Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC

INTERIM MANAGEMENT STATEMENT

For the Quarter Ended 31 January 2011

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          109.28p
share*                                             
                                                   
Ordinary share price                        100.75p
                                                   
(Discount)/Premium                           (7.81)%
                                                   
Gearing                                        129%

PERFORMANCE - TOTAL RETURN

For the Period from 1 May 2010 to 31 January 2011

NAV total return**                           17.74%
                                                   
Share Price total return                     23.51%
                                                   
FTSE All Share Index (capital return)         6.31%
                                                   
FTSE Small-Cap Index (capital return)        10.04%
                                                   

* 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 period except the
agreement of a £2 million overdraft facility with HSBC of which £0.69 million
was in use as at 31 January 2011.

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 31 January 2011

                                                           £m              % 
                                                                             
Listed and AIM traded investments                                            
                                                                             
Ordinary Shares                                          22.67          127.6
                                                                             
Net current assets                                        0.15            0.9
                                                                             
Bank Overdraft                                           (0.69)          (3.9)
                                                                             
Loan borrowings                                          (4.37)         (24.6)
                                                                             
Net assets                                               17.76          100.0


Top 20 Holdings as at 28 February 2011

      Company                         % of
                                 portfolio
                                          
  1   Sinclair (W) Holdings           4.65
                                          
  2   Macfarlane Group                4.32
                                          
  3   Portmerion Group                4.13
                                          
  4   Alumasc Group                   3.53
                                          
  5   S & U                           3.50
                                          
  6   Victoria                        3.06
                                          
  7   Stadium Group                   2.83
                                          
  8   Cineworld Group                 2.79
                                          
  9   Chesnara                        2.68
                                          
 10   Marshalls                       2.46
                                          
 11   Jarvis                          2.42
                                          
 12   Fiberweb                        2.39
                                          
 13   Sanderson Group                 2.38
                                          
 14   Beazley                         2.34
                                          
 15   Hansard Global                  2.25
                                          
 16   Avesco Group                    2.25
                                          
 17   Trifast                         2.13
                                          
 18   Arbuthnot Banking               2.12
                                          
 19   Consort Medical                 2.10
                                          
 20   Clarke (T)                      2.09
                                          
      Balance held in 36             43.58
      holdings                            
                                          
                                    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 2010               
                                                                             
                                       Final - July 2011                     

A fourth interim dividend for the year ended 30 April 2010 of 2.25p per
Ordinary share was paid on 8 July 2010. For the year ended 30 April 2011, a
first interim dividend of 1.30p was paid on 4 October 2010 and a second interim
dividend of 1.30p was paid on 7 January 2011.

A third interim dividend was declared on 15 March 2011 of 1.30p net per
Ordinary share payable on 4 April 2011 to the holders of Ordinary shares on the
register at 25 March 2011.

Price information is published in the Financial Times under 'Investment
Companies.'

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]

18 March 2011