Company Registered Number: 2933559
ATHELNEY TRUST PLC
ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2003
ATHELNEY TRUST PLC
CONTENTS
Chairman's Statement
Investment and Portfolio Analysis
Report of the Directors
Report of the Auditors
Statement of Total Return
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
Officers and Financial Advisors
Notice of Annual General Meeting
Page
1 - 3
4 - 5
6 - 7
8
9
10
11
12 - 19
20
21
ATHELNEY TRUST PLC
1
2 Queen Anne's Gate Buildings, Dartmouth Street, LONDON, SW1H 9BP
Telephone: 020 7222 8989
CHAIRMAN'S STATEMENT
I have pleasure in enclosing the results for the twelve months to 31 December 2003. The key points are
as follows:-
• Audited Net Asset Value ("NAV") is 110.9p per share (31 December 2002 : 83.2p),
a rise of 33.3 per cent.
• Gross Revenue rose by 68.0 per cent to £101,345 (31 December 2002: £60,328).
• On a like-for-like basis revenue was actually up by 10.4 per cent and dividend income
rose by 10.6 per cent.
• Revenue return per ordinary share was 3.4p, an increase of 161.5 per cent
( 31 December 2002: 1.3p).
• Recommended dividend for the year 1.8p per share (2002: 1.7p).
The Market
By any standards, 2003 was a good year for Athelney - except, that is, for the first 11 weeks or so. The
NAV started the year at 83.2p, fell to 79.4p at 28 February but recovered strongly to 92.2p at 30 June
and 110.9p at 31 December.
As I described in the Interim Report to 30 June, some of the rise can be attributed to the so-called
Baghdad Bounce, since, at that time, many investors thought that the conflict would be short-lived -
now, of course, we know better. Elsewhere, interest rates remained low or very low by historical
standards as did inflation, yet economic growth was very strong in the U.S. whereas we trundled along
at just over 2% and the eurozone still struggled.
At home, there were no real surprises in the Pre-Budget Report with public sector net borrowing
requirement (PSNB) raised by £10 bn to £37 bn in 2003/4 and £38 bn in 2004/5. Over the next five
years, borrowing is now expected to be £152 bn because of lower Income Tax, NI and Corporation Tax
receipts. Over the last seven years public spending has increased by 25% in real terms and up to 40% by
2009. By any standards, that is a vast amount of money and represents a huge gamble by the Labour
Government.
Yet the signs and portents are not good: a huge increase in public sector employment without any
improvement in productivity. Over the past five years, public sector employment has risen by almost
10% to 5.2 million, public sector pay is rising by 8% per annum and inflation is running at six times the
level of the private sector. For how long can this extraordinary state of affairs be allowed to continue?
Corporate activity has had a modestly beneficial effect on Athelney's NAV in 2003 with Reed Executive
and Amalgamated Metal being taken over at a handsome profit to book value, although in the case of
the latter a substantial part of the proceeds was received in the form of a special dividend.
ATHELNEY TRUST PLC
CHAIRMAN'S STATEMENT
(CONTINUED)
2
Results
Gross revenue rose by 68% to £101,345 in 2003, which figure certainly overstates the actual position in
that special dividends were received from Gibbs & Dandy (£3,000), Amalgamated Metal (£30,756 see
above) and T Clarke (£1,000). Taking all these factors into account gross revenue moved ahead by a
satisfactory 10.4 % which, when coupled with the 33.3% rise in NAV, points to what the Board believes
is a highly positive overall outcome for the year.
The growth in dividend income is illustrated by the following table:-
Companies paying dividends
Companies sold (therefore no true comparison)
Companies purchased (therefore no true comparison)
Increased total dividend in the calendar year
Reduced total dividend in the calendar year
No change in dividend
Number
62
8
5
33
7
9
Portfolio Review
During 2003, new purchases were made of the following: James Beattie, Park Group, Rok Property
Solutions, Secure Banking Trust Group, Vp, Alliance Pharma, Cardpoint, Cobra Bio-Manufacturing,
Collins & Hayes, Ideal Shopping Direct, Oasis Healthcare, Patientline and a further 11 existing
holdings were increased in size.
Plasmon , Radstone Technology , Intelek , NBA Quantum , Estates & Agency , CRC Group , Alphameric ,
Gowrings , Delcam , MTL Instruments , Photo-scan , James Cropper , Private & Commercial Finance ,
Springwood , Ideal Shopping Direct and Dicom Group have all been sold. Several other shares were
top-sliced.
