Final Results

JPMorgan Smaller Cos IT PLC
10 October 2007


                       LONDON STOCK EXCHANGE ANNOUNCEMENT

                JPMORGAN SMALLER COMPANIES INVESTMENT TRUST PLC

                   PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS


The Directors of JPMorgan Smaller Companies Investment Trust plc announce the
Company's results for the year ended 31st July 2007.


CHAIRMAN'S STATEMENT


Investment Performance

Despite recent market volatility, I am pleased to report that the Company has
continued to outperform its benchmark index. Over the year to 31st July 2007 the
Company produced a total return on net assets of +32.7%, which compares
favourably with the total return of the benchmark, the FTSE Small Cap Index
(excluding investment trusts) of +18.7%. The return to shareholders was also
positive at +28.6%.

Since the year end, relative performance has remained strong with the Company
outperforming the benchmark index. As at 5th October 2007 the net asset value
per share was 659.9p, the share price 537.5p and the discount 18.6%.


Revenue and Dividends

Net revenue after taxation for the year was £1,172,000 (2006: £1,025,000) and
revenue return per share, calculated on the average number of shares in issue,
was 5.22p (2006: 4.37p). The Directors are recommending a final dividend of
5.00p per share (2006: 4.25p), costing £1,062,000 (2006: £979,000). If approved,
the dividend will be paid on 14th December 2007 to shareholders on the register
on 2nd November 2007.

Each year the level of income received varies according to the Company's
gearing, its investment stance and market conditions and, whilst it is the
Company's policy to distribute substantially all the available income each year,
shareholders should note that the Company's dividends will vary accordingly.


Investment Manager

The Company's objective is to provide shareholders with capital growth from a
portfolio of investments in UK smaller companies. The Board carried out a formal
review of the capabilities and services of the Manager during the year. This
covered the investment management, company secretarial, administrative and
marketing services provided to the Company by JPMorgan Asset Management (UK)
Limited ('JPMAM') and further included their investment performance record,
management processes, investment style and resources. We have concluded that
JPMorgan Asset Management (UK) Limited remains the most appropriate manager of
the Company's assets and that the ongoing appointment of the existing Investment
Manager is in the best interests of shareholders.

Since the year end, the Board has been advised that Mark Davids will no longer
be on the team managing the Company's portfolio.  He is remaining within
JPMorgan but will be relocating to Japan.  We will be sorry to lose Mark and
wish him all the best.  Sarah-Jane Morley has now joined the investment
management team to work alongside Georgina Brittain.


Share Buy backs

At last year's Annual General Meeting, shareholders granted the Directors
authority to repurchase the Company's shares for cancellation, such authority to
expire at the earlier of 28th May 2008 or the conclusion of the Annual General
Meeting in 2007. During the financial year the Company repurchased a total of
1,781,203 ordinary shares for cancellation, representing 7.7% of the issued
share capital at the beginning of the year. This has added approximately 6.9p
per ordinary share to the net asset value for continuing shareholders.

The Board's objective remains to use the share repurchase authority to manage
imbalances between the supply and demand of the Company's shares, thereby
reducing the volatility of the discount. To date the Board believes this
mechanism has been helpful and therefore proposes and recommends that powers to
repurchase up to 14.99% of the Company's shares for cancellation be renewed for
a further period.


Board of Directors

On 5th April 2006, Andrew Robson was appointed a Director of the Company. He has
had a successful career in the field of banking and as a finance director. Most
recently he was a director of Edinburgh UK Smaller Companies Tracker Trust PLC.
Andrew Robson has proved to be a valuable addition to the Board since his
appointment and, having been appointed to the Board during the year, I have no
hesitation in recommending his election at the forthcoming Annual General
Meeting. If appointed, he will be eligible to serve for a three year term.

At the Nomination Committee held earlier this year, the Board carried out an
evaluation of the Directors, the Chairman, the Board itself and its Committees.
The Board takes this review seriously and views it as an effective means of
evaluating the continuing efficacy of the Board. In accordance with the
Company's Articles of Association, and having served as Directors for more than
nine years, both Richard Fitzalan Howard and I offer ourselves for re-election
on an annual basis. The Board does not believe that length of service in itself
should disqualify a Director from seeking re-election and, in proposing our
re-elections, it has taken into account the ongoing requirements of the Combined
Code, including the need to refresh the Board and its Committees. The Nomination
Committee recommends to shareholders that we should therefore be re-elected.


Corporate Governance

The Board believes that the Company operates in accordance with best practice in
corporate governance. The Board has put in place procedures to monitor the
Company's compliance with the Combined Code and the AIC Code on Corporate
Governance.


