Final Results

3i Smaller Quoted Co's Trust PLC
25 April 2002


Stock Exchange announcement

3i Smaller Quoted Companies Trust plc

"An improving business outlook for smaller companies"

25 April 2002

The Board of 3i Smaller Quoted Companies Trust plc announces the preliminary
results for the year ended 28 February 2002.

Results overview

•         The net asset value per share as at 28 February 2002 was 211.6p.

•         The net asset value per share of the Trust fell by 25.2% in the year
to 28 February 2002 compared to a fall of 22.5% in the benchmark index.  If the
Trust had not been geared it would have performed broadly in line with the
benchmark index.

•         Since the inception of the FTSE SmallCap Index in 1993, the Trust's
net asset value per share has increased by 79% compared to 60% for the Trust's
benchmark index.

•         The Board is recommending a final dividend of 2.62p per share, the
same as last year, bringing the total dividend to 4.33p per share for the year
ended 28 February 2002.

•         The Board has a policy of using its powers to buy back the Trust's
shares where it considers that there is likely to be a benefit to shareholders.
The Trust bought back 155,000 shares in July 2001 and 60,000 shares in January
2002.

•         Although new issue activity in the market as a whole was low during
the period under review, the issues that were taken made a positive contribution
overall.  The Trust invested in three new issues; PHS, Murgitroyd and Integrated
Dental Holdings.  These showed an average increase in value of 7%, by the
financial year end.

Commenting, Henrietta Marsh, Fund Manager, 3i Investments plc, said:

"Business confidence is improving with many companies having taken the measures
necessary to adapt to harsher trading conditions.  In the event of underlying
turnover growth, there is the potential for a strong rebound in profits.

The IPO markets are also showing some early signs of recovery.  This is an area
where the Trust is well placed compared to other investors."

- ends -


For further information, please contact:


Henrietta Marsh                        Or            Vanessa Orr/Kate Inverarity
Fund Manager                                         Tulchan Communications
3i Investments plc

020 7975 3597                                        020 7353 4200

William Govett
Chairman
3i Smaller Quoted Companies Trust plc

020 7494 0625

Chairman's statement

The year to 28 February 2002 has proved difficult and challenging for markets
generally. However, there are some early signs that they may have reached the
bottom of a cycle in September 2001 and, looking forward, I am cautiously
optimistic.

Review of the year to 28 February 2002

The world economy slowed during the year to 28 February 2002. Although the
reduction in growth was not severe in comparison with some past recessions,
profits were hit hard in some sectors, particularly in the technology area where
overcapacity remains a problem. The decline in stock market indices which began
in early 2000, continued for much of the financial year.

Investors also became more risk averse as a result of events such as the
terrorist attacks on the US, the loan default by the Argentine government and
the collapse of Enron which has itself led to concerns about the integrity of
companies' accounts. As is typical at such times, the share prices of smaller
companies suffered more than those of larger companies.

The Trust's net asset value per share fell by 25.2% to 211.6p in the financial
year, compared with a fall of 22.5% in its benchmark index. Although net
borrowings were reduced and averaged £7.9 million over the year compared with
£15.6 million in the previous financial year, gearing had a negative effect and
accounted largely for the underperformance against the benchmark index.

Gearing policy

The Trust's gearing levels are regularly reviewed and the Board continues to
believe that moderate gearing is in the long term interest of shareholders.
Looking forward, the Trust's target net borrowing level has been set at £10
million for normal market conditions. This currently equates to a gearing level
of 7.8%.

Many portfolio companies with financial year ends in December have been
announcing results in recent weeks, providing a clearer outlook on the business
climate, and the Trust has been increasing investment as a result. Currently,
net borrowings stand at £9.3 million.

Earnings and dividends

Earnings per share were 4.68p for the year to 28 February 2002 compared with
4.69p for the previous year. Encouragingly, the majority of portfolio companies
generated dividend increases. However, total dividends fell as the Trust sold
some investments to reduce debt. The Board is recommending a final dividend of
2.62p per share, the same as last year, bringing the total dividend to 4.33p per
share for the year ended 28 February 2002.

