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 0.0% 30.00 28.00 32.00 30.00 30.00 30.00 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -0.1 -2.3 - 2

Chelverton Growth Trust PLC Half-year Report

26/05/2020 4:47pm

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RNS Number : 9808N

Chelverton Growth Trust PLC

26 May 2020

Chelverton Growth Trust PLC

LEI: 213800I86P8BAE6UVI83

Half Yearly Report

For the six months ended 29 February 2020

The Directors announce the unaudited Half Yearly Report for the period 1 September 2019 to 29 February 2020.

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). At the Annual General Meeting held on 12 December 2019, Shareholders voted to amend the Company's Investment Policy to state that the Company:

   --            may participate in a CEPS placing (if it were to have one); 
   --            will liquidate its various other investments when it is felt appropriate to do so; 
   --            will repay the Jarvis Loan; and 
   --            will pay all outstanding liabilities. 
   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 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

I sincerely hope that all our Shareholders are safe and well in these very difficult and strange times.

Writing this report now feels very strange as we had expected to see some significant progress in our investments and a recognition of the underlying value within the portfolio. This progress has been put on hold until such time as a move back to normality has commenced. However, it is important to stress that our investee companies have taken all the steps that can be taken to ensure that, when this happens, they are ready to implement, as appropriate, their growth and development plans.

In the period covered by this report, we saw an end to the three years of the Brexit saga, which weighed heavily on UK companies and, in particular on small companies' share valuations. The election of Boris Johnson as Prime Minister with a clear working majority and completion of the UK's exit from the European Union gave a backcloth for a reappraisal and potential recovery in small company valuations. Unfortunately, as a result of the arrival of Covid-19, at the end of February we have had to deal instead with the effects of the unprecedented lockdown.

Our Investment Manager has of course spoken to the management teams at our underlying investments and to their knowledge, people are safe and well. It is important to stress, that whatever actions are taken from this point there must be full regard to the importance of people's overall safety and welfare.

Financial Performance

Your Company has seen an increase in the net asset value per share from 44.79p at 31 August 2019 to 46.43p at 28 February 2020, an increase of 3.66%. Whilst in general, the underlying performance of the individual investments has been as expected, the sentiment towards UK publicly quoted equites, and in particular the small companies and micro-cap companies, remains negative.

Over the same period, the AIM All-share index has fallen by 1.71% whilst the Company's comparative index, the MSCI Small Cap UK index rose by some 0.58%. The Company's share price has decreased from 40.50p to 37.00p per share and the shares were therefore trading at a discount of 20.31% at the period end.

Since the period end, the net asset value per share has declined to 42.72p as at 30 April 2020, reflecting the market turmoil, precipitated by the introduction of the lockdown and the unprecedented events currently unfolding in the United Kingdom.

Markets hate uncertainty, and, unfortunately, we are living in very uncertain times, which have borne down on the valuations of UK equities. By the same token, when the situation is resolved, the removal of the uncertainty should lead to a reappraisal of prospects and valuations. Ironically, because our portfolio is in small, highly UK-centric businesses, as long as we remain confident that the UK will recover, then our companies should prosper over time.

There remains of course a whole range of other real concerns in the World. These include: the ongoing trade disputes and introduction of tariffs by the United States and any subsequent retaliatory actions by China and the European Union; the severe financial issues within the European Union concerning the funding of member states, in particular Italy and Spain; and the recently publicised differences between Germany and the European Central Bank.


CEPS is the largest investment in the portfolio, and I would remind Shareholders that this is a diversified AIM traded holding company that owns majority shareholdings in four UK subsidiary businesses. Your Investment Manager, and my fellow Board member, David Horner is chairman of the company and has a similar sized shareholding to that of Chelverton Growth Trust. CEPS is being built up by the growth of the underlying companies and by strategic "bolt-on" acquisitions. During the period, one of the subsidiaries was unfortunately placed into administration when the board of CEPS decided that it was unable to justify continuing to support it.

