Montanaro UK Smaller Companies Investment Trust PLC ("MUSCIT'' or the "Company")
LEI: 213800UDDXXTXIF29P85
Half-Yearly Report for the six months to 30 September 2023
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 outperform 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, 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 2023, this was any company below £1.62 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 40% of total investments at the time of investment, with Board approval required for exposure above 35%.
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 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 a maximum of 25% of shareholders' funds. Gearing is used to enhance returns when the timing is considered appropriate.
The Company will not invest more than 10%, in aggregate, of the value of its total assets at the time of investment in other investment trusts or investment companies admitted to the Official List of the UK Listing Authority.
All material changes to the policy will require shareholder and FCA approval.
| Highlights for the six months to 30 September 2023
Results | | ||
| | As at 30 | As at 31 | |
| | September | March | |
| | 2023 | 2023 | |
| | (unaudited) | (audited) | % Change |
| Ordinary share price1 | 100.0p | 105.0p | -4.8 |
| Net asset value ("NAV") per Ordinary share2 | 110.5p | 114.5p | -3.5 |
| Discount to NAV2 | 9.5% | 8.3% | |
| NSCI3 | 7,431.8 | 7,589.3 | -2.1 |
| 1 LSE closing price. | | | |
| 2 Including accrued revenue. 3 Capital only. | | | |
| | As at | As at | |
| | 30 September | 31 March | |
| | 2023 | 2023 | |
| | (unaudited) | (audited) | % Change |
| Gross assets1 | £204.9m | £211.6m | -3.2 |
| Net assets | £184.9m | £191.6m | -3.5 |
| Market capitalisation | £167.4m | £175.7m | -4.7 |
| Net gearing employed2 | 7.6% | 4.8% | |
| Ongoing charges3 | 1.0% | 0.9% | |
| Portfolio turnover4 | 20.8% | 22.2% | |
1 Net assets, adding back borrowings.
2 Total debt, net of cash and equivalents, as a percentage of shareholders' funds.
3 Company's expenses (excluding interest payable) expressed as a percentage of its average daily net assets, annualised at the half year end date.
4 Calculated using the total purchases plus the sales proceeds divided by two as a percentage of the average total investments at fair value during the period.
| Performance as at 30 September 2023 | | |||||
|
Total Return Percentage |
6 months |
1 year |
3 year |
5 year |
10 year |
Since launch |
| Share Price* | -2.7 | 11.0 | 4.2 | 2.3 | 40.9 | 834.1 |
| NAV* | -3.4 | 8.4 | -5.7 | -6.6 | 32.5 | 787.1 |
| Benchmark** | 0.4 | 11.8 | 22.2 | 6.0 | 61.4 | 503.9 |
* Returns have been adjusted for dividends paid.
** The Benchmark is a composite index with the NSCI used since 1 April 2013. Sources: AIC, Morningstar Direct, Numis, Montanaro Asset Management Limited.
Capital Structure
As at 30 September 2023 and the date of this report, the Company had 167,379,790 Ordinary shares of 2p each in issue (none of which were held in treasury). See note 6 for further details. Holders of Ordinary shares have unrestricted voting rights of one vote per share at all general meetings of the Company.
Manager's Review
The optimism of the summer months was dashed towards the end of the half-year period. Rising bond yields were accompanied by similar style headwinds to those of 2022. UK SmallCap underperformed LargeCap by c.2% in the six-month period to 30 September 2023, while SmallCap Growth extended its underperformance vs Value by another 3% (taking the underperformance to a whopping 57% over three years). AIM, which had performed so poorly in 2022, lost another 9% and has now underperformed Main List SmallCap for 12 consecutive quarters.
It is difficult to overemphasise how challenging the past few years have been for our asset class. The Numis Smaller Companies (excluding investment companies) Index has lagged the broad UK market over the past 1, 3, 5 and 10 years. In other words, the "SmallCap Effect", which has been a major tailwind to investors' returns for the past 70 years, has been working in reverse for the past decade. This is a rare event: the last time this happened was in the late 1990s.
