Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 30 June 2008 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             -6.8%      3.1%      -14.3%     47.9%     132.2%    
                                                                               
Share price                 -8.3%      6.3%      -16.6%     49.1%     142.0%    
                                                                               
HGSC ex Inv Trust + AIM*    -8.3%     -6.2%      -24.3%      1.8%      38.0%   

Sources: BlackRock and Datastream

*With effect from 1 September 2007 the Hoare Govett Smaller Companies plus AIM
(ex Investment companies) Index replaced the FTSE SmallCap Index (ex Investment
Companies) as the Company's benchmark. For the one year, three year and five
year periods above the index has been blended to reflect this.

At month end                                                                  
                                                                              
Net asset value Capital only (debt at par value):           410.54p           
                                                                              
Net asset value Capital only (debt at fair value):          407.14p           
                                                                              
Net asset value incl Income (debt at par value):            413.88p*          
                                                                              
Net asset value incl Income (debt at fair value):           410.47p*          
                                                                              
Share price:                                                337.00p           
                                                                              
Discount to Capital only NAV (debt at par value):           17.9%             
                                                                              
Discount to Capital only NAV (debt at fair value):          17.2%             
                                                                              
Net yield:                                                  1.5%              
                                                                              
Total assets:                                               £218.1m^          
                                                                              
Gearing:                                                    8.7%              
                                                                              
Ordinary shares in issue^:                                  48,509,708**      

*includes net revenue of 3.34p.

**excludes 1,483,815 shares held in treasury.
^includes current year revenue.
 

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Support Services                                                           14.3
                                                                               
Software & Computer Services                                               12.3
                                                                               
Industrial Metals & Mining                                                 10.0
                                                                               
Oil & Gas Producers                                                         8.8
                                                                               
Financial Services                                                          8.1
                                                                               
Industrial Engineering                                                      7.5
                                                                               
Aerospace & Defence                                                         6.8
                                                                               
Electronic & Electrical Equipment                                           5.8
                                                                               
Media                                                                       3.9
                                                                               
Health care equipment and services                                          3.8
                                                                               
                                                                           ----
                                                                               
Total                                                                      79.9
                                                                           ====

 

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Albidon                                                                        
                                                                               
Aveva Group                                                                    
                                                                               
Chemring                                                                       
                                                                               
Connaught                                                                      
                                                                               
Dechra Pharmaceuticals                                                         
                                                                               
ITE Group                                                                      
                                                                               
Rathbone Brothers                                                              
                                                                               
Spirax-Sarco Engineering                                                       
                                                                               
Ultra Electronic Holdings                                                      
                                                                               
Victrex                                                                        
                                                                               
                                                                               

 

Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During June the Company's NAV fell by 6.8%. The benchmark index fell by 8.3%
whilst the FTSE 100 Index fell by 7.1%.

In relative terms, the best stock contributions came from BATM Advanced
Communications, Emerald Energy and Hampson Industries. BATM, a supplier of
equipment used to control and switch traffic using IP networks, produced a
trading update indicating that trading continues to be very strong and revenues
and operating profits are expected to be significantly above prior expectations
for 2008. Emerald Energy's drilling updates confirmed that it gets closer to
production of oil in Syria, due during 2008. Hampson announced strong earnings
growth and a number of new contracts.

The worst relative performers during the month were Gooch & Housego, London
Capital, Domino Printing Sciences and ROC Oil. Gooch & Housego's results were
below expectations, although management argue they have re-organised the group
on a much more cohesive, controlled basis to provide the platform for future
growth. London Capital's shares were weak on no news; in early July they have
issued a very positive update. Domino Printing produced good results,
management were confident on meeting, but the market had anticipated the
positive news. ROC Oil announced an acquisition which took the market by
surprise and seems to be a sideshow relative to the potential it has with its
drilling in Angola.

New holdings were ATH Resources and Spectris. ATH operates opencast coal mines
and land remediation projects. It is the third largest producer of coal in the
UK, providing coal principally to the electricity supply industry and also the
industrial and house coal markets. Spectris is a leading supplier of precision
instrumentation and controls. We visited some of its operations in China in May
and were impressed by the quality of its people and operations. We also added
significantly to our holding in Caretech during June, taking part in an equity
placing. Caretech own and operate residential centres for individuals requiring
long term care.

As pessimism about the UK real estate and housing market has continued to grow,
we sold our holdings in Grainger and Great Portland Estates.

Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).

25 July 2008