Athelney Trust PLC Half-year Report (8721L)

TIDMATY

RNS Number : 8721L

Athelney Trust PLC

25 July 2017

ATHELNEY TRUST PLC HALF YEARLY RESULTS

CHAIRMAN'S STATEMENT AND BUSINESS REVIEW

I enclose the unaudited results for the six months to 30 June 2017. The salient points are as follows:

-- The overall return, which is the increase in NAV during the half year plus the dividend paid, is 10.4 per cent.

-- Unaudited Net Asset Value (NAV) is 268.7p per share (31 December 2016: 251.1p, 30 June 2016: 216.5p), an increase of 7 per cent for the half year and an increase of 24.1 per cent over the past year.

-- Gross Revenue increased by 8.5 per cent to GBP126,098 compared with the half year ended 30 June 2016 of GBP116,257 (full year to 31 December 2016 GBP242,157).

-- Revenue return per ordinary share was 5.1p (31 December 2016: 10p, 30 June 2016: 4.9p).

   --           A final dividend of 8.6p was paid in April 2017 (2016: final dividend 7.9p). 

Review of 1 January 2017 to 30 June 2017

If you want to give God a good laugh, tell Him of your plans. - Old Yiddish proverb.

David Davis [Secretary of State for Exiting the European Union] - the only man I know who can swagger sitting down. - Alex Wickham, Tweeter.

The most significant event of the 20(th) Century will be the fact that the North Americans speak English. - Count Otto von Bismarck.

And ye shall hear of wars and rumours of wars: see that ye be not troubled: for all these things must come to pass, but the end is not yet.- Matthew 24:6-8, King James Bible.

It is my view that we are living through one of the most hated bull markets in modern times. Fund managers across the world sit at their desks all day conscious of the fact that almost every conceivable type of investment opportunity appears expensive (solution: specialise in UK smaller companies as does Athelney Trust). Stock markets have entered the eighth year of their recovery following the Great Recession, while record low interest rates in developed countries have driven yields on all manner of bonds into the floor. In short, some fund managers believe that there exists no single asset class on this planet from fine wines to Latin American junk debt, priced attractively enough to be bought without worry.

Let's have a look at some numbers. All major markets made steady progress: New York, London, Tokyo and Shanghai rose by 8.6, 3.4, 5.3 and 2.3 per cent respectively. In minor markets, Turkey, Greece and Argentina (more of this particular market later) increased by 28.8, 27.8 and 26.5 per cent respectively. Less optimistically, Russia and Pakistan fell by 13 and 3.1 per cent respectively.

The history of markets is littered with vivid anecdotes, from share-tipping shoeshine boys to trading rotten tins of sardines,that signal when optimism became ebullience just before a smash. In time, Argentina's 100-year bond yielding 7.9 per cent might just enter the same pantheon. The last century has seen Argentina in debt crisis in 1930, 1955, 1975, 1989, 2001 and 2014. Indeed, Argentina has been in default on at least some of its debts for all but six years in the last two decades. There is no doubt that there are huge amounts of global money whose owners are suffering from dividend starvation and are keen to latch on to such opportunities. However, my feeling is that this is hot money which might well be withdrawn swiftly should emerging markets be hit by a shock.

Total customer loyalty: GBP5.1bn in TV money; a combined loss in 15 of the last 17 seasons. It truly is the Premier League of Planet Football.

What do we do about high-frequency traders, the bogey-men of markets? No month seemingly goes by without some strange price movement being linked to their actions. So it was little surprise that, after a mini-crash in sterling in May, fingers were pointed towards the flash boys. The question would seem to be how to deal with them when they are caught doing things which don't look right. How do I explain the $20,000 penalty handed out by the New York Stock Exchange to an outfit called Andrei Trading? With great difficulty, I have to say. Over a two-month period in early 2016, the firm submitted 15 billion quotes in financial options, or 19,000 quotes every second. But how many contracts did Andrei actually trade - why just 1,004 or about 0.000006 per cent of total quotes. Perhaps you have to be trading from your parents' house in a London suburb to get the regulator really worried.........

