5th Mar 2019 13:15
LONDON (Alliance News) - Athelney Trust PLC on Tuesday said its net asset value declined significantly in 2018 after a challenging market environment and a series of board conflicts.
Athelney's net asset value per share dropped 21% to 225.9 pence on December 31 from 284.8p at the end of 2017, while its net asset value total return for the year was minus 17.6% - reversing its positive return of 16.8% in 2017.
The trust, which invests in small-cap stocks, posted a GBP1.2 million decrease in unrealised appreciation, swinging from a GBP539,080 increase in 2017 and consequently cutting its fixed assets down to GBP4.6 million from GBP6.0 million.
"Given the challenging markets and various board developments within Athelney over the past months, it is perhaps not surprising to have to report mixed results for the company," said Athelney Executive Chair Frank Ashton.
Athelney's 2019 began on a sour note when Robin Boyle, a 21% stakeholder and former managing director & fund manager, called for shareholders to vote against a planned share issue and to support a radical overhaul of the board.
This was nothing new to the company, which suffered tension between its board and its shareholders throughout 2018.
Overall, disagreements between major shareholders and the board have incurred GBP90,000 in extra costs for the company: GBP40,000 in 2018 and GBP50,000 so far in 2019. Ashton said more of these disagreements "would be unsustainable, especially for a fund of this size".
Despite these complications and a weakened net asset value, Athelney declared an annual dividend of 9.1p per share, 2.2% higher than its 8.9p per share dividend for 2017.
The trust is approaching the future with optimism, with its net asset value having increased 4.4% to 235.9p on Thursday last week.
Ashton said: "As chairman, I am pleased that we now have an independent board in place to set up and oversee the transition to growth - creating shareholder value for all, managing costs and risk. We are now in a period of stability, which is essential as a precursor to growth."
He added: "We are in the process of confirming a fund management team that in our judgement, will have the necessary skills and processes in place to identify and realise value-enhancing investment opportunities, at lower relative risk.
"We will continue to balance the need to manage costs and also ensure the company and fund are supported with appropriate resources now and in the longer term."
Shares in Athelney were flat at 230.00p in London on Tuesday.
Related Shares:
Athelney Tst.