Annual Financial Report

RNS Number : 2945Q

Montanaro European Smaller C.TstPLC

18 June 2020

 

Montanaro European Smaller Companies Trust plc (the "Company'')

LEI: 213800CWSC5B8BG3RS21

Financial Results

RESULTS FOR THE YEAR ENDED 31 MARCH 2020

The Directors are pleased to present the Annual Financial Results of the Company for the year ended 31 March 2020.

The information set out below does not constitute the Company's full statutory accounts for the year ended 31 March 2020 in terms of Section 434 of the Companies Act 2006 but is derived from those accounts. Statutory accounts for the year ended 31 March 2020 will be posted to Shareholders and delivered to the Registrar of Companies, in due course. The Auditors have reported on those accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The text of the Auditors' report can be found in the Company's full Annual Report and Accounts Audited statutory accounts for the year to 31 March 2019, which were unqualified, have been lodged with the Registrars of Companies.

Investment objective

The investment objective of Montanaro European Smaller Companies Trust plc is to achieve capital growth by investing principally in Continental European quoted smaller companies.

Highlights

Capital Returns%(1)	1 Year	3 Year	5 Year	10 Year	MAM*
Ordinary share price	(1.1)	26.6	70.9	135.9	173.3
Net Asset Value ('NAV')**	(5.3)	17.6	67.4	124.1	178.1
Benchmark (Composite)(2) **	(15.1)	(12.5)	18.3	63.7	84.9

Total Returns%(1)	1 Year	3 Year	5 Year	10 Year	MAM*
Ordinary share price	(0.3)	30.3	80.7	164.5	229.2
NAV**	(4.5)	20.2	75.4	144.5	216.9
Benchmark (Composite)(2) **	(13.4)	(7.5)	29.6	97.3	138.6

Sources: Morningstar Direct, Association of investment Companies ('AIC'), MAM.

	As at 31 March 2020	As at 31 March 2019	12 month % change
Ordinary share price	880.0p	890.0p	(1.1)
NAV per Ordinary share**	956.9p	1,010.8p	(5.3)
Discount to NAV(1)	8.0%	12.0%
Gross assets** (£'000s)	168,932	177,713	(4.4)
Net assets** (£'000s)	160,123	169,141	(5.3)
Market capitalisation** (£'000s)	147,253	148,926	(1.1)
Net gearing employed(1)	5.8%	0.7%

	Year ended 31 March 2020	Year ended 31 March 2019	12 month % change
Revenue return per Ordinary share	11.9p	9.5p	25.3
Divided per Ordinary share	9.25p	9.0p	2.8
Ongoing charges(1)	1.2%	1.2%
Portfolio turnover**	14%	15%

* From 5 September 2006, when Montanaro Asset Management ('MAM') were appointed as Investment Manager.
** Details provided in the glossary in the full Annual Report and Accounts .

(1)   Refer to Alternative Performance Measures in the full Annual Report and Accounts.
(2)   From 5 September 2006, the benchmark was the MSCI Europe SmallCap Index. The benchmark was changed on 1 June 2009 to the MSCI Europe ex-UK   SmallCap Index (in sterling terms).

Chairman's Statement

for the year ended 31 March 2020

Results

In a difficult and volatile year for investors in European smaller companies, the MSCI Europe (ex UK) Small Cap Index (in Sterling terms) declined by 15.1% for the financial year ended 31 March 2020. In comparison, the Net Asset Value ("NAV") of your Company declined by 5.3% to 956.9p per share. Shareholders benefitted from a narrowing of the discount from 12% to 8%. As a result the share price of the Company provided a return of (1.1)%.

Although it is always disappointing to lose money I am nevertheless please with the investment performance, relative not only to our benchmark but also to other European smaller company funds, delivered by our manager over the year. Subsequent to the year end, the Company's NAV recovered from the sharp decline experienced in the final quarter of the financial year as the global Covid-19 crisis unfolded. Between 31 March 2020 and 15 June 2020 (being the latest practicable date), the NAV rose from 956.9p to 1,216.6p, an increase of 27.1%. As a result, the NAV was 10.7% higher than 12 months earlier.

Over the medium and longer term performance has also been exceptional with your Trust being ranked 1^st over 3 years and 5 years amongst all European Investment Trusts. Since the appointment of Montanaro Asset Management Limited ("Montanaro") in September 2006, the NAV per share has provided a total return of 216.9%, compared with 138.6% for the benchmark index.

A review of the investment philosophy, process, and a further analysis of performance is set out in the Manager's Report together with more detail on some of the businesses in which the Company is invested.

Earnings and Dividends  

Revenue earnings per share for the year were 11.9p (2019: 9.5p).

The Company's primary aim is to deliver capital growth to its shareholders. However, our substantial revenue reserve combined with the long-term growth in dividends of the companies in which we invest, have allowed us to maintain a consistent and robust dividend payout.

An interim dividend of 2p per share was paid on 3 January 2020. The Board recommends the payment of a final dividend of 7.25p per share payable on 15 September 2020 to shareholders on the register on 14 August 2020. Subject to shareholder approval, this would bring the total dividends for the year to 9.25p per share, an increase of 2.8% compared to the previous year.

In the fiscal year to March 2021 it is very   likely that income from your investee   companies will decline from the high   levels seen this year. Companies   throughout Europe are reducing or   postponing their dividends in the face of   global economic uncertainty and political   pressure to limit such distributions given   the government support schemes that   have been put in place. We remain   confident in the long-term prospects of your investee companies and, as mentioned above, have a substantial revenue reserve.

Borrowings

The Board, in discussion with the Manager, regularly reviews the gearing strategy of the Company and approves the arrangement of any gearing facility. Gearing increases or decreases the returns from underlying profits or losses generated by the investment portfolio. This is a key feature of investment trusts that we believe offers a strong competitive advantage over alternative open-ended investment funds. Therefore, the Board encourages the active use of gearing by the Manager.

The Board has set a maximum limit on borrowing, net of cash, of 30% of shareholders' funds at the time of borrowing. At the end of the fiscal year, the Company had borrowings, net of cash, of 5.8% compared to 0.7% at the beginning of the year. The low level of gearing gives the Manager plenty of flexibility to invest more as and when they consider the conditions are right.

The Company currently has borrowings in the form of a €10 million fixed rate loan and a €15 million revolving credit facility, both of which are due to mature on 13 September 2023.

Directors

As part of the normal process of Board refreshment, the Nomination Committee has been involved for some time in the recruitment process for a replacement for Mrs Somerset Webb, who has served on the Board since 2011. However, in light of the lockdown due to Covid-19, this process remains ongoing at the date of this report. Merryn has kindly agreed to remain on the Board until her replacement is found to ensure that the Board retains a sufficient balance of skills during this transition period. An announcement will be made to the market once a replacement has been identified.

Treasury Shares

During the year, the Company did not buy back shares into or sell shares from Treasury. The Board's stated Treasury shares policy is included in the Annual Report and Accounts. The Board will seek to renew the Company's share buyback and share issuance authorities at the forthcoming Annual General Meeting.

Coronavirus Pandemic

Since the end of February 2020, global financial markets have seen considerable disruption due to the rapid spread of the Coronavirus (Covid-19). All the Company's service providers have enacted their respective business continuity plans and continue to operate normally. At times of stock market volatility, the benefits of a closed end structure become evident.

Annual General Meeting

The Annual General Meeting will   be held behind closed doors on   10 September 2020 at 12.30pm. At the   time of publication of this document,   the UK Government has prohibited   large public gatherings, save in certain   limited circumstances. In light of these   measures and in order to protect the   health and safety of the Company's   shareholders and Directors, the AGM   will be conducted as a closed meeting   and will be held to complete the formal   business only. A separate event to   allow shareholders the chance to ask questions to the Board or the Manager will be arranged prior to the AGM and details of this will be announced to the Stock Exchange in due course.

The Board recognises that the situation   is fluid and any changes to our planned   approach will be communicated to   shareholders via a Stock Exchange   announcement and by an update on the   Company's website.

Outlook

T he final quarter of the financial year will   undoubtedly enter the history books: the   bull market came to an abrupt end as the   Covid-19 virus spread across the globe.

During these unprecedented times, the   Montanaro team have been busy speaking   t o your investee companies to understand   how they are being impacted by the   collapse in global economic activity. In   particular, they have been looking closely   at balance sheet risk and companies'   access to credit. It is in times like these   that we are reminded of the importance   of the Manager's unwavering emphasis   on investing in high quality businesses   with strong balance sheets. These are the   companies that will survive and should   emerge stronger from the storm.

