Final Results
26 April 2013
BlackRock Smaller Companies Trust plc
Annual results announcement for the
Year ended 28 February 2013
Performance Record
Financial Highlights
Year Year
ended ended
28 29
February February %
2013 2012 change
Performance
Net asset value per share * 720.42p 619.75p +16.2
Net asset value per share *
(capital only) 712.39p 612.02p +16.4
Numis Smaller Companies plus AIM
(ex Investment Companies) Index 4,026.91 3,584.33 +12.3
Share price 626.50p 503.00p +24.6
------- ------- -----
Revenue return per share 11.53p 10.16p +13.5
Interim dividend per share 3.50p 2.42p +44.6
Proposed final dividend per 6.50p 5.98p +8.7
share
Total dividends paid and payable
in respect of the year ended 10.00p 8.40p +19.0
------- ------- -----
Total assets less current
liabilities (£'000) 374,797 311,582 +20.3
Equity shareholders' funds
(£'000) 344,934 296,733 +16.2
------- ------- -----
Ongoing charges ratio** 0.6% 0.7%
Ongoing charges ratio
(including performance fees) 1.0% 1.0%
Dividend yield 1.6% 1.7%
Gearing 9.2% 7.7%
------- -------
* Debenture at par value.
** Ongoing charges ratio calculated as a percentage of average shareholders'
funds and using expenses, excluding finance costs, performance fees and
taxation in accordance with AIC guidelines.
Source: BlackRock.
Chairman's Statement
Over the last ten years Net Asset Value per share has increased by 411% and
Dividends per share by 131%. Your Company has proved to be an outstanding long
term investment.
Performance
Following a positive start to the year, sentiment across global markets began
to deteriorate in the spring of 2012 and worsened in the summer following
concerns over the need to address the high levels of government debt in much of
the developed world. This led to policy makers in Europe, China, Japan and the
US taking positive action which calmed markets, which have subsequently
strengthened and for much of the first quarter of 2013 enjoyed their longest
positive run since the credit crisis in 2008.
Small and midcap stocks have performed well during the year with the FTSE 250
Index rising by 19.7% compared with an increase of 13.1% for the FTSE 100
Index. However, it has been a particularly challenging year for AIM companies
and the FTSE AIM Index ended the year down by 10.3%.
During the year ended 28 February 2013, the Company's net asset value ("NAV")
increased by 16.2% and the share price rose by 24.6%. By comparison, the
Company's benchmark, the Numis Smaller Companies plus AIM (excluding Investment
Companies) Index, rose by 12.3%.*
Since the financial year end, the Company's NAV has increased by 1.0%, against a
benchmark decline of 0.4%, and the share price has risen by 0.04%*.
*All percentages in sterling terms without income reinvested.
Over the longer term the Company's performance has substantially exceeded its
benchmark, as shown in the table below.
Performance to 1 3 5 10
28 February 2013 Year Years Years Years
Net asset value per share +16.2% +89.2% +73.8% +410.6%
Benchmark** +12.3% +39.7% +17.9% +123.9%
Net Asset Value per share
(with income reinvested) +18.1% +98.1% +88.8% +493.0%
Benchmark (with income
reinvested)** +15.3% +49.9% +34.0% +189.9%
Share price (with income
reinvested) +27.0% +124.4% +102.5% +595.1%
** Benchmark - Numis Smaller Companies plus AIM (excluding Investment Companies)
Index from 1 September 2007; FTSE SmallCap Index excluding Investment Companies
prior to that date.
Earnings and dividends
The Company's revenue return per share for the year to 28 February 2013
amounted to 11.53p compared with 10.16p for the previous year.
As announced in our last Annual Report, the Board decided to increase the
interim dividend disproportionately in order to move closer to a 40:60 split
between the interim and final dividends, and accordingly declared an interim
dividend of 3.50p per share (2012: 2.42p per share).
In the interim report, we indicated that we hoped to pay total dividends for
the year of 9.50p per share, which implied a final dividend of 6.00p per share.
In the event, due to stronger dividend flow from our investee companies than
anticipated, the Directors recommend the payment of a final dividend of
6.50p, making a total for the year of 10.00p per share; this represents an
increase of 19.0% over the dividends of 8.40p per share paid last year. Subject
to shareholder approval, the final dividend will be paid on 3 July 2013 to
shareholders on the register on 31 May 2013; the ex-dividend date is 29 May 2013.
As a result of the continued growth in earnings, in each of the last ten years,
your Company has increased its annual dividends per share, which have risen by
131% over the period.
Gearing
During the year the Board negotiated a three year £15 million multi-currency
revolving loan facility with Scotia Bank (Ireland) Limited in order to be less
dependent on short term borrowings. This facility is in addition to the
Company's existing £15 million debenture and an uncommitted bank overdraft
facility of £20 million.
It is the Board's intention that gearing will not exceed 15% of the total assets
of the Company at the time of the drawdown of the relevant borrowings. Under normal
operating conditions it is envisaged that gearing will fall within a range of
0-15% of total assets.
Gearing levels and sources of funding are reviewed regularly and the Board
continues to believe that moderate gearing is in the long term interests of
shareholders. At the year end, the Company's gearing was 8.3% of total assets
and 9.2% of shareholders' funds.
Discount
The Company's discount averaged 15.5% over the year under review, ranging from
a low of 11.1% to a high of 18.4%, and ended the year at 13.0%. Your Board
recognises that it is in the long term interests of shareholders that the
discount to NAV at which the shares trade should be minimised as far as
possible and will continue to focus on attempting to narrow this margin. An
important factor in achieving this is to create demand for the shares in the
secondary market. To this end your Investment Manager has been devoting
considerable effort to broadening the awareness of the Company's attractions,
particularly to wealth managers and to the wider retail shareholder market.
Over the last two years the number of shares in the Company held by retail
shareholders have increased from 20% to nearly 40% and we aim for this trend
to continue.
The Retail Distribution Review
From 1 January 2013 the Financial Services Authority's ("FSA") (with effect
from 1 April 2013 known as the Financial Conduct Authority ("FCA")) Retail
Distribution Review ("RDR") was implemented. Inter alia, this requires advisers
to charge their clients for advice rather than receiving commissions from the
funds in which their clients invest. Historically advisers have not received
such commissions from investment trusts. Thus in this important respect
investment trusts should now be on the same footing as their open ended
counterparts such as OEICs and unit trusts. There are signs that this change
may already have begun to have a beneficial effect on the demand for investment
trusts and we hope that this tendency will be maintained.
