REG - Athelney Trust plc - Annual Financial Report
Tue 15:15
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RNS Number : 1793V Athelney Trust PLC 03 March 2026
Athelney Trust Plc
Legal Entity Identifier:
213800ON67TJC7F4DL05
NON- STATUTORY ACCOUNTS
Athelney Trust plc, the investor in small companies and junior markets
announces its final results for the 12 months ended 31 December 2025.
The financial information set out below does not constitute the Company's
statutory accounts for the years ended 31 December 2025 and 2024 but is
derived from those accounts. Statutory accounts for 2024 have been delivered
to the Registrar of Companies, and those for 2025 will be delivered in due
course. The auditors have reported on those accounts; their report was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under Section 498 (2) or (3) of the
Companies Act 2006. The text of the Auditor's report can be found in the
Company's full Annual Report and Accounts on the Company website:
www.athelneytrust.co.uk (http://www.athelneytrust.co.uk)
Strategic Report
Chair's Statement and Business Review
Dear Shareholder
I am pleased to present the Annual Financial Report for the year to 31
December 2025.
The Strategic Report section of this Annual Report has been prepared to help
all Shareholders understand the drivers of performance in the past year, how
the Company operates and to assess its performance.
Financial Summary and Overview
The key performance indicators are as follows:
Year ended Year ended % Change
31 December 2025 31 December 2024
NAV total return (8.4%) (10.4)% n/a
Revenue return per ordinary share 11.4p 7.4p 54%
Total return per share (6.6)p (13.1)p n/a
Share price 165.0p 175.0p (5.7%)
Net asset value per ordinary share 169.5p 186.1p (8.9%)
Discount to NAV per ordinary share 2.6% 5.9% n/a
Cumulative value of shareholder investment (net asset value plus cumulative
dividends per ordinary share)
179.5p 196p (8.4%)
Shareholders' funds £3.657m £4.015m (8.9%)
179.5p
196p
(8.4%)
Shareholders' funds
£3.657m
£4.015m
(8.9%)
· The Trust's Investment performance over 12 months as measured by
NAV total return, which is the change in NAV plus the dividend paid, was minus
8.4% (2024: minus 10.4%).
· The interim dividend of 2.4p per share was paid on 26 September
2025.
· Your Board recommends a final dividend of 7.6p per share increasing
a total dividend payable for the year to 10.0p (2024: 9.9p) an increase of
1%
· This is the 23rd successive year of progressive dividends and
importantly returns the Trust to the "Dividend Heroes" list maintained by the
AIC, a list of investment companies that have consistently increased their
dividends for 20 or more years in a row.
Performance
Last year, 2025, was disappointing on a number of fronts. First the
performance of your Company was poor in terms of share price (minus 5.7%) and
NAV total return (minus 8.4%) but particularly when compared to the average
share price return for UK Smaller Companies Sector of Investment Trusts at
6.7% and also larger caps, where the FTSE 100 rose over 21%.
Second, there was a concerted recovery in the relative performance of UK
versus US equities, as the FTSE100 outperformed the S&P500 (up 17.4% in
2025) driven by investor needs to reduce risk (of over-exposure to US tech
stocks and market) and ongoing uncertainties driven by President Trump's
projection of strength with large tariff increases; however this recovery did
not translate to UK small- and mid-cap companies.
Third, although there is huge value to be unlocked in UK Smaller Companies,
sentiment is still against this sector, defying bargain valuations and good
relative dividend performance compared to, for example, US equivalents.
Fourth, the UK Government, despite the clarity provided by its landslide
victory just 18 months ago, has struggled to realise growth and has increased
the headwinds for small companies (tax increases, regulatory and employment
rights all increased business burden). As a result, business confidence as
measured by the CBI, fell again in late 2025, also because of poor government
communication on tax changes before the Autumn budget, and a lack of business
support in it, for real growth.
The budget itself in November was nearly a month later than expected,
prolonging the uncertainty for businesses, which often result in delays to
their investments or cancellation of key projects. Chaotic government, with
many U-turns on key policy announcements (thirteen in total, so far) and
declining business confidence will hinder, not help further efforts to realise
real growth. It is disappointing that the government seems yet to fully
grasp and act on these truths.
Outflows from UK equities continued (November was the 41st consecutive month
of outflow) investors withdrawing money from UK companies to invest elsewhere
create pricing pressures, deeper discounts and a greater disconnect to strong
underlying fundamentals. Only a small inflow would have a huge difference
and there are some signs of movement in this direction as the size of
November's outflow was substantially smaller than October.
M&A activity can be a driver for investors in UK, and although 2025 was
lower in deal value compared to the unusually good performance of 2024, there
has been more certainty provided to the deal landscape by the Autumn Budget,
in particular relating to CGT. This suggests there may be some rise in deal
volume in 2026.
The Chancellor Rachel Reeves managed to double her headroom in the November
Budget and will be hoping there will now be signs of real growth. The OBR is
predicting the full 2025 figure for GDP growth will land at 1.5% (better than
0.1% of 2024).
However, Reeves will also be throwing her hands up at the latest threats of
10% and 25% US tariffs for the UK, in relation to Trump's Greenland
'negotiation' which throws more uncertainty at Jaguar Land Rover's future.
After the August cyberattack which cost JLR £196m of extra costs and £50m
per week lost revenue in a five-week loss of production, and a calculated
£1.9bn loss to the UK supply chain/economy, Reeves, the government, JLR and
indeed all in the UK will hope that Trump is true in this case to his TACO
moniker (Trump always chickens out).
High potential - UK Small Caps remain undervalued
We remain confident of and committed to our value-based principles, despite
the different headwinds nationally and internationally, discussed above. We
believe small cap stocks remain cheap now (compared to large cap) as well as
for their long term performance. UK Small Caps are trading on 10x forward P/E
ratio, compared to their 14x long term average and at a 40% discount to US
counterparts.
There is some optimism that lower inflation and a slower employment market
create the conditions for the BoE to cut interest rates, perhaps as low as 3%
by the end of the year, closer to the 2% target. This would strongly favour
smaller businesses who tend to have a greater burden of borrowing, and need to
invest heavily to realise the highest growth rates.
Dividend and Earnings
I am very pleased to share that the company's total revenue earned from its
portfolio in 2025 increased by 36% to £275,506 (2024: £202,843), and
earnings per share increased to 11.4p (2024: 7.4p).
There has been a great deal of work performed by Manny Pohl and the EC Pohl
& Co team to manage long term growth expectations and also to return
higher levels of income, which have been slowly improving since the pandemic.
This has been hard work because there was a drop in the value of UK dividend
payments in each of the first three quarters of 2025, compared to 2024 which
was unusually high in total terms, driven by one-off special dividends. In
2025 many boards have chosen to benefit shareholders with any extra cash by
the alternate route of share buybacks, reducing headline dividend income for
the UK compared to 2024.
The board is pleased to recommend a final dividend of 7.6p which, subject to
shareholder approval at the AGM, will be paid on 7 May 2026, to those
shareholders on the register at 10 April 2026. Once added to the interim
dividend, this brings the full dividend for 2025 to 10.0p a 1% increase on
2024.
Board and Company Developments
The Board places significant importance on corporate governance and compliance
with the AIC and UK Corporate Governance Codes. Full details are set out in
the Corporate Governance section on pages 16 to 18.
As a small, low-cost fund, your Board continues to assess how best to
structure and plan for a board that meets shareholder and regulatory needs,
has continuity, stability and reflects prudent management of costs.
Therefore, I am delighted in January 2025 that the Board moved to external
management of the fund, under EC Pohl & Co Pty, which resulted in a new
reward system, based solely on actual comparative performance. If there is
no real increase in portfolio value compared to the benchmark, there will be
no performance fee for that month or year. This means that in 2025, because
of the poor comparative performance, the company has saved the fund manager's
fee (£31,325 in 2024) and has not been charged a performance fee. For more
details on the calculation of the fee, see page 39 note 8.
