Interim Results

Athelney Trust PLC
31 August 2006






                       ATHELNEY TRUST plc: NAV CONTINUES

                            TO RISE AT INTERIM STAGE



Athelney Trust plc, the AIM-traded investor in small companies and junior
markets, announces its unaudited interim results for the six months ended 30
June 2006.


Highlights:


• Net Asset Value ('NAV') up 17.3 per cent at 164.5p per share (2005:
  140.2p)

• Gross revenue increased 14.1 per cent to £45,165 (2005: £39,600)

• Revenue return per ordinary share up 41.7 per cent at 1.7p (2005: 1.2p)

• Long term case for investment in small caps remains


Chairman Hugo Deschampsneufs said: 'As is the Board's practice consideration of
a dividend will be left until the final results are known. Nevertheless, the
Board wishes it to be known that it is keen to continue Athelney's record of
increasing the dividend steadily and progressively.


''My worry is that the central banks will go on increasing interest rates to the
stage where low growth/mild recession is more or less guaranteed just so they
can convince the markets of their anti-inflation credentials. The fact is that,
barring the effects of strong energy and metal prices, inflation is low in most
major economies.


'Furthermore auto and house sales are falling in America and growth in the
Eurozone is already patchy. Against this background, as opaque as I can ever
remember, it would be foolish to be aggressively optimistic. I believe, though,
that the long term case for investment in equities, and especially small caps,
remains intact'.


                                     -ends-


For further information:


Robin Boyle, Managing Director
Athelney Trust plc 020 7628 7937


Paul Quade 020 7248 8010
CityRoad Communications 07947 186694



CHAIRMAN'S STATEMENT



I have pleasure in announcing the unaudited results for the six months to 30
June 2006. The salient points are as follows:


   •Unaudited Net Asset Value ('NAV') is 164.5p per share (31 December 2005:
    154p, 30 June 2005: 140.2p - as restated, see Note 2 on page 10), a rise of
    6.8 per cent over six months and an increase of 17.3 per cent over the past
    year.
   •Gross Revenue rose by 14.1 per cent to £45,165 compared with the half
    year ended 30 June 2005 of £39,600 and the full year to 31 December 2005 of
    £86,265.
   •Revenue return per ordinary share was 1.7p, up 41.7 per cent from the
    previous half year (31 December 2005: 2.7p, 30 June 2005: 1.2p).
   •A dividend of 2.5p was paid in May 2006 (2005: 2p) and, as is the Board's
    practice, no further dividend will be paid until the full year's results are
    known.



The Market


It would seem that the days of 30 per cent annual growth are well and truly
behind us: unaudited net asset value (NAV) rising by 6.8 per cent in the first
six months of 2006. True, January to April seemed to be a period of tranquil
growth - unaudited NAV rose by about 10 per cent during that period but May and
June proved to be difficult, volatile and, in the main, unprofitable. In my
report to you in April, I mentioned a number of factors that made me feel
cautious at the time: rising Japanese interest rates which spoiled things for
those borrowing in yen and re-investing in high-yield markets like Dubai and
Reykjavik; seventeen successive rises in American interest rates could well be
eighteen by the time you read this statement; furthermore, the determination of
those in Frankfurt to raise rates just at a time when some European economies
are beginning to struggle was, I must say, rather alarming.


As far as international markets are concerned, the six months to 30 June
produced wildly differing results: Dubai (down 58.4 per cent), Egypt (down 24.9
per cent), Saudi Arabia (down 23 per cent), Turkey (down 14.5 per cent) and
South Korea (down 8 per cent). The biggest rises included Venezuela (up 49.7 per
cent), Shanghai (up 44 per cent) and Russia (up 28.6 per cent) so it was not all
bad news, especially for those countries exporting oil.


Sterling continued to perform really quite well: global reserve holdings of
sterling have doubled over the past two years, thus supplanting the yen as the
world's third-largest reserve currency. Not really surprising, when you remember
that it has risen by 18 per cent against the dollar and 30 per cent against the
yen over the last ten years and, giving an average three-month yield of 5.25 per
cent, sterling has been nicely profitable, too. Central banks of Sweden, UAE,
Switzerland, Qatar and Italy are all believed to have cut dollar exposure to buy
pounds although, being highly secret organizations, it is never easy to be
certain about their currency dealings. Having said that, I expect the yen to
perform well in the months ahead: Bank of Japan Governor Fukui has already
pushed through a rise in rates from 0.001 to 0.25 per cent and is clearly aiming
at a rate of, say, 1.5 per cent by the end of 2007. As far as the United States
is concerned, the new Chairman of the Fed., Ben Bernanke, has a very difficult
job to do to balance falling consumer confidence with rising interest rates and
may push rates up too far. As it is, I am expecting economic growth to slow
sharply in the second half of this year - perhaps to 3-3.5 per cent.


