Final Results

RNS Number : 2800O

JPMorgan European Smaller Co.

26 May 2015

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN SMALLER COMPANIES TRUST PLC

FINAL RESULTS FOR THE YEAR ENDED
31^ST MARCH 2015

Chairman's Statement

Dear Shareholder,

I am pleased to present the Company's results for the year ended 31st March 2015.

Performance

During the year ended 31st March 2015, performance was flat with a net asset value total return of +0.3% compared with the benchmark return of +0.1%. 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 on page 5 in the Annual Report shows that the Investment Managers' excess returns came through positive asset allocation, currency effects and the beneficial use of gearing. A review of the market and more details on performance are given in the Investment Managers' Report on pages 5 to 8 in the Annual Report. The discount of the Company's share price to net asset value widened slightly over the year from 11.3% to 13.0% at the year end, resulting in a total return to shareholders of -1.4%.

Investment Manager

As required under the Alternative Investment Fund Managers Directive ('AIFMD'), with effect from 1st July 2014, the Company appointed JPMorgan Funds Limited as its Alternative Investment Fund Manager under a new investment management agreement. Portfolio management is delegated by JPMorgan Funds Limited to JPMorgan Asset Management (UK) Limited, thus retaining Jim Campbell and Francesco Conte as the Investment Managers to the portfolio. The Company has appointed Bank of New York Mellon as its Depositary (an appointment also required under the AIFMD) and custody services continue to be provided by JPMorgan.

During the year a new management fee was negotiated. This became effective on 1st April 2015 and has been changed from 1.3% of market cap per annum to 1.0% of net assets.

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 £5.5 million (2014: £5.0 million). The Board's policy is to pay out the vast majority of the revenue available each year. An interim dividend of 1.2 pence per share was paid on 14th January 2015. Subject to shareholder approval at the forthcoming Annual General Meeting, a final dividend of 2.0 pence per share will be paid on 15th July 2015 to shareholders on the register at the close of business on 5th June 2015 (ex dividend date 4th June 2015).

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. No shares were repurchased for cancellation during the year.

Gearing

The Company renewed its existing €50 million revolving credit facility for a further two years in January 2015 at a reduced margin of 0.825%. 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 slightly to performance during the year under review.

Corporate Governance

At the Board's strategy review meeting held during the year, the focus points were Investment Strategy and Process and how best to market the Company.

The Nomination and Remuneration Committee evaluated the operations of the Board, individual Directors and the Chairman during the year, in addition to there being an externally facilitated evaluation of the Board as part of the recruitment exercise for a new Director. In line with corporate governance best practice, all Directors seek annual reappointment. We were pleased to announce earlier this month that Nicholas Smith had been appointed as a Director. He has been appointed to replace Anthony Davidson who will retire from the Board following the Annual General Meeting. Nicholas Smith is a chartered accountant with a long term career in investment banking and, from 1993 to 1997 as CFO of Jardine Fleming.

On behalf of the Board and the Investment Managers, I would like to record our thanks and appreciation to Anthony Davidson for his wise counsel and detailed commitment to the workings of the Board and in leading the Audit Committee throughout his tenure as a Director of our Company.

During the year, the Management Engagement Committee 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.

Sub-Division of the Company's Share Capital

During the year, following shareholder approval, a sub-division of the Company's share capital took place on five for one basis which increased the number of ordinary shares in issue by a factor of five.

Annual General Meeting

The Company's Annual General Meeting will be held at 60 Victoria Embankment, London EC4Y 0JP, on Friday, 10th July 2015 at 12 noon. The Investment Managers will make a presentation covering the past year and give 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.

If at any other time you wish to contact the Chairman or any other member of the Board, please write c/o the Company Secretary at 60 Victoria Embankment, London EC4Y 0JP. I can assure you that all correspondence is forwarded accordingly.

Outlook

European economic activity is improving and our Investment Managers report that company profit forecasts are increasing and that valuations of European smaller companies offer good value but we need to remain vigilant as to how the expected rise in US interest rates may affect valuations of global equity markets.

Carolan Dobson

Chairman

26th May 2015

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 Smaller European Companies (ex UK) Index. At the end of March 2015 the index consisted of 1,000 companies with a market value of between £51 million and £3.3 billion across 15 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. Stock position sizing is determined by investment conviction and trading liquidity. Investments are sold when there is a fundamental negative change in business prospects or the market capitalisation has outgrown significantly the benchmark index. The Board has set a liquidity range of between 20% cash and 20% gearing within which the Investment Managers may operate. The policy is not to hedge the currency exposure of the portfolio's assets.

