Miton UK Microcap has published its first full year report which covers the year ended 30 April 2016. Over this period the FTSE All-Share Index fell by 9.0%. In contrast the FTSE SmallCap (excluding Investment Companies) Index actually rose 1.0% in the same period while the FTSE AIM All-Share Index fell just 3.4%. The Investment Manager outperformed over the first period of operation with the Ordinary share NAV up 12.0% over the year. The C share NAV increased by 7.4% over the period from 19 February 2016 to 30 April 2016. The dividend income generated by the portfolio in the year has, as expected, been modest, and, after deducting the Trust’s running costs, the revenue per share amounts to 0.32p. The Board has recommended a final dividend of 0.14p per share.
They say that, generally, most holdings have performed well, although there are a few where share prices have fallen back subsequent to purchase. Stanley Gibbons Group, which has been setting up a new online exchange for stamps and coins, suffered integration issues which impeded the profitability of some of its regular auctions. Aureus Mining, a gold miner just coming into production, reported that its new operations were suspended due to some environmental contamination. Both of these holdings were sold in the period. In contrast, Pure Wafer and Alkane Energy were sold at a good profit following agreed bids. At the end of the period Penna Consulting (the second largest holding in the portfolio) also agreed to be acquired at a price around twice the original purchase price. Fulcrum Utility Services continued to perform well throughout the year, having grown its utilities installation operations. In addition, International Greetings continued to generate excellent cashflow from capex for productivity improvements over the last three years. This has driven additional sales at improving net margins.
MINI : Miton UK Microcap gets off to a good start