More recently, this underperformance has coincided with outflows from the asset class reaching parity with that witnessed after the Global Financial Crisis. According to the Investment Association, cumulative outflows from UK SmallCap Funds amounted to £2.1 billion since January 2022, almost in line with the £2.3 billion experienced in 2007-09. Several open-ended UK SmallCap Funds decided to wind up this year while some industry veterans have retired. In the investment trust space, wider discounts have prompted some consolidation.
Valuations for the asset class have returned to levels last seen during the Global Financial Crisis, which marked the start of the recent Great Bull Market. At 13.9x, the 8-year Shiller P/E for UK SmallCap is rapidly heading towards the all-time lows of August 1992 (10.9x), March 2003 (11.6x), February 2009 (11.8x) - which would suggest 15% to 20% maximum downside from current levels. While the past is of course not guaranteed to repeat, history tells us that when valuations have previously reached current levels, returns over the subsequent 5 years for SmallCap were between 100% and 150%. Investors should perhaps take note.
Ironically, amidst all the doom and gloom, Smaller Companies - quality ones in particular - have resurfaced on the radar of trade buyers and private equity fund managers. M&A activity is quietly making a comeback. MUSCIT lost Dechra Pharmaceuticals (at a premium of 47%) to a bid by a consortium of investors before the Summer and Ergomed received a bid (at a 30% premium) in September 2023. Although we never invest in a business in the hope that it will be taken over, we would not be surprised to see more bids in the portfolio over the coming months.
MUSCIT is home to quality companies with strong balance sheets (54% have net cash) and a track record of solid earnings growth, all at what we consider to be an attractive valuation. The portfolio is currently trading on 15.6 forward earnings, below the long-term average. Moreover, MUSCIT itself is trading on a discount of 12.8% compared to a premium of 3% just under a year ago. If inflation starts to recede, the potential for a significant re-rating of both the portfolio and the share price is clearly there.
Charles Montanaro, Montanaro Asset Management Limited
23 November 2023
| Twenty Largest Holdings as at 30 September 2023 | | ||||
| | | | | % of portfolio | % of portfolio |
|
Holding |
Sector |
Value £'000 |
Market cap £m | 30 September 2023 | 31 March 2023 |
| 4imprint | Media | 13,125 | 1,479 | 6.6 | 7.2 |
| Games Workshop | Leisure Goods | 10,570 | 3,476 | 5.3 | 4.8 |
| Diploma | Industrial Support Services | 9,012 | 4,026 | 4.5 | 3.9 |
| Kainos | Software and Computer Services | 8,618 | 1,438 | 4.3 | 3.8 |
| Ergomed | Pharmaceuticals and Biotechnology | 8,052 | 685 | 4.0 | 3.1 |
| Greggs | Personal Care, Drug and Grocery Stores | 7,956 | 2,503 | 4.0 | 4.5 |
| Marshalls | Construction and Materials | 7,584 | 639 | 3.8 | 3.5 |
| discoverIE | Electronic and Electrical Equipment | 7,458 | 652 | 3.8 | 3.8 |
| Porvair | Industrial Engineering | 7,250 | 269 | 3.6 | 3.0 |
| Clarkson | Industrial Transportation | 6,838 | 839 | 3.4 | 3.9 |
| Big Yellow | Real Estate Investment Trusts | 6,804 | 1,841 | 3.4 | 3.6 |
| Boku | Industrial Support Services | 6,480 | 426 | 3.3 | 2.8 |
| XPS Pensions | Financial Services | 6,338 | 405 | 3.2 | 2.0 |
| Cranswick | Food Producers | 6,216 | 1,914 | 3.1 | 2.6 |
| Tracsis | Software and Computer Services | 6,000 | 240 | 3.0 | 3.5 |
| Cerillion | Software and Computer Services | 5,895 | 386 | 3.0 | 2.6 |
| Hilton Food | Food Packaging | 5,378 | 642 | 2.7 | 2.1 |
| XP Power | Industrial Support Services | 5,310 | 466 | 2.7 | 2.0 |
| Bytes Technology | Software and Computer Services | 4,988 | 1,195 | 2.5 | - |
| Sthree | Specialist Recruitment | 4,675 | 504 | 2.4 | 2.1 |
| Twenty Largest Holdings | | 144,547 |
| 72.6 | |
Interim Management Report and Responsibility Statement
Interim Management Report
On 21 November 2023 the Company announced that Yuuichiro Nakajima had been appointed to the Board, effective 1 January 2024. The Board is delighted that Yuuichiro has agreed to join the Board and looks forward to benefitting from his extensive experience, knowledge and recent involvement in the investment trust sector.
