TIDMMTU
RNS Number : 9921P
Montanaro UK Smlr Cos Inv Tst PLC
24 November 2016
Montanaro UK Smaller Companies Investment Trust PLC ("MUSCIT" or
the "Company")
Half-Yearly Report for the six months to 30 September 2016
MUSCIT was launched in March 1995 and is a closed-ended
investment trust with shares premium listed on the London Stock
Exchange ("LSE").
Investment Objective
MUSCIT's investment objective is capital appreciation through
investing in small quoted companies listed on the LSE or traded on
the Alternative Investment Market ("AIM") and to achieve relative
outperformance of its benchmark, the Numis Smaller Companies Index
(excluding investment companies) ("NSCI").
No unquoted investments are permitted.
Investment Policy
The Company seeks to achieve its objective and to manage risk by
investing in a diversified portfolio of quoted UK small companies.
At the time of initial investment, the Manager focuses on the
smaller end of the NSCI; a potential investee company must be
profitable and no bigger than the largest constituent of the NSCI,
which represents the smallest 10% of the UK Stock Market by value.
At the start of 2016, this was any company below GBP1.3 billion in
size.
In order to manage risk, the Manager limits any one holding to a
maximum of 4% of the Company's investments at the time of initial
investment. The portfolio weighting of each investment is closely
monitored to reflect the underlying liquidity of the particular
company. The Company's AIM exposure is also closely monitored by
the Board and is limited to 30% of total investments, with Board
approval required for exposure above 25%. The Company currently has
a small exposure to investments in companies traded on AIM.
The Manager is focused on identifying high-quality, niche
companies operating in growth markets. This typically leads the
Manager to invest in companies that enjoy high barriers to entry,
pricing power, a sustainable competitive advantage and strong
management teams. The portfolio is therefore constructed on a
"bottom-up" basis.
The Alternative Investment Fund Manager ("AIFM"), in
consultation with the Board, is responsible for determining the
gearing levels of the Company and has determined that the Company's
borrowings should be limited to 25% of shareholders' funds. Gearing
is used to enhance returns when the timing is considered
appropriate. The Company currently has credit facilities of GBP30
million with ING Bank, of which GBP25 million was drawn down as at
30 September 2016 (amounting to net gearing of 10.5%).
Highlights
for the six months to 30 September 2016
Results
As at As at
30 September 31 March
2016 2016 % Change
Ordinary share price 466.5p 461.0p 1.2
Net asset value ("NAV") per
Ordinary share 598.0p 570.6p 4.8
NAV (excluding current period
revenue) per Ordinary share 591.2p 558.4p 5.9
Discount to NAV (excluding
current period revenue) 21.1% 17.4%
NSCI* 7,039.1 6,674.2 5.5
* Capital only.
As at As at
30 September 31 March
2016 2016 % Change
Gross assets GBP225.6m GBP219.6m 2.7
Net assets GBP200.2m GBP191.0m 4.8
Market capitalisation GBP156.2m GBP154.3m 1.2
Net gearing employed* 10.5% 9.9%
Ongoing charges 1.3% 1.2%
Portfolio turnover** 19.5% 16.5%
* Borrowing net of cash.
** Calculated using average transactions as a percentage of the
average total investments at fair value during the period.
Performance
Since
Capital Return Percentage 6 months 1 year 3 year 5 year 10 year launch
Share Price 1.2 -7.1 -4.0 43.1 81.2 391.1
NAV (excluding current
period revenue) 5.9 3.4 9.9 53.0 97.5 499.7
Benchmark* 5.5 5.7 14.9 77.7 16.6 137.3
Since
Total Return Percentage 6 months 1 year 3 year 5 year 10 year launch
Share Price** 3.4 -4.8 1.6 57.0 120.2 475.4
NAV** 6.6 5.3 15.3 65.4 130.9 587.8
Benchmark* 7.3 8.6 25.0 105.1 57.8 345.0
* The Benchmark is a composite index comprising the FTSE
SmallCap Index (excluding investment companies) until 31 March 2013
and the NSCI Index from 1 April 2013 onwards.