World Password Day was 4 May. We all know that we should use unique, complex, hard-to-guess passwords, a mixture of letters, numbers and symbols. Last year's most popular password used by 17 per cent of those who were hacked? 123456.

One year on from the referendum it is time to look at the economic consequences so far. The economy has grown at an annualised rate of 1.8 per cent in the three quarters following the poll and unemployment has fallen from 4.9 to 4.6 per cent. So far so good but the bad news is the type of growth the UK has experienced and developments in living standards. Household consumption accounted for more than 80 per cent of economic growth, business investment did not contribute at all while net exports actually detracted from growth. The latest numbers indicate that prices are rising at 2.9 per cent but wages by only 1.7 per cent and most working-age benefits are frozen. Households will, on balance, be worse off a year after the referendum. As for the forecasts made by the Treasury on the Remain side, the shallow recession did not arrive but there were serious errors on the Leave side. The Economists for Brexit forecast almost no immediate drop in sterling, inflation in mid-2017 of 1.5 per cent and average earnings growth of 3.5 per cent. The voting public punished the government in the recent general election but it does not yet realise that the British pound's fall is likely to prolong the Brexit squeeze on living standards for another two years or so.

News that the government will make a GBP500m profit on its GBP20.3bn bailout of Lloyds Banking Group invites an obvious comparison. Over eight-and-a half years, that stake generated a compound annual return of 0.31 per cent. But a GBP20.3bn deposit in Lloyds' highest paying instant access bank account would have earned GBP2.9bn in interest at a compound rate of 1.7 per cent. We are not very good at this, are we?

Ministers really need to stop using the statistic that Britain is one of the fastest-growing economies in the G7. It was true for a while last year but not true now. The United States and Japan grew half as much again as the U.K. in the first quarter of 2017 while Italy grew twice as fast, France two and a half times as fast, Germany three times faster and Canada four and a half times faster. And if we started using GDP per head rather than raw GDP, then, er, we didn't grow at all.

Incredible, brilliant, genius Corbyn got only nine seats fewer in 2017 than did disastrous Neil Kinnock in 1992.

The Conservative government has really got itself into a terrible mess over tax. If we consider that Gordon Brown was the pioneer of stealth taxes, then George Osborne and now Philip Hammond have been enthusiastic upholders: uncosted pledges have also been made to increase the personal allowance to GBP12,500 and the higher rate threshold to GBP50,000. The government has not reached the end of the line with its reductions in corporation tax due to be cut to 17 per cent by 2020. The self-imposed moratorium on fuel duty increases, originally a response to Labour's fuel duty escalator, looks likely to be continued indefinitely. The result of all this is that the Office for Budget Responsibility has forecast a rise in tax receipts to 37.2 per cent of GDP, and yet it is not at all clear to me how these promises will be funded. The fault lies in the decision to sweeten the austerity pill with tax giveaways during the last parliament. Mr Osborne grasped the nettle firmly with a bold VAT rise but then gave it all back by increasing tax allowances, freezing fuel duty, cutting corporation tax and reducing Labour's 50 per cent top rate to 45 per cent. It used to be so different. In the 1980s, under Margaret Thatcher, the Conservatives had an unchallenged reputation as a tax-cutting party. This was because when it needed to raise taxes, as in Geoffrey Howe's austerity budget of 1981, it did not hold back. Raising taxes hard when it was needed, rather than tinkering round the edges, paved the way for big tax cuts later.

Ellis Short, whose Sunderland Football Club was relegated from the Premier League with debts of GBP100m, appears to have a sense of irony. Or perhaps not. He launched a GBP2bn fund in June to invest in the distressed property debt market. Who will manage it? Mr. Short made five attempts to lure David Moyes to Sunderland, only for that hapless man's tenure to end in resignation. So he is technically available again........

