Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 October 2010 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             6.3%     23.9%      46.6%     9.6%       79.2%    
Share price                 6.5%     23.2%      51.4%     8.9%       75.1%    
HGSC ex Inv Trust + AIM*    3.4%     11.9%      20.5%   -15.9%        7.3%     

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 five year period the above index
has been blended to reflect this.

At month end                                                                  
                                                                              
Net asset value Capital only (debt at par value):           525.43p           
Net asset value Capital only (debt at fair value):          521.19p           
Net asset value incl. Income (debt at par value):           530.20p**         
Net asset value incl. Income (debt at fair value):          525.96p**         
Share price:                                                428.50p           
Discount to Capital only NAV (debt at par value):           18.4%             
Discount to Capital only NAV (debt at fair value):          17.8%             
Net yield:                                                  1.4%              
Total assets:                                               £275.2m^          
Gearing incl. Income:                                       8.5%              
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 4.77p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.

Ten Largest Sector                                                         
Weightings                                                % of Total Assets
                                                                           
Industrial Metals & Mining                                             12.0
Software & Computer Services                                           10.0
Electronic & Electrical Equipment                                       9.0
Oil & Gas Producers                                                     8.7
Financial Services                                                      8.1
Support Services                                                        7.5
Industrial Engineering                                                  6.7
Media                                                                   5.6
Pharmaceuticals & Biotechnology                                         4.9
Technology Hardware & Equipment                                         4.4
                                                                       ----
Total                                                                  76.9
                                                                       ====
 
Ten Largest Equity Investments (in alphabetical order)

Company

Abcam Group
Aveva Group
City of London Investment Group
Domino Printing Sciences
Eastern Platinum
Fidessa group
Hutchison China Meditech
IQE
Spirax-Sarco Engineering
Western Coal

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

During October the Company's NAV per share rose by 6.3% in capital only terms;
this was ahead of the benchmark which rose by 3.4%. The FTSE 100 Index rose by
2.3%. Our outperformance was mainly derived from stock selection but asset
allocation and gearing also contributed.

From a stock point of view, two holdings contributed more than 0.25% each to
relative outperformance, Hutchison China Meditech and City of London Investment
Group. Hutchison China Meditech had been our one poor performer in September,
although there had been no newsflow. October was also a month of no news for
the stock, but the share price did make up for its weak performance in
September. City of London Investment Group announced that assets under
management had increased 30% since its 31 May year end, helped by stronger
emerging markets indices. It also moved its listing from AIM to the Official
List. Pleasingly, no one holding had a significant negative impact on the
relative performance of the portfolio during the month.

We sold our holding in Bluebay Asset Management following a bid by Royal Bank
of Canada. Our holding in Bluebay had only been acquired in September, so we
were very surprised to see a bid emerge. We also sold our holding in Intec
Telecom which had received a bid from CSG of the US.

We took new holdings in TT Electronics and New Britain Palm Oil. TT Electronics
supplies sensors and other components mainly into automotive and industrial
markets globally. New management have reshaped the business and are driving up
margins from low levels. We feel the business is still undervalued
and it is trading well. New Britain Palm Oil is a significant producer of palm
oil based in the Pacific. We had no previous exposure to soft commodities and
with the palm oil price moving up sharply, as have many soft commodity prices,
we felt it appropriate to make a small investment.

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).

15 November 2010