Final Results

EDINBURGH SMALL COMPANIES TRUST PLC
18 August 1999


            EDINBURGH SMALL COMPANIES TRUST

Edinburgh Small Companies Trust plc, the investment trust with an investment
objective to achieve long term capital growth by investing in small UK  quoted
companies mainly  with a market capitalisation below £150 million, announces
its preliminary results for the year ended 30 June 1999.


  PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 1999

Earnings per share increased from 1.30p to 1.86p
Total  dividend of 1.15p (1998 - 0.75p)
Second  half net asset value up 33.8% compared with 28.1%  rise  in  the
benchmark index
Poor  first  half means net asset value for year as a  whole  down  7.2%
compared with a rise in the index by 3.5%
Recovery continues in the current financial year with the NAV up 6.4% to
13 August 1999 compared to a rise of 3.9% in the benchmark

For further information, please contact:

Alex Gowans, Director,
Edinburgh Small Companies Trust plc         0131 313 1000

Alistair Currie, Director
Edinburgh Fund Managers plc                 0131 313 1000

Please note that past performance is not necessarily a guide to the future and
that  the  value of investments and the income from them may fall as  well  as
rise. Investors may not get back the amount they originally invested.


CHAIRMAN'S STATEMENT

Background
The period under review can best be described as a year of two halves.  In the
first  six months to December 1998 stockmarkets fell sharply on concerns about
the  stability  of  the global financial system. Over the  second  six  months
sentiment  improved after it became clear that the initial concerns  had  been
grossly  exaggerated  and stockmarkets recovered strongly  with  some  markets
rising to new highs.

Performance
As  reported in the interim statement the small companies sector and net asset
value of Edinburgh Small Companies fell sharply in the 6 months to 31 December
1998.   However, several of the factors which hindered returns for the  trust,
in  particular  gearing  and  the performance of  technology  companies,  were
beneficial  to performance over the final six months with the net asset  value
appreciating  by  33.8% compared to a rise of 28.1% by the trust's  benchmark,
the extended Hoare Govett Smaller Companies Index excluding investment trusts.
However,  this rise was not enough to fully compensate for the sharp  fall  in
net  asset value in the first half of the year.  Net asset value for the  year
as a whole fell by 7.2% compared to a rise of 3.5% in the benchmark.

One  of  the features of the last six months has been the significant recovery
in the small companies sector in relation to blue chips.  Whilst our benchmark
rose  28.1%,  the  FTSE100  appreciated by only 7.4%  over  the  same  period.
Smaller companies have been undervalued in relation to larger companies for  a
number  of  years  and it is encouraging that the market is now  beginning  to
recognise  the  value inherent throughout the sector.  Even after  this  rise,
smaller companies continue to offer the potential for attractive returns.

Since the year-end performance has continued to improve and, during the period
1 July to 13 August 1999, the net asset value has appreciated by 6.4% compared
to a rise of 3.9% in the benchmark.

Investment Mandate
Edinburgh  Small  Companies Trust offers exposure to  the  smallest  companies
included within the benchmark. When the company was launched in 1993 the upper
capitalisation limit of the benchmark was £298 million and, as  at  1  January
1999,   being  the  latest  rebalancing  date  of  the  benchmark,  the  upper
capitalisation  limit  had  been  increased to  £585  million.  The  benchmark
represents the lowest 10% of companies, by market capitalisation, of the  main
UK equity market.

In view of changes to the benchmark, the upper market capitalisation limit for
new  investments  has been increased from £100 million to £150  million.  This
modest  change  will  allow  greater investment  flexibility  in  relation  to
companies with a market capitalisation of £100 million to £150 million  whilst
maintaining  the original mandate of investing in the smaller constituents  of
the  benchmark. The capitalisation limit will continue to be reviewed  by  the
board.

Gearing
The trust has actively utilised its long-term borrowings throughout the period
under  review.  The amount of borrowings committed to the market has  averaged
around  £25m  over  the  past  twelve months.  Gearing,  as  a  percentage  of
shareholders' funds, was in the range of 18% to 28% during the  year.   At  30
June 1999, gearing represented 25.5% of shareholders' funds.

