TIDMBRSC 
 
BLACKROCK SMALLER COMPANIES TRUST PLC 
                (Legal Entity Identifier: 549300MS535KC2WH4082) 
 
          Trading Update and announcement of second interim dividend 
 
CHAIRMAN'S UPDATE 
 
The Company's annual results are normally released in May, with a final 
dividend paid in June.  For the year to 29 February 2020, the release of the 
Company's audited results has been delayed due to a historic technical issue 
that has been identified in the Company's Articles of Association. Whilst the 
issue should be of no significance in the context of the Company's net asset 
value or financial position, your Board is consulting with its advisers to 
determine what, if any,  would be the appropriate remedial action to take. 
 Once the Board reaches a conclusion on this matter, the Company's full results 
will be published, which is expected to occur on or around 30 June 2020. 
 
In the meantime, I wanted to take this opportunity to provide some key 
financial metrics in respect of the year to 29 February 2020 and to update 
shareholders about the final dividend. I have also set out below the actions 
that your Board has taken since the financial year end to protect shareholder 
interests and maintain operational resilience through the extreme market 
volatility that has plagued investors in markets around the world as the 
COVID-19 crisis evolves. 
 
OPERATIONAL SECURITY AND WELL BEING 
The Board has been working closely with BlackRock and the Company's key 
suppliers to minimise the risk that COVID-19 poses to the health and wellbeing 
of all those working on the management and administration of the Company. We 
have developed a series of regular updates to ensure that the Company's 
operations are not affected and that established business continuity plans are 
appropriate and effective. 
 
GEARING 
The Board has reviewed the Company's current range of borrowings and debt 
facilities which comprise the existing GBP15 million debenture which is due to 
expire in 2022; GBP25 million senior unsecured fixed rate private placement notes 
issued in May 2017 at a coupon of 2.74% maturing in 2037; and the new notes 
issued in December 2019 at a coupon of 2.41% maturing in 2044. Shorter-term 
variable rate funding consists of a GBP35 million three-year revolving loan 
facility with Sumitomo Mitsui Banking Corporation Europe Limited and an 
uncommitted overdraft facility of GBP10 million with Bank Of New York Mellon 
(International) Limited. 
 
It continues to be the Board's intention that net gearing will not exceed 15% 
of the net assets of the Company at the time of the drawdown of the relevant 
borrowings. Under normal operating conditions it is envisaged that gearing will 
be within a range of 0%-15% of net assets. The Company's net gearing stands at 
8.8% of net assets as at 2 June 2020. At the year end, the Company's net 
gearing was 5.7% of net assets (2019: 4.9%). 
 
Despite recent market falls, the Company has remained compliant with all 
financial covenants and still maintains ample headroom above the relevant 
thresholds. The Company's borrowings are well within the range of gearing 
limits set by the Company's investment guidelines and will, in our view, allow 
us to take advantage of emerging investment opportunities. 
 
INVESTMENT PORTFOLIO CONSTRUCTION 
Board members have maintained a regular dialogue with our portfolio manager to 
monitor the resilience of the portfolio and the actions that have been taken 
since the outbreak of the pandemic. Monthly updates by the portfolio manager 
continue to be provided and can be found on the Company's website at 
www.blackrock.co.uk/brsc. 
 
FOCUS ON WELL GOVERNED COMPANIES 
Your Company's investment team is very experienced and has available a wide 
range of resources dedicated to the UK smaller companies universe. Their 
history of investing in this sector has shown that one of the best strategies 
to deal with adverse economic and market conditions is to populate the 
portfolio with well-capitalised companies that have strong balance sheets and 
experienced, effective management teams. We believe that the Company's 
portfolio is well diversified by sector and geography, with around half of the 
revenues from portfolio companies being generated from overseas. 
 
THE FINANCIAL YEARED 29 FEBRUARY 2020 
While it is understandable that we should be focused on recent market events, 
it is also important to look back over the year just passed. Your Company's 
remarkable record continued last year as it outperformed the benchmark on an 
annual basis for over fifteen years. Over that period, the net asset value 
(NAV) per share has increased by over 600%, greatly outdistancing the benchmark 
increase of just over 145% (all calculations with income reinvested). The 
Company has also increased its dividends every year for over fifteen years; the 
compound annual increase in dividends paid over the last fifteen years has been 
14% per annum. 
 
