AGM Statement

British Smaller Companies VCT PLC
23 July 2001


                      British Smaller Companies VCT plc


                            Chairman's AGM Statement

                        Demand for funds remains strong
                    Profitable realisations in the pipeline
                  Increased emphasis on innovative companies


British Smaller Companies plc ('the Company') held its Annual General Meeting
in London at noon today.  All resolutions were duly passed.

Speaking at the meeting, Sir Andrew Hugh Smith, the Chairman, made the
following comments:

'Since the year end, the Company has invested a further £1.6m in four
companies and your Board's Investment Adviser, Yorkshire Fund Managers
Limited, continues to report a good flow of enquiries for finance.'

Commenting on the Company's prospects, Sir Andrew said:  'Your Board will
continue to invest in a balanced portfolio across a range of industry sectors,
retaining a broad range of old economy businesses, but with an increasing
level of new innovative businesses.'

He said the Company was maintaining its policy of seeking realisation
opportunities and two disposals were close to completion.  This policy would
enable liquid resources to be made available to businesses offering
significantly higher overall returns and allow the Company to broaden the
portfolio.

'I believe that our present course of action will lead to a significant
improvement in medium to long-term shareholder value,' he said.


For further information, please contact:

Phil Cammerman
Yorkshire Fund Managers Ltd                  Tel:  [phone]

Rob Peasgood
Binns & Co                                   Tel:  [phone]

Simon Mountford
Simon Mountford Communications               Tel:  [phone]