Final Results
29 October 2003 - 8:38PM
UK Regulatory
CHELVERTON GROWTH TRUST PLC
PRELIMINARY ANNOUNCEMENT OF RESULTS
The Directors announce the unaudited statement of results for the year ended 31
August 2003 as follows:-
SUMMARISED CONSOLIDATED STATEMENT OF TOTAL RETURN
(*incorporating the revenue account) of the Group
1 September 2002 1 September 2001
to 31 August 2003 to 31 August 2002
Revenue Capital Total Revenue Capital Total
�'000 �'000 �'000 �'000 �'000 �'000
Gains/(losses) on - 1,315 1,315 - (1,017) (1,017)
investments
Income 65 - 65 85 - 85
Investment management (32) (95) (127) (32) (95) (127)
fee
Other expenses (211) (17) (228) (200) (4) (204)
Net return before
finance
costs and taxation (178) 1,203 1,025 (147) (1,116) (1,263)
Interest payable and (10) (30) (40) (19) (58) (77)
similar
charges
Return on ordinary
activities
before taxation (188) 1,173 985 (166) (1,174) (1,340)
Taxation on ordinary - - - - - -
activities
Return on ordinary
activities
after taxation (188) 1,173 985 (166) (1,174) (1,340)
Dividends in respect - - - - - -
of equity
shares
Transfer (from)/to (188) 1,173 985 (166) (1,174) (1,340)
reserves
Revenue Capital Total Revenue Capital Total
Pence Pence Pence Pence Pence Pence
Return per Ordinary (0.99) 6.21 5.22 (0.88) (6.24) (7.12)
share
* The revenue column of this statement is the revenue account of the Group.
CONSOLIDATED BALANCE SHEET
As at 31 August 2003
31 August 2003 31 August 2002
�'000 �'000
Fixed assets
Investments 6,958 5,755
Current assets
Debtors 14 14
Cash at bank 130 113
144 127
Creditors - Amounts falling due
within one year
Creditors 966 731
Net current liabilities (822) (604)
Net assets 6,136 5,151
Share capital and reserves
Called up share capital 189 189
Share premium account 2,674 2,674
Capital reserve (1,112) (2,285)
Revenue reserve 4,385 4,573
Shareholders' funds 6,136 5,151
Pence Pence
Net Asset Value per Ordinary 32.49 27.28
share
SUMMARISED CONSOLIDATED STATEMENT OF CASHFLOWS
For the year ended 31 August
2003
1 September 2002 1 September 2001
to 31 August 2003 to 31 August 2002
�'000 �'000
Operating activities
Investment income received 65 76
Deposit interest received 2 5
Investment management fees paid (138) (117)
Secretarial fees paid (44) (44)
Other cash payments (183) (226)
Net cash outflow from operating (298) (306)
activities
Servicing of finance
Interest paid (40) (78)
Net cash outflow from servicing (40) (78)
of finance
Capital expenditure and
financial investment
Purchases of investments (944) (768)
Sales of investments 1,056 1,750
Acquisition costs - (274)
Net cash inflow from capital
expenditure and financial 112 708
investment
Net cash (outflow) / inflow (226) 324
(Decrease) / increase in cash (226) 324
NOTE
The above financial information for the year ended 31 August 2003 and the year
ended 31 August 2002 does not constitute statutory accounts as defined in
Section 240 of the Companies Act 1985. The comparative financial information is
based on the statutory financial statements for the year ended 31 August 2002.
The auditors have reported on those accounts; their report was unqualified and
did not contain a statement under section 237 (2) or (3) of the Companies Act
1985. The August 2002 accounts have been delivered to the Registrar of
Companies.
CHAIRMAN'S STATEMENT
The year to 30 October 2003 has been a tumultuous year. During the first seven
months to the end of March this year, the net asset value fell from an opening
value of 27.28p to 20.45p, a decline of 25%. Over the following five months to
the year-end of August 2003 it rose to 32.49p an increase of 58.9%. Over the
twelve months to the year-end the net asset value rose 19.1% and over the same
period the FTSE All-Share Index, your Company's benchmark, rose 0.9%.
Since the year-end your Company's net asset value has risen to 33.68p at 30
September 2003, a further 3.7% rise as compared to a decline of 1.8% in the
FTSE All-Share Index.
Over the last five years the global equity markets have been exceptionally
unsettled. As outlined above, this was clearly evidenced with the extreme
volatility within the last year. The war in Afghanistan in 2002, the threat of
a worldwide recession compounded in 2002/2003 both by the threat and then the
actual war with Iraq caused considerable international uncertainty. This
produced a downward spiral in investor confidence and resulted in falling
equity markets, particularly in the USA and Europe.
The FTSE 100 index stood at 6,930.2 on 30 December 1999 and by the end of March
2003 it had fallen to 3,613.3 with many "experts" expecting the 3,000 level to
be tested. This, however, proved to be the bottom of the trading range and with
the positive news on the outcome of hostilities in Iraq, signalled a return of
investors to equity markets. The recovery, encouragingly, has been most notable
in the smaller companies sector.
The high discount of the share price to the net asset value per share remains a
concern to the Board and the Manager. The Company continues to seek
opportunities to exercise its share buyback powers, and will renew this
authority at the forthcoming AGM. The Company may cancel these shares or hold
them in treasury when the appropriate legislation becomes effective.
During the year the Directors purchased 20,000 shares in the Company and David
Horner, the Manager, increased his holding to 681,368 (3.6%) with the purchase
of an additional 40,000 shares.
With the apparent recovery in the United States and the avoidance of world-wide
deflation there is an expectation for a return to growth in the coming year.
This will be of great benefit to quality small companies and, while we cannot
rule out volatility, we look forward to another year of progress.
Pratt Thompson
Chairman
29 October 2003
END