The information contained in this release was correct as at
30 June 2021.
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 June
2021 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* |
1.0 |
11.8 |
52.2 |
27.7 |
121.8 |
Share price* |
-0.6 |
9.3 |
53.0 |
27.2 |
142.6 |
Numis ex Inv Companies
+ AIM Index |
-1.3 |
5.4 |
49.9 |
18.3 |
61.2 |
*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): |
2,073.14p |
Net asset value Capital only (debt
at fair value): |
2,062.44p |
Net asset value incl. Income (debt
at par value)1: |
2,087.22p |
Net asset value incl. Income (debt
at fair value)1: |
2,076.53p |
Share price: |
1,952.00p |
Discount to Cum Income NAV (debt at
par value): |
6.5% |
Discount to Cum Income NAV (debt at
fair value): |
6.0% |
Net yield2: |
1.7% |
Gross assets3: |
£1,113.8m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
8.4% |
Ongoing charges ratio
(actual)4: |
0.8% |
Ordinary shares in
issue5: |
48,829,792 |
|
|
-
Includes net revenue of 14.08 p
-
Yield calculations are based on dividends announced in the last
12 months as at the date of release of this announcement, and
comprise the first interim dividend of 12.8
pence per share (announced on 5
November 2020, ex-dividend on 12
November 2020, paid on 26 November
2020) and the final dividend of 20.5
pence per share (announced on 7 May
2021, ex-dividend on 20 May
2021, paid on 18 June
2021).
-
Includes current year revenue.
-
As reported in the Annual Financial Report for the year ended
28 February 2021 the Ongoing Charges
Ratio (OCR) was 0.8%. 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 ordinary shares held in treasury.
Sector Weightings |
% of
portfolio |
Industrials |
30.4 |
Consumer Discretionary |
21.4 |
Financials |
16.2 |
Consumer Staples |
10.9 |
Technology |
7.2 |
Basic Materials |
5.2 |
Energy |
3.6 |
Health Care |
3.1 |
Telecommunications |
1.6 |
Real Estate |
0.4 |
|
----- |
Total |
100.0 |
|
===== |
|
|
|
Country Weightings |
% of
portfolio |
United Kingdom |
98.4 |
United States |
1.2 |
Guernsey |
0.4 |
|
|
|
----- |
Total |
100.0 |
|
===== |
|
|
Ten Largest Equity
Investments
Company |
% of
portfolio |
Watches of Switzerland |
2.5 |
Treatt |
2.3 |
Impax Asset Management |
2.2 |
CVS Group |
2.1 |
Breedon |
1.9 |
Oxford Instruments |
1.7 |
Pets At Home |
1.6 |
Integrafin |
1.6 |
Gamma Communications |
1.6 |
YouGov |
1.6 |
|
Commenting on the markets, Roland
Arnold, representing the Investment Manager noted:
During June the Company’s NAV per share rose by 1.0%1 to
2,073.14p , outperforming our benchmark index, Numis ex Inv
Companies + AIM Index, which fell by -1.3%1; for
comparison the FTSE 100 Index rose by 0.2%1 (all figures
are on a capital only basis).
Fresh concerns around the presence of the Delta variant of
COVID-19 led UK small & mid-caps lower during June, while more
defensive large cap indices moved marginally higher. Early in the
month, OPEC (Organization of the Petroleum Exporting Countries) and
its allies agreed to continue relaxing curbs on oil production
signalling their confidence in improving oil demand and a drop in
the global supply glut; oil prices rallied as a result. Despite
another strong inflation print in the US, bond yields fell as
investors focused on the transitory drivers of this inflationary
spike. This view was reenforced by the FOMC (Federal Open Markets
Committee) meeting during the month. Towards the end of the month,
concerns began to mount that the global recovery may slow as the
Delta variant of COVID-19 spread more widely. June’s flash UK PMIs
(Purchasing Managers’ Index) suggested a modest cooling in the pace
of the recovery in activity as the impact of the initial
re-openings faded slightly. UK companies are also increasingly
reporting some shortages in finding new staff, particularly in
sectors heavily affected by COVID-19.
The Company was able to buck the trend of the falling market
during June as a result of a number of core portfolio holdings
continuing to deliver impressive trading updates. Shares in
designer and manufacturer of customised electronics to industry,
DiscoverIE, rose in response to positive full year results. After a
challenging first half, the strong recovery in the second half of
the year, and disciplined management of expenditure resulted in
earnings for the year beating expectations. FTSE 250 listed asset
manager, Liontrust, saw its shares reach an all-time high after it
reported that profit before tax more than doubled year on year. The
company has seen strong inflows, helped by the tailwind behind ESG
(Environmental, Social, and Governance) strategies, a trend that
looks well set to continue over the coming years. Shares in Oxford
Instruments rose after reporting very strong results and veterinary
group, CVS, also added to relative performance.
At a sector level, our underweight positioning in miners was
beneficial; however, our holding in Central Asia Metals was the
largest single detractor to performance. Shares in On the Beach
slumped after the company reported weak results as the impact of
the pandemic continues to weigh on trading and investors worried
about the timing of recovery, given further travel restrictions. We
continue to believe that On the Beach will be a market share winner
as global travel resumes and we have therefore maintained the
position. Renewed concerns around the impact of the Delta variant
of the virus on broader economic growth impacted more
macro-sensitive sectors as well, for example housebuilders,
including our holding in Vistry.
Globally, the vaccine deployment continues to make progress, and
while rising cases as a result of the Delta variant have caused
some concern for investors, we still believe the vaccine will
ultimately see us return to a more normal way of life. The strength
of trading that we continued to see from our holdings in June
reaffirms our confidence in the Company’s current positioning and
the outlook for many businesses across the portfolio. We also
continue to see evidence of those companies that went into the
COVID-19 crisis in a strong position, both financially and
operationally, are emerging in even stronger positions. The ability
of well financed market leading businesses to improve their
relative positions in times of stress has always been one of our
core beliefs, and this crisis has only reinforced that belief.
We continue to believe the ever-changing environment plays into
the hands of dynamic smaller companies, those able to rapidly shift
their business models to capitalise on new structural trends
quickly as they emerge. We thank shareholders for their continued
support.
1Source: BlackRock as at 30
June 2021
28 July 2021
ENDS
Latest information is available by typing
www.blackrock.com/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.