Final Results

RNS Number : 5751N

Henderson Smaller Cos Inv Tst PLC

10 August 2017

 

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2017

This announcement contains regulated information

Investment Objective

The Company aims to maximise shareholders' total returns (capital and income) by investing in smaller companies that are quoted in the United Kingdom.

Total Return Performance for the periods ended 31 May 2017
	1 year %	3 years %	5 years %	10 years %
NAV1	28.7	54.1	173.3	170.5
Share Price2	32.7	56.3	211.0	195.9
Benchmark3	23.9	34.6	123.3	124.3
Average Sector NAV4	26.1	46.2	142.8	157.1
Average Sector Share Price5	25.9	46.7	168.8	164.1
FTSE All-Share Index	24.5	25.4	77.6	71.4

Performance Highlights	31 May 2017	31 May 2016
NAV per share at year end	921.6p	731.0p
Share price at year end	799.0p	616.5p
Discount at year end6	13.3%	15.7%
Gearing at year end	9.2%	9.1%
Dividend for the year7	18.0p	15.0p
Revenue return per share	19.57p	15.92p
Dividend yield8	2.3%	2.4%
Total net assets	£688 million	£546 million
Ongoing charge excluding performance fee	0.43%	0.44%
Ongoing Charge including performance fee	1.01%	0.44%

1 Net Asset Value per ordinary share total return with income reinvested for 1, 3 and 5 years and capital NAV plus income for 10 years

2 Share price total return using mid-market closing price

3 Numis Smaller Companies Index (excluding investment companies) total return

4 Average NAV total return of the AIC UK Smaller Companies sector

5 Average share price total return of the AIC UK Smaller Companies sector

6 Calculated using published daily NAVs with debt at par including current year revenue

7 This represents an interim dividend of 5.0p and a proposed final dividend of 13.0p.

8 Based on the ordinary dividends paid for the year and the mid-market share price at the year end

Sources: Morningstar Funddata, Morningstar Direct, Janus Henderson, Datastream

CHAIRMAN'S STATEMENT

Performance

I am delighted to report that your Company has had an excellent year. The share price has risen by 32.7%, and the net assets by 28.7%, outperforming our benchmark, the Numis Smaller Companies Index (excluding investment companies), by 4.8% on a total return basis.

This means that our Fund Manager, Neil Hermon, and his team have outperformed our benchmark over one, three, five and ten years. Over the ten years to 31 May 2017, our net asset value total return is 170.5%, versus a total return from the benchmark of 124.3%. This is an impressive compound annual return to shareholders of 10.5% and is continuing testimony to the skills of Neil and his team, proving that thoughtful stock-picking can genuinely add value.

I would, as always, like to thank all the Henderson staff and my Board for their efforts throughout the year on behalf of shareholders.

Revenue and Dividend

The revenue return per share has increased to 19.6p, compared with 15.9p for the previous year. The Board is proposing a final dividend for the year of 13.0p per share, making a total dividend for the year of 18.0p (2016: 15.0p), as an interim dividend of 5.0p was paid in March. This marks a 20% increase on the previous financial year and is our 14th consecutive year of dividend growth. The final dividend is, of course, subject to shareholder approval at the Annual General Meeting to be held in October.

Gearing

In February 2017 the Company's £40 million bank facility with National Australia Bank expired. This was replaced with a £40 million facility with Scotiabank which has subsequently been increased to £60 million. This, combined with the £30 million unsecured loan notes from May 2016, provides total borrowing facilities of £90 million which the Fund Manager can utilise within gearing parameters set by the Board.

Ongoing Charge

The Board regularly reviews the Ongoing Charge and monitors the expenses incurred by the Company. For the year ended 31 May 2017 the Ongoing Charge was 0.43%, which compares to a charge of 0.44% for the year ended 31 May 2016, when excluding the performance fee. The charge including the performance fee was 1.01% for the year ended 31 May 2017, there was no performance fee payable last year. Further details of the Ongoing Charge are contained in the Annual Report.

Discount and Share Buy-backs

During the year, the AIC UK Smaller Companies sector as a whole traded at an average discount of 13.8% to NAV, with highs and lows of 16.5% and 9.7% respectively. At the year end, the Company's shares traded at a discount of 13.3%. The Company's discount ranged from 19.1% to 11.4%, with the average discount over the year being 15.7%.

The Board continues to monitor the discount and will consider the merits of buying back shares as markets evolve, though we do not currently believe that share buy-backs represent the most effective way of generating long term shareholder value. During the reporting year, no shares were bought back in the Company.

Outlook

Last year was dominated by two important votes; the Brexit referendum and the US Presidential elections. The outcomes of these events were a surprise to many people, not least the world's equity markets, and have been a major influence on their movements since. I said last year that uncertainty would remain until investors felt confident that the way forward for the UK was resolved. Given these conditions it seems unlikely that interest rates will rise significantly anytime soon and therefore sterling is likely to remain weak. As in previous years, our view remains that this is the time to stick to what we do best, and we remain confident that skilled active investing founded on the basic fundamentals of investing in quality growth at the right price will win through in these uncertain times. This has always been Neil's style and one that he will continue to adopt.

Annual General Meeting

The Annual General Meeting of the Company will be held at 11.30am on Thursday 5 October 2017 at the Registered Office, 201 Bishopsgate, London EC2M 3AE. We would encourage as many shareholders as possible to attend for the opportunity to meet the Board and to watch a presentation from Neil Hermon reviewing the year and looking forward to the year ahead.

The Company's AGM will be broadcast live on the internet. If you are unable to attend in person, you can watch the meeting as it happens by visiting www.janushenderson.com/trustslive.

Manager

As noted in my statement at the half year, Henderson Group plc merged with Janus Capital Group, Inc. on 30 May 2017. This will not lead to any change in personnel responsible for the day to day management of your Company.

Jamie Cayzer-Colvin

Chairman

FUND MANAGER'S REPORT

Market - year in review

The year under review was a very positive one for equity markets. It encompassed a period of significant political upheaval with the surprise wins for Brexit at the EU Referendum in June and the election of President Trump in November. That equity markets made such good progress is somewhat of a surprise but has been helped in the UK by the significant devaluation of sterling helping, in particular, large international earners.

