Interim Results

Aberforth Smaller Companies Tst PLC
18 July 2000

                  ABERFORTH SMALLER COMPANIES TRUST plc           
                                                          
                             INTERIM RESULTS
                                    
                   For the Six Months to 30 June 2000


FEATURES

     Fully Diluted Net Asset Value Total Return   +2.8%

     Benchmark Index Total Return                 -0.7%

     Interim Dividend Increase                    +5.3%


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


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

'RESULTS REVIEW

For  the six months to 30 June 2000, ASCoT achieved a total return of  plus
2.8%  which compares favourably with a total return of minus 0.7% from  the
Hoare  Govett  Smaller Companies Index (excluding investment trusts).   The
comparative  performance of large companies, represented by the  FTSE  All-
Share Index, was a total return of minus 5.5% over the same period.

Your  Board  is  pleased  to announce an increase in  this  year's  interim
dividend to 3.00p per Ordinary Share, up from 2.85p last year, representing
an  increase  of 5.3%.  This interim dividend will be paid on  1  September
2000 to holders of Ordinary Shares on the register on 4 August 2000.

During the six month period, your Company has bought-in 50,000 Warrants for
cancellation  at a price which enhanced ASCoT's fully diluted  asset  value
only  marginally  due  to  the small number of Warrants  bought-in.   There
remain 2.9 million Warrants outstanding and your Company is prepared to buy
these  in at attractive prices.  In addition, at the Annual General Meeting
held   in   February,  Shareholders  passed  resolutions  renewing  ASCoT's
authority  to buy-in up to 14.99% of its Ordinary Shares and to change  the
Articles  of  Association so that ASCoT will not  have  to  relinquish  its
status  as  an  investment company should it do so.  To date,  no  Ordinary
Shares have been bought-in, however your Board will not hesitate to  do  so
should we believe it to be in Shareholders' best interests.

At  31  December  1999, ASCoT's gearing ratio was 4.9%  which  reflected  a
gradual  reduction from its peak in July 1999 of 21.0%.  As I noted  in  my
Statement in January of this year, this reduction in gearing reflected your
Managers'  cautious  view of prospective absolute  returns  at  that  time.
ASCoT's gearing was subsequently eliminated during February and a net  cash
position  of  6.2%  has  now  been accumulated  reflecting  your  Managers'
continued caution.  However, it is not intended to take this cash  position
further  as  it  is  ASCoT's policy to operate close to  a  fully  invested
position and to employ gearing on a tactical basis.

INVESTMENT PERFORMANCE

The  six  month  period  includes within it two very different  stockmarket
environments.   In  the  first  ten weeks of the  calendar  year  financial
markets  globally  behaved  as they had in the second  half  of  1999  with
incredible enthusiasm for the New Economy benefiting the Technology, Media,
and  Telecommunications  sectors leading to the now universally  recognised
acronym  of TMT.  Over that period stockmarket interest became increasingly
speculative as ever more esoteric methods of company valuation appeared and
investment  companies  targeting Internet start-ups sold  on  multiples  of
their  asset  value ascribing skills to their managers  akin  to  those  of
financial alchemists.  In March 2000 investor sentiment finally shifted and
share  prices  declined sharply around the globe with  tightening  monetary
policy in the USA playing a significant part.

Since  early  March 2000, interest in the TMT sectors has waned  and  share
prices have declined sharply.  Despite this fact they remain the sectors of
the stockmarket with the highest absolute returns over the twelve months to
June  2000.   At  the  same  time interest has returned  to  areas  of  the
stockmarket which had been at best ignored or at worst used as a source  of
cash  in the period from the end of August 1999 to the middle of March 2000
allowing  the Old Economy to retrace some, but certainly not  all,  of  the
ground lost since the middle of last year.

Your  Managers  are value investors seeking shares in companies  where  the
financial characteristics are expected to improve or are already attractive
but  remain  unrecognised by the stockmarket.  In the  environment  of  the
early  part  of  the  year this discipline struggled  as  the  majority  of
companies were shunned regardless of their valuation and, for the remaining
minority, investor optimism had ensured that long term potential  was  more
than fully recognised in prevailing share prices.  Indeed, towards the  end
of this period even some investment managers with a growth discipline found
the  environment  increasingly difficult as the shares of  companies  where
high  rates of future growth were anticipated had been driven to valuations
inconsistent with their likely achievements.  Hence, towards the latter end
of  this  period  of  stockmarket euphoria, it was the  so-called  momentum
investor who was the major beneficiary.

