1st Quarter Results

BFS Small Co Div Tst PLC
25 August 2000



                    BFS SMALL COMPANIES DIVIDEND TRUST PLC                    


             PRELIMINARY ANNOUNCEMENT OF FIRST QUARTER RESULTS 

The Directors announce the unaudited statement of consolidated  results for
the period 1 May 2000 to 31 July 2000 as follows

CONSOLIDATED STATEMENT OF TOTAL RETURN (Incorporating the Revenue Account*)


                                                                  Restated
                                 1 May 2000 to             6 April 1999 to
                                  31 July 2000                31 July 1999

                             Revenue  Capital  Total  Revenue  Capital  Total
                               £'000    £'000  £'000    £'000    £'000  £'000

Gains on investments               -    2,858  2,858        -    2,483  2,483
 
Dividends and interest           503        -    503      679        -    679
Investment management fee        (28)     (41)   (69)     (24)     (36)   (60)
Provision for investment
 management performance fee        -        -      -        -     (587)  (587)
Other expenses                   (41)       -    (41)     (50)      (3)   (53)
                                -----    -----  -----    -----    -----  -----

Net return before finance
 costs and taxation              434    2,817   3,251     605    1,857  2,462
   

Interest payable and 
 similar charges                 (38)     (57)    (95)     (6)     (9)    (15)

Appropriations in respect of :
 Zero Dividend Preference shares   -     (132)   (132)      -    (105)   (105)
 Preference shares                 -       (1)     (1)      -      (1)     (1)
 Issue costs of Zero
  Dividend Preference shares       -       (8)     (8)      -      (8)     (8)
                                 -----   -----   -----   -----   -----   -----
                                
Return on ordinary
 activities before and after 
 taxation for the period         396   2,619   3,015      599   1,734   2,333
           
First interim dividend proposed 
 of 2.10p (1999: 2.00p)         (331)      -    (331)    (300)      -    (300)
                                -----   -----   -----    -----   -----   -----

Transfer to reserves              65    2,619   2,684     299   1,734   2,033
                                =====   =====   =====    =====   =====   =====



                                pence   pence  pence     pence   pence  pence
Return per share:
 Ordinary Share                  2.51   16.63  19.14      3.99   11.56  15.55
 Zero Dividend Preference Share     -    2.11   2.11         -    1.68   1.68
 Preference Share                   -    2.11   2.11         -    1.68   1.68
                                =====   =====  =====     =====   =====  =====


* The revenue column of this statement is the revenue column of the Group.

 

BALANCE SHEET

                                                 As at                  As at
                                               31 July                31 July
                                                  2000                   1999
                                                 £'000                  £'000

Investments                                     27,524                 26,773

Current Assets
                                                            
Debtors                                            244                    293 
Cash at bank                                         1                      1
                                                 ------                ------
                                                   245                    294
Current liabilities

Creditors                                          533                  1,448
Bank overdraft                                   5,433                  3,041
                                                 ------                ------
                                                 5,966                  4,489

Net current liabilities                         (5,721)                (4,195)
                                                 ------                ------
Total assets less current
 liabilities                                    21,803                 22,578
Creditors- amounts falling due
 after more than one year                       (6,687)                (6,145)
                                                 ------                ------
Total net assets                                15,116                 16,433
                                                 ======                ======

Share capital and reserves
Share capital                                    3,938                  3,750
Share premium                                   11,126                 10,650
Capital reserve                                   (348)                 1,734
Revenue reserve                                    400                    299
                                                 ------                ------
                                                15,116                 16,433
                                                 ------                ------
Net asset value per share                                

Ordinary                                          94.22p               107.94p
Zero Dividend Preference                         109.83p               101.68p
Preference                                       109.83p               101.68p


STATEMENT OF CASH FLOWS   
                                             1 May 2000          6 April 1999
                                        to 31 July 2000       to 31 July 1999
                                                  £'000                 £'000

Net cash inflow from operating activities           565                   359
                                                  ------               ------
Servicing of finance
 Interest paid                                      (92)                   (4)
                                                  ------               ------
Net cash outflow from servicing of finance          (92)                   (4)
                                                  ------               ------
Capital expenditure and financial expenditure
 Purchases of investments                         (5,319)             (24,117)
 Sales of investments                              4,934                  134
                                                  ------               ------
Net cash outflow from capital expenditure
 and financial investments                          (385)             (23,983)
                                                  ------               ------
Equity dividends paid                               (472)                  -
                                                  ------               ------
Net cash outflow before financing                   (384)             (23,628)
                                                  ======               ======
Financing
  Issue of Ordinary shares                            -               (15,000)
  Issue of Zero Dividend Preference shares            -                (6,250)
  Issue of Preference shares                          -                   (31)
  Expenses of issue                                   -                   693
                                                  ------               ------
Net cash inflow from financing                        -               (20,588)
                                                  ------               ------
Decrease in cash                                    (384)              (3,040)
                                                  ------               ------
                                                    (384)             (23,628)
                                                  ======               ====== 
       
                                       

NOTE


1.The unaudited financial information which does not constitute statutory
accounts has been prepared on the basis of the accounting policies set out in
the statutory accounts of the Group for the period ended 30 April 2000. These
accounts received an unqualified audit opinion and will be filed with the
Registrar of Companies following the Annual General Meeting.

2.The Directors have declared a first interim dividend of 2.10p (1999: 2.00p)
net per Ordinary share, payable on 29 September 2000 to the holders of
Ordinary shares on the register at 8 September 2000.

3.The revenue return per Ordinary share is based on earnings of £396,000
(1999: £599,000) on 15,750,000 (1999: 15,000,000) Ordinary shares in issue
throughout the period.

4. The capital return per Ordinary share is based on net capital profits of 
£2,619,000 (1999: £1,734,000) on 15,750,000 (1999: 15,000,000) Ordinary shares
in issue throughout the period.

5. An amount of £98,000 (1999: £635,000) has been charged to capital in
respect of management fees and interest in accordance with accounting policy.

6. During it's first accounting period the Company conducted it's affairs so
that it satisfies the conditions for approval as an investment trust company
set out in section 842 of the Income and Corporation Tax Act 1988. It is the
intention of the Directors that the Company continues to meet these
conditions.

7. There are 6,250,000 Zero Dividend Preference shares in issue. They have an
initial capital entitlement of £1.00 per share, growing to £1.8463 on 30th
April 2007.  The accrued entitlement as at 31 July 2000 was 109.83p (1999:
101.68p) per share and the total amount accrued of £132,000 (1999: £105,000)
has been charged to capital.

8. The net asset values per share are calculated in accordance with the
Company's Articles of Association, whilst figures shown in the summarised
Balance Sheet are in accordance with FRS4.

9. The Financial Statements have been prepared in accordance with Financial
Reporting Standard No.16: Current Taxation. This states that UK dividends
should be disclosed excluding their associated tax credit. Therefore the
comparative figures for dividends and taxation have been restated.


For further information please contact BFS Investments plc - 01483 237773 or
Chelverton Asset Management Limited - 020 7630 0036.