TIDMEAT
RNS Number : 1230Y
European Assets Trust NV
13 May 2016
European Assets Trust NV
Interim Management Statement
For the three month period from 31 December 2015 to 31 March
2016
Investment Objective
The investment objective of the Company is to achieve growth of
capital through investment in quoted small and medium-sized
companies in Europe, excluding the United Kingdom.
A high distribution policy has been adopted and dividends have
been paid mainly out of other reserves.
Three month Year ended
Total return# period 31 December
ended 31 March 2015
2016
Euro Sterling Euro Sterling
Net asset value per
share -7.4% -0.4% 26.9% 20.5%
Market price per share -7.7% -0.7% 26.8% 20.4%
Euromoney European
Smaller Companies
(ex UK) Index -4.9% 2.3% 23.4% 17.2%
Dividends
The Board has announced dividends of Euro 0.912 per share for
the year to 31 December 2016 payable in three instalments in
January, May and August. The January dividend was paid on 29
January 2016 and amounted to Euro 0.304 per share (GBP0.234 per
share in Sterling terms). The May dividend has been announced at a
rate of Euro 0.304 per share and will be paid on 31 May 2016.
As at As at As at As at
31 Mar 31 Dec 31 Mar 31 Dec
2016 2015 2016 2015
Capital return Euro Euro Sterling Sterling
Net assets (shareholders'
funds) EUR450.8m EUR483.9m GBP357.4m GBP356.6m
Net asset value
per share EUR13.77 EUR15.20 1,091.5p 1,120.1p
Market price per
share 1,095.0p 1,127.0p
Euromoney European
Smaller Companies
(ex UK) Index 525.64 553.88 416.75 408.24
Premium to net asset
value 0.3% 0.6%
Gearing (100% =
nil geared position)++ 101% 98%
Sources: F&C Investment Business Limited, Datastream.
++ - Gearing: The gearing ratio is total assets (less cash and
cash equivalents) divided by shareholders' funds expressed as a
percentage.
# - Total return means capital performance with dividends
reinvested.
Review of the period to 31 March 2016
The first quarter of 2016 has been challenging for equity
investors with the year starting with an aggressive sell off driven
by deteriorating global economic news, with a particular focus on
the Chinese economy and further deterioration in the oil price.
Much of this weakness was however not felt in its entirety by
Sterling holders of Euro denominated assets, as the Pound weakened
in reaction to the UK's potential exit from the European Union.
Overall though, it was a disappointing quarter for European Assets
Trust.
The market weakness has, nevertheless, provided opportunities
for new investments. Towards the end of 2015 we had looked at a
number of high quality companies but did not invest as they were
too expensive. We have used the first quarter to add a number of
these names as their prices became more attractive. Examples
include Marr, the Italian food distributor, IMCD, the Dutch
specialist chemical distributor, and IMA, the Italian manufacturer
of packaging machines. We have also, through our systematic review
process, cast a critical eye on areas of the portfolio that have
been struggling. Our new buys have been funded by a combination of
increased gearing and the sale of one of our position, EFG, the
Swiss private bank.
Our philosophy, process and outlook remains unchanged. We see
the European equity market as finely balanced with the slow
improvement in economic activity in Europe not yet translating into
meaningful profit growth. Valuations look reasonable to us, but we
would be more comfortable in aggregate if we had more confidence in
corporate Europe's earnings recovery.
Over the three month period ended 31 March 2016 the Company
issued 900,000 new Ordinary Shares for a total consideration of
GBP9.4 million representing 2.8% of the Ordinary Shares in issue at
31 December 2015. During the period the Company also issued 9,178
Ordinary Shares via scrip dividend. To facilitate this issuance the
Company published a prospectus in July 2015. This prospectus allows
the Company to issue up to 9 million new Ordinary shares at an
issue price of at least net asset value and a premium to cover the
commissions of
issuance. Of this amount, as at 31 March 2016, 5,318,124 shares have been issued.
Top Ten Holdings
31 March
2016
percentage
Company Country of net
assets
Irish Continental Ireland 4.2
Gerresheimer Germany 3.7
CTT Correios de
Portugal Portugal 3.6
Forbo Switzerland 3.6
Amer Sports Finland 3.5
Origin Enterprises Ireland 3.5
Plastic Omnium France 3.5
Cerved Information
Solutions Italy 3.5
Glanbia Ireland 3.3
Grafton Group Ireland 3.0
Total 35.4
------------
Geographical Analysis
31 Mar 31 Dec
2016 2015
Country percentage percentage
of net of net
assets assets
Ireland 20.7 21.3
Germany 17.9 17.6
Italy 12.6 12.3
Spain 8.5 8.1
Sweden 7.4 6.6
Denmark 7.2 7.1
Switzerland 6.4 7.6
Norway 5.0 4.9
Netherlands 5.0 2.2
Portugal 3.6 3.1
Finland 3.6 3.4
France 3.5 3.7
Net (current liabilities
includes borrowings)/ assets (1.4) 2.1
Total 100.0 100.0
------------- -------------
Summarised Balance Sheet
31 Mar 31 Dec
2016 2015
EURmillion EURmillion
(unaudited) (audited)
Investments 456.6 473.8
Net current assets/(liabilities) (5.8) 10.1
Net assets (shareholders'
funds) 450.8 483.9
-------------- -------------
Shareholders' funds comprising
of:
Issued share capital 15.1 14.6
Share premium and other reserves* 435.7 469.3
Total shareholders' funds 450.8 483.9
-------------- -------------
* Share premium and other reserves are freely distributable
Daily and Key Information
Since 1 April 2016 the Company has issued a further 205,000
Ordinary Shares for a total consideration of GBP2.2 million. Of the
prospectus capacity of 9 million shares as at 11 May 2016 3.5
million remain available for issuance.
The Boards are not aware of any other significant events or
transactions which have occurred since 31 March 2016 and the date
of publication of this statement which would have a material impact
on the financial position of the Company.
Further information regarding the Company, including daily net
asset values published since the end of the period and monthly
factsheets, can be found at the Company's website
www.europeanassets.eu, or at www.fandc.com.
For further information please contact:
Sam Cosh (Fund Manager)
Tel: 0044 207 628 8000
Scott McEllen (Company Secretary)
Tel: 0044 131 718 1000
Wilbert van Twuijver (representing the Management Board
Director)
Tel 0031 10201 3625
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCZMGMKKZNGVZM
(END) Dow Jones Newswires
May 13, 2016 02:00 ET (06:00 GMT)
European Assets (LSE:EAT)
Historical Stock Chart
From Apr 2024 to May 2024
European Assets (LSE:EAT)
Historical Stock Chart
From May 2023 to May 2024