Final Results

Athelney Trust PLC
11 April 2007


Embargoed 7 am April 11 2007



                     ATHELNEY TRUST PLC: NAV AT RECORD HIGH





Athelney Trust plc, the AIM-traded investment company which invests in smaller
companies and junior markets, announces its audited results for the 12 months
ended 31 December 2006.


Highlights:


   •Net Asset Value ('NAV') up 20.3 per cent at 189.7p per share (2005:
    157.7p)
   •Revenue on a like-for-like basis rose 12.5 per cent; gross revenue up
    10.8 per cent at £95,614
   •Dividend income up 15 per cent
   •Revenue return per Ordinary Share up 22.2 per cent at 3.3p (2005: 2.7p)
   •Recommended annual dividend of 3.25p per share (2005: 2.5p) a 30 per cent
    rise


Chairman, Hugo Deschampsneufs, said: '2006 was another excellent year for
investors, despite all the problems and worries that many had at the start of
the year. However I have worries about hedge funds, private equity and the new
issue market. I believe all three should be watched extremely carefully in the
coming year and beyond by investors large and small.


'I remain positive on the long-term prospects of small caps, provided one stays
away from the high risk sectors. Selected small caps offer good value, rising
dividends, strong balance sheets and are targets for larger competitors and
financial buyers.


'However opaque prospects seem in the short-term, I am absolutely convinced that
each and every investor should hold a strong portfolio of small caps for
long-term growth and rising income'.


                                     -ends-


For further information:


Robin Boyle, Managing Director
Athelney Trust plc                                          020 7628 7937


Paul Quade                                                  07947 186694
CityRoad Communications                                     020 7248 8010







Chairman's Statement & Business Overview


I have pleasure in announcing the audited results for the twelve months to 31
December 2006.


The salient points are as follows:


   •Audited Net Asset Value ('NAV') is 189.7p per share (31 December 2005:
    157.7p) a rise of 20.3 per cent.

   •Gross Revenue increased by 10.8 per cent to £95,614 (31 December 2005:
    £86,265).

   •On a like-for-like basis revenue increased by 12.5 per cent and dividend
    income rose by 15 per cent.

   •Revenue return per ordinary share was 3.3p, an increase of 22.2 per cent
    (31 December 2005: 2.7p).

   •Recommended dividend for the year of 3.25p per share (2005: 2.5p), a rise
    of 30 per cent.



Review of 2006


This has been another excellent year for investors, despite all the problems and
worries that many had at the start of the year.  Could the world-wide bull
market continue for an amazing fourth year, we all asked ourselves in January?
Well, we now know that it could, thanks to no avian flu pandemic, a mild
hurricane season, no successful terrorist attack on the West and no big hedge
fund blow-up beyond Amaranth, which had wildly over-exposed itself to natural
gas prices.  There were plenty of nasty surprises, though, with Iraq and
Palestine moving to the brink of civil war, the summer conflict between Israel
and the Hezbollah, North Korea firing off nuclear weapons, Iran determined to
acquire some of the same and Russia turning into the school-yard bully under its
ex-KGB president. Despite these international factors, the price of crude oil
failed to stay high: there were confident forecasts in January that it could
spike at $100 a barrel (from $61) but, in the event, it hit $77 during the
Lebanon conflict and dropped to just over $50 by the turn of the year.  I
believe that this fall in the oil price was critical to the health of world
equity markets in 2006.


Interest rates rose in the U.S., the U.K., Europe and Japan: as a consequence,
the new housing market in America was badly hit although the impact of two rate
rises here at home was less marked, nor did they seem to have much effect on
inflation which finished the year at 3 per cent.  Indeed, there was considerable
scepticism as to whether that figure was high enough although I do not seem to
remember too many people pointing out that many consumer items have fallen in
price these last six years, such as used cars (an average of 3.6 per cent a
year), IT equipment (20 per cent), photographic stuff (8 per cent), clothing (6
per cent), toys (5 per cent) and new cars (2 per cent).


One constant and hugely positive factor last year was the tidal wave of global
liquidity (the sum of corporate cash, funds available for investment by
financial institutions and consumers' bank balances) which helped drive
equities, bonds and gilts to ever higher levels.  Investors' attitude to risk
changed as well: the spread between emerging market bonds, corporate debt and
U.S. Treasuries narrowed to all-time lows in December.  The reason?  Too many
investors moving into ever-riskier areas of the market as returns in their
traditional hunting grounds were squeezed.


Commodities on average fell by 15 per cent in 2006 but most other things did
well: China was the top-performing equity market (up by 138.4 per cent in Dollar
terms), followed by Venezuela (99 per cent), Russia (70.7 per cent) and India
(51.3 per cent).  Turkey, on the other hand, fell by 5.6 per cent and Saudi
Arabia by a striking 52.5 per cent.  In the U.K., the FTSE 100 Index rose by a
rather sedate 11 per cent whereas small caps., typically, were 17-18 per cent
higher over the year.