We should also expect the global   health crisis to result in greater investor   focus on the Environmental, Socia l and Governance ("ESG") credentials of   investment funds in the years to come.   This has long been one of the strengths   of the Montanaro investment proces s in which ESG has been integrated for   many years. Our shareholders may have   noticed that Montanaro have recently   started to report on the carbon footprint   of the Company's investments. Together   with the Company's aggregate ESG   score, this additional disclosure will allow   our investors to gauge the results of   Montanaro's constructive engagement   with your investee companies.

In last year's report I noted that your   portfolio consists of some of the   highest quality, quoted companies   in Europe. Their strong management   teams, sound balance sheets, cash   generative business models and good   growth prospects have never been more   important, and it is these attributes that   give us confidence that long-term returns   will remain attractive for investors.  

I would also like to congratulate the   whole team at Montanaro for the   awards that our Trust has won over   the past year - Best European Trust at   the Money Observer Investment Trust   Awards 2020, Winner of the European   Equity category in the 2019 FTAdviser   Investment 100 Club and Winner of the   CityWire European Equities Investment   Trust Award 2019.

I would like to thank our investors for   their support and finally, on behalf of th e Board and Montanaro, I would like to   wish all of our investors and their loved   ones well.

R M CURLING

Chairman

17 June 2020

Manager's Report

The Attractions of Quoted European Smaller Companies ('SmallCap')

The key attraction of investing in smaller   companies is their long-term record of   delivering higher returns to investors   than large companies. In the UK, over   the last 65 years, this has amounted to   an average of 3.3% per annum ("the   SmallCap Effect"). £1 invested in UK   large companies in 1954 would now   be worth £1,176 whereas the same £1   invested in smaller companies would   now be worth over £7,800 - more than 6   times more.

We have less comprehensive data on   Europe - it only goes back to 2000. But   this suggests that the SmallCap Effect is   even more pronounced on the Continent:   European   "small" companies have outperformed by   over 5.2% per annum.

The market for European smaller   companies is inefficient. While some   large companies are analysed by   more than 50 brokers, many smaller   companies in Europe have little or no   such coverage. We believe that this   makes it easier for those with a high level   of internal resources to identify attractive,   undervalued and unrecognised   investment opportunities. This in turn   makes it possible to deliver long-term   performance over and above that of the   benchmark.

Montanaro

Montanaro was established in 1991.   We have one of the largest and most   experienced specialist teams in the UK   dedicated exclusively to researching and   investing in quoted small companies.   Our team of 31 includes 10 nationalities,   which gives us the breadth and scope to   conduct thorough in-house research.

At 31 March 2020, we were looking after   over £2 billion of assets.

Investment Philosophy and Approach

We specialise in researching and   investing in quoted small companies.  

We have a disciplined, two-stage   investment process. Firstly, we identify   "good businesses" within our investable   universe. In the second stage, we   determine the intrinsic value of each   company to ensure they will make a   "good investment" (the two are not   always the same). When we consider   that we have identified a good company,   it must pass our stringent quality and   ESG checklists and be approved by   our Investment Committee before it can be added to the "approved list". ESG has been integrated in our disciplined investment process for many years. Only the most attractive companies make it on to the approved list and it is from these that we construct your portfolio.

We have an in-house team of eleven analysts who are sector specialists. This is one of the largest such specialist teams in the country. Utilising their industry knowledge and a range of proprietary screens, they are continually searching for new ideas. With around 4,000 companies to choose from, we arespoiled for choice.

We look for high quality companies in markets that are growing. They must be profitable; have good and experienced management; deliver sustainably high returns on capital employed; enjoy high and ideally growing profit margins reflecting pricing power and a strong market position; and provide goods and services that are in demand and likely to remain so.

We prefer companies that can deliver self-funded organic growth and remain focused on their core areas of expertise, rather than businesses that spend a lot of time on acquisitions. Conversely, we avoid those with   stretched balance sheets; poor free   cash flow generation; incomprehensible   or heavily adjusted accounts; unproven   or unreliable management; or that face   structurally challenged business models   with stiff competition.

We believe that a deep understanding   of a company's business model and   the way it is managed are essential.   Therefore, we visit our investee   companies on a regular basis. These   visits are important: we meet employees   who have not met investors before;   gain a better insight into the products   and services provided; and observe   and come to appreciate the culture of   the company that is hard to glean from   reading an annual report. Few of our   peers have the in-house resources to   conduct such thorough due diligence.   Although hard work, these site visits are   a way for us to add value and they help   us to predict where a company will be in   5 - 10 years. We are long-term investors.

Management's past track record   is examined in detail as we seek to   understand their goals and aspirations.   In smaller companies, the decisions of   the entrepreneurial management can   make or break a company (which is   why meeting them is so important). We   look closely at the board structure; the   level of insider ownership; and examine   remuneration and corporate governance   policies.

Once a company has been added to   the portfolio, our team conduct ongoing   analysis. We will sell a holding if we   believe that the company's underlying   quality is deteriorating or if there has   been a fundamental change to the   investment case or management. We will get things wrong.

In summary, we invest in well managed,   high quality, growing companies bought   at sensible valuations. We keep turnover   and transaction costs low and follow   our companies closely over many years.   We would rather pay more for a higher quality, more predictable company that can be valued with greater certainty. Finally, we align ourselves with our investors by investing meaningful amounts of our own money alongside yours. We are significant shareholders in the Trust.

Environmental, Social & Governance

Montanaro became a B Corporation i n June 2019. "B Corps" are businesses   that meet the highest standard of   verified social and environmental   performance, public transparency and   legal accountabilit y to balance profit and   purpose.

As part of our due diligence work, we   place a great deal of emphasis on e thical   and ESG factors. We work closely with   our companies to encourage sustainable   business practices, which we believ e play an integral part in the creation of   long-term shareholder value.  

Montanaro believes there is a clear   correlation between how well a business   fares on Environmental, Social and   Corporate Governance grounds and   the value it creates for its shareholders.   Therefore, ESG considerations form   an integral part of our assessment of   a company's "quality" and are fully integrated into our investment process.   All the ESG research is done in-house by   our a nalysts.

In addition, we engage with companies in   an effort to improve corporate behaviour.   As responsible shareholders, we believe   that it is our duty to engage with our   investee companies. In our experience,   active and constructive engagement can   help to foster positive long-term change   in the way businesses are run.

We do not invest in companies that   generate a significant proportion of sales   from products with negative societal   impact such as tobacco, gambling,   armaments, alcohol, high-interest-rate   lending and fossil fuels. Similarly, we do   not invest in companies that conduct   animal testing, unless it is required by   law for healthcare purposes. With the   "sustainability" trend a growing feature   of the investment landscape, we believe   that we are ahead of the curve. In   SmallCap, it is particularly important to   engage with companies to influence the   impact they have on the world. Our high   level of in - house resources makes this   possible.

How to invest

We have invested a great deal of time   to make the Trust readily available to all   investors. We have continued to grow   our presence across the UK's investment   platforms and are delighted to see a   steady increase, year after year, in the   Trust's retail following.

Together with the Board, we have appointed   Marten & Co to provide sponsored research   - you can find the initiation report published   in March 2019 here:

https://www.montanaro.co.uk/mesct-quality-business/  

And an update report published in   September 2019 here:  

https://www.montanaro.co.uk/focus-on-the-small-picture/  

For further details about how to invest,   please refer to the website:

https://www.montanaro.co.uk/trust/mesct

The Portfolio

At 31 March 2020, the portfolio consisted   of 56 companies of which the top ten   holdings represented 34%.

Sector distribution within the portfolio   is driven by stock selection. Although   weightings relative to the market are   monitored, overweight and underweight   positions are held based on where the   greates t value and upside are perceived   to be.

Performance Attribution

The year to 31 March 2020 saw some strong performance from our largest contributors.

Sartorius Stedim the developer of equipment used to manufacture biologic drugs, again delivered excellent financial results. As a supplier of critical components to develop and manufacture vaccines, we believe the company has a significant role to play in the global response against Covid-19. 

Fortnox provides cloud bases accounting systems to companies in Sweden. The company's market leading product and the inherent scalability of its distribution ensured another year of rapid growth and expanding profitability.

MIPS sells a patented insert for recreational helmets which protects against rotational motion. More and more helmet brands have been adopting the technology in their ranges and some are now even using it every helmet model they produce. The higher adoption drove a strong period of growth.

Our largest detractor was MTU Aero Engines which develops, manufactures and repairs aircraft engines. The company was the largest contributor to performance last year and continued to perform well through 2019. However, the Covid-19 crisis has led to unprecedented declines in global air traffic, from which it is not immune.

Merlin Properties, the Spanish commercial Real Estate Investment Trust, also saw its share price drop significantly as a result of the severe lockdowns in its core markets. These lockdowns limit the ability of some of Merlin's tenants to operate and in turn pay rent to the company in the short term.

