Interim Results

ABERFORTH SMALLER COMPANIES TRUST plc

INTERIM RESULTS

For the Six Months to 30 June 2004


FEATURES

Net Asset Value Total Return                                +14.7%

Benchmark Index Total Return                                +10.6%

Increase  in  Interim  Dividend  per  Ordinary   Share       +7.1%


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 2004 Aberforth Smaller  Companies
Trust plc (ASCoT) achieved a total return of 14.7%, which compares
with  a  total  return  of  10.6% from the  Hoare  Govett  Smaller
Companies  Index (Excluding Investment Companies), your  Company's
investment  benchmark.  Larger companies, as  represented  by  the
FTSE  All-Share Index, registered a total return  of  2.8%.   Over
this period, therefore, ASCoT has out-performed its benchmark and,
in   addition,   smaller   companies  have  out-performed   larger
companies.

Your Board is pleased to announce an interim dividend of 3.75p per
share,  which  represents an increase of 7.1%  compared  with  the
equivalent  period  last  year.  This  rate  of  increase  broadly
reflects   the   underlying  growth  in  dividends  from   ASCoT's
portfolio.  The interim dividend will be paid on 3 September  2004
to  Shareholders  on  the register on 6 August  2004.   ASCoT  now
operates   a   Dividend  Re-Investment  Plan  and   the   relevant
documentation is available from Aberforth Partners' website, or on
request, for those Shareholders who are not already participating.

Your  Board  is  also  pleased  to announce  the  appointments  of
Professor  Paul  Marsh, Professor of Finance and  Associate  Dean,
Finance  Programmes  at  London Business School,  and  Dr.  Walter
Nimmo, Chairman, Chief Executive Officer and President of Inveresk
Research Group Inc., as non-executive independent Directors.  From
different  backgrounds,  each brings a  wealth  of  corporate  and
investment  experience, not least of smaller companies,  and  your
Board looks forward to their contribution.

As  Shareholders know, I shall be retiring from the Board  at  the
Annual  General  Meeting in February 2005, when  David  Shaw  will
assume  the role of Chairman.  Following the previously  mentioned
appointments,   he   will  be  assisted  by   five   non-executive
independent  Directors  with  significant  breadth  and  depth  of
relevant experience.

At  the  Annual  General  Meeting held in  February,  Shareholders
renewed  the authority for your Company to buy in up to 14.99%  of
its  Ordinary Shares.  Your Board has established, and keeps under
careful review, the circumstances under which such authority  will
be  utilised.  Should these circumstances arise, the Company  will
seek to purchase Ordinary Shares.  Any Ordinary Shares bought back
by the Company would be cancelled rather than held in Treasury.

At  the  Extraordinary General Meeting held  in  October  2003,  a
special  resolution  was approved to cancel ASCoT's  entire  share
premium  account, that also required the approval  of  the  Court.
This  has now been granted and the increased special reserve  that
has  arisen  can be used for any purposes for which  distributable
profits are available under the Companies Act 1985, including  the
funding of any Ordinary Shares bought in.

ASCoT  is  not currently geared (beyond a very small overdraft  at
the  end of June) and has no long term debt.  A flexible £80m debt
facility  is, however, available and may be drawn down on request.
This,  or  similar facilities, have been used in the past  to  the
advantage  of  ASCoT's Shareholders, and will  no  doubt  be  used
again.

INVESTMENT BACKGROUND

The last six months have seen confirmation of a worldwide economic
recovery.   Fuelled  by historically low interest  rates,  the  US
economy  has driven the expansion: consensus expectations for  GDP
growth  in 2004 are now one fifth higher than they were six months
ago.   The  US has, though, been assisted by the nations  of  East
Asia.   Of  these,  China is the most notable, acting  both  as  a
source  of supply of cheap goods to the developed world and  as  a
source of demand for US dollar assets.

Happily, the emerging economies of the region have been joined  by
Japan, for so long a laggard in terms of economic growth: Japanese
GDP  grew by 6% at an annualised rate in the first quarter of 2004
and has now increased for eight consecutive quarters. Importantly,
this expansion is not now due only to export growth: one third  of
the first quarter's progress was generated by private consumption.

Europe's   economic  performance,  on  the  other  hand,   remains
sluggish.   Although recent survey data do suggest an  improvement
in prospects, much of this is attributable to the growth in demand
from  the  rest of the world: Europe has yet to generate  a  self-
sustaining recovery.

The  UK  stands  in contrast to its continental  peers.   Economic
growth  in  2004 is robust, supported by a combination  of  higher
government  spending, a recovery in investment  and  the  reliable
household  sector.   The  resilience  of  the  consumer  has  been
bolstered  by falling unemployment and average earnings growth  of
almost  5%.   Less  securely,  and  in  a  circular  fashion,  the
continuing strength of the housing market has also played a role.

