TIDMATY
RNS Number : 1109F
Athelney Trust PLC
26 July 2016
ATHELNEY TRUST PLC INTERIM RESULTS
CHAIRMAN'S STATEMENT AND BUSINESS REVIEW
I enclose the unaudited results for the six months to 30 June
2016. The salient points are as follows:
-- The overall return, which is the increase in NAV during the
half year plus the dividend paid, is minus 8.4 per cent.
-- Unaudited Net Asset Value (NAV) is 216.5p per share (31
December 2015: 245p, 30 June 2015: 236p), a decrease of 11.6 per
cent for the half year and a decrease of 8.3 per cent over the past
year.
-- Gross Revenue increased by 2 per cent to GBP116,257 compared
with the half year ended 30 June 2015 of GBP113,963 (full year to
31 December 2015 GBP218,309).
-- Revenue return per ordinary share was 4.9p (31 December 2015:
7.9p, 30 June 2015: 4.9p).
-- A final dividend of 7.9p was paid in April 2016 (2015: final dividend 6.7p).
Review of 1 January 2016 to 30 June 2016
There is nothing quite so useless as doing with great efficiency
something that should not be done at all. - Peter Drucker,
management guru.
Just about the only way a smart person can go broke is to borrow
money. - Warren Buffett
History teaches us that man and nations behave wisely once they
have exhausted all other alternatives. - Abba Eban, Israeli
diplomat.
The best won't run and the worst won't quit. - Old saying about
American primary elections.
Chairmen often use weasel words to describe trading conditions
such as challenging or difficult but I prefer very, very tricky.
There are problems everywhere I look: China cleverly and quietly
devaluing the renminbi to make that country's exports look more
competitive while the economy cools steadily; Japan seemingly
unable to get the rate of inflation up and its currency down:
Italy's banks likely to be overwhelmed by bad debts unless Matteo
Renzi can get Brussels' agreement to a massive rescue scheme or,
failing that, go ahead with it anyway and look to leave the euro;
data from America continues to puzzle with, until recently, good
employment figures but poor company profitability and subdued GDP
growth; Venezuela by all accounts ready to disappear down an
economic plug-hole; the migration crisis in Continental Europe
seems to be as far away from a solution as ever and, the elephant
in the room, the aftermath of the referendum in Britain which will
force 16 million Remainers out of the EU, much against their will.
More, much more, on that in due course.
Meanwhile, best performing minor markets over the six months
were Pakistan, Thailand and Hungary with rises of 15.1, 12 and 10.3
per cent respectively whereas Italy, Spain and Czech Republic were
the worst with falls of 25.5, 15.6 and 15.5 per cent respectively.
Major markets such as China and Japan did even worse with falls of
17.2 per cent and 18.2 per cent respectively. New York rose by 1.5
per cent and London by 1.9 per cent, the latter buoyed by the
strength of overseas earners such as oils, tobaccos, miners and
pharma as domestic investors sought and found some protection from
the plunging pound. However, property, house-building,
construction, retail, fund management and almost everything of a
domestic nature fared much, much worse than that.
Take property, for example. Retail investors have panicked and
rushed to sell their holdings in open-ended commercial property
funds. Standard Life, Aviva, M&G, Henderson and others, having
run through their liquidity (which apparently varied from about 15
to 25 per cent) have now shut the gate and said that investors will
only be paid out when orderly disposals of the underlying
properties have been made. Potential buyers will see these funds
coming and will bid low for the properties that they particularly
like - this will give property valuers the opportunity to call
these transactions willing buyer/willing seller, which they are
not. So, expect sharp mark-downs in asset values in the months
ahead. As you can imagine, this has spooked the market right across
the board.
Returning to the liquidity of open-ended funds, this was often
held in the form of Real Estate Investment Trusts (REITs) shares
since bank deposit rates are very low - naturally, all these shares
have been sold thus depressing prices and sentiment even more.
