Interim Results - 6 Months to 30 September 1999

British Smaller Companies VCT PLC
30 November 1999

                   BRITISH SMALLER COMPANIES VCT plc
                                   
                     INTERIM RESULTS ANNOUNCEMENT
              for the six months ended 30 September 1999

                      Investment criteria widened
                       Further growth predicted

British  Smaller Companies VCT plc ('the Company'), one  of  the  UK's
largest  regionally-based  venture  capital  trusts,  today  announces
interim results for the six months to 30 September 1999 (unaudited).

Financial highlights:

                            Six months ended    Six months ended
                           30 September 1999   30 September 1998
                                                                
Income:                             £448,000            £530,000
Net revenue before tax:             £326,000            £407,000
Net revenue after-tax:              £256,000            £302,000
Return per share:                      1.62p               1.93p
Dividend (net):                        1.55p               1.75p
New qualifying                         £1.4m               £2.4m
investments at cost:

                           as at 30        as at 30     as at 31
                          September  September 1998   March 1999
                               1999
                                                                
Net Assets:                 £13.81m         £15.65m      £15.60m
Net assets per                87.2p           98.8p        98.5p
share:
Number of                        19              16           18
qualifying
investments:
Qualifying                    £8.3m           £5.9m        £8.0m
investments at
cost:

Announcing these interim results, the Chairman, Sir Andrew Hugh Smith,
said he was optimistic about the Company's longer-term prospects.

'We  remain  confident that our existing portfolio will  grow  as  the
current  improvement  in the business cycle progresses,'  he  said.  '
This, together with our continuing strong deal flow and the fact  that
we  are  still only 50% invested, should ensure that our VCT  performs
well in the longer term.'

A  total  of  £8.3m is now invested in 19 companies,  including  £1.4m
invested in four companies during the period under review.

These  investments  comprised £1m in the management buy-in/buy-out  of
First Stop Stationery Ltd; a further £157,000 in TIB plc to enable  it
to  diversify  its activities into the manufacture of  DVD  disks  and
become  one  of  the  first  UK manufacturers  of  DVDs;  £200,000  in
Landround  plc,  the  AIM-listed travel  promotions  company;  and  an
additional  £50,000 in Connaught plc to support the expansion  of  its
building services operations.

During  this  period,  GB International Ltd redeemed  £66,667  of  its
preference shares to schedule.

The  Company's  investment advisers, Yorkshire Fund Managers  Limited,
continue  to  look at large numbers of enquiries.  These  increasingly
include  companies  in service and other high added  value  and  high-
growth  sectors.  The  Board  has  therefore  widened  its  investment
criteria  to  enable the Company to invest in businesses  where  added
value  (broadly  equivalent to gross margin) exceeds £1m  even  though
annual turnover may not, at present, exceed £2.5m.

'The  targets set by the VCT legislation for investment in  qualifying
holdings  for the period to 31 March 2000 have already been exceeded,'
Sir Andrew said.

However, over the past six months, net revenue after tax decreased  to
£256,000 while net asset value fell to 87.2p per share.

The  main  contributor to this was the receivership of Rainbow  Garden
Products  Ltd.  Four other investments failed to perform to  plan  and
were  partially written down during the period.   The balance  of  the
portfolio performed broadly to plan.

The directors have declared an interim dividend of 1.55p per share, so
absorbing most of the distributable income.   The resolution passed at
the  AGM to cancel the Company's share premium account received  Court
approval on 17 November 1999.

Commenting  further on the Company's prospects, Sir Andrew said:  'The
majority of our investments give us cause for optimism, although it is
too early, under our conservative accounting policies, to reflect this
fully in our current valuations.'



For further information, please contact:

Individual         Company                   Telephone
Phil Cammerman     Yorkshire Fund Managers   0113 294 5050
Nick Rodgers       Beeson Gregory            0171 488 4040
David Hardy/       Binns & Co Public         0171 786 9600
Belinda Yates      Relations Ltd             
Simon Mountford    Simon Mountford           0134 784 8609
                   Communications            


CHAIRMAN'S INTERIM STATEMENT

I  am  pleased to present my report for the six months to 30 September
1999.

Investment Operations

Our venture capital investment portfolio has increased to 19 companies
and  a  total of £8.3 million is now invested in qualifying companies.
During  the  period  we invested £1.4 million in 4  companies.   I  am
pleased  to  report  that the targets set by the VCT  legislation  for
investment in qualifying holdings for the period to 31 March 2000 have
already been exceeded.

During  the  period  we invested £1,000,000 in First  Stop  Stationery
Limited.  This was in support of a management buy out combined with  a
management buy in by an experienced retailer.   First Stop operates  a
chain  of 23 small stores in the North West, focusing on a no  frills,
value for money range of stationery and consumables.

An  additional £157,000 was invested alongside another VCT  to  enable
TIB  plc, an existing investment, to diversify its activities into the
manufacture of DVD disks.  This investment has allowed TIB  to  become
one of the first UK manufacturers and gives them the opportunity to be
a major early player in this fast expanding market place.

£200,000  was  invested in the Chester based company,  Landround  plc.
Listed   on  AIM,  Landround  is  successfully  exploring  the  travel
promotions market with partners such as British Airways,  P  &  O  and
Airtours.  Its clients include Vodafone and The Daily Telegraph.

Finally,  an  additional  £50,000 was invested  in  Connaught  plc  to
support the expansion of its buildings services operations.

