Chelverton Uk Dividend Share Discussion Threads

[skinny] 27/11/2017 07:49

Placing, Intermediaries Offer and Offer for Subscription of C Shares

and

Issue of ZDP Shares in connection with the recommended proposals for the reconstruction and winding-up of Chelverton Small Companies ZDP PLC and Placing of ZDP Shares

and

Placing Programme of Ordinary Shares and ZDP Shares

Publication of a Prospectus


Further to the announcement on 6 November 2017, the Company announces that it has published a prospectus (the "Prospectus") in relation to:

· an offer of C Shares comprising a maximum of 75 million C Shares to be issued at the Issue Price of 100 pence per share through a placing (the "Placing"), Intermediaries Offer and Offer for Subscription (together, the "Issue");

· an issue of up to approximately 30 million ZDP Shares pursuant to a rollover offer ("Rollover") and ZDP Placing ("ZDP Placing") which will involve the liquidation of Existing ZDPCo and issuance of new 2025 ZDP Shares ("ZDP Shares") by SDV 2025 ZDP PLC ("2025 ZDPCo") (together, the "ZDP Issue"), a wholly owned subsidiary of the Company (the "Scheme"). 2025 ZDPCo will issue ZDP Shares at the ZDP Issue Price of 100 pence per ZDP Share; and

· a Placing Programme of up to 30 million Ordinary Shares (the "Placing Programme") and 7.5 million ZDP Shares (the "ZDP Placing Programme").


The ZDP Shares will have a life of 7.3 years and will have a Final Capital Entitlement of 133.18 pence per ZDP Share on 30 April 2025, equivalent to a gross redemption yield of 4 per cent with an initial target cover ratio of circa 3.75x, subject to the level of take up of the Issue and rollover elections received pursuant to the Scheme.

The C Shares will convert into Ordinary Shares on the basis of the Conversion Ratio calculated at the Calculation Date. Details of the terms and timing of conversion can be found in the Prospectus. The existing investment objective and policy will remain unchanged and the Company intends to use the Net Proceeds of the Issue to add to existing holdings and to make new investments.

The Company has also published a circular (the "Company Circular") today convening a General Meeting to propose resolutions to grant the directors the power to allot the C Shares pursuant the Issue, disapply existing statutory rights of pre-emption in relation to the Issue and Placing Programme, grant the power to allot New Ordinary Shares pursuant to the Placing Programme, approve amendment to the Existing Articles, grant the Directors the power to allot Ordinary Shares, and renewal of the authority granted to the Company to buy back its Ordinary Shares in the market.

Existing ZDPCo has published a circular ("Existing ZDPCo Circular") today convening general meetings of Existing ZDPCo to approve the Scheme and to place Existing ZDPCo into members' voluntary liquidation.

The Company will provide a further update in due course, as appropriate.

Publication of documents

The Prospectus and Circulars will shortly be available for inspection at the National Storage Mechanism ( and also on the Company's website ( subject to applicable securities laws, and are available for viewing at the Company's registered office at Springfield Lodge, Colchester Road, Springfield, Chelmsford, CM2 5PW.


Expected timetable

General Meeting of the Company
9.00 a.m. on 12 December 2017
First General meeting of Existing ZDPCo
9.15 a.m. on 12 December 2017
Latest time and date for commitments under the Placing
12.00 p.m. on 15 December 2017
Announcement of the result of ZDP Shares to be issued pursuant to the Scheme
8.00 a.m. on 19 December 2017
Latest time and date for receipt of completed applications from Intermediaries in respect of the Intermediaries Offer
11.00 a.m. on 21 December 2017
Latest time and date for receipt of completed Application Forms in respect of the Offer for Subscription
11.00 a.m. on 21 December 2017
Announcement of the results of the Placing, Intermediaries Offer and Offer for Subscription and the number of C Shares to be issued
8.00 a.m. on 22 December 2017

Announcement of the number of ZDP Shares to be issued pursuant to the ZDP Placing
8.00am on 5 January 2017
Effective Date for the Scheme
8 January 2018
Initial Admission and Initial ZDP Admission and dealings in C Shares and ZDP Shares issued in uncertificated form commence
8.00am on 8 January 2018
CREST accounts credited with uncertificated C Shares and uncertificated ZDP Shares
8 January 2018
Definitive share certificates in respect of C Shares and ZDP Shares dispatched by post in the week commencing
15 January 2018


Placing Programme and ZDP Placing Programme opens
9 January 2018
Latest date for issuing Ordinary Shares and ZDP shares under the Placing Programme and the ZDP Placing Programme respectively
23 November 2018


(i) All times and/or dates in the Expected Timetable set out above and in the Prospectus generally may be subject to adjustment
(ii) Any changes to the Expected Timetable set out above will be notified by the Company through a Regulatory Information Service.
(iii) All references to times above and in the Prospectus are to London time.

