Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 June 2010 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             -1.1%    -5.2%      39.4%     -18.0%     41.4%    
Share price                  0.6%    -0.5%      39.8%     -19.6%     43.8%    
HGSC ex Inv Trust + AIM*    -2.7%    -7.2%      26.0%     -29.9%     -5.7%    

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):           392.53p           
Net asset value Capital only (debt at fair value):          388.27p           
Net asset value incl. Income (debt at par value):           397.08p**         
Net asset value incl. Income (debt at fair value):          392.83p**         
Share price:                                                325.00p           
Discount to Capital only NAV (debt at par value):           17.2%             
Discount to Capital only NAV (debt at fair value):          16.3%             
Net yield:                                                  1.5%              
Total assets:                                               £214.6m^          
Gearing incl. Income:                                       12.3%             
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 4.55p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.
 
Ten Largest Sector                                                         
Weightings                                                % of Total Assets
                                                                           
Software & Computer Services                                           10.4
Oil & Gas Producers                                                    10.3
Industrial Metals & Mining                                             10.1
Financial Services                                                      8.6
Electronic & Electrical Equipment                                       7.5
Support Services                                                        7.0
Industrial Engineering                                                  6.6
Pharmaceuticals & Biotechnology                                         5.1
Technology Hardware & Equipment                                         4.7
Media                                                                   4.6
                                                                       ----
Total                                                                  74.9
                                                                       ====
 
Ten Largest Equity Investments (in alphabetical order)

Company

Abcam Group
Aveva Group
Brewin Dolphin Holdings
Domino Printing Sciences
Fidessa group
Hutchison China Meditech
ITE Group
Rotork
Spirax-Sarco Engineering
Victrex

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

June was another difficult and volatile month for stockmarkets around the
world, following the trend we have seen since late April. The Company's NAV per
share fell 1.1% in capital only terms; this was better than the benchmark which
decreased by 2.7%. The FTSE 100 Index fell by 5.2%.

From a stock point of view, our holdings in Encore Oil and Domino Printing
Sciences contributed well to relative performance. Encore Oil drilled the
Catcher well in the North Sea and discovered light oil. A sidetrack has further
increased their confidence and we had a very upbeat meeting with management.
Domino Printing announced very strong interims, well ahead of expectations,
with equipment sales recovering sharply from the low levels of the first half
of the previous year. No one stock contributed especially poorly in relative
performance terms, although a few of our mining holdings had poor months in
absolute terms, notably Eastern Platinum and Western Coal.

From a sector point of view, our overweight position in electronics and
electricals also paid off as other companies in the sector performed well
following the bids for Chloride. Also, our underweight position in travel and
leisure companies at last started to pay off.

Activity during the month was limited. We sold holdings in Derwent London,
because it is not in our benchmark and we wanted to reduce sector exposure, RM,
which we believed to be exposed to cutbacks in education spending, and
Chloride, which has been subject to competitive bids from ABB and Emerson.
We added small holdings in Rockhopper, after it found oil in the North
Falklands, and Easydate, a consumer facing internet stock.

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).

15 July 2010