Chelverton UK Dividend Trust plc (SDVP) 
Chelverton UK Dividend Trust plc: Full year results for the year ended 30 April 2021 
24-Jun-2021 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
  CHELVERTON UK DIVIDEND TRUST PLC 
Annual Report and Accounts for the year to 30 April 2021 
 
Printed copies of the Annual Report will be sent to shareholders shortly. Additional copies may be obtained from the 
Corporate Secretary - Maitland Administration Services Limited, Hamilton Centre, Rodney Way, Chelmsford, Essex CM1 3BY. 
 
The financial information set out below does not constitute the Company's statutory accounts for the year ended 30 
April 2021.  The financial information for 2021 is derived from the statutory accounts for that year.  The auditors, 
Hazlewoods LLP, have reported on the 2021 accounts. Their report was unqualified and did not include a reference to any 
matters to which the auditors draw attention by way of emphasis without qualifying their report.  The financial 
information for 2020 is derived from the statutory accounts for that year. The following text is copied from the Annual 
Report & Accounts. 
 
Strategic Report 
 
The Strategic Report comprising pages 1 to 17 has been prepared in accordance with Section 414A of the Companies Act 
2006 ('the Act'). Its purpose is to inform shareholders and help them understand how the Directors have performed their 
duty under Section 172 of the Act to promote the success of the Company. 
 
Chelverton UK Dividend Trust PLC ('the Company') and its subsidiary SDV 2025 ZDP PLC ('SDVP') ('the subsidiary') 
together form the Group. The Group's funds are invested principally in mid and smaller capitalised UK companies. The 
portfolio comprises companies listed on the Of?cial List and companies admitted to trading on AIM. The Group does not 
invest in other investment trusts or in unquoted companies. No investment is made in preference shares, loan stock or 
notes, convertible securities or ?xed interest securities. 
Financial Highlights 
30 April                                                                   30 April 
Capital 2021                                                               2020            % change 
Total gross assets (GBP'000) 64,013                                          42,040          52.27 
Total net assets (GBP'000) 47,345                                            26,034          81.86 
Net asset value per Ordinary share 227.07p                                 124.86p         81.86 
Mid-market price per Ordinary share 220.00p                                127.50p 
                                                                                           72.55 
(Discount)/premium (3.11%)                                                 2.11% 
Net asset value per Zero Dividend Preference share 2025 114.01p            109.67p         3.96 
Mid-market price per Zero Dividend Preference share 2025 116.00p 
                                                                           102.00p (6.99%) 13.73 
Premium/(discount) 1.75% 
Year ended                                                                 Year ended 
Revenue 2021                                                               2020            % change 
Return per Ordinary share 6.12p                                            9.45p           (35.24) 
Dividends declared per Ordinary share 10.00p                               9.60p           4.17 
Special dividends declared per Ordinary share 0.272p                       -               100 
Total return 
Total return on Group gross assets 57.18% 
                                                                           (28.16%) 
Total return on Group's net assets* (total return as proportion of net 
                                                                           (25.85%) 
assets after the provision for the Zero Dividend Preference shares) 57.24% 
Total return on Group's net assets* 89.79%                                 (36.06%) 
Ongoing charges** 2.33%                                                    2.12% 
Ongoing charges*** 1.56%                                                   1.50%

* Adding back dividends paid in the year.

** Calculated in accordance with the Association of Investment Companies ('AIC') guidelines. Based on total expenses, excluding ?nance costs, for the year and average net asset value.

*** Based on gross assets. Chairman's Statement

It gives me great pleasure to introduce this Annual Report for the ?nancial year to 30 April 2021 to shareholders.

The last 12 months as a whole have undoubtedly been challenging, with a continuation of the problems arising from the global Covid-19 pandemic and considerable ongoing economic uncertainty. Nevertheless your company has performed very well, bene?tting from a strong recovery in the performance of its investee companies and an improving business and economic outlook in the UK from early 2021 onwards.

