BlackRock Smaller Companies Trust Plc - Portfolio Update
The information contained in this release was correct as at
All information is at
Performance at month end is calculated on a capital only basis
One month Three months One Three Five % % year years years % % % Net asset value* 3.2 5.8 57.3 31.1 111.1 Share price* 3.5 5.5 65.6 33.3 139.2 Numis ex Inv Companies + AIM Index 0.8 0.6 47.9 19.1 51.9
*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): 2,139.39p Net asset value Capital only (debt at fair value): 2,125.69p Net asset value incl. Income (debt at par value)1: 2,158.28p Net asset value incl. Income (debt at fair value)1: 2,144.59p Share price: 2,020.00p Discount to Cum Income NAV (debt at par value): 6.4% Discount to Cum Income NAV (debt at fair value): 5.8% Net yield2: 1.6% Gross assets3: £1,053.9m Gearing range as a % of net assets: 0-15% Net gearing including income (debt at par): 7.3% Ongoing charges ratio (actual)4: 0.8% Ordinary shares in issue5: 48,829,792
1. Includes net revenue of 18.89p 2. 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 penceper share (announced on 5 November 2020, ex-dividend on 12 November 2020, paid on 26 November 2020) and the second interim dividend of 20.5 penceper share (announced on 7 May 2021, ex-dividend on 20 May 2021, paid on 18 June 2021). 3. Includes current year revenue. 4. As reported in the Annual Financial Report for the year ended 28 February 2021the 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. 5. Excludes 1,163,731 ordinary shares held in treasury.
Sector Weightings % of portfolio Industrials 30.2 Consumer Discretionary 20.7 Financials 16.0 Consumer Staples 11.1 Technology 7.9 Basic Materials 4.7 Health Care 3.7 Energy 3.6 Telecommunications 1.7 Real Estate 0.4 ----- Total 100.0 ===== Country Weightings % of portfolio
United Kingdom98.4 United States1.3 Guernsey 0.3 ----- Total 100.0 =====
Ten Largest Equity Investments % of portfolio Company Watches of
Switzerland2.7 Impax Asset Management 2.3 CVS Group 2.0 Treatt 2.0 Breedon 1.9 Oxford Instruments 1.7 Integrafin 1.7 Gamma Communications 1.7 Auction Technology 1.6 Ergomed 1.6
Commenting on the markets,
During July the Company’s NAV per share rose by 3.2%1 to 2,139.39p, outperforming our benchmark index, Numis ex Inv Companies + AIM Index, which returned 0.8%1; for comparison the
Equity markets rose for the sixth straight month in July. Volatility was high, however, positive and strengthening bottom-up earnings results more than outweighed the negatives from the spread of the Delta variant. July also saw a continuation of the recent rotation towards growth, with many of the winners of 2020 continuing to deliver positive results and showing that they are more than just ‘Covid-beneficiaries’, most notably within Technology, Industrials and Healthcare.
The Company continued to benefit from stock specifics during the month, with positive contributions from a number of shares across a broad range of industries. Watches of
Detractors during the month were limited and as always it was pleasing to see no major stock specific disappointments. The largest detractor was Moonpig which reported good full year results that were ahead of consensus with upgrades to forecasts. However, the shares fell in responses to a slightly softer outlook as some customers acquired during the pandemic have begun to revert to pre-pandemic habits. We believe that guidance seems too conservative and that the opportunity for Moonpig remains as attractive as ever. Other detractors included Treatt and XP Power which gave back some recent strong performance.
We think the outlook for the portfolio remains strong. The global economy continues to recover from the economic shocks of the COVID-19 crisis. The pandemic is by no means over, as recent developments with the Delta variant demonstrate. The vaccine deployment continues to make progress globally and evidence from the
The strength of trading that we have seen from many of our holdings reaffirms our confidence in 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
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.