Final Results

Foreign & Colonial Smaller Co's PLC
20 June 2000



          Contact:  Sandy Fleming
                    Foreign & Colonial Management
                    020 7628 8000

                    Claire Barry
                    Financial Dynamics
                    020 7831 3113




                   FOREIGN & COLONIAL  SMALLER COMPANIES PLC
                        Unaudited Preliminary Statement
                       for the year ended 30 April 2000



     
 SUMMARY OF RESULTS                                        
                                    30         30         %
                                 April      April
                                  2000       1999    Change
                                                 
 Attributable to equity                                    
 shareholders
 
 Net assets                    £313.1m    £265.4m     +18.0
                                                           
 Net assets per share          325.42p    255.28p     +27.5
 (prior charges at nominal                                 
 value)                                                    
                                                           
 Earnings per share              4.22p      5.25p     -19.6
 (restated*)
                                                           
 Dividends per share             3.75p      3.36p     +11.6
                                                           
 Share price                   255.25p    203.50p     +25.4

*  Restated to reflect changes in accounting policies (See Note (a)).


 Highlights


- Net Asset Value per share rose 27.5% to 325.42p

- Both the NAV and the share price strongly outperformed the benchmark.

- The total dividend per share is increased by 11.6% to 3.75p

- We are seeking to renew the authority to repurchase shares at the
  forthcoming AGM, and will look to buy up to a further 14.9% of the company's
  shares.


 FOREIGN & COLONIAL SMALLER COMPANIES PLC
 Unaudited Preliminary Statement for the year ended 30 April 2000
                                       
About your Investment Trust

The past year has proved to be one of the most interesting for small companies
that  most  of  us  can  remember. Despite considerable  ups  and  downs,  our
benchmark  index  ended the financial year 17.8% ahead.  Your  Trust  strongly
outperformed this benchmark, with net asset value per share (NAV)  ending  the
year 27.5% higher at 325.42p while the share price rose 25.4%.
The  first six months of the year saw a steady performance, with our benchmark
index,  the  Extended Hoare Govett Smaller Companies Index, rising 2.7%  while
the  FTSE  All-Share Index fell by 4.1%. During the same period  our  own  net
assets  grew  by  7.6%,  while the share price rose  by  7.1%.  This  positive
performance  was achieved by successfully identifying the attractions  of  the
continental  European and Japanese markets, and by our increased weighting  in
technology related stocks.

By  comparison,  the  second  half of the year has  proved  to  be  much  more
volatile. A huge boom in technology related stocks worldwide was followed by a
major  correction, which is still underway at the time of writing this review.
While  your Company benefited from the boom, our subsequent decline  was  much
less  dramatic than in many trusts concentrated in the technology sector. Thus
while  our  discount has ended the year marginally wider than at the beginning
of  the  period the share price has ended the year strongly ahead. Furthermore
we  have  continued to utilise our ability to gear during the  year,  both  in
order to invest at appropriate times and to buy in shares.


Performance

Your  Company's  objective is to enable investors to  take  advantage  of  the
growth   potential  offered  by  smaller  companies  across  the  world.   The
performance  we  have  achieved  during  a  year  when  stock  markets  showed
unprecedented  volatility demonstrates the advantage  of  the  spread  in  our
investments,  both geographical and across all the sectors  we  believe  offer
investment opportunities.

Although  all  the  markets in which the fund is invested  rose  during  the
financial  year,  there  was,  as ever, significant  variation.  In  Japan  we
achieved a return of 59.5%, while in the US we achieved only a 5.3% rise.


Dividend & Accounting Policy

Having  already  paid an interim dividend of 1.25p, your Directors  propose  a
final of 2.5p, making a total dividend of 3.75p per share. This represents  an
increase over last year's distribution of 11.6%, more than four times the rate
of inflation. This is the 30th consecutive year in which we have increased the
dividend.


