3rd Quarter Results

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 2004 to 31 January 2005 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2004 to               1 May 2003 to
                                                                             
                                  31 January 2005             31 January 2004
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
Gains on investments         -    6,819    6,819         -   11,095   11,095 
                                                                             
Dividends and            1,706        -    1,706     1,615        -    1,615 
interest                                                                     
                                                                             
Investment                (138)    (206)    (344)     (121)    (181)    (302)
management fee                                                               
                                                                             
Investment                   -   (2,029)  (2,029)        -     (832)    (832)
management                                                                   
performance fee                                                              
                                                                             
Other expenses            (165)       -     (165)     (168)      (5)    (173)
                                                                             
Net return before                                                            
finance                                                                      
                                                                             
costs and taxation       1,403    4,584    5,987     1,326   10,077   11,403 
                                                                             
Interest payable          (163)    (244)    (407)     (122)    (183)    (305)
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (549)    (549)        -     (508)    (508)
Preference shares                                                            
                                                                             
- Preference shares          -       (3)      (3)        -       (3)      (3)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -      (24)     (24)        -      (23)     (23)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after         1,240    3,764    5,004     1,204    9,360   10,564 
taxation                                                                     
                                                                             
First interim             (370)       -     (370)     (354)       -     (354)
dividend paid of                                                             
2.35p                                                                        
                                                                             
(2004: 2.25p)                                                                
                                                                             
Second interim            (370)       -     (370)     (354)       -     (354)
dividend paid of                                                             
2.35p                                                                        
                                                                             
(2004: 2.25p)                                                                
                                                                             
Third interim             (370)       -     (370)     (355)       -     (355)
dividend proposed of                                                         
2.35p                                                                        
                                                                             
(2004: 2.25p)                                                                
                                                                             
Transfer to reserves       130    3,764    3,894       141    9,360    9,501 
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            7.87    23.90    31.77      7.65    59.43    67.08 
                                                                             
Zero Dividend                -     8.78     8.78         -     8.13     8.13 
Preference share                                                             
                                                                             
Preference share             -     8.78     8.78         -     8.13     8.13 
                                                                             

* 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
                                                                             
                                            2005           2004          2004
                                                                             
                                          £'000          £'000         £'000 
                                                                             
Investments                              49,856         44,265        43,307 
                                                                             
Current assets                                                               
                                                                             
Debtors                                     125            514            93 
                                                                             
Cash at bank                                194             25           509 
                                                                             
                                            319            539           602 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                 2,623          1,850         1,961 
                                                                             
Bank overdraft                            5,000          4,872         4,302 
                                                                             
                                          7,623           6,722        6,263 
                                                                             
Net current liabilities                  (7,304)        (6,183)       (5,661)
                                                                             
Total assets less current                42,552         38,082        37,646 
liabilities                                                                  
                                                                             
Creditors - amounts falling due                                              
after                                                                        
                                                                             
more than one year                       14,688         14,112        13,931 
                                                                             
                                         27,864         23,970        23,715 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                             3,938          3,938         3,938 
                                                                             
Share premium                            11,126         11,126        11,126 
                                                                             
Capital reserve                          12,007          8,243         7,899 
                                                                             
Revenue reserve                             793            663           752 
                                                                             
Shareholders funds                       27,864         23,970        23,715 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                           175.64p        151.59p       149.02p
                                                                             
Zero Dividend Preference share           155.36p        146.58p       143.82p
                                                                             
Preference share                         155.36p        146.58p       143.82p
                                                                             
Total net assets attributable                                                
to:                                                                          
                                                                             
Ordinary shares                          27,663         23,875        23,471 
                                                                             
Zero Dividend Preference shares           9,710          9,161         8,989 
                                                                             
Preference shares                            49             46            45 

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2004 to    1 May 2003 to
                                                                             
                                             31 January 2005  31 January 2004
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities               474            1,558 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (401)            (297)
                                                                             
Net cash outflow from servicing of                     (401)            (297)
finance                                                                      
                                                                             
Taxation recovered                                        -                - 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                              (9,772)         (10,779)
                                                                             
Sale of investments                                  11,047            9,151 
                                                                             
Net cash inflow /(outflow) from capital               1,275           (1,628)
expenditure                                                                  
                                                                             
and financial investment                                                     
                                                                             
Equity dividends paid                                (1,307)          (1,244)
                                                                             
Financing                                                                    
                                                                             
Loan drawdown                                             -            5,000 
                                                                             
Increase in cash                                         41            3,389 
                                                                             

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 were delivered to the
Registrar.

2. The Directors have declared a third interim dividend of 2.35p (2004: 2.25p)
per Ordinary share, payable on 31 March 2005 to the holders of Ordinary shares
on the Register at 4 March 2005. The total dividend for the year ended 30 April
2004 amounted to 10.35p per Ordinary share. Projected forecasts indicate that
the total dividend for the year ending 30 April 2005 should be at least
maintained at this amount.

3. The revenue return per Ordinary share is based on earnings of £1,240,000
(2004: £1,204,000) and on 15,750,000 (2004: 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 gain of £
3,764,000 (2004: £9,360,000) and on 15,750,000 (2004: 15,750,000) Ordinary
shares, being the weighted average number of Ordinary shares in issue during
the period.

5. An amount of £2,479,000 (2004: £1,201,000) has been charged to capital in
respect of management fees 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 January 2005
calculated in accordance with the Company's Articles of Association, was
155.36p per Zero Dividend Preference share (2004: 143.82p) and 155.36p per
Preference share (2004: 143.82p). A total amount of £552,000 (2004: £511,000)
has been charged to capital during the period, in respect of their accrued
entitlement.

8. The net assets attributable and the net asset value per share are calculated
in accordance with the Company's Articles of Association, and exclude current
period revenue for the unaudited values at 31 January 2005 and 2004.
Shareholders funds shown in the balance sheet are 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.