Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC

All information is at 30 June 2013 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               -3.6%     0.2%     28.0%      85.0%     76.9%
Share price                   -3.0%     2.1%     33.7%      96.6%     89.6%
Numis ex Inv Companies + AIM  -3.5%    -1.6%     20.8%      39.4%     29.1%

Sources:  BlackRock and Datastream

At month end
Net asset value Capital only (debt at par value):     726.12p
Net asset value Capital only (debt at fair value):    721.08p
Net asset value incl. Income (debt at par value)**:   732.74p
Net asset value incl. Income (debt at fair value)**:  727.70p
Share price:                                          639.00p
Discount to Cum Income NAV (debt at par value):         12.8%
Discount to Cum Income NAV (debt at fair value):        12.2%
Net yield^^^:                                            1.6%
Total assets^:                                        £386.7m
Gearing range as a % of total assets:                   0-15%
Net gearing including income (debt at par):             10.2%
2013 Ongoing charges ratio^^:                            0.6%
Ordinary shares in issue#:                         47,879,792
 
*performance calculations based on a capital only NAV with debt at par, without
income reinvested. Share price performance calculations exclude income
reinvestment.
**includes net revenue of 6.62p
^includes current year revenue
^^As reported in the Annual Financial Statements for the year ended
28 February 2013, the ongoing charges ratio is calculated as a percentage of
net assets and using operating expenses, excluding performance fees, finance
costs and taxation.
^^^Yield calculations are based on dividends announced in the last 12 months as
at the date of release of this announcement, and comprise the final dividend of
6.50 pence per share (announced on 26 April 2013 and going ex-dividend on 29
May 2013) and the interim dividend of 3.50 pence per share, paid on 7 December
2012.
#excludes 2,113,731 shares held in treasury

Sector Weightings                     % of portfolio

Industrials                                     24.0
Consumer Services                               20.4
Financials                                      17.2
Consumer Goods                                   9.5
Technology                                       9.1
Health Care                                      7.5
Basic Materials                                  6.7
Oil & Gas                                        4.1
Telecommunications Services                      1.5
                                               -----
Total                                          100.0
                                               =====
 
Ten Largest Equity Investments

Company                                     Total Market Value %

Bellway                                             2.5
Howden Joinery                                      2.4
Senior                                              2.3
Dunelm Group                                        2.0
Workspace                                           1.9
Booker Group                                        1.9
ITE Group                                           1.8
Victrex                                             1.7
Ashtead                                             1.7
Restaurant Group                                    1.7
 
Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:

During June the Company's NAV per share fell by 3.6% on a capital only basis.
The benchmark index fell by 3.5% whilst the FTSE 100 Index fell by 5.6%; again
both on a capital only basis. Markets were nervous following comments by the
Chairman of the US Federal Reserve indicating that bond purchases would be
reduced in due course. Markets were also unnerved by weaker data out of China,
falls in emerging markets currencies and demonstrations in Turkey, Brazil and
Egypt.

The relative contribution from stock selection was positive. However
contribution from sector allocation was slightly negative as was the
contribution from gearing.

The main positive contribution from stock selection came again from Xaar. Xaar
produced another very strong trading update which led to further significant
earnings upgrades.

On the negative side, the largest contributor to stock selection was Oxford
Instruments which announced full year results in line with expectations but
indicated that the new year had got off to a slow start. The company sells
instruments into research labs and some of these have been affected by recent
US Government spending cuts. We continue to see Oxford Instruments as a core
holding with strong management, products and finances and believe it will be a
bigger company in the medium term. 

During the month we took profits in some non-core holdings exposed to emerging
markets given concerns about growth. We decided to add to our UK property
exposure where we see reasonable value after the pullback over the last six
weeks. We added a holding in Quintain Estates and bought back into Shaftesbury,
both companies giving us further exposure to the London property market.

15 July 2013

ENDS

Latest information is available by typing www.blackrock.co.uk/brscon the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).  Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.