Final Results - Year Ended 31 December 1999

Aberforth Smaller Companies Tst PLC
25 January 2000



                           PRELIMINARY RESULTS
                                    
                    For the Year to 31 December 1999


FEATURES

     Fully Diluted Net Asset Value Total Return   +49.5%

     Benchmark Index Total Return                 +56.2%

     Increase in Dividends per Ordinary Share      +4.1%

     Level of Gearing at 31 December 1999           4.9%


Aberforth Smaller Companies Trust plc ('ASCoT') invests only in small UK
quoted companies and is managed by Aberforth Partners.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

     REVIEW OF 1999 PERFORMANCE

     The  year to December 1999 was a very good one for small company share
     prices.  Your Company's investment benchmark, the Hoare Govett Smaller
     Companies Index (excluding investment trusts), achieved a total return
     of 56.2% whilst ASCoT achieved a total return of 49.5%.  The FTSE All-
     Small  Index  (excluding investment trusts) produced  an  even  better
     return  than  that of the Hoare Govett Index at 63.0%.  Regardless  of
     whichever  index is used, 1999 was a very good year for small  company
     share prices when compared with large companies whose total return, as
     represented by the FTSE All-Share Index, was 24.2%.

     Your Board is pleased to recommend a final dividend of 4.75p per share
     which  produces  total  dividends of 7.60p  per  share  for  the  year
     compared to the 7.30p total paid last year representing an increase of
     4.1%.   Subject to Shareholders' approval, the final dividend of 4.75p
     per  share  will  be  payable on 3 March 2000 to Shareholders  on  the
     register as at the close of business on 4 February 2000.

     It  is  disappointing  that  ASCoT has underperformed  its  investment
     benchmark  over the year despite providing good absolute  returns  and
     significantly  better  returns  than would  have  been  obtained  from
     investing  in  large companies.  This disappointment is heightened  by
     the  fact  that,  to the end of August, ASCoT was well  ahead  of  its
     investment  benchmark.  The rise in the base rate in  early  September
     triggered  what  has  turned  out  to  be  a  dramatic  shift  in  the
     stockmarket environment.  Since then, the share prices of a relatively
     small number of 'growth' companies, particularly those related to  the
     Internet,  have performed spectacularly.  While the rise in  the  base
     rate may have been the catalyst, greater momentum has been provided to
     these  share prices by equally spectacular returns from similar shares
     in the USA.  Consequently ASCoT has ended the year underperforming its
     benchmark  index when, two-thirds of the way through it, it  was  well
     ahead.

     It is worth emphasising that your Board and Managers fully accept that
     the   Internet  has  already  revolutionised  and  will  continue   to
     revolutionise  many  aspects  of  economic  activity.   Few,  if  any,
     businesses  are  or will be unaffected.  New commercial  opportunities
     are  being  found daily and any business that ignores the implications
     of  the  Internet  risks commercial suicide.   However,  many  of  the
     businesses  that  are most directly related to the Internet  have,  by
     definition,  immature  business  models.   This,  when  coupled   with
     valuations  that  make  the  most optimistic  assumptions  about  each
     business,  cause your Managers to become wary.  As 'value'  investors,
     your  Managers must be able to rationalise a company's valuation  when
     viewed  in  combination with its business risk.   'Growth'  investors,
     however,  can reasonably argue that at this stage in the evolution  of
     the  Internet,  it  is  more  important to  have  material  investment
     exposure to one of the most significant commercial developments  of  a
     generation  than to worry too much about valuations or even,  perhaps,
     risks.

     GEARING

     In  November 1998, your Managers started to borrow funds to gear ASCoT
     beyond  that required to simply mitigate Warrant dilution and, by  the
     end  of  1998, ASCoT's gearing ratio had reached 14.6%.  This  gearing
     ratio  peaked at 21.0% at the end of July and has since been gradually
     reduced such that at the end of 1999 the gearing ratio was 4.9%.   The
     decision  to  gear  ASCoT reflected your Managers' confidence  in  the
     outlook  for  stockmarket returns, however they currently believe  the
     balance  of  risk  and reward has changed to one that  merits  a  more
     cautious view of prospective absolute returns.  Their concern is  that
     if  and  when  the share prices of the rather narrow band of  'growth'
     companies that have performed so spectacularly in the latter  part  of
     1999  suffer  a  setback, it is hard to imagine this not  having  some
     knock-on effect to stockmarkets generally.

