Final Results

ABERFORTH SMALLER COMPANIES TRUST plc

PRELIMINARY RESULTS

For the Year to 31 December 2006


FEATURES

Net Asset Value Total Return               +26.3%

Benchmark Index Total Return               +28.0%

Increase in Dividends per Ordinary Share   +13.1%


The  objective of Aberforth Smaller Companies Trust plc (ASCoT) is  to
achieve  a  net  asset value total return (with dividends  reinvested)
greater  than  on the Hoare Govett Smaller Companies Index  (Excluding
Investment  Companies) over the long term by investing in a  portfolio
of  small  UK quoted companies. ASCoT is managed by Aberforth Partners
LLP.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

REVIEW OF 2006 PERFORMANCE

Aberforth  Smaller Companies Trust plc (ASCoT) achieved a total return  of
26.3% for the year to 31 December 2006, which compares with a total return
of  28.0%  from  the  Hoare  Govett  Smaller  Companies  Index  (Excluding
Investment  Companies), your Company's investment  benchmark.   ASCoT  has
therefore  under-performed its benchmark for the year.  Larger  companies,
as  represented by the FTSE All-Share Index, registered a total return  of
16.8%.   Many commentators had forecast that the stockmarket returns  from
larger  companies would surpass smaller companies in 2006,  which  clearly
has  not  been the case.  As in each of the last two Annual Reports,  your
Board   and  Managers  are  cautious  about  extrapolating  recent  years'
significant returns.

This  is  the  fourth  consecutive year of small companies  out-performing
larger  companies  and of outstanding absolute returns.   This  four  year
"run"  has produced compound annual total returns for ASCoT of 29.2%,  for
the investment benchmark of 29.6%, and for larger companies of 18.1%.   By
comparison,  the previous three years of this millennium (to  the  end  of
2002)  witnessed a much better relative performance from  ASCoT  when  its
compound annual returns were plus 4.0%, the benchmark's were minus  12.3%,
and  larger companies' were minus 14.2%.  Taken together, the seven  years
to the end of 2006 would seem to suggest that ASCoT's relative performance
is   better   when  stockmarkets  are  less  buoyant.   This  fits   well,
intuitively, with your Managers' value investment style, though  they  are
reluctant to concede this correlation.

GEARING

It  is worth emphasising that ASCoT's policy has always been to remain  as
near  to  fully invested as possible and our caution has not and will  not
alter  that policy.  With the benefit of hindsight, ASCoT might have  gone
beyond  being  fully  invested and made use of debt  facilities;  to  have
employed gearing during the last four years would have enhanced returns to
Shareholders.  However, our continuing cautious stance means  that  we  do
not envisage gearing ASCoT currently.  This position is regularly reviewed
by your Board and Managers.


DIVIDENDS

Your  Board  is  pleased  to recommend a final dividend  of  9.15p,  which
produces  total dividends for the year of 13.40p representing an  increase
of  13.1%  on  the total for the previous year.  Subject to  Shareholders'
approval,  the final dividend of 9.15p per share will be paid on  7  March
2007  to  Shareholders  on the register at the  close  of  business  on  9
February  2007.  ASCoT operates a Dividend Reinvestment Plan; the relevant
documentation  is  available from Aberforth  on  request,  or  from  their
website   www.aberforth.co.uk,  for  those  Shareholders   who   wish   to
participate in the plan and are not already doing so.

Your  Board  believes  this 13.1% increase in dividends  is  an  excellent
performance and reflects the overall health of ASCoT's portfolio.  Indeed,
to  the  extent  that dividend growth drives share price performance  over
time, there is no doubt that some of the stockmarket's recent strength has
been fundamentally supported by dividend growth, itself a function of good
earnings  performance  and strong cash flow.  However,  in  addition,  the
stockmarket's rating of that dividend stream has risen i.e. the yield  has
fallen.   While  dividend growth may continue to be  attractive  for  some
time,  it  is harder to envisage the rise in capital values continuing  to
exceed dividend growth.

