Interim Results

Edinburgh Small Companies Trust PLC
5 February 2001

5 February 2001



                     EDINBURGH SMALL COMPANIES TRUST PLC

                               INTERIM RESULTS

            INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2000


  * The net asset value has fallen by 10.2% over the six month period
    compared to an unchanged performance from the benchmark

  * Over the past 18 months the net asset value of Edinburgh Small Companies
    Trust has appreciated by 50.7% compared to a rise of 16.0 % in the
    Extended Hoare Govett Smaller Companies Index (excluding investment
    trusts)

  * We believe that the small company sector offers good long-term
    investment opportunities


- Ends -


For further information, please contact:


Alistair Currie, Director

Edinburgh Fund Managers plc 0131 313 1000

Alex Gowans, Director,

Edinburgh Fund Managers plc 0131 313 1000

EDINBURGH SMALL COMPANIES TRUST


CHAIRMAN'S STATEMENT

Performance

After the very strong performance during the last financial year a number of
the stocks which contributed to the 67.9% rise in the net asset value
encountered some profit taking in the period under review. As a result the net
asset value has fallen by 10.2% from 252.5p to 226.7p over the past six months
compared to an unchanged performance from the extended Hoare Govett Smaller
Companies Index (excluding investment trusts). The fall in share price of 3.4%
from 198.5p to 191.75p was less than the reduction in the net asset value due
to a narrowing in the discount to 15.4%.


Over the past 6 months the smaller companies sector has been affected by
volatility in the share prices of companies operating in telecommunications,
media and technology (TMT) related industries. After their excellent share
price performance throughout the last financial year a number have succumbed
to significant short-term profit taking. At 31 December 2000 around 50% of the
value of the portfolio was invested in TMT companies, and their weakness
contributed to the fall in the net asset value.


The sector continues to offer attractive longer-term investment opportunities
but may be characterised by wide swings in share prices as has been witnessed
over the past 6 months. It is encouraging that over the past 18 months, which
includes a period when TMT stocks were performing well, that the net asset
value of Edinburgh Small Companies has appreciated by 50.7% compared to a rise
of 16.0% by the benchmark emphasising once again the importance of taking a
long-term view when investing in smaller companies.

Gearing

During the period under review a further £10m tranche of the existing
debenture was issued raising £10.6m after expenses. Under normal circumstances
the directors do not anticipate actual gearing levels exceeding 25% of
shareholders funds.


The level of borrowing committed to the market was actively managed over the
past 6 months and ranged between 14.2% and 24.5%. At 31 December 2000 the
amount of borrowings committed to the equity market represented 24.5% of
shareholders funds.

Revenue Account

Earnings per share have fallen from 0.81p per share to a loss of 0.38p per
share. The change to a loss in earnings per share reflects a change in the
composition of the portfolio towards lower yielding investments and an
increase in interest payable on the new debenture issue. The board is not
recommending an interim dividend.

Outlook

The outlook for the smaller companies sector remains promising but the
volatility which has become evident over the past 6 months, particularly in
the TMT sectors, highlights once again the need to take a long-term view on
investments.


Whilst Edinburgh Small Companies Trust is not a technology trust the portfolio
does have a significant exposure to companies often referred to as TMT stocks.
We believe we have identified a number of companies with a strong
technological and competitive advantage in a dynamic area of the economy
which, if the markets develop as we anticipate, will produce substantially
above average growth in earnings per share.


A few may emerge as industry leaders in their chosen sector although,
inevitably, some will fall by the wayside. The valuation of the sector is
influenced by developments overseas, particularly by the NASDAQ in North
America. Nevertheless the longer-term outlook for many of the companies is
encouraging, and the recent setback in the sector, caused by a moderation in
US growth prospects, will offer the scope for selective purchases.


In addition to the holdings in TMT companies, the portfolio also has exposure
to smaller companies operating in more traditional industries. The valuation
of a number of these companies remains modest, which offers the potential for
a re-rating or corporate activity as pressure is put on management to realise
value.


Not withstanding any further short term volatility in the sector the directors
continue to believe that the small company sector continues to offer good long
term investment opportunities.


        Donald MacDonald

        Chairman

        5 February 2001


STATEMENT OF TOTAL RETURN

For the six months to 31 December 2000 (unaudited)
                                             Revenue     Capital      Total
                                              £000        £000        £000
Realised gains/(losses) on investments     -           13,195      13,195
Unrealised gains/(losses) on investments   -           (30,063)    (30,063)


Total capital gains/(losses) on            -           (16,868)    (16,868)
investments
Loss on early sales of Treasury Bills      -           -           -
Buy back of warrants                       -           -           -
Income from investments                    1,077       -           1,077
Interest receivable on short term deposits 86          -           86
Other income                               10          -           10
Investment management fee                  (618)       (618)       (1,236)
Administrative expenses                    (131)       -           (131)


Net return before finance costs and        424         (17,486)    (17,062)
taxation
Interest payable and similar charges       (691)       (663)       (1,354)


Return on ordinary activities before       (267)       (18,149)    (18,416)
taxation
Taxation                                   -           -           -


Return on ordinary activities after        (267)       (18,149)    (18,416)
taxation
Dividend in respect of equity shares       -           -           -


                                           (267)       (18,149)    (18,416)


Return per ordinary share                  (0.38p)     (26.09p)    (26.47p)


