Athelney Trust plc
Annual Report
for the year ended December 2005
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 Advisers
Page
2 - 3
4 - 5
6 - 7
8
9
10
11
12 - 19
20
1
Athelney Trust plc
2 Queen Anne's Gate Buildings, Dartmouth Street, London, SW1H 9BP
Telephone: 020 7222 8989
CHAIRMAN'S STATEMENT
I have pleasure in enclosing the audited results for the twelve months to 31 December 2005. The salient points are as
follows:-
• Audited Net Asset Value ("NAV") is 157.7p per share (31 December 2004 : 136.9p{ as restated}),
a rise of 15.2 per cent.
• Gross Revenue increased by 8.1 per cent to £86,265 (31 December 2004: £79,822).
• On a like-for-like basis both revenue and dividend income rose by 14.8 per cent
• Revenue return per ordinary share was 2.7p, an increase of 12.5 per cent
( 31 December 2004: 2.4p).
• Recommended dividend for the year of 2.5p per share (2004: 2p).
The Market
Back in February 2003, the unaudited Athelney NAV was 79.4p, so between that date and 31 December 2005, the company
experienced a growth in value of fully 98.6 per cent. Not only that, but shareholders will have benefited from a total
increase in dividend of 38.9 per cent (2003 1.8p: 2004 2p: 2005 2.5p). And yet, particularly looking at the year recently
finished, there is a long list of problems and worries that markets apparently coped with pretty well. Take, for instance, UK
pension funds which may have sold £75bn of equities during the year because of FRS17 and IFRS. Even after that
avalanche of selling, 61per cent of the average UK pension fund consists of equities. It really is not too hard to imagine
that selling could actually increase in 2006. Overseas companies were undoubtedly massive buyers of UK equities in 2005,
but who is to say how long this buying spree is to continue?
Surely, relaxed world-wide monetary conditions must have had a good deal to do with strong equity markets over the past
three years. Following fifteen consecutive rises in interest rates in America and an unmistakable sign that the Bank of Japan
is to tighten up in the coming months from the current position of an overnight call rate of 0.001 per cent, conditions will be
a good deal tighter this year. Now this is quite important because hedge funds, amongst others, have been borrowing in
Yen to speculate in emerging markets such as the Middle East, South America and Russia. As interest rates rise in Japan,
so hedge funds will start to unwind speculative positions in these countries.
Here at home, things look quiet, and dare I say it, a little dull. GDP should rise by 2.1 per cent in 2006 and 2.5 per cent in
2007. Wages will probably go up by 3.5 per cent this year and consumer prices should rise by no more than 1.9 per cent
(i.e. 0.1 per cent below target) in 2006 and 2007.
No, most of the excitement is happening abroad. America ran an astonishing record current account deficit of $805bn in
2005. China’s industrial production was 16.2 per cent higher than a year ago and Russia’s trade surplus rose to $124bn. A
basket of commodities rose by nearly 19 per cent in Sterling terms with gold up by 24 per cent (in Dollars) and oil having
another good year at around $60 per barrel. What is not helping things is the increased interest being shown in commoditie
s
by institutions – since few have specialized knowledge of the subject, they tend to buy a basket rather than bet on individual
metals, so all commodities rise together. And with China’s GDP increasing by 9.9 per cent in 2005 and India’s by 7.6 per
cent, who is to say when commodity prices will return to lower levels?
Results
Gross Revenue rose by 8.1 per cent to £86,265 compared with the calendar year 2004. However, special dividends for 2005
amounted to just £2,900 (James Latham £1,200, Air Partner £1,700) whereas £7,200 was received from Stanley Gibbons in
the previous year. When due allowance is made for this, on a like-for-like basis, Gross Revenue actually rose by 14.8 per
cent, a most satisfactory result particularly when combined with the 15.2 per cent rise in NAV.
