Half-year Report

CHELVERTON SMALL COMPANIES DIVIDEND TRUST PLC
HALF-YEARLY REPORT
For the six months ended 31 October 2016

The full Annual Report and Accounts can be accessed via the Investment Manager's website at www.chelvertonam.com or by contacting the Company Secretary on telephone [phone].

Investment Objective and Policy

The investment objective of Chelverton Small Companies Dividend Trust PLC (‘the Company’) is to provide Ordinary shareholders with a high income and opportunity for capital growth, having provided a capital return sufficient to repay the final capital entitlement of the Zero Dividend Preference shares issued by the subsidiary company, Chelverton Small Companies ZDP PLC (‘SCZ’).

Chelverton Small Companies Dividend Trust PLC, incorporated on 3 September 2003 with number 3749536, and its subsidiary Chelverton Small Companies ZDP PLC, incorporated on 13 July 2012 with number 8142169, together form the Group (‘the Group’). The Group’s funds are invested principally in smaller capitalised UK companies. The portfolio comprises companies listed on the Official List and companies admitted to trading on AIM. The Group does not invest in other investment trusts or in unquoted companies. No investment is made in preference shares, loan stock or notes, convertible securities or fixed interest securities.

Financial Highlights

	31 October	30 April
Capital	2016	2016	% change
Total net assets (£’000)	34,037	35,077	(2.97)
Net asset value per Ordinary share	205.66p	211.95p	(2.97)
Mid-market price per Ordinary share	191.50p	190.50p	0.52
Discount	6.89%	10.12%
Net asset value per Zero Dividend Preference share	127.56p	123.87p	2.98
Mid-market price per Zero Dividend Preference share	134.50p	127.50p	5.49
Premium	5.44%	2.93%
	Six months to Six months to
	31 October	31 October
Revenue	2016	2015	% change
Earnings per Ordinary share	6.67p	6.41p	4.07
Dividend per Ordinary share*	3.70p	3.40p	8.82
Total Return
Total return on Group’s net assets**	(0.21)%	13.85%

*  Dividend per Ordinary share includes the first interim paid and second interim declared for the period to 31 October 2016 and 2015 and will differ from the amounts disclosed within the statement of changes in net equity, owing to the timings of payments.

** Adding back dividends distributed in the period.

Interim Management Report

Results

This half-yearly report covers the six months to 31 October 2016. The net asset value per Ordinary share at 31 October 2016 was 205.66p down from 211.95p at 30 April 2016, a decrease of 2.97% in the past six months compared to an increase of 6.13% in the MSCI UK Small Cap Index.

Since the beginning of the Company’s financial year, the Ordinary share price has increased from 190.5p to 191.5p at 31 October 2016, an increase of 0.5%, whilst the discount has decreased from 10.12% to 6.9% over the same period. Since then the share price has increased further to 203p as at 12 December 2016.

Dividend

A first interim dividend of 1.85p (2015: 170p) per Ordinary share was paid on 3 October 2016. The Board has declared a second interim dividend of 1.85p per Ordinary share (2015: 1.70p) payable on 3 January 2017 to shareholders on the register on 9 December 2016, making a total for the half year of 3.70p per Ordinary share (2015: 3.40p) an increase of 8.8%. At present it is anticipated that the Company will maintain this level of dividend for the third quarter and will maintain the same level for the fourth interim as was paid last year making a total normal dividend of 7.95p for the year.

Portfolio

In the last six months we have increased our investment in seventeen of our existing holdings, taking advantage of lower share prices, including Alumasc Group, Belvoir Lettings, Braemar Shipping Services, Brewin Dolphin Holdings, Brown (N) Group, Centaur Media, DX Group, Foxtons Group, Galliford Try, Gattaca, Go-Ahead Group, Huntsworth, Low and Bonar, Martin McColls Retail Group, Regional REIT, RTC Group and St Ives.

During the period we have added three new names to the portfolio, Conviviality – drinks distributor and retailer, Victrex – producer of high performance polymers and Watkin Jones – property development and construction.

Funds were raised from the sale of nine of our holdings, Premier Farnell, Charlemagne Capital, Dee Valley Group and Avesco Group were all taken over in the period and NWF Group, RWS Holdings, Fenner, Ashmore Group and Electrocomponents were sold in their entirety. The following holdings were reduced as they grew to become larger weightings on lower yields, Dairy Crest Group, GVC Holdings, Intermediate Capital Group, KCOM Group and Sanderson Group.

