REG-Chelverton UK Dividend Trust plc Chelverton UK Dividend Trust plc: Half-Yearly Results for the Six Months Ended 31 October 2022
29/11/2022 12:00
============
Chelverton UK Dividend Trust plc (SDVP)
Chelverton UK Dividend Trust plc: Half-Yearly Results for the Six Months Ended 31 October
2022
29-Nov-2022 / 11:56 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Chelverton UK Dividend Trust PLC
Half-Yearly Financial Report
For the Six Months ended 31 October 2022
Investment Objective and Policy
The investment objective of Chelverton UK Dividend Trust PLC (‘the Company’) is to
provide Ordinary Shareholders with a high income and opportunity for capital growth,
having provided a capital return sufficient to repay the full final capital entitlement
of the Zero Dividend Preference shares issued by the wholly owned subsidiary company, SDV
2025 ZDP PLC (‘SDVP’).
Chelverton UK Dividend Trust PLC, and its subsidiary SDV 2025 ZDP PLC (‘SDVP’) (‘the
Subsidiary’), together form the Group (‘the Group’).
The Company’s investment policy is that:
• the Company will invest in equities in order to achieve its investment objectives,
which are to provide both income and capital growth, predominantly through investment
in mid and smaller capitalised UK companies admitted to the Official List of the UK
Listing Authority and traded on the London Stock Exchange Main Market or traded on
AIM.
• the Company will not invest in preference shares, loan stock or notes, convertible
securities or fixed interest securities or any similar securities convertible into
shares; nor will it invest in the securities of other investment trusts or in
unquoted companies.
Financial Highlights
┌─────────────────────────────────────────────────────┬──────────┬─────────────┬────────┐
│ │31 October│ 30 April│ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Capital │ 2022│ 2022│% change│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Total gross assets (£’000) │ 49,543│ 58,805│ (15.75)│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Total net assets (£’000) │ 31,899│ 41,382│ (22.92)│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│ │ │ │ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Net asset value per Ordinary share │ 152.99p│ 198.47p│ (22.92)│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Mid-market price per Ordinary share │ 162.00p│ 192.50p│ (15.84)│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Premium/(discount) │ 5.89%│ (3.01%)│ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│ │ │ │ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Net asset value per Zero Dividend Preference share │ 120.87p│ 118.52p│ 1.98│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Mid-market price per Zero Dividend Preference share │ 116.50p│ 118.50p│ (1.69)│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Premium/(discount) │ (3.62%)│ (0.02%)│ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│ │ │ │ │
├────────────────────────────┬────────────────────────┴──────────┼─────────────┼────────┤
│ │ Six months to│Six months to│ │
├────────────────────────────┴────────────────────────┬──────────┼─────────────┼────────┤
│ │31 October│ 31 October│ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Revenue │ 2022│ 2021│% change│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Return per Ordinary share │ 6.63p│ 4.67p│ 41.97│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Dividends declared per Ordinary share* │ 5.89p│ 5.50p│ 7.00│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Special dividends declared per Ordinary share │ –│ –│ -│
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Total return │ │ │ │
├─────────────────────────────────────────────────────┼──────────┼─────────────┼────────┤
│Total return on Group’s net assets** │ (20.05%)│ (7.74%)│ │
├────────────────────────────┬────────────────────────┼──────────┼─────────────┼────────┤
│ │ │ │ │ │
└────────────────────────────┴────────────────────────┴──────────┴─────────────┴────────┘
┌──┬────────────────────────────────────────────────────────────────────────────────────┐
│ │Dividend per Ordinary share includes the first interim paid and second interim│
│* │declared for the period to 31 October 2022 and 2021 and will differ from the amounts│
│ │disclosed within the statement of changes in net equity. │
├──┼────────────────────────────────────────────────────────────────────────────────────┤
│**│Adding back dividends distributed in the period. │
└──┴────────────────────────────────────────────────────────────────────────────────────┘
Interim Management Report
This half-yearly report covers the six months to 31 October 2022. The net asset value per
Ordinary share as at 31 October 2022 was 152.99p down from 198.47p at 30 April 2022, a
decrease of 22.92% during the period compared to the MSCI Small Cap Index which also
decreased by 15.1%. As at 21 November 2022 the NAV per share has increased to 165.97p.