In this context your Investment Manager is actively looking to increase our
profile with retail platforms and online brokers.
Annual General Meeting
The Annual General Meeting of the Company will be held at the offices of
BlackRock at 12 Throgmorton Avenue, London EC2N 2DL on 26 June 2013 at 2.30 
p.m. Mike Prentis, the Portfolio Manager, will be making a presentation to
shareholders on the Company's performance and the outlook for equity markets.
The Directors and representatives of the Investment Manager look forward to
meeting shareholders informally after the meeting and I hope that as many
shareholders as possible will choose to attend.
Outlook
Recent improvements in the global macroeconomic position have seen a more
buoyant run in markets over the last few months; however this optimism should
be tempered by concerns over public sector spending cuts in the US and
continuing sovereign debt issues in Europe and many uncertainties remain. The
UK economy still appears weak and growth is likely to be slow, but the recent
fall in sterling should help companies with international exposure. The
holdings in the Company's portfolio are well placed to make the most of slowly
improving economic conditions, with strong management and exposure to the
better performing sectors of the global economy. We anticipate reasonable
earnings growth from your Company's holdings, and this should feed through into
positive returns for the Company's shareholders in the medium term.
Nicholas Fry
Chairman
26 April 2013
Principal risks
The key risks faced by the Company are set out below. The Board regularly
reviews and agrees policies for managing each risk, as summarised below.
Performance risk - The Board is responsible for deciding the investment
strategy to fulfil the Company's objectives and monitoring the performance of
the Investment Manager. An inappropriate strategy may lead to underperformance
against the benchmark index. To manage this risk the Investment Manager
provides an explanation of significant stock selection decisions and the
rationale for the composition of the investment portfolio. The Board monitors
and mandates an adequate spread of investments, in order to minimise the risks
associated with factors specific to particular sectors and based on the
diversification requirements inherent in the Company's investment policy. The
Board also receives reports showing an analysis of the Company's performance
against the benchmark. Past performance is not necessarily a guide to future
performance and the value of your investment in the Company and the income from
it can fluctuate as the value of the underlying investments fluctuate.
Income/dividend risk - The amount of dividends and future dividend growth
will depend on the Company's underlying portfolio. Any change in the tax
treatment of the dividends or interest received by the Company may reduce the
level of dividends received by shareholders. The Board monitors this risk
through the receipt of detailed income forecasts and considers the level of
income at each meeting.
Regulatory risk - The Company operates as an investment trust in accordance
with Chapter 4 of Part 24 of the Corporation Tax Act 2010. As such, the Company
is exempt from capital gains tax on the profits realised from the sale of its
investments. The Investment Manager monitors investment movements, the level
and type of forecast income and expenditure and the amount of proposed
dividends to ensure that the provisions of Chapter 4 of Part 24 of the
Corporation Tax Act 2010 are not breached and the results are reported to the
Board.
The Company must also comply with the provisions of the Companies Act 2006 and,
as its shares are admitted to the Official List, the UKLA Listing Rules, the
Disclosure and Transparency Rules and the Prospectus Rules. A breach of the
Companies Act 2006 could result in the Company and/or the Directors being fined
or the subject of criminal proceedings. A breach of the UKLA Listing Rules
could result in the Company's shares being suspended from listing, which in
turn would breach the requirements of Chapter 4 of Part 24 of the Corporation
Tax Act 2010. The Board relies on the services of its professional advisers and
its corporate Company Secretary to ensure compliance with all relevant
regulations. The Company Secretary has stringent compliance procedures in place
and monitors regulatory developments and changes.
Operational risk - In common with most other investment trust companies, the
Company has no employees. The Company therefore relies upon the services
provided by third parties and is dependent on the control systems of the
Investment Manager and the Company's other service providers. The security, for
example, of the Company's assets, dealing procedures, accounting records and
maintenance of regulatory and legal requirements, depend on the effective
operation of these systems. These are regularly tested and monitored and an
internal control report, which includes an assessment of risks together with
procedures to mitigate such risks, is prepared by the Investment Manager and
reviewed by the Audit Committee twice a year. The custodian (The Bank of New
York Mellon (International) Ltd ("BNYM"), a subsidiary of The Bank of New York
Mellon) and the Investment Manager also produce regular Service Organisation
Reports (SOC 1) or AAF 01/06 Reports which are reviewed by their respective
auditors and give assurance regarding the effective operation of controls and
are also reviewed by the Audit Committee.
Market risk - Market risk arises from volatility in the prices of the
Company's investments. It represents the potential loss the Company might
suffer through holding investments in the face of negative market movements.
The Board considers asset allocation, stock selection and levels of gearing on
a regular basis and has set investment restrictions and guidelines which are
monitored and reported on by the Investment Manager. The Board monitors the
implementation and results of the investment process with the Investment
Manager.
Financial risks - The Company's investment activities expose it to a variety
of financial risks that include market price risk, currency risk, interest rate
risk, liquidity risk and credit risk. Further details are disclosed in note 19
on pages 51 to 55 of the annual report, together with a summary of the policies
for managing these risks.
Third party risks - The Company has no employees and the Directors have all
been appointed on a non-executive basis. The Company must therefore rely upon
the performance of third party service providers to perform its executive
functions. In particular, the Investment Manager, the Administrator, the
Registrar, the Custodian and their respective delegates, if any, will perform
services that are integral to the Company's operations and financial
performance. The Company, and where appropriate the Investment Manager,
undertake extensive due diligence prior to the appointment of any third party
service provider in order to mitigate this risk. Terms of appointment are
agreed in advance and service level agreements are put in place with providers,
other than the Investment Manager, to ensure that a high level of service is
provided. In the case of the Investment Manager, service levels are defined in
the Investment Management Agreement. Failure by any service provider to carry
out its obligations to the Company in accordance with the terms of its
appointment, to exercise due care and skill, or to perform its obligations to
the Company at all as a result of insolvency, bankruptcy or other causes could
have a material adverse effect on the Company's performance and returns to
holders of ordinary shares. The termination of the Company's relationship with
any third party service provider or any delay in appointing a replacement for
such service provider, could materially disrupt the business of the Company and
could have a material adverse effect on the Company's performance and returns
to holders of ordinary shares.
Related party transactions
The Investment Manager is regarded as a related party and details of the
investment management and performance fees payable are set out in note 4.
The Board consists of five non-executive Directors, all of whom are considered
to be independent by the Board. None of the Directors has a service contract
with the Company. With effect from 1 March 2013, the remuneration of the
Chairman was increased from £31,200 to £32,250, the Chairman of the Audit
Committee from £23,920 to £24,750, and for the other Directors from £20,800 to
£21,500.