Growth will be slower than that in the U.K., perhaps 2.4 per cent in 2006 and
2.5 per cent in 2007 so, in my opinion, there is absolutely no need to increase
interest rates (in fact, five weeks after Athelney's balance sheet date, rates
were increased by 0.25 per cent). Finally, under this sub-heading, it is
striking just how well parts of the UK economy are faring; for instance, output
in the financial sector grew by 31 per cent from 2000 to 2005, double the
previous estimate of 15 per cent and, since most of this extra output was
exported, previously grim current-account deficits have narrowed from 2 per cent
to a revised 1.6 per cent in 2004 and 2.6 per cent to 2.2 per cent in 2005.


Results


Gross Revenue rose by a thoroughly satisfactory 14.1 per cent compared with the
six months to 30 June 2005. A breakdown of the companies paying dividends is
given below.


                                                          Number

Companies paying dividends                                 58


Companies sold (therefore no true comparison)               0

Companies purchased (therefore no true comparison)         11

Increased total dividends in the half year                 38

Reduced total dividends in the half year                    2

No change in dividend                                       7


Corporate Activity


Cash takeovers were completed in respect of three holdings: PD Ports, Brandon
Hire and Wyevale Garden Centres, producing a profit of 64.3 per cent, 96.2 per
cent and 794.7 per cent respectively. Since 30 June, Richmond Foods has been
acquired for cash.



Portfolio Review


The following were purchased for the first time or were existing holdings which
have been increased in size: Acertec, Arbuthnot Banking Group, AT Communications
Group, Belgravium Technologies, Biotrace International, Chime Communications,
City Lofts Group, Corporate Synergy Group, Davenham Group, Flying Brands,
Huntsworth, Idox, Litho Supplies, Nichols and Richmond Foods.

Goldshield Group, Watermark, Landround, Fountains and Clinton Cards have all
been sold.


Galliford Try, Stanley Gibbons Group, WSP Group, European Motor Holdings and
James Fisher were all top-sliced.


Dividend


As is the Board's practice, consideration of a dividend will be left until the
final results are known. Nevertheless, the Board wishes it to be known that it
is keen to continue Athelney's record of increasing the dividend steadily and
progressively.


Update


The unaudited NAV at 31 July was 165.3p per share. On that same date, Athelney
shares were quoted at 125p so the discount to NAV was 24.4 per cent compared
with 23.4 per cent as at 28 February.


Outlook


My worry is that the central banks will go on increasing interest rates to the
stage where low growth / mild recession is more-or-less guaranteed just so that
they can convince markets of their anti-inflation credentials. The fact of the
matter is that, barring the effects of strong energy and metal prices partly
because of the strength of the economies of China, India and Brazil, inflation
rates are low in most major economies. Furthermore, auto and house sales are
falling in America and growth in the Eurozone is already patchy. Nor do I
suspect that I am alone in worrying about the international tension emanating
from Iraq, Iran, Lebanon, Israel, Syria and so on. Against this background, as
opaque as I can ever remember, it would be foolish to be aggressively
optimistic. I believe, though, that the long-term case for investment in
equities, and especially small caps., remains intact. I particularly enjoyed
reading the results of American research which demonstrated that the probability
of losing money when investing for a day is 46 per cent, 42 per cent for one
week, 35 per cent for a month, 27 per cent for one quarter, 18 per cent for one
year, 17 per cent for five years and zero per cent for 10 years. The message is
clear.