Discount and share buybacks

The Board has a policy of using its powers to buy back the Trust's shares where
it considers that there is likely to be a benefit to shareholders. In July 2001,
the Trust's shares were trading at a discount to net asset value of more than
20% and the opportunity was taken to buy back a total of 155,000 shares. In
January 2002, a similar position prevailed and a further 60,000 shares were
bought back. Over the year the discount averaged 18.2% with particularly wide
discounts being seen in the period following the terrorist attacks on the US.

Outlook

Although the international political outlook is still uncertain, markets have
begun to anticipate an economic recovery, particularly in the United States.
Nonetheless, balance sheets are stretched in some sectors, such as
telecommunications and it will take some time before debt levels revert to more
normal historical levels. Smaller companies seem well placed to benefit from the
relatively strong economy in Britain which in itself should prosper from much
increased infrastructure expenditure. They also offer good value relative to
larger companies. However, we probably need to see greater confidence return to
the markets before there is significant share price appreciation. When this
confidence becomes firmly established, there is the potential for smaller
companies to perform strongly.

William Govett
24 April 2002




Investment Manager's review

Overall performance and strategy

The economic outlook deteriorated for much of the year ended 28 February 2002
during which time the Trust's investment strategy was focused on risk management
particularly in the areas of gearing, sector positions and individual stock
positions. Overall, the net asset value per share of the Trust fell by 25.2% in
the year, compared with a fall of 22.5% in the benchmark index. The Trust's
underperformance of 2.7% against the benchmark index was largely due to the
moderate gearing, reflecting both the effects of falling market values and the
cost of interest paid on borrowings.

Significant influences on the Trust's portfolio performance included an
overweight position in the Media sector which underperformed the benchmark index
and an underweight position in the General Retailers' sector which outperformed
the benchmark index. Although these had a negative impact, this was offset by
good stock selection within sectors, particularly in the Media, Support
Services, Speciality Finance, Software and Computer Services and IT Hardware
sectors. These are all sectors in which 3i has dedicated specialist resources.

Benchmark performance

The benchmark index fell by 22.5% compared with a fall of 14.0% in the FTSE All
Share Index. Influences on the relative performance of smaller companies include
their relative profit performance as well as valuation differentials. However,
other influences include investors' appetite for illiquid stocks which tends to
diminish in times of heightened uncertainty. In the past, there has been a
strong correlation between the relative performance of smaller companies and
credit spreads (or the amount by which interest rates paid by companies exceed
those paid by Government). These widened following the terrorist attacks on the
US, the loan default by the Argentine government and the collapse of Enron. At
the same time smaller companies underperformed. Over the year, defensive sectors
such as Food Retailers and domestic sectors such as Construction and General
Retailers fared well. The worst performing sectors were Telecommunications
Services, Software and Computer Services, IT Hardware and Media.

Portfolio performance

A good number of portfolio companies performed well. Many of these were
previously 3i unquoted investments, including Westbury (a housebuilder),
Clydeport (a port operator), Greggs (a sandwich shop chain), Nestor (a
healthcare provider), Holidaybreak (a holiday operator) and Ashtenne (an
industrial property company). There were also other successes, including T
Clarke (an electrical contractor), Budgens (a convenience food store retailer)
and Abbot (an oil services company).

Some investments which performed poorly were hit by the slowdown in technology
markets and these included Gooch & Housego (which produces optical components),
Advanced Power Components (which produces telecommunications components) and
TeleCity (a provider of internet infrastructure). There were also companies
directly affected by the events of 11 September 2001, including SVB (an insurer)
and Informa (a business publisher and conference organiser).

Activity

Turnover (which is the average of purchases and sales of investments) in the
reporting period was 29% of average investment assets. This was a substantial
increase on the equivalent period last year despite low levels of IPO and
take-over activity. The high level of turnover was a reaction to volatile market
conditions but also reflected gearing management. A number of stocks met both
our "buy" and "sell" target prices within the year. Examples include Abbot,
Brake Brothers, Tribal, RM and Autologic, which was bought at prices below 480p
and sold at prices above 580p.