The following members of the Board hold ordinary shares in the Company. Nicholas
Fry holds 40,000 ordinary shares, Gill Nott holds 11,500 ordinary shares, Caroline
Burton holds 3,000 ordinary shares and Robbie Robertson holds 83,571 ordinary
shares. Michael Peacock does not hold any shares in the Company.
Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
- the financial statements, prepared in accordance with applicable accounting
standards, give a true and fair view of the assets, liabilities, financial
position and return or loss of the Company; and
- the annual report includes a fair review of the development and performance
of the business and the position of the Company, together with a description of
the principal risks and uncertainties that the Company faces.
For and on behalf of the Board of Directors
Nicholas Fry
Chairman
26 April 2013
Investment Manager's Report
It is pleasing to have maintained our record of outperformance and we believe
our portfolio is well positioned to continue this trend.
Market review and overall investment performance
Stockmarkets were uncertain during much of the financial year. Investors had
concerns about the indebtedness of Southern European countries, the slowing of
the Chinese economy, tensions in the Middle East and the US budget deficit.
These uncertainties took their toll on stockmarkets which fell heavily in May
2012. However, in recent months confidence has started to return as many
macroeconomic uncertainties look to be past their worst. US private sector
growth has been quite strong with the housing market showing clear signs of
recovery. Chinese GDP growth looks to have bottomed and we may even see a
gradual improvement in growth. The European economy still looks weak, but this
appears to be well understood by markets. This return of confidence has helped
markets and enabled us to finish the financial year robustly.
Over the year the Company's NAV per share rose by 16.2% to 720.42p; the
benchmark rose by 12.3%, whilst the FTSE 100 Index rose by 13.1%, all
percentages without income reinvested. Over the last ten years the Company's
NAV per share has risen from 141.10p, admittedly close to the low point in
markets at the time, to 720.42p, a rise of 410.6%, excluding income reinvested.
We have aimed for consistent outperformance and so it is pleasing to note that
this is the tenth successive year that we have outperformed our benchmark index.
Performance review
Stock selection contributed strongly to relative outperformance during the
year, as did gearing, whilst the contribution from sector allocation was
marginally negative.
Amongst the largest stock contributors to relative outperformance were our core
holdings in Ashtead Group, Howden Joinery Group, Oxford Instruments, Bellway and
Booker Group. These are all very well run companies with good growth prospects.
A strong contribution also came from Optimal Payments, where shares in the
company rose by 154% during the year. Optimal Payments facilitates online
payments and could be a beneficiary of the possible liberalisation of US online
gaming.
On the negative side the largest detractors from relative performance were our
holdings in Hargreaves Services and Avocet Mining. Hargreaves Services
announced that it had encountered problems driving out a new face at the
underground coal mine at Maltby. Avocet announced that its Inata mine had
experienced what it believed will be temporarily lower grades, and reduced
production. We have sold both of these holdings.
Turning to sector allocation, one of the features of the financial year was the
surprisingly strong performance of many domestically exposed sectors. In part,
this was due to the concerns about many regions of the world, mentioned above.
Our underweight positions in retailers, travel and leisure companies and support
services hindered our relative performance, although our overweight
position in housebuilders was beneficial. Among more internationally exposed
sectors we remained overweight in electronics and software companies and these
did perform well for us.
Activity
We continued to add holdings which we believed were good quality and offering
attractive upside. Examples include holdings in Devro International, Young &
Co's Brewery and James Fisher. Devro International is the world's leading
supplier of collagen casings for food, used by customers mainly in the
production of a wide variety of sausages. Global protein consumption is
expected to continue to increase especially in emerging markets. Young & Co own
a high quality estate of predominantly London pubs, mainly aimed at the premium
end of the market. James Fisher provides services and support to the oil and
gas, shipping and defence industries in the marine environment. Onshore, its
capabilities are deployed in the most safety-critical of environments,
including nuclear. James Fisher has been very successful at internationalising
its services outside Europe, and now generates an increasing and fast growing
share of its revenues and profits from emerging markets.
Bid activity in our portfolio has been a feature, although somewhat muted. We
had bids for Endace, Corin, WSP and Nautical Petroleum, although none of these
companies were large holdings.
Portfolio Positioning and Gearing
We took a fairly defensive stance during the year given the uncertain global
economic backdrop. We have maintained exposure to high quality, well managed
and well financed companies. Mid-year we reduced exposure to some holdings that
are more capital spending orientated, and thus exposed to delayed decision
making in uncertain times.
Towards the end of the financial year, with markets showing a bit more appetite
for risk, we increased our risk exposure slightly. We added modestly to our
holdings in the miners, adding small holdings in African Minerals and London
Mining, and also to the financials, adding holdings in Canaccord Financial and
Close Brothers. However, we still remain quite cautiously positioned.
We have retained gearing and for much of the year gearing was held at 10%.
However, with the rise in the value of the portfolio, gearing was 9.2% at the
year end.
Size of our Investments as at 28 February 2013
£m Number of Investments % of Portfolio
£0m to £1m 39 5.5
£1m to £2m 53 20.3
£2m to £3m 25 16.2
£3m to £4m 18 16.1
£4m to £5m 15 17.8
£5m to £6m 2 2.8
£6m to £7m 5 8.6
£7m to £8m 3 5.8
£8m to £9m 2 4.5
£9m to £10m 1 2.4
Source: BlackRock.
Market capitalisation of our Portfolio Companies as at 28 February 2013
% of Portfolio
£0m to £100m 12.2
£100m to £400m 31.9
£400m to £1bn 31.2
£1bn+ 24.7
Source: BlackRock.
Outlook
The macroeconomic position looks better now than a year ago. Growth in the US
is being led by the private sector, and the housing market in particular has
been looking much stronger since mid-2012. Public sector spending cuts being
imposed will no doubt have some impact on US GDP growth but we still expect
good growth in 2013. We believe that Chinese GDP growth may have bottomed but
it will almost certainly continue at levels well ahead of major developed nations.
In Europe we still need to see resolution to funding issues, and political
uncertainties remain. The UK economy looks weak but the recent fall in
sterling may help the internationally exposed sectors.
In the past, UK smaller companies have tended to do well coming out of
recession and going into periods of growth. The smaller companies we own are
well placed to make the most of slowly improving economic conditions, and many
have good exposure to the faster growing parts of the world. Most importantly
they are run by strong management teams, well able to make the most of
opportunities ahead. We expect reasonable earnings growth from our holdings,
and this should feed through into higher dividends and share prices.
