Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 July 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             8.1%     -1.7%      41.4%     -11.1%     46.2%    
Share price                 7.0%     -2.6%      48.0%     -12.4%     46.0%    
HGSC ex Inv Trust + AIM*    4.9%     -5.4%      24.2%     -25.1%     -4.2%    

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):           424.15p           
Net asset value Capital only (debt at fair value):          419.90p           
Net asset value incl. Income (debt at par value):           429.07p**         
Net asset value incl. Income (debt at fair value):          424.82p**         
Share price:                                                347.75p           
Discount to Capital only NAV (debt at par value):           18.0%             
Discount to Capital only NAV (debt at fair value):          17.2%             
Net yield:                                                  1.4%              
Total assets:                                               £228.7m^          
Gearing incl. Income:                                       11.1%             
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 4.92p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.
 
Ten Largest Sector                                                         
Weightings                                                % of Total Assets
                                                                           
Software & Computer Services                                           10.8
Oil & Gas Producers                                                    10.5
Industrial Metals & Mining                                             10.2
Financial Services                                                      8.1
Electronic & Electrical Equipment                                       7.7
Industrial Engineering                                                  7.0
Support Services                                                        6.8
Pharmaceuticals & Biotechnology                                         5.3
Technology Hardware & Equipment                                         4.7
Media                                                                   3.5
                                                                       ----
Total                                                                  74.6
                                                                       ====

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:

July was a good month, helping to make up for the weakness experienced in June.
The Company's NAV per share rose by 8.1% in capital only terms; this was well
ahead of the benchmark which rose by 4.9%. The FTSE100 rose by 6.9%.

From a stock point of view our holdings in Abcam, Blinkx and Aveva Group
contributed well to relative performance. Abcam's half year end trading update
indicated that profits before tax were likely to be 9% ahead of market
expectations. Blinkx, like Abcam, is heavily focused on the internet and made a
number of positive announcements about tie ups with Samsung, BBC World News and
others. Aveva also had a trading update which was positive and taken well by
the market.

No one holding had a significant negative impact on relative performance during
the month. However, not holding Dana Petroleum, a significant benchmark
constituent, proved painful in relative terms as it entered bid talks with
KNOC.

From a sector point of view, our overweight position in the industrial
engineering and electronics & electrical equipment sectors paid off again as
various companies in the sectors issued good trading statements. Our
underweight position in travel and leisure companies was less successful,
although it had helped us in June. Gearing was also a positive contributor
during the month.

Activity during the month was very limited.

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).

20 August 2010