Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 31 December 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*               1.9%     1.5%      -2.8%      70.5%     143.7%
Share price*                   0.5%    -1.5%     -16.0%      79.9%     171.3%
Numisex Inv Companies + AIM    0.1%    -1.6%      -7.1%      41.6%      54.7%
 
*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):     896.53p
Net asset value Capital only (debt at fair value):    889.09p
Net asset value incl. Income (debt at par value)**:   906.17p
Net asset value incl. Income (debt at fair value)**:  898.74p
Share price:                                          769.00p
Discount to Cum Income NAV (debt at par value):         15.1%
Discount to Cum Income NAV (debt at fair value):        14.4%
Net yield^^^:                                            1.7%
Gross assets^:                                        £473.8m
Gearing range as a % of net assets:                     0-15%
Net gearing including income (debt at par):              9.4%
2014 Ongoing charges ratio^^:                            0.7%
2014 Ongoing charges ratio (including
performance fees):                                       1.0%
Ordinary shares in issue#:                         47,879,792

**includes net revenue of 9.64p
^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 5.50 pence per share, (announced on 24
October 2014, gone ex-dividend on 6 November 2014).
#excludes 2,113,731 shares held in treasury.

Sector Weightings                     % of portfolio

Industrials                                     27.7
Consumer Services                               18.7
Financials                                      17.4
Technology                                       8.9
Basic Materials                                  8.5
Health Care                                      8.1
Consumer Goods                                   7.4
Oil & Gas                                        1.8
Telecommunications                               1.5
                                               -----
Total                                          100.0
                                               =====

Ten Largest Equity Investments

Company                                    % of portfolio

Workspace Group                                   1.9
Senior Engineering                                1.8
Avon Rubber                                       1.8
Tyman                                             1.7
Polar Capital Holdings                            1.6
Headlam Group                                     1.6
Bodycote                                          1.6
Rathbone Brothers                                 1.5
Lookers                                           1.5
CVS Group                                         1.5
 
Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During December the Company's NAV per share rose by 1.9% on a capital only
basis whilst the benchmark index rose by 0.1%; the FTSE 100 Index fell by 2.3%.

Portfolio outperformance was helped by a number of stocks including Victrex,
Consort Medical, Incadea, Northgate and CVS Group. Victrex reported good final
results with earnings per share up 9%, partly held back by currency headwinds.
An excellent cash generator, Victrex also announced a special dividend. Most
importantly their confidence about the outlook remains strong and they see
several large new opportunities for Victrex PEEK, a high performing polymer,
over the coming years. Consort Medical's interim results showed good profit
growth and their shares partly recovered from the recent sell off, as investors
reflected on the Company's highly predictable revenues and good pipeline of
opportunities. Incadea, a small but interesting software company, attracted a
bid from Dealertrack at a 59% premium. Northgate announced strong interim
results with a 56% increase in earnings per share. Like Victrex management,
Northgate's management were on confident form when we met with them. CVS Group
announced at their AGM that like for like sales had grown by 8.7% in the prior
4 month period, an excellent performance.

The largest detractors from relative performance were Polar Capital Holdings,
Northbridge Industrial and Faroe Petroleum. Polar Capital Holdings announced
good interim results with earnings per share up by 22% but pointed to higher
costs and their exposure to the Japanese equity market. We see this as a
well-run business facing the same pressures as many similar businesses but also
having some great opportunities. We also see some attractions in exposure to
the relatively lowly valued Japanese equity market. Nevertheless, the shares
slipped on the news of higher costs. Northbridge Industrial mainly supplies
loadbanks to the power sector but also tools to the oil sector. This exposure
to the oil sector has unnerved the market given the fall in the oil price.
Northbridge shares fell by 28% during the month. We regard Northbridge
management highly and expect them to cope with the greater oil-related
challenges they face, whilst making the most of the opportunities in the power
sector. Faroe Petroleum also suffered from the fall in the oil price. It is
well financed with significant cash balances and a good level of oil production
from the North Sea. We have been underweight both oil producers and oil service
companies for some time, and this proved beneficial in December. 

The results and other newsflow we have seen from our portfolio in recent months
have generally been very encouraging.

Activity in the portfolio during the month was fairly limited especially in our
larger positions. We did add to a few smaller holdings and continued to build a
few new positions in small companies; this is a gradual process with liquidity
still quite thin at the bottom end of the market.

12 January 2015

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.