REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

23/12/2025 16:45

The information contained in this release was correct as at                   
              30 November 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 November 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  -1.4         1.5             -3.1      1.8        8.0        
 Share price      -0.6         1.1             -1.5      5.9        0.7        
 Benchmark*       -0.2         3.1             10.1      18.2       21.4       

 

Sources:                      BlackRock and Deutsche Numis

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

 

 

At month end

 Net asset value Capital only (debt at par value):      1,393.12p   
 Net asset value Capital only (debt at fair value):     1,458.34p   
 Net asset value incl. Income (debt at par value) 1 :   1,418.10p   
 Net asset value incl. Income (debt at fair value) 1 :  1,483.33p   
 Share price:                                           1,302.00p   
 Discount to Cum Income NAV (debt at par value):        8.2%        
 Discount to Cum Income NAV (debt at fair value):       12.2%       
 Net yield 2 :                                          3.4%        
 Gross assets 3 :                                       £635.9m     
 Gearing range as a % of net assets:                    0-15%       
 Net gearing including income (debt at par):            8.3%        
 Ongoing charges ratio (actual) 4 :                     0.8%        
 Ordinary shares in issue 5 :                           39,907,792  
                                                                    

  
1.                        Includes net revenue of 24.98p                     
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 10,085,731 ordinary shares held in
treasury.
  

                         
 Sector Weightings       % of portfolio  
 Industrials             31.5            
 Financials              27.0            
 Consumer Discretionary  9.6             
 Basic Materials         9.2             
 Consumer Staples        6.5             
 Health Care             4.8             
 Real Estate             4.2             
 Technology              2.2             
 Communication Services  1.9             
 Energy                  1.9             
 Utilities               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                                         
 XPS Pensions                      3.1             
 Morgan Sindall                    2.9             
 Serco Group                       2.9             
 IntegraFin                        2.8             
 Boku                              2.8             
 Tatton Asset Management           2.7             
 Greencore Group Plc               2.5             
 Great Portland Estates            2.5             
 Rosebank                          2.1             
 Pollen Street Group               2.0             
                                                   
                                                   

Commenting on the markets, Roland Arnold, representing the Investment Manager
noted:                    
          
          During November the Company’s NAV per share returned -1.4% to
1,483.33p on a total return basis, while our benchmark index, the Deutsche
Numis Smaller Companies plus AIM (excluding Investment Companies) Index, which
returned -0.2%.

 

Equity markets faced significant volatility in November, marked by sharp
sector rotations and shifting investor sentiment. In the UK, the spotlight was
on fiscal policy. Chancellor Rachel Reeves’ Autumn Budget expanded fiscal
headroom to £22 billion with new policies on personal taxation, pensions, ISA
cash limits and more. Overall, there were no real surprises in policy versus
what had already been briefed in advance, which led to little for investors to
reassess. The market reaction was fairly muted; gilt yields edged lower on
reduced issuance expectations, and equities were broadly flat. However,
looking forward, there were limited positives to takeaway, particularly given
a further £26 billion of tax rises. Against this backdrop, UK large caps and
value outperformed during the course of the month while small and mid-caps
recorded a small negative return.

 

The largest detractor was PayPoint, a multi-channel payments provider, which
declined after cautioning that achieving its £100 million EBITDA (Earnings
Before Interest, Taxes, Depreciation, and Amortisation) target will take
longer than originally expected. While progress continues, parcel volumes have
been affected by the harmonisation of InPost and Yodel services, and growth in
the Obconnect new business pipeline has been slower than anticipated. Shares
in digital payments firm Boku also fell, despite no specific negative news.
Chemring weakened in line with the broader aerospace and defence sector amid
increased optimism for a Ukraine-Russia peace agreement.

 

XPS Pensions was the top contributor in November, rallying after reporting
strong H1 2026 results late in the month. The company delivered double-digit
year-on-year revenue growth, driven by robust performance in pensions
administration and advisory services. This reflects structural tailwinds in
the UK pensions market, where increasing regulatory complexity and rising
demand for de-risking solutions are fuelling activity. Continued regulatory
changes remain a key catalyst for long-term growth, reinforcing our investment
thesis and supporting expectations for sustained earnings momentum into FY26.
Alternatives asset manager Pollen Street, reported a 9.9% increase in AUM
(assets under management) in the third quarter (32% year-on-year), driven by
strong fundraising and capital deployment in both private credit and private
equity strategies. The company remains on track to meet its medium-term AUM
target of £10 billion, supported by strong investor demand and its solid
position within the industry. Not owning FirstGroup was another positive
contributor after the company released interim results that showed solid
revenue growth but flagged softening bus volumes, a cash outflow relating to
bus electrification and a muted outlook, which saw the shares fall.

 

Turning to the outlook, it is very easy to be negative. With regards to the
contents of the budget, it was somewhat disappointing, with spending front
loaded and revenue back end loaded. A business rates policy that is supposed
to favour the small retailer and hospitality firm over the online giants but
will instead end up seeing the average pub pay significantly more, which will
likely lead to more price rises and lower employment. Rather than being the
clearing event, it probably is a stop gap until the May elections, meaning
more uncertainty. This climate of uncertainty will do little to stem the
substantial outflows from UK equities, with small and mid-cap companies
bearing the brunt.

 

However, we continue to take comfort in the longer-term outlook for the asset
class and the tremendous value that we think many of the holdings in the
portfolio continue to offer. 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 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.

 

23 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/22402/4286306/3857677.pdf)  



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