Interim Results

Athelney Trust PLC
02 September 2005



Embargoed 7am Friday September 2 2005

                      ATHELNEY TRUST PLC: INTERIM RESULTS

Athelney Trust plc, the AIM-traded investor in junior markets and small
companies, announces its unaudited interim results for the six months ended June
30 2005.

Highlights

   •Unaudited Net Asset Value ('NAV') up 19.9 per cent at 143.6p per share
    (2004: 119.8p). Increase is 6.4 per cent over past six months

   •Gross Revenue rose 26.2 per cent to £39,600 (2004: £31,391). Increase is
    16.7 per cent on like-for-like basis after allowing for early and special
    dividends

   •Revenue Return per Ordinary Share 1.2p (2004: 0.7p)

   •Unaudited NAV at 29 July of 145.6p per share

Athelney Chairman, Hugo Deschampsneufs said: 'After a whirlwind 2003 and 2004,
when Athleney's NAV increased by 33.3 per cent and 21.6 per cent respectively,
shareholders could be forgiven for being disappointed by the apparently
pedestrian 6.4 per cent rise over the past six months.

'However, this is much more typical of the sort of return likely to be achieved
over the next few years. Indeed when allowance is made for dividends received of
approximately 1 per cent, the overall return compares most favourably with that
from holdings of gilts, cash, residential property and index-linked investments.

'As is the Board's practice, consideration of a dividend for 2005 will be left
until the final results are known. It is also worth re-stating that the Board
wishes to pursue a steady and progressive strategy via regular increases in the
dividend.

'What we all need to do now is to keep interest rates low and credit plentiful.
In these circumstances, the outlook for equity markets is likely to be
favourable over an extended period of time. Rising dividend income, however, is
likely to represent a higher proportion of overall returns than in the past'.

                                     -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 announcing the unaudited results for the six months to 30
June 2005. The salient points are as follows:

   •Unaudited Net Asset Value ('NAV') is 143.6p per share (31 December 2004:
    134.9p, 30 June 2004: 119.8p), a rise of 6.4 per cent over six months and an 
    increase of 19.9 per cent over the past year.

   •Gross Revenue rose by 26.2 per cent to £39,600 compared with the half
    year ended 30 June 2004 of £31,391 and the full year to 31 December 2004 of
    £79,822.

   •On a like-for-like basis (after allowing for a dividend received early
    and a special dividend in this half year), Gross Revenue increased by 16.7
    per cent.

   •Revenue return per ordinary share was 1.2p, up 71.4 per cent from the
    previous half year (31 December 2004: 2.4p, 30 June 2004: 0.7p).

   •As is the Board's practice, consideration of a dividend for 2005 will be
    left until the final results are known.

The Market

After a whirlwind 2003 and 2004, when Athelney's NAV increased by 33.3 per cent
and 21.6 per cent respectively, shareholders could be forgiven for being
disappointed by the apparently pedestrian 6.4 per cent rise over the past six
months. However, this is much more typical of the sort of return likely to be
achieved over the next few years. Indeed, when allowance is made for dividends
received of approximately 1 per cent the overall return compares most favourably
with that resulting from holdings of gilts, cash, residential property and
index-linked investments.

And yet the economic background is, on the face of it, not conducive to good
markets. Interest rates, although coming down, are still in my opinion far too
high in a non-inflationary environment. Manufacturing industry is in technical
recession having contracted in both Q1 and Q2. Oil hit $60 at the end of June,
yet with political uncertainties, terrorism and a distinct shortage of refining
capacity, only a cock-eyed optimist would predict a sharp fall to more sensible
levels. Furthermore, the long awaited slowdown in house price inflation is well
underway, although mortgage applications rose to a peak of 96,000 in May
compared with only 77,000 last November.

Government tax revenues will be way below those forecast by Mr. Brown since the
economy is likely to grow by 2 per cent this year, rather than 3 to 3.5 per
cent. Having said all that, there are a number of factors which give cause for
cautious optimism. Corporate profits, for instance, are buoyant, partly due to
the huge revenues being generated by the oil companies. Another important
component is the trend to have everything made in China rather than manufacture
it ourselves. Whilst the Renminbi remains massively undervalued and wage rates a
fraction of our own, the trend will continue as will the steady increase in
outsourcing which, when it works well, certainly adds to profits.

