Interim Management Statement

ABERFORTH SMALLER COMPANIES TRUST plc                     

    Interim Management Statement for the three months to 30 September 2010     

Investment Objective

The investment objective of Aberforth Smaller Companies Trust plc (ASCoT) is to
achieve a net asset value total return (with dividends reinvested) greater than
on the RBS Hoare Govett Smaller Companies Index (Excluding Investment
Companies) (HGSC (XIC)) over the long term.

Aberforth Partners LLP are contracted as the Investment Managers and
Secretaries to the Company.

Features

  * During the 3 months to 30 September 2010, the Company's net asset value
    rose by 15.3%. By comparison, the Company's benchmark, the HGSC (XIC)
    Index, rose by 14.1%. All figures are total returns.
   
  * As at 30 September 2010, the share price was 560.5p, representing a
    discount of 16.8% to the net asset value.
   
  * During the 3 months to 30 September 2010, the level of gearing was reduced
    from 9.2% to 7.2%.
   
  * 308,208 shares were purchased for cancellation during the period under
    review for a total consideration of £1,670,639. As at 30 September 2010,
    96,438,792 shares remain in issue.
   
Performance - Total Returns

Periods to 30 September 2010

                      3 Months      6 Months      1 Year         3 Years       
                                                                               
ASCoT Share Price     +9.4%         +3.7%         +4.3 %         -7.1%         
                                                                               
ASCoT NAV             +15.3%        +8.5%         +10.1%         -8.1%         
                                                                               
HGSC (XIC)            +14.1%        +6.5%         +16.0%         +3.3%         

Note: Past performance is not a guide to future performance


Top 10 Holdings                     % of Investment Portfolio                  
                                                                               
As at 30 September 2010                                                        
                                                                               
JD Sports Fashion                                    3.4  
                                                                               
e2v technologies                                     2.8  
                                                                               
Spectris                                             2.6  
                                                                               
JKX Oil & Gas                                        2.5  
                                                                               
RPC Group                                            2.5  
                                                                               
Huntsworth                                           2.4  
                                                                               
Beazley                                              2.4  
                                                                               
RPS Group                                            2.2  
                                                                               
Tullett Prebon                                       2.2  
                                                                               
Punch Taverns                                        2.1  
                                                    ____                                
                                                    25.1  
                                                    ____ 

Size Distribution across FTSE Indices

As at 30 September 2010

                                               HGSC (XIC)                 ASCoT
                                                  % Total                %Total
                                                                
FTSE 100                                              0.0                   0.0
                                                                
FTSE 250                                             75.3                  46.1
                                                               
FTSE SmallCap                                        18.8                  43.8
                                                               
FTSE Fledgling                                        1.7                   4.5
                                                                
Other                                                 4.2                   5.6
                                                    _____                 _____          
                                                    100.0                 100.0


Financial Position                                   As at                As at
                                         30 September 2010         30 June 2010
                                                                               
Fixed Assets: Investments at bid price             £697.0m              £617.3m
                                                                               
Net Liabilities                                   £(47.1m)             £(51.8m)
                                                                               
Total Shareholders' Funds                          £649.9m              £565.5m
                                                                               
Net Asset Value                                    673.87p              584.56p
                                                                               
Share Price                                        560.50p              512.50p
                                                                               
Discount                                             16.8%                12.3%
                                                                               
Shares in Issue                                 96,438,792           96,747,000
                                                                               
Market Capitalisation                              £540.5m              £495.8m
                                                                               
Gearing                                               7.2%                 9.2%


General Information

Management Fee (p.a.)                                                     0.80%
                                                                               
Total Expense Ratio (2009 -p.a.)                                          0.85%
                                                                               
Launch Date                                                    10 December 1990

Further Information

Further information regarding the Company, including any share buybacks and the
most recently published net asset value can be found on the following website:
www.aberforth.co.uk

Contact

David Holland (Tel: [phone])

Aberforth Partners LLP, Secretaries, 5 October 2010

END