With an estimated $300bn in 'dry powder' (funds available for investment to you
and I), private equity had a major effect on 2006 and will again this year. At
its crudest, a private equity deal is no more than an old-fashioned asset-strip
(and paying themselves a huge dividend) and gearing up the balance sheet (and
paying themselves another huge dividend).  The aim is to 'strip and flip' in
three years by selling the husk onto gullible


investors.  As gearing ratios rise higher and higher, and the asking price
of suitable targets increases steadily, the risks of doing this type of business
are enough to make one sleep uneasily in one's bed.


Hedge funds are private pools of capital that are lightly regulated, often
borrow heavily to enhance returns and are sometimes paid enormous performance
fees to undertake quite simple tasks, such as borrowing at very low rates of
interest in Yen or Swiss Francs and lending at high rates in Australian or New
Zealand Dollars for instance.  Other strategies involve equities, bonds,
distressed debt and so on.  If 20 per cent of trading in equities on the New
York Stock Exchange and 30 per cent in London is accounted for by hedge funds,
as has been estimated, then I think that it is very natural to worry about this
opaque area of the fund management business.


Yet another area of concern is the new issue market in London.  The collapse of
the London-listed internet gaming shares following the Senate's effective ban on
their U.S. activities came just months after the controversial flotation of
Rosneft.  This Russian oil giant's prospectus included a 26-page risk statement
which acknowledged allegations that its assets were obtained via a
'conspiracy.'  AIM, the LSE's junior market, attracted companies as far apart as
Silicon Valley and China but more than a handful, in my opinion, and
particularly in mining, oil and gas, looked to be poorly put together with low
governance standards and speculative business plans.  The continued survival of
such companies should not be taken for granted.


Proponents of private equity, hedge funds and new issues will no doubt think
that the above comments are, to say the least, unkind.  Nevertheless, I believe
that all three should be watched extremely carefully in the coming year and
beyond by all investors, large and small.


Am I the only one to be worried about the flood of take-overs of major British
companies and the lack of reciprocity when our companies want to expand
overseas?  I suspect that I am.  As the year finished (I will use the old names
to remind you just how important they are), British Oxygen Company, British
Airports Authority, Associated British Ports and Pilkington Brothers have all
been absorbed by overseas buyers, British Steel, Scottish Power and
Gallagher were headed in the same direction and even the London Stock Exchange
was under attack by American rival NASDAQ.  For good or ill, take-overs were a
significant factor in 2006 and are likely to be so again this year.  As the
market in high quality equities continued to shrink, someone invented the word
'de-equitisation' when describing the short-term beneficial effect of take-overs
and cash buy-backs on the remaining stock of equities.


Finally under this sub-heading, it is interesting to read that India, after
years cast as China's underperforming neighbour, is now in hot pursuit. Over the
past year, the Indian economy has grown by an impressive 9.2 per cent, not far
behind China's 10.4 per cent.



Results


Gross Revenue increased 10.8 per cent compared to 2005. A breakdown of the
companies paying dividends is given below:

                                                                    Number
                                                                    --------
Companies paying dividends                                                  82
Companies sold (therefore no true comparison)                                9
Companies purchased (therefore no true comparison)                          17
Increased total dividend in the calendar year                               44
Reduced total dividend in the calendar year                                  7
No change in dividend                                                        5





Corporate Activity


Six of our companies were taken over in 2006: three were reported at the
half-way stage, namely PD Ports, Brandon Hire and Wyvale Garden Centres. In the
second half, cash offers were accepted in respect of Richmond Foods (a 24 per
cent profit on book value), MSB International (60.6 per cent) and Biotrace
International (44.6 per cent).



Portfolio Review


A total of fifteen holdings were purchased for the first time or were existing
holdings which were increased in the six months to 30 June; in the second half,
the following investments were purchased: Arden Partners, Dowgate Capital,
Broker Network Holdings, Johnson Service Group, Somero Enterprises, Hitachi
Capital (UK), Macfarlane Group, XP Power, City of London Investment Group,
Speymill Group and Tristel. Five investments were sold, all in the first half.



Dividend


The Board is pleased to recommend an increased annual dividend of 3.25p per
ordinary share for the year ended 31 December 2006 (2005: 2.5p). This represents
an increase of 30 per cent over the previous year. Subject to shareholder
approval at the Annual General Meeting on 23 May 2007, the dividend will be paid
on 25 May 2007 to shareholders on the register on 27 April 2007.



Update


The unaudited NAV at 28 February 2007 was 192.6p per share, whereas the share
price stood at 190p on the same date. Further updates can be found on
www.chelvertonam.com.





