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European Smaller Companies Trust PLC
Quarterly Report • Mar 20, 2025
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Quarterly Report
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The European Smaller Companies Trust PLC
Summary for the half-year ended 31 December 2024
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The European Smaller Companies Trust PLC
process (ECF).
TO BE UPDATED 201 Bishopsgate London EC2M 3AE
A N Name Number Road Town County Postcode
Portfolio information
Ten largest investments at 31 December 2024
Geographical area
Geographic exposure
As a percentage of the portfolio excluding cash
Germany 20.1 20.2 France 13.0 12.7 Sweden 11.5 10.9 Netherlands 11.0 11.9 Switzerland 8.7 8.2 Spain 7.0 4.9 Italy 4.3 5.3 Greece 4.0 3.1 Norway 3.9 2.9 Belgium 3.7 5.0 Denmark 3.3 4.0 United Kingdom 2.3 1.7 Ireland 2.1 2.2 Portugal 1.8 2.4 Finland 1.7 1.7 Austria 1.0 1.6 Faroe Islands 0.6 0.5 Cyprus - 0.8
31 Dec 24 % 30 Jun 24 %
Van Lanschot Kempen Financials Netherlands 25,355 3.1 TKH Industrials Netherlands 20,641 2.5 IG Group Financials United Kingdom 18,559 2.3 KSB Industrials Germany 15,534 1.9 SUESS MicroTec Technology Germany 14,323 1.8 Criteo Technology France 14,238 1.7 Alzchem Basic Materials Germany 14,172 1.7 eDreams ODIGEO Consumer Discretionary Spain 13,383 1.6 Renewi Utilities Netherlands 13,128 1.6 Stroeer Consumer Discretionary Germany 12,001 1.5 10 largest 161,334 19.7
Valuation £'000
% of portfolio
Company Sector
Financial summary
Half-year ended 31 Dec 2024 (unaudited)
Capital return £'000
Investment income 5,535 - 5,535 6,444 25,453 Other income 19 - 19 11 22
loss - (59,555) (59,555) 31,881 72,040 Total income/(loss) 5,554 (59,555) (54,001) 38,336 97,515
taxation (1,850) (4,043) (5,893) (5,434) (12,617)
total comprehensive income 3,704 (63,598) (59,894) 32,902 84,898
and diluted 0.94p (16.10p) (15.16p) 8.21p 21.22p
through profit or loss 819,421 857,284 883,842 Current assets 5,438 4,523 7,819 Current liabilities (105,514) (104,031) (93,067) Net assets 719,345 757,776 798,594
share - basic and diluted 182.66p 189.29p 201.01p
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
31 December 2024 (unaudited) £'000
31 December 2023 (unaudited) £'000
Total return £'000
Revenue return £'000
Half-year ended 31 Dec 2023 (unaudited)
Total return £'000
Year ended 30 June 2024 (audited)
Total return £'000
30 June 2024 (audited) £'000
Extract from the Statement of Comprehensive Income
(Losses)/gains on investments held at fair value through profit or
Expenses, finance costs and
Profit/(loss) for the period and
Return per ordinary share - basic
Extract from the Balance Sheet
Investments held at fair value
Net asset value per ordinary
Dividends
on 3 April 2025. Share capital Sector exposure
As a percentage of the portfolio excluding cash
Industrials 30.6 36.3 Consumer Discretionary 18.3 17.1 Financials 15.7 13.6 Technology 15.4 13.3 Basic Materials 5.6 5.0 Health Care 3.7 3.1 Consumer Staples 3.2 3.4 Real Estate 3.1 3.7 Utilities 2.2 2.0 Energy 2.1 2.0 Telecommunications 0.1 0.5
31 Dec 24 % 30 Jun 24 %
Investment Objective
The Company seeks capital growth by investing in smaller and medium sized companies which are quoted, domiciled, listed or have operations in Europe (ex UK).
Front cover:
The initial six months of the financial year concluding on 31 December 2024 have not been a period of exceptional performance for the Company, which underperformed its benchmark by 3.7%. This shortfall can be attributed to several factors, including suboptimal stock selection, a disproportionate focus on companies at the lower end of the market capitalisation spectrum, and an excessive allocation towards economically-sensitive firms, notably within the industrial sector. Initially, the European economy seemed poised for a resurgence. However, political uncertainties in France, a lack of decisive action in Germany, a subdued recovery in China, and a halt in corporate decision-making in anticipation of the US Presidential election collectively contributed to a deteriorating global economic landscape. Performance was negatively impacted by several holdings. DFDS, a Danish ferry operator, experienced performance setbacks due to escalating competition in the Mediterranean. TKH, a Dutch conglomerate specialising in industrial automation, vision technology, and cable manufacturing, reported lacklustre results, particularly with the delayed operational ramp-up of its new subsea cable facility. Mersen, a French electrical technology company, encountered uninspiring results from its solar power and silicon semiconductor divisions. Additionally, our technology sector exposure was detrimental during this period, with German semiconductor equipment manufacturer SUESS MicroTec and Swiss positioning technology firm u-blox facing challenges, including customer destocking. Conversely, positive performance contributions emerged from select investments. IG Group, a UK online trading platform, demonstrated exceptional value, prompting a rare investment by the Company in UK-listed stocks, largely due to its significant capital return to shareholders. R&S, a Swiss manufacturer of transformers, benefited from the critical need for electrical grid investments across the developed world. Other notable contributions included Dutch wealth manager Van Lanschot, Spanish online travel company eDreams ODIGEO, and Renewi, a UK-listed waste management firm with Dutch operations, which attracted a private equity bid. Strategic portfolio adjustments were made during this period. New investments included Cenergy, a Greek cable and steel pipe manufacturer expanding into the US market, and Mycronic, a Swedish electronic production equipment manufacturer, following strong demand for its semiconductor equipment. Additionally, investments in Bankinter, a Spanish bank, and Aixtron, a German
The start to my tenure as your Chairman has certainly been memorable. On 18 December 2024 the Company was requisitioned by Saba Capital Management, L.P. ('Saba') and asked to put resolutions to shareholders to replace the current, independent Board of Directors with
X x
Christopher Casey Chairman 26 February 2024
Performance highlights Chairman's Statement Fund Manager's Report
Interim dividend
growth in such an environment.
Outlook
15 years.
investment returns.
James Williams Chairman 19 March 2025
The Board is pleased to declare an interim dividend of 1.45p (2023: 1.45p) per ordinary share for the year ending 30 June 2025. This will be paid on 2 May 2025 to shareholders on the register at 4 April 2025.