Annual General Meeting

The Company's seventeenth Annual General Meeting will be held on Wednesday 28th
November 2007 at 3.30 pm at The Library, 60 Victoria Embankment, London EC4Y
0JP. In addition to the formal part of the meeting, there will be a presentation
from the Investment Managers who will answer questions on the portfolio and
performance. Shareholders who are unable to attend the AGM in person are
encouraged to use their proxy votes.


Outlook

The Board has felt for some months that traditional credit disciplines in the
financial world have become uncomfortably lax, and that the plethora of novel
and complex instruments now available to investors would at some stage cause
investors to take fright.

The correction has been severe in the credit markets, though to date the
stockmarket in the UK, though volatile and markedly weak in certain areas, has
remained encouragingly resilient.

It is too early to judge whether the strong earnings growth in the portfolio of
investments will be undermined by weaker confidence and changed credit
conditions; however, investors' awareness of risk has undoubtedly become much
more acute.

On balance though, the Board is reasonably optimistic that the current easing of
interest rates and slowly improving liquidity provided by Central Banks will
more than counterbalance increasing risk awareness, at least in the near term.
The medium to longer term outlook, with the possibility of rising inflation and
interest rates, looks likely to be more difficult.

The year has started well, ahead of the benchmark, and we have confidence in the
nimbleness of the Investment Managers and their ability to continue an excellent
record of picking good stocks in these more turbulent conditions.


Strone Macpherson
Chairman
10th October 2007



INVESTMENT MANAGERS' REPORT


Market Background

The strong upward trend in global stockmarkets continued during the last
financial year. This was powered by positive economic conditions, notably global
GDP growth, which led to strong corporate earnings growth, driving stocks
higher.

As discussed in the Interim Report, this upward trend in markets over the last
four years has not been without periodic retrenchments, most recently as
concerns over inflationary pressures in the UK and US came to the fore, and the
first hints of the US sub-prime issue appeared. These led to an increase in
volatility and a market set-back in February 2007.

However, strong global demand, continuing corporate activity and positive
corporate newsflow drove the markets upwards. This was in spite of two further
interest rate rises in the UK in May and July 2007, which took UK base rates to
5.75%, as the Monetary Policy Committee continued to focus on inflation risks,
and the doughty UK consumer continued to spend.


Portfolio

The strong performance that the portfolio demonstrated in the first half of the
financial year continued in the second half. The FTSE Small Cap (ex Investment
Trusts) Index was up 18.7% for the year to 31st July 2007, but the Company
significantly outperformed its benchmark and produced +32.7% net asset value
total return.

The key driver of this outperformance was stock selection, which contributed
9.6% of the excess above benchmark. Sector selection was also strongly positive,
and in addition gearing enhanced returns.

Over the last year two key changes have been made to the shape of the portfolio.
First, what was already a significant overweight position in the Industrials
sector has been increased further. (By overweight we mean the size of the
position relative to the benchmark weighting.)  This is comprised of large
positions in Support Services, Industrial Engineering and Construction &
Materials, and these were accountable for much of the strong performance seen in
the year. The second key change to the portfolio was the move from some 5%
overweight to 5% underweight in the Financials sector. This was brought about by
our move from large overweight to large underweight in the Real Estate
sub-sector at the beginning of 2007, as we became concerned over heady
valuations, and by a significant reduction in the portfolio's General Financials
position.

In addition to the key overweight position within Industrials, sector selection
was aided by the overweight in the Oil Equipment, Services & Distribution
sector, and the underweight in Software & Computer Services. In the former,
notable contributors included Hunting and Wellstream, a new issue which produces
pipeline products for the sub-sea oil industry; in the latter, long-term
holdings Axon and SDL continued to contribute strongly. The key detractor during
the year in terms of sector positions was Electronic & Electrical Equipment, due
to poor stock selection.

The Investment Managers' focus remains on stock-picking. In addition to those
mentioned above, notable performers included Tanfield (electric vehicle
manufacturer) and Eros International (distributor of Bollywood films), both of
which were new to the portfolio, and a number of long-term holdings such as
Chemring, Keller and Hyder Consulting.

The investment process underlying the Company, as discussed in the last Annual
Report, remains unchanged. The methodology uses a quantitative screen which
breaks down the individual stocks in the investible universe and ranks them
according to four factors: value, earnings momentum, price momentum and growth.
After fundamental research to check the data, the balance sheet and the market
environment, the portfolio is constructed around stocks which demonstrate these
tilts. This aims to ensure not only that the portfolio is constructed around our
underlying philosophy of fast-growing cheap stocks with good newsflow, but also
that the portfolio has both growth and value signatures, which academic evidence
has demonstrated to be the two long-term drivers of outperformance in the
stockmarket. This quantitative approach is the starting point for the stock
selection that is the bedrock of the portfolio; it is then overlaid by the
Investment Managers' extensive knowledge of individual companies and their
markets, and their own research efforts.