Labour wants to raise corporation tax and tax the rich so as not to tax the ordinary working family any more than it is at the moment. But who are the rich? Everyone on the Sunday Times Rich List? All 1,000 have assets worth GBP100m: they make up 0.000002 of the U.K. population. Sadly there are not nearly enough of them to generate serious revenue. What about the top 1 per cent then? They must be rich, surely - certainly richer than the other 99 per cent. To be included in this category, you would need assets of GBP3m including the value of your house and any private pension. Plenty of middle-aged homeowners in London and the South East qualify. What about income, then? The top 1 per cent of income taxpayers have pre-tax incomes in excess of GBP160,000 a year. That sounds good but it is still GBP340,000 below the top 0.1 per cent. However we define the rich, we know one thing: they are already paying a lot of tax. The richest 1 per cent of income taxpayers pay over a quarter of all income tax and the top 10 per cent pay 60 per cent of the total. Whatever we think of the rich, we are dependent upon them

- perhaps to an uncomfortable extent. We would like to get more money from them but must not pretend that they are the only ones who will need to pay more if we are to increase spending on health, education and infrastructure.

At this rate, David Davis has a big problem. What will he do when he has breezed through Brexit? Perhaps he will read out the football results on TV so that everyone's team always wins. Or invent a happiness pill. Or become a meteorologist only forecasting sunny weather..........

It's been a long time since nationalisation was on the political agenda. But now, with Jeremy Corbyn in charge of the Labour Party, the process has been adopted with enthusiasm. Labour's manifesto proposed a GBP250 billion national transformation fund to upgrade the economy. The policy included nationalising Royal Mail, the railways, energy supply and water. After the Second World War, nationalisation became the main form of ownership in Britain for utilities and public services together with some basic industries. So, by the end of the 1970s, before the Conservatives embarked on privatisation, nationalised industries accounted for about 10 per cent of GDP and 8 per cent of employment. Some companies were pretty dire: British Airways customer service was famously appalling whereas British Rail produced the worst sandwich in Christendom and was allowed to operate unsuccessfully in the hotel and ferry businesses. Over-manning was notorious, perhaps to the extent of 40 per cent. Research in the 1980s found that putting contracts out for private tender reduced costs by 20 per cent thanks to greater efficiency, not lower wages. A programme of nationalisation has no obvious economic justification except dogma about the size of the state. It is an idea whose time has gone.

Isn't it strange that the British and Irish media regularly use the term Tory to refer to the present government. Tory comes from the Irish toraidhe and refers to the dispossessed Irish Catholic outlaws who preyed on the Protestant settlers. In the light of the agreement with the DUP perhaps it should revert to the correct title of Conservative and Unionist Party.

Here is how to make money running a private railway. You charge about GBP2 a minute for a 15-minute journey and, with profit margins of 50 per cent, make GBP66 million on revenues of GBP134 million. The genius of the Heathrow Express, linking Paddington station with the airport, is that travellers continue to pay such exorbitant prices because the Piccadilly Line takes so long and a taxi is ruinously expensive. Not content with this juicy plum, however, Heathrow was planning to levy excess access fares for London to run its Crossrail trains into the airport. This would have blocked long-awaited mass transit into Heathrow or forced Crossrail to increase prices. That was until the courts threw out Heathrow's claim. Who would have benefitted? Why investors from Spain, China, Qatar, Singapore and America that's who.

What is worse than listening to an estate agent? How about listening to an Aussie estate agent whose every sentence ends with a question? Presumably Australians don't notice, which may help to explain why Purplebricks' antipodean operation is ahead of its UK business at the same stage of development. But does first-mover advantage justify a valuation of 150 times 2019 earnings? If Countrywide, offering the very same fixed-fee model, can be bought on a prospective P/E of 8? That is the question? Isn't it?

The U. K. financial regulator came under heavy criticism in June for failing to take action against asset managers that over-charged investors by selling expensive funds that promised stock-picking expertise but in reality merely mirror an index. The Financial Conduct Authority (FCA) published a damning report on the asset management industry that said that there was GBP109bn of investor money sitting in so-called closet trackers. This involved fund managers charging high fees for aiming to beat a benchmark but in reality closely tracking an index. This practice, in some circles, is considered fraudulent. The FCA also highlighted other problems including poor value for money for retail investors, opaque charging structures and weak price competition. However, the report contains the word consult 29 times versus the word decide just twice and is extremely disappointing to those wanting big changes in the industry. Action has already been taken in Sweden and Norway, so why not here?