** Returns have been adjusted for dividends paid.
Source: The Association of Investment Companies ("AIC").
Capital Structure
As at 30 September 2016 and the date of this report, the Company
had 33,475,958 Ordinary shares of 10p each in issue (none of which
were held in Treasury). Holders of Ordinary shares have
unrestricted voting rights of one vote per share at all general
meetings of the Company.
Change of Broker
On 17 October 2016, the Company appointed Cenkos Securities plc
as its corporate broker and financial adviser.
Manager's Review
The last six months will undoubtedly be defined by the United
Kingdom's historic decision to leave the European Union. The
immediate impact on financial markets was dramatic: sterling fell
to a 31 year low against the US dollar; UK Government bond yields
established record lows; and in June, the NSCI recorded its worst
monthly performance relative to the FTSE All-Share Index in more
than 26 years. Not even the aftermath of 9/11 or Lehman Brothers
was as bad. It was a truly remarkable period.
So what happened? The primary reason for these market moves was
an aggressive rotation by investors wanting to capitalise on a
weaker pound by shifting into the most globally exposed companies.
This came at the expense of those businesses more reliant on the UK
domestic economy. It was no surprise, therefore, that the NSCI's
5.5% return for the period under review was significantly lower
than that of the FTSE All-Share Index, which returned 10.6%.
Over the same period, the Company's NAV (excluding current
period revenue) increased by 5.9%, slightly ahead of the benchmark
index.
These positive returns demonstrate the resilience of markets
post the Brexit shock - the "Brexit Blues" were cast aside with a
surprising swiftness. This caught many investors off guard,
particularly those who had fled the SmallCap market altogether.
With politics stealing the headlines, the summer period was even
quieter than usual in the City of London. Mixed macroeconomic data
- the largest slide in UK consumer confidence for more than 26
years was offset by August's manufacturing activity, which recorded
the largest month-on-month increase in 25 years - provided few
clues to the long-term trajectory of the UK economy. We gleaned
more from meeting company management teams who, by and large, saw
no change in the business environment. In particular, our recent
meetings with the house builders within the portfolio have been
reassuring; after the initial post-Brexit lull, business has
returned to normal.
Outlook
A fundamental shift appears to be taking place across the globe.
With unorthodox monetary policies across the developed world under
increased scrutiny, the spotlight is slowly shifting towards
reinvigorated fiscal policies. Japan has led the way, with Prime
Minister Shinzo Abe launching a $45 billion stimulus package to
"invest in the future". Other countries are following suit. The UK
is looking at ways to boost investment post-Brexit, while a fiscal
response may be the antidote to rising Euroscepticism on the
continent. The post Credit Crunch "Age of Austerity" - so
championed by Messrs Cameron and Osborne - has seemingly been
replaced by the fiscal pragmatism of Prime Minister May and
Chancellor Hammond. This may be good news for domestically-focused
UK SmallCap.
A further positive for the asset class is that UK SmallCap now
trades on its widest discount to UK LargeCap since 2002. This
suggests that the asset class has room to continue to perform well.
A key indicator of how the market may fare over the near term will
be the upcoming earnings season. If companies deliver reasonable
earnings growth, then the last three months of the year could prove
fruitful for investors. After all, UK SmallCap traditionally does
well in the run-up to Christmas.