Mike Prentis
BlackRock Investment Management (UK) Limited
26 April 2013
Summary of Ten Largest Investments
28 February 2013
Set out below is a brief description by the Investment Manager of the Company's
ten largest investments
Senior - 2.4% (2012: 1.6%) is an international manufacturing group providing
engineered products for demanding operating environments. The group's strategy
is to focus on sectors where it is positioned to benefit from both global
market growth and increasingly stringent emission control legislation. Senior
operates through two divisions: Aerospace, which serves both the commercial
aerospace and defence markets; and Flexonics, which serves automotive and other
industrial markets. The company is particularly closely aligned to the growth
of the commercial aerospace sector and especially to wide bodied aircraft
production. Senior's design in products and high order book give it excellent
revenue visibility. Growth in earnings in recent years has been strong, and the
shares remain modestly rated.
Bellway - 2.3% (2012: 1.8%) is one of the largest housebuilders in the United
Kingdom with operations across the country. Management is very experienced and
has run the company in good and bad housing market conditions. Bellway has
bought land steadily over the last few years; operating margins are increasing
further as more recently acquired land is built on. Bellway has the scope to
increase volumes of sales over the next few years and average selling prices
are also likely to increase. Bellway shares still trade at a slight premium to
net tangible assets and look good value in absolute terms and relative to the
sector.
Howden Joinery Group - 2.2% (2012: 1.2%) is a leading supplier of kitchens and
joinery to trade customers across the UK. These trade customers are typically
local builders who fit the kitchens for the end customer. Last year Howden's
manufactured and supplied about 350,000 kitchens. It is estimated to have a UK
market share of slightly over 20%, a share that has grown steadily, and which
we expect to continue. Howden's increasing scale gives it cost advantages and
allows it to supply a wide range of well made, competitively priced, always
available kitchens. Growth in revenue, profit and cash generation has been
strong and the shares remain sensibly valued.
Victrex - 2.1% (2012: 1.2%) is the world's leading manufacturer of high
performance polyaryletherketone materials, in particular PEEK. PEEK materials
have a number of properties which make them highly attractive in many
manufacturing applications often in substitution to metals. PEEK has excellent
strength, stiffness and dimensional stability in high temperature and harsh
environments, is easy to process and lightweight compared to steel, aluminium
and titanium, and is chemically resistant and insoluble in common solvents.
Victrex works directly with material processors and design engineers mainly in
the transport, industrial, electronics and medical device sectors to help
create new applications for PEEK. The number of specified PEEK applications has
grown steadily over the last decade and profits and cash generation have also
grown very well. We see Victrex as a long term structural growth story, albeit
one which can be cyclical at the onset of sharp industrial downturns.
Oxford Instruments - 1.9% (2012: 2.7%) is a leading provider of high technology
tools and systems for research and industry. It designs and manufactures
equipment that can fabricate, analyse and manipulate matter at the atomic and
molecular level. It is a very international business with almost 70% of sales
being to destinations outside Europe. Since current management joined in 2005/6
the focus has been on research and development and the introduction of new,
higher gross margin products. This organic growth strategy has worked very well
with operating margins rising from 4% to more than 12%. Earnings per share have
increased every year through the recession, increasing more than six-fold. Cash
generation has also been very strong. We expect growth to continue with scope
to increase margins further towards industry leading levels. We have taken some
profit as the shares are no longer as compellingly valued as when we first
invested.
Workspace Group - 1.8% (2012: 1.0%) provides premises tailored to the needs of
new and growing businesses across London. It owns more than 100 properties in
London providing 5.4 million square feet of space which is home to some 4,000
businesses employing more than 30,000 people. Workspace provides the right
properties to attract and retain customers giving them the flexibility to
adjust the space they need to help them grow. Occupancy levels have continued
to increase as have rents per square foot. Workspace has also supplemented core
operational income and capital values by redeveloping certain property assets.
This has enabled the company's net asset value to grow steadily and we expect
this to continue as London thrives and creates more jobs.
Booker Group - 1.8% (2012: 1.4%) is the UK's leading food wholesaler. It
supplies approximately 338,000 catering businesses and 83,000 independent
retailers. It operates from 172 cash and carry branches throughout the United
Kingdom and provides a national delivery service. Growth in recent years has
been very strong, driven by market share gains and range extensions. Over the
last few years, it has begun to grow in India and the medium term opportunity
there is potentially very substantial. In its January 2013 trading statement it
disclosed like for like sales growth of 3.1% for the previous 16 week period, a
good level of growth in a difficult market and against strong comparatives.
This is an indication of continuing strong market outperformance. During the
year Booker acquired Makro which has been underperforming but we expect Booker
management to turn this round over the next few years. Booker has shown strong
earnings growth in recent years, and has also converted this into cash.
Ashtead Group - 1.8% (2012: 1.1%) is a leading provider of rental equipment
with operations in the US and the UK. Its US business, Sunbelt Rentals, is
the second largest equipment rental business in the US with 378 locations
operating in major metropolitan centres across the US. Sunbelt has benefited
from a structural change in the US market with construction companies
increasingly looking to hire plant rather than buy it themselves, a trend which
has been more advanced in the UK. Sunbelt has been able to invest in new
equipment and this has allowed it to increase its market share rapidly. At the
same time the US market has started to recover; initially this was most obvious
in the housing market. These trends have allowed Ashtead to increase profits
strongly well ahead of expectations. We expect this trend to continue as the US
market gathers strength.
AZ Electronic Materials - 1.7% (2012: 0.4%) is the world leading manufacturer
of speciality chemicals used in the manufacture of integrated circuits and flat
panel displays. As semiconductors become ever smaller, more complex and multi
layered there is a need for high purity chemicals to provide a thin coating
between each layer; AZ provide these chemicals. The semiconductor industry is
fast changing and AZ is very good at working closely with its large company
customers to ensure that customer requirements are met. Although AZ products
represent only a small fraction of customers' overall production cost, they are
vital to enable their manufacturing processes. We see this as a well-run,
forward thinking company which has good medium term growth prospects and is
sensibly valued.
ITE Group - 1.7% (2012: 1.5%) creates marketplaces for business by organising
leading trade exhibitions and conferences in growing and developing markets.
The group organises over 250 trade exhibitions and conferences each year in
mainly Russia, Ukraine, Azerbaijan, Kazakhstan, Turkey, India and
Uzbekistan. The company has generated strong earnings growth and cash
generation for many years. ITE aims to be the world's leading organiser of
trade exhibitions in emerging markets; it has good revenue visibility and
continues to trade well.
