Final Results

North Atlantic Smlr Co Inv Tst PLC
17 April 2003



NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 JANUARY 2003

Chairman's Statement



As shareholders will no doubt be aware, the year to 31 January 2003 was a
difficult one for stock markets. The S&P Composite Index fell by over 24% over
the year ended 31 January 2003 and by almost 35% once the devaluation of
sterling against the US dollar was taken into account.



Against this, the Company performed relatively well, with the fully diluted net
asset value declining by 14.1% to 598p per share.



The revenue account showed a loss for the year after taxation of £4,897,000
(2002: loss £519,000). This year's loss is arrived at after charging
approximately £3.5 million in respect of the purchase and cancellation of share
options.



As in previous years and in line with the Company's long-term policy, the
directors are not recommending a dividend for the year. (2002: nil).



Quoted investments

Our quoted investments in the United States or with significant US exposure
performed well with American Opportunity Trust significantly out-performing the
Russell 2000 Index. Performance was also helped by the takeover of Resource
Bancshares Mortgage Group and the near doubling in the share price of LESCO. WH
Energy Services outperformed the market.



Performance in the United Kingdom was mixed, as Charter, Simon Group and The
Hartstone Group in particular performed poorly. This however was partly offset
by good performance by Ennstone and Highway Insurance Holdings.



Unquoted investments

When taken as a whole, the unquoted portfolio performed well. In particular,
Waterbury was refinanced during the year. The resulting valuation of the
business allowed us to increase our carrying value by 66%. Great Bank and
Konover Property Trust were both sold. It was necessary to make reductions in
the carrying values of Isle of Wight Cable and Telephone Company, MessageLink,
Directo, and Gateway Homecare.



Generally the companies in the unquoted portfolio recorded good trading
performance during 2002 and early indications suggest that the current year has
started well.



Two significant new investments were made in the year - Nationwide Accident
Repair Services and United Industries.



Outlook

After the significant declines experienced during 2002, UK and US stockmarkets
now appear to be consolidating and are trading in a relatively narrow range. At
this stage it is still difficult to be optimistic about the trend in share
prices in the near term. In the United States markets remain subdued following
the various corporate excesses and misreporting of results that have come to
light in recent months, as well as a general slow down in economic activity.



Although economic conditions in the UK have been generally benign during the
year, investor confidence is at a low ebb. The pension deficits of a large
number of companies and the consequent likely negative impact on corporate
profitability have been well publicised, as have been the forced sales of
equities by institutions seeking to protect solvency margins. Companies' trading
results have been further adversely affected by a general decline in business
activity in Europe - the UK's largest trading partner.



Overlaying all of this is concern over the developments in the Middle East.



The Company's portfolio remains well placed to take advantage of any upturn in
markets. We have a concentrated portfolio of both quoted and unquoted
investments across a broad range of industries, together with low effective
gearing. There are sufficient borrowing facilities in place to allow the Company
to take advantage of attractive opportunities as they arise.



Directors

I am saddened to be once more reporting the death of a Director to you.
Following the diagnosis of a serious illness, Roger Adams resigned as a director
in August and died in December 2002. Roger's wide knowledge of investment,
allied to a commonsense approach to issues was highly valued by the Board.



In his place we welcome Charles L A Irby, who brings a wealth of experience to
our deliberations.







Enrique Foster Gittes

Chairman

17 April 2003







CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account) for the year ended 31 January

                                              Revenue      Capital        Total     Revenue     Capital       Total
                                                 2003         2003         2003        2002        2002        2002
                                                £'000        £'000        £'000       £'000       £'000       £'000

Losses on investments                               -      (21,036)     (21,036)          -     (21,375)    (21,375)
Exchange differences on capital items               -        2,361        2,361           -        (644)       (644)
Dividends and interest                          3,563            -        3,563       5,445           -       5,445
Other income                                     (288)           -         (288)       (406)          -        (406)
Investment management fee                      (2,397)           -       (2,397)     (2,880)          -      (2,880)
Cost of purchase and cancellation of           (3,508)           -       (3,508)          -           -           -
options
Other expenses                                   (599)           -         (599)       (538)          -        (538)

Net return before
finance costs and taxation                     (3,229)     (18,675)     (21,904)      1,621     (22,019)    (20,398)

Premium paid on repurchase of CULS                  -       (3,387)      (3,387)          -           -           -
Interest payable and similar charges           (1,637)           -       (1,637)     (2,065)          -      (2,065)


Return on ordinary activities
before taxation                                (4,866)     (22,062)     (26,928)       (444)    (22,019)    (22,463)

Taxation on ordinary activities                   (31)           -          (31)        (75)          -         (75)


Return on ordinary activities
after taxation                                 (4,897)     (22,062)     (26,959)       (519)    (22,019)    (22,538)

Dividend in respect of equity shares                -            -            -           -           -           -


Transfer from reserves                         (4,897)     (22,062)     (26,959)       (519)    (22,019)    (22,538)


Return per Ordinary share:                      pence        pence        pence       pence       pence       pence
Basic                                          (41.09)     (185.14)     (226.23)      (4.54)    (192.64)    (197.18)
Diluted#                                       (24.03)     (109.16)     (133.19)      (2.26)    (105.14)    (107.40)



* The revenue column of this statement is the consolidated profit and loss
account of the Group.