News that the new polymer GBP5 notes are being kept in circulation despite a 134,000 petition protesting at their animal fat content came as no surprise. Last summer 4m signed a petition for a second Brexit referendum when it emerged that all UK banknotes contained 20 per cent of an equally slippery commodity: value in foreign exchange markets.

Leaving the EU was always going to be complicated but few really appreciate how complex the task will be. At least 759 different agreements with 168 countries covering trade in nuclear goods, customs, fisheries, transport and regulatory co-operation in areas such as anti-trust or financial services will have to be renegotiated just for Britain to stand still. The U.K. really needs to find a cross-party agreement on the basic principles of Brexit and then work out a way to make the consensus stick. Reaching a good deal will take time. So both sides should agree on a long transition, in which Britain lives under today's terms until a trade agreement is struck. The most difficult area is likely to be freedom of movement. Britain cannot expect special treatment but a minor get-out such as is already enjoyed by Switzerland and Norway might allow a better deal for all. Britain's position is appallingly weak. The negotiations may well blow up before they really get going but chaos in Westminster presents a rare opportunity to change the course of Brexit. Both sides should seize it.

Results

Gross revenue increased to GBP126,098 compared to the same period last year of GBP116,257.

Portfolio Review

Holdings of Biffa, Countrywide, Crest Nicholson, Debenhams, Hostelworld, Ibstock, Murgitroyd, Safecharge and The PRS REIT were all purchased for the first time. Additional holdings of Record were also acquired. Beazley, Hiscox and Novae were sold. In addition eight shareholdings were top-sliced to provide capital for new purchases.

Corporate Activity

The holding of Lavendon were taken over at a capital profit of 99.1 percent.

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.

Prospects

The news is grim: terrorist outrages, political chaos and the Grenfell Tower tragedy have dominated headlines in recent weeks and months. Elsewhere, the economy appears to be slowing and productivity is a national disgrace. Credit growth has been running at over 10 per cent since June 2016 while household savings have collapsed to 1.7 per cent of disposable income, the lowest reading since the data series began in 1963. The British people are deeply divided: there is a majority neither for a hard exit nor for remaining in the EU. There is neither a majority for the Conservative vision of continued austerity nor for Labour's vast tax and spending gamble. A divided House of Commons and Cabinet reflects a divided country.

A sensible aim would be to try to hang onto the gains made in the first half.

Dr. E.C. Pohl

21 July 2017

HALF YEARLY INCOME STATEMENT

(INCORPORATING THE REVENUE ACCOUNT)

 
                                                                                             Audited 
                                                                                              Year 
                                                                                              ended 
                                Unaudited                          Unaudited               31 December 
                              6 months ended                     6 months ended 
                               30 June 2017                       30 June 2016                2016 
 
                      Revenue    Capital      Total      Revenue    Capital      Total        Total 
                        GBP        GBP         GBP         GBP        GBP         GBP          GBP 
 Gains on 
  investments 
  held at 
  fair value                 -    212,073     212,073           -     67,872      67,872       236,357 
 Income from 
  investments          126,098          -     126,098     116,257          -     116,257       242,157 
 Investment 
  Management 
  expenses             (2,968)   (26,930)    (29,898)     (2,608)   (23,301)    (25,909)      (52,143) 
 Other expenses       (12,925)   (33,663)    (46,588)    (12,811)   (59,624)    (72,435)      (88,912) 
 
 Net return 
  on ordinary 
 activities 
  before taxation      110,205    151,480     261,685     100,838   (15,053)      85,785       337,459 
 
 Taxation                    -          -           -           -          -           -             - 
 
 Net return 
  on ordinary 
 activities 

  after taxation       110,205    151,480     261,685     100,838   (15,053)      85,785       337,459 
 
