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CGW Chelverton Growth Trust Plc

26.50
0.00 (0.00%)
25 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Chelverton Growth Trust Plc LSE:CGW London Ordinary Share GB0002621349 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 26.50 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Chelverton Growth Trust PLC Half-year Report (9632B)

07/04/2017 1:59pm

UK Regulatory


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TIDMCGW

RNS Number : 9632B

Chelverton Growth Trust PLC

07 April 2017

Chelverton Growth Trust PLC

Half Yearly Report

For the six months ended 28 February 2017

The Directors announce the unaudited Half Yearly Report for the period 1 September 2016 to 28 February 2017.

Investment objective and policy

The Company's objective is to provide capital growth through investment in companies listed on the Official List and traded on the Alternative Investment Market ("AIM") with a market capitalisation at the time of investment of up to GBP50 million, which the Manager believes to be at a "point of change". The Company will invest in unquoted investments where it is believed that there is a likelihood of the shares becoming listed or traded on AIM or the investee company being sold. Its investment objective is to increase the net asset value per share at a higher rate than other quoted smaller company trusts and the MCSI Small Cap UK Index.

It is the Company's policy not to invest in any listed investment companies (including listed investment trusts).

Investment strategy

Investments are selected for the portfolio only after extensive research which the Investment Manager believes to be key. The whole process through which equity must pass in order to be included in the portfolio is very rigorous. Only a security where the Investment Manager believes that the price will be significantly higher in the future will pass the selection process. The Investment Manager believes the key to successful stock selection is to identify the long-term value of a company's shares and to have the patience to hold the shares until that value is appreciated by other investors. Identifying long-term value involves detailed analysis of a company's earnings prospects over a five-year time horizon.

The Company's Investment Manager is Chelverton Asset Management Limited, an independent investment manager focusing exclusively on achieving returns for investors based on UK investment analysis of the highest quality. The founder and employee owners of Chelverton include experienced investment professionals with strong investment performance records who believe rigorous fundamental research allied to patience is the basis of long-term investment success.

Chairman's Report

Your Company has made good progress in the first six months of the current year with the Net Asset Value per share rising from 62.53p to 74.89p, an increase of 19.8%, outperforming the benchmark indices.

Over the same period, the AIM All-share index rose by 14.6% whilst the Company's comparative index, the MSCI Small Cap UK index rose by 6.1%. The share price decreased from 82p to 75p in line with its historic relationship to Net Asset Value.

The half-year results were achieved against a background of economic and political uncertainty. The biggest issue in the world of politicians and commentators is the imminent negotiation of the United Kingdom's exit from the European Union on the best mutual terms for the United Kingdom and our fellow Europeans. The companies in which we are invested sell approximately 85% of their goods and services within the UK, with only 5% going to the European Union. Apart from the fluctuations in currency rates, they do not consider the eventual leaving of the EU a material day to day business concern.

In the past six months, in line with our new direction, we have liquidated holdings in Alliance Pharma, LPA Group and Northbridge Industrial Services in their entirety. The holding in Petards was reduced following a sharp increase in its share price resulting from a good stream of contract wins. Petards, is a UK manufacturer supplying the rail industry, and has strong potential going forward. The portfolio is thus becoming concentrated in a smaller number of holdings. The investment in Anaxsys was reduced to nil as it has restructured its business and now licences the intellectual property it has created and owns. Until it receives a royalty payment it is considered prudent to reduce the value to nil. On the positive side, other unquoted holdings made good progress leading to increased valuations for Transflex Vehicle Rental and Chelverton Asset Management, the investment managers of this fund.

Your fund held a shareholding in Parmenion which was sold last year to Aberdeen Asset Management plc. An initial payment was received at completion, in addition we could be entitled to a further sum, subject to the performance of the business. The maximum amount of this further payment is capped at GBP673,652. Based upon its current expectation, the Board has put a value in these accounts of GBP350,000 additional consideration.

