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Henderson Smllr Cos (HSL)

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Friday 21 January, 2005

Henderson Smllr Cos

Interim Results

Henderson Smaller Cos Inv Tst PLC
21 January 2005



HENDERSON GLOBAL INVESTORS

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

21 January 2005


              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004


Highlights

Strong performance:

•  Net asset value per share up 15.8%*
•  Share price up 18.3%*
•  Benchmark index up 10.0%*

* Total return for the half year ended 30 November 2004 (source: Datastream)


The Chairman's Statement:

I am pleased to report excellent results for the half year ended 30 November
2004.  The net asset value total return per share was 15.8% whereas the
equivalent return from our benchmark index was 10.0%. Our fixed borrowings,
together with judicious short term use of our bank facility, have been helpful
to us during the period.  Nevertheless, the main contribution to our performance
continues to be the disciplined and diligent approach of our fund management
team at Henderson, Neil Hermon and Theresa Wat.

Our portfolio enjoyed strong gains in the period, aided by strong stock
selection in a generally buoyant UK equity market.  Small companies have
performed well, marginally outperforming large ones in the period.  There has
been a high level of corporate activity, a reflection of rising corporate
confidence and significant interest from the private equity community in
acquiring quoted UK assets. The structure of the portfolio remains largely as
outlined in the annual report, with our fund managers investing in attractive
growth companies at reasonable prices.

The outlook is favourable, even after eighteen months of strong gains from UK
smaller companies, although returns are expected to be less spectacular than in
the recent past as input cost inflation, currency fluctuations and a less
buoyant consumer depress corporate earnings growth. However, valuations are
still reasonable, global economies are robust and ongoing high levels of
corporate activity support the prospect of positive total returns.

During the half year we bought back for cancellation some six million of the
Company's shares, of which two million were bought back in the month following
the Annual General Meeting.

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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004

Chairman's Statement cont/d...


The Company's first triennial continuation vote was passed at the Annual General
Meeting on 24 September 2004.  The proxy votes received were 3.7 to 1 in favour.
 This clear majority indicates that our investors share the Board's confidence
in the ability of our fund managers to achieve strong investment performance
from the active management of the Company's portfolio of investments in UK-
listed smaller companies.


J Dudley Fishburn
Chairman

21 January 2005


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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004

Group Statement of Total Return (incorporating the revenue account)+
for the half year ended 30 November 2004

                       Half year ended                     Half year ended                      Year ended            
                      30 November 2004                    30 November 2003                 31 May 2004 (audited)      
                 Revenue     Capital      Total      Revenue     Capital      Total     Revenue     Capital    Total  
                   £'000       £'000      £'000        £'000       £'000      £'000       £'000       £'000      £'000
                                                                                                                      
  Total capital                                                                                                         
  gains from                                                                                                          
  investments          -      26,632     26,632           -      39,552     39,552           -      57,939      57,939
  Income           2,422           -      2,422       1,956           -      1,956       4,732           -       4,732
  from fixed                                                                                                          
  asset                                                                                                               
  investments                                                                                                         
  Other                                                                                                               
  interest                                                                                                            
  receivable                                                                                                          
  and similar                                                                                                         
  income             114           -        114          87           -         87         110           -         110
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
                                                                                                                     
  Gross                                                                                              
  revenue          2,536      26,632     29,168       2,043      39,552     41,595       4,842       57,939     62,781
  and                                                                                                                 
  capital                                                                                                             
  gains                                                                                                               
                                                                                                                      
  Management       (540)           -      (540)        (397)           -      (397)       (893)           -      (893)
  fee                                                                                                                 
  Other            (170)           -      (170)       (196)           -      (196)       (334)           -       (334)
  administrative                                                                                                        
  expenses                                                                                                            
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
  Net return                                                                                                          
  on ordinary                                                                                                           
  activities                                                                                                          
  before                                                                                                              
  interest                                                                                                            
  payable                                                                                                             
  and              1,826      26,632     28,458       1,450      39,552     41,002       3,615      57,939      61,554
  taxation                                                                                                            
                                                                                                                      
  Interest       (1,270)           -    (1,270)     (1,069)           -    (1,069)     (2,244)           -     (2,244)
  payable                                                                                                             
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
  Net return                                                                                                          
  on ordinary                                                                                                           
  activities         556      26,632     27,188          381      39,552     39,933       1,371      57,939     59,310
  before                                                                                                              
  taxation                                                                                                            
                                                                                                                      