Atea is the market leading supplier of IT   infrastructure for businesses and public   sector organisations in the Nordic and   Baltic regions. The company's share   price suffered as the traditional end-of - year   budget flush by their customers was   weaker than expected and as the Danish   subsidiary underperformed. We believe   these issues are temporary and that the   company is well positioned for the future,   hence we added to our position.

Portfolio Changes

We try to keep portfolio turnover as   low as possible. Nevertheless, we   typically make a few changes each year   as we find new ideas that we believe   will provide stronger long-term returns   than existing holdings. Companies   that become too large, get acquired or   whose investment case deteriorates are   also replaced with new stocks from our a pproved l ist.

In the year to 31 March 2020 we exited   positions in companies including   Hufvudstaden , which owns prime   property in major Swedish cities.   The business is high quality and well   managed but after a strong share price   performance we felt there were better   investment opportunities elsewhere.   Nilorn , which designs labels and   packaging products was sold because   we disagreed with the management's   capital allocation priorities and had   concerns with the deteriorating quality   of their reporting. Chr. Hansen, which   develops ingredients such as cultures,   enzymes, probiotics and natural colours,   was sold as its market capitalisation   became large and because we felt   future growth and returns would   likely decelerate - concerns which   we did not feel were reflected in the   company's valuation.  

Ne w additions to the portfolio included   Medistim , which makes intraoperative   quality control equipment for cardiac and   vascular surgery; Marel, the provider of   food processing technology; and Atoss   Software , which develops software   used for the optimisation of workforce   management.

Gearing

The Alternative Investment Fund Manager ("AIFM"), in consultation with the Board, is responsible for determining the net gearing level of the Company. The Company ended the fiscal year with the gearing of 5.8% (31 March 2019: 0.7%)

Covid-19

The bleak economic outlook sparked by   the global response to Covid-19 most   threatens businesses with structural   weaknesses - poor management, a   weak balance sheet, a lack of recurring   revenue or pricing power. However,   despite our steadfast commitment to   investing in h igh q uality businesses, we   are taking nothing for granted.

From the very first day of lockdown, our a nalysts have been working remotely.   Aside from this change it has been   business as normal. We have learned   how each company is coping in this new   reality and checked that management   and staff are safe and well.

Opportunities are already emerging   from the darkness of the pandemic -   some of our companies are seeing their   competitors struggle while others are   even seeing demand for their products   and services increase. As always, the   strong will emerge stronger from the   ashes of the world economy.

Montanaro has always retained high   levels of cash precisely for times   like these. In past bear markets we   have grown the team. This time is no   exception and we have recruited a   healthcare analyst and made two further   additions to our back office team.  

MONTANARO ASSET MANAGEMENT LIMITED

17 June 2020

EXTRACTS FROM STRATEGIC REPORT

Principal and Emerging Risks and Uncertainties and Risk Mitigation

In accordance with the UK Corporate Governance Code, the Board has an established process for identifying, evaluating and managing the significant risks faced by the Company. The Board carefully considers the Company's principal and emerging risks and seeks to mitigate these risks through continued and regular review, policy setting, compliance with and enforcement of contractual obligations and active communication with the Manager, the Administrator and shareholders.

Most of the principal and emerging risks that could threaten the Company's objective, strategy, future returns and solvency are market related and comparable to those of other investment trusts investing primarily in quoted securities.

The Report of the Audit Committee in the full Annual Report and Accounts summarises the Company's internal control and risk management arrangements. By means of the procedures set out in that summary, and in accordance with the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting, issued by the Financial Reporting Council, the Board has established an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. It has also regularly reviewed the effectiveness of the Company's risk management and internal control systems for the period. During the year, the Audit Committee have carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity.

The principal risks and uncertainties faced by the Company, and the Board's mitigation approach are described below.

Notes 16 to 20 to the accounts below provide detailed explanations of the risks associated with the Company' financial instruments and their management.

Principal Risks	Mitigation
Investment and strategic risk: Inappropriate strategy, including country and sector allocation and stock selection could lead to poor returns for shareholders. No material change in overall risk in year	At each Board Meeting, the Manager discusses portfolio performance and strategy with the Directors and performance against the benchmark and the peer group is reviewed. The Manager also provides the Board with monthly reports. The portfolio is well diversified with typically 45-55 holdings, thereby reducing stock-specific risk. The Board formally reviews the performance of the Manager and its terms of appointment annually .
Gearing: One of the benefits of an investment trust is its ability to use borrowings, which can enhance returns to shareholders in a rising stock market. However, gearing exacerbates movements in the NAV both positively and negatively and will exaggerate declines in NAV when share prices of investee companies are falling. No change in overall risk in year	The Board is responsible for setting the gearing range within which the Manager may operate and has set a maximum limit on borrowing, net of cash, of 30% of shareholders' funds at the time of borrowing. The Company currently has borrowing facilities of €25 million that mature in September 2023. As at 31 March 2020, €11 million was drawn down from these facilities. The Board receives recommendations on gearing levels from the Manager, and monitors and discusses with the Manager the appropriate level of gearing at each Board Meeting.
Other financial risks: The Company invests principally in Continental European quoted smaller companies and its principal risks are therefore market related with short term risk arising from the volatility in the prices of the Company's investments and foreign exchange. Events such as terrorism, disease (such as a global pandemic), protectionism, inflation or deflation, changes in regulation and taxation, excessive stock market speculation, economic recessions, political instability and movements in interest rates and exchange rates could affect share prices in particular markets. As with all small company investment trusts, there is liquidity risk at times when the liquidity of the underlying portfolio is poor, such as when smaller companies are out of favour or during periods of adverse financial conditions. The portfolio is focused on investments in smaller European companies where the opportunities may be more attractive than in larger companies but where overall portfolio liquidity may be more challenging. This may result in difficulties in buying or selling  individual holdings in difficult markets. In addition, illiquid stock markets may impact the discount of the Company's share price to the NAV per share. Increased due to potential impacts from global pandemic	Portfolio diversification, both geographical and sectoral, can mitigate the consequences of such risky events and the Board reviews the portfolio with the Manager on a regular basis. It is not the Company's policy to hedge currency risk. The Board has also set investment restrictions and guidelines which are adhered to and reported on by the Manager. If required, it is also possible to raise the level of cash held, thereby reducing the risk of declining share prices and the effect of gearing on lower portfolio valuations. The portfolio's liquidity is not managed on the basis of timing short-term market fluctuations. One of the benefits of an investment trust is that the Manager is rarely forced to buy or sell individual holdings at inopportune times. The Manager constantly reviews the underlying liquidity of the portfolio, which is well diversified, and deals with a wide range of brokers to enhance its ability to execute and minimise liquidity risk. The liquidity of the portfolio is monitored by the Manager and reported to the Board, and market conditions and their impacts are considered. Further details on the financial risks arising from the Company's financial instruments, together with the policies for managing these risks are included in notes 16 to 20 to the accounts.
Discount volatility : As with all small company investment trusts, discounts can fluctuate significantly both in absolute terms and relative to their peer group. No material change in overall risk in year	The Board and Manager actively monitor the discount of share price to NAV per share and seek to influence this through liaising closely with the Company's Broker, share buybacks and effective marketing. The Board has stated its commitment to an active discount management policy, such that it will consider a buyback of shares where the discount of the share price to the NAV per share is greater than 10% for a sustained period of time and is significantly wider than the average for similar trusts. Any such transaction must be value enhancing for shareholders and the Board will take into consideration the effect of the buyback on the liquidity of the Company's shares. The Board encourages the Manager to market the Company to new investors to increase demand for the Company's shares, which may help to reduce the discount.
Regulatory: The Company carries on business as an investment trust and has been approved as such by HM Revenue & Customs subject to it continuing to meet eligibility conditions and ongoing requirements. As a result, it is not liable to corporation tax on capital gains. Breach of Section 1158 of the Corporation Tax Act 2010 could lead to the Company being subject to tax on chargeable gains. Breach of regulatory rules could also lead to suspension of the Company's Stock Exchange listing, financial penalties or a qualified audit report. No change in overall risk in year	The Administrator monitors the Company's compliance with Section 1158 of the Corporation Tax Act 2010 including revenue forecasts and the amount of proposed dividends to ensure the rules are not breached. The results are reported to the Board at each meeting. The Administrator monitors compliance with the Listing Rules of the UK Listing Authority and compliance with the principal rules is reviewed by the Directors at each Board Meeting. The Board and AIFM also monitor changes in legislation which may have an impact on the Company.
Operational : In common with most other investment trust companies, the Company has no employees. The Company is therefore reliant on the services provided by third parties such as the Manager, the Administrator and the Custodian (as a delegate of the Depositary). Disruption or failure of the Manager's or Administrator's systems, or those of other third-party service providers could lead to an inability to provide accurate reporting and monitoring of the Company's financial position or a breach of regulatory and legal regulations. Cyber security risks and their impact on data security are inherent in the operations undertaken by the company's third-party suppliers and risk disruption to business operations or financial loss. Increased risk due to the appointment of a new administrator, with effect from 1 April 2019 and due to impact of global pandemic on business as usual operations across all third party service providers and the Manager.	The Board and the Audit Committee receive regular reports on the operation of internal controls to mitigate against the risk of failure, including those at the Manager, the Administrator and the Custodian as explained in more detail within the Risk Management and Internal Control section of the full Annual Report and Accounts. These reports include controls over risks of cyber security. These have been tested and monitored throughout the year which is evidenced from their control reports regarding their internal controls which are reported on by their reporting accountants. Quarterly reports are also received from the Depositary which is responsible for the safekeeping of all custodial assets of the Company. Business continuity plans at all service providers have been implemented and services have continued with no disruption. The Manager has been in regular contact with the Board and has reported no matters of concern in continuity of operations.
Manager: Should the Manager not be in a position to continue to manage the Company, performance may be impacted Increased risk due to impact of global pandemic on business as usual operations across all third party service providers and the Manager.	Montanaro has one of the largest specialist teams in the UK focusing on quoted European smaller companies. Montanaro operates a team approach in the management of the investment portfolio which mitigates against the impact of the departure of any one member of the investment team. The Manager keeps the Board informed of developments within its business.

