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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 (4691I)

14/04/2022 3:12pm

UK Regulatory


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TIDMCGW

RNS Number : 4691I

Chelverton Growth Trust PLC

14 April 2022

Chelverton Growth Trust PLC

LEI: 213800I86P8BAE6UVI83

Half Yearly Report

For the six months ended 28 February 2022

The Directors announce the unaudited Half Yearly Report for the period 1 September 2021 to 28 February 2022.

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 outstanding 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 ("CAM"), 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 CAM 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

In the six months to 28 February 2022, the Net Asset Value per share increased by just under 1% to 58.02p. Although this performance shows only a modest uplift in value since my last report, relative to our benchmark MSCI Small Cap UK Index which declined by 15.42% it represents another period of outperformance.

On the 24 February Russia invaded Ukraine. As far as we are aware, this distressing situation has led to no material change in trading for the businesses we are invested in. Realistically, the combination of geo-political instability, inflationary pressures and higher interest rates will inevitability depress valuations in the short term. The assumption made is that this year will see a subdued level of macro-economic growth and investment.

I had expected that we would now be in a position to put forward plans as to how we proposed to return value to Shareholders. However, with the heightened level of uncertainty, the Board feel that any proposals would severely undervalue the underlying assets of the Company. We continue to review the situation and will produce our proposals when we are confident that the sensible value can be extracted.

The Board believe that there is significant potential for improvement in the underlying investments and do not believe that it is in the Shareholders' interests to forego this upside for the convenience of resolving the future of the Company at this moment.

I remain grateful to Chelverton Asset Management, the Investment Manager of the Company, who are waiving their management fee in its entirety, in addition, Ian Martin and I have also waived part of our fees. The collective effect of these actions means that the expense ratio, whilst still high, a consequence of a very small sized Company, is much lower than it could have been.

Financial Performance

Prior to the Russian invasion of Ukraine, the underlying performance of the investments had been encouraging with strong market sentiment towards UK publicly quoted equites, and in particular the small companies and micro-cap value companies, which were recovering well after the "Covid Period". Almost all this increase was eliminated by the invasion when sentiment turned negative reflecting the higher level of uncertainty.

Over the same period, the AIM All-share index has declined by 19.54% and the share price has decreased from 59.5p to 43.0p. At the period end, the shares were trading at a discount of 25.89%.

Investments

CEPS is the largest investment in the Company and to remind Shareholders this is a diversified AIM traded holding company that owns majority shareholdings in three subsidiaries, and a significant minority in a fourth. My fellow Board member, David Horner is Chairman of CEPS and has a similar sized shareholding as the Company. CEPS is being built up by the growth of the underlying companies and by strategic "bolt-on" acquisitions.

-- With the new management in place at Aford Awards for some 18 months there has been significant activity. With a "self-help" programme of revamping the warehouse and production areas the business is now much more efficient and more importantly, can deliver more product from the same premises with the same staff. This was important as three bolt-on acquisitions were made last year which have been relocated to the company's premises and integrated. An additional much larger purchase has just been made which will make a significant contribution in the current year.

-- Hickton Group , the fast-growing property services group, continues to develop and is highly cash generative and is therefore expected to repay its acquisition loans.

-- Friedman s and Milano are starting to enjoy a return to normal trading as the economy and society begins to unlock.

-- The merger of Davis Odell and Vale Brothers has now been completed with one banking arrangement and a single accounting system.

All the CEPS businesses, in common with all other enterprises in the United Kingdom are experiencing rapidly increasing prices of materials. In addition, a severe shortage, and a consequent rise in labour costs is also proving to be challenging.

Touchstar has made further progress in the past six months with a positive trading statement at the end of January. The company now has a very strong balance sheet with some 40% of its market value represented by cash.

Petards is also expected to shortly produce its 2021 annual accounts showing a return to profitability. A recent large buy-back and cancellation of its own shares demonstrates that the company has a strong balance sheet and that its Board considers the shares to be materially undervalued.

Universe was taken over at 12p per share which represented a very healthy premium of 129%. The purchaser was a business based in the United States.

The saga at Main Dental Partners unfortunately continues with the appeal being brought by the previous managing director, James Main, being postponed until later this year. This relates to a material claim for employment compensation that was judged in favour of the company.

La Salle Education ("La Salle"), a business involved in supplying schools with the modern mathematics syllabus via the internet has been deeply involved in providing services to many schools. After a slow start, there are signs that market awareness is increasing leading to rising revenue streams.

Outlook

As I mention in the introduction, the trading climate is very uncertain due to the invasion of Ukraine, while China continues to grapple with containing the Coronavirus. The impact of these events is being closely felt all over Europe and the United States due to the globalisation of business over the past 30 years. It might well be that we see a reversal of this trend over the next period which may well lead to price rises as the cost of securing supply chains increases.

