Interim Management Statement

Montanaro UK Smaller Companies Investment Trust PLC

Interim Management Statement - 3 months to 30 June 2014

Investment Objective

MUSCIT's investment objective is capital appreciation through investing in
small quoted companies listed on the London Stock Exchange or traded on the
Alternative Investment Market ("AIM") and to achieve relative outperformance of
its benchmark, the Numis Smaller Companies Index (excluding Investment
Companies) ("NSCI").

No unquoted investments are permitted.


Benchmark

Numis Smaller Companies Index (excluding Investment Companies) ("NSCI").


Net Asset Value Performance

                          3 months     1 year    3 years   5 years       Launch
                                                                               
MUSCIT (excluding           (7.7)%      8.4 %     21.5%     138.8%       443.1%
current period                                                                 
revenue)                                                                       
                                                                               
Benchmark*                  (4.8)%     17.2%      27.8%      61.7%       103.7%
                                                                               
(Under)/outperformance      (2.9)%     (8.8)%     (6.3)%     77.1%       339.4%
                                                                               

* Previous benchmark of FTSE SmallCap (excluding Investment Companies) to 
31/03/13 and NSCI from 1/04/13.


Performance Summary

                                    As at            As at         
                             30 June 2014    31 March 2014         Movement       
                                                                           
Gross Assets                 201,571,059      212,618,305            (5.2)%
                                                                           
Net asset value per share         547.25p          588.22p           (7.0)%
(including current period                                                  
revenue)                                                                   
                                                                           
Share price                       458.38p          505.50p           (9.3)%
                                                                           
Discount                            16.2%            14.1%                
                                                                           
Net Gearing                          8.9%             6.5%                


Period Review

For the 3 months ended 30 June 2014:

MUSCIT's Net Asset Value declined by 7.7% over the three month period to the
end of June 2014 compared with a decrease of 4.8% by its benchmark, the NSCI.

After outperforming the FTSE All Share index by 4.6% during the first three
months of the calendar year, the NSCI underperformed by 6.1% over the
subsequent quarter ended 30 June 2014.  This was the fourth weakest quarter for
SmallCap in relative terms over the last decade.  Investors have turned
noticeably more cautious, locking in profits on UK smaller companies and
recycling the proceeds into larger companies, perceived as safer and offering
better liquidity.  Unnecessary - and value destroying - portfolio turnover is
often the natural human reaction to uncertainty.  However, we see little reason
to make material changes to the portfolio in the months ahead, as our investee
companies feel cautiously optimistic at present.  Pleasingly, consensus
earnings growth expectations for 2014 for the portfolio have risen over the
course of the quarter from 9.8% to 11%.  We will give them the time to deliver.

Montanaro Asset Management Limited
11 August 2014


Top Ten Holdings as at 30 June 2014

Company              Sector                                          % of total        
                                                                      portfolio         
                                                                               
Consort Medical      Health Care Equipment and Services                     3.1
                                                                               
NCC Group            Software and Computer Services                         3.0
                                                                               
Cineworld Group      Travel and Leisure                                     3.0
                                                                               
Hilton Food Group    Food Producers                                         2.9
                                                                               
Innovation Group     Software and Computer Services                         2.8
                                                                               
Entertainment One    Media                                                  2.7
                                                                               
Berendsen            Support Services                                       2.7
                                                                               
Mears Group          Support Services                                       2.7
                                                                               
Brammer              Support Services                                       2.7
                                                                               
Big Yellow Group     Real Estate/Real Estate Investment                     2.5
                     Trusts                                                    


Sector Breakdown

Sector                       % of total   % of NSCI  
                              portfolio                      
                                                   
Oil & Gas                           3.4         5.0
                                                   
Basic Materials                     3.0         6.5
                                                   
Industrials                        36.4        27.9
                                                   
Consumer Goods                     15.2         7.8
                                                   
Health Care                         5.3         4.1
                                                   
Consumer Services                  13.1        18.1
                                                   
Telecommunications                  3.7         2.6
                                                   
Utilities                           0.0         0.6
                                                   
Financials                         12.2        19.1
                                                   
Technology                          7.7         8.3
                                                   
                                  100.0       100.0


Further to the notification in the Annual Report and Accounts for the year
ended 31 March 2014, Montanaro Asset Management Limited was appointed as the
Company's Alternative Investment Fund Manager and Bank of New York Mellon was
appointed as the Company's Depositary with effect from 22 July 2014.

Other than as stated above, the Directors are not aware of any significant
events or transactions which have occurred between 30 June 2014 and the date of
publication of this statement which have had a material impact on the financial
position of the Company. For latest performance information, please refer to
the Company's website.

At the Company's Annual General Meeting held on 30 July 2014, all of the
resolutions put to shareholders were duly passed on a show of hands.

This Interim Management Statement and up to date NAV and Share Price are
available at the Company's website www.montanarouksmaller.co.uk.

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.