Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC All information is at30 September 2016 and unaudited.
Performance at month end is calculated on a capital only basis
	One month	Three months	One year		Three  years	Five  years
Net asset value*	3.0	17.3	8.4		33.7	112.9
Share price*	4.2	16.0	6.1		22.1	111.9
Numis ex Inv Companies + AIM	2.2	13.0	6.9		10.8	57.9
*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):				1,096.31p
Net asset value Capital only(debt at fair value):				1,086.73p
Net asset value incl. Income(debt at par value)**:				1,113.25p
Net asset value incl. Income(debt at fair value)**:				1,103.67p
Share price				933.00p
Discount to Cum Income NAV (debt at par value):				16.2%
Discount to Cum Income NAV (debt at fair value):				15.5%
Net yield^^^:				1.9%
Gross assets^:				£577.9m
Gearing range as a % of net assets:				0-15%
Net gearing including income (debt at par):				8.5%
2016 Ongoing charges ratio^^				0.7%
2016 Ongoing charges ratio (including performance fees):				0.9%
Ordinary shares in issue#:				47,879,792
**includes net revenue of 16.94p. ^includes current year revenue. ^^ As reported in the Annual Financial Report for the year ended 29 February 2016, 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 10.50 pence per share, (announced on 25 April 2016, ex-dividend on 19 May 2016) 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	29.5
Consumer Services	21.0
Financials	13.3
Technology	9.3
Basic Materials	8.8
Consumer Goods	8.3
Health Care	7.7
Oil & Gas	1.9
Utilities	0.2
	-----
Total	100.0
	=====
Ten Largest Equity Investments
Company	% of portfolio
4imprint Group	2.8
CVS Group	2.2
Dechra Pharmaceuticals	1.9
Advanced Medical Solutions	1.7
Avon Rubber	1.7
Hill & Smith	1.7
Restore	1.6
Fevertree Drinks	1.6
GB Group	1.6
JD Sports	1.5

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

During September the Company’s NAV per share rose by 3.0% on a capital only basis whilst the benchmark (Numis ex Inv Companies + AIM Index) rose by 2.2%; the FTSE 100 Index rose by 1.7%. (All calculations without dividends reinvested.)

Outperformance was largely driven by stock selection with the large portfolio holdings in Avon Rubber, 4imprint Group and JD Sports contributing well. Avon Rubber’s September trading update confirmed that it was trading in line with market expectations, helped by demand from the US. Avon Rubber is a major exporter to the US, China and other countries. 4imprint Group’s recent half year results reflected a 19% increase in earnings per share; almost all of its revenue is generated in the US. JD Sports’ interim results showed revenues up by 20% and earnings per share up by 69%; net cash was £231 million. JD Sports continues to benefit from its strong association with the major sports brands, and is gradually expanding its footprint throughout Europe.

There were no holdings which were significant detractors from relative performance from a stock specific point of view during the month.

Gearing added modestly to relative performance. The portfolio’s overweight position in housing related stocks drove the positive contribution from sector allocation to relative performance.

Activity during the month was fairly modest although we continued to selectively reduce UK exposure in favour of companies with a higher degree of US and emerging market exposure.

21 October 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.