Viability Assessment and Statement

In accordance with the UK Corporate Governance Code, the Directors have assessed the prospects of the Company over the coming three years in order to assess the viability of the Company, the Board is required to assess its future prospects and has considered that a number of characteristics of its business model and strategy were relevant to this assessment:

· The Company's objective is to achieve capital growth.

· The Company's investment policy, which is subject to regular Board monitoring, means that the Company is invested principally in the securities of Continental European quoted smaller companies.

· The Company is a closed-end investment trust, whose shares are not subject to redemptions by shareholders.

· The Company's business model and strategy is not time limited.

Also relevant were a number of aspects of the Company's operational arrangements:

· The Company retains title to all assets held by the Custodian under the terms of a formal agreement with the Depositary and Custodian.

· The borrowing facilities, which remain available until September 2023, are also subject to formal agreements, including fi nancial covenants with which the Company complied in full during the year.

· Revenue and expenditure forecasts are reviewed by the Directors at each Board Meeting.

In considering the viability of the Company, the Directors carried out a robust assessment of the principal risks and uncertainties which could threaten the Company's objective and strategy, future performance, liquidity and solvency, including the impact of a significant fall in equity markets or adverse currency movements on the Company's investment portfolio. They also considered the impact of the COVID-19 pandemic on the quality and continuity of the Manager's operations and those of third-party service providers. These risks, their mitigations and the processes for monitoring them are set out above in Principal Risks and Uncertainties and Risk Mitigation, in the Report of the Audit Committee in the full Annual Report and Accounts and in the notes to the accounts below.

The Directors have also considered:

· The level of ongoing charges incurred by the Company which are modest and predictable and that these were covered approximately 1.6 times by investment income and total 1.2% of average net assets;

· Future revenue and expenditure projections and the potential impact of reduced dividend income in the short term as a result of market conditions;

· The Company's borrowing in the form of a fi xed rate loan facility of €10 million, which is due to mature in September 2023, noting that the Company has a large margin of safety over the covenants on this debt. This loan was covered 16 times by the Company's total assets at 31 March 2020. The Company also has a €15 million revolving credit facility which also matures on 13 September 2023;

· Its ability to meet liquidity requirements given the Company's investment portfolio consists principally of Continental European quoted smaller companies which can be realised if required. It is estimated that approximately 89% of the portfolio could be liquidated under normal conditions within seven trading days;

· The ability to undertake share buybacks if required;

· That the Company's objective and investment policy continue to be relevant to investors; and

· The Company has no employees, having only non-executive Directors and consequently does not have redundancy or other employment related liabilities (including pensions) or responsibilities.

These matters were assessed over a three year period to June 2023, and the Board will continue to assess viability over three year rolling periods, taking account of severe but plausible scenarios. In the absence of any adverse change to the regulatory environment and to the treatment of UK investment trusts a rolling three year period represents the horizon over which the Directors do not expect there to be any significant change to the Company's principal risks or their mitigation and they believe they can form a reasonable expectation of the Company's prospects.

Based on their assessment, and in the context of the Company's business model, strategy and operational arrangements set out above, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three year period to June 2023. For this reason, the Board also considers it appropriate to continue adopting the going concern basis in preparing the Report and Accounts.

LINK COMPANY MATTERS LIMITED

Company Secretary

65 Gresham Street

London EC2V 7NQ

17 June 2020

Related Party Transactions

The following are considered related parties: the Board of Directors. The Directors of the Company received fees for their services and dividends from their shareholdings in the Company. None of the Directors has a service contract with the Company.  For the year ended 31 March 2020, the Chairman received an annual fee of £32,000, the Chairman of the Audit Committee received an annual fee of £27,000 and the other Directors received an annual fee of £23,000. 

The related party transactions with the Directors are set out in the Directors' Remuneration Report contained within the Company's full Annual Report and Accounts for the year ended 31 March 2020. 

As at 31 March 2020 and 2019, the Directors' interests in the Company's Ordinary shares were as follows:

		2020	2019
		Ordinary Shares	Ordinary Shares
R M Curling	Beneficial	10,000	5,000
C A Roxburgh	Beneficial	6,182	3,314
M R Somerset Webb	Beneficial	4,095	4,095

Directors' Responsibilities Statement in Relation to the Financial Statements

The Directors are responsible for preparing the Annual Report and the fi nancial statements in accordance with applicable United Kingdom law and those International Financial Reporting Standards as adopted by the European Union. The Directors are also required to prepare a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they present a fair, balanced and understandable report and provide the information necessary for shareholders to assess the Company's performance, business model and strategy. In preparing the financial statements, the Directors are required to :

·   select suitable accounting policies in accordance with IAS 8: 'Accounting Policies, Changes in Accounting Estimates and Errors'   and then apply them consistently;

· present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

·     provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company's financial position and financial performance;

· state that the Company has complied with IFRS, subject to any material departures disclosed and explained in the financial statements;

· make judgements and estimates that are reasonable and prudent; and

· prepare the financial statements on a going concern basis unless it is inappropriate to assume that the Company will continue in business.

The Directors are responsible for keeping adequate 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 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.

Responsibility Statements under the Disclosure Guidance and Transparency Rules

Each of the Directors con fi rms that to the best of his or her knowledge:

· the fi nancial statements, prepared in accordance with IFRS as adopted by the European Union, give a true and fair view of the assets, liabilities, fi nancial position and pro fi t or loss of the Company;

· the Strategic Report (comprising the Chairman's Statement, Manager's Report, Twenty Largest Holdings, Analysis of Investment Portfolio by Sector and Business Model and Strategy) and the Report of the Directors include 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;

· taken as a whole, the Annual Report and fi nancial statements are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy;

· the fi nancial statements include details on related party transactions; and

· having assessed the principal risks and other matters discussed in connection with the Viability Statement, it is appropriate to adopt the going concern basis in preparing the fi nancial statements.

The Annual Report and Accounts were approved by the Board and the above responsibility statement was signed on its behalf by:

R M CURLING
Director

17 June 2020

Statement of Comprehensive Income (audited)

for the year ended 31 March 2020

	Notes	2020 Revenue £'000	2020 Capital £'000	2020 Total £'000	2019 Revenue £'000	2019 Capital £'000	2019 Total £'000
Capital (losses)/gains on investments
(Losses)/gains on investments held at fair value	9	-	(8,126)	(8,126)	-	19,215	19,215
Exchange (losses)/gains		-	(211)	(211)	-	67	67
Revenue
Investment income	2	3,497	-	3,497	3,082	-	3,082
Total income		3,497	(8,337)	(4,840)	3,082	19,282	22,364
Expenditure
Management expenses	3	(644)	(1,047)	(1,611)	(481)	(892)	(1,373)
Other expenses	4	(595)	-	(595)	(676)	-	(676)
Total expenditure		(1,159)	(1,047)	(2,206)	(1,157)	(892)	(2,049)
Return before finance costs and taxation		2.338	(9,384)	(7,046)	1,925	18,390	20,315
Finance costs	5	(48)	(85)	(133)	(105)	(196)	(301)
Return before taxation		2,290	(9,469)	(7,179)	1,820	18,194	20,014
Taxation	6	(291)	-	(291)	(227)	-	(227)
Return after taxation		1,999	(9,469)	(7,470)	1,593	18,194	19,787
Return per share	8	11.9p	(56.6p)	(44.7p)	9.5p	108.7p	118.2p

The total column of this statement represents the Company's Income Statement and Statement of   Comprehensive Income,   prepared in accordance with IFRS.

