BlackRock Smaller Companies Trust Plc - Portfolio Update
The information contained in this release was correct as at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html .
All information is at
Performance at month end is calculated on a Total Return basis based on NAV per share with debt at fair value
One month Three months One Three Five % % year years years % % % Net asset value 2.5 2.9 5.4 -16.7 15.3 Share price 6.0 5.5 9.1 -20.6 9.1 Benchmark* 1.9 2.8 2.0 -16.0 12.5
Sources: BlackRock and Deutsche Numis
*With effect from
At month end
Net asset value Capital only (debt at par value): 1,488.67p Net asset value Capital only (debt at fair value): 1,543.45p Net asset value incl. Income (debt at par value)1: 1,525.95p Net asset value incl. Income (debt at fair value)1: 1,580.73p Share price: 1,410.00p Discount to Cum Income NAV (debt at par value): 7.6% Discount to Cum Income NAV (debt at fair value): 10.8% Net yield2: 2.9% Gross assets3: £788.2m Gearing range as a % of net assets: 0-15% Net gearing including income (debt at par): 11.5% Ongoing charges ratio (actual)4: 0.7% Ordinary shares in issue5: 47,099,792
1. Includes net revenue of 37.28p 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 of15.00 pence per share (announced on26 October 2023 , ex-dividend on2 November 2023 , and paid on4 December 2023 ) and the final dividend of25.50 pence per share (announced on05 May 2023 , ex-date on 18May 2023 , and paid27 June 2023 ). 3. Includes current year revenue. 4. The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for year ended28 February 2023 . 5. Excludes 2,893,731 ordinary shares held in treasury.
Sector Weightings % of portfolio Industrials 32.2 Financials 17.5 Consumer Discretionary 16.7 Basic Materials 11.3 Technology 6.4 Consumer Staples 3.4 Health Care 3.1 Real Estate 2.7 Telecommunications 2.5 Energy 2.3 Communication Services 1.9 ----- Total 100.0 ===== Country Weightings % of portfolioUnited Kingdom 98.1United States 1.4Ireland 0.5 ----- Total 100.0 =====
Ten Largest Equity Investments % of portfolio Company Gamma Communications 2.5 4imprint Group 2.5 Hill & Smith 2.4 Chemring Group 2.3 Breedon 2.3 Workspace Group 2.0 Bloomsbury Publishing 2.0 IntegraFin 1.9 TT Electronics 1.7 Oxford Instruments 1.7
Commenting on the markets,
During April the Company’s NAV per share retuned 2.5% to 1,580.73p on a total return basis, outperforming our benchmark index which returned 1.9%. For comparison the large cap
The pace of M&A (mergers and acquisitions) activity continued through April, with the portfolio benefiting via our holding in
YouGov was the largest detractor during the month. The company reported in-line results.
However, the underlying mix has proved to be worrying, with a marked slowdown in its core data products business and a larger than expected weighting to H2 to meet their full year guidance. Having recently acquired the Consumer Panel Services business from Gfk, YouGov has moved from net cash to net debt, and with the slowdown in its core business, we have moderated the holding slightly. Gamma Communications was another detractor as the share price drifted downward during the month on no fundamental news.
Since the end of 2021 rising interest rates have been weighing on the valuations of long-duration, higher growth shares in the stock market. As a result,
Against this backdrop, the question remains, what are the catalysts for this trend to change? Unfortunately, there is no simple answer. While there are many headwinds to the
As ever, we remain focused on the micro, industry level change and stock specific analysis and the opportunities we are seeing today in our universe are as exciting as ever. Historically, periods of heightened volatility have been followed by strong returns for the strategy and presented excellent investment opportunities.
We thank shareholders for your ongoing support.
1
Source: BlackRock as at
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.
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