We believe that the UK economy will recover once these macro themes become factored into business thinking. The pressure on labour supply will be resolved over the medium term, via a drive towards increased productivity. As part of the resolution of the labour shortage, employing older workers might be mutually beneficial for people struggling with low pensions and companies struggling to recruit.

Kevin Allen

Chairman

14 April 2022

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 2021 on pages 14 and 15 and pages 55 and 56. 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 2022, 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; 

a) 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

b) 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 14 April 2022 and the above Responsibility Statement was signed on its behalf by:

Kevin Allen

Chairman

Portfolio R eview

   as   at   28  February  2022 
   The   Company's   portfolio   is  set out   below. 
 
 Investment                  Sector                      Valuation        % of 
                                                           GBP'000       total 
                                                                     portfolio 
 AIM Traded 
 
 CEPS                        Support Services                2,184        67.6 
 Trading holding company for a number of 
  companies supplying services and products 
 
 Petards Group               Support Services                  210         6.5 
 Development, provision and maintenance 
  of advance security systems and related 
  services 
 
                             Technology Hardware & 
 Touchstar                    Equipment                        595        18.4 
 Software systems for warehousing and distribution 
 
 Nasdaq Traded 
 
 Touchpoint Group            Support Services 
  Holdings                                                       -           - 
 Provider of mobile satellite communications 
  equipment and airtime 
 
 Unquoted 
 
 La Salle Education          Support Services                  182         5.6 
 A UK based company dedicated to providing 
  online mathematics education 
 
 P edalling Forth            General Retailers                  40         1.2 
 Internet retailer of cycling clothing for 
  women 
 
                             Healthcare Equipment 
 Redecol                      & Services                        21         0.7 
 A medical device company focused on the 
  development of asthma monitoring 
 
 
   Portfolio Valuation                                       3,232       100.0 
                                                        ----------  ---------- 
 
   Portfolio   Holdings 
   as   at   28  February  2022 
 
                                    28 February             31 August 2021 
                                        2022 
                                                 % of                      % of 
                                Valuation       total     Valuation       total 
 Investment                       GBP'000   portfolio       GBP'000   portfolio 
 
 CEPS                               2,184        67.6         1,771        57.1 
 Touchstar                            595        18.4           637        20.6 
 Petards Group                        210         6.5           190         6.1 
 La Salle Education                   182         5.6           182         5.9 
 Pedalling Forth                       40         1.2           240         7.7 
 Redecol                               21         0.7            21         0.7 
 Touchpoint Group Holdings              -           -             -           - 
 Universe Group *                       -           -            33         1.1 
 Zenith Energy *                        -           -            24         0.8 
 
   Total                            3,232       100.0         3,098       100.0 
                             ------------  ----------  ------------  ---------- 
 
 

* Sold during the period

   Portfolio   breakdown   by   sector and  by   index 
   as   at   28 February  2022 
 
Sector distribution               % of total 
Support Services                        79.7 
Technology Hardware & Equipment         18.4 
General Retailers                        1.2 
Healthcare Equipment & Services          0.7 
 
Index distribution                % of total 
AIM                                     92.5 
Unquoted                                 7.5 
 
 
   Income   Statement   (unaudited) 

for the six months to 28 February 2022

 
                             Six months to                     Year to                     Six months to 
                            28 February 2022                31 August 2021                28 February 2021 
                       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)                   -        80        80          -     1,042     1,042          -       542       542 
 Income (note 
  2)                         4         -         4         10         -        10          9         -         9 
 Investment                  -         -         -          -         -         -          -         -         - 
  management 
  fee* 
 Other expenses           (61)       (1)      (62)      (117)       (7)     (124)       (56)       (5)      (61) 
                     ---------  --------  --------  ---------  --------  --------  ---------  --------  -------- 
 Net (loss)/ 
  return on 
  ordinary 
  activities 
  before taxation         (57)        79        22      (107)     1,035       928       (47)       537       490 
 Taxation 
  on ordinary 
  activities                 -         -         -          -         -         -          -         -         - 
                     ---------  --------  --------  ---------  --------  --------  ---------  --------  -------- 
 Net (loss)/return 
  on ordinary 
  activities 
  after taxation          (57)        79        22      (107)     1,035       928       (47)       537       490 
 
                       Revenue   Capital     Total    Revenue   Capital     Total    Revenue   Capital     Total 
                         pence     pence     pence      pence     pence     pence      pence     pence     pence 
 (Loss)/return 
  per Ordinary 
  share**               (1.04)      1.44      0.40     (1.95)     18.95     17.00     (0.86)      9.83      8.97 
 

The total column of this statement is the Statement of Total 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 April 2021 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 September 2020, the Investment Manager agreed to waive the entitlement to a fee.

