REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

Yesterday 17:30

The information contained in this release was correct as at                   
              28 February 2026                               .               
      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                                  28 February 2026       
                        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  -0.1         6.5             11.2      7.2        0.5        
 Share price      2.2          7.7             14.2      11.7       -5.2       
 Benchmark*       0.8          7.2             21.5      21.5       14.0       

 

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):      1,487.30p   
 Net asset value Capital only (debt at fair value):     1,549.67p   
 Net asset value incl. Income (debt at par value) 1 :   1,516.74p   
 Net asset value incl. Income (debt at fair value) 1 :  1,579.12p   
 Share price:                                           1,402.00p   
 Discount to Cum Income NAV (debt at par value):        7.6%        
 Discount to Cum Income NAV (debt at fair value):       11.2%       
 Net yield 2 :                                          3.2%        
 Gross assets 3 :                                       £673.4m     
 Gearing range as a % of net assets:                    0-15%       
 Net gearing including income (debt at par):            5.7%        
 Ongoing charges ratio (actual) 4 :                     0.8%        
 Ordinary shares in issue 5 :                           39,812,792  
                                                                    
1.                        Includes net revenue of 29.44p                     
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             32.7            
 Financials              22.7            
 Consumer Discretionary  12.0            
 Basic Materials         9.1             
 Consumer Staples        8.1             
 Real Estate             5.3             
 Health Care             3.5             
 Communication Services  2.9             
 Technology              1.9             
 Energy                  1.8             
                         -----           
 Total                   100.0           
                         =====           
 Country Weightings      % of portfolio  
 United Kingdom          97.4            
 United States           2.6             
                         -----           
 Total                   100.0           
                         =====           
                                         
                                           

 

 Ten Largest Equity Investments    % of portfolio  
   Company                                         
 Greencore Group Plc               2.8             
 Great Portland Estates            2.8             
 Serco Group                       2.7             
 IntegraFin                        2.6             
 XPS Pensions                      2.6             
 Morgan Sindall                    2.6             
 Boku                              2.6             
 Tatton Asset Management           2.4             
 Helios Towers Plc                 2.3             
 Sigmaroc Plc                      2.2             
                                                   
                                                   

Commenting on the markets, Roland Arnold, representing the Investment Manager
noted:                    
          
          During February the Company’s NAV per share returned -0.1% to
1,579.12p on a total return basis, while our benchmark index, the Deutsche
Numis Smaller Companies plus AIM (excluding Investment Companies) Index,
returned 0.8%.

 

Equity markets continued to grind higher, although leadership broadened
meaningfully beneath the surface. Investors rotated away from more crowded AI
and software names towards cyclical and value-oriented areas, as questions
emerged around the near-term payback from elevated levels of AI investment. At
the same time, macro conditions were influenced by policy uncertainty in the
US, particularly around trade tariffs, and a late-month escalation in
geopolitical tensions in the Middle East, which drove a modest shift in risk
sentiment. UK equities advanced over the month, with the FTSE All Share Index
rising 6.5%, supported by strength in more defensive large-cap areas. In
contrast, UK small and mid-cap companies underperformed, delivering a small
positive return, reflecting both style headwinds and continued outflows from
the asset class.

 

At a sector level, financials were the largest detractor, reflecting macro
volatility and increased concerns around credit risk. Holdings including XPS
Pensions, IntegraFin and Tatton Asset Management all detracted despite an
absence of company-specific news. Pollen Street Capital also underperformed,
caught up in broader weakness across private credit and alternative asset
managers. Elsewhere, Boku’s share price declined, likely reflecting broader
weakness across payments-related names linked to the ongoing rotation away
from AI beneficiaries. We do not believe this reflects any change in the
company’s fundamentals, with its multi-jurisdictional payments network
remaining a highly differentiated and difficult-to-replicate asset.

 

On the positive side, Ithaca Energy was a strong contributor, benefiting from
higher oil prices following the escalation of tensions in the Middle East. The
company also delivered a positive trading update, with production in line with
upgraded guidance and further capacity growth expected into 2026. Pan African
Resources also performed well, reporting strong interim results driven by
higher gold production and elevated realised prices. Meanwhile, Senior, the
aerospace and defence engineer, saw its share price rise following
confirmation that it had received multiple takeover approaches, highlighting
ongoing M&A (Mergers & Acquisitions) interest across the UK market.

 

The current backdrop remains uncertain, with geopolitical tensions, fiscal
pressures and structural industry changes continuing to shape the investment
environment. In the UK, recent policy decisions have increased the burden on
businesses and may slow the pace at which interest rates can be reduced. This
has contributed to sustained outflows from UK equities, with small and mid-cap
companies particularly affected. However, history suggests that this part of
the market has demonstrated resilience through previous periods of disruption,
including the Global Financial Crisis, Brexit and the pandemic. We also note
that elevated levels of M&A activity in the UK point to the attractiveness of
valuations, with strategic and financial buyers recognising the opportunity.
In our view, this reinforces the long-term investment case for UK smaller
companies, even as near-term sentiment remains subdued.

 

We thank shareholders for your ongoing support.

 

27 March 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/22402/4328104/4012725.pdf)  



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