Global economic conditions have been improving, albeit modestly, with stronger growth around the world. Monetary conditions remained benign with supportive monetary policies from developed world central banks. Global geo-political concerns remained heightened with significant conflict in the Middle East causing an international migrant crisis. Commodity prices rebounded with robust Chinese economic growth and production cutbacks aiding a recovery in oil and metal prices.

The fundamentals of the corporate sector remained robust. Companies continued to grow their dividends whilst balance sheets remained strong. UK corporate earnings saw stronger growth, helped by improving economic conditions and the weakness of sterling increasing the value of overseas earnings for UK companies.

Smaller companies marginally underperformed larger companies over the year. This is the only year that the Numis Smaller Companies Index (excluding investment companies) has underperformed the FTSE All-Share Index in the last nine years.

Fund Performance

The Company had an excellent year in performance terms - rising strongly in absolute terms and outperforming its benchmark. The net asset value rose 28.7%, on a total return basis. This compared to a rise of 23.9% (total return) from the Numis Smaller Companies Index (excluding investment companies). The outperformance came from a combination of underlying positive portfolio performance and a positive contribution from gearing in the Company. We have now outperformed the benchmark in 13 of the past 14 years.

Gearing

Gearing started the year at 9.1% and ended it at 9.2%. In the previous year the Company had redeemed the £20 million 10.5% 2016 debenture and replaced it with £30 million 20-year unsecured loan notes at an interest rate of 3.33%. This facility was provided by MetLife, one of the largest life insurance companies in the world. The replacement of the debenture with the new loan notes is now saving the Company a significant amount annually in interest while providing committed long term debt at a low interest rate. The remainder of the Company's debt is provided by short term bank borrowings. The controlled use of gearing was a positive contributor to performance in the year as markets rose and has been a significant positive over the 14 years I have managed the investment portfolio.

Attribution Analysis

The tables below show the top five contributors to, and the bottom five detractors from, the Company's relative performance.

Principal contributors	12 month return %	Relative contribution %
NMC Health	+98.9	+1.8
Melrose Industries	+230.8	+1.6
Renishaw	+92.5	+0.9
e2v Technologies	+41.2	+0.7
Clinigen	+61.2	+0.6

NMC Health is a Middle Eastern based healthcare operation. Its main facilities are in the United Arab Emirates, particularly Dubai and Abu Dhabi. NMC has grown strongly since its IPO in 2012 through the building of new facilities and acquisitions. This growth is set to continue, particularly given the positive structural opportunities in the UAE, driven by an underprovision of state provided healthcare, the continued roll-out of mandatory health insurance and positive demographics. The acquisition strategy has supplemented the organic strategy by diversifying the business by geography and medical discipline. Even after a strong share price performance in the last year the shares still look good value considering the strong earnings growth forecast.

Melrose Industries is a diversified engineering group whose raison d'être is to buy underperforming businesses, improve them and then sell the assets on. Essentially it is deploying a private equity model in the public markets. The company has had significant success in the past with its acquisitions of Dynacast, McKechnie, FKI and Elster, all of which have been sold for significant profit on cost. The management team are highly rated due to their demonstrable track record of making money for shareholders. In late 2016 Melrose acquired Nortek, a US based provider of building products. Initial indications are that the improvements to Nortek margins and return on capital employed are ahead of plan, which has propelled the share price higher. With plans to make further enhancing acquisitions we continue to be firm supporters of the Melrose story.

Renishaw designs, develops and manufactures high technology precision measuring and calibration equipment. The business is a global leader in its field with strong patent protection. The company invests heavily in research and development to maintain its market leading technological position. Over the medium term the organic growth delivered has been one of the strongest in the capital goods sector. It has expanded its operations by diversifying into healthcare and additive manufacturing markets, both of which offer long term attractive growth. In the short term the company is enjoying the recovery in industrial capital expenditure, new investment in the smartphone production chain and, as a major exporter, the competitive benefits of a weaker pound. Renishaw, with a very strong balance sheet and a well invested production base, is superbly positioned for the long term.

e2v Technologies manufactures high technology electronic components. Although e2v is a company with significant technology and high margins, it has historically struggled to deliver consistent growth. This led to an undervaluation of the business. The appointment of a new chairman and CEO led to a re-focusing of the business with cost taken out, a new customer-focused approach and de-cluttering of the organisation's processes. After initial positive results from this new approach, the company received an agreed bid from Teledyne Technologies, a US company, at a significant premium.

Clinigen is a global speciality pharmaceutical services business. Its core activity is providing comparator drugs and other services for clinical trials and providing market access for drugs that are difficult to obtain or yet to be licensed. It also has a speciality pharmaceutical division which looks to acquire niche drugs from major pharmaceutical companies, where management think they can enhance performance through additional regulatory approval or increased targeted marketing. The company has seen strong growth since its IPO in 2012 and this is likely to continue given the strength of the management team and the positive structural growth of its end markets.

Principal detractors	12 month return %	Relative contribution %
Evraz1	+99.8	-1.1
Vedanta Resources1	+150.3	-1.1
Essentra	-30.2	-0.9
Kaz Minerals1	+147.4	-0.7
Electrocomponents1	+74.3	-0.6
1 Not owned by the Company. Returns shown are for the seven month period to 31 December 2016 when the stock ceased to be included in the benchmark index.

Evraz is a Russian steel producer. The Company had no holding in Evraz. After a prolonged period of weakness, commodity markets rebounded in 2016 with robust Chinese economic growth and production cutbacks aiding a recovery in oil and metal prices. Consequently the mining sector performed extremely well, after significant underperformance in 2015. The Company has typically had an underweight position in this sector due to the volatile nature of commodity prices, the high leverage these companies usually employ, their position as price takers with little influence over the value of their output and their poor corporate governance.

Vedanta Resources is an Indian diversified oil and metals group. The Company had no holding in Vedanta. The comments made about Evraz also apply to Vedanta Resources.

Essentra is a diversified industrial group involved in the manufacture and distribution of industrial components, cigarette filter production and healthcare packaging. The company had an extremely difficult year as poor integration of acquisitions in the packaging division and delayed and cancelled orders in filters led to a sharp fall in profitability. The CEO was removed and the company sold its Porous Technologies division to reduce debt. After falling significantly, the shares have made a good recovery since the appointment of a well respected new management team. We sold our position towards the year-end as we believe the recent rally in the share price already discounts a significant recovery in profits.

