Interim Results - 6 Months to 30 September 1999

Foreign & Colonial Smaller Co's PLC
21 December 1999



Contact:  Andrew Barker
          Foreign & Colonial Management 0171 628 8000

          Claire Barry
          Financial Dynamics            0171 831 3113



                   FOREIGN & COLONIAL SMALLER COMPANIES PLC
                                       
                          Unaudited Interim Statement
                     for the half-year to 31 October 1999
                                       
                                       

SUMMARY OF RESULTS

                         6 months to      12 months to     % change
                         31 Oct 1999     30 April 1999
                                           (restated)
Net assets                 £270.6m          £265.4m          +1.94
Net asset value per                                            
share (prior charges                                           
at nominal)                274.63p          255.28p          +7.58
Net asset value per                                            
share(prior charges                                            
at market value)           269.50p          249.55p          +7.99
Share price                218.00p          203.50p          +7.13

                                                               
                         6 months to      6 months to      % change
                         31 Oct 1999      31 Oct 1998
                                           (restated)
Earnings per share          2.42p            2.64p           -8.33
Dividends per share         1.25p            1.12p          +11.61




Highlights

- Net asset value per share rose by 7.6% to 274.63p, and share price
  increased by 7.1 % to 218.00 pence - both the above results exceeded the
  Company's main benchmark, the Extended Hoare Govett Smaller Companies Index
  which rose by 2.7%;
- The interim dividend has increased by 11.61% to 1.25p (30 April 1999 :
  1.12p);
- Forecast final dividend of 2.50p.
- During the period May 1999-October 1999 the Company has bought back
  5.45million shares at a discount to NAV amounting in total to £2.7m. The
  Company intends to continue its buy back  programme as long as it continues
  to enhance shareholder value;
- The Company is one of five Foreign & Colonial investment trusts to be
  listed on the Frankfurt Stock Exchange - the first investment trusts ever to
  be quoted on a European Exchange.
- In the UK, the Company is expanding its marketing, in continued support
  of the investment trust industry-wide 'its' marketing campaign; initial
  results are encouraging.



FOREIGN & COLONIAL SMALLER COMPANIES PLC
Unaudited Interim Statement of results for the half-year to 31 October 1999
                                       
About Your Investment Trust
1999 has been proving a strong year for your investment trust. Since the
beginning of January, when the share price was 163p it has risen by over 50%
to 247p in mid-December. The launch of this Company on to the Frankfurt Stock
Exchange will give us access to a new market of European savers in the coming
year.

This investment trust is one of the very few to offer access to smaller
companies worldwide, through the expertise of fund managers in touch with
these growing companies in all the main economies.  By investing in the United
States, Europe and the Far East as well as in the United Kingdom, we have a
wider choice of opportunities in fluctuating markets.  Yet again, this has
proved to our advantage.  In the period under review we have benefited
particularly from our Japanese investment decisions; in sterling terms, the
value of our Japanese portfolio rose 67.3% in our first half year.

A substantial part of the rise in our share price has occurred since October.
However, in the first six months of our year:

- Net asset value (NAV) per share rose by 7.6%, to 274.63 pence*; well
  ahead of our smaller companies benchmark and of the main market indices;
- The share price rose 7.1%, to 218 pence.
- We have increased our interim dividend by 11.6%, to 1.25 pence. And we
  are forecasting a final dividend increase on the same scale, to 3.75 pence
  per share, which would be the 30th consecutive annual increase.

During this period our benchmark, the Extended Hoare Govett Smaller Companies
Index, rose 2.7%, while the FTSE-All Share index fell by 4.1%.


Investment decisions

The most important moves we made in the first half of our year were to take
money out of UK equities and add to our equity portfolios in Continental
Europe, Japan and the United States.

Overall, we made a further net investment of £6.1 million in equities
worldwide.  We kept most of our yen borrowings and through investing more
money in Japan, we benefited not only from the strengthening yen but also from
the rising stock market.


Gearing and buy-backs

We have also taken advantage of our ability, as an investment trust, to 'gear
up'.  A combination of net investment in other equities and the purchase of
our own shares has increased our gearing (prior charges at market value) from
4.4% to 10.6% in the first half year.

Our discount has enabled us to increase net asset value per share by buying
back a substantial tranche of our own shares.  Between May and October we
bought 5.45 million shares, at a discount to NAV amounting in total to £2.7
million.

Share buy-backs do not automatically reduce the discount; indeed, by
increasing NAV per share their first-round effect is to make the discount
wider.  Our discount, however, ended the first half-year much where it began,
at 20.6%, as both our NAV and our share price rose broadly in line with each
other.

Provided that we can continue to enhance NAV - we remain strongly committed to
a programme of buy backs, having taken the necessary authority at our AGM to
buy up to 15% this year and to continue this programme in the future.


*Prior charges at nominal value



Investment performance

As ever, performance has varied between the different markets in which we are
invested.  While last year, our outperformance in the United States and
continental Europe was particularly marked, this year we lagged behind the
local indices in both markets, while outperforming strongly in Japan and the
rest of the Far East.  There we benefited from our high technology
investments, although we did less well in the United Kingdom.  Looking
forward, we have a reasonable weighting in technology stocks but retain a
prudent approach to investment in already highly valued companies.