In aggregate, therefore, the data pertaining to the real growth of
the world's economies have, on balance, been positive over ASCoT's
first  half.   This  has  been  an  environment  conducive  to   a
continuation of profits growth.  In the UK, corporate profits as a
percentage  of  GDP  have returned to levels of  mid  2000.   More
remarkably,  albeit  assisted  by dollar  weakness,  US  corporate
profits  as  a  percentage of GDP have surged to levels  not  seen
since the late 1990s.

Given  this and the recent exceptional level of earnings  upgrades
from   Wall  Street  analysts,  it  is  perhaps  surprising   that
stockmarkets  have not performed rather better over ASCoT's  first
half:  in local currency and capital only terms, the S&P 500 Index
is up by 2.6% and the FTSE All-Share Index by just 1.0%.  Clearly,
the  market discounted much of the recovery, but it has also  been
preoccupied by other factors.

The  geopolitical climate remains uncertain: events  in  Iraq  and
Saudi  Arabia  increase the perceived risks of  holding  equities.
More  tangibly, Middle Eastern turmoil has combined  with  Chinese
and  American  demand  to  drive up the  price  of  oil.   China's
influence can also be observed in the prices of other commodities,
such as steel.  Commodity prices have a direct, though potentially
delayed, effect on corporate profitability.  With the share of GDP
represented  by  corporate profits close to peak  levels,  it  may
prove  difficult  for their growth to continue exceeding  that  of
GDP.

Compounding these concerns are indications - in commodity  prices,
producer  prices  and average earnings - that the  debate  between
inflation  and deflation may be swinging towards the former  camp.
While such an outcome ought to prove the more benign for equities,
the  transition would not be painless.  Such pain is most  obvious
in  higher interest rates.  In contrast to the UK, where  the  MPC
has  raised rates four times in eight months, the US has seen just
one  increase, on the last day of June.  However, fears  that  the
Fed  may  be underestimating the nascent inflation risk have  been
taken into account by the bond market, which, from mid March,  has
endured its sharpest fall since 1994.

On   both   sides  of  the  Atlantic,  therefore,  investors   are
confronting tighter monetary conditions, something they  have  not
had  to  do  for  four  years.   The inevitable  pressure  on  the
valuation  of  equities - and indeed other asset classes  -  risks
being   exacerbated  by  the  unwinding  of  leveraged  investment
strategies whose viability has relied on cheap money.

INVESTMENT PERFORMANCE

In  the  first  two  months  of 2004, small  UK  quoted  companies
sustained  the  momentum  of  the  previous  year,  though   their
performance from the end of February was more subdued, possibly as
the  impact of higher interest rates was felt.  Nevertheless,  the
first  half  as  a  whole saw the HGSC (XIC)  Index  achieve  good
returns both in absolute terms and relative to their larger peers.
These returns were exceeded by ASCoT.

ASCoT's  out-performance  was broadly based,  with  the  portfolio adding
value against the HGSC (XIC) Index in 22 of the 31 sectors that make  up
the  benchmark.  In common with previous phases of  good  relative
performance, the identification of attractively valued  businesses
(i.e. stock selection) proved more important than the exploitation
of  broad industrial themes (i.e. sector selection).  However, one
sector  worthy  of  note is Oil & Gas.  In the  six  months,  this
accounted  for  over one sixth of the portfolio's capital return and
for over  one  quarter of the benchmark's. The rising oil  price was
influential, but more important was the exceptional performance of
the  exploration companies, as certain discovery successes whetted
investors' appetite for high impact drilling programmes.

With  greater  confidence in economic growth,  corporate  activity
continued the upturn that began in the second half of 2003.  ASCoT
has  been  a disproportionate beneficiary: twelve of its portfolio
companies were at the receiving end of corporate activity  in  the
first  six  months of the year.  Performance was also enhanced  by
value  creation  initiatives  from  six  other  investments:  such
initiatives  include returns of capital and disposals of  non-core
businesses.  Not unexpectedly, equity issuance has also picked up.
In  its first half, ASCoT subscribed to nine fund raisings, two of
which were subscriptions to initial public offerings, a relatively
rare occurrence for ASCoT.

An  analysis of the portfolio as at 30 June 2004 suggests that the
environment for dividend growth remains healthy.  There  were  124
companies  in the portfolio at the end of June.  Of these,  it  is
the policy of 105 to pay a dividend.  These 105 companies paid  99
dividends  that  could be earned in the first half.   Of  the  99,
three  were cuts, 25 were unchanged on the corresponding  payments
in  the  previous year and 71 were increases. The median  dividend
increase  of  the 99 companies was 8.3% year on year. Although  it
should be noted that ASCoT's actual receipts vary from this figure
since the portfolio is actively managed, this rate of increase  is
encouraging:  it is in excess of the rate of inflation  and  gives
some fundamental justification to recent share price movements.

