Final Results

JPMorgan Fleming Smaller Cos IT PLC
03 October 2003


            JPMorgan Fleming Smaller Companies Investment Trust plc
                          Stock Exchange Announcement


3rd October 2003


The Board of JPMorgan Fleming Smaller Companies Investment Trust plc are pleased
to announce the unaudited results of the Company for the year ended 31st July
2003.   Commenting on the results the Chairman has made the following statement.

Year Under Review

Against a volatile economic and political background, your Company has produced
a positive total return on net assets of 21.6%, and a strong performance against
the total return of the FTSE Small Cap Index ex Investment Trusts of 14.2%.

This outperformance is due in the main to stock selection, helped, in the last
few months of the Company's financial year, by gearing. The sector weightings in
the portfolio have been positioned gradually throughout the year for cyclical
recovery, most notably in the move from under to over-weight in cyclical
services (mainly retail, media and transport), and conversely the move from over
to under-weight in non-cyclical consumer goods (a reduction in the food
producers and pharmaceuticals sectors). The weighting in financials has also
been significantly increased, as has non-cyclical services (telecommunications
stocks) since the start of 2003.

The rapid recovery enjoyed by the smaller company sector in the last quarter of
the Company's financial year has continued into the new financial year. Since
the year-end, performance has remained strong with the investment managers
continuing to outperform the benchmark index by 0.9% over the one-month period
to 31st August 2003.  The share price at the date of this report is 205.5p and
the net asset value per share at 264.2p.

Gearing

During the year the Board reviewed the Company's gearing facilities and replaced
the £17.5m of facilities that were in place on 31st July 2002 with two new
loans, which provide £12.5m of facilities.  The reduction in available
facilities better reflects the level of gearing which the Board believes could
be used by the investment manager. Details of these loans will be given in the
Annual Report & Accounts that are due to be published shortly but they incur
floating rates of interest and could, if the Directors so wished, be cancelled
in part or whole with no penalty costs.

The Board continues to restrict the maximum gearing that the Investment Manager
can use to the extent that if gearing is greater than 15% then the investment
manager is restricted from making net purchases, and if gearing is above 20%
then net sales must be made to reduce the gearing to less than 20%.  At the
year-end the Company was 14% geared, and at the date of this report 13%.



Revenue and Dividends

With earnings per share for the year at 2.85p, the Directors are recommending a
final dividend of 2.85p per share (2002: 3.00p), a reduction of 5.0% which, if
approved by shareholders, will be payable on 15th December 2003 to shareholders
on the register at the close of business on 31st October 2003.

Governance and Retirement of a Director

In response both to corporate excesses, and difficulties in the investment trust
split capital sector, the past year has seen a plethora of publications and
announcements on changes in corporate governance including the FSA's and others'
reports. The Board has discussed the implications of these now that the relevant
parties have stated their positions and considers that it has complied with the
principles of the Association of Investment Trust Companies code of corporate
governance.  The Board has adopted a policy on the length of Directors' service
whereby after 9 years Directors should submit themselves for re-election on an
annual basis.  The adoption of this policy requires a change in the Company's
Articles of Association and this will be proposed at the forthcoming Annual
General Meeting.

Derek Pretty, who has been an immensely valued member of the Board since the
Company's formation in 1990, has agreed not to stand for re-election as a
Director at the forthcoming Annual General Meeting and is therefore stepping
down with immediate effect.

The Board has noted the FSA's changes to the Listing Rules and announces that it
is the Company's policy to invest no more than 15% of its gross assets in other
listed investment companies (including investment trusts).  Accordingly the
Company's shares continue to remain an eligible investment for as many buyers of
investment trust shares as possible.

Investment Philosophy

The investment philosophy employed by the investment managers has remained
unchanged over the whole period. The investment process is one of bottom up
stock selection, combined with disciplined portfolio construction and risk
controls. The investment managers look for securities that exhibit a combination
of factors that are proven to outperform over time. Examples of these factors
include value, high earnings growth rates, and stocks where earnings
expectations are being upgraded. The investment managers validate that these
factors exist for each stock through their own research, and that the companies
they invest in are financially sound. Tight risk controls are maintained, and
the final portfolio is diversified, with no single security or sector being
allowed to rise to too great a proportion of the portfolio. An effect of this is
that while less risk is represented by individual stocks, more is embodied by
the style factors such as value, and earnings momentum. The average number of
stocks in the portfolio over the period has been approximately 130.

Authority to Repurchase or Issue the Company's Shares

At last year's Annual General Meeting shareholders gave the Directors authority
to repurchase the Company's shares for cancellation. During the year 1.25m
shares were repurchased at an average discount of 26% and at an average price of
1.36p.  The total cost of these purchases was £1.7m. This reduced the issued
share capital by approximately 5% and had the effect of enhancing the net asset
value of the remaining shares by 1.1%.

The Board will continue to use this authority as and when appropriate, and is
seeking approval from shareholders to renew the facility at the forthcoming
Annual General Meeting.

At the Annual General Meeting of the Company in 1998 shareholders granted
Directors the authority to issue shares for cash should the shares trade at a
premium to net asset value. This authority lasts until 16th November 2003.
Although no such shares have been issued under this authority since it was
granted the Board believes that it would be wise to renew the authority so that
it could be used if circumstances changed. The proposed authority would, as in
the initial case, enable 5% of the issued share capital to be issued in new
shares. As such issues would only be made at prices which are at a premium to
the net asset value, this would result in an enhancement of the Company's net
asset value per share, and would be, therefore, to the benefit of existing
shareholders. This authority would last until 8th December 2008. A resolution
proposing the Directors be authorised to effect such issues will be proposed at
the forthcoming Annual General Meeting.