As  one  would anticipate, ASCoT underperformed its benchmark in the  early
part  of  the  year by a wide margin.  This is clearly illustrated  in  the
table  below  which highlights the difference between ASCoT's total  return
and  that  of the investment benchmark for the first two and the last  four
months of the period to end June.


                                                                  
                                 ASCoT           HGSC           Under/
Total Returns                     NAV          (ex ITs)     Out-Performance
                                                          
1 January - 29 February 2000     -5.2%           +3.5%          -8.7% pts
1 March - 30 June 2000           +8.4%           -4.0%         +12.4% pts


                                                          
However,  as is equally apparent, ASCoT recovered ground as quickly  as  it
was lost and, as stated previously, outperformed the benchmark over the six
month  period  as a whole.  This sharp improvement in relative  performance
reflects the following factors.

First,  ASCoT,  although  exposed to the TMT sectors  where  your  Managers
believed  that  value existed, was underexposed relative to  the  benchmark
index and benefited from that position as share prices declined.

Secondly,  the other facet of being underexposed to the TMT sectors  was  a
greater  exposure to segments of the stockmarket previously ignored  during
the period of New Economy euphoria.  The level of apathy prevailing earlier
in  the  year  created an environment where businesses with  strong  market
positions,  good  returns on assets and potential  for  unit  growth,  were
available  at  historically  very attractive valuations.   Recently,  these
fundamentally  attractive  features have received  greater  attention  from
investors  with better share price performances being the result.   Further
impetus to this return to more fundamental values came from an increase  in
the  level  of  corporate activity with offers being made for companies  at
significant  premia to prevailing share prices with cash  often  being  the
form  of  consideration.   ASCoT  benefited  directly  from  a  number   of
transactions and indirectly as investors have sought out the next target in
areas of the stockmarket where corporate activity has been high.

Accordingly, the factors which were assistive to performance in the closing
months  of  the   first  half  of 2000 were the  opposite  of  those  which
prevailed  earlier in the year and at the end of 1999.  Over the last  year
technology  exposure has been the key driver to relative  returns  and  the
underweighting in these areas reflects the fact that in the  view  of  your
Managers, valuations have been excessive in relation to the likely level of
future  profits. Major technological advances are likely but they will  not
always be correlated with making money from the shares of companies exposed
to   those   changes.   However,  Shareholders,  who  are  quite  correctly
encouraged  by  technological change and its longer term  implications  for
productivity, should take comfort from two factors.

First,  the  principal  barrier  to  greater  exposure  by ASCoT to the TMT
sectors is  one  of  price.  The  combination  of  more  equity  supply and
companies failing to meet somewhat heady expectations should lead to future
opportunities  to  gain  exposure at valuations where money can be made for
Shareholders.

Secondly,  your Managers see the distinction between the Old  and  the  New
Economy  becoming increasingly irrelevant.  The key driver for any business
is  the ability to use new technology to attract new customers or deal with
existing  customers  at  a  lower  cost.  In  this  regard  many  companies
currently perceived as belonging to the dark ages are well positioned  with
products,  services  and  customers combined with the  necessary  level  of
existing profits and cash flow to fund any change in their business models.
Companies  of this type are well represented in ASCoT's portfolio  and  are
available   at   modest  valuations  with  a  good  chance  of   exploiting
technological  change.  They may prove to be more remunerative  investments
than recently formed highly valued businesses dependent on external funding
and therefore the whim of the financial markets.

INVESTMENT OUTLOOK

The last few months have seen an improvement in the stockmarket environment
for  the value style practised by your Managers.  However, this change  has
been  modest in the context of the relative performance trends of the  last
twelve  months  and your Managers are optimistic regarding future  relative
performance for the following reasons.

The popular stockmarket areas of the last twelve months remain expensive in
an  historic context and are vulnerable to both profit disappointments  and
additional  supply  of shares.  Further, the areas of  the  US  stockmarket
which  set  the  valuation  benchmark for  the  technology  sectors  remain
vulnerable  to further monetary tightening as the Federal Reserve  attempts
to slow the US economy to more sustainable levels.

