Aberforth Smaller Companies Trust PLC · LSE:ASL
Aberforth Smaller Companies Trust — Aberforth Geared Value & Income Trust — Investor Presentation (May 2026)
33 slides from Aberforth Smaller Companies Trust's investor presentation, May 2026
Slide 1: Presentation to AGVIT Investors, May 2026
Aberforth Partners LLP Presentation to AGVIT Investors May 2026 This presentation is intended for investment professionals. It does not represent investment advice. 14 Melville Street - Edinburgh EH3 7NS Tel 0131 220 0733 enquiries@aberforth.co.uk - www.aberforth.co.uk Aberforth Partners LLP is auth
Slide 2: Introduction
Introduction Aberforth Partners LLP 1
Slide 3: Performance
Performance NAV per Share as at 30 April 2026 ─ Ordinary Share 93.2p ─ ZDP Share 112.5p We explain recent performance We explain why we remain confident that the outlook for AGVIT is positive Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; London Business School. Data as at 30 Apr
Slide 4: Attractive income
Attractive income All income goes to the Ordinary shares Portfolio dividend experience ─ Ahead of our expectations ─ Boosted by five special dividends ─ Resilient small cap income, supported by strong balance sheets Forecast year portfolio yield and cover ─ 5.3% and 2.0x Increasing confidenc
Slide 5: Winners and losers – year to date
Winners and losers – year to date 10 Best Winners Total return Contribution 10 Worst Losers Total return Contribution Rank Company (%) (bp) Rank Company (%) (bp) 1 Serica Energy 65 71 1 PageGroup -43 -62 2 XP Power 95 62 2 Crest Nicholson Holdings -53 -47 3 PayPoint 35 53 3 DFS Furniture -27 -37 4 A
Slide 6: Value roll – year to date
Value roll – year to date Top 10 Purchases Top 8 Sales Rank Company £m Rank Company £m 1 Young & Cos Brewery N/V 1.3 1 Galliford Try Holdings 1.8 2 WH Smith 1.1 2 Bloomsbury Publishing 1.7 3 Victrex 0.7 3 Senior 1.4 4 Hilton Food Group 0.6 4 Bodycote 1.2 5 Big Yellow Group 0.6 5 Centaur Media 1.2 6
Slide 7: The elephant in the room
The elephant in the room Aberforth Partners LLP 6
Slide 8: Iran and the UK economy
Iran and the UK economy DNSCI (XIC) -12% in March – the 6th worst month in Aberforth’s history Concern about impact of higher energy prices on UK economic activity ─ Contrasting effects on UK political uncertainty mediated by the gilt market But there is a lot in the price already ─ The 2022 U
Slide 9: UK economy – sentiment versus resilience
UK economy – sentiment versus resilience IPSOS UK Economic Optimism Index Consumer optimism at rock bottom Net reading of -72 for April 2026 48 year average of -18 A contrary indicator Panmure Liberum UK household net cash position Strong private sector balance sheets These underpinn
Slide 10: Why AGVIT is well placed
Why AGVIT is well placed Aberforth Partners LLP 9
Slide 11: Aberforth: years of experience in small UK quoted companies
Aberforth 36 years of experience in small UK quoted companies The business is designed to focus on our existing clients Consistent self-imposed cap on assets under management Aligned incentives ─ The Partners’ holdings in AGVIT have increased with purchases of 1.6m Ord. Shares since launch An
Slide 12: Aberforth’s value style suited to the current environment
Aberforth’s value style suited to the current environment Value relative to growth within the DNSCI (XIC), 3 month periods 20% Short term – value is well placed 15% 1. Boost from inflation volatility and higher 10% 5% discount rates 0% 2. AI concerns hitting software and platforms -5% -10% 3. Tailwi
Slide 13: UK coming in from the cold, led by large caps
UK coming in from the cold, led by large caps Relative return, DNSCI (XIC) vs. FTSE All-Share 210 +5% per annum relative -32% relative 60% 200 50% 190 180 40% 170 30% 160 150 20% 140 10% 130 120 0% 110 -10% 100 90 -20% 80 -30% 70 -37% relative 60 -40% FTSE All-Share 1 year return [RHS] DNSCI (XIC) v
Slide 14: Resilient smaller companies
Resilient smaller companies Battle-hardened management teams and boards who have navigated recent challenges Strong balance sheets give optionality ─ 18 AGVIT holdings buying back shares, 34% by weight of the portfolio 55% 50% 45% 40% % by value of Tracked Universe & Portfolio 35% 30% 25% 20% 15
Slide 15: M&A continues to close the value gaps
M&A continues to close the value gaps M&A activity in the DNSCI (XIC) 30 25 8 were Aberforth 20 holdings 19 15 17 15 4 14 10 12 12 11 5 X X 5 X X 6 X X X 0 2019 2020 2021 2022 2023 2024 2025 2026 Deals completed Offers 30 Apr 26 Approaches 30 Apr 26 X Aberforth holding A highly active M&A period o
Slide 16: Portfolio categories
Portfolio categories Under Review Work in Progress Self-help On Track Portfolio weight 5% Portfolio weight 8% Portfolio weight 54% Portfolio weight 33% Number of stocks 7 Number of stocks 5 Number of stocks 37 Number of stocks 18 Total Return YTD -24% Total Return YTD -4% Total Return YTD +4.0% Tota
Slide 17: Potential upside from the ungeared portfolio
Potential upside from the ungeared portfolio Components of AGVIT's portfolio upside (cf. slide 19 for methodology) The model does not reflect 200p 180p 1. Value roll 160p 37% 65% 140p 2. Broad small cap re-rating 18% 120p 11% 100p 93p 3. Structural gearing 80p Share price 60p 85p 4. Costs 40p 20p 5.