     The borrowing facilities used by ASCoT during 1999 remain available to
     your  Company and, when considered appropriate, will be  re-used.   No
     costs  are  incurred when any part of the facilities is not  used  and
     they  are  available to ASCoT 'on demand'.  These cost  efficient  and
     flexible borrowing facilities provide ASCoT with the ability to employ
     gearing as a tactical addition to your Managers' investment armoury.

     WARRANT AND ORDINARY SHARE REPURCHASES

     During  the  year your Board has been able to buy-in for  cancellation
     1,471,327  Warrants at prices which enhanced Shareholder value.   When
     added  to  those purchased in 1997 and 1998 this produces a  total  of
     10,643,611  Warrants  which  ASCoT has  bought-in,  leaving  3,431,863
     outstanding.    Your  Board  will  continue  to  take   advantage   of
     economically attractive opportunities to buy-in Warrants.

     In   addition,   at   the  Annual  General  Meeting  (and   associated
     Extraordinary  General  Meeting) held in  February,  Shareholders  and
     Warrantholders passed resolutions enabling ASCoT to repurchase  up  to
     14.99%  of its Ordinary Shares.  None have yet been bought-in, however
     your  Board will not hesitate to do so should we believe it to  be  in
     Shareholders'  interests.  Indeed, Resolutions  will  be  put  to  the
     forthcoming  Annual General Meeting to seek Shareholders' approval  to
     renew  this  authority  and  to  change  the  Company's  Articles   of
     Association  which will have the effect that should  ASCoT  repurchase
     Ordinary Shares it will not also have to relinquish its status  as  an
     investment company.
     
     CONTINUATION VOTE

     At the Annual General Meeting in February, 99.9% of those Shareholders
     who  voted  were  in favour of ASCoT's continuation.  Your  Board  and
     Managers   appreciate  Shareholders'  support.   The  next   scheduled
     continuation vote is due in February 2002.
     
     SUMMARY

     In  1999 small companies produced their best absolute and relative (to
     large companies) returns since ASCoT's inception in December 1990.  In
     turn,  ASCoT  produced  its  second best absolute  return  though  its
     poorest  relative  return against its benchmark  index.   ASCoT  also,
     however,  produced its best relative return against  large  companies.
     ASCoT's  reversal against its benchmark index took place in  the  last
     four  months of the year, until when 1999 was developing to be ASCoT's
     best  in  all  respects.  Perhaps all this proves is  how  frustrating
     investment  management  can be and also how  quickly  the  stockmarket
     environment  can  change.  There can be no doubt that the  spectacular
     share  price  returns provided by many 'growth' companies,  especially
     those  perceived to be Internet related, will not continue to compound
     at  their  recent rate indefinitely.  When the environment changes  to
     one more favourable to your Managers' investment style, your Board and
     they   will   do  everything  possible  to  ensure  ASCoT's   relative
     performance benefits appropriately.


     William Y. Hughes
     Chairman
     25 January 2000

The Statement of Total Return, summary Balance Sheet and summary Cash Flow
Statement are set out below:-
                                    
                        STATEMENT OF TOTAL RETURN
                  (Incorporating the Revenue Account*)
                                    
                   For the Year ended 31 December 1999
                               (unaudited)

                              Year to                   Year to               
                          31 December 1999          31 December 1998          
                                                       (restated)
                      Revenue Capital   Total   Revenue Capital   Total
                       £'000   £'000    £'000    £'000   £'000    £'000
                                                                 
Realised gains on          -  28,847   28,847        -  19,504   19,504
sales
Increase in                                                      
unrealised
appreciation               -  57,838   57,838        - (38,969) (38,969)
                      ------  ------   ------   ------  ------   ------       
                     