Kaz Minerals is a Kazakhstan based producer of copper. The Company had no holding in Kaz Minerals. The comments made about Evraz also apply to Kaz Minerals.

Electrocomponents distributes electronic components and maintenance products. The Company had no holding in Electrocomponents. The company has performed well, growing profits substantially through a combination of improving end market demand and margin enhancement from rationalisation and cost control.

Portfolio Activity

Trading activity in the portfolio was consistent with an average holding period of 5 years. Our approach is to consider our investments as long term in nature and to avoid unnecessary turnover. The focus has been on adding stocks to the portfolio that have good growth prospects, sound financial characteristics and strong management, at a valuation level that does not reflect these strengths. Likewise we have been employing strong sell disciplines to cut out stocks that fail to meet these criteria.

In the year we have added a number of new positions to our portfolio. These include:-

Avon Rubber is a specialised product supplier into the defence and dairy markets. The company has a very strong position in its core markets, with both offering attractive growth and acquisition opportunities. In protection and defence, the group has a strong global position in the provision of masks and respirators. The

increased focus on homeland security and improving defence spend provide a strong backdrop. In dairy, after a period of weakness, rising milk prices are helping farmers' profitability. This is leading to increased spend on capital items such as manufacturing liners and tubing and electro-mechanical milking components. With a balance sheet in a net cash position, the company is well placed to acquire complementary assets.

Burford Capital is a provider of investment capital and risk solutions for the litigation industry. The company has an integrated business model as it takes both on-balance-sheet risk and derives fee revenues from its fund management business. Litigation is a nascent and growing market where returns are fundamentally uncorrelated to the stock market or business cycle. Burford is the largest player in this market globally. This investment provides us with exposure to structural growth in demand for litigation financing which has been driven by the practical solution it provides to the unfavourable accounting treatment of litigation on corporates and the temporary nature of equity in law firms. Management run a conservative balance sheet which provides optionality given the historically strong track record of generating high returns.

Coats is a global manufacturer of industrial thread. Its products are supplied principally to the clothing and footwear industries. The business was once part of the conglomerate Guinness Peat but multiple divestments by the new management team have focused the business. Operationally the company has been transformed by rationalising production facilities, improving customer service and improving financial returns. The company also inherited significant pension liabilities from its once parent, Guinness Peat, but a recent settlement with the trustees has provided clarity on future payments required. With certainty over its financial position, the strong balance sheet will permit value enhancing acquisitions in the specialist thread area.

Ricardo is an engineering consultant and manufacturer that principally operates in the UK, US and Germany. The company's main expertise is the design of engines for the high performance vehicle and motorsport markets although the group has started to diversify, through strategic M&A, into consulting for the rail, energy

and defence sectors. Ricardo has proven over the years that it is able to organically grow revenues and earnings on a consistent basis, which is testimony to the impressive management team. As Ricardo continues to diversify into new strategic areas, it should become a more versatile and resilient consulting firm.

SIG is a building products distributor with particular focus on insulation, roofing and interiors. The business's principal activities are in the UK, France and Germany. The company has struggled over recent years with anaemic European building markets and competitive pressure in the UK. Management did not cope successfully with these challenges and, even though there were numerous strategic initiatives to improve profitability, the business continued to underperform. This led to a refresh of the executive team with a highly impressive new CEO, Meinie Oldersma, and FD appointed. Their prior experience is highly relevant to SIG and the opportunity to improve financial returns at SIG is significant. If management can achieve their ambitions we believe there is substantial share price upside.

Smart Metering Systems ("SMS") is a UK accredited meter asset manager and provider of energy management services operating nationwide. SMS owns and operates energy meters and provides gas and electricity suppliers with all essential services relating to that meter in return for a rental yield. The company is a dominant player in its field, with only 30 accredited meter managers in the UK, and less than 50% of these companies having nationwide coverage. Returns are attractive as the company generates a rental yield of around 13% on meter assets which are funded through debt costing only 1.5% over Libor. Revenues are recurring, long duration in nature and index linked, which provides inflation protection. Whilst headline leverage looks high, termination costs provide security as energy suppliers are required to pay 1.5 times the outstanding debt on the meter asset should they decide to replace it. An investment in SMS provides us with exposure to at least 5 years of regulatory mandated growth as the Government perseveres with the roll-out of domestic smart meters.

In addition to the companies mentioned above, we invested in a number of initial public offerings (IPOs) in the year. These included Alfa Financial Software, a leading provider of software to the asset leasing industry, Hollywood Bowl, a ten-pin bowling centre operator, Luceco, a manufacturer and distributor of electrical products, UP Global Sourcing, a developer and sourcer of a number of home related brands and Xafinity, a pensions consultant.

To balance the additions to our portfolio, we have disposed of positions in companies which we felt were set for poor price performance. We sold our holding in Carpetright, the floorcovering retailer, where the company has suffered from increased competition and a weaker housing market. We also disposed of our holding in LSL Property Services, the estate agent, due to increased competition from new online entrants and tough trading as housing transactions fell. Other companies we sold due to a belief that they were structurally challenged or suffering from poor operational performance included Dairy Crest, the dairy products group; Laird, the electronic component network infrastructure, wireless connectivity, displays and industrial controls group; Senior, the aerospace and industrial products group; and Motorpoint, the retailer of second hand cars.

We benefited from a level of takeover activity in the year. Three portfolio companies received agreed bids. All the bidders were either foreign corporates or private equity groups. This reflects the open nature of the UK market, the strength of global corporate balance sheets and the low cost of debt. Within our portfolio, takeover bids were received for Atkins (WS), an international engineering consultant, from SNC-Lavalin; e2v Technologies, a manufacturer of high technology electronic components, from Teledyne Technologies; and Exova, a materials testing group, from private equity.

Portfolio Outlook

The following table shows the Company's top 10 stock positions and their active position versus the Numis Smaller Companies Index (excluding investment companies) at the end of May 2017.

