Interim Results

British Smaller Companies VCT PLC
27 November 2000


BRITISH SMALLER COMPANIES VCT plc

          Interim results for the six months to 30th September 2000

                  *        £1.8m invested during the period

                  *        Investment policy to be extended


British Smaller Companies VCT plc ('the Company') today announces interim
results for the six months to 30th September 2000.


FINANCIAL HIGHLIGHTS


                                     Unaudited      Unaudited       Audited

                                    6 months to    6 months to   12 months to

                                   30th Sept 2000   30th Sept   31st March 2000
                                                      1999

Income:                                  £373,000      £448,000        £860,000
Net return after tax:                    £195,000      £256,000        £502,000
Return per share:                           1.23p         1.62p           3.17p
Total return per share:                   (3.39)p       (9.78)p         (5.79)p
Total dividend:                              1.2p         1.55p           3.15p
Net assets:                               £13.42m       £13.81m         £14.19m
Net asset value per share:                  85.0p         87.2p           89.6p
Number of qualifying investments:              24            19              19
Value of qualifying investments:           £8.55m        £7.87m          £8.40m



INVESTMENTS

Announcing the results, the Chairman, Sir Andrew Hugh Smith, said that the
period had continued to be one of consolidation.  During the six months to
30th September, the Company invested £1.8m in five companies, bringing the
total amount invested to £12.3m.

The new investments included £500,000 in the MBO of North-West based Sheet
Piling Limited, £500,000 in the management buy-in at Warwick-based food
machinery manufacturer Baynflax Limited, £300,000 in the £1.9m MBO of JDA
Group Limited, the Bradford direct marketing agency, £250,000 in dental
service provider Oasis Healthcare plc at the time of its admission to AIM and
£250,000 in Voxar Limited, the Edinburgh-based software producer.


NEW INVESTMENT POLICY

With about £7m available to invest, the Company has the capacity to make a
significant number of further investments and is proposing to extend the scope
of its investment policy to include technology companies.  This is an area in
which Yorkshire Fund Managers, the investment adviser to the Company, has been
expanding its investment management resources.

The Board has decided to extend the investment policy because it believes it
is in shareholders' interests to diversify away from the risks associated with
smaller companies in the traditional industries.  These risks stem from the
significant changes that have taken place over the past five years since the
Company was launched and have resulted in increased pressure on the profits of
these companies, thereby reducing their value.

'Your Board is firmly of the view that, subject to careful selection, there
are more attractive investment opportunities in the development and
application of new technologies than in more traditional business activities,
and that this is an area which offers shareholders greater potential for
significant capital growth,' Sir Andrew explained.

As a result of the proposed change in investment policy,  Bob Pettigrew, the
executive chairman of Scientific Generics, which acts as technology adviser to
the British Smaller Technology Companies VCT, has accepted an invitation to
join the Board.  The Generics Group is a leading integrated development,
business consulting and investment organisation.  It identifies and develops
emerging science and technology and provides customised technology solutions
and strategic advice to UK and international corporations.  It is envisaged
that the Company will invest alongside British Smaller Technology Companies
VCT and its successor fund, British Smaller Technology Companies VCT 2, as
well as in appropriate new AIM issues.



REALISATIONS

As detailed in the annual report sent to shareholders in June the loan stock
of £561,000 in International Resources Group Limited was fully repaid for a
total consideration of £952,000 on 31 May 2000.  This equated to a premium of
70% and an internal rate of return of 32.5%.  The company in which we hold a
7% equity stake, continues to progress and expand.

On 8 September 2000, GB International Limited redeemed the remaining
preference shares, amounting to £67,000, held by your VCT.



PERFORMANCE

The Chairman said the overall return per share was a loss of 3.39p per share.
Progress during the period had been held back mainly by the poor performance
of three particular investments, two of which have been fully provided for.



DIVIDEND

An interim dividend of 1.2p per share (1999: 1.55p) will be paid on 20
December 2000 to shareholders on the register on 8 December 2000.



OUTLOOK

Commenting on the Company's prospects for the current year, the Chairman said:

'With the increased resource provided by your investment advisers, the overall
performance of the portfolio is now showing some improvement.  I also believe
that the adoption of the revised investment policy will increase the rate of
investment and improve the prospects for achieving capital growth over the
medium term.'


For further information, please contact:
Phil Cammerman              Yorkshire Fund Managers Ltd      Tel: [phone]
David Hardy/Simon Ellis          Binns & Co PR Ltd           Tel: [phone]
Simon Mountford            Simon Mountford Communications    Tel:  [phone]


CHAIRMAN'S STATEMENT

The 6 months period to 30 September 2000 has continued to be one of
consolidation for your company.  During this period, the directors have kept
the investment policy under review and their conclusions from this review are
set out below.



