Athelney Trust PLC on Monday reported a sharp drop in net asset value for 2022, due to market uncertainty and inflation, but still lifted its total dividend.

Athelney invests in smaller UK companies for dividend and capital growth.

Net asset value as at December 31 stood at 219.4 pence, down 29% compared to 310.3p on the same date a year prior.

This compares to a 20% decrease in the FTSE 250, meaning that the company underperformed its benchmark.

Athelney’s share price fell 6.7% to 210.0p as at December 31 from 225.0p, year-on-year.

‘The year of 2022 was, for many, including the investment community, one to forget. Shocks and surprises marked the year, which ended very poorly with market uncertainty and loss of confidence created by the short-lived Liz Truss premiership, made worse by the impact of double-digit UK inflation,’ Non-Executive Chair Frank Ashton commented.

‘I am disappointed to report the poor absolute performance of the company in the past 12 months and comparatively against FTSE-250 and especially FTSE-100 indices. We are very aware of the trust placed in us by investors in the company and take our responsibilities very seriously,’ he added.

It recommended a final dividend of 7.5p per share, increasing its total dividend for the year to 9.6p, up 1.1% from 9.5p.

Looking ahead, the company expressed uncertainty regarding how long inflation will prevail and global assistance or headwind for UK economic recovery.

‘We cannot know the answers to these questions; however, I do know that Manny Pohl’s meticulous and repeatable investment and divestment approach, explained in his report, will on average, find and capture value and that being invested for the long term, in those shares, is right also,’ Ashton noted.

Shares closed untraded on Monday in London, last quoted at 215.00 pence.

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