The fund took up its rights in a placing made by CEPS plc, an AIM trading holding company for a number of specialist niche businesses. The fund now owns 21.2% of this company.

Whilst Shareholders are aware that it is the Board's ongoing intention to return funds to Shareholders by way of annual tenders these can only be carried out in a meaningful and cost effective manner when the fund has significant cash resources. At the moment the Company is largely fully invested and so the eighth tender offer will be delayed until significant sums have been realised from one or more investments.

Looking through to the second half of the year, and onwards, the economic and political agenda is going to be dominated by the daily reporting of the negotiations to leave the European Union. For investors in this fund, the state of the UK economy is far more relevant. The sentiment of the so called "experts" is that the UK economy will continue to grow steadily into the future and, as the European Union itself starts to exhibit signs of increasing growth this will only serve to help. The Board therefore feels that the portfolio will continue to make good progress.

Kevin Allen

Chairman

7 April 2017

Interim management report

The important events that have occurred during the period under review and the key factors influencing the financial statements are set out in the Chairman's Report. The Board considers that the principal risks and uncertainties facing the Company remain the same as those disclosed in the Annual Report for the year ended 31 August 2016 on pages 11 and 12 and pages 48 to 50. These risks include, but are not limited to, market risk, discount volatility risk, regulatory risk, financial risk and liquidity risk.

Responsibility statement

The Directors are responsible for preparing the unaudited Half Yearly Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

The condensed set of financial statements for the six months to 28 February 2017, has been prepared in accordance with FRS 104 "Interim Financial Reporting", gives a fair view of the assets, liabilities, financial position and profit of the Company; and

this Half Yearly Report includes a fair review of the information required by;

rule 4.2.7R of the Disclosure and Transparency Rules being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

rule 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

This Half Yearly Report was approved by the Board of Directors on 7 April 2017 and the above responsibility statement was signed on its behalf by Kevin Allen, Chairman.

Portfolio review

as at 28 February 2017

The Company's portfolio is set out below.

 
 Investment              Sector                Valuation        % of 
                                                 GBP'000       total 
                                                           portfolio 
 AIM traded 
 
 CEPS                    Support Services            981        21.3 
 Trading holding company 
  for a number of companies 
  supplying services and products 
 
 Lombard Risk            Computer & 
  Management              Software Services          234         5.1 
 Lombard Risk is one of the 
  world's leading providers 
  of collateral management, 
  liquidity analysis and regulatory 
  compliance software to financial 
  organisations 
 
                         Technology 
 MTI Wireless             Hardware & 
  Edge                    Equipment                  152         3.3 
 Developer and manufacturer 
  of sophisticated antennas 
  and antenna systems 
 
 Petards Group           Support Services            405         8.8 
 Development, provision and 
  maintenance of advance security 
  systems and related services 
 
                         Flexible Energy 
 Plutus Powergen          Supply                     767        16.7 
 Providers of management 
  infrastructure and expertise 
  to operate power plants 
  and provide flexible electricity 
  generation 
 
                         Technology 
                          Hardware & 
 Touchstar*               Equipment                  563        12.2 
 Software systems for warehousing 
  and distribution 
 
 Universe Group          Support Services             53         1.2 
 Provision of credit fraud 
  prevention, loyalty and 
  retail systems 
 
 *Formerly Belgravium 
  Technologies 
 
 Nasdaq Traded 
 
 One Horizon 
  Group                  Support Services             40         0.9 
 Provider of mobile satellite 
  communications equipment 
  and airtime 
 
 Unquoted 
 
 Airways Engineering     Support Services 
 Ordinary B 
  Shares                                               -           - 
 Loan Stock                                            -           - 
 Commercial aviation maintenance 
 
 Anaxsys Technology      Healthcare 
                          Equipment & 
                          Services                     -           - 
 A medical device company 
  for patient monitoring and 
  screening 
 
 Chelverton 
  Asset Management 
  Holdings               Support Services            159         3.5 
 Investment management, including 
  providing services to Chelverton 
  Growth Trust Plc 
 
 La Salle Education      Support Services              -           - 
 A UK based company dedicated 
  to improving mathematics 
  education. 
 