Slide 18: Illustrative returns
Illustrative returns Ordinary shares ZDP shares Redemption yields: IRRs: Redemption yields: (p.a. returns to 30 June 2031) Capital Terminal Dividend growth p.a. growth p.a. NAV 0.0% 2.5% 5.0% 7.0% +10% Now 6.67% 115p to 160.58p at 30 June 2031 -10.0% 12.5p -17.5% -16.2% -14.9% -13.8% -12.1% -5.0% 36
Slide 19: Appendix
Appendix Aberforth Partners LLP 18
Slide 20: Methodology for the portfolio upside
Methodology for the portfolio upside Forecast EBITA 2 years out – we are not bold enough to look further out Apply a multiple – this is scrutinised and debated at our investment meetings Add 2 years of dividends The combination gives a target price for each company Reports of ranked upside
Slide 21: EV/EBITA
EV/EBITA EV/EBITA 2025 2026 2027 AGVIT 8.4x 7.5x 6.7x Benchmark - Tracked Universe 11.0x 10.1x 9.0x "Smaller small" companies* 8.6x 7.9x 7.2x "Larger small" companies** 11.9x 10.9x 9.6x *Stocks < £600m market ca p. **Stocks > £600m ma rket ca p. 1. Value premium to be harvested ─ Portfolio on a 26%
Slide 22: Top holdings
Top 20 holdings Total Rank Company Activity portfolio (%) 1 Vesuvius Metal flow engineering 4.7 2 Rathbones Group Wealth management 3.3 3 Quilter Wealth management 3.2 4 Jupiter Fund Management Investment manager 3.1 5 Smiths News Newspaper distribution 3.0 6 Ashmore Group Investment manager 2.9 7 M
Slide 23: Sector exposure
Sector exposure DNSCI (XIC) AGVIT Relative Sector Significant holdings (>1.5% portfolio weight) weight weight weight Technology 5.0% 5.8% 0.8% NCC Group, MONY Group Telecommunications 1.7% 0.0% -1.7% Health Care 2.8% 0.0% -2.8% CMC Markets, Sabre Insurance Group, Rathbones Group, Jupiter Fund Manage
Slide 24: Style differentiation
Style differentiation Aberforth Smaller Companies Trust & Aberforth UK Small Companies Fund Aberforth Geared Value & Income Trust Size Investment Trusts Mid Cap ITs Unit Trusts Aberforth Geared Value & Income Trust Aberforth Smaller Companies Trust & Aberforth UK Small Companies Fund Style Aberforth
Slide 25: Aberforth’s long term performance record
Aberforth’s long term performance record Total return performance since ASCoT's inception ASLeT AGCiT AGIT ASLIT 5050 +11.6% 4050 Total Return rebased to 100 3050 +9.6% 2050 +8.6% 1050 50 ASCoT NAV TR FTSE All-Share TR DNSCI (XIC) TR AGVIT not long into its 7 year fixed life to 30 June 2031 Note:
Slide 26: Glossary – Aberforth Funds
Glossary – Aberforth Funds Aberforth’s investment philosophy and putting it into practice is explained further at www.aberforth.co.uk/about-Aberforth/ Aberforth Standard Value refers to The Aberforth Smaller Companies Trust plc, Aberforth’s longest standing client. Accumulation Units: units no
Slide 27: Glossary – Aberforth Funds
Glossary – Aberforth Funds GFC: Global Financial Crisis, was a severe worldwide economic crisis that occurred in 2007 to 2008. GHG: Green House Gas emissions. Hurdle rate is the rate of capital growth per annum to return a stated amount per share at the planned winding-up date. Income Units
Slide 28: Glossary – Aberforth Funds
Glossary – Aberforth Funds Scope 4: Relates to a category of Green House Gas emissions. Termed as avoided emissions, Scope 4, can be defined as reductions that occur outside of a product’s life cycle or value chain, but as a result of the use of that product. Share buy backs/buybacks: A share bu
Slide 29: Important information
Important information Aberforth Partners LLP 28
Slide 30: Important information
Important information Throughout this presentation references to: SMALL COMPANIES mean constituents of the Deutsche Numis Smaller Companies Index (Excluding Investment Companies) which are referred to as “DNSCI (XIC)”; LARGE COMPANIES mean constituents of the FTSE All-Share Index which are referre
Slide 31: Important information
Important information This presentation is intended only for persons who satisfy the requirements of Article 19 (Investment Professionals) and Article 49 (High Net Worth Companies etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and may not be copied or passed
Slide 32: Risk warnings
Risk warnings Capital may be at risk as the value of investments may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested. Past performance is not a guide to future performance, nor a reliable indicator of future results or performance.
Slide 33: Risk warnings
Risk warnings An investment trust may only pay dividends to the extent that it has distributable profits available for that purpose. A reduction in the income from an investment trust's portfolio could adversely affect the yield, if any, on its shares. Investment trusts may borrow money in order
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