Interim Management Statement

Montanaro UK Smaller Companies Investment Trust PLC

Interim Management Statement - 3 months to 30 June 2013

Investment Objective

MUSCIT's investment objective is capital appreciation through investing in
small quoted companies listed on the London Stock Exchange or traded on the
Alternative Investment Market ("AIM") and to achieve relative outperformance of
its benchmark, the Numis Smaller Companies Index (excluding Investment
Companies) ("NSCI").

No unquoted investments are permitted.

Benchmark

Numis Smaller Companies Index (excluding Investment Companies) ("NSCI").

Net Asset Value Performance

                          3 months     1 year    3 years   5 years       Launch
                                                                               
MUSCIT (excluding           (5.4)%      17.7%      60.9%     68.1%       401.2%
current period                                                                 
revenue)                                                                       
                                                                               
Benchmark*                  (0.3)%      31.0%      43.3%     26.6%        73.6%
                                                                               
Under/outperformance        (5.1)%    (13.3)%      12.6%     41.5%       327.6%
                                                                               

* Previous benchmark of FTSE SmallCap (excluding Investment Companies) to 31/03
/13 and NSCI from 1/04/13


Performance Summary (capital only)

                                  As at 30         As at 31        Movement
                                 June 2013       March 2013                
                                                                           
Gross Assets                  £185,629,345     £193,117,943          (3.9)%
                                                                           
Net asset value per share           497.17p          529.19p         (6.1)%
(including current period                                                  
revenue)                                                                   
                                                                           
Share price                         410.00p          437.00p         (6.2)%
                                                                           
Discount                              17.5%            17.4%                
                                                                           
Net Gearing                           2.8%              1.1%                


Period Review

For the 3 months ended 30 June 2013:

MUSCIT's Net Asset Value declined by 5.4% over the three month period to the
end of June 2013 compared with a decrease of 0.3% by its benchmark, the NSCI.

The twelve month equity market rally that began in June 2012 came to an end in
June 2013 following comments by Ben Bernanke that quantitative easing could be
tapered off earlier than expected.  UK SmallCap held up well outperforming
LargeCap (the FTSE-100 Index) by 3% during this three month period and has
outperformed by 6% since the start of the calendar year.  However, MUSCIT
underperformed its benchmark, as the Manager's "Quality Growth" investment
style remained out of favour.  For a year now, investors have turned to
riskier, lower quality "Value" companies for investment.  We believe that the
re-rating of Value relative to Growth over recent months may be coming to an
end and that quality stocks will return to favour.

Montanaro Asset Management Limited

1 August 2013


Top Ten Holdings as at 30 June 2013


Company                   Sector                                       % of total        
                                                                       portfolio         
                                                                               
Domino's Pizza            Travel & Leisure                                  3.9
                                                                               
Domino Printing Sciences  Electronic & Electrical Equipment                 3.5
                                                                               
Brammer                   Support Services                                  3.3
                                                                               
Victrex                   Chemicals                                         3.2
                                                                               
Dechra Pharmaceuticals    Pharmaceuticals & Biotechnology                   3.2
                                                                               
Consort Medical           Health Care Equipment and Services                3.2
                                                                               
Senior                    Aerospace and Defence                             3.1
                                                                               
Mears Group               Support Services                                  3.1
                                                                               
James Fisher              Industrial Transportation                         3.0
                                                                               
Devro                     Food Producers                                    3.0


Sector Breakdown

Sector                             % of total           % of NSCI  
                                   portfolio                      
                                                   
Oil & Gas                                 3.6              4.6
                                                    
Basic Materials                           7.1              5.5
                                                   
Industrials                              39.5             28.0
                                                   
Consumer Goods                            8.1              7.4
                                                   
Health Care                               9.0              3.0
                                                    
Consumer Services                        10.0             25.5
                                                   
Telecommunications                        0.5              2.0
                                                   
Utilities                                 0.0              0.4
                                                     
Financials                               12.3             18.0
                                                   
Technology                                9.9              5.6
                                                   
                                        100.0            100.0

As announced on 25 July 2013 the Chairman, David Gamble announced that he would
not be seeking re election at the Company's Annual General Meeting held on 26
July and therefore was stepping down from the Board. Kathryn Matthews a
non-executive Director of the Company became Chairman with effect from this
date. The Board has also announced that James Robinson will join the Board as a
non-executive Director with effect from 30 September 2013.

Other than as stated above, the Directors are not aware of any significant events 
or transactions which have occurred between 30 June 2013 and the date of publication 
of this statement which have had a material impact on the financial position of the 
Company. For latest performance information, please refer to the Company's website.

At the Company's Annual General Meeting held on 26 July 2013, all of the resolutions 
put to shareholders were duly passed on a show of hands.

This Interim Management Statement and up to date NAV and Share Price are available at 
the Company's website www.montanarouksmaller.co.uk.

Neither the contents of the Company's website nor the contents of any website accessible 
from hyperlinks on the Company's website (or any other website) is incorporated into, or 
forms part of, this announcement.