Final Results

ABERFORTH SMALLER COMPANIES TRUST plc

PRELIMINARY RESULTS

For the Year to 31 December 2004


FEATURES

Net  Asset  Value  Total   Return  +28.7%

Benchmark Index Total Return  +20.7%

Increase   in   Dividends   per   Ordinary   Share  +8.9%


Aberforth Smaller Companies Trust plc (ASCoT) invests only in  small UK  quoted
companies and does not invest in any unquoted securities, AIM listed securities
or  securities  issued by  investment trusts  or investment companies. ASCoT is
managed by Aberforth Partners.



CHAIRMAN'S STATEMENT TO SHAREHOLDERS

REVIEW OF 2004 PERFORMANCE

Aberforth  Smaller Companies Trust plc (ASCoT) achieved a net asset value  total
return  of 28.7% for the year to 31 December 2004, which compares with  a  total
return  of  20.7%  from  the  Hoare Govett Smaller  Companies  Index  (Excluding
Investment Companies), the Company's investment benchmark.  Larger companies, as
represented  by  the FTSE All-Share Index, registered a net  asset  value  total
return  of  12.8%.   ASCoT has therefore out-performed both  its  benchmark  and
larger companies for the year.

Small  companies  out-performed large companies during  2004  despite  a  steady
headwind  from  rising  short term interest rates.  Corporate  performance,  not
least  in  relation to cash generation, has been good.  The result is relatively
strong balance sheets, which should diminish the impact of rising interest rates
compared  with  past cycles.  There is also evidence that dividends  from  small
companies have grown more quickly than those from large companies during 2004.

Building  on  the theme of dividend growth, the Board is pleased to recommend  a
final  dividend of 7.25p, which produces total dividends for the year of  11.00p
representing  an  increase  of 8.9% on the total for  the  previous  year.   The
compound  annual dividend growth enjoyed by ASCoT's Shareholders over  the  last
ten  years  has  been 9.1% and, in the Board's opinion, has  been  an  important
driver  of  ASCoT's  overall returns.  The Board is pleased that  this  rate  of
increase  has  outstripped  both  inflation and  dividend  growth  from  smaller
companies  as  a  whole.  Dividend yield and dividend growth are  a  fundamental
rather  than  residual  consideration in the Managers'  investment  process  and
therefore the dividends paid to ASCoT's Shareholders are a key reflection of its
success.   It  is  also  worth highlighting that ASCoT's  revenue  reserves  are
equivalent to more than one year's dividend payments.

Subject to Shareholders' approval, the final dividend of 7.25p per share will be
paid on 4 March 2005 to Shareholders on the register at the close of business on
4  February 2005.  ASCoT operates a Dividend Reinvestment Plan and the  relevant
documentation is available from Aberforth Partners' website, or on request,  for
those Shareholders not already participating in this Plan.


SHARE BUY BACK AUTHORITY AND TREASURY SHARES

At  the Annual General Meeting in February 2004, the authority to purchase up to
14.99%  of  ASCoT's Ordinary Shares was renewed.  The Board will  be  seeking  a
renewal  of  this  authority at the Annual General Meeting  to  be  held  on  23
February  2005.  The 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.

Any Ordinary Shares bought back by ASCoT would be cancelled.  The Board does not
currently  consider it appropriate to seek Shareholders' authority to hold  such
Shares  in treasury.  We will, however, keep that policy under review and revert
to Shareholders if and when deemed appropriate.


CONTINUATION VOTE

Shareholders  will  be aware that an ordinary resolution is  proposed  at  every
third  Annual General Meeting to the effect that ASCoT continues to  manage  its
affairs as an investment trust.  Such a resolution will again be proposed at the
Annual General Meeting on 23 February 2005.

In the three years since the last continuation vote, ASCoT's net asset value has
provided  a  compound annual total return of 16.8% compared with 9.8%  from  the
Hoare  Govett Smaller Companies Index (Excluding Investment Companies) and  1.8%
from the FTSE All-Share Index.

In addition to performance, the Board places great importance on the consistency
of  investment  approach and continuity of investment personnel.   In  Aberforth
Partners,  the  Board believes ASCoT enjoys these management features  alongside
contractual  terms and a total expense ratio that are amongst the  best  of  the
peer group.