Selling has continued into July so expect more of the same. Having
said all that, I would not be in favour of joining the Gaderene
swine by selling Athelney's property shares. They will be reviewed
one by one and, if found wanting, will be replaced by better
choices but please do not expect the substantial commitment to the
sector to fall by much, if at all. First and foremost, they are
great dividend payers and, second, there is virtually nothing in
Athelney's portfolio in the over-heated London commercial and
residential market.
In the near-term, though, the huge fall in property shares
adversely affected Athelney's performance between the date of the
referendum and the end of the Trust's first half - only seven days
but what a difference a week makes! The three small cap indices
that I track did pretty well on the whole with falls of only 3.5,
3.4 and 3.9 per cent respectively over the six months under review
whereas the total return on Athelney's shares was minus 8.4 per
cent because of its 27 per cent stake in property shares. More
later on the idiocy of putting illiquid office buildings,
warehouses and shopping malls inside an open-ended wrapper.
Richard Burgon (Labour): If the British people vote to leave the
European Union, will the prime minister resign - yes or no?
The Prime Minister: No.
The things these politicians say!
Take back control and Independence Day were key slogans of the
Leavers but the country has seldom been so wildly off the tracks
(the aftermath of Suez comes to mind). The prime minister has
handed in his resignation, the leading Brexiteer, Boris Johnson,
has been stabbed in the back by another contender for leadership,
the leader of the opposition is struggling to survive a coup, the
pound has hit a 31-year low against the greenback and there is talk
in Scotland and Northern Ireland of independence and union with
Ireland respectively.
According to the newspaper Bild, Germany would have:-
1) Acknowledged the 1966 Wembley goal
2) Stopped making jokes about Prince Charles' ears.
3) Done without a goalkeeper at the next penalty shoot-out to
make it more exciting
4) Proposed European legislation to outlaw a head on beer.
5) Used their towels to save a sun-bed for the British.
6) Appear as villains in all future James Bond films.
if the UK had voted Remain.
How could the country have said No thanks?
Although Britons opted to leave the EU, Brexit comes in 57
varieties. The mildest sort would be an arrangement like Norway's,
which would involve access to Europe's single market in return for
free movement of people, capital, goods and services and an annual
contribution to the EU budget. At the other extreme, Britain could
cut its ties completely, meaning no more contributions to the EU
budget and no more unlimited immigration - but no special access to
the market that buys nearly half Britain's exports. Voters were
told by Mr Johnson that he was a have my cake and eat it kind of
person and that they could have it all. They cannot.
We're getting rid of the biggest waste of EU money - your
salary. Belgian MEP Guy Verhofstadt speaking to Nigel Farage, then
leader of UKIP. EUR8,213 monthly salary + EUR4,320 general
expenditure allowance + EUR4,264 yearly travel expenses + EUR306
daily subsistence, all of which he will draw for the next two
years.
The Norwegian option would do least damage to the economy and
perhaps keep Scotland and Northern Ireland within the UK. In any
event, independence might be painful for the Scots: it would mean
promising to accept the euro and hardening the border with England,
with which Scotland trades much more than with Europe. Under a
Norwegian-style deal, Scots might prefer to stick with England.
Another snag is that Britain's exit from Europe would break the
Good Friday Agreement of 1998, in which the peace process was
underpinned by the EU. This treaty has kept the peace in Northern
Ireland for nearly 20 years.
European leaders are in no mood to negotiate with their pesky
neighbour: that is why Britain should delay as long as possible
before invoking Article 50 of the Lisbon Treaty, the mechanism for
leaving the EU, which sets a two-year deadline. For every month
that the cost of the exit sinks in, the possibility of a fudge
giving both sides something of what they want would increase.
Germany, France and Holland all face testing elections next year
and Angela Merkel, in particular, may wish to accommodate British
demands for an emergency brake on the free movement of people
during a surge of mass immigration although she might find it
difficult to sell the idea to other EU leaders.
