Final Results

RNS Number : 9631H

JPMorgan European Smaller Co.

23 May 2014

 

STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN SMALLER COMPANIES TRUST PLC

ANNOUNCEMENT OF FINAL RESULTS

The Directors of JPMorgan European Smaller Companies Trust plc announce the Company's results for the year ended 31st March 2014.

Chairman's Statement

I am pleased to present the Company's results for the year ended 31st March 2014.

Performance

During the year ended 31st March 2014, the Company outperformed its benchmark index. The Company's total return on net assets (i.e. with net dividends reinvested) was +40.6%, which compares with a return of +32.8% on the same basis from the Company's benchmark, the Euromoney Smaller European Companies (ex UK) Total Return Index in sterling terms. Shareholders will note that the comparative benchmark has undergone a name change in recent months from the HSBC Smaller European Companies (ex UK) Index. This is a change of name only and not a change of benchmark.

The performance for the year continues the Company's long term outperformance of the index with the three, five and ten years also generating a higher return than the index.

The performance analysis in the annual report shows that the Investment Managers' excess returns came through both positive stock selection and asset allocation, as well as the judicious use of gearing. A review of the market and more details on performance are given in the Investment Managers' Report in the annual report. The discount of the Company's share price to net asset value narrowed over the year from 13.0% to 11.3% at the year end, resulting in a total return to shareholders of +43.6%.

Regulatory Changes

Pursuant to recent regulatory changes, this Chairman's Statement now forms part of the new Strategic Report. Shareholders will also note other changes to the format of the Annual Report which have been implemented as a result of these new regulatory requirements.

Alternative Investment Fund Managers Directive ('AIFMD')

As reported in my half year statement, pursuant to the forthcoming implementation of the AIFMD, the Company is required to appoint an Alternative Investment Fund Manager ('AIFM'). As JPMorgan Asset Management (UK) Limited ('JPMAM') is regulated under the Markets in Financial Instruments Directive (or 'MiFID'), it cannot act in the capacity of AIFM to the Company. Therefore, another JPMorgan company, JPMorgan Funds Limited, will be appointed as the Company's AIFM. From a portfolio management perspective, I am pleased to report that there will be no change, because JPMorgan Funds Limited will delegate the portfolio management to JPMAM, with Jim Campbell and Francesco Conte remaining the Investment Managers to the portfolio. The Company has decided to appoint Bank of New York Mellon as its Depositary (an appointment also required under the AIFMD) and Custody services will continue to be provided by JPMorgan.

Revenue and Dividends

The Company's objective is to provide shareholders with capital growth, resulting in a variable level of income received by the Company each year. Net revenue return for the year amounted to £5.0 million (2013: £6.1 million). The Board's policy is to pay out the vast majority of the revenue available each year. An interim dividend of 6.0 pence per share was paid on 15th January 2014. Subject to shareholder approval at the forthcoming Annual General Meeting, a final dividend of 8.5 pence per share will be paid on 15th July 2014 to shareholders on the register at the close of business on 6th June 2014 (ex dividend date 4th June 2014).

Gearing

The Company entered into a three year fixed rate loan for €50 million in January 2014, replacing a maturing revolving credit facility. Total gearing available remains €100 million and the Investment Managers actively manage the gearing level of the Company within a framework set by the Board that is currently between 20% net cash and 20% geared. Gearing contributed +3.6% to performance during the year under review.

Share Repurchases

The Board continues to monitor the level of the discount carefully and seeks to use its ability to repurchase shares for cancellation to minimise short term volatility in the level of the discount. In accordance with this policy 1,970,000 shares were repurchased for cancellation during the year (excluding the shares repurchased as a result of the tender offer).

Tender Offer

As reported in my half year statement, 1,782,346 shares were successfully tendered and repurchased by the Company for cancellation in July 2013. The tender offer met its principal objective of providing a liquidity event to shareholders seeking a full or partial exit from the Company, whilst enhancing the net asset value for ongoing shareholders.

Corporate Governance

At the Board's strategy review meeting held during the year, the focus points were shareholder views about the Company, sales and marketing, the AIFMD and risk appetite. The Manager continues its work on increasing awareness of the Company and a number of presentations were given during the year by the Investment Managers and the Manager's sales team.

