Results from 6 April 1999 to 31 January 2000

BFS Small Co Div Tst PLC
29 February 2000

                                                                              
                  BFS SMALL COMPANIES DIVIDEND TRUST PLC                    

            PRELIMINARY ANNOUNCEMENT OF UNAUDITED INITIAL RESULTS             

The Directors announce the unaudited statement of consolidated results for the
period 6 April 1999 to 31 January 2000 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN (Incorporating the Revenue Account)


                                           Period to 31 Jan 2000

                                         Revenue   Capital    Total           
                                           £'000     £'000    £'000

Gains on investments                                   496      496
 
Dividends and interest                      1,488        -    1,488
Investment management fee                     (75)    (112)    (187)
Other expenses                               (128)      (3)    (131)
                                            -----     -----    -----    

Net return before finance
 costs and taxation                         1,285      381    1,666

Interest payable and
 similar charges                              (50)     (75)    (125)
Appropriations in respect of :
 Zero Dividend Preference shares                -     (356)    (356)
 Preference shares                              -       (2)      (2)
 Issue costs of Zero Dividend
 Preference shares                              -      (23)     (23)
                                            -----      -----   -----   

Return on ordinary                          
 activities before taxation                 1,235      (75)    1,160
Taxation on 
 ordinary activities                           (1)       -        (1)
                                            -----     -----    -----     

Return on ordinary
 activities after 
 taxation for the period                    1,234      (75)    1,159          
        

                                           
  
First interim dividend                      
 paid of 2.00p                               (300)       -      (300)         
                      
Second interim dividend
 paid of 2.00p                               (300)       -      (300)

Third interim dividend
 proposed of 2.00p                           (300)       -      (300)         
                      
                                            -----     -----    -----   
Transfer to/(from) reserves                   334       (75)     259 
                                            =====     =====    =====    


                                            pence    pence    pence
Return per share:
 Ordinary Share                              8.23    (0.50)    7.73
 Zero Dividend Preference Share                 -     5.70     5.70
 Preference Share                               -     5.70     5.70
                                             =====    =====    =====


* The revenue column of this statement is the revenue column of the Group.
The accounts have been prepared on the basis of the accounting policies set
out in the Listing Particulars which have been delivered to the Registrar of
Companies.


SUMMARISED BALANCE SHEET
                                                    As at
                                                   31 Jan
                                                     2000
                                                    £'000

Investments                                        25,132                     
Net current liabilities                            (4,061)
                                                   ------

Total assets less current
 liabilities                                       21,071                     
Creditors- amounts falling due
 after more than one year                          (6,412)                    
   
                                                   ------
Total net assets                                   14,659
                                                   ======

Net asset value per share                                
 at 31 January 2000:                                pence

Ordinary                                            93.99                     
Zero Dividend Preference                           105.70                     
Preference                                         105.70 


SUMMARISED STATEMENT OF CASH FLOWS
  Period 6 April 1999 to 31 January 2000 
                                                   £'000
Net cash inflow from operating activities          1,152
                                                    ----
Servicing of finance
 Interest paid                                      (109)
                                                    ----
Net cash outflow from servicing of finance          (109)
                                                    ----
Capital expenditure and financial expenditure
 Purchases of investments                        (29,568)
 Sales of investments                              5,432
                                                    ----
Net cash outflow from capital expenditure
 and financial investments                       (24,136)
                                                    ----
Equity dividends paid                               (600)
                                                    ----
Net cash outflow before financing                (23,693)
                                                    ----
Financing
  Issue of Ordinary shares                       (15,000)
  Issue of Zero Dividend Preference shares        (6,250)
  Issue of Preference shares                         (31)
  Expenses of issue                                  850
                                                    ----
Net cash inflow from financing                   (20,431)
                                                  -------
Decrease in cash                                  (3,262)                     
                                                  -------  
                                                 (23,693)
                                                  -------         
                                                     
                                     

NOTE

1.The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985.

2.The Directors have declared a third interim dividend of 2p net per Ordinary
share, payable on 31 March 2000 to the holders of Ordinary shares on the
Register at 10 March 2000.

3.The Placing document indicated that on the basis of the then current market
conditions and bases and assumptions contained in the document that net
dividends on the Ordinary shares in respect of the first accounting period to
30 April 2000 will total 8.3p. On current projections this forecast will be
met.

4.The revenue return per Ordinary share is based on earnings of £1,234,000 and
on 15,000,000 Ordinary shares in issue throughout the period.

5. The capital return per Ordinary share is based on net capital losses of
£75,000 and on 15,000,000 Ordinary shares in issue throughout the period.

6. An amount of £190,000 has been charged to capital in respect of management
fees, other expenses and interest in accordance with accounting policy.

7. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust
company set out in section 842 of the Income and Corporation Tax Act 1988.

8. There are 6,250,000 Zero Dividend Preference shares in issue. They have an
initial capital entitlement of £1.00 per share, growing to £1.8463 on 30th
April 2007. The accrued entitlement as at 31 January 2000 was 105.70 per share
and the total amount accrued of £356,000 has been charged to capital.

9. The net asset values per share are calculated in accordance with the
Company's Articles of Association, whilst figures shown in the summarised
Balance Sheet are in accordance with FRS4.

10. The Financial Statements have been prepared in accordance with Financial
Reporting Standard No.16: Current Tax. This states that UK dividends should be
disclosed excluding their associated tax credit. This reduces the figures
shown for income and taxation but has no effect on the return on ordinary
activities after taxation.