Top ten active positions at 31 May 2017	Holding %	Index Weight %	Active Weight %
NMC Health	3.7	-	3.7
Bellway	3.2	-	3.2
Melrose Industries	2.5	-	2.5
Paragon	2.3	0.7	1.5
Intermediate Capital	2.2	-	2.2
Atkins (WS)	2.1	-	2.1
Clinigen	2.1	-	2.1
Renishaw	2.0	-	2.0
Playtech	1.7	-	1.7
Victrex	1.5	-	1.5

A brief description of the largest active positions (excluding NMC Health, Melrose Industries, Clinigen and Renishaw, which are covered earlier) follows:

Bellway is a national UK housebuilder. The UK housing market has seen an impressive recovery in the recent past, due to improving consumer confidence, low interest rates and Government initiatives, particularly Help to Buy. Margins, volumes and profits have been rising strongly. Bellway is looking to exploit these conditions by expanding its national footprint, whilst maintaining a strong land-bank and balance sheet. The outlook for the sector is aided by a benign land market as the number of competitors has reduced from the previous cycle, the structural under-supply of housing in the UK and the capital discipline Bellway and its peers are displaying.

Paragon is principally a provider of buy-to-let mortgages. The company has changed its structure in the last few years by obtaining a banking licence, growing its lending in asset-backed, car finance and specialist residential markets and diversifying its funding sources into the retail market. The company enjoys a very strong capital position, enabling it to pay higher dividends whilst buying back some of its own stock. The introduction of new regulations on complex underwriting should help the specialist lenders like Paragon grow market share, and at a modest premium to asset value, we believe Paragon is good value.

Intermediate Capital is an alternative finance provider and asset manager. It is a leading provider of mezzanine finance to LBO markets. It also owns a highly successful mezzanine, property lending and credit fund management operation. Its portfolio of investments are performing well but the primary growth engine of the business is the fund management operation where it is having real success in growing assets due to the strength of its performance, the quality of the team and underlying demand for its product in an income-hungry world. The management have also boosted the company's return on equity by returning substantial surplus capital.

Atkins (WS) is an international engineering consultant, with operations principally in the UK, US, Middle East and Asia. A new management team has been restructuring the company with low-margin activities sold and operations rationalised. With this restructuring mostly completed, the company is starting to see growth in profitability and future prospects look strong, particularly as infrastructure spending comes back into focus in developed economies. The company also enjoys a cash-rich balance sheet and is looking to deploy this on acquisitions that will augment organic growth. Towards the year-end, Atkins was subject to an agreed bid from SNC Lavalin at a significant premium.

Playtech is one of the world's largest gaming and sports betting software suppliers. The company provides white-label software for online and mobile; casino, poker, bingo, sports betting and live dealer games; and has most recently made acquisitions in the spreadbetting market. Playtech benefits from operating in an industry with high barriers to entry and strong supplier power (platform migrations are very risky for online B2C businesses). This, together with long-term contracts (five to seven years and increasing) and relatively low levels of competition, makes the company well placed to benefit from global growth in online gaming. We expect returns from Playtech to be driven by continued strong earnings momentum and a growing dividend. However, we believe the greatest returns should be made from a market re-rating, driven primarily by an increase in the proportion of regulated earnings and more credit given for its high, sustainable and cash-backed margins.

Victrex is a manufacturer of a speciality thermoplastic PEEK. It is the world leader in its field with a dominant market share. Victrex has shown consistent long-term growth as demand for PEEK has grown as customers look to replace metals with lighter plastics with similar thermal properties. Although demand for PEEK is subject to the vagaries of the economic cycle, longer term its use will continue to increase. Additionally Victrex has developed a very successful medical business with PEEK used particularly in spinal and arthroscopy operations, which are growing independent of the economic cycle. Victrex has recently expanded capacity as there are significant opportunities for growth in the medical, oil and gas, aerospace and smartphone markets and in the longer term, we believe the company will return to its strong growth path.

Market Outlook

The recent UK General Election represented a political gamble that has spectacularly failed for the Conservative Party. Pre-election expectation of a significantly increased majority in the House of Commons have now transformed into a hung Parliament and a minority Government supported by a 'confidence and supply' arrangement with the Democratic Unionist Party. The frailties and complexities of such an arrangement combined with the narrow majority it provides means it is highly unlikely that the current Government will last its full term and indeed there is a reasonable chance that we will have another election in the short to medium term. At the same time, the UK Government is entering into Brexit negotiations with the EU. There is clearly a range of outcomes from these negotiations but what deal the UK will end up with is, at this point, unclear. One potential positive from the recent election is a more conciliatory stance from the UK in these negotiations and a softer Brexit as an outcome.

This political uncertainty will probably make UK consumers cautious. At the same time they are facing the pressure of more expensive imported goods. This has already squeezed consumers' net disposable income as wage inflation fails to match price inflation.

Outside the UK, economic conditions remain mixed, but on balance things seem to be getting better, particularly in the US and Europe. The recent rises in US interest rates have flagged to investors that loose global monetary conditions will at some stage reverse. However the 'normalisation' of monetary policy will probably be a slow and measured process.

In the corporate sector, conditions are intrinsically stronger than they were during the financial crisis of 2008-9. Balance sheets are more robust and dividends are growing. In addition, a large proportion of UK corporate earnings comes from overseas, even among smaller companies, and will be boosted by the devaluation of sterling.

In terms of valuations, the equity market is roughly in line with long term averages. M&A remains a supportive feature for the smaller companies area. If corporate confidence improves, M&A will increase, especially as little or no return can currently be generated from cash and the cost of debt is historically low.

In conclusion, the year under review has been a very good one for the Company. Absolute and relative performance was very strong and our portfolio companies have, overall, performed robustly. Our investments are generally trading well, soundly financed and attractively valued. Additionally, the smaller company market continues to throw up exciting growth opportunities in which the Company can invest. We remain confident in our ability to generate significant value from a consistent and disciplined investment approach.

