Athelney Tst. Regulatory News (ATY)

20 Apr 2006 07:00

Athelney Trust PLC20 April 2006 ATHELNEY TRUST RAISES DIVIDEND 25 PER CENT Athelney Trust, the AIM-traded investor in junior markets and small companies,announces its audited preliminary results for the 12 months ended December 312005. Highlights: • Net Asset Value ("NAV") up 15.2 per cent to 155.7p per share (2004: 134.9p per share) • Recommended dividend for the year 2.5p (2004: 2p) • Gross revenue up 8 per cent at £86,265 (2004: £79,822) Chairman Hugo Deschampsneufs said: "In February 2003, the unaudited Athelney NAVwas 79.4p, so between that date and December 31 2005, the company experienced agrowth in value of fully 96.1 per cent. Not only that, but shareholders willhave benefited from a total increase in dividend of 38.9 per cent. "We must proceed more cautiously this year despite the market's brightperformance in January and February. Fifteen consecutive interest rate rises inAmerica, Europe following suit, maverick nations like Iran and North Koreawanting to flex their muscles and at home, the advent of the first SocialistGovernment since the Seventies as and when Gordon Brown moves house. "None of this is calculated to cheer but at least the housing market hasstabilised, UK interest rates should remain mostly unchanged throughout the yearand inflation seems to be sleeping soundly. On balance, another steady, decentyear for small caps seems likely". -ends- For further information: Robin Boyle, Managing DirectorAthelney Trust plc 020 7628 7937 Paul Quade 020 7248 8010CityRoad Communications 07947 186694 CHAIRMAN'S STATEMENT I have pleasure in announcing the audited results for the twelve months to 31December 2005. The salient points are as follows: •Audited Net Asset Value ("NAV") is 155.7p per share (31 December 2004: 134.9p), a rise of 15.2 per cent. •Gross Revenue increased by 8.1 per cent to £86,265 (31 December 2004: £79,822). •On a like-for-like basis revenue was actually up by ? per cent and dividend income rose by 14.8 per cent. •Revenue return per ordinary share was 2.7p, an increase of 12.5 per cent (31 December 2004: 2.4p). •Recommended dividend for the year of 2.5p per share (2004: 2p). The Market Back in February 2003, the unaudited Athelney NAV was 79.4p, so between thatdate and 31 December 2005, the company experienced a growth in value of fully96.1%. Not only that, but shareholders will have benefited from a total increasein dividend of 38.9% (2003 1.8p: 2004 2p: 2005 2.5p). And yet, particularlylooking at the year recently finished, there is a long list of problems andworries that markets apparently coped with pretty well. Take, for instance, UKpension funds which may have sold £75bn of equities during the year because ofFRS17 and IFRS. Even after that avalanche of selling, 61% of the average UKpension fund consists of equities. It really is not too hard to imagine thatselling could actually increase in 2006. Overseas companies were undoubtedlymassive buyers of UK equities in 2005, but who is to say how long this buyingspree is to continue? Surely, relaxed world-wide monetary conditions must have had a good deal to dowith strong equity markets over the past three years. Following fifteenconsecutive rises in interest rates in America and an unmistakable sign that theBank of Japan is to tighten up in the coming months from the current position ofan overnight call rate of 0.001 per cent, conditions will be a good deal tighterthis year. Now this is quite important because hedge funds, amongst others, havebeen borrowing in Yen to speculate in emerging markets such as the Middle East,South America and Russia. As interest rates rise in Japan, so hedge funds willstart to unwind speculative positions in these countries. Here at home, things look quiet, and dare I say it, a little dull. GDP shouldrise by 2.1 per cent in 2006 and 2.5 per cent in 2007. Wages will probably go upby 3.5 per cent this year and consumer prices should rise by no more than 1.9%(i.e. 0.1% below target) in 2006 and 2007. No, most of the excitement is happening abroad. America ran an astonishingrecord current account deficit of $805m in 