Interim Management Statement

RNS Number : 9225T

Henderson Smaller Cos Inv Tst PLC

09 October 2014

 



HENDERSON INVESTMENT FUNDS LIMITED

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

[9 OCTOBER 2014]

THE HENDERSON SMALLER COMPANIES INVESTMENT TRUST PLC

INTERIM MANAGEMENT STATEMENT

The objective of The Henderson Smaller Companies Investment Trust plc is to maximise shareholders' total returns by investing in smaller companies that are quoted in the United Kingdom.  The benchmark is the Numis Smaller Companies Index (excluding investment companies).  The Manager is Henderson Global Investors Limited. Information about the Company can be found on the Manager's website www.hendersoninvestmenttrusts.com  or www.hendersonsmallercompanies.com .

Review of the period from 1 June 2014 to 31 August 2014

In accordance with the Alternative Investment Fund Managers Directive, the Company appointed Henderson Investment Funds Limited as its Alternative Investment Fund Manager with effect from 22 July 2014. HSBC Bank plc was appointed as Depositary with effect from 22 July 2014.

Between 1 June 2014 and 31 August 2014 the net asset value per share (including current financial year revenue items) increased by 0.22%, while the Company's benchmark decreased by 1.27% on a total return basis.  The Company has maintained a modest level of gearing. As at 31 August 2014 the Company had total borrowings of £42.3 million, representing gearing of 8.9%.

The share price at 31 August 2014 was 538.5p, giving the Company a market capitalisation of £402.3 million.  Since 1 June 2014 the Company has not bought back any of its ordinary shares.  The number of ordinary shares in issue is currently 74,701,796. 

Dividend

The Company announced its annual results for the year ended 31 May 2014 on 1 September 2014. The final dividend of 8.0p per ordinary share, which was approved at the Annual General Meeting held on 3 October 2014, will be paid on 10 October 2014 to shareholders on the register of members at the close of business on 19 September 2014.

The 8.0p final dividend, in conjunction with the interim dividend of 3.0p paid on 7 March 2014, provides a dividend yield of 2.04% based on the share price of 538.5p as at 31 August 2014.

Net Asset Value (NAV)

As at close of business on 31 August 2014, the unaudited net asset value per share, calculated in accordance with the AIC (Association of Investment Companies) formula, including current financial year revenue items, was 636.79p. The unaudited net asset value per share, including current financial year revenue items but calculated by valuing the Company's debenture stock at market value, was 633.59p. 

Performance

The Company's performance, on a total return basis, in the periods of one month, three months, one year and three years to 31 August 2014 was as follows:

	1 month	3 months	1 year	3 years
NAV per share¹	3.77	0.22	12.51	94.07
Share price	5.38	-1.55	10.09	106.78
Benchmark²	1.64	-1.27	11.29	70.10

Sources: Henderson Global Investors, Morningstar, Datastream

1  The net asset value total return figures are calculated on the basis that the Company's issue of Debenture Stock is included at its par value, as in the financial statements.

2  The benchmark is the Numis Smaller Companies Index (excluding investment companies).

Largest Investments

The top twenty holdings as at 31 August 2014 are:

	Company	Valuation £	% of portfolio
1.	BELLWAY	14,842,800	2.87
2.	TAYLOR WIMPEY	13,465,500	2.60
3.	INTERSERVE	12,766,902	2.47
4.	WS ATKINS	11,144,000	2.15
5.	INFORMA	11,032,931	2.13
6.	PARAGON	10,864,350	2.10
7.	E2V TECHNOLOGIES	10,734,971	2.07
8.	HOWDEN JOINERY	10,160,250	1.96
9.	SENIOR	10,006,500	1.93
10.	SPECTRIS	9,735,000	1.88
11.	AA	9,582,146	1.85
12.	VICTREX	9,385,200	1.81
13.	INTERMEDIATE CAPITAL	8,874,000	1.72
14.	NORTHGATE	8,500,300	1.64
15.	GRAINGER	8,375,718	1.62
16.	PLAYTECH	8,100,000	1.57
17.	RESTAURANT GROUP	7,692,599	1.49
18.	OXFORD INSTRUMENTS	7,586,547	1.47
19.	ROTORK	7,579,000	1.46
20.	ESSENTRA	7,541,600	1.46
	Totals	197,970,314	38.26

For further information, please contact:

Neil Hermon

Fund Manager

The Henderson Smaller Companies Investment Trust plc

Telephone: [phone]                                                    

James de Sausmarez

Director and Head of Investment Trusts                                 

Henderson Global Investors                                                   

Telephone: [phone]

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