Dividend
The Board has recommended an increased dividend of 1.8p (2002: 1.7p) for 2003, which compares with
the 1.0p paid for Athelney's first full year of 1995.
Newspapers
As from January 2004, the share price of Athelney has been listed daily in the Financial Times and
Times newspapers.
ATHELNEY TRUST PLC
CHAIRMAN'S STATEMENT
(CONTINUED)
3
Update
The unaudited NAV at 29 February 2004 was 120.7p per share. Unfortunately, the share price at the
same date was 80.5p and thus the discount to NAV was an unflattering 33.3 %.
Outlook
The Board believes strongly in the future of small, well-managed businesses such as are held in the
Athelney portfolio and that the shares of such companies will provide a profitable return to their
shareholders in the years ahead. Nevertheless, it is true that blue-chips have substantially
underperformed small caps in the last twelve months or so. It seems likely, then, that we will undergo a
process of catching up whereby small companies' shares do little or nothing and blue-chips perform the
better. After this process is complete, then the market looks likely to move ahead again on a broad front.
Hugo Deschampsneufs
Chairman
5 April 2004
ATHELNEY TRUST PLC
INVESTMENT AND PORTFOLIO ANALYSIS AT 31 DECEMBER 2003
SECTOR
STOCK
HOLDING
VALUE (£)
£
%
SECTOR
4
Construction & Building Materials
Distributors
Diversified Industrials
General Retail
Healthcare
Household Goods & Textiles
Insurance
Leisure, Entertainment & Hotels
Media & Photography
Pharmaceutical
Real Estate
Speciality & Other Finance
Support Services
Technology, Media, Telecoms
Transport
Clarke (T)
Galliford Try
Gibbs & Dandy "A"
Latham (James)
VP Group
N.W.F. Group
Wynnstay Group
Goodwin
Severfield-Rowen
Slingsby (H.C. )
Beattie, James
Flying Brands
Ideal Shopping Direct
Mallett
SCS Upholstery
Stanley Gibbons
Wyevale Garden Centres
Oasis Healthcare
Patientline
Reed Health Group
Collins & Hayes
Personal Group Holdings
Enterprise Inns
Merrydown
Shepherd Neame "A"
CA Coutts Holdings
International Greetings
Alliance Pharma
Cobra Bio-Manufacturing
Mountview Estates
Rok Property Solutions
Unite Group
Broadcastle
Camellia
Cardpoint
IFX Group
Park Group
S & U
Secure Trust Banking Group
Wintrust
Christie Group
Dawson Holdings
Enterprise
Fountains
Genus
Landround
Penna Consulting
Universe Group
Waterman Partnership Holdings
Watermark Group
WSP Group
ICM Computer Group
Pennant International
Air Partner
Braemar Seascope Group
Clarkson
Clyde Marine
Fisher (James)
10,000
85,000
10,000
4,000
17,000
13,000
7,500
17,000
6,500
4,000
17,000
14,000
30,000
12,000
8,000
120,000
20,000
75,000
34,000
40,000
60,000
22,000
7,000
47,000
8,930
26,000
18,000
100,000
15,000
1,925
10,000
10,000
40,000
1,631
30,000
13,300
80,000
10,000
7,500
6,000
25,000
34,000
16,000
20,000
15,000
5,000
16,000
110,000
40,000
25,000
33,000
7,500
116,000
8,500
20,000
9,600
9,520
23,400
58,750
35,275
37,750
16,200
24,225
57,200
45,375
41,650
22,913
24,400
22,525
20,510
11,250
29,580
18,560
48,000
70,500
17,250
37,570
38,600
19,500
37,180
70,980
44,885
60,724
26,000
52,920
20,500
20,775
65,450
29,500
17,950
33,600
70,949
30,300
15,827
21,200
55,000
33,188
29,250
17,250
52,190
44,560
25,200
30,450
20,500
21,040
28,050
27,000
38,125
65,174
17,813
19,140
34,850
47,600
48,240
16,184
61,658
172,200
8.40%
102,575
5.01%
88,963
4.34%
220,925
10.78%
93,420
19,500
37,180
4.56%
0.95%
1.81%
176,589
8.63%
78,920
3.85%
41,275
2.01%
112,900
5.51%
289,314
14.13%
369,539
18.04%
36,953
1.80%
208,532
10.18%
ATHELNEY TRUST PLC
INVESTMENT AND PORTFOLIO ANALYSIS AT 31 DECEMBER 2003
( CONTINUED)
Portfolio Value
Net Current Assets
Deferred tax
TOTAL VALUE
Shares in issue
Audited NAV
£
2,048,785
£
114,524
£
(163,800)
£
1,999,509
1,802,802
110.9p
5
100.00%
Portfolio
by Sectors
18.04%
10.18%
8.40%
5.01%
1.80%
4.34%
10.78%
4.56%
0.95%
1.81%
8.63%
Construction & Building Materials
Distributors
Diversified Industrials
General Retail
Healthcare
Household Goods & Textiles
Insurance
Leisure, Entertainment & Hotels
Media & Photography
Pharmaceutical
Real Estate
Speciality & Other Finance
Support Services
Technology, Media, Telecoms
Transport
FULL
AIM
OFEX
OFEX
6%
14.13%
5.51%
2.01%
3.85%
Portfolio
by Listing
AIM
27%
FULL
67%
REPORT OF THE DIRECTORS OF
ATHELNEY TRUST PLC
6
The directors present their report and audited financial statements of the Company for the year ended
