REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

01/12/2025 10:45

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       Three      Five       
                   %            %               year      years      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 yield 2 :                                          3.4%        
 Gross assets 3 :                                       £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 issue 5 :                           40,404,792  
                                                                    

  
1.                        Includes net revenue of 35.99p                     
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 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).                     
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 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    % of portfolio  
   Company                                         
 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.          
           

1          Source: 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.

 Release  (https://mb.cision.com/Main/22402/4275043/3816566.pdf)  



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