Unaudited Interim Results for the six months ended 31st
The Company today announces its unaudited interim results for the six months ended 31st
The Company’s Business Model
Western’s objectives are to generate growth in value for shareholders over the medium to long term and pay a progressive dividend.
The Company’s business model is to take sizeable minority stakes in relatively small companies, usually immediately before or as their shares are admitted to trading on one of the UK’s stock exchanges and have directors in common through which we can provide advice and support for these growing companies. These may or may not become associated companies. Our aim is that these companies (“Core Holdings”) will grow to a stage at which our support is no longer required and our stake can then be sold over time through the relevant stock market. Companies that are targeted as
Our objective is not to build a diversified portfolio, but to identify a limited number of good opportunities for growth in value. This may well see risk concentrated even further than it has previously been.
To acquire these stakes in new
Our net assets per share remained unchanged at 95p at 31st
Dividend income during the period from
The Company achieved a profit before tax for the half year of £170,000 with earnings per share of 0.91p compared with profit before tax of £460,000 and earnings per share of 2.5p for the same period last year.
An analysis of assets is shown in the unaudited Statement of Financial Position.
Northbridge hires and sells specialist industrial equipment to a non-cyclical customer base. With offices or agents in the
Northbridge’s latest results, for the half year to 30th
Western owns 3,223,632 Northbridge shares, representing 12.45% of Northbridge’s issued share capital. The market value of this investment at 31st
I am a non-executive director of Northbridge.
Swallowfield plc (“Swallowfield”)
Swallowfield is a market leader in the development, formulation, manufacture and supply of cosmetics, toiletries and related household products for global brands and retailers operating in the cosmetics, personal care and household goods market. Further information about Swallowfield is available on its website: www.swallowfield.com
Swallowfield announced its annual results for the 52 weeks ended 24th
The market value of the Company’s holding of shares in Swallowfield on 31st
Western owns 1,500,000 Swallowfield shares (representing 8.9% of Swallowfield’s issued share capital).
Bilby Plc (“Bilby”)
Bilby is an established, and award winning, provider of gas installation, maintenance and general building services to local authority and housing associations across
Bilby announced its interim results for the six month period to 30th
Western owns 2,699,280 Bilby shares, which represent 6.8% of Bilby’s issued share capital. The market value of the Company’s holding in Bilby on 31st
Our share of Tudor Rose International’s estimated results for the period ended 31st
Western has two nominees on the board of
ICH is a small unquoted PLC in which Western holds a 29.9% interest. It owns land with potential for residential planning permission at Milngavie, adjacent to Dougalston golf course, just north east of Glasgow. ICH is currently making representations for its land to be included for housing development in the local authority’s next five year plan, but it may take some time for permission to be received.
As part of its continued planning for the development of the land at Milngavie, ICH appointed
Western holds 15,252,744 shares in ICH (which represents approximately 29.9% of ICH’s issued share capital).
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
The Brexit negotiations conducted during the course of last year continued to create uncertainty as to the eventual Brexit outcome. Stock markets and exchange rates remain volatile. Global interest rates are on a rising trend. All these factors may impact on the value of the Company’s investments. Nevertheless, the Company’s balance sheet remains strong and provides a solid base from which the Company can capitalise on investment opportunities in the future.
The Board has declared an interim dividend of 1.1p per share (prior year: 1.1p) that will be paid on 22nd
For further information, please contact:
Western Selection P.L.C. +44 (0) 20 7796 9060 Cairn Financial Advisers LLP+44 (0) 20 7213 0880 James Caithie / Liam Murray
The dividend timetable is as follows:
Shares trade ex-dividend Thursday
8th March 2018Record date Friday 9th March 2018Payment date Thursday 22nd March 2018
Statement of Comprehensive Income (Unaudited)
Half year Year ended ended 31st December 30th June 2017 2016 2017