CORPORATE GOVERNANCE: BUSINESS REVIEW

During  2005,  the  Companies  Act  1985  was  amended  to  introduce  the
requirement  for companies to incorporate a "business review"  within  the
Directors'  Report.  The review, which is included in the  Annual  Report,
provides further analysis of ASCoT's business, its performance during  the
year, principal risks and key performance indicators.

SHARE BUY BACK AUTHORITY AND TREASURY SHARES

At  the Annual General Meeting in March 2006, the authority to purchase up
to  14.99%  of  ASCoT's  Ordinary Shares  was  renewed.   No  Shares  were
purchased during the year.  Your Board will be seeking a renewal  of  this
authority at the Annual General Meeting to be held on 1 March 2007.   Your
Board  has  established, and keeps under careful review, the circumstances
under  which  such authority may be utilised.  Should these  arise,  ASCoT
will  seek  to  purchase Ordinary Shares and it is  your  Board's  current
policy to cancel, rather than hold in treasury, any such shares.

SUMMARY AND OUTLOOK

There  will, sooner or later, be more testing stockmarket conditions  than
those  ASCoT  has enjoyed these last four years.  I noted last  year  that
"cheap and abundant debt is causing asset prices to rise and fuelling  M&A
activity"  and I believe I could do worse than repeat this, whilst  adding
that  this cannot go on forever.  Eventually, valuations rise to  a  level
that prohibits debt funded M&A and it seems very likely we are nearer that
point than we were last year.  Whilst this may read as lacking conviction,
it  reflects  the  facts that economic conditions remain  reasonable,  M&A
activity  seems to be unabated, and therefore returns could well  continue
to  surprise on the upside for sometime yet.  Whatever emerges, your Board
is  confident that your Managers' experience and consistency  of  approach
will stand your Company in good stead in the long term.


                                                             David R. Shaw
                                                                  Chairman
                                                           22 January 2007


The Income Statement,  Reconciliation of Movements in Shareholders' Funds,
Balance Sheet and summary Cash Flow Statement are set out below:-


INCOME STATEMENT
For the Year ended 31 December 2006
(unaudited)
                          12 months to            12 months to
                        31 December 2006        31 December 2005
                       Revenue Capital   Total  Revenue Capital   Total
                         £ 000   £ 000   £ 000    £ 000   £ 000   £ 000

Realised gains on sales      -  85,852  85,852        -  71,828  71,828
Unrealised gains             -  77,180  77,180        -  50,758  50,758
                        ------  ------  ------   ------  ------  ------
Gains on investments         - 163,032 163,032        - 122,586 122,586
Dividend income         18,290   2,261  20,551   16,135   4,238  20,373
Interest income            797       -     797      632       -     632
Other income                20       -      20       27       -      27
Investment management   (2,496) (4,159) (6,655)  (2,083) (3,472) (5,555)
 fee
Other expenses            (402) (3,230) (3,632)    (386) (2,542) (2,928)
                        ------  ------  ------   ------  ------  ------
Return on ordinary      16,209 157,904 174,113   14,325 120,810 135,135
 activities before
 finance costs and tax
Finance costs                -       -       -        -       -       -
                        ------  ------  ------   ------  ------  ------
Return on ordinary      16,209 157,904 174,113   14,325 120,810 135,135
 activities before tax
Tax on ordinary activities   -       -       -        -       -       -
                        ------  ------  ------   ------  ------  ------
Return attributable to
 equity shareholders    16,209 157,904 174,113   14,325 120,810 135,135
                        ====== ======= =======   ====== ======= =======

Returns per Ordinary    16.40p 159.81p 176.21p   14.50p 122.27p 136.77p
 Share

The Board declared on 22 January 2007 a proposed final dividend  of
9.15p  per Ordinary Share (31 December 2005 - 7.85p) and the  total
payable  will  be  £9,041,000 (31 December 2005 - £7,757,000).  The
Board  also declared on 20 July 2006 an interim dividend  of  4.25p
per  Ordinary  Share  (30 June 2005 - 4p) and the  total  paid  was
£4,199,000(30 June 2005 - £3,952,000).


