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LONDON - Chelverton UK Dividend Trust PLC reported a 14.5% decline in net asset value (NAV) per share to 133.04p for the year ended April 30, 2025, compared to 155.59p in the previous year.
The investment trust, which focuses on mid and smaller capitalized UK companies, saw its total net assets decrease by 10.9% to £29.87 million. The company’s total gross assets fell by 41.9% to £30.33 million, primarily due to the redemption of Zero Dividend Preference (ZDP) shares on April 30, 2025.
Despite the challenging market conditions, the company declared a total dividend of 13.00p per Ordinary share for the year, representing a 3.2% increase from the previous year’s 12.60p. This marked the 15th consecutive year of dividend increases.
Chairman Howard Myles noted that the company was unable to replace its ZDP shares upon their redemption, which necessitated the sale of assets during a period of market volatility. These sales resulted in capital losses of approximately £5 million.
Looking ahead, the Board announced its intention to use revenue reserves to maintain a dividend of 10.00p per share annually for the next three years, providing a yield of 7.0% based on the recent share price.
The Investment Manager remains confident in the prospects for small and mid-cap companies, noting that their market rating is historically low. The portfolio now offers "a compelling combination of an attractive dividend yield and the potential for capital upside from any recovery in the UK small and midcap market," according to the company’s statement.
The announcement was based on a press release statement from the company dated July 10, 2025.
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