Interim Results

ABERFORTH SMALLER COMPANIES TRUST PLC
13 July 1999

                             INTERIM RESULTS
                                    
                   For the Six Months to 30 June 1999

FEATURES

Total  return  for Aberforth Smaller Companies Trust plc ('ASCoT')  at
41.4% compares favourably with 30.3% for the small companies benchmark
index.

Total  return for small companies at 30.3% significantly  better  than
that for large companies at 11.7%.

Interim dividend increased by 3.6%.

Gearing of 18.7% at 30 June 1999.


ASCoT invests only in small UK quoted companies.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

RESULTS REVIEW

For  the six months to 30 June 1999, ASCoT achieved a total return of 41.4%
which  compares  favourably with a total return of  30.3%  from  the  Hoare
Govett Smaller Companies Index (excluding investment trusts).  The recently
created  FTSE  All-Small  Index (excluding investment  trusts)  produced  a
similar  return to that of the Hoare Govett Index at 31.1%.   Both  indices
significantly  outperformed  the FTSE All-Share  Index,  representative  of
large companies, whose total return for the period was 11.7%.

Your  Board  is  pleased  to announce an increase in  this  year's  interim
dividend to 2.85p per Ordinary Share, up from 2.75p last year, representing
an  increase  of 3.6%.  This interim dividend will be paid on  3  September
1999 to holders of Ordinary Shares on the register on 23 July 1999.

During   the  six  month  period,  your  Board  has  continued  to  enhance
Shareholder value by buying-in Warrants for cancellation.  Some 1.1 million
have  been  bought during the period at prices which have enhanced  ASCoT's
fully  diluted asset value by approximately 0.2%.  There remain 3.8 million
Warrants  outstanding.   In addition, at the Annual  General  Meeting  (and
associated  Extraordinary General Meeting) held in  February,  Shareholders
and Warrantholders passed resolutions enabling ASCoT to buy-in up to 14.99%
of  its Ordinary Shares.  None have yet been bought-in, however your  Board
will  not  hesitate  to do so should we believe it to be  in  Shareholders'
interests as described in the 1998 Annual Report.

In  November  1998,  your Managers started to borrow funds  to  gear  ASCoT
beyond that required simply to mitigate Warrant dilution and, by the end of
1998, ASCoT's gearing ratio had reached 14.6% utilising some £22 million of
borrowed funds.  This gearing ratio has been at least maintained throughout
the  six  month  period and at 30 June 1999 was 18.7%  utilising  some  £47
million  of borrowed funds.  This has added to ASCoT's performance  in  the
period  and  your  Managers estimate that the impact has  been  to  enhance
performance  by approximately 6% points over what it would have  been over
the period in the absence of gearing.

In  summarising ASCoT's performance for the six month period it is  evident
that,  even  without the enhancements to performance provided by  buying-in
Warrants  and from the level of gearing employed, ASCoT has added  some  5%
points of value against its benchmark index.

INVESTMENT PERFORMANCE

As  noted, small companies have significantly outperformed large companies,
in  stockmarket terms, so far in 1999.  Your Managers believe this reflects
a number of considerations.

First,  expectations  for economic growth have been increased  and  it  now
looks  as  though  the  UK  economy will have flirted  with  recession  but
ultimately avoided it, a process assisted by the 125 basis point  reduction
in base rates during 1999.  Small companies, ingeneral, are more sensitive
to  the  domestic  economy and therefore it is entirely logical  that  they
should benefit from the expectation of improving economic conditions.

Secondly, the shares of small companies were extremely inexpensive  at  the
turn  of  the  year.  Data available to your Managers showed  that  at  the
beginning of 1999 small companies were selling on a trailing price-earnings
ratio of 10.4x and a net dividend yield of 3.55%, respectively representing
a discount of 46% and a premium of 42% to the FTSE All-Share Index.  As the
likelihood of recession has receded and the expected pressure on  corporate
profits   reduced,   the  prevailing  levels  of  valuation   have   become
increasingly compelling.