We remain confident that the Company will be able to deliver a healthy dividend as the underlying portfolio companies continue to generate steady cash flows. We may, however, not achieve the significant dividend growth of recent years, particularly if the economy improves, as our fund management team would likely focus on capital
Europe remains home to the key enablers of the big structural growth trends; these small businesses provide the nuts and bolts of innovation, along with some fresh thinking to develop new solutions. Alongside this, the sector also remains very attractively valued and continues to trade at the widest discount in comparison to its European large cap counterparts than it has over the past
Falling interest rates, and the likelihood of further easing of monetary policy in 2025, combined with the robust labour market, bodes well. Smaller companies are often overlooked, even more so in a recessionary environment, leaving the space awash with exciting companies, some breaking ground in new areas, at very keen valuations. Our balanced investment strategy and 'valuation aware' discipline enables us to continuing finding strong
I am pleased to be able to report that shareholders made their views absolutely clear and all requisitioned resolutions were resoundingly defeated at the general meeting held on 5 February 2025. The Board is grateful for the overwhelming support from shareholders, which demonstrates confidence in the investment manager's ability to continue generating value for shareholders through disciplined, long-term investment in European
A second requisition was received and subsequently withdrawn while the Board engaged in constructive discussions with Saba. Those discussions remain ongoing, as indicated in the announcement made to the market on 14 March 2025. I will provide an update to
The NAV total return performance over the six months to 31 December 2024, was -7.5%, against the MSCI Europe ex UK Small Cap Index of -3.8%. The share price total return for the same period was -1.6%. This underperformance was the result of our overweight exposure to the industrial sector, as a handful of investee companies suffered substantial share price corrections. The Fund Manager details this more fully in his report. While this short-term underperformance is disappointing, returns over the long term remain strong. Over the five years to 31 December 2024, the NAV total return was 51.4% with the share price total return being 63.0%, against a benchmark total return of 27.0%.
The average discount over the period was 9.3%, closing at 5.8%. This compares with the AIC European Smaller Companies sector weighted average discount of 11.0%. During the period your Company introduced a policy of targeting a mid-single digit discount, in normal market
shareholders as soon as I am able to.
Discount management
conditions.
two individuals of Saba's choosing.
smaller companies.
Total return performance for the six months to 31 December 2024
Benchmark
-3.8%
Total return performance
201.01p
182.66p
NAV
-7.5
Average sector3
NAV per share 31 Dec 2024
30 Jun 2024
Average sector3
Small Cap Index
(including dividends reinvested and excluding transaction costs)
1 Net asset value ('NAV') per ordinary share total return
4 Share price total return using closing price Source: Morningstar Direct, Janus Henderson Investors
6 months %
3 The sector is the Association of Investment Companies ('AIC') European Smaller Companies
1 year %
Share price
31 Dec 2024
30 Jun 2024
178.40p
NAV -3.1 1.7 -16.7 31.3 164.7
share price -1.0 4.3 -17.4 31.5 174.5
NAV¹ -7.5 -1.0 -3.3 51.4 201.8 Benchmark index² -3.8 -1.1 -7.4 27.0 138.3
Share price4 -1.6 8.2 5.3 63.0 235.0
2 Euromoney Smaller European Companies ex UK Index up to 30 June 2022, thereafter the MSCI Europe ex UK
3 years %
172.00p
5 years %
Share price
-1.6%
10 years %
Performance
semiconductor equipment manufacturer, were made based on their growth potential and strategic positioning. Conversely, positions in Theon, Cadeler, Xior Student Housing, and Alimak were divested due to various strategic considerations, including sector exposure
Despite the current economic and political uncertainties, the outlook remains cautiously optimistic. The recent German election has infused optimism across Europe, with the new CDU Chancellor's aggressive agenda potentially rejuvenating German equities—a market where we are significantly overweight. Additionally, potential geopolitical developments, stimulus effects in China, and attractive valuations in the European small-cap space present compelling investment opportunities. Our portfolio is strategically positioned with companies trading
optimisation and valuation concerns.
at significant discounts to their intrinsic value, underscoring our commitment to maximising capital growth through judicious investment selection.
Ollie Beckett, Rory Stokes and Julia Scheufler
19 March 2025
ZEISS
Holographic transparent display (Hüber Window Systems)
Percentage of portfolio: 0.46% Geographical area: Germany Manufacturer of optical systems and optoelectronics
This report contains material extracted from the unaudited half-year results of the Company for the six months ended 31 December 2024. The unabridged results for the half-year are available on the Company's website:
www.europeansmallercompaniestrust.com
Performance highlights Chairman's Statement Fund Manager's Report
Total return performance for the six months to 31 December 2024
The start to my tenure as your Chairman has certainly been memorable. On 18 December 2024 the Company was requisitioned by Saba Capital Management, L.P. ('Saba') and asked to put resolutions to shareholders to replace the current, independent Board of Directors with
X x
Christopher Casey Chairman 26 February 2024
Interim dividend
growth in such an environment.
Outlook
15 years.
investment returns.
James Williams Chairman 19 March 2025
The Board is pleased to declare an interim dividend of 1.45p (2023: 1.45p) per ordinary share for the year ending 30 June 2025. This will be paid on 2 May 2025 to shareholders on the register at 4 April 2025.
We remain confident that the Company will be able to deliver a healthy dividend as the underlying portfolio companies continue to generate steady cash flows. We may, however, not achieve the significant dividend growth of recent years, particularly if the economy improves, as our fund management team would likely focus on capital
Europe remains home to the key enablers of the big structural growth trends; these small businesses provide the nuts and bolts of innovation, along with some fresh thinking to develop new solutions. Alongside this, the sector also remains very attractively valued and continues to trade at the widest discount in comparison to its European large cap counterparts than it has over the past
Falling interest rates, and the likelihood of further easing of monetary policy in 2025, combined with the robust labour market, bodes well. Smaller companies are often overlooked, even more so in a recessionary environment, leaving the space awash with exciting companies, some breaking ground in new areas, at very keen valuations. Our balanced investment strategy and 'valuation aware' discipline enables us to continuing finding strong
I am pleased to be able to report that shareholders made their views absolutely clear and all requisitioned resolutions were resoundingly defeated at the general meeting held on 5 February 2025. The Board is grateful for the overwhelming support from shareholders, which demonstrates confidence in the investment manager's ability to continue generating value for shareholders through disciplined, long-term investment in European
A second requisition was received and subsequently withdrawn while the Board engaged in constructive discussions with Saba. Those discussions remain ongoing, as indicated in the announcement made to the market on 14 March 2025. I will provide an update to
The NAV total return performance over the six months to 31 December 2024, was -7.5%, against the MSCI Europe ex UK Small Cap Index of -3.8%. The share price total return for the same period was -1.6%. This underperformance was the result of our overweight exposure to the industrial sector, as a handful of investee companies suffered substantial share price corrections. The Fund Manager details this more fully in his report. While this short-term underperformance is disappointing, returns over the long term remain strong. Over the five years to 31 December 2024, the NAV total return was 51.4% with the share price total return being 63.0%, against a benchmark total return of 27.0%.
