Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 30 June 2014 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*              -2.3%    -6.0%      24.1%      44.5%     220.0%
Share price*                  -2.7%    -8.5%      24.1%      50.0%     241.1%
Numis ex Inv Companies + AIM  -2.0%    -4.7%      16.5%      25.6%     104.7%

*performance calculations based on a capital only NAV with debt at par, without
income reinvested. Share price performance calculations exclude income
reinvestment.

Sources:  BlackRock and Datastream

At month end
Net asset value Capital only (debt at par value):     900.86p
Net asset value Capital only (debt at fair value):    893.41p
Net asset value incl. Income (debt at par value)**:   908.32p
Net asset value incl. Income (debt at fair value)**:  900.87p
Share price:                                          793.00p
Discount to Cum Income NAV (debt at par value):         12.7%
Discount to Cum Income NAV (debt at fair value):        12.0%
Net yield^^^:                                            1.5%
Gross assets^:                                        £474.8m
Gearing range as a % of total assets:                   0-15%
Net gearing including income (debt at par):              9.4%
2014 Ongoing charges ratio^^:                            0.7%
Ordinary shares in issue#:                         47,879,792
 
**includes net revenue of 7.46p
^includes current year revenue
^^ As reported in the Annual Financial Report for the year ended
28 February 2014, the ongoing charges ratio is calculated as a percentage of
net assets and using operating expenses, excluding performance fees, finance
costs and taxation.
^^^Yield calculations are based on dividends announced in the last 12 months as
at the date of release of this announcement, and comprise the final dividend of
7.40 pence per share (announced on 25 April 2014 and gone ex-dividend on 14 May
2014) and the interim dividend of 4.60 pence per share, (announced on 24
October 2013, going ex-dividend on 30 October 2013).
#excludes 2,113,731 shares held in treasury.

Sector Weightings                      % of portfolio

Industrials                                     29.4
Financials                                      17.2
Consumer Services                               16.9
Technology                                      10.2
Basic Materials                                  7.7
Health Care                                      6.8
Consumer Goods                                   6.1
Oil & Gas                                        3.9
Telecommunications                               1.8
                                               -----
Total                                          100.0
                                               =====

Ten Largest Equity Investments

Company                                    Total Market Value %

Workspace Group                                   1.8
Polar Capital Holdings                            1.7
Optimal Payments                                  1.7
Senior Engineering                                1.6
Avon Rubber                                       1.6
Headlam Group                                     1.4
Elementis                                         1.3
Bodycote                                          1.2
Clarkson                                          1.2
St Modwen Properties                              1.2

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

During June the Company's NAV per share fell by 2.3% on a capital only basis
whilst the benchmark index fell by 2.0%; by contrast the FTSE 100 Index fell by
1.5% (all calculations on a capital only basis without income reinvested).

Slight underperformance was driven by stock selection and gearing; sector
allocation was slightly positive.

The only individual stock which materially impacted on relative performance
during the month was Xaar. Following a very strong operational and share price
performance in 2013, Xaar had already indicated that 2014 would likely be a
dull year, and the shares had given up some of the gains of 2013. In June Xaar
gave a further update which indicated 2014 revenues are expected to be 3% lower
than in 2013, and that it had seen a higher level of competition in the
ceramics market with some price pressure. New product launches are still a way
off, but indications from potential customers to date has been encouraging. The
shares fell a further 39% during the month and have more than halved from their
highs at the turn of the calendar year. We decided to reduce our holding for
now, taking it down to about 0.6% of the portfolio.

We reduced further our exposure to the UK housing market, an exposure which has
served us very well over the last 18 months or so. We completed the disposal of
our holdings in Bellway and Countrywide.

We used the proceeds to start a holding in Hellermann Tyton, a global supplier
of cable fasteners mainly to the automotive market. We see the company doing
well on the back of increasing car production, especially in Europe. Its
products are designed in for car model life spans, so revenues are relatively
predictable; and the shares are attractively valued.

We have continued to be wary of most IPOs. However we did make an investment in
FDM during the month. FDM Group is an international professional services
provider specialising in the recruitment, training and deployment of its own
permanent IT Consultants. FDM employs high-calibre graduates, typically with
science, technology, engineering and maths degrees, as well as ex-military
personnel, providing them with high quality training to qualify them to become
FDM Consultants. On completion of their training, FDM Consultants are deployed
on client sites, as full-time employees of the Group. FDM's track record is
good and the shares were offered at a sensible price at IPO.

16 July 2014

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.