Stand. Life UK Small (SLS) - Interim Management Statement
RNS Number : 3638R
Standard Life UK Small.Co's Tst PLC
16 November 2012
Standard Life UK Smaller Companies Trust PLC
Interim Management Statement
Three months ended 30 September 2012
To the members of Standard Life UK Smaller Companies Trust plc ('the Company')
This Interim Management Statement ('IMS') has been produced solely to provide
additional information to shareholders as a body to meet the relevant
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied upon by any other party or for any other purpose.
This IMS relates to the period from 1 July to 30 September 2012 and contains
information that covers this period and up to the date of publication of this
IMS, unless otherwise specified.
The objective of the Company is to achieve long term capital growth by
investment in UK quoted smaller companies.
Numis Smaller Companies Index (excluding Investment Companies). The benchmark
was renamed on 11 April 2012, having previously been named the RBS Hoare
Govett Smaller Companies Index (excluding Investment Companies).
On 1 September 2012, the Company announced its Annual Financial Report for the
year ended 30 June 2012.
As at 30 September 2012, the Company had a capital structure comprising
£24,935,071 nominal amount of Convertible Unsecured Loan Stock 2018 ("CULS")
and 64,999,905 Ordinary shares of 25 pence each, with voting rights. There
were no Ordinary shares held in treasury.
On 5 October 2012, the Company issued 4,679 new Ordinary shares under its
block listing authority granted on 28 April 2011("the April 2011 Block listing
authority) further to the conversion date of 30 September 2012 in relation to
During October and November 2012 the Company issued a total of 1,025,000 new
Ordinary shares under the April 2011 block listing authority.
Details of these share issues are set out in the table below.
Date of Issue NAV No of Shares Price
05/10/2012 n/a 4,679 237.2542
15/10/2012 236.66 225,000 238.25
16/10/2012 234.65 100,000 238.25
16/10/2012 235.85 100,000 238.25
18/10/2012 237.96 100,000 241.00
22/10/2012 237.46 100,000 240.00
24/10/2012 235.45 50,000 238.00
29/10/2012 233.76 50,000 236.25
09/11/2012 232.74 125,000 235.50
12/11/2012 231.89 25,000 233.25
12/11/2012 231.64 75,000 232.25
15/11/2012 229.73 75,000 231.50
As at the date of this IMS the capital structure of the Company comprises
£24,923,960 nominal amount of CULS and 66,029,584 Ordinary shares in issue,
with voting rights.
All resolutions put to the Annual General Meeting of the Company held on 11
October 2012, were duly passed by shareholders, including approval of a final
dividend of 2.10 pence per Ordinary share. The final dividend was paid on 18
October 2012 to shareholders on the register as at close of business on 21
September 2012. The ex- dividend date was 19 September 2012.
Manager's Investment Review and Outlook for the three months ended 30
UK smaller companies made strong gains in the third quarter. Markets were
boosted by central bank stimulus measures. The UK economy remained sluggish
with data mixed.
UK smaller companies delivered positive returns in each of the last three
months, outperforming their large-cap counterparts over the quarter as a
result. In the year to date, the FTSE SmallCap Index is up 19.3%,
significantly ahead of the FTSE 100 Index.
During the third quarter, UK equities gained confidence from stimulus efforts
by central banks across the globe. Early in the period, risk appetite was
boosted by a speech from European Central Bank (ECB) President Mario Draghi in
which he stated that the ECB would do 'whatever it takes' to support the
euro. The rally was sustained into the autumn, with equities gaining a
further boost from the Federal Reserve's announcement of a third round of
quantitative easing in September.
The domestic economy remained sluggish and continued to contract in the second
quarter of the year. However, an initial estimate of -0.7% was subsequently
revised up to -0.4%. In addition, the Jubilee in June is estimated to have
had a -0.5% impact. While economic data generally remained weak, there was
some positive news including surprisingly robust employment trends. This
prompted optimism that an Olympics related boost might ensure a return to
growth in the third quarter, an expectation which was subsequently confirmed.
Elsewhere, CPI inflation continued to trend lower, falling to 2.5% in August
from a peak of over 5% in September 2011. This led to growing expectations of
further stimulus measures from the Bank of England.