The Nomination and Remuneration Committee evaluated the operations of the Board, individual Directors and the Chairman during the year. In line with corporate governance best practice, all Directors seek annual reappointment. The recruitment process will be commenced again during the coming year to replace Anthony Davidson who will retire from the Board following the 2015 Annual General Meeting.

During the year, a Management Engagement Committee was constituted and it undertook a formal review of the Manager, covering the investment management, company secretarial, administrative and marketing services provided to the Company. The review took into account the Manager's investment performance record, management processes, investment style, resources and risk control mechanisms. I am pleased to report that the Board agreed with the Committee's recommendation that the continued appointment of the Manager is very much in the interests of shareholders as a whole.

Proposed Sub-Division of the Company's Share Capital

The Board is proposing to implement a sub‑division of the Company's share capital. The Company's share price was 1,200.0 pence per share at the year end and a stock split would assist with the practicalities of investors choosing to invest through platforms, regular savings schemes or by way of dividend reinvestment as they would be left with a smaller potential cash balance following any investment. This may increase the attractiveness of the Company's shares to potential investors and may also increase the liquidity in the market for the Company's shares.

In the five years to 31st March 2014, the Company's share price has increased from 460.0 pence per share to 1,200.0 pence per share. Therefore the Directors believe it is appropriate to recommend a five for one share split, which will increase the number of ordinary shares in issue by a factor of five. Shareholders should note that the proposed sub-division of the Company's share capital will not affect the overall value of their holdings in the Company because although the share price will effectively be divided by five, they will have five times the number of shares previously held.

Based on the average price per share for the year ending 31st March 2014 of 1,015.0 pence per share, and following a sub-division, each ordinary shareholder would receive five new shares for every one ordinary share previously held and the five new shares would trade at 203.0 pence per share. This information is provided for illustrative purposes only. The market price of the shares both before and after the completion of the proposed sub-division, will vary depending on market conditions at the relevant time. The proposed sub-division of the Company's share capital is subject to shareholder approval at the Annual General Meeting.

Annual General Meeting

The Company's Annual General Meeting will be held at the Manager's new offices at 60 Victoria Embankment, London EC4Y 0JP, on Tuesday, 8th July 2014 at 12 noon. The Investment Managers will make a presentation covering the past year and their outlook for the current year. Shareholders are invited to join the Investment Managers and the Board for lunch following the Annual General Meeting, when there will be opportunities for informal questions.

Outlook

The Investment Managers still find many positive investment opportunities for the Company. The European small cap index consists of more than 1,000 stocks and other stocks closely aligned with it. However, the average stock in this sector is covered by only four analysts compared with seventeen for large cap stocks. This under-researched sector therefore presents good opportunities for investors.

Carolan Dobson

Chairman

23rd May 2014

For further information, please contact:

Rebecca Burtonwood

For and on behalf of

JPMorgan Asset Management (UK) Limited, Secretary

020 7742 4000

Investment Managers' Report

Investment Scope and Process

The objective of the Company is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom. The investment universe is defined at the time of purchase by the countries and market capitalisation range of the constituents of the benchmark index, the Euromoney (formerly known as HSBC) Smaller European Companies (ex UK) Index. At the end of March 2014 the index consisted of 1,000 companies with a market value of between £81 million and £4.5 billion across fifteen countries. This universe of potential investments is screened using a proprietary multi-factor model to the results of which we apply fundamental analysis.

The investment process is driven by bottom-up stock selection with a focus on identifying market leading growth companies with a catalyst for outperformance. Position sizing is determined by investment conviction and trading liquidity in a stock. Investments are sold when there is a fundamental negative change in business prospects, long term price momentum has broken down or the market capitalisation has outgrown significantly the benchmark index. The policy is not to hedge the currency exposure of the portfolio's assets. The Board has established a liquidity range of between 20% cash and 20% gearing within which the Investment Managers may operate.