31 December 2003.
Principal activity and business review
The principal activity of the Company is that of an investment company. The investment objectives of
the Company are to achieve long term capital growth while at the same time producing a progressive
income return.
Investments made by the Company are primarily in the equity securities of both unquoted and quoted
UK companies, including smaller companies with a market capitalisation of below £50 million.
During the period, the Company followed the normal activities of an investment company. Details of
these are given in the Chairman's Statement on pages 1, 2 and 3.
Directors and their interests
The directors who held office during the year and their interest in the ordinary shares of the Company
are stated below:-
31 December 2003 31 December 2002
H.B. Deschampsneufs 129,575 122,575
R.G. Boyle 485,000 485,000
D.A. Horner 5,000 -
The above figures include a holding of 58,000 shares (2002 - 58,000) owned by a pension fund in
which R.G. Boyle and H.B. Deschampsneufs have an interest and 5,000 shares (2002 - Nil) owned by
a pension fund in which D.A.Horner has an interest.
Directors' responsibilities
The directors are required by the Companies Act 1985 to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the result for the year.
The directors consider that in preparing the financial statements the Company has used appropriate
accounting policies, consistently applied and supported by reasonable and prudent judgements and
estimates and confirm that all applicable accounting standards have been followed, subject to any
material departures disclosed and explained in the accounts. The financial statements have been
prepared on a going concern basis.
The directors are responsible for ensuring that the Company keeps proper accounting records which
disclose, with reasonable accuracy at any time, the financial position of the company and for ensuring
that
the financial statements comply with the Companies Act 1985. The directors also have
responsibility for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
REPORT OF THE DIRECTORS OF
ATHELNEY TRUST PLC
(CONTINUED)
7
Corporate governance
The Board continues to give careful consideration to the principles of corporate governance as set out
in the Combined Code appended to the Listing Rules issued by the Financial Services Authority.
However the Company is small and it is the opinion of the directors that not all the provisions of the
Code are relevant or desirable for a company of Athelney's size.
The Board meets regularly and has ultimate responsibility for the management of the Company,
although the Remuneration Committee makes recommendations to the Board relating to the
remuneration of the managing director and the non-executive directors.
The Audit Committee assists the Board in relation to matters concerning corporate governance and
financial reporting. Both Committees, currently comprising H.B. Deschampsneufs and D.A. Horner,
meet during the year as required, with the Audit Committee to include external auditors if appropriate.
Results and dividends
The return on ordinary activities before dividends for the year is £60,621 (2002: £24,107) as detailed
on page 9. It is recommended that a final dividend of 1.8p (2002: 1.7p) per share be paid. The retained
profit for the year of £28,171, after providing for payment of dividends, has been added to revenue
reserves.
Payment of suppliers
It is the Company's policy to obtain the best possible terms for all business and, therefore, there is no
consistent policy as to the terms used. The Company contracts the terms on which business will take
place throughout the year with its suppliers. There were no invoiced trade creditors outstanding at the
end of the year, the amounts shown as creditors in the balance sheet comprise expenses and proposed
dividends.
Auditors
In accordance with Section 385 of the Companies Act 1985, a resolution proposing that Clement Keys
be re-appointed as auditors of the Company will be put to the annual general meeting.
