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ATHELNEY TRUST PLC: INTERIM RESULTS
TO 30 JUNE 2003
Athelney Trust PLC, the AIM-listed investor in junior markets
and small companies, announces its unaudited interim results for
the six months to 30 June 2003.
Highlights:
- Unaudited Net Asset Value ("NAV") at 92.2p per share (30 June
2002: 99.4p, 31 December 2002 83.2p)
- Gross Revenue rose by 32.9 per cent to �32,092 (2002: �24,156).
On a like for like basis, after allowing for a dividend received
early and a special dividend, Gross Revenue increased by 14.1 per
cent
- Revenue return per ordinary share was 0.7p (2002: 0.3p), a rise
of 133 per cent
- Dividend decision to be made at year end
Athelney Chairman, Hugo Deschampsneufs, said: "The market
bottomed out on 12 March with the NAV improving steadily so that it
finished the half year at 92.2p, a rise of 16 per cent or so since
the end of February. Much of this rise could be attributed to the
so called Baghdad Bounce which came about because many of the dire
warnings regarding the cost and impact of the military campaign
proved ill-founded.
"So-called stealth taxes, it is estimated, have raised the
overall tax burden from 34.3 per cent to 38.5 per cent of GDP,
while the cost of red tape, largely borne by the small business
sector has increased by �20 billion since 1997. The Chancellor
reckons that borrowing will be about �24 billion per annum between
2003/4 and 2007/8, whereas the Institute of Fiscal Studies estimate
a figure of �40 billion in 2004/5. Either way, this Government of
New Labour has embarked on a course of tax, borrow and spend which
will put all previous spendthrift Old Labour governments into the
shade.
"Consideration of the dividend for 2003 will be left until the
final results are known. However, in the absence of unforeseen
circumstances, it is the Board's firm intention to recommend a
payment of at least 1.7p per share.
"Although we are probably due to pause for a period of quiet
contemplation and consolidation after such a strong rise in the
market, I return to what I said on 7 April this year, namely 'there
is every chance of a significant rally starting in 2003 to be
extended into the following year'. I can say no more".
-ends-
For further information:
Robin Boyle, Managing Director
Athelney Trust 020 7222 8989
Paul Quade
CityRoad Communicatio
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ATHELNEY TRUST
PLC
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INTERIM RESULTS FOR THE SIX MONTHS ENDED 30
JUNE 2003
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CHAIRMAN'S STATEMENT
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I have pleasure in enclosing the unaudited results for the six
months to 30 June 2003. The salient points
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are as follows:-
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* Unaudited Net Asset Value ("NAV") is 92.2p per share (31
December 2002 : 83.2p,
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30 June 2002: 99.4p), a rise of 10.8 per cent over six months,
but a fall of 7.3 per cent over
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the past year.
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* Gross Revenue rose by 32.9 per cent to � 32,092 compared with
the half year ended
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30 June 2002 of �24,156 and the full year to 31 December 2002 of
�60,328.
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On a like for like basis (after allowing for a dividend received
early and a special
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dividend ) Gross Revenue increased by 14.1 per cent.
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* Revenue return per ordinary share was 0.7p, an increase of 133
per cent
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( 31 December 2002: 1.3p, 30 June 2002: 0.3p).
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* As is the Board's practice, consideration of a dividend for
2003 will be left until the final
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results are known.
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The Market
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I am pleased to report that the view the Board
held in respect of prospects for markets in 2003 has proved to be
well founded. Athelney's Net Asset Value ("NAV") which stood at
99.4p on 30 June 2002 fell to 83.2p as at 31 December 2002, with a
further sickening lurch down to 79.4p only two months later at 28
February. However, the market bottomed out on 12 March with the NAV
improving steadily so that it finished the half-year at 92.2p, a
rise of 16 per cent or so since the end of February.
