Interim Results

INVESCO Perpetual UK Smaller Companies Investment Trust plc          

             Unaudited Preliminary Announcement of Interim Results             

Chairman's Statement

I am pleased to be in a position to report better news for shareholders. During
the period under review we have witnessed a substantial improvement in market
levels. During the first six months of the Company's year to 31 July 2003, the
net asset value including both capital and revenue ('NAV') and share price
increased by 34.1% and 33.6% respectively. This is an encouraging performance,
which is ahead of our benchmark index, the extended Hoare Govett Smaller
Companies Index (capital gains excluding investment trusts), which rose by
31.7%. The discount of share price to NAV rose only very slightly, from 16.0%
to 16.3%, which remains in line with our peer group.

The recovery in markets has taken place against an improvement in investor
sentiment since the low point in the market in March 2003, when uncertainty
about the impending war in Iraq and other geopolitical risks dampened investor
and stock market sentiment. Since the quick resolution of the initial
hostilities in Iraq, markets worldwide have recovered and, perhaps
unexpectedly, smaller companies in the UK have outperformed their larger
counterparts by a significant margin. By way of comparison, the FT Actuaries
All-Share Index increased by 18.8% in the period.

Despite this improvement in sentiment, it would be rash to expect too much of a
post-war bounce in economic activity, as the world economy, including the
smaller companies universe, still faces many of the underlying problems it
faced before the Iraq conflict began: high levels of corporate and household
indebtedness, excess capacity in manufacturing and slowing retail sales,
together with a negligible employment growth rate. These indicators suggest
that the UK economy will be slowing down towards the end of 2003.

Your manager continues to maintain a cautious approach towards investing at
these levels, and it is for this reason that the gearing of the Company remains
on the low side. However, he has built a diversified portfolio focusing on
quality franchises with stable revenue sources, which is capable of exploiting
any improvements in what may become a more testing stockmarket environment in
the second half of the Company's year.

Jamie Berry

Chairman

24 September 2003

Manager's Report

Investment Review

During the six months under review there has been a substantial improvement in
investor sentiment. From the lows in March, the FT All-Share Index had risen
28% by the end of July. The reasons behind this turnaround range from the very
oversold position of markets in March, the quick resolution of the Iraq war,
continued declines in interest rates and some evidence of economic recovery in
the US. However the UK economy is only growing slowly, so it remains to be seen
how sustainable this rally will be.

The change in investor sentiment has, however, been most marked in small and
mid-sized companies. From the lows in March, smaller companies, as measured by
the Hoare Govett Smaller Companies Index, had risen 38% by the end of July and
have made further progress since. As a result, the sector has materially
outperformed the main market. This relative performance reflects increased
corporate activity and lower valuations and has benefited from a move towards
greater portfolio diversification by institutions.

The overall performance of the Company has been satisfactory and ahead of the
benchmark index. Gearing levels have been, and remain, modest; this is
consistent with our relatively cautious view of the UK's economic prospects as
well as our views on the risk and reward balance prevailing earlier in the
year.

Investment Strategy

We continue to believe that the UK economy will produce slow growth, at best.
The underlying problem is the continuous growth in the economy over the last
twelve years. Despite well publicised problems in certain industries such as
financial services and technology, there has been no proper recession.
Recessions, while painful, are useful in correcting excesses and repositioning
the economy for future growth. Today the UK economy has a number of excesses,
examples of which are inflated house prices and the high level of consumer
debt.

Consumer expenditure accounts for close to 70% of total GDP. In recent years
consumers have spent at a greater rate than their incomes, making up the
difference by lower savings and higher debt. Consumer debt is at record levels
and as a percentage of incomes at a much higher level than before the last
recession. Consumer spending growth, therefore, seems more likely to slow
rather than increase.

Government expenditure accounts for about 20% of GDP. To support public
services, government spending has increased rapidly, this year rising by close
to 9%. However, government revenue from tax receipts is running below
expectations, resulting in a projected budget deficit of around 3% of GDP which
would put the UK at odds with the stability pact and Brussels, if we were part
of the Euro. Government spending growth, therefore, also seems more likely to
slow rather than increase.

With about 90% of the economy set to decelerate, it seems almost inevitable
that overall economic growth will disappoint. Slow growth will probably result
in pressure on corporate profits as there will be little volume growth to
offset cost increases. Almost uniquely amongst western economies, the UK has
experienced falling unemployment over the last year. This is now manifesting
itself in higher public sector wages and increased union militancy. However,
companies also face the rising costs of general insurance, national insurance,
pensions and raw materials. Companies must either cut costs, raise prices or
face falls in profits. The outcome is likely to be some combination of these
factors.