Since the beginning of the Company’s financial year, the Ordinary share price has
decreased from 192.50p to 162.00p as at 31 October 2022, a decrease of 15.84%. Since the
period end the shares have increased in price to 166.00p and as at 21 November 2022 the
shares traded on a premium of 0.02%.
Dividend
Maintaining its record of increasing the annual core dividend paid by the Company for 13
years, the first interim dividend for the current year of 2.9425p (2021: 2.75p) per
Ordinary share was paid on 14 October 2022. The Board has declared a second interim
dividend of 2.9425p per Ordinary share (2021: 2.75p) payable on 9 January 2023 to
shareholders on the register on 16 December 2022, making a total for the half year of
5.885p per Ordinary share (2021: 5.5p) an increase of 7.0%.
It is anticipated that the Company will maintain the level of dividend for the third and
fourth quarter at 2.9425p making a total core dividend declared of 11.77p for the year
(2022: 11.0p) an annual increase of 7.0%.
Portfolio
In the last six months we have increased our investment in 13 of our existing holdings,
taking advantage of lower share prices and shares being available in Bakkavor Group,
Chesnara, Close Brothers, Crest Nicholson, Duke Royalty, Jarvis Securities, R and Q
Insurance, Spectra Systems, Springfield Properties, Strix, The Works.co.uk, Tyman and UP
Global Sourcing.
During the period we added four new names to the portfolio: Fonix – Mobile Payments,
Genuit (formerly Polypipe) – Sustainable Built Environment Products, Liontrust – Asset
Management and Marshalls – Building Materials.
Funds were raised from the outright sale of two of our holdings, Contourglobal and RPS,
both as a result of bids. The following holdings were reduced as they grew to become
larger weightings on lower yields: Belvoir, Bloomsbury Publishing, Centaur Media, Curtis
Banks, Town Centre Securities (as a result of a tender offer by the company at a
significant premium to the prevailing share price), TP ICAP and Wilmington.
Outlook
Having recovered strongly from the depths of the pandemic, the market has reacted very
badly to the ongoing Ukrainian conflict and its impact on energy prices and other
commodities. Coupled with this, the UK has exacerbated the general European problems by
creating massive self-inflicted political uncertainty. It is hoped that the recent
changes within government, will, in time, restore stability and therefore confidence.
However, it is reassuring that the underlying performance of the companies in the
portfolio continues to be positive as the companies are reacting rapidly to changing
circumstances and the challenges of the current marketplace. We continue to see
compelling evidence that our companies are, in the main, emerging from the pandemic
episode as better companies with more efficient processes. It is likely that our
companies will only receive the ratings they deserve once the World political and
economic situation is stable and then improving.
We are pleased to recommend an annual 7% rise in the dividend and, after three years of
utilising reserves to pay the increasing dividends, the forecasts for the current year
indicate that we will be able to pay the increased dividend from current revenue.
Chelverton Asset Management
29 November 2022
Principal Risks
The principal risks facing the Group are substantially unchanged since the date of the
Annual Report for the year ended 30 April 2022 and continue to be as set out in that
report on pages 11 to 13. Risks faced by the Group include, but are not limited to,
market risk, discount volatility, regulatory risks, financial risk, political risk,
climate change risk, global pandemics and risks associated with accounting policies and
gearing.
Going concern
Having assessed the principal risks and the other matters discussed in connection with
the viability statement as set out on pages 14 and 15 of the Annual Report for the year
ended 30 April 2022, including the additional risks related to the coronavirus pandemic,
the Directors believe that the Group is well placed to manage its business risks
successfully and it is appropriate to adopt the going concern basis in preparing the
accounts.
Responsibility Statement of the Directors in respect of the Half-Yearly Report
We confirm that to the best of our knowledge:
• the condensed set of financial statements has been prepared in compliance with the
IAS 34 ‘Interim Financial Reporting’ and gives a true and fair view of the assets,
liabilities and financial position of the Group; and
• the interim management report and notes to the Half-Yearly Report include a fair view
of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of the
important events that have occurred during the first six months of the financial year and
their impact on the condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions
that have taken place in the first six months of the current financial year and that have
materially affected the financial position or performance of the Group during that
period; and any changes in the related party transactions described in the last annual
report that could do so.