Market Review

The easing of tensions in the Eurozone, aggressively expansionary monetary policies by central banks, a less bad than expected economic outlook and attractive valuations combined to make the financial year extremely strong for equities. In the twelve months to 31st March 2014 the large company MSCI Europe (ex UK) Index rose by 33.5% in sterling. Smaller companies performed equally well and the benchmark Euromoney Smaller European Companies (ex UK) Index increased by 32.8%.

Portfolio Performance

We are pleased to report that, on a total return basis, the net asset value of the Company rose by 40.6% over the year, outperforming the benchmark index by 7.8% thanks to positive stock selection and successful management of the portfolio's gearing. Top stock contributors included the Spanish wind turbine manufacturer Gamesa and Dutch postal operator PostNL on restructuring, Italian online luxury goods retailer Yoox on continued strong growth and Greek Stock Exchange Hellenic Exchanges on substantial improvement in the Greek economy. Stocks which failed to deliver expected returns included Spanish media group Atresmedia, Norwegian salmon producer Marine Harvest and Italian cement group Buzzi Unicem.

We were geared in low double digit figures for much of the period, reflecting our ability to find attractively valued investment opportunities. We ended the year at 12.6% gearing.

Portfolio Positioning

At the sector level we have further increased overweight positions in economically sensitive sectors and reduced holdings in defensive sectors, such as pharmaceuticals, which benefit less from an economic upturn. New holdings which are benefiting from an economic upturn include French construction equipment producer Haulotte and camper van manufacturer Trigano on signs of long awaited upturns in their industries. We are also scouting the market for companies whose growth rates are accelerating as their industries are undergoing change. Two such notable investments are the French videogame publisher Ubisoft, as it should benefit from a new console cycle and a very strong games line-up and Saft, the world leader in the low growth nickel batteries market which is vastly increasing its growth opportunities by entry into the lithium-ion battery market. We are maintaining positions in secular growth businesses such as Italian online retailer of luxury goods Yoox and French food and pharmaceutical testing company Eurofins Scientific.

Valuation

In terms of valuation, smaller companies in Europe now trade on a price/book multiple comparable to large companies. As shown below, this is towards the top end of the range in which they have traded over the last twenty years. Nevertheless, as also can be seen below, smaller companies are trading in line with their long term average on an absolute basis. So whilst the asset class is not as cheap as it has been, it is not yet expensive, especially when we consider that we are on the cusp of an earnings recovery; European earnings are on average about 30% below the 2007 peak so the scope for an earnings recovery is substantial.

Outlook

If last year was all about economies getting less bad, our impression from conversations with corporate management is that economies began to stabilise late in the year and are now showing signs of improvement. The periphery of Europe has undergone dramatic economic change and most of these countries now, if not already, are very close to achieving primary and current account surpluses. This change has come about at significant social cost but with surprisingly little unrest. Thankfully the hard work appears to be paying off as these economies are finally showing signs of improvement based on fundamental and structural change that should enable them to grow in a sustainable manner. The United States, after a weather related economic pause in the first quarter of 2014, appears to have accelerated its growth trajectory and emerging markets, having endured a bout of current account deficit fears, appear to be stabilising.

Despite so much good news, markets currently are being held back by fears over civil unrest in Ukraine, concerns around the end of loose monetary policies, generally lacklustre earnings and fear of an electorate backlash at the upcoming European elections. We believe that central banks will maintain loose monetary policies for some time to come; European Central Bank President Draghi and Federal Reserve Bank Chair Yellen have repeatedly confirmed that they wish to remain accommodating as both deem unemployment levels to be unacceptably high. The current pause in the markets can be viewed as a phase of consolidation, rather than a top, following the rapid rise of the last twelve months.