Gains/(losses) on          -  86,685   86,685        - (19,465) (19,465)
investments                                             
Deemed cost of                                                   
Warrants
purchased for              -  (1,225)  (1,225)       -  (3,040)  (3,040)
cancellation
Dividend income        9,886       -    9,886    8,452       -    8,452
Interest income          119       -      119      104       -      104
Other income               1       -        1       15       -       15
Investment              (813) (1,354)  (2,167)    (773) (1,288)  (2,061)
management fee
Other expenses          (242)      -     (242)    (201)      -     (201)
                      ------  ------   ------   ------  ------   ------       
                                    
Net return before                                                
finance
costs and taxation     8,951  84,106   93,057    7,597 (23,793) (16,196)
Interest payable and                                             
similar
charges                 (906) (1,510)  (2,416)    (360)   (600)    (960)
                      ------  ------   ------   ------  ------   ------       
                                     
Return on ordinary                                               
activities
before tax             8,045  82,596   90,641    7,237 (24,393) (17,156)
Tax on ordinary            -       -        -        -       -        -
activities            ------  ------   ------   ------  ------   ------ 
                                                                 
Return attributable                                              
to
equity shareholders    8,045  82,596   90,641    7,237 (24,393) (17,156)
Dividends in respect                                             
of
equity shares         (6,290)      -   (6,290)  (6,041)      -   (6,041)
                      ------  ------   ------   ------  ------   ------       
                                    
Transfer to/(from)     1,755  82,596   84,351    1,196 (24,393) (23,197)
reserves              ------  ------   ------   ------  ------   ------ 
                                                                 
                                                                 
Returns per Ordinary                                             
Share
Basic -                 9.72p  99.81p  109.53p    8.75p (29.48p) (20.73p)
Diluted -               9.45p  96.98p  106.43p    8.40p (28.32p) (19.92p)
Dividends per                                                    
Ordinary
Share                   7.60p      -     7.60p    7.30p      -     7.30p

NOTES TO THE STATEMENT OF TOTAL RETURN

The calculations of revenue return per Ordinary Share are based on net
revenue  of £8,045,000 (1998 - £7,237,000) and on Ordinary  Shares  of
82,756,530  (1998  -  82,750,827) in the case  of  basic  returns  and
85,166,213 (1998 - 86,132,959) in the case of diluted returns.

The calculations of capital return per Ordinary Share are based on net
capital  gains  of £82,596,000 (1998 - losses of £24,393,000)  and  on
Ordinary Shares of 82,756,530 (1998 - 82,750,827) in the case of basic
returns  and  85,166,213 (1998 - 86,132,959) in the  case  of  diluted
returns.

* The  revenue column of this statement is the profit and loss account
  of the Company.
  All  revenue  and capital items in the above statement  derive  from
  continuing operations.
  No operations were acquired or discontinued in the period.

                          SUMMARY BALANCE SHEET
                                    
                         As at 31 December 1999
                               (unaudited)

                                                       31          31
                                                    December    December
                                                      1999        1998
                                                      £'000      £'000
                                                               
Securities listed on the London Stock Exchange      279,325    209,727
                                                               
Debtors                                               5,278      1,228
Bank overdraft                                      (14,205)   (22,251)
Other creditors                                      (4,028)    (5,665)
                                                    -------    ------- 
Net current liabilities                             (12,955)   (26,688)
                                                    -------    -------        
                                                           
Total assets less liabilities                       266,370    183,039

                                                    -------    -------        
  
                                                               
Capital and Reserves: equity interests                         
Called up Share Capital:                                       
  Ordinary Shares                                       828     20,688
                                                               
Reserves:                                                      
  Share premium account                                   2      9,863
  Capital redemption reserve                              -    103,801
  Special reserve                                   133,525          -
  Capital reserve - realised                        101,158     77,423
  Capital reserve - unrealised                       23,958    (33,880)
  Revenue reserve                                     6,899      5,144
                                                    -------    -------
                                                    266,370    183,039
                                                    -------    -------        
  