Performance benefited from exposure to online fashion retailer ASOS. This is
the Company's largest single holding and it outperformed following a positive
set of results which seemed to indicate that its UK business is recovering and
its international operations are performing well. Also positive was the
exposure to investment banker Hargreaves Lansdown which reported strong
trading and appears well positioned to cope with the industry changes
resulting from implementation of the retail distribution review (RDR) in
December 2012. The holding in EMIS, which supplies specialised software to
GPs, was also beneficial. The shares outperformed on the back of earnings
upgrades, together with good visibility on the company's future earnings
Key detractors from performance included luxury handbag brand Mulberry, which
lagged as a result of signs that trading may be moderating. This appeared to
exacerbate concerns about the outlook for luxury brands following a profit
warning from rival Burberry. The Company's exposure to property website
Rightmove was a further negative. It suffered in an environment in which
investors favouring more 'risk on' stocks failed to reward the company's
relative resilience. In a similar vein, Abcam, the market leader in the sale
of antibodies for the life science industry, lagged because of its perceived
Key purchases during the quarter included adding to the holding in high
quality mass affluent clothing brand Ted Baker which is continuing to grow its
UK business and to expand internationally. The Company also bought additional
shares in payment services company PayPoint, which processes bills and general
payments for customers without bank accounts. The company is trading well and
diversifying into the payments via mobile phone business. Shares were
purchased in polyurethane flooring manufacturer James Halstead, which we
regard as a world leading business underpinned by its strong exports.
The Company's holding in copper producer First Quantum Minerals was reduced
given evidence of slowing demand from China for a range of commodity metals.
The Company also took profits on some of its shares in industrial equipment
The present macroeconomic backdrop remains challenging. Ongoing difficulties
in the Euro-zone, sluggish economic growth in Europe, and the possibility of a
slowdown in the US and Far East, all give cause for concern. We do not,
however, think that this will be sufficient to derail the market which we
expect to make modest progress over the course of the year. We continue to
favour growth-oriented, quality companies with strong earnings momentum.
(Source: Standard Life Investments)
Largest Ten holdings and Changes in Period
Ranking as Market Value at 30
at 30 June 2012
30 Sep 2012 2012 Investment (£) (%)
1 3 ASOS 8,463,811 5.2
2 2 Paddy Power 7,948,673 4.8
3 1 Telecom Plus 7,220,958 4.4
4 4 Abcam 6,837,986 4.2
5 5 Rightmove 6,585,600 4.0
6 6 Hargreaves 6,285,000 3.8
7 11 EMIS 5,944,917 3.6
8 7 Telecity 5,518,519 3.4
9 10 Domino's Pizza 5,047,447 3.1
10 17 Aveva 4,710,178 2.9
Net assets breakdown as at 30 September 2012
Consumer Services 29.9
Information Technology 18.0
Consumer Goods 10.7
Health Care 8.6
Basic Materials 3.7
Oil & Gas 1.8
Net Borrowings (9.5)
General description of Company's financial position and performance as at 30
Trust Managers Standard Life
Market Capitalisation £147.5m
Gross Assets £172.7m
Ordinary Share Price 227.0p
Ordinary Share Net Asset Value 229.4p*
(Discount)/Premium of Ordinary Share Price to Net Asset Value (1.0)%
12 Month High DataStream)
12 Month Low (Source:
Yield (net) - (note: level of yield changes on a daily basis) 1.4%
Current equity gearing (note: level of gearing changes on a daily 9.5%
3.5% Convertible Unsecured Loan Stock 2018 Conversion Price 237.2542p
3.5% Convertible Unsecured Loan Stock 2018 Price 107.0p
CULS Conversion and Interest Payment Dates 31 March and
Trust Annual Management Fee 0.85% of
Dividends Semi Annually April/October
* Capital Only Net Asset Value
Source: Standard Life Investments.
Q3 2012 1 year 2 years 3 years 4 years 5 years
(%) (%) (%) (%) (%) (%)
Share price 11.8 14.6 29.5 94.8 127.0 92.0
Net asset value 6.1 15.1 25.6 73.0 88.1 65.6
NSCI (ex Investment Companies) 8.7 20.1 16.8 32.0 62.4 10.0
Source: Thomson Datastream, capital returns. The percentage growth figures
above are calculated over periods to 30 September 2012 on a mid to mid basis.
For the Manager's current Investment Review & Outlook, please refer to the
latest Trust Quarterly Update which is available via the Company's web-page at
Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise. Investors may not get back the amount they originally invested.
For Standard Life UK Smaller Companies Trust plc
Maven Capital Partners UK LLP, Secretaries
16 November 2012
This information is provided by RNS
The company news service from the London Stock Exchange
IMSGGGQWGUPPGCQ -0- Nov/16/2012 14:38 GMT
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