Interim Results

Scottish Oriental Smlr Co Tst PLC
27 March 2008


                 THE SCOTTISH ORIENTAL SMALLER COMPANIES TRUST PLC

    Preliminary Results (Unaudited) for the six months to 29th February 2008

The Board of The Scottish Oriental Smaller Companies Trust PLC is pleased to
announce the results for the six months to 29th February 2008.

These results summarise the information which will be given in the forthcoming
Interim Report.

All the figures stated here are total return.

Financial Highlights


  • Net asset value per ordinary share declined by 0.1% to 344.18p.
  • This compares with a sterling adjusted rise of 4.7% in the benchmark
    Index - the MSCI AC Asia (ex Japan) Index.
  • The Nomura Asia Small Cap Index in sterling terms decreased 0.6% and the
    FTSE All-Share Index fell by 6.5% over the same period.

Income Statement for the six months to 29th February 2008

                              Six months to 29th February    Six months to 28th February
                                         2008                           2007
                                      (unaudited)                    (unaudited)
                             Revenue    Capital    Total*    Revenue   Capital     Total*
                              £'000      £'000      £'000     £'000     £'000      £'000

Gains on investments              -        920        920         -    15,178     15,178
Income from investments         786          -        786     1,164         -      1,164
Other income                    136          -        136        88         -         88
Investment management fee      (276)         -       (276)     (214)        -       (214)
Currency losses                   -        (15)       (15)        -       (82)       (82)
Other administrative           (168)         -       (168)     (155)        -       (155)
expenses

Net return before finance
costs and taxation              478        905       1383       883    15,096     15,979
Finance costs of borrowing        -          -          -        (1)        -         (1)

Return on ordinary              478        905       1383       882    15,096     15,978
activities before taxation
Tax on ordinary activities     (142)         -       (142)     (264)        -       (264)

Return attributable to          336        905       1241       618    15,096     15,714
equity shareholders

Weighted average number             30,213,650                     26,850,990
of shares

Return per ordinary share #   1.11p      3.00p      4.11p     2.30p    56.22p     58.52p


* The total column of this statement is the Profit and Loss Account of the
Trust.

# Based on the weighted average number of shares during the period.

All income and capital items derive from continuing operations.



Income Statement for the six months to 29th February 2008 (Unaudited)
(Continued)

                                   Year ended 31st August
                                            2007
                                          (audited)
                                Revenue    Capital    Total*
                                 £'000      £'000      £'000

Gains on investments                 -     26,257     26,257
Income from investments          3,187          -      3,187
Other income                       192          -        192
Investment management fee         (481)         -       (481)
Currency losses                      -       (226)      (226)
Other administrative expenses     (308)         -       (308)

Net return before finance
costs and taxation               2,590     26,031     28,621
Finance costs of borrowing          (1)         -         (1)

Return on ordinary activities
before taxation                  2,589     26,031     28,620
Tax on ordinary activities        (777)         -       (777)

Return attributable to equity    1,812     26,031     27,843
shareholders

Weighted average number                28,546,139
of shares
Return per ordinary share #      6.35p     91.19p     97.54p


* The total column of this statement is the Profit and Loss Account of the
Trust.

# Based on the weighted average number of shares during the period.

All income and capital items derive from continuing operations.


SUMMARY BALANCE SHEET                      At 29th          At 28th         At 31st
                                        February 2008    February 2007    August 2007
                                         (unaudited)      (unaudited)      (audited)
                                            £'000            £'000           £'000

Total equities                            100,398           84,577          95,492
Net current assets                          3,615            7,455           8,759
Deferred Tax                                  (24)             (24)           (113)
Equity shareholders' funds                103,989           92,008         104,138

Net asset value per share                 344.18p          304.52p         344.67p


Cash Flow Statement for the six months to 29th February 2008

                                  Six months to        Six months to         Year to
                               29th February 2008   28th February 2007   31st August 2007

                                   (uaudited)           (unaudited)         (audited)
                                £'000      £'000      £'000     £'000     £'000    £'000
OPERATING ACTIVITIES:

Dividends received from                    1,051                1,320              3,033
investments
Interest received                            138                   87                195
                                           1,189                1,407              3,228
Investment management fee        (275)                 (198)               (451)
Secretarial fee                   (24)                  (23)                (47)
Directors' fees                   (43)                  (42)                (81)
Other expenses                    (33)                  (88)                (194)