  Taxation                                                                                                            
  on net                                                                                                              
  return on                                                                                                           
  ordinary                                                                                                            
  activities           -           -          -            -           -          -           -           -          -
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
  Net return                                                                                                          
  on ordinary                                                                                                           
  activities         556      26,632     27,188          381      39,552     39,933       1,371      57,939     59,310
  after                                                                                                               
  taxation                                                                                                            
                                                                                                                      
  Final               42           -         42           -           -          -     (1,148)           -     (1,148)
  dividend: 1.0p 
  (note 5)
               ----------  ----------  ---------  ----------  ----------  ---------  ----------  ----------  ---------
  Transfer           598      26,632     27,230          381      39,552     39,933         223      57,939     58,162
  to reserves                                                                                                           
                 =======     =======    =======     =======     =======    =======     =======     =======    ======= 
                                                                                                                      
  Return per       0.51p      24.20p     24.71p       0.33p      33.82p     34.15p       1.17p      49.65p      50.82p
  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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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004


Group Balance Sheet
at 30 November 2004


                                           30 November  2004       30 November 2003          31 May 2004
                                                                                               (audited)
                                                       £'000                  £'000                £'000
Fixed asset investments
Listed investments at market value                   216,966                193,753              209,469
AIM investments at market value                       23,949                 12,187               16,876
Unquoted investments at
   directors' valuation                                  324                    572                  324
                                                  ----------             ----------           ----------
                                                     241,239                206,512              226,669
                                                  ----------             ----------           ----------
Current assets
Debtors                                                1,498                    603                1,406
Cash at bank and short term deposits                   1,254                    269                  488
                                                  ----------             ----------           ----------
                                                       2,752                    872                1,894
Creditors : amounts falling due
within one year                                      (8,491)                (4,961)             (11,020)
                                                  ----------             ----------           ----------
Net current liabilities                              (5,739)                (4,089)              (9,126)
                                                  ----------             ----------           ----------

Total assets less current                            235,500                202,423              217,543
liabilities
Creditors: amounts falling due after
   more than one year                               (20,000)               (20,000)             (20,000)
                                                  ----------             ----------           ----------
Total net assets                                     215,500                182,423              197,543
                                                  ----------             ----------           ----------
Capital and reserves
Called-up share capital (note 4)                      27,107                 29,248               28,700
Capital redemption reserve                            18,318                      -               16,725
Other capital reserves                               165,763                149,303              148,404
Revenue reserve                                        4,312                  3,872                3,714
                                                  ----------             ----------           ----------

Shareholders' funds (including non-
    equity interests of £9,000;
    2003: £9,000)                                    215,500                182,423              197,543
                                                      ======                 ======               ======

Net asset value per ordinary share  (note 2)          198.8p                 156.0p               172.1p
                                                      ======                 ======               ====== 


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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004

Group Cash Flow Statement
for the half year ended 30 November 2004

                                                                                                  Year ended
                                                      Half year ended     Half year ended        31 May 2004
                                                     30 November 2004    30 November 2003          (audited)
                                                                £'000               £'000              £'000

Net cash inflow from operating activities                       2,665               1,918              3,256
Net cash outflow from servicing of finance                    (2,321)             (1,051)            (2,257)
Net cash inflow/(outflow) from
    financial investment                                       12,301             (5,332)            (7,036)
Equity dividends paid                                         (1,106)               (585)              (585)
                                                           ----------          ----------         ----------
Net cash inflow/(outflow) before financing                     11,539             (5,050)            (6,622)
Net cash (outflow)/inflow from financing                     (10,773)               2,600              4,391
                                                           ----------          ----------         ----------
Increase/(decrease) in cash                                       766             (2,450)            (2,231)
                                                               ======              ======             ======

Reconciliation of net revenue return to net cash inflow from operating activities
Net revenue before interest payable and taxation                1,826               1,450              3,615
Decrease/(increase) in prepayments and accrued                    759                 548              (231)
income
Decrease in debtors                                                 -                  10                  -
Increase/(decrease) in creditors                                   80                (90)               (43)
Stock dividends included in investment income                       -                   -               (85)
                                                           ----------          ----------         ----------
Net cash inflow from operating activities                       2,665               1,918              3,256
                                                               ======              ======             ======
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash as above                              766             (2,450)            (2,231)
Cash outflow/(inflow) from debt financing                       1,500             (2,600)            (7,500)
                                                           ----------          ----------         ----------
Change in net debt resulting from cash flows                    2,266             (5,050)            (9,731)
Net debt at the beginning of the period                      (27,012)            (17,281)           (17,281)
                                                           ----------          ----------         ----------
Net debt at the end of the period                            (24,746)            (22,331)           (27,012)
                                                               ======              ======             ======
Represented by:
Cash at bank and short term deposits                            1,254                 269                488
Debt falling due within one year                              (6,000)             (2,600)            (7,500)
Debt falling due after more than one year                    (20,000)            (20,000)           (20,000)
                                                           ----------          ----------         ----------
                                                             (24,746)            (22,331)           (27,012)
                                                               ======              ======             ======