In terms of other controllable costs, I confirm a continued freeze on the
non-executive director's fee (£10,500) with no premium for Chair positions,
which is comparable to the NED fee of other, similarly sized funds.
The move to external fund management substantially reduced the comparative OCF
(Ongoing Charges Figure) calculated for 2025 (by £27,480). This was not
sufficient to offset increases in Dealing Charges (up by £23,871) and Other
Expenses (charged to Capital, up by £29,808) year on year. The final OCF is
3.91% (2024: 3.13%) calculated for 2025 using the AIC recommended Ongoing
Charges methodology (taking annualised costs that would reasonably be incurred
if there was no trading of the investee shares divided by the average of the
published monthly NAV).
I am also happy to report that there has been no repeat in 2025 of the turmoil
and inevitable extra time and cost incurred by the company in both of the two
previous years, driven by our auditors resigning unexpectedly. There was no
fault on the part of Athelney Trust or its team; you may remember that changes
by the FRC to rules for auditing PIE companies such as Athelney Trust which
increased risk, cost and staffing pressures for such auditors drove both to
resign.
There has been a 'merger' for our auditor Beever and Struthers, which
following regulatory approval became part of Menzies LLP on 1 October 2025.
The audit team and approach has not changed, there are no direct time or cost
implications for the company and we will continue to monitor their
effectiveness and we will monitor for any resulting impact on the audit
relationship.
Environmental, Human Rights, Employee, Social and Community Issues
The Board consists entirely of two Non-Executive Directors and one Managing
Director. The Company has no direct impact on the community or the
environment, and as such has no environmental, human rights, social or
community policies. In carrying out its investment activities and in
relationships with suppliers, the Company aims to conduct itself responsibly,
ethically and fairly.
Environmental, Social and Governance factors are considered as part of the
commercial evaluation of investee companies.
Annual General Meeting (AGM)
We are pleased to invite shareholders to our AGM at the offices of Druces LLP,
99 Gresham Street, London EC2V 7NG on 15 April 2026 at 12.00 noon.
There will be an opportunity to ask questions during the AGM and also
afterwards in a less formal environment.
We encourage all shareholders to vote on the resolutions, all of which the
board endorses ahead of the deadline at 12 noon on 13 April 2026. Details on
how to vote at the AGM, and its resolutions are in the Notice of AGM, which is
delivered with this Annual Report. Further copies are available on our
website, or from the Company Secretary.
Capital Gains
During the year the Company realised capital profits before expenses arising
on the sale of investments in the sum of £101,647 (2024: £49,006).
Portfolio Review
Additional Holdings Purchased
Additional and new holdings of 4Imprint, AJ Bell, Boku, Dunelm Group, Impax
Asset Management, Keystone Law, Mony Group, Paypoint, Rightmove, S&U,
Spectra Systems and Wise were acquired.
Holdings Sold or Trimmed
AEW UK REIT, Alpha Group, Cake Box Holdings, Cerillion, Games Workshop, Gamma,
National Grid, NWF, Relx, Treatt and Tritax Big Box REIT
Outlook
Despite all the analysis shared above, we are still optimistic for the future
and 2026. We believe deeply in value and have seen our fund manager
consistently find and support quality companies that can provide the right
balance of income and growth.
We invest for the long term, knowing that over time, our approach will beat
the average and produce attractive returns. Therefore we remain patient,
even in the face of pandemic or when US President Trump, as principal guest at
a conference on a Swiss mountain declares a trade war over territory, with his
country's closest allies (whose leaders are also at the same conference). If
you had any doubt before:The geopolitical future is uncertain.
It seems clear that President Trump is rewriting the rule book. Emboldened
by the 'success' of the military mission in Venezuela, he is now comfortable
to threaten allies with tariffs, to send a powerful armada to help him to
enforce his will on Iran, and to chastise ally leaders for daring to speak up
when they 'should be grateful'. The suspense, similar to that created by a
reality TV show around "will he, won't he" compels attention. Yet it also
signals danger as markets and investors hold their breath, the dollar loses
value as gold gains it, and China and Russia seek to take advantage
of the new landscape. As Prime Minister Sir Keir Starmer walks a tightrope
of diplomacy during his visit to China, we wait to see the new rules, their
impact on markets and how diplomacy will respond.
Will Trump's Board of Peace displace the United Nations? Peace in Gaza has
been replaced as the Board's purview by 'promoting peace and good governance
around the world'. 'Failed institutions' as mentioned in the Board's
Charter, are widely interpreted to mean the UN. The Chairman will be
all-powerful with all Board members being selected and terminated by him,
unless 'permanent membership' is bought ($1bn in cash). Who can support
Vladimir Putin's membership invitation? Will Macron resist a threatened 200%
tariff on French wines to force him to take up his Board position?
If these developments, added to the US government's recent successful
kidnapping (and likely incarceration) of Venezuela's President Maduro for
drug-trafficking, play out, the usual rules of international law and
long-standing US role in the post WWII 'old order' are under real threat.
How markets and governments will respond through 2026, is impossible to
know. Gold prices are up by 50% since mid-August and now seem set to climb
further.
Generally, if calm heads and voices win out, we can see potential for real
upside for your Company in 2026. At the moment, the 2026 outlook appears to
include greater geopolitical uncertainty and higher market volatility than for
some time.
Thank you for your continued support; we hope to see you in person at the AGM.
Frank Ashton
Non-Executive Chair
3 March 2026
Investment Manager's Review
Reflecting on 2025
While Queen Elizabeth II referred to 1992 as an "Annus Horribilis" following
upheaval within the British royal family, for us 2025 would definitely fall
into this category. Not only did some of our long-standing portfolio stalwarts
falter but market participants have chosen to ignore business fundamentals and
focus on the euphoria surrounding the benefits of artificial intelligence, as
is evident from the following facts pertaining to the S&P 500.
Over the twelve months to September 25, the Meme stocks were up 120%,
profitless tech was up 66%, the S&P500 was up 17% and quality tech up only
1%. While this data pertains to the S&P 500 in the US, the same theme is
evident in the United Kingdom where business models are assumed to be under
threat by AI while AI-associated companies are assumed to be winners.
Furthermore, market performance in 2025 was skewed by the underperformance of
the small to midcap stocks which does appear to have been overdone as
investors funneled £530m into funds in November on the back of an improvement
in sentiment towards the UK according to recent data published by the
Investment Association.
AI: From Speculation to Deployment
Over the past year, artificial intelligence has clearly progressed from
speculative enthusiasm toward tangible commercial deployment. This is evident
in our own holdings. Across the combined portfolio, 88% of companies are now
actively deploying AI in their products or services, while 87% maintain active
R&D programs investing in future growth. Innovation remained robust, with
82% releasing new products or capabilities during the year.
Companies have increasingly embedded AI into core business functions,
delivering productivity improvements and supporting earnings growth across a
range of industries. However, the rapid pace of investment in AI
infrastructure has also led to the emergence of a highly interconnected
ecosystem of strategic partnerships, creating concentrated exposure and
elevating systemic risk.
A number of high-profile arrangements highlight this dynamic. Nvidia has
committed up to US$100 billion to support OpenAI's data-centre expansion,
followed by a separate US$300 billion agreement between OpenAI and Oracle.
OpenAI estimates its cumulative infrastructure spending could reach
approximately US$1.4 trillion over the next eight years, despite expectations
that free cash flow will remain negative until late in the decade. By
comparison, the combined capital expenditure of Amazon, Microsoft, and
Alphabet over the past ten years is less than US$1 trillion. These continued
deal announcements have driven significant equity re-rating, making AI-related
investment a dominant contributor to market returns.