During  the  period  under review the impact of gearing on  returns  has  been
mixed.    In  the  first  half of the year gearing had a  negative  impact  on
returns.  However, as the stockmarket recovered the decision to retain a  high
level of gearing enhanced the net asset value.

Revenue Account
The  amount of gross revenue received has increased from £3.1 million to  £4.0
million  over the period.  The rise is mainly due to an increase  in  interest
receivable  on  the borrowings prior to investing the proceeds in  the  equity
market.   Income from equity investments increased from £3.0 million  to  £3.3
million  and  the tax charge fell marginally.  As a result of  these  factors,
earnings per share increased from 1.30p to 1.86p.

The board is recommending a final dividend of 0.4p to make a total dividend of
1.15p for the full year (1998 - 0.75p).  If approved, the final dividend  will
be  paid  on  11  October 1999 to shareholders on the  register  at  close  of
business  on 6 September 1999. As Advance Corporation Tax was abolished  on  6
April 1999, the company paid an interim dividend of 0.75p on 31 March 1999  to
enable PEP investors and non-taxpayers to reclaim the 20% tax credit.

Share Buy-backs
At  the  Extraordinary  General  Meeting on 24  March  1999  shareholders  and
warrantholders  approved share buy-back proposals. The Court has  subsequently
approved the proposals.

Under the Companies Act the board now has authority to purchase up to  14.99%
of  the  company's  shares  for cancellation.  The authority  expires  at  the
company's  AGM  and  the board is seeking approval for  its  renewal  at  that
meeting.  The aim of the buy-back is to enhance the net asset value per  share
for  those  shareholders  who retain their shares.  Purchases  may  also  help
towards reducing the volatility of the discount.

Warrants
A  further  1,350,000  warrants  have  been  acquired  by  the  company   for
cancellation.   In  total,  the  company has purchased  65%  of  the  warrants
originally  issued.   The  board  intends to  purchase  further  warrants  for
cancellation when appropriate.

Corporate Governance
The  company  is  committed to high standards of corporate governance  and  an
appropriate  statement appears in the Annual Report and  Accounts.  The  board
also  pays  close  attention to best practice applicable to investment  trusts
and,  in-line  with  the general trend to shorter notice periods,  the  notice
period  with Edinburgh Fund Managers will gradually reduce from two  years  to
one year by 16 August 2000.

The AITC Marketing Campaign
The  Association  of  Investment Trust Companies is  planning  a  major  media
campaign to raise the general public's awareness of investment trusts and as a
means  of  creating  more  demand for shares  in  the  sector.  The  board  is
supportive  of  the  campaign which will be funded  by  the  investment  trust
industry  as a whole, broadly according to size, and Edinburgh Small Companies
contribution will be £86,000 in the first year, reducing by 50% in each of the
following two years.

The campaign will complement the marketing initiative set up by Edinburgh Fund
Managers  to enable private shareholders to acquire shares in the trust  in  a
cost-effective manner.

Prospects
The  immediate  outlook  for  the  UK economy  is  encouraging.   Inflationary
pressures are modest and the recent reduction in interest rates is leading  to
a  pick-up in domestic activity.  Economic growth is now expected to rise over
the next two years and corporate profitability should also improve.

Whilst  the  UK  stockmarket is close to an all time high the performance  has
been  due  to the share price performance from the top 15 companies which  now
represent just under half, by value, of the UK stockmarket.  Outside this area
it  is  possible to identify a large number of companies which have failed  to
participate in the rise in the market and offer a low valuation combined  with
attractive  prospects.  Many smaller companies come into  this  category  and,
even after the recent rise, the sector is still valued at a discount of 29% in
p/e terms to the market as a whole as at 30 July 1999.

Low  valuations are attracting a great deal of corporate activity and, if  the
stockmarket does not place realistic values on smaller companies, the level of
acquisitions  and deals to take small companies back into private  hands  will
continue.

The board continues to believe that small companies remain attractive and will
reward shareholders who have been patient with the sector during the difficult
period the sector has experienced over the past few years.