Montanaro Asset Management Limited
23 November 2016
Investment Portfolio
as at 30 September 2016
% of
% of portfolio
Market portfolio 31 March
Value cap 30 September 2016
Holding Sector GBP'000 GBPm 2016
------------------------- ------------------------------------ --------- -------- -------------- -----------
NCC Group Software and Computer Services 9,466 968 4.3 3.7
Dechra Pharmaceuticals Pharmaceuticals and Biotechnology 8,358 1,292 3.8 3.7
Dignity General Retailers 7,708 1,391 3.5 3.6
Hilton Food Group Food Producers 7,095 451 3.2 2.7
Domino's Pizza Group Travel and Leisure 6,723 1,844 3.0 3.3
Real Estate/Real Estate Investment
Big Yellow Group Trusts 6,630 1,231 3.0 3.7
Health Care, Equipment and
Consort Medical Services 6,498 532 2.9 4.2
Marshalls Construction and Materials 6,132 569 2.8 3.8
Cranswick Food Producers 5,845 1,176 2.6 2.9
Real Estate/Real Estate Investment
Shaftesbury Trusts 5,820 2,702 2.6 3.0
Cineworld Group Travel and Leisure 5,800 1,541 2.6 3.5
James Fisher and
Sons Industrial Transportation 5,702 817 2.6 2.2
Ricardo Support Services 5,305 510 2.4 1.9
Mears Group Support Services 5,278 471 2.4 2.0
Diploma Support Services 5,274 995 2.4 2.2
Electronic and Electrical
Renishaw Equipment 5,274 1,919 2.4 1.8
Household Goods and Home
Bovis Homes Group Construction 5,250 1,177 2.4 3.0
Jupiter Fund Management Financial Services 4,892 1,947 2.2 2.4
Restaurant Group Travel and Leisure 4,804 773 2.2 1.8
Ascential Media 4,777 1,126 2.2 1.4
Twenty Largest Holdings 122,631 55.5
--------------------------------------------------------------- --------- -------- -------------- -----------
Arrow Global Group Financial Services 4,712 514 2.1 1.9
Rathbone Brothers Financial Services 4,575 885 2.1 2.8
4Imprint Group Media 4,555 492 2.1 -
Entertainment One Media 4,528 972 2.0 2.1
Electronic and Electrical
Halma Equipment 4,196 3,978 1.9 2.1
Clarkson Industrial Transportation 4,192 634 1.9 2.3
Household Goods and Home
McCarthy and Stone Construction 4,173 897 1.9 2.8
Victrex Chemicals 3,920 1,341 1.8 2.9
Real Estate/Real Estate Investment
St. Modwen Properties Trusts 3,749 652 1.7 1.8
AG Barr Beverages 3,591 599 1.6 1.9
Polypipe Group Construction and Materials 3,510 557 1.6 -
Ted Baker Personal Goods 3,080 1,085 1.4 1.9
Household Goods and Home
Galliford Try Construction 2,957 1,099 1.3 1.5
Eco Animal Health Pharmaceuticals and Biotechnology 2,909 307 1.3 -
Sanne Group Support Services 2,855 529 1.3 -
Electronic and Electrical
Dialight Equipment 2,796 227 1.3 1.2
Real Estate/Real Estate Investment
Savills Trusts 2,685 1,001 1.2 -
Restore Support Services 2,588 387 1.2 -
Dunelm Group General Retailers 2,556 1,717 1.1 1.1
AVEVA Group Software and Computer Services 2,495 1,277 1.1 1.7
Real Estate/Real Estate Investment
Helical Bar Trusts 2,434 320 1.1 1.9
RPS Group Support Services 2,422 386 1.1 1.6
Brewin Dolphin Holdings Financial Services 2,374 747 1.1 0.9
Senior Aerospace and Defence 2,291 961 1.0 1.0
CVS Group General Retailers 2,212 531 1.0 -
FDM Group Software and Computer Services 2,142 658 1.0 -
Real Estate/Real Estate Investment
Workspace Group Trusts 2,094 1,139 0.9 1.8
Health Care, Equipment and
ADV Medical Solutions Services 2,052 480 0.9 -
GB Group Software and Computer Services 1,682 452 0.8 -
EMIS Group Software and Computer Services 1,503 595 0.7 -
Accesso Technology Software and Computer Services 1,450 322 0.7 -
BCA Marketplace Support Services 1,440 1,404 0.7 -
Tracsis Software and Computer Services 1,288 143 0.6 -
Fevertree Drinks Beverages 1,213 1,118 0.5 -
Abcam Pharmaceuticals and Biotechnology 1,134 1,704 0.5 -
Total Portfolio 220,984 100.0
--------------------------------------------------------------- --------- -------- -------------- -----------
Breakdown by Index (Ex Cash)
% of portfolio % of portfolio
as at as at
Classification 30 September 31 March 2016
2016
FTSE 100 - -
FTSE 250* 28% 33%
NSCI 64% 67%
AIM 8% -
* Represents those holdings that are in the FTSE 250 and are
above the threshold for the NSCI.