The other 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 above.
Statement of Principal Risks and Uncertainties:
The principal risks facing the Company are unchanged since the date of the Annual Report and Accounts for the year ended 31 March 2023 and continue to be as set out in that report on pages 13 to 16 and pages 59 to 61. These include, but are not limited to, discount management, poor investment performance, risk oversight, gearing, key man risk, operational risk, cyber risk, administrator, Environmental, Social and Governance and breach of regulation, including the impact of pandemics and other unforeseeable events on the Company's business operations. The principal financial risks include, but are not limited to, market risk, market price risk, foreign currency risk, interest rate risk, liquidity risk, credit risk and gearing levels. The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remaining six months of the Company's financial year.
Related party transactions:
Related party transactions are disclosed in note 9 below. There have been no material changes in the related party transactions described in the last annual report.
Going concern:
As stated in note 7 to the condensed financial statements, the Directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.
Responsibility Statement
The Directors confirm that to the best of their knowledge:
· The condensed set of financial statements which has not been reviewed or 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 4.2.8R 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 and the above Responsibility Statement was signed on its behalf by:
Arthur Copple Chairman
23 November 2023
Condensed Income Statement (unaudited)
for the six months to 30 September 2023
| |
Six months to 30 September 2023 £'000
|
Six months to 30 September 2022 £'000 |
Year to 31 March 2023 (audited) £'000 | ||||||
| | Revenue | Capital | Total | Revenue | Capital | Total | Revenue | Capital | Total |
|
Losses on investments at fair value | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| through profit or loss | - | (6,033) | (6,033) | - | (49,841) | (49,841) | - | (29,891) | (29,891) |
| Dividends and interest | 4,325 | - | 4,325 | 2,909 | - | 2,909 | 4,986 | - | 4,986 |
| Management fee | (152) | (457) | (609) | (144) | (433) | (577) | (287) | (858) | (1,145) |
| Other expenses | (341) | - | (341) | (304) | - | (304) | (643) | - | (643) |
| Return/(loss) before finance costs and | 3,832 | (6,490) | (2,658) | 2,461 | (50,274) | (47,813) | 4,056 | (30,749) | (26,693) |
| taxation Interest payable and similar charges |
(69) |
(206) |
(275) |
(67) |
(201) |
(268) |
(134) |
(402) |
(536) |
| Return/(loss) before taxation | 3,763 | (6,696) | (2,933) | 2,394 | (50,475) | (48,081) | 3,922 | (31,151) | (27,229) |
| Taxation (note 3) | - | - | - | - | - | - | - | - | - |
| Net return/(loss) after taxation | 3,763 | (6,696) | (2,933) | 2,394 | (50,475) | (48,081) | 3,922 | (31,151) | (27,229) |
|
|
|
|
| | | | | | |
| Return/(loss) per Ordinary share: | 2.25p | (4.00p) | (1.75p) | 1.43p | (30.16p) | (28.73p) | 2.34p | (18.61p) | (16.27p) |
The total column of this statement is the Statement of Total Comprehensive Income of the Company prepared in accordance with Financial Reporting Standards ("FRS 102"). The supplementary revenue return and capital return columns are prepared in accordance with the Statement of Recommended Practice ("AIC SORP").
All revenue and capital items in the above statement derive from continuing operations.