REVIEW OF INVESTMENT POLICY

Since the company was launched almost 5 years ago, many changes have taken
place in the economy - particularly as they relate to the smaller company
market place in which British Smaller Companies VCT operates.  Notably, the
margin pressures on so called old economy businesses have intensified, partly
because of the strength of sterling but also because of competitive pressures
from the globalisation of markets of every kind and from the introduction of
new technologies.  The resulting trend in this sector is for profits to be
squeezed, thereby reducing shareholder value and because of this the board
wishes to extend the scope of the investment policy.  We believe it is in
shareholders' interests to seek to diversify away from these risks.

As many of our shareholders are aware, the investment adviser to the VCT has
been expanding its investment management resources, particularly within the
new economy sector.  It, together with Cambridge based Generics Group Limited,
who act as its technology adviser, has successfully funded and is now managing
British Smaller Technology Companies VCT and has announced the launch of
British Smaller Technology Companies VCT 2.  The Generics Group is a leading
integrated development, business consulting and investment organisation.  It
identifies and develops emerging science and technology and provides
customised technology solutions and strategic advice to UK and international
corporations.  Your Board is firmly of the view that subject to careful
selection there are more attractive investment opportunities in the
development and application of new technologies than in more traditional
business activities, and that this is an area which offers shareholders
greater potential for significant capital growth.  Your Board has therefore
decided to extend our investment policy to include investments of this kind.

With around £7 million available to invest we have the capacity to make a
significant number of further investments. Your Board believes that adoption
of this policy should enhance total returns to our Shareholders.

I have asked Bob Pettigrew, Executive Chairman of Scientific Generics, to join
our Board, an invitation which he has accepted.  It is envisaged that your VCT
will additionally make investments alongside British Smaller Technology
Companies VCT and its successor fund as well as in appropriate new AIM issues.



INVESTMENTS

During the period we invested £1.8 million in 5 companies.  £500,000 was
invested in the North West based Sheet Piling Limited as part of a package to
fund the MBO from its parent.  The company provides specialist services to the
civil engineering contractors in that region.

Baynflax Limited, based in Warwick is a manufacturer of food machinery and
received £500,000 of funding to effect a management buy-in and provide working
capital.

£300,000 was invested in JDA Group Limited, a direct marketing advertising
agency based in Bradford.  The funding was used as part of a £1.9 million
buyout of the company founder by the incumbent management team.

Oasis Healthcare plc, a provider of dental care services to private and NHS
patients in the UK, raised £6 million in a placing and public offer for
ordinary shares on its admission onto AIM in July, of which £250,000 was
invested by your VCT.

£250,000 was invested in Voxar Limited, the Edinburgh based developer of
software products that are used in applications for 3D medical imaging by
either embedding in OEM's offerings or as a stand alone PC version.  Voxar is
an existing investment of the British Smaller Technology Companies VCT which
also invested in this funding round.



REALISATIONS

As detailed in the annual report sent to shareholders in June the loan stock
of £561,000 in International Resources Group Limited was fully repaid for a
total consideration of £952,000 on 31 May 2000.  This equated to a premium of
70% and an internal rate of return of 32.5%.  The company continues to
progress and expand and we continue to hold a 7% equity stake in the company.

On 8 September 2000, GB International Limited redeemed the remaining
preference shares, amounting to £67,000, held by your VCT.



FINANCIAL STATEMENTS AND DIVIDEND

The net return after tax for the period was £195,000 (1999: £256,000).  This
corresponds to 1.23p per share (1999: 1.62p per share).

The overall return per share was a loss of 3.39p per share (1999: 9.78p loss
per share).  In noting this, progress during the period has been held back
mainly by the poor performance of three particular investments, two of which
have been fully provided for.

Your Board recommends an interim dividend of 1.2p per share (1999: 1.55p per
share).  The dividend will be paid on 20 December 2000 to shareholders in
respect of shares on the register on 8 December 2000.

I am pleased to report that your company is in line to meet the relevant VCT
qualification targets for the period to 31st March 2001.



OUTLOOK

With the increased resource provided by your Investment Adviser the overall
performance of the portfolio is showing signs of some improvement. Whilst the
short-term is expected to be a period of stability, I believe that the
adoption of the revised investment policy will increase the rate of investment
and improve the prospects for achieving capital growth over the medium term.


