Chelverton Uk Dividend Share Discussion Threads

[aleman] 10/10/2011 12:25

The Net Asset Value (NAV) including unaudited current period revenue at
30 September 2011 was:

Per Ordinary share (bid price) 97.31p

Ordinary share price 91.62p

Discount to NAV (5.85)%

(NAV includes 1.16p accumulated income.)

[aleman] 29/9/2011 15:30

The Net Asset Value (NAV) including unaudited current period revenue at
23 September 2011 was:

Per Ordinary share (bid price) 96.36p

Ordinary share price 89.00p

Discount to NAV (7.64)%

( NAV includes 0.95p accumulated income.)

[solarno lopez] 26/8/2011 10:56

T Clarke's divi has been cut so lets be thankful for the spread of investments in SDV

[aleman] 26/8/2011 10:51

1st interim dividend up to 1.35p.

[aleman] 26/7/2011 20:19

The Net Asset Value (NAV) including unaudited current period revenue at 22 July
2011 was:

Per Ordinary share (bid price) 111.34p

Ordinary share price 103.50p

Discount to NAV (7.04)%

(NAV includes 1.43p accumulated income.)

[aleman] 19/7/2011 17:04

Okay. I'd always known that but never appreciated quite how much real revenue and accounting revenue could diverge from year to year (not helped by some minor issues trying to relate income account to cashflow statement).

The Net Asset Value (NAV) including unaudited current period revenue at
15 July 2011 was:

Per Ordinary share (bid price) 109.86p

Ordinary share price 104.12p

Discount to NAV (5.22)%


(NAV includes 1.36p accumulated income)

Accumulated income compares to 0.11p in the same week last year. The revenue trend seems to be getting even stronger as the difference was only 0.4p a month ago.

[lord gnome] 17/7/2011 20:55

Aleman - this trust openly states that it boosts income by charging some revenue expenses - e.g. a large percentage of the management fee against capital.

[topvest] 17/7/2011 19:59

Not seen the AR for 2011 yet, but investment management fees and finance costs were treated as 75% capital 25% revenue in the past. Often the case with investment trusts. Does mean some of the dividend is funded from capital, but ok provided it doesn't deplete capital too much. When you look at investment trusts and dividends its always worth looking at this, as it gives you a feel for how aggressive the dividend policy - this is on the more aggressive end!

[aleman] 17/7/2011 18:25

I think the key is "interest and expenses charged to the capital reserve" of £394k. Why should any interest be costed to capital? Surely that means some of our net income is being extracted from capital gain. It flatters the net income number but reduces the investment return. ALso, it reduces the amount the uncovered bit of the dividend reduces the revenue reserve by - that would be dropping much more quickly if the interest was paid from income. The tax position of getting more as dividend and less capital gain actually benefits me but it makes it harder to see what the underlying trend with the dividend is, making it harder to compare with ASCH. (He says, now scurrying off to reread their accounts.

I'd always thought these income trusts managed to pay unusually high dividends by selling options on their holdings but I never see evidence of that in accounts. I'm quite happy if they effectively topping up income out of capital slightly but I want to know just how much by.

[asmodeus] 17/7/2011 12:43

Don't forget - the Chairman was the Chancellor of the Exchequer!

[lord gnome] 17/7/2011 12:17

Thanks Aleman. For some reason I had missed that.

Net cash from operations is stated as 454k. I take this to mean investment income rather than changes in any capital invested in shares. At first glance it does indeed look as though investment income only meets half of the dividend cost.
However....
The statement of comprehensive income shows a net revenue return of £875k giving 5.38p per share.
The cost of last year's dividends is given as £999k with the shortfall being paid from accumulated revenue reserves of £1,383k (still more than a full year's dividends at the end of the year).

Although if the company has accumulated revenue reserves of£1,383k, why does it have an overdraft? I can only assume that the revenue reserve is also invested to generate more income, hence the overdraft.

I haven't a clue as to how all of this is reconciled, but then again, I am not an accountant. It does seem odd however and the more I stare at it trying to make sense of it the more confused I get. Help greatly appreciated.

[aleman] 16/7/2011 17:33

The report RNS is in the header from Thursday.

[lord gnome] 16/7/2011 13:19

As I haven't seen the report, I can't really comment. I would however hope that investment capital in the form of any cash balances from share trading would be accounted for and held separately from dividend income. Looking back through NAV announcements, we seem to have had plenty of income accruing from which to pay dividends, so it is a mystery to me. Perhaps we need to ask the company for an explanation.

[aleman] 15/7/2011 15:29

Report out. I can't square the higher accumulated income recently with the apparent drop to 50% cover of dividends in the cashflow report. Any suggestions? Does accumulated income include unspent capital gains on trading through the year?

[aleman] 13/7/2011 14:37

The Net Asset Value (NAV) including unaudited current period revenue at
8 July 2011 was:

Per Ordinary share (bid price) 111.87p

Ordinary share price 104.00p

Discount to NAV (7.03)%

(NAV includes 0.44p accumulated income. Accumulated income went to -0.08p after the ex-dividend last year but it was slighlty earlier. We still seem to be running about 0.4p ahead of last year.)

[skinny] 07/7/2011 09:33

Yes - a good move this morning. Thanks for this one Aleman.

[aleman] 07/7/2011 09:28

ASCH shares have been rising for a few days as well, although they are on nearly twice the discount.

[lord gnome] 07/7/2011 09:19

Sudden jump up on no trades whatsoever. WINS going on to the bid and then being leapfrogged by IPMS. I don't know what sparked it, but I like it.

[aleman] 06/7/2011 10:56

The Net Asset Value (NAV) including unaudited current period revenue at 30 June
2011 was:

Per Ordinary share (bid price) 111.41p

Ordinary share price 100.00p

Discount to NAV (10.24)%

(NAV includes 2.63p accumulated income.)

[aleman] 05/7/2011 12:35

ASCH hitting new NAV highs daily bodes well for here.

[aleman] 29/6/2011 12:45

Only down 1.25p now after a 2.3p ex-dividend. Been a good week for this one. Let's see if ASCH can match it now after annoucing their dividend today. With the last couple of days' market moves, the discount to NAV there must be nearly 20%, so I would expect that to rise a few pence as well.

I'm amazed how both of these have not closed discounts like other income trusts so that they continue to pay high yields when savings on the high street are still not showing much sign of increasing meagre rates any time soon. Many other income trusts are trading at a premium, as covered in a survey in the FT a couple of weeks back.

[lord gnome] 28/6/2011 22:00

That was nice. The share price has obligingly gone up by the amount of the divi, just before we go ex-div.

[aleman] 28/6/2011 16:50

The Net Asset Value (NAV) including unaudited current period revenue at 24 June
2011 was:

Per Ordinary share (bid price) 112.87p

Ordinary share price 98.50p

Discount to NAV (12.73)%

(NAV includes 2.55p accumulated income.)

[aleman] 27/6/2011 13:01

The Net Asset Value (NAV) including unaudited current period revenue at 17 June
2011 was:

Per Ordinary share (bid price) 112.83p

Ordinary share price 98.50p

Discount to NAV (12.70)%

(NAV includes 2.37p accumulated income.)

[lord gnome] 21/6/2011 17:33

That's the way I read things. Another small increase in the regular dividends next year - every little helps.