Final Results

BFS Small Co Div Tst PLC
14 June 2001



BFS SMALL COMPANIES DIVIDEND TRUST PLC


PRELIMINARY ANNOUNCEMENT OF UNAUDITED RESULTS

The Directors announce the unaudited statement of consolidated results for the
year

1 May 2000 to 30 April 2001 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                          1 May 2000 to         6 April 1999 to
                                          30 April 2001           30 April 2000
                                 Revenue Capital  Total Revenue Capital   Total
                                   £'000   £'000  £'000   £'000   £'000   £'000

Gains /(losses) on
investments                            -   4,823  4,823       -  (2,177) (2,177)
Dividends and interest             2,024       -  2,024   2,067       -   2,067
Other income                           1       -      1       -       -       -
Investment management
fee                                 (119)   (179)  (298)   (100)   (149)   (249)
Other expenses                      (181)     (3)  (184)   (165)     (6)   (171)

Net return before
finance costs and taxation         1,725   4,641  6,366   1,802  (2,332)   (530)

Interest payable and similar
charges
                                    (179)   (269)  (448)    (79)   (119)   (198)

Appropriations in respect of:
- Zero Dividend Preference shares

                                       -    (538)  (538)      -    (483)   (483)
- Preference shares                    -      (3)    (3)      -      (2)     (2)
Issue costs of Zero
Dividend Preference
shares                                 -     (31)   (31)      -     (31)    (31)


Return on ordinary activities
before and after taxation          1,546   3,800  5,346   1,723  (2,967) (1,244)


First interim dividend paid of
2.10p
(2000: 2.00p)                       (331)      -   (331)   (300)      -    (300)

Second interim dividend paid of
2.10p
(2000: 2.00p)                       (331)      -   (331)   (300)      -    (300)

Third interim dividend paid of
2.10p
(2000: 2.00p)                       (330)      -   (330)   (315)      -    (315)

Fourth interim dividend proposed
of 3.20p
(2000: 3.00p)                       (504)      -   (504)   (473)      -    (473)

Transfer to/ (from)
reserves                              50   3,800  3,850     335  (2,967) (2,632)


Return per:                         pence   pence  pence   pence   pence   pence
Ordinary share                      9.81   24.13  33.94   11.39  (19.62)  (8.23)
Zero Dividend Preference share         -    8.62   8.62       -    7.72    7.72
Preference share                       -    8.62   8.62       -    7.72    7.72




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



CONSOLIDATED BALANCE SHEET

                                                          As at         As at
                                                       30 April      30 April
                                                           2001          2000
                                                          £'000         £'000

Investments                                              30,162        24,363

Current assets
Debtors                                                   1,307           412
Cash at bank                                                114           225

                                                          1,421           637

Current liabilities
Creditors                                                 1,007           749
Bank overdraft                                            7,175         5,272

                                                          8,182         6,021

Net current liabilities                                  (6,761)       (5,384)


Total assets less current liabilities                    23,401        18,979

Creditors - amounts falling due after
more than one year                                       (7,119)       (6,547)

                                                         16,282        12,432

Share capital and reserves
Share capital                                             3,938         3,938
Share premium                                            11,126        11,126
Capital reserve                                             833        (2,967)
Revenue reserve                                             385           335
Shareholders funds                                       16,282        12,432

Net asset value per:
Ordinary share                                           102.18p        77.54p
Zero Dividend Preference share                           116.34p       107.72p
Preference share                                         116.34p       107.72p






CONSOLIDATED STATEMENT OF CASHFLOWS
                                               1 May 2000 to   6 April 1999 to
                                               30 April 2001     30 April 2000

                                                       £'000             £'000

Net cash inflow from operating activities              1,612             1,320

Servicing of finance
Interest paid                                           (443)             (176)


Net cash outflow from servicing of finance              (443)             (176)

Taxation paid                                             (5)                -

Capital expenditure and financial investment
Purchase of investments                              (12,148)          (34,319)
Sale of investments                                   10,435             7,948


Net cash outflow from capital expenditure
and financial investment                              (1,713)          (26,371)


Equity dividends paid                                 (1,465)             (915)


