Interim Results

INVESCO Perpetual UK Smaller Companies Investment Trust plc          

                      Unaudited Preliminary Announcement                       

                              of Interim Results                               

Chairman's Statement

The period under review was again difficult for investors as the global economy
faced continued uncertainty. Interest rate cuts worldwide during the last year
have thus far failed to produce meaningful economic recovery. Furthermore, the
weakness of equity markets and the low savings ratio in the US have raised
concerns over US consumer demand with consequences for global growth. If more
reasons were needed for the low state of investor sentiment, corporate
governance issues and the escalation of tension in the Middle East have caused
the appetite for equities to wane even further.

In this difficult environment, the Net Asset Value of your Company fell by
15.1% in the period under review, compared with a drop of 16.9% for the
benchmark index. The share price fell by 14.9%, with the result that the
discount remained largely unchanged at 17.1%.

While it may be difficult for the smaller companies' sector of the market to
progress while the economic outlook is so uncertain, your Board believes that
the sector offers good value in relation to larger companies and should benefit
from any improvement in sentiment or economic and political conditions in the
medium term.

This is the first report to shareholders since the appointment of Richard Smith
as our portfolio manager and I am delighted to welcome him on behalf of
shareholders. Richard has had a long and distinguished career in investment
management to date. Prior to joining INVESCO in June 2002, he managed smaller
companies portfolios at Lazards for 14 years. Your Board looks forward to
working with him.

Jamie Berry

Chairman

20 September 2002

Manager's Report

Investment Review

The six months under review saw a continuation of the bear market that began in
early 2000. Share prices have now been falling for a longer period than the
1973/4 bear market. The main concerns still centre on the US economy and
stockmarket. Even before the terrorist attacks of 2001, the US economy was
viewed as being on the brink of recession. Rapid reductions in interest rates
and an easing of fiscal policy initially produced a swift recovery but there is
now renewed concern about the robustness of the economy. From late 2001 onwards
and particularly following the collapse of Enron, there have been fears about
corporate governance and the quality of company earnings. These issues have
affected all major global equity markets.

In the UK, there was continued growth in consumer spending throughout the
period. This was helped by buoyant house prices which benefited from growing
disposable income and low interest rates. On more than one occasion, the Bank
of England expressed concern at the level of house price inflation but, given
its mandate to control inflation and that inflation has remained low, there
have been no changes to base rates which have been at 4% since November 2001.
Indeed, towards the end of the review period, renewed weakness in manufacturing
led many commentators to revise their interest rate expectations downwards.

Investment Strategy

I joined INVESCO Perpetual in Henley in late June. My investment style is
similar to my predecessors. I look for companies that are growing; that have
some unique characteristics or that have some tangible advantage over their
competitors; that have financial strength; and whose share price valuation is
reasonable in relation to the quality and growth of the company. As always,
there are some differences in the management style and I would expect to run
the portfolio with a slightly smaller number of holdings and with a tendency
towards higher average market capitalisation within the smaller companies
sector.

The portfolio remains structured in a similar way to the year end. It continues
to be overweight in construction and building materials. While infrastructure
spending is buoyant on the back of increased government spending, there are
growing signs of weakness in tenant demand and as a result private
construction. This, together with signs that housing demand in the South East
is beginning to decelerate, is prompting a reappraisal of the Trust's
weighting. The Trust also retains large holdings in defence companies. Whether
or not there is a war in the Middle East, this sector should continue to be
resilient in the current difficult economic environment. TMT sectors are still
being treated with caution. We are constantly investigating companies in the
sector in view of the large falls in share prices that have taken place.
However, fundamentals remain weak, with customers continuing to postpone making
purchases, with sometimes devastating consequences for profits.

Current Prospects

Over the last 40 years, bear markets have been a function of rising inflation
and interest rates and falling economic activity and corporate profits. This
time, while there are obvious pockets of corporate weakness, economies are
still just growing, the consumer continues to spend and interest rates and
inflation are low. The continuing weakness in shares prices, therefore, is
explained by a number of other factors ranging from corporate governance
matters, investor disenchantment, pension funding concerns, to fears of
deflation. The problem with these issues is forecasting when their negative
effects will have run their course. The investor can only remain attentive and
spot the changes in trend as they occur.

