Abrdn UK Smaller Growth Trust : Half Yearly Report

abrdn UK Smaller Companies Growth Trust plc

Half Yearly Report 31 December 2022

Capturing the growth potential of UK smaller companies

abrdnuksmallercompaniesgrowthtrust.co.uk

Contents

Overview
Performance Highlights and Financial Calendar	1
Chairman's Statement	4
Interim Management Report	6
Investment Manager's Review	7
Investment Process	13
Portfolio
Ten Largest Investments	15
Investment Portfolio	16
Investment Case Study	18
Financial Statements
Condensed Statement of Comprehensive Income (unaudited)	19
Condensed Statement of Financial Position (unaudited)	20
Condensed Statement of Changes in Equity (unaudited)	21
Condensed Statement of Cash Flows (unaudited)	22
Notes to the Financial Statements (unaudited)	23
General Information
Alternative Performance Measures	28
Investor Information	30
Contact Addresses	33

Investment Objective

The Company's objective is to achieve long-term capital growth by investment in UK-quoted smaller companies.

Reference Index

The Company's reference index is the Numis Smaller Companies plus AIM (ex investment companies) Index.

Performance Highlights and Financial Calendar

	Net asset value total returnA						Share price total returnA
	Six months ended 31 December 2022						Six months ended 31 December 2022
	-2.2%					+3.3%
	Year ended 30 June 2022		-27.3%				Year ended 30 June 2022		-34.3%
	Reference Index total return						Discount to net asset valueA
	Six months ended 31 December 2022						As at 31 December 2022
	-0.6%					10.0%
	Year ended 30 June 2022		-19.0%				As at 30 June 2022		14.6%

Overview

Portfolio

Statements

Revenue return per share

Six months ended 31 December 2022

5.32p

Six months ended 31 December 2021

4.26p

1. Considered to be an Alternative Performance Measure as defined on pages 28 and 29.

Ongoing charges ratioA

Forecast year ending 30 June 2023

0.94%

Year ended 30 June 2022	0.82%

General Information Financial

Investment Portfolio by Sector

		5.0%	3.2%
			Sector allocation
	5.2%
		23.2%
			Consumer Discretionary
5.2%
			Industrials
7.4%				Technology
			Financials
				Telecommunications
				Consumer Staples
				Health Care
				Real Estate
12.1%			22.2%	Basic Materials
		16.5%

abrdn UK Smaller Companies Growth Trust plc

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Performance Highlights and Financial Calendar

Continued

Financial Calendar

	Payment of interim dividend for the year ending 30 June 2023		14 April 2023
			30 June 2023
	Financial year end
			August 2023
	Announcement of results for year ending 30 June 2023
			November 2023
	Annual General Meeting
			30 November 2023
	Payment of final dividend for the year ending 30 June 2023
Financial Highlights
		31 December 2022	30 June 2022	% change
	Capital return
	Total assetsA	£495.5m	£538.6m	-8.0%
	Equity shareholders' funds	£470.5m	£498.6m	-5.6%
	Market capitalisation	£423.6m	£425.9m	-0.5%
	Net asset value per shareB	513.25p	530.37p	-3.2%
	Share price	462.00p	453.00p	+2.0%
	Discount to net asset valueC	10.0%	14.6%
	Net gearingC	1.1%	5.1%
	Reference index	5,406.82	5,520.20	-2.1%
	Dividends and earnings
	Revenue return per Ordinary shareD	5.32p	4.26p	+24.9%
	Interim dividend per share	3.00p	2.70p	+11.1%
	Operating costs
	Ongoing charges ratioCF	0.94%E	0.82%

1. Defined as total assets per the Statement of Financial Position less current liabilities (before deduction of bank loans).
2. With debt at par value.
3. Considered to be an Alternative Performance Measure as defined on pages 28 and 29.
4. Figure for 31 December 2022 is for the six months to that date. Figure for 30 June 2022 is for the six months to 31 December 2021.
5. The ongoing charges ratio for the current year includes a forecast of costs, charges and assumes no change in net assets for the six months to 30 June 2023.
6. Calculated in accordance with AIC guidance issued in October 2020 to include the Company's share of costs of holdings in investment companies on a look-through basis.

2	abrdn UK Smaller Companies Growth Trust plc

"The issues that made the headlines in the first half of 2022, including the war in Ukraine and the cost of living crisis, have persisted. This has made a difficult backdrop against which to be an investor in UK smaller companies."

abrdn UK Smaller Companies Growth Trust plc

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