Final Results

Ivory & Sime UK Smlr.Co's Trust PLC
10 May 2001


RESULTS FOR YEAR TO 31 MARCH 2001

Investment Objective

To achieve capital growth by investing primarily in a portfolio of smaller
companies quoted on the London Stock Exchange.  The benchmark index is the
FTSE SmallCap (ex Investment Companies) Index.

Results    Over the year to 31 March 2001, the fully diluted net asset value
fell by  34.0 per cent compared with a fall of  13.3 per cent in the FTSE
SmallCap (ex Investment Companies) Index over the same period. Michael Walker,
Chairman, said 'I am conscious that the year was not an easy one for investors
in the Company.  The performance disparity was substantially attributable to
the Company's overweight position in technology.  Many of these stocks were
responsible for the Company's 74% increase in net asset value in the previous
year and it was disappointing that we were unable to sustain these strong
gains.'

Earnings   Group earnings per ordinary share increased from 4.28p to 4.61p.

Dividend  A final dividend of 3.00p per ordinary share is proposed making
4.00p for the year (2000 - 3.75p).  This will be paid to shareholders on 4
July 2001. 

Shareholder Value   At the AGM last June the Board took powers to buy back
shares for the first time.  The Board is cognisant of the need to use these
buy-back powers selectively at discount levels that permit a material
contribution to be made to the net asset value per share.

The Company committed further funding for the second round of the AITC's
(Association of Investment Trust Companies) its Campaign.  The Company
recognises the importance of generic campaigns in raising overall awareness of
investment trusts and hope that the initial success of its can be sustained. 

The remaining warrants were exercised during the year which resulted in the
Company issuing a further 802,445 new ordinary shares at 93 pence each.

Outlook   

Michael Walker, Chairman, said 

'In evaluating the prospects for the coming year I do not believe that there
has been a diminution in the number of attractive long-term business
opportunities, albeit that there may be question marks over short-term
earnings visibility.  Market expectations have now been adjusted to
incorporate the changed short-term economic environment. Given the extent of
the contraction in small company valuations, any signs of better economic news
ought to translate into a marked appreciation in share prices.'  

 

Group Statement of Total Return 
(Incorporating the Revenue Account)
For the Year Ended 31 March 2001


                                                Year Ended
                                              31 March 2001
                     
                                      PDS'000       PDS'000       PDS'000
                                      Revenue       Capital        Total
                     
Losses on investments                       -       (25,093)       (25,093)
Realised exchange differences               -             8              8
Warrants purchased for cancellation         -           (36)           (36)
                     
                     
Income                                  1,857            -           1,857
Investment management and 
secretarial fees                         (308)        (459)           (767)
Other expenses                           (220)           -            (220)
                                     ---------       ------         -------
Net return before finance costs 
and taxation                             1,329       (25,580)       (24,251)
                     
Interest payable                          (301)         (560)          (861)
                                      ---------       ------       --------
Return on ordinary activities 
before tax                               1,028        (26,140)       (25,112)
                     
Tax on ordinary activities                 (33)            33             -
                                     ---------       ---------       ---------
Return attributable to equity 
shareholders                               995        (26,107)       (25,112)
                     
Dividends in respect of equity shares     (875)             -           (875)
                                     ---------       ---------       ---------
Transfer to/(from) reserves                120        (26,107)       (25,987)
                                     ---------       ---------       ---------
Return per ordinary 50p share: (p)                     
Basic                                      4.61       (120.86)       (116.25)
Diluted (FRS 14)                           4.59       (120.32)       (115.73)
 


Group Statement of Total Return 
(Incorporating the Revenue Account)
For the Year Ended 31 March 2000

                                                  Year Ended
                                                31 March 2000
                     
                                         PDS'000       PDS'000       PDS'000
                                         Revenue       Capital       Total
                     
Gains on investments                          -         33,146        33,146
Realised exchange differences                 -             (2)           (2)
Warrants purchased for cancellation           -           (324)        (324)
                     
                     
Income                                    1,588               -         1,588
Investment management and secretarial
fees                                      (233)           (342)         (575)
Other expenses                            (207)               -         (207)
                                      ---------       ---------     ---------
Net return before finance costs
and taxation                              1,148          32,478        33,626
                     
Interest payable                          (201)           (372)         (573)
                                      ---------       ---------     ---------
Return on ordinary activities before tax    947          32,106        33,053
                     
Tax on ordinary activities                  (46)             46             -
                                      ---------        ---------    ---------
Return attributable to equity
shareholders                                901           32,152       33,053
                     
Dividends in respect of equity shares     (790)                -        (790)
                                      ---------        ---------    ---------
Transfer to reserves                        111           32,152       32,263
                                      ---------        ---------    ---------
Return per ordinary 50p share (p):                     
Basic                                      4.28           152.67       156.95
Diluted (FRS 14)                           4.17           148.89       153.06

 

Group Balance Sheet 

                                                     As at         As at
                                                   31.3.01       31.3.00
                                                   PDS'000       PDS'000
              
