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 2004.


               PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2004





For further information, please contact:

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


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




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

The Manager
As  intimated a year ago the board decided to appoint Standard Life  Investments
as  investment manager with effect from 1 September 2003. The year under  review
therefore reflects the fact that Standard Life Investments was manager for  part
of the year but also the substantial restructuring of the portfolio.

Portfolio Rebalancing
The board agreed with the new manager that the portfolio should be significantly
repositioned,  to  align  the trust with Standard Life  Investments'  investment
process.  The manager has had to reduce significantly the number of holdings  in
the  sub-£50  million market capitalisation range and raise the  average  market
capitalisation  of the constituents of the trust. The manager also  reduced  the
size  of  some  stakes  in  individual companies  to  allow  greater  investment
flexibility.  This process was largely completed by the end of  2003,  by  which
time  more than 60% of the portfolio had been changed. While there is inevitably
a  cost  associated  with  a restructuring of this magnitude,  the  company  was
fortunate that the strength of the market for small company shares in the fourth
quarter of 2003 kept the costs of the transition below expectations. The overall
outcome  is  that the level of risk and volatility within the portfolio  is  now
much reduced.

Review of Year ended 30 June 2004
Within  a strong market overall, smaller company shares continued to rally  from
the  low  point reached during the Gulf War. Lower market capitalisation  stocks
are  generally  more  geared to the economic cycle. Therefore,  recovery  stocks
performed strongly, particularly in the second half of 2003 as the market became
less  risk averse. This was helped by the sustained period of low interest rates
that  continued  until November. In January 2004, a traditional  cyclical  rally
favoured smaller companies.

A  different  market  psychology was evident from February,  as  interest  rates
started  to  move  up. Investors then favoured lower risk and  more  sustainable
business models. Over the course of the period under review, the Extended  Hoare
Govett  index  rose  by  29.2%. The last three months  of  the  financial  year,
however, brought only a 0.6% rise in the benchmark index.

Performance
Compared  with  the Extended Hoare Govett index, which rose by  29.2%,  the  net
asset  value  of  the  company rose by 22.2%. The main factors  influencing  the
underperformance were the costs involved in the restructuring of  the  portfolio
towards the investment process of the new manager, while in the final quarter of
the  period  under review the oil & gas exploration sector in which the  company
was  underweight showed extreme strength. Over the year the share price of  your
company rose strongly by 36.7%.

Gearing
Following  the  repurchase  for  cancellation of  £0.5  million  of  outstanding
debenture  stock,  there is currently £18.7 million outstanding.  The  potential
gearing of the trust was reduced from 48.9% of shareholders funds to 38.9%  over
the  course of the year. The board asked the new investment manager to  actively
manage  the effective gearing of the trust in a range of 10% to 20%. During  the
period,  the effective gearing was increased to a high of 16.9%, and  was  later
reduced to end the year at 11.5%, reflecting the manager's more cautious outlook
for  markets. The cash held on deposit represents the difference between  actual
and potential gearing.

As  UK interest rates rise, the dilutive effect of the mismatch between interest
payable  on  the 7.75% 2023 debenture and interest receivable on  cash  deposits
will fall. Further repurchases of the debenture may take place but only if it is
advantageous to shareholders. The board believes that the risks inherent in  the
effective gearing are greatly reduced compared with last year.

Discount
The  share price of the company rose by 36.7% to 51.25p by the end of the period
under  review representing a significant narrowing in the discount to net  asset
value from 35.7% to 28.1%.

Revenue Account
Whilst  in general dividends from UK companies grew last year, investment income
for  the trust remained broadly unchanged.  This was mainly as a result  of  the
portfolio rebalancing, which involved buying stocks with lower dividend  yields.
However, holdings are mainly in strong companies with good earnings and dividend
growth  prospects. A resumption of rising investment income is expected  in  the
coming financial year.

The  expense ratio of the trust was lower when compared with last year,  falling
from 1.68% of average shareholders' funds to 1.50%.

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 25
October  2004  to  shareholders on the register at the close of  business  on  8
October 2004.

Following the payment of the dividend, the company will have revenue reserves of
0.9p per share.

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

Board
Iain  Bell  has decided to retire from the board at the annual general  meeting.
The Nomination Committee is currently considering a new appointment.  It is only
fitting  that  I place on record our thanks to Iain for his immense contribution
to   the  board's  deliberations  since  the  inception  of  the  company.   His
contribution will be greatly missed in the future.