[carterit] 07/11/2017 17:36

These have done amazingly well for me (up 130% since i first invested),and i have auto reinvestment of dividends. quepassa mentioned HRI,but i like my investment trusts to pay a dividend,which i auto reinvest and have done over the last 6 years with the trusts in my portfolio. I aim for round about 4%,and have about 20 trusts now. I do have some ASCI as well. A couple pay lower than this,but several are paying more. I just want to be able to buy and hold and not have to worry about the cyclical ups and downs which hit the markets from time to time.With decent dividend paying stocks,if there is a pull back at any time,at least you have the benefit of having mor of them over a period of time. Over the last 6 years,i have probably just about trebled the value of the trusts i hold,and the number of shres increased by about 30%,without actually having to actively go out and buy any more.

[skinny] 06/11/2017 07:57

As previously announced by the Board on 13 January 2017, the Directors have been considering the options for a refinancing of the Zero Dividend Preference shares, which are due for final repayment on 8 January 2018. In light of the Company’s strong and sustained track record as well as the availability of attractive investments, the Board believes that it is an appropriate point to seek to increase the size of the Company and raise additional capital. Accordingly, the Company is proposing an issue of C shares through a placing, intermediaries offer and offer for subscription of C Shares as well as an issue and placing of new ZDP Shares in connection with recommended proposals for the reconstruction and winding-up of Existing ZDP Co (collectively, the “Issue”).

The Company is seeking to raise up to £75 million new Ordinary shares, subject to market conditions and there being sufficient investor appetite for the C shares on agreeable terms. In addition, the Company will seek to issue c. £30 million of new ZDPs, on a term of 7.3 years with a gross redemption yield of 4.00 per cent. with an initial target cover ratio of circa 3.7x, subject to the level of rollover elections received. The existing investment objective and policy will remain unchanged and the Company intends to use the Net Proceeds of the Issue to add to existing holdings and to make new investments.

The Company will provide a further update in due course, as appropriate.

[skinny] 01/11/2017 14:57

The Company announces:

Total Assets (including unaudited revenue reserves at 31/10/2017) of £60.08m

Net Assets (including unaudited revenue reserves at 31/10/2017) of £47.43m

The Net Asset Value (NAV) at 31/10/2017 was:

Number of shares in issue:
Per Ordinary share (bid price) - including unaudited current period revenue* 266.84p 17,775,000
Per Ordinary share (bid price) - excluding current period revenue* 262.52p
Ordinary share price 266.50p

Premium / (Discount) to NAV (0.13)%
Ordinary shares have an undated life
ZDP share 135.30p 9,349,000
ZDP share price 137.00p
Premium to NAV 1.25%
ZDP shares are held in a subsidiary and have a redemption date of 08/01/2018

*Current period revenue covers the period 01/05/2016 to 31/10/2017

Name of company % of portfolio
1 Diversified Gas & Oil Plc Ordinary 1p 2.78
2 McColl's Retail Group Plc Ordinary 0.1p 2.39
3 Jarvis Securities Plc Ordinary 1p 2.35
4 StatPro Group Plc Ordinary 1p 2.29
5 Acal Plc Ordinary 5p 2.12
6 Belvoir Lettings Plc Ordinary 2.11
7 Alumasc Group (The) Plc Ordinary 12.5p 2.06
8 Gattaca Plc Common GBp1 2.04
9 Galliford Try Plc Ordinary 50p 2.04
10 Personal Group Holdings Plc Ordinary 5p 2.03
11 Connect Group Plc Ordinary 5p 1.84
12 Amino Technologies Plc GBp 1 1.83
13 Braemar Shipping Services Plc GBp 10 1.80
14 Numis Corporation Plc Ordinary 5p 1.79
15 Curtis Banks Group Plc GBp0.5 1.78
16 Marston's Plc Ordinary 7.375p 1.78
17 Ramsdens Holdings Plc Ordinary 1.78
18 Brown (N) Group Ordinary 11.052p 1.76
19 De La Rue Plc Ordinary 44.868p 1.75
20 Mucklow (A&J) Group Plc REIT 25p 1.64

more.....

[quepassa] 18/10/2017 14:56

But don't forget to look at Herald Investment Trust which is at a vast discount and which has been recently performing fantastically. 800p to 1150p in a year and still set to run further
Major scope for further tightening of gaping discount.

also highly likely to enter FTSE250 soon.

[davebowler] 18/10/2017 14:39

Aberdeen Smaller Cos Income Trust NAV Undiluted Including Income 327.82p whereas the share price is 278p

[davebowler] 11/8/2017 12:14

SDV at 2% discount to NAV and ASCI at 20%, makes a compelling case for a swap.