All percentages reflect the value of the holding as a percentage of total
investments. Percentages in brackets represent the value of the holding as at
29 February 2012. Together, the ten largest investments represent 19.7% of the
Company's portfolio (ten largest investments as at 29 February 2012: 16.6%).
Fifty Largest Investments
as at 28 February 2013
%
Market of
value total
Company £'000 portfolio Business activity
Senior 9,042 2.4 Manufacture and supply of components for
the aerospace and automotive sector
Bellway 8,607 2.3 House building
Howden Joinery 8,438 2.2 Design and manufacture of kitchens sold
Group to local builders
Victrex 7,898 2.1 Manufacture and supply of PEEK
thermoplastic products
Oxford Instruments 7,115 1.9 Design and manufacture of tools and
systems to analyse and manipulate matter
at the atomic level
Workspace Group 7,018 1.8 Supply of flexible workspace to
businesses in London
Booker Group 6,924 1.8 Wholesale of grocery products
Ashtead Group 6,696 1.8 Hire of plant, predominantly in the US
AZ Electronic 6,425 1.7 Manufacture of speciality chemicals sold
Materials mainly to semiconductor manufacturers
ITE Group 6,356 1.7 Organisation of trade exhibitions in
Russia and other FSU countries
Dunelm Group 6,103 1.6 Supply of home furnishings
Restaurant Group 5,602 1.5 Operation of branded restaurants
Aveva Group 5,172 1.4 Development and marketing of engineering
computer software
Consort Medical 4,996 1.3 Manufacture of drug delivery devices
Headlam Group 4,944 1.3 Distribution of carpets and other floor
coverings
Inchcape 4,924 1.3 Distribution and retail of cars and
aftermarket services
Blinkx 4,824 1.3 Supply of video technology and an online
catalogue to enable video clips to be
viewed
St Modwen 4,651 1.2 Property investment and development
Properties
Abcam 4,640 1.2 Production and distribution of research
grade antibodies and associated
products
Fidessa group 4,484 1.2 Development and marketing of financial
trading and connectivity software
Devro 4,468 1.2 Manufacture of collagen casings for the
International food industry
Hyder Consulting 4,455 1.2 Provision of engineering design
services
Clarkson 4,265 1.1 Shipbroking and related activities
Paypoint 4,230 1.1 Provision of payment solutions
Jupiter Fund 4,202 1.1 Investment management
Management
Galliford Try 4,157 1.1 House building and construction
Polar Capital 4,083 1.1 Investment management
Holdings
Rathbone Brothers 4,080 1.1 Private client fund management
Paragon 3,875 1.0 Provision of loans mainly to buy to let
landlords
Optimal Payments 3,846 1.0 Provision of online payments solutions
Elementis 3,701 1.0 Manufacture of additives that enhance
the feel, flow and finish of everyday
products
Avon Rubber 3,662 1.0 Production of safety masks and dairy
related products
TT Electronics 3,599 0.9 Manufacture of electronic and electrical
components
Keller Group 3,488 0.9 Provision of ground engineering services
globally
LSL Property 3,463 0.9 Provision of residential property
Services services
Brown (N) Group 3,446 0.9 Supply of clothing mainly through home
shopping catalogues
Anite 3,405 0.9 Provision of device and network testing
solutions to the wireless market
Coastal Energy 3,375 0.9 Exploration and production of oil in
South East Asia
Ithaca Energy 3,360 0.9 Development and production of oil in the
North Sea
Faroe Petroleum 3,186 0.8 Exploration for oil and gas offshore UK
and Norway
UTV Media 3,127 0.8 Television and radio broadcasting
Salamander Energy 3,118 0.8 Exploration and production of oil and
gas in South East Asia
Lookers 3,115 0.8 Supply of cars and after market parts
and services
Sportech 3,072 0.8 Supply of pooled betting solutions in
regulated markets
Cineworld Group 3,057 0.8 Operation of cinemas in the UK
Hunting 3,033 0.8 Supply of well construction, completion
and appraisal products to the oil & gas
industry
City of London 2,957 0.8 Management of investment funds primarily
Investment Group invested in emerging markets
Xaar 2,925 0.8 Design and manufacture of industrial
printheads used in inkjet printers
Vectura 2,873 0.7 Development of inhaled therapies for the
treatment of respiratory diseases
Gooch & Housego 2,839 0.7 Design and manufacture of precision
optical components, subsystems and
instruments used to transmit and measure
light
------- -----
50 largest
investments 231,321 60.9
------- -----
Remaining
investments 148,334 39.1
------- -----
TOTAL 379,655 100.0
------- -----
Details of the full portfolio at 28 February 2013 are available at www.blackrock.co.uk/
literature/fund-update/brsct-portfolio-disclosure.pdf.