Outlook

Following a strong recovery in the second three months of the period following the “knee-jerk” downward reaction by markets to the outcome of the Referendum vote Small and Mid-Cap companies are now consolidating these gains.

As we expected last year there has been a significant increase in takeover activity in the period. It is pleasing to highlight four takeovers in the portfolio over the past six months which is a considerable increase over any six month period for the past seven years. It is likely that there will be more takeovers in the next period.

The European situation with respect to Brexit, the migrant crisis, the Italian situation, the ongoing problems in Greece and Portugal and the uncertainty from multiple national elections have cast a cloud over European economic performance. UK growth remains solid and it is hoped that growth in the Eurozone will gradually begin to move more positively in the near future.

The dividends of the underlying companies continue be increased in a healthy manner and we believe that this will continue into 2017 with company balance sheets currently in a strong state.

Chelverton Asset Management
14 December 2016

Principal Risks

The principal risks facing the Group are substantially unchanged since the date of the Annual Report for the year ended 30 April 2016 and continue to be as set out in that report on pages 9 to 10. Risks faced by the Group include, but are not limited to, market risk, discount volatility, regulatory risk, financial risk and risks associated with banking counterparties.

Responsibility Statement of the Directors in respect of the Half-Yearly Report

We confirm that to the best of our knowledge:

• the condensed set of financial statements has been prepared in compliance with the IAS 34 ‘Interim Financial Reporting’ and gives a true and fair view of the assets, liabilities and financial position of the Group; and

• the interim management report and notes to the Half-Yearly Report include a fair view of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of the important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b)DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related party transactions described in the last annual report that could do so.

This Half-Yearly Report was approved by the Board of Directors on 14 December 2016 and the above responsibility statement was signed on its behalf by Lord Lamont, Chairman.

Condensed Consolidated Statement of Comprehensive Income (unaudited)
for the six months ended 31 October 2016

	Six months to 31 October 2016				Year to 30 April 2016
	Revenue		Capital	Total	Revenue	Capital	Total
	£’000		£’000	£’000	£’000	£’000	£’000
						(audited)
(Losses)/gains on investments at fair value through profit or loss	–		(690)	(690)	–	3,104	3,104
Investment income	1,270		–	1,270	2,180	–                 2,180
Investment management fee	(56)		(166)	(222)	(115)	(345)	(460)
Other expenses	(110)		(7)	(117)	(206)	(2)	(208)
Exchange differences	–		–	–	–	–	–
Net return/(deficit) before finance costs and taxation	1,104		(863)	241	1,859	2,757	4,616
Finance costs
Appropriations in respect of Zero Dividend
Preference shares	–		(313)	(313)	–	(597)	(597)
Net return/(deficit) before taxation	1,104		(1,176)	(72)	1,859	2,160	4,019
Taxation (see note 2)	–		–	–	–	–	–
Total comprehensive income for the period	1,104		(1,176)	(72)	1,859	2,160	4,019
	Revenue Capital			Total	Revenue	Capital	Total
	pence	pence		pence	pence	pence	pence
Earnings per:
Ordinary share (see note 3)	6.67		(7.11)	(0.44)	11.23	13.05	24.28
Zero Dividend Preference share (see note 3)	–		3.68	3.68	–	7.02	7.02

Six months to 31 October 2015

Revenue £’000	Capital £’000	Total £’000
			(Losses)/gains on investments at fair value
–	3,888	3,888	through profit or loss
1,223	–	1,223	Investment income
(58)	(175)	(233)	Investment management fee
(104)	4*	(100)	Other expenses
–	(1)	(1)	Exchange differences
			Net return/(deficit) before finance costs
1,061	3,716	4,777	and taxation
			Finance costs
			Appropriations in respect of Zero Dividend
–	(296)	(296)	Preference shares
1,061	3,420	4,481	Net return/(deficit) before taxation
–	–	–	Taxation (see note 2)
1,061	3,420	4,481	Total comprehensive income for the period
Revenue	Capital	Total
pence	pence	pence
			Earnings per:
			Ordinary share
6.41	20.66	27.07	(see note 3)
			Zero Dividend Preference share
n/a	3.48	3.48	(see note 3)

* During the period ended 31 October 2015 there were £6,000 of capital expenses paid by the Company, however after a £10,000 accrued capital expense for Stock Exchange listing fees had been written off, there was a positive £4,000 net position.