This Half-Yearly Report was approved by the Board of Directors on 29 November 2022 and
the above responsibility statement was signed on its behalf by Howard Myles, Chairman.
Condensed Consolidated Statement of Comprehensive Income (unaudited)
for the six months ended 31 October 2022
┌─────────────────┬───────────────────────┬───────────────────────┬─────────────────────┐
│ │ Six months to 31 │ Year to 30 April │ Six months to 31 │
│ │ October │ │ October │
│ │ │ 2022 │ │
│ │ 2022 │ │ 2021 │
├─────────────────┼───────┬───────┬───────┼───────┬───────┬───────┼───────┬───────┬─────┤
│ │ │ │ │ │ │ │ │ │ │
│ │ │ │ │ │ │ │ │ │ │
│ │Revenue│Capital│ Total│Revenue│Capital│ Total│Revenue│Capital│Total│
│ │ │ │ │ │ │ │ │ │ │
│ │ £’000│ £’000│ £’000│ £’000│ £’000│ £’000│ £’000│ £’000│£’000│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│(Losses)/gains on│ │ │ │ │ │ │ │ │ │
│investments at │ │ │ │ │ │ │ │ │ │
│fair value │ –│(9,134)│(9,134)│ –│(4,610)│(4,610)│ –│ 649│ 649│
│through profit or│ │ │ │ │ │ │ │ │ │
│loss │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Investment income│ 1,631│ –│ 1,631│ 2,576│ –│ 2,576│ 1,214│ –│1,214│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Investment │ (65)│ (195)│ (260)│ (158)│ (473)│ (631)│ (83)│ (248)│(331)│
│management fee │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Other expenses │ (168)│ (8)│ (176)│ (302)│ (12)│ (314)│ (144)│ (5)│(149)│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Net │ │ │ │ │ │ │ │ │ │
│(deficit)/surplus│ │ │ │ │ │ │ │ │ │
│before finance│ 1,398│(9,337)│(7,939)│ 2,116│(5,095)│(2,979)│ 987│ 396│1,383│
│costs and│ │ │ │ │ │ │ │ │ │
│taxation │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Finance costs │ │ │ │ │ │ │ │ │ │
│ │ │ │ │ │ │ │ │ │ │
│Preference shares│ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Preference shares│ –│ (340)│ (340)│ –│ (654)│ (654)│ –│ (326)│(326)│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Net │ │ │ │ │ │ │ │ │ │
│(deficit)/surplus│ 1,398│(9,677)│(8,279)│ 2,116│(5,749)│(3,633)│ 987│ 70│1,057│
│before taxation │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Taxation (see │ (16)│ –│ (16)│ (32)│ –│ (32)│ (13)│ –│ (13)│
│note 2) │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Total │ │ │ │ │ │ │ │ │ │
│comprehensive │ 1,382│(9,677)│(8,295)│ 2,084│(5,749)│(3,665)│ 974│ 70│1,044│
│(expense)/ income│ │ │ │ │ │ │ │ │ │
│for the period │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│ │Revenue│Capital│ Total│Revenue│Capital│ Total│Revenue│Capital│Total│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│ │ pence│ pence│ pence│ pence│ pence│ pence│ pence│ pence│pence│
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Net return per: │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Ordinary share │ 6.63│(46.41)│(39.78)│ 10.00│(27.57)│(17.57)│ 4.67│ 0.34│ 5.01│
│(see note 3) │ │ │ │ │ │ │ │ │ │
├─────────────────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼───────┼─────┤
│Zero Dividend │ │ │ │ │ │ │ │ │ │
│Preference share │ –│ 2.34│ 2.34│ –│ 4.51│ 4.51│ –│ 2.25│ 2.25│
│2025 (see note 3)│ │ │ │ │ │ │ │ │ │
└─────────────────┴───────┴───────┴───────┴───────┴───────┴───────┴───────┴───────┴─────┘
The total column of this statement is the Statement of Comprehensive Income of the Group
prepared in accordance with UK adopted IFRSs and in with the requirements of the
Companies Act 2006. All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued during the period. All
of the net return for the period and the total comprehensive income for the period is
attributed to the Shareholders of the Group. The supplementary revenue and capital return
columns are presented for information purposes as recommended by the Statement of
Recommended Practice issued by the Association of Investment Companies (‘AIC’).