Market Review

The two halves of the Company's 2014/15 year were marked by a sharp contrast in returns for investors in European equities. The six months to the end of September witnessed renewed concerns over economic recovery in Europe, with the impact of sanctions against Russia at the forefront, and the German government ten year bond yield fell to a new low of 0.95%.

However, two factors were at play to support the prospects for European corporate earnings going into 2015. The price of oil had collapsed with Brent Crude falling by half in the 12 months to March 2015, thereby significantly reducing energy costs across the economy. Equally importantly, the value of both the Euro and the Swedish Krone against the US Dollar fell by over 20% in the same period, providing a significant boost to European competitiveness. Combined with January 2015's European Central Bank announcement of an 18 month programme of €60 billion per month of quantitative easing, this led to a sharp recovery in European equities in the first quarter of 2015.

In the 12 months to March 2015 the large company MSCI Europe (ex UK) Index rose by 10.1% in sterling. Smaller companies failed to rebound as strongly from the first half sell-off and the benchmark Euromoney Smaller European Companies (ex UK) Index increased by only 0.1%.

Portfolio Performance

Over the year, the net asset value total return of the Company performed a touch ahead of the benchmark index with a rise of 0.3% thanks largely to a positive contribution from asset allocation by being underweight Norway as the oil price slumped. Stock selection was marginally negative; positive contributors included French recreational vehicle manufacturer Trigano on recovering demand, Swiss semiconductor supplier AMS on continued strong operational momentum and Dutch animal and fish feed producer Nutreco following a takeover bid. Stocks which failed to deliver expected returns included Italian auto components manufacturer Sogefi on weak demand in Brazil, Dutch construction group Bam on cost overruns and Swiss online travel business Bravofly Rumbo following a disappointing IPO. Active use of gearing made a small positive contribution to performance.

Portfolio Positioning

The portfolio retained a bias towards cyclically sensitive sectors and ended the year with industrial engineering, household goods and auto components as three of the top positive active positions. Within engineering, aside from strong performance from such holdings as the aforementioned Trigano, in Germany we added world leading manufacturer of automotive paint systems Duerr and industrial fastener producer Norma and in Switzerland we added lock manufacturer Kaba. New holdings in Italian outerwear brand Moncler and the IPOs in Italian fashion retailer OVS and the Belgian manufacturer of disposable personal hygiene products Ontex led to personal products becoming the second most overweight sector. Oil services, pharmaceuticals and real estate remained the sectors to which the portfolio has the most underweight exposure.

The biggest shift at a country level was the move from underweight to overweight in Sweden thanks to strong performance from such stocks as the portfolio's sole real estate holding Fastighets Balder and polymer producer Hexpol and new positions in packaging materials manufacturer BillerudKorsnas and online gaming software designer Net Entertainment. France, Italy and the Netherlands remained the portfolio's most overweight countries.

The level of gearing was reduced from 12.6% at the start of the Company's year to a net cash position of 2.5% in September, reflecting the weaker market environment. This was redeployed somewhat in the second half of the Company's year as the stimuli from a weak oil price, more competitive currencies and quantitative easing became evident and the portfolio ended the year with gearing of 7.5%.

Outlook

For the first time in four years Eurozone companies are receiving upgrades to analyst earnings forecasts, according to UBS. Whereas the high energy exposure of the UK market has negatively impacted earnings and Switzerland has had to contend with currency revaluation, Eurozone companies have benefited from improving leading indicators, a lower oil price and a more competitive currency. That the earnings upgrade momentum is being driven by cyclical sectors provides support for the portfolio's positioning. Moreover, the latest ECB Bank Lending Survey points to a 2% - 3% credit impulse to GDP. Following growth of 0.9% in 2014, Euroland GDP is forecast by Deutsche Bank to accelerate to 1.5% this year and next, led by Germany, Spain and Ireland, with growth in non-Euroland Sweden forecast at closer to 3.0%.

Smaller companies in Europe are in good shape with strong balance sheets and an improving earnings outlook. The revival of the European IPO market can expect to be complemented by an increase in merger and acquisition activity. Whilst smaller company valuations are in-line with their long term average price/book multiple, following a year when large companies enjoyed meaningful outperformance, smaller companies are now trading towards the lower end of their relative valuation range. The improving economic backdrop provides the opportunity for us to continue to find high quality businesses with positive operating momentum and attractive valuations in which to invest.

Jim Campbell

Francesco Conte

Investment Managers

26th May 2015

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 Underperformance and Strategy: An inappropriate investment strategy, for example excessive concentration of investments, asset allocation, the level of gearing or the degree of portfolio risk, may lead to underperformance against the Company's benchmark index and peer companies, which may result 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. JPMF 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 Board sets strategic guidelines for gearing as well as investments. Once those are agreed, decisions on levels of gearing are delegated to the Investment Managers, whose decisions are subject to challenge by the Board. The Board holds a separate meeting devoted to strategy each year.