Whatever deal takes shape in Brussels would be so far from what
was promised by the Leave campaign that I would hope that it would
be put to the British electorate through a referendum, a general
election or both. Maybe this is wishful thinking on my part but,
when faced with the question of a Norway-type deal that entails
many of the costs of being in the single market without having any
say in the rules, many would rather stay in the EU after all.
Satirical magazine Private Eye is to hold a competition to name
Sir Philip Green's new yacht, reputed to cost a cool GBP100m.
Initial suggestions include: BootyMcBootyface; Fishy McFishface;
Greedy McGreedface; Fatty McFatface; Shamey McShameface and The
Lady Ghislaine.
After months of economic hardship (I especially worry about
prospects for 2017), and a fall in immigration caused by the likely
recession, British voters may be ready to think differently about
the balance between immigration, sovereignty, the economy and our
place in Europe. The EU specialises in fudges and finding its way
around referendums. The likeliest outcome, a sorry one, is an
inglorious exit but Remainers should not give up all hope just
yet.
So what should happen now? Monetary policy is the first line of
defence in an uncertain world so we will need lower interest rates
to support demand and a further round of quantitative easing will
be required. Fiscal policy should allow the so-called automatic
stabilisers to operate as tax revenues fall, benefit spending rises
and borrowing increases. However, a structural hit to the public
finances (very likely, in my opinion) would require difficult
decisions on taxation and spending to fill the black hole. The UK,
with high levels of public debt, a big banking system and large
twin deficits on the current account and budget balance, should
move quickly. A budget, informed by a new fiscal forecast from the
OBR, should be an urgent priority for Mrs May soon after she takes
office. Looking longer term, much depends on the nature of the
United Kingdom's new relationship with Europe: it is also becoming
clearer that there is no mad rush to rush into negotiations by
triggering Article 50. European Economic Area minus looks to be a
reasonable aim of negotiations when the time comes. EEA members
have full access to the single market but must accept free movement
of people, capital, goods and services so that is probably a
non-starter, hence the minus. Something must be given up in
exchange for more control over immigration so how would that effect
our access to the single market in business and financial services?
The electorate has spoken but we need to find out what exactly it
said - for myself, I am not at all sure.
Goldman Sachs has decided that oil is going up from today's $47
a barrel or so. This is quite a change of view because the oil
market has gone from nearing storage saturation to being in deficit
much earlier than we expected. It is only a few months since its
analysts concluded that the world's tanks were so full of crude
that the price might get down to $20. When oil was surging past
$110 in 2011, Goldman Sachs' top oil man feared a super-spike to
take it towards $200. To be fair, very few of us predicted the fall
in the oil price but can the Squid really be so consistently
wrong?
The bleeding stopped on the third day: the British pound
steadied and markets perked up on 28 June after two sessions of
carnage during which Lloyds, Barclays and Royal Bank of Scotland
were down by about 30 per cent and French, German and Italian banks
were also heavily affected by about 20-30 per cent. London boasts
250 foreign banks and 200 foreign law firms: finance employs
730,000. An abundance of clever people adept in English law and
finance draws in banks, fund managers and so forth and the wealth
of employers, in turn, attracts more workers. Brexit threatens this
happy balance in that Britain no longer affords the regulatory
predictability that investors like. The main worry is that
financial firms will no longer be able to serve the whole of the EU
from London. Companies from one EU country have passports to do
business in the other 27 with no need for local branches or
subsidiaries.
Thus equipped, banks have made London their second home: Goldman
Sachs, for instance has 6,000 of its European staff in London with
just 200 in Frankfurt. London's asset managers sell mutual funds
(UCITS in Euro-speak) across the region with nearly GBP1 trillion
under management. Fund manager M&G is planning to set up in
Dublin whereas Columbia Threadneedle has applied to expand in
Luxembourg. A second concern is that London could lose its status
as the main centre for trading in securities denominated in euros.
Around 70 per cent of such trading takes place in London, four
times the share of France and Germany even though London is outside
the euro-zone. The City is not about to crumble. Other cities lack
scale and sheer concentration of expertise but some business will
without doubt go elsewhere.
