Final Results

ABERFORTH SMALLER COMPANIES TRUST plc

PRELIMINARY RESULTS

For the Year to 31 December 2005


FEATURES

Net Asset Value Total Return             +24.9%

Benchmark Index Total Return             +27.8%

Increase in Dividends per Ordinary Share  +7.7%


Aberforth Smaller Companies Trust plc (ASCoT) invests only in small UK
quoted  companies and does not invest in any unquoted securities,  AIM
listed  securities  or  securities  issued  by  investment  trusts  or
investment companies. ASCoT is managed by Aberforth Partners.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

REVIEW OF 2005 PERFORMANCE

Aberforth Smaller Companies Trust plc (ASCoT) achieved a total  return
of 24.9% for the year to 31 December 2005, which compares with a total
return  of  27.8%  from  the  Hoare  Govett  Smaller  Companies  Index
(Excluding Investment Companies), your Company's investment benchmark.
ASCoT  has  therefore  under-performed its  benchmark  for  the  year.
Larger   companies,  as  represented  by  the  FTSE  All-Share  Index,
registered a total return of 22.0%.

Your  Board has reviewed performance in detail and is fully supportive
of  your  Managers'  long  term and consistent  application  of  their
investment  philosophy.  This inevitably leads  to  short  periods  of
under-performance from time to time.  Last year's Chairman's Statement
included  in its summary the cautionary note "…it would be unwise  for
investors to extrapolate the significant returns enjoyed over the last
two  years."   At  the time, this sentiment was shared unanimously  by
your Board and Managers.  With hindsight, a priceless investment tool,
this  caution  was  misplaced as the returns noted demonstrate.   This
third  consecutive  year  of  outstanding  absolute  returns  produces
compound annual total returns over this period for ASCoT of 30.1%, for
the  investment benchmark of 30.2%, and for larger companies of 18.5%.
This  complements compound annual total returns for the 15 years since
ASCoT's  inception  of  17.3% from ASCoT, 12.2%  from  its  investment
benchmark, and 10.7% from larger companies.


Your  Board  is pleased to recommend a final dividend of 7.85p,  which
produces  total  dividends  for the year  of  11.85p  representing  an
increase  of  7.7%  on the total for the previous  year.   Subject  to
Shareholders' approval, the final dividend of 7.85p per share will  be
paid  on 7 March 2006 to Shareholders on the register at the close  of
business  on 10 February 2006.  ASCoT operates a Dividend Reinvestment
Plan  and  the relevant documentation is available from your Managers'
website or on request for those Shareholders not already participating
in this Plan.



SHARE BUY BACK AUTHORITY AND TREASURY SHARES

At  the  Annual  General Meeting in February 2005,  the  authority  to
purchase  up  to  14.99% of ASCoT's Ordinary Shares was  renewed.   No
Shares  were purchased during the year.  Your Board will be seeking  a
renewal of this authority at the Annual General Meeting to be held  on
1  March  2006.   Your Board has established, and keeps under  careful
review,  the circumstances under which such authority may be utilised.
Should these arise, ASCoT will seek to purchase Ordinary Shares and it
is  your Board's current policy to cancel rather than hold in treasury
any such shares.

ACCOUNTING STANDARDS

ASCoT continues to prepare its financial statements under UK Generally
Accepted  Accounting Practice and the AITC's Statement of  Recommended
Practice.  Your Board, following discussions with the Secretaries  and
your   Company's   auditors,  resolved  not  to  adopt   International
Accounting  Standards  (IAS)  as  such  adoption  would  result  in  a
presentation  format  that, in your Board's  opinion,  would  be  less
informative to Shareholders. In your Board's view, there would  be  no
material  change in the financial results and position of the  Company
were  it  to  adopt IAS. Your Board will, of course, keep this  matter
under review.

However,  consistent  with the 2005 Interim  Report,  these  financial
statements  do  incorporate  three changes  to  accounting  practices:
Financial Reporting Standards (FRS) 21 `Events after the Balance Sheet
Date', FRS 25 `Financial Instruments: Disclosure and Presentation' and
FRS   26  `Financial  Instruments:  Measurement'.  Adoption  of  these
standards  has required a change in the treatment and presentation  of
the  final  dividend  and  the  basis of valuing  investments  in  the
portfolio.   This  latter  change  involves  valuing  the   investment
portfolio at "bid" rather than "mid" prices, which has reduced ASCoT's
reported  NAV  by about 0.8%; similar adjustments have  been  made  to
historic  data so that performance is unaffected.  Further information
regarding  these  changes is provided in the notes to these  financial
statements.

INVESTMENT MANAGERS AND SECRETARIES

On  1  December  2005, the assets and business of  Aberforth  Partners
transferred   to   Aberforth  Partners  LLP,   a   limited   liability
partnership.    As   a   consequence,   the   investment   management,
administration and company secretarial services previously provided by
Aberforth Partners are now provided by Aberforth Partners LLP.   There
was no change to any of the terms of these services as a result.