 Main Dental             Support Services 
 Ordinary B 
  Shares                                             138         3.0 
 Loan Stock                                            -           - 
 Operator of dental surgeries 
 
 Pedaling Forth          General Retailers           150         3.3 
 Internet retailer of cycling 
  clothing for women 
 
 Security Research 
  Group                  Support Services             52         1.1 
 Leading provider of Local 
  Authority residential property 
  searches; provision of packaging 
  solutions 
 
 Transflex Vehicle 
  Rental                 Support Services            902        19.6 
 Light commercial vehicle 
  rental 
 
 Portfolio valuation                               4,596       100.0 
                                              ----------  ---------- 
 

Portfolio holdings

 
                                 28 February              31 August 
                                     2017                    2016 
                            Valuation        % of   Valuation        % of 
                                            total                   total 
 Investment                   GBP'000   portfolio     GBP'000   portfolio 
 
 
 CEPS                             981        21.3         614        15.6 
 Transflex Vehicle 
  Rental                          902        19.6         902        23.0 
 Plutus Powergen                  767        16.7         400        10.2 
 Touchstar*                       563        12.2         406        10.4 
 Petards Group                    405         8.8         335         8.5 
 Lombard Risk Management          234         5.1         201         5.1 
 Chelverton Asset 
  Management Holdings             159         3.5         141         3.6 
 MTI Wireless Edge                152         3.3         165         4.2 
 Pedalling Forth                  150         3.3         150         3.8 
 Main Dental                      138         3.0         175         4.5 
 Universe Group                    53         1.2          73         1.9 
 Security Research 
  Group                            52         1.1          52         1.3 
 One Horizon Group                 40         0.9          84         2.1 
 Alliance Pharma 
  **                                -           -          49         1.3 
 LPA Group **                       -           -         123         3.1 
 Northbridge Industrial 
  Services **                       -           -          32         0.8 
 Anaxsys Technology                 -           -          23         0.6 
 Airways Engineering                -           -           -           - 
 La Salle Education                 -           -           -           - 
 
 
   Total                        4,596       100.0       3,925       100.0 
                           ----------  ----------  ----------  ---------- 
 
 * Formerly Belgravium 
  Technologies 
 ** Sold during the period 
 

Portfolio breakdown by sector and by index

 
                                 % of 
Sector distribution             total 
Support Services                 59.4 
Flexible Energy Supply           16.7 
Technology Hardware & 
 Equipment                       15.5 
Software & Computer Services      5.1 
General Retailers                 3.3 
 
                                 % of 
Index distribution              total 
AIM                              68.6 
Unquoted                         30.5 
Nasdaq                            0.9 
 

Income statement (unaudited) for the six months to 28 February 2017

 
                             Six months                      Year to                       Six months 
                                 to                                                            to 
                            28 February                   31 August 2016                  29 February 
                                2017                                                          2016 
                     Revenue   Capital     Total    Revenue   Capital     Total    Revenue   Capital     Total 
                     GBP'000   GBP'000   GBP'000    GBP'000   GBP'000   GBP'000    GBP'000   GBP'000   GBP'000 
 Gains on 
  investments 
  at fair 
  value (note 
  4)                       -       630       630          -       565       565          -       292       292 
 Income 
  (note 2)                 1       250       251         27       100       127         18         -        18 
 Investment 
  management 
  fee                    (6)      (18)      (24)       (12)      (35)      (47)        (7)      (19)      (26) 
 Other expenses         (64)       (4)      (68)      (155)       (7)     (162)       (67)       (6)      (73) 
                   ---------  --------  --------  ---------  --------  --------  ---------  --------  -------- 
 Net return 
  on ordinary 
  activities 
  before 
  taxation              (69)       858       789      (140)       623       483       (56)       267       211 
 Taxation 
  on ordinary 
  activities               -         -         -          -         -         -          -         -         - 
                   ---------  --------  --------  ---------  --------  --------  ---------  --------  -------- 
 Net return 
  on ordinary 
  activities 
  after taxation        (69)       858       789      (140)       623       483       (56)       267       211 
                   ---------  --------  --------  ---------  --------  --------  ---------  --------  -------- 
 
