Interim Results

Edinburgh Small Companies Trust PLC
23 February 2004

                      EDINBURGH SMALL COMPANIES TRUST PLC

                                INTERIM RESULTS





  INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2003





For further information, please contact:



Manager
Standard Life Investments Limited
1 George Street
Edinburgh
EH2 2LL
Website: www.standardlifeinvestments.com
Telephone: [phone]
Fax: [phone]



EDINBURGH SMALL COMPANIES TRUST


CHAIRMAN'S STATEMENT





The key event of the last six months was the appointment of Standard Life
Investments as the new manager to the trust. I am pleased to report that they
have made significant progress in re-balancing the portfolio since taking over
on 1 September 2003.



Global financial markets continued to show increasing appetite for risk, a
characteristic that has been in place since April 2003. This willingness to take
on risk marked a reversal in investor sentiment that coincided with the
culmination of events in the Middle East. Since then, there has been increased
optimism about the direction of world economies. As a sector that is highly
geared to the improving economic environment, smaller companies have responded
well to this change in outlook.





Performance



The net assets of the trust rose by 15.8% over the period. The trust's
benchmark, the Extended Hoare Govett Index (excluding Investment Trusts) climbed
18.4% in the second half of 2003. However, the share price of the trust rose by
29.3% reflecting a narrowing in the 'discount' of the trust.



The underlying performance of the trust was impacted in the main by two factors.
Firstly, over much of the second half of 2003, investors have focused on taking
on risk, which has resulted in significant gains for financially stretched
companies geared to economic recovery. This meant that robust businesses failed
to make the same headway in an environment that did not favour the manager's
investment process.



Secondly, a significant amount of re-balancing of the portfolio was required to
align the trust with the new manager's investment process. It was thus a busy
period for dealing. I am pleased to say that the cost of this re-alignment was
less than 3% of the value of the trust and the impact on performance was
considerably less than expected. The re-balancing is now complete.



The risk profile has been reduced significantly in combination with a move up
the market capitalisation scale to reflect more closely the benchmark. The value
in companies with a market capitalisation of less than £100 million has been
reduced from 41% to 8%. The managers have taken advantage of the stronger market
for the smallest stocks to exit what are normally illiquid situations. The trust
is focused on companies with robust business models and aligned with the new
manager's investment process.



The new manager also took advantage of the renewed interest in technology stocks
to exit some of the smaller software and data services companies. Likewise, the
heavy exposure to small oil & gas stocks is now much reduced. Sectors where
exposure has been increased include media and healthcare.






Gearing



A further re-purchase of £0.5 million of the 2023 debenture was made. This
currently leaves £18.7 million outstanding. Cash or similar instruments are held
against part of the debenture, leaving net gearing of 12.6%.



The managers have been given discretion to vary the level of the net gearing
between 10% and 20% depending on their view on the outlook for smaller
companies.



Revenue Account



Earnings per share are 0.17p compared to 0.15p in the six months ended 31
December 2002. As in previous years no interim dividend is payable.



Outlook



2004 promises to be another good year for smaller companies although it is
difficult to see a repeat of the returns of 2003 when the benchmark rose by
38.5%.



We believe the Bank of England will raise rates through 2004, in an attempt to
cool the housing market and consumer spending. However, we do not expect rates
to be increased as rapidly as the market expects. Nevertheless, we believe the
turn in rates will be good for the fund's performance. When interest rates rise,
the market tends to focus on companies with robust business franchises that do
well in a less benign economic environment. We expect this change in sentiment
to occur during 2004.



Since the turn of the year, the small companies sector has performed strongly
and this may not be sustained for the rest of the year.  Corporate earnings are
being revised up and the broader economic environment is still supportive. We
are also seeing more merger and acquisition activity, which suggests greater
confidence in the corporate sector and also new issues activity is on the
increase.  Our view is that the more positive environment for smaller companies,
that has been the case over the last year, will remain in place.



Donald MacDonald
Chairman




STATEMENT OF TOTAL RETURN

for the six months ended 31 December 2003 (unaudited)
                                                                  Revenue          Capital            Total
                                                                   £000             £000              £000
Realised net losses on investments                                    -           (12,338)          (12,338)
Unrealised net gains on investments                                   -             19,019            19,019

Total capital gains on investments                                    -              6,681             6,681
Income from investments                                              580                -                580
Interest from AAA money market funds                                 133                -                133
Interest from Treasury Bills                                          28                -                 28
Interest receivable on short term deposits                            69                -                 69
Other income                                                           2                -                  2
Investment management fee                                          (133)             (133)             (266)
Administrative expenses                                            (206)                -              (206)

Net return before finance costs and taxation                         473             6,548             7,021
Interest payable and similar charges                               (358)             (341)             (699)

Return on ordinary activities before taxation                        115             6,207             6,322
Taxation                                                              -                 -                 -

Return on ordinary activities after taxation                         115             6,207             6,322