The  derating  of  significant elements of the UK stockmarket  outwith  the
popular areas described has created many opportunities for your Managers to
select  higher quality businesses with good potential for profits expansion
at historically attractive valuations.  The table below details some of the
salient characteristics of the portfolio.
                                  

                                
Portfolio Characteristics as at 30 June       2000                1999
                                                                   
Number of Companies in the Portfolio            95                 109
Weighted Average Market Capitalisation      £289.7m             £262.7m
Capitalisation
Price Earnings Ratio (Historic)               12.2x               13.2x
Net Dividend Yield (Historic)                  3.5%                3.2%
Dividend Cover (Historic)                      2.4x                2.4x


                                                                   
Against  a background of secular low inflation the necessity for industries
to  consolidate compounded by the desire for greater portfolio  focus  from
investment  institutions will continue to drive corporate activity  to  the
benefit of ASCoT.

In  my  Statement in January of this year, I sought to assure  Shareholders
that,  when the stockmarket environment changed from the obsession at  that
time  with  'growth'  companies to one more favourable  to  your  Managers'
investment style, ASCoT's relative performance would benefit.  It  is  very
reassuring  to note this has proved to be the case recently.  Provided  the
stockmarket  continues  its  return to an  environment  whereby  companies'
valuations are capable of rational explanation, your Board believes ASCoT's
future relative performance should be good.


                                                           William Y Hughes
                                                                   Chairman
                                                              18 July 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 Six Months ended 30 June 2000
                               (unaudited)

                            6 months to               6 months to             
                            30 June 2000        30 June 1999 (restated)
                     Revenue Capital    Total  Revenue Capital    Total
                       £'000   £'000    £'000    £'000   £'000    £'000
                                                                 
Realised                   -  18,423   18,423        -   4,406    4,406
gains/(losses) on sales
Unrealised                 - (14,946) (14,946)       -  69,723   69,723
gains/(losses)        ------  ------   ------   ------  ------   ------
                                                                 
Gains/(losses) on          -   3,477    3,477        -  74,129   74,129
investments
Deemed cost of                                                   
Warrants purchased for
cancellation               -     (41)     (41)       -    (793)    (793)
Dividend income        4,980       -    4,980    5,195       -    5,195
Interest income          234       -      234       55       -       55
Other income               4       -        4        1       -        1
Investment              (462)   (771)  (1,233)    (362)   (601)    (963)
management fee
Other expenses           (98)      -      (98)    (129)      -     (129)
                      ------  ------   ------   ------  ------   ------       
                                                     
Net return before                                                
finance
costs and taxation     4,658   2,665    7,323    4,760  72,735   77,495
Interest payable and                                             
similar
charges                  (41)    (69)    (110)    (421)   (703)  (1,124)
                      ------  ------   ------   ------  ------   ------       
                                                        
Return on ordinary                                               
activities
before tax             4,617   2,596    7,213    4,339  72,032   76,371
Tax on ordinary            -       -        -        -       -        -
activities
                      ------  ------   ------   ------  ------   ------       
                                                      
Return attributable                                              
to equity shareholders 4,617   2,596    7,213    4,339   72,032   76,371
Dividends in respect                                             
of equity shares      (2,498)      -   (2,498)  (2,359)       -   (2,359)
                      ------  ------   ------   ------   ------   ------      
                                     
Transfer to reserves   2,119   2,596    4,715    1,980   72,032   74,012
                      ------  ------   ------   ------   ------   ------  
                                                                 
                                                                 
Returns per Ordinary                                             
Share
- Basic                5.56p   3.13p    8.69p    5.24p   87.04p   92.28p
Returns per Ordinary                                             
Share
- Diluted              5.44p   3.06p    8.50p    5.08p   84.38p   89.46p
Dividends per                                                    
Ordinary
Share                  3.00p       -    3.00p    2.85p        -    2.85p

NOTES

The calculations of revenue return per Ordinary Share are based on net
revenue  of  £4,617,000 (30 June 1999 - £4,339,000)  and  on  Ordinary
Shares of 83,008,843 (30 June 1999 - 82,755,687) in the case of  basic
returns  and  84,920,175 (30 June 1999 - 85,369,020) in  the  case  of
diluted returns.

