CHEVERTON UK DIVIDEND TRUST PLC

 

Half-Yearly Financial Report

For the six months ended 31 October 2019

 

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, together form the Group ('the Group'). The Group's funds are invested principally in mid and smaller capitalised UK companies. The portfolio comprises companies listed on the Official List and companies admitted to trading on AIM. The Group does not invest in other investment trusts or in unquoted companies. No investment is made in preference shares, loan stock or notes, convertible securities or fixed interest securities.

 

Financial Highlights

 

Capital	31 October 2019	30 April 2019	% change
Total gross assets (£'000)	56,734	62,032	(8.54)
Total net assets (£'000)	40,932	44,659	(8.35)
Net asset value per Ordinary share	196.32p	214.19p	(8.34)
Mid-market price per Ordinary share	182.50p	173.50p	5.19
Discount	(7.04%)	(19.00%)
Net asset value per Zero Dividend Preference share	107.57p	105.48p	1.98
Mid-market price per Zero Dividend Preference share	108.00p	110.00p	(1.82)
Premium	0.40%	4.29%
Revenue	Six months to 31 October 2019	Six months to 31 October 2018	% change
Return per Ordinary share	6.71p	7.15p	(6.15)
Dividends declared per Ordinary share*	4.80p	4.38p	9.59
Special dividends declared per Ordinary share	2.50p	0.66p	278.79
Total Return
Total return on Group net assets**	(4.94%)	12.16%

 

* Dividend per Ordinary share includes the first interim paid and second interim declared for the period to 31 October 2019 and 2018 and will differ from the amounts disclosed within the statement of changes in net equity, owing to the timings of payments.

 

** Adding back dividends distributed in the period.

 

Interim Management Report

 

Results

This half-yearly report covers the six months to 31 October 2019. The net asset value per Ordinary share at 31 October 2019 was 196.3p down from 214.2p at 30 April 2019, a decrease of 8.3% during the period compared to an increase of 0.8% in the MSCI Small Cap Index, and NAV now stands at 202.5p.

 

Since the beginning of the Company's financial year, the Ordinary share price has increased from 173.5p to 182.5p at 31 October 2019, an increase of 5.19%. Since the period end the shares have increased further to 191.0p, a percentage increase of 4.66% as at 2 December 2019 and the shares now trade on a reduced discount of 4.3%.

 

Dividend

Following 11 years of increase in the total annual core dividend paid by the Company, the first interim dividend for the current year of 2.40p (2018: 2.19p) per Ordinary share was paid on 1 October 2019. The Board has declared a second interim dividend of 2.40p per Ordinary share (2018: 2.19p) payable on 2 January 2020 to shareholders on the register on 13 December 2019, making a total for the half year of 4.80p per Ordinary share (2018: 4.38p) an increase of 9.6%. It is anticipated that the Company will maintain this level of dividend for the third quarter and will likewise maintain the same level for the fourth interim of 2.40p making a total core dividend of 9.60p for the year (2018: 8.97p) an increase of 7.0%.

 

Portfolio

In the last six months we have increased our investment in eighteen of our existing holdings (2018: 18), taking advantage of lower share prices and shares being available in Alumasc Group, Amino Technologies, Badcock International, Brewin Dolphin Holdings, Castings, Chesnara, Crest Nicholson, De La Rue, Devro, Essentra, GVC Holdings, McColls Retail Group, Northgate, Personal Group Holdings, Saga, Shoe Zone, STV and Town Centre Securities.

 

During the period we added four new names to the portfolio (2018: 3) - Close Brothers Group1, Tyman2, Vertu Motors3 and XPS Pensions4. Funds were raised from the outright sale of four of our holdings (2018: 4); Kcom Group, Mucklow (A&J), Sanderson Group and StatPro were taken over in the period. The following holdings were reduced as they grew to become larger weightings on lower yields: Clarke (T.), Titon Holdings and UP Global Sourcing Holdings.