• Market and Currency: 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 JPMF. The Board monitors

the implementation and results of the investment process with the Manager. The majority of the Company's assets, liabilities and income are denominated in euros rather than in the Company's functional currency of sterling (in which it reports). As a result, movements in the euro:sterling exchange rate may affect the sterling value of those items. Therefore, there is an inherent risk from these exchange rate movements. The fair value or future cash flows of a

financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - currency risk, interest rate risk and other price risk. Information to enable an evaluation of the nature and extent of these three elements of market risk is given in note 21(a) on pages 57 to 62 of the Annual Report, together with details of how the Board manages these risks.

• 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 may lose investment trust status and, as a consequence, gains within the Company's portfolio would be subject to capital gains tax. The Section 1158 qualification criteria are continually monitored by JPMF and the results reported to the Board each month. The Company must also comply with the

provisions of the Companies Act 2006 and, since its shares are listed on the London Stock Exchange, the UKLA Listing Rules, Disclosure and Transparency Rules ('DTRs') and, as an investment trust, the Alternative Investment Fund Managers Directive ('AIFMD'). 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. Failure of the Manager to comply with the AIFMD could lead to the Manager losing its status as an Alternative Investment Fund Manager ('AIFM') and the Company would then need to change its AIFM. The Board relies on the services of its Company Secretary, the Manager and its professional advisers to ensure compliance with the Companies Act, the UKLA Listing Rules, DTRs and AIFMD.

• 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 Statement on pages 27 to 32 of the Annual Report.

• Operational: Loss of key staff by the Manager, such as the Investment Managers, could affect the performance of the Company. Disruption to, or failure of, the Manager's accounting, dealing or payments systems or the Depositary or Custodian's records may prevent accurate reporting and monitoring of the Company's financial position. Details of how the Board monitors the services provided by JPMF and its associates and the key elements designed to provide effective risk management and internal controls are included within the Risk Management and Internal Controls section of the Corporate Governance Statement on page 31 of 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 on page 24 of 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 on pages 57 to 63 of the Annual Report.

Related Party 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.

Statement of Directors' Responsibilities

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 accounting 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. The maintenance and integrity of the website maintained by the Manager is, so far as it relates to the Company, the responsibility of the Manager. 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 on pages 22 and 23 of 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.

The Board also confirms that it is satisfied that the Strategic Report and Directors' Report include a fair review of the development and performance of the business, and the position of the Company, together with a description of the principle risks and uncertainties that the Company faces.

For and on behalf of the Board

Carolan Dobson

Chairman

26th May 2015

Income Statement

for the year ended 31st March 2015

		2015			2014
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments held at
fair value through profit or loss		-	(8,060)	(8,060)	-	126,985	126,985
Net foreign currency gains		-	7,229	7,229	-	1,261	1,261
Income from investments		8,448	-	8,448	7,986	-	7,986
Other interest receivable and similar income		138	-	138	30	-	30
Gross return/(loss)		8,586	(831)	7,755	8,016	128,246	136,262
Management fee		(1,336)	(3,117)	(4,453)	(1,314)	(3,067)	(4,381)
Other administrative expenses		(694)	-	(694)	(762)	-	(762)
Net return/(loss) on ordinary activities
before finance costs and taxation		6,556	(3,948)	2,608	5,940	125,179	131,119
Finance costs		(290)	(676)	(966)	(267)	(623)	(890)
Net return/(loss) on ordinary activities
before taxation		6,266	(4,624)	1,642	5,673	124,556	130,229
Taxation		(747)	-	(747)	(626)	-	(626)
Net return/(loss) on ordinary activities
after taxation		5,519	(4,624)	895	5,047	124,556	129,603
Return/(loss) per share1  (Note 3)		3.45p	(2.89)p	0.56p	2.99p	73.76p	76.75p

¹Comparative figures for the year ended 31st March 2014 have been restated due to the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 23rd July 2014.

A final dividend of 2.0p per share (2014: 1.7p¹ per share) is proposed in respect of the year ended 31st March 2015, costing £3,203,000 (2014: £2,723,000). More details can be found in Note 2 below.