UK vs Global: A Tale of Two Worlds
When comparing the stocks in our UK portfolio with those in a global
portfolio, global stocks delivered stronger results across most metrics. 88%
of global holdings grew earnings compared to 78% in the Athelney portfolio.
Pricing power constraints affected approximately 32% of UK holdings compared
to just 9% globally, reflecting the competitive intensity of domestic markets
and the inflation pressures that persisted through the year. Leadership
turnover was also elevated in UK at 46%, nearly double the global rate of 24%.
Workforce restructuring was more prevalent in UK, with one third of holdings
reporting layoffs versus 24% globally. Yet both portfolios continued hiring
for growth (62% of the group), indicating targeted optimization rather than
broad retrenchment.
These differences partly explain the performance gap, but they also highlight
where the alpha opportunities lie. Several UK businesses now trade at
valuations that do not reflect the quality of the business or their position
early in their growth journeys.
Portfolio Performance
Our principal contributors to performance during the year were Alpha Group
International, Games Workshop, AEW UK REIT, and S&U plc, each of which
advanced by more than 10%. In particular, Alpha Group, Games Workshop, and
S&U delivered gains in excess of 30%, reflecting continued strength in
their underlying economics rather than short-term market enthusiasm.
The largest detractors during the year were PayPoint, Treatt, Liontrust Asset
Management, and Impax Asset Management, which together accounted for
approximately 60% of the total detractors from portfolio performance. Each
experienced share price declines of more than 30% during 2025 and now trade at
levels close to historical lows.
The Disconnect Between Fundamentals and Market Performance
The irony is that our portfolio companies, by and large, continued to execute
exceptionally well. Across our portfolio of 24 companies:
· 70% grew revenues during the year
· 74% generated positive free cash flow
· 78% delivered earnings growth
· 91% gained market share
· 96% continued investing in growth through capital expenditure
Customer retention across the portfolio remained exceptionally strong, with
only 8% of holdings experiencing any material contract or client losses. This
is not the profile of businesses under strain, but of quality franchises
continuing to compound through a difficult operating environment. Market focus
has nonetheless shifted elsewhere. Over the past six months, lower-quality,
highly leveraged companies across the globe with weak returns on equity have
delivered their strongest relative outperformance in 25 years, outside the
immediate post-GFC rebound. Our portfolio stands in clear contrast: 78% of
holdings operate with gearing below 30%, and approximately 74% maintain
net-cash balance sheets.
Over the years, the Athelney NAV has been negatively impacted by rising fixed
costs and as pointed out in the Chairman's commentary, we have been able to
dramatically reduce these over the past twelve months. Furthermore, in the
management of the portfolio we have been able to increase the investment
income to a level where it exceeds the amount paid out by way of dividend and
management fee and the intention is to get this to a level where it covers
both the dividend paid and all the expenses. This ensures that Athelney will
be able to maintain its large dividend payout of 6.1% as compared to say the
FTSE250 of 3.5%.
Through this process we have still remained true to our process - focusing on
the stocks in our portfolio rather than attempting to predict macroeconomic
trends and industry responses. Our focus has been to maintain our large
exposure to AEW UK Reit and higher dividend yielding businesses in recognition
of the need to maintain the dividend paid to Shareholders while adding quality
growth companies to the portfolio.
During the year Treatt was targeted for acquisition by Natara Global Limited,
and we sold into the offer which ultimately failed after shareholders
rejected the final cash offer in early November 2025. Alpha Group received a
takeover offer from US-based Corpay which we sold into, valuing the company at
£1.81 billion, a 55% premium. We exited our positions in Cerillion, Tritax
Big Box and Gamma Communications during the year. The proceeds from these
sales were reallocated to strengthen our existing holdings and to initiate new
positions in companies we believe are well-positioned to expand their economic
footprint and generate sustainable growth for the portfolio over the long
term.
Movements in our holdings are detailed in the Director's Report and over the
past twelve months we added four new names to the portfolio:
BOKU INC: (LSE: BOKU)
Boku is a global mobile and online payments platform providing direct carrier
billing and digital wallets in over 90 countries. The company's capital-light
model, network effects, recurring revenues, and disciplined management align
well with our investment philosophy.
KEYSTONE LAW: (LSE: KEYS)
Keystone Law Group is a UK based law firm with a tech enabled platform model,
allowing self-employed lawyers to deliver flexible, high-quality legal
services.
MONY GROUP: (LSE: MONY)
Mony Group plc is a leading UK-based price comparison website, helping
consumers save on financial products, insurance, energy, and broadband
services.
SPECTRA: (LSE: SPSY)
Spectra Systems is a leader in optical and sensor-based security technology,
offering end-to-end systems from specialized materials and sensors to software
platforms and fully printed secure products for use in currency, documents,
goods, and gaming integrity.
Productivity, Growth and Opportunity in UK Small and Mid-Caps
Our portfolio is deliberately focused on UK small and mid-cap businesses,
where improvements in productivity tend to translate directly and
disproportionately into cash flow and returns on capital. These companies are
not pursuing artificial intelligence as a theme, but rather they are adopting
practical tools that simplify operations, reduce costs, improve pricing
discipline, and allow revenues to scale without a commensurate increase in
capital or headcount.
As American Economist Nouriel Roubini has observed, the broad adoption of AI
has the potential to lift corporate profitability on a structural basis, not
merely as a cyclical rebound. For smaller, well-managed companies, even
incremental gains in efficiency can materially enhance margins and free cash
flow. We believe this dynamic will continue to work quietly in favour of our
holdings through the remainder of the decade.
Improving productivity, firmer growth dynamics, and easing financial
conditions provide a constructive backdrop for our portfolio. Supported by a
strong income profile and attractive long-term return potential, we remain
focused on owning businesses where incremental gains in efficiency and
profitability can compound quietly over time. As ever, valuation and
discipline matter, but for patient owners, time remains the decisive
advantage.
Portfolio Positioning
In managing portfolios, we remain committed to our core philosophy of focusing
on the economics of the business rather than attempting to anticipate
short-term macroeconomic outcomes. We focus on owning companies with strong
competitive advantages, proven management teams, and clear pathways to
sustainable earnings growth. By maintaining a long-term ownership mindset and
actively managing position sizes as valuations evolve, we seek to balance risk
management with the pursuit of attractive returns.
The current portfolio is a collection of high-growth, high-quality, and
capital-light businesses, while the FTSE 100 and FTSE 250 are currently
dominated by more traditional, capital-intensive, and slower-growing
companies. This is most evident in R&D spending, where our portfolio
generally reinvests well into double-digit percentages of its sales back into
R&D, whereas the benchmark's R&D intensity tends to be typically in
the low single digits of revenue. This focus on innovation has driven much of
the faster historical growth metrics for the portfolio, with 5-year Sales and
Free Cashflow CAGRs (15.4% p.a. and 18.1% p.a. respectively) over the same
period.
Operating margins in our portfolio have been trending up as our companies
benefit from continued operating leverage, while operating margins for the
benchmark appear to have been declining from around high-single-digit levels
five years ago to mid-single-digit levels in the latest year. Across our
holdings, 52% maintain EBITDA margins above 15% and 30% exceed 20%.
Our portfolio is also more capital efficient, with 52% improving return on
invested capital this year. Balance sheets remain healthy: 78% of holdings
operate with gearing below 30%, and approximately 74% maintain net-cash
balance sheets.
We would expect that these higher-than-average operating metrics should show
up in higher-than-average return drivers for the portfolio. In addition, the
current expected returns for the portfolio are as good as they have ever been.
The Year Ahead
As we look to 2026, the continued expansion of AI and data-driven technologies
will remain a powerful structural growth driver, although second-order effects
warrant close attention. With the large proportion of our holdings actively
deploying AI and many releasing new innovations this year, we are positioned
to benefit as AI moves from infrastructure investment to enterprise
applications and productivity gains.
