Final Results

F&C U.S. Smaller Companies PLC
06 September 2005

               

Date:       6 September 2005

Contact:    Robert Siddles                     Lisa Stanley
            F&C Management Limited             Lansons Communications
            020 7628 8000                      020 7294 3692


                          F&C US SMALLER COMPANIES PLC
                   Unaudited Preliminary Statement of Results
                        for the year ended 30 June 2005

HIGHLIGHTS
     
•    The net asset value (NAV) per share of the Company rose 21.2% to 296.37p, 
     compared to an increase of 9.4% in our benchmark, the sterling-adjusted
     Russell 2000 Index.

•    Your Company's NAV performance has exceeded its benchmark for the last
     five years and in eleven out of the twelve years since formation.

•    The Board believes that the Company's investment policy will continue
     to benefit shareholders over the longer term.

SUMMARY OF RESULTS
                                             30 June 2005       30 June 2004       % change

Net assets                                        £71.43m            £64.76m          +10.3

Net assets per share                              296.37p            244.53p          +21.2

Share price                                       263.50p            216.50p          +21.7

Extracts from the Chairman's Statement

Dear Shareholder

I am pleased to report an excellent year for your Company.  The net asset value
(NAV) per share of the Company rose 21.2% to 296.37p, compared to an increase of
9.4% in our benchmark, the sterling-adjusted Russell 2000 Index.

Your Company's NAV performance has exceeded its benchmark for the last five
years and in eleven of the twelve years since formation in March 1993. Since
then, the NAV per share has risen by 207.1%, whereas the sterling-adjusted
Russell 2000 Index gained 126.3%.

Market Review

During the year under review the Russell 2000 rose by 8.1%, in dollar terms,
significantly better than the other major indices such as the Standard & Poors
Composite Index, which gained 4.4% and the more technology-orientated NASDAQ
Composite Index, which advanced by 0.5%. Once again the US smaller company
sector provided superior equity returns.

Early on in the Company's financial year, the smaller company sector rallied but
from November a period of retrenchment set in. This reflected growing concerns
about the impact on economic growth of rising interest rates and oil prices.
The sector resumed its advance in May, making new record highs shortly after the
end of the financial year.

Sterling investors benefited from a small rise in the US dollar over the year.
The dollar was helped by rising US interest rates and hopes that politicians
would address the burgeoning US fiscal deficit. The turnaround was more
significant since 31 December 2004 at which date the dollar had fallen to very
low levels against the pound.  It subsequently recovered sharply. This is a
relief following several years of exchange rate losses for UK investors.

The energy sector was by far the best performing sector in the Russell 2000,
driven by fears of supply shortages. Utilities also performed well, helped by a
better bond market and a more defensive tone to the market. The worst performers
were the higher risk sectors reflecting concerns about the economy: technology,
healthcare, and autos and transportation.

Discount and Buybacks

The price of the shares rose by 21.7% to 263.5p over the year.  The discount to
NAV per share narrowed slightly during the year from 11.5% to 11.1% and at 5
September 2005 was 8.9%. The Company bought back 2,381,500 shares during the
year at an average discount of 12.4%.

The Board will continue to apply its policy of buying back shares at appropriate
times with a view to limiting the discount in the longer term to around 10%.

Foreign Currency Hedging Policy and Gearing Policy

It is worth reiterating the Board's policy in relation to hedging and gearing.
Although the Board has the authority to hedge out the £/$ risk for a sterling
based investor, it does not routinely do so and the portfolio is not currently
hedged.

The Company is not currently geared. The Board has the authority to gear the
Company. The Board takes the view that the asset class in which it invests is
sufficiently risky that it does not wish to add additional risk by borrowing.
The Board believes that most of the Company's shareholders are conservative long
term investors and that this policy suits their needs.

Continuation Vote

Under the Articles of Association, a continuation vote is to be proposed at the
Annual General Meeting in 2005 and every three years afterwards. Accordingly, a
vote that the Company continue as an investment trust will be taken at the
forthcoming Annual General Meeting.

The Board is of the opinion that the continuation of the Company is in the best
interests of shareholders as a whole and recommends that you vote for the
resolution as the directors intend to do in respect of their own beneficial
shareholdings.

AGM

The Annual General Meeting will be held at 12.30 pm, Tuesday 15 November 2005
and I hope that you will attend.  The meeting will be held in the offices of F&C
Management Limited at Exchange House, Primrose Street, London EC2A 2NY.