Market Outlook

Since the Company's year end, financial markets have been front page news. Too
much liquidity in the system led to the inevitable consequence of a relaxation
of lending criteria, both in the corporate sector (for example, certain lending
to private equity) and in the consumer mortgage and credit markets. The
immediate effects of the US sub-prime debacle and consequent credit freeze have
been seen in the sharp August declines in stockmarkets throughout the developed
world. Much has been written on the proximate causes of the huge volatility seen
in that month, as de-leveraging and the meeting of margin calls led to the
sell-off.

Actions taken to date by the US Federal Reserve and European Central Bank have
pumped some liquidity back into the system, but further shocks and dramatic
write-downs of debt must be expected as the fall-out continues. For equity
investors, however, the key question is the likely impact on future economic
growth.

It is too early to provide a definitive answer, but it should be remembered that
global growth is no longer powered by the US consumer, but by a strong corporate
sector and a global investment boom. This corporate sector continues to invest
for the future, and to achieve rates of return significantly above the cost of
borrowing. Thus while global growth would not be impervious to a slowing US
economy, strong demand dynamics - examples include commodities, the oil & gas
sector and the multitude of companies that feed directly and indirectly into it,
and the construction sector in the UK, Europe and the Middle East - and strong
company balance sheets and strong newsflow all suggest that the impact on future
global economic growth should not be significant, despite tighter on-going
financial conditions.

In the UK, the broader economy remains resilient. Interest rates look to be at
or near their peak at 5.75%, as evidenced by recent inflationary data showing
the CPI to be back below the target of 2%, and the threat of high wage
settlements has diminished. UK companies increased their profits by 16.2%
year-on-year, and thus are highly cash-generative at present, as can be seen by
the current levels of dividend growth and share buy-backs. On account of this,
corporate activity is expected to return, not through the medium of private
equity, but by corporates themselves utilising their strong balance sheets.

We continue to find this backdrop encouraging, while being cognisant of the fact
that the risk to the global growth outlook has increased. Very much as we said
six months ago, we expect on-going volatility and further periods of
retrenchment, but newsflow from companies, earnings growth and valuations all
remain supportive. A forward price/earnings ratio of some 13x for the smaller
companies index is an attractive price to pay for the double digit growth that
we continue to believe will be delivered. The recent volatility has provided
significant buying opportunities in individual companies and the Investment
Managers have been and will continue to take advantage of such opportunities.


Georgina Brittain and Mark Davids
Investment Managers
                    
10th October 2007


A copy of the full report will be available shortly on the JPMorgan Internet
site at www.jpmsmallercompanies.co.uk.




JPMorgan Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31st July 2007


Income Statement


                                                (Unaudited)                              (Audited)
                                           Year ended 31st July 2007              Year  ended 31st July 2006
                                      Revenue        Capital        Total      Revenue      Capital        Total
                                        £'000          £'000        £'000        £'000        £'000        £'000

Gains from investments held at
fair value through profit or
loss                                        -         35,973       35,973            -       29,718       29,718
Net foreign currency losses                 -            (2)          (2)            -            -            -
Income from investments                 2,519              -        2,519        2,034            -        2,034
Other interest receivable and
similar income                             21              -           21           23            -           23

Gross return                            2,540         35,971       38,511        2,057       29,718       31,775

Management fee                          (697)          (697)      (1,394)        (552)        (552)      (1,104)
Other administrative expenses           (351)              -        (351)        (277)            -        (277)

Net return on ordinary
activities before finance costs
and taxation                            1,492         35,274       36,766        1,228       29,166       30,394

Finance costs                           (319)          (319)        (638)        (203)        (203)        (406)

Net return on ordinary
activities before taxation              1,173         34,955       36,128        1,025       28,963       29,988

Taxation                                  (1)              -          (1)            -            -            -

Net return on ordinary
activities after taxation               1,172         34,955       36,127        1,025       28,963       29,988


Return per ordinary    share            5.22p        155.62p      160.84p        4.37p      123.54p      127.91p
(note 2)


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

No operations were acquired or discontinued in the year.

                               
The 'Total' column of this statement is the profit and loss account of the
Company and the 'Revenue' and 'Capital' columns represent supplementary
information. The 'Total' column represents all the information that is required
to be disclosed in a 'Statement of Total Recognised Gains and Losses (STRGL)'.
For this reason a STRGL has not been presented.