Neil Hermon

Fund Manager

INVESTMENT PORTFOLIO at 31 May 2017

Company

Principal activities

Valuation £'000

Portfolio %

NMC Health	healthcare provider	27,832	3.70
Bellway	housebuilder	24,021	3.20
Melrose Industries	engineering group	18,901	2.51
Paragon	buy to let mortgage provider	16,879	2.25
Intermediate Capital	mezzanine finance	16,787	2.23
Atkins (WS)	engineering consultancy	15,706	2.09
Clinigen1	pharmaceuticals	15,575	2.07
Renishaw	precision measuring and calibration equipment	15,030	2.00
Playtech	internet gaming software	12,715	1.69
Victrex	speciality chemicals	11,586	1.54
10 largest		175,032	23.28
Scapa1	technical tapes	11,523	1.53
Paysafe	online payment processor	11,512	1.53
John Laing	infrastructure investor	10,805	1.44
Balfour Beatty	international contractor	10,779	1.44
Dechra Pharmaceuticals	veterinary pharmaceuticals	10,541	1.40
Northgate	commercial vehicle hire	10,089	1.34
Sanne	investment management services	10,011	1.33
RWS1	patent translation services	9,952	1.33
Oxford Instruments	advanced instrumentation equipment	9,478	1.26
Spectris	electronic control and process instrumentation	9,407	1.25
20 largest		279,129	37.13
Synthomer	speciality chemicals	9,077	1.21
St Modwen Properties	real estate investment and services	8,956	1.19
Ibstock	bricks manufacturer	8,833	1.19
Aldermore	banks	8,526	1.13
Jupiter Fund Management	investment management company	8,515	1.13
OneSavings Bank	banks	8,451	1.12
Vesuvius	materials technology for steel and foundry industry	8,403	1.12
Aveva Group	design software	8,228	1.09
Cineworld	cinema operator	8,078	1.07
Brewin Dolphin	wealth management	7,788	1.04
30 largest		363,984	48.42
Burford Capital1	litigation finance	7,569	1.01
Euromoney Institutional Investor	business to business information	7,495	1.00
Crest Nicholson	housebuilder	7,420	0.99
Alfa Financial Software	financial services software	7,355	0.98
Countryside	housebuilder	7,322	0.97
AA	roadside assistance	7,239	0.96
Ascential	exhibition organiser and data services	7,098	0.94
Grainger	residential property investor	7,095	0.94
Capital & Regional	retail property investor	6,960	0.93
Eurocell	building products	6,885	0.92
40 largest		436,422	58.06

Company	Principal activities	Valuation £'000	Portfolio %
Consort Medical	healthcare products	6,819	0.91
Hunting	oil equipment and services	6,748	0.90
GB Group1	data intelligence services	6,429	0.85
Gamma Communications1	telecommunication services	6,325	0.84
Conviviality1	beverage wholesaler	6,156	0.82
CLS	real estate investment and services	6,150	0.82
Tarsus Group	exhibition organiser	6,143	0.82
Ted Baker	clothing retailer	6,128	0.81
NCC	IT security	5,834	0.77
Coats	global threads provider	5,798	0.77
50 largest		498,952	66.37
Howden Joinery	kitchen manufacturer and retailer	5,708	0.76
Cairn Energy	oil & gas exploration and production	5,572	0.74
Equiniti	financial services outsourcer	5,482	0.73
Tyman	building products	5,439	0.73
GVC	online gaming operator	5,427	0.72
Polypipe	building products	5,384	0.72
DFS	furniture retailer	5,258	0.70
Avon Rubber	defence and dairy industry products	5,115	0.68
Bodycote	engineering group	4,976	0.66
Zoopla Property Group	online property and energy switching portals	4,896	0.65
60 largest		552,209	73.46
Brown (N) Group	clothing retailer	4,879	0.65
Rotork	process control solutions	4,712	0.63
Tribal Group1	education support services & software	4,660	0.62
Luceco	electrical products	4,655	0.62
Costain	contractor	4,548	0.60
Interserve	international contractor	4,500	0.60
Softcat	software reseller	4,459	0.59
Ricardo	engineering consultancy	4,410	0.59
UP Global Sourcing	branded home products	4,405	0.59
ITE Group	exhibition organiser	4,396	0.58
70 largest		597,833	79.53
Go-Ahead Group	bus and rail group	4,394	0.58
SuperGroup	fashion retailer	4,385	0.58
Helical	office property investor and developer	4,325	0.58
Midwich1	AV equipment distributor	4,129	0.55
SIG	building materials distributor	4,124	0.55
Restore1	office service provider	4,082	0.54
Servelec	healthcare software provider	3,914	0.52
Safestyle1	window replacement retailer	3,905	0.52
SDL	language software service provider	3,884	0.52
RPC	plastic packaging manufacturer	3,861	0.51
80 largest		638,836	84.98

Company	Principal activities	Valuation £'000	Portfolio %
Hollywood Bowl Group	ten pin bowling operator	3,825	0.51
Next Fifteen Communications1	PR and media services	3,700	0.49
Unite Group	student accommodation investor	3,685	0.49
Accesso1	leisure software provider	3,666	0.49
Gym Group	gym operator	3,647	0.49
Fenner	engineering group	3,443	0.46
Faroe Petroleum1	oil & gas exploration and production	3,427	0.46
Lookers	automotive retailer	3,341	0.44
Vectura	respiratory pharmaceuticals	3,333	0.44
Urban & Civic	real estate investment and services	3,312	0.44
90 largest		674,215	89.69
WYG1	engineering consultancy	3,278	0.44
Safestore Holdings	self storage operator	3,269	0.44
Joules1	clothing retailer	3,255	0.43
Elementis	chemicals	3,153	0.42
Abcam1	internet retailer of antibodies	3,084	0.41
Gocompare.com	price comparison website	3,035	0.40
Smart Metering Systems1	energy smart meters	2,953	0.39
Severfield	industrial engineering	2,914	0.39
Medica	radiology services	2,892	0.38
Dunelm	homewares retailer	2,880	0.38
100 largest		704,928	93.77
Xafinity	pension consultant	2,804	0.37
Marshall Motor1	automotive retailer	2,738	0.36
Learning Technologies Group1	e-learning	2,690	0.36
Blancco Technology1	data erasure software	2,615	0.35
Volution	building products	2,571	0.34
Xaar	electronic equipment	2,569	0.34
Spire Healthcare	hospital operator	2,565	0.34
Premier Oil	oil & gas exploration and production	2,541	0.34
Sherborne Investors	speciality finance	2,539	0.34
Xp Power	electrical power products	2,533	0.34
110 largest		731,093	97.25
EMIS1	healthcare IT services	2,456	0.33
Quantum Pharma1	speciality pharmaceuticals	2,435	0.32
Charles Taylor	insurance management services	2,434	0.32
Exova	material testing	2,377	0.32
SQS Software1	software testing	2,326	0.31
Imagination Technologies	semi conductor intellectual property licensing	2,220	0.30
RM	education software and services	2,141	0.28
Digital Barriers1	digital security	1,585	0.21
Koovs1	online fashion retailer	1,419	0.19
SCS	furniture retailer	1,250	0.17
Total equity investments		751,736	100.00

