Final Results

CHELVERTON GROWTH TRUST PLC PRELIMINARY ANNOUNCEMENT OF RESULTS The Directors announce the unaudited statement of results for the year ended 31 August 2006 as follows:- INCOME STATEMENT For the year ended 31 August 2006 1 September 2005 1 September 2004 to 31 August 2006 to 31 August 2005 (restated)* Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 (Losses)/ gains on - (11) (11) - 825 825 investments at fair value Income 66 - 66 57 - 57 Investment management (49) (146) (195) (44) (134) (178) fee Other expenses (209) - (209) (211) - (211) Net return before finance costs and taxation (192) (157) (349) (198) 691 493 Interest payable (14) (41) (55) (8) (26) (34) Net return on ordinary activities before taxation (206) (198) (404) (206) 665 459 Taxation on ordinary - - - - - - activities Net return on ordinary activities after taxation (206) (198) (404) (206) 665 459 Revenue Capital Total Revenue Capital Total Pence Pence Pence Pence Pence Pence Return per Ordinary (1.14) (1.09) (2.23) (1.14) 3.67 2.53 share** The total column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. A separate Statement of Total Recognised Gains and Losses has not been prepared as all such gains and losses are included in the Income Statement. * For details of the restatement of the Company's comparative figures please refer to note 1. ** The return per Ordinary share is based on 18,141,939 (2005: 18,158,461) Ordinary shares, being the weighted average number of shares in issue during the year. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS For the year ended 31 August 2006 Share Share Capital Capital Revenue Total capital premium reserve redemption reserve account reserve £'000 £'000 £'000 £'000 £'000 £'000 Year ended 31 August 2006 1 September 2005 (as 182 2,674 400 7 4,011 7,274 originally stated) Restatements* - - (301) - - (301) 1 September 2005 182 2,674 99 7 4,011 6,973 (restated) Net return after - - (198) - (206) (404) taxation for the year 31 August 2006 182 2,674 (99) 7 3,805 6,569 Year ended 31 August 2005 1 September 2004 (as 182 2,674 (259) 7 4,217 6,821 originally stated) Restatements* - - (300) - - (300) 1 September 2004 182 2,674 (559) 7 4,217 6,521 (restated) Cost of shares - - (7) - - (7) repurchased Net return after - - 665 - (206) 459 taxation for the year (restated) 31 August 2005 182 2,674 99 7 4,011 6,973 (restated) * For details of the restatement of the Company's comparative figures please refer to note 1. BALANCE SHEET As at 31 August 2006 31 August 2006 31 August 2005 (restated)* £'000 £'000 Fixed assets Investments at fair value 7,946 6,878 Current assets Debtors 13 364 Cash at bank 24 41 37 405 Creditors - amounts falling due within one year Creditors 1,414 310 Net current (liabilities)/ assets (1,377) 95 Net assets 6,569 6,973 Share capital and reserves Called up share capital 182 182 Share premium account 2,674 2,674 Capital reserve - realised 1,989 1,537 - unrealised (2,088) (1,438) - capital redemption reserve 7 7 Revenue reserve 3,805 4,011 Equity shareholders' funds 6,569 6,973 Pence Pence Net Asset Value per Ordinary share 36.21 38.44 Ordinary shares in issue 18,141,939 18,141,939 * For details of the restatement of the Company's comparative figures please refer to note 1. STATEMENT OF CASH FLOWS For the year ended 31 August 2006 1 September 2005 1 September 2004 to 31 August 2006 to 31 August 2005 £'000 £'000 Operating activities Investment income received 67 69 Deposit interest received 1 5 Investment management fees paid (194) (178) Secretarial fees paid (44) (47) Other cash payments (165) (160) Net cash outflow from operating activities (335) (311) Returns on investments and servicing of finance Interest paid (38) (42) Net cash outflow from returns on investments (38) (42) and servicing of finance Investing activities Purchases of investments (2,167) (2,271) Sales of investments 1,415 3,302 Net cash (outflow)/ inflow from investing (752) 1,031 activities Financing Share repurchase - (7) Net cash (outflow)/ inflow (1,125) 671 (Decrease)/ increase in cash (1,125) 671 NOTES The above financial information does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. This financial information has been prepared on the basis of the accounting policies stated in the statutory accounts for the year ended 31 August 2005, with the exception of the changes stated below. The auditors have reported on those accounts; their report was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. The 31 August 2005 accounts have been delivered to the Registrar of Companies. Statutory accounts for the year ended 31 August 2006 have not yet been approved, audited or filed and will be delivered to the Registrar of Companies following the Annual General Meeting. The Company has adopted the Statement of Recommended Practice: Financial Statements of Investment Trust Companies issued in January 2003, revised in December 2005. 