The information contained in this release was correct as at
28 February 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 28 February
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* |
2.8 |
13.4 |
14.8 |
19.5 |
81.7 |
Share price* |
3.4 |
14.4 |
14.4 |
28.2 |
96.8 |
Numis ex Inv Companies
+ AIM Index |
4.5 |
13.9 |
23.1 |
11.4 |
45.3 |
*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): |
1,777.70p |
Net asset value Capital only (debt
at fair value): |
1,768.06p |
Net asset value incl. Income (debt
at par value)1: |
1,784.45p |
Net asset value incl. Income (debt
at fair value)1: |
1,774.81p |
Share price: |
1,698.00p |
Discount to Cum Income NAV (debt at
par value): |
4.8% |
Discount to Cum Income NAV (debt at
fair value): |
4.3% |
Net yield2: |
1.9% |
Gross assets3: |
£960.9m |
Gearing range as a % of net
assets: |
0-15% |
Net gearing including income (debt
at par): |
8.8% |
Ongoing charges ratio
(actual)4: |
0.7% |
Ordinary shares in
issue5: |
48,829,792 |
-
Includes net revenue of 6.75p
-
Yield calculations are based on dividends announced in the last
12 months as at the date of release of this announcement, and
comprise the second interim dividend of 19.7
pence per share (announced on 3 June
2020, ex-dividend on 11 June
2020) and 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).
-
Includes current year revenue.
-
As reported in the Annual Financial Report for the year ended
29 February 2020 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 ordinary shares held in treasury.
Sector Weightings |
% of
portfolio |
Industrials |
26.7 |
Consumer Services |
19.5 |
Financials |
17.9 |
Consumer Goods |
12.0 |
Technology |
7.8 |
Basic Materials |
5.9 |
Health Care |
5.0 |
Oil & Gas |
3.6 |
Telecommunications |
1.1 |
Materials |
0.5 |
|
----- |
Total |
100.0 |
|
===== |
|
Country Weightings |
% of
portfolio |
United Kingdom |
97.7 |
United States |
1.5 |
Singapore |
0.5 |
Guernsey |
0.3 |
|
----- |
Total |
100.0 |
|
===== |
|
|
|
|
|
Ten Largest Equity
Investments
Company |
% of
portfolio* |
Watches of Switzerland |
2.5 |
Treatt |
2.0 |
YouGov |
2.0 |
Ergomed |
1.9 |
Stock Spirits Group |
1.8 |
Breedon |
1.7 |
IntegraFin |
1.7 |
Grafton Group |
1.7 |
Calisen Plc |
1.7 |
CVS Group |
1.6 |
|
*These percentages reflect portfolio exposure per stock and
include more than one holding per stock where relevant.
Commenting on the markets, Roland
Arnold, representing the Investment Manager noted:
During February the Company’s NAV per share rose by
2.8%1 to 1,777.70p, underperforming our benchmark index
which returned 4.5%1; for comparison the FTSE 100 Index
rose by 1.2%1 (all calculations are on a capital only
basis).
Equity markets rose in February on the back of continued
progress made with the vaccine deployment leading to optimism
around a strong economic restart. Rising inflation expectations
caused bond yields to spike which continued to fuel the rotation
away from long duration growth assets towards more cyclical and
value areas of the market. December's GDP (Gross Domestic Product)
release showed the UK recording its largest annual contraction
since 1709. However, the fall of -9.9% was less severe than many
COVID-19 driven downgrade forecasts, which led Sterling higher and,
as a result, UK small & mid-caps outperformed their larger
peers.
Technical factors were the key driver of the Company’s
performance during February. Profit taking from many of last year’s
strong performing growth stocks, and the rotation into
beneficiaries of the reopening trade caused the portfolio to lag
the rising benchmark. IntegraFin, YouGov and Impax Asset Management
were among the largest detractors during the month despite no
negative newsflow. Only last month Impax reported another quarter
of solid AUM (assets under management) growth, therefore, we
believe these falls will be temporary and we remain positive on the
outlook for these holdings.
Despite trailing our benchmark, the reporting season has been
generally positive for many of our holdings, which have continued
to trade well. The largest positive contributor during the month
was our new holding in Moonpig, which we purchased at IPO (Initial
Public Offering) during the month. Our investment case for the
business is centred around three key growth drivers: customer
acquisitions, orders per user and order value, and later in the
month the company provided an encouraging trading update showing
growth across all three of these drivers. Shares in Ergomed
continued to push higher following its January trading update which
highlighted that positive trading in its pharmacovigilance and its
Clinical Research Organisation had continued into year end and, as
a result, 2020 full year earnings will be ahead of
expectations.
The vaccine rollout program continues to gather pace and the
market is now heavily focused on the ‘reopening trade’ and the pace
at which the world can return to some level of normality. With the
UK ahead in its vaccine rollout we are cautiously optimistic around
the pace of reopening in the UK. However, questions remain over the
vaccine rollout elsewhere in the world and the potential for new
variants to resist the vaccine, and as such there remains potential
for market setbacks and sharp spikes in volatility. Strengthening
sterling and the steepening yield curve has caused a challenging
headwind for many global facing growth companies, which this
Company owns. However, we do not believe this will be a long-term
issue as we do not see persistent higher levels of inflation
ahead.
We therefore remain focused 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. This is a style that has demonstrably worked over
the long-term, and the positive trading updates that we have heard
from our companies in recent weeks reassure us that this is the
right strategy that will reward our shareholders over the
long-term.
1Source: BlackRock as at
28 February 2021
31 March 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.