There were no convertible or fixed interest securities at 31 May 2017 (2016: None)

1 quoted on the Alternative Investment  Market (AIM)

PRINCIPAL RISKS AND UNCERTAINTIES

The Board, with the assistance of the Manager, has carried out a robust assessment of the principal risks facing the Company which relate to the activity of investing in the shares of smaller companies that are listed (or quoted) in the United Kingdom. In carrying out this assessment, the Board has considered the market uncertainty arising from the result of the UK referendum to leave the European Union. Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move rapidly and it may not be possible to realise an investment at the Manager's assessment of its value. The companies in which investments are made may operate unsuccessfully, or fail entirely, such that shareholder value is lost. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service. The Board considers regularly the principal risks facing the Company in order to mitigate them as far as practicable. A fuller description of the principal risks and uncertainties follows. With the assistance of the Manager, the Board has drawn up a risk matrix which identifies the key risks to the Company. The Board policy on risk management has not materially changed from last year. The principal risks fall broadly under the following categories:

Investment activity and strategy

The Board reviews investment strategy at each Board meeting. An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may lead to underperformance against the Company's benchmark and the companies in its peer group; it may also result in the Company's shares trading at a wider discount to the net asset value per share. The Board manages these risks by ensuring a diversification of investments and a regular review of the extent of borrowings. The Manager operates in accordance with investment limits and restrictions determined by the Board; these include limits on the extent to which borrowings may be used. The Board reviews its investment limits and restrictions regularly and the Manager confirms its compliance with them each month. The Manager provides the Directors with management information, including performance data and reports and shareholder analysis. The Board monitors the implementation and results of the investment process with the Fund Manager, who attends all Board meetings, and reviews regularly data that monitors risk factors in respect of the portfolio.

Accounting, legal and regulatory

In order to qualify as an investment trust the Company must comply with Section 1158 of the Corporation Tax Act 2010. A breach of Section 1158 could result in the Company losing investment trust status and, as a consequence, capital gains realised within the Company's portfolio would be subject to corporation tax. The Section 1158 criteria are monitored by the Manager and the results are reported to the Directors at each Board meeting. The Company must comply with the provisions of the Companies Act 2006 ("the Companies Act"), and, as the Company's shares are listed for trading on the London Stock Exchange, the Company must comply with the UK Listing Authority's Listing Rules and Disclosure Guidance and Transparency Rules and the Prospectus Rules ("UKLA Rules").

A breach of the Companies Act could result in the Company and/or the Directors being fined or becoming the subject of criminal proceedings. Breach of the UKLA Rules could result in the suspension of the Company's shares which would in turn lead to a breach of Section 1158. The Board relies on its Company Secretary and its professional advisers to ensure compliance with the Companies Act and UKLA Rules.

Operational

Disruption to, or failure of, the Manager's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. Janus Henderson has contracted some of its operational functions, principally those relating to trade processing, investment administration and accounting, to BNP Paribas Securities Services. Details of how the Board monitors the services provided by Janus Henderson and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal control section of the Corporate Governance Statement of the Annual Report.

Financial instruments and the management of risk

By its nature as an investment trust, the Company is exposed in varying degrees to market risk (comprising market price risk, currency risk and interest rate risk), liquidity risk and credit and counterparty risk. An analysis of these financial risks and the Company's policies for managing them are set out in the notes of the Annual Report.

VIABILITY STATEMENT

The Company is a long term investor; the Board believe it is appropriate to assess the Company's viability over a five year period in recognition of the Company's long term horizon and what the Board believe to be investors' horizons, taking account of the Company's current position and the potential impact of the principal risks and uncertainties.

The assessment has considered the impact of the likelihood of the principal risks and uncertainties facing the Company, in particular investment strategy and performance against benchmark, whether from asset allocation or the level of gearing, and market risk, in severe but plausible scenarios, and the effectiveness of any mitigating controls in place.

The Board took into account the liquidity of the portfolio and the borrowings in place when considering the viability of the Company over the next five years and its ability to meet liabilities as they fall due. This included consideration of the duration of the Company's loan and borrowing facilities and how a breach of any covenants could impact on the Company's net asset value and share price.

The Board do not expect there to be any significant change in the current principal risks and adequacy of the mitigating controls in place. Also the Directors do not envisage any change in strategy or objectives or any events that would prevent the Company from continuing to operate over that period as the Company's assets

are liquid, its commitments are limited and the Company intends to continue to operate as an investment trust. Only a substantial financial crisis affecting the global economy could have an impact on this assessment. Whilst there is currently uncertainty in the markets following the UK referendum result to leave the European Union, the Board does not believe that this will have a long term impact on the viability of the Company and its ability to continue in operation.

Based on this assessment, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five year period.

FUTURE DEVELOPMENTS

The future success of the Company is dependent primarily on the performance of its investments, which will to a significant degree reflect the performance of the stock market and the Manager. Although the Company invests in companies that are listed (or quoted) in the United Kingdom, the underlying businesses of those companies are affected by various economic factors, many of an international nature. The Board's intention is that the Company will continue to pursue its investment objective in accordance with its investment policy. Further comment on the outlook for the Company is given in the Chairman's Statement and in the Fund Manager's Report.

RELATED PARTY TRANSACTIONS

The Company's transactions with related parties in the year were with the Directors and the Manager. There have been no material transactions between the Company and its Directors during the year and the only amounts paid to them were in respect of expenses and remuneration for which there were no outstanding amounts payable at the year end. Directors' shareholdings are disclosed in the Annual Report.

