Small company investment firm Athelney Trust increased its revenues from dividends last year but its portfolio declined in value.
The net asset value of the company at the end of February 2008 was 160.3p a share. That is down from 173.1p a share at the end of 2007 and 189.7p a share a year earlier. That isn’t a surprise considering the battering many small quoted companies have taken whether or not they are making profits and generating cash.
Athelney is keen on dividend paying companies. On a like-for-like basis 50 of these companies increased their dividend and two held their dividend at the previous year’s level. There were six companies which reduced their dividend.
Athelney has increased its dividend from 3.25p to 3.5p a share. That is covered by 3.9p a share of revenue earnings in 2007.
Six of the company’s investments were taken over for cash in the period. Althelney made nearly eight times its initial investment in outsourced local authority work provider Enterprise and a 242% gain on car retailer European Motor Holdings. The other four companies taken over also yielded gains. Those gains were offset by the fall in the value of many of the other holdings in the portfolio.
Athelney describes recovery prospects in equity markets as “excellent” but it adds that “patience will be required”.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.