Athelney Trust maintains dividend as net asset value declines

Athelney Trust PLC on Thursday declared an unchanged interim payout, after a first half that was "more challenging" than expected.

The trust, which invests in smaller UK companies for dividend and capital growth, reported a net asset value per share of 163.1 pence as of June 30, down 3.8% from 169.5p six months prior, and down from 187.2p on June 30, 2025.

Shares in Athelney Trust were untraded at 165.00 pence on Friday in London.

"Although disappointing, this performance should be viewed in the context of the difficult market conditions experienced across much of the UK smaller companies sector," Chair Frank Ashton noted.

Athelney's share price discount to NAV narrowed to 1.1% as of June 30 from 2.6% as of December 31, compared with the 12.46% sub-sector average from the AIC UK Smaller Companies sector.

Gross revenue for the six months ended June 30 was £101,002, down 25% from £133,835 the year before. The revenue return per share decreased to 4.0p from 5.5p.

Athelney Trust declared an interim dividend of 2.4p per share, unchanged from the year before. Its total dividend for 2025 was 10.0p per share, up from 9.9p for 2024.

"The first six months of 2026 proved to be a more challenging period for UK equity markets than many investors had anticipated at the start of the year," Ashton commented. "After a stronger period during 2025, the UK smaller companies sector experienced a more difficult first half of 2026. Renewed geopolitical uncertainty, including the conflict in the Middle East, together with continuing uncertainty over US trade policy, global economic growth and the outlook for corporate earnings, weakened investor confidence.

"These factors particularly affected smaller companies, where valuations remain sensitive to changes in sentiment and liquidity."

Going forward, Ashton noted that the UK outlook "remains uncertain," adding: "However, the contrast between subdued investor sentiment and the underlying quality and valuations of many UK smaller companies continues to present opportunities. Many businesses remain well managed, financially sound and capable of delivering sustainable growth, while their shares trade at significant discounts to both historical valuations and comparable overseas companies."

He continued: "The narrowing of the company's discount during the period is encouraging. We continue to believe that Athelney represents an attractive opportunity for investors as undervalued portfolio companies deliver results and wider interest in UK smaller companies recovers."

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