2
Athelney Trust plc
CHAIRMAN'S STATEMENT
(CONTINUED)
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
72
5
24
35
6
2
Corporate Activity
Cash takeovers were completed in respect of six holdings:
Countryside Properties; Bristol & West Investments; Merrydown; Broadcastle; James Beattie and Belhaven Group . In
relation to the offer by Vantis for Numerica , shares were taken rather than cash. At the time of writing, a cash bid for PD
Ports has just gone through, Wyevale remains under siege, an MBO is possible at Tenon Group. Lookers has rejected a
bid by Pendragon and Brandon Hire is to be bought by a larger competitor.
Portfolio Review
The following were purchased for the first time or were existing holdings which have been increased in size:
Belhaven Group; Blacks Leisure Group; Clinton Cards; Domestic & General; Goldshield Group; MSB International;
Phoenix IT; Treatt; Arbuthnot Banking Group; Belgravium Technologies; City Lofts; Group NBT; Idox; Jarvis Securities;
Nichols; RWS Holdings; Tenon Group; Urbium; Numerica Group.
ICM Computers; Patientline; Rok; Ultimate Leisure and Cardpoint have all been sold and Camellia again been top-sliced.
Dividend
The Board is pleased to recommend an increased annual dividend of 2.5p per ordinary share for the year ended 31
December 2005 (2004: 2p). This represents an increase of a full 25 per cent over the previous year.
Update
The unaudited NAV at the 28 February 2006 was 165.9p per share, which means that at the price of 127p on the same day
the shares stood at a discount of 23.4 per cent. It is disappointing to note the discount creeping back over the 20 per cent
mark again.
Outlook
Recent weakness in markets as far apart as Dubai and Reykjavik is the result of the Bank of Japan’s decision to tighten
monetary conditions for the first time in very many years. Is this a straw in the wind? Probably not, but it is a sign that we
must proceed more cautiously this year despite the market’s bright performance in January and February. Fifteen
consecutive interest rate rises in America, Europe following suit, despite problems in Italy and elsewhere, maverick nations
like Iran and North Korea wanting to flex their muscles and at home, the advent of the first Socialist government since the
Seventies, as and when Mr. Brown moves house. None of this is calculated to cheer but at least the housing market has
stabilized, UK interest rates should remain mostly unchanged throughout the year and inflation seems to be sleeping
soundly. On balance, another steady, decent year for small caps seems likely.
Hugo Deschampsneufs
Chairman
20 April 2006
3
Athelney Trust plc
INVESTMENT AND PORTFOLIO ANALYSIS AT 31 DECEMBER 2005
SECTOR
STOCK
HOLDING
VALUE (£)
£
%
SECTOR
Automobiles and Parts
Beverages
Construction & Building Materials
Diversified Industrials
Engineering Machinery
Food Processors
General Retail
Household Goods
Insurance
Leisure & Hotels
Media & Entertainment
Real Estate
Software & Computer Services
Speciality & Other Finance
Support Services
Pharmaceuticals
Transport
European Motor Holdings
Lookers
Nichols
Shepherd Neame "A"
Ben Bailey
Clarke (T)
Galliford Try
Gibbs & Dandy
Latham (James)
N.W.F. Group
Gooch & Housego
Goodwin
Severfield-Rowen
Slingsby (H.C. )
Treatt
Wynnstay Group
Black Leisure Group
Clinton Cards
Flying Brands
Mallett
SCS Upholstery
Stanley Gibbons
Wyevale Garden Centres
Havelock Europa
Domestic & General Group
Personal Group Holdings
Enterprise Inns
International Greetings
Landround
Media Square
City Lofts Group
Colliers C.R.E.
Mountview Estates
Smart (J) & Co.