FOREIGN & COLONIAL SMALLER COMPANIES PLC
 Unaudited Preliminary Statement for the year ended 30 April 2000

This  is  a record your Board is keen to extend, but many of the companies  in
which  we  invest are under increasing pressure to retain earnings to  finance
future  growth. That is reflected in the significant fall in our earnings  per
share.  In  both my annual report last year and in the interim in  December  I
explained how and why we intended to modify our accounting policy to allow the
Board  to  continue to propose increases in dividends despite  lower  earnings
available on elements of the investment portfolio. By implementing the changes
your  Board has been able to recommend a dividend increase well in  excess  of
inflation  and  we  hope  that  we can continue  the  long  running  trend  of
increasing annual dividends going forward.


Working for Shareholders

In  last  year's Report I explained the action that your Board was  taking  to
tackle the ongoing issue of the discount. This has varied during the year from
14.7%  to  24.7%. Although the share price has meanwhile risen by 25.4%,  your
Board  does  not  find  the  present level of  discount  satisfactory.  It  is
therefore   appropriate  to  revisit  the  three  points  I  covered,   namely
performance, buy-backs and marketing.

We  encourage our managers to focus on total return, that is capital gain  and
income,  and it is appropriate that we should be looking at a similar  measure
for our Company's performance. This year performance has been strong, both  in
absolute terms and relative to our benchmark.

Your  Board also sought authority for further share buy-backs up to  14.9%  of
our share capital, and I can report that during the financial year a total  of
7,760,000 shares were repurchased. This amounted to 7.5% of our share capital.
We  therefore  made  substantial use of the authority you gave  us,  but  only
bought  at  prices that represented a clear gain to shareholders, by enhancing
net  asset  value  per  share. We did not think it would be  in  shareholders'
interests to purchase at prices well above those prevailing in the market, and
for  much  of the year found shareholders reluctant to sell at market  prices.
Therefore,  the result of the purchases we did make was clearly  enhancing  to
our net asset value.

We  will continue to buy shares for cancellation when they become available at
an  appropriate price. It is therefore our intention to seek further authority
to buy up to an additional 14.9% of the company's shares from capital reserves
at the Annual General Meeting.

Marketing this year took place against the backdrop of the 'its' campaign, the
Investment Trust industry's initiative to improve the public awareness of  the
trust  sector.  This campaign is now entering its second phase,  and  becoming
more  focused.  We are glad that the number of our shareholders has  increased
this  year,  and the proportion of the total held by private shareholders  has
increased to 42%.

FOREIGN & COLONIAL SMALLER COMPANIES PLC
 Unaudited Preliminary Statement for the year ended 30 April 2000

However  we  believe  that  even more needs to  be  done  to  alert  financial
intermediaries to the great advantages of investment trusts to their  clients,
in  terms of low cost, diversified risk and, most importantly, the ability  to
take advantage of investment opportunities by gearing.

In  December  1999  we  and four other Foreign & Colonial  managed  investment
trusts were listed on the Frankfurt Stock Exchange, the first closed end funds
to  achieve  such a listing. While awakening widespread European  interest  in
investment trusts will take time, the long-term potential is clearly extremely
significant.  Coupled  with  the listing in New Zealand,  which  continues  to
attract  local  interest, and efforts in the UK to increase awareness  of  the
attractions of the trust, we hope we can build on the progress made  in  1999-
2000.

Manager

After  25 years as manager of our Trust, during the last two of which  he  was
also  Chairman of the Association of Investment Trusts, Andrew Barker  decided
that  it was time for a change and retired from Foreign & Colonial at the  end
of March 2000. His immense experience was much valued by the Board. During his
time  as  manager  the  value of £1,000 invested has grown  to  in  excess  of
£40,000. In addition, dividends have risen every year over that period, giving
an average annual return of over 19%.

Your Board is however delighted to say that Alexander (Sandy) Fleming, who for
the  past  three  years has been head of UK Small Companies within  Foreign  &
Colonial,  has succeeded Andrew as manager of the trust. Sandy has  experience
in a number of international investment markets, and within Foreign & Colonial
is  also  responsible for co-ordinating the management company's  approach  to
technology investments worldwide. Your Board is confident that he and his team
of  small  company  specialists will provide investors  with  a  balanced  and
successful  portfolio, taking advantage of global opportunities without  over-
concentration on any one industry or region.

