Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 31 DECEMBER 2012 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*               3.4%     5.8%     22.4%      75.0%     55.0%
Share price*                   1.3%     6.1%     27.6%      92.4%     72.9%
Numis ex Inv Companies + AIM*  3.0%     4.6%     19.4%      30.5%      4.0%

Sources:  BlackRock and Datastream

At month end
Net asset value Capital only (debt at par value):     643.63p
Net asset value Capital only (debt at fair value):    639.35p
Net asset value incl. Income (debt at par value):     650.62p**
Net asset value incl. Income (debt at fair value):    646.34p**
Share price:                                          545.50p
Discount to Cum Income NAV (debt at par value):         16.2%
Discount to Cum Income NAV (debt at fair value):        15.6%
Net yield:                                               1.7%
Total assets^:                                        £341.4m
Net gearing incl. Income (debt at fair value):          10.3%
2012 Total Expense Ratio ("TER")^^:                      0.7%
Ordinary shares in issue#:                         47,879,792
 
*performance calculations based on a capital only NAV with debt at par, without
income reinvested. Share price performance calculations exclude income
reinvestment.
**includes net revenue of 6.99p
^includes current year revenue
^^As reported in the Annual Financial Statements for the year ended
29 February 2012, the TER is calculated as a percentage of net assets and using
operating expenses, excluding performance fees, finance costs and taxation.
#excludes 2,113,731 shares held in treasury

Ten Largest Sector
Weightings                         % of total assets

Support Services                                 9.2
Software & Computer Services                     9.0
General Retailers                                6.7
Electronic & Electrical Equipment                6.4
Financial Services                               6.4
Oil & Gas Producers                              6.3
Chemicals                                        5.7
Media                                            5.3
Household Goods & Home Construction              5.3
Pharmaceuticals & Biotechnology                  5.3
                                                ----
Total                                           65.6
                                                ====

Ten Largest Equity Investments (in alphabetical order)
Company

Ashtead
Aveva Group
Bellway
Booker Group
Howden Joinery
ITE Group  
Oxford Instruments
Senior
Victrex
Workspace
 
Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During December the Company's NAV per share increased by 3.4% on a capital only
basis whilst the benchmark index increased by 3.0%. The FTSE 100 Index
increased by 0.5%.

The relative contributions from stock selection and gearing were both positive
during the month. The contribution from sector allocation was slightly
negative, although no one sector had a significant impact.

Positive contribution from stock selection was helped by ITE Group, iGas Energy
and Endace. ITE published final results in line with expectations; the tone of
the statement and outlook were positive spurring on the shares. iGas benefitted
from the decision to allow fraccing of shale rocks in the UK. It has
significant interests in Northern England as well as onshore oil producing
assets; the shares rose by 92% during the month. Endace attracted a bid and the
shares rose by 57% during the month. We expect to see more bids during 2013.

The most significant disappointment during the month, although the cost to
relative performance was only 19 basis points, was the discovery of a fraud at
the Belgian operations of Hargreaves Services. Coming on top of the
disappointment at the Maltby deep coal mine the shares had another fall - we
have now completed the sale of our holding.

We added a small holding in Monitise, taking part in a placing. Monitise
operates a mobile banking platform providing realtime information and payment
services; it operates in many countries and has been growing rapidly. We
continued to sell a number of small holdings where we see limited near term
upside.

The general mood of company managements we met during the month was of quiet
confidence. The macro-economic newsflow does seem to be improving, on balance.
Whilst debt reduction in the Western world will be a long drawn out and
delicate exercise, there does seem to be a growing confidence in stock markets.

15 January 2013

ENDS

Latest information is available by typing www.blackrock.co.uk/brscon 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.