REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

06/02/2026 15:30

The information contained in this release was correct as at                   
              31 December 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 December 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  0.3          -0.2            -0.6      3.1        -2.2       
 Share price      0.6          0.6             -1.2      6.2        -13.5      
 Benchmark*       1.4          1.6             11.8      21.2       13.6       

 

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):      1,396.11p   
 Net asset value Capital only (debt at fair value):     1,461.47p   
 Net asset value incl. Income (debt at par value) 1 :   1,422.85p   
 Net asset value incl. Income (debt at fair value) 1 :  1,488.21p   
 Share price:                                           1,310.00p   
 Discount to Cum Income NAV (debt at par value):        7.9%        
 Discount to Cum Income NAV (debt at fair value):       12.0%       
 Net yield 2 :                                          3.4%        
 Gross assets 3 :                                       £636.0m     
 Gearing range as a % of net assets:                    0-15%       
 Net gearing including income (debt at par):            7.4%        
 Ongoing charges ratio (actual) 4 :                     0.8%        
 Ordinary shares in issue 5 :                           39,812,792  
                                                                    

1.                        Includes net revenue of 26.74p                     
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 10,180,731 ordinary shares held in
treasury.

                         
 Sector Weightings       % of portfolio  
 Industrials             31.6            
 Financials              26.7            
 Basic Materials         9.8             
 Consumer Discretionary  9.5             
 Consumer Staples        6.8             
 Real Estate             4.6             
 Health Care             4.5             
 Technology              2.1             
 Communication Services  2.0             
 Energy                  1.8             
 Utilities               0.6             
                         -----           
 Total                   100.0           
                         =====           
                                         
                                         
 Country Weightings      % of portfolio  
 United Kingdom          97.3            
 United States           2.7             
                         -----           
 Total                   100.0           
                         =====           
                                         
                                           

 

 Ten Largest Equity Investments    % of portfolio  
   Company                                         
 Serco Group                       3.0             
 XPS Pensions                      3.0             
 IntegraFin                        2.9             
 Great Portland Estates            2.8             
 Boku                              2.7             
 Greencore Group Plc               2.7             
 Tatton Asset Management           2.6             
 Morgan Sindall                    2.6             
 Sigmaroc Plc                      2.2             
 Pollen Street Group               2.0             
                                                   

 

Commenting on the markets, Roland Arnold, representing the Investment Manager
noted:                    
          
          During December the Company’s NAV per share rose 0.3% to 1,488.21p
on a total return basis, while our benchmark index, the Deutsche Numis Smaller
Companies plus AIM (excluding Investment Companies) Index, returned 1.4%.

 

Global equity markets rose in December, resulting in a third straight year of
global equities recording double-digit gains despite consistent bouts of
volatility. AI jitters were a feature in the US during the month,            
         and precious metals were strong. In the UK, the Bank of England
delivered a 25bps rate cut mid-month to the lowest level in 3 years,
supporting equity markets. Inflation cooled more than expected, though wage
growth and sticky food prices kept policymakers cautious about further easing.
All indices in the UK rose during the month, however large caps outperformed
small and mid-caps, helped by financials and materials.

 

Serco                     was the largest contributor during the month,
performing well after the company upgraded guidance for 2025 whilst setting a
stronger outlook for 2026. Not owning                      Ceres Power        
            and                      Spire Healthcare                     also
benefited relative performance. Ceres fell in response to a short case
research report that flagged various challenges facing the business and Spire
warned during the month. Other notable contributors included                  
   Atalaya Mining                     and                      Central Asia
Metals                    , which outperformed along with the wider mining
sector.

 

Not owning                      Greatland Resources                     was
the largest detractor during the month, as the shares rallied in line with
other miners.                      XPS Pensions                     was the
second largest detractor after falling on no stock specific news but giving
back gains in the share price following results in November. The business
continues to deliver high single digit revenue and profit growth and is
steadily gaining share in the pensions administration market. We maintain our
position as we expect this growth to persist — and potentially accelerate
— now that a period of tough comps has passed while underlying contract
momentum remains strong. The third largest detractor was                     
Tatton Asset Management                    , which we believe continues to be
impacted by outflows from the UK Smaller Companies sector, where the shares
are widely owned by certain peers. The shares have de-rated during the year
despite strong upgrades and growth, and they are the market leading provider
of MPS solutions to the UK wealth management market. We therefore retain our
holding.

 

Turning to the outlook, it is very easy to be negative. The geo-political
situation is volatile, the economic outlook is unstable, there are significant
structural and technological trends upending industries, Western governments
are weighed down by debt at the same time the requirements for defence,
welfare and health continue to rise. From a UK perspective the budget has
increased pressure on businesses and injected further inflationary pressures
into the economy, in turn making it harder for the Bank of England to reduce
rates. This uncertainty has resulted in significant outflows across UK
equities, which have been particularly damaging to SMID companies. Whilst
history does not necessarily repeat, it can provide a guide. Smaller companies
have seen much of this before, the Global Financial Crisis, Brexit, Covid, and
many of them came through these difficult times better positioned. The level
of M&A (Mergers & Acquisitions) in the UK tells us others perceive value in
the asset class, all we need now is to encourage equity investors to sense the
same opportunity.

 

We thank shareholders for your ongoing support.

 

6 February 2026

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/22402/4303938/3922415.pdf)  



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