1st Quarter Results

BFS Small Co Div Tst PLC
18 September 2001


BFS SMALL COMPANIES DIVIDEND TRUST PLC

PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS


The Directors announce the unaudited statement of consolidated results for the
period 1 May 2001 to 31 July 2001 as follows:


CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                           1 May 2001 to          1 May 2000 to
                                            31 July 2001           31 July 2000
                                  Revenue Capital  Total Revenue Capital  Total
                                   £'000   £'000  £'000   £'000   £'000  £'000

Gains /(losses) on investments         -     791    791       -   2,858  2,858
Dividends and interest               617       -    617     503       -    503
Investment management fee            (32)    (48)   (80)    (28)    (41)   (69)
Other expenses                       (49)      -    (49)    (41)      -    (41)

Net return before
finance costs and taxation           536     743  1,279     434   2,817  3,251

Interest payable and similar         (43)    (64)  (107)    (38)    (57)   (95)
charges

Appropriations in respect of:
- Zero Dividend Preference shares      -    (142)  (142)      -    (132)  (132)
- 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            493     528  1,021     396   2,619  3,015


First interim dividend proposed     (339)      -   (339)   (331)      -   (331)
of 2.15p
(2000: 2.10p)

Transfer to reserves                 154     528    682      65   2,619  2,684

Return per:                         pence   pence  pence   pence   pence  pence
Ordinary share                      3.13    3.35   6.48    2.51   16.63  19.14
Zero Dividend Preference share         -    2.28   2.28       -    2.11   2.11
Preference share                       -    2.28   2.28       -    2.11   2.11


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




BALANCE SHEET

                                            As at                         As at
                                          31 July                      30 April
                                             2001                          2001
                                           £'000                         £'000

Investments                               31,863                        30,162

Current assets
Debtors                                      233                         1,308
Cash at bank                                   1                           114

                                             234                         1,422

Current liabilities
Creditors                                    587                         1,008
Bank overdraft                             7,276                         7,175

                                           7,863                         8,183

Net current liabilities                   (7,629)                       (6,761)


Total assets less current liabilities     24,234                         23,401

Creditors - amounts falling due after
more than one year                        (7,270)                       (7,119)

                                          16,964                        16,282

Share capital and reserves
Share capital                              3,938                         3,938
Share premium                             11,126                        11,126
Capital reserve                            1,361                            833
Revenue reserve                              539                            385
Shareholders funds                        16,964                        16,282

Net asset value per:
Ordinary share                           105.58p                       103.38p
Zero Dividend Preference share           118.62p                       116.34p
Preference share                         118.62p                       116.34p




STATEMENT OF CASHFLOWS
                                                 1 May 2001 to    1 May 2000 to
                                                  31 July 2001     31 July 2000

                                                        £'000            £'000

Net cash inflow from operating activities                 629              565

Servicing of finance
Interest paid                                            (107)             (92)


Net cash outflow from servicing of finance               (107)             (92)

Taxation recovered                                          8                -

Capital expenditure and financial investment
Purchase of investments                                (4,098)          (5,319)
Sale of investments                                     3,858            4,934


Net cash outflow from capital expenditure
and financial investment                                 (240)            (385)


Equity dividends paid                                    (504)            (472)


Net cash outflow                                         (214)            (384)


Decrease in cash                                         (214)            (384)


                                                         (214)            (384)




NOTE

1.  The above unaudited financial information which does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985 has
been prepared on the basis of the accounting policies set out in the statutory
accounts of the Group for the year ended 30 April 2001.  The auditors have
reported on those accounts; their reports were unqualified and did not contain
a statement under section 237 (2) or (3) of the Companies Act 1985.  Statutory
financial statements for the year ended 30 April 2001 will be delivered to the
Registrar.



2.  The Directors have declared a first interim dividend of 2.15p (2000: 2.10p) 
per Ordinary share, payable on 28 September 2001 to the holders of Ordinary 
shares on the Register at 7 September 2001.



3.  The revenue return per Ordinary share is based on earnings of £493,000
(2000: £396,000) and on 15,750,000 (2000: 15,750,000) Ordinary shares, being
the weighted average number of Ordinary shares in issue during the period.



4.  The capital return per Ordinary share is based on net capital profits of 
£528,000 (2000: £2,619,000) and on 15,750,000 (2000: 15,750,000) Ordinary
shares, being the weighted average number of Ordinary shares in issue during
the period.



5.  An amount of £112,000 (2000: £98,000) has been charged to capital in
respect of management fees, other expenses and interest in accordance with the
Company's accounting policy.



6.  During its first and second accounting periods the Company has conducted
its 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 31,260 Preference and 6,250,000 Zero Dividend Preference shares
in issue.  They each have an initial capital entitlement of 100p per share,
growing to 184.63p on 30 April 2007.  The accrued entitlement as at 31 July
2001 was 118.62p (2000: 109.83p) per share and a total amount of £151,000
(2000: £141,000) has been charged to capital during the period.



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