TIDMCGW
RNS Number : 9808N
Chelverton Growth Trust PLC
26 May 2020
Chelverton Growth Trust PLC
LEI: 213800I86P8BAE6UVI83
Half Yearly Report
For the six months ended 29 February 2020
The Directors announce the unaudited Half Yearly Report for the
period 1 September 2019 to 29 February 2020.
Investment objective and policy
The Company's objective is to provide capital growth through
investment in companies listed on the Official List and traded on
the Alternative Investment Market ("AIM") with a market
capitalisation at the time of investment of up to GBP50 million,
which the Manager believes to be at a "point of change". The
Company will invest in unquoted investments where it is believed
that there is a likelihood of the shares becoming listed or traded
on AIM or the investee company being sold. Its investment objective
is to increase the net asset value per share at a higher rate than
other quoted smaller company trusts and the MCSI Small Cap UK
Index.
It is the Company's policy not to invest in any listed
investment companies (including listed investment trusts). At the
Annual General Meeting held on 12 December 2019, Shareholders voted
to amend the Company's Investment Policy to state that the
Company:
-- may participate in a CEPS placing (if it were to have one);
-- will liquidate its various other investments when it is felt appropriate to do so;
-- will repay the Jarvis Loan; and
-- will pay all outstanding liabilities.
Investment strategy
Investments are selected for the portfolio only after extensive
research which the Investment Manager believes to be key. The whole
process through which equity must pass in order to be included in
the portfolio is very rigorous. Only a security where the
Investment Manager believes that the price will be significantly
higher in the future will pass the selection process. The
Investment Manager believes the key to successful stock selection
is to identify the long-term value of a company's shares and to
have the patience to hold the shares until that value is
appreciated by other investors. Identifying long-term value
involves detailed analysis of a company's earnings prospects over a
five-year time horizon.
The Company's Investment Manager is Chelverton Asset Management
Limited, an investment manager focusing exclusively on achieving
returns for investors based on UK investment analysis of the
highest quality. The founder and employee owners of Chelverton
include experienced investment professionals with strong investment
performance records who believe rigorous fundamental research
allied to patience is the basis of long-term investment
success.
Chairman's Report
I sincerely hope that all our Shareholders are safe and well in
these very difficult and strange times.
Writing this report now feels very strange as we had expected to
see some significant progress in our investments and a recognition
of the underlying value within the portfolio. This progress has
been put on hold until such time as a move back to normality has
commenced. However, it is important to stress that our investee
companies have taken all the steps that can be taken to ensure
that, when this happens, they are ready to implement, as
appropriate, their growth and development plans.
In the period covered by this report, we saw an end to the three
years of the Brexit saga, which weighed heavily on UK companies
and, in particular on small companies' share valuations. The
election of Boris Johnson as Prime Minister with a clear working
majority and completion of the UK's exit from the European Union
gave a backcloth for a reappraisal and potential recovery in small
company valuations. Unfortunately, as a result of the arrival of
Covid-19, at the end of February we have had to deal instead with
the effects of the unprecedented lockdown.
Our Investment Manager has of course spoken to the management
teams at our underlying investments and to their knowledge, people
are safe and well. It is important to stress, that whatever actions
are taken from this point there must be full regard to the
importance of people's overall safety and welfare.
Financial Performance
Your Company has seen an increase in the net asset value per
share from 44.79p at 31 August 2019 to 46.43p at 28 February 2020,
an increase of 3.66%. Whilst in general, the underlying performance
of the individual investments has been as expected, the sentiment
towards UK publicly quoted equites, and in particular the small
companies and micro-cap companies, remains negative.
Over the same period, the AIM All-share index has fallen by
1.71% whilst the Company's comparative index, the MSCI Small Cap UK
index rose by some 0.58%. The Company's share price has decreased
from 40.50p to 37.00p per share and the shares were therefore
trading at a discount of 20.31% at the period end.
Since the period end, the net asset value per share has declined
to 42.72p as at 30 April 2020, reflecting the market turmoil,
precipitated by the introduction of the lockdown and the
unprecedented events currently unfolding in the United Kingdom.
Markets hate uncertainty, and, unfortunately, we are living in
very uncertain times, which have borne down on the valuations of UK
equities. By the same token, when the situation is resolved, the
removal of the uncertainty should lead to a reappraisal of
prospects and valuations. Ironically, because our portfolio is in
small, highly UK-centric businesses, as long as we remain confident
that the UK will recover, then our companies should prosper over
time.