Good to see Barclays giving its anti-fraud advertisements
another burst on ITV. A man stares at the camera and asks for your
full password while another man stands in the background and warns
that he is an imposter. Every year millions are lost to fraud says
the ad before assuring us that the nice people at Barclays would
never ask for your full password or your PIN number. What a pity
that Barclays was not so principled when it came to fixing the
Libor rate - another way in which taxpayers' millions were lost to
fraud.
From Japanese-owned car plants in the north east to gleaming
Chinese-financed skyscrapers in London, modern Britain has been
built on foreign money. The combination of stable government, an
improving economy and a skilled and flexible work-force made the UK
a magnet for investment from around the globe. But Britain's
failure to rebalance its economy towards exports, combined with
falling net returns on its own overseas investments, has created a
large current account deficit. The decision to leave the EU raises
the question of whether the UK will still be able to raise abroad
the roughly 5 per cent of national income to fund this imbalance.
The explanation for this deficit lies in finance not in trade. The
gap between imports and exports has remained negative but stable
for the past 10 years with a huge deficit in manufactured goods
partly offset by a surplus in services.
The fall in the pound since the referendum gives exporters a
great opportunity to increase business abroad but past experience
gives me no cause for optimism. But the core reason why the current
account deficit has been growing is in the investment account,
which records the difference between inward and outward investment
flows. Britain used to earn substantially more from its overseas
investments than it paid out on foreign investments in the UK.
Since 2011, these positive returns have been falling. However, the
fall in sterling may well help as it means that income from abroad
will be worth more but if international investors/ lenders decide
to shun the UK because of an imperfect link to the EU then the
consequences could well be dire.
What a surprise! Polly Peck fraudster Asil Nadir celebrated his
75(th) birthday at home in North Cyprus instead of in a Turkish
prison. Jailed for 10 years in August 2012, Nadir was released,
supposedly to be transferred to a jail in Istanbul. The day after
he arrived in Turkey, he was on a flight to North Cyprus where he
was welcomed as a hero and can now rejoin whatever is left of the
GBP150m that he, er, mislaid.
Today, open-ended funds (i.e. funds from which retail investors
can theoretically withdraw cash at the drop of a hat) account for
about 5 per cent of the total commercial property market, up from 2
per cent in 2007. But the fundamental mismatch between a highly
illiquid asset class and the promise of instant access to an
investor's money has always been an accident waiting to happen.
There are uncanny echoes of the funding mismatch that killed off
the likes of Lehmann Brothers and Northern Rock, both of which were
banks that relied on short-term finance to back up long term loans,
mortgages and investments. Since 2008, regulators have made
considerable headway in reducing the risks inherent in banking but
they really should have looked up to see the dangerous parallels
elsewhere in financial products, particularly in this corner of
asset management.
There is a strong argument for banning altogether instant-access
open-ended funds that wish to invest in illiquid assets such as
property. But if they are allowed to operate at all, far more
should be done to dictate their liquidity. The property market can
be volatile: irresponsible structures only make things worse.
The first Brexit occurred in the year 286 when military
commander Carausius revolted against Rome with three British
legions and led the province as an independent state. With the
modesty of a Boris Johnson, he issued gold coins with his own image
and inscriptions such as Restitutor Britanniae (Restorer of
Britain) and Genius Britanniae (Spirit of Britain). This Brexit did
not end nicely: in 293, Carausius was assassinated by his
treasurer, Allectus, George Osborne's murderous predecessor. In
September 296, Caesar Constantius Chlorus mounted an invasion of
England and Allectus died in battle. London was retaken by force
and Allectus's troops were massacred. Sounds worse than a recession
and a run on sterling, doesn't it?
Finally, under this heading, I am pleased to report that in
April Athelney Trust raised GBP407,000 before expenses by placing
174,800 shares at 233.2p. I look forward to welcoming personally
the new investors to their first Annual General Meeting in Spring,
2017.
Results
Gross revenue increased to GBP116,257 compared to the same
period last year of GBP113,963.
