Interim Management Statement

British Smaller Companies VCT PLC
24 January 2008


BRITISH SMALLER COMPANIES VCT PLC ('the Company')


INTERIM MANAGEMENT STATEMENT

For the quarter ended 31 December 2007


British Smaller Companies VCT plc presents its interim management statement for
the quarter ended 31 December 2007. This is the Company's second interim
management statement for the financial year ending 31 March 2008.


The unaudited net asset value per Ordinary share as at 31 December 2007 was
100.74 pence per share. This compares to 100.70 pence per share at 30 September
2007 after taking into account the dividend of 2 pence per share that was paid
on 16 November 2007.

Against a background of volatile markets the resultant total return at 31
December 2007 rose to 140.74 pence per share compared to 136.3 pence per share
at 31 March 2007.


The Company has continued to manage it's portfolio actively, having completed 7
investments at a total cost of £3.8 million in the eight months since the
fundraising closed on 30 April 2007.


The quarter to 31 December 2007 saw the Company realise two of its investments
on the same day, 19 October 2007. These were the sale of Cozart plc to Concateno
plc realising £2.24 million (compared to a cost of £0.45 million) and the
disposal of RMF Limited realising £0.24 million (compared to a cost of £0.09
million).


The number of Ordinary shares in issue at 31 December 2007 was 25,935,718.
During the three months ended 31 December 2007 40,000 shares were re-purchased
and held in Treasury by the Company at a price of 91.0 pence per share. In total
at 31 December 2007 the Company held 488,445 shares in Treasury.


Net assets at 31 December 2007 comprised the following:

                                                   £000          % of net 
                                                                   assets

Unquoted investments at fair value                8,278              31.7
Quoted investments at bid price                   4,370              16.7
                                               --------          --------
Total venture capital investments                12,648              48.4
                                               --------          --------

Cash and cash equivalents                        12,680              48.5
Other net current assets                            799               3.1
                                               --------          --------
Net assets                                       26,127             100.0
                                               --------          --------


The ten largest investments by valuation at 31 December 2007 were as follows:

                                                   £000          % of net
                                                                   assets

GO Outdoors Limited                               1,913               7.3
Sheet Piling Limited                              1,389               5.3
Connaught plc                                     1,363               5.2
Cater Plus Services Limited                       1,000               3.8
RMS Holdings Limited                                900               3.5
Harvey Jones Limited                                777               3.0
Mattioli Woods plc                                  658               2.5
Able Care Limited                                   650               2.5
Harris Hill Limited                                 600               2.3
Pressure Technologies plc                           553               2.1
                                               --------          --------
Top ten investments                               9,803              37.5

Other investments                                 2,845              10.9
                                               --------          --------
Total venture capital investments                12,648              48.4
                                               --------          --------


Quoted investments are carried at bid price at 31 December 2007. Unquoted
investment are carried at fair value as at 31 December 2007 as determined by the
directors.


During the three months ended 31 December 2007 the following significant
investment transactions took place (all companies are unquoted except where
otherwise indicated):


New Investments in the three months to 31 December 2007:

Name of company:       Business activity:                         Amount 
                                                                invested
                                                                    £000

Connaught plc          Support Services                              225
Able Care Limited      Domicilliary Care                             650
Hargreaves plc         Transport and coal mining                     200
                                                                --------
                                                                   1,075
                                                                --------


Realisations in the three months to 31 December 2007:

Name of company:                    Sale         Original       Carrying 
                                proceeds             cost       value at
                                                              30.09.2007
                                    £000             £000           £000

Cozart plc                         2,239              453          2,239
Connaught plc                        299              224              0
RMF Engineering Limited              224               90            171
Secure Mail Services Limited         119                0              0
Denison Mayes Limited                  5                5              5
                               ---------        ---------      ---------
                                   2,886              772          2,415
                               ---------        ---------      ---------


All of these realisations were a valuations above cost. In addition, there have
been expressions of interest in other investments which may result in attractive
offers. New investment opportunities have continued to be presented at an
encouraging rate which has resulted in £1.1 million of new investments in the
last quarter.


On 4 January 2008 the Company issued a prospectus seeking to raise up to £5.3
million to continue to take advantage of the level of investment opportunities
presented. This is subject to the approval of shareholders at an EGM to be held
on 6 February 2008.

The board believes that a good level of liquidity at this time will be
beneficial affording the opportunity to take advantage of the investment
opportunities that are presented.



24 January 2008



For further information please contact:

David Hall YFM Private Equity Tel: [phone]






                      This information is provided by RNS
            The company news service from the London Stock Exchange