Condensed Consolidated Statement of Changes in Net Equity (unaudited)
for the six months ended 31 October 2022
┌──────────────────────────────────┬─┬───────┬───────┬──────────┬───────┬───────┬───────┐
│ │ │ Share│ Share│ Capital│Capital│Revenue│ │
│ │ │capital│premium│redemption│reserve│reserve│ Total│
│ │ │ │account│ reserve│ │ │ │
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│ │ │ £’000│ £’000│ £’000│ £’000│ £’000│ £’000│
├──────────────────────────────────┴─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Six months ended 31 October 2022 │ │ │ │ │ │ │
│ │ 5,213│ 17,517│ 5,004│ 11,201│ 2,447│ 41,382│
│30 April 2022 │ │ │ │ │ │ │
├──────────────────────────────────┬─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Total comprehensive (expense)/ │ │ –│ –│ –│(9,677)│ 1,382│(8,295)│
│income for the period │ │ │ │ │ │ │ │
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Dividends paid (see note 4) │ │ –│ –│ –│ –│(1,188)│(1,188)│
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│31 October 2022 │ │ 5,213│ 17,517│ 5,004│ 1,524│ 2,641│ 31,899│
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│ │ │ │ │ │ │ │ │
├──────────────────────────────────┴─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Year ended 30 April 2022 (audited) │ │ │ │ │ │ │
│ │ 5,213│ 17,517│ 5,004│ 16,950│ 2,661│ 47,345│
│30 April 2021 │ │ │ │ │ │ │
├──────────────────────────────────┬─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Total comprehensive (expense)/ │ │ –│ –│ –│(5,749)│ 2,084│(3,665)│
│income for the year │ │ │ │ │ │ │ │
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Dividends paid (see note 4) │ │ –│ –│ –│ –│(2,298)│(2,298)│
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│30 April 2022 │ │ 5,213│ 17,517│ 5,004│ 11,201│ 2,447│ 41,382│
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│ │ │ │ │ │ │ │ │
├──────────────────────────────────┴─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│ │ │ │ │ │ │ │
│ │ │ │ │ │ │ │
│Six months ended 31 October 2021 │ 5,213│ 17,517│ 5,004│ 16,950│ 2,661│ 47,345│
│ │ │ │ │ │ │ │
│30 April 2021 │ │ │ │ │ │ │
├──────────────────────────────────┬─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Total comprehensive income for the│ │ –│ –│ –│ 70│ 974│ 1,044│
│year │ │ │ │ │ │ │ │
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│Dividends paid (see note 4) │ │ –│ –│ –│ –│(1,151)│(1,151)│
├──────────────────────────────────┼─┼───────┼───────┼──────────┼───────┼───────┼───────┤
│31 October 2021 │ │ 5,213│ 17,517│ 5,004│ 17,020│ 2,484│ 47,238│
└──────────────────────────────────┴─┴───────┴───────┴──────────┴───────┴───────┴───────┘
Condensed Consolidated Balance Sheet
(unaudited)
as at 31 October 2022
┌────────────────────────────────────────────────┬──────────┬────────┬──────────┐
│ │31 October│30 April│31 October│
│ │ │ │ │
│ │ 2022│ 2022│ 2021│
│ │ │ │ │
│ │ £’000│ £’000│ £’000│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Non-current assets │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Investments at fair value through profit or loss│ 48,919│ 57,751│ 63,888│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│ │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Current assets │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Trade and other receivables │ 289│ 520│ 181│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Cash and cash equivalents │ 335│ 534│ 187│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│ │ 624│ 1,054│ 368│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Total assets │ 49,543│ 58,805│ 64,256│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Current liabilities │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Trade and other payables │ (118)│ (237)│ (160)│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│ │ (118)│ (237)│ (160)│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Total assets less current liabilities │ 49,425│ 58,568│ 64,096│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Non-current liabilities │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Zero Dividend Preference shares 2025 │ (17,526)│(17,186)│ (16,858)│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Total liabilities │ (17,644)│(17,423)│ (17,018)│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Net assets │ 31,899│ 41,382│ 47,238│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│ │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Represented by: │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Share capital │ 5,213│ 5,213│ 5,213│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Share premium account │ 17,517│ 17,517│ 17,517│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Capital redemption reserve │ 5,004│ 5,004│ 5,004│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Capital reserve │ 1,524│ 11,201│ 17,020│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Revenue reserve │ 2,641│ 2,447│ 2,484│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Equity shareholders’ funds │ 31,899│ 41,382│ 47,238│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│ │ │ │ │