The calculations of capital return per Ordinary Share are based on net
capital  gains  of  £2,596,000 (30 June 1999 -   £72,032,000)  and  on
Ordinary Shares of 83,008,843 (30 June 1999 - 82,755,687) in the  case
of  basic  returns and 84,920,175 (30 June 1999 - 85,369,020)  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 30 June 2000
                               (unaudited)

                                      30 June     30 June     31 December
                                        2000        1999          1999
                                       £'000       £'000         £'000
                                                              
Securities  listed  on  the   London  254,809     304,336       279,325
Stock Exchange
                                                              
Cash at bank                           14,725           -             -
Debtors                                 6,214       6,784         5,278
Bank overdrafts                             -     (46,911)      (14,205)
Other creditors                        (4,195)     (7,907)       (4,028)
                                      -------     -------       -------
Net current assets/(liabilities)       16,744     (48,034)      (12,955)

                                      -------     -------       -------       
                                                               
Total assets less current             271,553     256,302       266,370
liabilities
                                      -------     -------       -------
                                                              
                                                              
Capital and reserves: equity                          
interests
  Called up share capital (Ordinary       833         828           828
  Shares)
                                                              
Reserves:                                                     
  Share premium account                   500           2             2
  Special reserve                     133,525     133,525       133,525
  Capital reserve - realised          118,665      78,980       101,158
  Capital reserve - unrealised          9,012      35,843        23,958
  Revenue reserve                       9,018       7,124         6,899
                                      -------     -------       -------       

                                      271,553     256,302       266,370

                                      -------     -------       -------       
                
                                                              
Net Asset Values:                                             
  Ordinary Share (basic)               326.1p      309.7p        321.9p
  Ordinary Share (fully diluted)       318.6p      300.4p        313.0p
  Ordinary Share (diluted - FRS 14)    319.3p      301.1p        313.5p

NOTES

As  at 30 June 2000, the Company had 83,260,325 Ordinary Shares (30  June
1999  and 31 December 1999 - 82,757,359) and 2,878,897 Warrants (30  June
1999 - 3,821,863 and 31 December 1999 - 3,431,863) in issue.

On  31  March  2000,  as  a  result  of certain  holders  exercising  the
subscription rights of their Warrants, 502,966 Ordinary Shares of 1p were
issued  at 100p per share.  Also, during the six months to 30 June  2000,
the Company bought in 50,000 Warrants for cancellation at a total cost of
£76,000.


                       SUMMARY CASH FLOW STATEMENT
                                    
                  For the Six Months ended 30 June 2000
                               (unaudited)

                            6 months to               6 months to
                            30 June 2000              30 June 1999
                         £'000        £'000        £'000        £'000
                                                             
Net cash inflow from                                         
operating activities                  3,286                     3,083
                                                             
Returns on                                                   
investment and
servicing of finance
Interest paid             (182)                   (1,018)      
                        ------                    ------                      
             
Net cash outflow                                             
from returns on                                                   
investment and
servicing of finance                   (182)                   (1,018)
                                                             
Taxation                                                     
UK taxation                 23                        15           
recovered               ------                    ------     
                                                             
Net cash inflow from                     23                        15
taxation
                                                             
Capital expenditure                                          
and financial investment                                         
Payments to acquire                                          
investments            (51,947)                  (93,492)     
Receipts from sales                                          
of investments          81,254                    72,059       
                        ------                    ------                      
                        
Net cash                                                     
inflow/(outflow)
from capital                                                 
expenditure
and financial                        29,307                   (21,433)
investment                           ------                    ------
                                     32,434                   (19,353)
                                                             
Equity dividends                     (3,931)                   (3,765)
paid                                 ------                    ------
                                     28,503                   (23,118)
                                                             
Financing                                                    
Issue of Ordinary         503                         3            
Shares
Warrants purchased                                           
for cancellation          (76)                   (1,545)      
                       ------                    ------                       
                      
Net cash                                                     
inflow/(outflow)
from financing                          427                    (1,542)
                                     ------                    ------         
               
Increase/(decrease)                  28,930                   (24,660)
in cash                              ------                    ------ 
                                                             


NOTES

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 of the six month  periods
to  30  June 1999 and 2000.  The 1999 figures in the Statement  of  Total
Return have been restated to reflect this change in policy.

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 1999, 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.

The  Interim Report is expected to be posted to shareholders on  21  July
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