Interim Results

ABERFORTH SMALLER COMPANIES TRUST plc

INTERIM RESULTS

For the Six Months to 30 June 2005


FEATURES

          Net Asset Value Total Return                     +10.5%

          Benchmark Index Total Return                      +8.4%

          Increase in Interim Dividend per Ordinary Share   +6.7%


Aberforth  Smaller  Companies Trust plc (ASCoT)  invests  only  in
small UK quoted companies and is managed by Aberforth Partners.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

RESULTS REVIEW

For  the  six months to 30 June 2005, Aberforth Smaller  Companies
Trust  plc  (ASCoT)  achieved a net asset value  total  return  of
10.5%,  which compares with a total return of 8.4% from the  Hoare
Govett  Smaller  Companies Index (Excluding Investment  Companies)
(HGSC   (XIC)),  your  Company's  investment  benchmark.    Larger
companies,  as represented by the FTSE All-Share Index, registered
a  total  return  of  8.2%.  ASCoT, therefore,  out-performed  its
benchmark  during  a period when smaller companies  slightly  out-
performed larger companies.

Your Board is pleased to announce an interim dividend of 4.0p  per
share,  which  represents an increase of 6.7%  compared  with  the
equivalent  period  last  year.  This  rate  of  increase  broadly
reflects   the   underlying  growth  in  dividends  from   ASCoT's
portfolio.  The interim dividend will be paid on 2 September  2005
to  Shareholders on the register on 5 August 2005.  ASCoT operates
a  Dividend  Reinvestment  Plan;  the  relevant  documentation  is
available  from  Aberforth Partners' website or  on  request,  for
those Shareholders not already participating in this plan.

This is my first statement to Shareholders since I became Chairman
following  the Annual General Meeting in February 2005, succeeding
Bill  Hughes.   With the continued support of your Board,  I  look
forward to emulating Bill's success in the role and thank  him  on
Shareholders' behalf for his excellent stewardship of your Company
over the past 14 years.

At  the Annual General Meeting, Shareholders overwhelmingly passed
the  resolution  to  continue  your  Company.   Shareholders  also
renewed  the authority for your Company to buy in up to 14.99%  of
its  Ordinary Shares.  Your Board has established, and keeps under
careful review, the circumstances under which such authority  will
be  utilised.  Should these circumstances arise, your Company will
seek to purchase Ordinary Shares.  Any Ordinary Shares bought back
would be cancelled rather than held in treasury.

ACCOUNTING STANDARDS

There  are  two changes to accounting practices that  have  to  be
incorporated into these financial statements. The immediate impact
of  the  changes is to complicate reporting, but as we  move  into
2006  the  reporting will simplify as comparables  will  be  on  a
consistent basis.

ASCoT  continues  to  prepare its financial  statements  under  UK
Generally Accepted Accounting Practice and the AITC's Statement of
Recommended Practice. Your Board, following discussions  with  the
Secretaries  and your Company's auditors, resolved  not  to  adopt
International  Accounting Standards at this time as  such adoption
would  result  in  a presentation format which,  in  your  Board's
opinion,  would currently be less informative to Shareholders.  In
your  Board's  view,  there would be no  material  change  in  the
financial results and position of the Company were it to adopt IAS.
Your Board will, of course, keep this matter under review.

In  the  meantime  the financial statements incorporate,  for  the
first  time,  Financial Reporting Standards  (FRS)  25  and  26.
Adoption of these standards has required a change in the treatment
and  presentation of the interim dividend and the basis of valuing
investments in the portfolio. Further information regarding  these
changes  has  been  provided  in  the  notes  to  these  financial
statements.

These  changes  make  comparison with the  previous  periods  less
straightforward.   In  accordance  with  the  AITC's   recommended
practice, the above total return figures have been prepared  using
the  accounting policies used for the year to 31 December 2004 and
do  not  include  the adjustments required by FRS  25  and  26  as
described above.

                                                      David R Shaw
                                                          Chairman
                                                      13 July 2005


MANAGERS' REPORT

INVESTMENT BACKGROUND

In  constant currency terms, the returns from UK equities  in  the
first  half  were  broadly consistent with those  of  other  major
stockmarkets  around  the  world.  Other asset  classes,  however,
proved rather more exciting.  Commodities performed well, with the
oil  price climbing towards $60.  Meanwhile, leveraged players  in
the corporate debt market had their nerve tested by an increase in
yields  following  downgrades of Ford and GM debt  by  the  rating
agencies.   Furthermore, the resurgence of the  US  dollar,  given
extra  impetus  by  the "no" votes for the European  constitution,
caught many by surprise.  Taking a step back, however, the problem
of  the  gaping US current account deficit remains unresolved  and
the dollar's 11% rise against the euro has merely taken it back to
levels that prevailed twelve months ago.

