Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 October 2009 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              0.3%     19.5%     45.2%      -7.9%     54.3%     
Share price                 -0.4%     20.4%     51.3%     -16.3%     45.1%     
HGSC ex Inv Trust + AIM*    -1.3%     15.3%     46.8%     -25.2%      1.8%    

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 three year and five year periods the
above index has been blended to reflect this.

At month end                                                                  
                                                                              
Net asset value Capital only (debt at par value):        358.46p           
Net asset value Capital only (debt at fair value):       354.21p           
Net asset value incl. Income (debt at par value):        361.96p**         
Net asset value incl. Income (debt at fair value):       357.71p**         
Share price:                                             283.00p           
Discount to Capital only NAV (debt at par value):          21.1%             
Discount to Capital only NAV (debt at fair value):         20.1%             
Net yield:                                                  1.8%              
Total assets:                                            £195.3m^          
Gearing incl. Income:                                      11.7%             
Ordinary shares in issue:                            48,194,792^^      

**includes net revenue of 3.50p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                       % of Total Assets
                                                                               
Software & Computer Services                                  10.3
Financial Services                                            10.0
Industrial Metals & Mining                                     8.6
Oil & Gas Producers                                            8.4
Support Services                                               6.9
Technology Hardware & Equipment                                6.0
Industrial Engineering                                         4.8
Electronic & Electrical Equipment                              4.4
Pharmaceuticals & Biotechnology                                4.4
Media                                                          4.1
                                                              ----
Total                                                         67.9
                                                              ====

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Abcam Group                                                                    
Aveva Group                                                                    
BATM Advanced Communications                                                   
Brewin Dolphin Holdings                                                        
City of London Investment Group                                                
Dechra Pharmaceuticals                                                         
Domino Printing Sciences                                                       
Fidessa group                                                                  
Rathbone Brothers                                                              
Rensburg Sheppards                                                             
 

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

October was a good month in relative terms with the NAV increasing by 0.3% on a
capital only basis, whilst the benchmark fell by 1.3%. The FTSE 100 Index fell
by 1.7%.

The main contributor to relative outperformance was our holding in BATM
Advanced Communications. BATM shares performed well as analyst coverage
increased ahead of interim results. BATM is well placed to benefit from the
rapid increase in telecoms data traffic, largely driven by the increased use of
smartphones. It also has an interesting medical technologies division where
sales are developing well.

Relative performance was good both in terms of stock selection and sector
allocation. Our large underweight sector position in travel & leisure proved
very beneficial, as investors sold pub companies and other domestically
dependent companies.

No individual shares had a material negative impact on relative performance
during the month.

We sold holdings in Game Group, HMV Group, Dana Petroleum and Heritage Oil. We
remain cautious on the outlook for the UK economy. Game and HMV are
attractively valued retailers facing weak comparable trading periods, but we
expect 2010 trading to be more challenging and believe investors will look
forward to this rather than react to likely positive year end trading
statements. Dana and Heritage are not our highest conviction oil producers, nor
are their valuations compelling at present.

We bought holdings in Spectris, Headlam and Highland Gold. Spectris is an
international capital goods company which has cut costs aggressively. We think
trading is beginning to stabilise and expect the company to do well over the
medium term. Headlam dominates the distribution of carpets to the UK
independent retailer sector. It is cautiously run but operationally geared. We
suspect trading is also stabilising and that Headlam should do well as housing
transactions recover. Highland Gold is a gold producer with an erratic historic
record. However, latest results show encouraging trends in production and
decreasing cash costs. New projects are due to come on stream shortly, boosting
production further at a time of high gold prices. It also has a very cash rich
balance sheet.

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).

19 November 2009