Portfolio Review
Holdings of Cape, Custodian REIT, Ocean Wilsons, Schroder
European, Target Healthcare and Tullett Prebon were all purchased
for the first time. Additional holdings of Air Partner, Andrews
Sykes, Epwin, KCOM, McColls Retail, Picton Property, Trinity Mirror
and Wireless were also acquired. Amlin and Stanley Gibbons were
sold. In addition GVC was top-sliced to provide capital for new
purchases.
Dividend
As is the Board's practice, consideration of a dividend will be
left until the final results are known.
Risks
The Company's assets consist mainly of listed securities and its
principal risks are therefore market-related. The Company is also
exposed to currency risk in respect of a small number of
investments held in overseas markets.
The major risks associated with the Company are market and
liquidity risk. The Company has established a framework for
managing these risks. The directors have guidelines for the
management of investments and financial instruments.
Market Risk
Market risk arises from changes in interest rates, valuations
awarded to equities, movements in prices and the liquidity of
financial instruments.
Liquidity Risk
Liquidity Risk is the risk that the Company may have difficulty
in meeting obligations associated with financial liabilities. The
Company has no borrowings; therefore there is no exposure to
interest rate changes.
The Company is able to reposition its investment portfolio when
required so as to accommodate liquidity needs.
Outlook
Britain is a resilient, resourceful country that has weathered
political, economic and military shocks which would have sunk many
others. Over time, the economy will readjust and Britain will find
a new, albeit diminished, role in the world. We must all hope that
Britain remains engaged, open and pro-European. As for markets,
they will settle down and, with interest rates likely to fall to
zero and another dose of QE due quite soon, equities and commercial
property (excluding the hot-spots) will look attractively
priced.
Dr. E.C. Pohl
22 July 2016
HALF YEARLY INCOME STATEMENT
(INCORPORATING THE REVENUE ACCOUNT)
Audited
Year
ended
Unaudited Unaudited 31 December
6 months ended 6 months ended
30 June 2016 30 June 2015 2015
Revenue Capital Total Revenue Capital Total Total
GBP GBP GBP GBP GBP GBP GBP
Gains on
investments
held at
fair value - 67,872 67,872 - 197,363 197,363 391,473
Income from
investments 116,257 - 116,257 113,963 - 113,963 218,309
Investment
Management
expenses (2,608) (23,301) (25,909) (2,495) (22,754) (25,249) (52,059)
Other expenses (12,811) (59,624) (72,435) (13,909) (29,041) (42,950) (88,296)
Net return
on ordinary
activities
before taxation 100,838 (15,053) 85,785 97,559 145,568 243,127 469,427
Taxation - - - - - - -
Net return
on ordinary
activities
after taxation 100,838 (15,053) 85,785 97,559 145,568 243,127 469,427
Dividends
Paid:
Dividend (156,663) - (156,663) (132,866) - (132,866) (132,866)
Transferred
to reserves (55,825) (15,053) (70,878) (35,307) 145,568 110,261 336,561
========== ========= ========== ========== ========= ========== ============
Return per
ordinary
share 4.9p (0.7p) 4.2p 4.9p 7.3p 12.2p 23.7p
The total 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 periods.
A Statement of Comprehensive Income is not required as all gains
and losses of the Company have been reflected in the above
Statement.
