Preliminary Results

Aberdeen Asian Smaller Co's Inv Tst
13 October 2005


ABERDEEN ASIAN SMALLER COMPANIES INVESTMENT TRUST PLC
PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS
for the year ended 31 July 2005


Highlights
     
•    NAV total return +44.5%
•    Share price total return +57.8%
•    Proposed dividend increased by 11.3%


Results and Dividend

I am pleased to report that your Company continued to perform well in a period
that was characterised by persistently high oil prices and rising interest
rates. The Company's net asset value total return was 44.5% in the year to 31
July 2005.  During the year the price of the Ordinary shares moved from a 6.8%
discount to net asset value to a premium of 1.7% resulting in a total share
price return of 57.8% for the year.

We do not have a benchmark as such but for comparative purposes we look at a
broad index, the MSCI AC Asia Pacific Free ex-Japan Index, which had a currency
adjusted total return of 44.7%. We also look at our peer group, and your Company
has performed well, winning a further accolade of 'Money Observer Investment
Trust Awards - Best Asia Pacific Trust', in recognition of consistently superior
investment performance in each of the past three calendar years.

Your Board is pleased to recommend the payment of a final dividend of 3.45p
(2004 - 3.10p) which, if approved by shareholders, will be payable on 25
November 2005 to Ordinary Shareholders on the register on 28 October 2005.  This
represents an improvement of 11.3% per cent against the level paid in 2004; and
is evidence of a trend towards the creation of shareholder value in Asia in the
form of increased dividends and buybacks.


Overview

Asia's stock markets have enjoyed an exceptional run. Their performance is
equally cause for surprise and caution. Surprise, because after two strong years
of growth some consolidation was expected. The caution follows from that: is the
rally sustainable?

Interest in the region has continued for several reasons. Companies continue to
press ahead with reforms, while cashflow and dividend payouts are on an
improving trend. In addition, foreign investors in particular have been
committing substantial funds to the region in the light not only of growth
prospects but also in anticipation of local currencies appreciating against the
US dollar.

The best argument, however, is the fundamental one - and this is rightly the
only one our Managers are interested in. Here, though, generalisations tend to
break down.  For example, while India appears to have sustained a boom that has
left even locals now predicting a correction, the plain fact is that earnings
have surprised on the upside. Contrast this with, say, Korea where the opposite
is the case.

Across Southeast Asia market gains have been driven in part by local factors,
for example political change in Malaysia and Indonesia. In Thailand, consumption
has been curtailed as the government pushes for an end to fuel subsidies. The
short-term cost is higher inflation, but a sudden deficit on the trade balance
is for the government a less tolerable outcome.

The most bullish conditions for markets have been in Hong Kong and Singapore.
Unemployment is down, confidence is returning and this has fed into a rising
property market.  A multi-year uptrend could lie ahead, although as an asset
class property tends to compete head on in Asia with equities. Domestic demand
is probably the glue that has held fundamentals together. Against this, exports
have softened. Along with rising energy prices, this accounts for why growth
forecasts have recently been pinned back.

If there is any exception to this gloss, it is China. While there is much to
commend, China's economy is very much a 'pre-crisis' one based on command
economy controls. Inefficient allocation of resources has encouraged
over-diversification, including into non-productive assets. Few companies are
consequently making decent returns. Mainland shares have thus drifted to
five-year lows while other markets are looking at five-year highs. So China
still represents an investment frontier.


Portfolio

The portfolio has a pronounced slant to domestic demand stocks. However, this is
less a thematic bias than a pragmatic recognition of where earnings appear most
visible and sustainable. Further, the appeal of individual stocks transcends
that of their markets.

That said, the run-up in markets has provided a useful exit for certain
holdings. The majority of holdings otherwise have performed very well.
Selective profits were taken across the board with new positions initiated in
half a dozen stocks. Names here include Goodlass Nerolac Paints, Hong Kong
Catering, Fong's Industries and POS Malaysia & Services.


Gearing

During the year the Company continued to take advantage of its flexible gearing
facilities and it repaid its £2.5m facility with Standard Chartered Bank funding
the repayment by drawing down under the Company's facility with Allied Irish
Banks.  At the same time the AIB facility was increased from £6m to £10m (drawn
down in US dollars, Hong Kong dollars and sterling). The benefits of the policy
are in part demonstrated by the Company's excellent performance in the last
year. The Board, which is responsible for the gearing policy, continues to
review the gearing levels with the Manager on a regular basis and to take
appropriate action. As at 31 July 2005, gearing stood at approximately £8.5m
representing 10.3% of the net asset value of the Company.