Annual General Meeting

The  Annual  General  Meeting will again be held  at  the  London  Chamber  of
Commerce  and  Industry at 11.30 am on the 31 July 2000.  I  look  forward  to
welcoming  as  many of you as are able to attend. This will  be  an  excellent
opportunity  to  meet  our new manager, who will make a  presentation  on  the
Company at the meeting.



FOREIGN & COLONIAL SMALLER COMPANIES PLC
 Unaudited Preliminary Statement for the year ended 30 April 2000

Prospects

Following an extended period when smaller companies seemed to be overlooked by
investors,  we have now had two years where we have seen rising  share  prices
and,  particularly  during  the recent boom in technology  related  companies,
significant shareholder interest. While the events of the past few months have
illustrated the volatility of 'dot coms', they have also reminded  us  of  the
growth  potential of smaller companies. At times of rapid change, the  economy
will  generate attractive investment opportunities, provided by new  products,
new  markets and new managements. Within this dynamic sector, our strategy  of
blending old and new gives a balanced and well-spread portfolio.
The  extended  bull markets in the US and the UK have already  undergone  some
corrections,  but so long as the monetary authorities do not lose  control  we
should  still  find  good investment opportunities. Europe  has  enjoyed  good
recovery,  led  by exports, and in Japan and the Far East there still  remains
considerable  potential  for further growth; so the  overall  outlook  remains
positive.

Your  Board  remains  committed to providing the best  investment  vehicle  to
exploit  the  potential available in smaller companies around  the  world  and
believes  that the investment trust structure is ideal for this  purpose.  The
use  of  borrowings both to invest when markets look particularly  attractive,
and to buy back shares, will enhance net asset value to shareholders' benefit.
As  a Company we aim to achieve long term growth and we are confident that the
successes of the past can be continued.

Sarah Hogg
Chairman
June 2000



 FOREIGN & COLONIAL SMALLER COMPANIES PLC
 Unaudited Preliminary Statement for the year ended 30 April 2000


 ASSETS
 Attributable to equity shareholders

                                 at 30 April    at 30 April
                                        2000           1999
                                      £'000s         £'000s
                                              
Total assets less current            344,390        294,750
liabilities (excluding loans)

Foreign currency loans:             (16,262)       (14,310)
Due within one year

Total assets less current            328,128        280,440
liabilities

Sterling loan: due after more        (5,000)        (5,000)
than one year

Debenture                           (10,000)       (10,000)

Total assets attributable to                               
ordinary shareholders                313,128        265,440
                                                           
Net asset value per share            325.42p        255.28p
(prior charges at nominal                                  
value)


Geographical distribution of total assets (less current liabilities excluding
loans) at 30 April 2000 was:

UK                       47.7%
North America            15.0%
Japan                    15.4%
Continental Europe       18.4%
Far East & others         3.5%


The directors propose a final dividend per ordinary share of 2.50p, payable on
1 August 2000 to shareholders registered on 30 June 2000 making a total for
the year of 3.75p per share  (1999- 3.36p). This represents an increase of
11.6% over 1999.





FOREIGN & COLONIAL SMALLER COMPANIES  PLC
Unaudited Preliminary Statement  for the year ended 30 April 2000

Statement of Total Return  (incorporating the Revenue Account *) for the year
ended 30 April

                          2000                            1999        
                                              (Restated +)(Restated +)
                Revenue   Capital     Total      Revenue    Capital    Total
                 £'000s    £'000s    £'000s       £'000s     £'000s   £'000s

Gains on              -    69,325    69,325            -      6,522    6,522
investments
                                                                            
Exchange gains      (3)   (1,779)   (1,782)            3    (1,966)  (1,963)
and losses

Income            6,157         -     6,157        7,479          -    7,479

Management fee    (376)     (877)   (1,253)        (343)      (802)  (1,145)

Other expenses**  (764)      (26)     (790)        (454)        (2)    (456)

Net return        5,014    66,643    71,657        6,685      3,752   10,437
before finance
costs and
taxation