** The return per Ordinary share is based on 5,460,301 (31 August 2021: 5,460,301; 28 February 2021: 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 28 February 2022

 
                             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 28 February 2022 
   1 September 2021              55          787       2,011           134         159       3,146 
   Net return/( loss) 
    after taxation for 
    the period                    -            -          79             -        (57)          22 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
   28 February 2022              55          787       2,090           134         102       3,168 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
 
 Year to 31 August 2021 
   1 September 2020              55          787         976           134         266       2,218 
   Net return/ loss) 
    after taxation for 
    the year                      -            -       1,035             -       (107)         928 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
   31 August 2021                55          787       2,011           134         159       3,146 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
 
 Six months to 28 February 2021 
   1 September 2020              55          787         976           134         266       2,218 
   Net return/( loss) 
    after taxation for 
    the period                    -            -         537             -        (47)         490 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
   28 February 2021              55          787       1,513           134         219       2,708 
                         ----------  -----------  ----------  ------------  ----------  ---------- 
 
 
 
 *The Special reserve was created by the cancellation of the share 
  premium account by order of the High Court on 20 January 2016. 
  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 28 February 2022

 
                                              As at 28                    As at 31                    As at 28 
                                              February                      August                    February 
                                                  2022                        2021                        2021 
                                               GBP'000                     GBP'000                     GBP'000 
    Fixed assets 
    Investments at fair 
     value 
     (note 4)                                    3,232                       3,098                       2,598 
    Current assets 
    Debtors                                        149                         146                         142 
    Cash at bank                                    22                          34                         348 
                            --------------------------  --------------------------  -------------------------- 
                                                   171                         180                         490 
                            --------------------------  --------------------------  -------------------------- 
 
      Creditors - amounts falling due within one year 
    Creditors                                     (20)                        (32)                        (60) 
    Short-term loans (note 
     5)                                          (215)                       (100)                       (320) 
                            --------------------------  --------------------------  -------------------------- 
                                                 (235)                       (132)                       (380) 
                            --------------------------  --------------------------  -------------------------- 
    Net current 
     (liabilities)/assets                         (64)                          48                         110 
                            --------------------------  --------------------------  -------------------------- 
   Net assets                                    3,168                       3,146                       2,708 
                            --------------------------  --------------------------  -------------------------- 
 
 
      Share capital and reserves 
    Called up share 
     capital                                        55                          55                          55 
    Special reserve                                787                         787                         787 
    Capital reserve                              2,090                       2,011                       1,513 
    Capital redemption 
     reserve                                       134                         134                         134 
    Revenue reserve                                102                         159                         219 
                            --------------------------  --------------------------  -------------------------- 
    Equity S hareholders' 
     funds                                       3,168                       3,146                       2,708 
                            --------------------------  --------------------------  -------------------------- 
 
 
      Net asset value per 
      Ordinary 
      share (note 6)                         58.02p                       57.62p                      49.60p 
                            --------------------------  --------------------------  -------------------------- 
 
   Statement   of  Cash   Flows   (unaudited) 

for the six months to 28 February 2022

 
                                             Six months                         Six months 
                                                     to           Year to               to 
                                            28 February         31 August      28 February 
                                                   2022              2021             2021 
                                               GBP' 000          GBP' 000         GBP' 000 
   Cash flows (used in)/from operating activities 
    Net return on ordinary activities                22               928              490 
    Adjustment for: 
    Net capital (return)                           (79)           (1,035)            (537) 
    Expenses charged to capital                     (1)               (7)              (5) 
    Interest paid                                     1                10                6 
    (Decrease)/increase in creditors               (12)              (14)               14 
    (Increase)/decrease in debtors                  (3)                 4                8 
    Cash used in operations                        (72)             (114)             (24) 
                                        ---------------  ----------------  --------------- 
 
      Cash flows (used in)/from investing activities 
    Purchase of investments                       (160)                 -                - 
    Proceeds from sale of investments               106               339              339 
                                        ---------------  ----------------  --------------- 
    Net cash ( used in)/from 
     investing activities                          (54)               339              339 
                                        ---------------  ----------------  --------------- 
 
      Cash flows from/(used in) financing activities 
    Capital repayment of loan                      (50)             (220)                - 
    Loan drawdown                                   165                 -                - 
    Interest paid                                   (1)              (10)              (6) 
                                        ---------------  ----------------  --------------- 
 
      Net cash from/(used in) 
      financing activities                          114             (230)              (6) 
                                        ---------------  ----------------  --------------- 
 
     Net (decrease)/increase 
      in cash                                      (12)               (5)              309 
                                        ---------------  ----------------  --------------- 
    Cash at the beginning of 
     the period                                      34                39               39 
                                        ---------------  ----------------  --------------- 
 
    Cash at the end of the period                    22                34              348 
                                        ---------------  ----------------  --------------- 
 

1 Accounting Policies

a) Statement of compliance

The Company's Financial Statements for the period ended 28 February 2022 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 April 2021 ('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 2021.

