Athelney Tst. Regulatory News (ATY)

2 Sep 2005 07:00

Athelney Trust PLC02 September 2005 Embargoed 7am Friday September 2 2005 ATHELNEY TRUST PLC: INTERIM RESULTS Athelney Trust plc, the AIM-traded investor in junior markets and smallcompanies, announces its unaudited interim results for the six months ended June30 2005. Highlights •Unaudited Net Asset Value ("NAV") up 19.9 per cent at 143.6p per share (2004: 119.8p). Increase is 6.4 per cent over past six months •Gross Revenue rose 26.2 per cent to £39,600 (2004: £31,391). Increase is 16.7 per cent on like-for-like basis after allowing for early and special dividends •Revenue Return per Ordinary Share 1.2p (2004: 0.7p) •Unaudited NAV at 29 July of 145.6p per share Athelney Chairman, Hugo Deschampsneufs said: "After a whirlwind 2003 and 2004,when Athleney's NAV increased by 33.3 per cent and 21.6 per cent respectively,shareholders could be forgiven for being disappointed by the apparentlypedestrian 6.4 per cent rise over the past six months. "However, this is much more typical of the sort of return likely to be achievedover the next few years. Indeed when allowance is made for dividends received ofapproximately 1 per cent, the overall return compares most favourably with thatfrom holdings of gilts, cash, residential property and index-linked investments. "As is the Board's practice, consideration of a dividend for 2005 will be leftuntil the final results are known. It is also worth re-stating that the Boardwishes to pursue a steady and progressive strategy via regular increases in thedividend. "What we all need to do now is to keep interest rates low and credit plentiful.In these circumstances, the outlook for equity markets is likely to befavourable over an extended period of time. Rising dividend income, however, islikely to represent a higher proportion of overall returns than in the past". -ends- For further information: Robin Boyle, Managing DirectorAthelney Trust plc 020 7222 8989 Paul Quade 020 7248 8010CityRoad Communications 07947 186694 CHAIRMAN'S STATEMENT I have pleasure in announcing the unaudited results for the six months to 30June 2005. The salient points are as follows: •Unaudited Net Asset Value ("NAV") is 143.6p per share (31 December 2004: 134.9p, 30 June 2004: 119.8p), a rise of 6.4 per cent over six months and an increase of 19.9 per cent over the past year. •Gross Revenue rose by 26.2 per cent to £39,600 compared with the half year ended 30 June 2004 of £31,391 and the full year to 31 December 2004 of £79,822. •On a like-for-like basis (after allowing for a dividend received early and a special dividend in this half year), Gross Revenue increased by 16.7 per cent. •Revenue return per ordinary share was 1.2p, up 71.4 per cent from the previous half year (31 December 2004: 2.4p, 30 June 2004: 0.7p). •As is the Board's practice, consideration of a dividend for 2005 will be left until the final results are known. The Market After a whirlwind 2003 and 2004, when Athelney's NAV increased by 33.3 per centand 21.6 per cent respectively, shareholders could be forgiven for beingdisappointed by the apparently pedestrian 6.4 per cent rise over the past sixmonths. However, this is much more typical of the sort of return likely to beachieved over the next few years. Indeed, when allowance is made for dividendsreceived of approximately 1 per cent the overall return compares most favourablywith that resulting from holdings of gilts, cash, residential property andindex-linked investments. And yet the economic background is, on the face of it, not conducive to goodmarkets. Interest rates, although coming down, are still in my opinion far toohigh in a non-inflationary environment. Manufacturing industry is in technicalrecession having contracted in both Q1 and Q2. Oil hit $60 at the end of June,yet with political uncertainties, terrorism and a distinct shortage of refiningcapacity, only a cock-eyed optimist would predict a sharp fall to more sensiblelevels. Furthermore, the long awaited slowdown in house price inflation is wellunderway, although mortgage applications rose to a peak of 96,000 in Maycompared with only 77,000 last November. Government tax revenues will be way below those forecast by Mr. Brown since theeconomy is likely to grow by 2 per cent this year, rather than 3 to 3.5 percent. Having said all