There remains of course a whole range of other real concerns in
the World. These include: the ongoing trade disputes and
introduction of tariffs by the United States and any subsequent
retaliatory actions by China and the European Union; the severe
financial issues within the European Union concerning the funding
of member states, in particular Italy and Spain; and the recently
publicised differences between Germany and the European Central
Bank.
Investments
CEPS is the largest investment in the portfolio, and I would
remind Shareholders that this is a diversified AIM traded holding
company that owns majority shareholdings in four UK subsidiary
businesses. Your Investment Manager, and my fellow Board member,
David Horner is chairman of the company and has a similar sized
shareholding to that of Chelverton Growth Trust. CEPS is being
built up by the growth of the underlying companies and by strategic
"bolt-on" acquisitions. During the period, one of the subsidiaries
was unfortunately placed into administration when the board of CEPS
decided that it was unable to justify continuing to support it.
The remaining companies all made progress and it was expected
that 2020 was going to be a year in which their underlying positive
trading results would become evident. However, it now looks like
this will be delayed until 2021.
Touchstar, Petards and Universe are all making progress, and
appear, on a one-year view, to be undervalued, particularly with
the general market reduction in all share prices.
MTI Wireless Edge has seen a strong recovery over the past two
years and the shares were recently sold, post the period end, with
the proceeds used to partly repay debt.
We took a proactive position on Plutus Powergen where we, and
the market, had become very concerned by the actions, or more
precisely inaction of its board. With others we put forward
resolutions to replace the board and we had a clear plan as to how
to put the company on a stable footing. Unfortunately, the
incumbent board and its supporters narrowly won the day and has
subsequently, effectively closed the company down. After the period
end, Chelverton Growth Trust has sold its holding for a nominal
sum.
Looking at the unquoted holdings, Chelverton Asset Management,
the Investment Managers of the Company, had a solid six months
growing funds under management and paying an increased dividend.
Following the precipitous decline across the stock market in
mid-March, funds under management have declined. However, as the
position has become generally clearer, there has been a strong
recovery.
Last year we announced that Main Dental Partners had been
conditionally purchased by Spa Dental pending the resolution of a
court case brought by the previous managing director. This case was
duly won by the company; however, the appellant has now lodged an
appeal. It is not known at this time whether this right to appeal
will be granted. In the meantime, given the nature of the business,
all of the surgeries have been closed down and staff furloughed.
Nevertheless, going forward, there will still be demand for dental
treatment.
On a brighter point, La Salle Education, a business involved in
supplying schools with the modern mathematics syllabus via the
internet, has been deeply involved in providing services to many
schools. Also, Pedalling Forth (trading as Velovixen) an internet
retailer of women's cycling clothing has enjoyed a big uplift in
sales; it is to be hoped that this will be sustained once the
Country gets through the current situation.
Outlook
It is impossible to make any kind of forecast at this time other
than to say that gradually, the economy and society will move
towards a new settled outcome. This new situation will resemble
what the position was before the arrival of Covid 19, but almost
certainly will not be the same.
Every day, as businesses adapt to and resolve the constraints
placed upon them by the virus, more and more people are going back
to work. We believe that there will initially be a sharp upturn
followed, over time, by a slower growth in economic activity, as
the economy strives to recover losses caused by the reaction to
Covid-19.
It is undoubtedly the case that unemployment will rise, partly
as a result of the severe economic jolt caused by the lockdown, but
also as a result of a change in working patterns and a drive to
greater efficiencies. Given the UK economy had been operating at
effectively full employment for the past few years this is not
surprising and in some cases is to be welcomed.
It is the Board's ongoing intention to return funds to
Shareholders by way of annual tender offers. These can only be
carried out in a meaningful and cost-effective manner when the
Company has significant cash resources. At the moment the Company
is largely fully invested and therefore the ninth tender offer will
be delayed until we believe the share price better reflects the
underlying value of the investments and significant sums have been
realised from one or more holdings. Further sales of existing
investments will take place once the Board's perception of the real
value is restored.
The Board is actively considering the future of the Company and
how best to return value to Shareholders in the most effective and
tax-efficient manner.
