Final Results - Replacement
Athelney Trust PLC
06 April 2005
The following replaces the final results released at 7am under RNS number 6705K.
In the first highlight the NAV should have read 134.9p per share NOT 124.9 per
share.
ATHELNEY TRUST PLC: NAV UP 21.6 PER CENT ON YEAR
Athelney Trust plc, the AIM-listed investment company, announces its audited
results for the 12 months ended December 31 2004.
Highlights:
•Net Asset Value ('NAV') up 21.6 per cent at 134.9p per share (2003:
110.9p)
•Revenue up on like for like basis by 9.1 per cent but gross revenue down
21.2 per cent at £79,822 (2003: £101,345)
•Dividend income rose 6.4 per cent
•Revenue return per ordinary share down 29.4 per cent at 2.4p (2003: 3.4p)
•Recommended annual dividend of 2p per share (2003: 1.8p) a rise of 11 per
cent
Athelney Chairman, Hugo Deschampsneufs said: 'The gross revenue fall actually
hides the true position, which is one of steady growth in dividends from the
vast majority of our investments. In 2003, a total of £34,756 was received by
way of special dividends, including £30,756 as part of the proceeds from the
acquisition of Amalgamated Metal Corporation.
'In 2004 the only such dividend was from Stanley Gibbons. Taking the one-off
factors into account, gross revenue moved ahead on a like for like basis, which
when allied to the rise in NAV adds up to what the Board considers to be a year
of solid achievement.
'The past two years have seen a substantial re-rating take place in small caps
which was both welcome and overdue. It is right, though, to be cautious about
2005, particularly bearing in mind that it is election year.
'We do not know whether the hawks or doves will win the debate on interest rates
and what effect this may have on the residential property market and on consumer
spending generally.
'What we do know is that a carefully managed portfolio of small caps has
performed well in terms of both capital growth and in providing a rising
dividend income over the past 10 years. Your Board looks forward to the next 10
years with considerable confidence'.
-ends-
For further information:
Robin Boyle, Managing Director
Athelney Trust plc 020 7222 8989
Paul Quade 020 7248 8010
CityRoad Communications 07947 186694
CHAIRMAN'S STATEMENT
I have pleasure in enclosing the audited results for the twelve months to 31
December 2004. The key points are as follows:-
• Audited Net Asset Value ('NAV') is 134.9p per share (31 December 2003:
110.9p), a rise of 21.6 per cent.
• Gross Revenue fell by 21.2 per cent to £79,822 (31 December 2003: £101,345).
• On a like-for-like basis revenue was actually up by 9.1 per cent and dividend
income rose by 6.4 per cent.
• Revenue return per ordinary share was 2.4p, a decrease of 29.4 per cent
( 31 December 2003: 3.4p).
• Recommended dividend for the year of 2p per share (2003: 1.8p).
The Market
The year 2004, one of solid achievement for Athelney, was not at all
straightforward, despite the pleasing rise of 21.6% in the NAV to 134.9p per
share. For a start, the economic background was not particularly helpful: rising
interest rates both here and in America were an obvious sign that monetary
conditions remained on a tightening path.
Sterling continued to be strong against the Dollar but eased against the Euro -
such a mix was good at hiding inflation but bad for the UK balance of payments
position in relation to all those countries (starting with China) whose
currencies are pegged to the Dollar. Consumers continued to spend money like a
drunken sailor but that elusive combination - steady growth in both consumer and
business spending - was not achieved.
Rising interest rates eventually choked off the residential property market
although, with a huge aspirational demand for new properties, it would be in
nobody's interests to knock the housebuilders any further.
Oil prices averaged $41 per barrel and OPEC's official target of $25 - $30 per
barrel was quietly abandoned during the year. Gas prices, too, were very strong
and it is an unusual business indeed not to be adversely affected by these
increases, higher business rates and a tightening labour market.
Having said all that, small companies have now delivered a sustained spell of
outperformance: on 28 February 2003, the Athelney NAV was 79.4p per share, so
between that date and 31 December 2004, the Company has experienced a growth in
value of fully 69.9 per cent. Yes, there has been something of a rise in
corporate activity, but what has made a huge difference is that investors, both
individual and corporate (formerly victims of the increased volatility of blue
chips) now see the perceived risk of investing in small caps as being much
narrower.
Results
Gross revenue fell by 21.2 per cent to £79,822 in 2004. These figures actually
hide the true position, which is one of steady growth in dividends from the vast
majority of our investments. Additionally, in 2003, a total of £34,756 was
received by way of special dividends, including £30,756 as part of the proceeds
from the sale of Amalgamated Metal Corporation, whereas, in 2004, the only such
dividend was from Stanley Gibbons. Taking the one-off factors into account,
gross revenue moved ahead by a satisfactory 9.1 per cent which, when allied to
the 21.6 per cent rise in NAV, adds up to what the Board considers to be a year
of achievement.
The growth in dividend income is illustrated by the following table:-
Number
--------
Companies paying dividends 75
----
Companies sold (therefore no true comparison) 15
Companies purchased (therefore no true comparison) 14
Increased total dividend in the calendar year 41
Reduced total dividend in the calendar year 1
No change in dividend 4
Portfolio Review
In what has been quite a busy year, the following were purchased for the first
time or were existing holdings which were increased in size: Ben Bailey, Brandon
Hire, CD Bramall, Charles Taylor Consultancy, Countryside Properties, Erinaceous
Group, European Motor Holdings, Havelock Europa, Lookers, PD Ports, Robotic
Technology Systems, SCS Upholstery, J Smart & Co., Albemarle & Bond Holdings,
Bristol & West Investments, Collier C.R.E., Gooch & Housego, UK Betting,
Ultimate Leisure and Vantis.
