Athelney Tst. Regulatory News (ATY)

6 Apr 2005 09:02

Athelney Trust PLC06 April 2005 The following replaces the final results released at 7am under RNS number 6705K. In the first highlight the NAV should have read 134.9p per share NOT 124.9 pershare. ATHELNEY TRUST PLC: NAV UP 21.6 PER CENT ON YEAR Athelney Trust plc, the AIM-listed investment company, announces its auditedresults for the 12 months ended December 31 2004. Highlights: •Net Asset Value ("NAV") up 21.6 per cent at 134.9p per share (2003: 110.9p) •Revenue up on like for like basis by 9.1 per cent but gross revenue down 21.2 per cent at £79,822 (2003: £101,345) •Dividend income rose 6.4 per cent •Revenue return per ordinary share down 29.4 per cent at 2.4p (2003: 3.4p) •Recommended annual dividend of 2p per share (2003: 1.8p) a rise of 11 per cent Athelney Chairman, Hugo Deschampsneufs said: "The gross revenue fall actuallyhides the true position, which is one of steady growth in dividends from thevast majority of our investments. In 2003, a total of £34,756 was received byway of special dividends, including £30,756 as part of the proceeds from theacquisition of Amalgamated Metal Corporation. "In 2004 the only such dividend was from Stanley Gibbons. Taking the one-offfactors into account, gross revenue moved ahead on a like for like basis, whichwhen allied to the rise in NAV adds up to what the Board considers to be a yearof solid achievement. "The past two years have seen a substantial re-rating take place in small capswhich was both welcome and overdue. It is right, though, to be cautious about2005, particularly bearing in mind that it is election year. "We do not know whether the hawks or doves will win the debate on interest ratesand what effect this may have on the residential property market and on consumerspending generally. "What we do know is that a carefully managed portfolio of small caps hasperformed well in terms of both capital growth and in providing a risingdividend income over the past 10 years. Your Board looks forward to the next 10years with considerable confidence". -ends-For further information:Robin Boyle, Managing DirectorAthelney Trust plc 020 7222 8989Paul Quade 020 7248 8010CityRoad Communications 07947 186694 CHAIRMAN'S STATEMENT I have pleasure in enclosing the audited results for the twelve months to 31December 2004. The key points are as follows:- • Audited Net Asset Value ("NAV") is 134.9p per share (31 December 2003: 110.9p), a rise of 21.6 per cent.• Gross Revenue fell by 21.2 per cent to £79,822 (31 December 2003: £101,345).• On a like-for-like basis revenue was actually up by 9.1 per cent and dividend income rose by 6.4 per cent.• Revenue return per ordinary share was 2.4p, a decrease of 29.4 per cent ( 31 December 2003: 3.4p).• Recommended dividend for the year of 2p per share (2003: 1.8p). The MarketThe year 2004, one of solid achievement for Athelney, was not at allstraightforward, despite the pleasing rise of 21.6% in the NAV to 134.9p pershare. For a start, the economic background was not particularly helpful: risinginterest rates both here and in America were an obvious sign that monetaryconditions remained on a tightening path. Sterling continued to be strong against the Dollar but eased against the Euro -such a mix was good at hiding inflation but bad for the UK balance of paymentsposition in relation to all those countries (starting with China) whosecurrencies are pegged to the Dollar. Consumers continued to spend money like adrunken sailor but that elusive combination - steady growth in both consumer andbusiness spending - was not achieved. Rising interest rates eventually choked off the residential property marketalthough, with a huge aspirational demand for new properties, it would be innobody's interests to knock the housebuilders any further. Oil prices averaged $41 per barrel and OPEC's official target of $25 - $30 perbarrel was quietly abandoned during the year. Gas prices, too, were very strongand it is an unusual business indeed not to be adversely affected by theseincreases, higher business rates and a tightening labour market. Having said all that, small companies have now delivered a sustained spell ofoutperformance: on 28 February 2003, the Athelney NAV was 79.4p per share, sobetween that date and 31 December 2004, the Company has experienced a growth invalue of fully 69.9 per cent. Yes, there has been something of a rise incorporate activity, but what has made a huge difference is that investors, bothindividual and corporate (formerly victims of the increased volatility of bluechips) now see the perceived risk of investing in small caps as being muchnarrower. ResultsGross revenue fell by 21.2 per cent to £79,822 in 2004. These figures actuallyhide the true position, which is one of steady growth in dividends from the vastmajority of our investments. Additionally, in 2003, a total of £34,756 wasreceived by way of special dividends, including £30,756 as part of the proceedsfrom the sale of Amalgamated Metal Corporation, whereas, in 2004, the only suchdividend was from Stanley Gibbons. Taking the one-off factors into account,gross revenue moved ahead by a satisfactory 9.1 per cent which, when allied tothe 21.6 per cent rise in NAV, adds up to what the Board considers to be a yearof achievement. The growth in dividend income is illustrated by the following table:- Number --------Companies paying dividends 75 ----Companies sold (therefore no true comparison) 15Companies purchased (therefore no true comparison) 14Increased total dividend in the calendar year 41Reduced total dividend in the calendar year 1No change in dividend 4 Portfolio ReviewIn what has been quite a busy year, the following were purchased for the firsttime or were existing holdings which were increased in size: Ben Bailey, BrandonHire, CD Bramall, Charles Taylor Consultancy, Countryside