Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
 

All information is at 31 August 2018 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*	-1.8	1.0	12.3	56.2	101.3
Share price*	-2.0	0.7	19.8	60.5	101.2
Numis ex Inv Companies + AIM Index	-0.5	-1.0	1.9	25.3	36.6

*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):	1,602.88p
Net asset value Capital only(debt at fair value):	1,595.13p
Net asset value incl. Income(debt at par value)**:	1,623.69p
Net asset value incl. Income(debt at fair value)**:	1,615.93p
Share price	1,485.00p
Discount to Cum Income NAV (debt at par value):	8.5%
Discount to Cum Income NAV (debt at fair value):	8.1%
Net yield^^^:	1.8%
Gross assets^:	£852.1m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	7.2%
2018 Ongoing charges ratio^^	0.7%
2018 Ongoing charges ratio (including performance fees):	1.0%
Ordinary shares in issue#:	47,879,792

**includes net revenue of 20.81p

^includes current year revenue

^^As reported in the Annual Financial Report for the year ended 28 February 2018, 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 16.00 pence per share, (announced on 27 April 2018, ex-dividend on 17 May 2018) 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	31.8
Financials	21.0
Consumer Services	12.2
Health Care	8.2
Consumer Goods	7.9
Technology	7.5
Basic Materials	5.6
Oil & Gas	5.3
Utilities	0.5
	-----
Total	100.0
	=====

Ten Largest Equity Investments
Company	% of portfolio
Robert Walters	2.0
4imprint Group	2.0
Dechra Pharmaceuticals	1.9
YouGov	1.8
Integrafin	1.8
Premier Asset Management Group	1.6
Polar Capital Holdings	1.5
Bodycote	1.5
Liontrust Asset Management	1.5
Big Yellow	1.4

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

During August the Company’s NAV per share fell by 1.8% to 1,602.88p on a capital only basis, underperforming our benchmark index which fell by 0.5%; the FTSE 100 Index fell 4.1% on a capital only basis.

August proved to be a difficult month for the Company, with performance impacted by two stock specific disappointments which caused the portfolio to underperform its benchmark.

Shares in Hill & Smith fell after the company reported a reduction in first half profits caused by short-term project delays in the UK’s road programme and adverse weather in the first quarter. Shares in veterinary group CVS fell after it too admitted to being affected by the severe weather earlier in the year, and also by the weaker than expected performance of some recent acquisitions.

On the positive side, the Company benefited from good share price rises in a number of other holdings notably GB Group, Next Fifteen, Warpaint and Tatton Asset Management.

There was profit taking in many industrial engineering companies, and given our significant overweight sector position in this area, this also contributed to underperformance.

We have maintained a higher weighting to good companies with significant international exposure, and have continued to reduce or sell holdings where our conviction has weakened.
 

20 September 2018

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.