The remaining companies all made progress and it was expected that 2020 was going to be a year in which their underlying positive trading results would become evident. However, it now looks like this will be delayed until 2021.

Touchstar, Petards and Universe are all making progress, and appear, on a one-year view, to be undervalued, particularly with the general market reduction in all share prices.

MTI Wireless Edge has seen a strong recovery over the past two years and the shares were recently sold, post the period end, with the proceeds used to partly repay debt.

We took a proactive position on Plutus Powergen where we, and the market, had become very concerned by the actions, or more precisely inaction of its board. With others we put forward resolutions to replace the board and we had a clear plan as to how to put the company on a stable footing. Unfortunately, the incumbent board and its supporters narrowly won the day and has subsequently, effectively closed the company down. After the period end, Chelverton Growth Trust has sold its holding for a nominal sum.

Looking at the unquoted holdings, Chelverton Asset Management, the Investment Managers of the Company, had a solid six months growing funds under management and paying an increased dividend. Following the precipitous decline across the stock market in mid-March, funds under management have declined. However, as the position has become generally clearer, there has been a strong recovery.

Last year we announced that Main Dental Partners had been conditionally purchased by Spa Dental pending the resolution of a court case brought by the previous managing director. This case was duly won by the company; however, the appellant has now lodged an appeal. It is not known at this time whether this right to appeal will be granted. In the meantime, given the nature of the business, all of the surgeries have been closed down and staff furloughed. Nevertheless, going forward, there will still be demand for dental treatment.

On a brighter point, La Salle Education, a business involved in supplying schools with the modern mathematics syllabus via the internet, has been deeply involved in providing services to many schools. Also, Pedalling Forth (trading as Velovixen) an internet retailer of women's cycling clothing has enjoyed a big uplift in sales; it is to be hoped that this will be sustained once the Country gets through the current situation.


It is impossible to make any kind of forecast at this time other than to say that gradually, the economy and society will move towards a new settled outcome. This new situation will resemble what the position was before the arrival of Covid 19, but almost certainly will not be the same.

Every day, as businesses adapt to and resolve the constraints placed upon them by the virus, more and more people are going back to work. We believe that there will initially be a sharp upturn followed, over time, by a slower growth in economic activity, as the economy strives to recover losses caused by the reaction to Covid-19.

It is undoubtedly the case that unemployment will rise, partly as a result of the severe economic jolt caused by the lockdown, but also as a result of a change in working patterns and a drive to greater efficiencies. Given the UK economy had been operating at effectively full employment for the past few years this is not surprising and in some cases is to be welcomed.

It is the Board's ongoing intention to return funds to Shareholders by way of annual tender offers. These can only be carried out in a meaningful and cost-effective manner when the Company has significant cash resources. At the moment the Company is largely fully invested and therefore the ninth tender offer will be delayed until we believe the share price better reflects the underlying value of the investments and significant sums have been realised from one or more holdings. Further sales of existing investments will take place once the Board's perception of the real value is restored.

The Board is actively considering the future of the Company and how best to return value to Shareholders in the most effective and tax-efficient manner.

Kevin Allen


26 May 2020

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, other than as set out below, remain the same as those disclosed in the Annual Report for the year ended 31 August 2019 on pages 12 and 13 and pages 49 and 50. These risks include, but are not limited to, market risk, discount volatility risk, regulatory risk, financial risk and liquidity risk.

Global Pandemic

Given recent events, Covid 19 has emerged as a significant risk which has impacted global commercial activities. The Board has been monitoring the development of the pandemic and has considered the impact it has had to date and assessed the impact it may have in the future. The Chairman's Statement covers this in more detail and the Board is actively liaising with the Investment Manager to obtain a full understanding of its effect on the investee companies.

