Portfolio Update

SMALL COMPANIES DIVIDEND TRUST PLC

In accordance with UKLA Listing Rule 21.20(l)(ii), the following list
represents the Company's 10 largest investments as at 31 July 2004 and where
appropriate, any investment with a value greater than 5% of the Company's gross
assets:

Name of company                                       Class of share       
                                                                           
DEE VALLEY                                            ORDINARY             
                                                                           
SAVILLS                                               ORDINARY             
                                                                           
HITACHI CAPITAL (UK)                                  ORDINARY             
                                                                           
PENDRAGON                                             ORDINARY             
                                                                           
MORGAN SINDALL                                        ORDINARY             
                                                                           
BROADCASTLE                                           ORDINARY             
                                                                           
HILL & SMITH HLDGS                                    ORDINARY             
                                                                           
LOOKERS                                               ORDINARY             
                                                                           
NORTHUMBRIAN WATER                                    ORDINARY             
                                                                           
WATERMAN GROUP                                        ORDINARY