Interim Results

JPMorgan Smaller Cos IT PLC
26 March 2007

                       LONDON STOCK EXCHANGE ANNOUNCEMENT



                JPMORGAN SMALLER COMPANIES INVESTMENT TRUST PLC



                  PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS





The Directors of JPMorgan Smaller Companies Investment Trust plc announce the
Company's results for the period ended 31st January 2007.



CHAIRMAN'S STATEMENT


Performance

Following on from the excellent results achieved in the last financial year, I
am pleased to report that the Company has enjoyed another period of strong
investment performance in the six months to 31st January 2007.  Georgina
Brittain and Mark Davids are again to be congratulated for the Company's
consistent performance.



The FTSE Small Cap Index (excluding investment trusts) rose by 19.4%, whilst the
Company achieved a total return on net assets of +25.5%, an outperformance of
6.1%.  The return to shareholders was better still at +26.1%, reflecting a
further narrowing of the discount to 13.2%.



The Company repurchased 589,000 of its shares over the six month period, at an
average discount of 13.1% and a total cost of £2,925,000.  Subsequent to the
period end, the Company has bought back a further 100,000 shares for
cancellation.



Gearing remained at an average of just over 7% throughout the review period,
reflecting the Board's cautious stance to gearing. The Company has a one year
committed loan facility of £13.5m with the Bank of Ireland, of which £12.6m is
currently drawn.  This loan facility will be renewed when it matures in April of
this year.



Change of Name

Following shareholder approval at the 2006 Annual General Meeting, the Company
changed its name from JPMorgan Fleming Smaller Companies Investment Trust plc to
JPMorgan Smaller Companies Investment Trust plc.



Strone Macpherson

Chairman, 26th March 2007





INVESTMENT MANAGERS' REVIEW





Market Background

Stockmarkets around the globe continued to enjoy the fourth successive year of
the bull market in the second half of 2006, and the UK stockmarket was no
exception. Buoyed by global and domestic liquidity, by generally benign economic
data, and by positive newsflow on the ground from companies themselves, share
prices in the UK continued their upward trend.



Fifty-seven consecutive quarters of economic growth in the UK provided a stable
and robust backdrop to the market. That said, inflationary concerns were an
issue in the period, and the Monetary Policy Committee came close to having to
write a letter to the Chancellor explaining why the CPI data (inflation
statistics) was so significantly above the 2% target. However, this did not
unsettle the stockmarket, as the view was taken that the three interest rate
rises during the six month period would bring inflation back under control. By
January 2007 UK interest rates were at 5.25%, a level last seen in 2001.



In addition to the pre-emptive interest rate rises, inflationary pressures were
assuaged by falling oil prices, slowdown in the meteoric commodity price rises
and, towards the end of the year, a significant decline in energy prices.
Despite increasing their level of savings, the UK consumer did not collapse; and
the fourth quarter business investment, which has been very muted in this
recovery, was up significantly.



Portfolio Review

The portfolio had a strong start to the new financial year. The net asset value
total return for the six months to the end of January 2007 was +25.5%, which
compares to a return of +19.4% for the FTSE Small Companies (ex Investment
Trusts) benchmark. Key to this outperformance was stock selection. Gearing,
which remained fairly constant throughout the period at around 7%, was also a
contributor.



Sector allocation was also positive in the period. Notable sectoral contributors
included Support Services and Construction & Materials, which were overweight
positions relative to the benchmark, and Pharmaceuticals & Biotechnology, where
we had a large underweight position. On the negative side were Mining, where the
absence of a holding in UK Coal detracted from performance, and General
Financials, where the position in Accuma Group, a debt solution company, was a
disappointment.



As the investment managers have emphasised, stock selection is their key focus,
and a broad spread of stocks contributed to the outperformance. Familiar names
which have been held for some time in the portfolio, such as Hunting (oil
services), Axon (IT services) and Carter & Carter (support services),
contributed to performance very strongly. A recent addition to the fund,
Tanfield Group (electric vehicle manufacturer) was notable for its strong share
price rise, as was Teesland, which was bid for.