The average discount over the period was 9.3%, closing at 5.8%. This compares with the AIC European Smaller Companies sector weighted average discount of 11.0%. During the period your Company introduced a policy of targeting a mid-single digit discount, in normal market
shareholders as soon as I am able to.
Discount management
conditions.
two individuals of Saba's choosing.
smaller companies.
Performance
The initial six months of the financial year concluding on 31 December 2024 have not been a period of exceptional performance for the Company, which underperformed its benchmark by 3.7%. This shortfall can be attributed to several factors, including suboptimal stock selection, a disproportionate focus on companies at the lower end of the market capitalisation spectrum, and an excessive allocation towards economically-sensitive firms, notably within the industrial sector. Initially, the European economy seemed poised for a resurgence. However, political uncertainties in France, a lack of decisive action in Germany, a subdued recovery in China, and a halt in corporate decision-making in anticipation of the US Presidential election collectively contributed to a deteriorating global economic landscape. Performance was negatively impacted by several holdings. DFDS, a Danish ferry operator, experienced performance setbacks due to escalating competition in the Mediterranean. TKH, a Dutch conglomerate specialising in industrial automation, vision technology, and cable manufacturing, reported lacklustre results, particularly with the delayed operational ramp-up of its new subsea cable facility. Mersen, a French electrical technology company, encountered uninspiring results from its solar power and silicon semiconductor divisions. Additionally, our technology sector exposure was detrimental during this period, with German semiconductor equipment manufacturer SUESS MicroTec and Swiss positioning technology firm u-blox facing challenges, including customer destocking. Conversely, positive performance contributions emerged from select investments. IG Group, a UK online trading platform, demonstrated exceptional value, prompting a rare investment by the Company in UK-listed stocks, largely due to its significant capital return to shareholders. R&S, a Swiss manufacturer of transformers, benefited from the critical need for electrical grid investments across the developed world. Other notable contributions included Dutch wealth manager Van Lanschot, Spanish online travel company eDreams ODIGEO, and Renewi, a UK-listed waste management firm with Dutch operations, which attracted a private equity bid. Strategic portfolio adjustments were made during this period. New investments included Cenergy, a Greek cable and steel pipe manufacturer expanding into the US market, and Mycronic, a Swedish electronic production equipment manufacturer, following strong demand for its semiconductor equipment. Additionally, investments in Bankinter, a Spanish bank, and Aixtron, a German
semiconductor equipment manufacturer, were made based on their growth potential and strategic positioning. Conversely, positions in Theon, Cadeler, Xior Student Housing, and Alimak were divested due to various strategic considerations, including sector exposure
Despite the current economic and political uncertainties, the outlook remains cautiously optimistic. The recent German election has infused optimism across Europe, with the new CDU Chancellor's aggressive agenda potentially rejuvenating German equities—a market where we are significantly overweight. Additionally, potential geopolitical developments, stimulus effects in China, and attractive valuations in the European small-cap space present compelling investment opportunities. Our portfolio is strategically positioned with companies trading
optimisation and valuation concerns.
at significant discounts to their intrinsic value, underscoring our commitment to maximising capital growth through judicious investment selection.
Ollie Beckett, Rory Stokes and Julia Scheufler
19 March 2025
Total return performance
Investment Objective
The European Smaller Companies Trust PLC
The Company seeks capital growth
by investing in smaller and medium
sized companies which are quoted,
domiciled, listed or have operations
in Europe (ex UK).
This report contains material extracted from the unaudited half-year results of the Company for the six months ended 31 December 2024. The unabridged results for the half-year are available on the Company's website:
Front cover:
ZEISS
Holographic transparent display (Hüber Window Systems)
Percentage of portfolio: 0.46% Geographical area: Germany Manufacturer of optical systems and optoelectronics
www.europeansmallercompaniestrust.com
(including dividends reinvested and excluding transaction costs)
| 6 months % |
1 year % |
3 years % |
5 years % |
10 years % |
|
|---|---|---|---|---|---|
| NAV¹ | -7.5 | -1.0 | -3.3 | 51.4 | 201.8 |
| Benchmark index² | -3.8 | -1.1 | -7.4 | 27.0 | 138.3 |
| Average sector3 NAV |
-3.1 | 1.7 | -16.7 | 31.3 | 164.7 |
| Share price4 | -1.6 | 8.2 | 5.3 | 63.0 | 235.0 |
| Average sector3 share price |
-1.0 | 4.3 | -17.4 | 31.5 | 174.5 |
1 Net asset value ('NAV') per ordinary share total return
2 Euromoney Smaller European Companies ex UK Index up to 30 June 2022, thereafter the MSCI Europe ex UK Small Cap Index
3 The sector is the Association of Investment Companies ('AIC') European Smaller Companies
4 Share price total return using closing price
Source: Morningstar Direct, Janus Henderson Investors
Performance highlights Chairman's Statement Fund Manager's Report
Christopher Casey Chairman 26 February 2024
The start to my tenure as your Chairman has certainly been memorable. On 18 December 2024 the Company was requisitioned by Saba Capital Management, L.P. ('Saba') and asked to put resolutions to shareholders to replace the current, independent Board of Directors with two individuals of Saba's choosing.
X x
I am pleased to be able to report that shareholders made their views absolutely clear and all requisitioned resolutions were resoundingly defeated at the general meeting held on 5 February 2025. The Board is grateful for the overwhelming support from shareholders, which demonstrates confidence in the investment manager's ability to continue generating value for shareholders through disciplined, long-term investment in European smaller companies.
A second requisition was received and subsequently withdrawn while the Board engaged in constructive discussions with Saba. Those discussions remain ongoing, as indicated in the announcement made to the market on 14 March 2025. I will provide an update to shareholders as soon as I am able to.
Performance
Total return performance for the six months to 31 December 2024
Benchmark
-3.8%
Total return performance
201.01p
182.66p
NAV
-7.5
Average sector3
NAV per share 31 Dec 2024
30 Jun 2024
Average sector3
Small Cap Index
(including dividends reinvested and excluding transaction costs)
1 Net asset value ('NAV') per ordinary share total return
4 Share price total return using closing price Source: Morningstar Direct, Janus Henderson Investors
6 months %
3 The sector is the Association of Investment Companies ('AIC') European Smaller Companies
1 year %
Share price
31 Dec 2024
30 Jun 2024
178.40p
NAV -3.1 1.7 -16.7 31.3 164.7
share price -1.0 4.3 -17.4 31.5 174.5
NAV¹ -7.5 -1.0 -3.3 51.4 201.8 Benchmark index² -3.8 -1.1 -7.4 27.0 138.3
Share price4 -1.6 8.2 5.3 63.0 235.0
2 Euromoney Smaller European Companies ex UK Index up to 30 June 2022, thereafter the MSCI Europe ex UK
3 years %
172.00p
5 years %
Share price
-1.6%
10 years %
Investment Objective
The European Smaller Companies Trust PLC
The Company seeks capital growth
by investing in smaller and medium
sized companies which are quoted,
domiciled, listed or have operations
in Europe (ex UK).
