Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 August 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              1.0%      7.9%       29.1%     -6.2%      42.6%    
Share price                  0.4%      8.0%       28.4%     -8.8%      39.9%    
HGSC ex Inv Trust + AIM*    -0.3%      1.7%       11.1%    -22.9%      -7.4%    

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):           428.48p           
Net asset value Capital only (debt at fair value):          424.23p           
Net asset value incl. Income (debt at par value):           433.74p**         
Net asset value incl. Income (debt at fair value):          429.49p**         
Share price:                                                349.00p           
Discount to Capital only NAV (debt at par value):             18.5%             
Discount to Capital only NAV (debt at fair value):            17.7%             
Net yield:                                                     1.4%              
Total assets:                                               £230.5m^          
Gearing incl. Income:                                         10.8%             
Ordinary shares in issue:                                47,879,792^^      

**includes net revenue of 5.26p.
^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                                                    10.4
Industrial Metals & Mining                                             10.0
Financial Services                                                      8.0
Electronic & Electrical Equipment                                       7.7
Industrial Engineering                                                  7.1
Support Services                                                        6.6
Pharmaceuticals & Biotechnology                                         5.4
Technology Hardware & Equipment                                         5.2
Media                                                                   5.1
                                                                       ----
Total                                                                  76.3
                                                                       ====

Ten Largest Equity Investments (in alphabetical order)

Company

Abcam Group
Aveva Group
City of London Investment Group
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:

During August the Company's NAV per share rose by 1.0% in capital only terms;
this was ahead of the benchmark which fell by 0.3%. The FTSE 100 Index fell by
0.6%.

Our outperformance was approximately equally derived from stock selection and
asset allocation.

From a stock point of view our holding in Encore Oil was the strongest
contributor, rising 42% in absolute terms during the month. This was due to the
testing of the Catcher exploration discovery and the successful drilling of an
appraisal well on the Cladhan prospect. The Catcher find is increasingly
looking like one of the largest in the North Sea in recent years. The Cladhan
find is also looking highly attractive.

The most disappointing performer in the portfolio during the month was another
oil exploration company, Serica Energy. Serica drilled the Oates prospect in
the North Sea; hopes were high that this could be a success, but sadly this was
not to be the case.

From a sector point of view, our underweight positions in the travel and
leisure, and support services sectors contributed to outperformance.

Activity during the month was very limited. We sold our small holding in
Datacash following an agreed bid by MasterCard. We added a small holding in
recruitment group SThree following its recent share price weakness.

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 September 2010