 

Outlook

The shares of the companies in which the fund is invested have experienced a tough 18 months as smaller companies that pay increasing dividends and are labelled "value shares" have fallen further out of favour. In the last few months there has been some improvement as it is hoped that the whole Brexit process will reach resolution. The underlying performance of most of the companies has generally been positive with associated dividend growth. With the recent decline in the general market the number of attractive opportunities available to invest in has increased significantly and the portfolio has been increased to 75 holdings (2018: 73).

 

UK GDP growth has been very subdued for the past six months, although there are signs that UK Growth will be maintained and might, next year, start to gently accelerate.

 

As we write this report today the whole Brexit position of course remains unresolved. We are close to the General Election on 12 December 2019 and a great deal depends on the result of that. At this point no one can say what the position will be on 1 January 2020 however it is to be hoped that the "Brexit issue", which has progressively absorbed more and more time and attention, will be resolved in some manner. In the meantime our companies, for whom trading across border with the EU is a very small part of their sales, have been dragged down by this generally negative sentiment.

 

Reassuringly the dividends of the underlying companies continue to be increased and we believe that this will continue into 2020 with company balance sheets remaining in a strong state.

 

 

Chelverton Asset Management

6 December 2019

 

1 Close Brothers Group - financial services provider

2 Tyman - building materials manufacturer

3 Vertu Motors - automotive retailer

4 XPS Pensions - pensions actuarial, consulting and administration services

 

Principal Risks

 

The principal risks facing the Group are substantially unchanged since the date of the Annual Report for the year ended 30 April 2019 and continue to be as set out in that report on pages 10 to 11. Risks faced by the Group include, but are not limited to, market risk, discount volatility, regulatory risk, financial risk and risks associated with banking counterparties.

 

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:

 

1. 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
2. (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 6 December 2019 and the above responsibility statement was signed on its behalf by Lord Lamont, Chairman.

 

Condensed Consolidated Statement of Comprehensive Income (unaudited)

for the six months ended 31 October 2019

 

	Six months to 31 October 2018			Year to 30 April 2019			Six months to 31 October 2018
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
				(audited)
Losses on investments at fair value through profit or loss	-	(3,080)	(3,080)	-	(7,083)	(7,083)	-	(7,472)	(7,472)
Investment income	1,604	-	1,604	3,221	-	3,221	1,712	-	1,712
Investment management fee	(71)	(214)	(285)	(153)	(459)	(612)	(79)	(236)	(315)
Other expenses	(134)	(8)	(142)	(274)	(37)	(311)	(142)	(30)	(172)
Net surplus/(deficit) before finance costs and taxation	1,399	(3,302)	(1,903)	2,794	(7,579)	(4,785)	1,491	(7,738)	(6,247)
Finance costs
Preference shares	-	(302)	(302)	(1)	(582)	(583)	-	(290)	(290)
Net surplus/(deficit) before taxation	1,399	(3,604)	(2,205)	2,793	(8,161)	(5,368)	1,491	(8,028)	(6,537)
Taxation (see note 2)	-	-	-	-	-	-	-	-	-
Total comprehensive income/(expense) for the period	1,399	(3,604)	(2,205)	2,793	(8,161)	(5,368)	1,491	(8,028)	(6,537)

 

	Revenue	Capital		Total	Revenue	Capital	Total	Revenue	Capital	Total
	pence	pence	pence		pence	pence	pence	pence	pence	pence
Net return per: Ordinary share (see note 3)	6.71	(17.29)	(10.58)		13.40	(39.15)	(25.75)	7.15	(38.51)	31.36
Zero Dividend Preference share 2025 (see note 3)	-	2.08	2.08		-	4.02	4.02	-	2.00	2.00

 

The total column of this statement is the Statement of Comprehensive Income of the Group prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. 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 2019

 

