Interim Results

SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

Chairman's statement

Results

This report covers the six months to 31 October 2004.

The Net Asset Value per Ordinary share at 31 October was 157.74p, an increase
of 4.06% in the past six months compared to rises of 2.70% in the FTSE
All-Share Index, 1.88% in the FTSE Fledgling Index and a fall of 0.92% in the
FTSE Small-Cap Index. As at 25 November 2004, the Net Asset Value per Ordinary
share had risen to 162.17p.

A first interim dividend of 2.35p (2003: 2.25p) per Ordinary share was paid in
September 2004. The Board has declared a second interim dividend of 2.35p per
Ordinary share (2003: 2.25p) payable on 31 December 2004 to shareholders on the
register on 10 December 2004, making a total for the half-year of 4.70p per
Ordinary share (2003: 4.50p).

The Company is invested in the ordinary shares of sixty-one quoted companies
and two unquoted companies. It does not invest in the shares of any investment
trusts.

During this period offers were received for Hercules Property Services, Coutts
Holdings and South Staffordshire; and Christian Salvesen entered into bid
talks. The first three have been completed or gone unconditional but the
Salvesen talks have ended.

Outlook

After a pause in the first quarter, it is pleasing to see the net asset value
has made further progress in the first six months. The associated earnings have
also increased and the interim dividends have been increased to reflect this.

It is heartening to see that a number of takeovers have occurred in the last
quarter with the consequent improvement to the capital and, once these funds
are reinvested, the revenue stream.

Bryan Lenygon, Chairman

1 December 2004

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

1 May 2004 to 31 October 2004 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                     1 May 2004 to              1 May 2003 to
                                                                             
                                   31 October 2004            31 October 2003
                                                                             
                          Revenue   Capital  Total  Revenue  Capital    Total
                                                                             
                           £'000     £'000  £'000    £'000    £'000    £'000 
                                                                             
Gains on investments           -     1,699  1,699        -    9,051    9,051 
                                                                             
Dividends and interest     1,307         -  1,307    1,226        -    1,226 
                                                                             
Investment management        (87)     (131)  (218)     (78)    (116)    (194)
fee                                                                          
                                                                             
Investment management          -       (75)   (75)       -     (160)    (160)
performance fee                                                              
                                                                             
Other expenses              (107)        -   (107)    (113)      (5)    (118)
                                                                             
Net return before                                                            
                                                                             
finance costs and          1,113     1,493  2,606    1,035    8,770    9,805 
taxation                                                                     
                                                                             
Interest payable            (107)     (160)  (267)     (73)    (109)    (182)
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend                -      (362)  (362)       -     (335)    (335)
Preference shares                                                            
                                                                             
- Preference shares            -        (2)    (2)       -       (2)      (2)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference            -       (16)   (16)       -      (16)     (16)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after           1,006       953  1,959      962    8,308    9,270 
taxation                                                                     
                                                                             
First interim dividend      (370)        -   (370)    (355)       -     (355)
paid of 2.35p                                                                
                                                                             
(2003: 2.25p)                                                                
                                                                             
Second interim dividend     (370)        -   (370)    (354)       -     (354)
proposed of 2.35p                                                            
                                                                             
(2003: 2.25p)                                                                
                                                                             
Transfer to reserves         266       953  1,219      253    8,308    8,561 
                                                                             
Return per:                 pence     pence  pence    pence    pence    pence
                                                                             
Ordinary share              6.39      6.05  12.44     6.11    52.75    58.86 
                                                                             
Zero Dividend Preference       -      5.80   5.80        -     5.37     5.37 
share                                                                        
                                                                             
Preference share               -      5.80   5.80        -     5.37     5.37 
                                                                             

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

CONSOLIDATED BALANCE SHEET

                                            As at          As at        As at
                                                                             
                                       31 October       30 April   31 October
                                                                             
                                             2004           2004         2003
                                                                             
                                      (unaudited)      (audited)  (unaudited)
                                                                             
                                           £'000          £'000        £'000 
                                                                             
Investments                               44,616         44,265       41,156 
                                                                             
Current assets                                                               
                                                                             
Debtors                                      176            514          301 
                                                                             
Cash at bank                                 330             25          127 
                                                                             
                                             506            539          428 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                    629          1,850          716 
                                                                             
Bank overdraft                             4,812          4,872        4,344 
                                                                             
                                           5,441          6,722        5,060 
                                                                             
Net current liabilities                   (4,935)        (6,183)      (4,632)
                                                                             
Total assets less current                 39,681         38,082       36,524 
liabilities                                                                  
                                                                             
Creditors - amounts falling due                                              
after                                                                        
                                                                             
more than one year                       (14,492)       (14,112)     (13,749)
                                                                             
Net assets                                25,189         23,970       22,775 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                              3,938          3,938        3,938 
                                                                             
Share premium                             11,126         11,126       11,126 
                                                                             
Capital reserve                            9,196          8,243        6,847 
                                                                             
Revenue reserve                              929            663          864 
                                                                             
Shareholders funds                        25,189         23,970       22,775 
                                                                             
Total net assets attributable to:                                            
                                                                             
Ordinary shares                           24,844         23,875       22,410 
                                                                             
Zero Dividend Preference shares            9,523          9,161        8,816 
                                                                             
Preference shares                             48             46           44 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                            157.74p        151.59p      142.29p
                                                                             
Zero Dividend Preference share            152.37p        146.58p      141.06p
                                                                             
Preference share                          152.37p        146.58p      141.06p

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2004 to    1 May 2003 to
                                                                             
                                             31 October 2004  31 October 2003
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities               156            1,135 
                                                                             
Net cash outflow from servicing of                     (264)            (184)
finance                                                                      
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchases of investments                             (5,931)          (8,794)
                                                                             
Sales of investments                                  7,341            6,698 
                                                                             
Net cash inflow/ (outflow) from capital               1,410           (2,096)
expenditure and financial investment                                         
                                                                             
Equity dividends paid                                  (937)            (890)
                                                                             
Financing                                                                    
                                                                             
Loan drawdown                                             -            5,000 
                                                                             
Increase in cash                                        365            2,965 
                                                                             

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 second interim dividend of 2.35p (2003: 2.25p)
per Ordinary share, payable on 31 December 2004 to the holders of Ordinary
shares on the Register at 10 December 2004. 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 £1,006,000
(2003: £962,000) 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 gains of £
953,000 (2003: £8,308,000) 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 £366,000 (2003: £385,000) 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 October 2004
calculated in accordance with the Company's Articles of Association, was
152.37p per Zero Dividend Preference and Preference share (2003: 141.06p). A
total amount of £364,000 (2003: £337,000) 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 October 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.