Interim 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 interim results for the six months ended 31 December
2004.


            INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004


  -    Net asset value per share increased by 12.3% from 71.23p to 79.95p

  -    Share price rose by 19.0% from 51.25p to 61.00p

  -    The trust's  benchmark,  the Extended Hoare Govett Smaller  Companies  Index
      (excluding Investment Trusts) increased by 7%

  -    Smaller  companies  markets  continue  to  offer  attractive  investment
       opportunities  in under-researched companies that are often over-looked  by
       mainstream investors



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]

Nathan Brown
CloseWINS, 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

CHAIRMAN'S STATEMENT


During  the  six  month period ended 31 December 2004, the net asset  value  per
share  of  the  trust increased by 12.3% from 71.23p to 79.95p while  the  share
price  rose by 19.0% from 51.25p to 61.00p.  This compares with a 7.0%  increase
in  the  trust's  benchmark, the Extended Hoare Govett Smaller  Companies  Index
(excluding Investment Trusts) over the same period.

The  UK stock market began to move up again in August when it became clear  that
the  top  was  in  sight  for UK base rates. By October,  further  momentum  was
provided by the fall in the price of crude oil. Oil prices fell fully 25% in the
last  quarter  of  the year after reaching an all time high of  more  than  $55.
Smaller quoted companies continued to report buoyant trading conditions across a
wide  range of sectors over the last six months of 2004. Towards the end of  the
year  it  became clear that the UK housing market was at last being affected  by
rising interest rates.

Performance
The  trust  comfortably outperformed its benchmark both in net asset  value  and
share  price terms over the period under review. Net assets rose by  12.3%  over
the  period  but  the share price rose by 19.0% reflecting a  narrowing  in  the
"discount".  This  strong  performance was driven by  some  positive  individual
contributions from our largest holdings. Of particular note was Topps Tiles, the
UK's leading retailer of tiles for kitchens & bathrooms. The shares rose by  50%
over  the  period as the company continued to announce sustained strong  trading
from  this  growth market. A number of other large holdings such as  Victrex  in
speciality chemicals, Northgate in van rental and Majestic Wines exceeded  their
recent earnings expectations. In general the investment style being employed  by
the manager is currently being favoured by the market. The emphasis on investing
in  companies with robust business models helps during more challenging economic
conditions.

The  trust  benefited from participating in three initial public offerings  that
performed  strongly  after  flotation. Public  quotes  are  now  being  seen  as
attractive  sources of finance by small and medium sized companies. This  is  in
marked contrast to the bear market conditions of 2001 to 2003.

Gearing
The  manager  has  been given discretion to vary the level of  the  net  gearing
between 0% and 20% depending on their view on the outlook for smaller companies.
The  level  of gearing at 31 December 2004 was 13.7%. This reflects a cautiously
optimistic view of the outlook for smaller companies over the next year.  Indeed
gearing was raised during the last quarter of 2004 to take advantage of what  is
normally a strong start to the year.

Currently £18.7 million of the 7.75% 2023 debenture is outstanding with no
re-purchases being made in the reporting period.

Revenue Account
Earnings per share have improved to 0.27p compared with 0.17p in the six  months
to  31  December  2003. This reflects higher levels of income  from  short  term
deposits and money market funds and non recurring expenses in the prior  period.
As in previous years, no interim dividend is payable.

Outlook
UK  smaller companies have now risen strongly for nearly two years.  The turning
point  for  the market came in April 2003, which coincided with the end  of  the
Gulf  War  and an improving macroeconomic background.  Since then, the benchmark
index  has  risen by 73.8%.  The question now is whether smaller quoted  company
markets  can  make  progress  from  here.  The  view  of  the  manager  is  that
unquestionably they can, however the level of returns is likely to be lower than
in the two previous years.

The economic backdrop is reasonably supportive, with GDP growth of in excess  of
2% expected for the UK in 2005 and inflation remaining under control. Base rates
are  likely  to  stay at current levels for some time. The  main  cloud  on  the
horizon is the weakening housing market and the collateral damage this may  have
on UK consumer spending. UK smaller companies are significantly exposed to these
areas.

Valuations for smaller companies are currently near long-term averages  although
looking forward they are still lower than for the market as a whole. Profits and
dividend growth is likely to be healthy for smaller companies in 2005 and likely
to be in excess of 10%.

Smaller  companies markets continue to offer attractive investment opportunities
in   under-researched  companies  that  are  often  over-looked  by   mainstream
investors.  It  is indeed possible to find under-valued smaller  companies  with
robust  business  models  operating in growth markets at reasonable  valuations.
The  manager  believes  that the longer term outlook is  encouraging  for  these
businesses and hence the trust.