Rising demand for energy, computing infrastructure, and specialized labour may
create both opportunities and constraints, reinforcing the importance of
careful stock selection. Our focus on companies with strong competitive
positions (91% gained market share this year) on the back of pricing power and
exceptional customer retention provides resilience against these pressures.
The current dislocation between quality metrics and market prices also creates
opportunity and with fundamentals intact and valuations compressed, the
conditions for outperformance are in place.
We are encouraged by the recent recovery in our companies' price-to-earnings
(P/E) ratios, rebounding from prior lows. Coupled with strong short-term
financial performance evidenced by organic sales growth, solid earnings, and
rising dividends this reinforces our confidence in their future prospects.
These positive developments point to a promising trajectory for further
valuation growth across our portfolio. These market conditions are ideal for
investors seeking resilient, growth-oriented high-quality investments,
positioning them well for long-term outperformance.
Update
The unaudited NAV on 28 February 2026 was 170.7p per share - an increase of
0.7% from 31 December 2025. The share price on the same day was 135p
(trading at a discount of 21%). Further updates can be found at
www.athelneytrust.co.uk (http://www.athelneytrust.co.uk)
Dr Manny Pohl AM
3 March 2026
Section 172(1) Statement
The Directors of the Company are required to promote the success of the
Company for the benefit of the Members and Shareholders as a whole. Section
172(1) of the Companies Act (2006) expands this duty and requires the
Directors to consider a broader range of interested parties when considering
the promotion of the Company. This wider group of stakeholders will include
employees, if any, suppliers, customers and others, and the Board will look to
understand and take into account the needs of each stakeholder, although
recognising that different stakeholders may have conflicting priorities and
not all decisions made will be to the benefit of all stakeholder groups.
When making decisions the Board should consider the following:
· the likely consequences of any decisions in the long-term;
· the interests of the Company's employees (if applicable);
· the impact of the Company's operations on the environment and the
community;
· the need to foster the Company's business relationships with
suppliers, customers and others;
· the need to act fairly for all members of the Company, and
· the desirability of the Company maintaining a reputation for high
standards of business conduct.
In line with similar small Investment Trusts and Investment Companies,
Athelney Trust plc does not have any customers and relies on a number of
third-party providers of services such as Company Administrator, the Custodian
and the Registrar to maintain its operations. The Company takes into account
the regulations of the market in which it operates and has regard to the
environment and the wider community in which it operates.
At every Board meeting the Directors review the performance of the Company
towards meeting the Company's Investment Objective through its strategy. EC
Pohl Pty Ltd was appointed the Investment Manager on 1 January 2025, Manny
Pohl the Managing Director and Richard Obree from EC Pohl Pty Ltd report to
other Board members and answers any questions raised. Compliance with existing
regulatory and legal requirements is reviewed, together with any new
regulations that are due to be introduced or are being proposed that may
affect the Company.
Whilst the Board recognises the importance of giving due consideration to our
stakeholders is not new, S172 requires that the Board elaborates on how it
discharges its duties in this respect.
We have categorised our key stakeholders into two groups.
· Shareholders
· Investment Manager, Company administrator and other service
providers.
Shareholders
The Company produces Annual and Half Yearly Reports and monthly fact sheets
which are all available from the Company's website and paper copies are
available on request from the registered office. The publication of these
reports is considered to be the primary method of communication to
Shareholders and other readers of the reports and provides detailed
information on the portfolio, performance over the period and an assessment of
the outlook for the Company.
The Annual Report also contains details regarding the Company's corporate
governance and the Board seeks to ensure that the Report is readable and is
mindful that it should be fair, balanced and understandable.
The Board also encourages all Shareholders to attend and participate at its
Annual General Meeting ("AGM"). The Board is available to answer questions
directly from Shareholders, to provide an update to the meeting and to offer
Shareholders an insight into the business.
Shareholders who attend the AGM are also invited to attend a small luncheon
after the AGM to engage in a less formal setting with the Board and other
shareholders.
Shareholders can contact the Company or any of its Directors through the
Company Secretary or through their company email addresses.
Investment Manager
On 1 January 2025 EC Pohl & Co Pty Ltd was appointed as Investment
Manager. Details regarding the appointment and the agreement can be found in
note 8 on page 39.
Manny Pohl acts as their Chief Investment Officer and Athelney Trust's Fund
Manager. Regular communication is maintained between the Fund Manager, his
colleagues and the Directors advising them of all matters concerning the
Company's investments.
Manny Pohl and EC Pohl & Co Pty Ltd has several other funds (including a
Dublin-based UCITS ICAV) and listed Investment Companies that it also manages,
with total assets under management of A$3bn. EC Pohl & Co Pty Ltd is a
leading, award winning investment manager with extensive expertise in global
equity investment. EC Pohl & Co Pty Ltd.'s approach is anchored in
sustainability and responsible investment principles, aligning its investment
strategies with long-term environmental, social and governance considerations.
EC Pohl & Co Pty Ltd has a team of 8 investment professionals with over
145 years of combined investment experience.
We believe this experience is highly valuable to Athelney Trust.
Company Administrator and other Service Providers
The Board seeks to maintain regular and constructive contact with its service
providers to ensure that the Company runs smoothly and all obligations are met
in a timely manner.
Deborah Warburton acted as Company Secretary and GW & Co. Limited as the
Administrator. Regular communication is maintained between the Company
Secretary and the Directors advising them of all matters concerning the
Company. The Company also relies on the provision of services from outside
parties to operate and considers the needs and objectives of those providers
and recognises that their success will often assist the Company in achieving
its objectives.
Other Statutory Information
As explained within the Report of the Directors on pages 21 to 23, the Company
carries on business as an investment trust. Investment trusts are collective
closed-ended public limited companies.
Board
The Board of Directors is responsible for the overall stewardship of the
Company, including investment and dividend policies, corporate and gearing
strategy, corporate governance procedures and risk management. Biographical
details of the three male Directors, can be found on pages 2 and 3.
Investment Objective
The investment objective of the Trust is to provide shareholders with
prospects of long-term capital growth with the risks inherent in small cap
investment minimised through a spread of holdings in quality small cap
companies that operate in various industries and sectors. The investment
Manager also considers that it is important to maintain a progressive dividend
record.
Investment Policy
The assets of the Trust are allocated predominantly to companies with either a
full listing on the London Stock Exchange or a trading facility on AIM or
AQSE. The assets of the Trust have been allocated in two main ways: first, to
the shares of those companies which have grown steadily over the years in
terms of revenue and profits but, despite this progress are undervalued by the
market when compared to future earnings and dividends; second, those companies
whose shares are undervalued by the market when compared with the value of
land, buildings, other assets or cash on their balance sheet.
Investment Strategy
The investment strategy employed by the Investment Manager in meeting the
investment objective focuses on active stock selection. The selection of
individual holdings is based on analysis of, amongst other things, market
positioning, competitive advantage, future
growth, financial strength and cash flows. The weighting of individual
investments reflects the Investment Manager's conviction in the expected
future returns from those holdings.
Investment of Assets
At each Board meeting, the Board considers compliance with the Company's
investment policy and other investment restrictions during the reporting
period. An analysis of the portfolio on 31 December 2025 can be found on pages
11 and 12 of this report.
Responsible Ownership
EC Pohl & Co take a particular interest in corporate governance and social
responsibility as part of their investment approach. As stated within the
Corporate Governance Statement on pages 16 to 18, EC Pohl & Co Pty Ltd.'s
current policy is available on their website ecpohl.com (http://ecpohl.com) .
Review of Performance and Outlook
Reviews of the Company's returns during the financial year, the position of
the Company at the year end, and the outlook for the coming year are contained
in the Chair's Statement on pages 4 to 6 and the Investment Manager's review
on pages 7 to 10 which form part of the Strategic Report.