However,   the  most  intriguing  and  perhaps  most   significant
development  has  been the continued decline  in  government  bond
yields to unusually low levels in a post war context, a phenomenon
described by Alan Greenspan as a "conundrum".  With the Fed having
raised interest rates four times in 2005, this has resulted  in  a
convergence  between  short  and  long  term  yields  in  the  US.
Conventionally, such a flattening yield curve is interpreted as an
indication of slowing economic activity.

Recent  economic data in the US are, though, far from  conclusive.
While,  a  decline in the rate of growth later in the  year  would
hardly  be surprising given the strength of the upswing  over  the
last  two  years, the housing market remains buoyant, perhaps  too
buoyant, and should be able to bolster consumer spending for  some
time.   In  contrast, the UK, where monetary conditions have  been
tighter  for  longer, has experienced a pronounced  moderation  in
house  price  inflation.  The consequent slowdown in the  consumer
sector, evident in weak retail sales and consumer borrowing  data,
is now becoming evident in slowing GDP growth.

INVESTMENT PERFORMANCE

Against  this  background,  the  HGSC  (XIC),  with  its  bias  to
domestically oriented sectors such as retailing and building,  may
be  considered to have performed resiliently, having exceeded  the
return from the more internationally diversified larger companies.

As  was the case in 2004, the small company universe appears to be
benefiting from corporate activity and, more generally, a trend to
replace equity with debt financing.  This is most obvious  in  the
still  high  level  of takeovers, though also  encompasses  rising
dividend payments and returns of equity through share repurchases.
In  the  first  half,  30  constituents of  the  HGSC  (XIC)  were
acquired,  with  several others subject to  takeover  speculation.
ASCoT  again  benefited disproportionately, having  seen  bids  or
approaches  for nine of its 114 stock portfolio.  The buyers  have
tended to be other corporates, though private equity houses remain
able  to  compete  by  virtue  of the present  cheapness  of  debt
finance.  Meanwhile, 14 portfolio companies have returned, or  are
in  the process of returning, capital to shareholders, most  often
in the form of share repurchases.

Turning  to the supply of new equity, the first half saw  ten  new
issues  eligible  for inclusion in the HGSC (XIC).   In  contrast,
there were 31 new issues in the first half of 1996, a period  when
smaller  company valuations, both absolute and relative to  large,
were  very close to those currently prevailing.  Moreover, company
boards  now  appear reluctant to use equity to fund  acquisitions.
Twelve  portfolio companies made acquisitions in the  first  half,
all  of  which were substantially debt funded.  The supply of  new
equity to the small company universe has therefore not compensated
for reductions through takeover and share buy-backs.  This remains
the  case even taking into account the frenzied activity  on  AIM,
which admitted 219 companies to its ranks in the first half alone.
ASCoT  does  not invest in AIM listed companies and they  are  not
part of its investment benchmark.

ASCoT's  out-performance was helped by, but was not reliant  upon,
corporate   activity.  The  portfolio  added  value  against   the
benchmark in 19 out of 31 sectors.  As has been the case for  some
time,  stock  selection,  which accounted  for  70%  of  the  out-
performance, was more significant than sector selection.   Indeed,
the present importance of company specific fundamentals is perhaps
evident  in  the fact that eight sectors were represented  in  the
list of ten stocks that made the largest positive contributions to
the  portfolio's return.  Of these ten companies,  just  two  were
subject to takeover and one other bought back shares.  The average
holding  period of this top ten was four years, which  might  give
some  indication  of  the  long  term  nature  of  your  Managers'
investment process.

It  is  worth  noting  that by the end of the  period,  ASCoT  was
standing  ten  percentage points under-weight  in  the  Financials
sector, which is thus one of the more significant sector positions
in  its history.  Even here company specifics have played the more
important  role  for your Managers in arriving at sector  weights,
but two general comments might be made.  First, an environment  of
higher  interest rates and more recently a cautious consumer  have
clouded the trading outlook for many of the sector's constituents.
Secondly,  the  tremendous performance of  property  companies  in
recent years has seen their valuations rise to levels that, in the
absence  of  appreciable  rental  growth,  are  considerably  less
appealing than previously.

INVESTMENT OUTLOOK

Asset  prices offer the equity investor conflicting signals  about
the  outlook  for  economic  growth and  corporate  profits.   The
buoyancy  of  the  corporate bond, commodity and property  markets
would  appear to indicate good growth with some inflationary risk.
On  the other hand, the strength of government bonds, whose  "risk
free" yields are often the starting point in determining the value
of  other  asset  classes,  points to  a  weaker  and  potentially
deflationary outcome.

In  searching  for  a  unifying theory to  explain  this  apparent
inconsistency,  it  is tempting to alight upon  the  low  interest
rates  that  have endured in the US and elsewhere for  some  time.
While  undoubtedly  sustaining economic growth,  these  have  also
facilitated  leveraged  investment  across  the  range  of   asset
classes, including government bonds, the demand for which has been
boosted by East Asia's central banks.