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Net asset value per: (see note 5) │ pence│ pence│ pence│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Ordinary share │ 152.99│ 198.47│ 226.56│
├────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Zero Dividend Preference share 2025 │ 120.87│ 118.52│ 116.26│
└────────────────────────────────────────────────┴──────────┴────────┴──────────┘
Condensed Consolidated Statement of Cash Flows
(unaudited)
for the six months ended 31 October 2022
┌──────────────────────────────────────────────────┬─────────────┬────────┬─────────────┐
│ │Six months to│ Year to│Six months to│
│ │ │ │ │
│ │ 31 October│30 April│ 31 October│
│ │ │ │ │
│ │ 2022│ 2022│ 2021│
│ │ │ │ │
│ │ │ │ │
│ │ │ │ │
│ │ £’000│ £’000│ £’000│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Operating activities │ │ │ │
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Investment income received │ 1.799│ 2,370│ 1,320│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Investment management fee paid │ (278)│ (643)│ (324)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Administration and secretarial fees paid │ (32)│ (67)│ (34)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Other cash payments │ (187)│ (236)│ (113)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Cash generated from operations (see note 7) │ 1,302│ 1,424│ 849│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Purchases of investments │ (4.028)│ (8,795)│ (5,079)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Sales of investments │ 3,715│ 9,715│ 5,080│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Net cash inflow/(outflow) from operating │ 989│ 2,344│ 850│
│activities │ │ │ │
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Financing activities │ │ │ │
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Dividends paid │ (1,188)│ (2,298)│ (1,151)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Net cash outflow from financing activities │ (1,188)│ (2,298)│ (1,151)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Change in cash and cash equivalents │ (199)│ 46│ (301)│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Cash and cash equivalents at start of period │ 534│ 488│ 488│
├──────────────────────────────────────────────────┼─────────────┼────────┼─────────────┤
│Cash and cash equivalents at end of period │ 335│ 534│ 187│
└──────────────────────────────────────────────────┴─────────────┴────────┴─────────────┘
Notes to the Condensed Half-Yearly Report
for the six months ended 31 October 2022
1 General information
The financial information contained in this Half-Yearly Report does not constitute
statutory financial statements as defined in Section 434 of the Companies Act 2006. The
statutory financial statements for the year ended 30 April 2021, which contained an
unqualified auditors’ report, have been lodged with the Registrar of Companies and did
not contain a statement required under the Companies Act 2006. These statutory financial
statements were prepared in accordance with UK adopted International Financial Reporting
Standards (‘UK adopted IFRSs’) and in accordance with the Statement of Recommended
Practice (‘SORP’): Financial Statements of Investment Trust Companies and Venture Capital
Trusts issued by the AIC in July 2022.
The Group has financial resources which substantially exceed its expense commitments and
therefore the Directors believe that the Group is well placed to manage its business
risks and also believe that the Group will have sufficient resources to continue in
operational existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing this report.
This report has not been reviewed by the Group’s Auditors.
This report has been prepared using accounting policies adopted in the audited financial
statements for the year ended 30 April 2022. This report has also been prepared in
compliance with IAS 34 ‘Interim Financial Reporting’ and the Companies Act 2006.
2 Taxation
The Company has an effective tax rate of 0% as investment gains are exempt from tax owing
to the Company’s status as an Investment Trust and there is expected to be an excess of
management expenses over taxable income and thus there is no charge for corporation tax.
Deferred tax assets in respect of unrelieved excess expenses are not recognised as it is
unlikely that the Group will generate sufficient taxable income in the future to utilise
these expenses. Deferred tax is not provided on capital gains and losses because the
Company meets the conditions for approval as an investment trust company.