Kevin Allen
Chairman
26 May 2020
Interim management report
The important events that have occurred during the period under
review and the key factors influencing the financial statements are
set out in the Chairman's Report. The Board considers that the
principal risks and uncertainties facing the Company, other than as
set out below, remain the same as those disclosed in the Annual
Report for the year ended 31 August 2019 on pages 12 and 13 and
pages 49 and 50. These risks include, but are not limited to,
market risk, discount volatility risk, regulatory risk, financial
risk and liquidity risk.
Global Pandemic
Given recent events, Covid 19 has emerged as a significant risk
which has impacted global commercial activities. The Board has been
monitoring the development of the pandemic and has considered the
impact it has had to date and assessed the impact it may have in
the future. The Chairman's Statement covers this in more detail and
the Board is actively liaising with the Investment Manager to
obtain a full understanding of its effect on the investee
companies.
Responsibility statement
The Directors are responsible for preparing the unaudited Half
Yearly Report in accordance with applicable law and regulations.
The Directors confirm that to the best of their knowledge:
The condensed set of financial statements for the six months to
29 February 2020, has been prepared in accordance with FRS 104
"Interim Financial Reporting", gives a fair view of the assets,
liabilities, financial position and profit of the Company; and
this Half Yearly Report includes a fair review of the
information required by;
rule 4.2.7R of the Disclosure and Transparency Rules being an
indication of 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
rule 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 Company
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 26 May 2020 and the above responsibility statement was signed on
its behalf by:
Kevin Allen
Chairman
Portfolio review
as at 29 February 2020
The Company's portfolio is set out below.
Investment Sector Valuation % of
GBP'000 total
portfolio
AIM Traded
CEPS Support Services 1,518 51.2
Trading holding company for a number of
companies supplying services and products
Technology Hardware &
MTI Wireless Edge Equipment 240 8.1
Developer and manufacturer of sophisticated
antennas and antenna systems
Petards Group Support Services 160 5.4
Development, provision and maintenance
of advance security systems and related
services
Plutus Powergen Flexible Energy Supply 23 0.8
Providers of management infrastructure
and expertise to operate power plants and
provide flexible electricity generation
Technology Hardware &
Touchstar Equipment 332 11.2
Software systems for warehousing and distribution
Universe Group Support Services 33 1.1
Provision of credit fraud prevention, loyalty
and retail systems
Fully Listed
Zenith Energy Oil & Gas Producers 21 0.7
International energy production and exploration
company
Nasdaq Traded
Touchpoint Group Support Services
Holdings - -
(formerly One Horizon Group)
Provider of mobile satellite communications
equipment and airtime
---------- ----------
2,327 78.5
Unquoted
Chelverton Asset
Management Holdings Support Services 220 7.4
Investment management, including providing
services to Chelverton Growth Trust Plc
La Salle Education Support Services 260 8.7
A UK based company dedicated to improving
mathematics education
P edalling Forth General Retailers 160 5.4
Internet retailer of cycling clothing for
women
Redecol* Healthcare Equipment
& Services - -
A medical device company focused on the
development of asthma monitoring
Portfolio valuation 2,967 100.0
---------- ----------
* Shares received from the purchase of Anaxsys Technology by
Redecol Limited
Portfolio holdings
as at 29 February 2020
29 February 31 August 2019
2020
Valuation % of Valuation % of
total total
Investment GBP'000 portfolio GBP'000 portfolio
CEPS 1,518 51.2 1,214 43.3
Touchstar 332 11.2 298 10.6
La Salle Education 260 8.7 130 4.6
MTI Wireless Edge 240 8.1 176 6.3
Chelverton Asset Management
Holdings 220 7.4 220 7.9
Pedalling Forth 160 5.4 200 7.1
Petards Group 160 5.4 380 13.5
