Initial Accounts

BFS SMALL COMPANIES DIVIDEND TRUST PLC
31 August 1999

                    BFS SMALL COMPANIES DIVIDEND TRUST PLC                    

             PRELIMINARY ANNOUNCEMENT OF UNAUDITED INITIAL RESULTS 

The Directors announce the unaudited statement of consolidated  results for
the period 6 April 1999 to 31 July 1999 as follows

CONSOLIDATED STATEMENT OF TOTAL RETURN (Incorporating the Revenue Account)


                                           Period to 31 July 1999

                                         Revenue   Capital    Total           
                                            £'000     £'000   £'000

Gains on investments                          -      2,483   2,483
 
Dividends and interest                       750       -       750
Investment management fee                    (24)      (36)    (60)
Provision for 
  Investment management performance fee       -       (587)   (587)
Other expenses                               (49)       (3)    (52)
                                            -----     -----   -----    

Net return before finance
 costs and taxation                          677      1,857  2,534    

Interest payable and 
 similar charges                              (6)       (9)    (15)
                                           -----      -----    ----   

Return on ordinary
 activities
 before taxation                             671     1,848   2,519

Taxation on 
 ordinary activities                         (72)        -     (72)
                                            -----     -----   -----     

Return on ordinary
 activities after 
 taxation for the period                     599     1,848   2,447

Appropriations in respect of :
 Zero Dividend Preference shares              -       (105)   (105)
 Preference shares                            -         (1)     (1)           
                                              ----      -----   -----         
                                  
Return attributable to 
 Ordinary shareholders                       599     1,742   2,341

Dividend in respect of 
 Ordinary shares                            (300)        -    (300)           
                                              -----     -----   -----    

Transfer to reserves                         299     1,742   2,041
                                            =====    =====   =====    



                                        pence     pence      pence
Return per share:
 Ordinary Share                          3.99      11.62     15.61
 Zero Dividend Preference Share            -        1.68      1.68
 Preference Share                          -        1.68      1.68
                                        ======    ======     ======


* The revenue column of this statement is the revenue column of the Group.
The accounts have been prepared on the basis of the accounting policies set
out in the Listing Particulars which have been delivered to the Registrar of
Companies

 

SUMMARISED BALANCE SHEET

                                                    As at
                                                  31 July
                                                     1999
                                                    £'000

Investments                                        26,773
Net current liabilities                            (4,195)
                                                   ------

Total assets less current
 liabilities                                       22,578
Creditors- amounts falling due
 after more than one year                          (6,387)
                                                   ------
Total net assets                                   16,191
                                                   ======

Net asset value per share                                
 at 31 July 1999 values :

Ordinary                                          105.95p
Zero Dividend Preference                          101.68p
Preference                                        101.68p

NOTE


1.The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985

2.The Directors have declared a first interim dividend of 2.00p net per
Ordinary share, payable on 30 September 1999 to the holders of Ordinary shares
on the Register at 10 September 1999.

3.The Placing document indicated that on the basis of the then current market
conditions and bases and assumptions contained in at document that net
dividends on the Ordinary shares  in respect of the first accounting period to
30 April 2000 will total 8.3p. On current projections this forecast will be
met.

4.The revenue return per Ordinary share is based on earnings of £599,000 on
15,000,000 Ordinary shares in issue throughout the period.

5. The capital return per Ordinary share is based on net capital profits of
£1,311,000 on 15,000,000 Ordinary shares in issue throughout the period.

6. An amount of £1,063,000 has been charged to capital in respect of
management fees and interest in accordance with accounting policy.

7. It is the intention of the Directors to conduct the affairs of the Company
so that it satisfies the conditions for approval as an investment trust
company set out in section 842 of the Income and Corporation Tax Act 1988.

8. There are 6,250,000 Zero Dividend Preference shares in issue. They have an
initial capital entitlement of £1.00 per share, growing to £1.8463 on 30th
April 2007.  The accrued entitlement as at 31st July 1999 was 101.68p. per
share and the total amount accrued of £105,000 has been charged to capital.

9. The amount of £587,000 shown above reflects a provision for a performance
fee payable to the Investment Manager on the assumption that the Company's
performance for the accounting period ending 30 April 2000 will be the same as
for the period to 31 July 1999.