Net cash outflow before financing                     (2,014)          (26,142)

Financing
Issue of Ordinary shares                                   -           (15,664)
Issue of Zero Dividend Preference shares                   -            (6,250)
Issue of Preference shares                                 -               (31)
Expenses of share issue                                    -               850


Net cash inflow from financing                             -           (21,095)


Decrease in cash                                      (2,014)           (5,047)

                                                      (2,014)          (26,142)



Chairman's Statement


Results



This Report covers the twelve months to 30 April 2001. As you will be aware,
this has been a period of extreme stock market volatility led by the
significant decline in the value of 'new economy' companies simultaneously
with the gradual appreciation of the 'old economy' companies.



I am pleased to report that the Company's net asset value per Ordinary share
at 30 April 2001 was 102.18p (2000 - 77.54p), an increase over the year of
31.8%. During this period the FTSE All-Share Index fell 4.43%, the FTSE
Small-Cap Index fell by 3.81% and the FTSE Fledgling Index rose by 2.81%.
Since the year end the net asset value per Ordinary share has risen to 112.86p
as at 7 June 2001.



The Board has declared a final dividend of 3.2p per Ordinary share (2000 -
3.0p) which, when added to the three quarterly interim dividends of 2.1p,
equates to a total dividend for the year of 9.5p per Ordinary Share (2000 -
9p), an increase of 5.5% over the previous year.



Background



The last year experienced a period of reducing interest rates and stable
exchange rates. With the uncertainty caused by the excessive enthusiasm for
Technology, Media and Telecom (TMT) stocks investor interest returned to the
companies in which your Company invests and a gradual appreciation occurred
throughout the year, albeit hit by the decline in all stock markets in
February and March. However, I am pleased to report that these losses have
since been more than recovered.



The level of corporate activity has picked up again with the recent takeover
of Anglian, and Mid Kent by their managements financed by venture capital
funds. Currently one company, Relyon, is in talks with respect to a cash offer
from a South African company and a further three companies: Dewhirst; Hampson
Industries; and Time Products have announced that they are in discussions with
their managements with respect to potential management buy-outs.



Prospects



The trend for smaller companies, disillusioned by their ratings on the stock
market at well below their intrinsic value, to take the management buyout
route continues. The resulting additional funds available to the Company are,
in turn, reinvested in other high yielding companies for future dividend and
capital growth.



We have already seen three reductions in interest rates over the past three
months and it appears possible that there will be further cuts before the end
of the year. This has already been seen to have a beneficial effect on those
companies in which your Company invests and looks likely to continue. However,
the continuing strength of sterling still impacts negatively on manufacturing
and exporting companies.



Going forward, the Board believes that prospects for the Company's investments
are looking increasingly encouraging. In recent months investors extricating
themselves from the TMT sector have been reinvesting in the more traditional,
value companies, reversing the trend of last year. This is expected to
continue, leading to a gradual re-rating of the small companies' sector.



I would like to thank the Investment Managers and Advisers for the attractive
performance achieved. As a result it has been recognised that the Ordinary
Shares were one of the top performers in the split capital sector during the
year.



BN Lenygon

14 June 2001




NOTE


1.  The above unaudited financial information for the year ended 30 April 2001
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 period ended 30 April
2000. The comparative financial information is based on the statutory
financial statements for the period ended 30 April 2000.  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. The April
2000 statutory accounts have been delivered to the Registrar of Companies.
Statutory financial statements for the year ended 30 April 2001 will be
delivered to the Registrar.



2.  The Directors have declared a final dividend of 3.20p (2000: 3.00p) per
Ordinary share, payable on 30 June 2001 to the holders of Ordinary shares on
the Register at 8 June 2001.



3.  The revenue return per Ordinary share is based on earnings of £1,546,000
(2000: £1,723,000) and on 15,750,000 (2000: 15,124,648) 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 £
3,800,000 (Losses 2000: £2,967,000) and on 15,750,000 (2000: 15,124,648)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.



5.  An amount of £451,000 (2000: £274,000) 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 30 April
2001 was 116.34p (2000: 107.72p) per share and a total amount of £541,000
(2000: £485,000) 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.