Montanaro European Smaller Companies delivers strong interim results

Montanaro European Smaller Companies Trust - Quality businesses at sensible price

Montanaro European Smaller Companies delivers strong interim results – Montanaro European Smaller Companies has reported results covering the six months ended 30 September 2019. Over the period, the NAV rose by 8.2% to 1,094.1p per share, outperforming its benchmark MSCI Europe SmallCap ex UK index in the process, which rose by 4.7%. MTE’s discount narrowed from 12% to 6.5% as well, allowing the share price to rise by 14.9% over the the period (providing a total return of 15.7%).

Strategy has been successful despite lacklustre economic backdrop

Discussing MTE’s outlook, its chairman, R M Curling, said: “The last six months have seen a further deterioration of global economic growth indicators alongside rising geopolitical tensions. No-one knows if this will continue and how central banks and governments will react should it do so. Brexit remains a source of ongoing uncertainty. However, we are confident that your portfolio consists of some of the highest quality, growing companies in Europe. They continue to produce high returns on capital with solid balance sheets and good cash generation. The combination of resilient structural growth drivers and experienced management teams gives us confidence for the future. It is worth highlighting that, by focusing on such companies, shareholders have received strong absolute and relative returns over several years despite typically lacklustre global economic conditions.”

MTE: Montanaro European Smaller Companies delivers strong interim results

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