There are no items of other comprehensive income and therefore the net return after taxation is also the total comprehensive income for the period. No operations were acquired or discontinued in the period.
| Condensed Statement of Changes in Equity for the six months to 30 September 2023 | | ||||||
| | Called-up share | Share premium | Capital redemption |
Special |
Capital | Distributable revenue | Total equity shareholders' |
| | capital | account | reserve | reserve* | reserve** | reserve** | funds |
| 6 months to 30 September 2023 (unaudited) | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| As at 31 March 2023 | 3,348 | 19,307 | 1,362 | 4,642 | 162,418 | 572 | 191,649 |
| Total comprehensive income: Fair value movement of investments |
- |
- |
- |
- |
(6,033) |
- |
(6,033) |
| Costs allocated to capital | - | - | - | - | (663) | - | (663) |
| Net revenue for the period | - | - | - | - | - | 3,763 | 3,763 |
| | - | - | - | - | (6,696) | 3,763 | (2,933) |
| Dividends paid in the period (note 4) | - | - | - | - | (1,353) | (2,463) | (3,816) |
| As at 30 September 2023 | 3,348 | 19,307 | 1,362 | 4,642 | 154,369 | 1,872 | 184,900 |
|
6 months to 30 September 2022 (unaudited) | | | | | | | |
| As at 31 March 2022 | 3,348 | 19,307 | 1,362 | 4,642 | 197,758 | 378 | 226,795 |
| Total comprehensive income: |
|
|
|
|
|
|
|
| Fair value movement of investments | - | - | - | - | (49,841) | - | (49,841) |
| Costs allocated to capital | - | - | - | - | (634) | - | (634) |
| Net revenue for the period | - | - | - | - | - | 2,394 | 2,394 |
| | - | - | - | - | (50,475) | 2,394 | (48,081) |
| Dividends paid in the period | - | - | - | - | (2,408) | (1,793) | (4,201) |
| As at 30 September 2022 | 3,348 | 19,307 | 1,362 | 4,642 | 144,875 | 979 | 174,513 |
|
Year to 31 March 2023 (audited) | | | | | | | |
| As at 31 March 2022 | 3,348 | 19,307 | 1,362 | 4,642 | 197,758 | 378 | 226,795 |
| Total comprehensive income: | | | | | | | |
| Fair value movement of investments | - | - | - | - | (29,891) | - | (29,891) |
| Costs allocated to capital | - | - | - | - | (1,260) | - | (1,260) |
| Net revenue for the year | - | - | - | - | - | 3,922 | 3,922 |
| | - | - | - | - | (31,151) | 3,922 | (27,229) |
| Dividends paid in the year (note 4) | - | - | - | - | (4,189) | (3,728) | (7,917) |
| As at 31 March 2023 | 3,348 | 19,307 | 1,362 | 4,642 | 162,418 | 572 | 191,649 |
* The special reserve is used for the repurchase of the Company's own shares.
** These reserves are distributable, excluding any unrealised capital reserve.
| Condensed Balance Sheet (unaudited) as at 30 September 2023 |
As at 30 September |
As at 30 September |
As at 31 March |
| | 2023 £'000 (unaudited) | 2022 £'000 (unaudited) | 2023 £'000 (audited) |
| Fixed assets Investments at fair value (note 5) |
199,033 |
182,557 |
200,777 |
| Current assets Debtors |
520 |
348 |
352 |
| Cash at bank | 5,902 | 11,906 | 10,856 |
| | 6,422 | 12,254 | 11,208 |
|
Creditors: amounts falling due within one year |
|
|
|
| Other creditors | (555) | (298) | (336) |
| | (555) | (298) | (336) |
| Net current assets | 5,867 | 11,956 | 10,872 |
| Total assets less current liabilities | 204,900 | 194,513 | 211,649 |
|
Creditors: amounts falling due after more than one year Fixed rate term loan |
(20,000) |
(20,000) |
(20,000) |
| Net assets | 184,900 | 174,513 | 191,649 |
|
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 | 154,369 | 144,875 | 162,418 |
| Distributable revenue reserve | 1,872 | 979 | 572 |
| Total equity shareholders' funds | 184,900 | 174,513 | 191,649 |
|
Net asset value per Ordinary share |
110.47p |
104.26p |
114.50p |
| | | | |
| Number of Ordinary shares in issue | 167,379,790 | 167,379,790 | 167,379,790 |
Notes to the Financial Statements
As at 30 September 2023
1 Financial Information
The condensed financial statements for the six months ended 30 September 2023 comprise the statements together with the related notes. The Company has adopted 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 and updated in June 2022. The condensed financial statements for the six months to 30 September 2023 have been prepared in accordance with FRS 104 Interim Financial Reporting. 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 2023.
