Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

An active market is a market in which transactions for the asset or liability occur with suf?cient frequency and volume on an ongoing basis such that quoted prices re?ect prices at which an orderly transaction would take place between market participants at the measurement date. Quoted prices provided by external pricing services, brokers and vendors are included in Level 1, if they re?ect actual and regularly occurring market transactions on an arm's length basis.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

Level 2 inputs include the following: ? Quoted prices for similar (i.e. not identical) assets in active markets. ? Quoted prices for identical or similar assets or liabilities in markets that are not active. Characteristics of an

inactive market include a signi?cant decline in the volume and level of trading activity, the available prices vary

signi?cantly over time or among market participants or the prices are not current.

IFRS 7 hierarchy (continued) ? Inputs other than quoted prices that are observable for the asset (for example, interest rates and yield curves

observable at commonly quoted intervals). ? Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means

(market-corroborated inputs).

Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is signi?cant to the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require signi?cant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the signi?cance of a particular input to the fair value measurement in its entirety requires judgement, considering factors speci?c to the asset or liability.

The determination of what constitutes 'observable' requires signi?cant judgement by the Company. The Company considers observable data to investments actively traded in organised ?nancial markets. Fair value is generally determined by reference to Stock Exchange quoted market bid prices (or last traded in respect of SETS) at the close of business on the Balance Sheet date, without adjustment for transaction costs necessary to realise the asset.

Investments whose values are based on quoted market prices in active markets, and therefore classi?ed within Level 1, include active listed equities. The Company does not adjust the quoted price for these investments.

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classi?ed within Level 2.

Investments classi?ed within Level 3 have signi?cant unobservable inputs. Level 3 instruments include private equity and corporate debt securities. As observable prices are not available for these securities, the Company has used valuation techniques to derive the fair value.

The Company has no Level 2 or Level 3 investments (2020: same). 23 CAPITAL MANAGEMENT POLICIES AND PROCEDURES

The Group's capital management objectives are: ? to ensure the Group's ability to continue as a going concern; ? to provide an adequate return to shareholders; ? to support the Group's stability and growth; ? to provide capital for the purpose of further investments. 23 CAPITAL MANAGEMENT POLICIES AND PROCEDURES (continued)

The Group actively and regularly reviews and manages its capital structure to ensure an optimal capital structure and to maximise equity holder returns, taking into consideration the future capital requirements of the Group and capital ef?ciency, prevailing and projected pro?tability, projected operating cash ?ows and projected strategic investment opportunities. The management regards capital as total equity and reserves, for capital management purposes. The Group currently do not have any loans and the Directors do not intend to have any loans or borrowings. Shareholder Information Financial calendar

Group's year end 30 April

Quarterly interim dividends usually paid July, October, January and April Annual results announced July

Annual General Meeting September

Group's half year 31 October

Half year results announced December Share prices and performance information

The Company's Ordinary shares and the Zero Dividend Preference shares issued through SDVP are listed on the London Stock Exchange Main Market.

The net asset values are announced daily to the London Stock Exchange and published monthly via the AIC.

Information about the Group can be obtained on the Chelverton website at www.chelvertonam.com. Any enquiries can also be e-mailed to cam@chelvertonam.com. Share register enquiries

The register for the Ordinary shares and the Zero Dividend Preference shares are maintained by Share Registrars Limited. In the event of queries regarding your holding, please contact the Registrar on 01252 821390. Changes of name and/or address must be noti?ed in writing to the Registrar. Company Summary History

The Company was launched on 12 May 1999, raising GBP21.38 million before expenses, by a placing of 15,000,000 Ordinary shares and, through its former subsidiary company, Small Companies PLC, 6,250,000 Zero Dividend Preference shares and 31,260 Preference shares. A further 750,000 Ordinary shares were issued as a result of a placing for cash on 3 March 2000 and on 26 October 2005 a further 500,000 shares were issued. The subsidiary, Small Companies PLC, was placed into members' voluntary liquidation on 30 April 2007, following which the capital entitlements of the Zero Dividend Preference and Preference shares were repaid to those investors.

A further subsidiary, Chelverton Small Companies ZDP PLC, was incorporated on 13 July 2012, to issue Zero Dividend Preference shares. A total of 8,500,000 Zero Dividend Preference shares were issued on 24 August 2012, and a further 849,000 on 24 March 2017. This subsidiary was placed into members' voluntary liquidation on 5 January 2018, following which the capital entitlements of the Zero Dividend Preference shares were repaid. Group structure

The Company has in issue one class of Ordinary share. In addition, it has a wholly owned subsidiary, SDVP, through which Zero Dividend Preference shares have been issued. SDVP was incorporated on 25 October 2017 and has a capital structure comprising unlisted Ordinary shares and Zero Dividend Preference shares listed on the Of?cial List and traded on the London Stock Exchange. SDVP was incorporated speci?cally for the issue of Zero Dividend Preference shares.

On 8 March 2018, SDVP issued 12,780,083 Zero Dividend Preference shares at 100p per share. The expenses of the placing were borne by the Company. On 11 April 2018, SDVP issued a further 1,419,917 Zero Dividend Preference shares at 103p per share (a premium of 3p per share) and net proceeds of

GBP1,500,000. On the 10 and 15 May 2018, SDVP issued a further 100,000 and 200,000 Zero Dividend Preference shares at 104p per share (a premium of 4p per share), and net proceeds of GBP313,000. Pursuant to a loan agreement between SDVP and the Company, SDVP has lent the proceeds of the placing to the Company. The loan is non-interest bearing and is repayable three business days before the Zero Dividend Preference share redemption date of 30 April 2025 or, if required by SDVP, at any time prior to that date in order to repay the Zero Dividend Preference share entitlement. The funds are to be managed in accordance with the investment policy of the Company.

A contribution agreement between the Company and SDVP has also been made whereby the Company will undertake to contribute such funds as will ensure that SDVP will have in aggregate suf?cient assets on 30 April 2025 to satisfy the ?nal capital entitlement of the Zero Dividend Preference shares. Total net assets and market capitalisation at year end

As at 30 April 2021, the Company had a market capitalisation of GBP45,870,000 (2020: GBP26,584,000) and total net assets amounted to GBP47,345,000 (2020: GBP26,034,000). Management fee

The fee payable to the Investment Manager is 1% of the combined gross assets of the Group. Capital structure

Details of share structure and entitlements and voting rights of each class can be found on pages 73 and 74. ISA status

The Company's Ordinary shares are qualifying investments for Individual Savings Accounts ('ISAs'), as are the Zero Dividend Preference shares of SDVP.

Registered in England No. 03749536

A member of the Association of Investment Companies Capital Structure Chelverton UK Dividend Trust PLC ('the Company')

Chelverton UK Dividend Trust PLC was registered on 3 September 2003 with company number 03749536. The Company has in issue one class of Ordinary share. In addition, it has a wholly owned subsidiary, SDV 2025 ZDP PLC, which was registered on 25 October 2017 with company number 11031268, through which Zero Dividend Preference shares have been issued. Ordinary shares of 25p each ('Ordinary shares') - 20,850,000 in issue as at 30 April 2021

Share Capital Events

No Ordinary shares were issued during the year. The Company has only one class of share and this ?gure represents 100% of the Company's share capital and voting rights.

Dividends

Holders of Ordinary shares are entitled to dividends.

Capital

On a winding up of the Company, Ordinary shareholders will be entitled to all surplus assets of the Company available after payment of the Company's liabilities, including the full and ?nal capital entitlement of the Zero Dividend Preference shares.

Voting

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