Purchases were in two main categories. Firstly, there were domestically
orientated companies with a growth strategy. These included Alfred McAlpine,
Regent Inns and Unite Group. Alfred McAlpine is a business well placed to
benefit from the opportunities arising from the private finance initiative. The
company has a long history in the highway maintenance sector but has expanded
into other areas. After the stake in the company was bought, it announced the
sale of its house building division and its shares rose by 14%. Regent Inns is
an owner and operator of pubs and comedy clubs which has demonstrated success
with two formats and is confident that it will deliver on a third. Unite Group
builds and manages housing for universities and public agencies and is
benefiting from a trend to outsource the ownership and management of such
properties.

The second category of purchases were of companies which we are confident have
fundamentally sound businesses and in which we increased the Trust's holdings
when share prices were weak. Examples include ITNET and Brewin Dolphin.

Sales were generally made on rating grounds and included T Clarke, Budgens,
Rotork, Bloomsbury, Shire Pharmaceuticals, Headlam and Compco. One sale deserves
particular mention. The holding in Independent Insurance was sold promptly on
the announcement of the resignation of the Chief Executive. The company became
insolvent within two months and these sales recovered £1.0 million for the
Trust.

Although new issue activity in the market as a whole was low during the period
under review, the issues that were taken made a positive contribution overall.
The Trust invested in three new issues. These were PHS (the leading provider of
workplace services in the UK, offering rental and servicing of workplace items),
Murgitroyd (an intellectual property services business) and Integrated Dental
Holdings (a chain of dental practices). These holdings showed an average
increase in value of 7% by the financial year end. The Trust also had the option
to purchase stock directly from 3i in four instances. However, the option is of
most use when it is difficult to obtain a full allocation of stock and as this
was not generally the case in the period under review, it was not utilised.
Where we had a positive view, we bought stock in the market.

Takeover activity in the market as a whole fell sharply for the year to 28
February 2002 compared with the previous financial year. There were three
takeover bids for companies in the Trust's portfolio, Novara, Meconic and WT
Foods and these holdings showed an average realised gain of 48% on values at the
beginning of the financial year.

Conclusion and portfolio positioning

Risk continues to be carefully managed and the portfolio remains broadly
diversified. As at 28 February 2002, the largest stockholding represented 2.8%
of the portfolio and the largest sector position in absolute terms was in
Support Services where the Trust had a 14.4% weighting. The most significant
position relative to the benchmark index was in the General Retailers' sector
where the Trust was 4.8% underweight.

Nevertheless, the universe of stocks from which the Trust chooses its
investments has become riskier with a large number of loss making companies
having achieved listings in the last few years. For example, as at 28 February
1999, 8.5% of the benchmark index was loss making*, a figure which had increased
to 17% by 28 February 2002. At some point the shares in these companies may
perform well.  However, currently the Trust has a lower exposure to loss makers
and these comprised 8% of the portfolio at the year end. Another indication of
risk is given by dividend yields which have fallen. The total dividends received
from the constituents of the benchmark index fell by 25% over the year to 28
February 2002 implying a yield of 2.8%. The yield on the portfolio was 2.6% at
that date.

Business confidence is improving with many companies having taken the measures
necessary to adapt to harsher trading conditions. In the event of underlying
turnover growth, there is the potential for a strong rebound in profits. We have
therefore been increasing investment levels. Net borrowings, which reached a low
of £1.3 million in November 2001, currently stand at £9.3 million, representing
a gearing level of 7.2%.

The Manager's strategy is to add value to the portfolio in three main ways. The
first involves investing in companies which are at an early stage in their
growth. The second is to utilise 3i's in-depth sector based knowledge and
international network of contacts in the smaller companies market (particularly
companies in the Trust's and 3i's portfolios and former portfolios). The third
involves taking advantage of 3i backed IPO opportunities where the Trust is well
placed compared to other investors. We believe this strategy can provide
performance above that of the benchmark index over the long term.