Thirdly, at a time of increasing investor interest, the availablepool  of
small  company shares has continued to shrink. Take-over activity, much  of
it  cash  financed,  which has been a feature of the last  two  years,  has
continued  unabated  and companies have continued to repurchase  their  own
shares.

Not  only  then  have small companies outperformed large companies  in  the
period  but  ASCoT  has  also  outperformed its  small  company  investment
benchmark.   The  key  factors which have driven this  outperformance  were
investment  style  and  corporate activity, considerations  which  are  not
readily separable.

Investment Style

Your  Managers have, in previous reports, drawn attention to the fact  that
the  stockmarket environment which prevailed between mid 1996 and mid  1998
was  more  favourable  to a growth style rather than  the  value  investing
discipline  which  they employ.  Since then, however, the  environment  has
become  relatively more helpful for a value investor and, in 1999  so  far,
this has been for a number of reasons.  Expectations for the global economy
have  recovered  since the fourth quarter of last year and  that  has  been
accompanied  by  an  upward  movement in some  commodity  prices  therefore
banishing  the  spectre of deflation.  Domestically, base rates  have  been
reduced,  consumer  optimism has recovered and  economic  growth  looks  as
though  it  may  recommence  in the second  half  of  1999.   Against  this
background investors have recognised that profit growth may be less elusive
than  in the recent past, encouraging them to look more favourably  on  the
more  cyclical areas ofthe economy.  Further, although short term interest
rates  have  fallen,  long term interest rates have risen  consistent  with
rising  expectations for growth and inflation.    This  flattening  of  the
yield  curve impinges unfavourably on the valuation of growth companies  as
it encourages the use of a higher discount rate to future profits therefore
reversing the favourable trend of the previous two years.

Corporate Activity

Your  Managers' value investing style seeks to isolate shares in  companies
with  favourable  financial characteristics and  strong  market  positions,
selling  on  relative valuations which are viewed as attractive.   In  many
ways  these  are the same features which attract a corporate buyer.   At  a
time,  therefore,  when value has been compelling, corporate activity  has
been at high levels and has assisted the relative performance of ASCoT with
approximately  11%  of  its assets (or 13 companies)  benefiting  from  bid
activity during the six month period.

INVESTMENT OUTLOOK

The investment environment has demonstrated a significant improvement since
the problems of the second half of last year.  Global recovery looks to  be
underway, although itremains of concern that much of the economic momentum
is  being  provided  by  the USA which continues to  grow  at  a  seemingly
unsustainable  rate,  increasing the possibility  of  the  Federal  Reserve
further tightening monetary policy.

Surveys  indicate  that recovery in the UK should become  apparent  in  the
second  half  of 1999 although despite the significant reduction  in  short
term interest rates, Sterling remains strong against the Euro.   It  would
appear that this may persist until there is evidence of improved levels  of
economic activity within Continental Europe.

Against  this  background, currency considerations aside, small  UK  quoted
companies appear to be relatively well placed for the following reasons.

-    As  a  consequence  of  its sectoral composition,  the  small  company
     universe  is  more  sensitive to changes  in  the  level  of  economic
     activity, at a time when these expectations are rising.

-    Industry  consolidation remains a powerful global trend and  therefore
     take-over  activity  is  likely to continue.   However,  the  absolute
     levels   may   reduce  somewhat  as  corporate  buyers  find   greater
     competition  from stockmarket investors.  Further, on a  shorter  term
     note, it is anticipated that activity may decline towards the calendar
     year end given Y2K or Millennium 'bug' concerns.