 
 Dividends 
  Paid: 
 
 Dividend            (185,577)          -   (185,577)   (156,663)          -   (156,663)     (156,663) 
 
 Transferred 
  to reserves         (75,372)    151,480      76,108    (55,825)   (15,053)    (70,878)       180,796 
                    ==========  =========  ==========  ==========  =========  ==========  ============ 
 
 
 Return per 
  ordinary 
  share                   5.1p         7p       12.1p        4.9p     (0.7p)        4.2p           16p 
 
 

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 
                                                         2017 (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 2017         539,470   881,087   1,747,083    1,852,759     398,134       5,418,533 
 Net gains on 
  realisation 
   of investments              -         -     212,073            -           -         212,073 
 Increase in 
  unrealised 
   Appreciation                -         -           -      303,799           -         303,799 
 Expenses allocated 
  to 
   Capital                     -         -    (60,593)            -           -        (60,593) 
 Profit for 
  the period                   -         -           -            -     110,205         110,205 
 Dividend paid 
  in year                      -         -           -            -   (185,577)       (185,577) 
 Shareholders' 
  Funds at 30 
  June 2017              539,470   881,087   1,898,563    2,156,558     322,762       5,798,440 
                      ==========  ========  ==========  ===========  ==========  ============== 
 
 
                                                 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 gains 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                     -   (28,127)    (54,798)            -           -        (82,925) 
 Profit for 
  the year                     -          -           -            -     100,838         100,838 
 Dividend paid 
  in year                      -          -           -            -   (156,663)       (156,663) 
 Shareholders' 
  Funds at 30 
  June 2016              539,470    881,087   1,576,232    1,387,524     287,544       4,671,857 
                      ==========  =========  ==========  ===========  ==========  ============== 
 
 
                                                  For the Year Ended 31 December 
                                                           2016 (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 2016         495,770    545,281   1,563,158    1,910,653     343,369       4,858,231 
 Net gains on 
  realisation 
   of investments              -          -     294,251            -           -         294,251 
 Decrease in 
  unrealised 
  appreciation                 -          -           -     (57,894)           -        (57,894) 
 Expenses allocated 
  to 
   Capital                     -   (28,127)   (110,326)            -           -       (138,453) 
 Shares issued 
  in the year             43,700    363,933                                              407,633 
 Profit for 
  the year                     -          -           -            -     211,428         211,428 
 Dividend paid 
  in year                      -          -           -            -   (156,663)       (156,663) 
 Shareholders' 
  Funds at 31 
  December 2016          539,470    881,087   1,747,083    1,852,759     398,134       5,418,533 
                      ==========  =========  ==========  ===========  ==========  ============== 
 

HALF YEARLY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

 
 
                                                              Audited 
                                    Unaudited   Unaudited   31 December 
                                     30 June     30 June 
                                       2017        2016        2016 
 
                                          GBP         GBP           GBP 
 Fixed assets 
 Investments held 
  at fair value 
  through profit 
  and loss                          5,660,338   4,607,086     5,117,268 
                                   ----------  ----------  ------------ 
 
 Current assets 
 Trade receivables                     88,028      46,653       256,964 
 Cash at bank and 
  in hand                              60,351      29,020        59,133 
                                      148,379      75,673       316,097 
 
 Creditors: amounts 
  falling due within 
  one year                           (10,277)    (10,902)      (14,832) 
                                   ----------  ----------  ------------ 
 
 Net current assets                   138,102      64,771       301,265 
                                   ----------  ----------  ------------ 
 
 Total assets less 
  current liabilities               5,798,440   4,671,857     5,418,533 
 
 Provisions for liabilities 
  and charges                               -           -             - 
 
 Net assets                         5,798,440   4,671,857     5,418,533 
                                   ==========  ==========  ============ 
 
 
 Capital and reserves 
 Called up share 
  capital                             539,470     539,470       539,470 
 Share premium account                881,087     881,087       881,087 
 Other reserves 
  (non distributable) 
            Capital reserve 
             - realised             1,898,563   1,576,232     1,747,083 
            Capital reserve 
             - unrealised           2,156,558   1,387,524     1,852,759 
 Retained earnings                    322,762     287,544       398,134 
 
