19th Jun 2025 11:23
(Alliance News) - JPMorgan European Discovery Trust PLC on Thursday highlighted a positive outlook for Europe, as it hailed the performance of a top contributor, maintenance provider Bilfinger SE.
The trust invests for capital growth in smaller companies in continental Europe. Net asset value per share rose 0.6% to 524.0 pence as at March 31 from 520.7p a year before.
NAV total return was 2.9% in the financial year that ended March 31, outperforming its benchmark, the MSCI Europe excluding UK Small Cap net total return index, which had a total return of 1.3%.
The company said among the most significant contributors was Bilfinger, a Mannheim, Germany-based maintenance provider.
JPMorgan European Discovery said Bilfinger confirmed "our expectation that a successful operational turnaround of the business would drive margin improvement and earnings growth.
"This success can be attributed to the company's new management team, which has been implementing better risk controls and pricing mechanisms. Resultant strong cash generation provided scope for Bilfinger to initiate a share buyback programme."
Meanwhile, one of the biggest detractors was Ipsos Group SA, a Paris-based market research and consulting firm.
Ipsos "is currently suffering from the weak performance of its US operations, which have been adversely impacted by a change of local management, and a lack of spending by the public sector and healthcare companies," JPMorgan European Discovery said.
JPMorgan European Discovery declared a final dividend of 10.0p per share, up 25% from 8.0p a year prior. This brings the total payout to 13.0p, up 24% from 10.5p.
"European small caps are presenting a unique opportunity, trading at a notable discount relative to other asset classes while offering robust growth potential. This gap strengthens our confidence in the future of this asset class, especially as Europe's macroeconomic outlook begins to brighten. By seizing these undervalued prospects, we are poised to deliver significant returns and foster enduring success for our shareholders," said Portfolio Managers Jon Ingram, Jack Featherby, and Jules Bloch.
JPMorgan European Discovery shares were 0.2% lower at 554.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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