3 Earnings per share
Ordinary shares
Revenue earnings per Ordinary share is based on revenue on ordinary activities after
taxation of £1,382,000 (30 April 2022: £2,084,000. 31 October 2021: £974,000) and on
20,850,000 (30 April 2022: 20,850,000, 31 October 2021: 20,850,000) Ordinary shares,
being the weighted average number of Ordinary shares in issue during the period.
Capital earnings per Ordinary share is based on the capital loss of £9,677,(30 April
2022: £5,749,000. 31 October 2021: profit of £70,000) and on 20,850,000 (30 April 2022:
20,850,000, 31 October 2021: 20,850,000) Ordinary shares, being the weighted average
number of Ordinary shares in issue during the year.
Zero Dividend Preference shares
Capital earnings per Zero Dividend Preference share 2025 is based on allocations from the
Company of £340,000 (30 April 2022: £654,000, 31 October 2021: £326,000) and on
14,500,000 (30 April 2022: 14,500,000, 31 October 2021: 14,500,000) Zero Dividend
Preference shares 2025, being the weighted average number of Zero Dividend Preference
shares in issue during the year.
4 Dividends
During the period, a fourth interim dividend of 2.75p per Ordinary share was paid to
Shareholders in respect of the financial year ended 30 April 2022.
In respect of the year ended 30 April 2023, a first interim dividend of 2.9425p per
ordinary share has been paid to the Shareholders.
In addition, for the year ended 30 April 2023, the Board has declared a second interim
dividend of 2.9425p per Ordinary share payable on 9 January 2023 to Shareholders on the
register at 16 December 2022 (ex-dividend date 15 December 2022).
5 Net asset values
Ordinary shares
The net asset value per Ordinary share is based on assets attributable of £31,899,000 (30
April 2022:
£41,382,000, 31 October 2021: £47,238,000) and on 20,850,000 (30 April 2022: 20,850,000,
31 October
2021: 20,850,000) Ordinary shares being the number of shares in issue at the period end.
Zero Dividend Preference shares
The net asset value per Zero Dividend Preference shares is based on assets attributable
of £17,526,000 (30 April 2022: £17,186,000, 31 October 2021: £16,858,000) and on
14,500,000 (30 April 2022: 14,500,000, 31 October 2021: 14,500,000) Zero Dividend
Preference shares being the number of shares in issue at the period end.
6 Fair value hierarchy
Financial assets and financial liabilities of the Company are carried in the condensed
Consolidated Balance Sheet at their fair value. The fair value is the amount at which the
asset could be sold or the liability transferred in a current transaction between market
participants, other than a forced or liquidation sale. For investments actively traded in
organised financial markets, fair value is generally determined by reference to Stock
Exchange quoted market bid prices and Stock Exchange Electronic Trading Services (‘SETS’)
at last trade price at the Balance Sheet date, without adjustment for transaction costs
necessary to realise the asset.
The Company measures fair values using the following hierarchy that reflects the
significance of the inputs used in making the measurements. Categorisation within the
hierarchy has been determined on the basis of the lowest level input that is significant
to the fair value measurement of the relevant assets as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
An active market is a market in which transactions for the asset or liability occur with
sufficient frequency and volume on an ongoing basis such that quoted prices reflect
prices at which an orderly transaction would take place between market participants at
the measurement date. Quoted prices provided by external pricing services, brokers and
vendors are included in Level 1, if they reflect actual and regularly occurring market
transactions on an arm’s length basis.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices).
Level 2 inputs include the following:
• quoted prices for similar (i.e. not identical) assets in active markets;
• quoted prices for identical or similar assets or liabilities in markets that are not
active. Characteristics of an inactive market include a significant decline in the
volume and level of trading activity, the available prices vary significantly over
time or among market participants or the prices are not current;
• inputs other than quoted prices that are observable for the asset (for example,
interest rates and yield curves observable at commonly quoted intervals); and
• inputs that are derived principally from, or corroborated by, observable market data
by correlation or other means (market-corroborated inputs).