H. B. Deschampsneufs
Chairman


                                 ATHELNEY TRUST PLC


                              INTERIM INCOME STATEMENT

                        (incorporating the revenue account)


                       FOR THE SIX MONTHS ENDED 30 JUNE 2006


                       Unaudited Results                 Unaudited Results
                    6 months ended 30 June 2006      6 months ended 30 June 2005

                Revenue    Capital      Total    Revenue    Capital      Total
                      £          £          £          £          £          £
Profits on
investments           -    178,417    178,417          -    174,698    174,698

Income           45,165          -     45,165     39,600          -     39,600

Investment
management
expenses         (4,015)   (11,787)   (15,802)    (3,875)   (10,375)   (14,250)

Other expenses  (17,352)         -    (17,352)   (17,946)         -    (17,946)
                 ________  _________  _________   ________  _________  _________

Return on
ordinary
activities
before
taxation         23,798    166,630    190,428     17,779    164,323    182,102

Taxation          6,537    (29,002)   (22,465)     3,692    (28,799)   (25,107)
                 ________   ________  _________   ________   ________  _________
Return on
ordinary
activities
after taxation   30,335    137,628    167,963     21,471    135,524    156,995
                 ________   ________  _________   ________   ________  _________

Dividends
Paid:

Dividend        (45,070)         -    (45,070)   (36,056)         -    (36,056)
                 ________   ________  _________   ________   ________  _________
Transfer to
reserves        (14,735)   137,628    122,893    (14,585)   135,524    120,939
                 ________   ________  _________   ________   ________  _________



Return per
ordinary
share               1.7p       7.6p       9.3p       1.2p       7.5p       8.7p

Dividend paid
per ordinary
share

- Final
dividend            2.5p                             2.0p



The revenue column of this statement is the profit and loss account for the
Company.

All revenue and capital items in the above statement derive from continuing
operations.

No operations were acquired or discontinued during the above financial years.

There have been no recognised gains or losses, other than the results for the
financial years shown above.



                               ATHELNEY TRUST PLC

                              INTERIM BALANCE SHEET

                                AS AT 30 JUNE 2006




                                                         2006            2005
                                                  (Unaudited)     (Unaudited)
                                                            £               £
Fixed assets
Investments                                         3,180,278       2,759,392
                                                     _________       _________

Current assets

Debtors                                               103,535          90,852
Cash at bank and in hand                               30,007          21,884
                                                     _________       _________

                                                      133,542         112,736

Creditors: amounts falling due within one year        (40,826)       (296,900)
                                                     _________       _________

Net current assets                                     92,716          82,836
                                                     _________       _________
Total assets less current liabilities               3,272,994       2,842,228

Provisions for liabilities and charges               (307,934)       (253,600)
                                                     _________       _________
Net assets                                          2,965,060       2,588,628
                                                     _________       _________

Capital and reserves

Called up share capital                               450,700         450,700
Share premium account                                 405,605         405,605
Other reserves - non distributable
Capital reserve - realised                            590,450         479,588
Capital reserve - unrealised                        1,427,789       1,174,839
Revenue reserve                                        90,517          77,896
                                                     _________       _________

Shareholders' funds - all equity                    2,965,061       2,588,628
                                                     _________       _________

Net Asset Value per share                               164.5p          143.6p





                               ATHELNEY TRUST PLC

                              CASH FLOW STATEMENT

                     FOR THE SIX MONTHS ENDED 30 JUNE 2006



                                     Unaudited                     Unaudited
                                 6 Months ended 30             6 Months ended 30
                                     June 2006                     June 2005
                             £                 £           £                 £

Net cash inflow from
operating

activities                                60,642                        (3,372)

Servicing of finance

Dividends paid         (45,070)                      (36,056)
                       ________                      ________
Net cash (outflow)
from servicing

of finance                               (45,070)                      (36,056)

Taxation

Corporation tax paid                           -                             -

Investing activities

Purchases of
investments           (433,030)                     (269,360)
Sales of
investments            407,417                       269,361
                      ________                      ________
Net cash (outflow)
from
investing
activities                               (25,613)                            1
                                         ________                      ________

(Decrease) /
increase in
cash in the
year                                     (10,041)                      (39,427)
                                         ________                      ________



Notes:


1.  The figures included in the above statement are an abridged version of
    Athelney's unaudited results for the six months ended 30 June 2006 and do 
    not constitute statutory accounts within the meaning of Section 240 of the 
    Companies Act 1985, as amended.


2.  The calculation for the return per ordinary share is based on the
    return on ordinary activities after taxation shown below and on the average
    weighted number of shares in issue during the period of 1,802,802 (2005:
    1,802,802 ).

                                     2006                                 2005
    Revenue         Capital         Total      Revenue      Capital      Total
        £               £               £          £            £            £
   30,335         137,628         167,963     21,471      135,524      156,995



3.  Copies of this announcement are available, free of charge, for a period
    of one month from Athelney's Nominated Advisor:


Noble & Company Limited, 76 George Street, Edinburgh, EH2 3BU


Copies of the Interim Accounts will be posted to shareholders on 
1 September 2006.







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