Interest          (479)   (1,118)   (1,597)        (481)    (1,122)  (1,603)
payable and
similar
charges

Return on         4,535    65,525    70,060        6,204      2,630    8,834
ordinary
activities
before
taxation

Taxation on       (322)       288      (34)        (690)        526    (164)
ordinary
activities

Return on         4,213    65,813    70,026        5,514      3,156    8,670
ordinary
activities
after taxation

Dividend on           -         -         -         (15)          -     (15)
preference
shares (non-
equity)

Return            4,213    65,813    70,026        5,499      3,156    8,655
attributable
to equity
shareholders
Dividends on                                                                
ordinary                         
shares
(equity)

Interim of      (1,225)         -   (1,225)      (1,173)          -  (1,173)
1.25p
(1999-1.12p)

Proposed final  (2,399)         -   (2,399)      (2,329)          -  (2,329)
dividend of
2.50p
(1999-2.24p)
                                                                            
Amount              589    65,813    66,402        1,997      3,156    5,153
transferred to
reserves
                                                                            
Return per         4.22     65.91     70.13         5.25       3.02     8.27
ordinary share
- pence

*     The revenue column of this statement is the profit and loss
      account of the Company.

+     Restated to reflect changes in accounting policies for the following;

(a)  Allocation of expense
Management fee and interest payable, together with the related tax
saving, have been allocated 70% to capital reserve and 30% to revenue account,
in accordance with the Board's expected long-term split of returns from the
investment portfolio of the Company. Previously, management fee and
interest payable were allocated 100% to revenue account. Prior year
figures have been restated.

(b)  Dividend income
Dividends are accounted for in accordance with Financial Reporting
Standard 16 (FRS 16) 'Current Taxation' on the basis of the income
actually receivable, without adjustment for the tax credit
attaching to dividends. Previously, dividends were accounted for
inclusive of the tax credit.

** Other expenses include £181,000 (1999 £nil) in respect of
   contributions to the AITC's 'its' marketing
   campaign.



FOREIGN & COLONIAL SMALLER COMPANIES PLC
Unaudited Preliminary Statement for the year ended 30 April 2000


Cash Flow Statement
For the year ended 30 April


                          2000                1999
                         £000s               £000s

Net cash inflow          4,290               6,060
from operating
activities

Net cash outflow        (1,598)             (1,630)
from servicing of
finance

Total tax paid            (53)               (148)

Net cash                  (82)               1,542
(outflow)/inflow
from financial
investment

Equity dividends        (3,554)             (3,268)
paid

Net cash                 (997)               2,556
(outflow)/inflow
before use of
liquid resources
and financing

Management of            13,810             (9,070)
liquid resources

Net cash                (18,248)             3,144
(outflow)/inflow
from financing
Decrease in cash        (5,435)             (3,370)



The  financial  information set out in the  announcement  does  not
constitute the Company's statutory accounts  for the years ended 30
April 2000 or 30 April 1999. The financial information for the year
ended  30 April 1999 has been extracted from the statutory accounts
for  that  year  which  have been delivered  to  the  Registrar  of
Companies and restated to reflect the changes in accounting  policy
stated  in  Notes  (a)  and  (b). The auditors  reported  on  those
accounts:  their  report was unqualified  and  did  not  contain  a
statement  under  either Section 237(2) or Section  237(3)  of  the
Companies  Act 1985. The statutory accounts for the year  ended  30
April  2000  will  be  finalised on  the  basis  of  the  financial
information   presented  by  the  directors  in  this   preliminary
announcement  and will be delivered to  the Registrar of  Companies
following the Company's Annual General Meeting.

The  Annual  General Meeting will be held at The London  Chamber  of
Commerce  and Industry, 33 Queen Street, London EC4 on 31 July  2000
at 11.30 am.
The  Report and Accounts will be posted to shareholders on 29  June
2000. Copies may be obtained during normal business hours from  the
Company's  Registered  Office,  Exchange  House,  Primrose  Street,
London EC2A 2NY.

By order of the Board
Foreign & Colonial Management Limited - Secretary
20 June 2000