The total column of this statement is the Statement of Comprehensive Income of the Group prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European Union. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period. All of the net return for the period and the total comprehensive income for the period is attributed to the shareholders of the Group. The supplementary revenue and capital return columns are presented for information purposes as recommended by the Statement of Recommended Practice issued by the Association of Investment Companies (‘AIC’).

Condensed Consolidated Statement of Changes in Net Equity (unaudited)
for the six months ended 31 October 2016

	Share capital £’000	Share premium account £’000	Capital reserve £’000	Revenue reserve £’000	Total £’000
Six months ended 31 October 2016
30 April 2016	4,138	12,403	15,992	2,544	35,077
Total comprehensive income for the period	–	–	(1,176)	1,104	(72)
Dividends paid (see note 4)	–	–	–	(968)	(968)
31 October 2016	4,138	12,403	14,816	2,680	34,037
Year ended 30 April 2016 (audited)
30 April 2015	4,138	12,403	13,832	1,976	32,349
Total comprehensive income for the year	–	–	2,160	1,859	4,019
Dividends paid	–	–	–	(1,291)	(1,291)
30 April 2016	4,138	12,403	15,992	2,544	35,077
Six months ended 31 October 2015
30 April 2015	4,138	12,403	13,832	1,976	32,349
Total comprehensive income for the period	–	–	3,420	1,061	4,481
Dividends paid	–	–	–	(728)	(728)
31 October 2015	4,138	12,403	17,252	2,309	36,102

Condensed Consolidated Balance Sheet (unaudited)
as at 31 October 2016

Non-current assets	31 October 2016 £’000	30 April 2016 £’000 (audited)	31 October 2015 £’000
Investments at fair value through profit or loss	44,605	45,376	46,032
Current assets
Trade and other receivables	340	333	425
Cash and cash equivalents	59	29	329
	399	362	754
Total assets	45,004	45,738	46,786
Current liabilities
Trade and other payables	(125)	(132)	(456)
Total assets less current liabilities	44,879	45,606	46,330
Non-current liabilities
Zero Dividend Preference shares	(10,842)	(10,529)	(10,228)
Total liabilities	(10,967)	(10,661)	(10,684)
Net assets	34,037	35,077	36,102
Represented by:
Share capital	4,138	4,138	4,138
Share premium account	12,403	12,403	12,403
Capital reserve	14,816	15,992	17,252
Revenue reserve	2,680	2,544	2,309
Equity shareholders’ funds	34,037	35,077	36,102
Net asset value per: (see note 5)	pence	pence	pence
Ordinary share	205.66	211.95	218.14
Zero Dividend Preference share	127.56	123.87	120.33

Condensed Consolidated Statement of Cash Flows (unaudited)

for the six months ended 31 October 2016

Operating activities	Six months  to 31 October 2016 £’000	Year to 30 April 2016 £’000 (audited)	Six months to 31 October 2015 £’000
Investment income received	1,244	2,158	1,260
Refund of loan interest	–	2	–
Investment management fee paid	(221)	(510)	(219)
Administration and secretarial fees paid	(37)	(59)	(27)
Other cash payments	(122)	(133)	(98)
Net cash inflow from operating activities (see note 7)	864	1,458	916
Investing activities
Purchases of investments	(3,314)	(14,714)	(7,393)
Sales of investments	3,448	14,087	7,046
Net cash inflow/(outflow) from investing activities	134	(627)	(347)
Financing activities
Dividends paid	(968)	(1,291)	(728)
Net cash outflow from financing activities	(968)	(1,291)	(728)
Change in cash and cash equivalents for period	30	(460)	(159)
Exchange movements	–	–	(1)
Cash and cash equivalents at start of period	29	489	489
Cash and cash equivalents at end of period	59	29	329
Comprises of:
Cash and cash equivalents	59	29	329

Notes to the Condensed Half-Yearly Report
for the six months ended 31 October 2016

1  General information

The financial information contained in this Half-Yearly Report does not constitute statutory financial statements as defined in Section 434 of the Companies Act 2006. The statutory financial statements for the year ended 30 April 2016, which contained an unqualified auditors’ report, have been lodged with the Registrar of Companies and did not contain a statement required under the Companies Act 2006. These statutory financial statements were prepared under International Financial Reporting Standards (‘IFRS’) and in accordance with the Statement of Recommended Practice (‘SORP’): Financial Statements of Investment Trust Companies and Venture Capital Trusts issued by the AIC in November 2014, except to any extent where it conflicts with IFRS.

The Group has considerable financial resources and therefore the Directors believe that the Group is well placed to manage its business risks and also believe that the Group will have sufficient resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing this report.

