Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 August 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             10.7%    19.3%   -15.0%      -7.6%      53.8%     
Share price                 15.6%    16.1%   -13.9%     -10.3%      54.8%     
HGSC ex Inv Trust + AIM*    11.4%    17.7%    -8.5%     -23.8%       3.3%    

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):           331.83p           
Net asset value Capital only (debt at fair value):          327.58p           
Net asset value incl. Income (debt at par value):           335.92p**         
Net asset value incl. Income (debt at fair value):          331.67p**         
Share price:                                                271.75p           
Discount to Capital only NAV (debt at par value):           18.10%            
Discount to Capital only NAV (debt at fair value):          17.04%            
Net yield:                                                  1.86%             
Total assets:                                               £178.4m^           
Gearing incl. Income:                                       10.7%             
Ordinary shares in issue:                                   48,194,792^^      

**includes net revenue of 4.09p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Software & Computer Services                                               10.4
Financial Services                                                          9.5
Support Services                                                            8.0
Oil & Gas Producers                                                         7.9
Industrial Metals & Mining                                                  7.5
Industrial Engineering                                                      5.2
Travel & Leisure                                                            4.7
Technology Hardware & Equipment                                             4.3
General Retailers                                                           4.1
Pharmaceuticals & Biotechnology                                             3.7
                                                                           ----
Total                                                                      65.3
                                                                           ====

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Aveva Group                                                                    
BATM Advanced Communication                                                    
Brewin Dolphin Holdings                                                        
City of London Investment Group                                                
Dechra Pharmaceuticals                                                         
Domino Printing Sciences                                                       
Fidessa Group                                                                  
Rathbone Brothers                                                              
Rensburg Sheppards                                                             
Victrex                                                                        

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

During August, the NAV increased by 10.7% on a capital only basis; this was
slightly behind the benchmark which rose by 11.4%. The FTSE 100 Index rose by
6.5%.

The main contributor to relative underperformance was our holding in Fidessa,
the shares of which fell by 4.6% during the month following a rise of 11.0% in
July. In fact Fidessa announced strong interims during the month with organic,
constant currency sales and operating profits growth of 19% and 22%,
respectively. 81% of Fidessa's revenue is now of a recurring nature and it has
a strong balance sheet with £25 million of net cash. It is one of our favourite
core holdings and continues to have significant long term growth potential.

Relative performance was helped, for the second month, by our holding in
Emerald Energy which received a bid from Sinochem. We subsequently sold our
shares in the market, but have topped up our holding in Gulfsands, which is
Emerald Energy's 50% partner and operator in its key Khurbet East oilfield in
Syria.

In addition to selling the holding in Emerald Energy, we also sold our small
holding in Spring Group, which was bid for by Adecco, and our holding in
William Hill, where trading has not lived up to our hopes.

We bought a holding in Spirent following a good meeting with the Finance
Director. Spirent is a world leader in the testing of telecoms networks; its
current activity includes carrying out some important testing of next
generation networks for large US operators. The shares had been somewhat
overlooked and were trading at less than ten times current year earnings
despite having a balance sheet which includes net cash amounting to 20% of the
market capitalisation at the time of purchase. We believe there is good scope
for earnings upgrades at Spirent.

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).

25 September 2009