I and the Board would like to thank David Horner and the Chelverton team for delivering these excellent results, which are a testament to the skill of their portfolio management. Results

The Company's net asset value per Ordinary share as at 30 April 2021 was 227.07p (2020: 124.86p), an increase over the year of 81.86% with an Ordinary share price of 220.00p per share (2020: 127.50p). Total assets, including audited revenue reserves, were GBP64.013m (2020: GBP42.040m), an increase over the year of 52.3%, and the total net assets were GBP47.345m (2020: GBP26.034m). During the same period the MSCI Small Cap Index increased by 42.75%.

The Company was launched on 12 May 1999, and the net asset value per Ordinary share has risen by 138.2% and a total of 206.12p has been paid in dividends, including the fourth interim dividend announced with this report. Since the year end, the net asset value per Ordinary share has risen to 239.16p as at 21 June 2021 and the discount to market NAV is currently 2.99%.

In the year total dividends of 10.272p per Ordinary share were paid and proposed, including the fourth interim dividend of 2.50p and a special dividend of 0.272p. The total dividend in 2021 represents an increase of 7.0% year on year (2020: 9.60p). The Company uses its revenue reserves built over many years to declare the core and any special dividends each year.

The underlying portfolio yield has considerably stabilised this year as our investee companies either return to paying dividends or outline their future plans to do so. As a result of the policy over the past eleven years of growing the annual dividend and retaining to revenue reserves the maximum permitted under the legislation, the Company is in a strong position and can continue to pay its dividend for some time from accumulated reserves should it be required. The Board is con?dent that the company is well positioned to further grow the annual dividend, assuming more favourable macro-economic conditions continue.

The Company's portfolio is currently invested in 74 companies spread across 16 sectors. This spread creates a well diversi?ed portfolio which should, in the future, lead to a strong return of dividend income and subsequently steady revenue growth and, in time, capital growth. Capital structure

During the year the Company's shares occasionally traded at a premium to net asset value, and we have been asked to issue new shares in order to meet market demand. The Board's policy is that it will only consider issuing new shares if it can do so at a premium to NAV which is suf?cient not only to cover all the costs of issuance but also to recognise the value of the revenue reserves that have been built up over many years by retaining pro?ts which would otherwise have been distributed to holders of the existing share capital. Provided these criteria are met, the issue of new shares will enhance net asset value per share, and the increase in the size of the Company should improve liquidity in the market for its shares while making it more attractive to potential new investors.

If the issue of new shares is considered in the future, the Board will take into account the two factors discussed above, and the potential to improve the underlying performance and returns of the company for the bene?t of all shareholders. Dividend

As brie?y discussed in the Results section, the Board has declared a fourth interim dividend of 2.50p per Ordinary share (2020: 2.40p) which, when added to the three quarterly interim dividends of 2.50p per Ordinary share, brings the total to 10.0p (2020: 9.60p) for the year ended 30 April 2021, an increase of 4.2% over the previous year.

In addition, the Board has declared a special dividend of 0.272p per Ordinary share (2020: nil) to be paid with the fourth interim dividend. Shareholders will effectively receive a fourth dividend of 2.772p per Ordinary share. This equates to a total dividend for the year of 10.272p per Ordinary share.

In 2020 the Board successfully balanced the Company's income ?ows and reserves such that interim dividends are declared as four equal payments paid quarterly across the ?nancial year. This approach was maintained in 2021 and is expected to form the foundation of the Company's dividend policy for the foreseeable future. The Company has revenue reserves which after payment of the fourth interim dividend represent some 97.3% of the current annual dividend or some 9.9p per Ordinary share.

The Board is committed to progressively improving the Company's dividend for investors and as such has decided that the four interim dividends paid in respect of the ?nancial year ending 30 April 2022 will very likely exceed, but in any event will not be less than, that paid in respect of the ?nancial year ended 30 April 2021. Outlook

(MORE TO FOLLOW) Dow Jones Newswires

June 24, 2021 02:04 ET (06:04 GMT)