Although economic growth is muted here in the UK and arguably less than that in
the Eurozone, the US continues to trundle along with growth of 3.5 per cent or
so, while those two new heavyweights, India and China, are racing away at 7 per
cent and 9 per cent respectively.

Results

Gross Revenue rose by 26.2 per cent to £39,600 compared with the six months to
30 June 2004. When due allowance is made for a special dividend from Latham
(James) and S & U paying its final dividend on 3 June this year, several weeks
earlier than in 2004, on a like-for-like basis Gross Revenue increased by 16.7
per cent, which was still a most satisfactory result.

                                                       Number
Companies paying dividends                                 61
Companies sold (therefore no true comparison)               9
Companies purchased (therefore no true comparison)         10
Increased total dividend in the half year                  36
Reduced total dividend in the half year                     2
No change in dividend                                       4

Corporate Activity

Cash takeovers were completed in respect of three holdings: Countryside
Properties, Bristol & West Investments and Merrydown, the last representing a
profit of 296 per cent. Vantis also took over Numerica: in this case shares were
preferred to cash. At the time of writing, cash bids for James Beattie and
Broadcastle seem likely to go through, Urbium is looking to do a deal, there is
a long and tortuous MBO at Park Group which may or may not happen and Wyevale is
under pressure from a group of aggressive shareholders.

Portfolio Review

The following were purchased for the first time or were existing holdings which
have been increased in size: Belhaven Group , Clinton Cards , Domestic & General
, Treatt , Arbuthnot Banking (formerly Secure Trust Banking Group) , City Lofts
Group , Jarvis Securities, Nichols , Numerica Group , RWS Holdings , Tenon Group
and Urbium .

ICM Computers and Patientline have been sold and the holding of Camellia has
again been top-sliced.


Dividend

As is the Board's practice, consideration of a dividend for 2005 will be left
until the final results are known. It is also worth re-stating that the Board
wishes to pursue a steady and progressive strategy via regular increases in the
dividend.

Update

The unaudited NAV at 29 July was 145.6p per share. On that same date, Athelney
shares were quoted at 119.5p so the discount to NAV was 17.9 per cent compared
with 25.8 per cent at 28 February. The position continues to improve.

Outlook

What we all need to do now is to keep interest rates low and credit plentiful.
In these circumstances, the outlook for equity markets is likely to be
favourable over an extended period of time. Rising dividend income, however, is
likely to represent a higher proportion of overall returns than in the past.



                             Hugo Deschampsneufs
                                   Chairman
                                31 August 2005


                                  Athelney Trust plc

                          INTERIM STATEMENT OF TOTAL RETURN
                         (INCORPORATING THE REVENUE ACCOUNT)

                        FOR THE SIX MONTHS ENDED 30 JUNE 2005
                                                                            Year ended
                        Unaudited                     Unaudited            31 December
               6 months ended 30 June 2005   6 months ended 30 June 2004          2004
               Revenue   Capital     Total   Revenue   Capital     Total         Total
                     £         £         £         £         £         £             £
Profits on
investments          -   174,698   174,698         -   184,327   184,327       535,518
Income          39,600         -    39,600    31,391              31,391        79,822

Investment
management
expenses        (3,875)  (10,375)  (14,250)   (3,363)   (9,853)  (13,216)      (26,599)

Other expenses (17,946)        -   (17,946)  (18,920)        -   (18,920)      (38,199)
                 -------   -------   -------  --------  --------  --------     ---------
Return on
ordinary
activities
before
taxation        17,779   164,323   182,102     9,108   174,474   183,582       550,542

Taxation         3,692   (28,799)  (25,107)    4,104   (26,637)  (22,533)      (82,362)
                 -------   -------   -------  --------  --------  --------     ---------
Return on
ordinary
activities
after taxation  21,471   135,524   156,995    13,212   147,837   161,049       468,180

Dividend             -         -         -         -         -         -       (36,056)
                 -------   -------   -------  --------  --------  --------     ---------
Transfer to
reserves        21,471   135,524   156,995    13,212   147,837   161,049       432,124
                 =======   =======   =======  ========  ========  ========     =========