that, there are a number of factors which give cause forcautious optimism. Corporate profits, for instance, are buoyant, partly due tothe huge revenues being generated by the oil companies. Another importantcomponent is the trend to have everything made in China rather than manufactureit ourselves. Whilst the Renminbi remains massively undervalued and wage rates afraction of our own, the trend will continue as will the steady increase inoutsourcing which, when it works well, certainly adds to profits. Although economic growth is muted here in the UK and arguably less than that inthe Eurozone, the US continues to trundle along with growth of 3.5 per cent orso, while those two new heavyweights, India and China, are racing away at 7 percent and 9 per cent respectively. Results Gross Revenue rose by 26.2 per cent to £39,600 compared with the six months to30 June 2004. When due allowance is made for a special dividend from Latham(James) and S & U paying its final dividend on 3 June this year, several weeksearlier than in 2004, on a like-for-like basis Gross Revenue increased by 16.7per cent, which was still a most satisfactory result. NumberCompanies paying dividends 61Companies sold (therefore no true comparison) 9Companies purchased (therefore no true comparison) 10Increased total dividend in the half year 36Reduced total dividend in the half year 2No change in dividend 4 Corporate Activity Cash takeovers were completed in respect of three holdings: CountrysideProperties, Bristol & West Investments and Merrydown, the last representing aprofit of 296 per cent. Vantis also took over Numerica: in this case shares werepreferred to cash. At the time of writing, cash bids for James Beattie andBroadcastle seem likely to go through, Urbium is looking to do a deal, there isa long and tortuous MBO at Park Group which may or may not happen and Wyevale isunder pressure from a group of aggressive shareholders. Portfolio Review The following were purchased for the first time or were existing holdings whichhave been increased in size: Belhaven Group , Clinton Cards , Domestic & General, Treatt , Arbuthnot Banking (formerly Secure Trust Banking Group) , City LoftsGroup , Jarvis Securities, Nichols , Numerica Group , RWS Holdings , Tenon Groupand Urbium . ICM Computers and Patientline have been sold and the holding of Camellia hasagain been top-sliced. Dividend As is the Board's practice, consideration of a dividend for 2005 will be leftuntil the final results are known. It is also worth re-stating that the Boardwishes to pursue a steady and progressive strategy via regular increases in thedividend. Update The unaudited NAV at 29 July was 145.6p per share. On that same date, Athelneyshares were quoted at 119.5p so the discount to NAV was 17.9 per cent comparedwith 25.8 per cent at 28 February. The position continues to improve. Outlook What we all need to do now is to keep interest rates low and credit plentiful.In these circumstances, the outlook for equity markets is likely to befavourable over an extended period of time. Rising dividend income, however, islikely to represent a higher proportion of overall returns than in the past. Hugo Deschampsneufs Chairman 31 August 2005 Athelney Trust plc INTERIM STATEMENT OF TOTAL RETURN (INCORPORATING THE REVENUE ACCOUNT) FOR THE SIX MONTHS ENDED 30 JUNE 2005 Year ended Unaudited Unaudited 31 December 6 months ended 30 June 2005 6 months ended 30 June 2004 2004 Revenue Capital Total Revenue Capital Total Total £ £ £ £ £ £ £Profits oninvestments - 174,698 174,698 - 184,327 184,327 535,518Income 39,600 - 39,600 31,391 31,391 79,822 Investmentmanagementexpenses (3,875) (10,375) (14,250) (3,363) (9,853) (13,216) (26,599) Other expenses (17,946) - (17,946) (18,920) - (18,920) (38,199) ------- ------- ------- -------- -------- -------- ---------Return onordinaryactivitiesbeforetaxation 17,779 164,323 182,102 9,108 174,474 183,582 550,542 Taxation 3,692 (28,799) (25,107) 4,104 (26,637) (22,533) (82,362) ------- ------- ------- -------- -------- -------- ---------Return onordinaryactivitiesafter taxation 21,471 135,524 156,995 13,212 147,837 161,049 468,180 Dividend - - - - - - (36,056) ------- ------- ------- -------- -------- -------- ---------Transfer toreserves 21,471 135,524 156,995 13,212 147,837 161,049 432,124 ======= ======= ======= ======== ======== ======== ========= Return