This report contains material extracted from the unaudited half-year results of the Company for the six months ended 31 December 2024. The unabridged results for the half-year are available on the Company's website:
Front cover:
ZEISS
Holographic transparent display (Hüber Window Systems)
Percentage of portfolio: 0.46% Geographical area: Germany Manufacturer of optical systems and optoelectronics
www.europeansmallercompaniestrust.com
The NAV total return performance over the six months to 31 December 2024, was -7.5%, against the MSCI Europe ex UK Small Cap Index of -3.8%. The share price total return for the same period was -1.6%. This underperformance was the result of our overweight exposure to the industrial sector, as a handful of investee companies suffered substantial share price corrections. The Fund Manager details this more fully in his report.
While this short-term underperformance is disappointing, returns over the long term remain strong. Over the five years to 31 December 2024, the NAV total return was 51.4% with the share price total return being 63.0%, against a benchmark total return of 27.0%.
Discount management
The average discount over the period was 9.3%, closing at 5.8%. This compares with the AIC European Smaller Companies sector weighted average discount of 11.0%.
During the period your Company introduced a policy of targeting a mid-single digit discount, in normal market conditions.
Interim dividend
The Board is pleased to declare an interim dividend of 1.45p (2023: 1.45p) per ordinary share for the year ending 30 June 2025. This will be paid on 2 May 2025 to shareholders on the register at 4 April 2025.
The initial six months of the financial year concluding on 31 December 2024 have not been a period of exceptional performance for the Company, which underperformed its benchmark by 3.7%. This shortfall can be attributed to several factors, including suboptimal stock selection, a disproportionate focus on companies at the lower end of the market capitalisation spectrum, and an excessive allocation towards economically-sensitive firms, notably within the industrial sector. Initially, the European economy seemed poised for a resurgence. However, political uncertainties in France, a lack of decisive action in Germany, a subdued recovery in China, and a halt in corporate decision-making in anticipation of the US Presidential election collectively contributed to a deteriorating global economic landscape. Performance was negatively impacted by several holdings. DFDS, a Danish ferry operator, experienced performance setbacks due to escalating competition in the Mediterranean. TKH, a Dutch conglomerate specialising in industrial automation, vision technology, and cable manufacturing, reported lacklustre results, particularly with the delayed operational ramp-up of its new subsea cable facility. Mersen, a French electrical technology company, encountered uninspiring results from its solar power and silicon semiconductor divisions. Additionally, our technology sector exposure was detrimental during this period, with German semiconductor equipment manufacturer SUESS MicroTec and Swiss positioning technology firm u-blox facing challenges, including customer destocking. Conversely, positive performance contributions emerged from select investments. IG Group, a UK online trading platform, demonstrated exceptional value, prompting a rare investment by the Company in UK-listed stocks, largely due to its significant capital return to shareholders. R&S, a Swiss manufacturer of transformers, benefited from the critical need for electrical grid investments across the developed world. Other notable contributions included Dutch wealth manager Van Lanschot, Spanish online travel company eDreams ODIGEO, and Renewi, a UK-listed waste management firm with Dutch operations, which attracted a private equity bid. Strategic portfolio adjustments were made during this period. New investments included Cenergy, a Greek cable and steel pipe manufacturer expanding into the US market, and Mycronic, a Swedish electronic production equipment manufacturer, following strong demand for its semiconductor equipment. Additionally, investments in Bankinter, a Spanish bank, and Aixtron, a German
semiconductor equipment manufacturer, were made based on their growth potential and strategic positioning. Conversely, positions in Theon, Cadeler, Xior Student Housing, and Alimak were divested due to various strategic considerations, including sector exposure
Despite the current economic and political uncertainties, the outlook remains cautiously optimistic. The recent German election has infused optimism across Europe, with the new CDU Chancellor's aggressive agenda potentially rejuvenating German equities—a market where we are significantly overweight. Additionally, potential geopolitical developments, stimulus effects in China, and attractive valuations in the European small-cap space present compelling investment opportunities. Our portfolio is strategically positioned with companies trading
optimisation and valuation concerns.
at significant discounts to their intrinsic value, underscoring our commitment to maximising capital growth through judicious investment selection.
Ollie Beckett, Rory Stokes and Julia Scheufler
19 March 2025
We remain confident that the Company will be able to deliver a healthy dividend as the underlying portfolio companies continue to generate steady cash flows. We may, however, not achieve the significant dividend growth of recent years, particularly if the economy improves, as our fund management team would likely focus on capital growth in such an environment.
Outlook
Europe remains home to the key enablers of the big structural growth trends; these small businesses provide the nuts and bolts of innovation, along with some fresh thinking to develop new solutions. Alongside this, the sector also remains very attractively valued and continues to trade at the widest discount in comparison to its European large cap counterparts than it has over the past 15 years.
Falling interest rates, and the likelihood of further easing of monetary policy in 2025, combined with the robust labour market, bodes well. Smaller companies are often overlooked, even more so in a recessionary environment, leaving the space awash with exciting companies, some breaking ground in new areas, at very keen valuations. Our balanced investment strategy and 'valuation aware' discipline enables us to continuing finding strong investment returns.
James Williams Chairman 19 March 2025
Performance highlights Chairman's Statement Fund Manager's Report
The initial six months of the financial year concluding on 31 December 2024 have not been a period of exceptional performance for the Company, which underperformed its benchmark by 3.7%. This shortfall can be attributed to several factors, including suboptimal stock selection, a disproportionate focus on companies at the lower end of the market capitalisation spectrum, and an excessive allocation towards economically-sensitive firms, notably within the industrial sector. Initially, the European economy seemed poised for a resurgence. However, political uncertainties in France, a lack of decisive action in Germany, a subdued recovery in China, and a halt in corporate decision-making in anticipation of the US Presidential election collectively contributed to a deteriorating global economic landscape.
The start to my tenure as your Chairman has certainly been memorable. On 18 December 2024 the Company was requisitioned by Saba Capital Management, L.P. ('Saba') and asked to put resolutions to shareholders to replace the current, independent Board of Directors with
X x
Christopher Casey Chairman 26 February 2024
Interim dividend
growth in such an environment.
Outlook
15 years.
investment returns.
James Williams Chairman 19 March 2025
The Board is pleased to declare an interim dividend of 1.45p (2023: 1.45p) per ordinary share for the year ending 30 June 2025. This will be paid on 2 May 2025 to shareholders on the register at 4 April 2025.