The supplementary revenue return and capital return columns are both prepared under guidanc e published by the Association of   Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the year.

The accompanying notes are an integral part of the financial statements.

Balance Sheet

a s at 31 March 2020

		31 March 2020		31 March 2019
	Notes	£'000	£'000	£'000	£'000
Non-current assets
Investment held at fair value through profit and loss	9		169,018		169,828
Current assets
Trade and other receivables	10	615		646
Cash and cash equivalents	10	405		7,443
		1,020		8,089
Total assets		170,038		177,917
Current liabilities
Trade and other payables	11	(222)		(204)
Revolving credit facility	11	(884)		-
		(1,106)		(204)
Non-current liabilities
Interest-bearing bank loan	12	(8,809)		(8,572)
Total liabilities		(9,915)		(8,776)
Net assets			160,123		169,141
Capital and reserves
Called-up share capital	13		8,724		8,724
Share premium account			5,283		5,283
Capital redemption reserve			2,212		2,212
Capital reserve			139,641		149,110
Revenue reserve			4,263		3,812
Shareholders' funds			160,123		169,141
Net asset value per share			956.9p		1,010.8p

The financial statements above and below were approved and authorised for issue by the Board of Directors on 17 June 2020 and signed on its behalf by:

R Curling

Director

Company Registered Number: SC074677

Statement of Changes in Equity

for the year ended 31 March 2020

Year to 31 March 2020	Notes	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total £'000
As at 1 April 2019		8,724	5,283	2,212	149,110	3,812	169,141
Return after taxation		-	-	-	(9,469)	1,999	(7,470)
Dividends paid	7	-	-	-	-	(1,548)	(1,548)
As at 31 March 2020		8,724	5,283	2,212	139,641	4,263	160,123

Year to 31 March 2019	Notes	Share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserve £'000	Revenue reserve £'000	Total £'000
As at 1 April 2018		8,724	5,283	2,212	130,916	3, 641	150,776
Return after taxation		-	-	-	( 18,194 )	1, 593	19,787
Dividends paid	7	-	-	-	-	(1, 422 )	(1, 422 )
As at 31 March 2019		8,724	5,283	2,212	149,110	3,812	169,141

The accompanying notes are an integral part of the financial statements.

Cash Flow Statement

for the year ended 31 March 2020

	Notes	31 March 2020 £'000	31 March 2019 £'000
Cash fl ows from operating activities
(Loss)/pro fi t before fi nance costs and taxation		(7,046)	20,315
Investment losses/(gains)		8,126	(19,215)
Exchange losses/(gains)		211	(67)
Withholding tax		(291)	(204)
Investment income		(3,497)	(3,082)
Dividends received		3,502	3,015
Decrease/(increase) in receivables		99	(23)
Increase/(decrease) in payables		15	23
Purchases of investments		(33,739)	(35,690)
Sales of investments		26,361	36,805
Net cash (outflow)/in fl ow from operating activities		(6,259)	1,877
Cash fl ows from financing activities
Drawdown/(repayment) of loans		844	(13,393)
Dividends paid	7	(1, 548 )	(1,422)
Interest paid		(131)	(351)
Net cash out fl ow from fi nancing activities		(835)	(15,166)
Net (decrease) in cash and cash equivalents		(7,094)	(13,289)
Exchange gains		56	158
(Decrease)/increase in cash and cash equivalents		(7,038)	(13,131)
Cash and cash equivalents at beginning of year		7,443	20,574
Cash and cash equivalents at end of year	10	405	7,443

The accompanying notes are an integral part of the financial statements.

  Notes:

1. Accounting Policies

A summary of the principal accounting policies is set out below.

BASIS OF ACCOUNTING

The financial statements of the Company have been prepared in accordance with IFRS as adopted by the European Union which comprise standards and interpretations approved by the International Accounting Standards Board ('IASB'), and as applied in accordance with the provisions of the Companies Act 2006. The annual financial statements have been prepared in accordance with the AIC SORP for the financial statements of investment trust and venture capital trusts, except to any extent where it is not consistent with the requirements of IFRS.

The functional and presentational currency of the Company is Pounds Sterling and has been determined on the basis of the currency of the Company's share capital and the currency in which dividends and expenses are paid.

The valuation of financial assets held by the Company at the year end have been derived from active, liquid markets. Risks relating to the valuations are disclosed in note 16.

The financial statements have been prepared on a going concern basis that approval as an investment trust company will continue to be met.

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has the resources to continue in business for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved. The Directors noted that the Company holds a portfolio of highly liquid listed investments and has undrawn banking facilities. The Company is a closed end fund, where assets are not required to be liquidated to meet redemptions. Whilst the economic impact from the pandemic is uncertain, and the Directors believe it is possible that the Company could experience reductions in income and/or market value that this should not be to a level which would threaten the Company's ability to continue as a going concern. The Directors, the Manager and other service providers have put in place contingency plans to minimise disruption. Furthermore, the Directors are not aware of any material uncertainties that may cast doubt upon the Company's ability to continue as a going concern. Therefore, the financial statements have been prepared on a going concern basis. Further detail is included in the Report of the Directors in the full Annual Report and Accounts. In addition to the Going Concern assessment the Directors have assessed the longer term viability of the company as set out in the viability assessment and statement above.

ACCOUNTING DEVELOPMENTS

In the current year, the Company has applied a number of amendments to IFRS, issued by the IASB. These include annual improvements to IFRS, changes in standards, legislative and regulatory amendments, changes in disclosure and presentation requirements. The Company has also applied, with associated amendments, for the first time the following standards:

IFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases by lessors and lessees.

The adoption of the changes to accounting standards has had no material impact on the current or prior years' financial statements.

Standards issued but not yet effective

There are no standards or amendments to standards not yet effective that are relevant to the Company and should be disclosed.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts in the Balance Sheet, the Income Statement and the disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The areas requiring the most significant judgement and estimation in the preparation of the financial statements are: recognising and classifying unusual or special dividends received as either revenue or capital in nature; and setting the levels of dividends paid and proposed in satisfaction of both the Company's long-term objective and its obligations to adhere to investment trust status rules under Section 1158 of the Corporation Tax Act 2010.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period if the revision affects both current and future periods. There are significant judgements or estimates in these financial statements.

SEGMENTAL REPORTING

The Board is of the view that the Company is engaged in a single segment of business, of investing in European quoted smaller companies, and that therefore the Company has only a single operating segment.

PRESENTATION OF STATEMENT OF COMPREHENSIVE INCOME

In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income. The net revenue return is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 1158 of the Corporation Tax Act 2010.

INCOME

Dividends are recognised as income on the date that the related investments are marked ex-dividend.

Dividends receivable on equity shares where no ex-dividend date is quoted are recognised when the Company's right to receive payment is established.

Special dividends are taken to the revenue or capital account depending on their nature. In deciding whether a dividend should be regarded as a capital or revenue receipt, the Board reviews all relevant information as to the reasons for the sources of the dividend on a case-by-case basis.

Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend foregone is recognised as income.

All other income is accounted for on a time apportioned basis.

EXPENSES AND FINANCE COSTS

All expenses and finance costs are accounted for on an accruals basis and are charged against revenue, except where incurred in connection with the maintenance or enhancement of the value of the Company's assets and taking account of the expected long term returns as follows:

-  finance costs payable are allocated 35% to revenue and 65% to capital.

-  management expenses payable are allocated 35% to revenue and 65% to capital.

TAXATION

The tax expense represents the sum of the tax currently payable and movements in deferred tax. Tax payable is based on the taxable profit for the year and withholding tax payable. Taxable profit differs from profit before tax as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have

been enacted or substantively enacted by the balance sheet date.

In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Statement of Comprehensive Income is the 'marginal basis'. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column of the Statement of Comprehensive Income, then no tax relief is transferred to the capital return column.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary

differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Investment trusts which have approval under Section 1158 of the Corporation Tax Act 2010 are not liable to taxation on capital gains.

INVESTMENTS

The Company's business is investing in financial assets with a view to profiting from their total return in the form of income and   capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value basis in accordance with   the documented investment strategy and information is provided internally on that basis to the Company's Board of Directors and   other key management personnel.

The investments held by the Company are designated by the Company as 'at fair value through profit or loss'.

All gains and losses are allocated to the capital return within the Statement of Comprehensive Income as 'Gains or losses on   investments held at fair value through profit or loss'. Also included within this heading are transaction costs in relation to the   purchase or sale of investments. When a sale or purchase is made under a contract, the terms of which require delivery within the   timeframe of the relevant market, the investments concerned are recognised or derecognised on the trade date.  