Level 3 – Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The level in the fair value hierarchy within which the fair value measurement is
categorised in its entirety is determined on the basis of the lowest level input that is
significant to the fair value measurement in its entirety. If a fair value measurement
uses observable inputs that require significant adjustment based on unobservable inputs,
that measurement is a Level 3 measurement. Assessing the significance of a particular
input to the fair value measurement in its entirety requires judgement, considering
factors specific to the asset or liability.
As at 31 October 2022, 30 April 2022 and 31 October 2021 all of the Company’s investments
are classified as Level 1.
7 Reconciliation of net return before and after taxation to cash generated from
operations
┌────────────────────────────────────────────────────┬──────────┬────────┬──────────┐
│ │31 October│30 April│31 October│
│ │ │ │ │
│ │ 2022│ 2022│ 2021│
│ │ │ │ │
│ │ £’000│ £’000│ £’000│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Net return before taxation │ (8,279)│ (3,633)│ 1.057│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Taxation │ (16)│ (32)│ (13)│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Net return after taxation │ (8,295)│ (3,665)│ 1.044│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Net capital return │ 9,677│ 5,749│ (70)│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Decrease/(increase) in receivables │ 184│ (172)│ 119│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│(Decrease)/increase in payables │ (61)│ (3)│ 9│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Interest and expenses charged to the capital reserve│ (203)│ (485)│ (253)│
├────────────────────────────────────────────────────┼──────────┼────────┼──────────┤
│Cash generated from operations │ 1,302│ 1,424│ 849│
└────────────────────────────────────────────────────┴──────────┴────────┴──────────┘
8 Related party transactions
The Group’s investments are managed by Chelverton Asset Management Limited. The amounts
paid to the Investment Manager in the period to 31 October 2022 were £260,000 (year ended
30 April 2022: £314,000, six months to 31 October 2021: £331,000).
At 31 October 2022 there were amounts outstanding to be paid to the Investment Manager of
£55,000 (year ended 30 April 2022: £73,000, six months to 31 October 2021: £92,000).
Portfolio Investments
as at 31 October 2022
┌───────────────────────────┬─────────────────────────────────────┬───────────┬─────────┐
│ │ │Market │ % of│
│ │ │value │ │
├───────────────────────────┼─────────────────────────────────────┼───────────┼─────────┤
│Security │Sector │ £’000│portfolio│
├───────────────────────────┼─────────────────────────────────────┼────────┬──┴─────┬───┤
│Diversified Energy │Energy │ 1,761│ 3.6│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│iEnergizer │Industrial Goods & Services │ 1,631│ 3.3│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Belvoir Lettings │Real Estate │ 1,600│ 3.3│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│UP Global Sourcing Holdings│Consumer Products and Services │ 1,190│ 2.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Alumasc Group │Construction & Materials │ 1,152│ 2.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Coral Products │Industrial Goods & Services │ 1,085│ 2.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Kitwave Group │Personal Care, Drugs & Grocery Stores│ 1,060│ 2.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│MP Evans Group │Food, Beverage & Tobacco │ 1,015│ 2.1│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Chesnara │Insurance │ 998│ 2.0│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│ME Group │Consumer Products and Services │ 927│ 1.9│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Bloomsbury Publishing │Media │ 911│ 1.9│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│STV │Media │ 905│ 1.9│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Smiths News │Industrial Goods & Services │ 895│ 1.8│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Devro │Food, Beverage & Tobacco │ 894│ 1.8│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│MTI Wireless Edge │Telecommunications │ 864│ 1.8│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Curtis Banks Group │Financial Services │ 861│ 1.8│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Wilmington Group │Media │ 858│ 1.8│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Duke Royalty │Financial Services │ 853│ 1.7│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Redde Northgate │Industrial Goods & Services │ 831│ 1.7│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Ramsdens Holdings │Financial Services │ 830│ 1.7│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Appreciate Group │Financial Services │ 780│ 1.6│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Jarvis Securities │Financial Services │ 774│ 1.6│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Castings │Industrial Goods & Services │ 765│ 1.6│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Ecora Resources │Basic Resources │ 765│ 1.6│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Braemar Shipping Services │Industrial Goods & Services │ 730│ 1.5│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│R & Q Insurance │Insurance │ 730│ 1.5│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Clarke (T.) │Construction & Materials │ 708│ 1.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Fonix Mobile │Industrial Goods & Services │ 700│ 1.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Vector Capital │Financial Services │ 695│ 1.