Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 September 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             -5.6%    -17.4%     4.2%      58.7%     38.5%     
Share price                 -7.5%    -16.7%     9.5%      64.6%     37.4%     
HGSC ex Inv Trust + AIM*    -6.4%    -16.2%    -4.5%      26.7%    -14.8%    

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):           514.94p           
Net asset value Capital only (debt at fair value):          510.72p           
Net asset value incl. Income (debt at par value):           522.12p**         
Net asset value incl. Income (debt at fair value):          517.91p**         
Share price:                                                440.38p           
Discount to Capital only NAV (debt at par value):           14.5%             
Discount to Capital only NAV (debt at fair value):          13.8%             
Net yield:                                                  1.6%              
Total assets:                                               £265.2m^          
Gearing incl. income:                                       6.5%              
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 7.18p
^includes current year revenue
^^excludes 2,113,731 shares held in treasury
 

Ten Largest Sector                                                         
Weightings                                                % of Total Assets
                                                                           
Software & Computer Services                                            9.6
Support Services                                                        8.6
Electronic & Electrical Equipment                                       8.0
Industrial Metals & Mining                                              7.2
Financial Services                                                      7.1
Media                                                                   5.9
Pharmaceuticals & Biotechnology                                         5.7
Oil & Gas Producers                                                     5.5
General Retailers                                                       5.4
Household Goods & Home Construction                                     5.3
                                                                       ----
Total                                                                  68.3
                                                                       ====

Ten Largest Equity Investments (in alphabetical order)

Company

Alternative Networks
Aveva Group
Bellway
Blinkx
City of London Investment Group
Fidessa group
Hargreaves Services
Immunodiagnostic Systems
Oxford Instruments
Senior

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

September was another difficult month for markets and the Company. The NAV on a
capital only basis fell 5.6%, slightly better than the benchmark which fell by
6.4%. Markets continue to be disturbed by the scale of the financial problems
facing Greece and Italy in particular, the knock on effects on the European
banking system, and the apparent lack of political leadership to address these
issues quickly and decisively.

Newsflow from the portfolio was generally good during the month, with strong
trading updates from Booker and Ashtead in particular, but good statements from
a range of other holdings including Oxford Instruments, Abcam, Dechra
Pharmaceuticals, Brooks Macdonald, Berkeley Group, Fenner, Advanced Medical
Solutions, BrainJuicer, Hargreaves Services, Galliford Try and Ricardo. These
significantly outnumbered the disappointing statements which came from Domino
Printing Sciences and Aurelian Oil & Gas. However, with markets nervous, the
disappointing news was punished whereas the good news was largely ignored.
Despite the good news, we have seen the start of a wave of earnings downgrades
as analysts assume that market forecasts are now too high for many companies.

Stock selection was strongly positive. The largest positive stock contributor
to relative outperformance was Blinkx. Blinkx shares rose by 29% during the
month, helped by positive coverage from two large US brokers and suggestions
that Blinkx trading is strong. Our worst negative contributor, which cost
0.23%, was Aurelian Oil & Gas who tested a well in Poland and produced less gas
on test than had been expected.

Whilst we reduced gearing further during the month, the fact that we were
geared impacted relative performance by about 0.4%. Sector allocation was also
marginally negative; in particular our strong overweight positions in the major
industrials sectors, electronics, engineering and chemicals, all cost us as
overweight positions were reduced. By contrast, our overweight positions in the
more defensive pharmaceuticals and health care equipment sectors helped
relative performance.

We sold a number of higher risk smaller holdings, some in the resources sector,
and other holdings where our conviction was not high enough for nervous
markets. The proceeds were generally used to reduce our borrowing.

We retain our preference for software, electronics, engineering and health care
companies, and remain underweight the main UK domestic sectors: retailers,
leisure and food manufacturing. The resources sectors remain a significant and
highly volatile part of our benchmark; we are significantly underweight oil &
gas producers and have moved to a neutral position in mining companies. Our aim
in recent months has been to focus more on our core holdings.


19 October 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.