REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

31/10/2025 08:30

The information contained in this release was correct as at                   
              30 September 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                                  30 September 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       Three      Five       
                   %            %               year      years      years     
                                                %         %          %         
 Net asset value  2.1          0.4             -4.2      15.3       23.2       
 Share price      1.1          -0.2            -7.0      18.7       23.6       
 Benchmark*       2.9          2.9             8.3       27.6       35.8       

 

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):      1,409.43p   
 Net asset value Capital only (debt at fair value):     1,476.50p   
 Net asset value incl. Income (debt at par value) 1 :   1,440.47p   
 Net asset value incl. Income (debt at fair value) 1 :  1,507.53p   
 Share price:                                           1,318.00p   
 Discount to Cum Income NAV (debt at par value):        8.5%        
 Discount to Cum Income NAV (debt at fair value):       12.6%       
 Net yield 2 :                                          3.3%        
 Gross assets 3 :                                       £661.0m     
 Gearing range as a % of net assets:                    0-15%       
 Net gearing including income (debt at par):            7.5%        
 Ongoing charges ratio (actual) 4 :                     0.8%        
 Ordinary shares in issue 5 :                           41,061,792  
                                                                    
1.                        Includes net revenue of 31.04p                     
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 Interim dividend of 15.50 pence per share (announced on 25
October 2024, ex-date on 31 October 2024, and paid on 04 December 2024) and
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).                     
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 ended 28 February 2025.                      
5.                        Excludes 8,931,731 ordinary shares held in treasury.
 

                         
 Sector Weightings       % of portfolio  
 Industrials             30.9            
 Financials              28.9            
 Consumer Discretionary  9.3             
 Basic Materials         8.8             
 Consumer Staples        7.1             
 Health Care             4.7             
 Real Estate             4.4             
 Energy                  2.1             
 Communication Services  1.4             
 Utilities               1.2             
 Technology              1.2             
                         -----           
 Total                   100.0           
                         =====           
                                         
                                         
 Country Weightings      % of portfolio  
 United Kingdom          97.2            
 United States           2.8             
                         -----           
 Total                   100.0           
                         =====           
                                         
                                           

 

 Ten Largest Equity Investments    % of portfolio  
   Company                                         
 Boku                              2.8             
 XPS Pensions                      2.7             
 IntegraFin                        2.7             
 Tatton Asset Management           2.6             
 Serco Group                       2.5             
 Great Portland Estates            2.5             
 Morgan Sindall                    2.4             
 Greencore Group Plc               2.3             
 Ithaca Energy                     2.1             
 Rosebank                          2.1             
                                                   

Commenting on the markets, Roland Arnold, representing the Investment Manager
noted:                    
          
          During September the Company’s NAV per share rose 2.1% to
1,507.53p on a total return basis, while our benchmark index, the Deutsche
Numis Smaller Companies plus AIM (excluding Investment Companies) Index,
returned 2.9%.          1

 

Equity markets globally posted their best September in 15 years, with major
benchmarks hitting record highs despite sluggish economic growth and
persistent political uncertainty. The month opened against a tense backdrop in
the UK, where fiscal concerns dominated headlines. Political reshuffles at No.
10 and speculation over Chancellor Rachel Reeves’ influence ahead of the
November budget unsettled markets. Borrowing costs surged as the 30-year gilt
yield climbed above 5.7%, its highest since 1998. The Bank of England held the
base rate at 4% and slowed quantitative tightening to ease gilt market
volatility.

 

Whilst it was a positive month across all market caps in the UK, small and
mid-caps outperformed, very much driven by miners and more traditional value
areas of the market.

 

The largest detractor in the month was our holding in Hilton Food Group, which
fell following a profit downgrade. Trading conditions in the UK have
deteriorated as customers have become more price sensitive in their
supermarket shopping, and the company have experienced an issue shipping into
the US. We have subsequently reduced the position. Elsewhere within food
producers, Greencore shares fell as Bakkavor, a UK-based fresh food supplier
which Greencore agreed to acquire in May, signaled that rising commodity
prices and wage increases are set to add around £65 million to costs this
year, which is above previous expectations of circa £50 million. Not owning
Greatland Resources was a detractor as the shares remained strong on the back
of the souring price of gold. The company also published its annual report
through the month, highlighting strong FY26 production guidance. Our exposure
to miners is focused on producing assets, whereas we have avoided Greatland,
given its exposure to some large exploration assets which we feel add
additional risk to the business

 

Sylvania Platinum’s year-end results highlighted record production with net
revenue +28% year-on-year and annual production exceeding original guidance.
Rosebank Industries rallied in response to a sell-side initiation, plus
supportive third party external data suggesting consumer electronic volumes in
Rosebank’s relevant categories haven’t been impacted as much as had been
feared by tariffs. This is a management team that we know well from their time
at Melrose, and they have an impressive track record of delivering value to
shareholders through a strategy of buy/improve/sell. The third largest
contributor was technology and services provider to the pharmaceuticals
industry, Diaceutics. The shares rallied after the company reported strong H1
2025 results, with a 22% increase in revenues, and recurring revenue now
accounting for 61% of the total. With continued positive momentum and strong
order book, the business remains well set to return to profitability for the
full year.

 

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 & acquisitions) 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.

 

1          Source: BlackRock as at 30 September 2025


31 October 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.

 Release  (https://mb.cision.com/Main/22402/4258665/3756110.pdf)  



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