Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)

All information is at 31 March 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*	2.4	10.2	24.1	31.7	105.1
Share price*	-1.4	8.7	20.3	20.6	100.2
Numis ex Inv Companies + AIM Index	2.2	6.5	18.2	10.4	49.5

*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):	1,261.76p
Net asset value Capital only(debt at fair value):	1,252.52p
Net asset value incl. Income(debt at par value)**:	1,279.18p
Net asset value incl. Income(debt at fair value)**:	1,269.93p
Share price	1,045.00p
Discount to Cum Income NAV (debt at par value):	18.3%
Discount to Cum Income NAV (debt at fair value):	17.7%
Net yield^^^:	1.8%
Gross assets^:	£662.4m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	7.2%
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 17.42p

^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	29.5
Consumer Services	20.3
Financials	14.2
Basic Materials	9.6
Consumer Goods	8.5
Health Care	7.9
Technology	6.4
Oil & Gas	2.9
Travel & Leisure	0.4
Utilities	0.3
	-----
Total	100.0
	=====

Ten Largest Equity Investments
Company	% of portfolio
CVS Group	2.6
4imprint Group	2.3
Dechra Pharmaceuticals	2.1
JD Sports Fashion	1.8
Hill & Smith	1.7
Avon Rubber	1.7
Headlam Group	1.6
Advanced Medical Solutions	1.5
Bodycote	1.4
Workspace Group	1.4

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

During March the Company’s NAV per share rose by 2.4% to 1261.8p whilst our benchmark index, Numis ex Inv Companies + AIM Index, rose by 2.2%; the FTSE 100 Index rose by 0.8% (all figures on a capital only basis).

Stock selection was the primary driver of performance during the month, with the contribution from gearing also positive.

A number of the portfolio’s core holdings delivered strong results during the month including, CVS Group, Hill & Smith and Marshalls. Veterinary surgeries operator CVS Group reported strong organic growth, further acquisitions and significant margin expansion resulting in earnings upgrades. The pace of acquisitions has continued with 20 sites acquired in the most recent six months, including the first sites in The Netherlands; the company noted that the pipeline remains strong. Hill & Smith announced a 16% rise in 2016 revenues and increased full year dividends by 28%. The outlook for 2017 continues to look positive and the company has a good presence in the UK and the US (both countries where infrastructure spending is likely to increase). Landscaping materials company Marshalls rallied after reporting a 31% increase in 2016 pre-tax profits. 

There were no major individual stock detractors from relative performance during the month. The main detractors came from the portfolio’s holdings in mining companies which in total cost around 0.5% of relative performance. Many beneficiaries of the ‘reflation trade’ gave back some of their recent strong performance, including mining companies.

We continue to find opportunities in initial public offerings, and most recently invested in the IPO of Medica. The company is a leading independent UK provider of radiology reporting delivering in excess of 1.3 million reports per annum, mainly to the NHS.

19 April 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.