                     Revenue   Capital     Total    Revenue   Capital     Total    Revenue   Capital     Total 
                       pence     pence     pence      pence     pence     pence      pence     pence     pence 
 Return 
  per Ordinary 
  share*              (1.08)     13.45     12.37     (1.86)      8.26      6.40     (0.65)      3.14      2.49 
 

The total column of this statement is the profit and loss account of the Company prepared in accordance with Financial Reporting Standards ("FRS"). The supplementary revenue return and capital return columns are prepared in accordance with the Statement of Recommended Practice issued in November 2014 by the Association of Investment Companies ("AIC SORP").

All revenue and capital items in the above statement derive from continuing operations.

A separate Statement of Other Comprehensive Income has not been prepared as all such gains and losses are included in the Income Statement.

The revenue column of the Income Statement includes all income and expenses. The capital column accounts for the realised and unrealised profit or loss on investments and 75% of the management fee and finance costs charged to capital.

* The return per Ordinary share is based on 6,377,088 (31 August 2016: 7,538,051; 29 February 2016: 8,501,650) shares, being the weighted average number of shares in issue during the period.

Statement of changes in equity (unaudited)

for the six months to 28 February 2017

 
                            Called 
                                up       Share                                Capital 
                             share     premium      Special     Capital    redemption     Revenue 
                           capital     account     reserve*     reserve       reserve     reserve       Total 
                           GBP'000     GBP'000      GBP'000     GBP'000       GBP'000     GBP'000     GBP'000 
 Six months to 28 February 2017 
   1 September 2016             64           -        1,506       1,536           125         756       3,987 
   Net return after 
    taxation for 
    the period                   -           -            -         858             -        (69)         789 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
   28 February 2017             64           -        1,506       2,394           125         687       4,776 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
 
 Year to 31 August 
  2016 
   1 September 2015             86       2,674            -         913           103         896       4,672 
   Costs of shares 
    purchased for 
    cancellation 
    under tender 
    offer                     (22)           -      (1,149)           -            22           -     (1,149) 
   Cancellation 
    of share premium 
    account                      -     (2,674)        2,674           -             -           -           - 
   Costs of cancelling 
    share premium 
    account                      -           -         (19)           -             -           -        (19) 
   Net return after 
    taxation for 
    the year                     -           -            -         623             -       (140)         483 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
   31 August 2016               64           -        1,506       1,536           125         756       3,987 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
 
 Six months to 
  29 February 2016 
   1 September 2015             86       2,674            -         913           103         896       4,672 
   Cancellation 
    of share premium 
    account                      -     (2,674)        2,674           -             -           -           - 
   Costs of cancelling 
    share premium 
    account                      -           -         (19)           -             -           -        (19) 
   Net return after 
    taxation for 
    the period                   -           -            -         267             -        (56)         211 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
   29 February 2016             86           -        2,655       1,180           103         840       4,864 
                         ---------  ----------  -----------  ----------  ------------  ----------  ---------- 
 
 
 
 *The special reserve was created by the cancellation 
  of the share premium account by order of the High 
  Court on 20 January 2016. The special reserve can 
  be used for the purchase of the Company's Ordinary 
  shares. 
 

