Interim Management Statement

RNS Number : 8913K

Montanaro European Smaller C.TstPLC

22 July 2011

 



Montanaro European Smaller Companies Trust plc

Interim Management Statement

For the Period from 1 April 2011 to 22 July 2011

Investment Objective

Montanaro European Smaller Companies Trust plc aims to achieve capital growth by investing principally in European quoted smaller companies.

Performance Summary

Capital Return	As at 30 June 2011	As at  31 March 2011	Movement
Net asset value (000's)	£87,773	£88,837	-1.2%
Net asset value per share	529.6p	536.0p	-1.2%
Benchmark*	186.0	189.2	-1.7%
Share price	451.0p	467.0p	-3.4%
Discount	-14.8%	-12.9%
Net gearing	3.6%	1.9%

* MSCI Europe SmallCap (ex UK) Index (in Sterling terms)

Review for the Period

The Company's net asset value per share decreased by 1.2% during the three month period ended 30 June 2011. This compares to a decrease of 1.7% in the benchmark index.

During the period, European SmallCap markets were dominated by weak economic data and uncertainties about the prospects of a further bailing out of Greece.  However, company results have generally been ahead of expectation and mergers and acquisition activity remains strong.

Within the portfolio, the best performing stocks included Elekta (Swedish business involved in clinical solutions for cancer and brain tumours) which announced the acquisition of Nucletron for €365 million; Nokian Renkaat (Finnish tyre manufacturer) which announced upbeat Q1 earnings; Rational (German commercial kitchens); VZ Holdings (Swiss pensions and financial services company) and Fuchs Petrolub.

Top Ten Holdings as at 30 June 2011

Company	Country	Percentage of total assets
Lem Holding	Switzerland	3.1
GFK	Germany	3.0
Christian Hansen	Denmark	3.0
Virbac	France	2.8
Fuchs Petrolub	Germany	2.8
Vacon	Finland	2.8
Belimo Holdings	Switzerland	2.7
Rational	Germany	2.5
Outotec	Finland	2.5
Viscofan	Spain	2.5
Total		27.7

Geographical Analysis as at 30 June 2011

Country	Percentage of total assets
Germany	16.6
Sweden	14.8
Finland	11.3
Switzerland	10.6
France	9.8
Netherlands	5.6
Norway	5.0
Austria	4.4
Spain	3.2
Denmark	3.0
Italy	2.3
Greece	2.2
Ireland	1.9
Belgium	1.1
Liquidity	8.2
Total	100.0

Sector Distribution as at 30 June 2011

Sector	Percentage of total assets
Industrials	32.5
Consumer Discretionary	13.2
Energy	10.7
Financials	10.5
Healthcare	9.5
Information Technology	7.2
Materials	5.8
Consumer Staples	2.4
Liquidity	8.2
Total	100.0

Dividend

As previously announced, a final dividend in respect of the year ended 31 March 2011 of 2.75p per share is payable on 29 July 2011.

Issue of Equity

On 15 July 2011 the Company sold 875,000 Ordinary Shares from treasury at a price of 459.6p per share.

The Board is not aware of any other significant events or transactions which have occurred since 30 June 2011 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including monthly factsheets, can be found at the Manager's website: www.montanaro.co.uk.

For further information please contact:

Charles Montanaro

Montanaro Asset Management Limited

Tel: [phone]

 

END

 

 

IMSVLLBLFDFEBBF