Interim Results

Athelney Trust PLC
03 September 2004

                      ATHELNEY TRUST PLC: INTERIM RESULTS


Athelney Trust PLC, the AIM-listed investor in junior markets and small
companies, announces its unaudited results for the six months to 30 June 2004.


Highlights:

     • Net Asset Value up 29.9 per cent at 119.8p per share (2003: 92.2p)
     • Gross Revenue up 13.8 per cent on a like for like basis at £31,391
     • Revenue return static at 0.7p per share
     • Small company investment scene still favourable

Athelney Chairman, Hugo Deschampneufs, said:  'I think this is a most
satisfactory result underlining the dual attractions of investing in quality
small companies, namely those with prospects of capital growth plus a steadily
growing income.

'In Athelney's first full year, the company paid 1p per share to shareholders -
nine years later in 2003, the annual dividend, after a number of increases in
intervening years, had increased to 1.8p per share.  Nothing is guaranteed in
this life, but my opinion is that this steady progression is likely to continue
for the foreseeable future.

'It is difficult to imagine what precisely might happen to re-awaken the market
from its late-summer sleep.  Nevertheless, the economic background is broadly
favourable to equity investment generally - and small company investment in
particular - and at some point in the future, perhaps first quarter of 2005,
buyers for strong, well-managed small companies will return.

'Athelney, however, will continue to seek out those investment opportunities
that have benefited its shareholders in the past and will do so in the future'.


                                     -ends-

For further information:

Robin Boyle, Managing Director
Athelney Trust PLC                               020 7222 8989

Paul Quade
CityRoad Communications                          020 7334 0243




                           CHAIRMAN'S STATEMENT

I have pleasure in enclosing the unaudited results for the six months to 30
June 2004.  The salient points
are as follows:-

•    Unaudited Net Asset Value ('NAV') is 119.8p per share (31 December 2003
     : 110.9p, 30 June 2003: 92.2p), a rise of 8.0 per cent over six months and 
     an increase of 29.9 per cent over the past year.
•    Gross Revenue fell by 2.2 per cent to £ 31,391 compared with the half
     year ended 30 June 2003 of £32,092 and the full year to 31 December 2003 of
     £101,345.
•    On a like for like basis (after allowing for a dividend received
     early and a special dividend in the previous half year), Gross Revenue 
     increased by 13.8 per cent.
•    Revenue return per ordinary share was 0.7p,  the same as the previous
     half year.     (31 December 2003: 3.4p, 30 June 2003:  0.7p).
•    As is the Board's practice,  consideration of a dividend for 2004 will
     be left until the final results are known.

The Market

Investors - and who can blame them - have been obsessed with a number of
domestic issues such as rising interest rates and international problems like
terrorism and the rapid rise in commodity prices such as oil, coal and
aluminium.

Against this slightly unforgiving background, I am pleased to report that
Athelney's NAV rose by 8.0% in the six months to 30 June 2004 and 29.9% over the
past twelve months.  On a like-for-like basis, Gross Revenue (principally
dividend income) rose by 13.8%: again, I think that this is a most satisfactory
result underlining the dual attractions of investing in quality small companies,
namely those with prospects of capital growth plus a steadily growing income.
In Athelney's first full year, the company paid 1p per share to shareholders -
nine years later, in 2003, the annual dividend, after a number of increases in
intervening years, had increased to 1.8p per share. Nothing is guaranteed in
this life, but my opinion is that this steady progression is likely to continue
for the foreseeable future.

Markets seem more or less becalmed at the moment and it is difficult to foresee
what event or situation might come along to change things. Change they will,
though, but it may be the first quarter of 2005 before investors remember that
low inflation, lowish interest rates and gently rising corporate profitability
against a background of low unemployment is good for markets and have confidence
to re-invest in equities.

Results

Gross Revenue fell by 2.2% to £31,391 compared to the six months ended 30 June 2003
although, on a like-for-like basis, the strong upward trend continued with a rise
of 13.8%. To illustrate this point further, I give below a breakdown of dividend
increases and reductions:-

                                                       Number
Companies paying dividends                                 62
                                                       ========
Companies sold (therefore no true comparison)              12
Companies purchased (therefore no true comparison)         12
Increased total dividend in the half year                  30
Reduced total dividend in the half year                     2
No change in dividend                                       6

Portfolio Review

During the first half of 2004, new purchases were made of the following: Ben
Bailey, Brandon Hire, CD Bramall,Countryside Properties, European Motor
Holdings, Havelock Europa, Lookers, J Smart & Co., Sportech, Albemarle & Bond
Holdings, Fitzhardinge, Gooch & Housego, UK Betting and Ultimate Leisure. A
further four existing holdings increased in size.

