Final Results - Year Ended 31 March 2000

Ivory & Sime UK Smlr.Co's Trust PLC
4 May 2000


Ivory & Sime UK Smaller Companies Trust plc

RESULTS FOR YEAR TO 31 MARCH 2000

Investment Objective

To achieve capital growth by investing primarily in a portfolio of smaller
companies quoted on the London Stock Exchange.  The benchmark index is the
FTSE SmallCap (ex Investment Companies) Index.

Results in respect of the Year Ended 31 March 2000

*NAV increases by 74.1 per cent

*One year performance 34.6 per cent ahead of benchmark
 
*Expectation of another good year for smaller companies 


Results
Over the year to 31 March 2000, the fully-diluted net asset value increased by
74.1 per cent compared with an increase of 39.5 per cent in the FTSE SmallCap
(ex Investment Companies) Index over the same period.  Over the five years
ended 31 March 2000 the fully-diluted net asset value has increased by 221.1
per cent compared with an increase of 95.1 per cent for the benchmark index.

Earnings 
Group earnings per ordinary share have increased from 3.76p to 4.28p.

Dividend
A final dividend of 2.75p per ordinary share is being proposed, making 3.75p
for the year (1999 - 3.50p).  This will be paid to shareholders on 5 July
2000.

Shareholder Value
The Company has continued to purchase warrants for cancellation where this
enhances the diluted net asset value.  The final exercise date for the
warrants is 31 July 2000.  The Board will seek authorisation to buy-back the
Company's own shares through a resolution to be put to the Annual General
Meeting.
 


Outlook

Michael Walker, Chairman said 'the Board believes that the UK economy, because
of the combination of interest rate stability, and steady GDP growth, offers a
favourable background for equity investment.  The prices of technology stocks
have been particularly volatile in recent months.  Our Managers nevertheless
remain positive about the growth prospects within this sector but are
conscious of the need to retain a balanced perspective.  Potentially rewarding
opportunities are not solely confined to the technology sector.  It is the
broad spread of attractive investment opportunities identified by the Managers
that gives the Board considerable confidence for the future'.



For further information please contact:
Stephen Grant/Keith Hannay
Friends Ivory + Sime plc: Tel. [phone]
 

Group Statement of Total Return 
(Incorporating the Revenue Account)
For the Year Ended 31 March 2000

                                                      Year Ended
                                                    31 March 2000
                                          PDS'000       PDS'000       PDS'000
                                          Revenue       Capital         Total
                      
Gains on investments                            -        33,146        33,146
Realised exchange differences                   -            (2)           (2)
Warrants purchased for cancellation             -          (324)         (324)
                     
                     
Income                                      1,588             -         1,588
Investment management and secretarial fees   (233)         (342)         (575)
Other expenses                               (207)            -          (207)
                                         --------     ---------     ---------
Net return before finance costs and 
taxation                                    1,148        32,478        33,626
                     
Interest payable                             (201)         (372)         (573)
                                        ---------     ---------     ---------
Return on ordinary activities before tax      947        32,106        33,053
                     
Tax on ordinary activities                    (46)           46             -
                                        ---------     ---------     ---------
Return attributable to equity 
shareholders                                  901        32,152        33,053
                     
Dividends in respect of equity shares        (790)            -          (790)
                                        ---------     ---------    ---------
Transfer to reserves                          111        32,152       32,263
                                        ---------     ---------    ---------
Return per ordinary 50p share (p):                     
Basic                                        4.28        152.67       156.95
Diluted (FRS 14)                             4.17        148.89       153.06

 

Group Statement of Total Return 
(Incorporating the Revenue Account)
For the Year Ended 31 March 1999


                                                        Year Ended
                                                      31 March 1999
                                           PDS'000       PDS'000      PDS'000
                                           Revenue       Capital        Total
                     
Losses on investments                            -        (1,263)      (1,263)
Realised exchange differences                    -             3            3
Warrants purchased for cancellation              -        (1,044)      (1,044)
                     
                     
Income                                       1,409             -        1,409
Investment management and secretarial fees    (200)         (279)        (479)
Other expenses                                (149)            -         (149)
                                         ---------     ---------    ---------
Net return before finance costs and 
taxation                                     1,060        (2,583)      (1,523)
                     
Interest payable                              (193)         (360)        (553)
                                         ---------     ---------    ---------
Return on ordinary activities before tax       867        (2,943)      (2,076)
                     
Tax on ordinary activities                      77            77            -
                                         ---------     ---------    ---------
Return attributable to equity shareholders     790        (2,866)      (2,076)
                     
Dividends in respect of equity shares         (736)            -         (736)
                                         ---------     ---------    ---------
Transfer to/(from) reserves                     54        (2,866)      (2,812)
                                         ---------     ---------    ---------
Return per ordinary 50p share: (p)                     
Basic                                         3.76        (13.62)       (9.86)
Diluted (FRS 14)                              3.67        (13.33)       (9.66)

  