Donald MacDonald
18 August 1999

STATEMENT OF TOTAL RETURN
for the year ended 30 June 1999 (audited)

                                  Revenue    Capital      Total
                                     £000       £000       £000
Net losses on investments               -     (6,300)    (6,300)
Buy back of warrants                    -       (228)      (228)
Income from investments             3,290           -     3,290
Interest receivable                   658           -       658
Other income                           17           -        17
Investment management fee            (685)      (685)    (1,370)
Administrative expenses              (253           -      (253)
                                                               
Return before finance costs and     3,027     (7,213)    (4,186)
taxation
Interest  payable  and  similar    (1,147)    (1,141)    (2,288)
charges
                                                               
Return  on  ordinary activities     1,880     (8,354)    (6,474)
before taxation
Taxation                             (590)        78       (512)
                                                               
Return  attributable to  equity     1,290     (8,276)    (6,986)
shareholders
Dividend  in respect of  equity      (800)          -      (800)
shares
                                                               
Transfer to reserves                  490     (8,276)    (7,786)
                                                               
Return per ordinary share           1.86p    (11.90p)    (10.04p)
                                                               
Diluted   return  per  ordinary         -          -          -
share
                                                               
______________________________________________________________________________
for the year ended 30 June 1998 (audited)

                                  Revenue    Capital      Total
                                     £000       £000       £000
Net gains on investments                -     31,522     31,522
Buy back of warrants                    -     (1,384)    (1,384)
Income from investments             2,980          -      2,980
Interest receivable                     2          -          2
Other income                           96          -         96
Investment management fee            (676)      (676)    (1,352)
Administrative expenses              (239)         -       (239)
                                                               
Return before finance costs and     2,163     29,462     31,625
taxation
Interest  payable  and  similar      (668)      (667)    (1,335)
charges
                                                               
Return  on  ordinary activities     1,495     28,795     30,290
before taxation
Taxation                             (589)         -       (589)
                                                               
Return  attributable to  equity       906     28,795     29,701
shareholders
Dividend  in respect of  equity      (521)         -       (521)
shares
                                                               
Transfer to reserves                  385     28,795     29,180
                                                               
Return per ordinary share           1.30p     41.42p     42.72p
                                                               
Diluted   return  per  ordinary     1.28p     40.72p     42.00p
share

______________________________________________________________________________
BALANCE SHEET
(audited)
                              At 30 June  At 30 June
                                    1999        1998
                                    £000        £000
Fixed assets                                        
Investments                      130,011     133,079
                                                    
Current assets                     7,470      17,449
Current liabilities                2,911       7,806
                                                    
Net current assets                 4,559       9,643
                                                    
                                 134,570     142,722
Creditors: amounts  falling                         
due  after  more  than  one       30,996      31,016
year
                                                    
                                 103,574     111,706
                                                    

Capital and reserves                                
Called up share capital           17,382      17,382
Reserves                          86,192      94,324
                                                    
Total  equity shareholders'      103,574     111,706
funds
                                                    
Net asset value per share        150.39p     162.12p
                                                    
Diluted net asset value per      149.77p     158.82p
share

NOTES:
1. The  financial  statements have been prepared under the same  accounting
   policies used for the year to 30 June 1998.
2. The  financial  information for the year ended 30  June  1998  has  been
   extracted from the Annual Report and Accounts of the company which have    
   been filed with the Registrar of Companies and contained an unqualified    
   auditors' report. The statutory accounts for 1999 are unqualified and will 
   be delivered to the Registrar of Companies following the company's Annual  
   General Meeting which will be held at the registered office of the company,
   Donaldson House, 97 Haymarket Terrace, Edinburgh, EH12 5HD on Friday 8     
   October 1999 at 11.00am.
3. The  statement  of  total return (incorporating the  revenue  account)  and
   balance  sheet  set out above do not represent full accounts in  accordance
   with Section 240 of the Companies Act 1985.
4. The  investment  management  fee in each case  includes  irrecoverable  VAT
   calculated at 17.5 per cent.
5. The  Annual Report will be posted to shareholders on 6 September  1999  and
   copies will be available from the registered office of the company.

For Edinburgh Small Companies Trust plc
Edinburgh Fund Managers plc, Secretary
David Holland
Assistant Secretary