Following the adoption of FRS 102, the Company elected not to present the statement of cash flows per section 7.1.A.
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 2023 and 30 September 2022 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 2023 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 on an accruals basis.
3 Tax Credit/Charge on Ordinary Activities
The tax charge for the six months to 30 September 2023 comprises irrecoverable withholding tax suffered of £nil (six months to 30 September 2022: £nil; year to 31 March 2023: £nil).
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 to 30 September |
Year to 31 March |
| | 2023 | 2023 |
| | £'000 | £'000 |
| | (unaudited) | (audited) |
| In respect of the previous period: | | |
| Paid | | |
| 2022 fourth quarter dividend of 1.36p per Ordinary share | - | 2,276 |
| 2023 fourth quarter dividend of 1.15p per Ordinary share | 1,925 | - |
| In respect of the period under review: | | |
| Paid | | |
| 2023 first quarter dividend of 1.15p per Ordinary share | - | 1,925 |
| 2023 second quarter dividend of 1.04p per Ordinary share | - | 1,741 |
| 2023 third quarter dividend of 1.18p per Ordinary share | - | 1,975 |
| 2024 first quarter dividend of 1.13p per Ordinary share | 1,891 | - |
| | 3,816 | 7,917 |
| Declared | | |
| 2023 fourth quarter dividend of 1.15p per Ordinary share | - | 1,925 |
| 2024 second quarter dividend of 1.10p per Ordinary share | 1,841 | - |
The quarters referred to in the table above relate to the Company's financial year, which ends on 31 March.
5 Fair Value Hierarchy
For investments actively traded in organised financial markets, fair value is generally determined by reference to quoted market bid prices or closing prices for SETS (LSE's electronic trading service) stocks sourced from the LSE on the balance sheet date, without adjustment for transaction costs necessary to realise the asset.
In accordance with FRS 102, the Company must disclose the fair value hierarchy of financial instruments. The fair value hierarchy consists of the following three levels:
· level 1 - The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date;
· level 2 - Inputs other than quoted prices included within 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 3 - Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
The table below sets out fair value measurements of financial assets in accordance with the FRS 102 fair value hierarchy system:
| | 30 September 2023 | 31 March 2023 | ||||
| | (unaudited) | (audited) | ||||
| | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Equity investments | 199,033 | - | 199,033 | 200,777 | - | 200,777 |
| | 199,033 | - | 199,033 | 200,777 | - | 200,777 |
There were no level 2 or 3 investments held during the period.
6 Share Capital
| | 30 September 2023 | 31 March 2023 | ||
| | (unaudited) | (audited) | ||
| | Number of shares | £'000 | Number of shares | £'000 |
| Allotted, called-up and fully paid: Ordinary shares of 2p each (31 March 2023: 2p each) Balance at beginning of period |
167,379,790 |
3,348 |
167,379,790 |
3,348 |
| Balance at end of period | 167,379,790 | 3,348 | 167,379,790 | 3,348 |
7 Going Concern
The Company has adequate financial resources to meet its investment commitments and its day to day working capital requirements, 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.
8 Segmental Reporting
The Company has one reportable segment, being investing primarily in a portfolio of quoted UK small companies.
9 Related Party Transactions
Under the Listing Rules, the Manager is regarded as a related party and deemed to be Key Management Personnel of the Company. 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 2023.
The amount charged by the Manager during the period was £609,000 (six months to 30 September 2022:
£577,000; year to 31 March 2023: £1,145,000). At 30 September 2023, the amount due to the Manager, included in creditors, was £260,000. The management fee is 0.50% per annum of the gross assets of the Company, plus £50,000 per annum in respect of acting as the AIFM.
Directors' Emoluments
At 30 September 2023, the Board consisted of three Non-Executive Directors. All Directors are considered to be independent of the Manager. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £41,500, the Chairman of the Audit and Management Engagement Committee receives an annual fee of £33,500 and all other Non-Executive Directors receive £28,500 per annum.