Interim Management Report and Responsibility Statement
Interim Management Report
The important events that have occurred during the period under
review and the key factors influencing the financial statements are
set out in the Manager's Review.
The principal risks facing the Company are unchanged since the
date of the Annual Report and Accounts for the year ended 31 March
2016 and continue to be as set out in that report on page 11 and
pages 41 to 43. These include, but are not limited to, liquidity
and discount management, corporate ownership and management
structure of Montanaro, poor investment performance, risk
oversight, key man risk, operational risk and breach of regulation.
The principal financial risks include, but are not limited to,
credit risk, market price risk, interest rate risk, liquidity risk,
gearing and use of derivatives.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
-- The condensed set of financial statements, which has been
neither reviewed nor audited by the external Auditor, has been
prepared in accordance with Financial Reporting Standard ("FRS")
104 'Interim Financial Reporting' and gives a true and fair view of
the assets, liabilities, financial position and profit of the
Company; and
-- This Half-Yearly Report includes a fair review of the information required by:
o DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year; and
o DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related party transactions that have taken place in the first
six months of the current financial year and that have materially
affected the financial position or performance of the Company
during that period, and any changes in the related party
transactions described in the last Annual Report that could do
so.
This Half-Yearly Report was approved by the Board of Directors
on 23 November 2016 and the above Responsibility Statement was
signed on its behalf by Roger Cuming, Chairman.
Income Statement (unaudited)
for the six months to 30 September 2016
6 months to 30 September 6 months to 30 September Year to 31 March 2016
2016 2015
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains on
investments
at fair value - 11,219 11,219 - 6,358 6,358 - 2,779 2,779
Dividends and
interest 2,858 - 2,858 2,849 - 2,849 5,249 - 5,249
Management fee (237) (711) (948) (238) (715) (953) (480) (1,439) (1,919)
Other expenses (250) - (250) (252) - (252) (515) - (515)
Movement in fair
value
of derivative
financial
instruments - 69 69 - 63 63 - 123 123
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Return on ordinary
activities
before finance
costs
and taxation 2,371 10,577 12,948 2,359 5,706 8,065 4,254 1,463 5,717
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Interest payable
and
similar charges (106) (318) (424) (86) (257) (343) (187) (562) (749)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Return on ordinary
activities
before taxation 2,265 10,259 12,524 2,273 5,449 7,722 4,067 901 4,968
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Taxation (Note 3) (4) - (4) (3) - (3) (3) - (3)
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Return for the
period,
being total
comprehensive
income for the
period 2,261 10,259 12,520 2,270 5,449 7,719 4,064 901 4,965
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Return per
Ordinary share 6.8p 30.6p 37.4p 6.8p 16.3p 23.1p 12.1p 2.7p 14.8p
------------------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
The total column of this statement is the Statement of Total
Comprehensive Income of the Company prepared in accordance with FRS
102 and 104. The supplementary revenue return and capital return
columns are prepared in accordance with the Statement of
Recommended Practice issued in November 2014 by the AIC ("AIC
SORP").
All items in the above statement derive from continuing
operations.
No Statement of Total Recognised Gains and Losses has been
prepared as all such gains and losses are shown in the Income
Statement.
No operations were acquired or discontinued in the period.
