Last checked at 21 Sep 2017 14:26
BlackRock Smaller Companies Trust Plc - Portfolio UpdateBlackRock Smaller Companies Trust Plc - Portfolio Update
PR Newswire
London, September 21
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 31 August 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* | 2.5 | 2.0 | 34.1 | 55.9 | 143.6 |
| Share price* | 3.0 | -0.4 | 38.4 | 54.8 | 148.9 |
| Numis ex Inv Companies + AIM Index | 1.2 | 0.7 | 20.4 | 24.5 | 68.3 |
*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): | 1,427.61p |
| Net asset value Capital only(debt at fair value): | 1,418.75p |
| Net asset value incl. Income(debt at par value)**: | 1,447.21p |
| Net asset value incl. Income(debt at fair value)**: | 1,438.35p |
| Share price | 1,239.50p |
| Discount to Cum Income NAV (debt at par value): | 14.4% |
| Discount to Cum Income NAV (debt at fair value): | 13.8% |
| Net yield^^^: | 1.7% |
| Gross assets^: | £757.6m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 9.5% |
| 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 19.60p
^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 | 30.9 |
| Consumer Services | 16.1 |
| Financials | 13.9 |
| Consumer Goods | 10.2 |
| Basic Materials | 8.9 |
| Health Care | 8.7 |
| Technology | 8.1 |
| Oil & Gas | 2.9 |
| Utilities | 0.3 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| CVS Group | 2.2 |
| 4imprint Group | 2.1 |
| Dechra Pharmaceuticals | 2.0 |
| Advanced Medical Solutions | 1.6 |
| Bodycote | 1.5 |
| Hill & Smith | 1.5 |
| Avon Rubber | 1.5 |
| Headlam Group | 1.4 |
| KAZ Minerals | 1.4 |
| Robert Walters | 1.4 |
Commenting on the markets, Mike Prentis, representing the Investment Manager noted:During August the Company’s NAV per share rose by 2.5% to 1427.61p on a capital only basis, whilst our benchmark (Numis ex Inv Companies + AIM Index) rose by 1.2%; the FTSE 100 Index returned 1.6% (all performance figures are on a capital only basis and net of ongoing charges and any applicable performance fees).
Stock selection was the primary driver of outperformance during the month, while sector allocation and gearing also contributed positively.
The largest positive contributor during the month was US-focussed marketing materials supplier 4imprint. The company’s first half for the period ending 1 July 2017 was ahead of expectations showing continued strong organic revenue growth, and better sales in May and June resulted in broker upgrades to the full year numbers. Shares in Keywords Studios continued to perform well after reporting preliminary results in the previous month which showed strong growth in revenues and profits. Copper miner Kaz Minerals reported interim results showing earnings and costs better than expected helped by a higher copper price, whilst the company also raised production guidance for the full year. Kaz remains the fastest growing copper miner with costs that are among the lowest in the world.
On the negative side, System1, formerly Brainjuicer, which helps global companies with their marketing and advertising plans, warned of a slowdown in first half revenues with profits before tax for the full year expected to be down by 10% to 15% year-on-year. The company pointed to reduced marketing spend from their customers and non-recurrence of one-off projects from the previous year as the cause of the slowdown.
Activity during August included a new purchase in Stock Spirits, a spirits company with profits mainly generated in Poland and the Czech Republic. We had a second good meeting with management. We also added to our holding in UK brick manufacturer Ibstock, which we believe looks well set to benefit from strength in new housing volumes in the UK.
21 September 2017ENDS
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.