Despite these uncertainties, we continue to identify attractively valued investment opportunities. The companies we talk to are generally finding life easier than they have at any time since the peak of 2007 and, whilst today their businesses are some way off those peaks, the hardship of the intervening years has made management and balance sheets much stronger. If we combine the economic upturn with a resurgence in corporate activity, such as the proposed mega-cap mergers of Lafarge and Holcim in cement, Pfizer and AstraZeneca in pharmaceuticals and GE and Siemens with Alstom in the engineering sector, we can look to the future with continued optimism

Jim Campbell
Francesco Conte

Investment Managers

23rd May 2014

Principal Risks

With the assistance of the Manager, the Board has drawn up a risk matrix, which identifies the key risks to the Company. These key risks fall broadly under the following categories:

• Investment and Strategy: An inappropriate investment strategy, for example asset allocation or the level of gearing, may lead to underperformance against the Company's benchmark index and peer companies, resulting in the Company's shares trading on a wider discount. The Board manages these risks by diversification of investments through its investment restrictions and guidelines which are monitored and reported on by the Manager. JPMAM provides the Directors with timely and accurate management information, including performance data and attribution analyses, revenue estimates, liquidity

reports and shareholder analyses. The Board monitors the implementation and results of the investment process with the Investment Managers, who attend all Board meetings, and reviews data which show statistical measures of the Company's risk profile. The Investment Managers employ the Company's gearing within a strategic range set by the Board. The Board holds a separate meeting devoted to strategy each year.

• Market: Market risk arises from uncertainty about the future prices of the Company's investments. It represents the potential loss that the Company might suffer through holding investments in the face of negative market movements. The Board considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines, which are monitored and reported on by JPMAM. The Board monitors the implementation and results of the investment process with the Manager.

• Accounting, Legal and Regulatory: In order to qualify as an investment trust, the Company must comply with Section 1158 of the Corporation Tax Act 2010 ('Section 1158'). Details of the Company's approval are given under 'Business of the Company' above. Were the Company to breach Section 1158, it might lose investment trust status and, as a consequence, gains within the Company's portfolio could be subject to Capital Gains Tax. The Section 1158 qualification criteria are continually monitored by JPMAM and the results reported to the Board each month. The Company must also comply with the provisions of the Companies Act and, since its shares are listed on the London Stock Exchange, the UKLA Listing Rules and Disclosure and Transparency Rules ('DTRs'). A breach of the Companies Act could result in the Company and/or the Directors being fined or the subject of criminal proceedings. Breach of the UKLA Listing Rules or DTRs could result in the Company's shares being suspended from listing which in turn would breach Section 1158. The Board relies on the services of its Company Secretary, JPMAM and its professional advisers to ensure compliance with the Companies Act, the UKLA Listing Rules and DTRs.

• Corporate Governance and Shareholder Relations: Details of the Company's compliance with Corporate Governance best practice, including information on relations with shareholders, are set out in the Corporate Governance report in the annual report.

• Operational: Loss of key staff by JPMAM, such as the Investment Managers, could affect the performance of the Company. Disruption to, or failure of, JPMAM's accounting, dealing or payments systems or the Custodian's records could prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMAM and its associates and the key elements designed to provide effective internal controls are included within the Risk Management and Internal Controls section of the Corporate Governance report in the annual report.

• Going concern: Pursuant to the Sharman Report, Boards are now advised to consider going concern as a potential risk, whether or not there is an apparent issue arising in relation thereto. Going concern is considered rigorously on an ongoing basis and the Board's statement on going concern is detailed in the annual report.

• Financial: The financial risks arising from the Company's financial instruments include market price risk, interest rate risk, liquidity risk and credit risk. Further details are disclosed in note 21 in the annual report.

Related Parties Transactions

During the financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company during the year.

Directors' Responsibility Statement

The Directors are responsible for preparing the annual report and accounts in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under Company law the Directors must not approve the financial statements unless they are satisfied that, taken as a whole, the annual report and accounts are fair, balanced and understandable, provide the information necessary for shareholders to assess the Company's performance, business

model and strategy and that they give a true and fair view of the state of affairs of the Company and of the total return or loss of the Company for that period. In order to provide these confirmations, and in preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business and the Directors confirm that they have done so.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the

Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The accounts are published on the www.jpmeuropeansmallercompanies.co.uk website, which is maintained by the Company's Manager, JPMorgan Asset

Management (UK) Limited ('JPMAM'). The maintenance and integrity of the website maintained by JPMAM is, so far as it relates to the Company, the responsibility of JPMAM. The work carried out by the Auditors does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditors accept no responsibility for any changes that have occurred to the accounts since they were initially presented on the website. The accounts are prepared in accordance with UK legislation, which may differ from legislation in other jurisdictions.