BY ORDER OF THE BOARD
J.M. Davies
Secretary
2 Queen Anne's Gate Buildings
Dartmouth Street
LONDON
SW1H 9BP 5 April 2004
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
8
ATHELNEY TRUST PLC
We have audited the financial statements of Athelney Trust plc for the year ended 31 December 2003, set out on
pages 9 to 19. These financial statements have been prepared under the historical cost convention as modified to
include fixed asset investments at valuation and the accounting policies set out on pages 12 and 13.
This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies
Act 1985. Our audit work has been undertaken so that we might state to the company's members those matters we are
required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by the law,
we do not accept responsibility to anyone other than the company and the company's members as a body, for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the statement of Directors' Responsibilities the company's directors are responsible for the
preparation of the financial statements in accordance with applicable law and United Kingdom Accounting
Standards.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements
and United Kingdom Auditing Standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly
prepared in accordance with the Companies Act 1985. We also report to you if,
in our opinion, the Directors'
Report is not consistent with the financial statements, if the company has not kept proper accounting records, if we
have not received all the information and explanations we require for our audit, or if information specified by law
regarding directors' remuneration and transactions with the Company is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. This other information comprises only the Chairman's Statement and the Investment and
Portfolio Analysis. We consider the implications for our report if we become aware of any apparent misstatements or
material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices
Board. An audit includes an examination, on a test basis, of evidence relevant to the amounts and disclosures in the
It also includes an assessment of the significant estimates and judgements made by the
financial statements.
directors in the preparation of the financial statements and of whether the accounting policies are appropriate to the
company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company as at 31
December 2003 and of the revenue, total return and cash flows for the year then ended and have been properly
prepared in accordance with the provisions of the Companies Act 1985.
Clement Keys
Chartered Accountants
Registered Auditors
39 / 40 Calthorpe Road
Edgbaston
BIRMINGHAM
B15 1TS 5 April 2004
ATHELNEY TRUST PLC
STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2003
9
31 December 2003
31 December 2002
Note Revenue
£
Capital
£
Total
£
Revenue
£
Capital
£
Total
£
Profits / (losses) on investments
Income
Investment management expenses
Other expenses
Return on ordinary
activities before taxation
8
2
3
3
-
584,517
584,517
-
(275,430)
(275,430)
101,345
-
101,345
60,328
-
60,328
(11,576)
(11,576)
(23,152)
(10,868)
(10,869)
(21,737)
(38,003)
-
(38,003)
(33,532)
-
(33,532)
51,766
572,941
624,707
15,928
(286,299)
(270,371)
Taxation
5
8,855
(101,616)
(92,761)
8,179
63,485
71,664
Return on ordinary
activities after taxation
60,621
471,325
531,946
24,107
(222,814)
(198,707)
Dividend
7
(32,450)
-
(32,450)
(30,648)
-
(30,648)
Transfer to / (from) reserves
28,171
471,325
499,496
(6,541)
(222,814)
(229,355)
Return per ordinary share
6
3.4p
26.1p
29.5p
1.3p
(12.3)p
(11.0)p
Dividend per ordinary share
Final dividend
1.8p
1.7p
The revenue column of this statement is the profit and loss account for the Company.
All revenue and capital items in the above statement derive from continuing operations.
No operations were acquired or discontinued during the above financial years.
A statement of movements of reserves is given in note 13.
There have been no recognised gains or losses, other than the results for the financial years shown above.
The notes on pages 12 to 19 form part of these financial statements.
ATHELNEY TRUST PLC
BALANCE SHEET AS AT 31 DECEMBER 2003
10
Fixed assets
Investments
Current assets
Debtors
Cash at bank and in hand
Note
2003
£
2002
£
8
2,048,785
1,497,461
9
87,392
74,593
161,985
54,241
60,144
114,385
(40,833)
73,552
Creditors: amounts falling due within one year
10
(47,461)
Net current assets
114,524
Total assets less current liabilities
2,163,309
1,571,013
Provisions for liabilities and charges
11
(163,800)
(71,000)
Net assets
1,999,509
1,500,013
Capital and reserves
Called up share capital
Share premium account
Other reserves - non distributable
Capital reserve - realised
Capital reserve - unrealised
Revenue reserve
Shareholders' funds - all equity
12
13
13
13
13
14
450,700
405,605
311,754
781,787
49,663
450,700
405,605
248,817
373,399
21,492
1,999,509
1,500,013
Net Asset Value per share
110.9p
83.2p
Approved by the board of directors on 5 April 2004.
