BlackRock Smaller Companies Trust reports year-end results amidst global challenges

LONDON - BlackRock (NYSE:BLK) Smaller Companies Trust PLC (LSE:BRSC) has released its annual report and financial statements for the year ending February 28, 2025, revealing a mixed performance against a backdrop of significant market volatility and geopolitical unrest.

The net asset value (NAV) per ordinary share at par value decreased slightly by 0.6% compared to a 4.0% decline the previous year. The NAV per ordinary share at fair value remained flat at 0.0%, while the ordinary share price experienced a 1.4% decrease. This performance contrasted with the benchmark Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index, which saw a 6.2% increase.

The Trust’s total assets less current liabilities stood at £684.3 million, down from £755.7 million the previous year. Equity shareholders’ funds also decreased from £686.2 million to £614.8 million. The ongoing charges ratio remained consistent at 0.8%, and the dividend yield increased from 3.2% to 3.5%. Gearing increased to 13.3% from 11.5%.

During the year, revenue return per ordinary share rose by 4.5% to 42.53 pence, and the Company declared a final dividend of 28.50 pence per share, contributing to a 4.8% increase in total dividends payable.

The Company’s Chairman, Ronald Gould, noted the challenging environment marked by extreme market volatility due to factors such as a new US Presidential term, trade war concerns, and global economic instability. Despite these difficulties, UK smaller companies have demonstrated resilience, delivering solid financial results for shareholders.

The Company’s investment strategy focuses on high-quality growth companies, with stock selection being the primary driver. The Board regularly reviews the investment mandate and strategy, ensuring alignment with the Company’s long-term objectives.

The Trust remains committed to responsible investing, with environmental, social, and governance (ESG) considerations integrated into the investment process. The Board monitors the Manager’s stewardship activities and believes that engagement with portfolio companies can lead to better outcomes for shareholders and the environment.

BlackRock Smaller Companies Trust has also addressed its share rating, actively managing share buybacks to minimize discount volatility. During the year, the Company repurchased 3,515,000 ordinary shares into treasury at a cost of £47.1 million.

The report is based on a press release statement and has been prepared in compliance with applicable accounting standards and UK regulations. The full report, including financial statements and notes, will be available on the BlackRock Investment Management website.

This information is based on a press release statement and does not constitute financial advice.

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