Comparatives for Ten Largest Investments
2013 2013 2012 2012
Market % Market %
value total value total
Company £'000 portfolio £'000 portfolio
Senior 9,042 2.4 5,167 1.6
Bellway 8,607 2.3 5,697 1.8
Howden Joinery Group 8,438 2.2 3,856 1.2
Victrex 7,898 2.1 3,791 1.2
Oxford Instruments 7,115 1.9 8,804 2.7
Workspace Group 7,018 1.8 3,057 1.0
Booker Group 6,924 1.8 4,341 1.4
Ashtead Group 6,696 1.8 3,660 1.1
AZ Electronic Materials 6,425 1.7 1,372 0.4
ITE Group 6,356 1.7 4,921 1.5
------ ---- ------ ----
74,519 19.7 44,666 13.9
====== ==== ====== ====
Distribution of Investments
as at 28 February 2013
Sector % of portfolio
Oil & Gas Producers 5.3
Oil Equipment, Services & Distribution 1.0
-----
Oil & Gas 6.3
-----
Mining 4.9
Chemicals 5.6
Industrial Metals & Mining 0.7
-----
Basic Materials 11.2
-----
Support Services 7.5
Electronic & Electrical Equipment 5.1
Industrial Engineering 0.7
Aerospace & Defence 2.8
Industrial Transportation 2.2
Construction & Materials 2.0
General Industrials 1.0
-----
Industrials 21.3
-----
Household Goods & Home Construction 5.1
Food Producers 1.3
Beverages 0.1
Leisure Goods 0.5
Personal Goods 0.2
-----
Consumer Goods 7.2
-----
Pharmaceuticals & Biotechnology 5.1
Health Care Equipment & Services 2.8
-----
Health Care 7.9
-----
Media 5.5
General Retailers 7.2
Travel & Leisure 5.7
Food & Drug Retailers 2.1
-----
Consumer Services 20.5
-----
Fixed-Line Telecommunications Services 1.2
-----
Telecommunications Services 1.2
-----
Gas, Water & Multiutilities 0.4
-----
Utilities 0.4
-----
Financial Services 8.8
Real Estate Investments & Services 3.6
Retail Real Estate Investment Trust 2.3
-----
Financials 14.7
-----
Software & Computer Services 7.6
Technology Hardware & Equipment 1.7
-----
Technology 9.3
-----
Income Statement
for the year ended 28 February 2013
Revenue Revenue Capital Capital Total Total
2013 2012 2013 2012 2013 2012
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments
held at fair value
through profit or
loss - - 50,439 1,039 50,439 1,039
Exchange losses - - (1) - (1) -
Income from
investments held at
fair value through
profit or loss 3 6,697 5,948 - - 6,697 5,948
Other income 3 8 3 - - 8 3
Investment management
and performance fees 4 (418) (384) (2,114) (1,932) (2,532) (2,316)
Other operating
expenses 5 (397) (372) - - (397) (372)
----- ----- ------ ----- ------ -----
Net return/(loss)
before finance costs
and taxation 5,890 5,195 48,324 (893) 54,214 4,302
Finance costs (368) (329) (1,104) (984) (1,472) (1,313)
----- ----- ------ ----- ------ -----
Net return/(loss) on
ordinary activities
before taxation 5,522 4,866 47,220 (1,877) 52,742 2,989
----- ----- ------ ----- ------ -----
Taxation on ordinary
activities (2) (1) - - (2) (1)
----- ----- ------ ----- ------ -----
Net return/(loss) on
ordinary activities
after taxation 5,520 4,865 47,220 (1,877) 52,740 2,988
====== ====== ====== ===== ======= =====
Return/(loss) per
ordinary share 7 11.53p 10.16p 98.62p (3.92p) 110.15p 6.24p
====== ====== ====== ===== ======= =====
The total column of this statement represents the return or loss of the
Company. The supplementary revenue and capital columns are both prepared under
guidance published by the Association of Investment Companies ("AIC"). The
Company had no recognised gains or losses other than those disclosed in the
Income Statement and the Reconciliation of Movements in Shareholders' Funds.
All items in the above statement derive from continuing operations.
Reconciliation of Movements in Shareholders' Funds
for the year ended 28 February 2013
Called-up Share Capital
share premium redemption Capital Revenue
capital account reserve reserves reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
For the year ended
29 February 2012
At 28 February 2011 12,498 38,952 1,982 235,647 8,123 297,202
(Loss)/return for
the year - - - (1,877) 4,865 2,988
Dividends paid (see
(a) below) 6 - - - - (3,457) (3,457)
------ ------ ----- ------- ------ -------
At 29 February 2012 12,498 38,952 1,982 233,770 9,531 296,733
------ ------ ----- ------- ------ -------
For the year ended
28 February 2013
At 29 February 2012 12,498 38,952 1,982 233,770 9,531 296,733
Return for the year - - - 47,220 5,520 52,740
Dividends paid (see
(b) below) 6 - - - - (4,539) (4,539)
------ ------ ----- ------- ------ -------
At 28 February 2013 12,498 38,952 1,982 280,990 10,512 344,934
------ ------ ----- ------- ------ -------
(a) Final dividend of 4.80p per share for the year ended 28 February 2011,
declared on 14 April 2011 and paid on 21 June 2011 and interim dividend of
2.42p per share for the six months ended 31 August 2011, declared on 20 October
2011 and paid on 2 December 2011.
(b) Final dividend of 5.98p per share for the year ended 29 February 2012,
declared on 26 April 2012 and paid on 4 July 2012 and interim dividend of 3.50p
per share for the six months ended 31 August 2012, declared on 26 October 2012
and paid on 7 December 2012.
Balance Sheet
as at 28 February 2013
2013 2012
Notes £'000 £'000
Fixed assets
Investments held at fair value through profit or
loss 379,655 321,270
------- -------
Current assets
Debtors 184 2,183
------- -------
184 2,183
------- -------
Creditors - amounts falling due within one year (5,042) (11,871)
------- -------
Net current liabilities (4,858) (9,688)
------- -------
Total assets less current liabilities 374,797 311,582
Creditors - amounts falling due after more than one
year (29,863) (14,849)
------- -------
Net assets 344,934 296,733
======= =======
Capital and reserves
Called-up share capital 8 12,498 12,498
Share premium account 38,952 38,952
Capital redemption reserve 1,982 1,982
Capital reserves 280,990 233,770
Revenue reserve 10,512 9,531
------- -------
Total equity shareholders' funds 344,934 296,733
======= =======
Net asset value per ordinary share (debenture at par
value) 7 720.42p 619.75p
======= =======
Net asset value per ordinary share (debenture at
fair value) 7 715.37p 615.55p
======= =======
Cash Flow Statement
for the year ended 28 February 2013
2013 2012
Notes £'000 £'000
Net cash inflow from operating activities 5(b) 4,097 3,617
------- -------
Servicing of finance (1,431) (1,286)
------- -------
Taxation
Income tax received 20 14
Overseas withholding tax received/(paid) 5 (5)
------- -------
Total taxation 25 9
------- -------
Capital expenditure and financial investment
Purchase of investments (137,299) (140,086)
Proceeds from sale of investments 130,345 147,074
------- -------
Net cash (outflow)/inflow from capital expenditure
and financial investment (6,954) 6,988
------- -------
Financing activities
Equity dividends paid 6 (4,539) (3,457)
Inflow from draw down of revolving loan 15,000 -
------- -------
Net cash inflow/(outflow) from financing 10,461 (3,457)
------- -------
Increase in cash in the year 6,198 5,871
======= =======
Notes to the Financial Statements
1. Principal activity
The principal activity of the Company is that of an investment trust company
within the meaning of section 1158 of the Corporation Tax Act 2010.
2. Accounting policies
(a) Basis of preparation
The Company's financial statements have been prepared on the historical cost
basis of accounting, except for investments which are managed and evaluated on
a fair value basis, in accordance with the Companies Act 2006, United Kingdom
Generally Accepted Accounting Practice ("UK GAAP") and with the Statement of
Recommended Practice ("SORP") for investment trusts and venture capital trusts
issued by the Association of Investment Companies ("AIC"), revised in January
2009. The principal accounting policies adopted by the Company are set out
below. The policies have been applied consistently throughout the year and are
consistent with those applied in the preceding year. All of the Company's
operations are of a continuing nature.