SUMMARY AND OUTLOOK

As  noted,  2005  marked  the third consecutive  year  of  outstanding
absolute  returns from ASCoT and its investment benchmark.  There  are
reasons  to be cautious looking forward.  Amongst them, the UK economy
is  faltering  at  a time when seemingly cheap and  abundant  debt  is
causing  asset  prices to rise and fuelling M&A activity.   There  are
also  reasons  to be sanguine.  Most UK listed companies  have  strong
balance  sheets, good cash flows and are earning high real returns  on
capital  employed.   In turn, of course, these are the  very  features
that  are  driving the debt fuelled M&A activity, which, in part,  has
supported  the  attractive returns investors have enjoyed  these  last
three years.

Whatever the future holds, your Board is convinced that your Managers'
investment  philosophy, skill and experience will  serve  Shareholders
well  and  remains  committed  to this  approach  which  has  been  so
successful over the years.


                                                         David R. Shaw
                                                              Chairman
                                                       19 January 2006



The Income Statement, Balance Sheet, Reconciliation of Movements in
Shareholders' Funds and summary Cash Flow Statement are set out
below:-

INCOME STATEMENT
For the Year ended 31 December 2005
(unaudited)
                           12 months to           12 months to
                         31 December 2005         31 December 2004
                                                     (Restated)
                      Revenue Capital   Total  Revenue Capital   Total
                        £ 000   £ 000   £ 000    £ 000   £ 000   £ 000

Realised gains on           -  71,828  71,828        -  60,848  60,848
sales
Unrealised gains            -  50,758  50,758        -  54,686  54,686
                       ------  ------  ------    ------ ------  ------
Gains on investments        - 122,586 122,586        - 115,534 115,534
Dividend income        16,135   4,238  20,373   14,761       -  14,761
Interest income           632       -     632      339       -     339
Other income               27       -      27       53       -      53
Investment management  (2,083) (3,472) (5,555)  (1,680) (2,800) (4,480)
fee
Other expenses           (386) (2,542) (2,928)    (362) (2,864) (3,226)
                       ------  ------  ------   ------  ------  ------
Return on ordinary     14,325 120,810 135,135   13,111 109,870 122,981
activities before finance
costs and tax
Finance costs               -       -       -      (26)    (43)    (69)
                       ------  ------  ------   ------  ------  ------
Return on ordinary     14,325 120,810 135,135   13,085 109,827 122,912
activities
  before tax
Tax on ordinary             -       -       -        -       -       -
activities
                       ------  ------  ------   ------  ------  ------
Return attributable to
  equity shareholders  14,325 120,810 135,135   13,085 109,827 122,912
                       ====== ======= =======   ====== ======= =======

Returns per Ordinary   14.50p 122.27p 136.77p   13.24p 111.15p 124.39p
Share

The Board declared on 19 January 2006 a proposed final dividend  of
7.85p  per Ordinary Share (31 December 2004 - 7.25p) and the  total
payable  will  be  £7,757,000 (31 December 2004 - £7,164,000).  The
Board  also declared on 13 July 2005 an interim dividend of 4p  per
Ordinary  Share  (30  June 2004 - 3.75p) and  the  total  paid  was
£3,952,000(30 June 2004 - £3,705,000).


NOTES
1.   The  total  column of this statement is the  profit  and  loss
account of the Company.  All revenue and capital items in the above
statement  derive from continuing operations.  No  operations  were
acquired  or  discontinued  in the period.  A  Statement  of  Total
Recognised Gains and Losses is not required as all gains and losses
of the Company have been reflected in the above statement.

The  various  changes in accounting policies, as disclosed  in  the
Notes at the end of this announcement, have had a cumulative effect
of  decreasing the capital and total return attributable to  equity
shareholders  by £1,030,000 to £122,912,000 for the year  ended  31
December 2004.

2.  The calculations of revenue return per Ordinary Share are based
on  net revenue of £14,325,000 (31 December 2004 - £13,085,000) and
on Ordinary Shares of 98,809,788 (31 December 2004 - same).

The calculations of capital return per Ordinary Share are based  on
net capital gains of £120,810,000 (31 December 2004 - £109,827,000)
and on Ordinary Shares of 98,809,788 (31 December 2004 - same).



BALANCE SHEET
As at 31 December 2005
(unaudited)
                                             31           31
                                       December     December
                                           2005         2004
                                                   (Restated)
                                          £ 000        £ 000
Fixed assets: investments
Investments at fair value through       659,560      530,917
profit or loss
                                        -------      -------
Current assets
Debtors                                   1,408        1,911
Cash at bank                             10,267       14,378
                                        -------      -------

                                         11,675       16,289
Creditors (amounts falling due              (61)         (51)
within one year)
                                        -------      -------
Net current assets                       11,614       16,238
                                        -------      -------
Total assets less liabilities           671,174      547,155
                                        =======      =======

Capital and reserves: equity
interests
  Called up share capital (Ordinary         988          988
Shares)
Reserves:
  Special reserve                       197,305      197,305
  Capital reserve - realised            286,488      216,436
  Capital reserve - unrealised          162,442      111,684
  Revenue reserve                        23,951       20,742
                                        -------      -------
                                        671,174      547,155
                                        =======      =======

Net Asset Value per Ordinary Share      679.26p      553.75p

NOTES
As  at  31  December  2005, the Company had  98,809,788  Ordinary
Shares  (2004 - same). No Ordinary Shares were bought  in  during
either year.