………………………………..
R.G.Boyle
The notes on pages 12 to 19 form part of these financial statements.
ATHELNEY TRUST PLC
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2003
11
Net cash inflow / (outflow) from
operating activities
Servicing of finance
Dividends paid
2003
2002
£
£
£
£
45,471
(487)
(30,648)
(30,648)
Net cash (outflow) from servicing of finance
(30,648)
(30,648)
Taxation
Corporation tax paid
Investing activities
Purchases of investments
Sales of investments
(373)
(8,009)
(385,319)
385,318
(359,428)
346,259
Net cash (outflow) from investing
activities
Increase / (decrease) in cash in the year
Reconciliation of operating net revenue to
net cash inflow / (outflow) from operating activities
Revenue on ordinary activities before taxation
Decrease in debtors
Increase / (decrease) in creditors
Management expenses charged to capital
Analysis of net debt
Cash at bank and in hand
(1)
14,449
£
51,766
43
5,238
(11,576)
45,471
2002
£
60,144
(13,169)
(52,313)
£
15,928
15
(5,561)
(10,869)
(487)
Cashflow
£
14,449
2003
£
74,593
The notes on pages 12 to 19 form part of these financial statements.
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
12
1. Accounting policies
1.1 Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention modified to include fixed asset
investments at valuation.
The financial statements are prepared in accordance with applicable accounting standards and, unless
otherwise stated, the provisions of the Statement of Recommended Practice in 'Financial Statements of
Investment Trust Companies' (SORP) currently in effect.
1.2 Income
Income from investments including taxes deducted at source is recognised as income on the date the
dividend is due for payment. UK dividend income is reported net of tax credits in accordance with
Financial Reporting Standard 16 'Current Tax'. Interest is dealt with on an accruals basis.
1.3 Expenses
Expenses (including VAT) and interest payable are dealt with on an accruals basis and charged through
the Revenue Account.
1.4 Investment management costs
Investment management costs have been allocated 50% to revenue and 50% to capital,
in line with the
Board's expected long term split of returns, in the form of income and capital gains respectively, from the
investment portfolio.
1.5 Investments
Listed investments comprise those listed on the London Stock Exchange. Profits and losses on sales of
investments are taken to realised capital reserve. Any unrealised appreciation or depreciation is taken to
unrealised capital reserve.
The Company's investments have been valued according to the following rules:-
(i) Where bid and offer prices are quoted by a market maker in such securities
on the valuation date, investments have been valued on the basis of the middle market price.
(ii) Where no spread is available, investments have been valued on the basis of the average
of the dealing prices recorded by a market maker for such securities on the valuation
date or, in the absence of any dealings on that date, at the average of such dealing prices
on the latest practicable day prior to the valuation date.
1.6 Taxation
The tax effect of different items of income and expenses is allocated between capital and revenue on the
same basis as the particular item to which it relates, using the Company's effective rate of tax for the year.
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
13
1. Accounting policies (continued)
1.7 Deferred taxation
Deferred taxation is provided in respect of all future obligations to pay additional
tax arising as a result of past events. Tax is provided at the latest known rates on all
timing differences. Deferred tax assets and liabilities are not discounted.
1.8 Capital reserves
Capital reserve- Realised
Gains and losses on realisations of fixed asset investments are dealt with in this reserve.
Capital reserve- Unrealised
Increases and decreases in the valuations of fixed asset investments are dealt with in
this reserve.
2. Income
Income from investments
UK dividend income
Foreign dividends
Other income
Bank interest
Other interest
Total income
Income from investments
UK listed investments
AIM investments
Other investments
2003
£
99,338
-
99,338
2,007
-
101,345
£
52,116
12,293
34,929
99,338
2002
£
58,416
-
58,416
1,900
12
60,328
£
42,159
11,039
5,218
58,416
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
14
3. Return on ordinary activities before taxation
The following amounts (inclusive of VAT) are included
within management and other expenses:-
2003
£
2002
£
Directors' remuneration:-
- Services as a director
- Otherwise in connection with management
8,000
20,000
7,997
20,000
Auditors' remuneration:-
Audit services
- Statutory audit
- audit related regulatory reporting
Other services
- accounts production and distribution
4. Employees
The only employees during the year were the directors.