In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the provision of sales and marketing services there have been no material transactions with the Manager affecting the financial position of the Company during the year under review. More details on transactions with the Manager, including amounts outstanding at the year end, are given in the notes to the financial statements in the Annual Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES (UNDER DTR 4.1.12)

Each of the Directors confirms that, to the best of his or her knowledge:

• the financial statements, which have been prepared in accordance with IFRS as adopted by the European Union on a going concern basis, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and

• the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

For and on behalf of the Board

Jamie Cayzer-Colvin

Chairman

STATEMENT OF COMPREHENSIVE INCOME

		Year ended 31 May 2017			Year ended 31 May 2016
Notes		Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
2	Investment income	15,988	-	15,988	13,621	-	13,621
3	Other income	172	-	172	91	-	91
	Gains/(losses) on investments held at fair value through profit or loss	-	145,291	145,291	-	(15,596)	(15,596)
	Total income/(expense)	16,160	145,291	161,451	13,712	(15,596)	(1,884)
	Expenses
4	Management and performance fees	(579)	(4,674)	(5,253)	(565)	(1,319)	(1,884)
	Other expenses	(566)	-	(566)	(487)	-	(487)
	Profit/(loss) before finance costs and taxation	15,015	140,617	155,632	12,660	(16,915)	(4,255)
	Finance costs	(387)	(903)	(1,290)	(755)	(1,764)	(2,519)
	Profit/(loss) before taxation	14,628	139,714	154,342	11,905	(18,679)	(6,774)
	Taxation	(10)	-	(10)	(9)	-	(9)
	Profit/(loss) for the year and total comprehensive income/(expense)	14,618	139,714	154,332	11,896	(18,679)	(6,783)
5	Earnings per ordinary share - basic and diluted	19.57p	187.03p	206.60p	15.92p	(25.00p)	(9.08p)

The total column of this statement represents the Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

 

STATEMENT OF CHANGES IN EQUITY

		Year ended 31 May 2017
		Retained earnings
Notes		Share capital £'000	Capital redemption reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
	Total equity at 1 June 2016	18,676	26,745	483,295	17,364	546,080
	Total comprehensive income: Profit for the year	-	-	139,714	14,618	154,332
	Transactions with owners, recorded directly to equity:
6	Ordinary dividends paid	-	-	-	(11,952)	(11,952)
	Total equity at 31 May 2017	18,676	26,745	623,009	20,030	688,460
		Year ended 31 May 2016
		Retained earnings
Notes		Share capital £'000	Capital redemption reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
	Total equity at 1 June 2015	18,676	26,745	501,974	15,926	563,321
	Total comprehensive income: (Loss)/profit for the year	-	-	(18,679)	11,896	(6,783)
	Transactions with owners, recorded directly to equity:
6	Ordinary dividends paid	-	-	-	(10,458)	(10,458)
	Total equity at 31 May 2016	18,676	26,745	483,295	17,364	546,080

 

BALANCE SHEET

Notes			At 31 May 2017 £'000	At 31 May 2016 £'000
	Non current assets
	Investments held at fair value through profit or loss		751,736	595,927
	Current assets
	Receivables		3,761	2,612
	Tax recoverable		19	23
	Cash and cash equivalents		3,829	10,224
			7,609	12,859
	Total assets		759,345	608,786
	Current liabilities
	Payables		(9,314)	(791)
	Bank loans		(31,769)	(32,107)
			(41,083)	(32,898)
	Total assets less current liabilities		718,262	575,888
	Non current liabilities
	Financial liabilities		(29,802)	(29,808)
	Net assets		688,460	546,080
	Equity attributable to equity shareholders
7	Share capital		18,676	18,676
	Capital redemption reserve		26,745	26,745
	Retained earnings:
	Capital reserves		623,009	483,295
	Revenue reserve		20,030	17,364
	Total equity		688,460	546,080
8	Net asset value per ordinary share		921.6p	731.0p

 STATEMENT OF CASH FLOWS

	Year ended
	31 May 2017 £'000	31 May 2016 £'000
Operating activities
Profit/(loss)before taxation	154,342	(6,774)
Add back interest payable	1,290	2,519
(Gains)/losses on investments held at fair value through profit or loss	(145,291)	15,596
Purchases of investments	(156,105)	(158,484)
Sales of investments	145,587	152,700
Increase in receivables	(55)	(150)
(Increase)/decrease in amounts due from brokers	(391)	61
(Increase)/decrease in accrued income	(703)	211
Increase/(decrease) in payables	3,132	(2,350)
Increase/(decrease) in amounts due to brokers	5,393	(242)
Taxation on investment income	(6)	(20)
Net cash inflow from operating activities before
interest and taxation	7,193	3,067
Interest paid	(1,298)	(2,511)
Net cash inflow from operating activities	5,895	556
Financing activities
Equity dividends paid	(11,952)	(10,458)
Repayment of 10.5% Debenture Stock	-	(20,000)
Issue of unsecured loan notes	-	30,000
Repayment of bank loans	(338)	(94)
Net cash outflow from financing activities	(12,290)	(552)
(Decrease)/increase in cash and cash equivalents	(6,395)	4
Cash and cash equivalents at the start of the year	10,224	10,183
Exchange movements	-	37
Cash and cash equivalents at the end of the year	3,829	10,224

 

