BlackRock Smaller Companies Trust Plc - Portfolio Update
PR Newswire
London, June 15
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 31 May 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* | 2.7 | 6.7 | 13.4 | 53.6 | 110.8 |
| Share price* | 3.3 | 11.3 | 18.5 | 60.1 | 123.8 |
| Numis ex Inv Companies + AIM Index | 0.8 | 4.0 | 3.6 | 22.0 | 43.7 |
*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): | 1,586.88p |
| Net asset value Capital only(debt at fair value): | 1,578.47p |
| Net asset value incl. Income(debt at par value)1: | 1,600.19p |
| Net asset value incl. Income(debt at fair value)1: | 1,591.78p |
| Share price | 1,475.00p |
| Discount to Cum Income NAV (debt at par value): | 7.8% |
| Discount to Cum Income NAV (debt at fair value): | 7.3% |
| Net yield5: | 1.8% |
| Gross assets2: | £840.8m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 9.8% |
| 2018 Ongoing charges ratio3 | 0.7% |
| 2018 Ongoing charges ratio (including performance fees)4: | 1.0% |
| Ordinary shares in issue6: | 47,879,792 |
1 includes net revenue of 13.31p
2 includes current year revenue
3 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.
4 With effect from 1 March 2018 the Company's management fee and performance fee arrangements have changed. The new fee basis is set out in note 4 on page 53 of the Company's 2018 Annual Report, and the performance fee has been removed. This will impact the Ongoing Charges ratio for the Company. The Ongoing Charges Ratio (both including and excluding any Performance Fee) for the year to 28 February 2018 had the new fee arrangements been in place for the full year is estimated to be 0.77%.
5 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)
6 excludes 2,113,731 shares held in treasury.
| Sector Weightings | % of portfolio |
| Industrials | 33.6 |
| Financials | 19.7 |
| Consumer Services | 13.3 |
| Health Care | 8.1 |
| Technology | 8.0 |
| Consumer Goods | 6.7 |
| Basic Materials | 6.1 |
| Oil & Gas | 4.0 |
| Utilities | 0.5 |
| ----- | |
| Total | 100.0 |
| ===== | |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| Dechra Pharmaceuticals | 1.9 |
| Robert Walters | 1.8 |
| YouGov | 1.7 |
| Avon Rubber | 1.6 |
| Hill & Smith | 1.6 |
| Integrafin | 1.6 |
| CVS Group | 1.6 |
| Big Yellow | 1.6 |
| Ibstock | 1.5 |
| 4imprint Group | 1.5 |
Commenting on the markets, Mike Prentis & Roland Arnold, representing the Investment Manager, noted:
During May the Company's NAV per share rose by 2.7% to 1,586.88p on a capital only basis, outperforming our benchmark index which returned 0.8%; the FTSE 100 Index rose 2.2% on a capital only basis.
Stock selection was the key contributor to performance during the month, with a number of our core holdings providing good updates, whilst sector allocation and gearing also added to relative returns.
Shares in IntegraFin (the operator of the UK savings platform Transact), which we purchased at the recent IPO, rose more than 25% and contributed 0.35% to performance in response to good interim results showing strong inflows onto the platform despite stock market volatility. YouGov announced the acquisition of its remaining 80% stake in global sports research agency SMG Insight. While relatively small, the deal is earnings accretive and is in line with YouGov's strategy of expanding and developing data products for specialised sectors beyond its market research business. Accesso performed well on the back of a positive trading statement ahead of its AGM. The business continues to grow in its leisure end markets, while further diversification, notably through the contract win with Henry Ford Health System in Detroit, highlights the potential for Accesso's innovative technology to benefit both customers and operators, irrespective of the end markets.
Stock specific detractors during May were limited. Fashion brand Superdry was the largest detractor during the month, however we have sized the position to reflect the challenging backdrop for UK consumer facing companies and therefore the holding only detracted from performance by 0.13%. The company issued a disappointing trading update showing that in-store sales had suffered from the bad weather earlier in the year while a shift in sales mix to lower margin wholesale and clearance activity was impacting gross margins.
During the month we have continued to concentrate the portfolio by selling some of our smaller lower conviction holdings, and adding to holdings where we have high conviction, for instance Fuller Smith & Turner. We continue to find interesting opportunities in the IPO market, this month purchasing a new holding in Team17 Group, a global independent video games developer.
15 June 2018
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.