   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 29 February 2020, 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 26 May 2020 and the above responsibility statement was signed on its behalf by:

Kevin Allen


   Portfolio   review 
   as   at   29  February  2020 
   The   Company's   portfolio   is  set out   below. 
 Investment                 Sector                       Valuation        % of 
                                                           GBP'000       total 
 AIM Traded 
 CEPS                       Support Services                 1,518        51.2 
 Trading holding company for a number of 
  companies supplying services and products 
                            Technology Hardware & 
 MTI Wireless Edge           Equipment                         240         8.1 
 Developer and manufacturer of sophisticated 
  antennas and antenna systems 
 Petards Group              Support Services                   160         5.4 
 Development, provision and maintenance 
  of advance security systems and related 
 Plutus Powergen            Flexible Energy Supply              23         0.8 
 Providers of management infrastructure 
  and expertise to operate power plants and 
  provide flexible electricity generation 
                            Technology Hardware & 
 Touchstar                   Equipment                         332        11.2 
 Software systems for warehousing and distribution 
 Universe Group             Support Services                    33         1.1 
 Provision of credit fraud prevention, loyalty 
  and retail systems 
 Fully Listed 
 Zenith Energy              Oil & Gas Producers                 21         0.7 
 International energy production and exploration 
 Nasdaq Traded 
 Touchpoint Group           Support Services 
  Holdings                                                       -           - 
      (formerly One Horizon Group) 
 Provider of mobile satellite communications 
  equipment and airtime 
                                                        ----------  ---------- 
                                                             2,327        78.5 
 Chelverton Asset 
  Management Holdings       Support Services                   220         7.4 
 Investment management, including providing 
  services to Chelverton Growth Trust Plc 
 La Salle Education         Support Services                   260         8.7 
 A UK based company dedicated to improving 
  mathematics education 
 P edalling Forth           General Retailers                  160         5.4 
 Internet retailer of cycling clothing for 
 Redecol*                   Healthcare Equipment 
                             & Services                          -           - 
 A medical device company focused on the 
  development of asthma monitoring 
 Portfolio valuation                                         2,967       100.0 
                                                        ----------  ---------- 

* Shares received from the purchase of Anaxsys Technology by Redecol Limited

   Portfolio   holdings 
   as   at   29  February  2020 
                                     29 February           31 August 2019 
                                Valuation        % of   Valuation        % of 
                                                total                   total 
 Investment                       GBP'000   portfolio     GBP'000   portfolio 
 CEPS                               1,518        51.2       1,214        43.3 
 Touchstar                            332        11.2         298        10.6 
 La Salle Education                   260         8.7         130         4.6 
 MTI Wireless Edge                    240         8.1         176         6.3 
 Chelverton Asset Management 
  Holdings                            220         7.4         220         7.9 
 Pedalling Forth                      160         5.4         200         7.1 
 Petards Group                        160         5.4         380        13.5 
 Universe Group                        33         1.1          34         1.2 
 Plutus Powergen                       23         0.8          93         3.3 
 Zenith Energy                         21         0.7          63         2.2 
 Touchpoint Group Holdings 
  (formerly One Horizon 
  Group)                                -           -           -           - 
 Redecol*                               -           -           -           - 
   Total                            2,967       100.0       2,808       100.0 
                               ----------  ----------  ----------  ---------- 

* Shares received from the purchase of Anaxsys Technology by Redecol Limited

   Portfolio   breakdown   by   sector and  by   index 
   as   at   29  February  2020 
Sector distribution               % of total 
Support Services                        73.8 
Technology Hardware & Equipment         19.3 
General Retailers                        5.4 
Flexible Energy Supply                   0.8 
Oil & Gas Producers                      0.7 
Index distribution                % of total 
AIM                                     77.8 
Unquoted                                21.5 
Fully listed                             0.7 
   Income   statement   (unaudited) 