Unite Group
Bergravium Technologies
Group NBT
Idox
Pennant International Group
Phoenix IT
Albemarle & Bond
Arbuthnot Banking Group
Camellia
Charles Taylor Consulting
Jarvis Securities
Park Group
S & U
Tenon Group
Vantis
Brandon Hire
Dawson Holdings
Enterprise
Erinaceous Group
Fountains
Genus
MSB International
Penna Consulting
RWS Holdings
VP Group
Waterman Partnership Holdings
Watermark Group
WSP Group
Goldshield Group
Air Partner
Braemar Seascope Group
Clarkson
Fisher (James)
PD Ports
11,350
7,200
14,000
6,000
6,800
18,000
65,000
10,000
16,000
13,000
18,000
17,000
6,500
4,000
10,500
30,000
6,000
28,500
14,000
12,000
12,000
90,000
7,000
24,000
3,300
22,000
10,000
18,000
5,000
213,179
25,000
16,000
1,925
4,000
10,000
150,000
22,000
165,000
116,000
8,500
20,000
8,818
1,300
8,000
20,000
80,000
8,000
72,500
36,667
20,000
34,000
16,000
13,000
20,000
15,000
56,000
16,000
14,000
17,000
40,000
20,000
23,000
9,000
8,500
20,000
8,000
17,000
25,000
4
36,405
33,084
30,520
73,800
30,838
40,905
58,013
37,250
30,240
84,825
58,950
104,125
62,790
53,900
27,195
68,400
29,730
18,881
25,130
28,020
49,800
81,450
33,775
34,800
26,796
53,570
93,800
76,770
4,425
46,899
20,125
25,120
87,106
27,600
38,000
24,375
25,190
23,513
12,760
22,993
32,900
40,342
84,994
25,300
15,800
11,400
40,200
17,763
79,017
34,700
55,420
62,800
40,138
28,200
53,400
20,160
17,840
38,990
42,500
55,200
25,700
85,100
34,200
53,975
76,600
69,440
64,600
37,375
69,489
2.33%
104,320
3.49%
197,246
84,825
6.61%
2.84%
279,765
9.37%
95,595
3.20%
266,786
34,800
80,366
93,800
8.93%
1.17%
2.69%
3.14%
128,094
4.29%
197,951
6.63%
108,831
3.64%
347,716
11.65%
560,148
34,200
18.76%
1.15%
301,990
10.11%
Athelney Trust plc
INVESTMENT AND PORTFOLIO ANALYSIS AT 31 DECEMBER 2005
( CONTINUED)
Portfolio Value
Net Current Assets
Deferred tax
TOTAL VALUE
Shares in issue
Audited NAV
£
2,985,922
£
151,388
£
(295,142)
£
2,842,168
1,802,802
157.7p
100.00%
Portfolio by
Sectors
11.12%
4.26%
2.47%
1.15%
18.72%
12.62%
7.77%
2.84%
9.37%
2.29%
7.98%
1.79%
3.14%
3.64%
6.55%
4.29%
Portfolio
by Listing
AIM
34.41%
Automobiles and Parts
Beverages
Construction & Building Materials
Diversified Industrials
Engineering Machinery
Food Processors
General Retail
Insurance
Leisure & Hotels
Media & Entertainment
Real Estate
Software & Computer Services
Speciality & Other Finance
Support Services
Pharmaceuticals
Transport
FULL
AIM
OFEX
OFEX
2.47%
FULL
63.12%
5
REPORT OF THE DIRECTORS OF
Athelney Trust plc
The directors present their report and audited financial statements of the Company for the year ended 31 December 2005.
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 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 2005 1 January 2005
H.B. Deschampsneufs 108,750 108,750
R.G. Boyle 485,000 485,000
D.A. Horner 15,000 15,000
The above figures include a holding of 58,000 shares (2004 - 58,000) owned by a pension fund in which R.G. Boyle and H.B.
Deschampsneufs have an interest and 15,000 shares (2004 - 15,000) owned by a pension fund in which D.A. Horner has an interest.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United
Kingdom Generally Accepted Accounting Practice.
Company law requires the directors to prepare for each financial year which give a true and fair view of the state of affairs of the
company and of the result for the company for that period.
In preparing those financial statements, the directors are required to :
-select suitable accounting policies and then apply them consistently;
-make judgements and estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in
business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
In determining how amounts are presented within items in the financial statements , the directors have had regard to the substance of the
reported transaction or arrangement, in accordance with generally accepted accounting principles or practice.
