3rd Quarter Results

BFS SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

The Directors announce the unaudited statement of consolidated results for the
nine months from

1 May 2002 to 31 January 2003 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2002 to               1 May 2001 to
                                                                             
                                  31 January 2003             31 January 2002
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
Gains on investments         -   (6,671)  (6,671)        -      205      205 
                                                                             
Dividends and            1,534        -    1,534     1,591        -    1,591 
interest                                                                     
                                                                             
Investment                 (90)    (134)    (224)      (93)    (139)    (232)
management fee                                                               
                                                                             
Other expenses            (160)       -     (160)     (153)      (4)    (157)
                                                                             
Net return before                                                            
finance                                                                      
                                                                             
costs and taxation       1,284   (6,805)  (5,521)    1,345       62    1,407 
                                                                             
Interest payable          (110)    (165)    (275)     (120)    (180)    (300)
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (470)    (470)        -     (436)    (436)
Preference shares                                                            
                                                                             
- Preference shares          -       (3)      (3)        -       (2)      (2)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -      (23)     (23)        -      (23)     (23)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after         1,174   (7,466)  (6,292)    1,225     (579)     646 
taxation                                                                     
                                                                             
First interim             (347)       -     (347)     (339)       -     (339)
dividend paid of                                                             
2.20p                                                                        
                                                                             
(2002: 2.15p)                                                                
                                                                             
Second interim            (346)       -     (346)     (338)       -     (338)
dividend paid of                                                             
2.20p                                                                        
                                                                             
(2002: 2.15p)                                                                
                                                                             
Third interim             (347)       -     (347)     (339)       -     (339)
dividend proposed of                                                         
2.20p                                                                        
                                                                             
(2002: 2.15p)                                                                
                                                                             
Transfer to/(from)         134   (7,466)  (7,332)      209     (579)    (370)
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            7.45   (47.41)  (39.96)     7.77    (3.68)    4.09 
                                                                             
Zero Dividend                -     7.53     7.53         -     6.97     6.97 
Preference share                                                             
                                                                             
Preference share             -     7.53     7.53         -     6.97     6.97 
                                                                             

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

CONSOLIDATED BALANCE SHEET

                                           As at          As at         As at
                                                                             
                                     (unaudited)      (audited)   (unaudited)
                                                                             
                                      31 January       30 April    31 January
                                                                             
                                            2003           2002          2002
                                                                             
                                          £'000          £'000          £'000
                                                                             
Investments                              28,234         35,915        30,835 
                                                                             
Current assets                                                               
                                                                             
Debtors                                      72            610           789 
                                                                             
Cash at bank                                  1              1             1 
                                                                             
                                             73            611           790 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                   530          2,192         1,048 
                                                                             
Bank overdraft                            7,278          6,999         7,085 
                                                                             
                                          7,808          9,191         8,133 
                                                                             
Net current liabilities                  (7,735)        (8,580)       (7,343)
                                                                             
Total assets less current                20,499         27,335        23,492 
liabilities                                                                  
                                                                             
Creditors - amounts falling due                                              
after                                                                        
                                                                             
more than one year                       (8,231)        (7,735)       (7,580)
                                                                             
                                         12,268         19,600        15,912 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                             3,938          3,938         3,938 
                                                                             
Share premium                            11,126         11,126        11,126 
                                                                             
Capital reserve                          (3,406)         4,060           254 
                                                                             
Revenue reserve                             610            476           594 
                                                                             
Shareholders funds                       12,268         19,600        15,912 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                            77.04p        124.44p        99.70p
                                                                             
Zero Dividend Preference share           131.03p        123.13p       120.67p
                                                                             
Preference share                         133.17p        125.64p       123.31p
                                                                             
Total net assets attributable                                                
to:                                                                          
                                                                             
Ordinary shares                          12,134         19,600        15,703 
                                                                             
Zero Dividend Preference shares           8,189          7,696         7,542 
                                                                             
Preference shares                            42             39            38 

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2002 to    1 May 2001 to
                                                                             
                                             31 January 2003  31 January 2002
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities               563            1,477 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (239)            (306)
                                                                             
Net cash outflow from servicing of                     (239)            (306)
finance                                                                      
                                                                             
Taxation recovered                                        5                8 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                              (3,877)         (11,063)
                                                                             
Sale of investments                                   4,482           11,042 
                                                                             
Net cash inflow/ (outflow) from capital                 605              (21)
expenditure                                                                  
                                                                             
and financial investment                                                     
                                                                             
Equity dividends paid                                (1,213)          (1,181)
                                                                             
Decrease in cash                                       (279)             (23)
                                                                             

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 were delivered to the
Registrar.

2. The Directors have declared a third interim dividend of 2.20p (2002: 2.15p)
per Ordinary share, payable on 31 March 2002 to the holders of Ordinary shares
on the Register at 7 March 2003. The total dividend for the year ended 30 April
2002 amounted to 9.75p per Ordinary share. Projected forecasts indicate that
the total dividend for the year ending 30 April 2003 should be at least
maintained at this amount.

3. The revenue return per Ordinary share is based on earnings of £1,174,000
(2002: £1,225,000) and on 15,750,000 (2002: 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 a net capital loss of £
7,466,000 (2002: Loss £579,000) and on 15,750,000 (2002: 15,750,000) Ordinary
shares, being the weighted average number of Ordinary shares in issue during
the period.

5. An amount of £299,000 (2002: £323,000) has been charged to capital in
respect of management fees, other expenses and interest in accordance with the
Company's accounting policy.

6. During the period 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. As at 31 January 2003 the final entitlements of
the Preference shares and the Zero Dividend Preference shares were fully
covered. The accrued entitlement as at 31 January 2003 calculated in accordance
with the provisions of FRS4, was 131.03p per Zero Dividend Preference share
(2002: 120.67p) and 133.17p per Preference share (2002: 123.31p). A total
amount of £473,000 (2002: £438,000) has been charged to capital during the
period.

8. The net assets attributable and the net asset value per share are calculated
under the provisions of FRS4, and exclude current period revenue for the
unaudited values at 31 January 2003 and 2002. Shareholders funds shown in the
balance sheet are also in accordance with FRS4.

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.