Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc
All information is at 30 November 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             -0.4%      7.6%     55.6%     -11.3%      48.5%     
Share price                  0.4%      4.5%     75.3%     -16.8%      42.2%     
HGSC ex Inv Trust + AIM*    -0.4%      3.1%     55.3%     -25.7%      -1.5%   

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):           356.89p           
Net asset value Capital only (debt at fair value):          352.65p           
Net asset value incl. Income (debt at par value):           360.64p**         
Net asset value incl. Income (debt at fair value):          356.40p**         
Share price:                                                284.00p           
Discount to Capital only NAV (debt at par value):           20.4%             
Discount to Capital only NAV (debt at fair value):          19.5%             
Net yield:                                                  1.8%              
Total assets:                                               £194.1m^          
Gearing incl. Income:                                       11.5%             
Ordinary shares in issue:                                   48,194,792^^      

**includes net revenue of 3.75p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

 

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Software & Computer Services                                               11.0
Financial Services                                                         10.4
Industrial Metals & Mining                                                  9.4
Oil & Gas Producers                                                         8.4
Support Services                                                            6.8
Technology Hardware & Equipment                                             5.9
Industrial Engineering                                                      5.3
Electronic & Electrical Equipment                                           4.7
Pharmaceuticals & Biotechnology                                             4.3
Media                                                                       4.2
                                                                           ----
Total                                                                      70.4
                                                                           ====

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

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

November was an almost flat month in absolute terms; we performed in line with
the benchmark. The FTSE 100 rose by 2.9%.

The main contributor to relative outperformance was our holding in Eastern
Platinum. Eastern Platinum's Crocodile River platinum mine is a relatively low
cost and shallow mine in South Africa. It is very well run and has benefited
from the rise in platinum group metal prices in recent months. Eastern
Platinum's assets are long life; the company is well placed to benefit from
recovering automotive demand and has benefited from the strong increase in
demand for platinum jewellery.

None of our holdings performed particularly poorly in relative terms during the
month. However, relative performance was affected adversely by being materially
underweight in general retailers, which sector outperformed the benchmark by
five percentage points during the month. We do not see this as sustainable.
Whilst many retailers are coming out with relatively good trading statements,
they are being helped by very weak comparative figures. With VAT and other
taxes increasing, we think 2010 could be very challenging for many retailers.

We sold our holding in Greene King. This is a well run pub company; its debt
burden is more manageable than many of its peers, its valuation is far from
expensive. However, we do not expect trading conditions to become easier in
2010 and could well deteriorate. On this basis there are more attractive stocks
to own; we particularly favour good quality stocks which generate much of their
revenue from overseas, especially from Asia Pacific and the Americas.

We bought a small holding, 0.25% of our net asset value, in Borders and
Southern, which owns significant acreage south of the Falklands. It raised £113
million by way of a placing during the month; we took part. The placing is to
fund a drilling campaign in the latter part of 2010. The targets it has
identified from 3D seismic are huge multi-billion barrel oil opportunities.
This is clearly high risk exploration drilling, but we believe the upside is
sufficiently attractive to justify a small position.

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).

16 December 2009