Smaller companies have outperformed during the Trust's first half, but the
environment is hardly promising. It is, however, helpful that the sector is
once again being valued at a sizeable discount to their larger brethren
despite, in many cases, having brighter profit prospects. This gives us
confidence that, taking a longer-term view, small companies will do at least as
well as the main market and probably better. Good stock selection, as ever,
remains key and we continue to search for companies which will prove resilient,
whatever the economic circumstances.

Richard Smith

Investment Manager - Smaller Companies Team

INVESCO Asset Management Limited

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Statement of Total Return
(Incorporating the Revenue Account)

                                  Six months to 31 July 2002
                                                            
                                         (Unaudited)        
                                                            
                                   Revenue  Capital    Total
                                                            
                                     £'000    £'000    £'000
                                                            
(Losses)/gains on investments -          -  (3,847)  (3,847)
realised                                                    
                                                            
- unrealised                             -  (7,992)  (7,992)
                                                            
Income                                                      
                                                            
UK dividends                         1,265        -    1,265
                                                            
Interest on loan stock                   2        -        2
                                                            
Deposit interest                         2        -        2
                                                            
Underwriting commission                  6        -        6
                                                            
Gross return                         1,275 (11,839) (10,564)
                                                            
Investment management fee            (419)        -    (419)
                                                            
Other expenses                        (85)        -     (85)
                                                            
Net return before finance costs                             
and                                                         
                                                            
taxation                               771 (11,839) (11,068)
                                                            
Interest payable and similar         (274)        -    (274)
charges                                                     
                                                            
Return on ordinary activities                               
before                                                      
                                                            
and after taxation                     497 (11,839) (11,342)
                                                            
Dividends in respect of equity           -        -        -
shares                                                      
                                                            
Transfer to/(from) reserves            497 (11,839) (11,342)
                                                            
Basic return per ordinary share -     3.6p  (84.8)p  (81.2)p
note 1                                                      

The revenue column of this statement is the profit and loss account of the
Company. All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued in the
period.

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Statement of Total Return
(Incorporating the Revenue Account)

                                                        Year to
                                                               
                                                             31
                                                        January
                                                               
                              Six months to 31 July        2002
                                      2001                     
                                                               
                                   (Unaudited)        (Audited)
                                                               
                            Revenue  Capital    Total     Total
                                                               
                              £'000    £'000    £'000     £'000
                                                               
Gains/(losses) on                 -    5,007    5,007     2,812
investments - realised                                         
                                                               
- unrealised                      - (13,963) (13,963)  (13,353)
                                                               
Income                                                         
                                                               
UK dividends                  1,410        -    1,410     2,440
                                                               
Interest in loan stock            8        -        8        20
                                                               
Deposit interest                  1        -        1         4
                                                               
Underwriting commission           1        -        1         5
                                                               
Gross return                  1,420  (8,956)  (7,536)   (8,072)
                                                               
Investment management fee     (435)        -    (435)   (1,566)
                                                               
Other expenses                 (66)        -     (66)     (178)
                                                               
Net return before finance                                      
costs and                                                      
                                                               
taxation                        919  (8,956)  (8,037)   (9,816)
                                                               
Interest payable and          (193)        -    (193)     (485)
similar charges                                                
                                                               
Return on ordinary                                             
activities before                                              
                                                               
and after taxation              726  (8,956)  (8,230)  (10,301)
                                                               
Dividends in respect of           -        -        -     (906)
equity shares                                                  
                                                               
Transfer to/(from) reserves     726  (8,956)  (8,230)  (11,207)
                                                               
Basic return per ordinary      5.2p  (64.0)p  (58.8)p   (73.5)p
share - note 1                                                 

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Balance Sheet

                              At                 At          At
                                                               
                              31 July            31     31 July
                                            January            
                                                               
                              2002             2002        2001
                                                               
                              (Unaudited) (Audited) (Unaudited)
                                                               
                              £'000           £'000       £'000
                                                               
Fixed Assets                                                   
                                                               
  Investments                      72,591    87,256      85,822
                                                               
Current assets                                                 
                                                               
  Amounts due from brokers            236       430         467
                                                               
  Tax recoverable                       -         3           -
                                                               
  Prepayments and accrued             241       213         332
income                                                         
                                                               
                                      477       646         799
                                                               
Creditors: amounts falling                                     
due within one year                                            
                                                               