During  the  period  GB  International Ltd  redeemed  £66,667  of  its
Preference shares to schedule.

The  portfolio  now covers a wide spread of industries across  England
and Wales.  Your investment advisers, Yorkshire Fund Managers Limited,
and their teams based in the regions continue to look at large numbers
of  enquiries.  In  the  current economic climate  these  increasingly
include  companies  in  service and other high added  value  and  high
growth  sectors.  Your directors have therefore adopted an  additional
criterion  that  will  enable us to invest in businesses  where  added
value  (broadly equivalent to gross margin) is in excess of  £1m  even
though annual turnover may not, at present, exceed £2.5m.
Financial Statements

Net  revenue after tax has decreased to £256,000 representing a return
per  share of 1.62 pence compared to £302,000 and 1.93 pence per share
for the corresponding period last year.

During  the  period the net asset value fell by 11.3 pence per  share.
The  major  contributor  to this reduction  was  the  receivership  of
Rainbow  Garden  Products  Limited, the loss  on  capital  account  of
£425,000  being  equivalent  to  2.7  pence  per  share.   Four  other
investments  have  not  so far performed to plan  and  were  partially
written   down  during  the  period.   These  contributed  losses   of
£1,009,000  equivalent to 6.4 pence per share.   The  balance  of  the
portfolio has performed broadly to plan.

Most of the gilt portfolio is in short-dated stock, with two years  or
less to maturity, which is liquidated to fund investments as required.
The  investment  loss  in  the period on this  portfolio  amounted  to
£271,000 or 1.7 pence per share.

Interim Dividend

In  line  with  the  original objectives of  maximising  dividends  to
shareholders your Directors have today declared an interim dividend of
1.55  pence per share (1998, 1.75 pence per share), absorbing most  of
the  distributable income.  The dividend will be paid on  23  December
1999  to shareholders on the register at the close of business  on  10
December 1999

Outlook

The reduction in net asset value is disappointing, as is the fact that
two of our investments have been written off.  However, in those cases
where  a  partial provision has been made, we are generally optimistic
and  are  working  to help management resume the growth  path  we  had
expected.  The majority of our investments give us cause for optimism,
although  it is too early, under our conservative accounting policies,
to reflect this fully in our current valuations.

We  remain  confident that our existing portfolio  will  grow  as  the
current  improvement in the business cycle progresses.  This  together
with  our  continuing strong deal flow and the fact that we are  still
only  50%  invested should ensure that our VCT performs  well  in  the
longer term.

Cancellation of the Share Premium Account

I  am  pleased to report that the resolution which was passed  at  the
Annual  General Meeting on 16 July 1999 to cancel the Company's  Share
Premium Account was approved by the Court on 17 November 1999.

Sir Andrew Hugh Smith
30 November 1999
                                   
                                   
                   BRITISH SMALLER COMPANIES VCT PLC
                    UNAUDITED FINANCIAL STATEMENTS
               For the 6 months ended 30 September 1999
                                   
                                   
Summarised Revenue Statement

                              Unaudited   Unaudited   Audite
                               6 months    6 months   d year
                                  ended       ended    ended
                                     30          30       31
                              September   September    March
                                   1999        1998     1999
                                  £'000       £'000    £'000
                                                            
Income                              488         530    1,101
Administrative expenses                                     
(net of expenses charges          (157)       (123)    (298)
to capital)
                               --------    --------   ------
                                                          
Net profit on ordinary              326         407      803
activities before taxation
                                                            
Taxation                           (35)       (105)    (253)
                               --------    --------   ------
                                                          
Net profit after tax                256         302      550
attributable to
shareholders
                                  =====       =====    =====
Dividends proposed/paid             246         277      553
Dividends per share               1.55p       1.75p    3.49p
Return per share                  1.62p       1.93p    3.50p
                                   


Summarised Balance Sheet

                    Unaudited 6   Unaudited 6  Audited Year
                         months        months         ended
                       ended 30      ended 30      31 March
                      September     September          1999
                           1999          1998         £'000
                          £'000         £'000
                                                           
Fixed assets              7,866         6,074         7,956
Investment                                                 
portfolio
                                                           
Net current               5,943         9,577         7,648
assets
                       --------      --------      --------
Net assets               13,809        15,651        15,604
                          =====         =====         =====
Capital and                                                
reserves
Called up share           1,584         1,584         1,584
capital
Share premium            13,815        13,815        13,815
Capital                       3             3             3
redemption
reserve
Capital reserve         (1,604)           220           201
Revenue reserve              11            29             1
                       --------      --------      --------
Equity                   13,809        15,651        15,604
shareholders'
funds
                          =====         =====         =====
Net asset value           87.2p         98.8p         98.5p
per share




Notes:
1.    The  interim  financial  statements,  which  do  not  constitute
  statutory accounts, have been prepared on a basis consistent with the
  statutory  financial statements for the period ended 31 March  1999.
  They have not been audited. The statutory financial statements for the
  period   ended  31  March  1999  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 1999  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 £256,000
  and on 15,839,838 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 £13,809,000 and 15,839,838 shares in issue at
  30 September 1999.
5.    Unaudited interim accounts, for the purposes of determining  the
  dividend, have been lodged with the Registrar of Companies.
6.    Copies of the interim report are being sent to shareholders  and
  can  be obtained from the Company's registered office: Saint Martins
  House, 210-212 Chapeltown Road, Leeds, LS7 4HZ.