-    Relative value remains attractive despite the recent outperformance by
     small  companies.  At 30 June 1999 small companies were selling  on  a
     trailing  price-earnings ratio of 14.2x and a netdividend  yield  of
     2.76%,  respectively representing a discount of 32% and a  premium  of
     22%   to   the  FTSE  All-Share  Index.   Further,  ASCoT's  portfolio
     represents  even  better  relative value and  consists  of  shares  in
     companies  well placed to benefit from rising economic  activity  with
     strong  financial characteristics and market positions.  Some  salient
     characteristics of the portfolio are detailed below.
                                                         
     Portfolio Characteristics as at       1999      1998
     30 June
                                                         
     Number  of  Companies  in   the        109       140
     Portfolio
     Weighted Average Market            £262.7m   £176.6m
     Capitalisation
 Price Earnings Ratio (Historic)      13.2x     13.5x
     Net Dividend Yield (Historic)         3.2%      3.4%
     Dividend Cover (Historic)             2.4x      2.2x
                                                         
     The  high  absolute returns achieved by the shares of large  companies
     over  the  last  three years have been primarily driven  by  expanding
     price-earnings multiples as long term interest rates  have  declined.
     It  now  looks as though this process has substantially run its course
     and  therefore investors may be forced to seek value in an environment
     where nominal stockmarket returns are likely to be lower.

GENERAL ISSUES

There  are  two  non-investment related issues which merit highlighting  to
Shareholders.   Your  Board  carefully  considered  contributing   to   the
Association of Investment Trust Companies' forthcoming marketing  campaign,
the  so-called  'its'  campaign.   In  concluding  that  ASCoT  should  not
contribute,  your Board considered solely whether this campaign  is  to  be
directed  at  potential investors similar to those whom ASCoT has  courted.
Your Board's conclusion was that this is not to be the case since the 'its'
campaign  seems to be aimed at retail investors whereas ASCoT has  marketed
itself consistently at institutional and wholesale investors.  That  is  by
no  means to say that retail investors are in any way unwelcome but  rather
that  expenses involved in servicing retail investors have always been kept
to a minimum.

Secondly,  your  Board is aware of the so-called Y2K  or  Millennium  'bug'
issue  and  is  taking steps to address it.  ASCoT has sought and  received
assurances   from  advisers  and  significant  suppliers  that   they   are
formulating  appropriate strategies to deal with the  problem.   Given  the
complexity  of  the  problem, it is not possible for  any  organisation  to
guarantee that no Y2K problems will remain because, at least, some level of
failure  may still occur.  However, your Board believes that an  acceptable
state  of readiness will be achieved.  Your Board is not aware of any costs
associated with implementing Y2K compliance which will be incurred directly
by ASCoT.

SUMMARY

At  the Annual General Meeting in February, 99.9% of those Shareholders who
voted were in favour of ASCoT's continuation.  It is therefore particularly
pleasing  to  your Board that ASCoT has performed well this  year,  perhaps
justifying some of this overwhelming Shareholder support.

From here, your Board is able to identify good reasons why ASCoT should  be
able  to outperform small companies in general and why they in turn  should
be  able to outperform large companies.  These include: attractive relative
valuations;  recovering economic growth; a flattening yield curve;  and  an
active corporate market.  Against these positive considerations must be set
concerns  over the strength of Sterling against the Euro which  is  clearly
impinging upon many UK companies' trading performance and also whether  the
Y2K  issue  will cause economic and stockmarket 'distortions'  towards  the
year end.  The balance of these issues, however, seems positive.

William Y Hughes
Chairman
13 July 1999

The Statement of Total Return and summary Balance Sheet are set out below:-
                                  
                                   
                        STATEMENT OF TOTAL RETURN
                  (Incorporating the Revenue Account*)
                                    
                  For the six months ended 30 June 1999
                    (unaudited)

                           Six Months to             Six Months to
                            30 June 1999              30 June 1998
                      Revenue Capital   Total   Revenue Capital   Total
                       £'000   £'000    £'000    £'000   £'000    £'000
                                                                 
Realised    -   4,406    4,406        -  11,529   11,529
gains/(losses) on
sales
Unrealised                 -  69,723   69,723        -  11,788   11,788
gains/(losses)        ------  ------   ------   ------  ------   ------
                                                                 
