|
European Smaller Cos Trust PLC on Tuesday reported improvement in financial 2025, which saw a rise in the firm’s net asset value and total dividend. The London-based investor in smaller to mid-sized European equities posted a net asset value per share of 224.5 pence as at June 30, up from 201.01p a year prior. NAV total return for the year that ended in June was 14.5%, improved from 12.0% the previous year and ahead of ESCT’s benchmark, the MSCI Europe ex UK Small Cap index, which posted a 14.0% total return. ESCT cited vision technology developer Exosens SAS and pump manufacturer KSB SE & Co KGaA as key contributors to the portfolio. Meanwhile, ferry operator DFDS AS and advertising firm Criteo SA dragged on the performance. ESCT shares were marginally higher at 208.51 pence on Tuesday morning in London. The company’s total dividend for financial 2025 was 2.1% higher on-year at 4.90p compared to 4.80p. ESCT announced a new dividend after completing its acquisition of former London-listing European Assets Trust PLC last week. Going forwards, it will target a total dividend which is at least 5% of NAV per share at the prior year-end. It expects to pay three interim dividends for the new financial year, with the first due in February 2026. Fund Managers Ollie Beckett, Rory Stokes and Julia Scheufler hailed optimism for European investment at the beginning of 2025, but noted: ‘After the initial bounce in our markets, we are now at a point where operational improvement and earnings momentum are required to drive the rerating of the market.’ Chair James Williams noted an ‘eventful’ year, which included two requisitions from agitator Saba Capital. Williams described the first of these as ‘very disruptive’ with a negative financial impact. In response to Saba’s calls for improvement, ESCT completed a 42.5% tender offer allowing shareholder exits the end of June. Williams added that European equities remain ‘attractively valued’ with ‘much to be optimistic about,’ despite macroeconomic volatility. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