Henrietta Marsh
Fund Manager
3i Investments plc
24 April 2002







* Financial Reporting Standard 3 definition for most recent published results


Statement of total return
for the year ended 28 February 2002 (incorporating the Revenue Account)


                                        Year ended 28 February 2002           Year ended 28 February 2001
                                      Revenue    Capital      Total      Revenue     Capital        Total
                                        £'000      £'000      £'000        £'000       £'000        £'000
Gains on investments
Net realised losses over
previous valuation                               (7,347)    (7,347)                  (4,041)      (4,041)
                                                 
Net unrealised depreciation                     (32,323)   (32,323)                 (24,854)     (24,854)

                                                (39,670)   (39,670)                 (28,895)     (28,895)

Income                                  3,813                 3,813        3,857                    3,857

Investment management fee               (331)      (993)    (1,324)        (485)     (1,455)      (1,940)

Other expenses                          (277)                 (277)        (312)                    (312)

Net return before finance costs         3,205   (40,663)   (37,458)        3,060    (30,350)     (27,290)

Interest payable and similar
charges                                 (511)      (712)    (1,223)        (352)       (982)      (1,334)
                                        
Return on ordinary activities
for the financial year                  2,694   (41,375)   (38,681)        2,708    (31,332)     (28,624)
                                        
Dividends

Interim 1.71p per share paid
(2001: 1.71p per share paid)            (984)                 (984)        (982)                    (982)
                                        
Final 2.62p per share proposed
(2001: 2.62p per share paid)          (1,506)               (1,506)      (1,512)                  (1,512)
                                      

Transfer to reserves                      204   (41,375)   (41,171)          214    (31,332)     (31,118)

Return per ordinary share
(pence)                                 4.68p   (71.82)p   (67.14)p        4.69p    (54.25)p     (49.56)p
                                        



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

No operations were acquired or discontinued during the year.


Balance sheet

as at 28 February 2002


                                                                                     2002              2001

                                                                                    £'000             £'000
Fixed assets
Investments                                                                       128,901           180,779
Current assets
Debtors                                                                               185             1,043
Cash and short term deposits                                                        9,777             3,078
                                                                                    9,962             4,121
Creditors: amounts falling due within one year                                    (2,506)           (6,986)
Net current assets/(liabilities)                                                    7,456           (2,865)
Total assets less current liabilities                                             136,357           177,914

Creditors: amounts falling due after more than one year                          (14,703)          (14,688)
                                                                                 
Net assets                                                                        121,654           163,226
Capital and reserves
Called-up share capital                                                            14,376            14,430
Share premium                                                                      38,952            38,952
Capital redemption reserve                                                            104                50
Capital reserve - realised                                                         67,435            63,970
                              - unrealised                                        (1,895)            43,346
Revenue reserve                                                                     2,682             2,478
Total shareholders' funds                                                         121,654           163,226
Net asset value per share (pence)                                                  211.6p            282.8p



Approved by the Board.



William Govett
Director
24 April 2002

Cash flow statement
for the year ended 28 February 2002


                                                                                     2002                2001
                                                                                    £'000               £'000
Operating activities
Investment income received                                                          3,453               3,790
Deposit interest received                                                             270                  72
Underwriting commission received                                                       21                  10
Investment management fees paid                                                   (1,974)             (1,685)
Secretarial fees paid                                                                (59)                (59)
Other cash payments                                                                 (233)               (246)
Net cash inflow from operating activities                                           1,478               1,882
Servicing of finance
Interest paid                                                                     (1,332)             (1,312)
Net cash outflow from servicing of finance                                        (1,332)             (1,312)
Financial investment
Purchase of investments                                                          (36,165)            (44,308)
Sale of investments                                                                49,115              45,635
Net cash inflow from financial investment                                          12,950               1,327
Equity dividends paid                                                             (2,496)             (2,442)
Financing
Purchase of ordinary shares for cancellation                                        (401)               (453)
(Repayment)/drawdown of short term loan                                           (3,500)               3,500
Net cash (outflow)/inflow from financing                                          (3,901)               3,047
Increase in cash                                                                    6,699               2,502


