Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
 

All information is at 31 October 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	6.1	38.6	71.5	137.1
Share price*	3.4	6.8	43.1	64.4	142.9
Numis ex Inv Companies + AIM Index	2.8	4.2	22.9	35.8	65.0

*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):	1,477.93p
Net asset value Capital only(debt at fair value):	1,470.72p
Net asset value incl. Income(debt at par value)**:	1,501.89p
Net asset value incl. Income(debt at fair value)**:	1,494.68p
Share price	1,285.00p
Discount to Cum Income NAV (debt at par value):	14.4%
Discount to Cum Income NAV (debt at fair value):	14.0%
Net yield^^^:	1.8%
Gross assets^:	£793.8m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	9.8%
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 23.96p

^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 2 May 2017, ex-dividend on 18 May 2017) and the interim dividend of 10.00 pence per share (announced on 30 October 2017, ex-dividend on 9 November 2017).

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

Sector Weightings	% of portfolio
Industrials	33.1
Financials	14.1
Consumer Services	14.1
Consumer Goods	9.7
Technology	9.0
Health Care	8.7
Basic Materials	8.0
Oil & Gas	2.9
Utilities	0.4
	-----
Total	100.0
	=====

Ten Largest Equity Investments
Company	% of portfolio
Dechra Pharmaceuticals	2.1
CVS Group	2.1
4imprint Group	1.8
Robert Walters	1.7
Advanced Medical Solutions	1.7
Accesso Technology	1.6
Hill & Smith	1.5
Avon Rubber	1.5
Ibstock	1.4
Restore	1.4

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

During October the Company’s NAV per share rose by 3.8% to 1477.93p (on a capital only basis without dividends reinvested), whilst our benchmark index rose by 2.8%; the FTSE 100 Index returned 1.6%.

Stock selection drove outperformance during the month, while gearing also contributed positively.

Our holding in Advanced Medical Solutions (AMS) rallied after the company announced they had entered into a licensing agreement with Organogenesis Inc for its PHMB wound dressing. Under the agreement Organogenesis will have exclusive licence in the US to the patent, and in exchange AMS will receive $2.5m upfront and annual royalties until the patent expires in 2026. Shares in ticketing and virtual queuing solutions provider Accesso Technology continued to rise following the strong interim results announced in September. The attraction market remains relatively early in the move towards electronic and mobile commerce and Accesso’s market leading technology is becoming increasingly central to its customers' propositions, leveraging software and data to improve guest experience while driving operator profitability.

There were no major individual stock disappointments during the month, however Next Fifteen Communications was the largest relative detractor. The company reported good results showing continued growth in its first half (6 months ended 31 July 2017) and a solid start to second half, however the shares came under pressure as poor news flow from peers in the sector was unhelpful for investor sentiment, despite very little direct read across to Next Fifteen.

Activity during October included new purchases in RWS Holdings (the world leader in translation and localization, intellectual property support solutions and life sciences language services) and XP Power, a leading provider of power solutions. We further reduced some of our domestic exposed holdings and added to holdings which generate earnings from overseas.

14 November 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.