Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
 

All information is at 30 November 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*	-2.0	1.5	32.6	64.6	132.7
Share price*	-0.3	3.3	42.7	67.5	137.9
Numis ex Inv Companies + AIM Index	-1.6	1.3	20.5	33.1	62.4

*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):	1,448.32p
Net asset value Capital only(debt at fair value):	1,440.55p
Net asset value incl. Income(debt at par value)**:	1,463.51p
Net asset value incl. Income(debt at fair value)**:	1,455.73p
Share price	1,281.00p
Discount to Cum Income NAV (debt at par value):	12.5%
Discount to Cum Income NAV (debt at fair value):	12.0%
Net yield^^^:	1.8%
Gross assets^:	£775.4m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	10.2%
2017 Ongoing charges ratio^^	0.7%
2017 Ongoing charges ratio (including performance fees):	1.0%
Ordinary shares in issue#:	47,879,792

**includes net revenue of 15.19p

^includes current year revenue

^^As reported in the Annual Financial Report for the year ended 28 February 2017, 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 13.00 pence per share, (announced on 02 May 2017, ex-dividend on 18 May 2017) and the interim dividend of 10.00 pence per share (announced on 30 October 2017 and gone ex-dividend on 9 November 2017)

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

Sector Weightings	% of portfolio
Industrials	32.7
Financials	14.7
Consumer Services	13.5
Consumer Goods	10.1
Health Care	8.8
Technology	8.7
Basic Materials	8.2
Oil & Gas	2.9
Utilities	0.4
	-----
Total	100.0
	=====

Ten Largest Equity Investments
Company	% of portfolio
Dechra Pharmaceuticals	2.3
Avon Rubber	1.8
4imprint Group	1.7
Robert Walters	1.7
Hill & Smith	1.5
Big Yellow	1.5
Advanced Medical Solutions	1.5
Accesso Technology	1.5
Central Asia Metals	1.4
Ibstock	1.4

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

During November the Company’s NAV per share fell by 2.0% to 1448.32p on a capital only basis, whilst the benchmark (Numis ex Inv Companies + AIM Index) fell by 1.6%; the FTSE 100 Index fell 1.8% (all performance figures are on a capital only basis and net of ongoing charges and any applicable performance fees).

Stock selection and gearing contributed negatively to performance during the month.

The market rotation from growth stocks into value holdings detracted from relative performance during the month however the Company also suffered one stock specific disappointment. Shares in the UK’s leading veterinary practitioner CVS Group fell sharply on the last day of the month after the company released a trading statement highlighting that like for like sales grew at only 1.5% (versus last year’s growth of over 6%) and that recent sales patterns had been more volatile. The significant fall (in excess of 20%) in the share price appears to be an overreaction to the 3% earnings downgrade for a quality business that we believe has a long runway of growth as they continue to consolidate the veterinary market.

The largest positive contributor during the month was Avon Rubber after the company’s full year results were slightly ahead of expectations, showing both divisions (Protection & Defence and Dairy) trading well. Most importantly, the results provided the market with confidence in the outlook for the company, with the order book across both divisions looking strong heading into 2018, while the excellent cash generation provides management further firepower to pursue value enhancing acquisitions. Trifast, which is involved in the manufacture of industrial fastenings and components, reported half year results to September 2017 showing strong organic sales growth resulting in broker upgrades to the full year estimates. Shares in XLMedia rallied after the company released an unscheduled trading statement indicating that results for 2017 will, be materially ahead of expectations. Recent acquisitions have been performing well while margins in XLMedia’s core publishing and media businesses have been stronger than expected.

Activity during November included a new purchase in Clarkson, which provides integrated shipping services including Broking, Financial, Support and Research. We further reduced some of the portfolio’s holdings with domestic exposure and added to holdings which generate earnings from overseas.

14 December 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.