perordinary share 1.2p 7.5p 8.7p 0.7p 8.2p 8.9p 26.0p Athelney Trust plc INTERIM BALANCE SHEET AS AT 30 JUNE 2005 Unaudited Unaudited 30 June 2005 30 June 2004 31 December 2004 £ £ £Fixed assetsInvestments 2,759,392 2,216,684 2,555,581 --------- --------- ---------- Current assetsDebtors 90,852 107,871 116,514Cash at bank and in hand 21,884 37,539 61,311 --------- --------- ---------- 112,736 145,410 177,825Creditors: amountsfalling due withinone year (29,900) (36,536) (57,673) --------- --------- ----------Net current assets 82,836 108,874 120,152 --------- --------- ---------- Total assets lesscurrent liabilities 2,842,228 2,325,558 2,675,733Provisions forliabilities andcharges (253,600) (165,000) (244,100) --------- --------- ----------Net assets 2,588,628 2,160,558 2,431,633 ========= ========= ========== Capital and reservesCalled up sharecapital 450,700 450,700 450,700Share premiumaccount 405,605 405,605 405,605Other reserves - nondistributableCapital reserve -realised 479,588 449,882 389,458Capital reserve -unrealised 1,174,839 791,496 1,129,445Revenue reserve 77,896 62,875 56,425 --------- --------- ---------- Shareholders' funds- all equity 2,588,628 2,160,558 2,431,633 ========= ========= ========== Net Asset Value pershare 143.6p 119.8p 134.9p Athelney Trust plc CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2005 Unaudited Unaudited Year ended 6 months ended 6 months ended 31 December 2004 30 June 2005 30 June 2004 £ £ £ £ £Net cash (outflow) /inflow fromoperating activities (3,372) (4,604) 19,170 Servicing of financeDividends paid (36,056) (32,450) (32,450) ------- -------- ---------Net cash(outflow) fromservicing of finance (36,056) (32,450) (32,450) --------- TaxationCorporation tax paid - - - Investing activitiesPurchases ofinvestments (269,360) (382,084) (575,195)Sales ofinvestments 269,361 382,084 575,193 -------- -------- Net cash inflow /(outflow) from ---------investing activities 1 - (2) --------- ------- ------- ---------(Decrease) incash in the year (39,427) (37,054) (13,282) ======= ======= ========= Reconciliation of operatingnet revenue to net cash(outflow) / inflow from £ £ £operating activities Revenue returnon ordinaryactivitiesbefore taxation 17,779 9,108 34,813 (Increase) in debtors (3,452) (4,051) (398)(Decrease) / increase increditors (7,324) 192 4,544Managementexpenses chargedto capital (10,375) (9,853) (19,789) ------- ------- --------- (3,372) (4,604) 19,170 ======= ======= ========= Athelney Trust plc NOTES TO THE INTERIM ACCOUNTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 1. The financial information contained in this report is unaudited and does notconstitute statutory accounts within the meaning of Section 240 of the CompaniesAct 1985 (as amended). The results for the year ended 31 December 2004 werereported on by the auditors and received an unqualified report and contained nostatement under Section 237(2) or (3) of the Companies Act 1985 (as amended) anda copy of the audited accounts has been filed with the Registrar of Companies. 2. These unaudited results have been prepared on the basis of theaccounting policies adopted in the audited accounts for the year ended 31December 2004. 3. The calculation of earnings per share for the six months ended 30 June2005 is based on the attributable return on ordinary activities after taxationand on the average weighted number of shares in issue during the period. 6 months ended 30 June 2005 6 months ended 30 June 2004 Revenue Capital Total Revenue Capital Total £ £ £ £ £ £Attributable return onordinary activitiesafter taxation 21,471 135,524 156,995 13,212 147,837 161,049Number of shares 1,802,802 1,802,802Return per ordinaryshare 1.2p 7.5p 8.7p 0.7p 8.2p 8.9p 12 months ended 31 December 2004 Revenue Capital Total £ £ £Attributable return on 42,818 425,362 468,180ordinary activities after taxationNumber of shares 1,802,802Return per ordinary share 2.4p 23.6p 26.0p 4. Copies of the interim results for the six months ended 30 June 2005 will besent to all shareholders as soon as practicable. Copies of the interim resultswill be available free of charge for one month from the Company's NominatedAdviser: Noble & Company Limited, 76 George Street, Edinburgh EH2 3BU This information is provided by RNS The company news service from the London Stock Exchange