The information contained in this release was correct as at 30
April 2020. Information on the Company’s up to date net asset
values can be found on the London Stock Exchange Website at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
BLACKROCK SMALLER COMPANIES TRUST PLC (LEI:
549300MS535KC2WH4082)
All information is at 30 April
2020 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* |
13.4 |
-24.5 |
-13.9 |
-3.6 |
33.0 |
Share price* |
17.0 |
-23.7 |
-10.2 |
14.2 |
57.1 |
Numis ex Inv Companies
+ AIM Index |
12.9 |
-22.5 |
-18.6 |
-20.7 |
-5.3 |
*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): |
1,297.94p |
Net asset value Capital only (debt
at fair value): |
1,276.62p |
Net asset value incl. Income (debt
at par value)1: |
1,322.52p |
Net asset value incl. Income (debt
at fair value)1: |
1,301.20p |
Share price |
1,310.00p |
Discount to Cum Income NAV (debt at
par value): |
0.9% |
Discount to Cum Income NAV (debt at
fair value): |
-0.7% |
Net yield2: |
2.4% |
Gross assets3: |
£715.3m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
6.6% |
2019 Ongoing charges
ratio4: |
0.7% |
Ordinary shares in
issue5: |
48,829,792 |
-
includes net revenue of 24.58p.
-
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 1,163,731 shares held in treasury.
Sector
Weightings |
% of
portfolio |
|
|
Industrials |
31.6 |
Financials |
21.4 |
Consumer Services |
16.9 |
Consumer Goods |
10.7 |
Technology |
6.6 |
Health Care |
6.0 |
Basic Materials |
3.5 |
Oil & Gas |
1.9 |
Telecommunications |
0.9 |
Materials |
0.5 |
|
----- |
Total |
100.0 |
|
===== |
Ten Largest Equity
Investments |
|
Company |
% of
portfolio |
|
|
YouGov |
2.3 |
Avon Rubber |
2.1 |
IntegraFin |
2.0 |
Breedon |
1.9 |
Games Workshop |
1.7 |
Stocks Spirits
Group |
1.6 |
Impax Asset
Management |
1.6 |
IG Design Group |
1.5 |
Treatt |
1.5 |
4imprint Group |
1.5 |
Commenting on the markets, Roland
Arnold, representing the Investment Manager noted:
During April the Company’s NAV per share rose by
13.4%1 to 1,297.94p, outperforming our benchmark index,
Numis ex Inv Companies + AIM Index, which returned
12.9%1; for comparison the FTSE 100 Index rose by
4.0%1 (all calculations are on a capital only
basis).
Markets globally rebounded during April, despite the significant
contraction in global economic activity and sharp rise in
unemployment as a result of the lockdowns around the world. Rather
than the inevitable economic slowdown, investor sentiment was
driven more by a focus on the appearance of a flattening curve of
new cases, with many countries beginning to announce measures to
remove restrictions. Meanwhile governments around the world
continued to announce monetary stimulus packages aimed at
supporting their economies during such a marked slowdown in
activity.
Performance in absolute terms during the month benefitted from
the reversal in many shares that had been impacted during the
market falls in the first quarter. However, in relative terms the
portfolio benefitted from the outperformance of many companies that
are best placed to navigate through these challenging times. The
largest contributor to performance was Games Workshop, the creator
of the Warhammer miniatures game. The shares rose in response to a
positive trading update where the company confirmed that online
orders would recommence in May following assessments to ensure
health and safety for staff. Robert
Walters rallied during the month, recouping some of the
recent falls. In a trading update covering the first quarter of
2020, the company highlighted the challenges facing the business
for the second quarter, with all markets except mainland
China in varying forms of
lockdown. However, balance sheet strength and the inherent
operational gearing within the business provides confidence that
the business will be well positioned to capitalise on opportunities
as restrictions begin to ease. Within financials, Impax Asset
Management and Tatton Asset Management were strong contributors to
performance, with the former reporting net inflows during the first
quarter and Tatton confirming another year of growth in revenues
and profits ahead of its final results due to be released in
June.
The largest detractor to performance was defence business,
QinetiQ, which warned that global restrictions to prevent the
spread of COVID-19 would negatively impact revenues and announced
the decision to suspend the full year dividend. Other detractors
were in many cases shares that simply failed to keep pace with the
market rebound, for example 4imprint and IG Design Group. However,
on the last day of the month IG did warn that exceptional costs
related to COVID-19 would impact full year results.
While the market appears to be bouncing between taking the
positives from signs of countries beginning to lift lockdown
restrictions, and negatives from fears of the extent of a
recession, it still goes without saying that the outlook for the
global economy has never been more uncertain. There is no
historical parallel to current events. Even the Global Financial
Crisis of 2008 was, at its heart a banking crisis, something
investors had seen before. Our immediate outlook is therefore that
volatility remains high as COVID-19 continues to dominate global
events. While we are beginning to see lockdowns lifting, shops
reopening and children returning to school, no one knows what the
ultimate duration of the pandemic will be, the duration of
restrictive public health measures, nor the lasting damage that
both will do to the economy as a whole. We certainly don’t pretend
to have the answers and therefore we have not materially changed
positioning.
The impact of COVID-19 is unpredictable, unavoidable and
unprecedented. But it will get better. And this provides us with
confidence in our strategy on a medium-term view. Market volatility
presents us with a fantastic investment opportunity. The Company’s
investment strategy is focussed on quality growth investment
opportunities in smaller companies, a style that has demonstrably
worked for the long-term, and historically periods of sudden
underperformance, such as this, have proven to be excellent
investment opportunities.
1Source: BlackRock as at 30
April 2020
28 May 2020
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.