Gains/(losses) on          -  74,129   74,129        -  23,317   23,317
investments
Deemed cost of                                
Warrants
purchased for              -    (793)    (793)       -  (2,381)  (2,381)
cancellation
Dividend income        5,806       -    5,806    5,386       -    5,386
Interest income           55       -       55       52       -       52
Other income               1       -        1       13       -       13
Investment              (362)   (601)    (963)    (405)  (674)  (1,079)
management fee
Other expenses          (129)      -     (129)     (96)      -      (96)
                      ------  ------   ------   ------  ------   ------       
                                   
Net return before                                                
finance
costs and taxation     5,371  72,735   78,106    4,950  20,262   25,212
Interest payable and                               
similar
charges                 (421)   (703)  (1,124)    (230)   (384)    (614)
                      ------  ------   ------   ------  ------   ------       
                                   
Return on ordinary                                               
activities
before tax             4,950  72,032   76,982    4,720  19,878   24,598
Tax on ordinary (611)      -     (611)    (976)      -     (976)
activities            ------  ------   ------   ------  ------   ------
                                                                 
Return attributable                                              
to
equity shareholders    4,339  72,032   76,371    3,744  19,878   23,622
Dividends in respect                                             
of
equity shares         (2,359)      -   (2,359)  (2,276)      -   (2,276)
                      ------  ------   ------   ------  ------   ------       
                                                        
Transfer to/(from)     1,980  72,032   74,012    1,468  19,878   21,346
reserves
                                                                 
                   
Returns per Ordinary                                             
Share
- Basic                 5.24p  87.04p   92.28p    4.52p  24.02p   28.54p
Returns per Ordinary                                             
Share
- Diluted               5.08p  84.38p   89.46p    4.31p  22.86p   27.17p
Dividends per                                                    
Ordinary
Share         2.85p      -     2.85p    2.75p      -     2.75p
                        
                        STATEMENT OF TOTAL RETURN
                  (Incorporating the Revenue Account*)
                                    
                  For the six months ended 30 June 1999
                               (unaudited)

                                                     Year to
                                   31 December 1998
                                             Revenue Capital   Total
                                              £'000   £'000    £'000
                                                              
Realised gains/(losses) on sales                  -  19,504   19,504
Unrealised gains/(losses)                         - (38,969) (38,969)
                                     ------  ------   ------          
      
Gains/(losses) on investments                     - (19,465) (19,465)
Deemed cost of Warrants                                       
purchased for cancellation                        -  (3,040)  (3,040)
Dividend income                              10,228       -   10,228
Interest income                                 104       -      104
Other income                                     15       -       15
Investment management fee                      (773) (1,288)  (2,061)
Other expenses                                 (201)      -     (201)
                                             ------  ------   ------          
      
Net return before finance costs and           9,373 (23,793) (14,420)
taxation
Interest payable and similar charges           (360)   (600)    (960)
                                             ------  ------   ------          
       
Return on ordinary activities                                 
before tax                                    9,013 (24,393) (15,380)
Tax on ordinary activities                   (1,776)      -   (1,776)
                                             ------  ------   ------          
      
Return attributable to                                        
equity shareholders                           7,237 (24,393) (17,156)
Dividends in respect of                                       
equity shares                                (6,041)      -   (6,041)
                                             ------  ------   ------          
      
Transferto/(from) reserves                   1,196 (24,393) (23,197)
                                                              
                                                              
Returns per Ordinary Share                                    
- Basic                                        8.75p (29.48p) (20.73p)
Returns per Ordinary Share                                    
- Diluted                               8.40p (28.32p) (19.92p)
Dividends per Ordinary                                        
Share                                          7.30p      -     7.30p

NOTES TO THE STATEMENT OF TOTAL RETURN

The calculations of revenue return per Ordinary Share are based on net
revenue of £4,339,000 (30 June 1998 - £3,744,000 and 31 December  1998
-  £7,237,000) and on Ordinary Shares of 82,755,687 (30  June  1998  -
82,747,606  and 31 December 1998 - 82,750,827) in the  case  of  basic
returns and 85,369,020 (30 June 1998 - 86,954,909 and 31 December 1998
- 86,132,959) in the case of diluted returns.