# Although Financial Reporting Standard No. 14: Earnings per share states that
Returns per Share which are not diluted are not disclosed, they have been shown
here for information.

All revenue and capital items in the above statement derive from continuing
operations.









CONSOLIDATED BALANCE SHEET

as at 31 January


                                                                                2003                   2002
                                                                               £'000                  £'000

Fixed Assets
Investments                                                                  131,511                167,677

Current assets
Investments held in subsidiary company                                           175                    183
Debtors                                                                        3,448                  2,738
Cash at bank                                                                   9,282                  8,416


                                                                              12,905                 11,337

Creditors: amounts falling due within one year
Bank loans and overdrafts                                                      9,935                  3,600
Other creditors and accruals                                                   1,830                  4,020

                                                                              11,765                  7,620

Net current assets                                                             1,140                  3,717

Total assets less current liabilities                                        132,651                171,394

Creditors: amounts falling due after
more than one year
Bank loans                                                                    13,673                 25,429
Debenture loan - Convertible Unsecured
Loan Stock 2013                                                                  393                    444

                                                                             118,585                145,521

Capital and reserves
Called up share capital                                                          604                    581
Share premium account                                                            629                    629
Capital reserve - realised                                                   116,732                134,725
Capital reserve - unrealised                                                   5,421                  9,490
Revenue reserve                                                               (4,801)                    96

Equity shareholders' funds                                                   118,585                145,521


Net asset value per Ordinary share:                                            pence                  pence
Basic                                                                            982                  1,253
Fully diluted                                                                    598                    696






CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 January
                                                                              2003                  2002
                                                                             £'000                 £'000

Net cash (outflow)/inflow from operating activities                         (2,920)                1,036

Servicing of finance
Bank interest paid                                                          (1,598)               (1,993)
CULS interest paid                                                             (39)                  (44)
Expenses of bank loan                                                            -                    (6)

Net cash outflow from servicing of finance                                  (1,637)               (2,043)

Taxation
Income tax paid                                                                  -                    (9)
Tax recovered                                                                    -                     5


Tax paid                                                                         -                    (4)

Investing activities
Purchases of fixed asset investments                                      (141,477)             (218,250)
Proceeds from sale of fixed asset investments
(including option premiums)                                                155,873               216,159
Loan to Ryder Court Investments                                             (7,667)                    -
Partial repayment of loan from Ryder Court Investments                       5,000                     -

Net cash inflow/(outflow) from investing activities                         11,729                (2,091)

Net cash inflow/(outflow) before financing                                   7,172                (3,102)

Financing
Repayment of fixed term borrowings                                          (2,500)               (6,000)
Drawdown of fixed term borrowings                                                -                 6,000
Cost of purchase of CULS for cancellation                                   (3,415)                    -

Net cash outflow from financing                                             (5,915)                    -

Increase/(decrease) in cash                                                  1,257                (3,102)




Notes:



The above results for the year to 31 January 2003 are audited.



The Directors do not recommend the payment of a final dividend for the year
(2002: nil).



Basic return per Ordinary share has been calculated using the weighted average
number of Ordinary Shares in issue during the year, being 11,916,605 (2002:
11,430,006).



Basic net asset value per Ordinary Share is based on net assets of £118,585,000
(2002: £145,521,000) and on 12,081,382 Ordinary Shares (2002: 11,615,153) being
the number of Ordinary Shares in issue at the year end.



The fully diluted net asset value per Ordinary share has been calculated on the
assumption that all of the outstanding 2013 Loan Stock is fully converted at par
resulting in a total issued share capital of 19,932,052 Ordinary shares. The
conversion price of the share options was above the diluted net asset value at
31 January 2003 and so the diluted figure does not include the exercise of the
495,000 share options. The diluted net asset value per Ordinary share as at 31
January 2002 was calculated on the assumption that all of the outstanding 2013
Loan Stock was fully converted at par and that all 900,000 share options were
exercised at the prevailing exercise prices, giving a total of 21,401,352 issued
Ordinary shares.



The financial information set out above does not constitute the Company's
statutory financial statements for the year ended 31 January 2003 but is derived
from and has been prepared on the same basis as those financial statements.



The statutory financial statements for the year ended 31 January 2003 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. The Annual General
Meeting will be held on Tuesday 17 June 2003 at 3pm in the Board Room, Ground
Floor, Ryder Court, 14 Ryder Street, London SW1Y 6QB.  The Annual Report will be
posted to shareholders and those individuals on the Company's mailing list as
soon as practicable after printing and will also be available on request from
the Company Secretary, J O Hambro Capital Management Limited, Ground Floor,
Ryder Court, 14 Ryder Street, London SW1Y 6QB.



The above results for the year ended 31 January 2002 are an abridged version of
the Company's full accounts which received an audit report that was unqualified
and did not contain any statements under section 237(2) or (3) Companies Act
1985. The accounts for the year ended 31 January 2002 have been filed with the
Registrar of Companies.






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