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Vertu Motors │Retail │ 683│ 1.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Regional REIT │Real Estate │ 668│ 1.4│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Hargreaves Services │Industrial Goods & Services │ 648│ 1.3│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Palace Capital │Real Estate │ 642│ 1.3│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Epwin Group │Construction & Materials │ 621│ 1.3│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│DFS Furniture │Retail │ 605│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Vistry Group │Media │ 603│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Severfield │Construction & Materials │ 600│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Close Brothers Group │Banks │ 589│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Orchard Funding Group │Financial Services │ 588│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Bakkavor │Food, Beverage & Tobacco │ 585│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│ 1 TheWorks.co.uk │Retail │ 579│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Finncap Group │Financial Services │ 569│ 1.2│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Essentra │Industrial Goods & Services │ 561│ 1.1│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Personal Group Holdings │Insurance │ 552│ 1.1│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│TP ICAP │Financial Services │ 552│ 1.1│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│DSW Capital │Financial Services │ 550│ 1.1│ │
├───────────────────────────┼─────────────────────────────────────┼────────┼────────┼───┤
│Strix Group │Industrial Goods & Services │ 538│ 1.1│ │
├───────────────────────────┼─────────────────────────────────────┴─┬──────┼────────┼───┤
│Polar Capital Holdings │Financial Services │ 526│ 1.1│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Premier Miton Group │Financial Services │ 510│ 1.0│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Crest Nicholson │Consumer Products and Services │ 505│ 1.0│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Town Centre Securities │Real Estate │ 504│ 1.0│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Tyman │Construction & Materials │ 480│ 1.0│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Hansard Global │Insurance │ 474│ 1.0│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Spectra Systems │Retail │ 461│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Springfield Properties │Consumer Products and Services │ 460│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Numis Corporation │Financial Services │ 450│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Liontrust Asset Management │Financial Services │ 426│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Headlam Group │Consumer Products and Services │ 421│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Kier Group │Construction & Materials │ 418│ 0.9│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Centaur Media │Media │ 403│ 0.8│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Chamberlin │Basic Resources │ 396│ 0.8│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Topps Tiles │Retail │ 383│ 0.8│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Marshalls │Construction & Materials │ 379│ 0.8│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Aferian │Telecommunications │ 352│ 0.7│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Marston’s │Travel & Leisure │ 351│ 0.7│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Sabre Insurance │Insurance │ 312│ 0.6│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Brown (N) Group │Retail │ 304│ 0.6│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Portmeirion Group │Consumer Products and Services │ 300│ 0.6│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Gattaca │Industrial Goods & Services │ 272│ 0.6│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│RTC Group │Industrial Goods & Services │ 249│ 0.5│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Synthomer │Chemicals │ 225│ 0.5│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Genuit Group │Construction & Materials │ 191│ 0.4│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Restaurant Group │Travel & Leisure │ 191│ 0.4│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Revolution Bars Group │Travel & Leisure │ 176│ 0.4│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Saga │Travel & Leisure │ 150│ 0.3│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Sancus Lending Group │Financial Services │ 149│ 0.3│ │
├───────────────────────────┼───────────────────────────────────────┼──────┼────────┼───┤
│Total Portfolio │ │48,919│ 100.0│ │
├───────────────────────────┼─────────────────────────────────────┬─┼──────┼──┬─────┼───┤
│ │ │ │ │ │ │ │
└───────────────────────────┴─────────────────────────────────────┴─┴──────┴──┴─────┴───┘
═════════════════════════════════════════════════════════════════════════════════════════
ISIN: GB0006615826, GB00BZ7MQD81
Category Code: IR
TIDM: SDVP
LEI Code: 213800DAF47EJ2HT4P78
Sequence No.: 204863
EQS News ID: 1500659
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
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============Recent news on Chelverton UK Dividend Trust
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AnnouncementREG - Chelverton UK DivTst - Net Asset Value(s)
AnnouncementREG - Chelverton UK DivTst - Net Asset Value(s)
AnnouncementREG - Chelverton UK DivTst - Net Asset Value(s)
AnnouncementREG - Chelverton UK DivTst - Net Asset Value(s)
Announcement