Portfolio Update

Summary by AI ^BETAClose X

BlackRock Smaller Companies Trust PLC reported that its Net Asset Value (NAV) per share increased by 0.9% to 1,520.87p in October, outperforming its benchmark index which returned 0.4%. The trust's gross assets stood at £658.1 million, with a net gearing of 8.8% and an ongoing charges ratio of 0.8%. The portfolio is heavily weighted towards the United Kingdom at 97.2%, with Industrials (32.1%) and Financials (26.2%) being the largest sector allocations. Key contributors to performance included Tatton Asset Management, Polar Capital, and Oxford Biomedica, while Goodwin, PayPoint, and Rosebank were notable detractors. The trust currently offers a net yield of 3.4%.

Disclaimer*

The information contained in this release was correct as at 31 October 2025. Information on the Company’s up to date net asset values can be found on the London Stock Exchange Website at

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK SMALLER COMPANIES TRUST PLC (LEI:549300MS535KC2WH4082)

All information is at 31 October 2025 and unaudited.
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 year %	Three years %	Five years %
Net asset value	0.9	0.3	-1.4	11.5	22.6
Share price	0.6	-0.2	-3.3	14.0	15.6
Benchmark*	0.4	2.5	11.0	25.4	35.1

Sources: BlackRock and Deutsche Numis

*With effect from 15 January 2024 the Numis Smaller Companies plus AIM (excluding Investment Companies) Index changed to Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies).

At month end

Net asset value Capital only (debt at par value):	1,420.65p
Net asset value Capital only (debt at fair value):	1,484.88p
Net asset value incl. Income (debt at par value)1:	1,456.64p
Net asset value incl. Income (debt at fair value)1:	1,520.87p
Share price:	1,326.00p
Discount to Cum Income NAV (debt at par value):	9.0%
Discount to Cum Income NAV (debt at fair value):	12.8%
Net yield2:	3.4%
Gross assets3:	£658.1m
Gearing range as a % of net assets:	0-15%
Net gearing including income (debt at par):	8.8%
Ongoing charges ratio (actual)4:	0.8%
Ordinary shares in issue5:	40,404,792

Includes net revenue of 35.99p
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 28.50 pence per share (announced on 07 May 2025, ex-date on 15 May 2025, and paid on 26 June 2025) and Interim dividend of 16.00 pence per share (announced on 24 October 2025, ex-date on 06 November 2025, and pay date 10 December 2025).
Includes current year revenue.
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 ended 28 February 2025.
Excludes 9,588,731 ordinary shares held in treasury.

Sector Weightings	% of portfolio
Industrials	32.1
Financials	26.2
Consumer Discretionary	9.5
Basic Materials	8.4
Consumer Staples	7.0
Health Care	4.8
Real Estate	4.7
Energy	2.5
Technology	2.2
Communication Services	1.5
Utilities	1.1
	-----
Total	100.0
	=====

Country Weightings	% of portfolio
United Kingdom	97.2
United States	2.8
	-----
Total	100.0
	=====

Ten Largest Equity Investments Company	% of portfolio
Boku	2.8
Tatton Asset Management	2.8
IntegraFin	2.8
XPS Pensions	2.7
Serco Group	2.7
Morgan Sindall	2.6
Great Portland Estates	2.6
Ithaca Energy	2.4
Greencore Group Plc	2.4
Rosebank	2.0

Commenting on the markets, Roland Arnold, representing the Investment Manager noted:

During October the Company’s NAV per share rose 0.9% to 1,520.87p on a total return basis, outperforming our benchmark index, the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index, which returned 0.4%.1

UK equities mirrored the resilience of markets globally in October, with the FTSE 100 Index setting successive record highs and the FTSE All-Share Index advancing about 3.7%, outperforming most developed market peers and indeed UK small and mid-caps, which while positive, eked out much less impressive gains. Softer inflation prints and dovish commentary from Bank of England’s Governor Andrew Bailey fuelled expectations of a December rate cut, even as macro signals remained mixed: inflation stayed above target at 3.8%, GDP (Gross Domestic Product) growth was minimal, and government borrowing hit its highest level since 2020.

Chancellor Rachel Reeves signalled higher taxes and spending restraint in the upcoming November Budget to rebuild fiscal headroom, alongside plans to accelerate investment through planning reforms.

The largest contributor during the month was Tatton Asset Management, which reported strong H1 2025 results with impressive net inflows, which drove a 37% year on year increase in AUM (Assets Under Management). The company has seen consistent growth in both revenues and profits, driven by net inflows, market performance and continued growth in new supporting IFAs (Independent Financial Advisers). Polar Capital shares rallied through the month as analysts on the sell-side increased their target price for the asset manager based on the valuation opportunity and growing earnings momentum. Oxford Biomedica shares continued their strong performance in October, recovering some of the share price fall following interim results in late September, despite reiterating guidance and seeing strong operational momentum. Certain sell-side analysts also upgraded the shares though, expecting full-year revenue to land at the upper end of guidance.

There was no common theme in the top detractors to performance for the month, with two of the top three names being names we do not own. The top detractor was not owning Goodwin, which announced a special dividend through the month and said that as a result of strong trading across all divisions, it expects trading profits to nearly double in the current year to April 2026. PayPoint gave back the gains from the share price rally in September on news that Royal Mail has bought a minority stake in Collect. Rosebank, a UK-listed but US industrial asset, with a buy/improve/sell mantra, gave back some of its performance from last month despite no stock specific news flow.

The outlook for the asset class is heavily focused on the upcoming UK budget, which has undoubtedly intensified challenges for businesses and added to inflationary pressures, complicating the Bank of England’s ability to lower interest rates. This climate of uncertainty has triggered substantial outflows from UK equities, with small and mid-cap companies bearing the brunt. While history may not repeat itself exactly, it often serves as a useful guide. Many smaller firms have weathered past crises —such as the Global Financial Crisis, Brexit, and Covid — and emerged stronger. The current level of M&A (Mergers and Aquistions) activity in the UK suggests that others see value in this asset class; now, the key is to inspire equity investors to recognize the same opportunity.

We thank shareholders for your ongoing support.

1Source: BlackRock as at 31 October 2025.

1 December 2025

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.