Statement of Changes in Equity (unaudited)
for the six months to 30 September 2016
Total
Called-up Share Capital Distributable equity
share premium redemption Special Capital revenue shareholders'
6 months to 30 capital account reserve reserve* reserve* reserve* funds
September 2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 April 2016 3,348 19,307 1,362 4,642 155,743 6,607 191,009
Fair value
movement of
investments - - - - 11,219 - 11,219
Costs allocated to
capital - - - - (1,029) - (1,029)
Dividends paid in
the period
(note 4) - - - - - (3,348) (3,348)
Movement in fair
value of
derivative
financial
instruments - - - - 69 - 69
Net revenue for
the period - - - - - 2,261 2,261
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
As at 30 September
2016 3,348 19,307 1,362 4,642 166,002 5,520 200,181
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
6 months to 30
September 2015
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
As at 1 April 2015 3,348 19,307 1,362 4,642 154,842 5,522 189,023
Fair value
movement of
investments - - - - 6,358 - 6,358
Costs allocated to
capital - - - - (972) - (972)
Dividends paid in
the period - - - - - (2,979) (2,979)
Movement in fair
value of
derivative
financial
instruments - - - - 63 - 63
Net revenue for
the period - - - - - 2,270 2,270
As at 30 September
2015 3,348 19,307 1,362 4,642 160,291 4,813 193,763
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
Year to 31 March
2016
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
As at 1 April 2015 3,348 19,307 1,362 4,642 154,842 5,522 189,023
Fair value
movement of
investments - - - - 2,779 - 2,779
Costs allocated to
capital - - - - (2,001) - (2,001)
Dividends paid in
the year (note 4) - - - - - (2,979) (2,979)
Movement in fair
value of
derivative
financial
instruments - - - - 123 - 123
Net revenue for
the year - - - - - 4,064 4,064
As at 31 March
2016 3,348 19,307 1,362 4,642 155,743 6,607 191,009
------------------- ---------- --------- ------------ ---------- ---------- ------------------- ---------------
* These reserves are distributable, excluding any unrealised
gains in unrealised capital reserve. The special reserve can be
used for the repurchase of the Company's own shares.
Balance Sheet (unaudited)
as at 30 September 2016
As at As at As at
30 September 30 September 31 March
2016 2015 2016
GBP'000 GBP'000 GBP'000
Fixed assets
Investments at fair value (note
5) 220,984 207,527 209,502
--------------------------------------- -------------- -------------- -----------
Current assets
Debtors 650 1,635 988
Cash at bank 4,009 5,145 9,061
--------------------------------------- -------------- -------------- -----------
4,659 6,780 10,049
--------------------------------------- -------------- -------------- -----------
Creditors: amounts falling
due within one year
Other creditors (390) (343) (401)
Revolving credit facility (note
5) (25,000) (20,000) (28,000)
Interest rate swap (note 5) (72) - (141)
--------------------------------------- -------------- -------------- -----------
(25,462) (20,343) (28,542)
--------------------------------------- -------------- -------------- -----------
Net current liabilities (20,803) (13,563) (18,493)
--------------------------------------- -------------- -------------- -----------
Total assets less current liabilities 200,181 193,964 191,009
--------------------------------------- -------------- -------------- -----------
Creditors: amounts falling
due after more than one year
Interest rate swap - (201) -
--------------------------------------- -------------- -------------- -----------
Net assets 200,181 193,763 191,009
--------------------------------------- -------------- -------------- -----------
Share capital and reserves
Called-up share capital 3,348 3,348 3,348
Share premium account 19,307 19,307 19,307
Capital redemption reserve 1,362 1,362 1,362
Special reserve 4,642 4,642 4,642
Capital reserve 166,002 160,291 155,743
Distributable revenue reserve 5,520 4,813 6,607
Total equity shareholders'
funds 200,181 193,763 191,009
Net asset value per Ordinary
share 598.0p 578.8p 570.6p
--------------------------------------- -------------- -------------- -----------
Number of Ordinary shares in
issue 33,475,958 33,475,958 33,475,958
--------------------------------------- -------------- -------------- -----------
Notes to the Financial Statements
as at 30 September 2016
1 Financial Information
The condensed financial statements for the six months ended 30
September 2016 comprise the statements together with the related
notes. The Company applies FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland' in its
annual financial statements and the AIC SORP issued in November
2014. The condensed financial statements for the six months to 30
September 2016 have been prepared in accordance with FRS 104. The
financial statements have been prepared on the basis of the same
accounting policies as set out in the Company's Annual Report and
Accounts for the year ended 31 March 2016.
