Interim Results

North Atlantic Smlr Co Inv Tst PLC
24 September 2001


NORTH ATLANTIC SMALLER COMPANIES INVESTMENT TRUST PLC

PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS

The Directors announce the unaudited statement of consolidated results for the
six months ended 31 July 2001 as follows:

Interim results

During the period under review, the fully diluted net asset value fell by 5.7%
as compared with a fall in the Standard & Poors Sterling Adjusted Index of
9.1%.  This decline can be largely attributed to the extreme weakness in the
Company's modest exposure to the technology, media and telecom sectors, with
the balance of the portfolio performing considerably better than the market.

Performance of the individual sectors of the portfolio can be summarised as
follows:

United Kingdom & European Equities

This area performed well with good performance coming from European Motors,
Premier Asset Management, Hardy Underwriting and Wellington all of which were
sold during the period at good profits.   Alexander Russell was also taken
over at a substantial premium to cost.  However, the performance of PNC
Telecom was particularly disappointing.

United States Equities

Gentek, Worldport, Change Technologies and Lesco were disappointing but this
was to some extent offset by the good performance of our substantial
investments in the banking industry, all of which rose significantly during
the period.

Derivatives

The UK portfolio performed very well and there is currently no exposure to the
UK market.  In the United States performance was affected by losses in
Standard Micro and Primedia.  Exposure to the United States equity markets has
been substantially reduced and now accounts for less then £7 million in a
worst-case scenario.

Bonds

Our recent activity was initiated in April with investments totalling around £
15 million.   As at 31 August 2001 these investments had achieved a modest
profit.

Unquoted

With market conditions uncertain the unquoted portfolio was reappraised.  LKQ
was written down to cost despite an improved operating performance.
Enterworks was written off and Messagelink was substantially written down.
Against this, Waterbury and Gateway were valued upwards to reflect good
operating results.  Finally, Sterling Construction was sold at a good profit
and at an uplift to the January valuation.

Conclusion

Since the end of the period financial markets have experienced considerable
weakness due to declining economic activity combined with falling corporate
profits.  This situation has obviously been exacerbated by the tragedy that
befell the United States with the terrorist attacks in New York City and
Washington DC.

Whilst not immune from short term declines in the stock market, the Company's
portfolio is heavily concentrated in event-driven situations.  Furthermore the
Company still maintains a substantial investment in US Treasury Bills.   A
number of our investments may be subject to corporate activity over the next
few months.  We, therefore, believe that we are well positioned to prosper
despite the current adverse environment.

Finally we are saddened to report that our longest serving non-executive
director, Douglas Nation, passed away on 2 September 2001.   His counsel and
fellowship will be missed by all of us on the Board.

C H B Mills
Chief Executive
24 September 2001


CONSOLIDATED STATEMENT OF TOTAL RETURN
(*incorporating the revenue account) for the six months ended 31 July
                                   Six months to            Six months to
                            31 July 2001 (Unaudited)    31 July 2000 (Unaudited)
                        Revenue   Capital      Total   Revenue  Capital Total
                          £'000     £'000      £'000     £'000   £'000  £'000

Net (losses)/gains on         -    (8,652)    (8,652)        -  29,512  29,512
investments
Income                    2,377         -      2,377     2,071       -  2,071
Investment management    (1,054)        -     (1,054)     (675)      -   (675)
fee
Performance fee (Note      (794)        -       (794)     (724)      -   (724)
3)
Other expenses             (655)        -       (655)     (454)      -   (454)

Net return before                                                            .
finance costs and          (126)   (8,652)    (8,778)      218  29,512  29,730
taxation

Interest payable and       (964)        -       (964)     (446)      -   (446)
similar charges

Net return on ordinary
activities
before taxation          (1,090)   (8,652)    (9,742)     (228) 29,512  29,284

Taxation on ordinary        (51)        -        (51)      (36)      -    (36)
activities

Net return on ordinary
activities
after taxation for the   (1,141)  (8,652)     (9,793)     (264) 29,512  29,248
period

Dividend in respect of        -         -          -         -       -      -
equity shares

Transfer (from)/to       (1,141)  (8,652)     (9,793)     (264) 29,512  29,248
reserves

Return per Ordinary       pence     pence      pence     pence   pence  pence
share:
Basic                    (10.16)   (77.07)    (87.23)   (2.45)  273.79  271.34
Diluted                     £          £         £         £   141.28  140.25


* The revenue column of this statement is the consolidated revenue account of
the Group.

£  In accordance with Financial Reporting Standard No. 14: Earnings per Share,
returns which are not dilutive have not been shown.