Notes to the financial statements
for the year ended 28 February 2002


1. Reconciliation of net revenue before finance costs to net cash inflow           2002          2001
from operating activities
                                                                                  £'000         £'000
Net revenue before finance costs                                                  3,205         3,060
Scrip dividends                                                                    (63)          (46)
Investment management fee allocated to capital reserve - realised                 (993)       (1,455)
(Increase)/decrease in accrued income                                               (6)            61
(Decrease)/increase in creditors                                                  (664)            69
(Increase)/decrease in debtors                                                      (1)           193
Net cash inflow from operating activities                                         1,478         1,882

2. Reconciliation of net cash flow to movement in net debt                         2002          2001

                                                                                  £'000         £'000
Increase in cash in the year                                                      6,699         2,502
Cash outflow/(inflow) from change in debt                                         3,500       (3,500)
Amortised Debenture stock issue expenses                                           (15)          (14)
Movement in net debt in the year                                                 10,184       (1,012)
Opening net debt                                                               (15,110)      (14,098)
Closing net debt                                                                (4,926)      (15,110)

3. Analysis of changes in net debt


                                                                        Amortised issue
                                                             Cash flows        expenses
                                                   Opening        £'000           £'000 Closing £'000
                                                     £'000
Cash and short term deposits                         3,078        6,699               -         9,777
Debt due within one year                           (3,500)        3,500               -             -
Debt due after more than one year                 (14,688)            -            (15)      (14,703)
                                                  (15,110)       10,199            (15)       (4,926)

Notes to editors

The objective of 3i Smaller Quoted Companies Trust plc is to achieve long term
capital growth by investing mainly in smaller UK quoted companies.

The Trust's benchmark is the FTSE SmallCap Index excluding Investment Companies.

3i Smaller Quoted Companies Trust plc is managed by the Asset Management
division of 3i Investments plc which is an active fund manager seeking to
achieve returns in excess of benchmark indices through the use of fundamental
analysis.  The Manager aims to use the skills and information base gained
through being part of the 3i Group.  A significant proportion of the Trust's
portfolio by value is in companies formerly backed by the 3i Group.

3i Investments plc is regulated by the Financial Services Authority and is a
wholly owned subsidiary of 3i Group plc, Europe's leading venture capital
company.  The relationship with the 3i Group brings several important benefits
to 3i Investments plc and the funds managed by its Asset Management division,
including access to the 3i Group's international network, which operates across
16 countries on three continents.  This provides an important source of
information on local companies.

In addition to the management of 3i Smaller Quoted Companies Trust plc, the
Asset Management division of 3i Investments plc is involved in the management of
the 3i Group's own portfolio of quoted investments and manages 3i Bioscience
Investment Trust plc, 3i European Technology Trust plc and the 3i Group Pension
Plan.

Notes to the announcement

1        A final dividend of 2.62p per ordinary share is recommended and,
subject to its approval at the Annual General Meeting on 12 June 2002, will be
paid on 26 June 2002 to shareholders on the register at 24 May 2002.  Together
with an interim dividend of 1.71p per share paid in November 2001 this makes a
total of 4.33p per share for the year, compared with 4.33p per share for the
year ended 28 February 2001.

2        The Report and Accounts will be posted to shareholders on 30 April 2002
and the Annual General Meeting will be held at 12 noon on 12 June 2002 at the
offices of 3i plc, 91 Waterloo Road, London SE1 8XP.

3        The statutory accounts for the year ended 28 February 2002 have not yet
been delivered to the Registrar of Companies.  The statutory accounts for the
year ended 28 February 2001 were filed with the Registrar of Companies on 6 June
2001.  The auditors' reports on both of these statutory sets of accounts were
unqualified and did not contain any statements under Section 237 (2) or (3) of
the Companies Act 1985.  This announcement does not constitute statutory
accounts.


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