Authority to Issue or Repurchase Shares and to Hold Shares in Treasury

During the year the demand for the Ordinary shares was strong and the Company
issued a total of 2.1m new Ordinary shares for cash at an average premium to the
prevailing net asset value of approximately 1.9%.  At the forthcoming Annual
General Meeting the Board will be seeking to renew the Company's authority to
issue up to 10% of its issued capital for cash.  At the same time the Company is
seeking to renew its existing authority to repurchase up to 14.99% of its
shares.  These powers are being extended to enable the Company for the first
time to repurchase up to 10% of its Ordinary shares and hold them in treasury,
pursuant to new regulations which became operative in December 2003.  However,
it is not intended that shares held in treasury will be issued at a discount to
prevailing net asset value.


Outlook

I said at the outset that there were grounds for caution.  Although companies
across the region have shown a firm tone to reporting, valuations over the past
six months have started to look a little less compelling. Some market
consolidation would therefore not come as a surprise through the rest of the
year. This would especially be the case if there was some re-assessment of the
apparently vibrant health of the US economy, which would hurt sentiment in Asia.
Equally plausible is a slowdown in China, yet the authorities seem determined to
defer this (and it is in their hands). Nearer still is the spectre of oil-led
inflation.

So while global funds are still being drawn to the region, and all seems well,
it is an open guess how the current liquidity influx will play out. The basic
proposition is that Asia's earnings cycle is still at an early stage (whereas
the developed, especially Anglo-Saxon, markets look over-extended). That looks
uncontentious and a strong but by no means only point in the region's favour.


Annual General Meeting

This year's Annual General Meeting will be held on Wednesday 23 November 2005 at
12 noon and your Board looks forward to seeing Shareholders there.


Nigel Cayzer
Chairman
13 October 2005


Statement of Total Return
                                                            Year ended                      Year ended
                                                           31 July 2005                    31 July 2004
                                                           (unaudited)                       (audited)
                                                    Revenue    Capital      Total    Revenue    Capital     Total
                                                      £'000      £'000      £'000      £'000      £'000     £'000

Gains on investments                                      -     25,543     25,543          -      5,276     5,276

Income                                                3,473          -      3,473      3,077          -     3,077
Investment management fee                             (708)          -      (708)      (558)          -     (558)
Administration expenses                               (465)        (4)      (469)      (449)          -     (449)
Exchange (losses)/gains                                   -      (258)      (258)          -        468       468

Net return before finance costs and taxation          2,300     25,281     27,581      2,070      5,744     7,814

Interest payable and similar charges                  (352)          -      (352)      (283)          -     (283)

Return on ordinary activities before taxation         1,948     25,281     27,229      1,787      5,744     7,531

Taxation on ordinary activities                       (701)          -      (701)      (715)          -     (715)

Return on ordinary activities after taxation          1,247     25,281     26,528      1,072      5,744     6,816

Dividends in respect of equity shares                 (995)          -      (995)      (829)          -     (829)

Transfer to reserves                                    252     25,281     25,533        243      5,744     5,987

Return per Ordinary share (pence):
Basic                                                  4.54      91.94      96.48       4.01      21.47     25.48

Fully-diluted                                          4.00      81.05      85.05       3.62      19.39     23.01



The revenue column of this statement is the revenue account of the Company.

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



Balance Sheet
                                                                      As at 31 July 2005        As at 31 July 2004
                                                                             (unaudited)                 (audited)
                                                                                   £'000                     £'000
Fixed assets
Investments                                                                       90,147                    60,712

Current assets
Debtors                                                                            1,509                       193
Cash at bank and in hand                                                           1,145                     1,181
                                                                                   2,654                     1,374

Creditors: amounts falling due within one year
Bank loans                                                                       (8,509)                   (8,205)
Other creditors                                                                  (1,649)                   (1,518)

                                                                                (10,158)                   (9,723)

Net current liabilities                                                          (7,504)                   (8,349)

Total assets less current liabilities                                             82,643                    52,363

Provisions for liabilities and charges                                              (59)                      (31)

Net assets                                                                        82,584                    52,332

Share capital and reserves
Called-up share capital                                                            7,214                     6,689
Capital redemption reserve                                                         2,062                     2,062
Share premium account                                                              4,194                         -
Special reserve                                                                   14,990                    14,990
Warrant reserve                                                                    2,275                     2,275
Capital reserve - realised                                                        17,581                    14,409
Capital reserve - unrealised                                                      33,513                    11,404
Revenue reserve                                                                      755                       503

Equity Shareholders' funds                                                        82,584                    52,332

Net asset value per Ordinary share (pence):
Basic                                                                             286.21                    195.60

Fully-diluted                                                                     249.86                    175.78



Cash Flow Statement
                                                               Year ended                     Year ended
                                                              31 July 2005                   31 July 2004
                                                              (unaudited)                     (audited)
                                                               £'000          £'000           £'000          £'000

