REG-BlackRock Smaller Companies Trust Plc: Portfolio Update

Blackrock Smaller Companies TrustAnnouncement

Today 15:00

The information contained in this release was correct as at                   
              31 March 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                                  31 March 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  -11.2        -5.7            3.5       1.9        -14.6      
 Share price      -14.8        -8.9            0.8       1.3        -23.2      
 Benchmark*       -11.7        -6.6            11.0      13.9       -3.4       

 

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):      1,262.52p   
 Net asset value Capital only (debt at fair value):     1,358.43p   
 Net asset value incl. Income (debt at par value) 1 :   1,307.04p   
 Net asset value incl. Income (debt at fair value) 1 :  1,402.95p   
 Share price:                                           1,194.00p   
 Discount to Cum Income NAV (debt at par value):        8.7%        
 Discount to Cum Income NAV (debt at fair value):       14.9%       
 Net yield 2 :                                          3.7%        
 Gross assets 3 :                                       £444.2m     
 Gearing range as a % of net assets:                    0-15%       
 Net gearing including income (debt at par):            5.1%        
 Ongoing charges ratio (actual) 4 :                     0.8%        
 Ordinary shares in issue 5 :                           28,665,211  
                                                                    

 
1.                        Includes net revenue of 44.52p                     
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 31 March
2026, ex-date on 09 April 2026, and payable on 08 May 2026) 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             32.6            
 Financials              24.2            
 Consumer Discretionary  11.2            
 Consumer Staples        8.4             
 Basic Materials         7.2             
 Real Estate             4.1             
 Health Care             3.9             
 Communication Services  3.2             
 Energy                  3.2             
 Technology              2.0             
                         -----           
 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             
 Greencore Group Plc               3.1             
 IntegraFin                        3.0             
 Serco Group                       2.9             
 Boku                              2.8             
 Morgan Sindall                    2.7             
 Tatton Asset Management           2.6             
 Helios Towers Plc                 2.5             
 Great Portland Estates            2.4             
 Young & Co's Brewery - A Shares   2.1             
                                                   
                                                   

Commenting on the markets, Roland Arnold, representing the Investment Manager
noted:                    
          
          During March the Company’s NAV per share returned -11.2% to
1,402.95p on a total return basis, while our benchmark index,           the   
       Deutsche Numis Smaller Companies plus AIM (excluding Investment
Companies) Index, returned -11.7%.

 

The UK equity market weakened in March amid a sharp risk-off move driven by an
energy price shock, which pushed inflation expectations higher and led to
rising discount rates. This resulted in broad valuation compression, with
small and mid caps particularly affected given their sensitivity to growth
expectations, financing conditions and investor risk appetite. The impact was
most pronounced in domestically exposed sectors.

 

Energy stocks outperformed on higher oil and gas prices, while rate-sensitive
areas lagged as tighter financial conditions and concerns around consumer
demand weighed on sentiment. Investors increasingly favoured companies with
stronger balance sheets, pricing power and more visible earnings. Monetary
policy remained a key factor. The Bank of England held rates at 3.75% and
maintained a cautious tone, as elevated energy costs risk prolonging
above-target inflation. As a result, expectations for near-term rate cuts have
been pushed further out, adding to pressure on rate-sensitive parts of the
market.

 

Global market dynamics provided additional context but were secondary to the
impact of the energy shock. Commodity markets played a central role, with oil
and gas driving the move, while gold failed to provide consistent
diversification as tighter liquidity and a stronger US dollar weighed on
prices.

 

The largest contributor was                      Ithaca Energy                
   , which rose following solid full          -          year results
demonstrating strong financial performance in 2025 and increased production
capacity. This reflected the successful delivery of new wells, leaving the
business well positioned heading into 2026.                      Bloomsbury
Publishing                     shares jumped after the company announced the
release of two new Sarah J.                     Maas novels, resulting in a
material upgrade to expectations for FY27 profits. The market welcomed the
visibility and scale of earnings uplift, as consensus had previously assumed
no meaningful Maas contribution in that year despite her proven global sales
record. The announcement highlighted both the strength of Bloomsbury’s
author assets and the valuation upside, with the stock having traded on an
undemanding multiple prior to the news. Elsewhere, not owning Vistry and
Goodwin contributed positively given significant share price falls of both
companies during the month.

 

Genuit                     shares weakened in March as renewed concerns over
UK housing demand and construction activity drove a de          -         
rating of building materials stocks. While full          -          year
results showed resilience and strong cash generation, the lack of a near      
   -          term recovery signal left the shares exposed to broader macro
and technical selling pressure.                      Alfa Financial Software  
                  shares fell following its full          -          year
results, as the absence of an earnings upgrade and broker target price cuts
sent the shares lower. The decline was amplified by broader selling away from
UK mid-cap tech shares, despite continued strong margins, cash generation and
broadly supportive analyst sentiment.                      Bellway            
        fell following a downgrade to full          -          year guidance
due to rising cost pressures and increased sales incentives. Concerns around
softening forward indicators and rising mortgage rates added further pressure
to the housebuilding sector as a whole.

 

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 (Mergers & Acquisitions) 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.

 

1 May 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/22402/4343530/4072269.pdf)  



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