Costs in respect of these directors:-
Wages and salaries
Social security costs
6,169
476
3,349
2003
£
20,000
1,930
21,930
5,993
774
509
2002
£
20,000
1,821
21,821
5. Taxation
2003
2002
Revenue Capital
Total Revenue Capital
Total
(i) The tax charge for the year
is based on the return for the
year
Corporation tax
Tax relief on management expenses
charged to income
Adjustment in respect of previous
years
Deferred taxation
£
-
(8,855)
£
-
8,855
£
-
-
£
-
£
£
412
412
(8,179)
8,179
-
-
-
(39)
92,800
(8,855)
101,616
(39)
92,800
92,761
-
-
(76)
(72,000)
(76)
(72,000)
(8,179)
(63,485)
(71,664)
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
15
5. Taxation (continued)
(ii) Factors affecting the tax charge for the year
The tax charge for the period is lower than the average small company rate of corporation tax
in the UK (19 per cent). The differences are explained below:
2003
£
2002
£
Total return on ordinary activities before tax
624,707
(270,371)
Total return on ordinary activities multiplied by the
average small company rate of corporation tax 19%
(2002: 19.25%)
118,694
(52,046)
Effects of:
UK dividend income not taxable
Revaluation of shares not (taxable) / tax deductible
Indexation relief for capital gains
Other
Current tax charge for the year
(18,874)
(95,226)
(4,779)
185
-
(11,245)
65,309
(1,628)
22
412
6. Return per ordinary share
The calculation of earnings per share has been performed in accordance with FRS 14
'Earnings per share'.
£
Revenue
2003
£
Capital
£
Total
£
Revenue
2002
£
Capital
£
Total
Attributable return (loss) on
ordinary activities after taxation
60,621
471,325 531,946
24,107
(222,814) (198,707)
Number of shares
1,802,802
1,802,802
Return per ordinary share
3.4p
26.1p
29.5p
1.3p
(12.3)p
(11.0)p
7. Dividend
Final proposed dividend of 1.8p (2002 -1.7p) per share
2003
£
32,450
2002
£
30,648
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
16
8. Investments
Movements in year
Valuation at beginning of year
Purchases at cost
Sales - proceeds
- realised gains on sales
Increase / (decrease) in unrealised appreciation
Valuation at end of year
Book cost at end of year
Unrealised appreciation at the end of the year
UK Listed
AIM
Unlisted
Gains / (losses) on investment
Realised gains on sales
Increase / (decrease) in unrealised appreciation
9. Debtors
Amounts falling due within one year:
Other debtors
2003
£
1,497,461
385,319
(418,512)
83,329
501,188
2,048,785
£
1,103,198
945,587
2,048,785
1,380,154
546,348
122,283
2,048,785
2003
£
83,329
501,188
584,517
2003
£
87,392
2002
£
1,798,443
242,123
(267,675)
63,840
(339,270)
1,497,461
£
1,053,062
444,399
1,497,461
1,001,895
340,979
154,587
1,497,461
2002
£
63,840
(339,270)
(275,430)
2002
£
54,241
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
17
10. Creditors: amounts falling due within one year
Corporation tax
Social security and other taxes
Other creditors
Proposed dividend
Accruals and deferred income
2003
£
-
3,776
1,077
32,450
10,158
47,461
11. Deferred taxation
2003
2002
Tax on unrealised gains net of losses
Provided
£
163,800
163,800
Not
Provided
£
Provided
£
-
-
71,000
71,000
Balance at beginning of year
Charge / (credit) to the capital element of the
Statement of Total Return
Balance at end of year
2003
£
71,000
92,800
163,800
2002
£
412
1,682
554
30,648
7,537
40,833
Not
Provided
£
-
-
2002
£
143,000
(72,000)
71,000
Tax is provided at the latest known rates on all taxable gains net of losses which would
arise if investments were sold at the market value included in the balance sheet at the end
of the financial year.
