BLACKROCK SMALLER COMPANIES TRUST PLC (LEI:
549300MS535KC2WH4082)
All information is at 31 December
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* |
8.8 |
14.5 |
29.7 |
47.2 |
87.9 |
Share price* |
9.2 |
24.1 |
42.7 |
78.1 |
122.6 |
Numis ex Inv Companies
+ AIM Index |
7.1 |
11.9 |
18.8 |
15.7 |
33.1 |
*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): |
1,684.88p |
Net asset value Capital only (debt
at fair value): |
1,674.81p |
Net asset value incl. Income (debt
at par value)1: |
1,705.91p |
Net asset value incl. Income (debt
at fair value)1: |
1,695.85p |
Share price |
1,712.00p |
Premium to Cum Income NAV (debt at
par value): |
0.4% |
Premium to Cum Income NAV (debt at
fair value): |
1.0% |
Net yield2: |
1.9% |
Gross assets3: |
£897.8m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
2.0% |
2019 Ongoing charges
ratio4: |
0.7% |
Ordinary shares in
issue5: |
48,554,792 |
-
includes net revenue of 21.03p.
-
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 1,438,731 shares held in treasury.
Sector
Weightings |
% of
portfolio |
|
|
Industrials |
32.8 |
Financials |
20.8 |
Consumer Services |
18.2 |
Consumer Goods |
9.2 |
Health Care |
6.1 |
Technology |
5.2 |
Basic Materials |
4.1 |
Oil & Gas |
3.0 |
Telecommunications |
0.6 |
|
----- |
Total |
100.0 |
|
===== |
Ten Largest Equity
Investments |
|
Company |
% of
portfolio |
|
|
4imprint Group |
2.6 |
YouGov |
2.4 |
IntegraFin |
2.2 |
Avon Rubber |
1.8 |
Johnson Service
Group |
1.7 |
Watches of
Switzerland |
1.6 |
Workspace Group |
1.6 |
Bovis Homes Group |
1.5 |
Central Asia
Metals |
1.4 |
Oxford Instruments |
1.4 |
Commenting on the markets,
Roland Arnold, representing the
Investment Manager noted:
During December the Company’s NAV per share rose by
8.8%1 to 1,684.88p on a capital only basis, whilst our
benchmark index, Numis ex Inv Companies + AIM Index, returned
7.1%1; the FTSE 100 Index rose by 2.7%1 (all
calculations are on a capital only basis).
Equity markets continued to rise through to the end of 2019,
responding positively to the signs of progress on US/China trade and furthermore by the outcome of
the UK General Election, where Boris Johnson’s Conservative party
secured a strong majority in Parliament. Unsurprisingly Sterling
continued to rise on the back of the result of the election,
leading to domestic businesses and UK small & mid-cap companies
outperforming during the month.
While UK domestics drove the market higher during the month, the
Company’s outperformance came from a broad range of businesses
rather than a basket of sterling earners. For example, 4imprint,
which generates almost 100% of its earnings from the US, was a top
contributor to performance. The largest contributor to performance
during the month was specialist sustainable investing fund manager,
Impax Asset Management. The shares rallied in response to strong
full year results that were ahead of expectations, as investor
demand for sustainable products continues build traction. Watches
of Switzerland reported strong
interim results with upgrades, whilst also announcing the
acquisition of four new showrooms. Shares in The Pebble Group rose
following its IPO (Initial Public Offering) during the month, and
also benefitted from some of our more domestic holdings
including Renew and Ibstock.
Of the largest detractors to performance, a number were domestic
facing businesses that we do not own, which simply received a
post-election boost, for example, Dunelm and Frasers Group
(previously Sports Direct). Importantly, and as we have alluded to
in recent reports, the result of the election does not change our
view on many of these businesses and we will not be chasing any
sterling led rallies. Shares in AB Dynamics, the manufacturer of
testing products for the automotive industry, fell in response to
full year results which although highlighted strong profit growth,
warned of margin constraints in their business and challenges
facing their customers in the automotive industry.
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, this outcome
could result in increased business confidence, and subsequently
result in a return/uptick in corporate spending. However, while the
UK is undoubtably in better position post the election, the path to
Brexit remains complicated. Meanwhile US/China trade negotiations, which we believe
will be a far more significant driver of equity markets, may cause
further volatility. We therefore 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.
1Source: BlackRock as at 31
December 2019
23 January 2020
Latest information is available by typing
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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.