Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC All information is at31 December 2015 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*	1.1	3.8	17.1		63.1	77.1
Share price*	3.4	13.2	29.4		82.4	99.2
Numis ex Inv Companies + AIM	0.1	1.2	5.4		25.0	26.8
*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):				1050.07
Net asset value Capital only (debt at fair value):				1039.84
Net asset value incl. Income (debt at par value)**:				1062.85
Net asset value incl. Income (debt at fair value)**:				1052.62
Share price				995.00p
Discount to Cum Income NAV (debt at par value):				6.4%
Discount to Cum Income NAV (debt at fair value):				5.5%
Net yield^^^:				1.6%
Gross assets^:				£548.8
Gearing range as a % of net assets:				0-15%
Net gearing including income (debt at par):				7.0%
2015 Ongoing charges ratio^^				0.7%
2015 Ongoing charges ratio (including performance fees):				1.0%
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 12.78p ^ Includes current year revenue ^^ As reported in the Annual Financial Report for the year ended 28 February 2015, 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, which comprise the final dividend of 9.00 pence per share, (announced on 27 April 2015, gone ex-dividend on 21 May 2015) and the interim dividend of 7.00 pence per share (announced on 26 October 2015 and going ex-dividend on 5 November 2015) # Excludes 2,113,731 shares held in treasury.
Sector Weightings	% of portfolio
Industrials	25.3
Consumer Services	21.0
Financials	19.0
Technology	10.1
Health Care	8.6
Consumer Goods	8.4
Basic Materials	5.4
Oil & Gas	1.7
Telecommunications	0.5
	-----
Total	100.0
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Ten Largest Equity Investments
Company	% of portfolio
CVS Group	2.5
4imprint Group	2.1
Workspace Group	1.7
Savills	1.7
Avon Rubber	1.7
Rathbone Brothers	1.6
Topps Tiles	1.6
Dechra Pharmaceuticals	1.6
Restore	1.5
JD Sports	1.5
Commenting on the markets, Mike Prentis, representing the Investment Manager noted: During December the Company’s NAV per share rose by 1.1% on a capital only basis whilst our benchmark index rose by 0.1%; the FTSE 100 Index fell by 1.8%. Relative outperformance was mainly derived from good stock selection although sector allocation also contributed slightly during the month. The largest positive contributors to stock selection during the month were our holdings in CVS Group and Skyepharma. CVS Group announced the purchase of a further 11 veterinary surgeries, 2 pet crematoria and a significant veterinary products and services buying group. Earnings forecasts were raised by 3-6% helping the shares higher. Skyepharma put on an upbeat Capital Markets Day at the end of November and subsequently announced the partnering of its SKP-2076 product with Mundipharma, also a key partner for flutiform. The largest detractor from relative performance was Avon Rubber, although this was small with the shares down 7% on the month due to profit taking. Avon Rubber has been one of our more successful holdings in 2015. We added holdings in New River Retail, Photo-Me and Park Group, each about 0.5% of net assets with the holdings in New River and Park Group being acquired in placings. New River Retail is a leading property investor specialising in the UK retail sector.  The company has very experienced management who have been good at finding high yielding assets, and working these assets hard partly through redevelopment; this has led to good valuation uplifts. Photo-Me is well known for photo vending, operating in 17 countries. We see opportunities for good growth short term in Japan, where the requirement for Japanese people to have ‘My Number’ cards is leading to a big pickup in demand for ID photos. Amongst other areas, Photo-Me is having good success with its laundry offering. The attractiveness of Photo-Me really rests on the ability to innovate, operate internationally in many markets, and achieve very quick cash to cash returns. Park Group is a leading multi-retailer voucher and prepaid gift card business. Operating profits have grown steadily in recent years, and we expect this to continue. 15 January 2016 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.