                                            (375)                (351)              (773)
Net cash inflow from                         814                1,056              2,455
operating activities
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest paid on borrowings                    -                   (1)                (1)
TAXATION:
Total tax paid                              (383)                 (36)              (837)
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT:
Purchases of investments      (21,037)              (12,623)            (33,041)
Sales of investments           18,793                12,066              30,666
Capital corporation tax             -                     2                   2
Currency losses                   (15)                  (82)               (226)

Net cash outflow from capital
expenditure and financial
investment                                (2,259)                (637)            (2,599)
EQUITY DIVIDEND PAID                      (1,390)                (944)              (944)
Financing:
Subscription of new capital:
Ordinary shares                                -                3,978              3,978

(Decrease)/Increase in cash               (3,218)               3,416              2,052



INTERIM MANAGEMENT REPORT

Investment Performance

In the six months ending 29th February 2008, Scottish Oriental's net asset value
per share declined by 0.1 per cent to 344.18p. This compares with a
sterling-adjusted increase of 4.7 per cent in the MSCI AC Asia Free (ex Japan)
Index and a decline of 0.6 per cent in the Nomura Asia Small Cap Index. The
Trust's share price fell by 7.0 per cent over the period and the discount to net
asset value was 15.2 per cent on 29th February 2008. The FTSE All-Share Index
fell by 6.5 per cent over the six months.

Smaller companies generally underperformed their larger counterparts over the
period, with particularly disappointing returns from Hong Kong, Malaysia, South
Korea and Thailand.

Review

There was a mixed performance from Asian equity markets over the six months
ending 29th February 2008. Substantial gains were achieved in September and
October as a result of lower US interest rates. However, tighter credit markets
combined with a higher oil price caused markets to fall in the following months
with particularly sharp declines in January. Indonesia was the best performing
market as it benefited from its large exposure to commodities, particularly coal
and palm oil. India was also strong, supported by positive economic data and
demand from foreign investors.

Singapore and South Korea were the only markets to fall over the period, as
these countries' exports are particularly exposed to a slowdown in the global
economy. China related shares were also weak owing to tightening of monetary
policy as well as expectations of a slowdown in external demand.

Outlook

Although US interest rates are expected to fall further, central banks in Asia
are likely to be more cautious given the recent pickup in inflation. This is
mainly due to the sharp rise in the prices of soft commodities, particularly
wheat and palm oil. Demand for food has increased owing to higher consumption in
the developing world whereas supply has been constrained recently by bad weather
and over the longer term by a reduction in agricultural land. Price controls or
subsidised prices for key foods are common, particularly in developing Asia.
This has reduced the impact on individual consumption but at the expense of
governments' fiscal positions. Stronger wage inflation is expected if higher
food prices persist.

A number of Asian countries have allowed their currencies to appreciate against
the US dollar, thereby reducing the impact of higher commodity prices. However,
the appreciation has been modest owing to the risks to the export sectors
particularly given that US domestic consumption is slowing.

Scottish Oriental will continue to focus on well managed, soundly financed
companies that are able to deliver sustainable earnings growth over the longer
term.

Dividend

A dividend of 4.6p per share net (equivalent to 5.1p gross) was paid on 25th
January 2008 for the year ending 31st August 2007. It is too early to make a
forecast of the 2008 distribution.

Principal Risks and Uncertainties

Given the nature of its investment activities, the principal risks facing
Scottish Oriental relate to market price, foreign currency and interest rate
risks. As Scottish Oriental's assets mainly comprise readily realisable
securities, other than in exceptional circumstances there should be no
significant liquidity risk. Scottish Oriental's investment portfolio is exposed
to market price fluctuations and currency fluctuations which are monitored by
the Investment Manager. Scottish Oriental does not invest in either fixed or
floating rate securities and interest rate risk exposure is restricted to
interest receivable on bank deposits or payable on bank overdraft positions
which will be affected by fluctuations in interest rates.

Directors' Responsibility Statement

The Directors are responsible for preparing the Interim Report in accordance
with applicable law and regulations. The Directors confirm that, to the best of
their knowledge:

(a)                 the Interim Management Report includes a fair review of the
general conditions required by 4.2.7R and 4.2.8R of the Financial Services
Authority's Disclosure and Transparency Rules; and

(b)                 the Interim Report, for the six months to 29th February
2008, comprises an Interim Management Report, the Directors' Responsibility
Statement and a condensed set of financial statements and has not been audited
or reviewed by auditors pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Statements.