CD Bramall (the cash offer from Pendragon was accepted), Christie Group, Reed
Health Group, Cobra Bio-Manufacturing, Ideal Shopping Direct and Clyde Marine
have all been sold with some thirteen others top-sliced.

Dividend

As is usual, the Directors will recommend a dividend for 2004 when the results
for the year are known.

Close Company Status

It has recently come to the Board's attention that, because of certain share
transactions, your company is now a close company for tax purposes. The effect
of this is that Athelney's rate of corporation tax will rise from 19% to 30%:
as a consequence any realised gains will be subject to a higher tax rate and
the calculation of the deferred tax liability will also rise proportionately.
If this tax rate had been applied at 30 June 2004 the effect would have been to
reduce profit after taxation from £161,049 to £53,298 and the net asset value
per share from 119.8p to 113.9p.

Your Board is actively seeking a solution to this problem which might include
certain large shareholders agreeing to reduce their holdings by disposing of
part or all of their holdings to new unconnected individuals, such that the
tests for close company status are no longer met. An alternative might be to
seek a listing for Athelney on the London Stock Exchange, where the test for
close companies is marginally easier to achieve. The additional benefit of a
listing on the London Stock Exchange is that, in time, Athelney could apply to
the Inland Revenue for authorised investment trust status, which, if granted,
would result in any capital gains being free of tax.

Clearly, if we are unable to resolve this issue by way of one of the above
routes then Athelney will be a close company for tax purposes with the
consequent reduction in profit after taxation and net asset value per share.


Update

The unaudited NAV at 31 July 2004 was 118.4p per share.


Outlook

It is difficult to imagine what precisely might happen to re-awaken the market
from its late-summer sleep. Nevertheless, the economic background is broadly
favourable to equity investment generally - and small company investment in
particular - and at some point in the future, perhaps first quarter 2005,
buyers for strong, well-managed small companies will return. Athelney, however,
will continue to seek out those investment opportunities that have benefited
its shareholders in the past and will do so in the future.



Hugo Deschampsneufs
Chairman

2 September 2004



                                               ATHELNEY TRUST PLC

                                       INTERIM STATEMENT OF TOTAL RETURN
                                      (INCORPORATING THE REVENUE ACCOUNT)
                                     FOR THE SIX MONTHS ENDED 30 JUNE 2004

                            Unaudited                       Unaudited                   31 December
                  6 months ended 30 June 2004        6 months ended 30 June 2003           2003

                  Revenue    Capital       Total   Revenue    Capital          Total      Total
                        £          £          £          £          £              £          £

Gains on                -     184327    184,327          -    184,039        184,039    584,517
investments
Income             31,391          -     31,391     32,092          -         32,092    101,345
                   
Investment         (3,363)    (9,853)   (13,216)    (5,808)    (5,808)       (11,616)   (23,152)
management
expenses
Other expenses    (18,920)         -    (18,920)   (17,849)             -    (17,849)   (38,003)
                   --------    -------   --------   --------    -----------    -------   --------
Return on
ordinary
Activities before   9,108    174,474    183,582      8,435        178,231    186,666    624,707
taxation

Taxation            4,104    (26,637)   (22,533)     4,310        (29,036)   (24,726)   (92,761)
                   --------   --------   --------   --------    -----------   --------   --------
Return on          13,212    147,837    161,049     12,745        149,195    161,940    531,946
ordinary
activities after   
taxation

Dividend                -          -          -          -              -          -    (32,450)
                   --------   --------   --------   --------    -----------   --------   --------
Transfer to        13,212    147,837    161,049     12,745        149,195    161,940    499,496
reserves           
                   ========   ========   ========   ========    ===========   ========   ========
Return per            0.7p       8.2p       8.9p       0.7p           8.3p       9.0p      29.5p
ordinary share


                               ATHELNEY TRUST PLC
                    INTERIM BALANCE SHEET AS AT 30 JUNE 2004

                                        Unaudited    Unaudited     Year ended
                                        30 June      30 June       31 December
                                        2004         2003          2003

                                                £            £               £
Fixed assets
Investments                             2,216,684    1,659,727       2,048,785
                                          ---------    ---------      ----------

Current assets
Debtors                                   107,871       78,427          87,392
Cash at bank and in hand                   37,539       29,303          74,593
                                          ---------    ---------      ----------
                                          145,410      107,730         161,985
Creditors: amounts falling due within     
one year                                  (36,536)      (9,778)        (47,461)

