BLACKROCK SMALLER COMPANIES TRUST PLC
(LEI: 549300MS535KC2WH4082)
All information is at 30 November
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* |
5.4 |
6.1 |
13.8 |
41.8 |
75.9 |
Share price* |
7.3 |
11.2 |
28.5 |
74.6 |
105.0 |
Numis ex Inv Companies
+ AIM Index |
4.0 |
5.7 |
5.0 |
12.6 |
24.4 |
*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): |
1,548.49p |
Net asset value Capital only (debt
at fair value): |
1,536.99p |
Net asset value incl. Income (debt
at par value)1: |
1,566.30p |
Net asset value incl. Income (debt
at fair value)1: |
1,554.80p |
Share price |
1,568.00p |
Premium to Cum Income NAV (debt at
par value): |
0.1% |
Premium to Cum Income NAV (debt at
fair value): |
0.8% |
Net yield2: |
2.0% |
Gross assets3: |
£799.7m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
2.5% |
2019 Ongoing charges
ratio4: |
0.7% |
Ordinary shares in
issue5: |
47,879,792 |
-
includes net revenue of 17.81p.
-
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 19.20
pence per share, (announced on 03 May
2019, ex-dividend on 16 May
2019) and the interim dividend of 12.8 pence per share (announced on 5 November 2019, ex-dividend on 14 November 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 |
32.3 |
Financials |
20.8 |
Consumer Services |
16.8 |
Consumer Goods |
9.1 |
Health Care |
6.5 |
Technology |
5.3 |
Oil & Gas |
4.2 |
Basic Materials |
4.2 |
Telecommunications |
0.8 |
|
----- |
Total |
100.0 |
|
===== |
Ten Largest Equity
Investments |
|
Company |
% of
portfolio |
|
|
4imprint Group |
2.6 |
YouGov |
2.4 |
IntegraFin |
2.1 |
Avon Rubber |
1.9 |
Workspace Group |
1.8 |
Johnson Service
Group |
1.8 |
Oxford Instruments |
1.7 |
Big Yellow |
1.6 |
Central Asia
Metals |
1.5 |
Bovis Homes Group |
1.5 |
Commenting on the markets, Roland
Arnold, representing the Investment Manager noted:
During November the Company’s NAV per share rose by
5.4%1 to 1,548.49p, whilst our benchmark index, Numis ex
Inv Companies + AIM Index, returned 4.0%1; the FTSE 100
Index rose by 1.4%1 (all calculations are on a capital
only basis).
The equity market continued to rise during the month despite
ongoing geopolitical risks. Trade negotiations between the US and
China were yet to be concluded,
but the month was absent of any further escalation in tariffs and
sentiment was buoyed throughout the month with hopes of a deal. In
the UK, the election meant domestic politics, rather than Brexit,
dominated headlines. Sterling continued to strengthen and domestic
shares rallied in anticipation of a Conservative majority in
Parliament.
The largest contributor during the month was Oxford Instruments,
which rose after the company reported strong growth in half-year
revenues and profits accompanied with a positive outlook for the
second half of the year. DiscoverIE Group, the maker of customised
electronics, reported a 22% rise in first half profits with
improving margins. Despite some challenging market conditions,
orders into the second half have remained strong and the group
remains on track to meet full year expectations, which resulted in
broker upgrades. Shares in Consort Medical rallied in response to
the proposed acquisition from Swedish company, Recipharm. Bodycote
added to performance after issuing a positive trading update,
highlighting an improving trend on first half performance.
Fuller Smith & Turner fell after the company warned that
costs associated with the sale of its brewing business have been
materially higher than expected. As a result, profits before tax
are expected to be unchanged from last year. Eco Animal Health
Group fell after the company issued a profit warning in response to
a sharp slowdown in sales in China, where demand has fallen sharply in
response to the African Swine Fever epidemic that has significantly
reduced the pig herd and where the impact on revenues was far
greater than we had anticipated. The company’s decision to maintain
the cost base, so they are well placed to benefit from the recovery
in demand once the outbreak is contained meant the reduction in
revenues had a disproportionate impact on profitability.
The significant Conservative majority in the General Election
should begin to remove the cloud that has been hanging over the UK
equity market. As a result of the increased stability in
Government, the political risk premium is certainly eroding and we
would expect this to clear the way for fundamentals to be the key
driver to returns. In the mid to long-term, we would expect
this outcome to result in increased business confidence, and
subsequently result in a return/uptick in corporate spending. We
would expect this to be beneficial to our portfolio given our
exposure to high quality, well capitalised companies, that have
capital available to invest for growth. In recent months we have
been adding to our domestic exposure through purchases of Pets At
Home and OneSavings Bank, for example, but these purchases were
based on the underlying fundamentals of these businesses, rather
than a deliberate attempt to increase our exposure to the UK. Given
our focus on bottom up fundamentals, we would therefore not expect
to chase any subsequent sterling rally, much of which had already
happened ahead of the election result. As stated many times in the
past, our approach to portfolio construction will remain focussed
on bottom-up company fundamentals, with a bias towards high quality
market leading global businesses, which are operating in attractive
end markets and run by strong management teams.
23 December 2019
1Source: BlackRock as at 30
November 2019
ENDS
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"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.