Final Results

SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

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

1 May 2003 to 30 April 2004 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2003 to               1 May 2002 to
                                                                             
                                    30 April 2004               30 April 2003
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
Gains/(losses) on            -   11,994   11,994         -   (4,460)  (4,460)
investments                                                                  
                                                                             
Dividends and interest   2,224        -    2,224     2,180        -    2,180 
                                                                             
Other income                 5        -        5         8        -        8 
                                                                             
Investment management        -   (1,064)  (1,064)        -        -        - 
performance fee                                                              
                                                                             
Investment management     (166)    (248)    (414)     (120)    (180)    (300)
fee                                                                          
                                                                             
Other expenses            (209)      (5)    (214)     (215)      (4)    (219)
                                                                             
Net return before                                                            
                                                                             
finance costs and        1,854   10,677   12,531     1,853   (4,644)  (2,791)
taxation                                                                     
                                                                             
Interest payable and      (172)    (258)    (430)     (143)    (215)    (358)
similar charges                                                              
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (680)    (680)        -     (628)    (628)
Preference shares                                                            
                                                                             
- Preference shares          -       (4)      (4)        -       (3)      (3)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -      (31)     (31)        -      (31)     (31)
                                                                             
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after         1,682    9,704   11,386     1,710   (5,521)  (3,811)
taxation                                                                     
                                                                             
First interim dividend    (354)       -     (354)     (347)       -     (347)
paid of 2.25p (2003:                                                         
2.20p)                                                                       
                                                                             
Second interim            (354)       -     (354)     (346)       -     (346)
dividend paid of 2.25p                                                       
(2003: 2.20p)                                                                
                                                                             
Third interim dividend    (355)       -     (355)     (347)       -     (347)
paid of 2.25p (2003:                                                         
2.20p)                                                                       
                                                                             
Fourth interim            (567)       -     (567)     (535)       -     (535)
dividend declared of                                                         
3.60p                                                                        
                                                                             
(2003: 3.40p)                                                                
                                                                             
Transfer to/ (from)         52    9,704    9,756       135   (5,521)  (5,386)
                                                                             
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share           10.68    61.61    72.29     10.86   (35.05)  (24.19)
                                                                             
Zero Dividend                -    10.88    10.88         -    10.05    10.05 
Preference share                                                             
                                                                             
Preference share             -    10.88    10.88         -    10.05    10.05 
                                                                             

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

CONSOLIDATED BALANCE SHEET

                                                       As at            As at
                                                                             
                                                    30 April         30 April
                                                                             
                                                        2004             2003
                                                                             
                                                      £'000            £'000 
                                                                             
Investments                                          44,265           30,060 
                                                                             
Current assets                                                               
                                                                             
Debtors                                                 514              632 
                                                                             
Cash at bank                                             25              309 
                                                                             
                                                        539              941 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                             1,850              899 
                                                                             
Bank overdraft                                        4,872            7,491 
                                                                             
                                                      6,722            8,390 
                                                                             
Net current liabilities                              (6,183)          (7,449)
                                                                             
Total assets less current liabilities                38,082           22,611 
                                                                             
Creditors - amounts falling due after                                        
                                                                             
more than one year                                  (14,112)          (8,397)
                                                                             
                                                     23,970           14,214 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                                         3,938            3,938 
                                                                             
Share premium                                        11,126           11,126 
                                                                             
Capital reserve                                       8,243           (1,461)
                                                                             
Revenue reserve                                         663              611 
                                                                             
Shareholders funds                                   23,970           14,214 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                                       151.59p           89.44p
                                                                             
Zero Dividend Preference share                       146.58p          135.69p
                                                                             
Preference share                                     146.58p          135.69p

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2003 to    1 May 2002 to
                                                                             
                                               30 April 2004    30 April 2003
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities             1,662              695 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (422)            (328)
                                                                             
Net cash outflow from servicing of                     (422)            (328)
finance                                                                      
                                                                             
Taxation recovered                                        -                5 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                             (11,966)          (6,007)
                                                                             
Sale of investments                                   9,660            7,010 
                                                                             
Net cash (outflow)/ inflow from capital                                      
                                                                             
expenditure and financial investment                 (2,306)           1,003 
                                                                             
Equity dividends paid                                (1,599)          (1,559)
                                                                             
Financing                                                                    
                                                                             
Loan drawndown                                        5,000                - 
                                                                             
Net cash inflow/ (outflow)                            2,335             (184)
                                                                             
Increase/ (decrease) in cash                          2,335             (184)
                                                                             

NOTE

1. The above unaudited financial information for the year ended 30 April 2004
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
2003, save that the Group has adopted the 2003 Statement of Recommended
Practice, regarding the Financial Statements of Investment Trust Companies. The
comparative financial information is based on the statutory financial
statements for the year ended 30 April 2003. The auditors have reported on
those accounts; their report was unqualified and did not contain a statement
under section 237 (2) or (3) of the Companies Act 1985. The April 2003
statutory accounts have been delivered to the Registrar of Companies. Statutory
financial statements for the year ended 30 April 2004 will be delivered to the
Registrar.

