Montanaro European Smaller Companies has published results for the year ended 31 March 2025. The NAV return lagged that of the MSCI Europe ex-UK SmallCap Index benchmark, returning -1.1% to the index’x 1.3%. However, discount narrowing (from 13.7% to 8.3%) meant that shareholders got a return of 5.1%.
During the year, the company bought back 9,502,921 shares, adding 0.45% to the NAV.
The revenue return for the period was 1.5p, from that the directors have declared dividends totalling 1.26p (up 12% on last year).
On 27 March, the trust announced a series of measures aimed at strengthening the investment proposition and deliver value for all shareholders – which you can read here.
Extracts from the manager’s report
The largest positive contributors over the period were:
Plejd is a Swedish developer of smart lighting, heating and other electrical products, which are sold to professional electricians. The company had an excellent year, with operating profit more than doubling thanks to both significant revenue growth and a well invested cost base that allowed for significant operating leverage.
VZ Holding is a Swiss independent financial consultant and wealth manager. The company was a top three contributor last year too – another demonstration that “running your winners” is often a fruitful strategy. The company had a good year thanks to continued demand for financial advice and an independent approach which continues to appeal to customers.
MTU Aero Engines manufacture and maintain aircraft engines and components. The company successfully improved efficiency in the Geared Turbofan fleet management plan, while continuing to deliver growth elsewhere in the business.
Inevitably the year was not without some stock price declines as well. The largest detractors were:
Tecan develop automated instruments and solutions that are used in laboratories. The company endured a difficult year as biopharma companies pulled back spending and research budgets in the US in particular came under threat from the new administration.
Bachem is a leading manufacturer of peptides. The share price declined as the timing for the new manufacturing facility (and, therefore, the associated revenues) was pushed out.
IMCD is one of the world’s largest specialty chemical distributors. Hopes of a volume recovery in 2024 proved to be premature, with investors de-rating the stock through the year.
MTE : Montanaro European shareholders benefit from discount narrowing