Fixed Assets              
Investments                                         51,742        81,474
Net current assets                                   5,569         1,078
                                                 ---------     ---------
                                                    57,311        82,552
Creditors:                
Amounts falling due after more than one year       (7,000)       (7,000)
                                                 ---------     ---------
                                                    50,311        75,552
                                                 ---------     ---------
Financed by              
Equity shareholders' funds                          50,311        75,552
              
              
Net asset value per ordinary share              
       - Basic                                     230.04p       358.61p
       - Fully-diluted                                 N/A       348.58p
       - Diluted (FRS 14)                              N/A       349.68p

 Group Consolidated Cash Flow Statement 
                                                     2001           2000
                                                    £'000          £'000
Operating activities              
Investment income received                          1,663          1,324
Deposit interest received                             171            188
Underwriting commission received                       23              4
Other income                                            -              1
Dealing activities in dealing subsidiary               25              -
Investment management fees paid                     (706)          (525)
Secretarial fees paid                                (61)           (62)
Other cash payments                                 (215)          (200)
                                                ---------      ---------
Net cash inflow from operating activities             900            730
                                                ---------      ---------
Servicing of finance              
Interest paid                                       (781)          (491)
                                                ---------      ---------
Net cash outflow from servicing of finance          (781)          (491)
                                                ---------      ---------
Taxation              
Tax recovered                                           -             72
                                                ---------      ---------
Capital expenditure and financial investment              
Purchase of investments                          (37,218)       (28,836)
Disposals of investments                           40,751         25,765
                                                ---------      ---------
Net cash inflow/(outflow) from capital
expenditure and financial investment                3,533        (3,071)
                                                ---------      ---------
Equity dividends paid                               (799)          (736)
                                                ---------      ---------
Net cash inflow/(outflow) before financing          2,853        (3,496)
                                                ---------      ---------
Financing              
Exercise of warrants                                  746             22
Warrants purchased for cancellation                  (36)          (324)
Loans drawn down                                    5,000          7,000
£6 million loan repaid 4 August 1999                    -        (6,000)
                                                ---------      ---------
Net cash inflow from financing                      5,710            698
                                                ---------      ---------
Increase/(decrease) in cash                         8,563        (2,798)
                                                ---------      ---------
Reconciliation of net cash flow to movement in net debt              
Increase/(decrease) in cash in the year             8,563        (2,798)
Loans drawn down                                  (5,000)        (7,000)
Loan repaid                                             -          6,000
                                                ---------      ---------
Changes in net debt resulting from cash flows       3,563        (3,798)
Currency gains/(losses)                                 8            (2)
                                                ---------      ---------
Movement in net debt                                3,571        (3,800)
                                                ---------      ---------
Net debt at 1 April 2000                          (4,206)          (406)
                                                ---------      ---------
Net debt at 31 March 2001                           (635)        (4,206)
                                                ---------      ---------

Notes

1.   Basic earnings per Ordinary Share are based on a weighted average of
21,602,046 Ordinary Shares in issue during the year (2000 - 21,060,012).  The
diluted earnings per Ordinary Share which is calculated in accordance with
Financial Reporting Standard 14 (Earnings per share) is 4.59p (2000 - 4.17p). 
This is based on return attributable to equity shareholders and on 21,698,724
(2000 - 21,594,938) Ordinary Shares, being the weighted average number of
Ordinary Shares in issue at the year end plus the number of shares that would
have been issued for no consideration using a weighted average share price of
144.30p (2000 - 204.20p).

2.   Final dividend of 3.00p (2000 - 2.75p) will be paid on 4 July 2001 to
shareholders on the Register on 18 May 2001.

3.   There were 21,870,260 Ordinary Shares in issue at 31 March 2001 (2000 -
21,067,815).  802,445 Ordinary Shares were issued in respect of warrants which
were exercised on 31 July 2000.  During the year 25,000 warrants were
purchased by the Company for cancellation at a cost of £36,000.  The
fully-diluted net asset value per share was 348.58p at 31 March 2000.  This
was calculated on the assumption that the warrants in issue were fully
exercised at the year end at 93p resulting in a larger number of shares
totalling 21,895,260.

The diluted net asset value per share calculated in accordance with Financial
Reporting Standard 14 (Earnings per share) was 349.68p at 31 March 2000.  This
was based on net assets and on 21,605,965 ordinary shares, being the number of
ordinary shares in issue at the year end plus the notional number of shares
that would have been issued for no consideration using the year end share
price of 266.0p to represent the fair value of an ordinary share.

4.   These are not statutory accounts in terms of Section 240 of the Companies
Act 1985. Statutory accounts for the year to 31 March 2000, which were
unqualified, have been lodged with the Registrar of Companies.  The statutory
accounts for 31 March 2001 are unqualified and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.

5.   The Annual General Meeting will be held at One Charlotte Square,
Edinburgh on Wednesday 20 June 2001 at 12.30pm.


Managed by Friends Ivory + Sime plc


For further information please contact:
Stephen Grant/Keith Hannay
Friends Ivory + Sime plc: Tel. [phone]