Interim Management Statement

RNS Number : 0250X

Montanaro European Smaller C.TstPLC

08 February 2012

 



Montanaro European Smaller Companies Trust plc

Interim Management Statement

For the Period from 1 October 2011 to 8 February 2012

Investment Objective

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

Performance Summary

Capital Return	As at 31 December 2011	As at  30 September 2011	Movement
Net asset value (000's)	£69,560	£67,377	+3.2%
Net asset value per share	403.6p	386.2p	+4.5%
Benchmark*	135.2	135.8	-0.4%
Share price	345.8p	359.5p	-3.8%
Discount	-14.3%	-6.9%
Net gearing	11.6%	11.8%

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

Review for the Period

The Company's net asset value per share increased by 4.5% during the three month period ended 31 December 2011. This compares to a decrease of 0.4% in the benchmark index.

Volatility in European stockmarkets continued during the period. Investor confidence remained low as politicians sought solutions to the sovereign debt and banking crises in the Eurozone. Inevitably, the outlook for economic growth in the region deteriorated. However, at the corporate level, company balance sheets are generally in good shape with large cash balances. This should provide a degree of protection in the event of an economic slowdown in the region, but also provide opportunities for increased mergers and acquisitions activity as 2012 progresses.

Top Ten Holdings as at 31 December 2011

Company	Country	Percentage of total assets
Rational	Germany	3.4
Kapsch TrafficCom	Austria	3.3
Elekta	Sweden	3.1
Virbac	France	3.0
Christian Hansen	Denmark	3.0
Fuchs Petrolub	Germany	2.9
Belimo Holdings	Switzerland	2.8
Nokian Renkaat	Finland	2.8
Bureau Veritas	France	2.7
Newave Energy	Switzerland	2.7
Total		29.7

Geographical Analysis as at 31 December 2011

Country	Percentage of total assets
Germany	17.9
Sweden	17.2
Switzerland	10.5
France	10.4
Austria	8.3
Finland	8.2
Denmark	5.5
Norway	5.0
Netherlands	3.9
Spain	2.3
Ireland	1.9
Italy	1.2
Belgium	1.2
Greece	1.1
Liquidity	5.4
Total	100.0

Sector Distribution as at 31 December 2011

Sector	Percentage of total assets
Industrials	28.5
Consumer Discretionary	13.1
Energy	12.0
Healthcare	11.5
Financials	11.2
Information Technology	10.1
Materials	5.9
Consumer Staples	2.3
Liquidity	5.4
Total	100.0

Dividend

As previously announced, an interim dividend in respect of the year ended 31 March 2012 of 1.75p per share was paid on 6 January 2012.

Transaction in Own Securities

On 30 December 2011 the Company purchased 215,000 of its own ordinary shares of 50p, to be held in treasury, at a price of 344.26p per share.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 31 December 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

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]

 

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