Statement of financial position (unaudited)

as at 28 February 2017

 
                                               As at 28                   As at 31                    As at 29 
                                               February                     August                    February 
                                                   2017                       2016                        2016 
                                                GBP'000                    GBP'000                     GBP'000 
    Fixed assets 
    Investments at fair 
     value (note 4)                               4,596                      3,925                       3,546 
    Current assets 
    Debtors                                         353                          6                          13 
    Cash at bank                                    103                        261                       1,328 
                             --------------------------  -------------------------  -------------------------- 
                                                    456                        267                       1,341 
                             --------------------------  -------------------------  -------------------------- 
 
      Creditors - amounts falling due within one year 
    Creditors                                      (26)                       (55)                        (23) 
    Short-term loans (note 
     5)                                           (250)                      (250)                           - 
                             --------------------------  -------------------------  -------------------------- 
                                                  (276)                      (305)                        (23) 
                             --------------------------  -------------------------  -------------------------- 
    Net current 
     assets/(liabilities)                           180                       (38)                       1,318 
                             --------------------------  -------------------------  -------------------------- 
   Debtors - amounts 
    falling 
    due after one year                                -                        100                           - 
                             --------------------------  -------------------------  -------------------------- 
 
   Net assets                                     4,776                      3,987                       4,864 
                             --------------------------  -------------------------  -------------------------- 
 
 
      Share capital and reserves 
    Called up share capital                          64                         64                          86 
    Special reserve                               1,506                      1.506                       2,655 
    Capital reserve                               2,394                      1,536                       1,180 
    Capital redemption 
     reserve                                        125                        125                         103 
    Revenue reserve                                 687                        756                         840 
                             --------------------------  -------------------------  -------------------------- 
    Equity shareholders' 
     funds                                        4,776                      3,987                       4,864 
                             --------------------------  -------------------------  -------------------------- 
 
 
      Net asset value per 
      Ordinary share (note 
      6)                                      74.89p                       62.53p                     57.21p 
                             --------------------------  -------------------------  -------------------------- 
 

Statement of cash flows (unaudited)

for the six months to 28 February 2017

 
                                      Six months                       Six months 
                                           to 28           Year to          to 29 
                                        February         31 August       February 
                                            2017              2016           2016 
                                         GBP'000           GBP'000        GBP'000 
   Cash flows from operating activities 
 
    Net return on ordinary 
     activities                              789               483            211 
    Adjustment for: 
    Net capital return                     (858)             (623)          (267) 
    Income credited to 
     capital                                 250               100              - 
    Expenses charged to 
     capital                                (22)              (42)           (25) 
    Interest paid                              5                11              9 
    (Decrease)/increase 
     in creditors                           (29)                27            (5) 
    Increase in debtors                    (247)              (97)            (4) 
    Cash used in operations                (112)             (141)           (81) 
                                   -------------  ----------------  ------------- 
 
      Cash flows from investing activities 
    Purchase of investments                (444)             (420)           (50) 
    Sales of investments                     403             2,082          1,818 
                                   -------------  ----------------  ------------- 
    Net cash (used in)/from 
     investing activities                   (41)             1,662          1,768 
                                   -------------  ----------------  ------------- 
 
      Cash flows from financing activities 
    Cost of shares purchased 
     for cancellation under                    -           (1,149)              - 
     tender offer 
    Costs of cancelling 
     share premium account                     -              (19)           (19) 
    New loans advanced                         -               300             50 
    Capital repayment 
     of loans                                  -             (450)          (450) 
    Interest paid                            (5)              (11)            (9) 
                                   -------------  ----------------  ------------- 
 
      Net cash used in financing 
      activities                             (5)           (1,329)          (428) 
                                   -------------  ----------------  ------------- 
 
 
      Net (decrease)/increase 
      in cash                              (158)               192          1,259 
                                   -------------  ----------------  ------------- 
    Cash at the beginning 
     of the period                           261                69             69 
                                   -------------  ----------------  ------------- 
    Cash at the end of 
     the period                              103               261          1,328 
                                   -------------  ----------------  ------------- 
 
   1.     ACCOUNTING POLICIES 

Statement of compliance

The Company's Financial Statements for the period ended 28 February 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 financial statements have been prepared in accordance with the accounting policies set out in the statutory accounts for the year ended 31 August 2016.