	Share capital	Share premium account	Capital Redemption reserve	Capital reserve	Revenue reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Six months ended 31 October 2019
30 April 2019	5,213	17,517	5,004	12,925	4,000	44,659
Total comprehensive income/ (expense) for the period	-	-	-	(3,604)	1,399	(2,205)
Dividends paid (see note 4)	-	-	-	-	(1,522)	(1,522)
31 October 2019	5,213	17,517	5,004	9,321	3,877	40,932
Year ended 30 April 2019 (audited)
30 April 2018	5,188	17,301	5,004	21,086	3,215	51,794
Total comprehensive income/ (expense) for the period	-	-	-	(8,161)	2,793	(5,368)
Ordinary shares issued	25	228	-	-	-	253
Expenses of Ordinary share issue	-	(12)	-	-	-	(12)
Dividends paid	-	-	-	-	(2,008)	(2,008)
30 April 2019	5,213	17,517	5,004	12,925	4,000	44,659
Six months ended 31 October 2018
30 April 2018	5,188	17,301	5,004	21,086	3,215	51,794
Total comprehensive income/ (expense) for the period	-	-	-	(8,028)	1,491	(6,537)
Ordinary shares issued	25	215	-	-	-	240
Dividends paid (see note 4)	-	-	-	-	(1,094)	(1,094)
31 October 2018	5,213	17,516	5,004	13,058	3,612	44,403

 

Condensed Consolidated Balance Sheet (unaudited)

as at 31 October 2019

Non-current assets	31 October 2019 £'000	30 April 2019 £'000 (audited)	31 October 2018 £'000
Investments at fair value through profit or loss	56,239	59,895	58,571
Current assets
Trade and other receivables	259	447	313
Cash and cash equivalents	236	1,690	647
	495	2,137	960
Total assets	56,734	62,032	59,531
Current liabilities
Trade and other payables	(205)	(2,078)	(125)
	205	(2,078)	(125)
Total assets less current liabilities	56,529	59,954	59,406
Non-current liabilities
Zero Dividend Preference shares 2025	(15,597)	(15,295)	(15,003)
Total liabilities	(15,802)	(17,373)	(15,128)
Net assets	40,932	44,659	44,403
Represented by:
Share capital	5,213	5,213	5,213
Share premium account	17,517	17,517	17,516
Capital redemption reserve	5,004	5,004	5,004
Capital reserve	9,321	12,925	13,058
Revenue reserve	3,877	4,000	3,612
Equity shareholders' funds	40,932	44,659	44,403
Net asset value per: (see note 5)	pence	pence	pence
Ordinary share	196.32	214.19	212.96
Zero Dividend Preference share 2025	107.57	105.48	103.47

 

Condensed Consolidated Statement of Cash Flows (unaudited)

for the six months ended 31 October 2019

Operating activities	31 October 2019 £'000	30 April 2019 £'000 (audited)	31 October 2018 £'000
Investment income received	1,665	3,160	1,686
Investment management fee paid	(324)	(614)	(368)
Administration and secretarial fees paid	(32)	(72)	(40)
Other cash payments	(152)	(254)	(181)
Loan interest paid	-	(1)	-
Cash generated from operations (see note 7)	1,157	2,219	1,097
Purchases of investments	(7,021)	(9,841)	(6,220)
Sales of investments	5,932	10,032	5,588
Net cash inflow from operating activities	68	2,410	465
Financing activities
Issue of Zero Dividend Preference shares 2025	-	313	313
Expenses of C shares issue	-	-	(2)
Issue of ordinary shares	-	876	875
Expenses for redemption and issue of Zero Dividend Preference shares	-	-	(8)
Expenses of ordinary share issue	-	(12)	(13)
Dividends paid	(1,522)	(2,008)	(1,094)
Net cash (outflow)/inflow from financing activities	(1,522)	(831)	71
Change in cash and cash equivalents for period	(1,454)	1,579	536
Cash and cash equivalents at start of period	1,690	111	111
Cash and cash equivalents at end of period	236	1,690	647
Comprised of:
Cash and cash equivalents	236	1,690	647

 

Notes to the Condensed Half-Yearly Report

for the six months ended 31 October 2019

 

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 2019, 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 under International Financial Reporting Standards ('IFRS') 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 October 2019, except to any extent where it conflicts with IFRS.

 

The Group has considerable financial resources 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 2019. This report has also been prepared in compliance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.