2005, China's industrial productionwas 16.2% higher than a year ago and Russia's trade surplus rose to $124m. Abasket of commodities rose by nearly 19 per cent in Sterling terms with gold upby 24 per cent (in Dollars) and oil having another good year at around $60 perbarrel. What is not helping things is the increased interest being shown incommodities by institutions - since few have specialized knowledge of thesubject, they tend to buy a basket rather than bet on individual metals, so allcommodities rise together. And with China's GDP increasing by 9.9 per cent in2005 and India's by 7.6 per cent, who is to say when commodity prices willreturn to lower levels? Results Gross Revenue rose by 8.1 per cent to £86,265 compared with the calendar year2004. However, special dividends for 2005 amounted to just £2,900 (James Latham£1,200, Air Partner £1,700) whereas £7,200 was received from Stanley Gibbons inthe previous year. When due allowance is made for this, on a like-for-likebasis, Gross Revenue actually rose by 14.8 per cent, a most satisfactory resultparticularly when combined with the 15.4% rise in NAV. The growth in dividend income is illustrated by the following table:- Number Companies paying dividends 72Companies sold (therefore no true comparison) 5Companies purchased (therefore no true comparison) 24Increased total dividend in the calendar year 35Reduced total dividend in the calendar year 6No change in dividend 2 Corporate Activity Cash takeovers were completed in respect of six holdings: Countryside Properties; Bristol & West Investments; Merrydown; Broadcastle;James Beattie and Belhaven Group. In relation to the offer by Vantis forNumerica, shares were taken rather than cash. At the time of writing, a cash bidfor PD Ports has just gone through, Wyevale remains under siege, an MBO ispossible at Tenon Group. Lookers has rejected a bid by Pendragon and BrandonHire is to be bought by a larger competitor. Portfolio Review The following were purchased for the first time or were existing holdings whichhave been increased in size: Belhaven Group; Blacks Leisure Group; Clinton Cards; Domestic & General;Goldshield Group; MSB International; Phoenix IT; Treatt; Arbuthnot BankingGroup; Belgravium Technologies; City Lofts; Group NBT; Idox; Jarvis Securities;Tenon Group; Urbium; Numerica Group. ICM Computers; Patientline; Rok; Ultimate Leisure and Cardpoint have all beensold and Camellia again been top-sliced. Dividend The Board is pleased to recommend an increased annual dividend of 2.5p for theyear ended 31 December 2006 (2004: 2p). This represents an increase of a full25% over the previous year. Update The unaudited NAV at the 20 February 2006 was 165.9p, which means that, at theprice of 127p on the same day, the share stood at a discount of 23.4 per cent.It is disappointing to note the discount creeping back over the 20 per cent markagain. Outlook Recent weakness in markets as far apart as Dubai and Reykjavik is the result ofthe Bank of Japan's decision to tighten monetary conditions for the first timein very many years. Is this a straw in the wind? Probably not, but it is a signthat we must proceed more cautiously this year despite the market's brightperformance in January and February. Fifteen consecutive interest rate rises inAmerica, Europe following suit, despite problems in Italy and elsewhere,maverick nations like Iran and North Korea wanting to flex their muscles and athome, the advent of the first Socialist government since the Seventies, as andwhen Mr. Brown moves house. None of this is calculated to cheer but at least thehousing market has stabilized, UK interest rates should remain mostly unchangedthroughout the year and inflation seems to be sleeping soundly. On balance,another steady, decent year for small caps seems likely. Hugo DeschampsneufsChairman20 April 2006 ATHELNEY TRUST PLC STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2005 Audited Results to Audited Results to 31 December 2005 31 December 2004 Revenue Capital Total Restated * Capital Restated * Revenue Total £ £ £ £ £ £Profits oninvestments - 460,306 460,306 - 535,518 535,518 Income 86,265 - 