for the six months to 29 February 2020

                           Six months to                       Year to                         Six months to 
                          29 February 2020                  31 August 2019                    28 February 2019 
                     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 
  on investments 
  at fair value 
  (note 4)                 -       159       159          -       (682)       (682)          -       (505)       (505) 
 Income (note 
  2)                      24         -        24         22           -          22         10           -          10 
  fee*                   (3)       (8)      (11)        (9)        (26)        (35)        (4)        (13)        (17) 
 Other expenses         (71)      (12)      (83)      (138)        (24)       (162)       (71)        (12)        (83) 
                   ---------  --------  --------  ---------  ----------  ----------  ---------  ----------  ---------- 
 Net (loss)/ 
  return on 
  before taxation       (50)       139        89      (125)       (732)       (857)       (65)       (530)       (595) 
  on ordinary 
  activities               -         -         -          -           -           -          -           -           - 
                   ---------  --------  --------  ---------  ----------  ----------  ---------  ----------  ---------- 
  on ordinary 
  after taxation        (50)       139        89      (125)       (732)       (857)       (65)       (530)       (595) 
                     Revenue   Capital     Total    Revenue     Capital       Total    Revenue     Capital       Total 
                       pence     pence     pence      pence       pence       pence      pence       pence       pence 
  per Ordinary 
  share**             (0.91)      2.54      1.63     (2.29)     (13.41)     (15.70)     (1.18)      (9.71)     (10.89) 

The total column of this statement is the statement of comprehensive income 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 October 2019 by the Association of Investment Companies ("AIC SORP").

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

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

* With effect from 1 November 2019, the Investment Management fee was reduced from 1.0% per annum of gross assets to 0.5% per annum of gross assets.

** The return per Ordinary share is based on 5,460,301 (31 August 2019: 5,460,301; 28 February 2019: 5,460,301) shares, being the weighted average number of shares in issue during the period.

   Statement of changes in equity   (unaudited) 

for the six months to 29 February 2020

                                 Called                                Capital 
                               up share      Special     Capital    redemption     Revenue 
                                capital     reserve*     reserve       reserve     reserve       Total 
                                GBP'000      GBP'000     GBP'000       GBP'000     GBP'000     GBP'000 
 Six months to 29 February 2020 
   1 September 2018                  55          787       1,111           134         359       2,446 
   Net return/( loss) 
    after taxation for 
    the period                        -            -         139             -        (50)          89 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
   29 February 2020                  55          787       1,250           134         309       2,535 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
 Year to 31 August 2019 
   1 September 2018                  55          787       1,843           134         484       3,303 
   Net loss after taxation 
    for the year                      -            -       (732)             -       (125)       (857) 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
   31 August 2019                    55          787       1,111           134         359       2,446 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
 Six months to 28 February 2019 
   1 September 2018                  55          787       1,843           134         484       3,303 
   Net loss after taxation 
    for the period                    -            -       (530)             -        (65)       (595) 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
   28 February 2019                  55          787       1,313           134         419       2,708 
                             ----------  -----------  ----------  ------------  ----------  ---------- 
 *The Special reserve was created by the cancellation of the 
  share premium account by order of the High Court on 20 January 
  Distributable reserves: The Special reserve and Revenue reserve 
  can be used for the purchase of the Company ' s Ordinary shares. 

Statement of financial position (unaudited)

as at 29 February 2020

                                              As at 29                    As at 31                    As at 28 
                                              February                      August                    February 
                                                  2020                        2019                        2019 
                                               GBP'000                     GBP'000                     GBP'000 
    Fixed assets 
    Investments at fair 
     (note 4)                                    2,967                       2,808                       3,073 
    Current assets 
    Debtors                                        150                         145                           2 
    Cash at bank                                    42                         125                         255 
                            --------------------------  --------------------------  -------------------------- 
                                                   192                         270                         257 
                            --------------------------  --------------------------  -------------------------- 
      Creditors - amounts falling due within one year 
    Creditors                                     (24)                        (32)                        (22) 
    Short-term loans (note 
     5)                                          (600)                       (600)                       (600) 
                            --------------------------  --------------------------  -------------------------- 
                                                 (624)                       (632)                       (622) 
                            --------------------------  --------------------------  -------------------------- 
    Net current 
     (liabilities)/assets                        (432)                       (362)                       (365) 
                            --------------------------  --------------------------  -------------------------- 
   Net assets                                    2,535                       2,446                       2,708 
                            --------------------------  --------------------------  -------------------------- 
      Share capital and reserves 
    Called up share 
     capital                                        55                          55                          55 
    Special reserve                                787                         787                         787 
    Capital reserve                              1,250                       1,111                       1,313 
    Capital redemption 
     reserve                                       134                         134                         134 
    Revenue reserve                                309                         359                         419 
                            --------------------------  --------------------------  -------------------------- 
    Equity shareholders' 
     funds                                       2,535                       2,446                       2,708 
      Net asset value per 
      share (note 6)                         46.43p                       44.79p                      49.59p 
                            --------------------------  --------------------------  -------------------------- 
   Statement   of  cash   flows   (unaudited) 