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 28 February 2022 and 28 February 2021 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 2021 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 war in Ukraine and the continuing impact of the Covid-19 pandemic.

2 Income

 
                                  Six months          Year to         Six months 
                                          to                                  to 
                                 28 February        31 August        28 February 
                                        2022             2021               2021 
                                     GBP'000          GBP'000            GBP'000 
 
      Income from investments 
      UK net dividend income               -               14                 14 
      Loan stock interest                  4              (4)                (5) 
 
      Total income                         4               10                  9 
                                ------------  ---------------  ----------------- 
 

3 Taxation

The tax charge for the six months to 28 February 2022 is nil (year to 31 August 2021: nil; six months to 28 February 2021: nil).

The Company has an effective tax rate of 0% for the year ending 31 August 2022. 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              28 
                                                                                                  February         August        February 
                              Fully                      AIM                                          2022           2021            2021 
                             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                    3,696             772           166           4,752          4,753           4,753 
      Opening 
       investment 
       holding losses          (94)                  (1,065)           (329)         (166)         (1,654)        (2,358)         (2,358) 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
                                 24                    2,631             443             -           3,098          2,395           2,395 
 
      Movements in 
       the period: 
      Purchases at 
       cost                       -                      160               -             -             160              -               - 
      Sales proceeds           (24)                     (82)               -             -           (106)          (339)           (339) 
      (Losses)/gains 
       on sales                (94)                    (132)               -             -           (226)            338             338 
      Movement in 
       investment 
       holding losses            94                      412           (200)             -             306            704             204 
                       ------------  -----------------------  --------------  ------------  --------------  ------------- 
      Closing 
       valuation                  -                    2,989             243             -           3,232          3,098           2,598 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
 
      Closing book 
       cost                       -                    3,642             772           166           4,580          4,752           4,752 
      Closing 
       investment 
       holding losses             -                    (653)           (529)         (166)         (1,348)        (1,654)         (2,154) 
                       ------------                                                                                        -------------- 
      Closing 
       valuation                  -                    2,989             243             -           3,232          3,098           2,598 
                       ------------                                                                                        -------------- 
 
      Analysis of capital gains 
       and losses 
      Realised 
       (losses)/gains 
       on sales                (94)                    (132)               -             -           (226)            338             338 
      Movement in 
       fair value 
       of investments            94                      412           (200)             -             306            704             204 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
                                  -                      280           (200)             -              80          1,042             542 
                       ------------  -----------------------  --------------  ------------  --------------  -------------  -------------- 
 
 

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 28 February 
  2022 
 Equity investments      2,989         -       243     3,232 
                      --------  --------  --------  -------- 
 Total                   2,989         -       243     3,232 
                      --------  --------  --------  -------- 
 At 31 August 2021 
 Equity investments      2,655         -       443     3,098 
                      --------  --------  --------  -------- 
 Total                   2,655         -       443     3,098 
                      --------  --------  --------  -------- 
 At 28 February 
  2021 
 Equity investments      2,164         -       434     2,598 
                      --------  --------  --------  -------- 
 Total                   2,164         -       434     2,598 
                      --------  --------  --------  -------- 
 

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. Partial repayments were made on 11 May 2020 of GBP280,000, on 2 March 2021 of GBP220,000 and on 7 February 2022 of GBP50,000. At the period end a balance of GBP50,000 was outstanding. The loan is secured on the assets of the Company and is repayable on demand.

On 16 September 2021, the Company entered in to a GBP165,000 unsecured interest free loan agreement with Chelverton Asset Management Limited. At the period end a balance of GBP165,000 was outstanding.

   6 Net   asset   value 

The basic net asset value per Ordinary share is based on net assets of GBP3,168,000 (31 August 2021: GBP3,146,000; 28 February 2021: GBP2,708,000) and on 5,460,301 Ordinary shares (31 August 2021: 5,460,301; 28 February 2021: 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 28 February 2022, there was GBPnil (31 August 2021: GBPnil; 28 February 2021: GBPnil) payable to the Investment Manager.

As stated in note 5, on 16 September 2021, the Company entered in to a GBP165,000 unsecured interest free loan agreement with Chelverton Asset Management Limited. At the period end a balance of GBP165,000 was outstanding.

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

 
                                        Percentage of 
                Ordinary shares       Ordinary shares 
                           held                  held 
                       GBP' 000                     % 
K J Allen                     1                     1 
D A Horner*               55.25                 55.25 
I P Martin                    2                     2 
 
* Director and connected persons 
 total holdings. 
 

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 02989519 

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April 14, 2022 10:12 ET (14:12 GMT)

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