The Company's financial statements are presented in sterling, which is the
currency of the primary economic environment in which the Company operates. All
values are rounded to the nearest thousand pounds (£'000) except where
otherwise stated.
(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AIC, supplementary information which
analyses the Income Statement between items of a revenue and capital nature has
been presented alongside the Income Statement.
(c) Investments designated as held at fair value through profit or loss
The Company's investments are classified as held at fair value through profit
or loss in accordance with FRS 26 - `Financial instruments: Recognition and
Measurement' and are managed and evaluated on a fair value basis in accordance
with its investment strategy.
All investments are designated upon initial recognition as held at fair value
through profit or loss. The sales of assets are recognised at the trade date of
the disposal. Proceeds will be measured at fair value, which will be regarded
as the proceeds of sale less any transaction costs.
The fair value of the financial instruments is based on their quoted bid price
or last traded price at the balance sheet date on the exchange on which the
investment is quoted, without deduction for estimated future selling costs.
Unquoted investments are valued by the Directors at fair value using
International Private Equity and Venture Capital Valuation Guidelines. This
policy applies to all current and non current asset investments of the Company.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Income Statement as
"Gains or losses on investments held at fair value through profit or loss".
Also included within this heading are transaction costs in relation to the
purchase or sale of investments.
In order to improve the disclosure of how companies measure the fair value of
their financial investments, the disclosure requirements in FRS 29 have been
extended to include a fair value hierarchy. The fair value hierarchy consists
of the following three levels:
Level 1 - quoted prices (unadjusted) in active markets for identical assets or
liabilities
Level 2 - inputs other than quoted prices included within Level 1 that are
observable for the asset or liability
Level 3 - inputs for the asset or liability that are not based on observable
market data
This policy applies to non current asset investments held by the Company.
(d) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single
segment of business being investment business.
(e) Income
Dividends receivable on equity shares are treated as revenue for the year on an
ex-dividend basis. Where no ex-dividend date is available, dividends receivable
on or before the year end are treated as revenue for the year. Provision is
made for any dividends not expected to be received. Fixed returns on non equity
securities are recognised on a time apportionment basis. Interest income is
accounted for on an accruals basis.
Special dividends are treated as a capital receipt or revenue receipt depending
on the facts or circumstances of each particular case.
Dividends are accounted for in accordance with FRS 16 - "Current Taxation" on
the basis of income actually receivable, without adjustment for the tax credit
attaching to the dividends. Dividends from overseas companies continue to be
shown gross of withholding tax.
Where the Company has elected to receive its dividends in the form of
additional shares rather than in cash, the amount of the cash dividend foregone
is recognised in the capital column of the Income Statement.
(f) Expenses
All expenses are accounted for on an accruals basis. Expenses have been treated
as revenue except as follows:
- expenses including finance costs which are incidental to the acquisition or
disposal of investments are included within the cost of the investments.
Details of transaction costs on the purchases and sales of investments are
disclosed in note 11 on page 48 of the annual report;
- the investment management fee has been allocated 75% to the capital column
and 25% to the revenue column of the Income Statement in line with the Board's
expected long term split of returns, in the form of capital gains and income
respectively, from the investment portfolio; and
- performance fees have been allocated 100% to the capital column of the Income
Statement, as performance has been predominantly generated through capital
returns of the investment portfolio.
(g) Long term borrowings and finance costs
Long term borrowings are carried in the Balance Sheet at amortised cost,
representing the cumulative amount of net proceeds on issue plus accrued
finance costs. Finance costs are accounted for on an accruals basis. Finance
costs are allocated, insofar as they relate to the financing of the Company's
investments, 75% to the capital column and 25% to the revenue column of the
Income Statement, in line with the Board's expected long term split of returns,
in the form of capital gains and income respectively, from the investment
portfolio.
(h) Taxation
Deferred tax is recognised in respect of all temporary differences at the
balance sheet date, where transactions or events that result in an obligation
to pay more tax in the future or right to pay less tax in the future have
occurred at the balance sheet date. Deferred tax is measured on a
non-discounted basis, at the average tax rates that are expected to apply in
the periods in which the timing differences are expected to reverse based on
tax rates and laws that have been enacted or substantively enacted by the
balance sheet date. This is subject to deferred tax assets only being
recognised if it is considered more likely than not that there will be suitable
profits from which the future reversal of the temporary differences can be
deducted.
Where expenses are allocated between capital and revenue, any tax relief in
respect of the expenses is allocated between capital and revenue returns on the
marginal basis using the Company's effective rate of corporation tax for the
accounting period.
(i) Dividends payable
Under FRS 21 final dividends should not be accrued in the financial statements
unless they have been approved by shareholders before the balance sheet date.
Interim and special dividends should not be accrued in the financial statements
unless they have been paid.
Dividends payable to equity shareholders are recognised in the Reconciliation
of Movements in Shareholders' Funds when they have been approved by
shareholders in the case of a final dividend, or paid in the case of an interim
dividend, and have become a liability of the Company.
(j) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents are short
term, highly liquid investments, that are readily convertible to known amounts
of cash and that are subject to an insignificant risk of changes in value.
(k) Going concern
The Directors are satisfied that the Company has adequate resources to continue
in operational existence for the foreseeable future and therefore consider the
going concern assumption to be appropriate.
3. Income
2013 2012
£'000 £'000
Investment income:
UK listed dividends 5,955 5,530
UK listed dividends - special 400 127
Property income dividends 133 105
Overseas listed dividends 209 186
----- -----
6,697 5,948
----- -----
Other income:
Deposit interest - 1
Underwriting commission 8 2
----- -----
8 3
----- -----
Total 6,705 5,951
===== =====
Total income comprises:
Dividends 6,697 5,948
Other income 8 3
----- -----
6,705 5,951
===== =====
4. Investment management and performance fees
2013 2012
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment management
fee 418 1,254 1,672 384 1,151 1,535
Performance fee - 860 860 - 781 781
--- ----- ----- --- ----- -----
Total 418 2,114 2,532 384 1,932 2,316
=== ===== ===== === ===== =====
The investment management fee is calculated based on 0.65% in respect of the
first £50 million of the Company's total assets less current liabilities,
reducing to 0.50% thereafter. A performance fee is payable at the rate of 10%
of the annualised excess performance over the benchmark in the two previous
financial years, applied to the average of the total assets less current
liabilities of the Company. The fee is payable annually in April and is capped
at 0.25% of the average of the total assets less current liabilities of the
Company.
