Report and Accounts. Three years is considered by the Board to be the maximum period over which it is currently

feasible to make a viability forecast based on known risks and macro- economic trends.

The following facts, which have not materially changed in the last ?nancial year, support the Directors' view: ? the Company has a liquid investment portfolio invested predominantly in readily realisable smaller capitalised

UK-listed and AIM traded securities and has some short-term cash on deposit; and ? revenue expenses of the Company are covered multiple times by investment income, even in the event that lower

income levels as a result of the Covid-19 pandemic continue for some considerable time.

In order to maintain viability, the Company has a robust risk control framework for the identi?cation and mitigation of risk, which is reviewed regularly by the Board. The Directors also seek reassurance from independent service providers, to whom all management and administrative functions are delegated, that their operations are well managed and they are taking appropriate action to monitor and mitigate risk. The Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of the assessment. Other Statutory Information

Company status and business model

The Company was incorporated on 6 April 1999 and commenced trading on 12 May 1999. The Company is a closed-ended investment trust with registered number 03749536. Its capital structure consists of Ordinary shares of 25p each, which are listed and traded on the main market of the London Stock Exchange.

The principal activity of the Company is to carry on business as an investment trust. The Company has been granted approval from HMRC as an investment trust under Sections 1158/1159 of the Corporation Tax Act 2010 ('1158/1159') on an ongoing basis. The Company will be treated as an investment trust company subject to there being no serious breaches of the conditions for approval. The Company is also an investment company as de?ned in Section 833 of the Companies Act 2006. The current portfolio of the Company is such that its shares are eligible for inclusion in ISAs up to the maximum annual subscription limit and the Directors expect this eligibility to be maintained.

The Group ?nancial statements consolidate the audited annual report and ?nancial statements of the Company and SDVP, its subsidiary undertaking, for the year ended 30 April 2021. The Company owns 100% of the issued ordinary share capital and voting rights of SDVP, which was incorporated on 25 October 2017.

Further information on the capital structure of the Company and SDVP can be found on pages 73 to 74.

AIFM

The Board is compliant with the directive and is registered as a Small Registered Alternative Investment Fund Manager ('AIFM') with the FCA and all required returns have been completed and ?led.

Employees, environmental, human rights and community issues

The Board recognises the requirement under Section 414C of the Companies Act to detail information about employees, environmental, human rights and community issues, including information about any policies it has in relation to these matters and the effectiveness of these policies. These requirements and the requirements of the Modern Slavery Act 2015 do not directly apply to the Company as it has no employees and no physical assets, all the Directors are non-executive and it has outsourced all its management and administrative functions to third-party service providers. The Company has therefore not reported further in respect of these provisions. However, in carrying out its activities and in relationships with service providers, the Company aims to conduct itself responsibly, ethically and fairly at all times.

Environmental, Social, Governance ('ESG')

ESG matters will have an increasing prominence in future ?nancial and regulatory reporting. In company meetings, the Investment Manager routinely questions the corporate management on a variety of topics, such as safety records, environmental footprint and the key areas of focus of their board papers, to ensure that portfolio companies and prospective investments are adhering to best practice and emerging market trends at all times.

The way companies respond to ESG issues can affect their business performance, both directly and indirectly. ESG factors are considered by Chelverton Asset Management investment teams and increasingly contribute to investment decision making, however investment decisions also continue to balance ESG performance in the context of overall investment potential.

The Investment Manager is successfully integrating responsible investing considerations more closely into investment processes for the Company and the other investment vehicles it operates on behalf of investors, a journey that began in 2018. The appointment and integration in 2018 of a Corporate Governance Manager within the investment team at Chelverton Asset Management has been supported by the appointment of an experienced ESG professional to the position of Responsible Investing Manager in October 2020. This renewed commitment is strengthening the Chelverton team's drive to focus on ESG priorities within all Chelverton's investment processes. Misjudgements on ESG matters can increasingly incur major additional costs to the portfolio holdings, as well as undermining their equity returns through reputational damage.

