Against a challenging backdrop, the company delivered NAV and shareholder total returns of 2.2% and 4.8% respectively, materially ahead of the -8.6% total return from the FTSE Small Cap ex Investment Trusts. The longer term record is equally impressive; over five years, the company has delivered a NAV total return of 55.0%, some 24.7% ahead of the benchmark. Notably, this outperformance has been achieved without gearing. Key positive contributors during the year were IFG Group and 4imprint. IFG was subject to a takeover approach in March 2019, at a 46% premium and this contributed 3.9% to performance. 4imprint performed strongly and contributed 3.5%; organic growth and cash generation was strong across both core businesses; earnings estimates were upgraded and the shares re-rated. Other contributors included Ergomed, a new investment made in April 2018 (2.3%), EMIS (1.9%) and Clinigen (1.0%). The major detractor over the year was Proactis which contributed -4.6%. Problems with growth and retention in the acquired Perfect Commerce business led to a profits warning in February 2019 and a severe de-rating. The shares fell from 113p to a low of 29p following the news, although they have since recovered to 50p/share. Tyman (-1.8%), Wilmington (-1.3%), Tribal (-1.1%) and Equiniti (-1.0%) were also detractors from performance. Over the year, the average cash balance was 7.5% of net assets. The investment manager does not employ gearing and aims to retain sufficient cash to be able to participate in liquidity events without being a forced seller of existing holdings. At the period end, the cash balance was 8.4% of net assets. The portfolio is concentrated, and at the period end, comprised 22 holdings, with the top ten accounting for 65% of NAV. Key sector weightings include healthcare (22.5%), technology (16.8%), financials (11.2%) and support services (19.2%). The company’s average P/E (15.0x) is in line with the benchmark, however the balance sheets of the portfolio constituents are less geared (portfolio net debt/EBITDA of 0.1x vs. 1.9x), whilst forecast earnings growth of 11.4% for the next financial year is ahead of the index (7.0%). The Board has pursued an active buyback policy during the year and acquired 3.2m shares at an average discount of 15.9% and for an aggregate consideration of £6.9m. The Board has said it will keep monitoring the discount at which the shares trade. Continued overleaf