Gordon Grender    
September 2005

Balance Sheet
at 30 June                                                                     2005                   2004
                                                                             £'000s                 £'000s
Fixed assets
Listed investments                                                           70,348                 63,843
___________________________________________________________________________________________________________

Current assets
Debtors                                                                          76                    171
Cash at bank and short-term deposits                                          1,591                  1,381
___________________________________________________________________________________________________________
                                                                              1,667                  1,552

Creditors: amounts falling due within one year                                (581)                  (632)
___________________________________________________________________________________________________________

Net current assets                                                            1,086                    920
___________________________________________________________________________________________________________


___________________________________________________________________________________________________________
Net assets                                                                   71,434                 64,763
___________________________________________________________________________________________________________

Capital and Reserves
Called up equity share capital                                                6,026                  6,621
Share premium account                                                         2,468                  2,468
Non-distributable reserve                                                       841                    841
Capital redemption reserve                                                    7,326                  6,731
Special reserve                                                               5,346                 10,713

Capital reserves                                                             50,804                 38,988
Revenue reserve                                                             (1,377)                (1,599)
___________________________________________________________________________________________________________
Total shareholders' funds - equity                                           71,434                 64,763
___________________________________________________________________________________________________________


___________________________________________________________________________________________________________
Net asset value per ordinary share - pence                                   296.37                 244.53
___________________________________________________________________________________________________________


The geographical distribution of investments at 30 June 2005 was:

United States 100%.


Statement of Total Return (incorporating the Revenue Account*) for the year
ended 30 June
                                                                   2005                                   2004


                                      Revenue      Capital        Total      Revenue      Capital        Total
                                       £'000s       £'000s       £'000s       £'000s       £'000s       £'000s          
_______________________________________________________________________________________________________________
                  
Gains on investments                        -       11,955       11,955            -       12,005       12,005

Exchange losses on currency
balances                                    -         (39)         (39)            -        (148)        (148)

Income                                  1,032            -        1,032          714            -          714

Management fee                          (533)            -        (533)        (496)            -        (496)

Other expenses                          (198)          (6)        (204)        (175)          (2)        (177)
_______________________________________________________________________________________________________________


Net return before finance costs
and taxation                              301       11,910       12,211           43       11,855       11,898

Interest payable and similar
charges                                     -            -            -            -            -            -
_______________________________________________________________________________________________________________


Return on ordinary activities
before taxation                           301       11,910       12,211           43       11,855       11,898

Taxation on ordinary activities          (79)         (94)        (173)        (104)            -        (104)
_______________________________________________________________________________________________________________


Return attributable to equity 
shareholders                              222       11,816       12,038         (61)       11,855       11,794
Dividends on ordinary shares
(equity)                                    -            -            -            -            -            -
_______________________________________________________________________________________________________________


Amount transferred to/(from) reserves     222       11,816       12,038         (61)       11,855       11,794
_______________________________________________________________________________________________________________


Return per ordinary share - pence        0.88        46.74        47.62       (0.23)        44.53        44.30
_______________________________________________________________________________________________________________

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

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


Cash Flow Statement
For the year ended 30 June
                                                                              2005                        2004
                                                                            £'000s                      £'000s
_______________________________________________________________________________________________________________

Net cash inflow from operating activities                                      487                           8
Taxation paid                                                                (174)                       (104)
Net cash inflow from financial investment                                    5,392                         329
_______________________________________________________________________________________________________________
Net cash inflow before use of liquid resources and
financing                                                                    5,705                         233
Net cash outflow from financing                                            (5,570)                           -
_______________________________________________________________________________________________________________
Increase in cash                                                               135                         233
_______________________________________________________________________________________________________________


Notes

The Board recommends that no final dividend payment be made.

The above financial information comprises non-statutory accounts within the
meaning of section 240 of the Companies Act 1985. The financial information for
the year ended 30 June 2004 has been extracted from published accounts for the
year ended 30 June 2004 that have been delivered to the Registrar of Companies
and on which the report of the auditors has been unqualified.

During the year 2,381,500 shares were purchased at a total cost of £5,367,000.
Since the year end no shares have been purchased.

The Report and Accounts will be posted to shareholders in late September 2005.
Copies may be obtained, during normal business hours from the registered office
of the Company, Exchange House, Primrose Street, London EC2A  2NY.

The Annual General Meeting will be held at the registered office of the Company,
Exchange House, Primrose Street, London EC2A 2NY on 15 November 2005 at 12.30
pm.


By order of the Board

F&C Management Limited, Secretary

6 September 2005


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