Interim Management Statement

British Smaller Companies VCT PLC
09 August 2007


BRITISH SMALLER COMPANIES VCT PLC ('the Company')


INTERIM MANAGEMENT STATEMENT

For the quarter ended 30 June 2007


British Smaller Companies VCT plc presents its interim management statement for
the quarter ended 30 June 2007. This constitutes the Company's first interim
management statement for the financial year ending 31 March 2008, as required by
the UK Listing Authority's Disclosure and Transparency Rule 4.3.


The unaudited net asset value per Ordinary share as at 30 June 2007 was 98.4p
(101.4 pence per share before taking account of the proposed dividend). This
compares to 101.3 pence per share at 31 March 2007. The dividend was paid
on 8 August 2007 following approval by the shareholders at the annual general
meeting on 1 August 2007.


The successful fundraising has increased the investment capacity albeit with
some small dilution to the net asset value as a result of the bonus offer to
shareholders. The last three months have seen further growth from the investment
portfolio which has increased by £0.8 million in value resulting at 30 June 2007
in an overall increase in total return to 136.4 pence per share from 136.3 pence
as at 31 March 2007.


The Company has already begun to take advantage of the increased investment
capacity completing three transactions at a cost of £1.8 million in the two
months since the fundraising closed.


The number of Ordinary shares in issue at 30 June 2007 was 26,109,189. During
the three months ended 30 June 2007 9,802,240 shares were issued at a price of
102.5p per share raising an aggregate of £9,182,909 net of expenses and 300,000
shares were re-purchased by the Company at a price of 87p per share. These
shares are held in Treasury.


During the quarter the C shares were converted into Ordinary shares. The
conversion, in accordance with the Articles of Association, was by reference to
a conversion formula based on the relative net assets of the Company on 30 April
2007, being the calculation date. The 1,258,676 C shares were converted into
1,415,585 new Ordinary shares and 4,877,795 deferred shares. The deferred shares
so issued were immediately purchased by the Company for an aggregate
consideration of 5p and cancelled.


Net assets at 30 June 2007 comprised the following:

                                                              % of net 
                                                    £000        assets

Unquoted investments at fair value                  7,086         27.6
Quoted investments at bid price                     6,653         25.9
                                                 --------     --------
Total venture capital investments                  13,739         53.5
                                                 --------     --------

Cash and cash equivalents                          12,070         47.0
Other net current assets                             (128)        (0.5)
                                                 --------     --------
Net assets                                         25,681        100.0
                                                 --------     --------


The ten largest investments by valuation at 30 June 2007 were as follows:

                                                              % of net 
                                                    £000        assets

GO Outdoors Limited                                1,913           7.4
Cozart plc                                         1,714           6.7
Sheet Piling Limited                               1,389           5.4
Connaught plc                                      1,353           5.3
Cater Plus Services Limited                        1,000           3.9
Oasis Healthcare plc                                 839           3.3
Harvey Jones Limited                                 777           3.0
Mattioli Woods plc                                   678           2.6
Harris Hill Limited                                  600           2.3
Tikit plc                                            580           2.3
                                                --------      --------
Top ten investments                               10,843          42.2

Other investments                                  2,896          11.3
                                                --------      --------
Total venture capital investments                 13,739          53.5
                                                --------      --------


Quoted investments are carried at bid price at 30 June 2007. Unquoted investment
are carried at fair value as at 30 June 2007 as determined by the directors.


During the three months ended 30 June 2007 the following significant investment
transactions took place (all companies are unquoted except where otherwise
indicated):


New Investments:
                                                                        Amount
                                                                      invested
Name of company:                    Business activity:                    £000

Harris Hill Limited                 Specialist recruitment business        600
Harvey Jones Limited                Fitted kitchen specialist              777
Pressure Technologies plc (AiM)     Designs, manufactures and 
                                    services high pressure seamless 
                                    steel gas cylinders                    425  
                                                                      --------
                                                                         1,802
                                                                      --------

Disposals:

Name of company:                   Sale         Original        Carrying value
                               proceeds             cost           at 31 March
                                                                          2007 
                                   £000             £000                  £000

Oasis Healthcare plc                200              118                   192
Denison Mayes Limited                 5                5                     -
The JDA Group Limited               320               35                   300
                               --------         --------              --------
                                    525              158                   492
                               --------         --------              --------


In this period the Company has increased its net asset value to £25.7 million
from £15.4 million. There has been a continuation of the realisations
experienced in recent years and with further interest expressed in a number of
investments the board expect this pattern to continue throughout the first half
of this financial year. New investment opportunities have been presented at an
encouraging rate which has resulted in £1.8 million of new investments in the
last quarter. The board remains confident in the outlook for the current
financial year both in terms of new investment performance and continuing
realisations.


09 August 2007



For further information please contact:

David Hall YFM Private Equity Tel: [phone]







                      This information is provided by RNS
            The company news service from the London Stock Exchange