                                                               
Net Asset Values:                                              
  per Ordinary Share (basic)                         321.9p     221.2p
  per Ordinary Share (fully diluted)                 313.0p     214.4p
  per Ordinary Share (diluted - FRS 14)              313.5p     215.5p

                       SUMMARY CASH FLOW STATEMENT
                                    
                   For the Year ended 31 December 1999
                               (unaudited)

                      Year to 31 December 1999  Year to 31 December 1998
                                                       (restated)
                         £'000        £'000        £'000        £'000
                                                             
Net cash inflow from                                         
operating activities                  7,288                     6,401
                                                             
Returns on                                                   
investment and
servicing of finance
Interest paid           (2,418)                     (915)        
                       -------                   -------                  
Net cash outflow                                             
from
returns on                                                   
investment and
servicing of finance                 (2,418)                     (915)
                                                             
Taxation                                                      
UK taxation paid             -                       (97)         
UK taxation                 15                       415          
recovered              -------                   -------
                                                             
Net cash inflow from                     15                       318
taxation
                                                             
Capital expenditure                                          
and
financial investment                                         
Payments to acquire                                          
investments           (178,969)                 (141,196)    
Receipts from sales                                          
of
investments            190,499                   143,423      
                       -------                   -------                      
               
Net cash inflow from                                         
capital
expenditure and                                              
financial
investment                          11,530                      2,227
                                   -------                    -------    
                                    16,415                      8,031
                                                             
Equity dividends                    (6,124)                    (5,916)
paid                               -------                    -------
                                    10,291                      2,115
                                                             
Financing                                                    
Issue of Ordinary            3                        13           
Shares
Warrants purchased                                           
for
cancellation            (2,248)                   (7,810)      
Bank loan repaid             -                   (11,750)     
                       -------                   -------            
Net cash outflow                                             
from
financing                           (2,245)                   (19,547)
                                   -------                    -------         
        
Increase/(decrease)                  8,046                    (17,432)
in cash                            -------                    ------- 
                                                             


NOTES TO THE FINANCIAL STATEMENTS

1.   As  at  31 December 1999, the Company had 82,757,359 Ordinary Shares
     (1998  -  82,753,996) and 3,431,863 Warrants (1998 -  4,906,553)  in
     issue.     On  31  March  1999,  as  a  result  of  certain  holders
     exercising the subscription rights of their Warrants, 3,363 Ordinary
     Shares  were  issued  at  100p per share.  During  the  year  to  31
     December  1999,  the  Company  bought  in  1,471,327  Warrants   for
     cancellation at a total cost of £2,248,000.  No Ordinary Shares were
     bought in during the year.

2.   The  reduction  of capital approved by shareholders  at  the  Annual
     General Meeting held on 23 February 1999 became effective on  7  May
     1999  following confirmation by the Court of Session.   The  Balance
     Sheet at 31 December 1999 reflects the revised position.

3.   In  accordance  with FRS 16, dividend income is now shown  excluding
     any  related tax credit with a consequential reduction in the amount
     of  the  tax charge to £NIL.  This change in policy does not  affect
     the  return attributable to equity shareholders for either  1999  or
     1998.   The  1998 figures in the Statement of Total Return  and  the
     summary  Cash  Flow  Statement have been restated  to  reflect  this
     change in policy.

4.   The  foregoing  do not comprise statutory accounts  (as  defined  in
     section  240(5)  of  the Companies Act 1985) of  the  Company.   The
     statutory accounts for the year to 31 December 1998, which contained
     an  unqualified  Report of the Auditors, have been lodged  with  the
     Registrar  of  Companies and did not contain  a  statement  required
     under section 237(2) or (3) of the Companies Act 1985.

5.   The  Annual  Report is expected to be posted to shareholders  on  28
     January  2000.   Members  of  the  public  may  obtain  copies  from
     Aberforth Partners, 14 Melville Street, Edinburgh EH3 7NS.



CONTACT:  John Evans          Aberforth Partners          0131 220 0733