 Shareholders' funds 
  - all equity                      5,798,440   4,671,857     5,418,533 
                                   ==========  ==========  ============ 
 
 Net Asset Value 
  per share                            268.7p      216.5p        251.1p 
 Number of shares 
  in issue                          2,157,881   2,157,881     2,157,881 
 
 

HALF YEARLY STATEMENT OF CASHFLOWS FOR THE SIX MONTHSING

30 JUNE 2017

 
                             Notes    Unaudited   Unaudited     Audited 
                                      6 months    6 months 
                                        ended       ended     Year ended 
                                       30 June     30 June    31 December 
                                         2017        2016         2016 
                                         GBP         GBP          GBP 
 
 Cash flows from 
  operating activities 
 Net revenue return                    110,205     100,838      211,428 
 Adjustments for: 
 Expenses charged 
  to capital                          (60,593)    (54,797)     (110,326) 
 Decrease in creditors                 (4,554)     (4,477)       (547) 
 Decrease/(Increase) 
  in debtors                           168,937     77,715      (132,596) 
 
 Cash from operations                  213,995     119,279     (32,041) 
                                     ----------  ----------  ------------ 
 
 Cash flows from 
  investing activities 
 
  Purchase of investments             (452,748)   (509,411)    (741,319) 
 Proceeds from sales 
  of investments                       425,548     156,816      570,157 
 
 Net cash from investing 
  activities                          (27,200)    (352,595)    (171,162) 
                                     ----------  ----------  ------------ 
 
 Financing Activities 
 Share issue                              -        379,506      379,506 
 
                                          -        379,506      379,506 
 
 Equity dividends 
  paid                                (185,577)   (156,663)    (156,663) 
 
 Net (Decrease)/ 
  Increase                              1,218     (10,473)      19,640 
 
 Cash at the beginning 
  of the period                        59,133      39,493       39,493 
 
 Cash at the end 
  of the period                        60,351      29,020       59,133 

                                     ==========  ==========  ============ 
 
 

NOTES TO THE HALF YEARLY FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

   1.                    Accounting Policies 
   a)   Statement of Compliance 

The Company's Interim Financial Statements for the period ended 30 June 2017 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 2016.

   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 2017 and 30 June 2016 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 2016 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 2017 is nil (year to 31 December 2016: nil; six months to 30 June 2016: nil).

The Company has an effective tax rate of 20% for the year ending 31 December 2017. The estimated effective tax rate is 20%.

4. The calculation of earnings per share for the six months ended 30 June 2017 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 2017 (Unaudited)             30 June 2016 (Unaudited) 
 
                         Revenue    Capital     Total                Revenue    Capital    Total 
                             GBP        GBP       GBP                    GBP        GBP      GBP 
 Attributable 
  return on 
 ordinary activities 
  after taxation         110,205    151,480   261,685                100,838   (15,053)   85,785 
 
 Weighted average 
  number of 
  shares                          2,157,881                            2,051,272 
 
 Return per 
  ordinary share            5.1p         7p     12.1p                   4.9p     (0.7p)     4.2p 
 
 
 
                               12 months ended 
                               31 December 2016 
                                  (Audited) 
 
                         Revenue    Capital     Total 
                             GBP        GBP       GBP 
 Attributable 
  return on 
 ordinary activities 
  after taxation         211,428    126,031   337,459 
 
 Weighted average 
  number of 
  shares                          2,104,868 
 
 Return per 
  ordinary share             10p         6p       16p 
 
 
 

5. Return per ordinary share is calculated by dividing shareholders' funds by the weighted average number of shares in issue at 30 June 2017 of 2,157,881 (30 June 2016: 2,051,272 and 31 December 2016: 2,104,868).

6. Copies of the Half Yearly Financial Statements for the six months ended 30 June 2017 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

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July 25, 2017 02:00 ET (06:00 GMT)