GBP000 GBP000 GBP000Income from investments in: Core holdings 93 88 120 Other listed investments 59 (49 (136 152 137 256 Administrative expenses – normal (157) (163) (325) Profit on partial disposal of investment in Swallowfield - 380 845 plc Profit on disposal of other investments (175) 50 50 Operating profit 170 404 826 Share of profits of associated companies 23 48 49 Interest receivable 5 22 26 Finance expense (28) (14) (33) Profit before taxation 170 460 868 Taxation (6) (5) (18) Profit after taxation attributable to equity shareholders 164 455 850 Other Comprehensive Income Fair value recycled from equity on disposal (157) (199) (348) Fair value adjustment on listed undertakings 180 733 2,792 Deferred taxation on fair values - - - Total Other Comprehensive profit/(loss) 23 534 2,444 Total comprehensive income 187 (989 (3,294 Basic and diluted earnings per share attributable to 0.9p 2.5p 4.7p equity holders Interim dividend per share 1.1p 1.1p 1.1p Final dividend per share - - 1.1p Total dividends in respect of the period 1.1p 1.1p 2.2p
Changes in Shareholders’ Equity (Unaudited)
Half year ended Year ended 31st December 30th June 2017 2016 2017
GBP000 GBP000 GBP000Total comprehensive income 187 989 3,294 Dividends paid (197) (188) (386) (10) 801 2,908 Equity shareholders’ funds at start of period 17,125 (14,217 (14,217 Equity shareholders’ funds at end of period 17,115 (15,018) (17,125)
Statement of Financial Position (Unaudited)
Half year ended Year ended 31st December 30th June 2017 2016 2017 Non-current assets
GBP000 GBP000 GBP000Core holdings Bilby plc 3,051 1,344 1,917 Northbridge Industrial Services plc 2,966 3,546 3,320 Swallowfield plc 4,950 4,550 5,700 Investments in Associates 1,870 847 1,846 Treasury investments 5,266 5,043 5,348 Trade and other receivables 192 442 192 18,295 15,772 18,323 Current assets - trade and other receivables 54 44 40 Cash at bank 69 - 78 Other current liabilities - trade and other (103) (100) (91) payables Net current assets/(liabilities) 20 (56) 27 Financial Liabilities due after more than one (1,200) (698) (1,225) year Net assets 17,115 15,018 17,125 Equity Share capital 7,180 7,180 7,180 Share premium account 2,654 2,654 2,654 Capital reserve 3 3 3 Unrealised profits on investments 6,040 4,107 6,018 Share of undistributed (losses) of associates (128) (152) (151) Realised profits 1,366 1,226 1,421 Shareholders’ funds 17,115 15,018 17,125 Net assets per share 95p 84p 95p Number of shares in issue 17,949,872 17,949,872 17,949,872
Statement of Cash Flows (Unaudited)
Half year Year ended ended 31st December 30th June 2017 2016 2017
GBP000 GBP000 GBP000Profit before taxation 170 460 868 Adjustments for non-cash and non-operating expenses: Profits on sale of investments (175) (430) (895) Share of results of associates (23) (48) (49) Net interest paid/(received) 23 (8) 7 Increase in debtors and accrued income (14) 291 45 Increase in creditors 11 1 (8) (8) 266 (32) Taxation paid (6) (5) (18) Net interest (paid)/received (23) 8 (7) Cash (absorbed)/generated by operations (37) 269 (57) Cash flow from Investment activities Proceeds of disposal of treasury investments 250 112 112 Purchase of treasury investments - (624) (623) 250 (512) (511) Investment in associate - - (500) Disposal of part of core holdings - 653 1,385 Purchase of core holdings - (32) (190) Net cash inflow/(outflow) from investment activities 250 109 184 Financing activities Loan drawdown (25) 175 225 Equity dividend paid (197) (188) (386) Net cash outflow from financing activities (222) (13) (161) Movement in cash and cash equivalents (9) 365 (34) Cash and cash equivalents at start of year 78 112 112 Cash and cash equivalents at end of year 69 477 78
Reconciliation to movements in cash and cash equivalents
At start Cash At end of Period Flow of Period Half year ended
GBP000 GBP000 GBP00031st December 2017 Cash and cash equivalents 78 (9) 69 Bank overdraft (1,225) 25 (1,200) Net debt (1,147) 16 (1,131) 31st December 2016 Bank overdraft 3,889 (2,800) 1,089 Year ended 30th June 2017Cash and cash equivalents 112 (34) 78 Bank overdraft (1,000) (225) (1,225) Net debt (888) (259) (1,147)
1. Basis of preparation: The results for the six months ended
31st December 2017are unaudited. The information contained in this Interim Statement does not constitute statutory accounts within the meaning of the Companies Act 2006. The statutory accounts of Western Selection P.L.C. for the year ended 30th June 2017have been reported on by the Company's auditors and have been delivered to the Registrar of Companies. The report of the auditors was unqualified. This Interim Statement has been prepared in accordance with the accounting policies contained in the Company’s 2017 Annual Report and Accounts. 2. Earnings per share: The calculation of earnings per share is based on the weighted average number of shares in issue for the period (17,949,872) and the profit on ordinary activities after tax.
Neither this Interim Statement nor any future interim statements of the Company will be posted to shareholders. The Interim Statement is available as follows:
-- on the Company’s website at www.westernselection.co.uk ; and -- by writing to
City Group P.L.C., the Company Secretary, at 6 Middle Street, LondonEC1A 7JA
This Interim Statement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors accept responsibility for the contents of this Interim Statement.