The Global Smaller Companies Trust PLC (“the Company”) today announces its full-year results for the year ended 30 April 2026, reporting a share price total return of 28.8% and a NAV total return of 21.0%.
The Company’s total dividend of 3.15p represents a 5.0% increase on the previous year and marks the Company’s 56th consecutive annual increase.
Commenting on the results, the Chairman Graham Oldroyd said: “I am pleased to report on a positive year for the Company, with the share price rising 26.5% in the twelve months to 188.0p, while longer-term total returns from the NAV, benchmark and share price continue to highlight the strong returns that the asset class has delivered to patient investors.
“Despite a challenging backdrop of geopolitical tensions, rising inflationary pressures, elevated interest rates and concerns over government deficits, the global economy has shown considerable resilience, and corporate earnings growth has, in aggregate, remained healthy.
“Higher asset prices, strong corporate and household balance sheets, significant investment in AI and stimulus programmes across various parts of the world have all played a role in sustaining economic momentum.
“However, the persistence of each of these supporting factors remains uncertain, and as a consequence the range of potential future outcomes is wide. In such an uncertain and fragile environment, I believe shareholders can take comfort in the high quality, attractively valued portfolio of businesses that the Manager has assembled – one that is well positioned to navigate the inevitable challenges that the coming year may bring.
“We remain focused on delivering long-term value for shareholders and believe with the changes made that the Company is well placed to do so.”
Portfolio Manager Nish Patel said: “Smaller companies across the World delivered strong returns in the financial year and outperformed larger companies for the first time in five years.
“Whilst the period was marked by sharp swings in investor sentiment, markets were supported by healthy corporate earnings growth, moderate inflation that was a little above central bank targets and cuts in interest rates from most monetary authorities. Stock markets additionally benefitted from continued excitement around AI, especially after several AI-related businesses announced intentions to expand their computing capacity.
“While conditions were challenging, we remained disciplined in our approach, resisting the temptation to speculate and staying true to the philosophy and process that has underpinned our track record over the past 25 years.
“Positively, the adverse market environment created the chance to buy into excellent businesses that were significantly undervalued. We took advantage of that opportunity.
“It is encouraging to see smaller company shares begin to outperform their larger company counterparts after a prolonged period of underperformance. We believe we may be in the early stages of an extended cycle of mean reversion in relative valuations for smaller companies and we are excited by that prospect.”
Nish Patel, Portfolio Manager