This report has not been reviewed by the Group’s Auditors.

This report has been prepared using accounting policies adopted in the audited financial statements for the year ended 30 April 2016. This report has also been prepared in compliance with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union.

The Group has adequate financial resources and, as a consequence, the Directors believe that the Group is well placed to manage its business risks successfully and continue to adopt the going concern basis for this report.

2 Taxation

The Company has an effective tax rate of 0%. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company’s status as an Investment Trust and there is expected to be an excess of management expenses over taxable income and thus there is no charge for corporation tax.

3  Earnings per share

Ordinary shares

Revenue earnings per Ordinary share is based on revenue on ordinary activities after taxation of £1,104,000 (30 April 2016: £1,859,000, 31 October 2015: £1,061,000) and on 16,550,000 (30 April 2016: 16,550,000, 31 October 2015:

16,550,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

Capital earnings per Ordinary share is based on the capital loss of £1,176,000 (30 April 2016: capital profit of £2,160,000, 31 October 2015: capital profit of £3,420,000) and on 16,550,000 (30 April 2016: 16,550,000, 31 October 2015: 16,550,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

Zero Dividend Preference shares

Capital earnings per Zero Dividend Preference share is based on allocations from the Company of £313,000 (30 April 2016: £597,000, 31 October 2015: £296,000) and on 8,500,000 (30 April 2016: 8,500,000, 31 October 2015: 8,500,000) Zero Dividend Preference shares being the weighted average number of Zero Dividend Preference shares in issue during the period.

4  Dividends

During the period, a fourth interim dividend of 2.4p per Ordinary share and a special dividend of 1.6p per Ordinary share for the year ended 30 April 2016, together with a first interim dividend of 1.85p per Ordinary share for the year ending 30 April 2017, have been paid to shareholders.

In addition the Board has declared a second interim dividend of 1.85p per Ordinary share payable on 5 January 2017 to shareholders on the register at 18 December 2016.

5  Net asset values

Ordinary shares

The net asset value per Ordinary share is based on assets attributable of £34,037,000 (30 April 2016: £35,077,000, 31 October 2015: £36,102,000) and on 16,550,000 (30 April 2016: 16,550,000, 31 October 2015: 16,550,000) Ordinary shares being the number of shares in issue at the period end.

Zero Dividend Preference shares

The net asset value per Zero Dividend Preference shares is based on assets attributable of £10,842,000 (30 April 2016: £10,529,000, 31 October 2015: £10,228,000) and on 8,500,000 (30 April 2016: 8,500,000, 31 October 2015: 8,500,000) Zero Dividend Preference shares being the number of shares in issue at the period end.

6  Fair value hierarchy

Financial assets and financial liabilities of the Company are carried in the condensed Consolidated Balance Sheet at their fair value. The fair value is the amount at which the asset could be sold or the liability transferred in a current transaction between market participants, other than a forced or liquidation sale. For investments actively traded in organised financial markets, fair value is generally determined by reference to Stock Exchange quoted market bid prices and Stock Exchange Electronic Trading Services (‘SETS’) at last trade price at the Balance Sheet date, without adjustment for transaction costs necessary to realise the asset.

The Company measures fair values using the following hierarchy that reflects the significance of the inputs used in making the measurements. Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant assets as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume on an ongoing basis such that quoted prices reflect prices at which an orderly transaction would take place between market participants at the measurement date. Quoted prices provided by external pricing services, brokers and vendors are included in Level 1, if they reflect actual and regularly occurring market transactions on an arm’s length basis.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

2 inputs include the following:

• quoted prices for similar (i.e. not identical) assets in active markets;

• quoted prices for identical or similar assets or liabilities in markets that are not active. Characteristics of an inactive market include a significant decline in the volume and level of trading activity, the available prices vary significantly over time or among market participants or the prices are not current;

• inputs other than quoted prices that are observable for the asset (for example, interest rates and yield curves observable at commonly quoted intervals); and

• inputs that are derived principally from, or corroborated by, observable market data by correlation or other means (market-corroborated inputs).

Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

As at 31 October 2016, 30 April 2016 and 31 October 2015 all of the Company’s investments are classified as Level 1.