The Company has elected to remove its cash flow statement, as
permitted by FRS 102 paragraph 7.1.A. As stated in the Annual
Report, the Company has early adopted the amendments made to FRS
102 paragraph 34.22.
The financial information contained in this Half-Yearly Report
does not constitute full statutory accounts as defined in section
434 of the Companies Act 2006. The financial information for the
six months to 30 September 2016 and 30 September 2015 has not been
audited or reviewed by the Company's Auditor pursuant to the
Auditing Practices Board guidance on such reviews.
The information for the year ended 31 March 2016 has been
extracted from the latest published Annual Report and Accounts,
which have been filed with the Registrar of Companies. The Report
of the Auditors on those financial statements was unqualified and
did not contain a statement under section 498(2) or (3) of the
Companies Act 2006.
2 Management Expenses and Finance Costs
Management fees and finance costs are allocated 75% to the
capital reserve and 25% to the revenue account. Costs arising on
early settlement of debt are allocated 100% to capital, in
accordance with the requirements of the AIC SORP. All other
expenses are allocated in full to the revenue account.
3 Tax Credit/Charge on Ordinary Activities
The tax charge for the six months to 30 September 2016 is
GBP4,000 (six months to 30 September 2015: GBP3,000; year to 31
March 2016: GBP3,000). The tax charge comprises a corporation tax
charge for the six months to 30 September 2016 of GBPnil (six
months to 30 September 2015: GBPnil; year to 31 March 2016: GBPnil)
and irrecoverable withholding tax suffered of GBP4,000 (six months
to 30 September 2015: GBP3,000; year to 31 March 2016:
GBP3,000).
The corporation tax charge is based on an estimated effective
tax rate of 0% as investment gains are exempt from tax owing to the
Company's status as an investment trust and there is expected to be
an excess of management expenses over taxable income.
4 Dividends
6 months Year to
to 31 March
30 September 2016
2016 GBP'000
GBP'000
---------------------------------------------- -------------- ----------
Paid
2016 Final dividend of 10.00p (2015: 8.90p)
per Ordinary share 3,348 2,979
---------------------------------------------- -------------- ----------
5 Fair Value Hierarchy
In accordance with FRS 104, the Company must disclose the fair
value hierarchy of financial instruments.
The fair value hierarchy consists of the following three
levels:
-- level - The unadjusted quoted price in an active market
1 for identical assets or liabilities that the entity
can access at the measurement date;
-- level - Inputs other than quoted prices included within
2 level 1 that are observable (i.e. developed using
market data) for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived
from prices); and
-- level - Inputs are unobservable (i.e. for which market data
3 is unavailable) for the asset or liability.
For financial instruments (within the scope of FRS 102), which
are measured at fair value in the Balance Sheet, an entity shall
disclose the following for each class of financial instruments:
-- the level in the fair value hierarchy into which the fair
value measurements are categorised in their entirety;
-- any significant transfers between level 1 and level 2 of the
fair value hierarchy and the reasons for those transfers; and
-- for fair value measurements in level 3 of the hierarchy,
transfers into or out of level 3 and the reasons for those
transfers.
The table below sets out fair value measurements of financial
assets in accordance with the FRS 102 fair value hierarchy:
30 September 2016 31 March 2016
Level Level Total Level Level Total
1 2 GBP'000 1 2 GBP'000
GBP'000 GBP'000 GBP'000 GBP'000
Equity investments 220,984 - 220,984 209,502 - 209,502
220,984 - 220,984 209,502 - 209,502
-------------------- --------- --------- --------- --------- --------- ---------
The table below sets out fair value measurements of financial
liabilities in accordance with the FRS 102 fair value hierarchy
system:
30 September 2016 31 March 2016
Level Level Total Level Level Total
1 2 GBP'000 1 2 GBP'000
GBP'000 GBP'000 GBP'000 GBP'000
Revolving Credit Loan
Facility - 25,000 25,000 - 28,000 28,000
Derivative financial
instruments - 72 72 - 141 141
----------------------- ---------- --------- --------- --------- --------- ---------
- 25,072 25,072 - 28,141 28,141
---------------------------------- --------- --------- --------- --------- ---------
There were no level 3 investments.