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.
6
REPORT OF THE DIRECTORS OF
Athelney Trust plc
(CONTINUED)
Results and dividends
The return on ordinary revenue activities before dividends for the year is £48,825 (2004: £42,818) as detailed on page 9.
It is
recommended that a final dividend of 2.5p (2004: 2p) per ordinary share be paid. The retained profit for the year of £12,769,which is
before proposed 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 20 April 2006
7
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
Athelney Trust plc
We have audited the financial statements of Athelney Trust plc for the year ended 31 December 2005, set out on pages 9 to 19.
These financial statements have been prepared under the accounting policies set out therein.
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 or assume
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
The directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the
Statement of directors' responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
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 Directors' Report, 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. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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
financial statements. It also includes an assessment of the significant estimates and judgements made by the 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, in accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of affairs of the Company as at 31 December 2005 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 20 April 2006
8
Athelney Trust plc
STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2005
31 December 2005
31 December 2004
Note
Revenue
£
Capital
£
Restated*
Revenue
£
Total
£
Restated*
Capital
£
Total
£
8
2
3
3
-
460,306
460,306
-
535,518
535,518
86,265
-
86,265
79,822
-
79,822
(7,266)
(21,362)
(28,628)
(6,810)
(19,789)
(26,599)
(37,753)
-
(37,753)
(38,199)
-
(38,199)
41,246
438,944
480,190
34,813
515,729
550,542
Profits on investments
Income
Investment management expenses
Other expenses
Return on ordinary
activities before taxation
Taxation
5
7,579
(77,234)
(69,655)
8,005
(90,367)
(82,362)
Return on ordinary
activities after taxation
48,825
361,710
410,535
42,818
425,362
468,180
Dividend
7
(36,056)
-
(36,056)
(32,450)
-
(32,450)
Transfer to reserves
12,769
361,710
374,479
10,368
425,362
435,730
Return per ordinary share
6
2.7p
20.1p
22.8p
2.4p
23.6p
26.0p
Dividend paid per ordinary share
Final dividend
2p
1.8p
* Restated on adoption of FRS21 - see note 1.1
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.
9
Athelney Trust plc
BALANCE SHEET AS AT 31 DECEMBER 2005
Fixed assets
Investments
Current assets
Debtors
Cash at bank and in hand
Note
8
9
2005
£
Restated*
2004
£
2,985,922
2,555,581
145,109
40,048
185,157
116,514
61,311
177,825
(21,617)
156,208
Creditors: amounts falling due within one year
10
(33,769)
Net current assets
151,388
Total assets less current liabilities
3,137,310
2,711,789
Provisions for liabilities and charges
11
(295,142)
(244,100)
Net assets
2,842,168
2,467,689
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
520,007
1,360,604
105,252
450,700
405,605
389,458
1,129,445
92,481
2,842,168
2,467,689
Net Asset Value per share
157.7p
136.9p
* Restated on adoption of FRS21 - see note 1.1
Approved by the board of directors on 20 April 2006.
………………………………..
R.G. Boyle
The notes on pages 12 to 19 form part of these financial statements.
10
Athelney Trust plc
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
2005
2004
£
£
£
£
Net cash inflow from operating activities
3,487
19,170
Servicing of finance
Dividends paid
(36,056)
(32,450)
Net cash (outflow) from servicing of finance
(36,056)
(32,450)
Taxation
Corporation tax paid
Investing activities
Purchases of investments
Sales of investments
Net cash (outflow) from investing
activities
(Decrease) / increase in cash in the year
Reconciliation of operating net revenue to
net cash inflow from operating activities
Revenue on ordinary activities before taxation
(Increase) / decrease in debtors
Increase in creditors
Management expenses charged to capital
Analysis of net debt
Cash at bank and in hand
(2,017)
-
(529,075)
542,398
(575,195)
575,193
13,323
(21,263)
£
41,246
(28,595)
12,198
(21,362)
3,487
2004
£
61,311
(2)
(13,282)
£
34,813
(398)
4,544
(19,789)
19,170
Cashflow
£
(21,263)
2005
£
40,048
The notes on pages 12 to 19 form part of these financial statements.