Properties, ErinaceousGroup, European Motor Holdings, Havelock Europa, Lookers, PD Ports, RoboticTechnology Systems, SCS Upholstery, J Smart & Co., Albemarle & Bond Holdings,Bristol & West Investments, Collier C.R.E., Gooch & Housego, UK Betting,Ultimate Leisure and Vantis. C D Bramall, Christie Group, Ifx Group, Reed Health Group, Robotic TechnologySystems, Sportech, Wintrust, Alliance Pharma, CA Coutts, CobraBio-Manufacturing, Collins & Hayes, Ideal Shopping Direct, Oasis Healthcare, UKBetting, Universe Group, Clyde Marine have all been sold. Several other shareswere top-sliced DividendThe Board is recommending an increased annual dividend of 2p per ordinary sharefor the year ended 31 December 2004 (2003: 1.8p). This represents a doubling ofthe 1p per ordinary share paid for the Company's first full year of 1995. UpdateThe unaudited NAV at the 28 February 2005 was 142.1p per share, which means thatat the price of 105.5p on 28 February 2005 the shares stood at a discount of25.8 per cent. Without doubt, an improvement from the position twelve monthsago, but the directors would like to see a further improvement in the marketrating of our shares. OutlookThe past two years have seen a substantial re-rating take place in small capswhich was both welcome and long overdue. It is right, though, to be morecautious about 2005 particularly bearing in mind that it is election year. We donot know whether the hawks or doves will win the debate on interest rates andwhat effect this may have on the residential property market and on consumerspending generally. What we do know is that a carefully managed portfolio ofsmall caps has performed well in terms of both capital growth and providing arising dividend income over the past ten years. Your Board looks forward to thenext ten years with considerable confidence. Hugo Deschampsneufs Chairman 5 April 2005 ATHELNEY TRUST PLC STATEMENT OF TOTAL RETURN (incorporating the revenue account) FOR THE YEAR ENDED 31 DECEMBER 2004 Audited Results to 31 December 2004 Audited Results to 31 December 2003 Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Profits oninvestments - 535,518 535,518 - 584,517 584,517 Income 79,822 - 79,822 101,345 - 101,345 Investmentmanagementexpenses (6,810) (19,789) (26,599) (11,576) (11,576) (23,152) Other (38,199) - (38,199) (38,003) - (38,003)expenses ________ _________ _________ ________ _________ _________ Return onordinary activitiesbeforetaxation 34,813 515,729 550,542 51,766 572,941 624,707 Taxation 8,005 (90,367) (82,362) 8,855 (101,616) (92,761) ________ ________ _________ ________ ________ _________Return onordinary activitiesafter 42,818 425,362 468,180 60,621 471,325 531,946taxation Dividend (36,056) - (36,056) (32,450) - (32,450) ________ ________ _________ ________ ________ _________Transfer toreserves 6,762 425,362 432,124 28,171 471,325 499,496 ________ ________ _________ ________ ________ _________ Return perordinary share 2.4p 23.6p 26.0p 3.4p 26.1p 29.5p Dividend perordinary share -Final 2.0p 1.8pdividend 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 2004 2004 2003 (audited) (audited) £ £Fixed assetsInvestments 2,555,581 2,048,785 _________ _________ Current assets Debtors 116,514 87,392Cash at bank and in hand 61,311 74,593 _________ _________ 177,825 161,985 Creditors: amounts falling due within one year (57,673) (47,461) _________ _________ Net current assets 120,152 114,524 _________ _________Total assets less current liabilities 2,675,733 2,163,309 Provisions for liabilities and charges (244,100) (163,800) _________ _________Net assets 2,431,633 1,999,509 _________ _________ Capital and reserves Called up share capital 450,700 450,700Share premium account 405,605 405,605Other reserves - non distributableCapital reserve - realised 389,458 311,754Capital reserve - unrealised 1,129,445 781,787Revenue reserve 56,425 49,663 _________ _________ Shareholders' funds - all equity 2,431,633 1,999,509 _________ _________ Net Asset Value per share 134.9p 110.9p ATHELNEY TRUST PLC CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 (audited) (audited) £ £ £ £ Net cash inflow from operating activities 19,170 45,471 Servicing of finance Dividends paid (32,450) (30,648) ________ ________Net cash (outflow) fromservicing of finance (32,450) (30,648) Taxation Corporation tax paid - (373) Investing activities Purchases of investments ( 575,195) ( 385,319) Sales of investments 575,193 385,318 ________ ________Net cash (outflow) from investing activities ( 2) ( 1) ________ ________ (Decrease) / increase in cash in (13,282) 14,449the year ________ ________ Notes: 1. The figures included in the above statement are an abridged version ofAthelney's audited results for the year ended 31 December 2004 and do notconstitute statutory accounts within the meaning of Section 240 of the CompaniesAct 1985, as amended. The figures for the year ended 31 December 2003 areextracted from the statutory accounts filed with the Registrar of Companies andwhich contained an unqualified audit report. 2. The calculation for the return per ordinary share is based on thereturn on ordinary activities after taxation shown below and on the averageweighted number of shares in issue during the period of 1,802,802 (2003:1,802,802 ). 2004 2003 Revenue Capital Total Revenue Capital Total £ £ £ £ £ £ 42,818 425,362 468,180 60,621 471,325 531,946 3. Dividend information: Ex dividend date 13 April 2005Dividend payable to shareholders registered on 15 April 2005Dividend payable on 16 May 2005 4. Copies of this announcement are available, free of charge, for a periodof one month from Athelney's Nominated Advisor: Noble & Company Limited, 76 George Street, Edinburgh, EH2 3BU Copies of the full financial statements will be posted to shareholders on 6April 2005. 6 April 2005 END This information is provided by RNS The company news service from the London Stock Exchange