1 Changes in accounting policies These accounts have been prepared using new accounting standards ("revised UK GAAP") which have been issued to converge UK accounting standards with International Financial Reporting Standards. With effect from 1 September 2005, the Company has adopted the following Financial Reporting Standards ("FRS"): FRS 25 Financial Instruments: Disclosure and Presentation and FRS 26 Financial Instruments: Measurement All investments held by the Company are classified as `fair value through profit or loss'. For investments actively traded in organised financial markets, fair value is generally determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date. Previously all listed investments were valued using closing mid market prices at the balance sheet date. Comparatives for previous periods have been restated where necessary to reflect the changes in accounting policies. 2 Net asset value per share The net asset values have been calculated in accordance with the revised accounting policies set out in note 1. 31 August 2005 £'000 pence Net assets attributable to Ordinary shareholders (as originally stated) 7,274 40.10 Decrease due to using fair value of (301) (1.66) investments Net assets attributable to Ordinary 6,973 38.44 shareholders per revised UK GAAP CHAIRMAN'S STATEMENT In this past year the London stock market has been notable for the further rise in companies involved in the discovery and extraction of natural resources, supply of energy and property. Many of these companies have raised money from the Alternative Investment Market ("AIM"), and in our view their shares have risen beyond reasonable expectations. This fund does not invest in these speculative businesses, preferring to concentrate on companies with less volatility. In the short term, however, as we witnessed in 1999/2000, these companies divert attention from developing, quality businesses. Chelverton's net asset value per share has decreased this year from 38.44p to 36.21p - a decrease of 5.8%. In the same period the company's benchmark index, the FTSE All-Share, rose by 13.1%; the FTSE 100, which makes up over 90% of the All-Share Index rose 11.5%; and the AIM Index decreased by 4.8%. Since the merger in August 2001 the net asset value per share has increased by 10.9% compared to a rise of 16.1% in the FTSE All-Share Index and 1.9% in the AIM Index. Whilst this decline in the current year is disappointing, it is interesting to note that in the period since the year end the asset value has recovered by 3.0% to 37.28p. More detail is given in the Manager's report of the Company's Annual Report as to the reasons for the decline and an analysis of the types of company in which your fund is invested. The Company has not bought any more shares for treasury or cancellation as for long periods the share price was at a very small discount to the net asset value, particularly with the restatement of all of the valuations to a "bid" basis against a "mid-market" basis. With the recent improvement in the net asset value per share the discount has now widened, and once the company is no longer in a close period, shares could be acquired for treasury. David Horner, the Manager, has increased his holding to 1,330,000 (7.3%) with the purchase of an additional 80,000 shares through the year and has stated his intention, when not restricted by close periods, to keep acquiring shares. As part of the process of achieving greater value the Manager has volunteered to waive half of its entitlement under the investment management agreement for the foreseeable future. In addition, the fees paid to the Directors have also been reduced since the year end, and further cost savings have been achieved in other areas. Sir Terence Harrison has decided to retire at the Annual General Meeting. On behalf of shareholders I would like to thank him for his outstanding efforts and wise counsel since the fund was formed. The Board fully expects that the steady investment approach applied over the last few years will produce good results once the underlying quality and value in the portfolio is better recognised. Pratt Thompson Chairman 19 October 2006

Companies

Chelverton Growth Trust (CGW)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today