Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 September 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             7.7%     27.0%      10.2%       -3.8%     62.3%     
Share price                 4.5%     22.2%       6.2%      -11.4%     52.7%     
HGSC ex Inv Trust + AIM*    4.9%     24.3%      15.3%      -22.4%      5.2%    

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):           357.46p           
Net asset value Capital only (debt at fair value):          353.22p           
Net asset value incl. Income (debt at par value):           362.50p**         
Net asset value incl. Income (debt at fair value):          358.26p**         
Share price:                                                284.00p           
Discount to Capital only NAV (debt at par value):           -20.55%           
Discount to Capital only NAV (debt at fair value):          -19.60%           
Net yield:                                                    1.78%             
Total assets:                                               £192.5m^          
Gearing incl. Income:                                         10.3%             
Ordinary shares in issue:                                48,194,792^^      

**includes net revenue of 5.04p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                               % of Total Assets
                                                                               
Software & Computer Services                                          10.3
Financial Services                                                    10.1
Oil & Gas Producers                                                    8.3
Support Services                                                       8.2
Industrial Metals & Mining                                             7.6
Industrial Engineering                                                 5.3
Electronic & Electrical Equipment                                      4.7
Technology Hardware & Equipment                                        4.4
Pharmaceuticals & Biotechnology                                        4.1
General Retailers                                                      3.7
                                                                      ----
Total                                                                 66.7
                                                                      ====

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Abcam Group                                                                    
Aveva Group                                                                    
BATM Advanced Communications                                                    
Brewin Dolphin Holdings                                                        
City of London Investment Group                                                
Dechra Pharmaceuticals                                                         
Domino Printing Sciences                                                       
Fidessa group                                                                  
ITE Group                                                                      
Rensburg Sheppards                                                             
 
Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

September was a strong month with the NAV increasing by 7.7%, well ahead of the
benchmark which rose by 4.9% (both on a capital only basis). The FTSE 100 Index
rose by 4.6%.

The main contributors to relative outperformance were our holdings in ITE Group
and Hyder Consulting. ITE and Hyder both issued trading statements which
confirmed that trading has stabilised; both stocks are cheap with strong
balance sheets and emerging markets are key sales destinations.

Relative performance was hindered by a weak performance from our holding in
International FerroMetals. The ferrochrome price has been set for the next
quarter, but at a lower level than hoped for; the direction of pricing is
however firmly upwards, a trend we expect to be sustained which should allow
International FerroMetals to rebuild margins.

We sold holdings in Enterprise Inns, GKN, Taylor Wimpey and Eaga. The first
three were all acquired to gain exposure to large constituents of our benchmark
with high betas; although they have performed adequately in aggregate they have
never been high conviction holdings and we believe now is the time to sell low
conviction holdings. We sold the small holding in Eaga after an unconvincing
meeting with management; this company is largely exposed to UK Government
spending and we have been reducing holdings which are so exposed in recent
months.

We bought holdings in Hargreaves Lansdown, UTV Media, and Morgan Crucible; the
first two are former holdings. We regard the Hargreaves Lansdown model as high
quality, mass market and capable of further significant growth. We also had a
good meeting with UTV management. UTV has the ITV franchise in Northern
Ireland, which also reaches 80% of homes in the Republic of Ireland and owns
various radio stations including talkSPORT. We see recovery potential in TV
advertising revenues and continuing resilience from talkSPORT. Morgan Crucible
is a specialist materials business supplying international markets. We favour
such companies since we expect sterling to remain weak and we see greater
growth potential in the geographical markets served by many of the better
industrial companies such as Morgan Crucible, but also including larger
holdings such as Rotork, Spirax-Sarco and Victrex.

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).

26 October 2009