18th Jun 2020 14:20
(Alliance News) - Montanaro European Smaller Cos Trust PLC on Thursday said it outperformed the benchmark in its most recently ended financial year despite a reduction in net assets.
The investment company reported a 5.3% decline in net asset value per share to 956.9 pence as at March 31 compared to 1,010.8p a year prior.
In comparison, the MSCI Europe (ex UK) Small Cap Index (in sterling terms) declined by 15% for the financial year.
The trust's share price stood at 880.0p as at the end of March, representing a 8.0% discount to NAV.
The stock was trading 3.2% lower on the day Thursday at 1,120.00p a share.
Montanaro upped its dividend for the year to 9.25p from 9.00p paid a year earlier, a 2.8% increase.
"The final quarter of the financial year will undoubtedly enter the history books: the bull market came to an abrupt end as the Covid-19 virus spread across the globe," noted Chair Richard Curling.
During these unprecedented times, Montanaro said it has been busy speaking to its investee companies to understand how they are being impacted by the collapse in global economic activity. In particular, the company said it has been looking closely at balance sheet risk and companies' access to credit.
"It is in times like these that we are reminded of the importance of the manager's unwavering emphasis on investing in high quality businesses with strong balance sheets. These are the companies that will survive and should emerge stronger from the storm," added Curling.
By Evelina Grecenko; [email protected]
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