86,265 79,822 - 79,822 Investmentmanagementexpenses (7,266) (21,362) (28,628) (6,810) (19,789) (26,599) Other expenses (37,753) - (37,753) (38,199) - (38,199) ________ _________ _________ ________ _________ _________ Return onordinaryactivitiesbeforetaxation 41,246 438,944 480,190 34,813 515,729 550,542 Taxation 7,579 (77,234) (69,655) 8,005 (90,367) (82,362) ________ ________ _________ ________ ________ _________Return onordinaryactivitiesafter taxation 48,825 361,710 410,535 42,818 425,362 468,180 Dividend (36,056) - (36,056) (32,450) - (32,450) ________ ________ _________ ________ ________ _________Transfer toreserves 12,769 361,710 374,479 10,368 425,362 435,730 ________ ________ _________ ________ ________ _________ Return perordinaryshare 2.7p 20.1p 22.8p 2.4p 23.6p 26.0p Dividend paidper ordinaryshare - Finaldividend 2.0p 1.8p * Restated on adoption of FRS21 The revenue column of this statement is the profit and loss account for theCompany. All revenue and capital items in the above statement derive from continuingoperations. No operations were acquired or discontinued during the above financial years. There have been no recognised gains or losses, other than the results for thefinancial years shown above. ATHELNEY TRUST PLC BALANCE SHEET AS AT 31 DECEMBER 2005 2005 Restated * 2004 (audited) (audited) £ £Fixed assetsInvestments 2,985,922 2,555,581 _________ _________ Current assetsDebtors 145,109 116,514Cash at bank and in hand 40,048 61,311 _________ _________ 185,157 177,825 Creditors: amounts falling due within one year (33,769) (21,617) _________ _________ Net current assets 151,388 156,208 _________ _________Total assets less current liabilities 3,137,310 2,711,789 Provisions for liabilities and charges (295,142) (244,100) _________ _________Net assets 2,842,168 2,467,689 _________ _________ Capital and reserves Called up share capital 450,700 450,700Share premium account 405,605 405,605Other reserves - non distributableCapital reserve - realised 520,007 389,458Capital reserve - unrealised 1,360,604 1,129,445Revenue reserve 105,252 92,481 _________ _________ Shareholders' funds - all equity 2,842,168 2,467,689 _________ _________ Net Asset Value per share 157.7p 136.9p * Restated on adoption of FRS21 ATHELNEY TRUST PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2005 2005 2004 (audited) (audited) £ £ £ £ Net cash inflow from operating activities 3,487 19,170 Servicing of finance Dividends paid (36,056) (32,450) ________ ________Net cash (outflow) fromservicing of finance (36,056) (32,450) Taxation Corporation tax paid (2,017) - Investing activities Purchases of investments ( 529,075) ( 575,195)Sales of investments 542,398 575,193 ________ ________Net cash (outflow) from investing activities 13,323 ( 2) ________ ________ (Decrease) / increase in cash in (21,263) (13,282)the year ________ ________ Notes: 1. The figures included in the above statement are an abridged version of Athelney's audited results for the year ended 31 December 2005 and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985, as amended. The figures for the year ended 31 December 2004 are extracted from the statutory accounts filed with the Registrar of Companies and which contained an unqualified audit report, but have been restated on adoption of FRS21. 2. The calculation for the return per ordinary share is based on the return on ordinary activities after taxation shown below and on the average weighted number of shares in issue during the period of 1,802,802 (2004: 1,802,802). 2005 2004 Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ 48,825 361,710 410,535 42,818 425,362 468,180 3. Dividend information: Ex dividend date 26 April 2006 Dividend payable to shareholders registered on 28 April 2006 Dividend payable on 26 May 2006 4. Copies of this announcement are available, free of charge, for a period of one month from Athelney's Nominated Advisor: Noble & Company Limited, 76 George Street, Edinburgh, EH2 3BUCopies of the full financial statements will be posted to shareholders on 20 April 2006. This information is provided by RNS The company news service from the London Stock Exchange