[pjw956] 02/8/2017 20:30

brsc is well worth a look too... imho.

[davebowler] 02/8/2017 14:55

Winterfloods;
Aberdeen Smaller Companies Income is differentiated within the UK Small Cap sector by its fixed income portfolio, which broadly offsets its c.10% gearing and boosts income. The fund also has a relatively focused portfolio of 45 stocks, although it remains diversified with less than 30% invested in the top 10 holdings. Other than its stable-mate, Dunedin Smaller Companies (79%), the fund’s highest portfolio overlap with peers is just 16%. With the impending merger of Aberdeen AM and Standard Life it is worth noting that Aberdeen Smaller Companies Income and Standard Life UK Smaller Companies* are differentiated by their investment approaches, with the latter focusing on growth, and just a 10% overlap between the two portfolios.

· Focus on quality businesses has delivered outperformance – The managers, Jonathan Allison and Ian Hewett, aim to invest in companies with strong management teams and balance sheets that are generating high returns on capital. The fund’s NAV has outperformed its benchmark, the FTSE Small Cap ex Investment Companies Index, over the last one, three and five years and has also outperformed the UK Small Cap peer group over the last three and five years. Perhaps more importantly, since Jonathan Allison and Ian Hewett took charge of the fund in March last year, the NAV has outperformed both the benchmark and the UK Small Cap peer group.

· Attractive yield – The fund has a historical dividend yield of 2.8%, based on the current share price, and was 1.07x covered by revenue in 2016. The yield, which is boosted by the fund’s allocation to fixed income, is at the higher end of the small cap peer group. Dividend growth has been above 3% in each of the last four financial years and the fund also benefits from a revenue reserve equivalent to 1.4x aggregate dividends in FY2016.

· Discount wider than peers – The fund’s discount is currently around 20%, which is at the wider end of the UK Small Cap peer group. It is broadly in line with its 12 month average, but over the period the discount has ranged between 17% and 25%. In June the differential in discount level between the fund and the UK Small Cap peer group reached its highest level in the last five years, and, although it has since narrowed, it still remains significant.





Winterflood View

Aberdeen Smaller Companies Income has a solid performance record, with outperformance of both its benchmark and peer group over the last five years. However, the focus on quality makes it likely that the fund would lag in rapidly rising markets. In terms of its market capitalisation the fund is at the smaller end of the peer group and so liquidity can be patchy. However, we believe that the 2.8% yield is attractive and the 20% discount offers value, both in absolute terms and also relative to the fund’s small cap peers. Given the relatively small size of the fund, performance is likely to be the key driver of any re-rating rather than share buybacks. It is also possible that there could be some discount tightening in the lead up to the fund’s next continuation vote, which is due in 2020 and is held every five years.

[quepassa] 01/8/2017 21:16

Got ahead of itself and was trading at par or even at a premium to NAV. Became "expensive".

Whereas HRI was behind with a massive discount of 18% which is now narrowing.


ALL IMO. DYOR.
QP

[pjw956] 01/8/2017 20:29

flat ...somewhat odd ... why so flat for so long

[quepassa] 26/7/2017 13:13

Whilst SDT flat, Herald Investment Trust up another 1.5% today.

ALL IMO> DYOR.
QP

[quepassa] 24/7/2017 15:54

24th May to 24th July 2017.



Share price comparisons:

Smaller Co's Div Trust 255p to 245p (-4%)

Herald Investment Trust 990p to 1070 (+8%)


ALL IMO. DYOR.
QP


(no doubt you'll find another nit-picking point in my post.)

[huttonr] 24/7/2017 15:28

QuePassa

Herald is probably rising due to the surge in price of IQE

- SDV (you quote SDT, but I assume that you mean SDV) doing well to remain flat while FTSE is down 80 points.

[quepassa] 24/7/2017 09:01

Herald picking up monentum.

SDT flat.


ALL IMO. DYOR.
QP

[davebowler] 21/7/2017 15:39

HSL is at a discount to NAV of 15% and ASCI is at a discount to NAV of 19%, whereas this is at a nil discount.


The Net Asset Value (NAV) at 14/07/2017 Ordinary share - including income 241.27p

[huttonr] 21/7/2017 15:13

Quepassa - I would like a reduction in the Herald discount as well, but considering the discount over the last 5 years, I see no real chance of it happening. The small cap trusts generally have done well (& better than Herald)over the last year or so, and discounts have narrowed but Herald does not pay a dividend and this, I think, is the main reason why Herald has remained where it is.

As to your point re money flowing into Europe - Herald has very little outside the UK & US - so why should this money affect it?

Publicity - Scottish Mortgage & Allianz make more noise and hence attract more attention so do better with their discounts.

Perhaps you would explain a little more why you think the discount will narrow quickly?