Under applicable law and regulations the Directors are also responsible for preparing a Directors' Report, Strategic Report, Statement of Corporate Governance and Directors' Remuneration Report that comply with that law and those regulations.

Each of the Directors, whose names and functions are listed in the annual report confirm that, to the best of their knowledge:

• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and return or loss of the Company; and

• the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The Board confirms that it is satisfied that the annual report and accounts taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the strategy and business model of the Company.

For and on behalf of the Board

Carolan Dobson

Chairman

23^rd May 2014

Income Statement

for the year ended 31st March 2014

	2014			2013
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value through profit or loss	-	126,985	126,985	-	40,908	40,908
Net foreign currency gains/(losses)	-	1,261	1,261	-	(1,276)	(1,276)
Income from investments	7,986	-	7,986	8,240	-	8,240
Other interest receivable and similar income	30	-	30	241	-	241
Gross return	8,016	128,246	136,262	8,481	39,632	48,113
Management fee	(1,314)	(3,067)	(4,381)	(1,008)	(2,353)	(3,361)
Other administrative expenses	(762)	-	(762)	(570)	-	(570)
Net return on ordinary activities before finance costs and taxation	5,940	125,179	131,119	6,903	37,279	44,182
Finance costs	(267)	(623)	(890)	(197)	(461)	(658)
Net return on ordinary activities before taxation	5,673	124,556	130,229	6,706	36,818	43,524
Taxation	(626)	-	(626)	(572)	-	(572)
Net return on ordinary activities after taxation	5,047	124,556	129,603	6,134	36,818	42,952
Return per share (note 3)	14.94p	368.82p	383.76p	16.47p	98.88p	115.35p

A final dividend of 8.5p per share (2013: 10.0p per share) is proposed in respect of the year ended 31st March 2014, costing £2,723,000 (2013: £3,378,000).

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. The Total column represents all the information that is required to be disclosed in a Statement of Total Recognised Gains and Losses ('STRGL'). For this reason a STRGL has not been presented.

Reconciliation of Movement in Shareholders' Funds

	Called up		Capital
	share	Share	redemption	Capital	Revenue
	capital	premium	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
At 31st March 2012	10,021	1,312	5,615	319,700	5,651	342,299
Repurchase and cancellation of the Company's own shares	(1,075)	-	1,075	(30,042)	-	(30,042)
Net return from ordinary activities	-	-	-	36,818	6,134	42,952
Dividends appropriated in the year	-	-	-	-	(6,102)	(6,102)
At 31st March 2013	8,946	1,312	6,690	326,476	5,683	349,107
Repurchase and cancellation of the Company's own shares	(938)	-	938	(39,893)	-	(39,893)
Net return from ordinary activities	-	-	-	124,556	5,047	129,603
Dividends appropriated in the year	-	-	-	-	(5,324)	(5,324)
At 31st March 2014	8,008	1,312	7,628	411,139	5,406	433,493

Balance Sheet

at 31st March 2014

	2014	2013
	£'000	£'000
Fixed assets
Investments at fair value through profit or loss	487,344	394,223
Investment in liquidity fund held at fair value through profit or loss	10,003	13,911
Total investments	497,347	408,134
Current assets
Financial assets: Derivative financial instruments	3	-
Debtors	19,179	7,971
Cash and short term deposits	5,434	347
	24,616	8,318
Current liabilities
Creditors: amounts falling due within one year	(47,134)	(50,429)
Derivative financial instruments	-	(3)
Net current liabilities	(22,518)	(42,114)
Total assets less current liabilities	474,829	366,020
Creditors: amounts falling due after more than one year	(41,336)	(16,913)
Net assets	433,493	349,107
Capital and reserves
Called up share capital	8,008	8,946
Share premium	1,312	1,312
Capital redemption reserve	7,628	6,690
Capital reserves	411,139	326,476
Revenue reserve	5,406	5,683
Total equity shareholders' funds	433,493	349,107
Net asset value per share (note 4)	1,353.4p	975.7p

The accounts were approved and authorised for issue by the Directors on 23rd May 2014 and were signed on their behalf by:

Carolan Dobson

Director

Company registration number: 2431143.

