Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 April 2008 and unaudited.

Performance at month end is calculated on a capital only basis

                            One      Three      One        Three      Five      
                            Month    Months     Year       Years      Years     
                                                                                
Net asset value             4.4%     9.5%       -12.8%     58.5%      179.5%    
                                                                                
Share price                 6.0%     8.6%       -17.1%     53.4%      193.4%    
                                                                                
HGSC ex Inv Trust + AIM*    1.2%     0.9%       -21.1%     13.0%       72.1%   

Sources: BlackRock and Datastream

*With effect from 1 September 2007 the Hoare Govett Smaller Companies plus AIM
(ex Investment companies) Index replaced the FTSE SmallCap Index (ex Investment
Companies) as the Company's benchmark. For the one year, three year and five
year periods above the index has been blended to reflect this.

At month end                                                         
                                                                     
Net asset value (debt at par value):                415.64p          
                                                                     
Net asset value (debt at fair value):               411.34p          
                                                                     
Share price:                                        336.00p          
                                                                     
Discount to NAV (debt at par value):                19.2%            
                                                                     
Discount to NAV (debt at fair value):               18.3%            
                                                                     
Net yield:                                          1.4%             
                                                                     
Total assets:                                       £222.27m         
                                                                     
Gearing:                                            10.0%            
                                                                     
Ordinary shares in issue^:                          48,509,708       

(^excluding 1,483,815 shares held in treasury)

 

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Support Services                                                           14.1
                                                                               
Software & Computer Services                                               12.8
                                                                               
Oil & Gas Producers                                                        10.8
                                                                               
Industrial Metals & Mining                                                  9.9
                                                                               
Industrial Engineering                                                      9.7
                                                                               
Financial Services                                                          7.8
                                                                               
Aerospace & Defence                                                         4.8
                                                                               
Electronic & Electrical Equipment                                           3.8
                                                                               
Health Care Equipment & Services                                            3.3
                                                                               
Media                                                                       3.3
                                                                               
                                                                           ----
                                                                               
Total                                                                      80.3
                                                                           ====

 

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Albidon                                                                        
                                                                               
BSS                                                                            
                                                                               
Civica                                                                         
                                                                               
Dechra Pharmaceuticals                                                         
                                                                               
Hill & Smith                                                                   
                                                                               
Mouchel                                                                        
                                                                               
Rathbone Brothers                                                              
                                                                               
Spirax-Sarco Engineering                                                       
                                                                               
Ultra Electronics                                                              
                                                                               
Victrex                                                                        
                                                                               
                                                                               

 

Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During April the Company's NAV rose by 4.4%. The benchmark index rose by 1.2%
whilst the FTSE100 rose strongly by 6.8%.

In relative terms, the best stock contributions came from Albidon, Nighthawk
Energy and Expro International. Albidon continues to move towards production
from its Munali nickel mine; it is well ahead of schedule and production of
concentrate is now imminent. Nighthawk drilled its first exploration well at
its Jolly Ranch interests in Colorado; the well encountered hydrocarbons and
management have high expectations for the project. Expro received a firm cash
bid from a Candover-led group, and subsequently Halliburton announced that they
too may bid.

The worst performer during the month was Encore Oil, which announced that the
demerger of its gas storage interests would be delayed until after the drilling
of a planned evaluation well during the summer. The market was looking for
earlier news, but it seems likely that buyers for the gas storage interests are
in the wings pending drilling of this well.

New holdings included small positions in Stanley Gibbons, the world's leading
dealer in stamps, and Xchanging, an outsourcing company focussing largely on
private sector clients. Positions were also taken in two previous holdings, Gem
Diamonds and PV Crystalox Solar, both after positive meetings with management.
We sold holdings in Stratic Energy and Genus, the latter after a strong run.

Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).

23 May 2008