  Amounts due to brokers              126     1,057         486
                                                               
  Bank overdraft and                9,194     9,779       7,731
short-term loans                                               
                                                               
  Accruals and deferred               148       894         161
income                                                         
                                                               
  Proposed dividends                    -       906           -
                                                               
                                    9,468    12,636       8,378
                                                               
Net current liabilities           (8,991)  (11,990)     (7,579)
                                                               
Total assets less current          63,600    75,266      78,243
liabilities                                                    
                                                               
Capital and reserves                                           
                                                               
Called up share capital            13,933    14,003      14,003
                                                               
Share premium account              20,920    21,244      21,244
                                                               
Capital redemption reserve             95        25          25
                                                               
Other reserves:                                                
                                                               
  Capital reserve - realised       36,303    40,150      43,013
                                                               
  Capital reserve -               (9,321)   (1,329)     (1,938)
unrealised                                                     
                                                               
Revenue reserve                     1,670     1,173       1,896
                                                               
Equity Shareholders' funds         63,600    75,266      78,243
                                                               
Net asset value per ordinary                                   
share - note 2                                                 
                                                               
Basic                              456.5p    537.5p      558.8p

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Cash Flow Statement

                              Six months    Year to  Six months
                                                               
                              to 31 July         31  to 31 July
                                            January            
                                                               
                              2002             2002        2001
                                                               
                              (Unaudited) (Audited) (Unaudited)
                                                               
                              £'000           £'000       £'000
                                                               
Cash inflow/(outflow) from            (7)     1,294         679
operating activities                                           
                                                               
Returns on investments and          (267)     (501)       (249)
servicing of finance                                           
                                                               
Taxation                                -         5           5
                                                               
Capital expenditure and                                        
financial investment                                           
                                                               
  Purchase of investments         (9,679)  (30,796)    (16,538)
                                                               
  Sale of investments              11,768    32,470      20,623
                                                               
  Equity dividends paid             (906)   (1,078)     (1,078)
                                                               
Financing                                                      
                                                               
Shares purchased for                (324)     (104)       (104)
cancellation                                                   
                                                               
Increase in cash                      585     1,290       3,338
                                                               
Net debt at beginning of the      (9,779)  (11,069)    (11,069)
period                                                         
                                                               
Net debt at end of period         (9,194)   (9,779)     (7,731)

Reconciliation of Movement in Shareholder's Funds

                              Six months    Year to  Six months
                                                               
                              to 31 July         31  to 31 July
                                            January            
                                                               
                              2002             2002        2001
                                                               
                              (Unaudited) (Audited) (Unaudited)
                                                               
                              £'000           £'000       £'000
                                                               
Revenue return for the period         497         3         726
                                                               
Capital return for the period    (11,839)  (11,210)     (8,956)
                                                               
Shares purchased for                (324)         -           -
cancellation                                                   
                                                               
Net movement in Shareholder's    (11,666)  (11,207)     (8,230)
funds                                                          
                                                               
Opening Shareholder's funds        75,266    86,473      86,473
                                                               
Closing Shareholder's funds   63,600      75,266    78,243     

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Notes to the Interim Accounts

1. The revenue return per ordinary share is based on the net revenue return on
ordinary activities after taxation and on 13,957,184 (31 July 2001: 14,003,206,
31 January 2002: 14,003,206) ordinary shares, being the weighted average number
of ordinary shares in issue in the period.

The capital return per ordinary share is based on the net capital return on
ordinary activities after taxation and on 13,957,184 (31 July 2001: 14,003,206,
31 January 2002: 14,003,206) ordinary shares being the weighted average number
of ordinary shares in issue in the period.

2. The basic net asset value per ordinary share of £1 is calculated on net
assets of £63,600,000; (31 July 2001: £78,243,000, 31 January 2002: £
75,266,000) and on 13,933,206 (31 July 2001: 14,003,206, 31 January 2002:
14,003,206) shares in issue.

3. During the period 70,000 ordinary shares were repurchased at a price of
459.0p per share and £70,000 representing the nominal amount was transferred to
capital redemption reserve.

4. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust company
set out in section 842 of the Income and Corporation Taxes Act 1988.

5. The foregoing information at 31 January 2002 is an abridged version of the
Company's full Accounts which carry an unqualified Auditor's report and have
been filed with the Registrar of Companies.

By order of the Board

INVESCO Asset Management Limited

Secretary

18 September 2002