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 28 February 2017 and 29 February 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 August 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 auditors' report and did not contain a statement required under Section 498 (2) or (3) of the Companies Act 2006.

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 Income

 
                                  Six months             Year         Six months 
                                          to               to                 to 
                                 28 February        31 August        29 February 
                                        2017             2016               2016 
                                     GBP'000          GBP'000            GBP'000 
 
      Income from investments 
      Income from LLP 
       investments                       250              115                 15 
      UK net dividend 
       income                              1               12                  3 
 
      Total income                       251              127                 18 
                                ------------  ---------------  ----------------- 
 

3 Taxation

The tax charge for the six months to 28 February 2017 is nil (year to 31 August 2016: nil;six months to 29 February 2016: nil).

The Company has an effective tax rate of 0% for the year ending 31 August 2017. The estimated effective tax rate is 0% as investment gains are exempt from tax owing to the Company's status as an Investment Trust and there is expected to be an excess of management expenses over taxable income.

4 Investments

 
                                                                        28                31 August        29 February 
                                                                        February 
                                                                              2017             2016               2016 
                               AIM        Unquoted        NASDAQ             Total            Total              Total 
                           GBP'000         GBP'000       GBP'000           GBP'000          GBP'000            GBP'000 
      Opening 
       book cost             3,155           1,612           166             4,933            4,695              4,695 
      Opening 
       investment 
       holding 
       (losses)/gains        (757)           (169)          (82)           (1,008)              327                327 
                       -----------  --------------  ------------  ----------------  ---------------  ----------------- 
                             2,398           1,443            84             3,925            5,022              5,022 
 
      Movements 
       in the 
       period: 
      Purchases 
       at cost                 444               -             -               444              420                 50 
      Sales proceeds         (403)               -             -             (403)          (2,082)              (129) 
      Gains on 
       sales                   213               -             -               213            1,900              1,689 
      Movement 
       in investment 
       holding 
       gains/(losses)          503            (42)          (44)               417          (1,335)            (3,086) 
      Closing 
       valuation             3,155           1,401            40             4,596            3,925              3,546 
                       -----------  --------------  ------------  ----------------  ---------------  ----------------- 
 
      Closing 
       book cost             3,409           1,612           166             5,187            4,933              4,616 
      Closing 
       investment 
       holding 
       (losses)/gains        (254)           (211)         (126)             (591)          (1,008)            (1,070) 
      Closing 
       valuation             3,155           1,401            40             4,596            3,925              3,546 
 
 
      Analysis of 
       capital gains 
       and losses 
      Realised 
       gains on 
       sales                   213               -             -               213            1,900              1,689 
      Movement 
       in fair 
       value of 
       investments             503            (42)          (44)               417          (1,335)            (1,397) 
                       -----------  --------------  ------------  ----------------  ---------------  ----------------- 
                               716            (42)          (44)               630              565                292 
                       -----------  --------------  ------------  ----------------  ---------------  ----------------- 
 

Fair value hierarchy

In accordance with FRS 102 and FRS 104 the Company must disclose the fair value hierarchy of financial instruments.

The fair value hierarchy consists of the following three classifications:

Classification A - Quoted prices in active markets for identical assets or liabilities.

Classification B - The price of a recent transaction for an identical asset, where quoted prices are unavailable.

Classification C -Inputs for the asset or liability that are based on observable market data and unobservable market data, to estimate what the transaction price would have been on the measurement data in an arm's length exchange motivated by normal business considerations.

Details of the Company's financial instruments are shown in the Portfolio Review including financial instruments which fall into level C shown under the section heading "Unquoted". A summary reconciliation of the fair value movements of level C investments is shown in the table above.