11
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
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) in effect for this period.
Change in accounting policy
The company adopted the provisions of FRS 21 'Events after the balance sheet date' during the year by which final
dividends proposed by the Board and unpaid at the end of the year are not recognised in the financial statements until
they have been approved by the shareholders at the Annual General Meeting. Interim dividends are recognised when
they are paid. This represents a change in policy from that of recognising dividends in the year for which they are
proposed. The previously published figures at 31 December 2003 and 31 December 2004 have been restated. This has
resulted in the dividend balance being reduced by £32,450 and £36,056 respectively with a corresponding decrease in
creditors less than one year.These changes have resulted in shareholders funds increasing from £1,999,509 to
£2,031,959 in 2003 and £2,431,633 to £2,467,689 in 2004.
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 expenses
Investment management expenses have been allocated 25% to revenue and 75% 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 Official List of 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.
12
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
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 rates expected to apply in the period in which timing differences
reverse based on tax rates and laws substantively enacted at the balance sheet date.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
Bank interest
Other income
Total income
Income from investments
UK listed investments
AIM investments
Other investments
2005
£
80,987
5,219
59
86,265
£
54,506
25,365
1,116
80,987
2004
£
75,922
3,900
-
79,822
£
52,713
22,153
1,056
75,922
13
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
3. Return on ordinary activities before taxation
The following amounts (inclusive of VAT) are included
within investment management and other expenses:-
Directors' remuneration:-
- Services as a director
- Otherwise in connection with management
Auditors' remuneration:-
Audit services
- Statutory audit
- Audit related regulatory reporting
4. Employees
Costs in respect of directors:-
Wages and salaries
Social security costs
Costs in respect of administrator:-
Wages and salaries
Social security costs
Total
Wages and salaries
Social security costs
Average number of employees
Chairman
Investment
Administration
2005
£
8,000
22,000
5,874
752
2005
£
30,000
2,194
32,194
3,500
134
3,634
33,500
2,328
35,828
No.
1
2
1
4
2004
£
8,000
20,000
6,580
1,240
2004
£
28,000
1,957
29,957
-
-
-
28,000
1,957
29,957
No.
1
2
-
3
14
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
5. Taxation
(i) The tax charge for the year is
based on the return for the year
Corporation tax for current year
Tax relief on management expenses
charged to income
2005
2004
Revenue
Capital
Total
Revenue
Capital
Total
£
-
£
£
18,613
18,613
£
-
£
£
2,062
2,062
(7,579)
7,579
-
(8,005)
8,005
-
Adjustment in respect of previous years
Deferred taxation
-
-
(7,579)
-
51,042
77,234
-
51,042
69,655
£
-
-
(8,005)
-
80,300
90,367
-
80,300
82,362
£
(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:
Total return on ordinary activities before tax
480,190
550,542
Total return on ordinary activities multiplied by the average small
company rate of corporation tax 19% (2004: 19%)
91,236
104,603
Effects of:
UK dividend income not taxable
Revaluation of shares not taxable
Indexation relief for capital gains
Relief for losses brought forward
Other
Current tax charge for the year
6.
Return per ordinary share
(15,388)
(53,619)
(3,361)
-
(255)
18,613
(14,425)
(81,312)
(2,138)
(4,656)
(10)
2,062
The calculation of earnings per share has been performed in accordance with FRS 14
'Earnings per share'.
2005
2004
Attributable return on
ordinary activities after taxation
£
Revenue
£
Capital
£
Total
£
Revenue
£
Capital
£
Total
48,825
361,710
410,535
42,818
425,362
468,180
Number of shares
1,802,802
1,802,802
Return per ordinary share
2.7p
20.1p
22.8p
2.4p
23.6p
26.0p
15
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
7. Dividend
Final dividend in respect of 2004 of 2p
(2003 -1.8p) per share.