We remain confident that the Company will be able to deliver a healthy dividend as the underlying portfolio companies continue to generate steady cash flows. We may, however, not achieve the significant dividend growth of recent years, particularly if the economy improves, as our fund management team would likely focus on capital
Europe remains home to the key enablers of the big structural growth trends; these small businesses provide the nuts and bolts of innovation, along with some fresh thinking to develop new solutions. Alongside this, the sector also remains very attractively valued and continues to trade at the widest discount in comparison to its European large cap counterparts than it has over the past
Falling interest rates, and the likelihood of further easing of monetary policy in 2025, combined with the robust labour market, bodes well. Smaller companies are often overlooked, even more so in a recessionary environment, leaving the space awash with exciting companies, some breaking ground in new areas, at very keen valuations. Our balanced investment strategy and 'valuation aware' discipline enables us to continuing finding strong
I am pleased to be able to report that shareholders made their views absolutely clear and all requisitioned resolutions were resoundingly defeated at the general meeting held on 5 February 2025. The Board is grateful for the overwhelming support from shareholders, which demonstrates confidence in the investment manager's ability to continue generating value for shareholders through disciplined, long-term investment in European
A second requisition was received and subsequently withdrawn while the Board engaged in constructive discussions with Saba. Those discussions remain ongoing, as indicated in the announcement made to the market on 14 March 2025. I will provide an update to
The NAV total return performance over the six months to 31 December 2024, was -7.5%, against the MSCI Europe ex UK Small Cap Index of -3.8%. The share price total return for the same period was -1.6%. This underperformance was the result of our overweight exposure to the industrial sector, as a handful of investee companies suffered substantial share price corrections. The Fund Manager details this more fully in his report. While this short-term underperformance is disappointing, returns over the long term remain strong. Over the five years to 31 December 2024, the NAV total return was 51.4% with the share price total return being 63.0%, against a benchmark total return of 27.0%.
The average discount over the period was 9.3%, closing at 5.8%. This compares with the AIC European Smaller Companies sector weighted average discount of 11.0%. During the period your Company introduced a policy of targeting a mid-single digit discount, in normal market
shareholders as soon as I am able to.
Discount management
conditions.
two individuals of Saba's choosing.
smaller companies.
Total return performance for the six months to 31 December 2024
Benchmark
-3.8%
Total return performance
201.01p
182.66p
NAV
-7.5
Average sector3
NAV per share 31 Dec 2024
30 Jun 2024
Average sector3
Small Cap Index
(including dividends reinvested and excluding transaction costs)
1 Net asset value ('NAV') per ordinary share total return
4 Share price total return using closing price Source: Morningstar Direct, Janus Henderson Investors
6 months %
3 The sector is the Association of Investment Companies ('AIC') European Smaller Companies
1 year %
Share price
31 Dec 2024
30 Jun 2024
178.40p
NAV -3.1 1.7 -16.7 31.3 164.7
share price -1.0 4.3 -17.4 31.5 174.5
NAV¹ -7.5 -1.0 -3.3 51.4 201.8 Benchmark index² -3.8 -1.1 -7.4 27.0 138.3
Share price4 -1.6 8.2 5.3 63.0 235.0
2 Euromoney Smaller European Companies ex UK Index up to 30 June 2022, thereafter the MSCI Europe ex UK
3 years %
172.00p
5 years %
Share price
-1.6%
10 years %
Investment Objective
The European Smaller Companies Trust PLC
The Company seeks capital growth
by investing in smaller and medium
sized companies which are quoted,
domiciled, listed or have operations
in Europe (ex UK).
This report contains material extracted from the unaudited half-year results of the Company for the six months ended 31 December 2024. The unabridged results for the half-year are available on the Company's website:
Front cover:
ZEISS
Holographic transparent display (Hüber Window Systems)
Percentage of portfolio: 0.46% Geographical area: Germany Manufacturer of optical systems and optoelectronics
www.europeansmallercompaniestrust.com
Performance
Performance was negatively impacted by several holdings. DFDS, a Danish ferry operator, experienced performance setbacks due to escalating competition in the Mediterranean. TKH, a Dutch conglomerate specialising in industrial automation, vision technology, and cable manufacturing, reported lacklustre results, particularly with the delayed operational ramp-up of its new subsea cable facility. Mersen, a French electrical technology company, encountered uninspiring results from its solar power and silicon semiconductor divisions. Additionally, our technology sector exposure was detrimental during this period, with German semiconductor equipment manufacturer SUESS MicroTec and Swiss positioning technology firm u-blox facing challenges, including customer destocking.
Conversely, positive performance contributions emerged from select investments. IG Group, a UK online trading platform, demonstrated exceptional value, prompting a rare investment by the Company in UK-listed stocks, largely due to its significant capital return to shareholders. R&S, a Swiss manufacturer of transformers, benefited from the critical need for electrical grid investments across the developed world. Other notable contributions included Dutch wealth manager Van Lanschot, Spanish online travel company eDreams ODIGEO, and Renewi, a UK-listed waste management firm with Dutch operations, which attracted a private equity bid.
Strategic portfolio adjustments were made during this period. New investments included Cenergy, a Greek cable and steel pipe manufacturer expanding into the US market, and Mycronic, a Swedish electronic production equipment manufacturer, following strong demand for its semiconductor equipment. Additionally, investments in Bankinter, a Spanish bank, and Aixtron, a German
semiconductor equipment manufacturer, were made based on their growth potential and strategic positioning.
Conversely, positions in Theon, Cadeler, Xior Student Housing, and Alimak were divested due to various strategic considerations, including sector exposure optimisation and valuation concerns.
Despite the current economic and political uncertainties, the outlook remains cautiously optimistic. The recent German election has infused optimism across Europe, with the new CDU Chancellor's aggressive agenda potentially rejuvenating German equities—a market where we are significantly overweight. Additionally, potential geopolitical developments, stimulus effects in China, and attractive valuations in the European small-cap space present compelling investment opportunities. Our portfolio is strategically positioned with companies trading at significant discounts to their intrinsic value, underscoring our commitment to maximising capital growth through judicious investment selection.
