Interim Results - Three Months to 31 March 2000

Shires Smaller Companies PLC
20 April 2000



SHIRES SMALLER COMPANIES PLC 
INTERIM REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2000

Comments

The share prices of UK smaller companies continued to outperform those of
larger market capitalisation stocks in the first three months of 2000. The total
return on the FTSE SmallCap Index (excluding Investment Companies) was
9.9%, which compared with -3.4% on the FTSE All-Share Index. The
performance of the UK stockmarket continued to be dominated by stocks offering
the prospect of capital growth but low dividend yields.

The total return on the fully diluted net assets of the Company over the
quarter was 1.5%. As the discount at which the ordinary share price stood
to underlying fully diluted net asset value per share fell slightly, the
total return to a shareholder was 5.4%, ahead of the return on net assets.

The Board has declared a first interim dividend of 1.50p in respect of
the year to 31 December 2000, payable on 30 June 2000 to shareholders on
the register at close of business on 26 May 2000. The first interim
dividend in respect of the year to 31 December 1999 was 1.45p.

At the Annual General Meeting on 25 March 2000 shareholders passed a
resolution that the Company should continue as an investment trust for a
further five year period after the Board outlined a proposed change in
investment strategy intended to raise the yield on net assets of the
Company to 6% per annum. The Board is currently taking steps to
introduce the changes in strategy outlined at the AGM.

For further information please contact:

David Williams
Managing Director
Glasgow Investment Managers
0141 572 2700

                                    

                       SHIRES SMALLER COMPANIES PLC

                 Consolidated Statement Of Total Return

                   (incorporating the Revenue Account)
                for the three months ended 31 March 2000

                        Three months to             Three months to 
                        31 March 2000               31 March 1999
                        (unaudited)                 (unaudited)
                       £000      £000     £000      £000     £000     £000
                      Revenue   Capital   Total    Revenue  Capital   Total

Gains on 
 investments             -        798      798       -       3,892    3,892
Dividends and 
 interest receivable 
  (note 1)              301        -       301      640       -         640
Profits less losses 
 of dealing subsidiary   40        -        40       -        -          -
Investment management 
 fee                    (62)     (62)     (124)     (50)      (50)     (100)
Other administrative
 expenses               (43)       -       (43)     (55)      -        (55)

Net return before finance
 costs and taxation     236      736       972      535     3,842     4,377

Finance costs of 
 borrowings             118      118       236      130       130       260

Return on ordinary 
 activities 
  before taxation       118      618       736      405     3,712     4,117

Taxation                  -        -         -       -       -          -

Return on ordinary activities
 after taxation for 
  the period            118      618       736      405     3,712    4,117

Dividends on 
 equity shares          295        -       295      285      -         285

Transfer (from)/
 to reserves           (177)     618       441      120     3,712    3,832

Return per share
 -undiluted            0.60p    3.14p     3.74p    2.06p    18.90p   20.96p
 -filly diluted        0.57p    3.01p     3.58p    1.96p    17.98p   19.94p

Dividends per share    1.50p                       1.45p



                        SHIRES SMALLER COMPANIES PLC

                           Group Balance Sheet
                           as at 31 March 2000

                                
                                 31 March 2000         31 December 1999
                                  (unaudited)            (audited)
                              £000           %          £000          %

Fixed assets
Investments listed on the London Stock Exchange
   - ordinary shares          54,641     113.2         54,467     113.9
   - convertibles              4,412       9.2          4,649       9.7

                              59,053     122.4         59,116     123.6

Current assets
Debtors                          939                     460
Investments of dealing
 subsidiary undertaking            -                      -
                                                     
                                 939                     460

Creditors:amounts falling                           
 due within one year           1,767                   1,793

Net current liabilities         (828)    (1.7)        (1,333)      (2.8)

Total assets less
 current liabilities          58,225    120.7         57,780      120.8

Creditors; amounts falling
 due after more than one year  9,969    (20.7)         9,968      (20.8)

Net assets                    48,256    100.0         47,815      100.0

Capital and reserves
Called up share capital        9,827                   9,827
Share premium account          9,509                   9,509
Capital redemption reserve     2,032                   2,032
Warrants reserve                 864                     864
Realised capital reserve      14,617                  10,410
Unrealised capital reserve    10,877                  14,466
Revenue reserve                  530                     707

Equity shareholders' funds     48,256                 47,815

Net asset value per share
   - undiluted                245.5p                  243.3p
   - fully diluted            230.7p                  228.7p

Notes

1. Dividends and interest receivable include special dividends totalling
£nil (1999 - £262,000).

2. These are not statutory accounts under section 240 of the Companies Act 1985
and are unaudited.  The information relating to the balance sheet as at 31
December 1999 is an extract from the latest audited accounts which have been
delivered to the Registrar of Companies; the report of the auditors on these
accounts was unqualified and did not contain a statement under Section 237(3) of
the Companies Act 1985.