Final Results

JPMorgan Fleming Smaller Cos IT PLC
03 October 2006

                          STOCK EXCHANGE ANNOUNCEMENT

                       JPMORGAN FLEMING SMALLER COMPANIES

                              INVESTMENT TRUST PLC

The Board of JPMorgan Fleming Smaller Companies Investment Trust plc announces
its preliminary results for the year ended 31st July 2006.



Investment Performance

For the fourth year running I am delighted to report that the Company has
continued to outperform its benchmark index. Over the year to 31st July 2006 the
Company produced a total return on net assets of +32.5%, which compares
favourably with the total return of the Company's benchmark, the FTSE Small Cap
Index (excluding investment trusts) of +12.8%. The return to shareholders was
better still at +38.3% as the discount narrowed from 18.6% to 14.3%.



The excellent performance achieved by the investment managers has been
recognised with the Company recently winning the prestigious 'Best Performing
Smaller Company Fund 2005' at the PLC awards.



Revenue and Dividends

Net revenue after taxation for the year was £1,025,000 (2005: £903,000) and
revenue return per share, calculated on the average number of shares in issue,
was 4.37p (2005: 3.62p). The Directors are recommending a final dividend of
4.25p per share (2005: 3.75p), costing £979,000 (2005: £878,000).  If approved,
the dividend will be paid on 15th December 2006 to shareholders on the register
on 3rd November 2006.



Each year the level of income received varies according to the Company's
gearing, its investment stance and market conditions and, whilst it is the
Company's policy to distribute substantially all the available income each year,
shareholders should note that the Company's dividends will vary accordingly.



Investment Manager

The Company's objective is to provide shareholders with capital growth from a
portfolio of investments in UK smaller companies. The Board has once again
reviewed the capabilities and services provided by the Investment Manager in
order to assess whether JPMorgan Asset Management (UK) Limited remains the most
appropriate manager of the Company's assets. We have concluded unanimously that
the ongoing appointment of the existing Investment Manager is in the best
interests of shareholders.



Share Buybacks

At last year's Annual General Meeting, shareholders granted the Directors
authority to repurchase the Company's shares for cancellation, such authority to
expire at the earlier of 27th May 2007 or the conclusion of the Annual General
Meeting in 2006. During the year the Company repurchased a total of 916,000
shares, representing 3.8% of the issued share capital. This process has added
0.7% to the net asset value of the remaining shares.



The Board's objective remains to use the share repurchase authority to manage
any imbalance between the supply and demand of the Company's shares, thereby
minimising the volatility of the discount. To date the Board believes this
mechanism has been successful and therefore proposes and recommends that powers
to repurchase up to 14.99% of the Company's shares for cancellation be renewed
for a further period.



Board of Directors

I would like to thank David Thompson, who resigned as a Director on 31st March
2006, for his wise counsel during the four years he has served on the Board.
Following David's retirement, the Board decided that Michael Quicke, Chief
Executive of CCLA Investment Management Limited, would take over the role of
Chairman of the Audit Committee.



During the year, the Board carried out an evaluation of the Directors, the
Chairman, the Board itself and its Committees. In accordance with the Company's
Articles of Association, the Director retiring by rotation at this year's Annual
General Meeting is Ivo Coulson. In view of the valuable contribution Ivo has
made to the Board's deliberations since his appointment, I have no hesitation in
recommending his re-election. In addition, having served as a Director for more
than nine years, I am also standing for re-election. The Board does not believe
that length of service in itself should disqualify a Director from seeking
re-election and, in proposing my re-election, it has taken into account the
ongoing requirements of the Combined Code, including the need to refresh the
Board and its Committees.



Continuation Vote

I am pleased to report that the continuation vote at last year's Annual General
Meeting ('AGM') was approved by a substantial majority, thereby enabling the
Company to remain in existence for a further three years.



Change of Company Name

In light of the change of the Company's Manager's name from J.P. Morgan Fleming
Asset Management (UK) Limited to JPMorgan Asset Management (UK) Limited on 3rd
May 2005, the Board considers it appropriate that the Company's name be changed
to JPMorgan Smaller Companies Investment Trust plc. The Board will therefore
propose a resolution to change the Company's name at the forthcoming AGM.