All investments are designated upon initial recognition as held at fair value through profit or loss, and are measured at subsequent   reporting dates at fair value, which is the bid price or the last traded price depending on the convention of the exchange on which   the investment is listed. The Company derecognises a financial asset only when the contractual rights to the cash flows from the   asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another   entity. On derecognition of a financial asset, the difference between the asset's carrying amount and the sum of consideration   received and receivable and the cumulative gain or loss that had been accumulated is recognised in profit or loss.

All investments for which a fair value is measured or disclosed in the financial statements are categorised   within the fair value   hierarchy levels set out in note 15 .

CASH AND CASH EQUIVALENTS

Cash comprises bank balances and cash held by the Company. Cash equivalents are short-term, highly liquid investments that   are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

LOANS

The loans are valued at amortised cost. Costs in relation to arranging the debt finance have been capitalised and are amortised   over the term of the finance. Hence, amortised cost is the par value less the amortised cost of issue .

The Euro loan is shown at amortised cost with the exchange difference on the principal amounts to be repaid reflected. Any gains   or losses arising from changes in exchange rate between Euro and Sterling is included in the capital reserves and shown in the   capital column of the Statement of Comprehensive Income.

RESERVES

Share Premium Account

The following are included in this reserve:

· premium on the issue of shares.

· surplus arising on the sale of Ordinary Shares from treasury.

· costs associated with the issue of equity.

Capital Redemption Reserve

The nominal value of Ordinary Shares bought back for cancellation is added to this reserve. This reserve is non-distributable.

Capital Reserve

The following are included in this reserve:

· gains and losses on the realisation of investments.

· increases and decreases in the valuation of investments held at the year end.

· exchange differences of a capital nature.

· special dividends of a capital nature.

· expenses and finance costs, together with the related taxation effect, charged in accordance with the above policies.

· cost of purchasing Ordinary Shares to be held in treasury or cancelled.

·   proceeds from the issue of Ordinary Shares held in treasury equivalent to the original cost of the repurchase.

In addition, the Company's Articles of Association permit it to distribute from the Capital Reserve any surplus arising from the   realisation of its investments.

Revenue Reserve

The net profit arising in the revenue column of the Statement of Comprehensive Income is added to this reserve. Dividends paid   during the year may be deducted from this reserve.

FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised on the Balance Sheet of the Company when the Company becomes a party   to the contractual provisions of the instrument. The Company shall offset financial assets and financial liabilities if it has a legally   enforceable right to set off the recognised amounts and intends to settle on a net basis. As at 31 March 2020, no financial assets   or financial liabilities had been offset (31 March 2019: nil).

FOREIGN CURRENCIES

Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange ruling at the balance   sheet date. Non-monetary items expressed in foreign currencies held at fair value are translated into sterling at rates of exchange   ruling at the date the fair value is measured. Transactions in foreign currencies are converted to sterling at the rate ruling at the   date of the transaction. Exchange gains and losses are taken to the Statement of Comprehensive Income as a capital or revenue

item depending on the nature of the underlying item.  

Exchange gains and losses on investments are included within 'Gains on investments held at fair value' and are taken to the   Capital Reserve. Exchange differences on other financial instruments are included in the Statement of Comprehensive Income as   'Exchange gains'.

Rates of exchange (per Pound Sterling)	31 March 2020	31 March 2019	Change %
Danish Krone	8.44	8.66	(2.5)
Euro	1.13	1.16	(2.6)
Norwegian Krone	13.02	11.22	16.0
Swedish Krone	12.28	12.09	1.6
Swiss Franc	1.20	1.30	(7.7)

USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The presentation of the financial statements in accordance with accounting standards requires the Board to make judgements,   estimates and assumptions that affect the accounting policies and reported amounts of assets, liabilities, income and expenses.   Estimates and judgements are continually evaluated and are based on perceived risks, historical experience, expectations of   plausible future events and other factors. Actual results may differ from these estimates.

The areas requiring the most significant judgement in the preparation of the financial statements are: recognising and classifying   unusual or special dividends received as either revenue or capital in nature.

Dividends received which appear to be unusual in size or circumstance are assessed on a case-by-case basis, based on   interpretation of the investee companies' relevant statements, to determine their allocation in accordance with the SORP to either   the revenue account or capital reserves. Dividends which have clearly arisen out of the investee company's reconstruction or   reorganisation are usually considered to be capital in nature and allocated to capital reserves. Investee company dividends which   appear to be paid in excess of current year profits will still be considered as revenue in nature unless evidence suggests otherwise.

2. Income

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Investment income
Overseas dividend income	3,472	3,082
Other income	25	-
Total	3,497	3,082

3. Management fee

Year to 31 March 2020			Year to 31 March 2019
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Investment Management	546	1,015	1,561	463	860	1,323
AIFM fee	18	32	50	18	32	50
	564	1,047	1,611	481	892	1,373

Details of the management fee arrangements during the year are contained within the Report of the Directors in the full Annual Report and Accounts and   details of fees owed to the Manager at the balance sheet date are included in note 11.

4 . Other Expenses

Year to 31 March 2020			Year to 31 March 2019
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Directors' fee	85	-	85	111	-	111
Auditor's remuneration for:
- Statutory audit1	30	-	30	22	-	22
Secretarial and administration fees	149	-	149	133	-	133
Legal, professional and advisory fees	23	-	23	17	-	17
Custody and depositary fees	74	-	74	101	-	101
Bank charges - negative interest	34	-	34	103	-	103
Credit facility commitment fee	59	-	59	33	-	33
Other	141	-	141	156	-	156
	595	-	595	676	-	676

¹ Auditors remuneration paid excludes VAT.

5. Finance Costs

Year to 31 March 2020			Year to 31 March 2019
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Interest payable on bank borrowings	48	85	133	105	196	301

6. Taxation

Year to 31 March 2020			Year to 31 March 2019
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Overseas Tax	291	-	291	227	-	227

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax charge for the year is lower than the standard rate of corporation tax in the UK for an investment company. The differences are explained below:

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
(Loss)/profit on ordinary activities before taxation	(7,179)	20,014
Corporation tax at standard rate of 19% (2019: 19%)	(1,364)	3,803
Effects of:
Non-taxable losses/(gains) on investments	1,544	(3,651)
Movement in unutilised expenses	419	445
Non-taxable overseas income	(604)	(585)
Exchange (gains)/losses	5	(13)
Overseas tax	297	242
Overseas tax expensed	(6)	(10)
Adjustment to provision for prior years	-	(4)
Total	291	227

As at 31 March 2020, the Company had unutilised management expenses for taxation purposes of £(29,220,000) (2019:   £27,015,000). A deferred tax asset of £5,552,000 (2019: £5,133,000) has not been recognised on the unutilised expenses as it is   unlikely that there will be suitable taxable profits from which the future reversal of the deferred tax could be deducted.

7. Dividends

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Final dividend for the year ended 31 March 2018 of 6.75p per share	-	1,129
Interim dividend for the year ended 31 March 2019 of 1.75p per share	-	293
Final dividend for the year ended 31 March 2019 of 7.25p per share	1,213	-
Interim dividend for the year ended 31 March 2020 of 2.00p per share	335	-
	1,548	1,422
Amount relating to the year but not paid at the year end:
Final dividend for the year ended 31 March 2019 of 7.25p per share	-	1,213
Final dividend for the year ended 31 March 2020 of 7.25p per share	1,213	-
	1,213	1,213

The Directors have proposed a final dividend in respect of the year ended 31 March 2020 of 7.25p per share, payable on   15 September 2020 to all shareholders on the register on 14 August 2020. The final dividend is subject to approval by   shareholders at the Annual General Meeting.

The attributable revenue and the dividends paid and proposed for the purposes of the income retention test for section 1159 of the   Income and Corporation Tax Act 2010, are set out below:

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Revenue attributable to equity shareholders	1,999	1,593
Interim dividend for the year ended 31 March 2019 of 1.75p per share	-	(293)
Final dividend for the year ended 31 March 2019 of 7.25p per share	-	(1,213)
Interim dividend for the year ended 31 March 2020 of 2p per share	(335)	-
Proposed final dividend for the year ended 31 March 2020 of 7.25p per share	(1,213)	-
Revenue reserve transfer	451	87

8. Return per Share

Year to 31 March 2020			Year to 31 March 2019
	Revenue	Capital	Total	Revenue	Capital	Total
Basic	11.9p	(56.6)p	(44.7)p	9.5p	108.7p	118.2p

Basic total return per Ordinary Share is based on the total comprehensive loss for the financial year of £7,470,000 (2019: gain   £19,787,000) and on 16,733,260 (2019: 16,733,260) Ordinary Shares, being the weighted average number of Ordinary Shares in   issue during the year, excluding those shares bought back and held in treasury.