Ollie Beckett, Rory Stokes and Julia Scheufler 19 March 2025
Financial summary
| Half-year ended 31 Dec 2024 (unaudited) |
Half-year ended 31 Dec 2023 (unaudited) |
Year ended 30 June 2024 (audited) |
|||
|---|---|---|---|---|---|
| Extract from the Statement of Comprehensive Income |
Revenue return £'000 |
Capital return £'000 |
Total return £'000 |
Total return £'000 |
Total return £'000 |
| Investment income | 5,535 | - | 5,535 | 6,444 | 25,453 |
| Other income | 19 | - | 19 | 11 | 22 |
| (Losses)/gains on investments held at fair value through profit or loss |
- | (59,555) | (59,555) | 31,881 | 72,040 |
| Total income/(loss) | 5,554 | (59,555) | (54,001) | 38,336 | 97,515 |
| Expenses, finance costs and taxation |
(1,850) | (4,043) | (5,893) | (5,434) | (12,617) |
| Profit/(loss) for the period and total comprehensive income |
3,704 | (63,598) | (59,894) | 32,902 | 84,898 |
| Return per ordinary share - basic and diluted |
0.94p | (16.10p) | (15.16p) | 8.21p | 21.22p |
Portfolio information
Ten largest investments at 31 December 2024
Geographical area
Geographic exposure
As a percentage of the portfolio excluding cash
Germany 20.1 20.2 France 13.0 12.7 Sweden 11.5 10.9 Netherlands 11.0 11.9 Switzerland 8.7 8.2 Spain 7.0 4.9 Italy 4.3 5.3 Greece 4.0 3.1 Norway 3.9 2.9 Belgium 3.7 5.0 Denmark 3.3 4.0 United Kingdom 2.3 1.7 Ireland 2.1 2.2 Portugal 1.8 2.4 Finland 1.7 1.7 Austria 1.0 1.6 Faroe Islands 0.6 0.5 Cyprus - 0.8
31 Dec 24 % 30 Jun 24 %
Van Lanschot Kempen Financials Netherlands 25,355 3.1 TKH Industrials Netherlands 20,641 2.5 IG Group Financials United Kingdom 18,559 2.3 KSB Industrials Germany 15,534 1.9 SUESS MicroTec Technology Germany 14,323 1.8 Criteo Technology France 14,238 1.7 Alzchem Basic Materials Germany 14,172 1.7 eDreams ODIGEO Consumer Discretionary Spain 13,383 1.6 Renewi Utilities Netherlands 13,128 1.6 Stroeer Consumer Discretionary Germany 12,001 1.5 10 largest 161,334 19.7
Valuation £'000
% of portfolio
Company Sector
Sector exposure
As a percentage of the portfolio excluding cash
Industrials 30.6 36.3 Consumer Discretionary 18.3 17.1 Financials 15.7 13.6 Technology 15.4 13.3 Basic Materials 5.6 5.0 Health Care 3.7 3.1 Consumer Staples 3.2 3.4 Real Estate 3.1 3.7 Utilities 2.2 2.0 Energy 2.1 2.0 Telecommunications 0.1 0.5
31 Dec 24 % 30 Jun 24 %
| Extract from the Balance Sheet | 31 December 2024 (unaudited) £'000 |
31 December 2023 (unaudited) £'000 |
30 June 2024 (audited) £'000 |
|---|---|---|---|
| Investments held at fair value through profit or loss |
819,421 | 857,284 | 883,842 |
| Current assets | 5,438 | 4,523 | 7,819 |
| Current liabilities | (105,514) | (104,031) | (93,067) |
| Net assets | 719,345 | 757,776 | 798,594 |
| Net asset value per ordinary share - basic and diluted |
182.66p | 189.29p | 201.01p |
Dividends
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend on 3 April 2025.
Share capital
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
This report is printed on Revive silk 100% recycled, contains 100% recycled waste and is manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free The European
Summary for the half-year ended
Companies
31 December 2024
Trust PLC
Smaller
Printed by Paragon Leycol JHI 9227/1223
If undelivered please return to the above address
The European Smaller Companies Trust PLC
process (ECF).
TO BE UPDATED 201 Bishopsgate London EC2M 3AE
A N Name Number Road Town County Postcode
Portfolio information Portfolio information
Ten largest investments at 31 December 2024 Ten largest investments at 31 December 2024
| Company Company |
Sector Sector |
Geographical Geographical area area |
Valuation Valuation £'000 £'000 |
% of % of portfolio portfolio |
|---|---|---|---|---|
| Van Lanschot Kempen | Financials | Netherlands | 25,355 | 3.1 |
| Van Lanschot Kempen | Financials | Netherlands | 25,355 | 3.1 |
| TKH | Industrials | Netherlands | 20,641 | 2.5 |
| TKH | Industrials | Netherlands | 20,641 | 2.5 |
| IG Group | Financials | United Kingdom | 18,559 | 2.3 |
| IG Group | Financials | United Kingdom | 18,559 | 2.3 |
| KSB | Industrials | Germany | 15,534 | 1.9 |
| KSB | Industrials | Germany | 15,534 | 1.9 |
| SUESS MicroTec | Technology | Germany | 14,323 | 1.8 |
| SUESS MicroTec | Technology | Germany | 14,323 | 1.8 |
| Criteo | Technology | France | 14,238 | 1.7 |
| Criteo | Technology | France | 14,238 | 1.7 |
| Alzchem | Basic Materials | Germany | 14,172 | 1.7 |
| Alzchem | Basic Materials | Germany | 14,172 | 1.7 |
| eDreams ODIGEO | Consumer Discretionary | Spain | 13,383 | 1.6 |
| eDreams ODIGEO | Consumer Discretionary | Spain | 13,383 | 1.6 |
| Renewi | Utilities | Netherlands | 13,128 | 1.6 |
| Renewi | Utilities | Netherlands | 13,128 | 1.6 |
| Stroeer | Consumer Discretionary | Germany | 12,001 | 1.5 |
| Stroeer | Consumer Discretionary | Germany | 12,001 | 1.5 |
| 10 largest 10 largest |
161,334 161,334 |
19.7 19.7 |
Sector exposure Sector exposure
Financial summary
Financial summary
Half-year ended 31 Dec 2024 (unaudited)
Half-year ended 31 Dec 2024 (unaudited)
Capital return £'000
Capital return £'000
Investment income 5,535 - 5,535 6,444 25,453 Other income 19 - 19 11 22