NOTES TO THE FINANCIAL STATEMENTS

1	Accounting policies - basis of preparation a) Basis of preparation The Henderson Smaller Companies Investment Trust plc (the "Company") is a company incorporated and domiciled in the United Kingdom under the Companies Act 2006. The financial statements of the Company for the year ended 31 May 2017 have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. These comprise standards and interpretations approved by the International Accounting Standards Board ("IASB"), together with interpretations of the International Accounting Standards and Standing Interpretations Committee approved by the IFRS Interpretations Committee ("IFRS IC") that remain in effect, to the extent that IFRS have been adopted by the European Union. The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the revaluation of certain financial instruments held at fair value through profit or loss. The principal accounting policies adopted are set out below. These policies have been applied consistently throughout the year. Where presentational guidance set out in the Statement of Recommended Practice (the "SORP") for investment trusts issued by the Association of Investment Companies (the "AIC") in November 2014 and updated in January 2017 with consequential amendments is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis consistent with the recommendations of the SORP.
2	Investment income						2017 £'000		2016 £'000
	Income from companies listed or quoted in the United Kingdom:
	Dividends						14,253		12,654
	Special dividends						1,164		443
	Property income distributions						571		524
	Total investment income						15,988		13,621
3	Other Income						2017 £'000		2016 £'000
	Bank and other interest						1		1
	Underwriting income (allocated to revenue)1						171		90
							172		91
	1 None of the income receivable from sub-underwriting commitments was allocated to capital during the year (2016: £nil)
		2017			2016
4	Management and performance fees	Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000		Capital return £'000		Total return £'000
	Management fee	579	1,350	1,929	565		1,319		1,884
	Performance fee	-	3,324	3,324	-		-		-
		579	4,674	5,253	565		1,319		1,884
	A summary of the Management Agreement is given in the Strategic Report of the Annual Report.
5	Earnings per ordinary share The earnings per ordinary share figure is based on the net profit for the year of £154,332,000 (2016: loss of £6,783,000) and on 74,701,796 (2016: 74,701,796) ordinary shares, being the weighted average number of ordinary shares in issue during the year. The earnings per ordinary share figure detailed above can be further analysed between revenue and capital, as below: The Company has no securities in issue that could dilute the return per ordinary share. Therefore the basic and diluted earnings per ordinary share are the same.
						2017 £'000		2016 £'000
	Net revenue profit					14,618		11,896
	Net capital profit/(loss)					139,714		(18,679)
	Net total profit/(loss)					154,332		(6,783)
	Weighted average number of ordinary shares in issue during the year					74,701,796		74,701,796
						Pence		Pence
	Revenue earnings per ordinary share					19.57		15.92
	Capital earnings per ordinary share					187.03		(25.00)
	Total earnings per ordinary share					206.60		(9.08)

6	Dividends	Record Date	Pay date	2017 £'000		2016 £'000
	Final dividend: 11.0p (2015:10.0p) for the year ended 31 May 2016	2 September 2016	30 September 2016	8,217		7,470
	Interim dividend: 5.0p (2016:4.0p) for the year ended 31 May 2017	17 February 2017	10 March 2017	3,735		2,988
				11,952		10,458
	Subject to approval at the Annual General Meeting, the proposed final dividend of 13.0p per ordinary share will be paid on 9 October 2017 to shareholders on the register of members at the close of business on 8 September 2017. The proposed final dividend for the year ended 31 May 2017 has not been included as a liability in these financial statements. Under IFRS, the final dividend is not recognised until approved by the shareholders. All dividends have been paid or will be paid out of revenue profits. The total dividends payable in respect of the financial year which form the basis of the test under Section 1158 of the Corporation Tax Act 2010 are set out below:
					2017 £'000		2016 £'000
	Revenue available for distribution by way of dividends for the year				14,618		11,896
	Interim dividend for the year ended 31 May 2017: 5.0p (2016: 4.0p) per ordinary share				(3,735)		(2,988)
	Final dividend for the year ended 31 May 2016: 11.0p (based on 74,701,796 ordinary shares in issue at 9 August 2016)				-		(8,217)
	Proposed final dividend for the year ended 31 May 2017: 13.0p (based on 74,701,796 ordinary shares in issue at 8 August 2017)				(9,711)		-
	Retained revenue for year				1,172		691

7	Share capital	2017 £'000		2016 £'000
	Allotted, issued authorised and fully paid:
	74,701,796 ordinary shares of 25p each (2016: 74,701,796)	18,676		18,676
	During the year the Company made no purchases of its own issued ordinary shares (2016: nil). Since 31 May 2017 the Company has not purchased any ordinary shares.
8	Net asset value per ordinary share
	The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £688,460,000 (2016: £546,080,000) and on the 74,701,796 ordinary shares in issue at 31 May 2017 (2016: 74,701,796). The Company has no securities in issue that could dilute the net asset value per ordinary share. The movement during the year of the net assets attributable to the ordinary shares was as follows:
			2017 £'000	2016 £'000
	Net assets attributable to the ordinary shares at 1 June		546,080	563,321
	Net gains/(losses) for the year		154,332	(6,783)
	Ordinary dividends paid in the year		(11,952)	(10,458)
	Net assets attributable to the ordinary shares at 31 May		688,460	546,080
9	Going Concern The Company's shareholders are asked every three years to vote for the continuation of the Company. An ordinary resolution to this effect was put to the Annual General Meeting ("AGM") held on 23 September 2016 and passed by a substantial majority of the shareholders. The assets of the Company consist almost entirely of securities that are listed (or listed on AIM) and, accordingly, the Directors believe that the Company has adequate financial resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors, the principal risks and other matters discussed in connection with the Viability Statement, the Board has decided that it is appropriate for the financial statements to be prepared on a going concern basis.
10	2017 Financial Statements
	The figures and financial information for the year ended 31 May 2017 are compiled from an extract of the latest financial statements of the Company and do not constitute the statutory accounts for that year. Those financial statements included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. They have not yet been delivered to the Registrar of Companies.
11	2016  Financial Statements
	The figures and financial information for the year ended 31 May 2016 are compiled from an extract of the published financial statements of the Company and do not constitute the statutory accounts for that year. Those financial statements have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.
12	Annual Report
	The Annual Report for the year ended 31 May 2017 will be posted to shareholders in August 2017 and copies will be available thereafter from the Corporate Secretary at the Company's Registered Office, 201 Bishopsgate, London EC2M 3AE.
13	Annual General Meeting The Annual General Meeting will be held on Thursday 5 October 2017 at 11.30am.
14	Website This document, and the Annual Report for the year ended 31 May 2017, will be available on the following website: www.hendersonsmallercompanies.com.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

For further information please contact:

Neil Hermon Fund Manager The Henderson Smaller Companies Investment Trust plc Telephone: [phone]	Sarah Gibbons-Cook Investor Relations and PR Manager Janus Henderson Investors Telephone: [phone]
James de Sausmarez Director and Head of Investment Trusts Janus Henderson Investors Telephone: [phone]

 

END

 

 

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