Group Balance Sheet 

                                                          As at         As at 
                                                        31.3.00       31.3.99
                                                        PDS'000       PDS'000
              
Fixed Assets              
Investments                                              81,474       44,320
Net current assets/(liabilities)                          1,078       (1,053)
                                                      ---------    ---------
                                                         82,552       43,267
              
Long-term borrowings                                     (7,000)           -
                                                      ---------    ---------
                                                         75,552       43,267
                                                      ---------    ---------
Financed by              
Shareholders' funds                                      75,552       43,267
              
              
Net asset value per ordinary share              
       - Basic                                           358.61p       205.60p
       - Fully-diluted                                   348.58p       200.17p
       - Diluted (FRS 14)                                349.68p       201.44p

Group Consolidated Cash Flow Statement 
                                                                Year ended 
                                                                 31 March
                                                             2000        1999
                                                            £'000       £'000

Operating activities              
Investment income received                                  1,324      1,036
Deposit interest received                                     188        326
Underwriting commission received                                4         15
Other income                                                    1          -
Dealing activities in dealing subsidiary                        -        149
Investment management fees paid                              (525)      (430)
Secretarial fees paid                                         (62)       (37)
Other cash payments                                          (200)      (148)
                                                        ---------  ---------
Net cash inflow from operating activities                     730        911
                                                        ---------  ---------
Servicing of finance              
Interest paid                                                (491)      (553)
                                                        ---------  ---------
Net cash outflow from servicing of finance                   (491)      (553)
                                                         --------- ---------
Taxation                                    
Tax recovered                                                  72          -
                                                        ---------  ---------
Capital expenditure and financial investment
Purchase of investments                                   (28,836)   (17,412) 
Disposals of investments                                   25,765     17,806  
                                                         --------  ---------

Net cash (outflow)/inflow from capital and financial 
investment                                                 (3,071)      394
                                                        ---------  --------
 Equity dividends paid                                        736      (609)
                                                        ---------  --------   
  
   
Net cash (outflow)/inflow before financing                 (3,496)      143
                                                        ---------  ---------
Financing              
Exercise of warrants                                           22        18
Warrants purchased for cancellation                          (324)   (1,044)
£7 million loan drawn down 4 August 1999                    7,000         -
£6 million loan repaid 4 August 1999                       (6,000)        -
                                                        --------- ---------
Net cash inflow/(outflow) from financing                      698    (1,026)
                                                        --------- ---------
Decrease in cash                                           (2,798)     (883)
                                                        --------- ---------
Reconciliation of net cash flow to movement in net (debt)/cash              
Decrease in cash in the year                               (2,798)     (883)
Loan drawn down                                            (7,000)        -
Loan repaid                                                 6,000         -
                                                        --------- ---------
Changes in net debt resulting from cash flows              (3,798)     (883)
Currency (losses)/gains                                        (2)        3
                                                        --------- ---------
Movement in net debt                                       (3,800)     (880)
                                                        --------- ---------
Net (debt)/cash at 1 April 1999                              (406)      474
                                                        ---------  ---------
Net debt at 31 March 2000                                  (4,206)     (406)
                                                        ---------  ---------
 Notes

1. Basic earnings per Ordinary Share are based on a weighted average of
21,060,012 Ordinary Shares in issue during the year (1999 - 21,037,884).  The
diluted earnings per Ordinary Share which is calculated in accordance with
Financial Reporting Standard 14 (Earnings per share) is 4.17p (1999 : 3.67p). 
This is based on return attributable to equity shareholders and on 21,594,938
(1999 : 21,509,105) Ordinary Shares, being the weighted average number of
Ordinary Shares in issue at the year end plus the number of shares that would
have been issued for no consideration using a weighted average share price of
204.20p (1999 : 147.70p).

2. Final dividend of 2.75p (1999 - 2.50p) will be paid on 5 July 2000 to
shareholders on the Register on 19 May 2000.

3. There were 21,067,815 Ordinary Shares in issue at 31 March 2000 (1999 -
21,044,469).  23,346 Ordinary Shares were issued in respect of warrants which
were exercised on 31 July 1999.  During the year 215,000 warrants were
purchased by the Company for cancellation at a cost of £324,250.  The diluted
net asset value per Ordinary Share which is calculated in accordance with FRS
14 (Earnings per share) is 349.68p (1999 : 201.44p).  This is based on net
assets and on 21,605,965 (1999 : 21,478,932) Ordinary Shares, being the number
of Ordinary Shares in issue at the year end plus the notional number of shares
that would have been issued for no consideration using a year end share price
of 266.0p (1999 : 157.0p).

4. These are not statutory accounts in terms of Section 240 of the Companies
Act 1985. Statutory accounts for the year to 31 March 1999, which were
unqualified, have been lodged with the Registrar of Companies.  The statutory
accounts for 31 March 2000 are unqualified and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.

5. The Annual General Meeting will be held at One Charlotte Square, Edinburgh
on Wednesday 21 June 2000 at 12.30pm.


Managed by Friends Ivory + Sime plc