After considering these factors, the Board recommends that Shareholders vote  in
favour of ASCoT's continuation.


ELECTRONIC PROXY VOTING

In  January 2004, the Shareholder Voting Working Group recommended that at least
all  FTSE  350 Index constituents introduce electronic voting capabilities.   In
line  with  this recommendation, the Board is pleased to offer electronic  proxy
voting,  including CREST voting capabilities, in connection with the forthcoming
Annual General Meeting.


BOARD COMPOSITION

In  July, the Board was joined by Professor Paul Marsh, Professor of Finance and
Associate  Dean, Finance Programmes at London Business School,  and  Dr.  Walter
Nimmo, Vice Chairman of Charles River Laboratories International, Inc., as  non-
executive  independent  Directors.  From different backgrounds,  each  brings  a
wealth  of  investment and business experience, not least of smaller  companies,
and the Board has already benefited from their contribution.

I  have  served  Shareholders as Chairman for the fourteen years  since  ASCoT's
inception and, as previously intimated, will be retiring from the Board  at  the
forthcoming  Annual General Meeting.  It is intended that David Shaw  will  then
assume the role of Chairman.

From  initial net assets of £14.5m in December 1990, through three further  fund
raisings  totalling  £179.7m and the payment of £77.0m in dividends,  ASCoT  had
grown to £544.6m at the year-end.  Over that period the net asset value compound
annual total return was 16.8% compared with 11.2% from its investment benchmark.
I  doubt  that  any of us involved with ASCoT's launch would have predicted  the
outcome  to date.  My tenure has been both instructive and stimulating.  Working
with  a highly focussed and dedicated team of managers has provided insight into
the  tools  of  analysis  critical to performance  that  is  consistently  above
average.  Stimulation is an outcome of being involved not only with high calibre
managers  but  with  directors  who have put  shareholder  value  as  their  key
priority.  Their support has ensured that ASCoT has been at the forefront in the
implementation of all corporate governance initiatives.  I am totally  confident
that  under David Shaw's chairmanship continued out-performance will remain  the
Board's priority.


SUMMARY AND OUTLOOK

The  UK  corporate  sector appears to be in a robust position with  strong  cash
flows  being supportive of future dividend growth.  This is consistent with  the
UK's  recovery  over  the  last  two years as the  global  economy  avoided  the
deflationary spiral feared by many commentators.  Small companies have benefited
from  this  environment  and  it would therefore  be  unwise  for  investors  to
extrapolate the significant returns enjoyed over the last two years.

The  Board  is,  however,  convinced that the Managers  will  continue  to  take
advantage  of the opportunities presented by ASCoT's smaller company  investment
universe.


                                                                William Y Hughes
                                                                        Chairman
                                                                 20 January 2005




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*)
 (unaudited)
For the Year ended 31 December 2004


                          12 months to            12 months to
                        31 December 2004        31 December 2003
                       Revenue Capital Total  Revenue Capital Total
                       £ 000   £ 000   £ 000   £ 000   £ 000  £ 000

Realised gains on          -  59,687  59,687       -  11,616 11,616
sales
Unrealised gains           -  54,013  54,013       -  82,561 82,561
                       ------ ------  ------  ------  ------ ------

Gains on investments       - 113,700 113,700       -  94,177 94,177

Deemed cost of
Warrants
purchased for              -       -       -       -     (50)  (50)
cancellation
Dividend income        14,761      -  14,761  10,927       - 10,927
Interest income           339      -     339     484       -    484
Other income               53      -      53      19       -     19
Investment management  (1,680)(2,800) (4,480) (1,107) (1,844)(2,951)
fee
Other expenses           (362)     -    (362)   (297)      -   (297)
                       ------ ------  ------   ------ ------ ------

Return on ordinary     13,111 110,900 124,011  10,026 92,283 102,309
 activities before
 finance costs and tax
Interest payable and      (26)    (43)    (69)      -      -       -
similar charges
                       ------  ------  ------  ------ ------  ------