The Interim Report was approved by the Board of Directors on 27th March 2008 and
signed on its behalf by:

James Ferguson
Chairman
27 March 2008

+----------------------------------------------------------------------------+
|Performance for the six months to 29th February 2008 (Unaudited)            |
+-----------------------+----------+-----------------------------+---------+-+
|                       |          |                             |         | |
+-----------------------+----------+-----------------------------+---------+-+
|Net Asset Value        |     -0.1%|MSCI AC Asia (ex Japan) Index|    +4.7%| |
|                       |          |(£)                          |         | |
+-----------------------+----------+-----------------------------+---------+-+
|Share Price            |     -7.0%|Nomura Asia Small Cap Index  |    -0.6%| |
|                       |          |(£)                          |         | |
+-----------------------+----------+-----------------------------+---------+-+
|                       |          |FTSE All-Share Index         |    -6.5%| |
+-----------------------+----------+-----------------------------+---------+-+
|                       |          |                             |         | |
+-----------------------+----------+-----------------------------+---------+-+

+----------------------------------------------------------------------------+
|                                                                            |
|                                                                            |
|                                                                            |
|Summary Data at 29th February 2008 (Unaudited)                              |
+----------------------------+----------+--------------------------+---------+
|                            |          |                          |         |
+----------------------------+----------+--------------------------+---------+
|Shares in issue             |30,213,650|Shareholders' Funds       | £103.99m|
+----------------------------+----------+--------------------------+---------+
|                            |          |                          |         |
+----------------------------+----------+--------------------------+---------+
|Net Asset Value per share   |   344.18p|Market Capitalisation     |  £88.22m|
+----------------------------+----------+--------------------------+---------+
|                            |          |                          |         |
+----------------------------+----------+--------------------------+---------+
|Share Price                 |   292.00p|Share Price Discount to   |         |
|                            |          |Net Asset Value           |    15.2%|
|                            |          |                          |         |
+----------------------------+----------+--------------------------+---------+


All of the above figures are total return.


Benchmark and Comparative Indices

From inception in March 1995 until October 1999, the Trust adopted the Morgan
Stanley Capital International AC Asia (ex Japan) Index ('MSCI') as its
benchmark.  No suitable regional smaller companies index was available at that
time.

In October 1999 the Directors agreed to the replacement of the MSCI with the SG
Asian (ex Japan) Smaller Companies Index, following its reconstitution to cover
previously excluded countries.  Unfortunately, this Index ceased to be available
from the end of 2002.

The Directors consequently reverted to the MSCI as the Trust's benchmark. This
Index, being dominated by larger companies, is far from being an ideal
measurement of performance. It has, however, the dual merit of being the most
widely recognised regional index and of pre-dating the inception of the Trust.

For comparison purposes, the Trust is also displaying The Nomura Small Cap Index
('NASCI') which covers the relevant markets with the exception of Pakistan and
Sri Lanka. The NASCI is made up of companies with a market capitalisation of
between US$100m and US$1,000m,  This range does not match exactly that of the
Trust, which has no lower limit and which is generally restricted to companies
with a market capitalisation of under US$1,000m. Unfortunately this Index dates
only from the end of 1996, and thus cannot provide a complete historical
performance comparison with the Trust.  Nevertheless, the NASCI gives a useful
indication of the performance of smaller companies in Asia over recent years.

As most investors in the Trust are based in the United Kingdom, the Directors
consider that it is also relevant to compare the Trust's performance to that of
the FTSE All-Share Index.

Notes

1. The position as at 31st August 2007 included within the Balance Sheet is an
abridged version of that contained in the full accounts for that year, which
received an unqualified audit report and which have been filed with the
Registrar of Companies. This interim report has been prepared under the same
accounting policies adopted for the year to 31st August 2007.

2. Dividends

                                    At                  At                  At
                         29th February       28th February         31st August
                                  2008                2007                2007
                                  £000                £000                £000

Amounts recognised as
distributions in the
period:
Dividend for the year
ending 31st August 2007
of 4.60p (2006 - 3.60p)
paid 25th January 2008            1,390                 944                 944


3. The terms of the interim report and the preliminary announcement were
approved by the Board on 27th March 2008.

4. Copies of the Interim Report will be posted to shareholders shortly and
further copies may be obtained from the registered office at 23 St Andrew Square
Edinburgh EH2 1BB

Enquiries: Bridgette Roche/Gillian Davies, First State Investments, Edinburgh
Ph:[phone]


27th March 2008



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