BlackRock Smaller Companies Trust Plc - Portfolio Update
PR Newswire
London, September 26
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI: 549300MS535KC2WH4082)
All information is at 31 August 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* | -1.9 | -3.4 | -9.0 | 37.1 | 59.4 |
| Share price* | 0.9 | -0.1 | -5.1 | 57.5 | 76.1 |
| Numis ex Inv Companies + AIM Index | -3.0 | -3.8 | -12.1 | 7.9 | 11.5 |
*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): | 1,459.16p |
| Net asset value Capital only(debt at fair value): | 1,445.61p |
| Net asset value incl. Income(debt at par value)1: | 1,481.35p |
| Net asset value incl. Income(debt at fair value)1: | 1,467.79p |
| Share price | 1,410.00p |
| Discount to Cum Income NAV (debt at par value): | 4.8% |
| Discount to Cum Income NAV (debt at fair value): | 3.9% |
| Net yield2: | 2.2% |
| Gross assets3: | £759.0m |
| Gearing range as a % of net assets: | 0-15% |
| Net gearing including income (debt at par): | 4.9% |
| 2019 Ongoing charges ratio4: | 0.7% |
| Ordinary shares in issue5: | 47,879,792 |
includes net revenue of 22.19p.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 interim dividend of 12 pence per share (announced on 29 October 2018, ex-dividend on 8 November 2018) and the final dividend of 19.20 pence per share, (announced on 3 May 2019, ex-dividend on 16 May 2019).
includes current year revenue.
As reported in the Annual Financial Report for the year ended 28 February 2019 the Ongoing Charges Ratio (OCR) was 0.7%. The OCR is calculated as a percentage of net assets and using operating expenses, excluding performance fees, finance costs and taxation.
excludes 2,113,731 shares held in treasury.
| Sector Weightings | % of portfolio |
| Industrials | 29.9 |
| Financials | 22.0 |
| Consumer Services | 15.8 |
| Consumer Goods | 9.0 |
| Health Care | 7.9 |
| Technology | 5.8 |
| Basic Materials | 5.0 |
| Oil & Gas | 4.3 |
| Telecommunications | 0.3 |
| ----- | |
| Total | 100.0 |
| ===== |
| Ten Largest Equity Investments | |
| Company | % of portfolio |
| 4imprint Group | 2.6 |
| YouGov | 2.5 |
| IntegraFin | 2.1 |
| Dechra Pharmaceuticals | 1.7 |
| Liontrust Asset Management | 1.7 |
| Big Yellow | 1.7 |
| Avon Rubber | 1.7 |
| Johnson Service Group | 1.7 |
| Fuller Smith & Turner - A Shares | 1.7 |
| Advanced Medical Solutions | 1.6 |
Commenting on the markets, Roland Arnold, representing the Investment Manager noted:
During August the Company's NAV per share fell by 1.9%1 to 1,459.16p, whilst our benchmark index, Numis ex Inv Companies + AIM Index, returned -3.0%1; the FTSE 100 Index fell by 5.0%1 (all calculations are on a capital only basis).
Equity markets globally fell during August as ongoing concerns around the global trade uncertainties and weakening data, particularly in the US, continued to weigh on markets with intra-day market volatility being heavily influenced by the ongoing newsflow surrounding trade tensions. Against this backdrop positive company updates and stock specifics drove the Company's relative outperformance during the month.
Shares in Avon Rubber rallied after the company agreed to acquire the ballistic-protection business from US peer, 3M. The division manufactures bulletproof vests and helmets for the US army and the acquisition should increase the pace of the company's expansion into global military and law enforcement markets. Shares in self-storage operator, Big Yellow, rose in response to broker upgrades citing the structural tailwinds facing the UK self-storage industry which should provide resilience during times of uncertainty, a view that we would also agree with. Fuller Smith & Turner benefitted from a slightly improving consumer outlook against a backdrop of a reducing likelihood of a no-deal Brexit, whilst pubs as a sector also received a boost off the back of the bid for Greene King. YouGov performed well after the company provided a trading update for the year ended 31 July 2019 confirming another strong year of revenue and profit growth which will be comfortably ahead of expectations. The company continues to deliver against its strategic objectives and revenue continues to outpace the rest of the market research sector.
Shares in Gooch & Housego continued to fall during August. The company reported interim results in June which disappointed the market, warning that full year profits would be less than expected due to challenges in the industrial laser market caused by the US/China trade tensions and a cyclical downturn. The share price volatility has been further exacerbated due to the liquidity of the shares. Polar Capital Holdings gave back some of its recent share prices gains. The shares have performed well in recent months after reporting positive net inflows, and the business continues to demonstrate how fund performance and strategy can triumph over price discounting in generating positive fund flows.
August was once again a reminder of how vulnerable equity markets around the world are to macroeconomic newsflow, whether that be releases of economic data, developments in the US/China trade tensions or Brexit. As we have alluded to in recent reports, at times like these we believe that focussing on financially strong companies with strong market positions will be a key to delivering strong performance for clients; these the type of businesses that our portfolio predominantly consists of. We therefore remain confident in the outlook for the companies in our portfolio and their ability to navigate the current economic environment.
1Source: BlackRock as at 31 August 2019
26 September 2019
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.
