Western Selection P.L.C.
(the “Company” or “Western”)
Unaudited Preliminary Results for the Year Ended 30th
The Company today announces its unaudited preliminary financial results for the year ended 30th
Western’s objective is to generate growth in value for shareholders over the medium to long term and pay a progressive dividend.
Our 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. The 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 into 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
Results for the year
The Company’s profit on ordinary activities after tax for the year was £850,000 (2016 – profit after tax £64,000). Western sold 500,000 shares of its 2,000,000 holding in Swallowfield plc during the year, realising an exceptional profit of £845,000.
Dividend income from
During the year Western increased its investment in Bilby plc (£190,000), and in the
Net assets per share have increased by 20% from 79p to 95p reflecting the exceptional profit and the increases in values of the
Northbridge Industrial Services plc (“Northbridge”)
Northbridge hires and sells specialist industrial equipment to a non-cyclical customer base. With offices or agents in the
Northbridge, which is admitted to trading on AIM, announced its results for the year ended 31st
Western holds 3,223,632 Northbridge shares which represents approximately 12.45% of Northbridge’s issued share capital. The value of this investment at 30th
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 their website: www.swallowfield.com
Swallowfield, which is admitted to trading on AIM, announced its annual results for the 52 weeks ended 24th
Western sold 500,000 Swallowfield shares, realising a profit of £845,000, during the year. At the reporting date, being 30th
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
During the year Western invested £190,000 in acquiring 362,912 shares in Bilby. Western now holds 2,699,280 Bilby shares which represents approximately 6.8% of Bilby’s issued share capital. The market value of this investment on 30th
Bilby, which is admitted to trading on AIM, announced its results for the year ended 31st
Western holds 441,090 A ordinary shares in
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 has provisionally appointed
Western subscribed £80,750 for 8,074,982 shares in ICH pursuant to a rights issue, which was completed in
Western holds 48.6% and London Finance & Investment Group P.L.C. (Western’s largest shareholder) holds 51.4% of
The Brexit vote in 2016 and the outcome of the recent
Exchange rate movements impose additional volatility on the valuation of the Company’s holdings of shares in overseas companies. The Company’s strong balance sheet provides it with the opportunity to capitalise on any opportunities that may arise.
Dividend Declaration and Timetable
The Company paid an interim dividend of 1.1p per share on 23rd
A final dividend of 1.1p per share is proposed by the Board, making 2.2p for the year, compared to 2.1p for 2016. The dividend timetable, if the dividend is approved by shareholders at the forthcoming AGM, is as follows:
Shares trade ex-dividend Thursday 23rd
Record date Friday 24th
Payment date Monday, 11th
The Company’s 2017 Report and Accounts will shortly be finalised and sent to shareholders.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact:
Western Selection P.L.C. +44(0) 20 7796 9060
Cairn Financial Advisers LLPJames Caithie / Liam Murray+44(0) 20 7213 0880
Statement of Comprehensive Income
For the year ended 30th June 2017 2016 £000 £000 Income from investments in: Listed Core holdings 120 129 Other listed undertakings 136 101 256 230 Administrative expenses (325) (290) Profit on partial disposal of investment in Swallowfield plc 845 - Profit on disposal of other investments 50 49 Operating profit/(loss) 826 (11) Share of profits of associated companies 49 52 Interest receivable 26 45 Finance costs (33) (9) Profit before taxation 868 77 Taxation (18) (13) Profit after taxation attributable to equity shareholders 850 64 Other comprehensive income Items that may be reclassified subsequently to profit and loss :- Fair value recycled from equity on disposal (348) (31) Fair value adjustment on listed undertakings 2,792 1,073 Total other comprehensive income 2,444 1,042 Total comprehensive profit 3,294 1,106 Basic and diluted earnings per share attributable to equity 4.7p 0.4p holders
Statement of Changes of Equity