Principal Risks and Uncertainties and Risk Management
As stated within the Corporate Governance Statement on pages 16 to 18, the
Board applies the principles detailed in the internal control guidance issued
by the Financial Reporting Council, and has established a continuing process
designed to meet the particular needs of the Company in managing the risks and
uncertainties to which it is exposed.
The principal risks and uncertainties faced by the Company are described below
and an explanation as to how these have been mitigated or managed is also
provided. The key business risks affecting the Company are:
RISK MITIGATION
BUSINESS RISK The financial performance, market position, or growth prospects of investee Company looks to invest in businesses that can demonstrate resilient
companies may deteriorate or fail to meet expectations and result in loss of characteristics and a shared philosophy around long term creation of value.
shareholders confidence.
MONETARY RISK Changes in monetary policy and the monetary response to changing economic The Company owns a portfolio of assets that possess an enduring real value
conditions including inflationary pressures, may adversely affect the market whether from the underlying vale of the investments or from their ability to
value of the Company's assets. create an income stream.
CONCENTRATION RISK Excessive exposure to a single stock or sector may increase the Company's No single investment shall exceed 15% of gross assets, nor shall the income
vulnerability to adverse market movements. derived from it exceed 20% of total revenue, at the time of acquisition.
OPERATIONAL RISK The Company relies on third-party service providers, including EC Pohl Pty Ltd The Board formally reviews the Company's service providers on an annual basis.
(Investment Manager), GW & Co Limited (administrator), and James Sharp
(custodian). Failures in their internal controls or operations could result in
financial loss.
The other risks that affect the company but are not considered key risks are
listed below.
· Global conflict - The continuing war between Russia and
Ukraine, and the Middle East has had a significant impact, inter alia, on
inflation and, in conjunction with affairs in China, an impact on supply
chains and globalisation. Investee companies will vary as to the impact on
them and their ability to adapt.
· Inflationary pressure - Inflation escalated sharply in 2024 which
carried over in to 2025, with the Bank of England raising interest rates on
several occasions in an attempt to reduce the level of inflation. This has
stabilised in 2025 however not all investee companies are well-placed to pass
on cost pressures to their customers.
· Market - the Company's fixed assets consist almost entirely of listed
securities and it is therefore exposed to movements in the prices of
individual securities and the market generally.
· Investment and strategic - incorrect investment strategy, asset
allocation, stock selection and the use of gearing could all lead to poor
returns for shareholders.
· Regulatory - Relevant legislation and regulations which apply to the
Company include the Companies Act 2006, the Corporation Tax Act 2010 ("CTA")
and the Listing Rules of the Financial Conduct Authority ("FCA"). The Company
has noted the recommendations of the UK Corporate Governance Code and its
statement of compliance appears on pages 16 to 18. A breach of the CTA could
result in the Company losing its status as an investment company and becoming
subject to capital gains tax, whilst a breach of the Listing Rules might
result in censure by the FCA. At each Board meeting the status of the Company
is considered and discussed, so as to ensure that all regulations are being
adhered to by the Company and its service providers.
· Financial - inadequate controls by the Investment Manager or other
third-party service providers could lead to misappropriation of assets.
Inappropriate accounting policies or failure to comply with accounting
standards could lead to misreporting or breaches of regulations.
· Liquidity - the Company may have difficulty in meeting obligations
associated with financial liabilities.
· Interest rate risk - this is not considered to be a direct risk to
the Company other than through its effect on investee companies.
· Trading - the Company is a small trust and its shares can be
illiquid, which means that investors may have difficulty in dealing in larger
amounts of shares.
· Geopolitical risk - some of the companies that we have invested in
trade globally and their value may be affected by international political
developments, changes in government and their policies, changes in taxation,
restrictions in foreign investment and currency repatriation, currency
fluctuations and other developments in the laws and regulations of countries
in which they operate.
The Company has complied with the MiFID ll and KID legislation and the
deadlines to ensure that shares in the Company were still able to be traded. A
copy of the Company's KID can be found on the website
http://www.athelneytrust.co.uk (http://www.athelneytrust.co.uk)
The Board is not aware of any breaches of laws or regulations during the
period under review and up to the date of this report.
The Board seeks to mitigate and manage these risks through continual review,
policy setting and enforcement of contractual obligations. It also regularly
monitors the investment environment and the management of the Company's
investment portfolio. Investment risk is spread through holding a wide range
of securities in different industrial sectors.
Statement Regarding Annual Report and Financial Statements
Following a detailed review of the Annual Report and Financial Statements by
the Audit Committee, the Directors consider that taken as a whole it is fair,
balanced and understandable and provides the information necessary for
shareholders to assess the Company's performance, business model and strategy.
The Directors have adopted best practices as described by the AIC's Statement
of Recommended Practice on financial statements dated July 2022.
Greenhouse Gas Emissions, Environment and Community
As an investment company with its activities outsourced to third parties or
self managed by the Non-Executive Directors, the Company's own direct
environmental impact is minimal. The Company has no greenhouse gas emissions
to report from its operations, nor does it have responsibility for any other
emissions producing sources under the Companies Act 2006 (Strategic Report and
Directors' Reports) Regulations 2013. As the Company does not have any direct
employees nor any physical office environment of its own it has little direct
impact on the community or the environment. The Company seeks to reduce its
impact on the environment in encouraging Shareholders to receive Reports
electronically rather than through printed hard copies. When paper copies are
requested FSC paper is used. The Board also engage through electronic means
where possible rather than hold excessive face to face meetings.
Furthermore, the Company considers itself to be a low energy user under the
Streamlined Energy & Carbon Reporting regulations and therefore is not
required to disclose energy and carbon information.
Social, Community and Human Rights issues
The Company does not have any employees as a result no issues exist in respect
of social, community or human rights issues.
Alternative Investment Fund Manager's Directive ("AIFMD")
The Company was registered with the FCA under AIFMD for the period to 31
December 2024 as its own AIFM. The Company de-registered with the FCA in March
2025 upon the appointment of EC Pohl Pty Ltd as the Investment Manager from 1
January 2025.
For and on behalf of the Board
Dr Manny Pohl AM
Managing Director
3 March 2026
Statement of Directors' responsibilities in respect of the financial statements
The Directors are responsible for preparing the Annual Report and the
financial statements and have elected to prepare them in accordance with
applicable United Kingdom law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice), including FRS102 The
Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and of its profit or loss for that period.
In preparing the financial statements, the Directors are required to:
• select suitable accounting policies and then
apply them consistently;
• make judgements and estimates that are
reasonable and prudent;
• present information, including accounting
policies, in a manner that provides relevant, reliable, comparable and
understandable information;
• state whether applicable UK Accounting Standards
have been followed, subject to any material departures disclosed and explained
in the financial statements; and
• prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy, at any time, the financial position of the Company and to
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Report of the Directors, a Strategic Report, Directors'
Remuneration Report and Corporate Governance Statement.
The Directors state that to the best of their knowledge:
• the Financial Statements, prepared in accordance with UK Generally
Accepted Accounting Practice, give a true and fair view of the assets,
liabilities, financial position and net return of the Company;
• the Annual Report and accounts, taken as a whole, are fair, balanced
and understandable and provide the necessary information for shareholders to
assess the Company's position and performance, business model and strategy;
and
• the Chair's Statement and Report of the Directors include a fair
review of the development and performance of the business and the position of
the Company together with a description of the principal risks and
uncertainties that it faces.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information related to the Company including on the
Company's website http://www.athelneytrust.co.uk
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
For and on behalf of the Board
Dr Manny Pohl AM
Managing Director
3 March 2026
Income Statement
For the Year Ended 31 December 2025
2025
2024
Note Revenue Capital Total Revenue Capital Total
£ £ £ £ £ £
Losses on investments held at fair value 9 - (275,558) (275,558) - (310,888) (310,888)
Income from investments 2 275,506 - 275,506 202,843 - 202,843
Investment management expenses 3,8 (-) (2,500) (2,500) (3,133) (29,980) (33,113)
Other expenses 3 (29,085) (110,997) (140,082) (40,154) (101,384) (141,538)
Net return on ordinary activities before taxation 246,421 (389,055) (142,634) 159,556 (442,252) (282,696)
Taxation 5 (224) - (224) (448) - (448)
Net return (negative return) on ordinary activities after taxation 6 246,197 (389,055) (142,858) 159,108 (442,252) (283,144)
Net return per ordinary share 6 11.4p (18.0)p (6.6)p 7.4p (20.5p) (13.1p)
Dividend per ordinary share paid during the year 7 10.0p 9.9p
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued during the year.
