======              ======         ====== 

  Reconciliation of net revenue return to net cash inflow from operating activities                                   

  Net revenue before interest payable and taxation                           1,450                 727          2,452 
  Decrease in accrued income                                                   548                 793            194 
  Decrease in debtors                                                           10                 166            135 
  (Decrease)/increase in creditors                                            (90)                   5             16 
                                                                        ----------          ----------     ---------- 

  Net cash inflow from operating activities                                  1,918               1,691          2,797 
                                                                            ======              ======         ====== 

  Reconciliation of net cash flow to movement in net debt                                                             
  (Decrease)/increase in cash as above                                     (2,450)               2,423          2,678 
  Cash inflow from management of liquid resources                                -                   -              - 
  Cash (inflow)/outflow from debt financing                                (2,600)               8,000          8,000 
                                                                        ----------          ----------     ---------- 

  Change in net debt resulting from cash flows                             (5,050)              10,423         10,678 
  Exchange movements                                                             -                   2              1 
                                                                        ----------          ----------     ---------- 

  Movement in net debt during the period                                   (5,050)              10,425         10,679 
  Net debt at the beginning of the period                                 (17,281)            (27,960)       (27,960) 
                                                                        ----------          ----------     ---------- 

  Net debt at the end of the period                                       (22,331)            (17,535)       (17,281) 
                                                                            ======              ======         ====== 

  Represented by:                                                                                                     
  Cash at bank and short term deposits                                         269               2,465          2,719 
  Debt falling due within one year                                         (2,600)                   -              - 
  Debt falling due after more than one year                               (20,000)            (20,000)       (20,000) 
                                                                        ----------          ----------     ---------- 
                                                                          (22,331)            (17,535)       (17,281) 
                                                                            ======              ======         ====== 

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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

          Unaudited interim results for the half year ended 30 November 2003

                                     Notes

        1.     Return/(loss) per ordinary share


        The revenue return per ordinary share is based on the earnings
        attributable to the ordinary shares of £381,000 (half year ended 30
        November 2002: losses of £417,000; year ended 31 May 2003: earnings of
        £245,000) and on the weighted average number of ordinary shares in issue
        during the half year of 116,956,840 (half year ended 30 November 2002:
        125,954,417; year ended 31 May 2003: 123,856,800).

        The capital return per ordinary share is based on the net capital gains
        for the half year of £39,552,000 (half year ended 30 November 2002: net
        capital losses of £100,987,000; year ended 31 May 2003: net capital
        losses of £85,899,000) and on the weighted average number of ordinary
        shares in issue during the half year of 116,956,840 (half year ended 30
        November 2002: 125,954,417; year ended 31 May 2003: 123,856,800).

        2.     Net asset value per ordinary share

        The net asset value per ordinary share is based on the net assets
        attributable to the ordinary shares of £182,414,000 (30 November 2002:
        £131,732,000; 31 May 2003: £142,481,000) and on the 116,956,840 ordinary
        shares in issue (30 November 2002: 122,501,840; 31 May 2003:
        116,956,840).

       3.     Basis of consolidation


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

        4.     Interim Dividend

        No interim dividend has been declared (2002: nil).

        The final dividend accrued in respect of the year ended 31 May 2003
        at 0.5p per ordinary share amounted to £585,000. The buy-backs of the
        Company's ordinary shares, after 31 May 2002 but before the record date
        of the final dividend for the year ended on that date, resulted in a
        write-back of £24,000 for dividends accrued in respect of the year ended
        31 May 2002 but not in the event payable. The £561,000 shown is the sum
        of these two figures.


        5.     Accounts for the year ended 31 May 2003

        The figures and financial information for the year ended 31 May
        2003 are an extract from the latest published accounts of the Group and
        do not constitute the statutory accounts for that year. Those 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 237(3) of the Companies Act
        1985.

        6.     Interim Report

        The full interim report will be posted to shareholders in February
        2004 and copies will be available thereafter from the Secretary at the
        Company's Registered Office, 4 Broadgate, London EC2M 2DA.

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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

           Unaudited interim results for the half year ended 30 November 2003


        Largest Investments
        The 60 largest investments at 30 November 2003 were as follows:

                                             Valuation at                                                   Valuation at
                                         30 November 2003                                               30 November 2003
                                                    £'000                                                          £'000

Informa                                             7,627      Scottish Radio                                      2,243
Games Workshop                                      7,258      Kidde                                               2,241
W S Atkins                                          7,024      Domnick Hunter                                      2,176
Clinton Cards                                       6,671      Capital & Regional                                  2,056
Balfour Beatty                                      6,401      Taylor Nelson Sofres                                1,976
Interserve                                          5,074      Rotork                                              1,961
Bellway                                             4,879      Punch Taverns                                       1,954
Westbury                                            4,387      Marshalls                                           1,930
ITNET                                               4,217      Pillar Property                                     1,913
Domino Printing Sciences                            4,202      Greene King                                         1,840
WSP Group                                           3,857      SIG                                                 1,800
Tribal                                              3,700      Greggs                                              1,767
Enodis                                              3,677      *Systems Union                                      1,663
Meggitt                                             3,627      First Technology                                    1,657
Intermediate Capital                                3,559      Laird                                               1,632
Taylor & Francis                                    3,536      Paragon                                             1,589
Mouchel                                             3,164      Spectris                                            1,574
Bovis Homes                                         3,157      *CODASciSys                                         1,534
Go-Ahead                                            3,020      *Ask Central                                        1,517
NHP                                                 2,906      Wembley                                             1,515
Grainger Trust                                      2,838      Shaftesbury                                         1,512
*Mayborn                                            2,779      Ulster Television                                   1,506
RPS Group                                           2,730      Euromoney Institutional Investor                    1,496
Headlam                                             2,587      Ultra Electronic                                    1,449
Chrysalis                                           2,570      Isotron                                             1,430
ICM Computer                                        2,425      Porvair                                             1,411
Topps Tiles                                         2,387      Brit Insurance                                      1,406
Intec Telecom Systems                               2,346      Carillion                                           1,405
royalblue                                           2,280      SVB Holdings                                        1,399
GWR Group                                           2,274      *Enterprise                                         1,316

* listed on the Alternative Investment Market

These investments total £168,027,000 or 81.36% of the portfolio.

                                    - ENDS -

                                     - 8 -


              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

       Unaudited interim results for the half year ended 30 November 2003

                    For further information please contact:

Neil Hermon
The Henderson Smaller Companies Investment Trust plc
Telephone: 020 7818 4351

or

Theresa Wat
The Henderson Smaller Companies Investment Trust plc
Telephone: 020 7818 4644

or

Stephen Westwood
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 5517

or

Stephen Phillips
Associate Director
Henderson Global Investors
Telephone: 020 7818 6417

or

Vicki Staveacre
Press Office
Henderson Global Investors
Telephone: 020 7818 4222


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