Final Results

EDINBURGH SMALL COMPANIES TRUST PLC

Edinburgh Small Companies Trust plc, the investment trust with an
investment objective to achieve long term capital growth by investment
in UK quoted smaller companies, announces its preliminary results for
the year ended 30 June 2003.

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2003


For further information, please contact:

Donald MacDonald
Edinburgh Small Companies Trust plc               Tel. [phone]

George Walker
Standard Life Investments                         Tel. [phone]

Brian Simmons
Press Manager, Standard Life Investments          Tel. [phone]

Tom Durie
Close Brothers Securities, Corporate Adviser to   Tel. [phone]
Edinburgh Small Companies Trust plc


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.


Edinburgh Small Companies Trust plc

Chairman's Review

Change of Investment Manager
The board announced on 15 August 2003 that as a result of a sustained
period of poor performance by Edinburgh Fund Managers and following a
review undertaken in recent months of the company's investment
management arrangements Standard Life Investments has been appointed as
the new investment manager of the company with effect from 1 September
2003. The investment management agreement with Edinburgh Fund Managers
plc has been terminated on that date, with no compensation being payable
by the company.

The appointment of Standard Life Investments will not affect the
company's current investment objective, which remains the achievement of
long term capital growth through investment in UK quoted smaller
companies. The company's benchmark will remain the Extended Hoare Govett
Smaller Companies Index (ex Investment Companies).

As a partof its review the board has given consideration to the issues
presented by the company's long-dated debenture stock. Standard Life
Investments has been instructed to actively manage the company's gearing
and shareholders will be notified as soon as practicable of proposals in
this regard.

Investment Management Arrangements
The Standard Life Investments' UK Smaller Companies Team will manage the
company's portfolio under the leadership of Harry Nimmo. This well
established team has the support of Standard Life Investments'
substantial in-house research and investment expertise and has a strong
long-term track record in the management of UK smaller company funds.

The board has instructed Standard Life Investments to realign the
portfolio in line with their investment process over time in a way that
minimises the costs to shareholders as far as practicable. It is
anticipated that the realignment will largely be implemented by the end
of 2003.

Management Fee
Standard Life Investments will receive an investment management fee of
0.8% per annum of the value of the company's total assets less current
liabilities, except to the extent that the assets are held in cash or
non-equity securities which will incur a reduced fee of 0.2% per annum.
The investment management agreement will be terminable by either party
on 12 months' notice.

This fee compares with the previous arrangement whereby the company paid
1.0% per annum of total assets less current liabilities (after deducting
cash).

In line with the arrangements for the other investment trust managed by
Standard Life Investments, the company's secretarial and fund
administration functions will continue to be provided by Edinburgh Fund
Managers plc.

Benefits to Shareholders
The change in investment manager will provide shareholders with the
following benefits:

-    The strong long-term track record of the Standard Life Investments
     UK Smaller Companies Team;
-    The stability and recognised brand name of the Standard Life Group;
-    The support of the Standard Life Investments marketing team and
     distribution channels;
-    A reduction in the company's ongoing investment management costs.

The board believes that these benefits will lead to an enhancement of
shareholder value through an improvement in the company's performance
and a reduction in the discount at which the company's shares trade.

Review of Year Ended 30 June 2003
Global financial markets remained under pressure in the year ended 30
June 2003. During the early stages of the period, equity market
confidence was affected by fears over the solvency of the insurance
sector, and, later, the impending threat of conflict in the Gulf. The
UK Smaller Companies sector shared in the general malaise. At its
lowest point, the Extended Hoare Govett Smaller Companies Index fell
27.3% below its level at the end of June 2002. It is worth noting,
however, that in contrast to the year overall the final quarter was a
strong period for equity markets generally and smaller companies in
particular. In this final quarter the benchmark index rose by 25.3% but
for the year overall was still down by 6.2%.