HALF-YEARLY STATEMENT OF CHANGES IN EQUITY
For the Six Months Ended 30 June
2016 (Unaudited)
Called-up Capital Capital Total
Share Share reserve reserve Retained Shareholders'
Capital Premium realised unrealised earnings Funds
GBP GBP GBP GBP GBP GBP
Balance at
1 January 2016 495,770 545,281 1,563,158 1,910,653 343,369 4,858,231
Net loss on
realisation
of investments - - 67,872 - - 67,872
Decrease in
unrealised
Appreciation - - - (523,129) - (523,129)
Share Capital
issued 43,700 363,933 - - - 407,633
Expenses allocated
to
Capital - - (82,925) - - (82,925)
Profit for
the period - - - - 100,838 100,838
Dividend paid
in year - - - - (156,663) (156,663)
Shareholders'
Funds at 30
June 2016 539,470 909,214 1,548,105 1,387,524 287,544 4,671,857
========== ======== ========== =========== ========== ==============
For the Six Months Ended 30 June
2015 (Unaudited)
Called-up Capital Capital Total
Share Share reserve Reserve Retained Shareholders'
Capital Premium realised Unrealised earnings Funds
GBP GBP GBP GBP GBP GBP
Balance at
1 January 2015 495,770 545,281 1,336,934 1,851,828 291,857 4,521,670
Net gains on
realisation
of investments - - 197,363 - - 197,363
Increase in
unrealised
Appreciation - - - 48,238 - 48,238
Expenses allocated
to
Capital - - (51,795) - - (51,795)
Profit for
the year - - - - 97,559 97,559
Dividend paid
in year - - - - (132,866) (132,866)
Shareholders'
Funds at 30
June 2015 495,770 545,281 1,482,502 1,900,066 256,550 4,680,169
========== ======== ========== =========== ========== ==============
For the Year Ended 31 December
2015 (Audited)
Called-up Capital Capital Total
Share Share reserve Reserve Retained Shareholders'
Capital Premium realised Unrealised earnings Funds
GBP GBP GBP GBP GBP GBP
Balance at
1 January 2015 495,770 545,281 1,336,934 1,851,828 291,857 4,521,670
Net gains on
realisation
of investments - - 332,648 - - 332,648
(Decrease)/Increase
in
unrealised
appreciation - - - 58,825 - 58,825
Expenses allocated
to
Capital - - (106,424) - - (106,424)
Profit for
the year - - - - 184,378 184,378
Dividend paid
in year - - - - (132,866) (132,866)
Shareholders'
Funds at 31
December 2015 495,770 545,281 1,563,158 1,910,653 343,369 4,858,231
========== ======== ========== =========== ========== ==============
HALF YEARLY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2016
Audited
Unaudited Unaudited 31 December
30 June 30 June
2016 2015 2015
GBP GBP GBP
Fixed assets
Investments held
at fair value
through profit
and loss 4,607,086 4,493,609 4,709,749
---------- ---------- ------------
Current assets
143,090
Trade receivables 46,653 , 124,368
Cash at bank and
in hand 29,020 55,151 39,493
75,673 198,241 163,861
Creditors: amounts
falling due within
one year (10,902) (11,681) (15,379)
---------- ---------- ------------
Net current assets 64,771 186,560 148,482
---------- ---------- ------------
Total assets less
current liabilities 4,671,857 4,680,169 4,858,231
Provisions for liabilities
and charges - - -
Net assets 4,671,857 4,680,169 4,858,231
========== ========== ============
Capital and reserves
Called up share
capital 539,470 495,770 495,770
Share premium account 909,214 545,281 545,281
Other reserves
(non distributable)
Capital reserve
- realised 1,548,105 1,482,502 1,563,158
Capital reserve
- unrealised 1,387,524 1,900,066 1,910,653
Retained earnings 287,544 256,550 343,369
Shareholders' funds
- all equity 4,671,857 4,680,169 4,858,231
========== ========== ============
Net Asset Value
per share 216.5p 236.0p 245.0p
Number of shares
in issue 2,157,881 1,983,081 1,983,081
HALF YEARLY STATEMENT OF CASHFLOWS FOR THE SIX MONTHS ENDING
30 JUNE 2016
Notes Unaudited Unaudited Audited
6 months 6 months
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
GBP GBP GBP
Cash flows from
operating activities
Net revenue return 100,838 97,559 184,378
Adjustments for:
Expenses charged
to capital (82,925) (51,800) (106,424)
(Decrease)/Increase
in creditors (4,477) (4,145) (447)
Decrease/(Increase
in debtors 77,715 (55,844) (37,122)
Cash from operations 91,151 (14,230) 40,385
---------- ---------- ------------
Cash flows from
investing activities
Purchase of investments (509,411) (430,174) (755,023)
Proceeds from sales
of investments 156,816 614,284 868,860
Proceeds from share
issue 407,634 - -
Net cash from investing
activities 55,039 184,110 113,837
---------- ---------- ------------
Equity dividends
paid (156,663) (132,866) (132,866)
Net (Decrease)/
Increase (10,473) 37,014 21,356
Cash at the beginning
of the period 39,493 18,137 18,137
Cash at the end
of the period 29,020 55,151 39,493
========== ========== ============
NOTES TO THE HALF YEARLY FINANCIAL STATEMENTS
1. Accounting Policies
a) Statement of Compliance
The Company's Interim Financial Statements for the period ended
30 June 2016 have been prepared under UK
Generally Accepted Accounting Practice (UK GAAP) and the 2014
Statement of Recommended Practice, 'Financial
Statements of Investment Trust Companies and Venture Capital
Trusts' ('the SORP') issued by the Association of
Investment Trust Companies.