Investment income 5,535 - 5,535 6,444 25,453 Other income 19 - 19 11 22
loss - (59,555) (59,555) 31,881 72,040 Total income/(loss) 5,554 (59,555) (54,001) 38,336 97,515
loss - (59,555) (59,555) 31,881 72,040 Total income/(loss) 5,554 (59,555) (54,001) 38,336 97,515
taxation (1,850) (4,043) (5,893) (5,434) (12,617)
taxation (1,850) (4,043) (5,893) (5,434) (12,617)
total comprehensive income 3,704 (63,598) (59,894) 32,902 84,898
and diluted 0.94p (16.10p) (15.16p) 8.21p 21.22p
total comprehensive income 3,704 (63,598) (59,894) 32,902 84,898
and diluted 0.94p (16.10p) (15.16p) 8.21p 21.22p
through profit or loss 819,421 857,284 883,842 Current assets 5,438 4,523 7,819 Current liabilities (105,514) (104,031) (93,067) Net assets 719,345 757,776 798,594
through profit or loss 819,421 857,284 883,842 Current assets 5,438 4,523 7,819 Current liabilities (105,514) (104,031) (93,067) Net assets 719,345 757,776 798,594
share - basic and diluted 182.66p 189.29p 201.01p
share - basic and diluted 182.66p 189.29p 201.01p
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
31 December 2024 (unaudited) £'000
31 December 2024 (unaudited) £'000
31 December 2023 (unaudited) £'000
31 December 2023 (unaudited) £'000
Total return £'000
Total return £'000
Revenue return £'000
Revenue return £'000
Half-year ended 31 Dec 2023 (unaudited)
Half-year ended 31 Dec 2023 (unaudited)
Total return £'000
Total return £'000
Year ended 30 June 2024 (audited)
Year ended 30 June 2024 (audited)
Total return £'000
Total return £'000
30 June 2024 (audited) £'000
30 June 2024 (audited) £'000
Extract from the Statement of Comprehensive Income
Extract from the Statement of Comprehensive Income
(Losses)/gains on investments held at fair value through profit or
(Losses)/gains on investments held at fair value through profit or
Expenses, finance costs and
Profit/(loss) for the period and
Profit/(loss) for the period and
Expenses, finance costs and
Return per ordinary share - basic
Return per ordinary share - basic
Extract from the Balance Sheet
Investments held at fair value
Investments held at fair value
Extract from the Balance Sheet
Net asset value per ordinary
Net asset value per ordinary
Dividends
Dividends
on 3 April 2025. Share capital
on 3 April 2025. Share capital
Geographic exposure Geographic exposure
As a percentage of the portfolio excluding cash As a percentage of the portfolio excluding cash
| As a percentage of the portfolio excluding cash | As a percentage of the portfolio excluding cash | |
|---|---|---|
| ------------------------------------------------- | -- | ------------------------------------------------- |
| 31 Dec 24 31 Dec 24 % % |
30 Jun 24 30 Jun 24 % % |
|
|---|---|---|
| Industrials | 30.6 | 36.3 |
| Industrials | 30.6 | 36.3 |
| Consumer Discretionary | 18.3 | 17.1 |
| Consumer Discretionary | 18.3 | 17.1 |
| Financials | 15.7 | 13.6 |
| Financials | 15.7 | 13.6 |
| Technology | 15.4 | 13.3 |
| Technology | 15.4 | 13.3 |
| Basic Materials | 5.6 | 5.0 |
| Basic Materials | 5.6 | 5.0 |
| Health Care | 3.7 | 3.1 |
| Health Care | 3.7 | 3.1 |
| Consumer Staples | 3.2 | 3.4 |
| Consumer Staples | 3.2 | 3.4 |
| Real Estate | 3.1 | 3.7 |
| Real Estate | 3.1 | 3.7 |
| Utilities | 2.2 | 2.0 |
| Utilities | 2.2 | 2.0 |
| Energy | 2.1 | 2.0 |
| Energy | 2.1 | 2.0 |
| Telecommunications | 0.1 | 0.5 |
| Telecommunications | 0.1 | 0.5 |
| 31 Dec 24 31 Dec 24 % % |
30 Jun 24 30 Jun 24 % % |
|
|---|---|---|
| Germany | 20.1 | 20.2 |
| Germany | 20.1 | 20.2 |
| France | 13.0 | 12.7 |
| France | 13.0 | 12.7 |
| Sweden | 11.5 | 10.9 |
| Sweden | 11.5 | 10.9 |
| Netherlands | 11.0 | 11.9 |
| Netherlands | 11.0 | 11.9 |
| Switzerland | 8.7 | 8.2 |
| Switzerland | 8.7 | 8.2 |
| Spain | 7.0 | 4.9 |
| Spain | 7.0 | 4.9 |
| Italy | 4.3 | 5.3 |
| Italy | 4.3 | 5.3 |
| Greece | 4.0 | 3.1 |
| Greece | 4.0 | 3.1 |
| Norway | 3.9 | 2.9 |
| Norway | 3.9 | 2.9 |
| Belgium | 3.7 | 5.0 |
| Belgium | 3.7 | 5.0 |
| Denmark | 3.3 | 4.0 |
| Denmark | 3.3 | 4.0 |
| United Kingdom | 2.3 | 1.7 |
| United Kingdom | 2.3 | 1.7 |
| Ireland | 2.1 | 2.2 |
| Ireland | 2.1 | 2.2 |
| Portugal | 1.8 | 2.4 |
| Portugal | 1.8 | 2.4 |
| Finland | 1.7 | 1.7 |
| Finland | 1.7 | 1.7 |
| Austria | 1.0 | 1.6 |
| Austria | 1.0 | 1.6 |
| Faroe Islands | 0.6 | 0.5 |
| Faroe Islands | 0.6 | 0.5 |
| Cyprus | - | 0.8 |
| Cyprus | - | 0.8 |
This report is printed on Revive silk 100% recycled, contains 100% recycled waste and is manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free
This report is printed on Revive silk 100% recycled, contains 100% recycled waste and is manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free The European
The European
Summary for the half-year ended
Summary for the half-year ended
Companies
Companies
31 December 2024
31 December 2024
Trust PLC
Trust PLC
Smaller
Smaller
Printed by Paragon Leycol JHI 9227/1223
Printed by Paragon Leycol JHI 9227/1223
If undelivered please return to the above address
If undelivered please return to the above address
The European Smaller Companies Trust PLC
The European Smaller Companies Trust PLC
process (ECF).
process (ECF).
