Interim Results

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 2002 to 31 October 2002 as follows:

CONSOLIDATED STATEMENT OF TOTAL RETURN

(*incorporating the revenue account)

                                    1 May 2002 to               1 May 2001 to
                                                                             
                                  31 October 2002             31 October 2001
                                                                             
                        Revenue  Capital    Total   Revenue  Capital    Total
                                                                             
                         £'000    £'000    £'000     £'000    £'000    £'000 
                                                                             
Losses on                    -   (6,012)  (6,012)        -   (1,382)  (1,382)
investments                                                                  
                                                                             
Dividends and            1,230        -    1,230     1,317        -    1,317 
interest                                                                     
                                                                             
Investment                 (61)     (92)    (153)      (62)     (92)    (154)
management fee                                                               
                                                                             
Other expenses            (113)       -     (113)     (107)       -     (107)
                                                                             
Net return before                                                            
                                                                             
finance costs and        1,056   (6,104)  (5,048)    1,148   (1,474)    (326)
taxation                                                                     
                                                                             
Interest payable           (72)    (108)    (180)      (86)    (129)    (215)
                                                                             
Appropriations in                                                            
respect of:                                                                  
                                                                             
- Zero Dividend              -     (310)    (310)        -     (288)    (288)
Preference shares                                                            
                                                                             
- Preference shares          -       (2)      (2)        -       (1)      (1)
                                                                             
Issue costs of Zero                                                          
                                                                             
Dividend Preference          -      (15)     (15)        -      (15)     (15)
shares                                                                       
                                                                             
Return on ordinary                                                           
activities                                                                   
                                                                             
before and after           984   (6,539)  (5,555)    1,062   (1,907)    (845)
taxation                                                                     
                                                                             
First interim             (347)       -     (347)     (339)       -     (339)
dividend paid of                                                             
2.20p                                                                        
                                                                             
(2001: 2.15p)                                                                
                                                                             
Second interim            (346)       -     (346)     (338)       -     (338)
dividend proposed of                                                         
2.20p                                                                        
                                                                             
(2001: 2.15p)                                                                
                                                                             
Transfer to/(from)         291   (6,539)  (6,248)      385   (1,907)  (1,522)
reserves                                                                     
                                                                             
Return per:               pence    pence    pence     pence    pence    pence
                                                                             
Ordinary share            6.25   (41.52)  (35.27)     6.74   (12.11)   (5.37)
                                                                             
Zero Dividend                -     4.97     4.97         -     4.60     4.60 
Preference share                                                             
                                                                             
Preference share             -     4.97     4.97         -     4.60     4.60 
                                                                             

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

CONSOLIDATED BALANCE SHEET

                                            As at          As at        As at
                                                                             
                                      (unaudited)      (audited)  (unaudited)
                                                                             
                                       31 October       30 April   31 October
                                                                             
                                             2002           2002         2001
                                                                             
                                           £'000          £'000        £,000 
                                                                             
Investments                               28,899         35,915       29,300 
                                                                             
Current assets                                                               
                                                                             
Debtors                                      236            610          284 
                                                                             
Cash at bank                                   1              1          130 
                                                                             
                                             237            611          414 
                                                                             
Current liabilities                                                          
                                                                             
Creditors                                    592          2,192        1,073 
                                                                             
Bank overdraft                             7,130          6,999        6,548 
                                                                             
                                           7,722          9,191        7,531 
                                                                             
Net current liabilities                   (7,485)        (8,580)      (7,117)
                                                                             
Total assets less current                 21,414         27,335       22,183 
liabilities                                                                  
                                                                             
Creditors - amounts falling due                                              
after                                                                        
                                                                             
more than one year                        (8,062)        (7,735)      (7,423)
                                                                             
Net assets                                13,352         19,600       14,760 
                                                                             
Share capital and reserves                                                   
                                                                             
Share capital                              3,938          3,938        3,938 
                                                                             
Share premium                             11,126         11,126       11,126 
                                                                             
Capital reserve                           (2,479)         4,060       (1,074)
                                                                             
Revenue reserve                              767            476          770 
                                                                             
Shareholders funds                        13,352         19,600       14,760 
                                                                             
Total net assets attributable to:                                            
                                                                             
Ordinary shares                           13,061         19,600       14,375 
                                                                             
Zero Dividend Preference shares            8,021          7,696        7,386 
                                                                             
Preference shares                             41             39           37 
                                                                             
Net asset value per:                                                         
                                                                             
Ordinary share                            82.92p        124.44p       91.27p 
                                                                             
Zero Dividend Preference share           128.34p        123.13p      118.17p 
                                                                             
Preference share                         130.61p        125.64p      120.94p 

CONSOLIDATED STATEMENT OF CASHFLOWS                                          
                                                                             
                                               1 May 2002 to    1 May 2001 to
                                                                             
                                             31 October 2002  31 October 2001
                                                                             
                                                      £'000            £'000 
                                                                             
Net cash inflow from operating activities               221            1,139 
                                                                             
Servicing of finance                                                         
                                                                             
Interest paid                                          (147)            (218)
                                                                             
Net cash outflow from servicing of                     (147)            (218)
finance                                                                      
                                                                             
Taxation recovered                                        5                8 
                                                                             
Capital expenditure and financial                                            
investment                                                                   
                                                                             
Purchase of investments                              (3,168)          (7,815)
                                                                             
Sale of investments                                   3,824            8,462 
                                                                             
Net cash inflow from capital expenditure                656              647 
                                                                             
and financial investment                                                     
                                                                             
Equity dividends paid                                  (866)            (843)
                                                                             
(Decrease)/ increase in cash                           (131)             733 
                                                                             

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 2002. 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 2002 were delivered to the
Registrar.

2. The Directors have declared a second interim dividend of 2.20p (2001: 2.15p)
per Ordinary share, payable on 31 December 2002 to the holders of Ordinary
shares on the Register at 6 December 2002. The total dividend for the year
ended 30 April 2002 amounted to 9.75p per Ordinary share. Projected forecasts
indicate that the total dividend for the year ending 30 April 2003 should be at
least maintained at this amount.

3. The revenue return per Ordinary share is based on earnings of £984,000
(2001: £1,062,000) and on 15,750,000 (2001: 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 losses of £
6,539,000 (2001: losses £1,907,000) and on 15,750,000 (2001: 15,750,000)
Ordinary shares, being the weighted average number of Ordinary shares in issue
during the period.

5. An amount of £200,000 (2001: £221,000) has been charged to capital in
respect of management fees and interest in accordance with the Company's
accounting policy.

6. 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 October 2002
calculated in accordance with the provisions of FRS4, was 128.34p per Zero
Dividend Preference share (2001: 118.17p) and 130.61p per Preference share
(2001: 120.94p). A total amount of £312,000 (2001: £289,000) has been charged
to capital during the period, in respect of their accrued entitlement.

8. The net assets attributable and the net asset value per share are calculated
under the provisions of FRS4, and exclude current period revenue for the
unaudited values at 31 October 2002 and 2001. Shareholders funds shown in the
Balance Sheet are also in accordance with FRS4.

9. The Group does not invest in other investment trusts.