BlackRock Smaller Companies Trust Plc - Portfolio Update

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
 

All information is at 30 April 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*	6.7	13.3	32.6	44.2	117.2
Share price*	9.8	14.5	27.5	32.8	119.7
Numis ex Inv Companies + AIM Index	3.8	8.6	21.3	17.8	57.2

*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):	1,346.11p
Net asset value Capital only(debt at fair value):	1,336.87p
Net asset value incl. Income(debt at par value)**:	1,368.97p
Net asset value incl. Income(debt at fair value)**:	1,359.73p
Share price	1,147.00p
Discount to Cum Income NAV (debt at par value):	16.2%
Discount to Cum Income NAV (debt at fair value):	15.6%
Net yield^^^:	1.8%
Gross assets^:	£705.4m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	8.5%
Ongoing charges ratio^^	0.7%
Ongoing charges ratio (including performance fees):	1.0%
Ordinary shares in issue#:	47,879,792

**includes net revenue of 22.86p

^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	29.7
Consumer Services	20.4
Financials	14.1
Basic Materials	9.2
Consumer Goods	8.6
Health Care	8.4
Technology	6.2
Oil & Gas	2.7
Travel & Leisure	0.4
Utilities	0.3
	-----
Total	100.0
	=====

   

Ten Largest Equity Investments
Company	% of portfolio
CVS Group	2.7
4imprint Group	2.2
Dechra Pharmaceuticals	1.9
JD Sports Fashion	1.9
Avon Rubber	1.7
Hill & Smith	1.6
Advanced Medical Solutions	1.5
Headlam Group	1.5
Workspace Group	1.5
Bodycote	1.4

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

During April the Company’s NAV per share rose by 6.7% to 1346.1p whilst our benchmark index, Numis ex Inv Companies + AIM Index,  rose by 3.8%; the FTSE 100 Index fell by 1.6% (all figures on a capital only basis).

Stock selection was the primary driver of performance during the month, with the contribution from gearing also positive.

Veterinary surgery operator CVS Group continued to perform well after reporting strong results in March, highlighting continued like for like sales growth and significant margin expansion resulting in earnings upgrades. JD Sports Fashion delivered excellent full year results with earnings per share up 55% helped by strong like for like sales growth in the UK. European development accelerated with 54 additional JD Sports fascia stores opened and the first stores opened in Asia. The company also operates with net cash and continues to look well placed. Keywords Studios delivered strong full results with like for like revenues up 24% and earnings up 61%. The company has been taking advantage of the significant market fragmentation, having made eight acquisitions throughout the year, and reiterated the intention to continue expanding its capabilities and geographical presence through M&A.

There were no major individual stock detractors from relative performance during the month. The underperformance of the resources sector saw our holding in Faroe Petroleum detract from relative performance, while Sanne and Walker Greenbank fell despite no negative stock specific news. 

We purchased a new holding in Tristel, a UK manufacturer of infection prevention and contamination control products. The company has created a unique position in high level instrument disinfection in the ambulatory care market, as well as sporicidal surface disinfection in hospitals. Its core chlorine dioxide chemistry is protected by 204 patents and deployed in circa 400 hospitals in the UK while also being internationally exposed with 39% of revenues generated overseas.

23 May 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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