Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 July 2011 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             -0.2%    -1.2%      46.7%      62.0%      76.3%     
Share price                  1.2%     2.7%      53.9%      71.3%      78.7%     
HGSC ex Inv Trust + AIM*    -1.0%    -3.7%      22.1%      28.4%       6.0%      

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 five year period the above index
has been blended to reflect this.

At month end                                                                  
Net asset value Capital only (debt at par value):           622.09p           
Net asset value Capital only (debt at fair value):          617.87p           
Net asset value incl. Income (debt at par value):           627.40p**         
Net asset value incl. Income (debt at fair value):          623.18p**         
Share price:                                                535.25p           
Discount to cum income NAV (debt at par value):             14.6%             
Discount to cum income NAV (debt at fair value):            14.1%             
Net yield:                                                  1.3%              
Total assets:                                               £329.8m^          
Gearing including income:                                   9.5%              
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 5.31p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.
 
Ten Largest Sector                                                         
Weightings                                  % of Total Assets
                                                                           
Software & Computer Services                              9.2
Industrial Metals & Mining                                9.2
Support Services                                          8.7
Electronic & Electrical Equipment                         8.3
Financial Services                                        8.1
Oil & Gas Producers                                       6.6
Media                                                     5.9
Industrial Engineering                                    5.3
Pharmaceuticals & Biotechnology                           5.2
Travel & Leisure                                          4.9
                                                         ----
Total                                                    71.4
                                                         ====

 
Ten Largest Equity Investments (in alphabetical order)

Company

Alternative Networks
Aveva Group
Bellway
City of London Investment Group
Fidessa group
Hargreaves Services
Hutchison China Meditech
Oxford Instruments
Senior
Victrex

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

During July, the Company's NAV per share fell by 0.2% on a capital only basis
(debt at par value); the benchmark index fell by 1.0%. The FTSE 100 Index fell
by 2.2%.

No one stock contributed more than 0.25% to relative performance during the
month; the best performer for the second consecutive month was Oxford
Instruments. Equally, no one stock contributed negatively more than 0.25% to
relative performance.

We sold a few small holdings and trimmed a few others where we felt valuations
were looking rather full or our exposure too great. There were no significant
new investments during the month. We continue to adopt a cautious approach
although we remain about 9% geared. Newsflow from our holdings has, with a few
exceptions, proved to be good, as have company meetings.

In early August, stockmarkets have been very weak, driven down by concerns over
high debt levels in Italy, Spain and the US, and weaker than expected GDP
growth in the US. Our portfolio has been hit hard by this correction; our
absolute and relative performance in early August has been poor. Even though
most of our holdings are trading well, some having reported in recent weeks,
their share prices have seen sustained profit taking in many cases. Our
approach has continued to be to try to focus our portfolio more on the holdings
which we regard as the highest quality, and to reduce or sell holdings where
our conviction is less strong.


15 August 2011

ENDS

Latest information is available by typing www.blackrock.co.uk/brsc on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.