Net cash inflow from operating activities                                     1,900                          1,768

Servicing of finance
Bank and loan interest paid                                                   (370)                          (300)

Taxation
Net taxation paid                                                             (338)                          (173)

Financial investment
Purchases of investments                                    (12,573)                        (9,741)
Sales of investments                                           8,676                          6,382

Net cash outflow from financial investment                                  (3,897)                        (3,359)

Equity dividend paid                                                          (829)                          (829)

Net cash outflow before financing                                           (3,534)                        (2,893)

Financing
Issue of shares                                                3,456                              -
Expenses of share issue charged to capital                       (4)                              -
Drawdown of loans                                             84,692                         33,577
Repayment of loans                                          (84,777)                       (30,251)

Net cash inflow from financing                                                3,367                          3,326

(Decrease)/increase in cash                                                   (167)                            433

Reconciliation of net cash flow to movements in
net debt
(Decrease)/increase in cash as above                                          (167)                            433
Cash outflow/(inflow) from drawdown of loans                                     85                        (3,326)
Exchange movements                                                            (258)                            468

Movement in net debt in the year                                              (340)                        (2,425)
Opening net debt                                                            (7,024)                        (4,599)

Closing net debt                                                            (7,364)                        (7,024)



Notes:


1. Income
                                                              2005                    2004
                                                             £'000                   £'000
Income from investments
UK dividend income                                             101                      92
Overseas dividends                                           3,317                   2,962
                                                             3,418                   3,054
Other income
Deposit interest                                                55                      23
Total income                                                 3,473                   3,077



2. Return per Ordinary share
                                                  2005                          2004
                                          Revenue   Capital   Total     Revenue   Capital   Total
Return per Ordinary share                       p         p       p           p         p       p

Basic                                        4.54     91.94   96.48        4.01     21.47   25.48
Diluted                                      4.00     81.05   85.05        3.62     19.39   23.01


The basic revenue return per Ordinary share is based on net revenue on ordinary
activities after taxation of £1,247,000 (2004 - £1,072,000) and on 27,496,292
(2004 - 26,754,100) Ordinary shares, being the weighted average number of
Ordinary shares in issue during the year.

The basic capital return per Ordinary share is based on net capital gains for
the year of £25,281,000 (2004 - £5,744,000) and on 27,496,292 (2004 -
26,754,100) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year.

The calculation of the fully diluted revenue and capital returns per Ordinary
share are carried out in accordance with Financial Reporting Standard No. 14,
"Earnings per Share". For the purposes of calculating diluted revenue and
capital returns per Ordinary share, the number of Ordinary shares is the
weighted average used in the basic calculation plus the number of Ordinary
shares deemed to be issued for no consideration on exercise of all Warrants by
reference to the average share price of the Ordinary shares during the year. The
calculations indicate that the exercise of Warrants would result in an increase
in the weighted average number of Ordinary shares of 3,694,366 (2004 -
2,871,422) to 31,190,658 (2004 - 29,625,522) Ordinary shares.


3. Net asset value per share

The net asset value per share and the net asset values attributable to Ordinary
Shareholders at the year end calculated in accordance with the Articles of
Association were as follows:

                               Net asset value                   Net asset values
                           per share attributable                  attributable
                                  2005              2004             2005             2004
                                     p                 p            £'000            £'000

Basic                           286.21            195.60           82,584           52,332
Fully-diluted                   249.86            175.78


The movements during the year of the assets attributable to Ordinary shares were
as follows:-

                                                                         2005                  2004
                                                                        £'000                 £'000

Net assets attributable at 1 August                                    52,332                46,345
Capital return for the year                                            25,281                 5,744
Issue of shares during the year                                         4,719                     -
Return on ordinary activities after taxation                            1,247                 1,072
Dividend appropriated in the year                                       (995)                 (829)
Net assets attributable at 31 July                                     82,584                52,332

The basic net asset value per Ordinary share is based on net assets, and on
28,854,100 (2004 - 26,754,100) Ordinary shares, 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 6,999,400 (2004 - 6,999,400) Warrants in issue were exercised on
the first day of the financial year at 100p per share, giving an average of
35,853,500 (2004 - 33,753,500) Ordinary shares.


4. The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 July 2005 or 2004. The financial
information for 2004 is derived from the statutory accounts for 2004 which have
been delivered to the Registrar of Companies.  The auditors have reported on the
2004 accounts; their report was unqualified and did not contain a statement
under Section 237(2) or (3) of the Companies Act 1985.  The statutory accounts
for 2005 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 in due course.


5. Copies of the Annual Report will be posted to Shareholders shortly and
further copies may be obtained from the registered office, One Bow Churchyard,
Cheapside, London EC4M 9HH.


Aberdeen Asset Management PLC,
Secretaries.
13 October 2005


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