Interim Management Statement

SMALL COMPANIES DIVIDEND TRUST PLC
INTERIM MANAGEMENT STATEMENT
For the quarter ended 31 July 2012

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 traded on the
London Stock Exchange's Main Market 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          103.73p
share*                                             
                                                   
Ordinary share price                         93.25p
                                                   
Discount                                     10.10%
                                                   
Gearing                                     129.29%
                                                   

* Based on NAV including current period revenue.

PERFORMANCE - TOTAL RETURN

For the quarter ended 31 July 2012

NAV total return**                            0.34%
                                                   
Share Price total return                     (2.45%)
                                                   
MSCI UK Small Cap Index total return         (3.14%)
                                                   

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

MATERIAL DEVELOPMENTS AND TRANSACTIONS

At the General Meeting held on 24 August 2012 resolutions approving (i) the
proposed issue of Zero Dividend Preference (ZDP) Shares by Small Companies ZDP
PLC, a new wholly owned subsidiary of the Company, (ii) an amendment to the
Company's investment policy to confirm there is no set limit on the Company's
gearing; and (iii) changes to the Company's Articles of Association to change
the dates of future continuation votes were duly passed.

Following the passing of the proposed issue of ZDP shares 8,500,000 were
admitted to Standard Listing and dealings on 28 August 2012.

At 31 July 2012 the Company had borrowing facilities with Lloyds TSB plc
represented by a £4 million fixed loan and a £2 million overdraft facility with
HSBC Bank plc. At 31 July 2012 £4 million of the borrowing facility with Lloyds
TSB plc and £0.94 million of the overdraft facility with HSBC Bank plc was
being utilised. The swap expired on 10 July 2012. Part of the proceeds from the
ZDP shares placing has been used to repay the borrowings.

DISTRIBUTION OF ASSETS AND LIABILITIES

As at 31 July 2012

                                                           £m              % 
                                                                             
Listed and AIM traded investments                                            
                                                                             
Ordinary Shares                                          21.74         128.94
                                                                             
Investment in subsidiary                                  0.01           0.06
                                                                             
Net current assets                                        0.05           0.30
                                                                             
Bank overdraft                                           (0.94)         (5.58)
                                                                             
Loan borrowings (see above)                              (4.00)        (23.72)
                                                                             
Net assets                                               16.86         100.00 



20 LARGEST HOLDINGS                      %
                                          
As at 31 July 2012                        
                                          
  1   Macfarlane Group                2.98
                                          
  2   Avesco Group                    2.87
                                          
  3   Sanderson Group                 2.76
                                          
  4   Office2Office                   2.73
                                          
  5   Personal Group                  2.67
                                          
  6   Smiths News                     2.64
                                          
  7   Portmeirion Group               2.62
                                          
  8   Vp                              2.50
                                          
  9   Jarvis Securities               2.21
                                          
 10   Braemar Shipping                2.20
                                          
 11   Beazley                         2.19
                                          
 12   Morgan Sindall Group            2.16
                                          
 13   Abbey Protection                2.16
                                          
 14   Sinclair (W) Holdings           2.12
                                          
 15   Arbuthnot Banking               2.09
                                          
 16   Chesnara                        2.07
                                          
 17   Cineworld Group                 2.06
                                          
 18   Wilmington Group                2.01
                                          
 19   GVC Holdings                    2.00
                                          
 20   Electrocomponents               1.98
                                          
      Balance held in 46 holdings    52.98
                                          
                                    100.00
                                          

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                  Half Year - December 2011             
                                       Final - July 2012                     

Dividend payments: June, September, December and March.

For the year ended 30 April 2012, three interim dividends of 1.35p each and a
fourth of 2.35p per Ordinary share were paid.

A first interim dividend was declared on 29 August 2012 of 1.40p net per
Ordinary share payable on 28 September 2012 to the holders of Ordinary shares
on the register at 7 September 2012, with an ex dividend date of 5 September
2012.

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.

Other than as detailed above, the Board is not aware of any significant events 
or transactions that have occurred between 31 July 2012 and the date of 
publication of this statement which would have a material impact on the 
financial position of the Company.

Contact:

William van Heesewijk - Chelverton Asset Management Limited

Tel: [phone]

Neither the contents of Chelverton Asset Management Limited’s website nor 
the contents of any website accessible from hyperlinks on the website 
(or any other website) is incorporated into, or forms part of this announcement.