Outlook


I have already signposted my worries about hedge funds, private equity and the
new issue market: other concerns include the possible trend in interest rates
(particularly M. Trichet's propensity to push up rates in Euroland against all
evidence of static/falling output in France, Italy and elsewhere).  Mr.
Greenspan, the former Chairman of the Federal Reserve Bank, has taken to musing
in public about the likelihood (one chance in three, he believes) of America
sliding into recession - certainly, the housing market looks


to be in a dreadful mess in some states.  Not just that, but so-called
trailer-park lending is now throwing up huge bad debts.  Having said all that, I
remain positive on the long-term


prospects of small caps. provided one stays away from the high risk sectors.
Selected small caps. offer good value, rising dividends, strong balance sheets
and are targets for larger competitors and financial buyers.


Donald Rumsfeld, the then U.S. Defense Secretary said, 'I would not say that the
future is necessarily less predictable than the past.  I think that the past was
not predictable when it started.'  However opaque prospects seem in the
short-term, I am absolutely convinced that each and every investor should hold a
strong portfolio of small caps. for long-term growth and a rising income.






Hugo Deschampsneufs
Chairman
2 April 2007





ATHELNEY TRUST PLC


                           STATEMENT OF TOTAL RETURN
                      (incorporating the revenue account)


FOR THE YEAR ENDED 31 DECEMBER 2006


          Audited Results to 31 December 2006 Audited Results to 31 December 2005

              Revenue     Capital       Total    Revenue    Capital      Total
                    £           £           £          £          £          £
Profits on
investments         -     708,480     708,480          -    460,306    460,306

Income         95,615           -      95,615     86,265          -     86,265

Investment
management
expenses       (8,216)    (24,164)    (32,380)    (7,266)   (21,362)   (28,628)

Other 
expenses      (35,355)          -     (35,355)   (37,753)         -    (37,753)
               ________   _________   _________   ________  _________  _________

Return on
ordinary

activities
before
taxation       52,044     684,316     736,360     41,246    438,944    480,190

Taxation        8,278    (122,442)   (114,164)     7,579    (77,234)   (69,655)
               ________    ________   _________   ________   ________  _________
Return on
ordinary

activities
after         
taxation       60,322     561,874     622,196     48,825    361,710    410,535
               ________    ________   _________   ________   ________  _________



Return per
ordinary
share             3.3p       31.2p       34.5p       2.7p      20.1p      22.8p

Dividend
paid per
ordinary
share
- Final
dividend          2.5p                                 2p






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 2006




                                                           2006           2005
                                                      (audited)      (audited)
                                                              £              £
Fixed assets
Investments                                           3,706,392      2,985,922
                                                        _________      _________

Current assets

Debtors                                                 105,603        145,109
Cash at bank and in hand                                 32,486         40,048
                                                        _________      _________

                                                        138,089        185,157

Creditors: amounts falling due within one year          (50,797)       (33,769)
                                                        _________      _________

Net current assets                                       87,292        151,388
                                                        _________      _________
Total assets less current liabilities                 3,793,684      3,137,310

Provisions for liabilities and charges                 (374,390)      (295,142)
                                                        _________      _________
Net assets                                            3,419,294      2,842,168
                                                        _________      _________

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                              719,086        520,007
Capital reserve - unrealised                          1,723,399      1,360,604
Revenue reserve                                         120,504        105,252
                                                        _________      _________

Shareholders' funds - all equity                      3,419,294      2,842,168
                                                        _________      _________

Net Asset Value per share                                 189.7p         157.7p



                               ATHELNEY TRUST PLC


                              CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2006



                                                  2006                    2005
                                             (audited)               (audited)
                                        £            £          £            £

Net cash inflow from operating
activities                                      68,111                   3,487

Servicing of finance
Dividends paid                    (45,070)                (36,056)
                               ________                  ________

Net cash (outflow) from
servicing of finance              (45,070)                (36,056)

Taxation

Corporation tax paid                           (18,613)                 (2,017)

Investing activities

Purchases of investments       (1,103,978)               (529,075)
Sales of investments            1,091,988                 542,398
                               ________                  ________
Net cash (outflow)/inflow from

investing activities                           (11,990)                 13,323
                                                ________                ________

Decrease increase in cash in                
the year                                        (7,562)                (21,263)
                                                ________                ________



Notes:


1.       The figures included in the above statement are an abridged version of
Athelney's audited results for the year ended 31 December 2006 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 2005 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 (2005:
1,802,802 ).

                                     2006                                 2005
    Revenue         Capital         Total      Revenue      Capital      Total
        £               £               £          £            £            £
   60,322         561,874         622,196     48,825      361,710      410,535



3.       Dividend information:

Ex dividend date                                              25 April 2007
Dividend payable to shareholders registered on                27 April 2007
Dividend payable on                                           25 May 2007



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 11
April 2007.





11 April 2007


END







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