Annual General Meeting

This year's Annual General Meeting will be held on 29th November 2005 at 3.30 pm
at The Library, 60 Victoria Embankment, London EC4Y 0JP.



Outlook

Since the year end, the Company has outperformed its benchmark by 0.6%.  The
return on net assets was +4.6%, compared with a return of +4.0% on the
benchmark.  The outlook for the investment market has become much less clear
over the past few months, and the Board is now inclined towards a more cautious
stance.



Strone Macpherson
Chairman

3rd October 2006





For further information, please contact:

Lucy Dina
For and on behalf of
JPMorgan Asset Management (UK) Limited - Secretary
020 7742 6000


JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31st July 2006



Income Statement
                                                       2006                              2005
                                               Revenue     Capital       Total    Revenue     Capital       Total
                                                return      return      return     return      return      return
                                                 £'000       £'000       £'000      £'000       £'000       £'000
Gains from investments held at fair value
 through profit or loss                              -      29,718      29,718          -      25,609      25,609
Income from investments                          2,034           -       2,034      1,722           -       1,722
Other interest receivable and similar               23           -          23         28           -          28
 income
                                               _______    ________     _______    _______    ________     _______

Gross return                                     2,057      29,718      31,775      1,750      25,609      27,359
Management fee                                   (552)       (552)     (1,104)      (424)       (424)       (848)
Other administrative expenses                    (277)           -       (277)      (243)           -       (243)
                                               _______    ________     _______    _______    ________     _______
Net return on ordinary activities before
 finance costs and taxation                      1,228      29,166      30,394      1,083      25,185      26,268
Finance costs                                    (203)       (203)       (406)      (180)       (180)       (360)
                                               _______     _______     _______    _______     _______     _______

Net return on ordinary activities before
 taxation                                        1,025      28,963      29,988        903      25,005      25,908
Taxation                                             -           -           -          -           -           -
                                               _______     _______     _______    _______     _______     _______

Net return on ordinary activities after
taxation                                         1,025      28,963      29,988        903      25,005      25,908
                                               _______     _______     _______    _______     _______     _______

Return per ordinary share                        4.37p     123.54p     127.91p      3.62p     100.41p     104.03p







JPMorgan Fleming Smaller Companies  Investment Trust plc
Unaudited figures for the year ended 31st July 2006





Reconciliation of Movements in Shareholders' Funds
                                                                   Capital
                                       Called up        Share   redemption
                                           share      premium      reserve       Capital     Revenue
                                         capital      account        £'000       reserve     reserve      Total
                                           £'000        £'000                      £'000       £'000      £'000
At 31st July 2004 (restated)*              6,354       18,360          312        48,063       1,128     74,217
Shares bought back and cancelled           (368)            -          368       (4,419)           -    (4,419)
Total return from ordinary activities          -            -            -        25,005         903     25,908
Dividends appropriated in the year             -            -            -             -       (953)      (953)
                                         _______     ________     ________       _______     _______    _______
At 31st July 2005 (restated)*              5,986       18,360          680        68,649       1,078     94,753
Adjustment to opening shareholders
 funds at 1st August 2005 to reflect
 the adoption of bid prices                    -            -            -       (1,991)           -    (1,991)
Shares bought back and cancelled           (229)            -          229       (3,546)           -    (3,546)
Total return from ordinary activities          -            -            -        28,963       1,025     29,988
Dividends appropriated in the year             -            -            -            -        (878)      (878)
                                         _______     ________     ________      _______     _______   ________
At 31st July 2006                          5,757       18,360          909       92,075       1,225    118,326



*The results for the year ended 31st July 2005 and 31st July 2004 have been
restated in accordance with Financial Reporting Standard 21 (see note 1).





JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31st July 2006



Balance Sheet

                                                                                                      2005
                                                                                     2006      (Restated)*
                                                                                    £'000            £'000
Fixed Assets
Investments at fair value through profit or loss                                  125,529          100,882
Investments in liquidity funds at fair value through
 profit or loss                                                                     1,518                -
                                                                                  _______          _______
Total portfolio                                                                   127,047          100,882
Current assets
Debtors                                                                               676            1,123
Cash at bank and in hand                                                              794                -
                                                                                  _______          _______
                                                                                    1,470            1,123
Creditors: amounts falling due within one year                                   (10,191)          (7,252)
                                                                                  _______          _______
Net current  liabilities                                                          (8,721)          (6,129)
                                                                                  _______          _______
Total assets less current  liabilities                                            118,326           94,753
                                                                                  _______          _______
Total net assets                                                                  118,326           94,753
                                                                                    =====            =====
Equity shareholders' funds                                                        118,326           94,753
                                                                                    =====            =====
Net asset value per share                                                          513.8p           395.7p

*The results for the year ended 31st July 2005 have been
 restated in accordance with FRS21 (see note 1).



Cash Flow Statement
Unaudited figures for the year ended 31st July 2006                                  2006             2005
                                                                                    £'000            £'000
Net cash inflow from operating activities                                             485              719
Net cash outflow from returns on investments and servicing of finance                (347)            (392)

Net cash inflow from capital expenditure and financial investment                   2,614            3,102
Dividends paid                                                                      (878)            (953)
                                                                                  _______          _______
Net cash inflow before financing                                                    1,874            2,476

Financing
Net drawdown of loans                                                               3,400                -
Repurchase of shares                                                              (3,866)          (4,099)
                                                                                  _______          _______
Net cash outflow from financing                                                     (466)          (4,099)
                                                                                  _______          _______
Increase/(decrease) in cash for the year                                            1,408          (1,623)
                                                                                    =====             ====







Notes

1. Accounting policies

The Company has adopted certain new accounting policies following the issue of
new Financial Reporting Standards (FRSs) and the issue of the revised Statement
of Recommended Practice 'Financial statements of investment trust companies' by
the AITC in December 2005. The material changes to the accounts are as follows:


Investments are designated as held at fair value through profit or loss in
accordance with FRS 26: 'Financial Instruments: Measurement'. Listed investments
are valued at bid market prices. This represents a change in accounting policy,
however, in accordance with the exemption conferred by paragraph 108D of FRS26,
comparatives have not been restated. In prior years, listed investments were
valued using last trade prices. The adoption of bid prices on 1st August 2005
decreased the value of investments by £1,991,000.


In accordance with FRS21 'Events after the Balance Sheet date', final dividends
declared but not approved are not accrued in the accounts, since their payment
only becomes certain once shareholder approval has been obtained. Comparative
figures have been restated and this has led to an increase in net assets at 31st
July 2005 and 31st July 2004, of £898,000 and £953,000 respectively.





2. Dividends
                                                            2006         2005
                                                           £'000        £'000
Final dividend of  3.75p (2004; 3.75p)                      *878          953
                                                      ----------   ----------
Total dividends paid in the year                             878          953
                                                           =====        =====
Final dividend payable of 4.25p (2005: 3.75p)                979          898



*The Company declared a dividend of £898,000 but the dividend paid amounted to
£878,000 as a result of share buybacks.

The final dividend has been proposed in respect of the year ended 31st July 2006
and is subject to approval at the Annual General  Meeting. In accordance with
the revised accounting policy of the Company, this dividend will be reflected in
the accounts for the year ended 31st July 2007.



3. Comparative figures

The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985 for the years ended 31st July
2006 or 31st July 2005, but is derived from those accounts. The comparative
financial information is an extract from the statutory accounts for the year
ended 31st July 2005 (as restated). Those accounts, upon which the auditors
issued an unqualified opinion, have been delivered to the Registrar of
Companies. The statutory accounts for the year ended 31st July 2006 will be
finalised on the basis of the financial information presented by the directors
in this preliminary announcement and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.





JPMORGAN ASSET MANAGEMENT (UK) LIMITED








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