Universe Group 33 1.1 34 1.2
Plutus Powergen 23 0.8 93 3.3
Zenith Energy 21 0.7 63 2.2
Touchpoint Group Holdings
(formerly One Horizon
Group) - - - -
Redecol* - - - -
Total 2,967 100.0 2,808 100.0
---------- ---------- ---------- ----------
* Shares received from the purchase of Anaxsys Technology by
Redecol Limited
Portfolio breakdown by sector and by index
as at 29 February 2020
Sector distribution % of total
Support Services 73.8
Technology Hardware & Equipment 19.3
General Retailers 5.4
Flexible Energy Supply 0.8
Oil & Gas Producers 0.7
Index distribution % of total
AIM 77.8
Unquoted 21.5
Fully listed 0.7
Income statement (unaudited)
for the six months to 29 February 2020
Six months to Year to Six months to
29 February 2020 31 August 2019 28 February 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains/(losses)
on investments
at fair value
(note 4) - 159 159 - (682) (682) - (505) (505)
Income (note
2) 24 - 24 22 - 22 10 - 10
Investment
management
fee* (3) (8) (11) (9) (26) (35) (4) (13) (17)
Other expenses (71) (12) (83) (138) (24) (162) (71) (12) (83)
--------- -------- -------- --------- ---------- ---------- --------- ---------- ----------
Net (loss)/
return on
ordinary
activities
before taxation (50) 139 89 (125) (732) (857) (65) (530) (595)
Taxation
on ordinary
activities - - - - - - - - -
--------- -------- -------- --------- ---------- ---------- --------- ---------- ----------
Net
(loss)/return
on ordinary
activities
after taxation (50) 139 89 (125) (732) (857) (65) (530) (595)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
pence pence pence pence pence pence pence pence pence
(Loss)/return
per Ordinary
share** (0.91) 2.54 1.63 (2.29) (13.41) (15.70) (1.18) (9.71) (10.89)
The total column of this statement is the statement of
comprehensive income of the Company prepared in accordance with
Financial Reporting Standards ("FRS"). The supplementary revenue
return and capital return columns are prepared in accordance with
the Statement of Recommended Practice issued in October 2019 by the
Association of Investment Companies ("AIC SORP").
All revenue and capital items in the above statement derive from
continuing operations.
The revenue column of the Income statement includes all income
and expenses. The capital column includes the realised and
unrealised profit or loss on investments and 75% of the management
fee and finance costs charged to capital.
* With effect from 1 November 2019, the Investment Management
fee was reduced from 1.0% per annum of gross assets to 0.5% per
annum of gross assets.
** The return per Ordinary share is based on 5,460,301 (31
August 2019: 5,460,301; 28 February 2019: 5,460,301) shares, being
the weighted average number of shares in issue during the
period.
Statement of changes in equity (unaudited)
for the six months to 29 February 2020
Called Capital
up share Special Capital redemption Revenue
capital reserve* reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Six months to 29 February 2020
1 September 2018 55 787 1,111 134 359 2,446
Net return/( loss)
after taxation for
the period - - 139 - (50) 89
---------- ----------- ---------- ------------ ---------- ----------
29 February 2020 55 787 1,250 134 309 2,535
---------- ----------- ---------- ------------ ---------- ----------
Year to 31 August 2019
1 September 2018 55 787 1,843 134 484 3,303
Net loss after taxation
for the year - - (732) - (125) (857)
---------- ----------- ---------- ------------ ---------- ----------
31 August 2019 55 787 1,111 134 359 2,446
---------- ----------- ---------- ------------ ---------- ----------
Six months to 28 February 2019
1 September 2018 55 787 1,843 134 484 3,303
Net loss after taxation
for the period - - (530) - (65) (595)
---------- ----------- ---------- ------------ ---------- ----------
28 February 2019 55 787 1,313 134 419 2,708
---------- ----------- ---------- ------------ ---------- ----------
*The Special reserve was created by the cancellation of the
share premium account by order of the High Court on 20 January
2016.
Distributable reserves: The Special reserve and Revenue reserve
can be used for the purchase of the Company ' s Ordinary shares.