The investment process underlying the fund, as discussed in the last annual
report, remains unchanged. The methodology uses a quantitative screen which
breaks down the individual stocks in the investible universe and ranks them
according to four factors: value, earnings momentum, price momentum and growth.
After fundamental research to check the data, the balance sheet and the market
environment, the portfolio is constructed around stocks which demonstrate these
tilts. This aims to ensure not only that the portfolio is constructed around our
underlying philosophy of fast-growing cheap stocks with good newsflow, but also
that the portfolio has both growth and value signatures, which academic evidence
has demonstrated to be the two long-term drivers of outperformance in the
stockmarket. This quantitative approach is the starting point for the stock
selection that is the bedrock of the portfolio; it is then overlaid by the fund
managers' extensive knowledge of individual companies and their markets, and
their own research efforts.



Market Outlook

The stockmarket has been through a significantly riskseeking period in the last
few years, as evidenced by the shrinking of credit spreads and the very strong
performance from high-risk assets such as emerging market equities. An
occasional retrenchment and reassessment of risk, much as was seen in markets
last May and more recently at the end of February 2007, is not unexpected.



There remain potential areas of concern: inflationary pressures, especially wage
inflation which has been highly subdued for a long period; the unwinding of the
Yen carry trade; US sub-prime lending and any knock-on to the spending patterns
of the US consumer.



That said, the growth and inflation forecasts for the UK still paint a very
positive picture, company newsflow remains good, corporate activity is ongoing
and we are seeing continuing evidence of management desire to invest their cash
for growth. Combining this with valuations that remain unstretched, and pockets
of the stockmarket where real value is beginning to re-emerge, provides the
investment managers with confidence for the outlook.



Georgina Brittain

Mark Davids

Investment Managers, 26th March 2007





For further information:



Lucy Dina

For and on behalf of

JPMorgan Asset Management (UK) Limited - Secretary

020 7742 6000



JPMorgan Smaller Companies Investment Trust plc

Unaudited figures for the six months ended 31st  January 2007

Income Statement  (Unaudited)


                          (Unaudited)                     (Unaudited)                    (Audited)

                          Six months ended 31st January   Six months ended 31st January  Year ended 31st  July 2006
                          2007                            2006

                            Revenue     Capital     Total   Revenue   Capital      Total   Revenue   Capital     Total

                              £'000       £'000     £'000     £'000     £'000      £'000     £'000     £'000     £'000


Gains from investments
held at fair value
through profit or loss            -      28,056    28,056         -    23,298     23,298         -    29,718    29,718

Income from investments       1,108           -     1,108       776         -        776     2,034         -     2,034

Other interest receivable
and similar income                8           -         8         8         -          8        23         -        23

Gross return                  1,116      28,056    29,172       784    23,298     24,082     2,057    29,718    31,775

Management fee                (321)       (321)     (642)     (248)     (248)      (496)     (552)  (552)      (1,104)

Other administrative
expenses                      (172)           -     (172)     (102)         -      (102)     (277)         -     (277)


Net return on ordinary
activities before finance
costs and taxation              623      27,735    28,358       434    23,050     23,484     1,228    29,166    30,394

Finance costs                 (147)       (147)     (294)      (87)      (87)      (174)     (203)     (203)     (406)



Net return on ordinary
activities before
taxation                        476      27,588    28,064       347    22,963     23,310     1,025  28,963      29,988

Taxation                          -           -         -         -         -          -         -         -         -



Net return on ordinary
activities after taxation       476      27,588    28,064       347    22,963     23,310     1,025    28,963    29,988


Return per share (note 3)     2.09p     120.94p   123.03p     1.47p    97.41p     98.88p     4.37p   123.54p   127.91p




All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.


The total column of this statement is the profit and loss account of the Company
and the revenue and capital columns represent supplementary information.

The total column represents all the information that is required to be disclosed
in a 'Statement of Total Recognised Gains and Losses (STRGL)'. For this
reason a STRGL has not been presented.


JPMorgan Smaller Companies Investment Trust plc

Unaudited figures for the six months ended 31st  January 2007

Reconciliation of Movements in Shareholders' Funds (Unaudited)




                                         Called up                   Capital
                                             share                redemption
                                           capital        Share      reserve    Capital    Revenue
                                                        premium                 reserve    reserve
                                             £'000                     £'000                            Total
                                                          £'000                   £'000      £'000
                                                                                                        £'000


At 31st July 2005  (as restated)1            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
Shares bought back and cancelled             (147)            -          147    (2,925)          -    (2,925)
Total return from ordinary activities            -            -            -     27,588        476     28,064
Dividends appropriated in the period             -            -            -          -      (979)      (979)

At 31st January 2007                         5,610       18,360        1,056    116,738        722    142,486



1 The results for the year ended 31st July 2005 have been restated in accordance
with Financial Reporting Standards 21, 25 and 26.