The calculations of capital return per Ordinary Share are based on net
gains of £72,032,000 (30 June 1998 - £19,878,000 and 31 December  1998
- losses of £24,393,000) and on Ordinary Shares of 82,755,687 (30 June
1998  -  82,747,606 and 31 December 1998 - 82,750,827) in the case  of
basic  returns  and  85,369,020 (30 June  1998  -  86,954,909  and  31
December 1998 - 86,132,959) in the case of diluted returns.

* 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.
  No operations were acquired or discontinued in the period.

                          SUMMARY BALANCE SHEET
                                    
                            As at 30 June 1999
                               (unaudited)

                                       30 June     30 June  31 December
                                         1999        1998       1998
                                        £'000       £'000       £'000
                                                              
Securities  listed  on  the   London  304,336     242,732     209,727
Stock Exchange
                                                              
Debtors                                 6,784       4,164       1,228
Bank overdraft (46,911)     (8,859)    (22,251)
Other creditors                        (7,907)     (2,349)     (5,665)
                                      -------     -------     ------- 
Net current liabilities               (48,034)     (7,044)    (26,688)
                                      -------     -------     -------         
              
Total     assets    less     current  256,302     235,688   183,039
liabilities
Bank  loan  (falling due after  more        -      (6,750)          -
than one year)                        -------     -------     -------  
                                                              
                                      256,302     228,938     183,039
                                                              
                       
Capital and reserves: equity                          
interests
  Called up share capital                 828      20,688      20,688
Reserves:                                                     
  Share premium account                     2       9,863       9,863
  Capital redemption reserve                -     103,801     103,801
  Special reserve133,525           -           -
  Capital reserve - realised           78,980      72,293      77,423
  Capital reserve - unrealised         35,843      16,877     (33,880)
  Revenue reserve                       7,124       5,416       5,144
                                      -------     -------     -------         
              
                                      256,302     228,938     183,039
                                                              
                                                              
Net Asset Values:                                             
  Ordinary Share (basic)                309.7p      276.6p      221.2p
  Ordinary Share (fully diluted)        300.4p      263.1p      214.4p
  Ordinary  Share (diluted -            301.1p      264.4p  215.5p
  FRS 14)

NOTES TO THE BALANCE SHEET

1.   As  at 30 June 1999, the Company had 82,757,359 Ordinary Shares  (30
     June  1998 and 31 December 1998 - 82,753,996) and 3,821,863 Warrants
     (30  June  1998  -  6,856,685 and 31 December 1998 -  4,906,553)  in
     issue.

2.   During  the  six  months  to 30 June 1999,  the  Company  bought  in
     1,081,327 Warrants for cancellation at a total cost of £1,545,000.

3.   The  reduction  of capital approved by Shareholders  at  the  Annual
     General Meeting held on 23 February 1999 became effective on  7  May
     1999  following confirmation by the Court of Session.   The  Balance
     Sheet at 30 June 1999 reflects the revised position.

4.   The  foregoing  do not comprise statutory accounts  (as  defined  in
     section  240(5)  of  the Companies Act 1985) of  the  Company.   The
     statutory accounts for the year to 31 December 1998, which contained
     an  unqualified  Report of the Auditors, have been lodged  with  the
     Registrar  of  Companies and did not contain  a  statement  required
     under sections 237(2) or (3) of the Companies Act 1985.

5.   The  Interim Report is expected to be posted to shareholders  on  16
     July  1999.  Members of the public may obtain copies from  Aberforth
     Partners, 14 Melville Street, Edinburgh EH3 7NS.


CONTACT:  John Evans          Aberforth Partners          0131 220 0733