Basic revenue return per Ordinary Share is based on the net revenue return on ordinary activities after taxation of £1,999,000   (2019: £1,593,000), and on 16,733,260 (2019: 16,733,260) Ordinary Shares, being the weighted average number of Ordinary   Shares in issue during the year, excluding those shares bought back and held in treasury.

Basic capital return per Ordinary Share is based on the net capital loss for the financial year of £9,469,000 (2019: net capital return   £18,194,000), and on 16,733,260 (2019: 16,733,260) Ordinary Shares, being the weighted average number of Ordinary Shares in   issue during the year, excluding those shares bought back and held in treasury.

9. Investments at Fair Value Through Profit and loss

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Opening cost	107,172	93,523
Holding gains	62,656	58,205
Opening fair value	169,828	151,728
Purchases at cost	33,739	35,690
Sales - proceeds	(26,423)	(36,805)
- gains on sales	7,224	14,764
Holding (losses)/gains	(15,350)	4,451
Closing fair value	169,018	169,828
Closing cost	121,712	107,172
Holding gains	47,306	62,656
Closing valuation	169,018	169,828

Net gains on the realisation of investments during the year represents the difference between the net proceeds of sale and the   book cost of investment sold.

Movement in fair value represents the decrease in the difference between book cost of investments held and their market value at   31 March 2020 compared with the difference between the book cost of investments held and their market value at 31 March 2019.

TRANSACTION COSTS

The Company incurred transaction costs on the purchase of investments of £23,000 and sale of investments of £13,000 (2019:   £20,000 on purchases and £17,000 on sales).

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Gains on sales	7,224	14,764
(Decrease)/increase in holding gains	(15,350)	4,451
( L osses )/gains on investments held at fair value	(8,126)	19,125

10. Current Assets

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Due from brokers	62	-
Prepayments and accrued income	81	97
Overseas tax recoverable	472	549
	615	646

The carrying value of the balances above approximates to fair value. There are no amounts which are past due at the year end   (2019: £nil).

CASH AND CASH EQUIVALENTS

These comprise bank balances and cash held by the Company. The carrying amount of these assets approximates to their fair value.

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Cash at bank and on hand	405	7,443

11. Current Liabilities

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Trade and other payables
Investment management and AIFM fee	115	116
Other creditors	107	88
	222	204

The Company has a   €15 million five year secured revolving credit facility with ING which will mature on 13 September 2023.   Drawdowns from the facility are charged at margin over the relevant EUROBOR rate. As at 31 March 2020,   €1 million (£884,000)   of the facility was drawn (2019: €/£nil), at a rate of 1.2%, with   €14 million available to be drawn (31 March 2019:   £nil).

The facility is shown at amortised costs and revalued for exchange rate movements. Any gain or loss arising from changes in   exchange rates is included in the capital reserve and shown in the capital column of the Statement of Comprehensive Income.   Interest costs are charged to capital and revenue in accordance with the Company's accounting policies.

The carrying value of the balances above approximates to fair value.

12. Interest-Bearing Bank Loans

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Opening balance	8,572	21,903
Loan repaid during the year	-	(13,393)
Amortisation of set-up c osts	10	45
Non-cash foreign currency movements	227	17
Closing balance	8,809	8,572

The Company has a   €10 million five year secured loan with ING Bank N.V. at a fixed rate of 1.33% per annum. This loan will   mature on 13 September 2023.

The Company also has a   €15 million five year secured revolving credit facility with ING which will also mature on 13 September   2023. As at 31 March 2020,   €1 million of the facility was drawn, at a rate of 1.2%, with   €14 million available to be drawn (31 March   2019: £nil).

Under the bank covenants relating to the loans, the Company is to ensure that at all times the total borrowings of the Company do   not exceed 40% of the Adjusted Net Asset Value (as defined in the loan agreements) and that the Adjusted Net Asset Value does   not fall below £45 million (2019: £45 million). The Company met all covenant conditions during the year. The carrying value of the balances above approximates to fair value.

The carrying value of the balances above approximates to fair value.

13. Share Capital

Listed		Held in treasury                      In issue
	Number	£'000	Number	£'000	Number	£'000
Allotted, issued and fully paid:
Ordinary shares of 50p each
Balance at 1 April 2019	17,448,260	8,724	(715,000)	(357)	(16,733,260)	8,367
Balance at 31 March 2020	17,448,260	8,724	(715,000)	(357)	(16,733,260)	8,367

During the year, the Company did not sell any Ordinary Shares (2019: nil) and there were no share issues or share buybacks (2019: nil).

CAPITAL MANAGEMENT

The Company's capital is represented by the issued Share Capital, Share Premium Account, Capital Redemption Reserve, Capital Reserve, Revenue Reserve and external debt financing. Details of the movement through each reserve are shown in the Statement of Changes in Equity. The Company is not subject to any externally imposed capital requirements other than those associated with the loan finance.

The Company's capital is managed in accordance with its investment policy, in pursuit of its investment objective, both of which are detailed in the Business Model and Strategy. The Company's capital structure is also explained in the Report of the Directors in the full Annual Report and Accounts.

14. Net Asset Value per Ordinary Share

Net Asset value per share                Net asset value
	2020 P	2019 P	2020 £'000	2019 £'000
Net asset value per Ordinary Share	956.9	1,010.8	160,123	169,141

The net asset value per share is based on net assets at the year end and on 16,733,260 (2019: 16,733,260) Ordinary Shares,   being the number of Ordinary Shares in issue at the year end, excluding those shares bought back and held in treasury.

15. Financial Instruments

The Company's financial instruments comprise its investment portfolio, cash balances, bank loans, and debtors and creditors that arise directly from its operations. As an investment trust the Company holds a portfolio of financial assets in pursuit of its investment objective. The Company makes use of borrowings, as detailed in note 12 and the Chairman's Statement, to achieve improved performance in rising markets.

The Company's principal risks are described in the Business Model and Strategy above.

Financial risks arising from the Company's financial instruments are:

(i)  market price risk, being the risk that the value of investment holdings will fluctuate as a result of changes in market prices caused by factors other than interest rate or currency rate movements;

(ii)  interest rate risk, being the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates;

(iii)  foreign currency risk, being the risk that the value of investment holdings, investment purchases, investment sales, bank loans and accrued income will fluctuate because of movements in currency rates;

(iv)  credit risk, being the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company; and

(v)  liquidity risk, being the risk that the Company may not be able to liquidate quickly its investments to meet obligations associated with its financial liabilities.

FAIR VALUE HIERARCHY

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant assets as follows:

· Level 1 - valued using quoted prices unadjusted in active markets for identical assets or liabilities

· Level 2 - valued by reference to valuation techniques using observable inputs for the asset or liability other than quoted prices included within Level 1.

· Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data for the asset or liability.

The tables below set out fair value measurements of financial instruments as at the year end, by the level in the fair value hierarchy into which the fair value measurement is categorised.

The Company held the following categories of financial instruments as at 31 March 2020:

	Level 1 £'000	Level 2 £'000	Level 3 £'000	2020 Total £'000	Level 1 £'000	Level 2 £'000	Level 3 £'000	2019 Total £'000
Financial Instruments
Investments	169,018	-	-	169,018	169,828	-	-	169,828
Loan	-	(8,809)	-	(8,809)	-	(8,596)	-	(8,596)

There were no transfers between levels in the fair value hierarchy in the year ended 31 March 2020 (2019: none).

The investments held are valued at fair value through profit or loss. The loans are recognised by their carrying value being the approximate fair value.

16. Market Price Risk

Market price risk (i.e. changes in market prices other than those arising from currency risk or interest rate risk may affect the value of investments.

The Board manages the risks inherent in the investment portfolio by ensuring full and timely reporting o relevant information from the Manager. Investment performance and exposure are reviewed at each Board meeting.

The maximum exposure to market price risk is the fair value of investments of £169,018,000 (2019 £169,828,000).

If the investment portfolio valuation fell by 10% from the amount detailed in the financial statements as at 31 March 2020, it would have the effect, with all other variables held constant, of reducing the net capital return before taxation by £16,900,000 (2019: £16,980,000). An increase of 10% in the investment portfolio valuation would have an equal and opposite effect on the net capital return before taxation. The analysis is based on closing balances only and is not representative of the year as a whole.

17. Interest Rate Risk

FIXED RATE

The Company has a €10 million fully drawn fixed rate term loan with ING Bank N.V., with a Sterling equivalent of £8.9 million as at 31 March 2020, at a rate of interest of 1.33% per annum. An interest rate sensitivity analysis has not been performed as the Company has borrowed at a fixed rate of interest.

