Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC All information is at29 February 2016 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*	-1.5	-5.8	3.8		37.4	59.4
Share price*	-4.8	-10.3	6.3		37.7	59.2
Numis ex Inv Companies + AIM	0.2	-5.4	-4.4		8.6	17.8
*performance calculations based on a capital only NAV with debt at par, without income reinvested. Share price performance calculations exclude income reinvestment.
Sources:  BlackRock and Datastream
At month end
Net asset value Capital only (debt at par value):				978.62p
Net asset value Capital only (debt at fair value):				969.02p
Net asset value incl. Income (debt at par value)**:				992.18p
Net asset value incl. Income (debt at fair value)**:				982.59p
Share price				863.00p
Discount to Cum Income NAV (debt at par value):				13.0%
Discount to Cum Income NAV (debt at fair value):				12.2%
Net yield^^^:				1.9%
Gross assets^:				£515.0m
Gearing range as a % of net assets:				0-15%
Net gearing including income (debt at par):				6.6%
2015 Ongoing charges ratio^^				0.7%
2015 Ongoing charges ratio (including performance fees):				1.0%
Ordinary shares in issue#:				47,879,792
**includes net revenue of 13.56p ^includes current year revenue ^^ As reported in the Annual Financial Report for the year ended 28 February 2015, 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 of the final dividend of 9.00 pence per share, (announced on 27 April 2015, gone ex-dividend on 21 May 2015) and the interim dividend of 7.00 pence per share (announced on 26 October 2015 and gone ex-dividend on 5 November 2015) #excludes 2,113,731 shares held in treasury.
Sector Weightings	% of portfolio
Industrials	26.4
Consumer Services	19.0
Financials	18.7
Technology	10.2
Health Care	9.0
Consumer Goods	8.7
Basic Materials	5.8
Oil & Gas	1.9
Telecommunications	0.3
	-----
Total	100.0
	====
Ten Largest Equity Investments
Company	% of portfolio
CVS Group	2.3
4imprint Group	2.0
JD Sports	1.8
Dechra Pharmaceuticals	1.8
Rathbone Brothers	1.7
Restore	1.7
Workspace Group	1.6
Ted Baker	1.6
Topps Tiles	1.5
Headlam Group	1.5
Commenting on the markets, Mike Prentis, representing the Investment Manager noted: During February the Company’s NAV per share fell by 1.5% on a capital only basis whilst the benchmark index rose by 0.2%; the FTSE 100 Index also rose by 0.2%. February was a very volatile and difficult month in which we saw a continuation of January’s sharp sell off until mid-month, and then a rapid reversal. In particular we saw a change in share price momentum with many of the stocks which had done well in recent months being sold off sharply, and others that had performed poorly in recent months now doing well. This is consistent with short closing, and we believe many long/short funds reduced exposures during the month resulting in this sharp change in fortunes for many stocks. Relative underperformance during the month was mainly derived from stock selection although sector allocation also detracted from performance. The largest detractors from relative performance were our holdings in Fevertree Drinks, Workspace Group, Polar Capital and Alternative Networks, although none of these individually exceeded 0.2% of relative performance. Fevertree Drinks has been an excellent performer both operationally and in share price terms. In its most recent trading statement it indicated sales in the second half of 2015 had increased by 77%. Fevertree’s share price has increased by 266% over the last 12 months. However, in February we saw a reversal in its share price momentum with the shares falling 15.2%; this really just amounts to profit taking after a very strong run. Workspace Group shares suffered as BREXIT fears gathered pace. Workspace’s property is all on the periphery of Central London, and there are fears that if the UK leaves the EU there will be significant job losses in London, and lower demand for London office property. Workspace’s businesses are however typically very dynamic businesses, more likely than many to adapt to changing circumstances, and they pay on average much lower rents than businesses in prime areas of Central London. Polar Capital is a fund manager, with significant assets in Japan; the Japanese market performed poorly in February. Alternative Networks released an unfavourable trading update in February, with reduced mobile profits coming as a result of pressures on roaming revenues caused by a more competitive business mobile market. The largest positive contributor to stock selection during the month was our holding in Dechra Pharmaceuticals. Dechra announced interim results with revenues up by 14.9% (at constant exchange rates), and earning per share up by 17.6%. We had a good meeting with management who remain positive about prospects for this very internationally exposed business. Within sector allocation our underweight sector position in mining companies and our overweight position in aerospace & defence companies both detracted from performance. Portfolio activity during the month was fairly modest. However we did add a small position in Supergroup, a former holding, after a good meeting with management, taking part in a placing of shares by one of the founders.   21 March 2016 ENDS   Latest information is available by typing www.blackrock.co.uk/brsc on 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.