IFRS 10 stipulates that subsidiaries of Investment Entities are not consolidated. The Investment Company meets all three

characteristics of an Investment Entity as described, however, it is envisaged that one of the subsidiaries will be a dealing

subsidiary and, therefore consolidated financial statements are presented for the Group. The financial statements of the

subsidiaries are prepared for the same reporting year as the parent Company, using consistent accounting policies. All

The Directors are of the opinion that the Group is engaged in a single segment of business, being investment

Transactions denominated in foreign currencies are converted to Pounds Sterling at the actual exchange rate as at

the date of the transaction. Items that are denominated in foreign currencies at the year-end are reported at the

rate of exchange at the Balance Sheet date. Any gain or loss arising from a change in exchange rate subsequent

to the date of the transaction is included as an exchange gain or loss in the capital reserve or the revenue account

for impairment at least at each reporting date.

Dividends receivable on quoted equity shares are taken to revenue or capital depending on the nature of the dividend,

on an ex-dividend basis. Special dividends are considered individually to ascertain the reason behind the payment

and determine whether they are treated as revenue or capital. Dividends receivable on equity shares where no ex-

dividend date is quoted are brought into account when the Company’s right to receive payment is established. Fixed

returns on non-equity shares are recognised on a time-apportioned basis.

Dividends from overseas companies are shown gross of any non-recoverable withholding taxes which are disclosed

separately in the Consolidated Income Statement.

Dividend income will only be recognised when there is reasonable certainty that the issuer has the ability to make

The tax expense represents the sum of the tax currently payable. The tax payable is based on the taxable profit

for the year. Taxable profit differs from net profit as reported in the Consolidated Income Statement because it

excludes items that are taxable or deductible in other years and it further excludes items that are never taxable or

deductible. The Group’s liability for current tax is calculated using tax rates applicable at the Balance Sheet date.

No taxation liability arises on gains from sales of fixed asset investments by the Group by virtue of its investment

trust status. However, the net revenue (excluding UK dividend income) accruing to the Group is liable to corporation

Dividends to Shareholders are recognised as a liability in the period in which they are paid or approved in general

meetings and are taken to the Statement of Changes in Equity. Dividends declared and approved by the Company

their nominal value, 50p, on a distribution of assets or a winding up.

1. Accounting Policies

continued

Share Premium

The share premium account represents the accumulated premium paid for shares issued in previous periods above

their nominal value less issue expenses. This is a reserve forming part of non-distributable reserves. The following

items are taken to this reserve:

•

costs associated with the issue of equity; and

•

premium on the issue of shares.

Following completion of the Tender Offer, on 26 July 2023 Chelverton Asset Management was appointed as

Investment Manager.

The Investment Manager is entitled to an annual fee of 0.75% of the Net Asset Value. To the extent that the ongoing

charges ratio exceeds 2% the Investment Manager has waived the management fee and shall instead make a

contribution to the Company to ensure that the ongoing charges ratio does not exceed 2%. An amount of £189,476 is

available to offset against future investment management fees.

The current tax charge for the year differs from the standard rate of corporation tax in the UK of 25.0%. The

differences are explained below:

Factors that may affect future tax charges

At 30 June 2024, the Company held interests in the following subsidiary companies:

The registered office of the Subsidiaries is the same as that of the Company.

On 29 May 2024, New Centurion Trust Limited was placed into members' voluntary liquidation. This subsidiary is a

As announced on 18 July 2023, 3,980,664 ordinary shares were validly tendered pursuant to the Tender Offer,

constituting 83.4% of the existing issued share capital. All validly tendered ordinary shares were accepted in full, with

3,747,673 ordinary shares repurchased by the Company and 232,991 ordinary shares sold to Incoming Shareholders

pursuant to the Matched Bargain Facility. Tender Offer costs totalling £598,818 were incurred as part of this offer.

An amount of £516,583 was incurred at 30 June 2023 and a further £82,235 incurred during the year.

continued

In addition, on 26 July 2023 the Company issued 812,829 new ordinary shares in connection with the Offer for

Subscription and Intermediaries Offer.

Following Admission, and completion of the Tender Offer, the Company's total issued share capital comprises of

5,584,878 ordinary shares. The Company holds all 3,747,673 ordinary shares that were repurchased pursuant to

the Tender Offer in Treasury. Therefore, the total number of shares with voting rights in the Company is 1,837,205.

The above figure of 1,837,205 may be used by Shareholders as the denominator for the calculations by which they

will determine if they are required to notify their interest, or a change to their interest in, the Company under the

FCA's Disclosure Guidance and Transparency Rules.

The ordinary shares entitle the holders to receive all ordinary dividends and all remaining assets on a winding up,

after the fixed rate preference shares have been satisfied in full.

At the year end, the Company held 3,747,673 ordinary shares in Treasury (2023: None).

14. Issued Preference Share Capital

The 1,717,565 fixed rate preference shares are non-voting, entitled to receive a cumulative dividend of 0.01p per

share per annum, and are entitled to receive their nominal value of 50p, on a distribution of assets or a winding

up. The whole of the issue is held by New Centurion Trust Limited, a wholly owned subsidiary of the Company. New

Centurion Trust was placed into members' voluntary liquidation on 29 May 2024.

The Directors do not consider the fair values of the issued preference share capital to be significantly different from

Investment Objective and Policy

At a General Meeting held on 26 June 2023, the members voted to amend the Investment Objective to: maximise

capital growth for Shareholders over the long-term by investing in high-quality, quoted, UK small and mid-

cap companies.

Risks

The Group’s financial risk management can be found in the Strategic Report on pages 13 and 14.

The Group’s financial instruments comprise securities, cash balances, receivables and payables. They are classified

in the following categories:

•

those to be measured subsequently at fair value through profit or loss; and

•

those to be measured at amortised cost.

The financial assets held at amortised cost include trade and other receivables, cash and cash equivalents.

The main risks identified arising from the Group’s financial instruments are:

(a)

market price risk, including currency risk, interest rate risk and other price risk;

(b)

liquidity risk; and

(c)

credit risk.

The Board reviews and agrees policies for managing each of these risks, which are summarised below.

investment performance and its investment strategy.

realised for cash. At the year end, 3.4% of the portfolio was held in cash.

Sensitivity Analysis

At the year end, the Board believes that the Group's assets are mainly exposed to market price risk. A fall of 20%

in the value of the equity shares would reduce the assets of the Company by 1,413,964 or 77.0 pence per share. An

At the year end, the Board consisted of four non-executive Directors all of whom, with the exception of Mr Horner,

who is Managing Director of Chelverton Asset Management, the Company's Investment Manager, are considered

to be independent by the Board. Mr Dighé holds a directorship within Edelweiss Holdings plc (“Edelweiss”), who

were significant Shareholders in the Company in the previous year. For the year ended 30 June 2024, the Directors,

including the Chairman but excluding David Horner, received an annual fee of £20,000. Further information can be

found within the Directors' Remuneration Report on page 33.

Michael Weeks resigned from the Board on 26 July 2023 and David Horner was appointed as a non-executive

Director. Mr Horner is the Managing Director of the Investment Manager. Mr Horner has waived his right to receive

fees. Further information regarding waived investment management fees can be found in Note 3 on page 57.

The Directors did not receive any other form of remuneration and at the year end, there were no outstanding fees

payable to Directors (2023: £nil).