 

2  Taxation

 

The Company has an effective tax rate of 0%. 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 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 £1,399,000 (30 April 2019: £2,793,000, 31 October 2018: £1,491,000) and on 20,850,000 (30 April 2019: 20,847,534, 31 October 2018: 20,845,109) 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 £3,604,000 (30 April 2019: capital loss of £8,161,000, 31 October 2018: capital loss of £8,028,000) and on 20,850,000 (30 April 2019: 20,847,534, 31 October 2018: 20,845,109) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

 

Zero Dividend Preference shares

Capital earnings per Zero Dividend Preference share 2025 is based on allocations from the Company of £302,000 (30 April 2019: £582,000, 31 October 2018: £290,000) and on 14,500,000 (30 April 2019: 14,489,863, 31 October 2018: 14,479,891) Zero Dividend Preference shares 2025 being the weighted average number of Zero Dividend Preference shares in issue during the period.

 

4  Dividends

 

During the period, a fourth interim dividend of 2.40p per Ordinary share and a special dividend of 2.50p per Ordinary share for the year ended 30 April 2019, together with a first interim dividend of 2.40p per Ordinary share for the year ending 30 April 2020, have been paid to shareholders.

 

In addition the Board has declared a second interim dividend of 2.40p per Ordinary share payable on 2 January 2020 to shareholders on the register at 13 December 2019 (ex-dividend 12 December 2019).

 

5  Net asset values

 

Ordinary shares

The net asset value per Ordinary share is based on assets attributable of £40,932,000 (30 April 2019: £44,659,000, 31 October 2018: £44,403,000) and on 20,850,000 (30 April 2019: 20,850,000, 31 October 2018: 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 £15,597,000 (30 April 2019: £15,295,000, 31 October 2018: £15,003,000) and on 14,500,000 (30 April 2019: 14,500,000, 31 October 2018: 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 2019, 30 April 2019 and 31 October 2018 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 2019 £'000	30 April 2019 £'000	31 October 2018 £'000
Net return before taxation	(2,205)	(5,368)	(6,537)
Taxation	-	-	-
Net return after taxation	(2,205)	(5,368)	(6,537)
Net capital return	3,604	8,161	8,028
Decrease/(increase) in receivables	45	(64)	(73)
Decrease in payables	(65)	(14)	(57)
Interest and expenses charged to the capital reserve	(222)	(496)	(264)
Cash generated from operations	1,157	2,219	1,097

 

8  Related party transactions

 

The Group's investments are managed by Chelverton Asset Management Limited, a company in which Mr van Heesewijk, a Director of the Company and the subsidiary, has an interest. The amounts paid to the Investment Manager in the period to 31 October 2019 were £285,000 (year ended 30 April 2019: £612,000, six months to 31 October 2018: £315,000).

 

At 31 October 2019 there were amounts outstanding to be paid to the Investment Manager of £83,000 (year ended 30 April 2019: £121,000, six months to 31 October 2018: £90,000).

 

