Aberforth Smaller Companies Trust PLC · LSE:ASL

Aberforth Smaller Companies Trust — Aberforth Partners LLP — Investor Presentation (May 2026)

31 slides from Aberforth Smaller Companies Trust's investor presentation, May 2026

  1. Slide 1: Presentation to Investors May 2026

    Aberforth Partners LLP Presentation to 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 authorised

  2. Slide 2: Introduction

    Introduction Aberforth Partners LLP 1

  3. Slide 3: Performance

    Performance CAGR AFUND Total Return % YTD 1 Year 3 Year 5 Year 10 Year inception FTSE All-Share 5.2 25.2 13.1 10.8 8.8 8.2 FTSE 250 (XIC) 0.4 15.5 8.4 3.0 5.4 9.9 FTSE SmallCap (XIC) 0.6 17.2 11.1 4.3 7.4 7.4 DNSCI (XIC) -1.0 15.0 8.6 2.9 6.1 9.1 AFUND 2.2 16.7 8.9 4.4 6.6 11.0 Inception date for AF

  4. Slide 4: Winners and losers – year to date

    Winners and losers – year to date 10 Best Winners 10 Worst Losers Total Total Rank Company return (%) Attribution (bp) Rank Company return (%) Attribution (bp) 1 XP Power 95 154 1 Crest Nicholson Holdings -53 -83 2 EnQuest 98 129 2 MJ Gleeson Group -45 -57 3 CMC Markets 23 62 3 Ceres Power Holdings

  5. Slide 5: Value roll – year to date

    Value roll – year to date Top 10 Purchases Top 8 Sales Rank Company £m Rank Company £m 1 WH Smith 1.8 1 Senior 5.3 2 Rosebank Industries 1.5 2 Mitchells & Butlers 3.4 3 JD Wetherspoon 1.5 3 Galliford Try Holdings 1.3 4 Gamma Communications 1.3 4 Jupiter Fund Management 1.3 5 Videndum 1.3 5 Bodycote

  6. Slide 6: The elephant in the room

    The elephant in the room Aberforth Partners LLP 5

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: Why Aberforth is well placed

    Why Aberforth is well placed Aberforth Partners LLP 8

  10. Slide 10: Aberforth

    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 ─ Business owner mindset with substantial co-investment in the strategy An investment approach well-

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: Resilient smaller companies

    Resilient smaller companies  Battle-hardened management teams and boards who have navigated recent challenges  Strong balance sheets give optionality ─ 20 portfolio holdings buying back shares, 27% by weight of the portfolio 55% 50% 45% 40% % by value of Tracked Universe & Portfolio 35% 30% 25% 20

  14. Slide 14: 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

  15. Slide 15: Portfolio categories

    Portfolio categories Under Review Work in Progress Self-help On Track Portfolio weight 5% Portfolio weight 13% Portfolio weight 56% Portfolio weight 26% Number of stocks 9 Number of stocks 9 Number of stocks 44 Number of stocks 16 Total Return YTD -24% Total Return YTD -0% Total Return YTD +6% Total

  16. Slide 16: Potential upside from the portfolio

    Potential upside from the portfolio Components of AFUND's portfolio upside (cf. slide 18 for methodology) The model does not reflect £750.00 47% 72% £650.00 1. Value roll £550.00 2. Broad small cap re-rating 17% £450.00 8% 3. Costs £350.00 £250.00 £150.00 *Mid price of the Fund’s accumulation £50.00

  17. Slide 17: Aberforth's long term performance record

    Aberforth’s long term performance record Total return performance since AFUND's inception 35 year 4550 CAGR £100k invested at AFUND inception: 4050 AFUND: £3.9m +11.0% 3550 DNSCI (XIC): £2.1m Total Return rebased to 100 FTAS: £1.6m 3050 2550 2050 +9.1% 1550 +8.2% 1050 550 50 AFUND TR FTSE All-Share

  18. Slide 18: Appendix

    Appendix Aberforth Partners LLP 17

  19. Slide 19: 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

  20. Slide 20: EV/EBITA

    EV/EBITA EV/EBITA 2025 2026 2027 AFUND 8.1x 7.1x 6.3x 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 30%

  21. Slide 21: Top 20 holdings

    Top 20 holdings Total Rank Company Activity portfolio (%) 1 CMC Markets Financial derivatives trading platform 3.7 2 XP Power Power controls 3.4 3 ZIGUP Van rental 2.8 4 Rathbones Group Wealth management 2.8 5 EnQuest Oil and gas exploration and production 2.8 6 Ashmore Group Investment manager 2.7

  22. Slide 22: Sector exposure

    Sector exposure DNSCI (XIC) AFUND Relative Sector Significant holdings (>1.5% portfolio weight) weight weight weight Technology 5.0% 5.2% 0.3% NCC Group, MONY Group Telecommunications 1.7% 1.8% 0.1% Gamma Communications Health Care 2.8% 0.0% -2.8% CMC Markets, Sabre Insurance Group, Rathbones Group,

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: Important information

    Important information Aberforth Partners LLP 26

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: 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.

  31. Slide 31: 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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