Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC

INTERIM MANAGEMENT STATEMENT

For the Quarter Ended 31 July 2007

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         238.36p*
share                                              
                                                   
Ordinary share price                        221.75p
                                                   
(Discount)/Premium                           (7.0)%
                                                   
Gearing                                      142.0%
                                                   

PERFORMANCE - TOTAL RETURN

For the Quarter Ended 31 July 2007

NAV                                          (9.0)%
                                                   
Share Price                                  (5.4)%
                                                   
FTSE All Share Index                         (1.4)%
                                                   
FTSE Small-Cap Index                         (4.3)%
                                                   

*Based on NAV including current period revenue

MATERIAL DEVELOPMENTS AND TRANSACTIONS

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

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 31 July 2007

                                                           £m              % 
                                                                             
Listed and AIM traded investments                                            
                                                                             
Ordinary Shares                                          54.7          141.3 
                                                                             
Current assets/(liabilities)**                          (16.0)         (41.3)
                                                                             
Net assets                                               38.7          100.0 
                                                                             
Net asset value per Ordinary share                     238.36p               

** The Company has borrowings of £16 million, included in the above figures.

20 LARGEST HOLDINGS                         %   
                                                
As at 31 July 2007                              
                                                
1      Alumasc                             3.28 
                                                
2      Arbuthnot Banking                   2.71 
                                                
3      Braemar Shipping                    2.57 
                                                
4      Davenham                            2.52 
                                                
5      Personal Group                      2.51 
                                                
6      United Utilities                    2.46 
                                                
7      Chesnara                            2.40 
                                                
8      THB                                 2.27 
                                                
9      ATH Resources                       2.25 
                                                
10     Nichols                             2.24 
                                                
11     Acertec                             2.22 
                                                
12     TT Electronics                      2.14 
                                                
13     Highway Insurance                   2.12 
                                                
14     Brit Insurance                      2.08 
                                                
15     Dee Valley Group                    2.06 
                                                
16     Cattles                             2.03 
                                                
17     Alpha Airports                      2.01 
                                                
18     TDG                                 1.98 
                                                
19     Hilton Foods                        1.98 
                                                
20     Macfarlane                          1.89 
                                                
       Top 20                             45.72 
                                                
       Other 51 holdings                  54.28 
                                                
       Total                              100.00

Note: The Directors are not aware of any significant events or transactions
which have occurred between the date of the financial information and the date
of publication, which would have a material impact on the financial position of
the Company.

The net asset value is published on a weekly basis and other useful background
information on the Company including downloads of published documentation such
as previous Annual Reports and Monthly Fact Sheets can be found at
www.chelvertonam.com.

COMPANY INFORMATION

Launch date: 12 May 1999

Year end: 30 April

Results announced:

Interim - December 2007

Final - July 2008

Dividend payments: June, September, December and March.

A fourth interim dividend for the year ended 30 April 2007 of 4.00p per
Ordinary share was paid on 29 June 2007.

Price information is published in the Financial Times under 'Investment
Companies' and The Daily Telegraph under `Investment Trusts'.

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]