Portfolio Investments

as at 31 October 2019

		Market value	% of
Security	Sector	£'000	portfolio
Diversified Gas & Oil	Oil & Gas Producers	1,926	3.4
Marston's	Travel & Leisure	1,726	3.1
Randall & Quilter	Nonlife Insurance	1,667	3.0
Belvoir Lettings	Real Estate Investment & Services	1,380	2.5
Strix Group	Electronic & Electrical Equipment	1,218	2.2
DFS Furniture	General Retailers	1,170	2.1
Crest Nicholson	Household Goods & Home Construction	1,165	2.1
Bloomsbury Publishing	Media	1,125	2.0
Galliford Try	Household Goods & Home Construction	1,099	2.0
UP Global Sourcing Holdings	Household Goods & Home Construction	1,095	1.9
Castings	Industrial Engineering	1,062	1.9
BCA Marketplace	Support Services	1,059	1.9
Northgate	Support Services	1,024	1.8
Go-Ahead Group	Travel & Leisure	1,022	1.8
Ramsdens Holdings	Financial Services	1,020	1.8
Restaurant Group	Travel & Leisure	992	1.8
Murgitroyd Group	Support Services	990	1.8
Jarvis Securities	Financial Services	984	1.7
STV	Media	965	1.7
Essentra	Support Services	953	1.7
Severfield	Industrial Engineering	945	1.7
Photo-me International	Leisure Goods	917	1.6
Shoe Zone	General Retailers	907	1.6
Polar Capital Holdings	Financial Services	901	1.6
Brown (N) Group	General Retailers	876	1.6
Flowtech Fluid Power	Industrial Engineering	832	1.5
Brewin Dolphin Holdings	Financial Services	831	1.5
Babcock International	Support Services	830	1.5
Alumasc Group	Construction & Materials	820	1.5
GVC Holdings	Travel & Leisure	801	1.4
Clarke (T.)	Construction & Materials	792	1.4
Regional REIT	Real Estate Investment Trusts	790	1.4
Epwin Group	Construction & Materials	788	1.4
XP Power	Electronic & Electrical Equipment	786	1.4
Braemar Shipping Services	Industrial Transportation	780	1.4
Town Centre Securities	Real Estate Investment Trusts	773	1.4
Personal Group Holdings	Nonlife Insurance	765	1.4
Appreciate Group	Financial Services	750	1.3
Palace Capital	Real Estate Investment & Services	702	1.2
Premier Miton Group	Financial Services	700	1.2
Headlam Group	Household Goods & Home Construction	698	1.2
Close Brothers Group	Banks	691	1.2
Chesnara	Life Insurance	649	1.2
Devro	Food Producers	640	1.1
Amino Technologies	Technology Hardware & Equipment	636	1.1
Wilmington Group	Media	636	1.1
Kin and Carta	Support Services	618	1.1
Vertu Motors	General Retailers	606	1.1
Bakkavor	Food Producers	592	1.0
XPS Pensions	Financial Services	590	1.0
Numis Corporation	Financial Services	575	1.0
Low & Bonar	General Industrials	569	1.0
RPS Group	Support Services	563	1.0
McColl's Retail Group	Food & Drug Retailers	546	1.0
Centaur Media	Media	544	1.0
Orchard Funding Group	Financial Services	540	1.0
RTC Group	Support Services	520	0.9
Finncap Group	Financial Services	480	0.9
De La Rue	Support Services	471	0.8
Saga	General Retailers	469	0.8
Foxtons Group	Real Estate Investment & Services	459	0.8
Gattaca	Support Services	452	0.8
Sabre Insurance	Nonlife Insurance	443	0.8
Tyman	Construction & Materials	424	0.8
DX Group	Industrial Transportation	383	0.7
Hansard Global	Life Insurance	370	0.7
Connect Group	Support Services	361	0.6
Coral Products	General Industrials	360	0.6
Moss Bros Group	General Retailers	360	0.6
Revolution Bars Group	Travel & Leisure	315	0.6
Kier Group	Construction & Materials	283	0.5
Anglo African Oil & Gas	Oil & Gas Producers	168	0.3
Titon Holdings	Construction & Materials	115	0.2
GLI Finance	Financial Services	100	0.2
Chamberlin	Industrial Engineering	85	0.1
Total Portfolio		56,239	100.0

 

Breakdown of portfolio by industry

 

Travel & Leisure 8.7%

Technology Hardware & Equipment 1.1%

Support Services 13.9%

Real Estate Investment Trusts 2.8%

Real Estate Investment &

Services 4.5%

Oil & Gas Producers 3.7% Nonlife Insurance 5.2%

Media 5.8%

Life Insurance 1.9%

Leisure Goods 1.6

Banks 1.2%

Construction & Materials 5.8%

Electronic & Electrical Equipment 3.6% Financial Services 13.2%

Food & Drug Retailers 1.0% Food Producers 2.1% General Industrials 1.6%

General Retailers 7.8%

Household Goods & Home Construction 7.2%

Industrial Engineering 5.2% Industrial Transportation 2.1%

 

Shareholder Information

 

Financial calendar

Group's year end	30 April
Quarterly dividends paid	July, October, January and April
Annual results announced	July
Annual General Meeting	September
Group's half year	31 October
Half-Year results announced	December

 

Share prices and performance information

The Company's Ordinary (SDV.L) and Zero Dividend Preference shares (SDVP.L) are listed on the London Stock Exchange Main Market.