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              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004

                                     Notes
     
1.   Return per ordinary share

     The revenue return per ordinary share is based on the earnings attributable 
     to the ordinary shares of £556,000 (half year ended 30 November 2003: 
     £381,000; year ended 31 May 2004: £1,371,000) and on the weighted average 
     number of ordinary shares in issue during the half year of 110,044,125 
     (half year ended 30 November 2003: 116,956,840; year ended 31 May 2004: 
     116,695,187).

     The capital return per ordinary share is based on the net capital gains for 
     the half year of £26,632,000 (half year ended 30 November 2003: 
     £39,552,000; year ended 31 May 2004: £57,939,000) and on the weighted 
     average number of ordinary shares in issue during the half year of 
     110,044,125 (half year ended 30 November 2003: 116,956,840; year ended 31 
     May 2004: 116,695,187).

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 £215,491,000 (30 November 2003:
     £182,414,000; 31 May 2004: £197,534,000) and on the 108,391,840 ordinary 
     shares in issue (30 November 2003: 116,956,840; 31 May 2004: 114,761,840).
     
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.   Share buy-backs

     During the half year the Company bought back for cancellation 6,370,000 
     ordinary shares (half year ended 30 November 2003: nil; year ended 31 May 
     2004: 2,195,000).

5.   Dividends

     No interim dividend has been declared (2003: nil).

     The final dividend accrued in respect of the year ended 31 May 2004 at 1.0p 
     per ordinary share amounted to £1,148,000.  The buy-backs of the Company's
     ordinary shares, after 31 May 2004 but before the record date of the final
     dividend for the year ended on that date, resulted in a write-back of 
     £42,000 for dividends accrued in respect of the year ended 31 May 2004 but 
     not in the event payable.

6.   Accounts for the year ended 31 May 2004

     The figures and financial information for the year ended 31 May 2004 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.

7.   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 2004

Largest Investments
The 60 largest investments at 30 November 2004 were as follows:

                                         Valuation at                                              Valuation at
                                     30 November 2004                                          30 November 2004
                                                £'000                                                     £'000

T & F Informa                                  11,020     Mouchel                                         2,313
W S Atkins                                      9,679     Pillar Property                                 2,168
Games Workshop                                  6,868     Laird                                           2,099
Domino Printing Sciences                        6,493     Domnick Hunter                                  2,093
Balfour Beatty                                  6,482     FKI                                             2,058
Interserve                                      5,976     *Local Radio                                    2,007
Bellway                                         5,304     Erinaceous                                      1,991
Cairn Energy                                    5,175     First Technology                                1,988
NHP                                             4,883     Paragon                                         1,971
Meggitt                                         4,663     VT Group                                        1,924
Westbury                                        4,405     Savills                                         1,922
Topps Tiles                                     4,104     Woolworths                                      1,914
WSP Group                                       3,918     BSS Group                                       1,892
Bovis Homes                                     3,830     Shaftesbury                                     1,885
Enodis                                          3,367     *First Calgary Petroleums                       1,850
ITNET                                           3,358     Kidde                                           1,824
Capital & Regional                              3,342     Forth Ports                                     1,789
Grainger Trust                                  3,283     royalblue                                       1,783
Go-Ahead                                        3,169     Rotork                                          1,680
Scottish Radio                                  2,998     *Enterprise                                     1,624
Clinton Cards                                   2,753     Premier Oil                                     1,624
Carillion                                       2,712     Ulster Television                               1,607
RPS Group                                       2,700     Glotel                                          1,575
ICM Computer                                    2,663     Ultra Electronic                                1,570
Greene King                                     2,627     Ricardo                                         1,555
SIG                                             2,615     Tribal                                          1,549
Intermediate Capital                            2,613     Greggs                                          1,531
Intec Telecom Systems                           2,522     Halford                                         1,530
Chrysalis                                       2,504     *Urban Dining                                   1,507
Headlam                                         2,367     *Sportingbet                                    1,506


* listed on the Alternative Investment Market

These investments total £182,722,000 or 75.72% of the portfolio.


                                   -  ENDS -

                                    -  8  -


              THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC
       Unaudited interim results for the half year ended 30 November 2004

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

James de Sausmarez
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 3349

or

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


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