                                          ---------    ---------      ----------
Net current assets                        108,874       97,952         114,524
                                          ---------    ---------      ----------

Total assets less current               2,325,558    1,757,679       2,163,309
liabilities
Provisions for liabilities and           (165,000)     (95,726)       (163,800)
charges
                                          ---------    ---------      ----------
Net assets                              2,160,558    1,661,953       1,999,509
                                          =========    =========      ==========

Capital and reserves
Called up share capital                   450,700      450,700         450,700
Share premium account                     405,605      405,605         405,605
Other reserves - non distributable
Capital reserve - realised                449,882      257,003         311,754
Capital reserve - unrealised              791,496      514,408         781,787
Revenue reserve                            62,875       34,237          49,663
                                          ---------    ---------      ----------

Shareholders' funds                     2,160,558    1,661,953       1,999,509
                                          =========    =========      ==========

Net assets per share                        119.8p        92.2p          110.9p




                               ATHELNEY TRUST PLC
                          CASH FLOW STATEMETN FOR THE
                         SIX MONTHS ENDED 30 JUNE 2004

                                 Unaudited              Unaudited            Year ended
                              6 months ended         6 months ended          31 December
                               30 June 2004           30 June 2003           2003
                               £          £           £          £           £

Net cash (outflow)
/ inflow  from
operating activities                 (4,604)                  (192)     45,471


Servicing of finance
Dividends paid           (32,450)               (30,647)               (30,648)

                          --------               --------              ---------
Net cash (outflow)                  
from servicing of                                                      
finance                             (32,450)               (30,647)    (30,648)
                                                                       ---------
Taxation
Corporation tax                           
paid                                      -                      -        (373)

Investing activities
Purchases of            
investments             (382,084)              (125.525)              (385,319)
Sales of                 
investments              382,084                125.523                385,318
                          --------               --------

Net cash (outflow)
from investing                                                         ---------
activities                                -                     (2)         (1)
                                                                       ---------
                                      -------                -------   ---------
(Decrease) /                        
increase in cash in                   
the year                            (37,054)               (30,841)     14,449
                                      =======                =======   =========

Reconciliation of
operating net revenue
to net cash (outflow)
/ inflow from                             
operating activities                      £                                  £

Revenue return on                     
ordinary activities
before taxation                       9,108                  8,435      51,766
(Increase) /                         
decrease in
debtors                              (4,051)                (2,411)         43
Increase /                              
(decrease) in
creditors                               192                   (408)      5,238
Management expenses                  
charged to
capital                              (9,853)                (5,808)    (11,576)

                                     --------               --------   ---------
                                     (4,604)                  (192)     45,471
                                     ========               ========   =========



                                ATHELNEY TRUST PLC
                           NOTES TO THE INTERIM ACCOUNTS
                        FOR THE SIX MONTHS ENDED 30 JUNE 2004

 1.  The financial information contained in this report is unaudited and does 
     not constitute statutory accounts within the meaning of Section 240 of the 
     Companies Act 1985 (as amended).  The results for the year ended 31      
     December 2003 were reported on by the auditors and received an unqualified
     report and contained no statement under Section 237(2) or (3) of the 
     Companies Act 1985 (as amended) and a copy of the audited accounts has been 
     filed with the Registrar of Companies.

 2.  The unaudited results have been prepared on the basis of the accounting
     policies adopted in the audited accounts for the year ended 31 December 
     2003.

 3.  The calculation of earnings per share for the six months ended 30 June 2004 
     is based on the attributable return on ordinary activities after taxation 
     and on the average weighted number of shares in issue during the period.


                 6 months ended 30 June 2004     6 months ended 30 June 2003
                  Revenue   Capital    Total      Revenue   Capital    Total
                  £         £          £          £         £          £
Attributable
return on
ordinary          
activities after
taxation          13,212    147,837    161,049    12,745    149,195    161,940

Number of                            
shares                               1,802,802                       1,802,802

Return per        
ordinary share    0.7p       8.2p       8.9p      0.7p       8.3p       9.0p

                 12 months ended 31 December
                 2003
                 Revenue   Capital       Total
                       £          £          £
Attributable
return on
ordinary          
activities after
taxation          60,621    471,325    531,946

Number of         
shares            1,802,802

Return per           
ordinary share    3.4p      26.1p      29.5p

 4.  Copies of the interim results for the six months ended 30 June 2004 will be
     sent to all shareholders as soon as practicable.  Copies of the interim 
     results will be available free of charge for one month from the Company's 
     Nominated Advisor:

     Noble & Company Limited
     76 George Street
     Edinburgh
     EH2 3BU


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