Against this background we continue to prefer to run a broadly diversified
portfolio, with an emphasis on quality companies with strong financial
characteristics and with stable revenue sources. We also recognise that
dividend income is likely to be a higher proportion of the total return
available from equities. In sectoral terms, the main changes in the portfolio
have been a reduction in insurance and general industries, funding an increase
in the oil & gas, healthcare, transport and utilities sectors.

Current Prospects

The UK stockmarket, and especially smaller companies, have enjoyed a strong
rally over the last six months as investors have rediscovered an appetite for
risk. Inevitably, there will be a correction at some stage, particularly if the
growth in the economy and corporate profits remain lacklustre, as we expect.
However, continuing low interest rates should mitigate the effects somewhat.

Smaller companies have substantially outperformed the main market in the six
months under review and may suffer some correction. The valuation argument has
weakened as the sector is now only on a small discount to the market, although
it should be remembered that smaller companies were rated at a premium to the
market from 1980 to 1987. However, the positives, in the form of corporate
activity and the portfolio shift by institutions, are still in place. We remain
confident of the longer-term prospects for smaller companies, given their
greater flexibility to handle the challenging economic circumstances we see
ahead.

Richard Smith

Investment Manager - Smaller Companies team

INVESCO Asset Management Limited

24 September 2003

Statement of Total Return
(Incorporating the Revenue Account)

                                Six months to 31 July 2003      
                                                                
                                          (Unaudited)           
                                                                
                                Revenue    Capital         Total
                                                                
                                     £'000      £'000      £'000
                                                                
(Losses)/gains on investments -          -    (2,419)    (2,419)
realised                                                        
                                                                
- unrealised                             -     20,001     20,001
                                                                
Income                                                          
                                                                
  UK dividends                       1,126          -      1,126
                                                                
  Interest and underwriting              3          -          3
commission                                                      
                                                                
Gross return                         1,129     17,582     18,711
                                                                
Investment management fee            (356)          -      (356)
                                                                
Other expenses                       (104)          -      (104)
                                                                
Net return before finance costs                                 
and                                                             
                                       669     17,582     18,251
Taxation                                                        
                                                                
                                                                
Interest payable and similar          (61)          -       (61)
charges                                                         
                                                                
Return on ordinary activities          608     17,582     18,190
before and after taxation                                       
                                                                
Dividends in respect of equity           -          -          -
shares                                                          
                                                                
Transfer to reserves                   608     17,582     18,190
                                                                
Basic return per ordinary share       4.4p     126.2p     130.6p
- 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.

Statement of Total Return
(Incorporating the Revenue Account)

                                                                   Year to
                                                                          
                                                                31 January
                                                                          
                                Six months to 31 July 2002            2003
                                                                          
                                        (Unaudited)              (Audited)
                                                                          
                               Revenue     Capital       Total       Total
                                                                          
                                 £'000       £'000       £'000       £'000
                                                                          
Losses on investments -              -     (3,847)     (3,847)    (13,526)
realised                                                                  
                                                                          
- unrealised                         -     (7,992)     (7,992)     (8,102)
                                                                          
Income                                                                    
                                                                          
  UK dividends                   1,265           -       1,265       2,223
                                                                          
  Interest and underwriting         10           -          10          24
commission                                                                
                                                                          
Gross return                     1,275    (11,839)    (10,564)    (19,381)
                                                                          
Investment management fee        (419)           -       (419)       (810)
                                                                          
Other expenses                    (85)           -        (85)       (212)
                                                                          
Net return before finance          771    (11,839)    (11,068)    (20,403)
costs and taxation                                                        
                                                                          
Interest payable and similar     (274)           -       (274)       (424)
charges                                                                   
                                                                          
Return on ordinary                 497    (11,839)    (11,342)    (20,827)
activities before and after                                               
taxation                                                                  
                                                                          
Dividends in respect of              -           -           -       (766)
equity shares                                                             
                                                                          
Transfer to/(from) reserves        497    (11,839)    (11,342)    (21,593)
                                                                          
Basic return per ordinary         3.6p     (84.8)p     (81.2)p    (149.3)p
share - note 1                                                            