PERFORMANCE 
In the year under review the Company's Net Asset Value per share increased by 
11.7%1,2,3, outperforming its benchmark, the Numis Smaller Companies plus AIM 
(excluding Investment Companies) Index, which decreased by 1.4%1. Over the same 
period your Company's share price increased by 11.6%1 to 1,484.00p per share 
compared with the FTSE AIM All Share Index which fell by 5.8%1, the FTSE 250 
Index which rose by 0.8%1 and the FTSE 100 Index which fell by 7.0%1. 
 
The table below demonstrates your Company's consistent outperformance of its 
benchmark over the last fifteen years. 
 
                                             1 Year  3 Years  5 Years        10       15 
                                             change   change   change    Years    Years 
Performance to 29 February 2020                   %        %        %   change   change 
                                                                             %        % 
 
NAV per share1, 2,3                            11.7     26.1     66.1    317.7    458.4 
 
Benchmark1                                     -1.4     -2.0     12.8     79.0     67.5 
 
Share price1                                   11.6     40.0     82.8    405.2    548.0 
 
NAV per share2,3 (with income reinvested)      14.1     33.3     81.4    389.7    605.1 
 
Benchmark (with income reinvested)              1.4      6.2     29.1    131.4    145.2 
 
Share price3 (with income reinvested)          14.0     48.6    101.6    504.5    748.3 
 
1.    Percentages in Sterling terms without income reinvested. 
 
2.    Debt at par. 
 
3.    Alternative Performance Measure. An Alternative Performance Measure is a 
measure of performance or financial position that is not defined in applicable 
accounting standards and cannot be directly derived from the financial 
statements. 
 
RETURNS AND DIVIDS 
The Company's revenue return per share for the year ended 29 February 2020 
increased by 10.3% to 37.13p per share compared with 33.67p per share for the 
previous year. 
 
Regular dividends from portfolio companies rose by 11.0%, while special 
dividends received were 4.2% higher than in the previous year. 
 
In November 2019 the Board declared an interim dividend of 12.80p per share 
(November 2018: 12.00p per share). In normal operating circumstances, the Board 
would declare a final dividend in respect of the year ended 29 February 2020; 
however, given the rescheduled release date for our annual results and the 
delayed Company AGM which will now not be held before July 2020, the Board has 
decided to declare a second interim dividend in lieu of a final dividend. This 
will ensure that the payment timetable anticipated by shareholders can be met 
despite a later AGM date.  Accordingly, the Directors are pleased to announce 
the payment of a second interim dividend of 19.70p per share (2019: 19.20p per 
share), making a total for the year of 32.50p per share, an increase of 4.2% 
over the total dividends of 31.20p per share paid in the previous year. In 
determining the level of dividend the Board is mindful of ensuring that the 
Company retains a buffer of revenue reserves for future years. Your Company has 
now increased its annual dividend every year since 2003. 
 
The second interim dividend will be paid on 29 June 2020 to shareholders on the 
register on 12 June 2020; the ex-dividend date is 11 June 2020. 
 
DISCOUNT 
The Board monitors the Company's share rating closely, and recognises the 
importance to shareholders that the Company's shares do not trade at either a 
significant premium or discount to the underlying NAV per share.  Over the 
course of the year the Company's discount narrowed steadily, with its shares 
eventually moving to trade at a premium for significant periods of time, and 
trading at an average discount of 2.9% to NAV (with debt at fair value) over 
the full year (compared to an average discount of 7.9% for the year to 28 
February 2019). As markets descended into turmoil following the outbreak of 
COVID-19, the Company's shares again moved to trade at a discount, which was 
2.7% as at 1 June 2020. 
 
SHARE ISSUANCE 
During the financial year ended 29 February 2020, the Company issued 950,000 
ordinary shares at an average price of 1,686.84p per share for a total 
consideration of GBP16 million.  The shares were issued at a premium to NAV with 
the objective of maintaining the Company's share rating within a sensible 
range, and providing ongoing market liquidity in a manner that was accretive to 
shareholders. Since 29 February 2020, and up to the close of business on 2 June 
2020, no additional shares have been issued. 
 
At the forthcoming Annual General Meeting the Company will be seeking the 
authority to allot new ordinary shares, or sell ordinary shares from treasury, 
representing up to 10% of the Company's issued ordinary share capital. 
 
OUTLOOK 
Since the financial year end the Company's NAV per share (as at 1 June 2020) 
has decreased by 10.8%1, against a decrease in the benchmark of 9.7%1, and the 
share price has fallen by 9.4%1. 
 