[quepassa] 21/7/2017 12:10

A poster from another thread wrote this:

"with a market cap of £736 million herald isn't far off making it into the ftse 250.

JP Morgan indian trust is ftse 250 with a market cap of 785... so it only seems like a matter of time until we get there - that may decrease the discount..."


Good point and further supportive evidence for a rapid and dramatic tightening of Discount to NAV.


ALL IMO. DYOR.
QP

[quepassa] 21/7/2017 09:33

I like this Trust a lot.

However, I have recently switched the majority of my holdings into Herald General Investment Trust (HRI) which is a much bigger Trust with approaching £1billion of assets and which is focused on the smaller cap Tech + Media sector with a good weighting in UK and North America and 10% Cash.

This Chelverton smaller cap trust trades at a PREMIUM nowadays ( having a few years ago been at a whopping 20% ++ Discount ).


For some reason which I cannot put my finger on - probably due to lack of profile and publicity and being off the radar- HRI still trades at a MASSIVE discount of 18% despite some excellent recent performance and a very good pedigree.

With money flowing fast into Europe and with a great track-record of having increased shareholder money 10x since inception combined with a low management fee of 1%, in my opinion HRI looks totally undervalued by the market, if not misunderstood and mispriced.

When I look at sector comparisons like SDT, Patience capital, Schroders' small cap funds, JPM smaller and even big-brother and Tech giant Scottish Mortgage, the discount on HRI looks totally out of whack with the rest of the market.

Additionally, HRI have a share buy-back program and the cash to support it.

For seekers of value and hunters of big discounts, it appears to me that at an inexplicable 18% discount-to-Nav that HRI has a great deal to offer. Personally, I see the discount ripe for very rapid compression.

Good Luck All.

ALL IMO. DYOR.
QP

[dr biotech] 14/7/2017 13:14

I've sold about 30% today - the share price is at a premium to NAV and thats normally shortlived. I'm also concerned at the general valuation of equities which I think is a bit stretched.

No concerns about the trust and will look to add should a discount appear - the average over the last year is about 5% and has often been 10% or more.

[skinny] 12/5/2017 13:22

Another new high @256.50p

[dr biotech] 11/5/2017 05:48

Smaller companies may be the way forward for me. My largest holding anywhere is now Marlboroughs micro cap fund and that has done really well. Over a 10 year timeframe (when hopefully I will retire) I am hoping it will average 10% or more. This will be another long term hold too.

[skinny] 10/5/2017 11:18

I agree - I bought in 2011 @99p and its been pretty painless.

[dr biotech] 10/5/2017 11:15

I'm up 50% here, not including the dividends. It's Ben one of my best investments over the last three years. Long may it continue

[skinny] 09/5/2017 15:54

The Company announces:
Total Assets (including unaudited revenue reserves at 05/05/2017) of £54.53m
Net Assets (including unaudited revenue reserves at 05/05/2017) of £42.24m

The Net Asset Value (NAV) at 05/05/2017 was:

Number of shares in issue: 16,800,000
Per Ordinary share (bid price) - including unauditedcurrent period revenue* 251.45p
Per Ordinary share (bid price) - excluding current period revenue* 244.71p
Ordinary share price 235.00p
Premium / (Discount) to NAV (6.54)%
Ordinary shares have an undated life
ZDP share 131.40p 9,349,000
ZDP share price 136.25p
Premium to NAV 3.69%
ZDP shares are held in a subsidiary and have a redemption date of 08/01/2018
*Current period revenue covers the period 01/05/2016 to 05/05/2017


Name of company % of portfolio
1 Curtis Banks Group Plc GBp0.5 2.37
2 StatPro Group Plc Ordinary 1p 2.31
3 Amino Technologies Plc GBp 1 2.29
4 Games Workshop Group Plc Ordinary 5p 2.25
5 Belvoir Lettings Plc Ordinary 2.20
6 McColl's Retail Group Plc Ordinary 0.1p 2.16
7 Acal Plc Ordinary 5p 2.12
8 Gattaca Plc Common GBp1 2.05
9 Alumasc Group (The) Plc Ordinary 12.5p 2.04
10 Braemar Shipping Services Plc GBp 10 2.01
11 Brown (N) Group Ordinary 11.052p 1.94
12 Connect Group Plc Ordinary 5p 1.91
13 Moss Bros Group Plc Ordinary 5p 1.90
14 Jarvis Securities Plc Ordinary 1p 1.87
15 Marston's Plc Ordinary 7.375p 1.85
16 Polar Capital Holdings Plc GBp 2.5 1.80
17 Galliford Try Plc Ordinary 50p 1.79
18 Numis Corporation Plc Ordinary 5p 1.78
19 Mucklow (A&J) Group Plc REIT 25p 1.76
20 Diversified Gas & Oil Plc Ordinary 1p 1.75