Interim Results

SHIRES SMALLER COMPANIES PLC
19 August 1999

                            
                SHIRES SMALLER COMPANIES'
                    HALF YEAR RESULTS
                            

The  objective  of  Shires Smaller Companies  plc  is  to
provide  an overall return greater than that of the  FTSE
All-Share Index from a portfolio invested principally  in
high-yielding securities of UK smaller companies.

     Interim Results for the six months to 30 June 1999

     Total return on net assets for the six months to 30
     June 1999  was 21.8%

     Interim  dividends to date total  2.90p  per  share
     (1998 2.80p)

     The  total  return to shareholders, at  27.7%,  was
     ahead of the return on net assets as the  discount at
     which the ordinary share price stood to net asset value
     per share fell from 23.3% at 31 December to 19.8% at 30
     June

    Following the seven interest rate reductions between
    October  1998  and June 1999, forecasters expect  renewed
    growth of the economy for the rest of 1999 and next year,
    which should boost the earnings of smaller companies.

For further information, please contact :

David Williams, Managing Director
Glasgow Investment Managers                      0141 572 2700

                            
                            
              Shires Smaller Companies plc
                            
       Interim Report - six months to 30 June 1999
                            
                  Chairman's Statement


Background

The seven interest rate reductions between October 1998
and June 1999, bringing clearing bank base rates down
from 7.5% to 5.0%, have been followed by a marked
recovery in consumer and business confidence in the UK.
Forecasters now expect renewed growth for the economy
over the rest of 1999 and next year.  As the performance
of UK smaller companies depends upon the health of the
domestic economy, their shares have responded positively
to the improvement in prospects and recovered some of the
ground lost to larger market capitalisation stocks in
1998.  Over the six months to 30 June 1999 the FTSE
SmallCap Index (excluding investment trusts) returned
31.2%, well ahead of the 11.5% return on the FTSE All-
Share Index.

Investment Returns

The Company's total return on net assets, including net
dividends reinvested, was 21.8%.  While well ahead of the
All-Share Index return which it is the long term
objective of the Company to beat, this return fell short
of the return on the SmallCap Index which represents the
behaviour of the smaller company segment of the market in
which the Company invests.

The principal contributions to the good performance of
the SmallCap Index were made by basic industry and
resource stocks, notably in the chemical and construction
industries where substantial recoveries in earnings are
expected.  The Company's portfolio was underweight in
these more cyclical sectors and emphasised sectors with
defensive characteristics, such as food manufacturing and
health care, which performed less well in the six months
under review.

The total return to a shareholder, at 27.7%, was ahead of
the return on net assets because the discount at which
the share price stood to net asset value per share fell
from 23.3% at 31 December to 19.8% at 30 June.

Earnings and Dividends

Revenue earnings per share, which included special
dividends of £541,000, were 5.51p compared with 2.32p for
the corresponding period last year.

The Board has declared a second interim dividend of 1.45p
per share, to be paid on 30 September 1999 to
shareholders on the register at close of business on 10
September 1999.  A first interim dividend of 1.45p was
paid on 30 June 1999.  Dividends declared and paid to
date in respect of the current year total 2.9p per share,
which compares with 2.8p for the corresponding period
last year.

Warrants

On 1 June 1999, the sixth subscription date for the
Company's warrants, holders exercised their rights to
subscribe for 12,134 new ordinary shares at £1 per share.

During the six months to 30 June 1999 the Company
purchased in the market 649,608 of its warrants for
cancellation.  There are now 2,463,417 warrants
outstanding and the last date for warrantholders to
subscribe for ordinary shares is 1 June 2000.  The
repurchase of warrants at a price which, taken together
with the subscription price of  £1 per ordinary share,
represents a discount to underlying net asset value per
share contributes a small increase in fully diluted net
asset value per share.

Outlook

With consumption expenditure leading the recovery in UK
economic activity, the external trade account
deteriorating, house price inflation accelerating and
Sterling depreciating relative to the Euro, further falls
in UK interest rates seem unlikely in the near future and
the short term outlook for UK equities in general appears
unexciting.  Faster domestic economic growth, however,
will result in higher earnings for companies whose
operations are concentrated in the UK. The principal
beneficiaries should be in the smaller company segment of
the stockmarket, which continues to offer good value.

The Interim Report will be posted to all shareholders on
24 August 1999.  Copies may be obtained from the
managers, Glasgow Investment Managers Limited, Sutherland
House, 149 St. Vincent Street, Glasgow G2 5DR, after that
date.