Statement of financial position (unaudited)
as at 29 February 2020
As at 29 As at 31 As at 28
February August February
2020 2019 2019
GBP'000 GBP'000 GBP'000
Fixed assets
Investments at fair
value
(note 4) 2,967 2,808 3,073
Current assets
Debtors 150 145 2
Cash at bank 42 125 255
-------------------------- -------------------------- --------------------------
192 270 257
-------------------------- -------------------------- --------------------------
Creditors - amounts falling due within one year
Creditors (24) (32) (22)
Short-term loans (note
5) (600) (600) (600)
-------------------------- -------------------------- --------------------------
(624) (632) (622)
-------------------------- -------------------------- --------------------------
Net current
(liabilities)/assets (432) (362) (365)
-------------------------- -------------------------- --------------------------
Net assets 2,535 2,446 2,708
-------------------------- -------------------------- --------------------------
Share capital and reserves
Called up share
capital 55 55 55
Special reserve 787 787 787
Capital reserve 1,250 1,111 1,313
Capital redemption
reserve 134 134 134
Revenue reserve 309 359 419
-------------------------- -------------------------- --------------------------
Equity shareholders'
funds 2,535 2,446 2,708
--------------------------
Net asset value per
Ordinary
share (note 6) 46.43p 44.79p 49.59p
-------------------------- -------------------------- --------------------------
Statement of cash flows (unaudited)
for the six months to 29 February 2020
Six months Six months
to Year to to
29 February 31 August 28 February
2020 2019 2019
GBP' 000 GBP' 000 GBP' 000
Cash flows from operating activities
Net return/(loss) on ordinary
activities 89 (857) (595)
Adjustment for:
Net capital (return)/loss (139) 732 530
Expenses charged to capital (20) (50) (25)
Interest paid 16 32 16
(Decrease)/increase in creditors (8) 2 (8)
(Increase)/decrease in debtors (5) (136) 7
Cash used in operations (67) (277) (75)
--------------- ---------------- ---------------
Cash flows from investing activities
Purchase of investments - (146) (96)
Proceeds from sale of investments - 141 3
--------------- ---------------- ---------------
Net cash used in investing
activities - (5) (93)
--------------- ---------------- ---------------
Cash flows from financing activities
Interest paid (16) (32) (16)
--------------- ---------------- ---------------
Net cash used in financing
activities (16) (32) (16)
--------------- ---------------- ---------------
Net decrease in cash (83) (314) (184)
--------------- ---------------- ---------------
Cash at the beginning of
the period 125 439 439
--------------- ---------------- ---------------
Cash at the end of the period 42 125 255
--------------- ---------------- ---------------
1 Accounting Policies
a) Statement of compliance
The Company's Financial Statements for the period ended 29
February 2020 have been prepared under UK Generally Accepted
Accounting Practice (UK GAAP) and the Statement of Recommended
Practice, 'Financial Statements of Investment Trust Companies and
Venture Capital Trusts' issued in October 2019 ('the SORP') by the
Association of Investment Companies.
The financial statements have been prepared in accordance with
the accounting policies set out in the statutory accounts for the
year ended 31 August 2019.
b) Financial information
The financial information contained in this report does not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The financial information for the period ended
29 February 2020 and 28 February 2019 have not been audited or
reviewed by the Company's Auditor pursuant to the Auditing
Practices Board guidance on such reviews. The information for the
year to 31 August 2019 has been extracted from the latest published
Annual Report and Financial Statements, which have been lodged with
the Registrar of Companies, contained an unqualified auditors'
report and did not contain a statement required under Section 498
(2) or (3) of the Companies Act 2006.
c) Going concern
The Company's assets consist mainly of equity shares in
companies which, in most circumstances are realisable within a
short timescale. The Directors believe that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going
concern basis in preparing the accounts. In assessing the Company's
ability to continue as a going concern, the Board has fully
considered the impact of the current pandemic.
2 Income
Six months Year to Six months
to to
29 February 31 August 28 February
2020 2019 2019
GBP'000 GBP'000 GBP'000
Income from investments
UK net dividend income 16 17 10
Loan stock interest 8 5 -
Total income 24 22 10
------------ --------------- -----------------
3 Taxation
The tax charge for the six months to 29 February 2020 is nil
(year to 31 August 2019: nil; six months to 28 February 2019:
nil).