Donald MacDonald
Chairman

10 February 2005




STATEMENT OF TOTAL RETURN
for the six months ended 31 December 2004 (unaudited)

                                  Revenue    Capital      Total
                                     £000       £000       £000

Realised    net    gains     on         -      1,307      1,307
investments
Unrealised   net    gains    on         -      4,900      4,900
investments
                                  _______   ________   ________

Total    capital    gains    on         -      6,207      6,207
investments
Income from investments               463          -        463
Interest from AAA money  market       193          -        193
funds
Interest from Treasury Bills            -          -          -
Interest  receivable  on  short       154          -        154
term deposits
Other income                            1          -          1
Investment management fee            (140)      (140)      (280)
Administrative expenses              (130)          -      (130)
                                   _______   ________   ________

Net return before finance costs       541      6,067      6,608
and taxation
Interest  payable  and  similar      (356)      (356)      (712)
charges
                                  _______   ________   ________

Return  on  ordinary activities       185      5,711      5,896
before taxation
Taxation                               (2)         -         (2)
                                  _______   ________   ________

Return  on  ordinary activities       183      5,711      5,894
after taxation
Dividend  in respect of  equity         -          -          -
shares
                                  _______   ________   ________

                                      183      5,711      5,894
                                  _______   ________   ________

Return per ordinary share           0.27p      8.47p      8.74p
                                  _______   ________   ________

______________________________________________________________________________________


for the six months ended 31 December 2003 (unaudited)

                                  Revenue    Capital      Total
                                     £000       £000       £000

Realised    net    losses    on         -    (12,338)   (12,338)
investments
Unrealised   net    gains    on         -     19,019     19,019
investments
                                  _______   ________   ________

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

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

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

Return  on  ordinary activities       115      6,207      6,322
after taxation
Dividend  in respect of  equity         -          -          -
shares
                                  _______   ________   ________

                                      115      6,207      6,322
                                  _______   ________   ________

Return per ordinary share           0.17p      9.21p      9.38p
                                  _______   ________   ________

______________________________________________________________________________________

for the year ended 30 June 2004 (audited)

                                   Revenue    Capital      Total
                                      £000       £000       £000

Realised losses on investments           -    (12,361)   (12,361)
Unrealised   net    gains    on          -     22,184     22,184
investments
                                  ________   ________   ________
Total    capital   losses    on          -      9,823      9,823
investments
Income from investments              1,337          -      1,337
Interest from AAA money  market        292          -        292
funds
Interest from Treasury Bills            30          -         30
Interest  receivable  on  short        179          -        179
term deposits
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
Dividend  in respect of  equity       (506)         -       (506)
shares
                                  ________   ________   ________
                                      (18)      8,786      8,768
                                  ________   ________   ________
Return per ordinary share            0.72p     13.03p     13.75p
                                  ________   ________   ________
____________________________________________________________________________


BALANCE SHEET
                                        At 31  At 30 June        At 31
                                     December        June     December
                                         2004        2004         2003
                                         £000        £000         £000
                                  (unaudited)   (audited)  (unaudited)
Fixed assets
Investments                            60,623      53,551       51,253
                                     ________    ________     ________
Current assets
Debtors                                   164         916          209
AAA money market funds                  8,110       8,110        8,110
Treasury Bills                              -           -            -
Cash and short term deposits            4,254       5,386        5,387
                                     ________    ________     ________
                                       12,528      14,412       13,706
Creditors:  amounts falling  due          562       1,252          753
within one year
                                     ________    ________     ________
Net current assets                     11,966      13,160       12,953
                                     ________    ________     ________
Total    assets   less   current       72,589      66,711       64,206
liabilities

Creditors:  amounts falling  due       19,279      19,295       19,311
after more than one year
                                     ________    ________     ________
                                       53,310      47,416       44,895
                                     ________    ________     ________

Capital and reserves
Called up share capital - equity       16,851      16,851       16,851
Other reserves                         36,459      30,565       28,044
                                     ________    ________     ________
Total equity shareholders' funds       53,310      47,416       44,895
                                     ________    ________     ________

Adjusted  net  asset  value  per       79.95p      71.23p       67.51p
ordinary share
                                     ________    ________     ________

___________________________________________________________________________


CASHFLOW STATEMENT


                                   At 31        At 31       At 30
                                December     December        June
                                    2004         2003        2004
                                    £000         £000        £000
                              (unaudited)  (unaudited)   (audited)

Revenue    before   finance          540          473       1,200
costs and taxation
Decrease/(Increase)      in          225           60       (110)
accrued income
Decrease in debtors                   11           15           4
(Decrease)/Increase      in          (13)          (6)         22
creditors
Expenses charged to capital         (140)        (133)       (267)
                                ________     ________    ________
Net    cash   inflow   from          623          409         849
operating activities
Net   cash   outflow   from         (724)        (741)     (1,541)
servicing of finance
Total tax paid                        (2)           -           -
Net   cash   outflow   from         (524)       1,348       1,633
financial investment
Equity dividends paid               (505)        (505)       (506)
                                ________     ________    ________
Net   cash  outflow  before       (1,132)         511         435
financing
Net   cash   outflow   from            -         (574)       (499)
financing

Management    of     liquid            -        3,660       3,660
resources
                                ________     ________    ________
(DECREASE)/INCREASE IN CASH       (1,132)       3,597       3,596
                                ________     ________    ________

NOTES :
1.    The accounts are prepared under the same accounting policies used for  the
      year ended 30 June 2004.
2.    The  financial  information for the year  ended  30  June  2004  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
      2005.
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
END