The total column of this statement is the Statement of Total Comprehensive
Income of the Company prepared in accordance with applicable Financial
Reporting Standards ("FRS"). The supplementary revenue return and capital
return columns are prepared in accordance with the Statement of Recommended
Practice ("AIC SORP") issued in July 2022 by the Association of Investment
Companies.
Statement of Financial Position
As at 31 December 2025
Company Number: 02933559
2025 2024
Note
£ £
Fixed assets
Investments held at fair value through profit and loss 9 3,554,783 3,927,180
Current assets
Debtors 10 29,807 91,471
Cash at bank and in hand 118,191 43,669
147,998 135,140
Creditors: amounts falling due within one year 11 (46,231) (47,124)
Net current assets 101,767 88,016
Total assets less current liabilities 3,656,550 4,015,196
Net assets 3,656,550 4,015,196
Capital and reserves
Called up share capital 12 539,470 539,470
Share premium account 881,087 881,087
Other reserves (non distributable)
Capital reserve - realised 2,373,416 2,385,266
Capital reserve - unrealised (283,893) 93,312
Revenue reserve (distributable) 146,470 116,061
Shareholders' funds - all equity 3,656,550 4,015,196
Net Asset Value per share 14 169.5p 186.1p
These financial statements were approved and authorised for issue by the Board
of Directors on 3 March 2026 and signed on their behalf by
Dr Manny Pohl AM
Managing Director
Statement of Changes in Equity
For the Year Ended 31 December 2025
Called-up Capital Capital Total
Share Share reserve reserve Revenue Shareholders'
Capital Premium realised unrealised reserve Funds
£ £ £ £ £ £
Balance brought forward at 1 January 2024 539,470 881,087 2,467,624 453,206 170,583 4,511,970
Net profits on realization
of investments - - 49,006 - - 49,006
Decrease in unrealized
Appreciation - - - (359,894) - (359,894)
Expenses allocated to
Capital - - (131,364) - - (131,364)
Profit for the year - - - - 159,108 159,108
Dividend paid in year - - - - (213,630) (213,630)
Shareholders' Funds at 31 December 2024 539,470 881,087 2,385,266 93,312 116,061 4,015,196
Balance brought forward at 1 January 2025 539,470 881,087 2,385,266 93,312 116,061 4,015,196
Net profits on realization
of investments - - 101,647 - - 101,647
Decrease in unrealized
Appreciation - - - (377,205) - (377,205)
Expenses allocated to
Capital - - (113,497) - - (113,497)
Profit for the year - - - - 246,197 246,197
Dividend paid in year - - - - (215,788) (215,788)
Shareholders' Funds at 31 December 2025 539,470 881,087 2,373,416 (283,893) 146,470 3,656,550
Statement of Cash Flows
For the Year Ended 31 December 2025
2025 2024
£ £
Cash flows used in operating activities
Net revenue return 246,197 159,108
Adjustment for:
Expenses charged to capital (113,497) (131,364)
Increase/(decrease) in creditors (893) 6,736
Decrease/(increase) in debtors 61,664 46,238
Cash received/(used) in operations 193,471 80,718
Cash flows from investing activities
Purchase of investments (2,707,150) (998,640)
Proceeds from sales of investments 2,803,989 1,134,874
Net cash (used)/received from investing activities 96,839 136,234
Cash flows from financing activities (215,788) (213,630)
Equity dividends paid
Net cash (used)/received from financing activities (215,788) (213,630)
Net increase/(decrease) in cash 74,522 3,322
Cash at the beginning of the year 43,669 40,347
118,191 43,669
Cash at the end of the year
As the company does not have any loans, overdrafts or hire purchase
arrangements, net debt is equal to cash and therefore no reconciliation of net
debt has been disclosed.
Notes to the Financial Statements
For the Year Ended 31 December 2025
1. Accounting Policies
Athelney Trust Plc is a public limited company, incorporated in England and
Wales, registration number 02933559, The address of the registered office is
Waterside Court, Falmouth Road, Penryn, Cornwall TR10 8AW.
1.1 Statement of Compliance and Basis of Preparation of Financial Statements
The financial statements are prepared in accordance with applicable United
Kingdom accounting standards, including Financial Reporting Standard 102 ("FRS
102"), the Companies Act 2006 and with the AIC Statement of Recommended
Practice ("SORP") issued in July 2022, regarding the Financial Statements of
Investment Trust Companies and Venture Capital Trusts. All the Company's
activities are continuing.
The presentation currency of the financial statements is pounds sterling,
being the functional currency of the primary economic environment in which the
company operates. Monetary amounts in these financial statements are rounded
to the nearest pound.
1.2 Going concern
The Directors have made an assessment of the Company's ability to continue as
a going concern. This has included consideration of portfolio liquidity, the
financial position in respect of its cashflows, the working arrangements of
key service providers, the continued eligibility to be approved as an
investment trust company, the impact of the current economic environment and
the current conflicts in the Ukraine and the Middle East. In addition the
Directors are not aware of any material uncertainties that may cast
significant doubt upon the Company's ability to continue as a going concern.
The Directors are satisfied that the Company has sufficient resources to
continue in business for the foreseeable future being a period of at least 12
months from the date these financial statements were approved. Therefore, the
financial statements have been prepared on the going concern basis.
1.3 Income
Income from investments including taxes deducted at source is recognised when
the right to the return is established (normally the ex-dividend date). UK
dividend income is reported net of tax credits in accordance with FRS 102
section 23 "Revenue". Interest is dealt with on an accruals basis.
1.4 Investment Management Expenses and Performance Fee
Ten percent of the directors' salaries have been charged to revenue and the
other 90% to capital, 10% of the performance fee will be charged against
revenue and 90% against capital. During the year no performance fee was
payable. A fixed percentage of all other investment management expenses have
been charged to capital. The Board propose continuing this basis for future
years.
1.5 Other Expenses
Expenses (including VAT) and interest payable are dealt with on an accruals
basis and charged through the Revenue and Capital Accounts in an allocation
that the Board consider to be a fair distribution of the costs incurred.
1.6 Taxation
The tax effect of different items of income and expenses is allocated between
capital and revenue on the same basis as the particular item to which it
relates, using the Company's effective rate of tax for the year.
1.7 Investments
Listed investments comprise those listed on the Official List of the London
Stock Exchange. Unlisted investments are traded on AIM or
AQSE. Profits or losses on sales of investments are taken to realised capital
reserve. Any unrealised appreciation or depreciation is taken to unrealised
capital reserve.
Investments have been classified as "fair value through profit and loss" upon
initial recognition.
Subsequent to initial recognition, investments are measured at fair value with
changes in fair value recognised in the Income Statement.
Securities of companies quoted on a recognised stock exchange are valued by
reference to their quoted bid prices on 31 December.
1.8 Judgements and estimates
The Directors confirm that judgements and estimates have been made in
allocating revenue and capital expenditure. In certain instances, the
Directors have exercised judgement in allocating specific costs between
capital and revenue. This judgement, consistently applied for many years,
considers the business effect, the nature of the work undertaken, and whether
the time and effort expended contributes to capital growth or revenue
generation. In some cases this approach departs from the AIC Statement of
Recommended Practice (SORP) issued in July 2022, on allocating certain
expenses to capital.
