Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC

INTERIM MANAGEMENT STATEMENT

For the period from 1 May to 31 August 2010

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 traded on the
London Stock Exchange's Main Market 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           92.05p
share                                              
                                                   
Ordinary share price                         83.00p
                                                   
Discount                                      9.83%
                                                   
Gearing                                        130%
                                                   

PERFORMANCE - TOTAL RETURN

For the period from 1 May to 31 August 2010

NAV total return                             (2.71)
                                                   
Share Price total return                     (0.29)
                                                   
FTSE All Share Index (capital return)        (5.82)
                                                   
FTSE Small-Cap Index (capital return)        (5.88)
                                                   

* Based on NAV including current period revenue.

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

MATERIAL DEVELOPMENTSANDTRANSACTIONS

There have been no material events or transactions in the period.

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 31 August 2010

                                                              £m           % 
                                                                             
Listed and AIM traded investments:                                           
                                                                             
Ordinary Shares                                             19.41       129.8
                                                                             
Current assets                                               0.08         0.5
                                                                             
Net liabilities***                                         (4.53)      (30.3)
                                                                             
Net assets                                                  14.96       100.0

*** The Company's borrowings of £4 million and the fair value of interest rate
SWAP is included in the above figures.

20 LARGEST HOLDINGS                      %
                                          
As at 31 August 2010                      
                                          
  1   Macfarlane Group                4.10
                                          
  2   Portmeirion Group               3.97
                                          
  3   Sinclair (W) Holdings           3.62
                                          
  4   S&U                             3.48
                                          
  5   Clarke (T)                      3.42
                                          
  6   Victoria                        3.42
                                          
  7   Zotefoams                       3.16
                                          
  8   Cineworld Group                 2.96
                                          
  9   Chesnara                        2.94
                                          
 10   Alumasc Group                   2.81
                                          
 11   Stadium Group                   2.74
                                          
 12   Consort Medical                 2.67
                                          
 13   Arbuthnot Banking               2.50
                                          
 14   Trifast                         2.48
                                          
 15   Marshalls                       2.40
                                          
 16   Sanderson Group                 2.27
                                          
 17   Hilton Food Group               2.13
                                          
 18   Abbey Protection                2.11
                                          
 19   Avesco Group                    2.10
                                          
 20   Office2Office                   1.98
                                          
                                     57.26
                                          
      Balance held in 41 holdings    42.74
                                          
                                    100.00

COMPANY INFORMATION

Launch date: 12 May 1999               Results announced:                    
                                                                             
Year end: 30 April                     Half Year - December 2010             
                                                                             
                                       Final - July 2011                     

Dividend payments: June, September, December and March.

For the year ended 30 April 2010, three interim dividends of 1.25p each and a
fourth of 2.25p per Ordinary share were paid. The Board have also declared a
first interim dividend of 1.30p per Ordinary share to be paid on 4 October 2010
to the holders of Ordinary shares on the register at 10 September 2010, with an
ex-dividend date of 8 September 2010.

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]