Cash Flow Statement

for the year ended 31st March 2014

	2014	2013
	£'000	£'000
Net cash inflow from operating activities	1,491	3,033
Returns on investments and servicing of finance
Interest paid	(879)	(712)
Net cash outflow from returns on investments and servicing of finance	(879)	(712)
Taxation
Overseas tax recovered	389	107
Capital expenditure and financial investment
Purchases of investments	(1,415,395)	(963,290)
Sales of investments	1,452,545	981,083
Other capital charges	(193)	(186)
Net cash inflow from capital expenditure and financial investment	36,957	17,607
Dividends paid (note 2)	(5,324)	(6,102)
Net cash inflow before financing	32,634	13,933
Financing
Net drawdown of loans	12,681	17,384
Repurchase and cancellation of the Company's own shares	(39,894)	(30,403)
Net cash outflow from financing	(27,212)	(13,019)
Increase in cash for the year	5,422	914

Notes to the Accounts for the year ended 31st March 2014

1.    Accounting policies

(a)  Basis of accounting

      The accounts are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ('UK GAAP') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (the 'SORP') issued by the AIC in January 2009. All of the Company's operations are of a continuing nature.

      The accounts have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments and derivative financial instruments held at fair value through profit or loss.

      The policies applied in these accounts are consistent with those applied in the preceding year.

2.   Dividends

(a)  Dividends paid and proposed

		2014	2013
		£'000	£'000
	Dividends paid
	2013 final dividend of 10.0p (2012: 11.0p) per share	3,378	3,952
	Interim dividend of 6.0p (2013: 6.0p) per share	1,946	2,150
	Total dividends paid in the year	5,324	6,102
	Dividend proposed
	Dividend proposed of 8.5p (2013: 10.0p) per share	2,723	3,578

      The dividend proposed in respect of the year ended 31st March 2014 is subject to shareholder approval at the forthcoming Annual General Meeting. In accordance with the accounting policy of the Company, this dividend will be reflected in the accounts for the year ending 31st March 2015.

      The dividend declared in respect of the year ended 31st March 2013 amounted to £3,578,192 (2013: £4,409,218). However, the amount actually paid was £3,377,958 (2013: £3,952,000) due to shares repurchased and cancelled after the balance sheet date but prior to the dividend record date.

3.   Return per share

      The revenue return per share is based on the revenue attributable to the ordinary shares of £5,047,000 (2013: £6,134,000) and on the weighted average number of shares in issue during the year of 33,771,954 (2013: 37,234,966).

      The capital return per share is based on the capital gain attributable to the ordinary shares of £124,556,000 (2013: £36,818,000) and on the weighted average number of shares in issue during the year of 33,771,954 (2013: 37,234,966).

      The total return per share is based on the earnings attributable to the ordinary shares of £129,603,000 (2013: £42,952,000) and on the weighted average number of shares in issue during the year of 33,771,954 (2013: 37,234,966).

4.   Net asset value per share

      The net asset value per share is based on the net assets attributable to the ordinary shareholders of £433,493,000 (2013: £349,107,000) and on the 32,029,577 (2013: 35,781,923) shares in issue at the year end.

5.   Status of announcement

2013 Financial Information

The figures and financial information for 2013 are extracted from the published Annual Report and Accounts for the year ended 31st March 2013 and do not constitute the statutory accounts for that year.  The Annual Report and Accounts have been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

2014 Financial Information

The figures and financial information for 2014 are extracted from the Annual Report and Accounts for the year ended 31st March 2014 and do not constitute the statutory accounts for the year. The Annual Report and Accounts includes the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006. The Annual Report and Accounts will be delivered to the Registrar of Companies in due course.

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

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

ENDS

A copy of the annual report will shortly be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/NSM

The annual report is also available on the Company's website at www.jpmeuropeansmallercompanies.co.uk where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found.

JPMORGAN ASSET MANAGEMENT (UK) LIMITED

 

END

 

 

FR UOAORSKAVUAR