The Company has also adopted FRS 104, which applies to interim
periods commencing on or after 1 January 2015. The transition to
FRS 104 has had no impact on the previous reported financial
position and financial performance. With the exception of this, the
financial statements have been prepared in accordance with the
accounting policies set out in the statutory accounts for the year
ended 31 December 2015.
b) Financial information
The financial information contained in this report does not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The financial information for the period ended
30 June 2016 and 30 June 2015 have not been audited or reviewed by
the Company's Auditor pursuant to the Auditing Practices Board
guidance on such reviews. The information for the year to 31
December 2015 has been extracted from the latest published Annual
Report and Financial Statements, which have been lodged with the
Registrar of Companies, contained an unqualified auditor's report
and did not contain a statement required under Section 498(2) or
(3) of the Companies Act 2006.
c) Going concern
The Company's Assets consist mainly of equity shares in
companies which, in most circumstances are realisable within a
short timescale. The Directors believe that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going
concern basis in preparing the accounts.
2. To the best of our knowledge and belief there are no related
party transactions within the meaning required by the Disclosure
and Transparency Rules 4.2.8R (disclosure of related party
transactions and changes therein).
3. Taxation
The tax charge for the six months to 30 June 2016 is nil (year
to 31 December 2015: nil; six months to 30 June 2015: nil).
The Company has an effective tax rate of 20% for the year ending
31 December 2016. The estimated effective tax rate is 20%.
4. The calculation of earnings per share for the six months
ended 30 June 2016 is based on the attributable return on ordinary
activities after taxation and on the weighted average number of
shares in issue during the period.
6 months ended 6 months ended
30 June 2016 (Unaudited) 30 June 2015 (Unaudited)
Revenue Capital Total Revenue Capital Total
GBP GBP GBP GBP GBP GBP
Attributable
return on
ordinary activities
after taxation 100,838 (15,053) 85,785 97,559 145,568 243,127
Weighted average
number of
shares 2,051,272 1,983,081
Return per
ordinary share 4.9p (0.7p) 4.2p 4.9p 7.3p 12.2p
12 months ended
31 December 2015
(Audited)
Revenue Capital Total
GBP GBP GBP
Attributable
return on
ordinary activities
after taxation 184,378 285,049 469,427
Weighted average
number of
shares 1,983,081
Return per
ordinary share 9.3p 14.4p 23.7p
5. Net Asset Value (NAV) per share is calculated by dividing
shareholders' funds by the weighted average number of shares in
issue at 30 June 2016 of 2,051,272 (30 June 2015: 1,983,081 and 31
December 2015: 1,983,081).
6. Copies of the Half Yearly Financial Statements for the six
months ended 30 June 2016 will be available on the Company's
website www.athelneytrust.co.uk as soon as practicable.
For further information:
Robin Boyle
Managing Director Athelney Trust
020 7628 7937
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LIFLTDFIEFIR
(END) Dow Jones Newswires
July 26, 2016 03:33 ET (07:33 GMT)
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