At 30 September 2023, the amount outstanding in respect of Directors' fees was £949 (31 March 2023:
£nil).
At 30 September 2023, the interests of the Directors in the ordinary shares of the Company were as follows:
| | As at | As at | As at |
| 23 November 2023 | 30 September 2023 | 31 March 2023 | |
| No. of shares | No. of shares | No. of shares | |
| Arthur Copple1 | 225,000 | 175,000 | 125,000 |
| Catriona Hoare | 9,039 | 9,039 | 9,039 |
| Barbara Powley2 | 12,875 | 12,719 | 12,449 |
1 Includes 25,000 shares held by Mrs Copple.
2 A further 156 shares were acquired by Barbara Powley on 10 November 2023 as a result of dividend reinvestment.
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
Directors
Arthur Copple (Chairman) Catriona Hoare
Barbara Powley (Chairman of the Audit & Management Engagement Committee and Senior Independent Director)
Principal Advisers
AIFM and Investment Manager
MONTANARO ASSET MANAGEMENT LIMITED
53 Threadneedle Street London EC2R 8AR www.montanaro.co.uk enquiries@montanaro.co.uk
Depositary
THE BANK OF NEW YORK MELLON (INTERNATIONAL) LIMITED
160 Queen Victoria Street London EC4V 4LA
Company Secretary and Administrator
JUNIPER PARTNERS LIMITED
28 Walker Street Edinburgh EH3 7HR Tel: 0131 378 0500
Cosec@junipartners.com
Custodian
BANK OF NEW YORK MELLON SA/NV
160 Queen Victoria Street London EC4V 4LA
Registered Office
53 Threadneedle Street
London EC2R 8AR
Banker
ING BANK N.V
60 London Wall London EC2M 5TQ
Registrar
LINK GROUP
Central Square,
29 Wellington Street Leeds LS1 4DL
Auditor
BDO LLP
55 Baker Street London W1U 7EU
Broker
CAVENDISH
One Bartholomew Close London EC1A 7BL
Lawyers
GOWLING WLG
4 More London Riverside London SE1 2AU
Sources of Further Information
Information on the Company, including this Half-Yearly Report is available on the Company's website: https://montanaro.co.uk/trust/montanaro-uk-smaller-companies-investment-trust/
Key Dates
| February, May, August and November | Quarterly dividends payable |
| 31 March | Company year end |
| June | Annual results |
| July | Annual General Meeting |
| 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's shares are fully eligible for inclusion in ISAs.
AIC
The Company is a member of the AIC.
NMPI Status
The Company currently conducts its affairs so that the shares it issues can be recommended by financial advisers to retail investors in accordance with the FCA's rules in relation to non-mainstream investment products. It is intended to continue to do so for the foreseeable future. The Company's securities are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are securities in a UK listed investment trust.
Registrar enquiries
The register for the Ordinary Shares is maintained by Link Group. In the event of queries regarding your holding, please contact the registrar. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. We are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales or alternatively at shareholderenquiries@linkgroup.co.uk.
Changes of name must be notified in writing to the registrar, whose address is: Link Group, Shareholder Services Department, The Registry, 10th Floor, Central Square, 29 Wellington Street, Leeds LS1 4DL. A change of address can be updated online via www.signalshares.com.
Warning to Shareholders - Beware of Share Fraud
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment. Investment scams are often sophisticated and difficult to spot.
How to avoid investment scams:
• Reject unexpected offers: Scammers usually cold call, but contact can also come by email, post, word of mouth or at a seminar. If you've been offered an investment out of the blue, chances are it's a high risk investment or a scam.
• Check the FCA Warning List: Use the FCA Warning List to check the risks of a potential investment - you can also search to see if the firm is known to be operating without FCA authorisation.
• Get impartial advice: Get impartial advice before investing - don't use an adviser from the firm that contacted you.
You can report a firm or scam to the Financial Conduct Authority on 0800 111 6768 or through www.fca.org.uk/scamsmart
If you've lost money in a scam, contact Action Fraud on 0300 123 2040 or www.actionfraud.police.uk
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.
For further information, please contact: Montanaro Asset Management Limited Tel: 020 7448 8600
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