For  valuations  across financial markets to  be  reliant  on  the
perpetuation  of  cheap debt is troublesome.   In  the  UK,  where
interest  rates  have  been  on  an  upward  path,  the  potential
ramifications  are becoming obvious in the housing market  and  by
extension  in  the  consumer sector.  This inevitably  clouds  the
profit  outlook  for  the small company universe's  many  consumer
facing  businesses,  but  the  large company  universe,  with  its
sizeable  exposure  to banks, might also be  affected.   As  ever,
though,  the  stockmarket is performing its discounting  function:
many  constituents of those sectors considered at risk are already
trading on low valuations.



                             30 June 2005     30 June 2004
Characteristics           ASCoT   Benchmark ASCoT   Benchmark

Number of Companies         114     627       124      707
Weighted Average Market
Capitalisation            £364m   £409m     £337m    £414m
Price Earnings Ratio      14.9x   16.4x     13.8x    16.0x
(Historic)
Net Dividend Yield         2.6%    2.3%      2.9%     2.6%
(Historic)
Dividend Cover (Historic)  2.5x    2.6x      2.5x     2.4x



Buoyed  by  takeover  activity, the  overall  valuation  of  small
companies  remains broadly in line with that of the FTSE All-Share
Index, whose PE and yield are 16.0x and 3.1% respectively.  It  is
worth noting, though, that the benchmark comprises a heterogeneous
collection of businesses with a wide range of valuations.  As  the
table above demonstrates, it remains possible to construct a  well
diversified  portfolio,  whose  average  valuation  would   appear
consistent with your Managers' value investment principles.

                                                Aberforth Partners
                                                          Managers
                                                      13 July 2005

The Statement of Total Return, summary Balance Sheet and
summary Cash Flow Statement are set out below:-

STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account1)
(unaudited)

                         6 months to               6 months to
                         30 June 2005             30 June 2004
                      Revenue Capital   Total  Revenue Capital Total
                        £'000   £'000   £'000    £'000   £'000 £'000

Realised net gains         -   32,512  32,512      -  32,788   32,788
on sales
Unrealised gains           -   11,161  11,161      -  24,673   24,673
                       -----   ------  ------  -----  ------   ------
Net gains on               -   43,673  43,673      -  57,461   57,461
investments

Dividend income        9,070    3,104  12,174  8,465       -    8,465
Interest income          260        -     260    155       -      155
Other income              47        -      47     47       -       47
Investment              (996)  (1,660) (2,656)  (805) (1,342)  (2,147)
management fee
Other expenses          (187)       -    (187)  (164)     -      (164)
                       -----   ------  -----   -----  ------   ------
Return on ordinary
activities before finance
costs and tax          8,194   45,117   53,311 7,698  56,119   63,817
Interest on ordinary       -        -        -   (14)    (23)     (37)
activities
                       -----   ------   ------ -----  ------   ------
Return on ordinary
activities
  before tax           8,194   45,117   53,311 7,684  56,096   63,780
Tax on ordinary            -        -        -     -       -        -
activities
                       -----   ------   ------ -----  ------   ------
Return attributable
to equity
shareholders           8,194   45,117   53,311  7,684 56,096   63,780
                      ======   ======   ====== ====== ======   ======

Returns per
Ordinary Share:        8.29p   45.66p   53.95p  7.78p 56.75p   64.55p

The  Board  declared  on 13 July 3005  an  interim dividend  of  4p
per  Ordinary  Share (30 June 2004 - 3.75p) and the total  dividend
payable  will be £3,952,000(30 June 2004 - £3,705,000).  The  Board
also declared, on 20 January 2005, the final dividend in respect of
the  year  ended 31 December 2004 of 7.25p per Ordinary  Share  (30
June  2004  -  6.6p)  and  the  total  dividend  paid  amounted  to
£7,164,000 (30 June 2004 - £6,521,000).


NOTES

1.   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.

2.  The calculations of revenue return per Ordinary Share are based
on  net  revenue of £8,194,000 (30 June 2004 - £7,684,000)  and  on
Ordinary Shares of 98,809,788 in the case  of basic returns.

The calculations of capital return per Ordinary Share are based  on
net  capital gains of £45,117,000 (30 June 2004 - £56,096,000)  and
on  Ordinary Shares of 98,809,788 in the case of basic returns.