Performance
In the period under review, the net asset value per share of the company
fell 36.4%.  Performance was largely affected by poor performance from
companies within the Technology, Media and Financial Services sectors,
areas where the company has been overweight.  Although these areas have
enjoyed a degree of recovery in recent months, they have still performed
very poorly over the period.  The effect of gearing in a falling market
also contributed significantly to the poor performance of the company.

As intimated in the interim statement, the board had become increasingly
concerned over the ongoing poor performance of the company and actions,
in addition to that noted above, were taken in order to address the
issue.  These included the redemption of £20.8 million of the 7.75%
debenture at a price of 108p, and, in October 2002, the removal of the
restriction to invest only in companies with a market capitalisation at
time of purchase of £150 million or below.

Gearing
Following the repurchase for cancellation, the amount of outstanding
debenture is now £19.2 million.  Whilst the debenture is not due to be
repaid until 2023 the actual level of invested gearing can be varied by
holding liquid investments to offset part of the debenture.

As at 30 June 2002 invested gearing represented 26.3% of shareholders
funds.  By 30 June 2003, it had fallen to 15.8%.


Revenue Account
Investment income has fallen from £1.922 million to £1.663 million due
mainly to several dividend cuts.  A number of expenses are also below
the previous year's, which partly compensates for the fall in revenue.
The principal reduction is the lower management fee paid to Edinburgh
Fund Managers which has fallen from £1.302 million to £0.534 million to
reflect the lower value of investments and changes to the calculation of
the management fee.  For the year, the revenue per share is 0.49p
compared to a loss of 0.49p for the previous year.

The board is proposing to pay an unchanged dividend of 0.75p partly from
accumulated revenue reserves.  If approved, the final dividend will be
paid on 27 October 2003 to shareholders on the register at close of
business on 3 October 2003.

Following the payment of the dividend the company will have revenue
reserves of 0.93p per share.

Share and Warrant Buybacks
No shares or warrants were purchased by the company for cancellation
over the twelve-month period.  The board is seeking permission from
shareholders to renew the authority to purchase up to 14.99% of the
shares in issue. 

Prospects
The swift resolution to the conflict in Iraq improved sentiment within
financial markets.  The recent rally within smaller companies has
continued beyond the end of the period under review.

Given the current low interest rate environment, there are reasonable
prospects for an increase in economic growth, both in the US and UK over
the forthcoming year.

As economic activity picks up, smaller companies are expected to perform
well, and are currently attractively valued.  The PE of the Extended
Hoare Govett Smaller Companies Index remains at a 20% discount to the
FTSE All-Share Index.  The board believes that the management change
made should for the reasons outlined above lead to better performance.


STATEMENT OF TOTAL RETURN
for the year ended 30 June 2003 (audited)

                                  Revenue    Capital      Total
                                     £000       £000       £000
                                                               
Realised net losses on                  -   (50,675)   (50,675)
investments
Unrealised net gains on                 -     31,230     31,230
investments
                                   ______     ______     ______
                                                               
TOTAL CAPITAL LOSSES ON                 -   (19,445)   (19,445)
INVESTMENTS
                                                               
Investment Income                   1,242          -      1,242
Interest from AAA money market        221          -        221
funds
Interest from Treasury Bills          200          -        200
Interest receivable                   120          -        120
Other income                            8          -          8
Investment management fee           (267)      (267)      (534)
Administrative expenses             (299)          -      (299)
                                   ______     ______     ______
                                                               
Net return before finance costs     1,225   (19,712)   (18,487)
and taxation
Interest payable and similar        (895)    (1,834)    (2,729)
charges
                                   ______     ______     ______
                                                               
Return on ordinary activities         330   (21,546)   (21,216)
before taxation
Taxation                                -          -          -
                                   ______     ______     ______
                                                               
Return on ordinary activities         330   (21,546)   (21,216)
after taxation
Dividends in respect of equity      (506)          -      (506)
shares
                                   ______     ______     ______
Transfer from reserves              (176)   (21,546)   (21,722)
                                   ______     ______     ______
Return per ordinary share           0.49p   (31.97p)   (31.48p)
                                   ______     ______     ______
Dividends per ordinary share        0.75p          -      0.75p
                                   ______     ______     ______