Prospects
While  the  next  year is unlikely to show as strong growth in  smaller  company
markets  as the year just ended, there is likely to be measured progress.  Given
that interest rates are rising, it is likely that economic growth in the UK will
slow over the next six to twelve months.

Stock  market sentiment is still fragile and may be susceptible to unpredictable
geopolitical events. On a more positive note, stock market valuations, including
those  of  smaller companies, are not stretched by historical measures  and  are
close to previous averages.

The investment process of the current manager incorporates careful risk controls
and  focuses on strong companies with proven business track records. We  believe
the new manager is able to capitalise on growth while remaining resilient in  an
uncertain world.

Donald MacDonald
Chairman


STATEMENT OF TOTAL RETURN
for the year ended 30 June 2004 (audited)
                                  Revenue    Capital      Total
                                     £000       £000       £000

Realised net losses on                  -    (12,361)   (12,361)
investments
Unrealised net gains on                 -     22,184     22,184
investments
                                   _______  _________  _________


TOTAL CAPITAL LOSSES ON                 -      9,823      9,823
INVESTMENTS

Investment Income                   1,337          -      1,337
Interest from AAA money market        292          -        292
funds
Interest from Treasury Bills           30          -         30
Interest receivable                   179          -        179
Other income                            6          -          6
Investment management fee            (267)      (267)      (534)
Administrative expenses              (377)         -       (377)
                                   _______  _________  _________


Net return before finance costs     1,200      9,556     10,756
and taxation
Interest payable and similar         (712)      (770)    (1,482)
charges
                                   _______  _________  _________


Return on ordinary activities         488      8,786      9,274
before taxation
Taxation                                -          -          -
                                   _______  _________  _________


Return on ordinary activities         488      8,786      9,274
after taxation
Dividends in respect of equity       (506)         -       (506)
shares
                                   _______  _________  _________


Transfer (from)/to reserves           (18)     8,786      8,768
                                   _______  _________  _________

Return per ordinary share           0.72p     13.03p     13.75p
                                   _______  _________  _________

Dividends per ordinary share        0.75p          -      0.75p
                                   _______  _________  _________



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
                                   _______  _________  _________



BALANCE SHEET
(audited)
                                               At 30               At 30
                                                June                June
                                                2004                2003
                                      £000      £000      £000      £000
Fixed assets
Investments                                   53,551              45,490
                                                                  ______
Current assets
Debtors                                916                 505
AAA money market funds               8,110               6,800
Treasury Bills                           -               4,970
Cash and short term deposits         5,386               1,790
                                    ______              ______
                                    14,412              14,065

Creditors: amounts falling due       1,252               1,065
within one year
                                    ______              ______
Net current assets                            13,160              13,000
                                              ______              ______

Total assets less current                     66,711              58,490
liabilities

Creditors: amounts falling due
after more than one year                      19,295              19,843
                                              ______              ______

                                              47,416              38,647
                                              ______              ______

Capital and reserves
Called up share capital                       16,851              16,851
Share premium                                     56                  55
Capital redemption reserve                    17,219              17,219
Warrant reserve                                  777                 777
Special reserve                               28,618              28,618
Capital reserve - unrealised                   2,456             (19,728)
Capital reserve - realised                   (19,167)             (5,769)
Revenue reserve                                  606                 624
                                              ______              ______

Total equity shareholders' funds              47,416              38,647
                                              ______              ______

Adjusted net asset value per                  71.23p              58.29p
share
                                              ______              ______

CASHFLOW STATEMENT
(audited)
                                             For the     For the
                                                year        year
                                               ended       ended
                                             30 June     30 June
                                                2004        2003
                                                £000        £000

Net cash inflow from operating                   849         837
activities

Net cash outflow from servicing of            (1,541)     (3,918)
finance

Net cash inflow from capital expenditure       1,633      10,752
and financial investment

Equity dividend paid                            (506)       (506)

Management of Liquid Resources                 3,660      12,193

Net cash outflow from financing                 (499)    (20,800)
                                               ______      ______

INCREASE/(DECREASE) IN CASH                    3,596      (1,442)
                                               ______      ______



NOTES:
1. The  accounts are prepared under the same accounting policies used for the  year
   ended 30 June 2003.
2. The  financial  information for the year ended 30 June 2003 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  2004 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 21 October 2004 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 25 October
   2004  to  shareholders  on the register at the close of business  on  8  October
   2004. The ex-dividend date is 6 October 2004.
6. The  Annual Report will be posted to shareholders mid September 2004 and  copies
   will be available from the registered office of the company.


For Edinburgh Small Companies Trust plc
Edinburgh Fund Managers plc, Secretary
END