Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)

All information is at 28 February 2017 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*	3.8	12.9	25.9	26.4	101.4
Share price*	5.8	18.0	22.8	16.7	110.7
Numis ex Inv Companies + AIM Index	2.4	8.6	20.4	5.2	46.9

*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):	1,232.56p
Net asset value Capital only(debt at fair value):	1,223.31p
Net asset value incl. Income(debt at par value)**:	1,247.04p
Net asset value incl. Income(debt at fair value)**:	1,237.80p
Share price	1,060.00p
Discount to Cum Income NAV (debt at par value):	15.0%
Discount to Cum Income NAV (debt at fair value):	14.4%
Net yield^^^:	1.7%
Gross assets^:	£647.0m
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 14.48p

^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 8.00 pence per share (announced on 25 October 2016 and gone ex-dividend on 3 November 2016)

#excludes 2,113,731 shares held in treasury.

Sector Weightings	% of portfolio
Industrials	28.5
Consumer Services	19.3
Financials	15.2
Basic Materials	10.8
Consumer Goods	8.5
Health Care	6.6
Technology	6.5
Oil & Gas	3.8
Travel & Leisure	0.4
Utilities	0.4
	-----
Total	100.0
	=====

Ten Largest Equity Investments
Company	% of portfolio
CVS Group	2.4
4imprint Group	2.2
Dechra Pharmaceuticals	2.0
Avon Rubber	1.7
JD Sports Fashion	1.6
Headlam Group	1.5
Hill & Smith	1.5
Workspace Group	1.5
Bodycote	1.4
Advanced Medical Solutions	1.4

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

During February the Company’s NAV per share rose by 3.8% to 1232.56p on a capital only basis whilst our benchmark index (Numis ex Inv Companies + AIM Index) rose by 2.4%; the FTSE 100 Index rose by 2.3%.

Outperformance was largely driven by good stock selection, with the contribution from gearing also positive.

There were no major individual positive contributors to stock selection. The largest positive contributor was Quartix which unveiled good final results with revenue up 19%. Quartix is especially focussed on growing its highly successful fleet tracking services where the subscriber base is growing quickly; the revenues from this are largely recurring with low churn. The Company has been investing in its products and infrastructure, especially in the US, and this held back profit growth to 9%. Cash generation was strong and Quartix is proposing a total dividend for the year that is 180% higher than 2015. 

There were also no major individual stock detractors from relative performance during the month. The largest detractor was Hill & Smith, where there was no newsflow, but the last trading update was strong and in early March the Company has reported good final results.

Sector allocation made minimal impact during February.

We invested in the IPO of Xafinity, a UK specialist in pensions actuarial, consulting and administration, providing advisory and compliance services to more than 550 pension scheme clients. The company combines expertise, insight and technology to meet the needs of both pension trustees and sponsoring companies. Xafinity’s revenues are very sticky because it typically works closely with trustees on pension schemes over the long term. We were impressed by management and see Xafinity’s earnings as high quality.

16 March 2017

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.