for the six months to 29 February 2020

                                             Six months                         Six months 
                                                     to           Year to               to 
                                            29 February         31 August      28 February 
                                                   2020              2019             2019 
                                               GBP' 000          GBP' 000         GBP' 000 
   Cash flows from operating activities 
    Net return/(loss) on ordinary 
     activities                                      89             (857)            (595) 
    Adjustment for: 
    Net capital (return)/loss                     (139)               732              530 
    Expenses charged to capital                    (20)              (50)             (25) 
    Interest paid                                    16                32               16 
    (Decrease)/increase in creditors                (8)                 2              (8) 
    (Increase)/decrease in debtors                  (5)             (136)                7 
    Cash used in operations                        (67)             (277)             (75) 
                                        ---------------  ----------------  --------------- 
      Cash flows from investing activities 
    Purchase of investments                           -             (146)             (96) 
    Proceeds from sale of investments                 -               141                3 
                                        ---------------  ----------------  --------------- 
    Net cash used in investing 
     activities                                       -               (5)             (93) 
                                        ---------------  ----------------  --------------- 
      Cash flows from financing activities 
    Interest paid                                  (16)              (32)             (16) 
                                        ---------------  ----------------  --------------- 
      Net cash used in financing 
      activities                                   (16)              (32)             (16) 
                                        ---------------  ----------------  --------------- 
      Net decrease in cash                         (83)             (314)            (184) 
                                        ---------------  ----------------  --------------- 
    Cash at the beginning of 
     the period                                     125               439              439 
                                        ---------------  ----------------  --------------- 
    Cash at the end of the period                    42               125              255 
                                        ---------------  ----------------  --------------- 

1 Accounting Policies

a) Statement of compliance

The Company's Financial Statements for the period ended 29 February 2020 have been prepared under UK Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice, 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in October 2019 ('the SORP') by the Association of Investment 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 2019.

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 29 February 2020 and 28 February 2019 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 2019 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.

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. In assessing the Company's ability to continue as a going concern, the Board has fully considered the impact of the current pandemic.

2 Income

                                  Six months          Year to         Six months 
                                          to                                  to 
                                 29 February        31 August        28 February 
                                        2020             2019               2019 
                                     GBP'000          GBP'000            GBP'000 
      Income from investments 
      UK net dividend income              16               17                 10 
      Loan stock interest                  8                5                  - 
      Total income                        24               22                 10 
                                ------------  ---------------  ----------------- 

3 Taxation

The tax charge for the six months to 29 February 2020 is nil (year to 31 August 2019: nil; six months to 28 February 2019: nil).

The Company has an effective tax rate of 0% for the year ending 31 August 2020. 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