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Clearly, much of that rise could be attributed
to the so-called Baghdad Bounce which came about because many of
the dire warnings regarding the cost and impact of the military
campaign proved to be ill-founded, even though Mr Gordon Brown has
earmarked �3 billion for the conflict. Elsewhere, the Budget was
largely ignored by the market although there are certainly some
points worth making The Chancellor's GDP forecast of 2-2.5 per cent
growth for 2003/4 still looks too high as does 3-3.5 per cent for
2004/5. Higher National Insurance contributions will certainly
affect consumer spending since it is designed to take an extra �4
billion from individuals. So-called stealth taxes, it is estimated,
have raised the overall burden of tax from 34.3 per cent to 38.5
per cent of GDP, while the cost of red tape, largely borne by the
small business sector, has increased by �20 billion since 1997. The
Chancellor reckons that borrowing will be about �24 billion per
annum between 2003/4 and 2007/8 whereas the Institute of Fiscal
Studies estimate a figure of �40 billion in 2004/5. Either way,
this Government of New Labour has embarked on a course of tax,
borrow and spend which will put all previous spendthrift Old Labour
governments into the shade.
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Corporate activity has picked up recently, although this has yet
to have much impact on the Athelney portfolio with the exception of
Reed Executive, which was bought out by the controlling
family and Mallett, where we turned down a low tender
offer.
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Results
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Gross Revenue rose by 32.9 per cent in the six
months ended 30 June 2003 but this figure rather overstated the
actual position in that Athelney received a dividend from
Amalgamated Metals in June whereas it is normally paid in
the second half of the year. Furthermore, Gibbs & Dandy
paid a special dividend of �3,000 which is unlikely to be repeated
in future years. Taking account of these special factors, Gross
Revenue moved ahead by a highly satisfactory 14.1 per cent which
has even exceeded the equivalent figure for the whole of 2002,
namely 13.3 per cent. This, coupled with the rise in NAV of 10.8
per cent, points to what the Board believes is a satisfactory
overall performance so far this year.
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Portfolio Strategy
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As always, the Managing Director and Investment
Manager, Robin Boyle, is seeking undervalued small companies which
other fund managers may have overlooked. Furthermore, he is looking
for companies which are capable of distributing significantly
higher dividends to their shareholders over the next few years.
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Portfolio Review
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Since January, Genus and Enterprise
Inns shares have been top-sliced, Plasmon, Radstone
Technology, Intelek, NBA Quantum, Estates
& Agency, CRC Group, Alphameric,
Gowrings and Delcam have all been sold. Existing
holdings of Braemar Seascope, T Clarke, Galliford
Try, Waterman Partnership, Wintrust, WSP
Group, CA Coutts Holdings, Fountains, Pennant
International, Private & Commercial Finance and
Universe Group have been increased and new interests
acquired in James Beattie and Rok Property
Solutions.
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Dividend
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Consideration of the dividend for 2003 will be
left until the final results are known. However, in the absence of
unforeseen circumstances, it is the Board's firm intention to
recommend a payment of at least 1.7p per share (1.7p in 2002).
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Update
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The unaudited NAV at 31 July 2003 was 96.2p per share.
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Outlook
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Although we are probably due to pause for a
period of quiet contemplation and consolidation after such a strong
rise in the market, I return to what I said on 7 April this year,
namely that "there is every chance of a significant rally starting
in 2003 to be extended into the following year". I can say no
more.
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Hugo Deschampsneufs
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Chairman
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28 August 2003
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ATHELNEY TRUST
PLC
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NOTES TO THE INTERIM ACCOUNTS
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FOR THE SIX MONTHS ENDED 30 JUNE 2003
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1.
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The financial information contained in this report is unaudited
and does not constitute statutory
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accounts within the meaning of Section 240 of the Companies Act
1985 (as amended).
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The results for the year ended 31 December 2002 were reported on
by the auditors and received an
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unqualified report and contained no statement under Section
237(2) or (3) of the Companies Act
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1985 (as amended) and a copy of this has been filed with the
Registrar of Companies.
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2.
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The unaudited results have been prepared on the basis of the
accounting policies adopted in the
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audited accounts for the year ended 31 December 2002.
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3.
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The calculation of the return per ordinary share for the six
months ended 30 June 2003 is based on
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the return on ordinary activities after taxation and on the
average weighted number of shares in
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issue during the period of 1,802,802 (6 months ended 30 June
2002 : 1,802,802).
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4.
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Copies of the interim results for the six months ended 30 June
2003 will be sent to all shareholders as
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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, 76 George Street, Edinburgh EH2
3BU.
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