2. The Directors have declared a fourth dividend of 3.60p (2003: 3.40p) per
Ordinary share, payable on 30 June 2004 to the holders of Ordinary shares on
the Register at 11 June 2004.

3. The revenue return per Ordinary share is based on earnings of £1,682,000
(2003: £1,710,000) and on 15,750,000 (2003: 15,750,000) Ordinary shares, being
the weighted average number of Ordinary shares in issue during the year.

4. The capital return per Ordinary share is based on net capital gains of £
9,704,000 (2003: losses of £5,521,000) and on 15,750,000 (2003: 15,750,000)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the year.

5. An amount of £1,575,000 (2003: £399,000) has been charged to capital in
respect of management fees, investment management performance 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. As at 30 April 2004 the final entitlements of the
Preference shares and the Zero Dividend Preference shares were fully covered.
The accrued entitlement as at 30 April 2004 calculated in accordance with the
Articles of Association, was 146.58p per Zero Dividend Preference share (2003:
135.69p) and 146.58p per Preference share (2003: 135.69p). During the period
the accrued entitlements of the Zero Dividend Preference shares and Preference
shares have increased by a total of £684,000 (2003:£631,000) and this amount
has been charged to capital.

8. 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.

CHAIRMAN'S STATEMENT

RESULTS

This Report covers the twelve months ended 30 April 2004.

This has been a year of strong recovery and then growth in UK equity market
which has been most marked in the small company sector. Whilst there has been
an element of consolidation in the past three months, partially caused by the
political uncertainty in the Middle East and the consequent concerns over the
oil price, the future for the underlying investee companies looks encouraging.

The Company's net asset value per Ordinary share at 30 April 2004 was 151.59p
(2003 - 89.44p), an increase over the year of 69.5%. During this period the
FTSE All-Share Index increased by 18.3%, the FTSE Small-Cap Index increased by
43.2% and the FTSE Fledgling Index increased by 73.0%. Since Listing, on 12 May
1999, the FTSE All-Share has fallen by 24.1% and the net asset value per
Ordinary share has risen by 58.5%.

Since the year-end the net asset value per Ordinary share has fallen in line
with the market weakness to 145.01p as at 27 May 2004.

The Board has declared a fourth interim dividend of 3.6p per Ordinary share
(2003 - 3.4p) which, when added to the three quarterly interim dividends of
2.25p, equates to a total dividend for the year of 10.35p per Ordinary Share
(2003 - 10p), an increase of 3.5% over the previous year. The Board is pleased
to be able to increase the dividend, as it has been able to for each year of
the five-year life of the Company.

BACKGROUND

Over the past twelve months the market has recovered to remove the grossly
undervalued position that existed in April of last year. This recovery and then
re-rating has been most marked in the small companies sector. Towards the end
of calendar year 2003 there were worrying signs of 'frothiness' in the small
technology companies, but fortunately this appears to have now dissipated.

The new listings market has been very active over the past year and some
interesting companies have been listed, which may in time become suitable
investment candidates for the Company. This activity has covered up for the
fact that there have been very few takeovers in the area of the market that the
Company invests in, although at the much larger end of listed companies,
takeovers have taken place.

Notwithstanding the recent rises in bank interest rates the UK economy seems to
be set fair for a period of steady growth. Inflation remains at historically
low levels and real interest rates therefore remain relatively high.

SPLIT CAPITAL SECTOR AND AWARD

Unfortunately the uncertainty within the Split Capital Sector continues and
whilst the Company is described as a Split Capital Trust its structure has
always been relatively simple and it has never invested in any other investment
trusts.

I am pleased to announce that the Company recently won Money Observer's - Best
High Income Trust Award for 2004, this makes the fourth award in as many years.
I would like to congratulate David Horner and his team at Chelverton Asset
Management for their efforts.

PROSPECTS

The Company is invested across 66 companies in 18 sectors and this diversity
provides the strength and stability for the Company. After several years of low
interest rates, growing profits and cash generation, the level of bank debt in
small companies is now relatively at levels below much larger international
companies.

The Board is encouraged by the progress in the past year and is hopeful that
further progress will follow in the year ahead.

Bryan Lenygon

2 June 2004