Financial assets at fair value through profit or loss;

 
                       Classification   Classification   Classification     Total 
                                    A                B                C 
                              GBP'000          GBP'000          GBP'000   GBP'000 
 At 28 February 
  2017 
 Equity investments             3,195                -            1,401     4,596 
 Total                          3,195                -            1,401     4,596 
                      ---------------  ---------------  ---------------  -------- 
 At 31 August 
  2016 
 Equity investments             2,482                -            1,443     3,925 
 Total                          2,482                -            1,443     3,925 
                      ---------------  ---------------  ---------------  -------- 
 At 29 February 
  2016 
 Equity investments             2,541                -            1,005     3,546 
 Total                          2,541                -            1,005     3,546 
                      ---------------  ---------------  ---------------  -------- 
 

5 Short term loans

On 17 June 2016 the Company entered in to a GBP250,000 loan agreement with Jarvis Investment Management Limited. Interest is payable monthly in arrears at the rate of 4.5% above the Bank of England base rate.

At the period end GBP250,000 is outstanding of which GBP125,000 was drawn down on 17 June 2016 and GBP125,000 on 8 August 2016. The loan is secured on the assets of the Company and is repayable on demand.

6 Net asset value

The basic net asset value per Ordinary share is based on net assets of GBP4,776,000 (31 August 2016: GBP3,987,000; 29 February 2016: GBP4,864,000) and on 6,377,088 Ordinary shares (31 August 2016: 6,377,088; 29 February 2016: 8,501,650) being the number of Ordinary shares in issue at the period end. No shares are held in Treasury.

7 Related party transactions

Under the terms of the agreement dated 28 June 2001, the Company has appointed Chelverton Asset Management Limited to be the Investment Manager. Mr Horner, a Director of the Company, is also a director of Chelverton Asset Management Limited and chairman of CEPS PLC, in which the Company holds an investment as set out above. Mr Martin is the Chairman of Touchstar plc in which the Company holds an investment as set out above.

At 28 February 2017 there was GBP4,200 (31 August 2016: GBP3,500; 29 February 2016: GBP4,000) payable to the Investment Manager.

The three Directors also have individual holdings in Chelverton Asset Management Holdings, a company which has Mr Horner as a director and which the Company also has a direct holding. The Directors' holdings are detailed below.

 
                            Percentage                       Percentage 
               Loan stock           of       Ordinary       of ordinary 
                     held   loan stock    shares held       shares held 
                                  held 
                  GBP'000            %        GBP'000                 % 
K J Allen               -            -              1                 1 
D A Horner            615           96             56                56 
I P Martin              -            -              2                 2 
 

The Company holds 2,000 shares in Chelverton Asset Management Limited representing 2% of the voting rights.

 
 Directors and Advisers 
 Directors                     Registrars and 
                                Transfer Office 
 Kevin Allen (Chairman)        Share Registrars 
                                Limited 
 David Horner                  The Courtyard 
 Ian Martin                    17 West Street 
                               Farnham 
                               Surrey GU9 7DR 
                               Tel: 01252 821 
                                390 
                               www.shareregistrars.uk.com 
 
 Investment Manager            Auditors 
 Chelverton Asset Management   Hazlewoods LLP 
  Limited 
 111 Laura Place               Windsor House 
 Bath BA2 4BL                  Bayshill Road 
 Tel: 01225 483 030            Cheltenham GL50 
                                3AT 
 
 Secretary and Registered      Custodian and 
  Office                        Banker 
 ISCA Administration Limited   Jarvis Investment 
                                Management Limited 
 Suite 8, Bridge House         78 Mount Ephraim 
 Courtenay Street              Royal Tunbridge 
                                Wells TN4 8BS 
 Newton Abbot                  Tel: 01892 510 
                                515 
 Devon TQ12 2QS 
 Tel: 01392 487 056 
 Email: cgw@iscaadmin.co.uk 
 

Information about the Company can be obtained at the Investment Manager's website at www.chelvertonam.com. Neither the contents of the manager's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website incorporated into, or forms part of this announcement.

An investment company as defined under Section 833 of the Companies Act 2006.

REGISTERED IN ENGLAND No 2989519

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR BDGDSSUGBGRR

(END) Dow Jones Newswires

April 07, 2017 08:59 ET (12:59 GMT)

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