Balance Sheet

                          At                 At          At
                                                           
                          31 July            31     31 July
                                        January            
                                                           
                          2003             2003        2002
                                                           
                          (Unaudited) (Audited) (Unaudited)
                                                           
                          £'000           £'000       £'000
                                                           
Fixed Assets                                               
                                                           
  Investments                  75,781    56,752      72,591
                                                           
Current assets                                             
                                                           
  Amounts due from                155       556         236
brokers                                                    
                                                           
  Prepayments and accrued         237       143         241
income                                                     
                                                           
                                  392       699         477
                                                           
Creditors: amounts                                         
falling due within one                                     
year                                                       
                                                           
  Bank overdraft and          (4,184)   (2,631)     (9,194)
short-term loans                                           
                                                           
  Amounts due to brokers        (338)     (595)       (126)
                                                           
  Accruals and deferred         (112)     (110)       (148)
income                                                     
                                                           
  Proposed dividends                -     (766)           -
                                                           
                              (4,634)   (4,102)     (9,468)
                                                           
Net current liabilities       (4,242)   (3,403)     (8,991)
                                                           
Total assets less current      71,539    53,349      63,600
liabilities                                                
                                                           
Capital and reserves                                       
                                                           
Called up share capital        13,933    13,933      13,933
                                                           
Share premium account          21,244    21,244      21,244
                                                           
Capital redemption                 95        95          95
reserve                                                    
                                                           
Other reserves:                                            
                                                           
  Capital reserve -            23,881    26,300      35,979
realised                                                   
                                                           
  Capital reserve -            10,570   (9,431)     (9,321)
unrealised                                                 
                                                           
Revenue reserve                 1,816     1,208       1,670
                                                           
Equity Shareholders'           71,539    53,349      63,600
funds                                                      
                                                           
Net asset value per                                        
ordinary share - note 2                                    
                                                           
Basic                          513.4p    382.9p      456.5p

Cash Flow Statement

                          Six months    Year to  Six months
                                                           
                          to 31 July         31  to 31 July
                                        January            
                                                           
                          2003             2003        2002
                                                           
                          (Unaudited) (Audited) (Unaudited)
                                                           
                          £'000           £'000       £'000
                                                           
Cash inflow/(outflow)             578       541         (7)
from operating activities                                  
                                                           
Returns on investments                                     
and servicing of finance         (62)     (451)       (267)
                                                           
Capital expenditure and                                    
financial investment                                       
                                                           
  Purchase of investments    (14,372)  (28,135)     (9,679)
                                                           
  Sale of investments          13,069    36,423      11,768
                                                           
  Equity dividends paid         (766)     (906)       (906)
                                                           
Financing                                                  
                                                           
Shares purchased for                -     (324)       (324)
cancellation                                               
                                                           
(Decrease)/increase in        (1,553)     7,148         585
cash                                                       
                                                           
Net debt at beginning of      (2,631)   (9,779)     (9,779)
the period                                                 
                                                           
Net debt at end of period     (4,184)   (2,631)     (9,194)

Reconciliation of Movement in Shareholder's Funds

                          Six months    Year to  Six months
                                                           
                          to 31 July         31  to 31 July
                                        January            
                                                           
                          2003             2003        2002
                                                           
                          (Unaudited) (Audited) (Unaudited)
                                                           
                          £'000           £'000       £'000
                                                           
Revenue return for the            608        35         497
period                                                     
                                                           
Capital return for the         17,582  (21,628)    (11,839)
period                                                     
                                                           
Shares purchased for                -     (324)       (324)
cancellation                                               
                                                           
Net movement in                18,190  (21,917)    (11,666)
Shareholder's funds                                        
                                                           
Opening Shareholder's          53,349    75,266      75,266
funds                                                      
                                                           
Closing Shareholder's          71,539    53,349      63,600
funds                                                      

INVESCO Perpetual UK Smaller Companies Investment Trust plc

Notes to the Interim Announcement

1. The revenue return per ordinary share is based on the net revenue return on
ordinary activities after taxation and on 13,933,206 (31 July 2002: 13,957,184,
31 January 2003: 13,945,288) 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 13,933,206 (31 July 2002: 13,957,184,
31 January 2003: 13,945,288) 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 £71,539,000; (31 July 2002: £63,600,000, 31 January 2003: £
53,349,000) and on 13,933,206 (31 July 2002: 13,933,206, 31 January 2003:
13,933,206) shares in issue.

3. 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.

4. The foregoing information at 31 January 2003 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

Secretaries

24 September 2003