Global greenhouse gas emissions

The Company has no greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emission-producing sources under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013.

Streamlined energy and carbon reporting

The Company is categorised as a lower energy user under the HMRC Environmental Reporting Guidelines March 2019 and is therefore not required to make the detailed disclosures of energy and carbon information set out within the guidelines. The Company has therefore not reported further in respect of these guidelines.

Culture and values

The Company's values are to act responsibly, ethically and fairly at all times. The Company's culture is driven by its values and is focused on providing Ordinary shareholders with a high income and opportunity for capital growth, as set out on page 11. As the Company has no employees, its culture is represented by the values, conduct and performance of the Board, the Investment Manager and its key service providers, who all work collaboratively to support delivery of the Company's strategy.

Current and future developments

A review of the main features of the year and the outlook for the Company are contained in the Chairman's Statement on pages 2 and 3 and the Investment Manager's Report on pages 4 to 6.

Dividends declared/paid 


30 April 2021                              30 April 2020 
                  Payment date   p         p 
First interim     2 October 2020 2.50      2.40 
Second interim    2 January 2021 2.50      2.40 
Third interim     3 April 2021   2.50      2.40 
Fourth interim    16 July 2021      2.50       2.40 
                                   10.00       9.60 
Special dividend                   0.272         - 
                                    10.272 9.60

The Directors have not recommended a ?nal dividend in respect of the year ended 30 April 2021 (2020: nil). 


Ten year dividend history 
2021                       2020 2019  2018 2017 2016 2015  2014  2013 2012 
                    p      p    p     p    p    p    p     p     p    p 
1st Quarter         2.50   2.40 2.19  2.02 1.85 1.70 1.575 1.475 1.40 1.35 
2nd Quarter         2.50   2.40 2.19  2.02 1.85 1.70 1.575 1.475 1.40 1.35 
3rd Quarter         2.50   2.40 2.19  2.02 1.85 1.70 1.575 1.475 1.40 1.35 
                    7.50   7.20 6.57  6.06 5.55 5.10 4.725 4.425 4.20 4.05 
4th Quarter         2.50   2.40 2.40  2.40 2.40 2.40 2.40  2.40  2.40 2.35 
                    10.00  9.60 8.97  8.46 7.95 7.50 7.125 6.825 6.60 6.40 
% increase of core 
dividend            4.17   7.02 6.03  6.47 6.00 5.26 4.40  3.41  3.12 3.23 
Special dividend    0.272  -    2.50  0.66 1.86 1.60 0.30  2.75  -    - 
Total dividend      10.272 9.60 11.47 9.12 9.81 9.10 7.425 9.575 6.60 6.40

Diversity and succession planning

As there were no changes to Board composition during the year, the Board of Directors of the Company comprised four male Directors in the year to 30 April 2021. The key criteria for the appointment of new Directors will be the skills and experience of candidates having regard also to the bene?ts of diversity in the interests of shareholder value. The Directors are satis?ed that the Board currently contains members with an appropriate breadth of skills and relevant sector experience. Succession planning is considered on at least an annual basis, further details of which are on page 27. In relation to future appointments the Board will seek to consider a wide range of candidates with due regard to diversity, spanning gender, ethnicity, background and experience.

The Strategic Report is signed on behalf of the Board by Lord Lamont of Lerwick

Chairman

24 June 2021

Directors

The Rt Hon. Lord Lamont of Lerwick*+ (Chairman) was Chancellor of the Exchequer between 1990 and 1993. Prior to that appointment, Lord Lamont was Chief Secretary to the Treasury between 1989 and 1990. Following his retirement as a Member of Parliament in 1997, he has held numerous positions as a director of various organisations and funds, including NM Rothschild and Sons Limited. He is a director of European Opportunities Trust plc.

Lord Lamont was appointed to the Board on 27 February 2006.

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