The COVID-19 outbreak, and its rapid spread beyond China, has caused mounting 
concerns over global growth leading to a significant drop in stock markets 
around the world.  This volatility has created dislocations in market 
valuations that are not consistent with the long-term fundamentals of the 
stocks in which we invest; our portfolio management team remains attuned to the 
investment opportunities that may be presented by these dislocations in 
pricing. 
 
These are unprecedented times. The impact of COVID-19 is unpredictable and it 
is impossible at this stage to estimate its scale and duration. However, we 
believe that things will improve in time.   Whilst the outlook remains 
uncertain, the Investment Manager's focus on financially strong businesses with 
robust balance sheets provides us with confidence that the Company's portfolio 
is well placed to weather the storm. The Company's investment strategy remains 
focused 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. 
 
RONALD GOULD 
Chairman 
3 June 2020 
 
PERFORMANCE RECORD FOR THE YEAR ENDED 29 FEBRUARY 2020 (UNAUDITED) 
 
                                                             29             28     Change % 
                                                 February 2020  February 2019 
 
Performance 
 
Net asset value per share (debt at par value)1,4     1,572.55p      1,407.88p         +11.7 
 
Net asset value per share (debt at par value,        1,548.57p      1,386.21p         +11.7 
capital only)1,4 
 
Net asset value per share (debt at fair value)       1,556.41p      1,400.57p         +11.1 
1,2,4 
 
Numis Smaller Companies plus AIM (excluding           5,159.73       5,231.98          -1.4 
Investment Companies) Index1 
 
Ordinary share price                                 1,484.00p      1,330.00p         +11.6 
 
 
 
                                                      Year ended       Year ended           Change 
                                                               29               28               % 
                                                   February 2020    February 2019 
 
Revenue and dividends 
 
Revenue return per share                                  37.13p           33.67p            +10.3 
 
Interim dividend per share                                12.80p           12.00p             +6.7 
 
Second Interim/Final dividend per share                   19.70p           19.20p             +2.6 
 
                                                 ---------------  ---------------  --------------- 
 
Total dividends paid and payable                           32.50p          31.20p             +4.2 
 
                                                        ========         ========         ======== 
 
Assets 
 
Total assets less current liabilities (GBP'000)            847,423          716,287            +18.3 
 
Equity shareholders' funds (GBP'000)                       767,873          674,089            +13.9 
 
Ongoing charges ratio3,4                                    0.7%             0.7%                - 
 
Dividend yield4                                             2.2%             2.3% 
 
Gearing4                                                    5.7%             4.9% 
 
1     Without income reinvested. 
 
2      The basis of calculation for the fair value of the debt is as follows. 
The fair value of the 7.75% debenture stock using the last available quoted 
offer price from the London Stock Exchange as at 29 February 2020 was 121p per 
debenture (2019: 125p), a total of GBP18,150,000 (2019: GBP18,750,000). The fair 
value of the 2.74% loan note has been determined based on a comparative yield 
for UK Gilts for similar duration maturity and spreads, and as at 29 February 
2020 equated to a valuation of 112.21p per note (2019: 97.78p), a total of GBP 
28,053,000 (2019: GBP24,445,000). The fair value of the 2.41% loan note has been 
determined based on a comparative yield for UK Gilts for similar duration 
maturity and spreads, and as at 29 February 2020 equated to a valuation of 
106.14p per note (2019: nil), a total of GBP21,228,000 (2019: GBPnil). 
 
3     Ongoing charges ratio calculated as a percentage of average shareholders' 
funds and using operating expenses, finance costs, transaction costs and 
taxation, in accordance with AIC guidelines. 
 
4     Alternative Performance Measure. An Alternative Performance Measure is a 
measure of performance or financial position that is not defined in applicable 
accounting standards and cannot be directly derived from the financial 
statements. 
 
Sources: BlackRock and Datastream. 
 
3 June 2020 
 
For further information, please contact: 
 
Melissa Gallagher, Managing Director, Closed End Funds, BlackRock Investment 
Management (UK) Limited 
Tel: 020 7743 3893 
 
Roland Arnold, BlackRock Investment Management (UK) Limited 
Tel: 020 7743 5113 
 
Press Enquiries: 
 
Ed Hooper, Lansons Communications - Tel: 020 7294 3620 
 
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com 
 
 
 
END 
 

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