J Stubbs
Chairman

Shires Smaller Companies plc

STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)
for the half year ended 30 June 1999

                    Half year to 30 June 1999        Half year to 30 June 1998
                           (unaudited)                     (unaudited)
                      Revenue  Capital   Total        Revenue   Capital  Total
                        £000     £000     £000         £000      £000    £000
                                                                
Gains on investments      -     7,198    7,198           -      9,756    9,756
Dividends and interest 
receivable (note 1)     1,637    -       1,637          1,061     -      1,061
Foreign income  
dividends                 70     -          70             57       -       57
Underwriting commission    -     -          -              23       -       23
Investment management    
fee                     (102)   (102)    (204)          (114)   (114)    (228)
               
Other administrative     (91)    -       (91)           (113)   -        (113)
expenses
                         ______  ______   _____         ______  ______  ______
                   
NET RETURN BEFORE                                               
FINANCE COSTS AND       
TAXATION                 1,514   7,096    8,610          914     9642   10,556
                                     
                                                                
Finance costs of          260     260      520            262     262      524
borrowings
                         ______  ______   ____          ______  ______  ______
 
                                         
RETURN ON ORDINARY                                              
ACTIVITIES BEFORE        1,254   6,836    8,090           652   9,380   10,032
TAXATION                                
Taxation (note 2)        172     -        172              199     -       199
                         ______  ______   ____            ______  _____   ____
                                          
                                                                
RETURN ON ORDINARY                                         
ACTIVITIES AFTER         
TAXATION FOR THE PERIOD  1,082   6,836    7,918            453   9,380   9,833
               
Dividends on equity        570     -        570            548     -       548
shares
                         ______  ______   _____           ______  ______  ____
                                                                              
TRANSFER TO RESERVES       512   6,836    7,348           (95)    9,380  9,285
                          ______  ______  ______          ______  ______ _____
                                       
RETURN PER SHARE                                                
 - undiluted             5.51p   34.80p   40.31p         2.32p   48.00p 50.32p
 - fully diluted*        5.23p   33.06p   38.29p         2.16p   44.70p 46.86p

DIVIDENDS PER SHARE      2.90p                           2.80p           
                                                                
* The 1998 figures have been restated in accordance with Financial Reporting
Standard 14.

Shires Smaller Companies plc

DISTRIBUTION OF ASSETS
at 30 June 1999

                                30 June 1999        31 December 1998
                                 (unaudited)           (audited)
                             £000       %            £000        %
                                                     
Ordinary shares            48,477   115.9           41,371    118.7
Convertibles                5,019    12.0            5,666     16.2
                           ______   ______          ______   ______
                           53,496   127.9           47,037    134.9
                                                     
Net current liabilities   (1,713)   (4.1)           (2,209)   (6.3)
                          ______   ______           ______   ______
TOTAL ASSETS (less        
current liabilities)      51,783   123.8             44,828   128.6
                                                     
Long term loan            (9,964)  (23.8)            (9,962)  (28.6)
                          ______   ______            ______   ______
NET ASSETS                41,819   100.0             34,866   100.0
                          ______   ______            ______   ______
                                                     
NET ASSET VALUE PER                                  
SHARE                     
- undiluted               212.8p                     177.5p                  
- fully diluted           200.2p                     166.9p   


Notes:

1.   Dividends and interest receivable include special dividends totalling    
 £541,000 (1998 - Nil).

2.   The tax charge comprises tax credits of 20% of the gross
 amount of dividends receivable before 5 April 1999 and 10% of
 gross dividends receivable after that date.

3.   The information relating to the assets as at 31 December
 1998 is an extract from the latest audited accounts which have
 been delivered to the Registrar of Companies: the report of the
 auditors on these accounts was unqualified and did not contain a
 statement under Section 237(2) or (3) of the Companies Act 1985.


ANALYSIS OF PORTFOLIO
at 30 June 1999

                          30 June 1999     31 December 1998

                               %                   %
                                          
Resources                      -                  0.7
Basic industries              10.1               10.3
General industrials           12.5                9.9
Cyclical consumer              
goods                          5.2                7.0
Non-cyclical consumer  
goods                         12.0               12.1
Cyclical services             28.2               27.4
Non-cyclical services          2.2                2.0
Financials                    25.2               28.8
Information             
Technology                     4.6                1.8
                            ______             ______
TOTAL PORTFOLIO              100.0              100.0
                            ______             ______


The portfolio is wholly invested in United Kingdom companies.