CGW.L Regulatory News (CGW)

13 Apr 2005 11:52

CHELVERTON GROWTH TRUST PLCPRELIMINARY ANNOUNCEMENT OF RESULTSThe Directors announce the unaudited statement of results for the period 1September 2004 to 28 February 2005 as follows:-SUMMARISED STATEMENT OF TOTAL RETURN(*incorporating the revenue account) of the Company Six months to Six months to 28 February 2005 29 February 2004 Revenue Capital Total Revenue Capital Total ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 ‚£'000 Gains on investments - 1,066 1,066 - 1,343 1,343 Dividends and interest 16 - 16 17 - 17 Investment management fee (23) (69) (92) (21) (64) (85) Other expenses (106) - (106) (108) - (108) Net return on ordinary activities before finance costs and (113) 997 884 (112) 1,279 1,167 taxation Interest payable and (6) (18) (24) (5) (14) (19)similar charges Transfer (from)/to (119) 979 860 (117) 1,265 1,148 reserves Revenue Capital Total Revenue Capital Total Pence Pence Pence Pence Pence Pence Return per Ordinary share (0.66) 5.40 4.74 (0.64) 6.87 6.23 \* The revenue column of this statement is the revenue account of the Company. All revenue and capital items in the above statement derive from continuing operations. BALANCE SHEETAs at 28 February 2005 As at As at As at 28 February 2005 31 August 29 February 2004 2004 (unaudited) (audited) (unaudited) ‚£'000 ‚£'000 ‚£'000 Fixed assets Investments 8,453 7,711 7,337 Current assets Debtors 108 33 11 Cash at bank 23 - 28 131 33 39 Creditors - amounts falling due within one year Bank overdraft 851 865 181 Creditors 52 58 44 903 923 225 Net current liabilities (772) (890) (186) Net assets 7,681 6,821 7,151 Share capital and reserves Share capital 182 182 182 Share premium account 2,674 2,674 2,674 Capital reserve 720 (259) 53 Capital redemption reserve 7 7 7 Revenue reserve 4,098 4,217 4,235 Total shareholders' funds 7,681 6,821 7,151 Pence Pence Pence Net Asset Value per Ordinary 42.29 37.55 39.37 Share (including current period revenue) Ordinary shares in issue at 18,163,814 18,163,814 18,163,814 period end Weighted average number of 18,163,814 18,280,414 18,398,294 Ordinary shares in issue during the period SUMMARISED STATEMENT OF CASHFLOWSFor the six months to 28 February 2005 Six months to Six months to 28 February 2005 29 February 2004 ‚£'000 ‚£'000 Net cash outflow from operating activities (166) (185) Servicing of finance Interest paid (23) (17) Final distribution from subsidiary - 27 undertaking Net cash (outflow)/inflow from (23) 10 servicing of finance Capital expenditure and financial investment Purchases of investments (612) (742) Sales of investments 838 1,706 Net cash inflow from capital expenditure and financial investment 226 964 Financing share repurchase - (133) Net cash inflow 37 656 Increase in cash 37 656 NOTEThe above financial information does not constitute statutory accounts asdefined in Section 240 of the Companies Act 1985. The statutory financialstatements for the Company for the year to 31 August 2004, which contained anunqualified auditors' report, have been lodged with the Registrar of Companiesand did not contain a statement required under Section 237(2) or (3) of theCompanies Act 1985.These financial statements have been prepared and are consistent with theaccounting standards and policies as stated at the previous year end with theexception of the valuation of listed investments, which are valued atmid-market value except where other factors necessitate further provisions.Chairman's StatementI am pleased to say that further progress has been made in the past six monthswith the Company's net asset value increasing to 42.29p per share as at 28February representing an increase of 12.62% on the year-end position of 37.55p.This compares with a rise of 12.70% in the FTSE All-Share index, the Company'sbenchmark index. For interest, this also compares with a rise of 11.42% overthe same period for the FTSE 100.As at 28 February 2005 your Company held 35 investment positions, up from 33 atthe year-end.Whilst it is pleasing to record that a number of our investments are makinggood progress, the most important development for Chelverton was the agreedcash offer for our largest holding, Merrydown. Merrydown is a producer ofMerrydown Vintage Cider and Schloer, a popular soft drink. Chelvertonparticipated in a refinancing of the company simultaneously with a newmanagement team taking over in 1998. The refinancing was at 45p and the sharesthen declined over the next two years as the business was turned around, andChelverton continued buying shares down to 25p per share. The work by thismanagement team only started to be recognised two years ago when the shareprice finally moved above the original refinancing price of 45p. The cash offeris at 170p per share; because it is being achieved by a scheme of arrangement,the proceeds are not to be paid until June.With the recent share price rise I am pleased to inform you that the discounthas narrowed further and at the 31 March 2005 was some 12.37%. With the interimreport we are sending a letter to shareholders offering them a free sharedealing service enabling all shareholders to sell up to 3,000 shares. Whilstthis facility is available to all shareholders, it could be of particularinterest to those with smaller holdings.As and when opportunities arise the Board will consider additional buy-backswith the view of further reducing the discount.David Horner, the Investment Manager, has increased his holding to 1,221,368shares (6.72%) with the purchase of an additional 215,000 shares in the firstsix months.Notwithstanding the recent rise in the overall Stock Market and the sustainedrise over the past two years in small companies, your Investment Managercontinues to come across interesting and undervalued situations.Whilst the focus of attention may, in the next few months, be more politicalthan economic, the general economy is currently proving to be helpful to mostof our companies, and we expect a continuing improvement in our investments.Pratt ThompsonChairmanEnquiries:William van HeesewijkChelverton Asset Management LtdTel: 020 7222 8989ENDCHELVERTON GROWTH TRUST PLC