Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST plc

All information is at 31 May 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              2.7%     25.4%   -36.9%    -21.9%     26.1%     
Share price                  5.1%     32.2%   -36.3%    -21.1%     36.4%     
HGSC ex Inv Trust + AIM*     3.8%     29.3%   -32.1%    -35.1%    -14.1%  

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):           278.10p           
Net asset value Capital only (debt at fair value):          272.60p           
Net asset value incl. Income (debt at par value):           284.46p**         
Net asset value incl. Income (debt at fair value):          278.96p**         
Share price:                                                234.00p           
Discount to Capital only NAV (debt at par value):           -15.86%           
Discount to Capital only NAV (debt at fair value):          -14.16%           
Net yield:                                                    0.83%             
Total assets:                                               £152.3^           
Gearing incl. income:                                         11.7%             
Ordinary shares in issue:                                48,194,792^^      

**includes net revenue of 6.36p.
^includes current year revenue.
^^excludes 1,798,731 shares held in treasury.

Ten Largest Sector                                                             
Weightings                                                    % of Total Assets
                                                                               
Software & Computer Services                                               11.5
Financial Services                                                         10.4
Support Services                                                            9.6
Oil & Gas Producers                                                         8.3
Industrial Metals & Mining                                                  7.1
Industrial Engineering                                                      5.1
Aerospace & Defence                                                         4.6
Travel & Leisure                                                            3.9
General Retailers                                                           3.6
Pharmaceuticals & Biotechnology                                             3.6
                                                                           ----
Total                                                                      67.7
                                                                           ====

Ten Largest Equity Investments (in alphabetical order)                         
                                                                               
Company                                                                        
                                                                               
Abcam                                                                          
Aveva Group                                                                    
Brewin Dolphin Holdings                                                        
Chemring Group                                                                 
City of London Investment Group                                                
Dechra Pharmaceuticals                                                         
Emerald Energy                                                                 
Fidessa Group                                                                  
Rathbone Brothers                                                              
Victrex                                                                        

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

During May, the NAV increased by 2.7%, behind the benchmark which increased by
3.8%. The FTSE 100 Index rose by 4.1%.

Relative performance was impacted by poor contributions from London Capital and
WSP Group. London Capital had indicated in April that trading had been quieter
than expected, and some extra costs had been incurred pending finalisation of
testing of their new trading software. They subsequently disclosed that
following the departure of the previous Finance Director, certain relatively
minor accounting changes were being made to prior year accounts. We visited the
company and came away believing these were one-off items. However, visibility
is naturally very limited in a business such as London Capital, and the recent
reduction in market volatility has impacted profits. The balance sheet is
strong, the record is good, and our inclination is to retain the holding. WSP
shares were weak, having performed strongly in April. Trading remains
challenging, and collecting debts in the Middle East still needs to be done.
Our view is that most, hopefully all, of the bad news is now in the share
price.

The main contributors to relative performance were holdings in Aveva and Brewin
Dolphin. Aveva produced good full year results. Whilst earnings expectations
for the current year have been sharply reduced, management were very confident
that they can gain further market share during the recession and come out of it
stronger. Brewin Dolphin management was also confident. The business is coping
well in difficult markets, costs have been cut, and, like Aveva, the business
is financially very strong.

Holdings in QinetiQ, Playtech, PV Crystalox Solar and Lancashire Holdings were
sold. We wanted to reduce our large overweight exposure to the aerospace and
defence sector; QinetiQ shares have been out of favour and we prefer other
holdings. Playtech results showed slower organic growth than we had expected.
PV Crystalox warned demand had slowed and prices were under pressure. We wanted
to reduce exposure to the non-life assurers and decided to sell the Lancashire
holding.

We took part in several placings, the largest of which was in housebuilder
Taylor Wimpey, a heavily discounted issue to reduce debt. This seemed like a
reasonable way to increase sector exposure, and in a company trading at a large
discount to book value.

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).

23 June 2009