Last checked at 16 Oct 2018 14:48
BlackRock Smaller Companies Trust Plc - Portfolio UpdateBlackRock Smaller Companies Trust Plc - Portfolio Update
PR Newswire
London, October 16
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 30 September 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* | -1.7 | -3.0 | 10.6 | 55.7 | 92.0 |
| Share price* | -3.4 | -6.5 | 15.4 | 63.3 | 87.8 |
| Numis ex Inv Companies + AIM Index | -1.2 | -1.7 | 0.5 | 26.8 | 31.4 |
*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): | 1,575.15p |
| Net asset value Capital only(debt at fair value): | 1,568.34p |
| Net asset value incl. Income(debt at par value)**: | 1,598.31p |
| Net asset value incl. Income(debt at fair value)**: | 1,591.51p |
| Share price | 1,435.00p |
| Discount to Cum Income NAV (debt at par value): | 10.2% |
| Discount to Cum Income NAV (debt at fair value): | 9.8% |
| Net yield^^^: | 1.8% |
| Gross assets^: | £840.0m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 7.0% |
| 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 23.16p
^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 | 31.3 |
| Financials | 21.1 |
| Consumer Services | 12.0 |
| Consumer Goods | 8.2 |
| Health Care | 7.3 |
| Technology | 7.3 |
| Oil & Gas | 6.3 |
| Basic Materials | 6.0 |
| Utilities | 0.5 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| Robert Walters | 1.9 |
| 4imprint Group | 1.9 |
| YouGov | 1.8 |
| Integrafin | 1.8 |
| Big Yellow | 1.6 |
| Premier Asset Management Group | 1.6 |
| Central Asia Metals | 1.5 |
| Accesso Technology | 1.5 |
| Bodycote | 1.5 |
| Polar Capital Holdings | 1.5 |
Commenting on the markets, Mike Prentis, representing the Investment Manager noted:During September the Company’s NAV per share fell by 1.7% to 1,575.15p on a capital only basis, underperforming the benchmark index which fell by 1.2%; the FTSE 100 Index rose by 1.0% on a capital only basis.
September continued to be a difficult month for the Company. In general, the portfolio holdings have continued to trade well, however we have also suffered some stock specific disappointments; the main detractors were Dechra Pharmaceuticals and Alliance Pharma.
Shares in Dechra Pharmaceuticals fell in response to a small earnings downgrade due to the additional cost incurred from Brexit contingency planning. Speciality pharmaceuticals group Alliance Pharma fell after reporting half-year revenues up by 4%, slightly behind expectations. In both cases, a modest disappointment has led to much larger share price falls, detracting 0.6% and 0.3% from relative performance respectively. We still like these companies on a medium-term basis.
Learning Technologies was the largest positive contributor to performance after the company’s half year results beat expectations. The company is involved in the provision of e-learning services and through recent acquisitions has built a strong platform that is well placed to drive further growth.
We have continued to reduce or sell holdings where our conviction has weakened, and added to holdings where we continue to have confidence in the strength of the underlying businesses in the current environment including IG Design and Big Yellow.
Since the month end, markets have fallen sharply, driven by a variety of concerns: rising US bond yields and expectations of further US interest rate increases, global trade wars, the Italian economy and plans to increase the budget deficit, and next Brexit steps. We have seen a large style reversal with growth and high momentum stocks sold off, whereas value shares have held up better, having performed poorly for some time. This has not suited our portfolio. However, we hold our companies because of their long-term growth attractions and the strength of their management teams; these are undiminished.
16 October 2018ENDS
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.