STATEMENT OF TOTAL RETURN
for the year ended 30 June 2002 (audited)


                                  Revenue    Capital      Total
                                     £000       £000       £000
                                                               
Realised net losses on                  -    (8,683)    (8,683)
investments
Unrealised net losses on                -   (42,654)   (42,654)
investments
                                   ______     ______     ______
                                                               
TOTAL CAPITAL LOSSES ON                     (51,337)   (51,337)
INVESTMENTS
                                                               
Investment Income                   1,682          -      1,682
Interest from AAA money market         98          -         98
funds
Interest from Treasury Bills          142          -        142
Interest receivable                   205          -        205
Other income                           21          -         21
Investment management fee           (651)      (651)    (1,302)
Administrative expenses             (305)          -      (305)
                                   ______     ______     ______
                                                               
Net return before finance costs     1,192   (51,988)   (50,796)
and taxation
Interest payable and similar      (1,524)    (1,524)    (3,048)
charges
                                   ______     ______     ______
                                                               
Return on ordinary activities       (332)   (53,512)   (53,844)
before taxation
Taxation                                -          -          -
                                   ______     ______     ______
                                                               
Return on ordinary activities       (332)   (53,512)   (53,844)
after taxation
Dividends in respect of equity      (489)          -      (489)
shares
                                   ______     ______     ______
Transfer from reserves              (821)   (53,512)   (54,333)
                                   ______     ______     ______
Return per ordinary share         (0.49p)   (78.74p)   (79.23p)
                                   ______     ______     ______
Dividends per ordinary share        0.75p          -      0.75p
                                                               
BALANCE SHEET
(audited)
                                       At 30            At 30
                                        June             June
                                        2003             2002
                                        £000             £000
Fixed assets                                                 
Investments                           45,490           78,032
                                      ______           ______
Current assets               14,065           30,290         
Creditors: amounts falling                                   
due within one year           1,065            6,548
                             ______           ______         
Net current assets                    13,000           23,742
                                      ______           ______
                                      58,490          101,774
Creditors: amounts falling                                   
due after more than one               19,843           41,405
year
                                      ______           ______
                                      38,647           60,369
                                      ______           ______
                                                             
Capital and reserves                                         
Called up share capital               16,851           16,851
Reserves                              21,796           43,518
                                      ______           ______
Total equity shareholders'            38,647           60,369
funds
                                      ______           ______
                                                             
Adjusted net asset value              58.29p           91.65p
per share
                                      ______           ______

CASHFLOW STATEMENT
(audited)
                                      For the year   For the year
                                             ended          ended
                                      30 June 2003   30 June 2002
                                              £000           £000
                                                                 
Net cash inflow from operating                 837            522
activities

Net cash outflow from servicing of         (3,918)        (3,100)
finance

Net cash inflow from capital                10,752         24,360
expenditure and financial
investment

Equity dividend paid                         (506)          (505)
                                                                 
Management of Liquid Resources              12,193       (23,967)
                                                                 
Net cash outflow from financing           (20,800)        (2,567)
                                                                 
                                            ______         ______
DECREASE IN CASH                           (1,442)        (5,257)
                                            ______         ______


NOTES:
1. The accounts are prepared under the same accounting policies used for
   the year ended 30 June 2002.
2. The financial information for the year ended 30 June 2002 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 2003 are unqualified and
   will be delivered to the Registrar of Companies following the company's
   Annual General Meeting which will be held at the offices of Standard
   Life, 1 George Street, Edinburgh on Thursday 23 October 2003 at 12 noon.
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%.
5. The final dividend, subject to shareholder approval, will be paid on
   27 October 2003 to shareholders on the register at the close of business
   on 3 October 2003. The ex-dividend date is 1 October 2003.
6. The Annual Report will be posted to shareholders mid September 2003
   and copies will be available from the registered office of the company.


For Edinburgh Small Companies Trust plc
Edinburgh Fund Managers plc, Secretary
Amanda Fraser
Company Secretary
END