7  Reconciliation of net (deficit)/return before and after taxation to net cash inflow from operating activities

	31 October 2016 £’000	30 April 2016 £’000	31 October 2015 £’000
Net (deficit)/return before and after taxation	(72)	4,019	4,481
Net capital loss/(gain)	1,176	(2,160)	(3,420)
(Increase)/decrease in receivables	(43)	(19)	29
Decrease in payables	(24)	(35)	(3)
Interest and expenses charged to the capital reserve	(173)	(347)	(171)
Net cash inflow from operating activities	864	1,458	916

8  Related party transactions

The Group’s investments are managed by Chelverton Asset Management Limited, a company in which Mr van Heesewijk, a Director of the Company and the subsidiary, has an interest. The amounts paid to the Investment Manager in the period to 31 October 2016 were £222,000 (year ended 30 April 2015: £460,000, six months to 31 October 2015: £233,000).

At 31 October 2016 there were amounts outstanding to be paid to the Investment Manager of £53,000 (year ended 30 April 2016: £53,000, six months to 31 October 2015: £117,000).

Portfolio Investments
as at 31 October 2016

		Market value	% of
Holding	Sector	£'000	portfolio
Avesco Group	Media & Photography	2,030	4.6
Belvoir Lettings	Real Estate	1,705	3.8
Coral Products	Construction & Building Materials	1,200	2.7
Games Workshop Group	Leisure, Entertainment & Hotels	1,128	2.5
Martin McColl Retail Group	General Retailers	1,020	2.3
Moss Bros Group	Housing Goods & Textiles	990	2.2
Galliford Try	Construction & Building Materials	980	2.2
Connect Group	Industrials	963	2.2
Kier Group	Construction & Building Materials	951	2.1
Amino Technologies	Information Technology Hardware	912	2.0
Mucklow (A&J) Group	Investment Companies	887	2.0
Alumasc Group	Construction & Building Materials	882	2.0
GLI Finance	Investment Companies	880	2.0
Shoe Zone	General Retailers	825	1.9
Marston's	Leisure, Entertainment & Hotels	802	1.8
StatPro Group	Support Services	781	1.8
Dee Valley Group	Water	758	1.7
Photo-Me International	Media & Photography	755	1.7
Jarvis Securities	Speciality & Other Finance	750	1.7
Hansard Global	Insurance	745	1.7
KCOM Group	Telecommunications Services	706	1.6
Low & Bonar	Housing Goods & Textiles	700	1.6
Acal	Electronic & Electrical Equipment	693	1.6
Town Centre Securities	Real Estate	684	1.5
Numis Corporation	Speciality & Other Finance	673	1.5
Brown (N) Group	General Retailers	667	1.5
St.Ives	Support Services	665	1.5
Wilmington Group	Support Services	644	1.4
Randall & Quilter Insurance	Investment	640	1.4
Chesnara	Insurance	634	1.4
Braemar Shipping Services	Support Services	630	1.4
Cape	Diversified Industrials	621	1.4
Clarke (T)	Electronic & Electrical Equipment	615	1.4
Bloomsbury Publishing	Media & Photography	602	1.3
Foxtons Group	Real Estate	588	1.3
Bioventix	Pharmaceuticals	563	1.3
Electrocomponents	Support Services	559	1.3
GVC Holdings	Software & Computer Services	557	1.2
Polar Capital Holdings	Investment Companies	557	1.2
DX Group	Transport	555	1.2
National Express Group	Transport	552	1.2
Park Group	Speciality & Other Finance	544	1.2
Centaur Media	Media & Photography	522	1.2
Fairpoint Group	Speciality & Other Finance	520	1.2
Macfarlane Group	Packaging	520	1.2
Brewin Dolphin Holdings	Speciality & Other Finance	520	1.2
Epwin Group	Construction & Building Materials	490	1.1
Dairy Crest Group	Consumer Goods	488	1.1
Intermediate Capital Group	Financials	484	1.1
Morgan Sindall Group	Construction & Building Materials	462	1.0
Sanderson Group	Software & Computer Services	462	1.0
Hilton Food Group	Food Producers & Processors	454	1.0
Orchard Funding Group	Speciality & Other Finance	445	1.0
Castings	Construction & Building Materials	420	0.9
Personal Group Holdings	Health	420	0.9
Go-Ahead Group	Transport	415	0.9
Novae Group	Insurance	402	0.9
Huntsworth	Support Services	400	0.9
Curtis Banks Group	Banks	390	0.9
RPS Group	Support Services	338	0.8
XP Power	Electronic & Electrical Equipment	337	0.8
Severfield	Construction & Building Materials	330	0.7
Chamberlin	Engineering & Machinery	325	0.7
Regional REIT	Investment Companies	317	0.7
Gattaca	Support Services	297	0.7
RTC Group	Support Services	273	0.6
Titon Holdings	Construction & Building Materials	263	0.6
Victrex	Chemicals	219	0.5
Conviviality	Beverages	205	0.5
Watkin Jones	Construction & Building Materials	147	0.3
Grafenia	Support Services	147	0.3
Total Investments		44,605	100.0