The Company has an effective tax rate of 0% for the year ending
31 August 2020. The estimated effective tax rate is 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.
4 Investments
29 31 28
February August February
Fully AIM 2020 2019 2019
Listed quoted Unquoted NASDAQ Total Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Opening book
cost 118 4,236 773 166 5,293 5,472 5,472
Opening
investment
holding losses (55) (2,041) (223) (166) (2,485) (1,987) (1,987)
------------ ----------------------- -------------- ------------ -------------- ------------- --------------
63 2,195 550 - 2,808 3,485 3,485
Movements in
the period:
Purchases at
cost - - - - - 146 96
Sales proceeds - - - - - (141) (3)
(Losses)/gains
on sales - - - - - (184) 3
Movement in
investment
holding losses (42) 111 90 - 159 (498) (508)
------------ ----------------------- -------------- ------------ -------------- -------------
Closing
valuation 21 2,306 640 - 2,967 2,808 3,073
------------ ----------------------- -------------- ------------ -------------- ------------- --------------
Closing book
cost 118 4,236 773 166 5,293 5,293 5,568
Closing
investment
holding losses (97) (1,930) (133) (166) (2,326) (2,485) (2,495)
------------ --------------
Closing
valuation 21 2,306 640 - 2,967 2,808 3,073
------------ --------------
Analysis of capital gains
and losses
Realised
(losses)/gains
on sales - - - - - (184) 3
Movement in
fair value
of investments (42) 111 90 - 159 (498) (508)
------------ ----------------------- -------------- ------------ -------------- ------------- --------------
(42) 111 90 - 159 (682) (505)
------------ ----------------------- -------------- ------------ -------------- ------------- --------------
Fair value hierarchy
In accordance with FRS 102 and FRS 104 the Company must disclose
the fair value hierarchy of financial instruments.
The fair value hierarchy consists of the following three classifications:
Level 1 - Valued using quoted prices in active markets for
identical assets or liabilities. This is usually the bid price.
Level 2 - Valued by reference to valuation techniques using
observable inputs other than quoted prices included within
Level 1.
Level 3 - Valued by reference to valuation techniques using
inputs that are not based on observable market data.
Details of the Company's financial instruments are shown in the
Portfolio Review including financial instruments which fall into
Level 3 shown under the section heading "Unquoted". A summary
reconciliation of the fair value movements of Level 3 investments
is shown in the table above.
Financial assets at fair value through profit or loss;
Level 1 Level 2 Level 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
At 29 February
2020
Equity investments 2,327 - 640 2,967
-------- -------- -------- --------
Total 2,327 - 640 2,967
-------- -------- -------- --------
At 31 August 2019
Equity investments 2,258 - 550 2,808
-------- -------- -------- --------
Total 2,258 - 550 2,808
-------- -------- -------- --------
At 28 February
2019
Equity investments 2,345 - 728 3,073
-------- -------- -------- --------
Total 2,345 - 728 3,073
-------- -------- -------- --------
5 Short term loans
On 4 June 2018, the Company entered in to a GBP600,000 loan
agreement with Jarvis Securities plc. Interest is payable monthly
in arrears at the rate of 4.5% above the Bank of England base
rate.
The loan was drawn down on 4 June 2018 and at the period end
GBP600,000 was outstanding.
6 Net asset value
The basic net asset value per Ordinary share is based on net
assets of GBP2,535,000 (31 August 2019: GBP2,446,000; 28 February
2019: GBP2,708,000) and on 5,460,301 Ordinary shares (31 August
2019: 5,460,301; 28 February 2019: 5,460,301) being the number of
Ordinary shares in issue at the period end. No shares are held in
Treasury.
7 Related party transactions
Under the terms of the agreement dated 28 June 2001, the Company
has appointed Chelverton Asset Management Limited to be the
Investment Manager. Mr Horner, a Director of the Company, is also a
director of Chelverton Asset Management Limited and chairman of
CEPS in which the Company holds an investment as set out above. Mr
Martin is the chairman of Touchstar in which the Company holds an
investment as set out above.
At 29 February 2020, there was GBP1,300 (31 August 2019:
GBP2,600; 28 February 2019: GBP2,800) payable to the Investment
Manager.
The three Directors also have individual holdings in Chelverton
Asset Management Holdings, a company which has Mr Horner as a
director and which the Company also has a direct holding. The
Directors' holdings are detailed below.
Percentage of
Ordinary shares Ordinary shares
held held
GBP' 000 %
K J Allen 1 1
D A Horner* 56 56
I P Martin 2 2
* Director and connected persons
total holdings.
8 Post balance sheet events
On 11 May 2020, following the disposal of MTI Wireless Edge, the
Company repaid GBP280,000 of its GBP600,000 loan from Jarvis
Securities plc leaving a balance of GBP320,000 outstanding.
In recent months Covid 19 has emerged as a significant risk.
Details of the impact on the Company are given in the Chairman's
Report and in the Interim management report above.
Information about the Company can be obtained at the Investment
Manager's website at www.chelvertonam.com. Neither the contents of
the manager's website nor the contents of any website accessible
from hyperlinks on this announcement (or any other website
incorporated into, or forms part of this announcement.
An investment company as defined under Section 833 of the Companies Act 2006.
REGISTERED IN ENGLAND No 02989519
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