Diluted return per ordinary share          (0.38p)     (25.51p)    (25.89p)


For the six months to 31 December 1999 (unaudited)
                                             Revenue     Capital      Total
                                              £000        £000        £000
Realised gains/(losses) on investments     -           7,879       7,879
Unrealised gains/(losses) on investments   -           67,554      67,554


Total capital gains/(losses) on            -           75,433      75,433
investments
Loss on early sales of Treasury Bills      -           -           -
Buy back of warrants                       -           (448)       (448)
Income from investments                    1,202       -           1,202
Interest receivable on short term deposits 230         -           230
Other income                               26          -           26
Investment management fee                  (517)       (517)       (1,034)
Administrative expenses                    (160)       (46)        (206)


Net return before finance costs and        781         74,422      75,203
taxation
Interest payable and similar charges       (574)       (574)       (1,148)


Return on ordinary activities before       207         73,848      74,055
taxation
Taxation                                   -           -           -


Return on ordinary activities after        207         73,848      74,055
taxation
Dividend in respect of equity shares       -           -           -


                                           207         73,848      74,055


Return per ordinary share                  0.30p       106.20p     106.50p


Diluted return per ordinary share          0.29p       104.64p     104.93p



For the year to 30 June 2000 (audited)
                                             Revenue     Capital      Total
                                              £000        £000        £000
Realised gains/(losses) on investments     -           30,596      30,596
Unrealised gains/(losses) on investments   -           43,770      43,770


Total capital gains/(losses) on            -           74,366      74,366
investments
Loss on early sales of Treasury Bills      -           (4)         (4)
Buy back of warrants                       -           (521)       (521)
Income from investments                    2,763       -           2,763
Interest receivable on short term deposits 444         -           444
Other income                               31          -           31
Investment management fee                  (1,168)     (1,168)     (2,336)
Administrative expenses                    (337)       (120)       (457)


Net return before finance costs and        1,733       72,553      74,286
taxation
Interest payable and similar charges       (1,141)     (1,141)     (2,282)


Return on ordinary activities before       592         71,412      72,004
taxation
Taxation                                   (30)        26          (4)


Return on ordinary activities after        562         71,438      72,000
taxation
Dividend in respect of equity shares       (522)       -           (522)


                                           40          71,438      71,478


Return per ordinary share                  0.81p       102.73p     103.54p


Diluted return per ordinary share          0.79p       100.64p     101.43p
 

BALANCE SHEET

(unaudited)
                                                At 31    At 30 June    At 31
                                              December               December
                                                            2000
                                                2000                   1999
                                                £000        £000       £000
Fixed assets
Investments                                  196,469     205,292    199,864


Current assets                               2,737       3,406      9,636
Current liabilities                          1,420       3,110      1,288


Net current assets                           1,317       296        8,348


                                             197,786     205,588    208,212
Creditors: amounts falling due after more    41,510      30,954     30,975
than one year


                                             156,276     174,634    177,237



Capital and reserves
Called up share capital                      17,400      17,386     17,386
Reserves                                     138,876     157,248    159,851


Total shareholders' funds relating to equity 156,276     174,634    177,237
interests



Net asset value per ordinary share           226.70p     252.48p    256.26p

Fully diluted net asset value per ordinary   221.41p     245.99p    249.40p
share

CASHFLOW STATEMENT

(unaudited)


                                      At 31 December At 31 December At 30 June
                                           2000           1999         2000
                                           £000           £000         £000

Revenue before finance costs and                 424            781       1,733
taxation
Decrease in accrued income                       355            271       (135)
Increase in debtors                                2           (26)         (6)
Increase in creditors                           (33)            132         105
Tax on unfranked investment income                 -              -         (2)
Expenses charged to capital                    (618)          (439)     (1,065)


Net cash inflow from operating                   130            719         630
activities
Net cash outflow from servicing of           (1,187)        (1,163)     (2,324)
finance
Total tax paid                                     -              -         (2)
Net cash inflow/(outflow) from               (9,382)          3,991     (1,168)
financial investment
Equity dividends paid                          (522)          (278)       (278)


Net cash inflow/(outflow) before            (10,961)          3,269     (3,142)
financing
Net cash inflow/(outflow) from                10,649          (857)     (1,059)
financing

Management of liquid resources                     -        (1,999)       5,963


(DECREASE)/INCREASE IN CASH                    (312)            413       1,762




NOTES :


 1. The accounts are prepared under the same accounting policies used for the
    year to 30 June 2000.

 2. The financial information for the year ended 30 June 2000 has been
    extracted from the Annual Report and Accounts of the Company which have
    been filed with the Registrar of Companies and contained an unqualified
    auditors' report.

 3. The statement of total return (incorporating the revenue account),
    balance sheet and cashflow statement set out above do not represent full
    accounts in accordance with Section 240 of the Companies Act 1985.

 4. The investment management fee in each case includes irrecoverable VAT
    calculated at 17.5 per cent.

 5. No interim dividend has been declared in respect of the year ending 30 June
    2001.

6.  The Interim Report will be posted to shareholders on 21 February 2001 and   
    copies will be available from the registered office of the Company .

Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise. Investors may not get back the amount they originally invested.


For Edinburgh Small Companies Trust plc

Edinburgh Fund Managers plc, Secretary

Valerie MacKenzie

Company Secretary