* Restated on adoption of FRS21 - see note 1.1
2005
£
36,056
Restated*
2004
£
32,450
A final dividend in respect of 2005 of 2.5p (2004 - 2p) per share amounting to a total of £45,070
(2004 - £36,056) is proposed by the Board. The dividend proposed will not be accounted for until
it has been approved at the Annual General Meeting.
8.
Investments
Movements in year
Valuation at beginning of year
Purchases at cost
Sales - proceeds
- realised gains on sales
Increase 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
Other investments
Gains on investment
Realised gains on sales
Increase in unrealised appreciation
2004
£
2,048,785
575,195
(603,917)
107,560
427,958
2,555,581
£
1,182,036
1,373,545
2,555,581
1,791,814
713,667
50,100
2,555,581
2004
£
107,560
427,958
535,518
2005
£
2,555,581
529,075
(559,040)
178,103
282,203
2,985,922
£
1,306,753
1,679,169
2,985,922
1,884,678
1,027,444
73,800
2,985,922
2005
£
178,103
282,203
460,306
16
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
9. Debtors
Amounts falling due within one year:
Investment transaction debtors
Other debtors
10. Creditors: amounts falling due within one year
Corporation tax
Social security and other taxes
Other creditors
Accruals and deferred income
* Restated on adoption of FRS21 - see note 1.1
11. Deferred taxation
2005
Provided
£
295,142
295,142
Tax on unrealised gains net of losses
Balance at beginning of year
Charge to the capital element of the
Statement of Total Return
Balance at end of year
2005
£
142,046
3,063
145,109
2005
£
18,613
3,731
146
11,279
33,769
Not
Provided
£
-
-
2005
£
244,100
51,042
295,142
2004
£
112,080
4,434
116,514
Restated*
2004
£
2,062
3,781
4,921
10,853
21,617
£
-
-
2004
Not
Provided
Provided
£
244,100
244,100
2004
£
163,800
80,300
244,100
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.
17
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
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
13. Reserves
Balance at 31 Decmber 2004 as previously
reported
Adoption of FRS 21 (see note 1)
Balance at 1 January 2005 as restated
Net gain on realisation of investments
Increase in unrealised appreciation
Management expenses allocated to capital
Taxation
Retained profit for the year
Share
premium
account
£
405,605
-
405,605
-
-
-
-
-
2005
£
2004
£
2,500,000
2,500,000
£
450,700
2005
Capital
reserve
realised
£
389,458
-
389,458
178,103
-
(21,362)
(26,192)
-
Capital
reserve
unrealised
£
1,129,445
-
1,129,445
-
282,201
-
(51,042)
-
£
450,700
Restated*
Revenue
reserve
£
56,425
36,056
92,481
-
-
-
-
12,771
Balance at end of year
405,605
520,007
1,360,604
105,252
* Restated on adoption of FRS21 - see note 1.1
14. Reconciliation of movement on shareholders' funds
2005
£
48,825
(36,056)
12,769
361,710
374,479
2,467,689
2,842,168
Restated*
2004
£
42,818
(32,450)
10,368
425,362
435,730
2,031,959
2,467,689
Retained net revenue for the year after taxation
Dividend
Total recognised gains for the year
Shareholders' funds at beginning of year
Shareholders' funds at end of year
* Restated on adoption of FRS21 - see note 1.1
18
Athelney Trust plc
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2005
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 where available 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.
19
Directors:
Secretary:
Registered Office:
Nominated Adviser:
Broker:
Auditor:
Banker:
Registrar:
Athelney Trust plc
OFFICERS AND FINANCIAL ADVISERS
H.B. Deschampsneufs (Chairman)
R.G. Boyle (Managing Director)
D.A. Horner (Non-Executive Director)
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
CityRoad Communications
42 - 44 Carter Lane
London, EC4V 5EA
Public Relations Consultants:
Company Number:
2933559
20