JPMorgan Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31st July 2007


Reconciliation of Movements in Shareholders' Funds (Unaudited)

                                                                       Capital
                                    Called up                       redemption     Capital     Revenue
                                Share capital    Share premium         reserve    reserves     reserve      Total
                                        £'000            £'000           £'000       £'000       £'000      £'000

At 31st July 2005                       5,986           18,360             680      68,649       1,078     94,753
Adjustment to opening
shareholders' funds at 1st
August 2005 to reflect the
adoption of bid prices                      -                -               -     (1,991)           -    (1,991)
Shares bought back and                  (229)                -             229     (3,546)           -    (3,546)
cancelled                               

Total return from ordinary                  -                -               -      28,963       1,025     29,988
activities                                                                            

Dividends appropriated in the
year                                        -                -               -           -       (878)      (878)
At 31st July 2006                       5,757           18,360             909      92,075       1,225    118,326

Shares bought back and
cancelled                               (445)                -             445     (9,817)           -    (9,817)
Total return from ordinary                  -                -               -      34,955       1,172     36,127
activities                                                                           

Dividends appropriated in the
year                                        -                -               -           -       (979)      (979)
At 31st July 2007                       5,312           18,360           1,354     117,213       1,418    143,657



JPMorgan Smaller Companies Investment Trust plc
Unaudited figures for the year ended 31st July 2007


BALANCE SHEET                                                           (Unaudited)            (Audited)
                                                                     31st July 2007       31st July 2006
                                                                              £'000                £'000
Fixed assets
Investments at fair value through profit or loss                            154,170              125,529
Investments in liquidity funds at fair value through profit or
loss                                                                              -                1,518
                                                                            _______              _______
Total Portfolio                                                             154,170              127,047

Current assets
Debtors                                                                         984                  676
Cash at bank and in hand                                                          -                  794
                                                                            _______              _______
                                                                                984                1,470

Creditors : amounts falling due within one year                            (11,497)             (10,191)
                                                                            _______              _______

Net current liabilities                                                    (10,513)              (8,721)
                                                                            _______              _______
Total assets less current liabilities                                       143,657              118,326

                                                                            _______              _______
Total net assets                                                            143,657              118,326
                                                                              =====                =====

Capital and reserves
Share capital                                                                 5,312                5,757
Share premium                                                                18,360               18,360
Capital redemption reserve                                                    1,354                  909
Capital reserves                                                            117,213               92,075
Revenue reserve                                                               1,418                1,225
                                                                            _______              _______
Shareholders' funds                                                         143,657              118,326
                                                                                ===                 ====
                                                                                 ==                    =

Net asset value per ordinary share (note 3)                                  676.1p               513.8p


CASH FLOW STATEMENT
                                                                        (Unaudited)            (Audited)
                                                                     31st July 2007       31st July 2006
                                                                              £'000                £'000

Net cash inflow from operating activities                                       932                  485

Net cash outflow from returns on investments and servicing of                 (586)                (347)
finance

Net cash inflow from capital expenditure and financial
investment                                                                    7,501                2,614

Dividends paid                                                                (979)                (878)

Net cash outflow from financing                                             (7,817)                (466)
                                                                            _______               ______
(Decrease)/increase in cash for the year                                      (949)                1,408
                                                                              =====                 ====




Notes to the Accounts



1. Accounting policies

The accounts are prepared in accordance with the Companies Act 1985, United
Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the
Statement of Recommended Practice 'Financial Statements of Investment Trust
Companies' issued by the AIC in December 2005.

All of the Company's operations are of a continuing nature.

The accounting policies applied to these financial statements are consistent
with those applied in the financial statements for the year ended 31st July
2006.



2. Return per ordinary share
                                                                           (Unaudited)            (Audited)
                                                                        31st July 2007       31st July 2006
                                                                                 £'000                £'000
Return per share is based on the following:
Revenue return                                                                   1,172                1,025
Capital return                                                                  34,955               28,963

Total return                                                                    36,127               29,988

Weighted average number of shares in issue                                  22,462,361           23,445,186
Revenue return per ordinary share                                                5.22p                4.37p
Capital return per ordinary share                                              155.62p              123.54p

Total return per ordinary share                                                160.84p              127.91p


3. Net asset value per ordinary share

The net asset value per ordinary share is based on the funds attributable to
ordinary shareholders and on 21,248,983 (2006: 23,030,186) ordinary shares in
issue at the year end.


4. Status of preliminary announcement

The financial information set out in this preliminary announcement does not
constitute the Company's statutory accounts for the years ended 31st July 2007
or 2006. The statutory accounts for the year ended 31st July 2007 have not been
delivered to the Registrar of Companies, nor have the auditors yet reported on
them. The statutory accounts for the year ended 31st July 2007 will be finalised
on the basis of the information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
approval of the accounts by the Board of Directors.


JPMORGAN ASSET MANAGEMENT (UK) LIMITED



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