Interim Results

PERPETUAL UK SMALLER COMPANIES INVESTMENT TRUST PLC
14 September 1999


Chairman's Statement

The last six months have been encouraging for your Company.  Smaller companies
have enjoyed a period of outperformance relative to their larger counterparts.
During the period under review, your Company's net asset value increased from
353.6p to 445.6p, a rise of 26%.  Although this falls slightly short of our
benchmark, the extended Hoare Govett Smaller Companies index (capital gains
excluding investment trusts), which increased by 27.6% over the same period,
it exceeded the increase in the FT-SE Actuaries All Share Index of 8.5%.  

I am pleased to report that the longer term net asset value performance also
remains satisfactory; the Company's net asset value return over 5 years of
97.2% places it fourth our of 23 in its sector.  The share price performance
of 78.4% over 5 years places us top in our sector.  The share price discount
to net asset value has reduced significantly in the period, declining from 19%
to 12%.  This compares favourably with the average of 20% in the sector.  

Your Manager remains optimistic about the outlook for smaller companies over
the next six to nine months, and believes that the economic background
continues to be favourable for the sector.  With this in mind, the Manager
continues to maintain a geared portfolio to optimise returns.  

During the next year we hope to see some benefit to the Company's share price
from the contribution to the AITC's 'its' campaign, coupled with our own and
the Manager's promotion plans.  It is also the intention of your Board to seek
powers from shareholders to implement a share buyback scheme at the next
Annual General Meeting.


Jamie Berry
Chairman

13th September 1999

MANAGER'S REVIEW

During the period under review the operating environment for smaller companies
improved significantly, with falling interest rates and improving consumer
confidence, as worries over a possible recession for the UK economy receded. 
The very low valuations placed on smaller market capitalisation stocks
attracted an increasing amount of corporate activity, from which the Company
gained. Many smaller companies' results were positive over the period,
reflecting strong domestic economic growth, although there were pressures on
operating margins as a result of generally rising commodity prices and pricing
restraints.

Corporate activity is likely to remain strong over the next few months,
especially with regard to buy-outs in the manufacturing sector, where trading
prospects also should be boosted by inventory build-up ahead of this Christmas
and the Millennium.  Consumer spending is likely to grow towards the end of
the year, especially with regard to low-ticket items along with expenditure in
pubs and restaurants.  Your Company is well represented in these areas.  

A possible adverse factor that might affect smaller companies is rising
domestic interest rates, in line with US trends.  However, moderate wage
demands and global pricing restraints make any medium-term significant
increase in the inflation rate a highly unlikely scenario.

Valuations of smaller companies remain relatively modest compared to their
larger counterparts and the opportunity to acquire sound businesses
inexpensively is likely to continue to attract buyers.  Further support for
the smaller company sector should come from the approaching Millennium
celebrations and another round of windfalls arising from corporate activity
and demutualisations.

The Company has performed strongly in the first half of the year and the
Manager remains optimistic.  The benign economic backdrop of low inflation and
levels of unemployment, despite possible higher interest rates in the short
term, should be supportive for smaller companies.  The Manager therefore
expects, barring unforeseen shocks to global equity markets, UK smaller
companies to continue to outperform their larger counterparts over the next
six to nine months.

STATEMENT OF NET ASSETS
as at 31st July 1999 (unaudited and not reviewed)

Assets                  31.7.99              31.7.98             31.1.99
                         £'000                £'000               £'000

Investments              71,508              58,825              54,153
Net current 
liabilities             (8,996)             (2,567)             (4,556)

Total net assets         62,512              56,258              49,597

Number of ordinary 
shares                14,028,206           14,028,206          14,028,206
Net asset value 
per share                 445.6p             401.0p              353.6p

This statement excludes revenue transferred to reserves for the interim
periods.  This statement has been neither reviewed nor audited by the
Company's auditors.


                       Year to                     6 months to
                       31.7.99                       31.7.99
Increase in:

Net asset value         11.1%                           26.0%

Hoare Govett Smaller 
Companies Index
(extended excluding
investment trusts)      12.7%                           27.6%

FT-SE Actuaries 
All-Share Index           7.0%                           8.5%



STATEMENT OF TOTAL RETURN (incorporating the revenue account) 
for the six months ending 31st July 1999 (unaudited and not reviewed)


                                    6 months                6 months    Year
                                       to                      to      ended
                                     31.7.99                 31.7.98  31.1.99

                    Revenue  Capital  Total  Revenue  Capital  Total    Total 
                     £'000    £'000   £'000   £'000    £'000   £'000    £'000

Gains/(losses)
on investments
     - realised               2,127    2,127           2,044   2,044   3,745
     - unrealised            10,790   10,790           1,900   1,900  (6,470)
Income                1,770            1,770   1,222           1,222   2,436
Investment
management fee        (334)           (334)    (333)            (333)  (721)
Other expenses         (53)    (2)     (55)     (59)    (3)      (62)  (120)

Net return before 
finance costs 
and taxation           1,383  12,915   14,298     830   3,941  4,771  (1,130) 
 

Interest payable and 
similar charges        (214)           (214)      (38)          (38)   (137)

Return on ordinary 
activities before tax  1,169   12,915   14,084     792  3,941  4,733  (1,267)

Tax on ordinary 
activities             (173)           (173)      (207)         (207)  (471)

Return on ordinary 
activities after tax 
for the period 
attributable to 
equity shareholders     996    12,915    13,911     585 3,941  4,526  (1,738)

Dividends in respect of 
equity shares                                                           (982)

Transfer to reserves    996    12,915    13,911     585 3,941  4,526  (2,720)

Return per ordinary
share:                     

Basic                   7.1p    92.1p     99.2p    4.2p  28.1p 32.3p   (12.4p)


The revenue column of this statement is the profit and loss account of the
Company.

The reduction in tax credits attached to UK dividend income from 20% to 10%
has meant that the tax on ordinary activities is lower in comparison to the
same period last year.

This statement has been neither reviewed nor audited by the Company's
auditors.

The balance sheet as at 31st January 1999 and the statement of total return
for the year then ended have been abridged from the Company's 1999 statutory
accounts which have been filed with the Registrar of Companies; the auditors'
opinion on those accounts is unqualified.

Copies of the interim report will be sent to shareholders of the Company, and
will be available from the Company's registered office at Perpetual Park,
Perpetual Park Drive, Henley-on-Thames, Oxon, RG9 1HH.