Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC

INTERIM MANAGEMENT STATEMENT

For the period from 1 February to 30 June 2008

INVESTMENT OBJECTIVE

The investment objective of the Company is to provide Ordinary shareholders
with a high income and opportunity for capital growth.

INVESTMENT POLICY

The Company's funds will be invested principally in companies with a market
capitalisation of up to £500 million; a maximum of 20 per cent. of the
Company's portfolio may be invested in companies without reference to their
market capitalisation at the discretion of the Investment Manager. The
Company's portfolio will comprise companies listed on the Official List and
companies admitted to trading on AIM. The Company will not invest in preference
shares, loan stock or notes, convertible securities or fixed interest
securities or any similar securities convertible into shares. The Company will
not invest in other investment trusts or unquoted companies.

KEY FACTS

Net asset value (NAV) per Ordinary         127.69p*
share                                              
                                                   
Ordinary share price                       117.00p 
                                                   
Discount                                   (8.37)% 
                                                   
Gearing                                       148% 
                                                   

PERFORMANCE - TOTAL RETURN

For the period from 1 February to 30 June 2008

NAV total return                         (10.49)%**
                                                   
Share Price total return                  (5.87)%  
                                                   
FTSE All Share Index (capital return)     (2.73)%  
                                                   
FTSE Small-Cap Index (capital return)     (6.91)%  
                                                   

* Based on NAV including current period revenue.

** Based on NAV including current period revenue, adding back dividends paid in
the period.

MATERIAL DEVELOPMENTSANDTRANSACTIONS

The Company confirms that on 11 July 2008 it repaid £3m of its loan facility
with Lloyds TSB Bank. The Company currently has £7m drawn down under the loan
facility and are compliant with its bank covenants.

The Company has renewed its overdraft facility with Lloyds TSB Bank for £3m
until 30 March 2009, which is currently undrawn.

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 30 June 2008

                                                           £m              % 
                                                                             
Listed and AIM traded investments                                            
                                                                             
Ordinary Shares                                          29.5         141.83 
                                                                             
Net liabilities***                                       (8.7)        (41.83)
                                                                             
Net assets                                               20.8         100.00 
                                                                             

*** The Company has borrowings of £10 million, included in the above figures.

20 LARGEST HOLDINGS                      %
                                          
As at 30 June 2008                        
                                          
  1   Braemar Shipping Services       4.29
                                          
  2   ATH Resources                   3.77
                                          
  3   Chesnara                        3.68
                                          
  4   Nichols                         3.65
                                          
  5   Arbuthnot Banking Group         3.16
                                          
  6   Alumasc Group                   3.05
                                          
  7   Dee Valley Group                3.01
                                          
  8   Macfarlane Group                2.97
                                          
  9   THB Group                       2.73
                                          
 10   TT Electronics                  2.73
                                          
 11   Portmeirion Group               2.63
                                          
 12   Highway Insurance Holdings      2.59
      Group                               
                                          
 13   Clarke (T)                      2.55
                                          
 14   Dawson Holdings                 2.54
                                          
 15   Hilton Food Group               2.46
                                          
 16   Victoria                        2.44
                                          
 17   Sanderson                       2.37
                                          
 18   Trifast                         2.22
                                          
 19   Jarvis Securities               2.17
                                          
 20   Low and Bonar                   2.06
                                          
      Balance held in 41 holdings    42.93
                                          
                                    100.00

COMPANY INFORMATION

Launch date: 12 May 1999               Results announced:                    
                                                                             
Year end: 30 April                     Half Year - December 2007             
                                                                             
                                       Final - July 2008                     

Dividend payments: June, September, December and March.

For the year ended 30 April 2008, three interim dividends of 3.20p each and a
fourth of 4.05p per Ordinary share were paid

Price information is published in the Financial Times under 'Investment
Companies'.

This interim management statement has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency rules.
It should not be relied upon by any other party or for any other purposes. In
addition, the views, information and data in this publication should not be
deemed as a financial promotion or recommendation.

Contact:

William van Heesewijk - Chelverton Asset Management Limited

Tel: [phone]