Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 31 DECEMBER 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               -0.5%     2.1%    -11.3%     137.1%     21.6%
Share price                    0.8%    -3.0%    -14.4%     135.5%     15.0%
HGSC ex Inv Trust + AIM*      -1.9%     0.2%    -15.0%      71.9%    -23.2%

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 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):     525.96p
Net asset value Capital only (debt at fair value):    521.75p
Net asset value incl. Income (debt at par value):     532.79p**
Net asset value incl. Income (debt at fair value):    528.58p**
Share price:                                          427.38p
Discount to cum income NAV (debt at par value):         19.8%
Discount to cum income NAV (debt at fair value):        19.1%
Net yield:                                               1.7%
Total assets:                                         £272.3m^
Gearing incl. Income (debt at fair value):               7.1%
Ordinary shares in issue:                          47,879,792^^

**includes net revenue of 6.83p
^includes current year revenue
^^excludes 2,113,731 shares held in treasury

Ten Largest Sector
Weightings                         % of total assets

Support Services                                 9.8
Software & Computer Services                     9.3
Electronic & Electrical Equipment                8.4
Oil & Gas Producers                              7.5
Industrial Metals & Mining                       6.6
Financial Services                               6.1
Household Goods & Home Construction              5.9
Media                                            5.6
Pharmaceuticals & Biotechnology                  4.7
Industrial Engineering                           4.7
                                                ----
Total                                           68.6
                                                ====

Ten Largest Equity Investments (in alphabetical order)

Company

Alternative Networks
Aveva Group
Bellway
Fenner
Fidessa group
Hargreaves Services
ITE Group
Oxford Instruments
Senior
Spirax-Sarco Engineering

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

During December the NAV on a capital only basis fell by 0.5%; the benchmark
fell by 1.9%. The FTSE 100 Index fell by 1.2% during the month.

Outperformance was entirely derived from stock selection, with a slight
negative contribution from sector allocation.

From a stock selection point of view our biggest positive contributor was
Collins Stewart, which announced a takeover from Canaccord at a significant
premium. Another holding, Jacques Vert, was also taken over during the month at
a good premium. No holding significantly detracted from relative performance.

Other than the holdings mentioned above, newsflow from the portfolio was
generally good during December.

Activity in the month was limited although we decided to re-introduce Hunting
into the portfolio. It has made several acquisitions recently and these add
significantly to its product range.

18 January 2012

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.