Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 28 February 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             0.1%      5.1%     69.2%     -16.6%     33.2%     
Share price                -1.6%      3.4%     66.0%     -25.2%     28.3%     
HGSC ex Inv Trust + AIM*    0.6%      4.0%     63.2%     -29.7%     -6.4%   

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):           375.23p           
Net asset value Capital only (debt at fair value):          370.97p           
Net asset value incl. Income (debt at par value):           380.72p**         
Net asset value incl. Income (debt at fair value):          376.46p**         
Share price:                                                293.75p           
Discount to Capital only NAV (debt at par value):           21.7%             
Discount to Capital only NAV (debt at fair value):          20.8%             
Net yield:                                                  1.7%              
Total assets:                                               £203.2m^          
Gearing incl. Income:                                       11.3%             
Ordinary shares in issue:                                   47,879,792^^      

**includes net revenue of 5.49p.
^includes current year revenue.
^^excludes 2,113,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                   % of Total Assets
                                                                               
Software & Computer Services                              10.9
Industrial Metals & Mining                                10.5
Financial Services                                         9.3
Oil & Gas Producers                                        8.8
Support Services                                           6.9
Industrial Engineering                                     6.7
Electronic & Electrical Equipment                          6.1
Technology Hardware & Equipment                            5.6
Pharmaceuticals & Biotechnology                            4.6
Real Estate Investment Services                            3.7
                                                          ----
Total                                                     73.1
                                                          ====

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Abcam Group                                                                    
Aveva Group                                                                    
Brewin Dolphin Holdings                                                        
City of London Investment Group                                                
Domino Printing Sciences                                                       
Eastern Platinum                                                               
Fidessa group                                                                  
Rotork                                                                         
Spirax-Sarco Engineering                                                       
Victrex                                                                        

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

February was a fairly flat month for the Company's NAV, although the benchmark
did record a small increase.

The biggest contribution to outperformance came from our holdings in Fidessa,
Eastern Platinum and Cove Energy. Fidessa, a leading software provider to the
financial services sector, delivered very strong full year results with
earnings up by 33%. Constant currency organic sales growth was a highly
impressive 17%. Revenues of a recurring nature represent 80% of total revenues.
Eastern Platinum shares continued to perform well on the back of good
production numbers and the higher level of platinum group metal prices. Cove
Energy, a higher risk small holding, encountered a 480 net feet natural gas
column while drilling its first Anadarko operated deep well offshore
Mozambique. This looks very promising and could indicate the existence of a
major new hydrocarbons province, Cove shares increased by 61% during the month,
although given the small size of the holding the impact on our NAV was only 16
basis points.

Performance was negatively impacted by our holdings in BATM Advanced
Communications and Intec Telecom Systems. BATM Advanced Communications produced
final results which did not meet some of the more optimistic analysts'
forecasts. It also indicated that telecom spending could take longer to pick up
than had been hoped. We met management and believe their line is consistent
with that taken in previous meetings with us. They have maintained share in
markets and revenues and profits have held up much better than most peers.
Their medical business should start to contribute to profits soon. We see this
business as having considerable potential; it has a strong balance sheet and
the shares are attractively valued. Intec Telecom Systems referred to some
delays in the signing of new software contracts in EMEA. This is consistent
with comments by Alterian last month. We believe Western European companies and
governments are slowing decision making, but this does not seem to be the case
in rapidly growing markets.

The two largest new holdings were Ferrexpo and Ashtead, each about 0.5% of net
assets. Ferrexpo is one of the largest stocks in our recently rebalanced
benchmark. It produces iron ore in the Ukraine where it has a very large
resource. Rio Tinto, BHP and others are seeking a large increase in the iron
ore price which would benefit Ferrexpo. Ashtead is a plant hire company which
is heavily exposed to the US. We expect construction activity to begin to pick
up in the US later in 2010 and Ashtead is a highly operationally and
financially geared to play this. We sold a few smaller holdings including those
in Sportingbet and Plant Health Care.

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).

18 March 2010