REG-BlackRock Throg Tst: Portfolio Update <Origin Href="QuoteRef">THRG.L</Origin>

Blackrock Throgmorton TrustAnnouncement

15/08/2017 16:30

BLACKROCK THROGMORTON TRUST PLC (LEI: 5493003B7ETS1JEDPF59)
 

All information is at 31 July 2017 and unaudited.
Performance at month end is calculated on a cum income basis

                      One     Three     One    Three     Five  
                    Month    months    year    years    years  
                         %         %       %        %        % 
 Net asset value       3.5       3.9    39.0     68.4    157.3 
 Share price           3.3       8.4    43.0     68.8    174.1 
 Benchmark*            2.9       2.7    23.8     38.5    101.6 

Sources: BlackRock and Datastream

*With effect from 1 December 2013 the Numis Smaller Companies excluding AIM
(excluding Investment Companies) Index replaced the Numis Smaller Companies
plus AIM (excluding Investment Companies) Index as the Company’s benchmark.
The five year period indices have been blended to reflect this.

 At month end                                                          
 Net asset value capital only:                                 513.88p 
 Net asset value incl. income:                                 521.13p 
 Share price                                                   439.00p 
 Discount to cum income NAV                                      15.8% 
 Net yield (1):                                                   1.7% 
 Total Gross assets (2):                                       £381.1m 
 Net market exposure as a % of net asset value (3):             112.8% 
 Ordinary shares in issue (4):                              73,130,326 
 2016 ongoing charges (excluding performance fees (5):            1.1% 
 2016 ongoing charges ratio (including performance fees):         1.3% 

1. Calculated using 2016 interim dividend paid on 19 August 2016 and 2016
final dividend paid on 29 March 2017.
2. Includes current year revenue and excludes gross exposure through contracts
for difference.
3. Long positions less short positions as a percentage of net asset value.
4. Excluding 7,400,000 shares held in treasury.
5. Calculated as a percentage of average net assets and using expenses,
excluding performance fees and interest costs for the year ended 30 November
2016.

 Sector Weightings                                  % of Total Assets 
                                                                      
 Industrials                                                     30.4 
 Consumer Services                                               20.3 
 Financials                                                      18.1 
 Consumer Goods                                                  13.0 
 Basic Materials                                                  8.0 
 Health Care                                                      4.7 
 Technology                                                       4.2 
 Oil & Gas                                                        2.4 
 Net current liabilities                                         -1.1 
                                                                ----- 
 Total                                                          100.0 
                                                                 ==== 
 Market Exposure (Quarterly)                                          
                                                                      
                  31.08.16  %         30.11.16   28.02.17   31.05.17  
                                              %          %          % 
 Long                   114.3             116.9      121.4      117.3 
 Short                    8.3               8.5        6.7        6.1 
 Gross exposure         122.6             125.4      128.1      123.4 
 Net exposure           106.0             108.4      114.7      111.2 

   

 Ten Largest Investments                           
                                                   
 Company                   % of Total Gross Assets 
                                                   
 CVS Group                                     3.0 
 Dechra Pharmaceuticals                        2.5 
 4imprint Group                                2.4 
 Ascential                                     2.1 
 Berkeley Group Holdings                       2.0 
 Bodycote                                      2.0 
 Ibstock                                       1.9 
 Big Yellow                                    1.9 
 Hill & Smith                                  1.9 
 Bellway                                       1.9 

Commenting on the markets, Mike Prentis and Dan Whitestone, representing the
Investment Manager noted:

During July the Company’s NAV per share rose by 3.5% to 521.1p on a cum
income basis whilst our benchmark (the Numis Smaller Companies excluding AIM
(excluding Investment Companies) Index) rose by 2.9%; the FTSE 100 Index
returned 0.9% (all performance figures are with income reinvested and net of
ongoing charges and any applicable performance fees).

Stock selection was the primary driver of outperformance during the month
while sector allocation was broadly flat.

Kaz Minerals has benefited from the strength in the copper price, which it is
particularly geared into, but also company specific factors as their recent
statement showed production running ahead of 2017 guidance. Keywords Studios
reported preliminary results showing strong growth in revenues and profits
driven by continued organic growth as well as positive contributions from
acquisitions. Fever-Tree Drinks rose after the company reported another strong
set of interim results, led by the UK, which saw sales more than double. The
brand’s expansion overseas, which is key for the company to maintain
momentum, has also been progressing well, particularly in Western Europe and
management commented that the full year results are expected to be
“materially ahead of expectations”.

Safestyle, a company engaged in the sale and manufacture of PVCu windows and
doors, issued its half year trading update warning that revenue growth for the
second half is expected to be modest given the weaker consumer backdrop. As a
result profits for the full year will be less than previously anticipated and
broadly in-line with 2016. Despite the challenging backdrop, with
Safestyle’s end market seeing falling volumes in excess of 10%, the company
continues to grow and take market share.

Activity during July included adding to our holdings in Ultra Electronics and
Accesso, both of which are very international, while also further reducing
some of our domestically exposed companies.

The long/short portfolio rose 0.6% during the month, with long positions
contributing positively to performance, whilst shorts were a modest detractor.
Within the long book a number of our holdings provided solid trading updates,
including RPC, Ascential, and Fever-Tree. RPC issued a reassuring statement
showing strong organic growth, M&A (Mergers & Acquisitions) synergies whilst
also benefiting from FX (Foreign Exchange) tailwinds. Media business Ascential
reported strong half year results and increased the dividend by 20% resulting
in broker upgrades. The short book continued to deliver stock specific
successes with one of the month’s top contributors coming from a UK
construction company that fell more than 70% on the back of reduced financial
guidance, increased contract provisions and rising net debt. Ongoing weakness
in an online pizza delivery company where sales growth continues to slow, was
another example of a short position where weakening demand, increased supply,
and increased cost pressures continue to weigh on the share price.

15 August 2017

ENDS

Latest information is available by typing www.blackrock.co.uk/thrg 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.



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