1st Quarter Results

BFS SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

The Directors announce the unaudited statement of consolidated results for the
period

1 May 2002 to 31 July 2002 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2002 to               1 May 2001 to
                                                                             
                                     31 July 2002                31 July 2001
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
(Losses)/ gains on           -   (2,596)  (2,596)        -      791      791 
investments                                                                  
                                                                             
Dividends and              577        -      577       617        -      617 
interest                                                                     
                                                                             
Investment                 (32)     (48)     (80)      (32)     (48)     (80)
management fee                                                               
                                                                             
Other expenses             (61)       -      (61)      (49)       -      (49)
                                                                             
Net return before                                                            
                                                                             
finance costs and          484   (2,644)  (2,160)      536      743    1,279 
taxation                                                                     
                                                                             
Interest payable and       (35)     (53)     (88)      (43)     (64)    (107)
similar charges                                                              
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (154)    (154)        -     (142)    (142)
Preference shares                                                            
                                                                             
- Preference shares          -       (1)      (1)        -       (1)      (1)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -       (8)      (8)        -       (8)      (8)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after           449   (2,860)  (2,411)      493      528    1,021 
taxation                                                                     
                                                                             
First interim             (346)       -     (346)     (339)       -     (339)
dividend proposed of                                                         
2.20p                                                                        
                                                                             
(2001: 2.15p)                                                                
                                                                             
Transfer to/ (from)        103   (2,860)  (2,757)      154      528      682 
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            2.85   (18.16)  (15.31)     3.13     3.35     6.48 
                                                                             
Zero Dividend                -     2.46     2.46         -     2.28     2.28 
Preference share                                                             
                                                                             
Preference share             -     2.46     2.46         -     2.28     2.28 
                                                                             

* The revenue column of this statement is the revenue account of the Group.

BALANCE SHEET

                                                       As at            As at
                                                                             
                                                     31 July         30 April
                                                                             
                                                        2002             2002
                                                                             
                                                      £'000            £'000 
                                                                             
Investments                                          32,147           35,915 
                                                                             
Current assets                                                               
                                                                             
Debtors                                                 128              610 
                                                                             
Cash at bank                                              1                1 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                               562            2,192 
                                                                             
Bank overdraft                                        6,974            6,999 
                                                                             
                                                      7,536            9,191 
                                                                             
Net current liabilities                              (7,407)          (8,580)
                                                                             
Total assets less current liabilities                24,740           27,335 
                                                                             
Creditors - amounts falling due after                                        
                                                                             
more than one year                                   (7,897)          (7,735)
                                                                             
                                                     16,843           19,600 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                                         3,938            3,938 
                                                                             
Share premium                                        11,126           11,126 
                                                                             
Capital reserve                                       1,200            4,060 
                                                                             
Revenue reserve                                         579              476 
                                                                             
Shareholders funds                                   16,843           19,600 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                                      106.28p          124.44p 
                                                                             
Zero Dividend Preference share                      125.71p          123.13p 
                                                                             
Preference share                                    128.10p          125.64p 

STATEMENT OF CASHFLOWS                                                       
                                                                             
                                               1 May 2002 to    1 May 2001 to
                                                                             
                                                31 July 2002     31 July 2001
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities              (195)             629 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                           (58)            (107)
                                                                             
Net cash outflow from servicing of                      (58)            (107)
finance                                                                      
                                                                             
Taxation recovered                                        5                8 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                              (2,223)          (4,098)
                                                                             
Sale of investments                                   3,017            3,858 
                                                                             
Net cash inflow/ (outflow) from capital                                      
expenditure                                                                  
                                                                             
and financial investment                                794             (240)
                                                                             
Equity dividends paid                                  (520)            (504)
                                                                             
Net cash inflow/ (outflow)                               26             (214)
                                                                             
Increase/ (decrease) in cash                             26             (214)
                                                                             
                                                         26             (214)

NOTE

1. The above unaudited financial information which does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985 has been
prepared on the basis of the accounting policies set out in the statutory
accounts of the Group for the year ended 30 April 2002. The auditors have
reported on those accounts; their reports were unqualified and did not contain
a statement under section 237 (2) or (3) of the Companies Act 1985. Statutory
financial statements for the year ended 30 April 2002 have been delivered to
the Registrar.

2. The Directors have declared a first interim dividend of 2.20p (2001: 2.15p)
per Ordinary share, payable on 30 September 2002 to the holders of Ordinary
shares on the Register at 6 September 2002.

3. The revenue return per Ordinary share is based on earnings of £449,000
(2001: £493,000) and on 15,750,000 (2001: 15,750,000) Ordinary shares, being
the weighted average number of Ordinary shares in issue during the period.

4. The capital return per Ordinary share is based on net capital losses of £
2,860,000 (2001: profits of £528,000) and on 15,750,000 (2001: 15,750,000)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.

5. An amount of £101,000 (2001: £112,000) has been charged to capital in
respect of management fees, other expenses and interest in accordance with the
Company's accounting policy.

6. The Company has conducted its affairs 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. It is the intention of the Directors that
the Company continues to meet these conditions.

7. There are 31,260 Preference and 6,250,000 Zero Dividend Preference shares in
issue. They each have an initial capital entitlement of 100p per share, growing
to 184.63p on 30 April 2007. The accrued entitlement as at 31 July 2002
calculated in accordance with the provisions of FRS 4 was 125.71p (2001:
115.73p) per share and a total amount of £155,000 (2001: £143,000) has been
charged to capital during the period.

8. The net asset values per share and shareholders funds shown in the Balance
Sheet are calculated in accordance with FRS4.