Last checked at 3 Jun 2019 17:53
BlackRock Smaller Companies Trust Plc - Portfolio UpdateBlackRock Smaller Companies Trust Plc - Portfolio Update
PR Newswire
London, June 3
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 30 April 2019 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* | 6.0 | 10.7 | -2.4 | 48.5 | 61.5 |
| Share price* | 6.8 | 12.6 | 2.1 | 62.0 | 68.8 |
| Numis ex Inv Companies + AIM Index | 3.8 | 5.1 | -7.6 | 18.1 | 14.7 |
*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): | 1,507.66p |
| Net asset value Capital only(debt at fair value): | 1,499.45p |
| Net asset value incl. Income(debt at par value)1: | 1,539.15p |
| Net asset value incl. Income(debt at fair value)1: | 1,530.95p |
| Share price | 1,458.00p |
| Discount to Cum Income NAV (debt at par value): | 5.3% |
| Discount to Cum Income NAV (debt at fair value): | 4.8% |
| Net yield4: | 2.1% |
| Gross assets2: | £786.6m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 5.6% |
| 2019 Ongoing charges ratio (actual)3 | 0.7% |
| 2019 Ongoing charges ratio (restated)3: | 0.7% |
| 2018 Ongoing charges ratio (including performance fees)3 | 0.7% |
| Ordinary shares in issue5: | 47,879,792 |
includes net revenue of 31.49p
includes current year revenue
As reported in the Annual Financial Report for the year ended 28 February 2019 the Ongoing Charges Ratio (OCR) for the year to 28 February 2019 was 0.7%. The OCR 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 the final dividend of 19.20 pence per share, (announced on 2 May 2019, ex-dividend on 16 May 2019) and the interim dividend of 12.00 pence per share (announced on 29 October 2018 and gone ex-dividend on 8 November 2018)
excludes 2,113,731 shares held in treasury.
| Sector Weightings | % of portfolio |
| Industrials | 30.5 |
| Financials | 23.1 |
| Consumer Services | 15.4 |
| Health Care | 7.8 |
| Consumer Goods | 7.1 |
| Basic Materials | 5.7 |
| Oil & Gas | 5.5 |
| Technology | 4.3 |
| Telecommunications | 0.3 |
| Utilities | 0.3 |
| ----- | |
| Total | 100.0 |
| ===== |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| 4imprint Group | 2.8 |
| IntegraFin | 2.0 |
| Robert Walters | 1.8 |
| YouGov | 1.8 |
| Advanced Medical Solutions | 1.8 |
| Polar Capital Holdings | 1.7 |
| Liontrust Asset Management | 1.7 |
| Central Asia Metals | 1.6 |
| Fuller Smith & Turner – A Shares | 1.6 |
| Big Yellow | 1.6 |
Commenting on the markets, Mike Prentis and Roland Arnold, representing the Investment Manager noted:During April the Company’s NAV per share rose by 6.0%1 to 1,507.66p, whilst our benchmark index, Numis ex Inv Companies + AIM Index, rose 3.8%1; the FTSE 100 Index rose by 1.9%1 (all calculations are on a capital only basis).
The UK market continued to rise for a fourth consecutive month in April, however there was a wide performance dispersion amongst shares during the month. As a result the Company outperformed the benchmark helped by good stock selection, with three of the top five contributors coming from the underperformance of shares that we do not own, while our holdings in AB Dynamics and Trisfast both contributed more than 30 basis points to relative performance.
AB Dynamics, the designer and manufacturer of testing products for the automotive industry, reported strong interim results, beating market expectations, coupled with a positive outlook for the remainder of the year. The move to more autonomous vehicle technologies has driven, and will continue to drive, an increase in research and development spend in the automotive industry; AB Dynamics is well placed to benefit from this trend. Meanwhile the business continues to invest for growth, improving operational efficiencies and growing its international footprint. Shares in Trifast rallied in response to a positive trading update showing strong revenue growth across all regions with underlying profit finishing the year ahead of management’s expectations. The company commented on the challenging macroeconomic backdrop, however we remain confident that the business is in good shape due to recent contract wins and a solid pipeline.
Stock specific detractors were limited during the month. The Company did suffer from one disappointment from infrastructure services provider, Nexus Infrastructure. In a trading update the company warned that delays and changes to customer build programmes coupled with cost and pricing pressures would impact revenues and margins, materially reducing profits for the full year.
Having reduced the Company’s gearing in recent months in response to heightened volatility, we have more recently been reinvesting some of the cash raised back into attractive opportunities including new purchases in Loungers and FairFX.
Despite ongoing economic uncertainty, we continue to have confidence in the outlook for the companies in our portfolio given our exposure to market leading global businesses, which are operating in attractive end markets and run by strong management teams. As we progress through to the later stages of the economic cycle we take comfort in the merits of our proven investment process over the long term.
1As at 30 April 2019
3 June 2019ENDS
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.