JPMorgan Smaller Companies Investment Trust plc

Unaudited figures for the six months ended 31st  January 2007


Balance sheet                                                   (Unaudited)         (Unaudited)        (Audited)

                                                               31st January        31st January        31st July
                                                                       2007                2006             2006
                                                                      £'000               £'000            £'000

Fixed assets
Investments at fair value through profit or loss                    151,056             123,569          125,529
Investments in liquidity funds at fair value through
profit or loss                                                        4,210                   -            1,518

Total Portfolio                                                     155,266             123,569          127,047

Current assets
Debtors                                                                 796                 315              676

Cash at bank and in hand                                                 23                  17              794

                                                                        819                 332            1,470

Creditors :
amounts falling due within one year                                (13,599)             (8,347)         (10,191)


Net current liabilities                                            (12,780)             (8,015)          (8,721)

Total assets less current liabilities                               142,486             115,554          118,326

Total net assets                                                    142,486             115,554          118,326

Capital and reserves
Called up share capital                                               5,610               5,869            5,757
Share premium                                                        18,360              18,360           18,360
Capital redemption reserve                                            1,056                 797              909
Capital reserve                                                     116,738              89,983           92,075
Revenue reserve                                                         722                 545            1,225

Shareholders' funds                                                 142,486             115,554          118,326

Net asset value per share (note 4)                                   634.9p              492.2p           513.8p
Share price                                                          550.8p              427.8p           440.5p
Discount                                                              13.2%               13.1%            14.3%



Cash flow statement                                            (Unaudited)          (Unaudited)        (Audited)

                                                           Six months ended    Six months ended  Year ended 31st
                                                                                                       July 2006
                                                          31st January 2007   31st January 2006
                                                                      £'000               £'000            £'000

Net cash inflow from operating activities                               322                 140              485
Net cash outflow from returns on investments and
servicing of finance                                                  (253)               (214)            (347)

Net cash (outflow)/inflow from capital expenditure and
financial investment                                                  (536)               1,481            2,614
Dividends paid                                                        (979)               (878)            (878)
Net cash inflow/(outflow) from financing                                675                 101            (466)

(Decrease)/increase in cash for the period                            (771)                 630            1,408



Notes to the Accounts



1. Accounting policies

The accounts have been prepared in accordance with United Kingdom Generally
Accepted Accounting Practice ('UK GAAP') and with  the Statement of  Recommended
Practice 'Financial Statements of Investment Trust Companies' dated 31st
December 2005.

All of the Company's operations are of a continuing nature.

The accounting policies applied to these interim accounts are consistent with
those applied in the accounts for the year ended 31st July 2006.



2. Dividends


                                                               (Unaudited)          (Unaudited)        (Audited)

                                                           Six months ended    Six months ended    Year ended
                                                                                                  31st July 2006
                                                          31st January 2007   31st January 2006
                                                                      £'000               £'000            £'000
Final dividend in respect of the year ended
31st July 2006 of 4.25p (2005: 3.75p)                                   979                 878              878



No interim dividend has been declared in respect of the six months ended 31st
January 2007 (2006: nil).



3. Return per share


                                                               (Unaudited)          (Unaudited)        (Audited)

                                                           Six months ended    Six months ended    Year ended
                                                                                                  31st July 2006
                                                          31st January 2007   31st January 2006
                                                                      £'000               £'000            £'000
Return per share is based on the following:


Revenue return                                                          476                 347            1,025


Capital return                                                       27,588              22,963           28,963


Total return                                                         28,064              23,310           29,988

Weighted average number of shares in issue                       22,810,148          23,573,686       23,445,186

Revenue return per share                                              2.09p               1.47p            4.37p


Capital return per share                                            120.94p              97.41p          123.54p

Total return per share                                              123.03p              98.88p          127.91p



4. Net asset value per share

Net asset value per share is calculated by dividing shareholders funds by the
number of ordinary shares in issue at 31st January 2007 of 22,441,186 (31st
January 2006: 23,476,186 and 31st July 2006: 23,030,186).



5. Accounts for the year ended 31st July 2006

The figures and financial information for the year ended the 31st July 2006 are
extracted from the latest published accounts of the Company and do not
constitute 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.



JPMORGAN ASSET MANAGEMENT (UK) LIMITED






                      This information is provided by RNS
            The company news service from the London Stock Exchange