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


SUMMARISED  CONSOLIDATED BALANCE SHEET

                                         31 July 2001              31 July 2000
                                          (Unaudited)               (Unaudited)
                                               £'000                     £'000

Fixed asset investments                      164,275                   152,996

Net current assets                            19,695                    10,643

Total assets less current liabilities        183,970                   163,639

Creditors: amounts falling due after
more than one year
Bank loans                                    25,260                     9,338
Debenture loan - Convertible Unsecured
Loan Stock 2013                                  444                       486

                                             158,266                   153,815

Capital and reserves
Called up share capital                          581                       539
Share premium account                            629                       629
Capital reserves                             157,582                   152,507
Revenue reserve                                 (526)                      130

Equity shareholders' funds                   158,266                   153,805
Minority interests                                 -                        10

                                             158,266                   153,815


Net asset value per Ordinary share:            pence                     pence
Basic                                          1,363                     1,427
Fully diluted                                    755                       735

CONSOLIDATED STATEMENT OF CASHFLOWS
for the six months                 Six months to                Six months to
ended 31 July                       31 July 2001                 31 July 2000   
                                      (Unaudited)                  (Unaudited)
                                           £'000                        £'000

Net cash (outflow)/                          (26)                          34
inflow from operating
activities

Net cash outflow from                       (916)                        (377)
servicing of finance

Taxation (paid)/                              (4)                           1
recovered in the period

Investing activities
Purchases of                            (114,897)                     (68,648)
investments
Sales of investments
(including option                        128,611                       77,451
premiums)

Net cash inflow from                      13,714                        8,803
investing activities

Net cash inflow before                    12,768                        8,461
financing

Financing
Net increase in fixed                          -                        1,199
term borrowings


Net cash inflow from                           -                        1,199
financing
                                                                      

Increase in cash                          12,768                        9,660

Notes:

The above results for the period to 31 July 2001 are unaudited.

The unaudited accounts for the six months ended 31 July 2001 will be finalised
on the basis of the financial information presented by the Directors in this
preliminary announcement, and will be posted to shareholders and those
individuals on the Company's mailing list as soon as practicable after
printing and will also be available on request from the Company Secretary, J O
Hambro Capital Management Limited, at Ground Floor, Ryder Court, 14 Ryder
Street, London SW1Y 6QB.

 1. Basis of preparation

The figures for the half year to 31 July 2001 have been prepared on a basis
consistent with the accounting policies adopted in the financial statements
for the year ended 31 January 2001.

 2. Return per share

The calculation of the basic revenue return per Ordinary share for the six
months ended 31 July 2001 is based on the net deficit after taxation of £
1,141,000 (six months to 31 July 2000: net deficit of £264,000) and 11,225,903
(six months to 31 July 2000: 10,779,182) shares being the number of Ordinary
shares in issue throughout the period. The calculation of the basic capital
return per Ordinary share for the six months ended 31 July 2001 is based on
the net capital loss of £8,652,000 (six months to 31 July 2000: net capital
gain of £29,512,000) and 11,225,903 (six months to 31 July 2000: 10,779,182)
shares being the number of Ordinary shares in issue throughout the period.

The diluted revenue and capital returns per Ordinary share for the six months
ended 31 July are not shown as the loan stock units and options are not
dilutive for this period. This treatment is in accordance with Financial
Reporting Standard No. 14: Earnings per Share. The diluted returns per
Ordinary share for the comparative period are based on the returns as above
plus interest saved on loan stock and on 20,888,626 shares for the six months
to 31 July 2000. This includes 387,274 shares for the six months to 31 July
2000, being the excess of the total number of potential shares on option
conversion over the number that could be issued at fair value as calculated in
accordance with Financial Reporting Standard No. 14: Earnings per Share.



3.    Performance fees

As set out in the Annual Report, a performance fee, payable to Growth
Financial Services Limited in respect of Mr C H B Mills, is calculated
annually to 31 March. This fee is only payable if the investment portfolio
outperforms the sterling-adjusted S & P Composite Index, and is limited to a
maximum payment of 0.5% of shareholders' funds. A performance fee of £794,000
plus VAT became payable in respect of the period to 31 March 2001 and has been
included as a revenue expense in these accounts (31 March 2000: £724,000 plus
VAT).

 4. Distribution of fixed assets


                                      Six months to               Six months to
                                       31 July 2001                31 July 2000
                                       (Unaudited)                  (Unaudited)
                                             £'000                       £'000
           Listed at market
           value:
           Overseas                          46,288                     30,030
           United Kingdom                    42,184                     50,564
           Listed at Director's              10,044                      9,721
           valuation
           Total listed                      98,516                     90,315
           investments

           Unlisted at market                23,924                     12,045
           value
           Unlisted at                       41,835                     50,636
           Director's valuation

           Total fixed asset                164,275                    152,996
           investments

 5. Consolidated net asset value per Ordinary Share

The fully diluted net assets value per Ordinary Share is based on net assets,
including current period revenue, of £161,640,000 (31 July 2000: £157,231,000)
and has been calculated on the basis that all of the 900,000 outstanding
management options (31 July 2000: 900,000) were exercised at the prevailing
exercise prices and full conversion of all of the 2013 Loan Stock outstanding
at the period end resulting in a total issued share capital of 21,401,352 (31
July 2000: 21,401,352) Ordinary shares.

 6. Financial information

The financial information shown in this interim report does not constitute
full statutory accounts as defined in Section 240 of the Companies Act 1985.
The financial information for the six months ended 31 July 2001 and 31 July
2000 has not been audited.