Interim 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 2003 to 31 January 2004 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2003 to               1 May 2002 to
                                                                             
                                  31 January 2004             31 January 2003
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
Gains on investments         -   11,095   11,095         -   (6,671)  (6,671)
                                                                             
Dividends and            1,615        -    1,615     1,534        -    1,534 
interest                                                                     
                                                                             
Investment                (121)    (181)    (302)      (90)    (134)    (224)
management fee                                                               
                                                                             
Investment                   -     (832)    (832)        -        -        - 
management                                                                   
performance fee                                                              
                                                                             
Other expenses            (168)      (5)    (173)     (160)       -     (160)
                                                                             
Net return before                                                            
finance                                                                      
                                                                             
costs and taxation       1,326   10,077   11,403     1,284   (6,805)  (5,521)
                                                                             
Interest payable          (122)    (183)    (305)     (110)    (165)    (275)
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (508)    (508)        -     (470)    (470)
Preference shares                                                            
                                                                             
- Preference shares          -       (3)      (3)        -       (3)      (3)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -      (23)     (23)        -      (23)     (23)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after         1,204    9,360   10,564     1,174   (7,466)  (6,292)
taxation                                                                     
                                                                             
First interim             (354)       -     (354)     (347)       -     (347)
dividend paid of                                                             
2.25p                                                                        
                                                                             
(2003: 2.20p)                                                                
                                                                             
Second interim            (354)       -     (354)     (346)       -     (346)
dividend paid of                                                             
2.25p                                                                        
                                                                             
(2003: 2.20p)                                                                
                                                                             
Third interim             (355)       -     (355)     (347)       -     (347)
dividend proposed of                                                         
2.25p                                                                        
                                                                             
(2003: 2.20p)                                                                
                                                                             
Transfer to/(from)         141    9,360    9,501       134   (7,466)  (7,332)
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            7.65    59.43    67.08      7.45   (47.41)  (39.96)
                                                                             
Zero Dividend                -     8.13     8.13         -     7.53     7.53 
Preference share                                                             
                                                                             
Preference share             -     8.13     8.13         -     7.53     7.53 
                                                                             

* 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
                                                                             
                                            2004           2003          2003
                                                                             
                                          £'000          £'000         £'000 
                                                                             
Investments                              43,307         30,060        28,234 
                                                                             
Current assets                                                               
                                                                             
Debtors                                      93            632            72 
                                                                             
Cash at bank                                509            309           145 
                                                                             
                                            602            941           217 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                 1,961            899           530 
                                                                             
Bank overdraft                            4,302          7,491         7,422 
                                                                             
                                          6,263          7,854         7,952 
                                                                             
Net current liabilities                  (5,661)        (7,449)       (7,735)
                                                                             
Total assets less current                37,646         22,611        20,499 
liabilities                                                                  
                                                                             
Creditors - amounts falling due                                              
after                                                                        
                                                                             
more than one year                       13,931          8,397        (8,231)
                                                                             
                                         23,715         14,214        12,268 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                             3,938          3,938         3,938 
                                                                             
Share premium                            11,126         11,126        11,126 
                                                                             
Capital reserve                           7,899         (1,461)       (3,406)
                                                                             
Revenue reserve                             752            611           610 
                                                                             
Shareholders funds                       23,715         14,214        12,268 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                           149.02p         89.44p        76.19p
                                                                             
Zero Dividend Preference share           143.82p        135.69p       133.17p
                                                                             
Preference share                         143.82p        135.69p       133.17p
                                                                             
Total net assets attributable                                                
to:                                                                          
                                                                             
Ordinary shares                          23,471         14,087        12,134 
                                                                             
Zero Dividend Preference shares           8,989          8,481         8,189 
                                                                             
Preference shares                            45             42            42 

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2003 to    1 May 2002 to
                                                                             
                                             31 January 2004  31 January 2003
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities             1,558              563 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (297)            (239)
                                                                             
Net cash outflow from servicing of                     (297)            (239)
finance                                                                      
                                                                             
Taxation recovered                                        -                5 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                             (10,779)          (3,877)
                                                                             
Sale of investments                                   9,151            4,482 
                                                                             
Net cash (outflow)/ inflow from capital              (1,628)             605 
expenditure                                                                  
                                                                             
and financial investment                                                     
                                                                             
Equity dividends paid                                (1,244)          (1,213)
                                                                             
Financing                                                                    
                                                                             
Loan drawdown                                         5,000                - 
                                                                             
Increase/ (decrease) in cash                          3,389             (279)
                                                                             

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 2003. 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 2003 were delivered to the
Registrar.

2. The Directors have declared a third interim dividend of 2.25p (2003: 2.20p)
per Ordinary share, payable on 31 March 2004 to the holders of Ordinary shares
on the Register at 5 March 2004. The total dividend for the year ended 30 April
2003 amounted to 10.00p per Ordinary share. Projected forecasts indicate that
the total dividend for the year ending 30 April 2004 should be at least
maintained at this amount.

3. The revenue return per Ordinary share is based on earnings of £1,204,000
(2003: £1,174,000) 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 a net capital gain of £
9,360,000 (2003: Loss £7,466,000) 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 £1,201,000 (2003: £299,000) 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 2004 the final entitlements of
the Preference shares and the Zero Dividend Preference shares were fully
covered. The accrued entitlement as at 31 January 2004 calculated in accordance
with the Company's Articles of Association, was 135.69p per Zero Dividend
Preference share (2003: 133.17p) and 135.69p per Preference share (2003:
133.17p). A total amount of £511,000 (2003: £473,000) has been charged to
capital during the period.

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 2004 and 2003.
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.