                                                                                                        29             31              28 
                                                                                                  February         August        February 
                              Fully                      AIM                                          2020           2019            2019 
                             Listed                   quoted        Unquoted        NASDAQ           Total          Total           Total 
                            GBP'000                  GBP'000         GBP'000       GBP'000         GBP'000        GBP'000         GBP'000 
      Opening book 
       cost                     118                    4,236             773           166           5,293          5,472           5,472 
       holding losses          (55)                  (2,041)           (223)         (166)         (2,485)        (1,987)         (1,987) 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
                                 63                    2,195             550             -           2,808          3,485           3,485 
      Movements in 
       the period: 
      Purchases at 
       cost                       -                        -               -             -               -            146              96 
      Sales proceeds              -                        -               -             -               -          (141)             (3) 
       on sales                   -                        -               -             -               -          (184)               3 
      Movement in 
       holding losses          (42)                      111              90             -             159          (498)           (508) 
                       ------------  -----------------------  --------------  ------------  --------------  ------------- 
       valuation                 21                    2,306             640             -           2,967          2,808           3,073 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
      Closing book 
       cost                     118                    4,236             773           166           5,293          5,293           5,568 
       holding losses          (97)                  (1,930)           (133)         (166)         (2,326)        (2,485)         (2,495) 
                       ------------                                                                                        -------------- 
       valuation                 21                    2,306             640             -           2,967          2,808           3,073 
                       ------------                                                                                        -------------- 
      Analysis of capital gains 
       and losses 
       on sales                   -                        -               -             -               -          (184)               3 
      Movement in 
       fair value 
       of investments          (42)                      111              90             -             159          (498)           (508) 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
                               (42)                      111              90             -             159          (682)           (505) 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 

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: 

Level 1 - Valued using quoted prices in active markets for identical assets or liabilities. This is usually the bid price.

Level 2 - Valued by reference to valuation techniques using observable inputs other than quoted prices included within

Level 1.

Level 3 - Valued by reference to valuation techniques using inputs that are not based on observable market data.

Details of the Company's financial instruments are shown in the Portfolio Review including financial instruments which fall into Level 3 shown under the section heading "Unquoted". A summary reconciliation of the fair value movements of Level 3 investments is shown in the table above.

Financial assets at fair value through profit or loss;

                       Level 1   Level 2   Level 3     Total 
                       GBP'000   GBP'000   GBP'000   GBP'000 
 At 29 February 
 Equity investments      2,327         -       640     2,967 
                      --------  --------  --------  -------- 
 Total                   2,327         -       640     2,967 
                      --------  --------  --------  -------- 
 At 31 August 2019 
 Equity investments      2,258         -       550     2,808 
                      --------  --------  --------  -------- 
 Total                   2,258         -       550     2,808 
                      --------  --------  --------  -------- 
 At 28 February 
 Equity investments      2,345         -       728     3,073 
                      --------  --------  --------  -------- 
 Total                   2,345         -       728     3,073 
                      --------  --------  --------  -------- 

5 Short term loans

On 4 June 2018, the Company entered in to a GBP600,000 loan agreement with Jarvis Securities plc. Interest is payable monthly in arrears at the rate of 4.5% above the Bank of England base rate.

The loan was drawn down on 4 June 2018 and at the period end GBP600,000 was outstanding.

   6 Net   asset   value 

The basic net asset value per Ordinary share is based on net assets of GBP2,535,000 (31 August 2019: GBP2,446,000; 28 February 2019: GBP2,708,000) and on 5,460,301 Ordinary shares (31 August 2019: 5,460,301; 28 February 2019: 5,460,301) 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 in which the Company holds an investment as set out above. Mr Martin is the chairman of Touchstar in which the Company holds an investment as set out above.

At 29 February 2020, there was GBP1,300 (31 August 2019: GBP2,600; 28 February 2019: GBP2,800) 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 of 
                Ordinary shares       Ordinary shares 
                           held                  held 
                       GBP' 000                     % 
K J Allen                     1                     1 
D A Horner*                  56                    56 
I P Martin                    2                     2 
* Director and connected persons 
 total holdings. 

8 Post balance sheet events

On 11 May 2020, following the disposal of MTI Wireless Edge, the Company repaid GBP280,000 of its GBP600,000 loan from Jarvis Securities plc leaving a balance of GBP320,000 outstanding.

In recent months Covid 19 has emerged as a significant risk. Details of the impact on the Company are given in the Chairman's Report and in the Interim management report above.

Information about the Company can be obtained at the Investment Manager's website at 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 02989519 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit



(END) Dow Jones Newswires

May 26, 2020 11:47 ET (15:47 GMT)

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