1st Quarter Results

SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

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

1 May 2004 to 31 July 2004 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                   1 May 2004 to               1 May 2003 to
                                    31 July 2004                31 July 2003
                       Revenue  Capital    Total   Revenue  Capital    Total
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
(Losses) /gains on           -   (1,135)  (1,135)        -    5,947    5,947 
investments                                                                  
                                                                             
Dividends and              690        -      690       557        -      557 
interest                                                                     
                                                                             
Other income                 3        -        3         2        -        2 
                                                                             
Investment management      (42)     (64)    (106)      (36)     (54)     (90)
fee                                                                          
                                                                             
Other expenses             (51)       -      (51)      (56)       -      (56)
                                                                             
Net return before                                                            
                                                                             
finance costs and          600   (1,199)    (599)      467    5,893    6,360 
taxation                                                                     
                                                                             
Interest payable and       (52)     (79)    (131)      (34)     (51)     (85)
similar charges                                                              
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (179)    (179)        -     (166)    (166)
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 taxation         548   (1,466)    (918)      433    5,667    6,100 
                                                                             
First interim             (370)       -     (370)     (354)       -     (354)
dividend paid of                                                             
2.35p                                                                        
                                                                             
(2003: 2.25p)                                                                
                                                                             
Transfer to/ (from)        178   (1,466)  (1,288)       79    5,667    5,746 
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            3.47    (9.31)   (5.84)     2.75    35.98    38.73 
                                                                             
Zero Dividend                -     2.87     2.87         -     2.66     2.66 
Preference share                                                             
                                                                             
Preference share             -     2.87     2.87         -     2.66     2.66 
                                                                             

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

CONSOLIDATED BALANCE SHEET

                                              As at        As at       As at
                                            31 July     30 April     31 July
                                               2004         2004        2003
                                         (unaudited)    (audited) (unaudited)
                                              £'000        £'000       £'000 
                                                                             
Investments                                  41,951       44,265      35,859 
                                                                             
Current assets                                                               
                                                                             
Debtors                                         242          514         387 
                                                                             
Cash at bank                                    230           25         100 
                                                                             
                                                472          539         487 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                       563        1,850         538 
                                                                             
Bank overdraft                                4,878        4,872       7,277 
                                                                             
                                              5,441        6,722       7,815 
                                                                             
Net current liabilities                      (4,969)      (6,183)     (7,328)
                                                                             
Total assets less current liabilities        36,982       38,082      28,531 
                                                                             
Creditors - amounts falling due after                                        
                                                                             
more than one year                          (14,300)     (14,112)     (8,571)
                                                                             
                                             22,682       23,970      19,960 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                                 3,938        3,938       3,938 
                                                                             
Share premium                                11,126       11,126      11,126 
                                                                             
Capital reserve                               6,777        8,243       4,206 
                                                                             
Revenue reserve                                 841          663         690 
                                                                             
Shareholders funds                           22,682       23,970      19,960 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                              142.33p      151.59p     125.48p 
                                                                             
Zero Dividend Preference share              149.45p      146.58p     138.35p 
                                                                             
Preference share                            149.45p      146.58p     138.35p 
                                                                             

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                              1 May 2004 to    1 May 2003 to
                                               31 July 2004     31 July 2003
                                                      £'000            £'000 
                                                                             
Net cash (outflow)/inflow from operating               (344)             757 
activities                                                                   
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (130)             (87)
                                                                             
Net cash outflow from servicing of                     (130)             (87)
finance                                                                      
                                                                             
Taxation recovered                                        -                - 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                              (2,747)          (5,459)
                                                                             
Sale of investments                                   3,987            5,329 
                                                                             
Net cash inflow/(outflow) from capital                1,240             (130)
                                                                             
expenditure and financial investment                                         
                                                                             
Equity dividends paid                                  (567)            (535)
                                                                             
Net cash inflow                                         199                5 
                                                                             
Increase in cash                                        199                5 
                                                                             

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 2004. 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 2004 have been delivered to
the Registrar.

2. The Directors have declared a first interim dividend of 2.35p (2003: 2.25p)
per Ordinary share, paid on 30 September 2004 to the holders of Ordinary shares
on the Register at 10 September 2004.

3. The revenue return per Ordinary share is based on earnings of £548,000
(2003: £433,000) and on 15,750,000 (2003: 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 £
1,466,000 (2003: gains of £5,667,000) and on 15,750,000 (2003: 15,750,000)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.

5. An amount of £143,000 (2003: £105,000) 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 as 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. As at 31 July 2004 the final entitlements of the
Preference shares and the Zero Dividend Preference shares were fully covered.
The accrued entitlement as at 31 July 2004 calculated in accordance with the
Articles of Association was 149.45p per Zero Dividend Preference share (2003:
138.35p) and 149.45p per Preference share (2003: 138.35p). During the period
the accrued entitlements of the Zero Dividend Preference shares and Preference
shares have increased by a total of £180,000 (2003: £167,000) and this amount
has been charged to capital.

8. The net assets attributable and the net asset values per share are
calculated in accordance with the Company's Articles of Association.

9. The Group's funds are invested principally in companies with a market
capitalisation of less than £100 million. The Group's portfolio comprises
companies listed on the official list and companies admitted to trading on AIM.
The Group may also invest up to 5% of its portfolio in unquoted securities.
Whilst the majority of the Group's funds are invested in ordinary shares of
companies, up to 30% may be invested in convertible securities. The Group does
not invest in other investment trusts.