1.9 Deferred Taxation
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed by the balance sheet date. Deferred tax
liabilities are recognised for all taxable timing differences but deferred tax
assets are only recognised if it is considered more likely than not that there
will be suitable profits from which the future reversal of the underlying
timing differences can be deducted. Deferred tax assets and liabilities are
calculated at the tax rates expected to be effective at the time the timing
differences are expected to reverse. Deferred tax assets and liabilities are
not discounted.
1.10 Capital Reserves
Capital Reserve - Realised
Gains and losses on realisation of fixed asset investments are dealt with in
this reserve. As per the company articles the reserve is not readily
distributable.
Capital Reserve - Unrealised
Increases and decreases in the valuations of fixed asset investments are dealt
with in this reserve. Unrealised capital reserves cannot be distributed by way
of dividends or similar.
1.11 Dividends
In accordance with FRS 102 Section 32 "Events after the end of the Reporting
Period", dividends are included in the financial statements in the year in
which they go ex-div.
1.12 Share Issue Expenses
The costs associated with issuing shares are written off against any premium
arising on the issue of Share Capital.
1.13 Financial Instruments
Short term debtors and creditors are held at cost.
2. Income
Income from investments
2025 2024
£ £
UK dividend income 227,271 134,278
Foreign dividend income 592 -
UK Property REITs 46,516 66,205
Bank interest 1,127 2,360
Total income 275,506 202,843
UK dividend income
2025 2024
£ £
UK Main Market listed investments 207,881 86,777
UK AIM-traded shares 66,498 47,501
274,379 134,278
3. Return on Ordinary Activities before Taxation
The following amounts (inclusive of VAT) are included within investment
management and other expenses:
2025 2024
£ £
Directors' remuneration:
Services as a director 21,000 21,000
Otherwise in connection with management - 31,325
Auditor's remuneration:
Audit Services - Statutory audit
Menzies LLP/Beever and Struthers 43,200 42,000
Moore Kingston Smith - 2,460
Miscellaneous expenses:
Management services 33,268 32,472
PR and communications 3,972 4,383
Stock exchange subscription 13,200 12,780
Sundry investment management and other expenses 24,994 28,231
Legal fees 2,948 -
142,582 174,651
4. Employees and Directors' Remuneration
2025 2024
£ £
Costs in respect of Directors:
Non-executive Directors' fees 21,000 21,000
Wages and salaries - 31,325
21,000 52,325
Average number of employees:
In moving to External Fund Management, the employment of Manny Pohl as Fund
Manager was terminated in 2025, leaving the Company with no employees
(2024:one)
The company has 3 non-executive directors, one of whom has been nominated as
Managing Director.
5. Taxation
Current tax:
2025 2024
£ £
UK current tax expense 224 448
Tax on profit 224 448
(ii) Factors affecting the tax charge for the year.
The tax charge for the period is higher than (2024: higher than) the average
small company rate of corporation tax in the UK of 19%. The differences
are explained below:
2025 2024
£ £
Total return on ordinary activities before tax (142,634) (282,696)
Total return on ordinary activities multiplied by the average small company (27,100) (53,712)
rate of corporation tax 19% (2024: 19%)
Effects of:
UK dividend income not taxable (43,294) (25,513)
Revaluation of investments not taxable 71,669 68,380
Capital gains not taxable (19,313) (9,311)
Unrelieved management expenses 18,252 20,604
Current tax charge for the year 214 448
The Company has unrelieved excess revenue management expenses of £983,121 at
31 December 2025 (2024: £889,360) and £102,597 (2024: £102,597) of capital
losses for Corporation Tax purposes which are available to be carried forward
to future years. It is unlikely that the Company will generate sufficient
taxable profits in the future to utilise these expenses and therefore no
deferred tax asset has been recognised.
Historically the Company has received approval from HM Revenue and Customs
under Section 1158 of the Corporation Tax Act 2010, as a result of this
approval the Company is not liable to Corporation Tax on any realised
investment gains. The Directors intend to continue to meet the conditions
required to obtain approval and therefore no deferred tax has been provided on
any capital gains or losses arising on the revaluation or disposal of
investments.
The Directors are fully aware that the Company is not a close company and of
the rules associated with this status. The Company holds its Investment
Trust status under the S446 Corporation Tax Act 2010 exemption because more
than 35% of the company's shares are held by the public and have been actively
traded in the past 12 months on the London Stock Exchange and this is
regularly reviewed by the Directors.
6. Return per Ordinary Share
Returns per share are based on the weighted average number of shares in issue
during the year.
2025
£ £ £
Revenue Capital Total
Attributable return on ordinary activities after taxation
246,197 (389,055) (142,858)
Weighted average number of shares 2,157,881
Return per ordinary share 11.4p (18.0p) (6.6p)
2024
£ £ £
Revenue Capital Total
Attributable return on ordinary activities after taxation
159,108 (442,252) (283,144)
Weighted average number of shares 2,157,881
Return per ordinary share 7.4p (20.5p) (13.1p)
7. Dividend
2025 2024
£ £
Final dividend in respect of 2024 of 7.6p (2024: a final dividend of 7.6p was 163,999 163,999
paid in respect of 2023) per share
Interim dividend in respect of 2025 of 2.4p (2024: an interim dividend of 2.3p 51,790 49,631
was paid in respect of 2024) per share
215,789 213,630
The Company's status as an Investment Trust under Section 1158 of the
Corporation Tax Act requires that no more than 15% of the distributable
revenue profits in a year can be retained from the revenue available for
distribution in that year. Revenue profits for the year were £246,197.
An interim dividend of 2.4p per ordinary share was paid on 26 September 2025
amounting to £51,790. It is recommended that a final dividend of 7.6p (2024:
7.6p) per ordinary share be paid totaling £163,999 making the total dividend
payable in the year £215,789. In deciding on the proposed final dividend, the
Directors have considered the expected accumulated realised distributable
profits to 31 March 2026 and concluded these will be in excess of the proposed
dividend.
Summary of dividends paid for the last 10 financial years
Ex-div date Dividend Type Amount Financial Year
09/04/2026 Proposed 7.6p 2025
11/09/2025 Interim 2.4p 2025
10/04/2025 Final 7.6p 2024
12/09/2024 Interim 2.3p 2024
08/03/2024 Final 7.6p 2023
07/09/2023 Interim 2.2p 2023
06/04/2023 Final 7.5p 2022
08/09/2022 Interim 2.1p 2022
10/03/2022 Final 7.5p 2021
09/09/2021 Interim 2.0p 2021
11/03/2021 Final 7.7p 2020
10/09/2020 Interim 1.7p 2020
19/03/2020 Final 9.3p 2019
20/03/2019 Final 9.1p 2018
01/03/2018 Final 8.9p 2017
09/03/2017 Final 8.6p 2016
8. Management Services Agreement
In accordance with a Management Services Agreement entered into in 2025 the
Company has engaged the Investment Manager to manage the investment portfolio.
Under the agreement the Investment Manager will only receive a performance
fee, payable annually in arrears, equal to 10% of the amount by which the
Company's annual portfolio performance before tax exceeds the interest rate
payable on bank bills for that year. If the portfolio's net performance in the
year is less than the interest rate payable on bank bills for that year, then
no performance fee will be payable. As the portfolio performance was negative
over the past twelve months no fee was payable. The allocation of the
performance fee between capital and revenue will be 10% revenue and 90%
capital as agreed by the Investment Manager and the Directors.