Management Changes

In the interim report I explained that Georgina Brittain, who had been involved
in the day-to-day management of the Company's assets since 1998, had been
appointed by JPMorgan Fleming Asset Management (UK) Limited as lead investment
manager of the Company's portfolio on 13th January 2003. She is being supported
in this role by Mark Davids who has worked in the JPMFAM Smaller Companies team
for the last three years.

JPMorgan Fleming Asset Management

During the year the Board conducted a thorough review of JPMorgan Fleming Asset
Management's investment strategy and process.  This covered not only the
performance of the Manager but also their management processes, investment
style, resources and risk control mechanisms. The Board was satisfied with the
results of the review and therefore in the opinion of the Directors the
continuing appointment of the investment manager is in the best interests of
shareholders. Such a review will occur on an annual basis.

Annual General Meeting

The Annual General Meeting this year will be held at 10 Aldermanbury, London EC2
on 8th December 2003 at 12.00 noon. The format of the meeting will be similar to
those of recent years and will include an investment manager's presentation from
the representatives of the manager, Georgina Brittain and Mark Davids, as well
as an opportunity for shareholders to meet and question the Directors.

Outlook

Despite the strong recent performance within the smaller companies asset class,
the long-awaited recovery, while not assured, should provide opportunity for
further good performance due to the cyclical bias of the companies within the
smaller companies sector. While valuations have moved away from the extreme lows
seen in March they are still not excessive and a recovery in earnings should see
further progress in smaller companies' share prices. The Board believes that
your Company is well positioned to enjoy the benefits of any further market
progress. The investment process remains unchanged and the portfolio will
continue to be run in a disciplined and risk-controlled manner.

Strone Macpherson
Chairman


JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31  July 2003


Statement of Total Return

                                                Year ended 31 July 2003                      Year ended 31 July 2002
                                                              Unaudited                          Audited
                                                   Revenue      Capital       Total   Revenue    Capital       Total
                                                     £'000        £'000       £'000     £'000      £'000       £'000


Realised losses on investments                           -         (83)        (83)         -    (9,874)     (9,874)
Change in unrealised depreciation                        -        9,985       9,985         -   (10,367)    (10,367)
Other capital charges                                    -         (26)        (26)         -       (20)        (20)
Income from investments                              1,432            -       1,432     1,664          -       1,664
Other Income                                            47            -          47       157          -         157
                                                   _______     ________     _______   _______   ________     _______

Gross return/(loss)                                  1,479        9,876      11,355     1,821   (20,261)    (18,440)
Management fee                                       (265)        (265)       (530)     (386)      (386)       (772)
Other administrative expenses                        (280)            -       (280)     (228)          -       (228)
Interest payable                                     (186)        (186)       (372)     (359)      (359)       (718)
                                                   _______      _______     _______   _______    _______     _______

Net return/(loss) before taxation                      748        9,425      10,173       848   (21,006)    (20,158)
Taxation                                               (5)            5           -      (21)         21           -
                                                   _______      _______     _______   _______    _______     _______

Total return/(loss) attributable to ordinary           743        9,430      10,173       827   (20,985)    (20,158)
shareholders

Dividends payable                                    (723)            -       (723)     (800)          -       (800)
                                                   _______      _______     _______   _______    _______     _______

Transfer to/(from) reserves                             20        9,430       9,450        27   (20,985)    (20,958)
                                                   _______      _______     _______   _______    _______     _______


Return/(loss) per ordinary share                     2.85p       36.10p      38.95p     3.10p   (78.70)p    (75.60)p



JPMorgan Fleming Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31 July 2003


BALANCE SHEET                                                                     31 July          31 July
                                                                                     2003             2002
                                                                                Unaudited          Audited
                                                                                    £'000            £'000

Investments at valuation                                                           71,639           65,963


Net current liabilities                                                           (3,085)          (5,759)

Long term loan                                                                    (5,600)          (5,000)
                                                                                  _______          _______
Total net assets                                                                   62,954           55,204
                                                                                  =======          =======
                                                                                  _______          _______
Ordinary shareholder funds                                                         62,954           55,204
                                                                                  =======          =======
Net asset value per share
Ordinary shares                                                                    247.7p           207.0p

CASH FLOW STATEMENT
                                                                            Year ended 31    Year ended 31
                                                                                     July             July
                                                                                     2003             2002
                                                                                Unaudited          Audited
                                                                                    £'000            £'000

Net cash inflow  from operating activities                                            575              719

Net cash outflow from servicing of finance                                          (332)            (780)

Net cash inflow from capital expenditure and financial investment                   3,968            6,037

Dividends paid                                                                      (799)            (613)

Net cash outflow from financing                                                   (6,006)          (5,000)
                                                                                  _______           ______
(Decrease)/Increase in cash for the period                                        (2,594)              363
                                                                                  =======          =======


The above financial information does not constitute statutory accounts for the
years ended 31 July 2003 or 2002.  The financial information for the year ended
31 July 2002 is derived from the statutory accounts for that year that have been
delivered to the Registrars of Companies.  The auditors reported on those
accounts; their report was unqualified and did not contain a statement under
s237(2) or (3) Companies 1985.  The statutory accounts for the year ended 31
July 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.



J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED
3rd October 2003



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