Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 May 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             6.0%     8.0%       -9.6%      67.6%     162.9%    
                                                                               
Share price                 9.4%     8.1%       -11.6%     76.0%     187.7%    
                                                                               
HGSC ex Inv Trust + AIM*    1.1%     -1.5%      -21.5%     14.3%     55.8%     

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 (debt at par value):                440.49p          
                                                                     
Net asset value (debt at fair value):               437.19p          
                                                                     
Net asset value incl. Income (debt at par value)    442.95p*         
                                                                     
Net asset value incl. Income (debt at fair value)   439.65p*         
                                                                     
Share price:                                        367.50p          
                                                                     
Discount to Capital only NAV (debt at par value):   16.6%            
                                                                     
Discount to Capital only NAV (debt at fair value):  15.9%            
                                                                     
Net yield:                                          1.3%             
                                                                     
Total assets:                                       £230.0m^         
                                                                     
Gearing:                                            6.4%             
                                                                     
Ordinary shares in issue^:                          48,509,708       

(* includes net revenue of 2.46p)

(^ includes current year revenue)

 

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Support Services                                                           14.0
                                                                               
Software & Computer Services                                               11.9
                                                                               
Industrial Metals & Mining                                                  9.6
                                                                               
Oil & Gas Producers                                                         9.0
                                                                               
Industrial Engineering                                                      8.7
                                                                               
Financial Services                                                          7.9
                                                                               
Aerospace & Defence                                                         6.3
                                                                               
Electronic & Electrical Equipment                                           4.6
                                                                               
Media                                                                       3.7
                                                                               
Health Care Equipment & Services                                            3.6
                                                                               
Total                                                                      79.3

 

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Albidon                                                                        
                                                                               
Aveva Group                                                                    
                                                                               
Chloride Group                                                                 
                                                                               
Connaught                                                                      
                                                                               
Dechra Pharmaceuticals                                                         
                                                                               
Hill & Smith Holdings                                                          
                                                                               
ITE Group                                                                      
                                                                               
Rathbone Brothers                                                              
                                                                               
Spirax-Sarco Engineering                                                       
                                                                               
Victrex                                                                        
                                                                               
                                                                               

 

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

During May the Company's NAV rose by 6.0%. The benchmark index rose by 1.1%,
whilst the FTSE100 index fell by 0.5%.

In relative terms, the best stock contributions came from Dechra
Pharmaceuticals, Chloride Group, ITE Group, Albidon, Aveva Group and Nighthawk
Energy. Dechra shares are very defensive, given that health-related spending on
dogs, cats and other pets is generally regarded as non-discretionary. FDA
approval for Vetoryl should come through this year. Chloride shares were firm
on hopes of a competitive bid situation developing. In early June bid talks
were terminated; underlying trading remains strong. ITE produced strong year
end results; a significant part of its revenues are Euro denominated, and this
is leading to earnings upgrades. Albidon continues to move towards production
from its Munali nickel mine. Aveva again produced strong results; management
remain very confident about prospects. Nighthawk announced further positive
drilling success.

The worst performer during the month was Detica, although this cost us only 13
basis points in relative terms. In fact Detica has just produced good full year
results and management remain confident; the shares gave up some ground after a
good run.

New holdings included our first investment in an IPO for some time, OPG Power
Ventures. OPG owns power stations in India and was raising money to build
several new plants. We added to our holding in Hampson Industries helping to
fund a major acquisition.

We sold several of our holdings in oil & gas producers, including holdings in
Dana Petroleum, JKX Oil & Gas and Oilexco. These have all performed well in
recent months. We also sold our long standing holding in Chaucer Holdings,
taking a view that Lloyd's underwriters may remain dull for some time.

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).

26 June 2008