12. Called up share capital
Authorised
10,000,000 Ordinary shares of 25p each
Allotted, called up and fully paid
1,802,802 Ordinary shares of 25p each
2003
£
2002
£
2,500,000
2,500,000
£
£
450,700
450,700
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
18
13. Reserves
Share
premium
account
£
405,605
-
-
-
-
-
2003
Capital
Capital
reserve
reserve
realised unrealised
£
373,399
£
248,817
83,329
-
(11,576)
(8,816)
-
-
501,188
-
(92,800)
-
Revenue
reserve
£
21,492
-
-
-
-
28,171
Balance at beginning of year
Net gain on realisation of investments
Increase in unrealised appreciation
Management charge allocated to capita
Taxation
Retained profit for the year
Balance at end of year
405,605
311,754
781,787
49,663
14. Reconciliation of movement on shareholders' funds
Retained net revenue for the year after taxation
Dividend
Total recognised gains / (losses) for the year
Shareholders' funds at beginning of year
2003
£
60,621
(32,450)
28,171
471,325
499,496
1,500,013
2002
£
24,107
(30,648)
(6,541)
(222,814)
(229,355)
1,729,368
Shareholders' funds at end of year
1,999,509
1,500,013
ATHELNEY TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2003
19
15. Risk management, financial assets and liabilities
The following information is given in accordance with Financial Reporting Standard 13.
Risk management
The major risks associated with the Company are market and liquidity risk. The Company
has established a framework for managing these risks. The directors have guidelines
for the management of investments and financial instruments.
Market risk arises from changes in interest rates, valuations awarded to equities, movements
in prices and the liquidity of financial instruments.
The Company's portfolio is invested in UK securities.
Financial assets and liabilities
The Company's financial instruments comprise equity investments, cash balances and
debtors and creditors that arise directly from its operations, for example, in respect of
sales and purchases awaiting settlement. Short term debtors and creditors are excluded
from disclosure as allowed by FRS 13.
Fixed asset investments (see note 8) are valued at middle market prices which equate
to their fair values. The fair values of all other assets and liabilities are represented by
their carrying values in the balance sheet.
20
ATHELNEY TRUST PLC
OFFICERS AND FINANCIAL ADVISORS
Directors:
Secretary:
Registered Office:
Nominated Adviser:
Nominated Broker:
Auditor:
Banker:
Registrar:
H.B. Deschampsneufs (Chairman)
R.G. Boyle
D.A. Horner
J.M. Davies
9 Limes Road
Beckenham
Kent, BR3 6NS
2 Queen Anne's Gate Buildings
Dartmouth Street
London, SW1H 9BP
Noble & Company Limited
76 George Street
Edinburgh, EH2 3BU
Spiers & Jeffrey Limited
36 Renfield Street
Glasgow, G2 1NA
Clement Keys
39 /40 Calthorpe Road
Edgbaston
Birmingham, B15 1TS
The Royal Bank of Scotland plc
London City Office
62/63 Threadneedle Street
London City Office, EC2R 8LA
Park Circus Registrars Limited
2nd Floor
144 West George Street
Glasgow, G2 2HG
Company Number:
2933559
ATHELNEY TRUST PLC
NOTICE OF ANNUAL GENERAL MEETING
21
NOTICE IS HEREBY GIVEN that the tenth Annual General Meeting of the Company
will be held at 2 Queen Anne's Gate Buildings, Dartmouth Street, London SW1H 9BP on
Wednesday 12 May 2004 at 4.30 p.m. for the following purposes:
As Ordinary Business
1. To receive and adopt the Company's Accounts and the Reports of the Directors
and the Auditors for the year ended 31 December 2003.
2. To declare a final dividend of 1.8p per ordinary share. It is intended that dividend
cheques in respect of the final dividend will be posted on Monday 17 May 2004
to all shareholders on the register of members at close of business on Friday 16 April
2004.
3. To approve the remuneration of the Directors
4. To re-elect Mr D.A.Horner as a Director of the Company.
5. To re-appoint Clement Keys as Auditors and to authorise the Directors to fix
their remuneration.
By Order of the Board
J.M. Davies
Secretary
5 April 2004
Registered Office: 2 Queen Anne's Gate Buildings, Dartmouth Street, London, SW1H 9BP
NOTES
(i)
his/her stead. A proxy need not be a member of the Company. A form of proxy is enclosed with this
Notice for use at the Meeting. To be valid, completed forms of proxy (together with any Power of
Attorney or other authority under which it is executed or duly certified copy of any such Power or
authority) must be deposited at the Company's Registered Office not less than 48 hours before the time
fixed for the Meeting.
Completion and return of a form of proxy will not prevent the member from attending and voting at the
Meeting in person.
(ii) The register of Directors' interests kept in accordance with Section 325 of the Companies Act 1985 and
copies of Directors' service contracts will be available for inspection during normal business hours at the
Company's Registered Office from the date of this Notice until the date of the Meeting.