Economic outlook

We have now seen interest rates rise in the United States, the United Kingdom
and continental Europe.  There is some anxiety about the rise in asset prices
in the United States, and financial markets are already discounting further
rises, but fears of global recession have faded with recovery in the Far East
and signs of growth in continental Europe.  Corporate restructuring and the
weight of money flowing into stock markets continue to exert bullish pressure
on share prices, although there has been increasing concentration on a narrow
group.  Investing in a portfolio of smaller companies, with long-term growth
potential is, we believe, a good way of guarding against over-dependence on a
few highly-valued stocks.


Dividend policy

Earnings are lower primarily as a result of the reduction in interest income.
We are more fully invested than we were at the year end. However we are able
to increase our dividend substantially - by nearly 10% more than inflation.
Our revenue reserve is strong. And the change in our accounting policy, which
I mentioned in my year-end statement, has given us greater flexibility.  It
enables us to increase dividends while at the same time raising the level of
investment in lower-yielding stock with good growth potential.


A wider market

Foreign & Colonial - which created the world's first collective investment
vehicle in 1868 - has always been in the lead in identifying new sources of
investor demand for investment trusts.  This year is no exception:

- Our Savings Plan and Pension Plan offer a cheap and efficient way to buy
  shares. To find out more, please call 020 7454 1415, or email
  [e-mail]

- We offer an Individual Savings Account which enables investors to make
  use of the new government scheme for tax efficient savings. To find out
  more, please call 020 7454 1415, or email [e-mail].

- We are taking part in the 'its' advertising campaign of the Association
  of Investment Trust Companies. It is early days but initial results are
  encouraging. We will be monitoring its effects carefully.

- As one of the group's five largest investment trusts, Foreign & Colonial
  Smaller Companies is breaking new ground in Europe.  We have just received
  the necessary  regulatory approval to be listed on the Frankfurt Stock
  Exchange.  These are the first investment trusts to be quoted on a
  Continental European Stock Exchange.

We  believe  that  the investment trust vehicle, with its low-cost  structure,
will  prove  appealing  to  the rapidly-growing German  savings  market.   The
worldwide  range  of this trust is also likely to prove much more  interesting
than  a  smaller companies fund focused entirely on the UK.  This  development
will  bring investors throughout Euroland into our market. The German  listing
compliments the other initiatives we are taking in the UK putting your Company
in a strong position for the future.


Sarah Hogg
Chairman
December 1999



FOREIGN & COLONIAL SMALLER COMPANIES PLC
Unaudited Interim Statement of results for the half-year to 31 October 1999

ASSETS
Attributable to equity shareholders

                       31 October 1999    31 October 1998    30 April 1999
                            £000s              £000s             £000s
Net assets                 270,594            222,375           265,440
Preference shares                                                   
(non-equity)                  -                   600              -
Net assets                                                          
attributable to                                                     
equity shareholders        270,594            221,775           265,440
Net asset value per                                                 
share                      274.63              211.76            255.28





FOREIGN & COLONIAL SMALLER COMPANIES  PLC
Unaudited Interim Statement of results for the half-year to 31 October 1999


                 6 months to 31 October 1999    6 months to 31 October 1998
                 Revenue   Capital      Total   Revenue   Capital       Total
                  £'000s    £'000s     £'000s    £'000s    £'000s      £'000s
Gains                                                                        
/(losses) on                                                                 
investments                 18,521     18,521         -  (38,992)    (38,992)
Exchange gains                                                               
and losses on                                                                
currency                                                                     
balances                   (1,652)    (1,652)         -   (1,875)     (1,875)
Income             3,849         -      3,849     4,279         -       4,279
Management fee     (184)     (429)      (613)     (169)     (396)       (565)
Other expenses     (301)       (8)      (309)     (238)         1       (237)
Net return                                                                   
before finance                                                               
costs and                                                                    
taxation           3,364    16,432     19,796     3,872  (41,262)    (37,390)
Interest                                                                     
payable and                                                                  
similar                                                                      
charges            (238)     (554)      (792)     (240)     (560)       (800)
Return on                                                                    
ordinary                                                                     
Activities                                                                   
before                                                                       
taxation           3,126    15,878     19,004     3,632  (41,822)    (38,190)
Taxation on                                                                  
ordinary                                                                     
activities         (652)       295      (357)     (851)       296       (555)
Return on                                                                    
ordinary                                                                     
activities                                                                   
after taxation     2,474    16,173     18,647     2,781  (41,526)    (38,745)
Dividend on                                                                  
preference                                                                   
shares (non-                                                                 
equity)                -         -          -      (13)         -        (13)
Return             2,474    16,173     18,647     2,768  (41,526)    (38,758)
attributable to
equity
shareholders
Dividend on                                                                  
ordinary
shares
(equity)
Interim of                                                                   
1.25p            (1,225)         -    (1,225)   (1,173)         -     (1,173)
(1998 - 1.12p)
Amount                                                                       
transferred                                                                  
to/ (from)                                                                   
reserves           1,249    16,173     17,422     1,595  (41,526)    (39,931)
Return per                                                                   
ordinary share                                                               
- pence             2.42     15.84      18.26      2.64   (39.65)     (37.01)

The revenue column of this statement is the profit and loss account of the
Company.

The interim financial statements have been prepared on the basis of
accounting policies set out in the Company's financial statements at 31
October 1999.

The interim dividend of 1.25p will be paid on 1 February 2000 to shareholders
registered on 6 January 2000.

The interim report will be posted to shareholders on or around 10 January
2000 and copies may be obtained during normal business hours from the
Company's Registered Office, Exchange House, Primrose Street, London EC2A 2NY
thereafter.

By order of the Board
Foreign & Colonial Management Limited - Secretary
20 December 1999