NOTES
1.   The  total  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.  A  Statement  of  Total
Recognised Gains and Losses is not required as all gains and losses
of the Company have been reflected in the above statement.

2.  The calculations of revenue return per Ordinary Share are based
on  net revenue of £16,209,000 (31 December 2005 - £14,325,000) and
on Ordinary Shares of 98,809,788 (31 December 2005 - same).

The calculations of capital return per Ordinary Share are based  on
net capital gains of £157,904,000 (31 December 2005 - £120,810,000)
and on Ordinary Shares of 98,809,788 (31 December 2005 - same).



SUMMARY RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2006
(unaudited)

                                           2006       2005
                                          £ 000      £ 000

Opening shareholders' funds             671,174    547,155
Total recognised gains and losses       174,113    135,135
before dividends
Dividends paid                          (11,956)   (11,116)
                                        -------    -------
Closing shareholders' funds             833,331    671,174
                                        =======    =======

NOTE
The movements in this statement represent the profit and
loss of the Company and the equity dividends paid.



BALANCE SHEET
As at 31 December 2006
(unaudited)
                                             31         31
                                       December   December
                                           2006       2005
                                          £ 000      £ 000
Fixed assets: investments
Investments at fair value through       801,470    659,560
 profit or loss
                                        -------    -------
Current assets
Debtors                                   1,369      1,408
Cash at bank                             30,554     10,267
                                        -------    -------
                                         31,923     11,675
Creditors (amounts falling due              (62)       (61)
 within one year)
                                        -------    -------
Net current assets                       31,861     11,614
                                        -------    -------
Total assets less liabilities           833,331    671,174
                                        =======    =======

Capital and reserves: equity interests
Called up share capital(Ordinary Shares)    988        988
Reserves:
 Special reserve                        197,305    197,305
 Capital reserve - realised             367,212    286,488
 Capital reserve - unrealised           239,622    162,442
 Revenue reserve                         28,204     23,951
                                        -------    -------
                                        833,331    671,174
                                        =======    =======

Net Asset Value per Ordinary Share      843.37p    679.26p

NOTE
As  at  31  December  2006, the Company had  98,809,788  Ordinary
Shares  (2005 - same). No Ordinary Shares were bought  in  during
either year.



SUMMARY CASH FLOW STATEMENT

For the Year ended 31 December 2006
(unaudited)
                                        12 months to     12 months to
                                        31 December      31 December
                                            2006            2005
                                        £ 000   £ 000    £ 000    £ 000

Net cash inflow from operating activities      14,197            15,066

Returns on investment and servicing                 -                 -
 of finance

Capital expenditure and financial investment
Payments to acquire investments      (244,363)        (209,872)
Receipts from sales of investments    262,409          201,811
                                     --------         --------
Net cash inflow from capital
 expenditure and financial investment          18,046            (8,061)
                                              -------           -------
                                               32,243             7,005

Equity dividends paid                         (11,956)          (11,116)
                                              -------           -------
                                               20,287            (4,111)
Financing                                           -                 -
                                              -------           -------
Increase/(decrease) in cash                    20,287            (4,111)
                                              =======           =======

NOTES
1.    The  financial statements have been prepared  in  accordance
with UK generally accepted accounting practice ("UKGAAP") and  the
AIC's  Statement of Recommended Practice "Financial Statements  of
Investment Trust Companies".The same accounting policies used  for
the year to 31 December 2005 have been applied.

2.    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  2005,  which
contained an unqualified Report of the Auditors under section  235
of  the  Companies  Act, 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.

3.   The Annual Report is expected to be posted to shareholders on
29  January  2007.  Members of the public may obtain  copies  from
Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3  7NS  or
from its website at www.aberforth.co.uk.


CONTACT:  David Warnock  Aberforth Partners LLP  Tel:[phone]

Aberforth Partners LLP, Secretaries - 22 January 2007

ANNOUNCEMENT ENDS