Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
 

All information is at 30 September 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* -0.3 5.4 29.9 61.2 134.1
Share price* 0.3 4.9 33.2 59.2 141.8
Numis ex Inv Companies + AIM Index 0.2 3.9 18.1 29.4 63.0

*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): 1,423.73p
Net asset value Capital only(debt at fair value): 1,416.62p
Net asset value incl. Income(debt at par value)**: 1,445.25p
Net asset value incl. Income(debt at fair value)**: 1,438.14p
Share price 1,243.00p
Discount to Cum Income NAV (debt at par value): 14.0%
Discount to Cum Income NAV (debt at fair value): 13.6%
Net yield^^^: 1.7%
Gross assets^: £756.6m
Gearing range as a % of net assets: 0-15%
Net gearing including income (debt at par): 9.6%
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 21.52p

^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 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 32.4
Consumer Services 14.8
Financials 14.7
Consumer Goods 9.7
Health Care 8.5
Technology 8.4
Basic Materials 8.1
Oil & Gas 3.0
Utilities 0.4
-----
Total 100.0
=====

   

Ten Largest Equity Investments
Company % of portfolio
CVS Group 2.2
Dechra Pharmaceuticals 2.2
4imprint Group   1.8
Robert Walters 1.6
Hill & Smith 1.5
Avon Rubber 1.5
Advanced Medical Solutions 1.5
Accesso Technology 1.4
Restore 1.4
Big Yellow 1.4

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

During September the Company’s NAV per share fell by -0.3% to 1423.7p on a capital only basis, whilst the benchmark index rose by 0.2%; the FTSE 100 Index returned -0.8%.

Stock selection detracted from relative performance during the month, while sector allocation contributed positively.

The underperformance during the month was predominantly driven by a reversal in the share prices of a number of our recent strong performing holdings. A change in market sentiment towards value over growth, coupled with  foreign currency moves saw our holdings in 4imprint, Advanced Medical Solutions and Kaz Minerals all detract from performance during the month. The largest single stock detractor during the month was UP Global Sourcing which fell after the company issued a trading statement warning of a tougher outlook for retailers and therefore revenue growth for the full year being unlikely as retailers are exercising caution with regard to non-food buying.

Ticketing technology solutions provider Accesso was the largest contributor during the month. The company reported solid interim results showing continued momentum in the business, growing revenues organically while recent acquisition Ingresso also showed strong growth. Veterinary surgery operator CVS Group reported strong full year results, delivering profit and revenue growth ahead of expectations, with a number of brokers putting through upgrades on the back of this continued delivery. Johnson Service Group’s interim results showed continued strong organic revenue growth, while the successful integration of recent acquisitions resulted in brokers to upgrade EPS forecasts. CEO Chris Sander announced his decision to retire in the first half of 2018, after 33 years with the group, however he leaves at a time when the business is in good shape, with a strong balance sheet to support the current strategy.

Activity during September included a new purchase in SuperGroup, the distinctive fashion retailer behind the Superdry brand. We purchased a new holding in Learning Technologies, a company engaged in the provision of e-learning services.
 

16 October 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.

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