9. Investments
Movements in year 2025 2024
£ £
Valuation at beginning of year 3,927,180 4,374,302
Purchases at cost 2,707,150 998,640
Sales - (2,803,989) (1,134,874)
proceeds
- realised gains on sales 101,647 49,006
Decrease in unrealised appreciation (377,205) (359,894)
Valuation at end of year 3,554,783 3,927,180
Book cost at end of year 3,838,676 3,833,868
(Decrease)/increase in unrealised appreciation at the end of the year (283,893) 93,312
3,554,783 3,927,180
UK Main Market listed investments 2,582,208 2,870,580
UK AIM-traded shares 972,575 1,056,600
3,554,783 3,927,180
Gains on
investments
2025 2024
£ £
Realised gains on sales 101,647 49,006
Decrease in unrealised appreciation (377,205) (359,894)
(275,558) (310,888)
The purchase costs and sales proceeds above include transaction costs of
£23,461 (2024: £9,047) and £15,436 (2024: £5,979) respectively.
10. Debtors
2025 2024
£ £
Investment transaction debtors 15,223 70,002
Other debtors 14,584 21,469
29,807 91,471
11. Creditors: amounts falling due within one year
2025 2024
£ £
Social security and other taxes 830 98
Other creditors - 2,850
Accruals and deferred income 45,401 44,176
46,231 47,124
12. Called Up Share Capital
2025 2024
£ £
Authorised
10,000,000 Ordinary Shares of 25p 2,500,000 2,500,000
Allotted, called up and fully paid
2,157,881 Ordinary Shares of 25p 539,470 539,470
13. Financial Instruments
The Company's financial instruments comprise equity investments, cash balances
and debtors and creditors that arise directly from its operations, for
example, in respect of sales and purchases awaiting settlement.
The major risks associated with the Company are market, credit and liquidity
risk. The Company has established a framework for managing these risks. The
Directors have guidelines for the management of investments and financial
instruments.
Market Risk
Market price risk arises mainly from uncertainty about future prices of
financial investments used in the Company's business. It represents the
potential loss the Company might suffer through holding market positions by
way of price movements other than movements in exchange rates and interest
rates.
The Company's investment portfolio is exposed to market price fluctuations
which are monitored by the Investment Manager who gives timely reports of
relevant information to the Directors.
Adherence to the Investment Objective and the internal controls on investments
set by the Company mitigates the risk of excessive exposure to any one
particular type of security or issuer.
The Company's exposure to other changes in market prices at 31 December on its
investments is as follows:
A 20% decrease in the market value of investments at 31 December 2025 would
have decreased net assets attributable shareholders by 33 pence per share
(2024: 37 pence per share). An increase of the same percentage would have an
equal but opposite effect on net assets attributable to shareholders.
Market risk also arises from changes in interest rates and exchange risk.
All of the Company's assets are in sterling and accordingly the Company has
limited currency exposure. The majority of the Company's financial assets
are non-interest bearing, as a result, the Company's financial assets are not
subject to significant risk due to fluctuations in the prevailing levels of
market interest rates.
The carrying amounts of financial assets best represent the maximum credit
risk exposure at the balance sheet date. Bankruptcy or insolvency of the
custodian may cause the Company's rights with respect to securities held with
the custodian to be delayed.
Liquidity Risk
Liquidity Risk is the risk that the Company may have difficulty in meeting
obligations associated with financial liabilities. The Company is able to
reposition its investment portfolio when required so as to accommodate
liquidity needs. However, it may be difficult to realise its investment
portfolio in adverse market conditions.
Maturity Analysis of Financial Liabilities
The Company's financial liabilities consist of creditors as disclosed in note
11. All items are due within one year.
Capital management policies and procedures
The Company's capital management objectives are:
• to ensure the Company's ability to continue as a going concern;
• to provide an adequate return to shareholders;
• to support the Company's stability and growth;
• to provide capital for the purpose of further investments.
The Company actively and regularly reviews and manages its capital structure
to ensure an optimal capital structure, taking into consideration the future
capital requirements of the Company and capital efficiency, projected
operating cash flows and projected strategic investment opportunities. The
management regards capital as total equity and reserves, for capital
management purposes.
Fair values of financial assets and financial liabilities
Fixed asset investments (see note 9) are valued at market bid price where
available which equates to their fair values. The fair values of all other
assets and liabilities are represented by their carrying values in the balance
sheet.
2025 2024
£ £
Fair value through profit or loss investments 3,554,783 3,927,180
Financial instruments by category
The financial instruments of the Company fall into the following categories
31 December 2025
At Amortised Cost Assets at fair value through profit or loss Total
Assets £ £ £
Investments - 3,554,783 3,554,783
Debtors 24,597 - 24,597
Cash at bank 118,191 - 118,191
Total 142,788 3,554,783 3,697,571
Liabilities
Creditors 45,401 - 45,401
Total 45,401 - 45,401
31 December 2024
At Amortised Cost Assets at fair value through profit or loss Total
Assets £ £ £
Investments - 3,927,180 3,927,180
Debtors 91,471 - 91,471
Cash at bank 43,669 - 43,669
Total 135,140 3,927,180 4,062,320
Liabilities
Creditors 47,026 - 47,026
Total 47,026 - 47,026
Fair value hierarchy
In accordance with FRS 102, the Company must disclose the fair value hierarchy
of financial instruments.
The fair value hierarchy consists of the following three classifications:
Classification 1 - Quoted prices in active markets for identical assets or
liabilities.
Quoted in an active market in this context means quoted prices are readily and
regularly available and those prices represent actual and regularly occurring
market transactions on an arm's length basis.
Classification 2 - The price of a recent transaction for an identical asset,
where quoted prices are unavailable.
The price of a recent transaction for an identical asset provides evidence of
fair value as long as there has not been a significant change in economic
circumstances or a significant lapse of time since the transaction took place.
If it can be demonstrated that the last transaction price is not a good
estimate of fair value (e.g. because it reflects the amount that an entity
would receive or pay in a forced transaction, involuntary liquidation or
distress sale), that price is adjusted.
Classification 3 - Inputs for the asset or liability that are based on
observable market data and unobservable market data, to estimate what the
transaction price would have been on the measurement data in an arm's length
exchange motivated by normal business considerations.
The Company only holds classification 1 investments (2024: classification 1
investments only).
14. Net Asset Value per Share
The net asset value per share is based on net assets of £3,554,783 (2024:
£4,015,196) divided by 2,157,881 (2024: 2,157,881) ordinary shares in issue
at the year end.
2025 2024
£ £
Net asset value per share 169.5p 186.1p
15. Related Party Disclosures
During the year the following dividends were paid to the Directors of the
Company as a result of their total shareholding:
Dr E C Pohl AM £8,600¹
Simon Moore £6,750
Frank Ashton £ 223
The Company engaged the services of EC Pohl & Co Pty as the Investment
Manager in January 2025. The Company moved from a monthly fee payable for the
Investment Management services performed by Dr Manny Pohl to an annual
performance fee payable annually in arrears during the year the performance
fee payable was Nil.
Notes:
1. Manny Pohl's relationship with EC Pohl & Co Pty Ltd is
described in Note 1 to the table of Directors' interests on page 25. During
the year dividends amounting to £8,600 were paid to EC Pohl & Co Pty Ltd.
Fraud warning
Fraudsters use persuasive and high-pressure tactics to lure investors into
scams. They may offer to sell shares that turn out to be worthless or
non-existent, or to buy shares at an inflated price in return for an upfront
payment. While high profits are promised, if you buy or sell shares in this
way you will probably lose your money. Detailed advice on how to avoid and
report potential investment scams is available on the FCA website:
www.fca.org.uk/scamsmart.
FURTHER INFORMATION
The Annual General Meeting of the Company will be held on Wednesday 15 April
2026 at 12.00 noon at the offices of Druces LLP, 99 Gresham St, London EC2V
7NG
A copy of the Annual Report will be submitted to the National Storage
Mechanism and will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . This document
will also be available on the Company's website
at https://www.athelneytrust.co.uk/ (https://www.athelneytrust.co.uk/)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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. END FR AKNBKPBKDFNK
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