TO BE UPDATED
TO BE UPDATED 201 Bishopsgate London EC2M 3AE
201 Bishopsgate London EC2M 3AE
A N Name Number Road Town County Postcode
A N Name Number Road Town County Postcode
The European
The European
Summary for the half-year ended
Summary for the half-year ended
Companies
Companies
31 December 2024
31 December 2024
Trust PLC
Trust PLC
Smaller
Smaller
A N Name Number Road Town County Postcode A N Name Number Road Town County Postcode
Portfolio information
Portfolio information
Ten largest investments at 31 December 2024
Ten largest investments at 31 December 2024
Geographical area
Geographical area
Geographic exposure
Geographic exposure
As a percentage of the portfolio excluding cash
As a percentage of the portfolio excluding cash
Germany 20.1 20.2 France 13.0 12.7 Sweden 11.5 10.9 Netherlands 11.0 11.9 Switzerland 8.7 8.2 Spain 7.0 4.9 Italy 4.3 5.3 Greece 4.0 3.1 Norway 3.9 2.9 Belgium 3.7 5.0 Denmark 3.3 4.0 United Kingdom 2.3 1.7 Ireland 2.1 2.2 Portugal 1.8 2.4 Finland 1.7 1.7 Austria 1.0 1.6 Faroe Islands 0.6 0.5 Cyprus - 0.8
Germany 20.1 20.2 France 13.0 12.7 Sweden 11.5 10.9 Netherlands 11.0 11.9 Switzerland 8.7 8.2 Spain 7.0 4.9 Italy 4.3 5.3 Greece 4.0 3.1 Norway 3.9 2.9 Belgium 3.7 5.0 Denmark 3.3 4.0 United Kingdom 2.3 1.7 Ireland 2.1 2.2 Portugal 1.8 2.4 Finland 1.7 1.7 Austria 1.0 1.6 Faroe Islands 0.6 0.5 Cyprus - 0.8
31 Dec 24 %
31 Dec 24 % 30 Jun 24 %
30 Jun 24 %
Van Lanschot Kempen Financials Netherlands 25,355 3.1 TKH Industrials Netherlands 20,641 2.5 IG Group Financials United Kingdom 18,559 2.3 KSB Industrials Germany 15,534 1.9 SUESS MicroTec Technology Germany 14,323 1.8 Criteo Technology France 14,238 1.7 Alzchem Basic Materials Germany 14,172 1.7 eDreams ODIGEO Consumer Discretionary Spain 13,383 1.6 Renewi Utilities Netherlands 13,128 1.6 Stroeer Consumer Discretionary Germany 12,001 1.5 10 largest 161,334 19.7
Van Lanschot Kempen Financials Netherlands 25,355 3.1 TKH Industrials Netherlands 20,641 2.5 IG Group Financials United Kingdom 18,559 2.3 KSB Industrials Germany 15,534 1.9 SUESS MicroTec Technology Germany 14,323 1.8 Criteo Technology France 14,238 1.7 Alzchem Basic Materials Germany 14,172 1.7 eDreams ODIGEO Consumer Discretionary Spain 13,383 1.6 Renewi Utilities Netherlands 13,128 1.6 Stroeer Consumer Discretionary Germany 12,001 1.5 10 largest 161,334 19.7
Valuation £'000
Valuation £'000
% of portfolio
% of portfolio
Company Sector
Company Sector
Financial summary
Financial summary
Half-year ended 31 Dec 2024 (unaudited)
Half-year ended 31 Dec 2024 (unaudited)
Capital return £'000
Capital return £'000
Investment income 5,535 - 5,535 6,444 25,453 Other income 19 - 19 11 22
Investment income 5,535 - 5,535 6,444 25,453 Other income 19 - 19 11 22
loss - (59,555) (59,555) 31,881 72,040 Total income/(loss) 5,554 (59,555) (54,001) 38,336 97,515
loss - (59,555) (59,555) 31,881 72,040 Total income/(loss) 5,554 (59,555) (54,001) 38,336 97,515
taxation (1,850) (4,043) (5,893) (5,434) (12,617)
taxation (1,850) (4,043) (5,893) (5,434) (12,617)
total comprehensive income 3,704 (63,598) (59,894) 32,902 84,898
total comprehensive income 3,704 (63,598) (59,894) 32,902 84,898
and diluted 0.94p (16.10p) (15.16p) 8.21p 21.22p
and diluted 0.94p (16.10p) (15.16p) 8.21p 21.22p
through profit or loss 819,421 857,284 883,842 Current assets 5,438 4,523 7,819 Current liabilities (105,514) (104,031) (93,067) Net assets 719,345 757,776 798,594
through profit or loss 819,421 857,284 883,842 Current assets 5,438 4,523 7,819 Current liabilities (105,514) (104,031) (93,067) Net assets 719,345 757,776 798,594
share - basic and diluted 182.66p 189.29p 201.01p
share - basic and diluted 182.66p 189.29p 201.01p
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend
The Company has declared an interim dividend of 1.45p per ordinary share (31 December 2023: 1.45p) payable on 2 May 2025 to members on the register as at 4 April 2025. The shares will trade ex-dividend
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
At 31 December 2024 there were 393,815,298 ordinary shares in issue (31 December 2023: 400,321,188 and 30 June 2024: 397,287,598). During the half-year ended 31 December 2024, the Company repurchased 2,655,272 ordinary shares for cancellation, at a total cost of £4,720,000 and repurchased 817,028 ordinary shares for treasury, at a total cost of £1,448,000 (31 December 2023: 545,988 ordinary shares for cancellation, at a total cost of £758,000 and 30 June 2024: 3,579,578 ordinary shares for cancellation, at a total cost of £6,140,000). No ordinary shares were issued (31 December 2023 and 30 June 2024: same).
31 December 2024 (unaudited) £'000
31 December 2024 (unaudited) £'000
31 December 2023 (unaudited) £'000
31 December 2023 (unaudited) £'000
Total return £'000
Total return £'000
Revenue return £'000
Revenue return £'000
Half-year ended 31 Dec 2023 (unaudited)
Half-year ended 31 Dec 2023 (unaudited)
Total return £'000
Total return £'000
Year ended 30 June 2024 (audited)
Year ended 30 June 2024 (audited)
Total return £'000
Total return £'000
30 June 2024 (audited) £'000
30 June 2024 (audited) £'000
Extract from the Statement of Comprehensive Income
Extract from the Statement of Comprehensive Income
(Losses)/gains on investments held at fair value through profit or
(Losses)/gains on investments held at fair value through profit or
Expenses, finance costs and
Expenses, finance costs and
Profit/(loss) for the period and
Profit/(loss) for the period and
Return per ordinary share - basic
Return per ordinary share - basic
Extract from the Balance Sheet
Extract from the Balance Sheet
Investments held at fair value
Investments held at fair value
Net asset value per ordinary
Net asset value per ordinary
Dividends
Dividends
on 3 April 2025. Share capital
on 3 April 2025. Share capital Sector exposure
Sector exposure
As a percentage of the portfolio excluding cash
As a percentage of the portfolio excluding cash
Industrials 30.6 36.3 Consumer Discretionary 18.3 17.1 Financials 15.7 13.6 Technology 15.4 13.3 Basic Materials 5.6 5.0 Health Care 3.7 3.1 Consumer Staples 3.2 3.4 Real Estate 3.1 3.7 Utilities 2.2 2.0 Energy 2.1 2.0 Telecommunications 0.1 0.5
Industrials 30.6 36.3 Consumer Discretionary 18.3 17.1 Financials 15.7 13.6 Technology 15.4 13.3 Basic Materials 5.6 5.0 Health Care 3.7 3.1 Consumer Staples 3.2 3.4 Real Estate 3.1 3.7 Utilities 2.2 2.0 Energy 2.1 2.0 Telecommunications 0.1 0.5
31 Dec 24 %
31 Dec 24 % 30 Jun 24 %
30 Jun 24 %
The European Smaller Companies Trust PLC 201 Bishopsgate London EC2M 3AE The European Smaller Companies Trust PLC 201 Bishopsgate London EC2M 3AE
This report is printed on Revive silk 100% recycled, contains 100% recycled waste and is manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free process (ECF). This report is printed on Revive silk 100% recycled, contains 100% recycled waste and is manufactured at a mill certified with ISO 14001 environmental management standard. The pulp used in this product is bleached using an Elemental Chlorine Free process (ECF).
If undelivered please return to the above address Printed by Paragon Leycol JHI 9227/1223 If undelivered please return to the above address Printed by Paragon Leycol JHI 9227/1223