Dividend in respect of equity shares                                  -                 -                 -

                                                                     115             6,207             6,322

Return per ordinary share                                          0.17p             9.21p             9.38p


_______________________________________________________________________________________

for the six months ended 31 December 2002 (unaudited)
                                                                 Revenue          Capital            Total
                                                                   £000             £000              £000
Realised net losses on investments                                    -           (22,034)          (22,034)
Unrealised net losses on investments                                  -              (720)             (720)

Total capital losses on investments                                   -           (22,754)          (22,754)
Income from investments                                              597                -                597
Interest from AAA money market funds                                 120                -                120
Interest from Treasury Bills                                         122                -                122
Interest receivable on short term deposits                           77                 -                77
Other income                                                          7                 -                 7
Investment management fee                                          (148)             (148)             (296)
Administrative expenses                                            (144)                -              (144)

Net return before finance costs and taxation                        631           (22,902)          (22,271)

Interest payable and similar charges                               (533)           (1,472)           (2,005)

Return on ordinary activities before taxation                        98           (24,374)          (24,276)
Taxation                                                              -                 -                 -

Return on ordinary activities after taxation                         98           (24,374)          (24,276)


Dividend in respect of equity shares                                  -                 -                 -

                                                                     98           (24,374)          (24,276)

Return per ordinary share                                          0.15p          (36.16p)          (36.01p)



for the year ended 30 June 2003 (audited)
                                                                  Revenue          Capital            Total
                                                                    £000             £000              £000
Realised losses on investments                                        -           (50,675)          (50,675)
Unrealised net gains on investments                                   -             31,230            31,230

Total capital losses on investments                                   -           (19,445)          (19,445)
Income from investments                                            1,242                -              1,242
Interest from AAA money market funds                                 221                -                221
Interest from Treasury Bills                                         200                -                200
Interest receivable on short term deposits                           120                -                120
Other income                                                           8                -                  8
Investment management fee                                          (267)             (267)             (534)
Administrative expenses                                            (299)                -              (299)

Net return before finance costs and taxation                       1,125          (19,712)          (18,487)
Interest payable and similar charges                               (895)           (1,834)           (2,729)

Return on ordinary activities before taxation                        330          (21,546)          (21,216)
Taxation                                                              -                 -                 -

Return on ordinary activities after taxation                         330          (21,546)          (21,216)
Dividend in respect of equity shares                               (506)                -              (506)

                                                                   (176)          (21,546)          (21,722)

Return per ordinary share                                          0.49p          (31.97p)          (31.48p)


____________________________________________________________________________


BALANCE SHEET
(unaudited)
                                                    At 31 December          At 30 June         At 31 December
                                                           2003                  2003                 2002
                                                           £000                  £000                 £000
Fixed assets
Investments                                               51,253               45,490              43,919

Current assets
Debtors                                                      209                  505                 689
AAA money market funds                                     8,110                6,800               3,000
Treasury Bills                                                 -                4,970               4,968
Cash and short term deposits                               5,387                1,790               3,977

                                                          13,706               14,065              12,634
Creditors: amounts falling due within one
year
                                                             753                1,065                 602

Net current assets                                        12,953               13,000              12,032

Total assets less current liabilities                     64,206               58,490              55,951


Creditors: amounts falling due after more
than one year
                                                          19,311               19,843              19,858

                                                          44,895               38,647              36,093


Capital and reserves
Called up share capital - equity                         16,851               16,851               16,851
Other reserves                                            28,044               21,796              19,242



Total equity shareholders' funds                          44,895               38,647              36,093


Adjusted net asset value per ordinary                     67.51p               58.29p               54.53p
share




CASHFLOW STATEMENT
(unaudited)




                                                  At 31 December 2003  At 31 December 2002   At 30 June 2003
                                                          £000                 £000                £000

Revenue before finance costs and taxation                          473                 631               1,225
Decrease in accrued income                                          60                   92                 58
Decrease in debtors                                                 15                  11                 (1)
Decrease in creditors                                              (6)                (205)              (178)
Expenses charged to capital                                      (133)                (148)              (267)

Net cash inflow from operating activities                          409                 381                 837
Net cash outflow from servicing of finance                       (741)              (1,506)            (3,918)
Net cash inflow from financial investment                        1,348               8,846              10,752
Equity dividends paid                                            (505)                (506)              (506)

Net cash inflow before financing                                   511               7,215               7,165


Net cash outflow from financing                                  (574)             (22,469)           (20,800)

Management of liquid resources                                   3,660              15,999              12,193

INCREASE IN CASH                                                 3,597                 745             (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.

3.   The statement of total return (incorporating the revenue account), balance
sheet and cashflow statement set out above do not represent full accounts in
accordance with Section 240 of the Companies Act 1985.

4.            No interim dividend has been declared in respect of the year
ending 30 June 2004.

5.   The Interim Report will be posted to shareholders at the end of February
2004 and copies will be available from the registered office of the Company.



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.



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


END




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