24th Feb 2026 09:42
(Alliance News) - European Smaller Cos Trust PLC on Tuesday reported strong performance in its first half, beating its benchmark and underscoring the firm's hopeful outlook for the continent.
The London-based investor in small- to mid-cap European equities said its net asset value was 238.18 pence per share at the end of December, up from 224.45p at June 30.
NAV total return was 7.7%, ahead of ESCT's comparator, the MSCI Europe ex UK Small Cap index, which returned 7.1% over the same period.
ESCT shares traded 0.2% lower at 222.02 pence on Tuesday morning in London, but are up 21% over the past year.
The firm has declared an interim dividend of 2.81 pence per share, payable on Friday. It intends to pay further dividends of at least 2.81p in May and August.
Chair James Williams outlined some of Europe's economic challenges since Russia's invasion of Ukraine in 2022, noting a "supply-chain shock" in the wake of the COVID-19 pandemic, combined with "the energy shock, the inflation shock, the interest rate cycle and US tariff policy".
"However, the supply-chain shock has unwound, energy prices have normalised to a degree, inflation is under control, interest rates are declining and there is a degree of visibility around tariffs," Williams argued.
"The German government's abandoning of the debt-brake and embarkation upon fiscal stimulus and rearmament will have a further positive effect on the European economy over the coming quarters. This should help the already strong European periphery and recovering northern European economies, and awaken economic activity on the continent," the chair continued.
"As recovery builds, we believe the stock markets should see a wider variety of companies delivering strong price returns... Following a period of intense corporate activity with the large tender offer last year and the combination with EAT, we look forward to a period of calm for our fund managers who have performed admirably despite the distractions of 2025."
Back in October, ESCT acquired European Assets Trust, or EAT, whose investors could elect to receive either 97.04p in cash or 0.43 of a new ESCT share for every EAT share held.
This followed a tender offer by ESCT in April, which came as the solution to "constructive negotiations" between the trust's board and Saba Capital Management LP. The US hedge fund and activist investor had requisitioned a meeting of ESCT, alongside several other UK firms, to push for board changes. Saba agreed to tender 115.4 million ESCT shares, worth about GBP211.4 million.
By Holly Munks, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
The European Smaller Companies Trust