BLACKROCK SMALLER COMPANIES TRUST PLC
All information is at 28 FEBRUARY 2014 and unaudited.
Performance at month end is calculated on a capital only basis
One Three One Three Five
Month Months Year Years Years
Net asset value* 3.6% 9.6% 36.9% 58.9% 250.8%
Share price* -0.3% 8.4% 44.9% 67.5% 413.0%
Numis ex Inv Companies + AIM 4.5% 8.4% 24.2% 34.8% 183.4%
Sources: BlackRock and Datastream
At month end
Net asset value Capital only (debt at par value): 975.49p
Net asset value Capital only (debt at fair value): 968.03p
Net asset value incl. Income (debt at par value)**: 985.48p
Net asset value incl. Income (debt at fair value)**: 978.02p
Share price: 908.00p
Discount to Cum Income NAV (debt at par value): 7.9%
Discount to Cum Income NAV (debt at fair value): 7.2%
Net yield^^^: 1.2%
Total assets^: £511.7m
Gearing range as a % of net assets: 0-15%
Net gearing including income (debt at par): 8.5%
2013 Ongoing charges ratio^^: 0.6%
Ordinary shares in issue#: 47,879,792
*performance calculations based on a capital only NAV with debt at par, without
income reinvested. Share price performance calculations exclude income
reinvestment.
**includes net revenue of 9.99p
^includes current year revenue
^^As reported in the Half Yearly Financial Report for the period ended
31 August 2013, the ongoing charges ratio is calculated as a percentage of
net assets and using operating expenses, excluding performance fees, finance
costs and taxation.
^^^Yield calculations are based on dividends announced in the last 12 months as
at the date of release of this announcement, and comprise the final dividend of
6.50 pence per share (announced on 26 April 2013 and going ex-dividend on
29 May 2013) and the interim dividend of 4.60 pence per share (announced on
24 October 2013, going ex-dividend on 30 October 2013).
#excludes 2,113,731 shares held in treasury
Sector Weightings % of portfolio
Industrials 27.1
Financials 18.7
Consumer Services 17.7
Technology 9.3
Consumer Goods 8.3
Health Care 7.0
Basic Materials 6.5
Oil & Gas 3.4
Telecommunications Services 2.0
-----
Total 100.0
=====
Ten Largest Equity Investments
Company Total Market Value %
Optimal Payments 2.1
Bellway 1.9
Workspace 1.8
Senior 1.7
XAAR 1.6
Elementis 1.6
Restaurant Group 1.5
Polar Capital Holdings 1.5
Dunelm Group 1.5
Avon Rubber 1.4
Commenting on the markets, Mike Prentis, representing the Investment Manager
noted:
During February the Company's NAV per share rose by 3.6% on a capital only
basis. The benchmark index rose by 4.5% whilst the FTSE 100 Index rose by 4.6%;
again both on a capital only basis.
The relative contribution from stock selection was negative, the contribution
from sector allocation was negligible and the contribution from gearing was
positive.
The largest negative contributor to stock selection was the Company's holding
in Hyder Consulting, where the share price fell by 33% during the month; the
negative impact on relative performance was 0.5%. Hyder, a firm of consulting
engineers, warned that profits for the year ending 31 March 2014 would fall
short of expectations. The main reason for this was attributed to contract
award delays in Australia, as the relatively new Government decides on the best
way to finance planned infrastructure projects, some of which Hyder is helping
to design. Earnings forecasts were cut by an average of 20% for the current and
following financial year. We regard Hyder management highly, and recognise
revenues in this type of business can be lumpy. The shares are now valued at
about 12 times downgraded current year earnings and 60% of current year sales
projections which we see as attractive in the current market. Hyder's balance
sheet is strong; and although the shares continue to have risks we feel the
risk reward balance is skewed to the upside on a medium term view.
On the positive side Optimal Payments made another positive contribution to
performance. Optimal is growing fast, is high margin and very cash generative.
During February we trimmed further some of the Company's holdings in larger
midcaps, many of which have performed very well. We have used the proceeds to
take small new positions in DX Group, a mail, parcels and logistics business
which completed an IPO at an attractive valuation. We also took part in
placings in Tarsus, the exhibitions group which has more of an emerging market
focus which has held back its valuation recently, but which should work in its
favour over the medium term; and Hayward Tyler, a manufacturer of electric
motors and pumps used in high temperature and pressure applications, often in
the oil & gas and power sectors.
14 March 2014
ENDS
Latest information is available by typing www.blackrock.co.uk/brscon 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.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.