Unaudited Preliminary Results for the Year Ended
The Company today announces its unaudited preliminary financial results for the year ended
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 for the year before exceptional items was £64,000 (2015 – profit before exceptional items £159,000). In the previous year Western sold its investment in Creston plc, realising an exceptional gain of £2,615,000. After this exceptional item our profit for that year was £2,774,000.
Dividend income from
During the year Western re-invested the proceeds of last year’s sale of Creston in its
Shareholders’ funds per share have increased by 5% from 75p to 79p reflecting increases in values of the
Northbridge Industrial Services plc (“Northbridge”)
Northbridge hires and sells specialist industrial equipment to a global customer base. It has offices or agents in the
Northbridge announced its unaudited interim results for the six months ended
Western acquired a further 1,323,632 Northbridge shares during the year for £964,000 bringing its holding to 3,223,632 shares. Western’s holding is now 12.45% of Northbridge’s issued share capital. The value of this investment at
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 announced its annual results to
Western acquired a further 130,851 Swallowfield shares during the year for £203,000. At the reporting date, Western owned 2,000,000 Swallowfield shares which was 11.9% of Swallowfield’s issued share capital. The market value of this investment on
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 results for the year ended
Western holds 49.5% of the issued share capital of
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.
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 recent Brexit vote is likely to exacerbate volatility in stock markets and consequently in the value of the Company’s holdings. 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.
The annual 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 7148 7900
Statement of Comprehensive Income
For the year ended 30th June 2016 2015 Notes £000 £000 Income from investments in: Listed strategic undertakings 129 238 Other listed undertakings 101 85 230 323 Administrative expenses (290) (324) Profit on disposal of investment in Creston plc - 2,615 Profit on disposal of other investments 49 143 Operating (loss)/profit (11) 2,757 Share of profits/(losses) of associated companies 52 (3) Interest receivable 45 41 Finance costs (9) (11) Profit before taxation 77 2,784 Taxation (13) (10) Profit after taxation attributable to equity shareholders 64 2,774 Other comprehensive income Items that may be reclassified subsequently to profit and loss :- Fair value recycled from equity on disposal (31) (1,885) Fair value adjustment on listed undertakings 1,073 (5,470) Deferred taxation on fair values - 137 Total Other Comprehensive profit/(loss) 1,042 (7,218) Total comprehensive profit/(loss) 1,106 (4,444) Basic and diluted profit per share attributable to ordinary 1 0.4p 15.5p equity holders
Statement of Changes of Equity
Share of undistributed Share Capital Unrealised profits/ Share premium reserve profits on (losses) of Realised capital account account investments associates profits Total £000 £000 £000 £000 £000 £000 £000 Year ended 30th June 2015 Balances at 7,180 2,654 3 6,731 (249) 1,989 18,308 1st July 2014 Profit for - - - 3,019 (3) (242) 2,774 the period Items that - - - (7,218) - - (7,218) can be reclassified to the income statements – Other Comprehensive loss – Fair values net of tax Total - - - (4,199) (3) (242) (4,444) Comprehensive loss Transactions with shareholders Final - - - - - (188) (188) dividend paid in respect of prior year Interim - - - - - (189) (189) dividends paid in respect of the year Total - - - - - (377) (377) transactions with shareholders Balances at 7,180 2,654 3 2,532 (252) 1,370 13,487 30th June 2015
Share of undistributed Share Capital Unrealised profits/ Share premium reserve profits on (losses) of Realised capital account account investments associates profits Total £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
Statement of Financial Position
At 30th June 2016 2015 Notes £000 £000 Non-current Assets: Investment in Associated companies 799 666 Investments classified as available for sale 13,628 8,364 Trade and other receivables 692 660 15,119 9,690 Current Assets Trade and other receivables 85 24 Cash and cash equivalents 112 3,889 197 3,913 Current Liabilities Trade and other payables (99) (116) Net Current Assets 98 3,797 Financial Liabilities falling due in more than one year (1,000) - Net Assets 14,217 13,487 Equity Share capital 7,180 7,180 Share premium account 2,654 2,654 Capital reserve account 3 3 Unrealised profits on investments 3,574 2,532 Share of undistributed losses of associates (200) (252) Realised profits 1,006 1,370 Shareholders’ Funds 14,217 13,487
Statement of Cash Flow
For the year ended 30th June 2016 2016 2015 2015 Notes £000 £000 £000 £000 Profit before taxation 77 2,784 Profit on sale of Creston Plc - (2,615) Profit on sale of investments (49) (143) Share of results of associates (52) 3 Net interest receivable (36) (30) Changes in working capital Increase in trade and other receivables (93) - Increase/(decrease) in trade and other (17) 22 payables Cash (absorbed)/generated by operations (170) 21 Taxation paid (13) (10) Net interest received 36 30 Net cash (absorbed)/generated by operations (147) 41 Cash flow from investment activities Proceeds on disposal of financial 78 931 instruments Purchase of financial instruments (1,038) (104) (960) 827 Investments in associate (81) Purchase of Core Holdings (3,213) (52) Disposal of Core Holdings - 4,040 (4,254) 4,815 Net cash (absorbed)/generated by investment (4,254) 4,815 activities Financing activities Loan Drawdown 1,000 - Equity dividend paid (376) (377) Net cash inflow/(outflow) from financing 624 (377) activities Movement in cash and cash equivalents (3,777) 4,479 Cash and cash equivalents/(overdrafts) at 3,889 (590) start of year Cash and cash equivalents at end of year 112 3,889
Analysis of net (debt)/funds At start of year Cash At end £000 Flow of year £000 £000 2016 Cash and cash equivalents 3,889 (3,777) 112 Bank borrowings - (1,000) (1,000) Total net (debt)/funds 3,889 (4,777) (888) 2015 Cash and cash equivalents - 3,889 3,889 Bank borrowings (590) 590 - Total net (debt)/funds (590) 4,479 3,889
1. Earnings per share
Earnings per share are based on the profit on ordinary activities after taxation of £64,000 (2015 - £2,774,000) and on 17,949,872 (2015 – 17,949,872) being the weighted average number of shares in issue during the period.
2016 2015 Basic earnings per share 0.4p 15.5p
Diluted earnings per share at 30th
2. 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.
3. 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
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 accounts for the year ended
Copies of this notification are held at the Company’s office,