Shareholder Information

Financial calendar
Group’s year end: 30 April
Interim dividends paid: April, July, October and January
Annual results announced: June
Annual General Meeting: September
Group’s half year: 31 October
Half-Year results announced: December

Share prices and performance information
The Company’s Ordinary and Zero Dividend Preference shares issued through SCZ are listed on the London Stock Exchange.

The net asset values are announced weekly to the London Stock Exchange and published monthly via the AIC.

Information about the Group can be obtained on the Chelverton website atwww.chelvertonam.com. Any enquiries can also be e-mailed to [e-mail].

Share register enquiries
The registers for the Ordinary shares and Zero Dividend Preference shares are maintained by Share Registrars Limited. In the event of queries regarding your holding, please contact the Registrar on 01252 821390. Changes of name and/or address must be notified in writing to the Registrar.

Capital Structure

Chelverton Small Companies Dividend Trust PLC (‘the Company’)
The Company has in issue one class of Ordinary share. In addition, it has a wholly owned subsidiary SCZ, through which Zero Dividend Preference shares have been issued.

Ordinary shares of 25p each (‘Ordinary shares’) – 16,550,000 in issue
Dividends
Holders of Ordinary shares are entitled to dividends.
Capital
On a winding-up of the Company, Ordinary shareholders will be entitled to all surplus assets of the Company available after payment of the Company’s liabilities including the capital entitlement of the Zero Dividend Preference shares.
Voting
Each holder, on a show of hands, will have one vote and on a poll will have one vote for each Ordinary share held.

Chelverton Small Companies ZDP PLC (‘SCZ’)
Ordinary shares of 100p each (‘SCZ ordinary shares’) – 50,000 in issue (partly paid up as to 25p each)
The SCZ ordinary shares are wholly owned by the Company. References to Ordinary shares within this Half-Yearly Report are to the Ordinary shares of Chelverton Small Companies Dividend Trust PLC.
Capital
Following payment of any liabilities and the capital entitlement to the Zero Dividend Preference shareholders, ordinary shareholders are entitled to any surplus assets of SCZ.
Voting
Each holder, on a show of hands, will have one vote and on a poll will have one vote for each ordinary share held.

Zero Dividend Preference shares of 100p each – 8,500,000 in issue Dividends
Holders of Zero Dividend Preference shares are not entitled to dividends.
Capital
On a winding up of SCZ, after the satisfaction of prior ranking creditors and subject to sufficient assets being available, Zero Dividend Preference shareholders are entitled to an amount equal to 100p per share increased daily from 28 August 2012 at such compound rate as will give an entitlement to 136.7 pence per share at 8 January 2018.
Voting
Holders of Zero Dividend Preference shares are not entitled to attend, speak or vote at a general meeting of the Company (including the Company’s Annual General Meeting) unless the business of the meeting includes a resolution to vary, modify or abrogate the rights attached to the Zero Dividend Preference shares.
In the event that Zero Dividend Preference shareholders are entitled to attend a General Meeting each holder of Zero Dividend Preference shares, on a show of hands, will have one vote for every Zero Dividend Preference share held in relation to any resolutions applicable to Zero Dividend Preference shares.

Directors and Advisers
Directors
Lord Lamont of Lerwick (Chairman)
David Harris
William van Heesewijk
Howard Myles

Investment Manager
Chelverton Asset Management Limited
12b George Street
Bath
BA1 2EH
Tel: [phone]

Secretary and Registered Office
Maitland Administration Services Limited
Springfield Lodge
Colchester Road,
Chelmsford Essex
CM2 5PW
Tel: [phone]

Corporate Broker     
N+1 Singer Advisory LLP
1 Bartholomew Lane
London
EC2N 2AX

Registrar and Transfer Office
Share Registrars Limited
Suite E
First Floor
9 Lion and Lamb Yard
Farnham
Surrey
GU9 7LL
Tel: [phone]
www.shareregistrars.uk.com

Auditors         
Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Custodian
Jarvis Investment Management Limited
78 Mount Ephraim
Tunbridge Wells
Kent
TN4 8BS

Registered in England
No. 3749536
A member of the Association of Investment Companies