Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 June 2009 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              1.2%    25.2%     -31.4%    -21.2%    22.5%     
Share price                 -0.6%    23.0%     -31.0%    -22.7%    27.7%     
HGSC ex Inv Trust + AIM*    -0.7%    22.6%     -26.5%    -34.6%   -17.3%  

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 three year and five year periods the
above index has been blended to reflect this.

At month end                                                                  
                                                                              
Net asset value Capital only (debt at par value):           281.56p           
Net asset value Capital only (debt at fair value):          276.07p           
Net asset value incl. Income (debt at par value):           284.68p**         
Net asset value incl. Income (debt at fair value):          279.19p**         
Share price:                                                232.50p           
Discount to Capital only NAV (debt at par value):           -17.42%           
Discount to Capital only NAV (debt at fair value):          -15.78%           
Net yield:                                                    2.17%             
Total assets:                                               £156.1m^           
Gearing incl. Income:                                         13.8%             
Ordinary shares in issue:                                48,194,792^^      

**includes net revenue of 3.12p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                       % of Total Assets
                                                                               
Software & Computer Services                                  11.1
Financial Services                                            10.3
Support Services                                               9.0
Oil & Gas Producers                                            8.6
Industrial Metals & Mining                                     7.1
General Retailers                                              5.2
Industrial Engineering                                         4.8
Travel & Leisure                                               4.6
Electronic & Electrical Equipment                              3.6
Pharmaceuticals & Biotechnology                                3.4
                                                              ----
Total                                                         67.7
                                                              ====

Ten Largest Equity Investments (in alphabetical order)                         

Company                                                                        
                                                                               
Abcam                                                                          
Aveva Group                                                                    
Brewin Dolphin Holdings                                                        
City of London Investment Group                                                
Dechra Pharmaceuticals                                                         
Domino Printing Sciences                                                       
Emerald Energy                                                                 
Fidessa Group                                                                  
Rathbone Brothers                                                              
Rensburg Sheppards                                                             

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

During June the Company's NAV increased by 1.2% on a capital only basis. By 
comparison, the benchmark fell by 0.7% and the FTSE 100 Index declined by 3.8%.

The main contributors to relative outperformance were holdings in Alterian and
Hill & Smith. Alterian announced good results and management are confident
about future prospects. Alterian's analytics software enables organisations to
engage with their customers more effectively. Hill & Smith announced that half
year results will be in line with expectations and cash generation has been
strong. Earnings are forecast to grow by 7% this year and the company's shares
are trading at less than 7 times current year earnings.

Relative performance was impacted by a poor contribution from Mouchel Group.
Mouchel has failed to win any of the larger contracts it had tendered for.
Whilst it has a large order book of contracted business, it also has a high
margin consultancy business where visibility is limited; this seems to have
seen a fall off in demand, much of which comes from UK government.
Additionally, Mouchel has business in the Middle East where it has struggled to
get paid. We have met with management to discuss prospects. We see further
downside as limited, with the shares trading on less than 7 times current and
forecast earnings, but it will take a while for the shares to re-rate to
previous multiples.

Holdings in Chemring, 3i Group and Burberry were sold. We wanted to reduce
further our overweight exposure to the aerospace and defence sector as we
expect defence budgets to be cut. Much though we like Chemring, and regard
executive management highly, we decided to sell the holding. 3i and Burberry
shares have both performed strongly since we bought our holdings several months
ago. They are now quite large companies in market capitalisation terms and we
are looking for opportunities lower down the size spectrum.

We took part in several placings and rights issues, the largest of which were
in London West End office investor and developer Great Portland Estates, real
estate developer St Modwen Properties, and department store operator Debenhams.
We also added holdings in HMV Group and Restaurant Group. In the very short
term we see UK consumer stocks and real estate stocks as safer than late cycle
industrials.

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).

16 July 2009