Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC

INTERIM MANAGEMENT STATEMENT

For the Quarter Ended 31 January 2008

INVESTMENT OBJECTIVE

The investment objective of the Company is to provide Ordinary shareholders
with a high income and opportunity for capital growth.

INVESTMENT POLICY

The Company's funds will be invested principally in companies with a market
capitalisation of up to £500 million; a maximum of 20 per cent. of the
Company's portfolio may be invested in companies without reference to their
market capitalisation at the discretion of the Investment Manager. The
Company's portfolio will comprise companies listed on the Official List and
companies admitted to trading on AIM. The Company will not invest in preference
shares, loan stock or notes, convertible securities or fixed interest
securities or any similar securities convertible into shares. The Company will
not invest in other investment trusts or unquoted companies.

KEY FACTS

Net asset value (NAV) per Ordinary         150.73p*
share                                              
                                                   
Ordinary share price                       132.00p 
                                                   
(Discount)/Premium                         (12.4)% 
                                                   
Gearing                                     142.5% 
                                                   

PERFORMANCE - TOTAL RETURN

For the 9 Month Period Ended 31 January 2008

NAV total return                          (39.5)%**
                                                   
Share Price total return                  (40.4)%  
                                                   
FTSE All Share Index                       (8.8)%  
                                                   
FTSE Small-Cap Index                      (22.5)%  
                                                   

* Based on NAV including current period revenue.

** Based on NAV including current period revenue, adding back dividends paid in
the period.

MATERIAL DEVELOPMENTSANDTRANSACTIONS

There have been no material events or transactions in the quarter.

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 31 January 2008

                                                           £m              % 
                                                                             
Listed and AIM traded investments                                            
                                                                             
Ordinary Shares                                          35.0          142.9 
                                                                             
Net liabilities***                                      (10.5)         (42.9)
                                                                             
Net assets                                               24.5          100.0 
                                                                             

*** The Company has borrowings of £10.4 million, included in the above figures.

20 LARGEST HOLDINGS                         %   
                                                
As at 31 January 2008                           
                                                
1      Braemar Shipping Services            4.26
                                                
2      Chesnara                             3.54
                                                
3      Alumasc Group                        3.46
                                                
4      ATH Resources                        3.37
                                                
5      Highway Insurance Holdings           3.13
                                                
6      Arbuthnot Banking Group              2.93
                                                
7      Dawson Holdings                      2.86
                                                
8      Nichols                              2.79
                                                
9      Dee Valley Group                     2.73
                                                
10     Macfarlane Group                     2.70
                                                
11     Clarke (T)                           2.48
                                                
12     Cattles                              2.43
                                                
13     THB Group                            2.34
                                                
14     Marshalls Group                      2.33
                                                
15     TDG                                  2.33
                                                
16     Hilton Food Group                    2.32
                                                
17     Portmeirion Group                    2.23
                                                
18     BT Group                             2.22
                                                
19     Sanderson Group                      2.17
                                                
20     Davenham Group                       2.13
                                                
                                           54.75
                                                
       Balance held in 40 holdings         45.25
                                                
                                          100.00

Note: The Directors are not aware of any significant events or transactions
which have occurred between the date of the financial information and the date
of publication, which would have a material impact on the financial position of
the Company.

The net asset value is published on a weekly basis and other useful background
information on the Company including downloads of published documentation such
as previous Annual Reports and Monthly Fact Sheets can be found at
www.chelvertonam.com.

COMPANY INFORMATION

Launch date: 12 May 1999               Results announced:                    
                                                                             
Year end: 30 April                     Interim - December 2007               
                                                                             
                                       Final - July 2008                     

Dividend payments: June, September, December and March.

Two interim dividends of 3.20p per ordinary share were paid on 28 September
2007 and 31 December 2007. In addition a fourth interim dividend for the year
ended 30 April 2007 of 4.00p per Ordinary share was paid on 29 June 2007.

A third interim dividend was declared on 27 February 2008 of 3.20p net per
Ordinary share payable on 31 March 2008 to the holders of Ordinary shares on
the register at 7 March 2008.

Price information is published in the Financial Times under 'Investment
Companies' and The Daily Telegraph under `Investment Trusts'.

This interim management statement has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency rules.
It should not be relied upon by any other party or for any other purposes. In
addition, the views, information and data in this publication should not be
deemed as a financial promotion or recommendation.

Contact:

William van Heesewijk - Chelverton Asset Management Limited

Tel: [phone]