C D Bramall, Christie Group, Ifx Group, Reed Health Group, Robotic Technology
Systems, Sportech, Wintrust, Alliance Pharma, CA Coutts, Cobra
Bio-Manufacturing, Collins & Hayes, Ideal Shopping Direct, Oasis Healthcare, UK
Betting, Universe Group, Clyde Marine have all been sold. Several other shares
were top-sliced
Dividend
The Board is recommending an increased annual dividend of 2p per ordinary share
for the year ended 31 December 2004 (2003: 1.8p). This represents a doubling of
the 1p per ordinary share paid for the Company's first full year of 1995.
Update
The unaudited NAV at the 28 February 2005 was 142.1p per share, which means that
at the price of 105.5p on 28 February 2005 the shares stood at a discount of
25.8 per cent. Without doubt, an improvement from the position twelve months
ago, but the directors would like to see a further improvement in the market
rating of our shares.
Outlook
The past two years have seen a substantial re-rating take place in small caps
which was both welcome and long overdue. It is right, though, to be more
cautious about 2005 particularly bearing in mind that it is election year. We do
not know whether the hawks or doves will win the debate on interest rates and
what effect this may have on the residential property market and on consumer
spending generally. What we do know is that a carefully managed portfolio of
small caps has performed well in terms of both capital growth and providing a
rising dividend income over the past ten years. Your Board looks forward to the
next ten years with considerable confidence.
Hugo Deschampsneufs
Chairman
5 April 2005
ATHELNEY TRUST PLC
STATEMENT OF TOTAL RETURN
(incorporating the revenue account)
FOR THE YEAR ENDED 31 DECEMBER 2004
Audited Results to 31 December 2004 Audited Results to 31 December 2003
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Profits on
investments - 535,518 535,518 - 584,517 584,517
Income 79,822 - 79,822 101,345 - 101,345
Investment
management
expenses (6,810) (19,789) (26,599) (11,576) (11,576) (23,152)
Other (38,199) - (38,199) (38,003) - (38,003)
expenses
________ _________ _________ ________ _________ _________
Return on
ordinary
activities
before
taxation 34,813 515,729 550,542 51,766 572,941 624,707
Taxation 8,005 (90,367) (82,362) 8,855 (101,616) (92,761)
________ ________ _________ ________ ________ _________
Return on
ordinary
activities
after 42,818 425,362 468,180 60,621 471,325 531,946
taxation
Dividend (36,056) - (36,056) (32,450) - (32,450)
________ ________ _________ ________ ________ _________
Transfer to
reserves 6,762 425,362 432,124 28,171 471,325 499,496
________ ________ _________ ________ ________ _________
Return per
ordinary
share 2.4p 23.6p 26.0p 3.4p 26.1p 29.5p
Dividend per
ordinary
share -
Final 2.0p 1.8p
dividend
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
BALANCE SHEET
AS AT 31 DECEMBER 2004
2004 2003
(audited) (audited)
£ £
Fixed assets
Investments 2,555,581 2,048,785
_________ _________
Current assets
Debtors 116,514 87,392
Cash at bank and in hand 61,311 74,593
_________ _________
177,825 161,985
Creditors: amounts falling due within one year (57,673) (47,461)
_________ _________
Net current assets 120,152 114,524
_________ _________
Total assets less current liabilities 2,675,733 2,163,309
Provisions for liabilities and charges (244,100) (163,800)
_________ _________
Net assets 2,431,633 1,999,509
_________ _________
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 389,458 311,754
Capital reserve - unrealised 1,129,445 781,787
Revenue reserve 56,425 49,663
_________ _________
Shareholders' funds - all equity 2,431,633 1,999,509
_________ _________
Net Asset Value per share 134.9p 110.9p
ATHELNEY TRUST PLC
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003
(audited) (audited)
£ £ £ £
Net cash inflow from operating
activities 19,170 45,471
Servicing of finance
Dividends paid (32,450) (30,648)
________ ________
Net cash (outflow) from
servicing
of finance (32,450) (30,648)
Taxation
Corporation tax paid - (373)
Investing activities
Purchases of investments ( 575,195) ( 385,319)
Sales of investments 575,193 385,318
________ ________
Net cash (outflow) from
investing activities ( 2) ( 1)
________ ________
(Decrease) / increase in cash in (13,282) 14,449
the year
________ ________
Notes:
1. The figures included in the above statement are an abridged version of
Athelney's audited results for the year ended 31 December 2004 and do not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985, as amended. The figures for the year ended 31 December 2003 are
extracted from the statutory accounts filed with the Registrar of Companies and
which contained an unqualified audit report.
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 (2003:
1,802,802 ).
2004 2003
Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
42,818 425,362 468,180 60,621 471,325 531,946
3. Dividend information:
Ex dividend date 13 April 2005
Dividend payable to shareholders registered on 15 April 2005
Dividend payable on 16 May 2005
4. 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 full financial statements will be posted to shareholders on 6
April 2005.
6 April 2005
END
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