3.25% outperformance was generated against the Company's benchmark for the
performance period ended 28 February 2013. The fee was restricted by the 0.25%
cap and £860,000 has been accrued for the year ended 28 February 2013 (2012:
£781,000).
Performance fees have been wholly allocated to capital reserves as the
performance has been predominantly generated through capital returns of the
investment portfolio.
5. Operating activities
2013 2012
£'000 £'000
(a) Other operating expenses
Auditor's remuneration:
- audit services 18 18
- non audit services* 6 6
Registrar's fee 25 27
Directors' remuneration 118 113
Other administrative costs 230 208
---- ----
397 372
==== ====
The Company's ongoing charges - calculated as a percentage
of average shareholders' funds and using operating
expenses, excluding performance fees, finance costs and
taxation were: 0.6% 0.7%
---- ----
The Company's ongoing charges - calculated as a percentage
of average shareholders' funds and using operating expenses,
including performance fees, and taxation and excluding
finance costs were: 1.0% 1.0%
==== ====
* Non audit services relate to the review of the half
yearly financial statements.
£'000 £'000
(b) Reconciliation of net return before finance costs and
taxation to net cash flow from operating activities
Total return before finance costs and taxation 54,214 4,302
(Less)/add: capital (return)/loss before finance costs and
taxation (48,324) 893
------ ------
Net revenue return before finance costs and taxation 5,890 5,195
Investment management and performance fees charged to
capital (2,114) (1,932)
Increase in accrued income (12) (60)
Increase in creditors 333 414
------ ------
Net cash inflow from operating activities 4,097 3,617
====== ======
6. Dividends
Dividends paid or Record Payment 2013 2012
proposed on equity shares: date date £'000 £'000
2011 final of 4.80p 13 May 2011 21 June 2011 - 2,298
2012 interim of 2.42p 28 October 2011 2 December 2011 - 1,159
2012 final of 5.98p 1 June 2012 4 July 2012 2,863 -
2013 interim of 3.50p 9 November 2012 7 December 2012 1,676 -
----- -----
4,539 3,457
===== =====
The Directors have proposed a final dividend of 6.50p per share in respect of the
year ended 28 February 2013. The proposed final dividend will be paid, subject
to shareholders' approval, on 3 July 2013 to shareholders on the Company's
register on 31 May 2013. The final dividend has not been included as a
liability in these financial statements as final dividends are only recognised
in the financial statements when they have been approved by shareholders, or in
the case of special dividends, recognised when paid to shareholders.
The total dividends payable in respect of the year which form the basis of
determining retained income for the purposes of section 1158 of the Corporation
Tax Act 2010 and section 833 of the Companies Act 2006, and the amounts
proposed, meet the relevant requirements as set out in this legislation.
2013 2012
£'000 £'000
Dividends paid or proposed on equity shares:
Interim paid of 3.50p (2012: 2.42p) 1,676 1,159
Final proposed of 6.50p* (2012: 5.98p) 3,112 2,863
----- -----
4,788 4,022
===== =====
* Based upon 47,879,792 ordinary shares (excluding treasury shares) in issue on
26 April 2013.
7. Return per ordinary share
Revenue and capital returns per share are shown below and have been calculated
using the following:
2013 2012
Net revenue return attributable to ordinary shareholders
(£'000) 5,520 4,865
Net capital return/(loss) attributable to ordinary
shareholders (£'000) 47,220 (1,877)
------- -------
Total return (£'000) 52,740 2,988
======= =======
Total equity shareholders' funds (£'000) 344,934 296,733
======= =======
The weighted average number of ordinary shares in issue
during each year on which the return per ordinary share
was calculated, was: 47,879,792 47,879,792
The actual number of ordinary shares in issue at the end
of each year on which the net asset value was calculated,
was: 47,879,792 47,879,792
========== ==========
2013 2012
Revenue Capital Total Revenue Capital Total
p p p p p p
Return per share
Calculated on
weighted average
number of shares 11.53 98.62 110.15 10.16 (3.92) 6.24
Calculated on actual
number of shares 11.53 98.62 110.15 10.16 (3.92) 6.24
----- ----- ------ ----- ---- ------
Net asset value per
share (debenture at
par value) 720.42 619.75
------ ------
Net asset value per
share (debenture at
fair value) 715.37 615.55
====== ======
8. Called-up share capital
Ordinary Treasury Total Nominal
shares shares shares value
(nominal) (nominal) in issue £'000
Allotted, called-up and fully paid
share capital comprised:
Ordinary shares of 25p each
At 1 March 2012 47,879,792 2,113,731 49,993,523 12,498
---------- --------- ---------- ------
At 28 February 2013 47,879,792 2,113,731 49,993,523 12,498
========== ========= ========== ======
During the year no ordinary shares were purchased for cancellation or placed in
treasury (2012: nil). The number of ordinary shares in issue at the year end,
excluding treasury shares, was 47,879,792 (2012: 47,879,792).
The ordinary shares (excluding any shares held in treasury) carry the right to
receive any dividends and have one voting right per ordinary share. There are
no restrictions on the voting rights of the shares or the transfer of the
shares.
9. Publication of non-statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006.
The figures set out above have been reported upon by the auditor. The
comparative figures are extracts from the audited financial statements of
BlackRock Smaller Companies Trust plc for the year ended 29 February 2012,
which have been filed with the Registrar of Companies. The report of the
auditor for the years ended 29 February 2012 and 28 February 2013 contain no
qualification or statement under section 498(2) or (3) of the Companies Act
2006. The 2013 annual report will be filed with the Registrar of Companies
after the Annual General Meeting.
10. Annual Report
Copies of the annual report will be sent to members shortly and will be
available from The Company Secretary, BlackRock Smaller Companies Trust plc,
12 Throgmorton Avenue, London EC2N 2DL.
11. Annual General Meeting
The Annual General Meeting of the Company will be held at 12 Throgmorton
Avenue, London EC2N 2DL on 26 June 2013 at 2:30 p.m.
ENDS
The Annual Report will also be available on the BlackRock Investment Management
website at http://www.blackrock.co.uk/individual/literature/annual-report/
blackrock-smaller-companies-trust-plc-annual-report.pdf. 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.
For further information, please contact:
Simon White, Managing Director, Investment Companies, BlackRock Investment
Management (UK) Limited
Tel: 020 7743 5284
Mike Prentis, BlackRock Investment Management (UK) Limited
Tel: 020 7743 2312
Emma Phillips, Media & Communications, BlackRock Investment Management (UK)
Limited
Tel: 020 7743 2922
26 April 2013
12 Throgmorton Avenue
London EC2N 2DL
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