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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Montanaro Uk Smaller Companies Investment Trust Plc | LSE:MTU | London | Ordinary Share | GB00BZ1H9L86 | ORD 2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.25 | 0.25% | 101.00 | 100.50 | 102.00 | 893,679 | 16:35:13 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Finance Services | -24.91M | -27.23M | -0.1627 | -6.19 | 168.64M |
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 --------- ----------------------- 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
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November 24, 2016 02:00 ET (07:00 GMT)
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