Sir Andrew Hugh Smith

27 November 2000



6 months ended 30 September 2000


Summarised Revenue account

                                                Unaudited    Unaudited  Audited

                                                 6 months     6 months     Year

                                                    ended        ended    ended

                                             30 September 30 September 31 March
                                                

PRIVATE                                              2000         1999     2000
                                       Notes        £'000        £'000    £'000

Gross revenue                                         373          448      860
Administrative expenses                             (151)        (157)    (304)

Net revenue before taxation                           222          291      556
Taxation                                 2           (27)         (35)     (54)

Net revenue after taxation                            195          256      502

Dividends payable on Ordinary shares                (189)        (246)    (499)

Transfer to revenue reserve                             6           10        3


Return per Ordinary share                3          1.23p        1.62p    3.17p

Fully diluted return per Ordinary                   1.23p        1.62p    3.17p
share








6 months ended 30 September 2000





Summarised Balance sheet




                                                Unaudited    Unaudited  Audited

                                             30 September 30 September 31 March

PRIVATE                                 Notes         2000        1999     2000
                                                     £'000       £'000    £'000
Fixed assets
Investment Portfolio                                 8,553       7,866    8,399

Current assets
Short-term Investments                               4,160       5,651    5,472
Debtors                                                328         461      610
Cash and short term deposits                           622         140       21
                                                     5,110       6,252    6,103

Creditors: Amounts payable within one                (246)       (309)    (314)
year

Net current assets                                   4,864       5,943    5,789

Total net assets                                    13,417      13,809   14,188

Capital and reserves
Called up share capital                              1,578       1,584    1,584
Share premium account                                    -      13,815        -
Capital redemption reserve                               9           3        3
Capital reserve                                    (1,950)     (1,604)  (1,218)
Special reserve                                     13,770           -   13,815
Revenue reserve                                         10          11        4
                                                    ______      ______   ______
Equity shareholders' funds                          13,417      13,809   14,188

Net asset value per share
Ordinary shares                           4          85.0p       87.2p    89.6p








6 months ended 30 September 2000



Summarised Cash Flow Statement


                                         Unaudited       Unaudited      Audited
                                          6 months        6 months         Year
                                             ended           ended        ended
                                      30 September    30 September     31 March
                                              2000            1999         2000
                                             £'000           £'000        £'000

Net cash inflow  from operating                302             139          140
activities

Taxation
Tax repayment received                          71               -            -
Advance corporation tax paid                     -            (40)         (40)
Net Tax Received (Paid)                         71            (40)         (40)

Investing Activities
Purchase of investments                    (1,800)         (1,411)      (2,338)
Proceeds from disposal of investment         1,013              67          986
Net cash outflow from investing              (787)         (1,344)      (1,352)
activities

Equity dividends paid to shareholders        (253)            (38)       ( 284)

Net cash outflow before use of liquid
resources and financing
                                             (667)         (1,283)      (1,536)


Management of liquid resources
Purchase of fixed interest government            -               -        (456)
stocks
Proceeds from the sale of fixed interest
government stocks                            1,313             966        1,556
Net cash inflow from management of
liquid resources                             1,313             966        1,100

Financing
Purchase of own shares                        (45)               -            -
                                             _____            ____         ____
Net cash outflow from financing               (45)               -            -
activities                                                                    

Increase (decrease) in cash                    601           (317)        (436)









Notes to the interim financial statements



1.       The interim financial statements have been prepared on a basis
consistent with the statutory financial statements for the period ended 31
March 2000.  The interim financial statements, which have been approved by the
directors, are unaudited and do not constitute full financial statements as
defined in section 240 of the Companies Act 1985.  The comparative figures for
the period ended 31 March 2000 do not constitute full financial statements and
have been extracted from the Company's financial statements for the period
ended 31 March 2000 which have been reported upon without qualification by the
auditors and have been delivered to the Registrar of Companies.


2.       The taxation charge for the 6 months ended 30 September 2000 is based
on an estimated effective tax rate for the full year ending 31 March 2000.


3.       The return per Ordinary share is based on net revenue from ordinary
activities after tax attributable to shareholders of £195,000 and on
15,816,559  shares, being the weighted average number of shares in issue
during the period.


4.       The net asset value per Ordinary share is calculated on attributable
assets of £13,417,000 and 15,779,838 shares in issue at 30 September 2000.


5.       Unaudited interim accounts will be lodged with the Registrar of
Companies.


6.      Copies of the interim report are being set to shareholders and can be
obtained from the Company's registered office: Saint Martins House, 210-212
Chapeltown Road, Leeds, LS7 4HZ.