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 Movements 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 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
Expenses incurred due to stock split	-	-	-	(16)	-	(16)
Net (loss)/return from ordinary activities	-	-	-	(4,624)	5,519	895
Dividends appropriated in the year	-	-	-	-	(4,645)	(4,645)
At 31st March 2015	8,008	1,312	7,628	406,499	6,280	429,727

Balance Sheet

at 31st March 2015

		2015	2014
		£'000	£'000
Fixed assets
Investments at fair value through profit or loss		465,221	487,344
Investment in liquidity fund held at fair value through profit or loss		9,992	10,003
Total investments		475,213	497,347
Current assets
Derivative financial instruments		-	3
Debtors		6,322	19,179
Cash and short term deposits		1,300	5,434
		7,622	24,616
Current liabilities
Creditors: amounts falling due within one year		(9,699)	(47,134)
Net current liabilities		(2,077)	(22,518)
Total assets less current liabilities		473,136	474,829
Creditors: amounts falling due after more than one year		(43,409)	(41,336)
Net assets		429,727	433,493
Capital and reserves
Called up share capital		8,008	8,008
Share premium		1,312	1,312
Capital redemption reserve		7,628	7,628
Capital reserves		406,499	411,139
Revenue reserve		6,280	5,406
Total equity shareholders' funds		429,727	433,493
Net asset value per share1 (Note 4)		268.3p	270.7p

¹Comparative figures for the year ended 31st March 2014 have been restated due to the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 23rd July 2014.

Company registration number: 2431143.

Cash Flow Statement

for the year ended 31st March 2015

		2015	2014
		£'000	£'000
Net cash inflow from operating activities		2,084	1,491
Returns on investments and servicing of finance
Interest paid		(974)	(879)
Net cash outflow from returns on investments and servicing of finance		(974)	(879)
Taxation
Overseas tax recovered		518	389
Capital expenditure and financial investment
Purchases of investments		(1,047,145)	(1,415,395)
Sales of investments		1,065,882	1,452,545
Other capital charges		(207)	(193)
Net cash inflow from capital expenditure and financial investment		18,530	36,957
Dividends paid		(4,645)	(5,324)
Net cash inflow before financing		15,513	32,634
Financing
Net (repayment)/drawdown of loans		(20,585)	12,681
Repurchase and cancellation of the Company's own shares		-	(39,894)
Expenses incurred due to stock split		(16)	-
Net cash outflow from financing		(20,601)	(27,212)
(Decrease)/increase in cash for the year		(5,088)	5,422

Notes to the Financial Statements

for the year ended 31st March 2015

1.    Accounting policies

(a)  Basis of accounting

      The financial statements 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 financial statements 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 financial statements are consistent with those applied in the preceding year.

2.   Dividends

Dividends paid and proposed

	2015	2014
	£'000	£'000
Dividends paid
2014 final dividend of 1.7p1 (2013: 2.0p)1 per share	2,723	3,378
Interim dividend of 1.2p (2014: 1.2p)1 per share	1,922	1,946
Total dividends paid in the year	4,645	5,324
Dividend proposed
Dividend proposed of 2.0p (2014: 1.7p)1 per share	3,203	2,723

¹Dividend rates have been restated due to the sub-division of each existing ordinary share of 25p into 5p each on 23rd July 2014.

The dividend proposed in respect of the year ended 31st March 2015 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 2016.

The dividend declared in respect of the year ended 31st March 2014 amounted to £2,722,514 (2014: £3,578,192). The amount actually paid was the same (2014: £3,377,958 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 £5,519,000 (2014: £5,047,000) and on the weighted average number of shares in issue during the year of 160,147,885 (2014: 168,859,770).

The capital loss per share is based on the capital loss attributable to the ordinary shares of £4,624,000 (2014: £124,556,000 return) and on the weighted average number of shares in issue during the year of 160,147,885 (2014: 168,859,770).

The total return per share is based on the earnings attributable to the ordinary shares of £895,000 (2014: £129,603,000) and on the weighted average number of shares in issue during the year of 160,147,885 (2014: 168,859,770).

Comparative figures for the year ended 31st March 2014 have been restated due to the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 23rd July 2014.

4.   Net asset value per share

The net asset value per share is based on the net assets attributable to the ordinary shareholders of £429,727,000 (2014: £433,493,000) and on the 160,147,885 (2014: 160,147,885) shares in issue at the year end.

Comparative figures for the year ended 31st March 2014 have been restated due to the sub-division of each existing ordinary share of 25p into five ordinary shares of 5p each on 23rd July 2014.

5.   Status of results announcement

2014 Financial Information

The figures and financial information for 2014 are extracted from the published Annual Report and Accounts for the year ended 31^st March 2014 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 IndependentAuditors which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

2015 Financial Information

             The figures and financial information for 2015 are extracted from the Annual Report and Accounts for the year ended 31^st March 2015 and do not constitute the statutory accounts for the year.  The Annual Report and Accounts include 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 Register 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 FUNDS 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 will also shortly be 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 FUNDS LIMITED

 

END

 

 

FR UNSVRVSAVUAR