 

The net asset values are announced daily to the London Stock Exchange and published monthly via the AIC.

 

Information about the Group can be obtained on the Chelverton website at www.chelvertonam.com. Any enquiries can also be e-mailed to cam@chelvertonam.com.

 

Share register enquiries

The register for the Ordinary shares and Zero Dividend Preference shares are maintained by Share Registrars Limited. In the event of queries regarding your holding, please contact the Registrar on 01252 821390. Changes of name and/or address must be notified in writing to the Registrar.

 

Capital Structure

 

Chelverton UK Dividend Trust PLC ('the Company')

Chelverton UK Dividend Trust PLC was registered on 3 September 2003 with number 0374956. The Company has in issue one class of Ordinary share. In addition, it has a wholly owned subsidiary SDV 2025 ZDP PLC, which was registered on 25 October 2017 with number 11031268, through which Zero Dividend Preference shares have been issued.

 

Ordinary shares of 25p each (SDV.L) - 20,850,000 in issue as at 31 October 2019

The Company has only one class of share and this figure represents 100% of the Company's share capital and voting rights.

 

Dividends

Holders of Ordinary shares are entitled to dividends.

 

Capital

On a winding-up of the Company, Ordinary shareholders will be entitled to all surplus assets of the Company available after payment of the Company's liabilities including the capital entitlement of the Zero Dividend Preference shares.

 

Voting

Each holder, on a show of hands, will have one vote and on a poll will have one vote for each Ordinary share held.

 

SDV 2025 ZDP PLC ('SDVP')

 

Ordinary shares of 100p each ( SDVP.L) - 50,000 in issue (partly paid up as to 25p each)

The ordinary shares are wholly owned by the Company. References to Ordinary shares within this Half-Yearly Report are to the Ordinary shares of Chelverton UK Dividend Trust PLC.

 

Capital

Following payment of any liabilities and the capital entitlement to the Zero Dividend Preference shareholders, ordinary shareholders are entitled to any surplus assets of SDVP.

 

Voting

Each holder, on a show of hands, will have one vote and on a poll will have one vote for each ordinary share held.

 

Zero Dividend Preference shares of 100p each - 14,500,000 in issue as at 31 October 2019

 

Dividends

Holders of Zero Dividend Preference shares are not entitled to dividends.

 

Capital

On a winding up of SDVP, after the satisfaction of prior ranking creditors and subject to sufficient assets being available, Zero Dividend Preference shareholders are entitled to an amount equal to 100p per share increased daily from 8 January 2018 at such compound rate as will give an entitlement to 133.18 pence per share at 30 April 2025.

 

Voting

Each holder of Zero Dividend Preference shares on a show of hands will have one vote at meetings where Zero Dividend Preference Shareholders are entitled to vote and on a poll will have one vote for each Zero Dividend Preference share held.

 

Holders of Zero Dividend Preference shares are not entitled to attend, speak or vote at General Meetings unless the business of the meeting includes a resolution to vary, modify or abrogate the rights attached to the Zero Dividend Preference shares.

 

Directors and Advisers

 

Directors	Lord Lamont of Lerwick (Chairman) William van Heesewijk Howard Myles Andrew Watkins
Investment Manager	Chelverton Asset Management Limited 11 Laura Place Bath BA2 4BL Tel: 01225 483030
Secretary and Registered Office	Maitland Administration Services Limited Hamilton Centre Rodney Way Chelmsford Essex CM1 3BY Tel: 01245 398950
Registrar and Transfer Office	Share Registrars Limited The Courtyard 17 West Street Farnham Surrey GU9 7DR Tel: 01252 821390 www.shareregistrars.uk.com
Auditors	Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT
Brokers	Shore Capital Cassini House 57 St James's Street London SW1A 1LD
Custodian	Jarvis Investment Management Limited 78 Mount Ephraim Tunbridge Wells Kent TN4 8BS

 

Registered in England
No. 3749536

A member of the Association of Investment Companies