INVESTMENT OUTLOOK

The  interplay of developments in the real economy  and  those  in
financial  markets  is, in the short run at least,  unpredictable.
It  should  not  therefore  come as a surprise  that  the  present
investment   outlook  is  radically  different  from  that   which
prevailed a year ago.  As highlighted in ASCoT's previous  interim
report,  markets then were fretting about deflation, to which  the
monetary  authorities had reacted with lower  interest  rates  and
vague references to "unconventional measures".  Twelve months  on,
it  seems  that  these tactics have succeeded.  Economic  recovery
appears  well  entrenched and, in combination  with  earlier  cost
cutting,  has  generated a strong recovery in  corporate  profits.
Moreover,  the deflationary threat seems to have receded,  to  the
extent  that  investors' greater fear is now that monetary  policy
may  have  remained  too loose for too long and that  inflationary
pressures are mounting.

However,  with public and private sector debt levels in  developed
economies  remaining high, it would appear premature to write  off
the risk of deflation.  Fine judgment on the part of central banks
is  required to ensure that monetary tightening - or the financial
markets' anticipation of it - does not have too dramatic an effect
on  demand.   At  the very least, with interest rates  rising,  it
would  seem reasonable to expect a period of more modest  economic
and profits growth.

In  such an environment, the stockmarket might struggle to produce
real  returns much above the historic average of 5-7%  per  annum.
However,  within  this  long  run  average,  shorter  periods   of
exaggerated  price movements - both up and down  -  are  probable,
especially   in  view  of  the  activities  of  leveraged   market
participants such as hedge funds.  Over the last year or  so,  the
direction has been upwards and small companies have led  the  way:
as  the  table below shows, their out-performance has  taken  them
close to the valuation of the FTSE All-Share Index, whose historic
PE and yield at the end of June were 16.1x and 3.2%.



                               30 June              30 June
                                 2004                2003
Characteristics            ASCoT   Benchmark    ASCoT   Benchmark

Number of Companies          124      707         103       827
Weighted Average Market    £337m    £414m       £309m     £334m
Capitalisation
Price Earnings Ratio       13.8x    16.0x       11.9x     13.4x
(Historic)
Net Dividend Yield          2.9%     2.6%        3.4%      3.0%
(Historic)
Dividend Cover (Historic)   2.5x     2.4x        2.5x      2.5x



The table also shows that your Managers are not slaves to the
benchmark.   A  universe  of 707 companies abounds  in  individual
opportunities  for the consistent application of value  investment
disciplines.   ASCoT's  portfolio is  thus  well  diversified  but
boasts  a lower valuation than both the HGSC (XIC) Index  and  the
FTSE  All-Share Index.  In a still uncertain world, this valuation
discount  should,  other things being equal, be  of  advantage  to
ASCoT.

                                                  William Y Hughes
                                                          Chairman

                                                      16 July 2004




The  Statement of Total Return, summary Balance Sheet and summary
Cash Flow Statement are set out below:-

STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account1)
(unaudited)

                                                6 months to          6 months to
                                                30 June 2004         30 June 2003
                                       Revenue  Capital Total   Revenue Capital Total
                                       £'000   £'000  £'000  £'000  £'000  £'000

Realised gains/(losses) on sales        -       32,788  32,788  -       (1,260) (1,260)
Unrealised gains                        -       24,673  24,673  -       47,623  47,623
                                        ------- ------- ------  ------- ------- -------
Net gains on investments                -       57,461  57,461  -       46,363  46,363
Deemed cost of Warrants
purchased for cancellation              -       -       -       -       (50)    (50)
Dividend income                         8,465   -       8,465   5,988   -       5,988
Interest income                         155     -       155     207     -       207
Other income                            47      -       47      9       -       9
Investment management fee               (805)   (1,342) (2,147) (475)   (792)   (1,267)
Other expenses                          (164)   -       (164)   (146)   -       (146)
                                        ------- ------- ------- ------- ------- -------
Return on ordinary activities
  before finance costs and tax          7,698   56,119  63,817  5,583   45,521  51,104
Interest on ordinary activities         (14)    (23)    (37)    -       -       -
                                        ------- ------- ------- ------- ------- -------
Return on ordinary activities
  before tax                            7,684   56,096  63,780  5,583   45,521  51,104
Tax on ordinary activities              -       -       -       -       -       -
                                        ------- ------- ------- ------- ------- -------
Return attributable to
  equity shareholders                   7,684   56,096  63,780  5,583   45,521  51,104
Dividends in respect of equity shares   (3,705) -       (3,705) (2,969) -       (2,969)
                                        ------- ------- ------- ------- ------- -------
Transfer to reserves                    3,979   56,096  60,075  2,614   45,521  48,135
                                        ======= ======= ======= ======= ======= =======
Returns per Ordinary Share:
                            Basic       7.78p   56.77p  64.55p  6.62p   53.97p  60.59p
                            Diluted     7.78p   56.77p  64.55p  6.59p   53.76p  60.35p

Dividends per Ordinary Share            3.75p   -       3.75p   3.50p   -       3.50p

NOTES

1.  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.