FLOATING RATE

When the Company retains cash balances, the cash is primarily held in accounts at the custodian. Interest received or paid on cash balances and bank overdrafts is at market rates and is monitored and reviewed by the Investment Manager and the Board. As at 31 March 2020, the cash position of the Company was £0.4 million (2019: £7.4 million).

If interest rates had increased by 1.0%, the impact on the profit or loss and the net asset value would have been positive £4,000 (2019: positive £74,000). If interest rates had decreased by 1.0%, the impact on the profit or loss and the net asset value would have been negative £4,000 (2019: negative £74,000). The calculations are based on the floating rate balances as at the respective balance sheet dates.

18. Foreign Currency Risk

The Company invests in overseas securities and holds foreign currency cash balances and foreign currency borrowings which give rise to currency risks. It is not the Company's policy to hedge this risk.

2020	Investments £'000	Trade and other receivables £'000	Cash £'000	Trade and other payables £'000	Loans* £'000	Net exposure £'000
Danish Krone	6,111	96	-	-	-	6,207
Euro	93,820	144	372	-	(9,693)	83,643
Norwegian Krone	13,276	45	-	-	-	13,321
Swedish Krona	37,391	62	-	-	-	37,453
Swiss Franc	18,420	187	-	-	-	18,607
Total	169,018	534	372	-	(9,693)	160,231

2019	Investments £'000	Trade and other receivables £'000	Cash £'000	Trade and other payables £'000	Loans* £'000	Net exposure £'000
Danish Krone	8,709	120	-	-	-	8,829
Euro	99,769	209	7,721	(6)	(8,617)	98,626
Norwegian Krone	9,579	32	-	-	-	9,611
Swedish Krona	37,151	15	73	-	-	37,239
Swiss Franc	14,620	240	-	-	-	14,860
Total	169,828	616	7,344	(6)	(8,617)	169,165

*Par value excluding amortised Costs

If the value of Sterling had weakened by 5% (2019: 5%) against each of the currencies in the portfolio, the impact on the profit   or loss and the net asset value would have been positive £8,496,000 (2019: positive   £8,938,000). If the value of Sterling had   strengthened by 5% (2019: 5%) against each of the currencies in the   portfolio, the impact on the profit or loss and the net asset   value would have been negative £8,012,000 (2019: negative £8,087,000). These calculations are based on the foreign currency   exposure balances as at the respective balance sheet dates.

19. Credit Risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. The Company has in place a monitoring procedure in respect of counterparty risk which is reviewed on an ongoing basis. The carrying amounts of financial assets best represent the maximum credit risk exposure at the balance sheet date.

The Company had the following categories of financial assets exposed to credit risk as at 31 March 2020:

	Year to 31 March 2020 £'000	Year to 31 March 2019 £'000
Cash and cash equivalents	405	7,443
Prepayments, accrued income and overseas tax recoverable	650	646
	1,055	8,089

Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered to be small due to the short settlement period involved and the financial stability and credit quality of the brokers used, which are monitored on an ongoing basis by the Manager. The Manager also monitors the quality of service provided by the brokers used to further mitigate this risk.

There were no significant concentrations of credit risk to counterparties at 31 March 2020 or 31 March 2019. No individual investment exceeded 4.3% of the investment portfolio at 31 March 2020 (2019: 3.6%).

A significant majority of the assets of the Company, including those that are traded on a recognised exchange, are held in segregated accounts on behalf of the Company by The Bank of New York Mellon SA/NV (London Branch), the Company's custodian. Bankruptcy or insolvency of this or other custodians may cause the Company's rights with respect to securities held by the custodians to be delayed. The Board monitors the Company's risk by reviewing the custodian's internal control reports.

20. Liquidity Risk

The Company does not hold unlisted securities (2019: £nil). The Company's listed securities are considered to be readily realisable.

However, as with all smaller company investment trusts, there are times when the liquidity of the underlying portfolio is poor, such as when smaller companies are out of favour or during periods of adverse economic conditions. The Manager focuses on smaller companies where the opportunities may be more attractive, but this can decrease overall underlying liquidity. This may result in the Manager being unable to buy or sell individual holdings within the portfolio. The Manager constantly reviews the underlying liquidity of the portfolio and deals with a wide range of brokers to enhance its ability to execute transaction and minimise liquidity risk. The Company's overall exposure to liquidity risks is monitored on a regular basis by the Board.

Liquidity risk is mitigated as the Company maintains sufficient cash to pay accounts payable and accrued expenses. As at 31 March 2020, the cash position of the Company was £0.4 million (2019: £7.4 million) and the Company has undrawn bank facilities of £12.4 million (2019: £12.9 million).

CONTRACTUAL MATURITY ANALYSIS FOR FINANCIAL LIABILITIES

As at 31 March 2020	Within One month £'000	Between One and three months £'000	Between  three and twelve months £'000	Between one and five years £'000	Total £'000
Current liabilities:
Other creditors	129	52	41	-	222
Revolving credit facility	884	-	-	-	884
Loan and loan interest	-	-	120	9,142	9,262
Total liabilities	1,013	52	161	9,142	10,368

As at 31 March 2019	Within One month £'000	Between One and three months £'000	Between  three and twelve months £'000	Between one and five years £'000	Total £'000
Current liabilities:
Other creditors	122	63	19	-	204
Loan and loan interest	-	-	116	8,947	9,063
Total liabilities	122	63	135	8,947	9,267

21. Related Parties and transactions with the Manger

The following are considered related parties: the Board of Directors. The Directors of the Company received fees for their services   and dividends from their shareholdings in the Company. Further details are provided above and in the Directors' Remuneration Report in the full Annual Report and Accounts.

Transactions between the Company and the Manager are detailed in note 3 on management fees and note 11 on fees owed to the   Manager at the balance sheet date. The existence of an independent Board of Directors demonstrates that the Company is free to   pursue its own financial and operating policies and therefore, under the AIC SORP, the Manager is not considered to be a related party.

22. Securities financing transactions ("SFT")

The Company has not, in the year to 31 March 2020 (2019: same), participated in any: repurchase transactions; securities lending   or borrowing; buy-sell back transactions; margin lending transactions; or total return swap transactions (collectively called SFT).   As such, it has no disclosure to make in satisfaction of the EU regulations on transparency of SFT, issued in November 2015.

23. Post Balance Sheet Events

Subsequent to the year end, the Company's NAV recovered from the sharp decline experienced in the final quarter of the Financial   Year as the global Covid-19 crisis unfolded. Between   31 March 2020 and 15 June 2020 (being the latest practicable date ), the NAV rose from 956.9p to 1,216.6p ,   an increase of 27.1%. As a result, the NAV   was 10.7% higher than 12 months earlier.

Advisers

Investment Manager and Alternative Investment Fund Manager ('AIFM') MONTANARO ASSET MANAGEMENT LIMITED 53 Threadneedle Street London EC2R 8AR Tel: [phone] Fax: [phone] [e-mail] www.montanaro.co.uk	Stockbroker CENKOS SECURITIES PLC 6-8 Tokenhouse Yard London EC2R 7AS
Administrator LINK ALTERNATIVE FUND ADMINISTRATORS LIMITED Beaufort House 51 New North Road Exeter EX4 4EP	Depositary THE BANK OF NEW YORK MELLON (INTERNATIONAL) LIMITED One Canada Square London E14 5AL
Company Secretary LINK COMPANY MATTERS LIMITED 65 Gresham Street London EC2V 7NQ Tel: [phone] Contact: [e-mail]	Custodian BANK OF NEW YORK MELLON SA/NV One Canada Square London E14 5AL
Registered Office 16 Charlotte Square Edinburgh EH2 4DF	Bankers ING BANK N.V., LONDON BRANCH 60 London Wall London EC2M 5TQ
Registrar EQUINITI LIMITED Aspect House Spencer Road Lancing West Sussex BN99 6DA Registrar's Shareholder Helpline Tel: [phone]* Registrar's Broker Helpline Tel: [phone] * Lines are open 9.00am to 5.00pm, Monday to Friday.	Auditor ERNST & YOUNG LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Solicitor DICKSON MINTO W.S. 16 Charlotte Square Edinburgh EH2 4DF

The audited Annual report and Accounts for the year ended 31 March 2020 will shortly be available on the Company's website https://montanaro.co.uk/trust/montanaro-european-smaller-companies-trust/ . It will also be submitted to the National Storage Mechanism ("NSM") shortly and will be available for inspection there, situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism .

A copy of the Annual Report and Accounts, which includes the Notice of Annual General Meeting, will be posted to shareholders shortly.

For further information, please contact:

Montanaro Asset Management Limited

Tel: [phone]

 

END

 

 

FR KKOBDOBKDKAD