Return per
ordinary share     1.2p      7.5p      8.7p      0.7p      8.2p      8.9p         26.0p



                                Athelney Trust plc

                     INTERIM BALANCE SHEET AS AT 30 JUNE 2005

                                          Unaudited        Unaudited
                                       30 June 2005     30 June 2004      31 December
                                                                               2004
                                                  £                £              £
Fixed assets
Investments                               2,759,392        2,216,684      2,555,581
                                          ---------        ---------     ----------

Current assets
Debtors                                      90,852          107,871        116,514
Cash at bank and in hand                     21,884           37,539         61,311
                                          ---------        ---------     ----------
                                            112,736          145,410        177,825
Creditors: amounts
falling due within
one year                                    (29,900)         (36,536)       (57,673)
                                          ---------        ---------     ----------
Net current assets                           82,836          108,874        120,152
                                          ---------        ---------     ----------

Total assets less
current liabilities                       2,842,228        2,325,558      2,675,733
Provisions for
liabilities and
charges                                    (253,600)        (165,000)      (244,100)
                                          ---------        ---------     ----------
Net assets                                2,588,628        2,160,558      2,431,633
                                          =========        =========     ==========

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                                    479,588          449,882        389,458
Capital reserve -
unrealised                                1,174,839          791,496      1,129,445
Revenue reserve                              77,896           62,875         56,425
                                           ---------        ---------     ----------

Shareholders' funds
- all equity                              2,588,628        2,160,558      2,431,633
                                          =========        =========     ==========

Net Asset Value per
share                                         143.6p           119.8p         134.9p



                                 Athelney Trust plc

              CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2005

                                Unaudited              Unaudited          Year ended
                              6 months ended         6 months ended        31 December                                  
                                                                                  2004
                               30 June 2005           30 June 2004
                                   £         £            £         £              £
Net cash (outflow) /
inflow from
operating activities                     (3,372)                (4,604)        19,170

Servicing of finance
Dividends paid               (36,056)               (32,450)                 (32,450)
                             -------               --------                ---------
Net cash
(outflow) from
servicing of finance                   (36,056)               (32,450)       (32,450)
                                                                            ---------

Taxation
Corporation tax paid                         -                      -              -

Investing activities
Purchases of
investments                 (269,360)              (382,084)                (575,195)
Sales of
investments                  269,361                382,084                  575,193
                            --------               --------

Net cash inflow /
(outflow) from                                                              ---------
investing           
activities                                   1                      -             (2)
                                                                            ---------
                                        -------                -------      ---------
(Decrease) in
cash in the year                       (39,427)               (37,054)       (13,282)
                                        =======                =======      =========

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

Revenue return
on ordinary
activities
before taxation                         17,779                  9,108         34,813

(Increase) in debtors                   (3,452)                (4,051)          (398)
(Decrease) / increase in
creditors                               (7,324)                   192          4,544
Management
expenses charged
to capital                             (10,375)                (9,853)       (19,789)
                                        -------                -------      ---------
                                        (3,372)                (4,604)        19,170
                                        =======                =======      =========


                              Athelney Trust plc
                        NOTES TO THE INTERIM ACCOUNTS
                    FOR THE SIX MONTHS ENDED 30 JUNE 2005

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 2004 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.  These unaudited results have been prepared on the basis of the
accounting policies adopted in the audited accounts for the year ended 31
December 2004.


3.  The calculation of earnings per share for the six months ended 30 June
2005 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 2005      6 months ended 30 June 2004
                         Revenue     Capital     Total    Revenue     Capital     Total
                               £           £         £          £           £         £
Attributable return on
ordinary activities
after taxation            21,471     135,524   156,995     13,212     147,837   161,049
Number of shares                   1,802,802                        1,802,802
Return per ordinary
share                        1.2p        7.5p      8.7p       0.7p        8.2p      8.9p

                                            12 months ended 31 December 2004
                                           Revenue      Capital          Total
                                                 £            £              £
Attributable return on                      42,818      425,362        468,180
ordinary activities after taxation
Number of shares                                      1,802,802
Return per ordinary share                     2.4p        23.6p          26.0p


4. Copies of the interim results for the six months ended 30 June 2005 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
Adviser: Noble & Company Limited, 76 George Street, Edinburgh EH2 3BU




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