2.   The calculations of revenue return per Ordinary Share are based on net revenue of £7,684,000 (30 June 2003 -
£5,583,000) and on Ordinary Shares of 98,809,788 (30 June 2003 - 84,339,740) in the case of basic returns and 98,809,788
(30 June 2003 - 84,677,027) in the case of diluted returns.

The calculations of capital return per Ordinary Share are based on net capital gains of £56,096,000 (30 June 2003 -
£45,521,000) and on Ordinary Shares of 98,809,788 (30 June 2003 - 84,339,740) in the case of basic returns and
98,809,788 (30 June 2003 - 84,677,027) in the case of diluted returns.



 SUMMARY BALANCE SHEET
(unaudited)

                                        30 June         31 December     30 June
                                        2004            2003            2003
                                        £'000          £'000          £'000

Securities officially listed
on the London Stock Exchange            497,472         415,668         310,834
                                        -------         -------         -------

Cash at bank                            33              22,682          14,332
Debtors                                 2,914           1,048           5,233
Bank overdraft                          (509)           -               -
Other creditors                         (8,309)         (7,872)         (5,434)
                                        -------         -------         -------
Net current (liabilities)/assets        (5,871)         15,858          14,131

                                        -------         -------         -------
Total assets less liabilities           491,601         431,526         324,965
                                        =======         =======         =======

Capital and reserves: equity interests
  Called up share
    capital (Ordinary Shares)           988             988             848

Reserves:
  Share premium account                 -               63,780          2,043
  Special reserve                       197,305         133,525         133,525
  Capital reserve - realised            192,718         161,295         149,471
  Capital reserve - unrealised          85,249          60,576          25,638
  Revenue reserve                       15,341          11,362          13,440
                                        -------         -------         -------
                                        491,601         431,526         324,965
                                        =======         =======         =======


Net Asset Value per Ordinary
  Share (basic)                         497.5p          436.7p          383.1p



NOTES

1.      As at 30 June 2004, the Company had 98,809,788 Ordinary Shares in issue (30 June 2003 - 84,818,734 and 31 December
2003 - 98,809,788). On 10 November 2003, 13,991,054 Ordinary Shares were issued to shareholders of Aberforth Split Level
Trust plc under the terms of its proposed scheme of reconstruction. The consideration received, at fair value, was
£61,876,000.
2.      The cancellation of the share premium account, approved by shareholders at the Extraordinary General Meeting held on
29 October 2003, became effective on 21 June 2004 following approval by the Court of Session.






SUMMARY CASH FLOW STATEMENT
(unaudited)

                                                        6 months to     6 months to
                                                        30 June 2004    30 June 2003
                                                        £'000  £'000  £'000  £'000

Net cash inflow from operating activities                       5,330           3,802

Returns on investments and servicing of finance                 (37)            -

Capital expenditure and financial investment
Payments to acquire investments                        (123,687)                (34,101)
Receipts from sales of investments                     101,757                  42,390
                                                       --------                 --------
Net cash (outflow)/inflow from capital
   expenditure and financial investment                         (21,930)                8,289
                                                                --------                -------
                                                                (16,637)                12,091

Equity dividends paid                                           (6,521)                 (5,199)
                                                                --------                -------
                                                                (23,158)                6,892
Financing
Issue of Ordinary Shares                                -                       962
Warrants purchased for cancellation                     -                       (77)
                                                        ------                  ------
Net cash inflow from financing                                  -                       885
                                                                --------                -------
(Decrease)/increase in cash                                     (23,158)                7,777
                                                                ========                =======


NOTES

1.      The same accounting policies used for the year to 31 December 2003 have been applied. The financial statements have
been prepared in accordance with applicable accounting standards and with the Statement of Recommended Practice
"Financial Statements of Investment Trust Companies" (SORP).

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 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.

3.   The Interim Report is expected to be posted to shareholders on 22 July 2004.  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:     David Warnock - Aberforth Partners - 0131 220 0733

Aberforth Partners, Secretaries - 16 July 2004

ANNOUNCEMENT ENDS