Share Share Capital Unrealised Share of Realised Total capital premium reserve profits on undistributed profits account account investments profits/ (losses) of associates £000 £000 £000 £000 £000 £000 £000 Year ended 30th June 2016 Balances at 7,180 2,654 3 2,532 (252) 1,370 13,487 1st July 2015 Profit for - - - - 52 12 64 the period Items that - - - 1,042 - - 1,042 can be reclassified to the income statements – Other comprehensive income Fair values net of tax Total - - - 1,042 52 12 1,106 comprehensive income Transactions with shareholders Final - - - - - (188) (188) dividend paid in respect of prior year Interim - - - - - (188) (188) dividends paid in respect of the year Total - - - - - (376) (376) transactions with shareholders Balances at 7,180 2,654 3 3,574 (200) 1,006 14,217 30th June 2016 Share Share Capital Unrealised Share of Realised Total capital premium reserve profits on undistributed profits account account investments profits/ (losses) of associates £000 £000 £000 £000 £000 £000 £000 Year ended 30th June 2017 Balances at 7,180 2,654 3 3,574 (200) 1,006 14,217 1st July 2016 Profit for - - - - 49 801 850 the period Items that - - - 2,444 - - 2,444 can be reclassified to the income statements – Other comprehensive income – Fair values net of tax Total comprehensive - - - 2,444 49 801 3,294 Income Transactions with shareholders Final - - - - - (188) (188) dividend paid in respect of prior year Interim dividends - - - - - (198) (198) paid in respect of the year Total transactions - - - - - (386) (386) with shareholders Balances at 30th June 7,180 2,654 3 6,018 (151) 1,421 17,125 2017
Statement of Financial Position
At 30th June 2017 2016 £000 £000 Non-current Assets: Investment in Associated companies 1,846 799 Investments classified as available for sale – Core Holdings 16,285 13,628 Other receivables 192 692 18,323 15,119 Current Assets Trade and other receivables 40 85 Cash and cash equivalents 78 112 118 197 Current Liabilities Trade and other payables (91) (99) Net Current Assets 27 98 Financial Liabilities falling due in more than one year (1,225) (1,000) Net Assets 17,125 14,217 Equity Share capital 7,180 7,180 Share premium account 2,654 2,654 Capital reserve account 3 3 Unrealised profits on investments 6,018 3,574 Share of undistributed losses of associates (151) (200) Realised profits 1,421 1,006 Shareholders’ Funds 17,125 14,217
Statement of Cash Flow
For the year ended 30th June 2017 2017 2016 2016 £000 £000 £000 £000 Profit before taxation 868 77 Profit on sale of Swallowfield Plc (845) - Profit on sale of investments (50) (49) Share of results of associates (49) (52) Net interest (payable)/receivable 7 (36) Changes in working capital Increase/(decrease) in trade and other receivables 45 (93) (Decrease) in trade and other payables (8) (17) Cash absorbed by operations (32) (170) Taxation paid (18) (13) Net interest (paid)/received (7) 36 Net cash absorbed by operations (57) (147) Cash flow from investment activities Investments in associate (500) (81) Purchase of Core Holdings (190) (3,213) Proceeds on disposal of Core Holdings 1,385 - Proceeds on disposal of other financial instruments 112 78 Purchase of other financial instruments (623) (1,038) Net cash generated/(absorbed) by investment 184 (4,254) activities Financing activities Loan drawdown 225 1,000 Equity dividend paid (386) (376) Net cash (outflow)/inflow from financing activities (161) 624 Movement in cash and cash equivalents (34) (3,777) Cash and cash equivalents at start of year 112 3,889 Cash and cash equivalents at end of year 78 112
Analysis of net (debt)/funds At start of year Cash Flow £000 At end of year £000 £000 2017 Cash and cash equivalents 112 (34) 78 Bank borrowings (1,000) (225) (1,225) Total net debt (888) (259) (1,147) 2016 Cash and cash equivalents 3,889 (3,777) 112 Bank overdraft - (1,000) (1,000) Total net debt 3,889 (4,777) (888)
1. Earnings per share
Earnings per share are based on the profit on ordinary activities after taxation of £850,000 (2016 - £64,000) and on 17,949,872 (2016 – 17,949,872) being the weighted average number of shares in issue during the period.
2017 2016 Basic earnings per share 4.7p 0.4p
Diluted earnings per share at 30th
2. Net assets per share
The net assets per share are calculated taking investments at market value.
The Company has estimated Corporation Tax losses which cover the potential liability on the unrealised gains on investments. The financial information contained in this preliminary announcement of results has been prepared under the recognition and measurement principles of International Financial Reporting Standards and Interpretations issued by the
3. The financial information does not give sufficient information to comply with IFRS which will be contained in the statutory accounts to be sent to shareholders
4. The information in this preliminary results announcement has been prepared on the basis of the accounting policies which have been set out in the Company’s Report & Accounts for the year ended 30th
5. The accounts for the year ended 30th
6. Copies of this notification are held at the Company’s office,