6 Going Concern
The Company has adequate financial resources to meet its
investment commitments and as a consequence, the Directors believe
that the Company is well placed to manage its business risks. After
making appropriate enquiries and due consideration of the Company's
cash balances, the liquidity of the Company's investment portfolio
and the cost base of the Company, the Directors have a reasonable
expectation that the Company has adequate available financial
resources to continue in operational existence for the foreseeable
future and accordingly have concluded that it is appropriate to
continue to adopt the going concern basis in preparing the
Half-Yearly Report, consistent with previous years.
7 Segmental Reporting
The Company has one reportable segment, investing in UK
businesses.
8 Related Party Transactions
Under the Listing Rules, the Manager is regarded as a related
party of the Company. However, the existence of an independent
Board of Directors demonstrates that the Company is free to pursue
its own financial and operating policies and therefore, in terms of
FRS 102, the Manager is not considered a related party. The
relationship between the Company, its Directors and the Manager is
disclosed in the Directors' Report in the Annual Report and
Accounts for the year ended 31 March 2016.
The amounts charged by the Manager during the period were
GBP948,000 (six months to 30 September 2015: GBP953,000; year to 31
March 2016: GBP1,919,000). At 30 September 2016, the amount due to
the Manager, included in creditors, was GBP164,000.
Directors
Roger Cuming (Chairman)
Kate Bolsover
Kathryn Matthews
James Robinson
Principal Advisers
AIFM and Manager Depositary
Montanaro Asset Management Limited BNY Mellon Trust & Depositary
53 Threadneedle Street (UK) Limited
London EC2R 8AR BNY Mellon Centre
Tel: 020 7448 8600 160 Queen Victoria Street
Fax: 020 7448 8601 London EC4V 4LA
www.montanaro.co.uk
enquiries@montanaro.co.uk
Custodian
Company Secretary, Administrator Bank of New York Mellon SA/NV
and Registered Office London Branch
One Canada Square
London E14 5AL
Capita Sinclair Henderson Limited Banker
Beaufort House
51 New North Road
Exeter EX4 4EP
Tel: 01392 477 500
Fax: 01392 253 282
ING Bank N.V.
London Branch
60 London Wall
London EC2M 5TQ
Registrar Broker
Capita Asset Services Cenkos Securities plc
Shareholder Services Department 6-8 Tokenhouse Yard
The Registry London EC2R 7AS
34 Beckenham Road
Beckenham
Kent BR3 4TU
Tel: 0871 664 0300
(calls will cost 12p per minute plus
network charges)
ssd@capitaregistrars.com
www.capitaregistrars.com
Auditor
Ernst & Young LLP
25 Churchill Place
Canary Wharf
London E14 5EY
Montanaro UK Smaller Companies Investment Trust PLC
Registered in England and Wales No. 3004101
An investment company as defined under
section 833 of the Companies Act 2006
Sources of Further Information
Information on the Company, including this Half-Yearly Report is
available on the Company's website: www.montanaro.co.uk/muscit.
Key Dates
March Company year end
--------- -----------------------
June Annual results
--------- -----------------------
July Annual General Meeting
--------- -----------------------
August Dividend payable
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November Half-yearly results
--------- -----------------------
Frequency of NAV Publication
The Company's NAV is released to the LSE on a daily basis.
ISA Status
The Company is fully eligible for inclusion in ISAs.
AIC
The Company is a member of the AIC.
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on this announcement (or
any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRBDBBBDBGLX
(END) Dow Jones Newswires
November 24, 2016 02:00 ET (07:00 GMT)
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