MONTANARO EUROPEAN SMALLER C. TST PLC - Investor Presentation

Montanaro European Smaller Companies Trust highlighted an increasingly attractive investment opportunity across European small and mid-cap equities, supported by compelling valuations, strong portfolio fundamentals and improving performance. The Trust focuses on high-quality, profitable growth companies with recurring revenues, pricing power, strong balance sheets and sustainable long-term growth, targeting overlooked market leaders including Technoprobe, Kitron, Pfisterer and Dynavox.  European smaller companies currently trade at an 8% valuation discount to the broader market, compared with a long-term average premium of around 15%, while 33 of 40 portfolio holdings with reliable data trade below their five-year average P/E multiples.  Portfolio companies have historically delivered approximately 12% annual earnings growth, more than twice the wider European small-cap index, alongside a 23% return on equity and limited financial leverage.  The Trust has generated around 10% annualised NAV returns since launch, with 22 current holdings achieving multi-bagger status, demonstrating the long-term benefits of its quality-growth investment strategy.  With the shares trading at an approximately 8.5% discount to NAV, disciplined share buybacks and significant ownership by the board and investment manager, Montanaro believes current valuations provide an attractive entry point for investors seeking differentiated exposure to European smaller companies and structural growth themes.