SUMMARY BALANCE SHEET
(unaudited)


                                 30 June       31  30 June
                                         December
                                    2005     2004     2004
                                   £'000    £'000    £'000

Securities officially listed on  580,913  535,525  497,472
the London Stock Exchange
                                 -------  -------  -------

Cash at bank                      14,301   14,378       33
Debtors                            3,179    1,911    2,914
Bank overdraft                         -        -     (509)
Other creditors                     (483)  (7,215) ( 8,309)
                                 -------  -------  -------
Net current assets/(liabilities)  16,997    9,074   (5,871)
                                 -------  -------  -------

                                 -------  -------  -------
Total assets less liabilities    597,910  544,599  491,601
                                 =======  =======  =======


Capital and reserves: equity
interests
  Called up share capital            988      988      988
(Ordinary Shares)

Reserves:
  Special reserve                197,305  197,305  197,305
  Capital reserve - realised     252,095  218,139  192,718
  Capital reserve - unrealised   125,750  114,589   85,249
  Revenue reserve                 21,772   13,578   15,341
                                 -------  -------  -------
                                 597,910  544,599  491,601
                                 =======  =======  =======


Net Asset Value per Ordinary      605.1p   551.2p   497.5p
Share:



NOTES
1.  Reconciliation of Net Asset Value per Ordinary Share
                                  30 June       31  30 June
                                     2005 December     2004
                                              2004
Net Asset Value per Ordinary       605.1p   551.2p   497.5p
Share stated above:
Less: Dividend declared (FRS 25)    (4.0p)     N/A      N/A
Add: Adjustment to valuation of
investments from bid to mid          4.5p      N/A      N/A
prices  (FRS 26)
                                  -------  -------  -------
Comparable Net Asset Value per
Ordinary Share excluding
adjustments required under FRS
25 and 26                          605.6p   551.2p   497.5p
                                  =======  =======  =======


2.  As at 30 June 2005, the Company had 98,809,788 Ordinary Shares
in issue (31 December 2004 and 30 June 2004 - same).






SUMMARY CASH FLOW STATEMENT
(unaudited)
                             6 months to     6 months to
                             30 June 2005    30 June 2004
                             £'000   £'000   £'000   £'000

Net cash inflow from                 8,155           5,330
operating activities

Returns on investments and               -             (37)
servicing of finance

Capital expenditure and
financial investment
Payments to acquire
investments                 (98,239)       (123,687)
Receipts from sales of
investments                  97,171         101,757
                            -------         -------

Net cash outflow from
capital expenditure and
financial investment                (1,068)        (21,930)
                                   -------         -------

                                     7,087         (16,637)

Equity dividends paid               (7,164)         (6,521)
                                    ------          ------

                                       (77)        (23,158)

Financing                                -               -
                                    ------         -------
Decrease in cash                       (77)        (23,158)
                                    ======         =======

NOTES
1.     The  financial statements have been prepared in  accordance
 with  applicable  accounting  standards  and  the  Statement   of
 Recommended  Practice " Financial Statements of Investment  Trust
 Companies".  In  preparing  the  financial  statements  for   the
 current  period, the same accounting policies used for  the  year
 to  31  December 2004 have been applied except that  the  Company
 has   adopted  FRS  25  `Financial  Instruments:  Disclosure  and
 Presentation' and FRS 26 `Financial Instruments: Measurement'.

 The  adoption  of FRS 25 has resulted in a change  in  accounting
 for  the  interim dividend. Dividends payable by the Company  are
 now  recorded as a liability following a dividend declaration  by
 the  Board  and therefore the interim dividend of 4p  per  share,
 declared  on  13 July 2005, has not been recorded as a  liability
 of  the  Company  as  at  30  June 2005.  In  previous  financial
 statements, dividends declared were recognised in respect of  the
 period  to  which they related. This change in accounting  policy
 has  increased Shareholders' funds by £3,952,000 as  at  30  June
 2005.

 The  adoption of FRS 26 has resulted in a change in the basis  of
 valuation   of   investments.  Under  FRS   26,   the   Company's
 investments  have been categorised as "financial assets  at  fair
 value  through  profit & loss" and therefore  quoted  investments
 are  now  valued  at  bid prices. Previously, quoted  investments
 were  valued  at middle market prices. This change in  accounting
 policy  has reduced Shareholders' funds by £4,407,000 (equivalent
 to 4.46p per share) as at 30 June 2005.

 As  permitted  by  FRS  25  and 26, comparatives  have  not  been
 restated.

2.   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  2004,  which
 contained  an  unqualified  Report of  the  Auditors,  have  been
 lodged  with  the Registrar of Companies and did  not  contain  a
 statement  required under section 237(2) or (3) of the  Companies
 Act 1985.

3.    The  Interim Report is expected to be posted to shareholders
 on  19  July 2005.  Members of the public may obtain copies  from
 Aberforth  Partners,  14 Melville Street, Edinburgh  EH3  7NS  or
 from its website at www.aberforth.co.uk.

CONTACT:     David Holland          Aberforth Partners
0131 220 0733
Aberforth Partners, Secretaries - 13 July 2005
ANNOUNCEMENT ENDS