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2005
(unaudited)

                                           2005       2004
                                          £ 000      £ 000

Opening shareholders' funds as          544,599    431,526
previously stated
Prior year adjustments                    2,556      2,943
                                       --------   --------
Opening shareholders' funds             547,155    434,469
(restated)
Total recognised gains and losses       135,135    122,912
before dividends
Dividends paid                         (11,116)   (10,226)
                                       --------   --------
Closing shareholders' funds             671,174    547,155
                                       ========   ========


SUMMARY CASH FLOW STATEMENT

For the Year ended 31 December 2005
(unaudited)
                                    12 months to     12 months to
                                    31 December       31 December
                                        2005             2004
                                    £ 000    £ 000   £ 000    £ 000

Net cash inflow from operating              15,066           10,159
activities

Returns on investment and
servicing of finance
Interest paid                           -              (69)
                                  -------          -------
Net cash outflow from returns on
investment
  and servicing of finance                       -              (69)

Capital expenditure and financial
investment
Payments to acquire investments  (209,872)        (220,674)
Receipts from sales of            201,811          212,506
investments
                                  -------          -------
Net cash outflow from capital
  expenditure and financial                 (8,061)          (8,168)
investment
                                           -------          -------
                                             7,005            1,922

Equity dividends paid                      (11,116)         (10,226)
                                           -------          -------
                                            (4,111)          (8,304)
Financing                                        -                -
                                           -------          -------
Decrease in cash                            (4,111)          (8,304)
                                           =======          =======

NOTES
1.    The  financial statements have been prepared  in  accordance
with  applicable accounting standards and the AITC's Statement  of
Recommended  Practice " Financial Statements of  Investment  Trust
Companies". Comparatives have been restated following the adoption
of FRS 21 "Events after the Balance Sheet Date", FRS 25 "Financial
Instruments:  Disclosure & Presentation"  and  FRS  26  `Financial
Instruments: Measurement'.

The  adoption  of  FRS 21 has  resulted in a change in  accounting
for dividends. Dividends payable  by the  Company are now recorded
as  a  liability  following a dividend  declaration  by the  Board
and therefore  the  proposed final  dividend  of  7.85p per share,
declared  today, has  not  been  recorded  as a  liability  of the
Company  as  at  31  December 2005 (2004 - 7.25p  per  share).  In
previous  financial statements, dividends declared were recognised
in  respect  of the period to which they related. This  change  in
accounting  policy has increased Shareholders' funds by £7,164,000
as at 31 December 2004.

The  adoption of FRS 26 has resulted in a change in the  basis  of
valuation  of investments. Under FRS 26, the Company's investments
have  been categorised as "financial assets at fair value  through
profit or loss" and therefore quoted investments are now valued at
bid  prices. Previously, quoted investments were valued at  middle
market  prices.  This  change  in accounting  policy  has  reduced
Shareholders' funds by £4,608,000 (equivalent to 4.66p per  share)
as at 31 December 2004.

As  a  further  consequence of investments  being  categorised  as
"financial assets at fair value through profit or loss", the gains
on  investments on the Income Statement has been restated and  now
reflects  the movements in unrealised appreciation, based  on  bid
prices.  Transaction  costs  incidental  to  the  acquisition   or
disposal of investments which are now treated as a capital expense
and  included  within  expenses under the capital  column  of  the
Income Statement.  Previously such transaction costs were included
within  book  cost  of investments and proceeds from  sales.  This
change   in  accounting  policy  has  reduced  the  total   return
attributable  to Shareholders for the year ended 31 December  2004
by  £1,030,000 (equivalent to 1.04p per share) as at  31  December
2004.

2.    The foregoing do not comprise statutory accounts (as defined
in  section 240(5) of the Companies Act 1985) of the Company.  The
statutory  accounts  for  the  year to  31  December  2004,  which
contained an unqualified Report of the Auditors under section  235
of  the  Companies  Act, have been lodged with  the  Registrar  of
Companies  and did not contain a statement required under  section
237(2) or (3) of the Companies Act 1985.

3.   The Annual Report is expected to be posted to shareholders on
23  January  2005.  Members of the public may obtain  copies  from
Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3  7NS  or
from its website at www.aberforth.co.uk.


CONTACT:    David Warnock,Aberforth Partners LLP,Tel [phone]

Aberforth Partners LLP, Secretaries - 19 January 2006

ANNOUNCEMENT ENDS