Return on ordinary     13,085 110,857 123,942  10,026 92,283 102,309
  activities
  before tax
Tax on ordinary            -      -     -      -      -     -
activities
                       ------  ------  ------  ------ ------  ------
Return attributable to
  equity shareholders  13,085 110,857 123,945  10,026 92,283 102,309

Dividends in respect  (10,869)      - (10,869) (9,490)     -  (9,490)
of equity shares
                       ------  ------  ------  ------ ------  ------

Transfer to reserves    2,216 110,857 113,073     536 92,283  92,819
                       ====== ======= =======  ====== ======  ======


Returns per Ordinary   13.24p 112.19p 125.43p  11.59p 106.65p 118.24p
Share

Dividends per Ordinary 11.00p      -   11.00p  10.10p      -   10.10p
Share

NOTES
The calculations of revenue return per Ordinary Share are based on
net  revenue  of £13,085,000 (2003 - £10,026,000) and on  Ordinary
Shares numbering 98,809,788 (2003 - 86,531,269).

The calculations of capital return per Ordinary Share are based on
net  capital  gains  of  £110,857,000 (2003 -£92,283,000)  and  on
Ordinary Shares numbering 98,809,788 (2003 - 86,531,269).

* 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 2004
(unaudited)

                                             31         31
                                       December   December
                                           2004       2003
                                          £ 000      £ 000

Securities officially listed on the     535,525    415,668
London Stock Exchange
                                       --------   --------

Debtors                                   1,911      1,048
Cash at bank                             14,378     22,682
Creditors                                (7,215)    (7,872)
                                       --------   --------

Net current assets                        9,074     15,858

                                       --------   --------

Total assets less liabilities           544,599    431,526
                                       ========   ========

Capital and reserves: equity interests
  Called up share capital
  (Ordinary Shares)                         988        988

Reserves:
  Share premium account                       -     63,780
  Special reserve                       197,305    133,525
  Capital reserve - realised            218,139    161,295
  Capital reserve - unrealised          114,589     60,576
  Revenue reserve                        13,578     11,362
                                       --------   --------

                                        544,599    431,526
                                       ========   ========

Net Asset Value per Ordinary Share       551.2p     436.7p


NOTES

As  at  31  December 2004, the Company had 98,809,788 Ordinary
Shares  (2003 - 98,809,788) and no Warrants (2003  -  nil)  in
issue. No Ordinary Shares were bought in during either year.

During April 2003, as a result of remaining holders exercising
the  subscription  rights of their Warrants, 963,311  Ordinary
Shares  were issued at 100p per share. During the year  to  31
December  2003,  the  Company bought in  40,000  Warrants  for
cancellation at a total cost of £77,000.


SUMMARY CASH FLOW STATEMENT

For the Year ended 31 December 2004
(unaudited)

                              12 months to     12 months to
                               31 December     31 December
                                  2004             2003
                              £ 000   £ 000   £ 000   £ 000

Net cash inflow from                 10,159           8,110
  operating activities

Returns on investment and
  servicing of finance
Interest paid                  (69)                -
                            -------          -------
Net cash outflow from
  returns on investment
  and servicing of finance              (69)              -

Capital expenditure and
  financial investment
Payments to acquire        (220,674)         (91,487)
 investments
Receipts from sales of      212,506          106,412
 investments
                            -------          -------
Net cash (outflow)/inflow
  from capital expenditure
  and financial investment           (8,168)          14,925
                                    -------          -------
                                      1,922           23,035

Equity dividends paid               (10,226)          (8,168)
                                    -------          -------
                                     (8,304)          14,867
Financing
Issue of Ordinary Shares          -            1,337
Warrants purchased for            -              (77)
  cancellation
                             -------         -------


Net cash inflow from                      -            1,260
  financing
                                    -------          -------

(Decrease)/increase in cash         (8,304)           16,127
                                    =======          =======


NOTES

1.   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
2003,  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.

2.  The Annual Report is expected to be posted to shareholders
on  24  January 2005.  Members of the public may obtain copies
from Aberforth Partners, 14 Melville Street, Edinburgh EH3 7NS
or from its website at www.aberforth.co.uk.


CONTACT:     John Evans,Aberforth Partners, Tel: [phone]

Aberforth Partners, Secretaries - 20 January 2005

ANNOUNCEMENT ENDS